Everest Re Group Ltd. (RE) 2019年年度報告「NYSE」.pdf

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1、EVEREST RE GROUP,LTD.2019A N N U A L R E P O R TE V E R E S T R E G R O U P,LT D.2 0 1 9 A N N U A L R E P O R T(in millions,except per share data)20192018201720162015BALANCE SHEETTotal assets$27,324.1$24,751.0$23,563.3$21,279.2$20,545.4Shareholders equity9,132.97,860.88,340.78,033.17,608.6Book valu

2、e per common share 223.85 193.37 204.25 196.41 178.21 RESULTSGross written premiums$9,133.4$8,475.2$7,173.9$6,033.9$5,891.7Net investment income 647.1 581.2 542.9 473.1 473.5 After-tax operating income$872.4$190.7$412.6 1,004.3$1,108.1 per diluted common share 21.34 4.65 10.00$23.87 25.04 Net income

3、$1,009.5$89.0$482.8996.3$977.9 per diluted common share 24.70 2.17 11.70$23.68 22.10 FINANCIAL RATIOSCombined ratio95.5%108.8%103.5%87.0%85.1%After-tax operating return on average adjusted equity10.3%2.3%5.1%12.9%15.0%Net income return on average equity12.0%1.1%5.8%12.9%13.2%FINANCIAL HIGHLIGHTS2019

4、*The Company generally uses after-tax operating income(loss),a non-GAAP financial measure,to evaluate its performance.After-tax operating income(loss)consists of net income(loss)excluding after-tax net realized capital gains(losses),after-tax net foreign exchange income(expense),and the tax charge r

5、elated to the enactment of the Tax Cuts and Jobs Act of 2017(TCJA).Further explanation and a reconciliation of net income(loss)to after-tax operating income(loss)can be found at the back of the 10-K insert.111.6%COMPOUND ANNUAL RETURN SINCE 1995EVEREST LONG-TERM GROWTH IN SHAREHOLDER VALUE$268.95201

6、9$202.512015$126.522010$66.832005$35.392000$19.391995Shareholder value as measured by growth in dividend-adjusted book value per shareThe result of this consistency is a long-term,best-in-class return to our shareholders,with annualized dividend adjusted growth in book value per share of 11.6%since

7、inception,and 9.7%over the past 10 years.At Everest,we adapt our business strategy to both current market conditions and our view of the market going forward.During 2019,that meant meaningfully reducing our reinsurance exposure to natural catastrophe events based on our view of the appropriate risk/

8、return metrics.Everest is very fortunate to have developed a large,global,and multi-line reinsurance business over the years;this allows us to direct capacity away from one class and toward another as conditions warrant.As we reduced our natural catastrophe exposure through 2019,we deployed addition

9、al capacity toward casualty and other specialty classes.For Everest,2020 marks our 25th full year of operations as an independent public company a milestone in our 48-year history.This longevity is a hallmark of Everest and reflects our commitment to remaining a stable partner for our customers and

10、intermediaries through all market cycles.Our fundamental value proposition has remained intact throughout the years:we continue to offer the security of a fortress balance sheet and top tier ratings,combined with sizable capacity and first-class underwriting teams backed by dedicated and experienced

11、 professionals across the organization.LETTER FROM THE CHAIRMANE V E R E S T R E G R O U P,LT D.2 0 1 9 A N N U A L R E P O R TC E O A N D/O R C H A I R M A N O F E V E R E S T25 yearsMY FELLOW SHAREHOLDERS:The development of Everest Insurance is another example of our adaptable strategy.In 2015,we

12、embarked on a significant trans-formation of the insurance business,which really began to hit its stride in 2018.The most recent results for 2019$2.8 billion in gross premium written and a 95.8%combined ratioconfirm that we have succeeded in building a valuable franchise.Going forward,Everest Insura

13、nce is poised to capitalize on the current improvement in market conditions.At the end of 2019,Dom Addesso retired as CEO of Everest.We thank him so very much for all he has done for our Company.Under Doms leadership,our franchise continued its record of growth and superior returns.Dom positioned us

14、 exceedingly well for the future.The Board began the search for a new President&CEO of Everest at the start of 2019.After a thoughtful and extensive process,we were gratified to appoint Juan C.Andrade to the role.Juan is an extremely capable leader with energy,vision and more than 25 years industry

15、experience.He truly understands the details of our business,having led global underwriting,claims and distribution organizations at major insurance com-panies over the course of his career.The other Board members and I have great faith in Juans ability to lead Everest through the next chapter of its

16、 development.To all our shareholders,I thank you for your continued support of Everest.JOSEPH V.TARANTO Chairman of the Board2 /3“FOR EVEREST,2020 MARKS OUR 25th FULL YEAR OF OPERATIONS AS AN INDEPENDENT PUBLIC COMPANY A MILESTONE IN OUR 48-YEAR HISTORY.”PRESIDENT AND CHIEF EXECUTIVE OFFICERE V E R

17、E S T R E G R O U P,LT D.2 0 1 9 A N N U A L R E P O R TIt is my privilege to be writing to you for the first time as the President and CEO of Everest Re Group,Ltd.I am grateful for the trust that the Board of Directors has placed in me as the leader of Everest and the steward of your investment in

18、our Company.The future is bright for Everest and I am excited about leading the organization into its next chapter and continuing to build on the strong foundation that was established under Dom Addessos leadership.As I take the helm,the focus is on increasing Everests earnings power with the goal o

19、f driving superior book value growth over time.Continued and expanded underwriting profitability will remain a key objective,as we execute on our well-defined premium growth strategies in what has been an improving underwriting environment.Optionality and diversification in our businesses remain cri

20、tical;we achieve this through a broad mix of products,distribution and geography.This strategy allows us to focus our underwriting capital on the most profitable classes,regardless of the environment.Underwriting discipline will remain at the core of everything we do.On the investment income front,o

21、ur focus will be on optimizing the performance of our investment portfolio,while maintaining a well-balanced and prudent investment posture.Strong operating cash flows remain an important part of this equation.The efficient use of our capital facilitates returns on equity significantly in excess of

22、our cost of capital,and we aim for a double-digit target.Our first priority is to deploy our capital into the business,while positioning Everest for long-term success and profitable growth.Ultimately,the combination of sustainable growth in earnings plus efficient capital management,our strong balan

23、ce sheet,low leverage and strong financial ratings will position Everest to succeed in every stage of the market cycle.YEAR IN REVIEWFor the full year 2019,Everest recorded net income of over$1 billion and a 12%net income return on equity.This is the organizations best net income since 2014 and repr

24、esents a significant increase over last year.Net operating income for 2019 was over$872 million,also a substantial improvement over 2018.The combined ratio for the year was 95.5%,compared to 108.8%in 2018,despite$550 million of net catastrophe losses.With a 6%expense ratio in 2019,we also succeeded

25、in maintaining our industry-leading expense advantage,as we continued to invest in growing the Company.Overall,these results are a testament to the strength and diversification of our franchise.As discussed below,over the past year we had sizable contributions from both our underwriting and investme

26、nt operations.Specific to the underwriting operations,2019 demonstrated the success of our strategies in both reinsurance and insurance.For the year ended December 31,2019,Everest generated over$336 million in underwriting income.The attritional combined ratio was 88.4%.In our Reinsurance Division,w

27、e generated over$255 million in underwriting income with a 95.4%combined ratio despite an active catastrophe year with industry-insured losses in excess of$50 billion.This result reflects the steps we have taken to diversify our portfolio and reduce volatility.Including the A MESSAGE FROM THEMY FELL

28、OW SHAREHOLDERS:“ULTIMATELY,THE COMBINATION OF SUSTAINABLE GROWTH IN EARNINGS PLUS EFFICIENT CAPITAL MANAGEMENT,OUR STRONG BALANCE SHEET,LOW LEVERAGE AND STRONG FINANCIAL RATINGS WILL POSITION EVEREST TO SUCCEED IN EVERY STAGE OF THE MARKET CYCLE.”4 /5allocation of$458 million of investment income(w

29、hich we now disclose in our financial supplement),the Reinsurance Division had pre-tax operating income of$714 million.In our Insurance Division,2019 marked another period of profitable growth.We finished the year with gross written premium of nearly$2.8 billion(a 23%growth rate),over$81 million in

30、underwriting income and a 95.8%combined ratio.Including allocated investment income of$189 million,the Insurance Division had pre-tax operating income of$270 million for the yearan excellent result.Overall,investment income for the Group was$647 million.Our invested assets grew by$2.3 billion over 2

31、018,due in part to continued positive underwriting cash flows.MARKET ENVIRONMENTOur industry faces many opportunities,but it also faces a number of challenges,namely years of pricing compression across both property and casualty classes.However,pricing and terms improved meaningfully during 2019.In

32、fact,in some classes of business,we saw the strongest rate movement in decades.This correction was long overdue.Everest remains nimble and responsive to the shifting landscape.Our reduction in natural catastrophe exposure during 2019 is the most evident change.Continued growth in our insurance and m

33、ortgage businessesalong with the expansion in proportional reinsurance to benefit from the improving primary insurance environmentmeans our portfolio is well-diversified and strategically positioned to maximize the opportunity set at hand.LOOKING AHEADI am optimistic about our opportunities.My focus

34、 will be on relentless execution of our strategies to maximize share-holder returns.Everest is an underwriting company first and foremost.Providing meaningful capacity and valuable solutions to our customers,while adapting our portfolio to market conditions to ensure profitability is at the heart of

35、 what we do.We have a strong balance sheet and top tier ratings,with underwriting talent in the locations needed by our customers around the world.Our industry-leading expense structure has provided us with flexibility,and we will maintain this essential discipline.We have vibrant reinsurance and in

36、surance businesses with strong and experienced teams.The growth of the Insurance Division is essential to achieving greater balance in the organi-zation,but this expansion is not at the expense of reinsurance,where we have a world-class franchise with significant opportunities for further diversific

37、ation and development.Longstanding relationships are essential to our success,and I want to thank our customers and distribution partners for their support over many years.Moving forward,Everest is committed to maintaining our outstanding level of customer service while improving our digital and tra

38、nsactional capabilities.Thank you for your continued support.JUAN C.ANDRADE President and Chief Executive Officer“WE ARE WELL-POSITIONED TO COMPETE IN THE IMPROVING MARKET,THANKS TO OUR UNIQUE STRENGTHS AND ATTRIBUTESLONG-STANDING CLIENT RELATIONSHIPS,A ROBUST ABILITY TO SOURCE BUSINESS GLOBALLY AND

39、 STRATEGICALLY LOCATED UNDERWRITING TEAMS.”REINSURANCEE V E R E S T R E G R O U P,LT D.2 0 1 9 A N N U A L R E P O R TJOHN P.DOUCETTE Executive Vice President of Everest Re Group,President&Chief Executive Officer,Reinsurance DivisionDynamic.If there was one word to describe the reinsurance market fo

40、r 2019,that would be it.Everests Reinsurance Division has been carefully and deliberately structured to execute and thrive in this uncertain environment,and our financial results reflect this resiliency.Despite a rapidly changing market and the industrys over$50 billion in catastrophe losses for the

41、 year ended December 31,2019,we succeeded in posting$255 million in underwriting profit.These results were driven by the strong execution of six key profit drivers:our Property,Casualty,and Mortgage/Credit areas,and a renewed focus on our global clients,strategic relationships and reinsurance growth

42、 initiatives.We saw growth in Facultative Property and Facultative Casu-alty business in both the U.S.and worldwide,as well as focused growth in our Treaty Casualty business.In our Property book,thoughtful and deliberate underwriting decisions led to improved profitability metrics.Driving this growt

43、h and enhanced risk-reward economics was a confluence of external elements,including the natural catastrophe losses of the past few years,the tightening of retrocession market capacity,reinsurance market dislocation,trapped capital,and industry concerns over social inflation.By targeting growth in a

44、reas where large market leaders were contracting limits,we were able to drive improved pricing terms and conditions.The strategy we enacted throughout 2019 was dynamic,but disciplined,as we focused on leveraging our global footprint,broadening our product capabilities and diversifying our busi-nessa

45、nd it proved effective,positioning us for a successful 1/1 renewal period this year.Today,we plan to continue to broaden and diversify our portfolio,while expanding our opportunity set and increasing efficiency and automation in our operations.By coupling these strategies with the use of alternative

46、 capital vehicles such as Mt.Logan and Kilimanjaro catastrophe bonds,we are steadily building and fortifying many avenues of resiliency,allowing Everest the ability to provide more support for our customers while managing our net volatility.Lastly,our ongoing success would not be possible without an

47、 incredible team across the organization,from our early talent to our senior officers,in departments ranging from actuarial,accounting,catastrophe modeling,claims and technology services,who work tirelessly to ensure we are one step ahead in an industry that continues to evolve at an accelerating pa

48、ce.Our operations are supported by seasoned,insightful underwriting professionals around the world who are empowered to make decisions and execute on them.They are true innovators of creative risk solutions for our clients,and their contributions are invaluable.We thank the entire Reinsurance Divisi

49、on for their dedication and loyalty.6 /70204060801000204060801003691215OPERATING ROEGrowth in Dividend-Adjusted Book Value per ShareBook Value per ShareDividends to Shareholders9501071218EverestPeer Avg(1)GROSS WRITTEN PREMIUM BY LINE OF BUSINESSREINSURANCESHAREHOLDER VALUE CREATION050100150200250CL

50、ASS OF BUSINESSLong Tail Medium TailShort Tail1963%27%10%1035%29%36%DISTRIBUTIONDirectProgram19105.1%10.8%13.0%7.6%10.8%6.8%10.9%8.4%$239.00$145.87$95.74$38.46$19.39Compound Annual Growth of 12%Lorem ipsum34%66%77%23%GROSS WRITTENPREMIUM BY REGION 52%22%11%4%5%3%3%United States Europe/UKLatin Americ

51、aMiddle East/Africa Asia/AustraliaWorldwideCanada REINSURANCE0204060801000204060801003691215OPERATING ROEGrowth in Dividend-Adjusted Book Value per ShareBook Value per ShareDividends to Shareholders9501071218EverestPeer Avg(1)GROSS WRITTEN PREMIUM BY LINE OF BUSINESSREINSURANCESHAREHOLDER VALUE CREA

52、TION050100150200250CLASS OF BUSINESSLong Tail Medium TailShort Tail1963%27%10%1035%29%36%DISTRIBUTIONDirectProgram19105.1%10.8%13.0%7.6%10.8%6.8%10.9%8.4%$239.00$145.87$95.74$38.46$19.39Compound Annual Growth of 12%Lorem ipsum34%66%77%23%GROSS WRITTENPREMIUM BY REGION 52%22%11%4%5%3%3%United States

53、Europe/UKLatin AmericaMiddle East/Africa Asia/AustraliaWorldwideCanada REINSURANCE31%8%18%23%11%9%Property ProRataProperty Non-Cat XOLProperty Cat XOLCasualty ProRataCasualty XOLFinancial Lines(left to right):Ronald Diaz,Executive Vice President,Latin America,Middle East&South Africa;John P.Doucette

54、,Executive Vice President of Everest Re Group,President&Chief Executive Officer,Reinsurance Division;Dennis Alba,Senior Vice President,US Casualty and Surety;Chris Downey,Chief Underwriting Officer;James Camerino,Chief Operating Officer,Reinsurance Division&Senior Vice President,Corporate Services;C

55、huck Volker,Senior Vice President,Treaty Property/Marine/Facultative Property;Andrew Carrier,President of Everest Advisors,UK and General Manager of European Operations“EVEREST INSURANCES UNIQUE JOURNEY HAS LED TO PROFITABILITY,GROWTH AND GLOBAL RELEVANCE.WE ARE WELL-POSITIONED TO CONTINUE ON THIS P

56、ATH THROUGH 2020 AND BEYOND.”INSURANCEE V E R E S T R E G R O U P,LT D.2 0 1 9 A N N U A L R E P O R TJONATHAN M.ZAFFINO Executive Vice President of Everest Re Group,President&Chief Executive Officer,Everest Insurance DivisionEverest Insurance punctuated the end of 2019 with its strongest results to

57、 dateposting$270 million in pre-tax operating income for the year.And this is just one of many results that tell the same story:our strategy for transformation has been a success.Five years into our organizations renaissance,Everests relevance within the sector as a world-class specialty diversified

58、 underwriting organi-zation is firmly established,and we are well-positioned for continued growth and development in the months and years ahead.Looking back at 2019,Everest Insurances increasing relevance was reflected in virtually every aspect of our operations.Our record profitability has been fue

59、led by our ability to achieve sustained growth,a trend that weve built on over the past several years.Strategically,Everest continued to advance our reputation as a modern-era insurernimble and dynamic,with the ability to respond quickly and expertly to a complex range of global risks.We also remain

60、ed steadfast in our commitment to innovation,prioritizing investments in the cutting-edge tools and technologies that enhance our best-in-class products and services.These on-going efforts have been recognized by the industry:Everests eIQTM Insurance Innovation Team was recently shortlisted for the

61、Insurance Innovation of the Year award by Insurance Insider.Finally,our company has fostered a workplace culture where respect for our colleagues,our broker partners and our clients is paramount.That level of employee engagement and satisfaction was recognized in 2019 when Everest Insurance was name

62、d one of the Business Insurance Best Places to Work in Insurance.By offering a dynamic and collaborative workplace environment,we continue to attract,retain and develop the industrys top talentin 2019 alone,Everest Insurance welcomed more than 200 new employees.At Everest,we focus on devising new wa

63、ys to elevate the sophistication of our operationsthrough,for instance,our use of data and analytics,as well as through advancement in our technical claims and underwriting capabilities.By proactively implementing enhancements to our operating platform and our infrastructure,we are ideally situated

64、to navigate the evolving industry landscape;ready to address new challenges with speed and agility,offer thoughtful solutions and,in the process,provide significant value to our shareholders and customers.This is an underwriters market,and we have the platform,the products and the outstanding talent

65、 to continue to thrive.Thank you to our team for their unwavering commitment and hard work,and to you,our shareholders,for your continued support.8 /9GROSS WRITTEN PREMIUM BY LINE OF BUSINESS 12%29%5%14%19%21%A&H Specialty Casualty Other Specialty Professional Liability Prop/Short Tail Workers CompI

66、NSURANCEGROSS WRITTEN PREMIUMBY CLASS OF BUSINESS43%24%33%Short Tail Medium Tail Long TailINSURANCEGROSS WRITTEN PREMIUM BY LINE OF BUSINESS 12%29%5%14%19%21%A&H Specialty Casualty Other Specialty Professional Liability Prop/Short Tail Workers CompINSURANCE(left to right):Vincent Vandendael,CEO of E

67、verest Global Markets;Mike Karmilowicz,Executive Vice President,Everest Insurance&President North America P&C(Insurance);Patricia McMahon,Chief Claims Officer;Jonathan M.Zaffino,Executive Vice President of Everest Re Group,President&Chief Executive Officer,Everest Insurance Division;Michael Mulray,C

68、hief Underwriting Officer;Dane Lopes,Group Head of Marketing&Communications,Everest Re Group,and Chief Commercial Officer,Everest Insurance;William Thygeson,Chief Administrative OfficerCORPORATE SOCIAL RESPONSIBILITYEMPLOYEE DEVELOPMENT At Everest,providing a healthy and productive environment for o

69、ur employees to grow professionally is one of the core values that drives our business.Attracting and maintaining a diverse,talented workforce is an essential part of enacting that value.We are committed to inclusive hiring practices,strong talent devel-opment and an engaging and motivated culture i

70、n the workplace.As a company that is dependent on our people for sustainability and innovation,we encourage our employees to grow professionally and promote an atmosphere of collegiality and inclusion for our employees to feel confident in the workplace.In that regard,we have a rigorous Talent Devel

71、opment program to support Everests corporate goals and objectives while promoting a culture of continuous learning,career development,coaching and mentor-ship among employees.COMMUNITY OUTREACHEverest believes strongly in the importance of giving back to its global communities and helping those in n

72、eed.Our mission is to support education,health,social and environmental issues that impact our neighbors.At Everest,we believe that our future is determined by actions we take today.We believe that a sustain-able future for our Company must encompass the values most important to our customers,employ

73、ees and the communities in which we operate.The values that define our corporate responsibility and guide us to maintain sustainability include:maintaining our integrity through all aspects of the Company,being an industry innovator to solve global complex risks,providing an inclusive work environme

74、nt that offers employees the opportunity to further their professional development,and supporting our communities through the donation of time and financial resources.E V E R E S T R E G R O U P,LT D.2 0 1 9 A N N U A L R E P O R TMargaret Horn and Giannina Contreras Everest Charitable Outreach 2020

75、 Co-Chairs“AT EVEREST,PROVIDING A HEALTHY AND PRODUCTIVE ENVIRONMENT FOR OUR EMPLOYEES TO GROW PROFESSIONALLY IS ONE OF THE CORE VALUES THAT DRIVES OUR BUSINESS.”We are proud that over the last year,nearly 40%of our global workforce volunteered over 3,000 hours to support a range of charitable cause

76、s including working with Habitat for Humanity to build homes for working families in need;participating in United Ways Tools for School program by donating backpacks filled with school supplies to students in need;supporting community food and clothing drives;supporting our military families during

77、the holiday season;donating blood through the American Red Cross;and partnering with Rise Against Hunger to pack nutritious meals for distribution to organizations around the world.Everest also has a matching gift program for targeted charities that align with the Companys mission.CORPORATE GOVERNAN

78、CEÐICSWe remain committed to operating our business consistent with sound corporate practices and strong corporate governance that promotes the long-term interests of our shareholders,strengthens the accountability of the Board and management and helps build trust in the Company.We maintain a str

79、ict Code of Conduct,which is outlined in our Ethics Guidelines.These Guidelines are intended to guide all of the Companys decisions and behaviors,and require that all directors,officers and employees are held to the highest standards of integrity.In addition,our emphasis on generating long-term valu

80、e for our shareholders is reflected in our compensation philosophy,enterprise risk management,and business model.ENVIRONMENTAL CONSCIENCEWe believe that environmental consciousness is of the utmost importance at every level of our Company.Our Board maintains an active role in determining how managin

81、g environmental risk and controlling ecological impact will be incorporated into our business and operations.As a global insurance and reinsurance organization,we recognize the potential impact of climate change and related extreme natural perils on our world.We are also acutely aware of the fact th

82、at our industry plays a critical role in the economic and social recovery after such extreme weather events.In order to responsibly navigate global warming and our role in the fight against climate change,it is our policy to remain committed to providing solutions that can help our clients manage th

83、eir own environmental risks in real and practical ways.We are also dedicated to managing and reducing our own ecological footprint wherever possible.1 0 /1 1LOCATIONSAtlanta,GA Boston,MAChicago,ILHouston,TXIndianapolis,INLiberty Corner,NJ Los Angeles,CAMiami,FLNew York,NYOrange,CAPhiladelphia,PASan

84、Francisco,CAStamford,CT Tampa,FLWalnut Creek,CABermudaBelgium BrazilCanadaIrelandUKSingaporeSwitzerlandE V E R E S T R E G R O U P,LT D.2 0 1 9 A N N U A L R E P O R T“ATTRACTING AND RETAINING HIGH-QUALITY PEOPLE,CAPABLE OF BECOMING THE NEXT GENERATION LEADERS THAT CAN CARRY ON THE EVEREST CULTURE,I

85、S CRITICAL TO OUR ONGOING SUCCESS.”L O C A T I O N S W O R L D W I D E23JUAN C.ANDRADE President and Chief Executive OfficerEVEREST RE GROUP,LTD.2019F O R M 1 0-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington,D.C.20549 FORM 10-K _X_ Annual Report Pursuant to Section 13 or 15(d)of the S

86、ecurities Exchange Act of 1934 For the fiscal year ended December 31,2019 _ Transition Report Pursuant to Section 13 or 15(d)of the Securities Exchange Act of 1934 Commission file number 1-15731 EVEREST RE GROUP,LTD.(Exact name of registrant as specified in its charter)Bermuda 98-0365432(State or ot

87、her jurisdiction of incorporation or organization)(I.R.S.Employer Identification No.)Seon Place 4th Floor 141 Front Street PO Box HM 845 Hamilton HM 19,Bermuda 441-295-0006 (Address,including zip code,and telephone number,including area code,of registrants principal executive office)Securities regis

88、tered pursuant to Section 12(g)of the Act:None Indicate by check mark if the registrant is a well-known seasoned issuer,as defined in Rule 405 of the Securities Act.YES X NO Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d)of the Act.YES

89、 NO X Indicate by check mark whether the registrant:(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during the preceding 12 months(or for such shorter period that the registrant was required to file such reports),and(2)has been subject to su

90、ch filing requirements for the past 90 days.YES X NO Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months(or for such shorter period that the registrant wa

91、s required to submit such files).YES X NO Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein,and will not be contained,to the best of the registrants knowledge,in definitive proxy or information statements incorporated by referenc

92、e in Part III of this Form 10-K or any amendment to this Form 10-K.Indicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,a smaller reporting company or an emerging growth company.See the definitions of“large accelerated filer,”“accele

93、rated filer,”“smaller reporting company”and“emerging growth company”in Rule 12b-2 of the Exchange Act.Large accelerated filer X Accelerated filer Non-accelerated filer Smaller reporting company Emerging growth company Indicate by check mark if the registrant is an emerging growth company and has ele

94、cted not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a)of the Exchange act.YES NO X Indicate by check mark whether the registrant is a shell company(as defined in Rule 12b-2 of the Exchange Act).YES NO X T

95、he aggregate market value on June 30,2019,the last business day of the registrants most recently completed second quarter,of the voting shares held by non-affiliates of the registrant was$10,070,237 thousand.Securities registered pursuant to Section 12(b)of the Act:Class Trading Symbol Name of Excha

96、nge where Registered Number of Shares Outstanding At February 1,2020 Common Shares,$0.01 par value RE New York Stock Exchange 40,813,432 DOCUMENTS INCORPORATED BY REFERENCE Certain information required by Items 10,11,12,13 and 14 of Form 10-K is incorporated by reference into Part III hereof from th

97、e registrants proxy statement for the 2018 Annual General Meeting of Shareholders,which will be filed with the Securities and Exchange Commission within 120 days of the close of the registrants fiscal year ended December 31,2019.EVEREST RE GROUP,LTD TABLE OF CONTENTS FORM 10-K Page PART I Item 1.Bus

98、iness 1 Item 1A.Risk Factors 26 Item 1B.Unresolved Staff Comments 38 Item 2.Properties 38 Item 3.Legal Proceedings 38 Item 4.Mine Safety Disclosures 39 PART II Item 5.Market for Registrants Common Equity,Related Shareholder Matters and Issuer Purchases of Equity Securities 39 Item 6.Selected Financi

99、al Data 42 Item 7.Managements Discussion and Analysis of Financial Condition and Results of Operations 43 Item 7A.Quantitative and Qualitative Disclosures About Market Risk 79 Item 8.Financial Statements and Supplementary Data 79 Item 9.Changes in and Disagreements With Accountants on Accounting and

100、 Financial Disclosure 80 Item 9A.Controls and Procedures 80 Item 9B.Other Information 80 PART III Item 10.Directors,Executive Officers and Corporate Governance 80 Item 11.Executive Compensation 81 Item 12.Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters

101、81 Item 13.Certain Relationships and Related Transactions,and Director Independence 81 Item 14.Principal Accountant Fees and Services 81 PART IV Item 15.Exhibits and Financial Statement Schedules 81 1 PART I Unless otherwise indicated,all financial data in this document have been prepared using acco

102、unting principles generally accepted in the United States of America(“GAAP”).As used in this document,“Group”means Everest Re Group,Ltd.;“Holdings Ireland”means Everest Underwriting Group(Ireland)Limited;“Ireland Re”means Everest Reinsurance Company(Ireland),designated activity company;“Holdings”mea

103、ns Everest Reinsurance Holdings,Inc.;“Everest Re”means Everest Reinsurance Company and its subsidiaries(unless the context otherwise requires);and the“Company”,“we”,“us”,and“our”means Everest Re Group,Ltd.and its subsidiaries.ITEM 1.BUSINESS The Company.Group,a Bermuda company,was established in 199

104、9 as a wholly-owned subsidiary of Holdings.On February 24,2000,a corporate restructuring was completed and Group became the new parent holding company of Holdings.Holdings continues to be the holding company for the Companys U.S.based operations.Holders of shares of common stock of Holdings automati

105、cally became holders of the same number of common shares of Group.Prior to the restructuring,Group had no significant assets or capitalization and had not engaged in any business or prior activities other than in connection with the restructuring.In connection with the February 24,2000 restructuring

106、,Group established a Bermuda-based reinsurance subsidiary,Everest Reinsurance(Bermuda),Ltd.(“Bermuda Re”),which commenced business in the second half of 2000.Group also formed Everest Global Services,Inc.,a Delaware subsidiary,to perform administrative functions for Group and its U.S.based and non-U

107、.S.based subsidiaries.On December 30,2008,Group contributed Holdings to its Irish holding company,Holdings Ireland.Holdings Ireland is a direct subsidiary of Group and was established to serve as a holding company for the U.S.and Irish reinsurance and insurance subsidiaries.Effective July 1,2016,the

108、 Company established a new Irish holding company,Everest Dublin Insurance Holdings Limited(Ireland)(“Everest Dublin Holdings”)and contributed Ireland Re to Everest Dublin Holdings.Holdings,a Delaware corporation,was established in 1993 to serve as the parent holding company of Everest Re,a Delaware

109、property and casualty reinsurer formed in 1973.Until October 6,1995,Holdings was an indirect wholly-owned subsidiary of The Prudential Insurance Company of America(“The Prudential”).On October 6,1995,The Prudential sold its entire interest in Holdings in an initial public offering.During the fourth

110、quarter of 2017,the Company established a new Irish insurance subsidiary,Everest Insurance Ireland,designated activity company(“Ireland Insurance”),which writes insurance business mainly in the European markets.The Companys principal business,conducted through its operating segments,is the underwrit

111、ing of reinsurance and insurance in the U.S.,Bermuda and international markets.The Company had gross written premiums,in 2019,of$9.1 billion with approximately 70%representing reinsurance and 30%representing insurance.Shareholders equity at December 31,2019 was$9.1 billion.The Company underwrites re

112、insurance both through brokers and directly with ceding companies,giving it the flexibility to pursue business based on the ceding companys preferred reinsurance purchasing method.The Company underwrites insurance principally through brokers,surplus lines brokers and general agent relationships.Grou

113、ps active operating subsidiaries,other than Ireland Insurance which is not yet rated,are each rated A+(“Superior”)by A.M.Best Company(“A.M.Best”),a leading provider of insurer ratings that assigns financial strength ratings to insurance companies based on their ability to meet their obligations to p

114、olicyholders.2 Following is a summary of the Companys principal operating subsidiaries:?Bermuda Re,a Bermuda insurance company and a direct subsidiary of Group,is registered in Bermuda as a Class 4 insurer and long-term insurer and is authorized to write property and casualty and life and annuity bu

115、siness.Bermuda Re commenced business in the second half of 2000.Bermuda Res UK branch writes property and casualty reinsurance to the United Kingdom and European markets.At December 31,2019,Bermuda Re had shareholders equity of$3.2 billion.?Everest International Reinsurance,Ltd.(“Everest Internation

116、al”),a Bermuda insurance company and a direct subsidiary of Group,is registered in Bermuda as a Class 4 insurer and is authorized to write property and casualty business.Through 2019,all of Everest Internationals business has been inter-affiliate quota share reinsurance assumed from Everest Re,the U

117、K branch of Bermuda Re,Ireland Re and Ireland Insurance.In 2015,Everest International issued additional capital as part of a capital restructuring initiative within the Company to support a planned increase in international business production,which includes supporting Groups Lloyds of London Syndic

118、ate corporate member.At December 31,2019,Everest International had shareholders equity of$3.6 billion.?Ireland Re,an Ireland reinsurance company and an indirect subsidiary of Group,is licensed to write non-life reinsurance,both directly and through brokers,for the London and European markets.?Irelan

119、d Insurance,an Ireland insurance company and an indirect subsidiary of Group,is licensed to write insurance for the European markets.?Everest Re,a Delaware insurance company and a direct subsidiary of Holdings,is a licensed property and casualty insurer and/or reinsurer in all states,the District of

120、 Columbia,Puerto Rico and Guam and is authorized to conduct reinsurance business in Canada,Singapore and Brazil.Everest Re underwrites property and casualty reinsurance for insurance and reinsurance companies in the U.S.and international markets.At December 31,2019,Everest Re had statutory surplus o

121、f$3.7 billion.?Everest Insurance Company of Canada(“Everest Canada”),a Canadian insurance company and direct subsidiary of Holdings Ireland,is licensed to write property and casualty insurance in all Canadian provinces.?Everest National Insurance Company(“Everest National”),a Delaware insurance comp

122、any and a direct subsidiary of Everest Re,is licensed in 50 states,the District of Columbia and Puerto Rico and is authorized to write property and casualty insurance on an admitted basis in the jurisdictions in which it is licensed.The majority of Everest Nationals business is reinsured by its pare

123、nt,Everest Re.?Everest Indemnity Insurance Company(“Everest Indemnity”),a Delaware insurance company and a direct subsidiary of Everest Re,writes excess and surplus lines insurance business in the U.S.on a non-admitted basis.Excess and surplus lines insurance is specialty property and liability cove

124、rage that an insurer not licensed to write insurance in a particular jurisdiction is permitted to provide to insureds when the specific specialty coverage is unavailable from admitted insurers.Everest Indemnity is licensed in Delaware and is eligible to write business on a non-admitted basis in all

125、other states,the District of Columbia and Puerto Rico.The majority of Everest Indemnitys business is reinsured by its parent,Everest Re.?Everest Security Insurance Company(“Everest Security”),a Georgia insurance company and a direct subsidiary of Everest Re,writes property and casualty insurance on

126、an admitted basis in Georgia and Alabama and is approved as an eligible surplus lines insurer in Delaware.The majority of Everest Securitys business is reinsured by its parent,Everest Re.3?Everest International Assurance,Ltd.(“Everest Assurance”),a Bermuda company and a direct subsidiary of Holdings

127、 is registered in Bermuda as a Class 3A general business insurer and as a Class C long-term insurer.Everest Assurance has made a one-time election under section 953(d)of the U.S.Internal Revenue Code to be a U.S.income tax paying“Controlled Foreign Corporation.”By making this election,Everest Assura

128、nce is authorized to write life reinsurance and casualty reinsurance in both Bermuda and the U.S.?Everest Premier Insurance Company(“Everest Premier”),a Delaware insurance company and a direct subsidiary of Everest Re,is licensed to write property and casualty insurance in all 50 states and the Dist

129、rict of Columbia.?Everest Denali Insurance Company(“Everest Denali”),a Delaware insurance company and a direct subsidiary of Everest Re,is licensed to write property and casualty insurance in all 50 states and the District of Columbia.Reinsurance Industry Overview.Reinsurance is an arrangement in wh

130、ich an insurance company,the reinsurer,agrees to indemnify another insurance or reinsurance company,the ceding company,against all or a portion of the insurance risks underwritten by the ceding company under one or more insurance contracts.Reinsurance can provide a ceding company with several benefi

131、ts,including a reduction in its net liability on individual risks or classes of risks,catastrophe protection from large and/or multiple losses and/or a reduction in operating leverage as measured by the ratio of net premiums and reserves to capital.Reinsurance also provides a ceding company with add

132、itional underwriting capacity by permitting it to accept larger risks and write more business than would be acceptable relative to the ceding companys financial resources.Reinsurance does not discharge the ceding company from its liability to policyholders;rather,it reimburses the ceding company for

133、 covered losses.There are two basic types of reinsurance arrangements:treaty and facultative.Treaty reinsurance obligates the ceding company to cede and the reinsurer to assume a specified portion of a type or category of risks insured by the ceding company.Treaty reinsurers do not separately evalua

134、te each of the individual risks assumed under their treaties,instead,the reinsurer relies upon the pricing and underwriting decisions made by the ceding company.In facultative reinsurance,the ceding company cedes and the reinsurer assumes all or part of the risk under a single insurance contract.Fac

135、ultative reinsurance is negotiated separately for each insurance contract that is reinsured.Facultative reinsurance,when purchased by ceding companies,usually is intended to cover individual risks not covered by their reinsurance treaties because of the dollar limits involved or because the risk is

136、unusual.Both treaty and facultative reinsurance can be written on either a pro rata basis or an excess of loss basis.Under pro rata reinsurance,the ceding company and the reinsurer share the premiums as well as the losses and expenses in an agreed proportion.Under excess of loss reinsurance,the rein

137、surer indemnifies the ceding company against all or a specified portion of losses and expenses in excess of a specified dollar amount,known as the ceding companys retention or reinsurers attachment point,generally subject to a negotiated reinsurance contract limit.In pro rata reinsurance,the reinsur

138、er generally pays the ceding company a ceding commission.The ceding commission generally is based on the ceding companys cost of acquiring the business being reinsured(commissions,premium taxes,assessments and miscellaneous administrative expense and may contain profit sharing provisions,whereby the

139、 ceding commission is adjusted based on loss experience).Premiums paid by the ceding company to a reinsurer for excess of loss reinsurance are not directly proportional to the premiums that the ceding company receives because the reinsurer does not assume a proportionate risk.There is usually no ced

140、ing commission on excess of loss reinsurance.Reinsurers may purchase reinsurance to cover their own risk exposure.Reinsurance of a reinsurers business is called a retrocession.Reinsurance companies cede risks under retrocessional agreements to other reinsurers,known as retrocessionaires,for reasons

141、similar to those that cause insurers to purchase reinsurance:to reduce net liability on individual or classes of risks,protect against catastrophic losses,stabilize financial ratios and obtain additional underwriting capacity.4 Reinsurance can be written through intermediaries,generally professional

142、 reinsurance brokers,or directly with ceding companies.From a ceding companys perspective,the broker and the direct distribution channels have advantages and disadvantages.A ceding companys decision to select one distribution channel over the other will be influenced by its perception of such advant

143、ages and disadvantages relative to the reinsurance coverage being placed.Business Strategy.The Companys business strategy is to sustain its leadership position within targeted reinsurance and insurance markets,provide effective management throughout the property and casualty underwriting cycle and t

144、hereby achieve an attractive return for its shareholders.The Companys underwriting strategies seek to capitalize on its i)financial strength and capacity,ii)global franchise,iii)stable and experienced management team,iv)diversified product and distribution offerings,v)underwriting expertise and disc

145、iplined approach,vi)efficient and low-cost operating structure and vii)effective enterprise risk management practices.The Company offers treaty and facultative reinsurance and admitted and non-admitted insurance.The Companys products include the full range of property and casualty reinsurance and in

146、surance coverages,including marine,aviation,surety,errors and omissions liability(“E&O”),directors and officers liability(“D&O”),medical malpractice,other specialty lines,accident and health(“A&H”)and workers compensation.The Companys underwriting strategies emphasizes underwriting profitability ove

147、r premium volume.Key elements of this strategy include careful risk selection,appropriate pricing through strict underwriting discipline and adjustment of the Companys business mix in response to changing market conditions.The Company focuses on reinsuring companies that effectively manage the under

148、writing cycle through proper analysis and pricing of underlying risks and whose underwriting guidelines and performance are compatible with its objectives.The Companys underwriting strategies emphasize flexibility and responsiveness to changing market conditions.The Company believes that its existin

149、g strengths,including its broad underwriting expertise,global presence,strong financial ratings and substantial capital,facilitate adjustments to its mix of business geographically,by line of business and by type of coverage,allowing it to participate in those market opportunities that provide the g

150、reatest potential for underwriting profitability.The Companys insurance operations complement these strategies by accessing business that is not available on a reinsurance basis.The Company carefully monitors its mix of business across all operations to avoid unacceptable geographic or other risk co

151、ncentrations.Commencing in 2015 the Company initiated a strategic build out of its insurance platform through the investment in key leadership hires which in turn has brought significant underwriting talent and stronger direction in achieving its insurance program strategic goals of increased premiu

152、m volume and improved underwriting results.Recent growth is coming from highly diversified areas including newly launched lines of business,as well as product and geographic expansion in existing lines of business.The Company is building a world-class insurance platform capable of offering products

153、across lines and geographies,complementing its leading global reinsurance franchise.As part of this initiative,the Company launched a new syndicate through Lloyds of London and formed Ireland Insurance,providing access to additional international business and new product opportunities to further div

154、ersify and broaden its insurance portfolio going forward.Marketing.The Company writes business on a worldwide basis for many different customers and lines of business,thereby obtaining a broad spread of risk.The Company is not substantially dependent on any single customer,small group of customers,l

155、ine of business or geographic area.For the 2019 calendar year,no single customer(ceding company or insured)generated more than 4%of the Companys gross written premiums.The Company believes that a reduction of business from any one customer would not have a material adverse effect on its future finan

156、cial condition or results of operations.5 Approximately 63%,31%and 6%of the Companys 2019 gross written premiums were written in the broker reinsurance,insurance and direct reinsurance markets,respectively.The broker reinsurance market consists of several substantial national and international broke

157、rs and a number of smaller specialized brokers.Brokers do not have the authority to bind the Company with respect to reinsurance agreements,nor does the Company commit in advance to accept any portion of a brokers submitted business.Reinsurance business from any ceding company,whether new or renewal

158、 is subject to acceptance by the Company.Brokerage fees are generally paid by reinsurers.The Companys ten largest brokers accounted for an aggregate of approximately 58%of gross written premiums in 2019.The largest broker,Marsh and McLennan,accounted for approximately 23%of gross written premiums.Th

159、e second largest broker,Aon Benfield Re,accounted for approximately 16%of gross written premiums.The Company believes that a reduction of business assumed from any one broker would not have a material adverse effect on the Company.The direct reinsurance market remains an important distribution chann

160、el for reinsurance business written by the Company.Direct placement of reinsurance enables the Company to access clients who prefer to place their reinsurance directly with reinsurers based upon the reinsurers in-depth understanding of the ceding companys needs.The Companys insurance business mainly

161、 writes commercial property and casualty on an admitted and non-admitted basis.The business is written through wholesale and retail brokers,surplus lines brokers and through program administrators.In 2019,two program administrators accounted for approximately 7%of the Companys gross written premium

162、each,and included multiple independent programs for each program administrator with the largest representing 4%of the overall gross written premium.No other program administrator generated more than 2%of the Companys gross written premium.The Company continually evaluates each business relationship,

163、including the underwriting expertise and experience brought to bear through the involved distribution channel,performs analyses to evaluate financial security,monitors performance and adjusts underwriting decisions accordingly.Segment Results.The U.S.Reinsurance operation writes property and casualt

164、y reinsurance and specialty lines of business,including Marine,Aviation,Surety and Accident and Health(“A&H”)business,on both a treaty and facultative basis,through reinsurance brokers,as well as directly with ceding companies primarily within the U.S.The International operation writes non-U.S.prope

165、rty and casualty reinsurance through Everest Res branches in Canada and Singapore and through offices in Brazil,Miami and New Jersey.The Bermuda operation provides reinsurance and insurance to worldwide property and casualty markets through brokers and directly with ceding companies from its Bermuda

166、 office and reinsurance to the United Kingdom and European markets through its UK branch and Ireland Re.The Insurance operation writes property and casualty insurance directly and through brokers,surplus lines brokers and general agents within the U.S.,Canada and Europe.These segments are managed in

167、dependently,but conform with corporate guidelines with respect to pricing,risk management,control of aggregate catastrophe exposures,capital,investments and support operations.Management generally monitors and evaluates the financial performance of these operating segments based upon their underwrit

168、ing results.Underwriting results include earned premium less losses and loss adjustment expenses(“LAE”)incurred,commission and brokerage expenses and other underwriting expenses.We measure our underwriting results using ratios,in particular loss,commission and brokerage and other underwriting expens

169、e ratios,which,respectively,divide incurred losses,commissions and brokerage and other underwriting expenses by premiums earned.The Company utilizes inter-affiliate reinsurance,although such reinsurance does not materially impact segment results,as business is generally reported within the segment i

170、n which the business was first produced.For selected financial information regarding these segments,see ITEM 8,“Financial Statements and Supplementary Data”-Note 17 of Notes to Consolidated Financial Statements and ITEM 7,“Managements Discussion and Analysis of Financial Condition and Results of Ope

171、ration-Segment Results”.6 Underwriting Operations.The following five year table presents the distribution of the Companys gross written premiums by its segments:U.S.Reinsurance,International,Bermuda and Insurance.The premiums for each segment are further split between property and casualty business

172、and,for reinsurance business,between pro rata or excess of loss business:Gross Written Premiums by Segment Years Ended December 31,(Dollars in millions)2019 2018 2017 2016 2015 U.S.Reinsurance Property Pro Rata(1)$875.5 9.6%$1,069.6 12.6%$848.4 11.8%$495.2 8.2%$591.3 10.0%Excess 846.5 9.3%1,031.9 12

173、.2%1,085.2 15.1%1,054.2 17.5%1,065.3 18.1%Casualty Pro Rata(1)945.0 10.3%702.2 8.3%460.7 6.4%378.2 6.3%319.9 5.4%Excess 295.4 3.2%210.6 2.5%198.7 2.8%198.2 3.3%171.3 2.9%Total(2)2,962.4 32.4%3,014.3 35.6%2,593.0 36.1%2,125.8 35.2%2,147.9 36.5%International Property Pro Rata(1)$628.0 6.9%$679.8 8.0%5

174、77.5 8.1%671.9 11.1%699.3 11.9%Excess 544.5 6.0%424.7 5.0%377.9 5.3%337.4 5.6%411.2 7.0%Casualty Pro Rata(1)264.1 2.9%281.0 3.3%236.4 3.3%111.7 1.9%113.4 1.9%Excess 212.0 2.3%158.4 1.9%125.0 1.7%109.7 1.8%110.4 1.9%Total(2)1,648.6 18.1%1,543.9 18.2%1,316.7 18.4%1,230.7 20.4%1,334.2 22.6%Bermuda Prop

175、erty Pro Rata(1)$470.7 5.2%$422.6 5.0%294.0 4.1%261.1 4.3%265.8 4.5%Excess 238.6 2.6%229.4 2.7%222.0 3.1%175.5 2.9%165.3 2.8%Casualty Pro Rata(1)785.7 8.6%773.7 9.1%407.7 5.7%318.6 5.3%281.0 4.8%Excess 249.9 2.7%240.6 2.8%281.2 3.9%135.2 2.2%165.2 2.8%Total(2)1,744.9 19.1%1,666.3 19.7%1,205.0 16.8%8

176、90.4 14.8%877.3 14.9%Total Reinsurance Property Pro Rata(1)$1,974.2 21.6%$2,172.0 25.6%1,719.9 24.0%1,428.2 23.7%1,556.4 26.4%Excess 1,629.6 17.8%1,686.0 19.9%1,685.1 23.5%1,567.1 26.0%1,641.8 27.9%Casualty Pro Rata(1)1,994.7 21.8%1,756.9 20.7%1,104.8 15.4%808.5 13.4%714.3 12.1%Excess 757.3 8.3%609.

177、7 7.2%604.9 8.4%443.1 7.3%446.9 7.6%Total(2)6,355.9 69.6%6,224.6 73.4%5,114.7 71.3%4,246.9 70.4%4,359.4 74.0%Insurance Property Pro Rata(1)$857.7 9.4%$645.9 7.6%725.1 10.1%716.4 11.9%592.2 10.1%Casualty Pro Rata(1)1,919.8 21.0%1,604.6 18.9%1,334.1 18.6%1,070.6 17.7%940.1 16.0%Total(2)2,777.5 30.4%2,

178、250.6 26.6%2,059.2 28.7%1,787.0 29.6%1,532.3 26.0%Total Company Property Pro Rata(1)$2,831.9 31.0%$2,818.0 33.2%2,445.1 34.1%2,144.6 35.5%2,148.6 36.5%Excess 1,629.6 17.8%1,686.0 19.9%1,685.1 23.5%1,567.1 26.0%1,641.8 27.9%Casualty Pro Rata(1)3,914.5 42.9%3,361.5 39.7%2,438.9 34.0%1,879.1 31.1%1,654

179、.3 28.1%Excess 757.3 8.3%609.7 7.2%604.9 8.4%443.1 7.3%446.9 7.6%Total(2)9,133.4 100.0%8,475.2 100.0%7,173.9 100.0%6,033.9 100.0%5,891.7 100.0%_ (1)For purposes of the presentation above,pro rata includes all insurance and reinsurance attaching to the first dollar of loss incurred by the ceding comp

180、any.(2)Certain totals and subtotals may not reconcile due to rounding.7 U.S.Reinsurance Segment.The Companys U.S.Reinsurance segment writes property and casualty reinsurance and specialty lines of business,including Marine,Aviation,Surety and A&H business,on both a treaty and facultative basis,throu

181、gh reinsurance brokers,as well as directly with ceding companies within the U.S.The marine and aviation business is written primarily through brokers and contains a significant international component.Surety business consists mainly of reinsurance of contract surety bonds.The Company targets certain

182、 brokers and,through the broker market,specialty companies and small to medium sized standard lines companies.The Company also targets companies that place their business predominantly in the direct market,including small to medium sized regional ceding companies,and seeks to develop long-term relat

183、ionships with those companies.In addition,the U.S.Reinsurance segment writes portions of reinsurance programs for large,national insurance companies.In 2019,$1,591.6 million of gross written premiums were attributable to U.S.treaty property business,of which 52.2%was written on a pro rata basis and

184、47.8%was written on an excess of loss basis.The Companys property underwriters utilize sophisticated underwriting methods to analyze and price property business.The Company manages its exposures to catastrophe and other large losses by limiting exposures on individual contracts and limiting aggregat

185、e exposures to catastrophes in any particular zone and across contiguous zones.U.S.treaty casualty business accounted for$1,008.4 million of gross written premiums in 2019,of which 85.0%was written on a pro rata basis and 15.0%was written on an excess of loss basis.The treaty casualty business consi

186、sts of professional liability,D&O liability,workers compensation,financial lines,excess and surplus lines and other liability coverages.As a result of the complex technical nature of most of these risks,the Companys casualty underwriters tend to specialize by line of business and work closely with t

187、he Companys pricing actuaries.The Companys facultative unit conducts business both through brokers and directly with ceding companies,and consists of three underwriting units representing property,casualty,and national brokerage lines of business.Business is written from a facultative headquarters o

188、ffice in New York and satellite offices in Chicago and Oakland.In 2019,$128.6 million,$44.8 million and$16.6 million of gross written premiums were attributable to the casualty,property and national brokerage lines of business,respectively.The marine and aviation units 2019 gross written premiums to

189、taled$91.1 million,all of which was written on a treaty basis,of which 93.7%was sourced through reinsurance brokers.Of the marine and aviation gross written premiums in 2019,marine treaties represented 50.1%and consisted mainly of hull and cargo coverage.In 2019,the marine units premiums were writte

190、n 67.1%on an excess of loss basis and 32.9%on a pro rata basis.Of the marine and aviation gross written premiums in 2019,aviation premiums accounted for 49.9%and included reinsurance of airline and general aviation risks.In 2019,the aviation units premiums were written 86.5%on a pro rata basis and 1

191、3.5%on an excess of loss basis.In 2019,gross written premiums of the surety unit totaled$57.9 million,80.4%of which was written on a pro rata basis.Most of the portfolio is reinsurance of contract surety bonds written directly with ceding companies,with the remainder being trade credit reinsurance,m

192、ostly in international markets.In 2019,gross written premium of the A&H reinsurance unit totaled$23.4 million,of which 75.6%was written through brokers.In 2019,96.7%and 3.3%of the U.S.Reinsurance segments gross written premiums were written in the broker reinsurance and direct reinsurance markets,re

193、spectively.International Segment.The Companys International segment focuses on opportunities in the international reinsurance markets.The Company targets several international markets,including:Canada,with a branch in Toronto;Asia,with a branch in Singapore and its Lloyds Syndicate;and Latin America

194、,Brazil,Africa and the Middle East,which business is serviced from Everest Res Miami and New Jersey offices.The Company also writes from New Jersey“home-foreign”business,which provides reinsurance on the international portfolios of U.S.insurers.Of the Companys 2019 international gross written premiu

195、ms,71.1%represented property business,while 28.9%represented casualty business.As with its U.S.operations,the Companys International segment focuses on financially sound companies that have strong management and 8 underwriting discipline and expertise.Of the Companys international business,74.9%was

196、written through brokers,with 25.1%written directly with ceding companies.Gross written premiums of the Companys Canadian branch totaled$186.2 million in 2019 and consisted of 32.7%of excess property business,23.5%of pro rata casualty business,23.3%of excess casualty business,and 20.5%of pro rata pro

197、perty business.Of the Canadian gross written premiums,69.3%consisted of treaty reinsurance,while 30.7%was facultative reinsurance.The Companys Singapore branch covers the Asian markets and accounted for$225.0 million of gross written premiums in 2019 and consisted of 62.2%of excess property business

198、,24.8%of pro rata property business,8.9%of pro rata casualty business and 4.2%of excess casualty business.International business written out of Everest Res Miami and New Jersey offices accounted for$1,237.4 million of gross written premiums in 2019 and consisted of 40.5%of pro rata treaty property b

199、usiness,20.1%of facultative business,19.6%of excess treaty property business,16.1%of pro rata treaty casualty business,and 3.7%of excess treaty casualty business.Of this international business,56.0%was sourced from Latin America,21.0%was home-foreign business,18.0%was sourced from the Middle East an

200、d 5%was sourced from Africa.Bermuda Segment.The Companys Bermuda segment writes property and casualty reinsurance through Bermuda Re and property and casualty reinsurance through its UK branch as well as through Ireland Re.In 2019,Bermuda Re had gross written premiums of$807.2 million,virtually all

201、of which was treaty reinsurance.In 2019,the UK branch of Bermuda Re wrote$638.6 million of gross treaty reinsurance premium consisting of 59.3%of excess casualty business,21.7%of pro rata casualty business,9.9%of pro rata property business and 9.2%of excess property business.In 2019,Ireland Re wrote

202、$281.9 million of gross treaty reinsurance premium consisting of 37.3%of pro rata property business,25.9%of excess property business,24.4%of pro rata casualty business,and 12.4%of excess casualty business.The Company writes assumed business with the segregated cells of Mt.Logan Re Ltd.(Bermuda)(“Mt.

203、Logan Re”)which represents a diversified set of catastrophe exposures,diversified by risk/peril and across different geographical regions globally.In 2019,gross written premium totaled$17.2 million,which was all on a property excess of loss basis.Insurance Segment.The Insurance segment writes proper

204、ty and casualty insurance through general agents,wholesale and retail brokers and surplus lines brokers within the U.S.,Canada,Ireland,Bermuda,and through the Companys Lloyds Syndicate.In 2019,the Companys Insurance segment wrote$2,777.5 million of gross written premiums,of which 69%was casualty and

205、 31%was property,principally targeting commercial business.Insurance business written directly through the Companys offices represented$2,033.1 million or 73%of the segments premium and$744.4 million or 27%was written through program administrators.In 2019 the Insurance Segment wrote$806.0 million o

206、f Specialty Casualty business consisting primarily of auto liability,primary and excess general liability,and some products liability written by multiple divisions with the largest including Specialty Casualty,Everest Underwriting Partners(“EUP”),Energy,Sports and Leisure,and Risk Management.Workers

207、 Compensation totaled$568.8 million of premium,written with a focus on the manufacturing,hospitality,construction and real estate industries,and written principally by the Risk Management,EUP and Energy divisions.Property/Short Tail business totaled$530.6 million consisting of commercial property,au

208、to physical damage and contingency business,written principally by the US Property,EUP and Everest Canada divisions.Professional Liability totaled$388.4 million consisting primarily of directors and officers liability,error and omissions,fiduciary liability,cyber liability,crime and employment pract

209、ices liability written principally by the Everest Specialty Underwriters(“ESU”)and Lloyds Syndicate divisions.Accident and Health totaled$336.8 million which includes principally medical stop loss,specialty medical business,pro sports disability and medicare supplement business.Other Specialty total

210、ed 9$146.9 million consisting of reps and warranty,credit and political risk,and surety written within the ESU division.Geographic Areas.The Company conducts its business in Bermuda,the U.S.and a number of foreign countries.For select financial information about geographic areas,see ITEM 8,“Financia

211、l Statements and Supplementary Data”-Note 17 of Notes to the Consolidated Financial Statements.Risks attendant to the foreign operations of the Company parallel those attendant to the U.S.operations of the Company,with the primary exception of foreign exchange risks.For more information about the ri

212、sks,see ITEM 7,“Managements Discussion and Analysis of Financial Condition and Results of Operations Safe Harbor Disclosure”.Underwriting.One of the Companys strategies is to lead as many of the reinsurance treaties it underwrites as possible.The Company leads on approximately two-thirds of its trea

213、ty reinsurance business as measured by premium.The lead reinsurer on a treaty generally accepts one of the largest percentage shares of the treaty and is in the strongest position to negotiate price,terms and conditions.Management believes this strategy enables it to obtain more favorable terms and

214、conditions on the treaties on which it participates.When the Company does not lead the treaty,it may still suggest changes to any aspect of the treaty.The Company may decline to participate on a treaty based upon its assessment of all relevant factors.The Companys treaty underwriting process involve

215、s a team approach among the Companys underwriters,actuaries and claim staff.Treaties are reviewed for compliance with the Companys general underwriting standards and most larger treaties are subjected to detailed actuarial analysis.The actuarial models used in such analyses are tailored in each case

216、 to the subject exposures and loss experience.The Company does not separately evaluate each of the individual risks assumed under its treaties.The Company does,however,evaluate the underwriting guidelines of its ceding companies to determine their adequacy prior to entering into a treaty.The Company

217、 may also conduct underwriting,operational and claim audits at the offices of ceding companies to monitor adherence to underwriting guidelines.Underwriting audits focus on the quality of the underwriting staff,pricing and risk selection and rate monitoring over time.Claim audits may be performed in

218、order to evaluate the clients claims handling abilities and practices.The Companys facultative underwriters operate within guidelines specifying acceptable types of risks,limits and maximum risk exposures.Specified classes of large premium U.S.risks are referred to Everest Res New York facultative h

219、eadquarters for specific review before premium quotations are given to clients.In addition,the Companys guidelines require certain types of risks to be submitted for review because of their aggregate limits,complexity or volatility,regardless of premium amount on the underlying contract.Non-U.S.risk

220、s exhibiting similar characteristics are reviewed by senior managers within the involved operations.In addition to its own underwriting staff,the Companys insurance operations write casualty coverages for homogeneous risks through select program managers.These programs are evaluated based upon actua

221、rial analysis and the program managers capabilities.The Companys rates,forms and underwriting guidelines are tailored to specific risk types.The Companys underwriting,actuarial,claim and financial functions work closely with its program managers to establish appropriate underwriting and processing g

222、uidelines as well as appropriate performance monitoring mechanisms.Risk Management of Underwriting and Reinsurance Arrangements Underwriting Risk and Accumulation Controls.Each segment and business unit manages its underwriting risk in accordance with established guidelines.These guidelines place do

223、llar limits on the amount of business that can be written based on a variety of factors,including(re)insured company profile,line of business,geographic location and risk hazards.In each case,the guidelines permit limited exceptions,which must be authorized by the Companys senior management.Manageme

224、nt regularly reviews and revises these guidelines in response to changes in business unit product offerings,market conditions,risk versus reward analyses and the Companys enterprise and underwriting risk management processes.The operating results and financial condition of the Company can be adverse

225、ly affected by catastrophe and other large losses.The Company manages its exposure to catastrophes and other large losses by:10?selective underwriting practices;?diversifying its risk portfolio by geographic area and by types and classes of business;?limiting its aggregate catastrophe loss exposure

226、in any particular geographic zone and contiguous zones;?purchasing reinsurance and/or retrocessional protection to the extent that such coverage can be secured cost-effectively.See“Reinsurance and Retrocession Arrangements”.Like other insurance and reinsurance companies,the Company is exposed to mul

227、tiple insured losses arising out of a single occurrence,whether a natural event,such as a hurricane or an earthquake,or other catastrophe,such as an explosion at a major factory.A large catastrophic event can be expected to generate insured losses to multiple reinsurance treaties,facultative certifi

228、cates and direct insurance policies across various lines of business.The Company focuses on potential losses that could result from any single event or series of events as part of its evaluation and monitoring of its aggregate exposures to catastrophic events.Accordingly,the Company employs various

229、techniques to estimate the amount of loss it could sustain from any single catastrophic event or series of events in various geographic areas.These techniques range from deterministic approaches,such as tracking aggregate limits exposed in catastrophe-prone zones and applying reasonable damage facto

230、rs,to modeled approaches that attempt to scientifically measure catastrophe loss exposure using sophisticated Monte Carlo simulation techniques that forecast frequency and severity of potential losses on a probabilistic basis.No single computer model,or group of models,is currently capable of projec

231、ting the amount and probability of loss in all global geographic regions in which the Company conducts business.In addition,the form,quality and granularity of underwriting exposure data furnished by(re)insureds is not uniformly compatible with the data requirements for the Companys licensed models,

232、which adds to the inherent imprecision in the potential loss projections.Further,the results from multiple models and analytical methods must be combined to estimate potential losses by and across business units.Also,while most models have been updated to incorporate claims information from recent c

233、atastrophic events,catastrophe model projections are still inherently imprecise.In addition,uncertainties with respect to future climatic patterns and cycles could add further uncertainty to loss projections from models based on historical data.Nevertheless,when combined with traditional risk manage

234、ment techniques and sound underwriting judgment,catastrophe models are a useful tool for underwriters to price catastrophe exposed risks and for providing management with quantitative analyses with which to monitor and manage catastrophic risk exposures by zone and across zones for individual and mu

235、ltiple events.Projected catastrophe losses are generally summarized in terms of the probable maximum loss(“PML”).The Company defines PML as its anticipated loss,taking into account contract terms and limits,caused by a single catastrophe affecting a broad contiguous geographic area,such as that caus

236、ed by a hurricane or earthquake.The PML will vary depending upon the modeled simulated losses and the make-up of the in force book of business.The projected severity levels are described in terms of“return periods”,such as“100-year events”and“250-year events”.For example,a 100-year PML is the estima

237、ted loss to the current in-force portfolio from a single event which has a 1%probability of being exceeded in a twelve month period.In other words,it corresponds to a 99%probability that the loss from a single event will fall below the indicated PML.It is important to note that PMLs are estimates.Mo

238、deled events are hypothetical events produced by a stochastic model.As a result,there can be no assurance that any actual event will align with the modeled event or that actual losses from events similar to the modeled events will not vary materially from the modeled event PML.From an enterprise ris

239、k management perspective,management sets limits on the levels of catastrophe loss exposure the Company may underwrite.The limits are revised periodically based on a variety of factors,including but not limited to the Companys financial resources and expected earnings and risk/reward analyses of the

240、business being underwritten.11 The Company may purchase reinsurance to cover specific business written or the potential accumulation or aggregation of exposures across some or all of its operations.Reinsurance purchasing decisions consider both the potential coverage and market conditions including

241、the pricing,terms,conditions,availability and collectability of coverage,with the aim of securing cost effective protection from financially secure counterparties.The amount of reinsurance purchased has varied over time,reflecting the Companys view of its exposures and the cost of reinsurance.Manage

242、ment estimates that the projected net economic loss from its largest 100-year event in a given zone represents approximately 6%of its December 31,2019 shareholders equity.Economic loss is the PML exposure,net of third party reinsurance,reduced by estimated reinstatement premiums to renew coverage an

243、d estimated income taxes.The impact of income taxes on the PML depends on the distribution of the losses by corporate entity,which is also affected by inter-affiliate reinsurance.Management also monitors and controls its largest PMLs at multiple points along the loss distribution curve,such as loss

244、amounts at the 20,50,100,250,500 and 1,000 year return periods.This process enables management to identify and control exposure accumulations and to integrate such exposures into enterprise risk,underwriting and capital management decisions.The Companys catastrophe loss projections,segmented by risk

245、 zones,are updated quarterly and reviewed as part of a formal risk management review process.The table below reflects the Companys PML exposure,net of third party reinsurance at various return periods for its top three zones/perils(as ranked by the largest 1 in 100 year economic loss)based on loss p

246、rojection data as of January 1,2020:Return Periods(in years)1 in 20 1 in 50 1 in 100 1 in 250 1 in 500 1 in 1,000 Exceeding Probability 5.0%2.0%1.0%0.4%0.2%0.1%(Dollars in millions)Zone/Peril California,Earthquake$134$453$715$850$977$1,498 Southeast U.S.,Wind 453 601 703 881 1,062 1,755 Europe Wind

247、145 370 605 884 1,012 1,076 The projected net economic losses,defined as PML exposures,net of third party reinsurance,reinstatement premiums and estimated income taxes,for the top three zones/perils scheduled above are as follows:Return Periods(in years)1 in 20 1 in 50 1 in 100 1 in 250 1 in 500 1 i

248、n 1,000 Exceeding Probability 5.0%2.0%1.0%0.4%0.2%0.1%(Dollars in millions)Zone/Peril California,Earthquake$108$346$534$643$730$1,265 Southeast U.S.,Wind 327 436 517 674 827 1,324 Europe Wind 124 304 487 725 830 884 The Company believes that its methods of monitoring,analyzing and managing catastrop

249、he exposures provide a credible risk management framework,which is integrated with its enterprise risk management,underwriting and capital management plans.However,there is much uncertainty and imprecision inherent in the catastrophe models and the catastrophe loss estimation process generally.As a

250、result,there can be no assurance that the Company will not experience losses from individual events that exceed the PML or other return period projections,perhaps by a material amount.Nor can there be assurance that the Company will not experience events impacting multiple zones,or multiple severe e

251、vents that could,in the aggregate,exceed the Companys PML expectations by a significant amount.Terrorism Risk.While the Company writes some reinsurance contracts covering terrorism,the Companys risk management philosophy is to limit the amount of exposure by geographic region,and to strictly manage

252、coverage for properties in areas that may be considered a target for terrorists.Providing terrorism coverage on reinsurance contracts is negotiable,and many,but not all,treaties contain exclusions which limit much of this risk.While many property insurance policies are required to offer coverage for

253、 terrorism,this coverage is 12 often not purchased.However,terrorism is typically covered by worker compensation policies.As a result,the Company is exposed to losses from terrorism on both its reinsurance and its insurance book of business,particularly its workers compensation and property policies

254、.However,the insurance book generally does not insure large corporations or corporate locations that represent large concentrations of risk.The U.S.Terrorism Risk Insurance Program Reauthorization Act of 2019 provides some protection to the insurance book of business.It also provides indirect protec

255、tion to exposed reinsurance treaties.However,the Company is still exposed to risk of loss from terrorism due to deductibles,co-pays and uncovered lines of business.Reinsurance and Retrocession Arrangements.The Company may purchase reinsurance to cover specific business written or the potential accum

256、ulation or aggregation of exposures across some or all of its operations.Reinsurance purchasing decisions consider both the potential coverage and market conditions including the pricing,terms,conditions and availability of coverage,with the aim of securing cost effective protection.The amount of re

257、insurance purchased has varied over time,reflecting the Companys view of its exposures and the cost of reinsurance.In recent years,the Company has increased its use of reinsurance offered through capital market facilities.The Company participates in“common account”retrocessional arrangements for cer

258、tain reinsurance treaties whereby a ceding company purchases reinsurance for the benefit of itself and its reinsurers under one or more of its reinsurance treaties.Common account retrocessional arrangements reduce the effect of individual or aggregate losses to all participating companies,including

259、the ceding company,with respect to the involved treaties.All of the Companys reinsurance and retrocessional agreements transfer significant reinsurance risk and therefore,are accounted for as reinsurance in accordance with the Financial Accounting Standards Board(“FASB”)guidance.At December 31,2019,

260、the Company had$1,763.5 million in reinsurance receivables with respect to both paid and unpaid losses ceded.Of this amount,$682.8 million,or 38.7%,was receivable from Mt.Logan Re collateralized segregated accounts;$147.8 million,or 8.4%,was receivable from Munich Reinsurance America,Inc.(“Munich Re

261、”)and$95.5 million,or 5.4%,was receivable from Zurich Versicherungs Gesellschaft(“Zurich”).No other retrocessionaire accounted for more than 5%of our receivables.Although management carefully selects its reinsurers,the Company is subject to credit risk with respect to its reinsurance because the ced

262、ing of risk to reinsurers does not relieve the Company of its liability to insureds or ceding companies.See ITEM 7,“Managements Discussion and Analysis of Financial Condition and Results of Operations Financial Condition”.Claims.Reinsurance and insurance claims are managed by the Companys profession

263、al claims staff whose responsibilities include reviewing initial loss reports and coverage issues,monitoring claims handling activities of ceding companies,establishing and adjusting proper case reserves and approving payment of claims.In addition to claims assessment,processing and payment,the clai

264、ms staff selectively conducts comprehensive claim audits of both specific claims and overall claim procedures at the offices of selected ceding companies.Some insurance claims are handled by third party claims service providers who have limited authority and are subject to oversight by the Companys

265、professional claims staff.The Company intensively manages its asbestos and environmental(“A&E”)exposures through a dedicated,centrally managed claim staff with experienced claim and legal professionals who specialize in the handling of such exposures.They actively manage each individual insured and

266、reinsured account,responding to claim developments with evaluations of the involved exposures and adjustment of reserves as appropriate.Specific or general claim developments that may have material implications for the Company are regularly communicated to senior management,actuarial,legal and finan

267、cial areas.Senior management and claim management personnel meet at least quarterly to review the Companys overall reserve positions and make changes,if appropriate.The Company continually reviews its internal processing,communications and analytics,seeking to enhance the management of its A&E expos

268、ures,in particular in regard to changes in asbestos claims and litigation.13 Reserves for Unpaid Property and Casualty Losses and LAE.Significant periods of time may elapse between the occurrence of an insured loss,the reporting of the loss to the insurer and the reinsurer and the payment of that lo

269、ss by the insurer and subsequent payments to the insurer by the reinsurer.To recognize liabilities for unpaid losses and LAE,insurers and reinsurers establish reserves,which are balance sheet liabilities representing estimates of future amounts needed to pay reported and unreported claims and relate

270、d expenses for losses that have already occurred.Actual losses and LAE paid may deviate,perhaps substantially,from such reserves.To the extent reserves prove to be insufficient to cover actual losses and LAE after taking into account available reinsurance coverage,the Company would have to recognize

271、 such reserve shortfalls and incur a charge to earnings,which could be material in the period such recognition takes place.See ITEM 7,“Managements Discussion and Analysis of Financial Condition and Results of Operations Loss and LAE Reserves”.As part of the reserving process,insurers and reinsurers

272、evaluate historical data and trends and make judgments as to the impact of various factors such as legislative and judicial developments that may affect future claim amounts,changes in social and political attitudes that may increase loss exposures and inflationary and general economic trends.While

273、the reserving process is difficult and subjective for insurance companies,the inherent uncertainties of estimating such reserves are even greater for the reinsurer,due primarily to the longer time between the date of an occurrence and the reporting of any attendant claims to the reinsurer,the divers

274、ity of development patterns among different types of reinsurance treaties or facultative contracts,the necessary reliance on the ceding companies for information regarding reported claims and differing reserving practices among ceding companies.In addition,trends that have affected development of li

275、abilities in the past may not necessarily occur or affect liability development in the same manner or to the same degree in the future.As a result,actual losses and LAE may deviate,perhaps substantially,from estimates of reserves reflected in the Companys consolidated financial statements.The Compan

276、ys loss and LAE reserves represent managements best estimate of the ultimate liability.While there can be no assurance that these reserves will not need to be increased in the future,management believes that the Companys existing reserves and reserving methodologies reduce the likelihood that any su

277、ch increases would have a material adverse effect on the Companys financial condition,results of operations or cash flows.These statements regarding the Companys loss reserves are forward looking statements within the meaning of the U.S.federal securities laws and are intended to be covered by the s

278、afe harbor provisions contained therein.See ITEM 7,“Managements Discussion and Analysis of Financial Condition and Results of Operations Safe Harbor Disclosure”.Like many other property and casualty insurance and reinsurance companies,the Company has experienced loss development for prior accident y

279、ears,which has impacted losses and LAE reserves and caused corresponding effects to income(loss)in the periods in which the adjustments were made.There can be no assurance that adverse development from prior years will not occur in the future or that such adverse development will not have a material

280、 adverse effect on net income(loss).14 The following table presents a reconciliation of beginning and ending reserve balances for the periods indicated on a GAAP basis:Years Ended December 31,(Dollars in millions)2019 2018 2017 Gross reserves at beginning of period$13,119.1$11,884.3$10,312.3 Incurre

281、d related to:Current year 4,986.5 5,264.3 4,816.0 Prior years (63.6)387.1 (293.4)Total incurred losses 4,922.9 5,651.4 4,522.6 Paid related to:Current year 2,042.3 1,700.7 1,280.6 Prior years 2,460.8 3,011.2 2,062.6 Total paid losses 4,503.1 4,711.9 3,343.2 Foreign exchange/translation adjustment 51

282、.3 (111.7)170.9 Change in reinsurance receivables on unpaid losses and LAE 21.1 407.0 221.8 Gross reserves at end of period$13,611.3$13,119.1$11,884.3 (Some amounts may not reconcile due to rounding.)Current year incurred losses were$4,986.5 million,$5,264.3 million and$4,816.0 million at December 3

283、1,2019,2018 and 2017,respectively.The decrease in current year incurred losses from 2018 to 2019 was primarily due to$693.5 million of lower catastrophe in 2019 compared to 2018,partially offset by$415.6 million of additional attritional losses related to higher premiums earned in 2019 compared to 2

284、018.Incurred prior years losses decreased by$63.6 million in 2019,increased by$387.1 million in 2018,and decreased by$293.4 million in 2017.The decrease for 2019 primarily related to reserve reductions associated with short-tail lines of business and workers compensation.The increase for 2018 was ma

285、inly due to$561.2 million of adverse development on prior years catastrophe losses,primarily related to Hurricanes Harvey,Irma and Maria,as well as the 2017 California wildfires.The increase in loss estimates for Hurricanes Harvey,Irma and Maria was mostly driven by re-opened claims,loss inflation f

286、rom higher than expected loss adjustment expenses and in particular,their impact on aggregate covers.This reserve increase was partially offset by$174.1 million of favorable development on prior years attritional losses which mainly related to U.S.and international property and casualty reinsurance

287、business,as well as favorable development in the Insurance segment which largely related to workers compensation business.The decrease for 2017 was attributable to favorable development in the reinsurance segments of$238.4 million,related primarily to property and short-tail business in the U.S.and

288、Bermuda as well as favorable development on prior year catastrophe losses,partially offset by$37.1 million of adverse development on A&E reserves.The insurance segment also experienced favorable development on prior year reserves of$55.0 million mainly on its workers compensation business,which is l

289、argely written in California.Since the Company has operations in many countries,part of the Companys loss and LAE reserves are in foreign currencies and translated to U.S.dollars for each reporting period.Fluctuations in the exchange rates for the currencies,period over period,affect the U.S.dollar

290、amount of outstanding reserves.The translation adjustment line at the bottom of the table eliminates the impact of the exchange fluctuations from the reserve re-estimates.Reserves for Asbestos and Environmental Losses and LAE.At December 31,2019,the Companys gross reserves for A&E claims represented

291、 1.9%of its total reserves.The Companys A&E liabilities stem from Mt.McKinley Insurance Companys(“Mt.McKinley”)direct insurance business and Everest Res assumed reinsurance business.Liabilities related to Mt.McKinleys 15 direct business,which had been ceded to Bermuda Re previously,were retroceded t

292、o an affiliate of Clearwater Insurance Company in July 2015,concurrent with the sale of Mt.McKinley to Clearwater Insurance Company.There are significant uncertainties in estimating the amount of the Companys potential losses from A&E claims and ultimate values cannot be estimated using traditional

293、reserving techniques.See ITEM 7,“Managements Discussion and Analysis of Financial Condition and Results of Operations Asbestos and Environmental Exposures”and Item 8,“Financial Statements and Supplementary Data”-Note 3 of Notes to Consolidated Financial Statements.The following table summarizes the

294、composition of the Companys total reserves for A&E losses,gross and net of reinsurance,for the periods indicated:Years Ended December 31,(Dollars in millions)2019 2018 2017 Gross reserves$257.9$347.5$449.0 Reinsurance receivable (29.2)(86.0)(130.9)Net reserves$228.7$261.5$318.1 (Some amounts may not

295、 reconcile due to rounding.)On July 13,2015,the Company sold Mt.McKinley to Clearwater Insurance Company.Concurrently with the closing,the Company entered into a retrocession treaty with an affiliate of Clearwater.Per the retrocession treaty,the Company retroceded 100%of the liabilities associated w

296、ith certain Mt.McKinley policies,which had been reinsured by Bermuda Re.As consideration for entering into the retrocession treaty,Bermuda Re transferred cash of$140.3 million,an amount equal to the net loss reserves as of the closing date.Of the$140.3 million of net loss reserves retroceded,$100.5

297、million were related to A&E business.The maximum liability retroceded under the retrocession treaty will be$440.3 million,equal to the retrocession payment plus$300.0 million.The Company will retain liability for any amounts exceeding the maximum liability retroceded under the retrocession treaty.On

298、 December 20,2019,the retrocession treaty was amended and included a partial commutation.As a result of this amendment and partial commutation,gross A&E reserves and correspondingly reinsurance receivable were reduced by$43.4 million.In addition,the maximum liability permitted to be retroceded incre

299、ased to$450.3 million.Additional losses,including those relating to latent injuries and other exposures,which are as yet unrecognized,the type or magnitude of which cannot be foreseen by either the Company or the industry,may emerge in the future.Such future emergence could have material adverse eff

300、ects on the Companys future financial condition,results of operations and cash flows.Future Policy Benefit Reserves.The Company wrote a limited amount of life and annuity reinsurance in its Bermuda segment.Future policy benefit liabilities for annuities are reported at the accumulated fund balance o

301、f these contracts.Reserves for those liabilities include mortality provisions with respect to life and annuity claims,both reported and unreported.Actual experience in a particular period may be worse than assumed experience and,consequently,may adversely affect the Companys operating results for th

302、at period.See ITEM 8,“Financial Statements and Supplementary Data”-Note 1F of Notes to Consolidated Financial Statements.16 Activity in the reserve for future policy benefits is summarized for the periods indicated:At December 31,(Dollars in millions)2019 2018 2017 Balance at beginning of year$46.8$

303、51.0$55.1 Liabilities assumed 0.1 0.1 0.1 Adjustments to reserves 0.4 0.8 (0.4)Benefits paid in the current year (4.6)(5.1)(3.7)Balance at end of year$42.6$46.8$51.0 (Some amounts may not reconcile due to rounding.)Investments.The board of directors of each of the Companys operating subsidiaries is

304、responsible for establishing investment policy and guidelines and,together with senior management,for overseeing their execution.The Companys principal investment objectives are to ensure funds are available to meet its insurance and reinsurance obligations and to maximize after-tax investment incom

305、e while maintaining a high quality diversified investment portfolio.Considering these objectives,the Company views its investment portfolio as having two components:1)the investments needed to satisfy outstanding liabilities(its core fixed maturities portfolio)and 2)investments funded by the Company

306、s shareholders equity.For the portion needed to satisfy global outstanding liabilities,the Company generally invests in taxable and tax-preferenced fixed income securities with an average credit quality of A1.For the U.S.portion of this portfolio,the Companys mix of taxable and tax-preferenced inves

307、tments is adjusted periodically,consistent with the Companys current and projected U.S.operating results,market conditions and our tax position.This global fixed maturity securities portfolio is externally managed by independent,professional investment managers using portfolio guidelines approved by

308、 the Company.Over the past several years,the Company has expanded the allocation of its investments funded by shareholders equity to include:1)a greater percentage of publicly traded equity securities,2)emerging market fixed maturities through mutual fund structures,as well as individual holdings,3)

309、high yield fixed maturities,4)bank and private loan securities and 5)private equity limited partnership investments.The objective of this portfolio diversification is to enhance the risk-adjusted total return of the investment portfolio by allocating a prudent portion of the portfolio to higher retu

310、rn asset classes,which are also less subject to changes in value with movements in interest rates.The Company limits its allocation to these asset classes because of 1)the potential for volatility in their values and 2)the impact of these investments on regulatory and rating agency capital adequacy

311、models.The Company uses investment managers experienced in these markets and adjusts its allocation to these investments based upon market conditions.At December 31,2019,the market value of investments in these investment market sectors,carried at both market and fair value,approximated 53.3%of shar

312、eholders equity.The duration of an investment is based on the maturity of the security but also reflects the payment of interest and the possibility of early prepayments.The Companys fixed income investment guidelines include a general duration guideline.This investment duration guideline is establi

313、shed and periodically revised by management,which considers economic and business factors,as well as the Companys average duration of potential liabilities,which,at December 31,2019,is estimated at approximately 3.1 years,based on the estimated payouts of underwriting liabilities using standard dura

314、tion calculations.The duration of the fixed income portfolio at December 31,2019 and 2018 was 3.5 years and 3.0 years,respectively.For each currency in which the Company has established substantial loss and LAE reserves,the Company seeks to maintain invested assets denominated in such currency in an

315、 amount approximately equal to the estimated liabilities.Approximately 37.0%of the Companys consolidated reserves for losses and LAE and unearned premiums represent amounts payable in foreign currencies.17 The Companys net investment income was$647.1 million,$581.2 million and$542.9 million for the

316、years ended December 31,2019,2018 and 2017,respectively.The increase from 2019 to 2018 was primarily due to higher income from the growing fixed income portfolio and an increase in limited partnership income,partially offset by lower dividend income from our equity portfolio.The increase from 2017 t

317、o 2018 was primarily due to higher income from the growing fixed income portfolio and an increase in limited partnership income,partially offset by lower dividend income from our equity portfolio.The Company had net realized capital gains for 2019 of$185.0 million.In 2019,the Company recorded$167.0

318、million of net gains from fair value re-measurements and$38.9 million of net realized capital gains from sales of investments,partially offset by$20.9 million of other-than-temporary impairments.In 2018,net realized capital losses were$127.1 million due to$67.3 million of net losses from fair value

319、re-measurements,$51.7 million of net realized capital losses from sales of investments and$8.1 million of other-than-temporary impairments.In 2017,net realized capital gains were$153.2 million due to$139.0 million of net gains from fair value re-measurements and$21.3 million of net realized capital

320、gains from sales of investments,partially offset by$7.1 million of other-than-temporary impairments.The Companys cash and invested assets totaled$20.7 billion at December 31,2019,which consisted of 87.0%fixed maturities and cash,of which 92.6%were investment grade;8.5%other invested assets and 4.5%e

321、quity securities.The average maturity of fixed maturity securities was 4.4 years at December 31,2019,and their overall duration was 3.5 years.As of December 31,2019,the Company did not have any direct investments in commercial real estate or direct commercial mortgages or any material holdings of de

322、rivative investments(other than equity index put option contracts as discussed in ITEM 8,“Financial Statements and Supplementary Data”-Note 4 of Notes to Consolidated Financial Statements)or securities of issuers that are experiencing cash flow difficulty to an extent that the Companys management be

323、lieves could threaten the issuers ability to meet debt service payments,except where other-than-temporary impairments have been recognized.The Companys investment portfolio includes structured commercial mortgage-backed securities(“CMBS”)with a book value of$814.6 million and a market value of$844.6

324、 million.CMBS securities comprising more than 98%of the December 31,2019 market value are rated AAA by Standard&Poors Financial Services LLC(“Standard&Poors”).Furthermore,all held CMBS securities are rated investment grade by Standard&Poors.The following table reflects investment results for the Com

325、pany for the periods indicated:December 31,Pre-tax Pre-tax Pre-tax Pre-tax Realized Net Unrealized Net Average Investment Effective Capital(Losses)Capital Gains(Dollars in millions)Investments(1)Income(2)Yield Gains(3)(Losses)2019$19,632.4$647.1 3.30%$185.0$532.9 2018 18,425.8 581.2 3.15%(127.1)(250

326、.9)2017 17,840.2 542.9 3.04%153.2 (94.8)2016 16,967.2 473.1 2.79%(7.2)96.6 2015 16,692.8 473.5 2.84%(184.1)(194.0)(1)Average of the beginning and ending carrying values of investments and cash,less net funds held,future policy benefit reserve,and non-interest bearing cash.Bonds,common stock and rede

327、emable and non-redeemable preferred stocks are carried at market value.Common stock,which are actively managed,are carried at fair value.(2)After investment expenses,excluding realized net capital gains(losses).(3)Included in 2019,2018,2017,2016 and 2015 are fair value re-measurements of$167.0 milli

328、on,($67.3)million,$139.0 million,$59.1 million,and($45.6)million,respectively.(Some amounts may not reconcile due to rounding.)18 The amortized cost,market value and gross unrealized appreciation and depreciation of available for sale,fixed maturity,equity security investments,carried at market valu

329、e and other-than-temporary impairments(“OTTI”)in accumulated other comprehensive income(“AOCI”)are as follows for the periods indicated:At December 31,2019 Amortized Unrealized Unrealized Market OTTI in AOCI(Dollars in thousands)Cost Appreciation Depreciation Value (a)Fixed maturity securities U.S.T

330、reasury securities and obligations of U.S.government agencies and corporations$1,489.7$28.3$(2.2)$1,515.8$Obligations of U.S.states and political subdivisions 507.4 29.6 (0.1)536.9 Corporate securities 6,227.6 185.1 (37.8)6,374.9 0.5 Asset-backed securities 892.4 6.8 (1.9)897.3 Mortgage-backed secur

331、ities Commercial 814.6 31.2 (1.2)844.6 Agency residential 2,173.1 36.4 (10.9)2,198.6 Non-agency residential 5.7 5.7 Foreign government securities 1,492.3 47.2 (33.5)1,506.0 0.1 Foreign corporate securities 2,870.7 108.0 (33.6)2,945.1 0.4 Total fixed maturity securities$16,473.5$472.6$(121.2)$16,824.

332、9$1.0 (Some amounts may not reconcile due to rounding.)At December 31,2018 Amortized Unrealized Unrealized Market OTTI in AOCI(Dollars in thousands)Cost Appreciation Depreciation Value (a)Fixed maturity securities U.S.Treasury securities and obligations of U.S.government agencies and corporations$2,

333、629.5$16.8$(15.2)$2,631.1$Obligations of U.S.states and political subdivisions 490.0 12.9 (2.8)500.1 0.4 Corporate securities 5,538.6 48.5 (141.6)5,445.5 1.7 Asset-backed securities 545.4 0.2 (5.5)540.1 Mortgage-backed securities Commercial 329.9 2.2 (5.4)326.7 Agency residential 1,832.8 7.3 (43.8)1,796.3 Non-agency residential 10.2 10.2 Foreign government securities 1,335.3 34.7 (55.8)1,314.2 0.1