Item 1.
Financial Statements
Consolidated Balance Sheets September 30, 2015 (unaudited)
and December 31, 2014 1
Consolidated Statements of Operations and Comprehensive Income (Loss) for the
three and nine months ended September 30, 2015 and 2014 (unaudited) 2
Consolidated Statements of Changes in Shareholders' Equity for the three and
nine months ended September 30, 2015 and 2014 (unaudited) 3
Consolidated Statements of Cash Flows for the nine months ended
September 30, 2015 and 2014 (unaudited) 4
Notes to Consolidated Interim Financial Statements (unaudited) 5
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operation 30
Item 3. Quantitative and Qualitative Disclosures About Market Risk 57
Item 4. Controls and Procedures 58
PART II
OTHER INFORMATION
| Item 1. | Legal Proceedings | 58 |
| Item 1A. | Risk Factors | 58 |
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 59 |
| Item 3. | Defaults Upon Senior Securities | 59 |
| Item 4. | Mine Safety Disclosures | 59 |
| Item 5. | Other Information | 59 |
| Item 6. | Exhibits | 60 |

EVEREST RE GROUP, LTD.
CONSOLIDATED BALANCE SHEETS
| September 30, | December 31, |
| (Dollars and share amounts in thousands, except par value per share) | 2015 | 2014 |
| (unaudited) |
| ASSETS: |
| Fixed maturities - available for sale, at market value | $ | 13,490,960 | $ | 13,101,067 |
| (amortized cost: 2015, $13,301,713; 2014, $12,831,159) |
| Fixed maturities - available for sale, at fair value | - | 1,509 |
| Equity securities - available for sale, at market value (cost: 2015, $127,411; 2014, $148,326) | 112,999 | 140,210 |
| Equity securities - available for sale, at fair value | 1,357,311 | 1,447,820 |
| Short-term investments | 1,615,045 | 1,705,932 |
| Other invested assets (cost: 2015, $669,686; 2014, $601,925) | 669,686 | 601,925 |
| Cash | 401,226 | 437,474 |
| Total investments and cash | 17,647,227 | 17,435,937 |
| Accrued investment income | 107,199 | 111,075 |
| Premiums receivable | 1,663,425 | 1,397,983 |
| Reinsurance receivables | 831,635 | 670,854 |
| Funds held by reinsureds | 272,775 | 228,192 |
| Deferred acquisition costs | 364,947 | 398,408 |
| Prepaid reinsurance premiums | 193,122 | 154,177 |
| Income taxes | 270,607 | 184,762 |
| Other assets | 331,374 | 236,436 |
| TOTAL ASSETS | $ | 21,682,311 | $ | 20,817,824 |
| LIABILITIES: |
| Reserve for losses and loss adjustment expenses | $ | 9,965,963 | $ | 9,720,813 |
| Future policy benefit reserve | 59,580 | 59,820 |
| Unearned premium reserve | 1,717,422 | 1,728,745 |
| Funds held under reinsurance treaties | 83,137 | 3,932 |
| Commission reserves | 79,904 | 87,990 |
| Other net payable to reinsurers | 199,528 | 139,841 |
| Losses in course of payment | 298,577 | 157,527 |
| 4.868% Senior notes due 6/1/2044 | 400,000 | 400,000 |
| 6.6% Long term notes due 5/1/2067 | 238,367 | 238,364 |
| Accrued interest on debt and borrowings | 12,341 | 3,537 |
| Equity index put option liability | 52,247 | 47,022 |
| Unsettled securities payable | 65,147 | 41,092 |
| Other liabilities | 271,086 | 316,469 |
| Total liabilities | 13,443,299 | 12,945,152 |
| NONCONTROLLING INTERESTS: |
| Redeemable noncontrolling interests - Mt. Logan Re | 752,692 | 421,552 |
| Commitments and contingencies (Note 9) |
| SHAREHOLDERS' EQUITY: |
| Preferred shares, par value: $0.01; 50,000 shares authorized; |
| no shares issued and outstanding | - | - |
| Common shares, par value: $0.01; 200,000 shares authorized; (2015) 68,585 |
| and (2014) 68,336 outstanding before treasury shares | 686 | 683 |
| Additional paid-in capital | 2,094,850 | 2,068,807 |
| Accumulated other comprehensive income (loss), net of deferred income tax expense |
| (benefit) of ($2,899) at 2015 and $20,715 at 2014 | (112,231 | ) | 48,317 |
| Treasury shares, at cost; 25,500 shares (2015) and 23,650 shares (2014) | (2,810,878 | ) | (2,485,897 | ) |
| Retained earnings | 8,313,893 | 7,819,210 |
| Total shareholders' equity attributable to Everest Re Group | 7,486,320 | 7,451,120 |
| TOTAL LIABILITIES, NONCONTROLLING INTERESTS AND SHAREHOLDERS' EQUITY | $ | 21,682,311 | $ | 20,817,824 |
| The accompanying notes are an integral part of the consolidated financial statements. |

1
EVEREST RE GROUP, LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
| Three Months Ended | Nine Months Ended |
| September 30, | September 30, |
| (Dollars in thousands, except per share amounts) | 2015 | 2014 | 2015 | 2014 |
| (unaudited) | (unaudited) |
| REVENUES: |
| Premiums earned | $ | 1,413,640 | $ | 1,389,998 | $ | 4,053,115 | $ | 3,806,805 |
| Net investment income | 115,511 | 142,143 | 363,140 | 396,524 |
| Net realized capital gains (losses): |
| Other-than-temporary impairments on fixed maturity securities | (20,445 | ) | (106 | ) | (62,701 | ) | (495 | ) |
| Other-than-temporary impairments on fixed maturity securities |
| transferred to other comprehensive income (loss) | - | - | - | - |
| Other net realized capital gains (losses) | (139,526 | ) | (9,342 | ) | (131,953 | ) | 71,189 |
| Total net realized capital gains (losses) | (159,971 | ) | (9,448 | ) | (194,654 | ) | 70,694 |
| Net derivative gain (loss) | (11,428 | ) | 1,855 | (5,225 | ) | 3,968 |
| Other income (expense) | 17,413 | 11,332 | 59,561 | (5,835 | ) |
| Total revenues | 1,375,165 | 1,535,880 | 4,275,937 | 4,272,156 |
| CLAIMS AND EXPENSES: |
| Incurred losses and loss adjustment expenses | 888,097 | 837,757 | 2,401,223 | 2,192,863 |
| Commission, brokerage, taxes and fees | 300,048 | 290,519 | 882,132 | 820,208 |
| Other underwriting expenses | 70,667 | 63,113 | 195,282 | 172,165 |
| Corporate expenses | 5,924 | 9,958 | 17,312 | 18,802 |
| Interest, fees and bond issue cost amortization expense | 8,990 | 12,424 | 27,006 | 28,970 |
| Total claims and expenses | 1,273,726 | 1,213,771 | 3,522,955 | 3,233,008 |
| INCOME (LOSS) BEFORE TAXES | 101,439 | 322,109 | 752,982 | 1,039,148 |
| Income tax expense (benefit) | (6,133 | ) | 20,856 | 70,868 | 137,948 |
| NET INCOME (LOSS) | $ | 107,572 | $ | 301,253 | $ | 682,114 | $ | 901,200 |
| Net (income) loss attributable to noncontrolling interests | (19,019 | ) | (26,337 | ) | (61,526 | ) | (42,167 | ) |
| NET INCOME (LOSS) ATTRIBUTABLE TO EVEREST RE GROUP | $ | 88,553 | $ | 274,916 | $ | 620,588 | $ | 859,033 |
| Other comprehensive income (loss), net of tax: |
| Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period | (91,059 | ) | (74,074 | ) | (144,335 | ) | 65,318 |
| Reclassification adjustment for realized losses (gains) included in net income (loss) | 24,596 | (5,684 | ) | 59,526 | (1,641 | ) |
| Total URA(D) on securities arising during the period | (66,463 | ) | (79,758 | ) | (84,809 | ) | 63,677 |
| Foreign currency translation adjustments | (32,505 | ) | (34,974 | ) | (80,508 | ) | (38,374 | ) |
| Benefit plan actuarial net gain (loss) for the period | - | - | - | - |
| Reclassification adjustment for amortization of net (gain) loss included in net income (loss) | 1,556 | 825 | 4,769 | 2,366 |
| Total benefit plan net gain (loss) for the period | 1,556 | 825 | 4,769 | 2,366 |
| Total other comprehensive income (loss), net of tax | (97,412 | ) | (113,907 | ) | (160,548 | ) | 27,669 |
| Other comprehensive (income) loss attributable to noncontrolling interests | - | - | - | - |
| Total other comprehensive income (loss), net of tax attributable to Everest Re Group | (97,412 | ) | (113,907 | ) | (160,548 | ) | 27,669 |
| COMPREHENSIVE INCOME (LOSS) | $ | (8,859 | ) | $ | 161,009 | $ | 460,040 | $ | 886,702 |
| EARNINGS PER COMMON SHARE ATTRIBUTABLE TO EVEREST RE GROUP: |
| Basic | $ | 2.02 | $ | 6.05 | $ | 14.04 | $ | 18.64 |
| Diluted | 2.00 | 6.00 | 13.92 | 18.47 |
| Dividends declared | 0.95 | 0.75 | 2.85 | 2.25 |
| The accompanying notes are an integral part of the consolidated financial statements. |

2
EVEREST RE GROUP, LTD.
CONSOLIDATED STATEMENTS OF
CHANGES IN SHAREHOLDERS' EQUITY
| Three Months Ended | Nine Months Ended |
| September 30, | September 30, |
| (Dollars in thousands, except share and dividends per share amounts) | 2015 | 2014 | 2015 | 2014 |
| (unaudited) | (unaudited) |
| COMMON SHARES (shares outstanding): |
| Balance, beginning of period | 44,192,526 | 45,691,015 | 44,685,637 | 47,543,132 |
| Issued during the period, net | 29,398 | 29,622 | 248,665 | 344,761 |
| Treasury shares acquired | (1,137,473 | ) | (470,807 | ) | (1,849,851 | ) | (2,638,063 | ) |
| Balance, end of period | 43,084,451 | 45,249,830 | 43,084,451 | 45,249,830 |
| COMMON SHARES (par value): |
| Balance, beginning of period | $ | 685 | $ | 683 | $ | 683 | $ | 680 |
| Issued during the period, net | 1 | - | 3 | 3 |
| Balance, end of period | 686 | 683 | 686 | 683 |
| ADDITIONAL PAID-IN CAPITAL: |
| Balance, beginning of period | 2,084,636 | 2,052,682 | 2,068,807 | 2,029,774 |
| Share-based compensation plans | 10,214 | 7,274 | 26,043 | 30,182 |
| Balance, end of period | 2,094,850 | 2,059,956 | 2,094,850 | 2,059,956 |
| ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), |
| NET OF DEFERRED INCOME TAXES: |
| Balance, beginning of period | (14,819 | ) | 299,304 | 48,317 | 157,728 |
| Net increase (decrease) during the period | (97,412 | ) | (113,907 | ) | (160,548 | ) | 27,669 |
| Balance, end of period | (112,231 | ) | 185,397 | (112,231 | ) | 185,397 |
| RETAINED EARNINGS: |
| Balance, beginning of period | 8,267,038 | 7,281,023 | 7,819,210 | 6,765,967 |
| Net income (loss) attributable to Everest Re Group | 88,553 | 274,916 | 620,588 | 859,033 |
| Dividends declared ($0.95 per share in third quarter 2015 and $2.85 year-to-date |
| per share in 2015 and $0.75 per share in third quarter 2014 and $2.25 |
| year-to-date per share in 2014) | (41,698 | ) | (33,973 | ) | (125,905 | ) | (103,034 | ) |
| Balance, end of period | 8,313,893 | 7,521,966 | 8,313,893 | 7,521,966 |
| TREASURY SHARES AT COST: |
| Balance, beginning of period | (2,610,878 | ) | (2,310,824 | ) | (2,485,897 | ) | (1,985,873 | ) |
| Purchase of treasury shares | (200,000 | ) | (74,991 | ) | (324,981 | ) | (399,942 | ) |
| Balance, end of period | (2,810,878 | ) | (2,385,815 | ) | (2,810,878 | ) | (2,385,815 | ) |
| TOTAL SHAREHOLDERS' EQUITY, END OF PERIOD | $ | 7,486,320 | $ | 7,382,187 | $ | 7,486,320 | $ | 7,382,187 |
| The accompanying notes are an integral part of the consolidated financial statements. |

3
EVEREST RE GROUP, LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Nine Months Ended |
| September 30, |
| (Dollars in thousands) | 2015 | 2014 |
| (unaudited) |
| CASH FLOWS FROM OPERATING ACTIVITIES: |
| Net income (loss) | $ | 682,114 | $ | 901,200 |
| Adjustments to reconcile net income to net cash provided by operating activities: |
| Decrease (increase) in premiums receivable | (274,198 | ) | (255,645 | ) |
| Decrease (increase) in funds held by reinsureds, net | 33,255 | (6,929 | ) |
| Decrease (increase) in reinsurance receivables | (202,329 | ) | (256,458 | ) |
| Decrease (increase) in income taxes | (61,627 | ) | (14,696 | ) |
| Decrease (increase) in prepaid reinsurance premiums | (46,633 | ) | (101,478 | ) |
| Increase (decrease) in reserve for losses and loss adjustment expenses | 347,729 | 172,511 |
| Increase (decrease) in future policy benefit reserve | (240 | ) | (1,879 | ) |
| Increase (decrease) in unearned premiums | 1,455 | 255,537 |
| Increase (decrease) in other net payable to reinsurers | 67,550 | 101,984 |
| Increase (decrease) in losses in course of payment | 142,418 | 165,105 |
| Change in equity adjustments in limited partnerships | (12,725 | ) | (24,438 | ) |
| Distribution of limited partnership income | 42,625 | 41,165 |
| Change in other assets and liabilities, net | 18,573 | (32,114 | ) |
| Non-cash compensation expense | 16,150 | 14,720 |
| Amortization of bond premium (accrual of bond discount) | 38,770 | 38,010 |
| Amortization of underwriting discount on senior notes | 3 | 43 |
| Net realized capital (gains) losses | 194,654 | (70,694 | ) |
| Net cash provided by (used in) operating activities | 987,544 | 925,944 |
| CASH FLOWS FROM INVESTING ACTIVITIES: |
| Proceeds from fixed maturities matured/called - available for sale, at market value | 1,687,589 | 1,638,278 |
| Proceeds from fixed maturities matured/called - available for sale, at fair value | - | 875 |
| Proceeds from fixed maturities sold - available for sale, at market value | 1,146,000 | 1,050,082 |
| Proceeds from fixed maturities sold - available for sale, at fair value | 1,824 | 23,856 |
| Proceeds from equity securities sold - available for sale, at market value | 22,120 | 11,174 |
| Proceeds from equity securities sold - available for sale, at fair value | 439,692 | 452,514 |
| Distributions from other invested assets | 41,782 | 59,264 |
| Proceeds from sale of subsidiary (net of cash disposed) | 3,934 | - |
| Cost of fixed maturities acquired - available for sale, at market value | (3,583,990 | ) | (3,729,423 | ) |
| Cost of fixed maturities acquired - available for sale, at fair value | (234 | ) | (23,684 | ) |
| Cost of equity securities acquired - available for sale, at market value | (6,581 | ) | (11,873 | ) |
| Cost of equity securities acquired - available for sale, at fair value | (460,965 | ) | (262,871 | ) |
| Cost of other invested assets acquired | (140,923 | ) | (120,911 | ) |
| Net change in short-term investments | 83,584 | (284,822 | ) |
| Net change in unsettled securities transactions | (18,242 | ) | 13,496 |
| Net cash provided by (used in) investing activities | (784,410 | ) | (1,184,045 | ) |
| CASH FLOWS FROM FINANCING ACTIVITIES: |
| Common shares issued during the period, net | 9,896 | 15,465 |
| Purchase of treasury shares | (324,981 | ) | (399,942 | ) |
| Net proceeds from issuance of senior notes | - | 400,000 |
| Third party investment in redeemable noncontrolling interest | 296,848 | 136,200 |
| Dividends paid to shareholders | (125,905 | ) | (103,034 | ) |
| Dividends paid on third party investment in redeemable noncontrolling interest | (67,233 | ) | (10,334 | ) |
| Net cash provided by (used in) financing activities | (211,375 | ) | 38,355 |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH | (28,007 | ) | 10,167 |
| Net increase (decrease) in cash | (36,248 | ) | (209,579 | ) |
| Cash, beginning of period | 437,474 | 611,382 |
| Cash, end of period | $ | 401,226 | $ | 401,803 |
| SUPPLEMENTAL CASH FLOW INFORMATION: |
| Income taxes paid (recovered) | $ | 123,234 | $ | 146,560 |
| Interest paid | 18,039 | 15,150 |
| The accompanying notes are an integral part of the consolidated financial statements. |

4
NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
For the Three and Nine Months Ended September 30, 2015 and 2014
1. GENERAL
Everest Re Group, Ltd. ("Group"), a Bermuda company, through its subsidiaries, principally provides reinsurance and insurance in the U.S., Bermuda and international markets. As used in this document, "Company" means Group and its subsidiaries.
Effective February 27, 2013, the Company established a new subsidiary, Mt. Logan Re Ltd. ("Mt. Logan Re") and effective July 1, 2013, Mt. Logan Re established separate segregated accounts and issued non-voting redeemable preferred shares to capitalize the segregated accounts. Accordingly, the financial position and operating results for Mt. Logan Re are consolidated with the Company and the non-controlling interests in Mt. Logan Re's operating results and equity are presented as separate captions in the Company's financial statements.
Effective July 13, 2015, the Company sold all of the outstanding shares of capital stock of a wholly-owned subsidiary entity, Mt. McKinley Insurance Company ("Mt. McKinley"), to Clearwater Insurance Company. The operating results of Mt. McKinley through July 13, 2015 are included within the Company's financial statements.
2. BASIS OF PRESENTATION
The unaudited consolidated financial statements of the Company for the three and nine months ended September 30, 2015 and 2014 include all adjustments, consisting of normal recurring accruals, which, in the opinion of management, are necessary for a fair statement of the results on an interim basis. Certain financial information, which is normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"), has been omitted since it is not required for interim reporting purposes. The December 31, 2014 consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. The results for the three and nine months ended September 30, 2015 and 2014 are not necessarily indicative of the results for a full year. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the years ended December 31, 2014, 2013 and 2012 included in the Company's most recent Form 10-K filing.
All intercompany accounts and transactions have been eliminated.
Application of Recently Issued Accounting Standard Changes.
No accounting standards or guidance have been issued recently that would have a material impact on the Company's financial statements or financial reporting process.
5
3. INVESTMENTS
The amortized cost, market value and gross unrealized appreciation and depreciation of available for sale, fixed maturity, equity security investments, carried at market value and other-than-temporary impairments ("OTTI") in accumulated other comprehensive income ("AOCI") are as follows for the periods indicated:
| At September 30, 2015 |
| 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 | $ | 337,271 | $ | 15,725 | $ | (70 | ) | $ | 352,926 | $ | - |
| Obligations of U.S. states and political subdivisions | 683,715 | 32,087 | (1,523 | ) | 714,279 | - |
| Corporate securities | 4,964,570 | 118,763 | (76,396 | ) | 5,006,937 | 2,006 |
| Asset-backed securities | 437,376 | 2,575 | (1,554 | ) | 438,397 | - |
| Mortgage-backed securities |
| Commercial | 277,907 | 7,697 | (795 | ) | 284,809 | - |
| Agency residential | 2,392,937 | 39,295 | (6,165 | ) | 2,426,067 | - |
| Non-agency residential | 971 | 53 | (46 | ) | 978 | - |
| Foreign government securities | 1,285,006 | 60,837 | (44,882 | ) | 1,300,961 | (2 | ) |
| Foreign corporate securities | 2,921,960 | 115,881 | (72,235 | ) | 2,965,606 | 39 |
| Total fixed maturity securities | $ | 13,301,713 | $ | 392,913 | $ | (203,666 | ) | $ | 13,490,960 | $ | 2,043 |
| Equity securities | $ | 127,411 | $ | 3,509 | $ | (17,921 | ) | $ | 112,999 | $ | - |

| At December 31, 2014 |
| 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 | $ | 221,052 | $ | 10,290 | $ | (304 | ) | $ | 231,038 | $ | - |
| Obligations of U.S. states and political subdivisions | 783,129 | 41,969 | (626 | ) | 824,472 | - |
| Corporate securities | 4,626,002 | 143,889 | (62,906 | ) | 4,706,985 | (6,910 | ) |
| Asset-backed securities | 340,761 | 1,691 | (1,230 | ) | 341,222 | - |
| Mortgage-backed securities |
| Commercial | 231,439 | 10,675 | (429 | ) | 241,685 | - |
| Agency residential | 2,157,182 | 37,555 | (11,573 | ) | 2,183,164 | - |
| Non-agency residential | 2,734 | 54 | (57 | ) | 2,731 | - |
| Foreign government securities | 1,488,144 | 71,177 | (26,866 | ) | 1,532,455 | - |
| Foreign corporate securities | 2,980,716 | 109,673 | (53,074 | ) | 3,037,315 | - |
| Total fixed maturity securities | $ | 12,831,159 | $ | 426,973 | $ | (157,065 | ) | $ | 13,101,067 | $ | (6,910 | ) |
| Equity securities | $ | 148,326 | $ | 3,831 | $ | (11,947 | ) | $ | 140,210 | $ | - |

(a) Represents the amount of OTTI recognized in AOCI. Amount includes unrealized gains and losses on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date.
6
The amortized cost and market value of fixed maturity securities are shown in the following table by contractual maturity. Mortgage-backed securities are generally more likely to be prepaid than other fixed maturity securities. As the stated maturity of such securities may not be indicative of actual maturities, the totals for mortgage-backed and asset-backed securities are shown separately.
| At September 30, 2015 | At December 31, 2014 |
| Amortized | Market | Amortized | Market |
| (Dollars in thousands) | Cost | Value | Cost | Value |
| Fixed maturity securities – available for sale: |
| Due in one year or less | $ | 1,080,129 | $ | 1,088,140 | $ | 1,183,247 | $ | 1,189,416 |
| Due after one year through five years | 5,906,738 | 5,991,760 | 5,646,466 | 5,726,277 |
| Due after five years through ten years | 2,377,276 | 2,382,188 | 2,270,073 | 2,313,672 |
| Due after ten years | 828,380 | 878,621 | 999,257 | 1,102,900 |
| Asset-backed securities | 437,376 | 438,397 | 340,761 | 341,222 |
| Mortgage-backed securities: |
| Commercial | 277,906 | 284,809 | 231,439 | 241,685 |
| Agency residential | 2,392,937 | 2,426,067 | 2,157,182 | 2,183,164 |
| Non-agency residential | 971 | 978 | 2,734 | 2,731 |
| Total fixed maturity securities | $ | 13,301,713 | $ | 13,490,960 | $ | 12,831,159 | $ | 13,101,067 |

The changes in net unrealized appreciation (depreciation) for the Company's investments are derived from the following sources for the periods indicated:
| Three Months Ended | Nine Months Ended |
| September 30, | September 30, |
| (Dollars in thousands) | 2015 | 2014 | 2015 | 2014 |
| Increase (decrease) during the period between the market value and cost |
| of investments carried at market value, and deferred taxes thereon: |
| Fixed maturity securities | $ | (71,706 | ) | $ | (87,859 | ) | $ | (89,616 | ) | $ | 70,010 |
| Fixed maturity securities, other-than-temporary impairment | (253 | ) | (261 | ) | 8,954 | (180 | ) |
| Equity securities | (4,415 | ) | (3,287 | ) | (6,295 | ) | 3,327 |
| Change in unrealized appreciation (depreciation), pre-tax | (76,374 | ) | (91,407 | ) | (86,957 | ) | 73,157 |
| Deferred tax benefit (expense) | 9,919 | 11,649 | 5,563 | (9,480 | ) |
| Deferred tax benefit (expense), other-than-temporary impairment | (8 | ) | - | (3,415 | ) | - |
| Change in unrealized appreciation (depreciation), |
| net of deferred taxes, included in shareholders' equity | $ | (66,463 | ) | $ | (79,758 | ) | $ | (84,809 | ) | $ | 63,677 |

The Company frequently reviews all of its fixed maturity, available for sale securities for declines in market value and focuses its attention on securities whose fair value has fallen below 80% of their amortized cost at the time of review. The Company then assesses whether the decline in value is temporary or other-than-temporary. In making its assessment, the Company evaluates the current market and interest rate environment as well as specific issuer information. Generally, a change in a security's value caused by a change in the market, interest rate or foreign exchange environment does not constitute an other-than-temporary impairment, but rather a temporary decline in market value. Temporary declines in market value are recorded as unrealized losses in accumulated other comprehensive income (loss). If the Company determines that the decline is other-than-temporary and the Company does not have the intent to sell the security; and it is more likely than not that the Company will not have to sell the security before recovery of its cost basis, the carrying value of the investment is written down to fair value. The fair value adjustment that is credit or foreign exchange related is recorded in net realized capital gains (losses) in the Company's consolidated statements of operations and comprehensive income (loss). The fair value adjustment that is non-credit related is recorded as a component of other comprehensive income (loss), net of tax, and is included in accumulated other comprehensive income (loss) in the Company's consolidated balance sheets.
7
The Company's assessments are based on the issuers current and expected future financial position, timeliness with respect to interest and/or principal payments, speed of repayments and any applicable credit enhancements or breakeven constant default rates on mortgage-backed and asset-backed securities, as well as relevant information provided by rating agencies, investment advisors and analysts.
The majority of the Company's equity securities available for sale at market value are primarily comprised of mutual fund investments whose underlying securities consist of fixed maturity securities. When a fund's value reflects an unrealized loss, the Company assesses whether the decline in value is temporary or other-than-temporary. In making its assessment, the Company considers the composition of its portfolios and their related markets, reports received from the portfolio managers and discussions with portfolio managers. If the Company determines that the declines are temporary and it has the ability and intent to continue to hold the investments, then the declines are recorded as unrealized losses in accumulated other comprehensive income (loss). If declines are deemed to be other-than-temporary, then the carrying value of the investment is written down to fair value and recorded in net realized capital gains (losses) in the Company's consolidated statements of operations and comprehensive income (loss).
Retrospective adjustments are employed to recalculate the values of asset-backed securities. All of the Company's asset-backed and mortgage-backed securities have a pass-through structure. Each acquisition lot is reviewed to recalculate the effective yield. The recalculated effective yield is used to derive a book value as if the new yield were applied at the time of acquisition. Outstanding principal factors from the time of acquisition to the adjustment date are used to calculate the prepayment history for all applicable securities. Conditional prepayment rates, computed with life to date factor histories and weighted average maturities, are used in the calculation of projected prepayments for pass-through security types.
The tables below display the aggregate market value and gross unrealized depreciation of fixed maturity and equity securities, by security type and contractual maturity, in each case subdivided according to length of time that individual securities had been in a continuous unrealized loss position for the periods indicated:
| Duration of Unrealized Loss at September 30, 2015 By Security Type |
| Less than 12 months | Greater than 12 months | Total |
| Gross | Gross | Gross |
| Unrealized | Unrealized | Unrealized |
| (Dollars in thousands) | Market Value | Depreciation | Market Value | Depreciation | Market Value | Depreciation |
| Fixed maturity securities - available for sale |
| U.S. Treasury securities and obligations of |
| U.S. government agencies and corporations | $ | 201 | $ | (1 | ) | $ | 1,844 | $ | (69 | ) | $ | 2,045 | $ | (70 | ) |
| Obligations of U.S. states and political subdivisions | 20,162 | (316 | ) | 35,460 | (1,207 | ) | 55,622 | (1,523 | ) |
| Corporate securities | 1,323,515 | (51,785 | ) | 425,091 | (24,611 | ) | 1,748,606 | (76,396 | ) |
| Asset-backed securities | 89,526 | (674 | ) | 44,765 | (880 | ) | 134,291 | (1,554 | ) |
| Mortgage-backed securities |
| Commercial | 44,260 | (795 | ) | - | - | 44,260 | (795 | ) |
| Agency residential | 343,504 | (2,182 | ) | 382,730 | (3,983 | ) | 726,234 | (6,165 | ) |
| Non-agency residential | 176 | (2 | ) | 44 | (44 | ) | 220 | (46 | ) |
| Foreign government securities | 299,055 | (22,177 | ) | 183,387 | (22,705 | ) | 482,442 | (44,882 | ) |
| Foreign corporate securities | 699,077 | (40,165 | ) | 279,126 | (32,070 | ) | 978,203 | (72,235 | ) |
| Total fixed maturity securities | $ | 2,819,476 | $ | (118,097 | ) | $ | 1,352,447 | $ | (85,569 | ) | $ | 4,171,923 | $ | (203,666 | ) |
| Equity securities | - | - | 97,871 | (17,921 | ) | 97,871 | (17,921 | ) |
| Total | $ | 2,819,476 | $ | (118,097 | ) | $ | 1,450,318 | $ | (103,490 | ) | $ | 4,269,794 | $ | (221,587 | ) |

8
| Duration of Unrealized Loss at September 30, 2015 By Maturity |
| Less than 12 months | Greater than 12 months | Total |
| Gross | Gross | Gross |
| Unrealized | Unrealized | Unrealized |
| (Dollars in thousands) | Market Value | Depreciation | Market Value | Depreciation | Market Value | Depreciation |
| Fixed maturity securities |
| Due in one year or less | $ | 85,547 | $ | (4,021 | ) | $ | 83,375 | $ | (12,950 | ) | $ | 168,922 | $ | (16,971 | ) |
| Due in one year through five years | 1,220,223 | (50,689 | ) | 577,851 | (41,640 | ) | 1,798,074 | (92,329 | ) |
| Due in five years through ten years | 924,605 | (51,295 | ) | 208,989 | (20,624 | ) | 1,133,594 | (71,919 | ) |
| Due after ten years | 111,635 | (8,439 | ) | 54,693 | (5,448 | ) | 166,328 | (13,887 | ) |
| Asset-backed securities | 89,526 | (674 | ) | 44,765 | (880 | ) | 134,291 | (1,554 | ) |
| Mortgage-backed securities | 387,940 | (2,979 | ) | 382,774 | (4,027 | ) | 770,714 | (7,006 | ) |
| Total fixed maturity securities | $ | 2,819,476 | $ | (118,097 | ) | $ | 1,352,447 | $ | (85,569 | ) | $ | 4,171,923 | $ | (203,666 | ) |

The aggregate market value and gross unrealized losses related to investments in an unrealized loss position at September 30, 2015 were $4,269,794 thousand and $221,587 thousand, respectively. The market value of securities for the single issuer whose securities comprised the largest unrealized loss position at September 30, 2015, did not exceed 0.2% of the overall market value of the Company's fixed maturity securities. In addition, as indicated on the above table, there was no significant concentration of unrealized losses in any one market sector. The $118,097 thousand of unrealized losses related to fixed maturity securities that have been in an unrealized loss position for less than one year were generally comprised of domestic and foreign corporate securities, as well as foreign government securities. The majority of these unrealized losses are attributable to net unrealized foreign exchange losses, $44,092 thousand, as the U.S. dollar has strengthened against other currencies and unrealized losses in the energy sector, $43,353 thousand, as falling oil prices have disrupted the market values for this sector, particularly for oil exploration, production and servicing companies. The $85,569 thousand of unrealized losses related to fixed maturity securities in an unrealized loss position for more than one year related primarily to foreign and domestic corporate securities, foreign government securities and agency residential mortgage-backed securities. Of these unrealized losses, $60,407 thousand related to securities that were rated investment grade by at least one nationally recognized statistical rating organization. There was no gross unrealized depreciation for mortgage-backed securities related to sub-prime and alt-A loans. In all instances, there were no projected cash flow shortfalls to recover the full book value of the investments and the related interest obligations. The mortgage-backed securities still have excess credit coverage and are current on interest and principal payments.
The Company, given the size of its investment portfolio and capital position, does not have the intent to sell these securities; and it is more likely than not that the Company will not have to sell the security before recovery of its cost basis. In addition, all securities currently in an unrealized loss position are current with respect to principal and interest payments.
9
The tables below display the aggregate market value and gross unrealized depreciation of fixed maturity and equity securities, by security type and contractual maturity, in each case subdivided according to length of time that individual securities had been in a continuous unrealized loss position for the periods indicated:
| Duration of Unrealized Loss at December 31, 2014 By Security Type |
| Less than 12 months | Greater than 12 months | Total |
| Gross | Gross | Gross |
| Unrealized | Unrealized | Unrealized |
| (Dollars in thousands) | Market Value | Depreciation | Market Value | Depreciation | Market Value | Depreciation |
| Fixed maturity securities - available for sale |
| U.S. Treasury securities and obligations of |
| U.S. government agencies and corporations | $ | 13,187 | $ | (20 | ) | $ | 26,897 | $ | (284 | ) | $ | 40,084 | $ | (304 | ) |
| Obligations of U.S. states and political subdivisions | 20,428 | (242 | ) | 18,199 | (384 | ) | 38,627 | (626 | ) |
| Corporate securities | 1,245,830 | (55,388 | ) | 362,320 | (7,518 | ) | 1,608,150 | (62,906 | ) |
| Asset-backed securities | 192,253 | (1,230 | ) | - | - | 192,253 | (1,230 | ) |
| Mortgage-backed securities |
| Commercial | 28,191 | (123 | ) | 9,777 | (306 | ) | 37,968 | (429 | ) |
| Agency residential | 141,807 | (172 | ) | 678,972 | (11,401 | ) | 820,779 | (11,573 | ) |
| Non-agency residential | - | - | 266 | (57 | ) | 266 | (57 | ) |
| Foreign government securities | 235,725 | (15,415 | ) | 139,200 | (11,451 | ) | 374,925 | (26,866 | ) |
| Foreign corporate securities | 567,905 | (36,926 | ) | 290,234 | (16,148 | ) | 858,139 | (53,074 | ) |
| Total fixed maturity securities | $ | 2,445,326 | $ | (109,516 | ) | $ | 1,525,865 | $ | (47,549 | ) | $ | 3,971,191 | $ | (157,065 | ) |
| Equity securities | 50,285 | (4,068 | ) | 73,994 | (7,879 | ) | 124,279 | (11,947 | ) |
| Total | $ | 2,495,611 | $ | (113,584 | ) | $ | 1,599,859 | $ | (55,428 | ) | $ | 4,095,470 | $ | (169,012 | ) |

| Duration of Unrealized Loss at December 31, 2014 By Maturity |
| Less than 12 months | Greater than 12 months | Total |
| Gross | Gross | Gross |
| Unrealized | Unrealized | Unrealized |
| (Dollars in thousands) | Market Value | Depreciation | Market Value | Depreciation | Market Value | Depreciation |
| Fixed maturity securities |
| Due in one year or less | $ | 98,021 | $ | (5,166 | ) | $ | 80,002 | $ | (8,174 | ) | $ | 178,023 | $ | (13,340 | ) |
| Due in one year through five years | 1,233,244 | (68,124 | ) | 518,613 | (12,761 | ) | 1,751,857 | (80,885 | ) |
| Due in five years through ten years | 679,374 | (28,529 | ) | 187,717 | (10,734 | ) | 867,091 | (39,263 | ) |
| Due after ten years | 72,436 | (6,172 | ) | 50,518 | (4,116 | ) | 122,954 | (10,288 | ) |
| Asset-backed securities | 192,253 | (1,230 | ) | - | - | 192,253 | (1,230 | ) |
| Mortgage-backed securities | 169,998 | (295 | ) | 689,015 | (11,764 | ) | 859,013 | (12,059 | ) |
| Total fixed maturity securities | $ | 2,445,326 | $ | (109,516 | ) | $ | 1,525,865 | $ | (47,549 | ) | $ | 3,971,191 | $ | (157,065 | ) |

The aggregate market value and gross unrealized losses related to investments in an unrealized loss position at December 31, 2014 were $4,095,470 thousand and $169,012 thousand, respectively. The market value of securities for the single issuer whose securities comprised the largest unrealized loss position at December 31, 2014, did not exceed 0.2% of the overall market value of the Company's fixed maturity securities. In addition, as indicated on the above table, there was no significant concentration of unrealized losses in any one market sector. The $109,516 thousand of unrealized losses related to fixed maturity securities that have been in an unrealized loss position for less than one year were generally comprised of domestic and foreign corporate securities, as well as foreign government securities. The majority of these unrealized losses are attributable to unrealized losses in the energy sector, $58,891 thousand, as falling oil prices disrupted the market values for this sector, particularly for oil exploration, production and servicing companies during the fourth quarter of 2014 and unrealized foreign exchange losses, $34,687 thousand, as the U.S. dollar has strengthened against other currencies. The $47,549 thousand of unrealized losses related to fixed maturity securities in an unrealized loss position for more than one year related primarily to foreign and domestic corporate securities, foreign government securities and agency residential mortgage-backed securities. Of these unrealized losses, $42,884 thousand related to securities that were rated investment grade by at least one nationally recognized statistical rating organization. The gross unrealized depreciation for mortgage-backed securities included $15 thousand related to sub-prime and alt-A loans. In all instances, there were no projected cash flow shortfalls to recover
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the full book value of the investments and the related interest obligations. The mortgage-backed securities still have excess credit coverage and are current on interest and principal payments.
The components of net investment income are presented in the table below for the periods indicated:
| Three Months Ended | Nine Months Ended |
| September 30, | September 30, |
| (Dollars in thousands) | 2015 | 2014 | 2015 | 2014 |
| Fixed maturities | $ | 108,134 | $ | 115,057 | $ | 326,970 | $ | 348,872 |
| Equity securities | 11,090 | 11,086 | 35,783 | 36,111 |
| Short-term investments and cash | 381 | 295 | 1,084 | 1,202 |
| Other invested assets |
| Limited partnerships | 370 | 21,690 | 13,993 | 25,658 |
| Other | (242 | ) | 869 | 1,366 | 3,220 |
| Gross investment income before adjustments | 119,733 | 148,997 | 379,196 | 415,063 |
| Funds held interest income (expense) | 2,569 | 1,817 | 8,162 | 6,875 |
| Future policy benefit reserve income (expense) | (300 | ) | (471 | ) | (1,402 | ) | (915 | ) |
| Gross investment income | 122,002 | 150,343 | 385,956 | 421,023 |
| Investment expenses | (6,491 | ) | (8,200 | ) | (22,816 | ) | (24,499 | ) |
| Net investment income | $ | 115,511 | $ | 142,143 | $ | 363,140 | $ | 396,524 |

The Company records results from limited partnership investments on the equity method of accounting with changes in value reported through net investment income. Due to the timing of receiving financial information from these partnerships, the results are generally reported on a one month or quarter lag. If the Company determines there has been a significant decline in value of a limited partnership during this lag period, a loss will be recorded in the period in which the Company identifies the decline.
The Company had contractual commitments to invest up to an additional $469,064 thousand in limited partnerships at September 30, 2015. These commitments will be funded when called in accordance with the partnership agreements, which have investment periods that expire, unless extended, through 2020.
The components of net realized capital gains (losses) are presented in the table below for the periods indicated:
| Three Months Ended | Nine Months Ended |
| September 30, | September 30, |
| (Dollars in thousands) | 2015 | 2014 | 2015 | 2014 |
| Fixed maturity securities, market value: |
| Other-than-temporary impairments | $ | (20,445 | ) | $ | (106 | ) | $ | (62,701 | ) | $ | (495 | ) |
| Gains (losses) from sales | (5,218 | ) | 7,311 | (15,812 | ) | 3,668 |
| Fixed maturity securities, fair value: |
| Gains (losses) from sales | (17 | ) | 82 | 25 | 1,022 |
| Gains (losses) from fair value adjustments | - | (938 | ) | 56 | (938 | ) |
| Equity securities, market value: |
| Gains (losses) from sales | (3,573 | ) | (181 | ) | (4,455 | ) | (1,235 | ) |
| Equity securities, fair value: |
| Gains (losses) from sales | (13,646 | ) | (1,823 | ) | (13,041 | ) | (1,873 | ) |
| Gains (losses) from fair value adjustments | (117,087 | ) | (13,792 | ) | (98,741 | ) | 70,548 |
| Short-term investments gains (losses) | 15 | (1 | ) | 15 | (3 | ) |
| Total net realized capital gains (losses) | $ | (159,971 | ) | $ | (9,448 | ) | $ | (194,654 | ) | $ | 70,694 |

The Company recorded as net realized capital gains (losses) in the consolidated statements of operations and comprehensive income (loss) both fair value re-measurements and write-downs in the value of securities deemed to be impaired on an other-than-temporary basis as displayed in the table above. The Company had no other-than-temporary impaired securities where the impairment had both a credit and non-credit component.
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The proceeds and split between gross gains and losses, from sales of fixed maturity and equity securities, are presented in the table below for the periods indicated:
| Three Months Ended | Nine Months Ended |
| September 30, | September 30, |
| (Dollars in thousands) | 2015 | 2014 | 2015 | 2014 |
| Proceeds from sales of fixed maturity securities | $ | 414,538 | $ | 446,699 | $ | 1,147,824 | $ | 1,073,938 |
| Gross gains from sales | 11,826 | 12,821 | 37,525 | 28,828 |
| Gross losses from sales | (17,061 | ) | (5,428 | ) | (53,312 | ) | (24,138 | ) |
| Proceeds from sales of equity securities | $ | 156,593 | $ | 150,124 | $ | 461,812 | $ | 463,688 |
| Gross gains from sales | 5,250 | 2,545 | 18,890 | 13,047 |
| Gross losses from sales | (22,469 | ) | (4,549 | ) | (36,386 | ) | (16,155 | ) |

4. DERIVATIVES
The Company sold seven equity index put option contracts, based on two indices, in 2001 and 2005, which remain outstanding. The Company sold these equity index put options as insurance products with the intent of achieving a profit. These equity index put option contracts meet the definition of a derivative under FASB guidance and the Company's position in these equity index put option contracts is unhedged. Accordingly, these equity index put option contracts are carried at fair value in the consolidated balance sheets with changes in fair value recorded in the consolidated statements of operations and comprehensive income (loss).
The Company sold six equity index put option contracts, based on the Standard & Poor's 500 ("S&P 500") index, for total consideration, net of commissions, of $22,530 thousand. At September 30, 2015, fair value for these equity index put option contracts was $41,809 thousand. Based on historical index volatilities and trends and the September 30, 2015 S&P 500 index value, the Company estimates the probability that each equity index put option contract of the S&P 500 index falling below the strike price on the exercise date to be less than 23%. The theoretical maximum payouts under these six equity index put option contracts would occur if on each of the exercise dates the S&P 500 index value were zero. At September 30, 2015, the present value of these theoretical maximum payouts using a 3% discount factor was $429,402 thousand. Conversely, if the contracts had all expired on September 30, 2015, with the S&P index at $1,920.03, there would have been no settlement amount.
The Company sold one equity index put option contract based on the FTSE 100 index for total consideration, net of commissions, of $6,706 thousand. At September 30, 2015, fair value for this equity index put option contract was $10,438 thousand. Based on historical index volatilities and trends and the September 30, 2015 FTSE 100 index value, the Company estimates the probability that the equity index put option contract of the FTSE 100 index will fall below the strike price on the exercise date to be less than 51%. The theoretical maximum payout under the equity index put option contract would occur if on the exercise date the FTSE 100 index value was zero. At September 30, 2015, the present value of the theoretical maximum payout using a 3% discount factor and current exchange rate was $43,896 thousand. Conversely, if the contract had expired on September 30, 2015, with the FTSE index at ₤6,061.60, there would have been no settlement amount.
The fair value of the equity index put options can be found in the Company's consolidated balance sheets as follows:
| (Dollars in thousands) |
| Derivatives not designated as | Location of fair value | At | At |
| hedging instruments | in balance sheets | September 30, 2015 | December 31, 2014 |
| Equity index put option contracts | Equity index put option liability | $ | 52,247 | $ | 47,022 |
| Total | $ | 52,247 | $ | 47,022 |

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The change in fair value of the equity index put option contracts can be found in the Company's statement of operations and comprehensive income (loss) as follows:
| (Dollars in thousands) | Three Months Ended | Nine Months Ended |
| Derivatives not designated as | Location of gain (loss) in statements of | September 30, | September 30, |
| hedging instruments | operations and comprehensive income (loss) | 2015 | 2014 | 2015 | 2014 |
| Equity index put option contracts | Net derivative gain (loss) | $ | (11,428 | ) | $ | 1,855 | $ | (5,225 | ) | $ | 3,968 |
| Total | $ | (11,428 | ) | $ | 1,855 | $ | (5,225 | ) | $ | 3,968 |

5. FAIR VALUE
GAAP guidance regarding fair value measurements address how companies should measure fair value when they are required to use fair value measures for recognition or disclosure purposes under GAAP and provides a common definition of fair value to be used throughout GAAP. It defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly fashion between market participants at the measurement date. In addition, it establishes a three-level valuation hierarchy for the disclosure of fair value measurements. The valuation hierarchy is based on the transparency of inputs to the valuation of an asset or liability. The level in the hierarchy within which a given fair value measurement falls is determined based on the lowest level input that is significant to the measurement, with Level 1 being the highest priority and Level 3 being the lowest priority.
The levels in the hierarchy are defined as follows:
| Level 1: | Inputs to the valuation methodology are observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in an active market; |

| Level 2: | Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; |

| Level 3: | Inputs to the valuation methodology are unobservable and significant to the fair value measurement. |

The Company's fixed maturity and equity securities are primarily managed by third party investment asset managers. The investment asset managers obtain prices from nationally recognized pricing services. These services seek to utilize market data and observations in their evaluation process. They use pricing applications that vary by asset class and incorporate available market information and when fixed maturity securities do not trade on a daily basis the services will apply available information through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing. In addition, they use model processes, such as the Option Adjusted Spread model to develop prepayment and interest rate scenarios for securities that have prepayment features.
In limited instances where prices are not provided by pricing services or in rare instances when a manager may not agree with the pricing service, price quotes on a non-binding basis are obtained from investment brokers. The investment asset managers do not make any changes to prices received from either the pricing services or the investment brokers. In addition, the investment asset managers have procedures in place to review the reasonableness of the prices from the service providers and may request verification of the prices. In addition, the Company continually performs analytical reviews of price changes and tests the prices on a random basis to an independent pricing source. No material variances were noted during these price validation procedures. In limited situations, where financial markets are inactive or illiquid, the Company may use its own assumptions about future cash flows and risk-adjusted discount rates to determine fair value. Due to the unavailability of prices for one private placement security, the Company valued the security at $6,125 thousand at September 30, 2015 and made no such adjustments at December 31, 2014.
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The Company internally manages a small public equity portfolio which had a fair value at September 30, 2015 and December 31, 2014 of $226,322 thousand and $196,980 thousand, respectively, and all prices were obtained from publically published sources.
Equity securities denominated in U.S. currency with quoted prices in active markets for identical assets are categorized as level 1 since the quoted prices are directly observable. Equity securities traded on foreign exchanges are categorized as level 2 due to the added input of a foreign exchange conversion rate to determine fair or market value. The Company uses foreign currency exchange rates published by nationally recognized sources.
All categories of fixed maturity securities listed in the tables below are generally categorized as level 2, since a particular security may not have traded but the pricing services are able to use valuation models with observable market inputs such as interest rate yield curves and prices for similar fixed maturity securities in terms of issuer, maturity and seniority. For foreign government securities and foreign corporate securities, the fair values provided by the third party pricing services in local currencies, and where applicable, are converted to U.S. dollars using currency exchange rates from nationally recognized sources.
The fixed maturities with fair values categorized as level 3 result when prices are not available from the nationally recognized pricing services. The asset managers will then obtain non-binding price quotes for the securities from brokers. The single broker quotes are provided by market makers or broker-dealers who are recognized as market participants in the markets in which they are providing the quotes. The prices received from brokers are reviewed for reasonableness by the third party asset managers and the Company. If the broker quotes are for foreign denominated securities, the quotes are converted to U.S. dollars using currency exchange rates from nationally recognized sources. Historically, most of the level 3 fixed maturities have resulted from new issuances and the third party prices services have not yet included the issuance in their data base. Generally, in subsequent measurement periods, the issuances will be included in the data base and the fair value will transfer to level 2.
The composition and valuation inputs for the presented fixed maturities categories are as follows:
| · | U.S. Treasury securities and obligations of U.S. government agencies and corporations are primarily comprised of U.S. Treasury bonds and the fair value is based on observable market inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields; |

| · | Obligations of U.S. states and political subdivisions are comprised of state and municipal bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads; |

| · | Corporate securities are primarily comprised of U.S. corporate and public utility bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities, benchmark yields and credit spreads; |

| · | Asset-backed and mortgage-backed securities fair values are based on observable inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields and cash flow models using observable inputs such as prepayment speeds, collateral performance and default spreads; |

| · | Foreign government securities are comprised of global non-U.S. sovereign bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, converted to U.S. dollars using an exchange rate from a nationally recognized source; |

| · | Foreign corporate securities are comprised of global non-U.S. corporate bond issuances and the fair values are based on observable market inputs such as quoted market prices, quoted prices for similar securities and models with observable inputs such as benchmark yields and credit spreads and then, where applicable, converted to U.S. dollars using an exchange rate from a nationally recognized source. |

14
The Company's liability for equity index put options is categorized as level 3 since there is no active market for these seven long dated equity put options. The fair values for these options are calculated by the Company using an industry accepted pricing model, Black-Scholes. The model inputs and assumptions are: risk free interest rates, equity market indexes values, volatilities and dividend yields and duration. The model results are then adjusted for the Company's credit default swap rate. All of these inputs and assumptions are updated quarterly. One of the option contacts is in British Pound Sterling so the fair value for this contract is converted to U.S. dollars using an exchange rate from a nationally recognized source.
The following table presents the fair value measurement levels for all assets and liabilities, which the Company has recorded at fair value (fair and market value) as of the periods indicated:
| Fair Value Measurement Using: |
| Quoted Prices |
| in Active | Significant |
| Markets for | Other | Significant |
| Identical | Observable | Unobservable |
| Assets | Inputs | Inputs |
| (Dollars in thousands) | September 30, 2015 | (Level 1) | (Level 2) | (Level 3) |
| Assets: |
| Fixed maturities, market value |
| U.S. Treasury securities and obligations of |
| U.S. government agencies and corporations | $ | 352,926 | $ | - | $ | 352,926 | $ | - |
| Obligations of U.S. States and political subdivisions | 714,279 | - | 714,279 | - |
| Corporate securities | 5,006,937 | - | 4,999,371 | 7,566 |
| Asset-backed securities | 438,397 | - | 438,397 | - |
| Mortgage-backed securities |
| Commercial | 284,809 | - | 284,809 | - |
| Agency residential | 2,426,067 | - | 2,426,067 | - |
| Non-agency residential | 978 | - | 978 | - |
| Foreign government securities | 1,300,961 | - | 1,300,961 | - |
| Foreign corporate securities | 2,965,606 | - | 2,959,481 | 6,125 |
| Total fixed maturities, market value | 13,490,960 | - | 13,477,269 | 13,691 |
| Fixed maturities, fair value | - | - | - | - |
| Equity securities, market value | 112,999 | 97,871 | 15,128 | - |
| Equity securities, fair value | 1,357,311 | 1,267,765 | 89,546 | - |
| Liabilities: |
| Equity index put option contracts | $ | 52,247 | $ | - | $ | - | $ | 52,247 |

There were no transfers between Level 1 and Level 2 for the nine months ended September 30, 2015.
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The following table presents the fair value measurement levels for all assets and liabilities, which the Company has recorded at fair value (fair and market value) as of the periods indicated:
| Fair Value Measurement Using: |
| Quoted Prices |
| in Active | Significant |
| Markets for | Other | Significant |
| Identical | Observable | Unobservable |
| Assets | Inputs | Inputs |
| (Dollars in thousands) | December 31, 2014 | (Level 1) | (Level 2) | (Level 3) |
| Assets: |
| Fixed maturities, market value |
| U.S. Treasury securities and obligations of |
| U.S. government agencies and corporations | $ | 231,038 | $ | - | $ | 231,038 | $ | - |
| Obligations of U.S. States and political subdivisions | 824,472 | - | 824,472 | - |
| Corporate securities | 4,706,985 | - | 4,706,985 | - |
| Asset-backed securities | 341,222 | - | 341,222 | - |
| Mortgage-backed securities |
| Commercial | 241,685 | - | 233,088 | 8,597 |
| Agency residential | 2,183,164 | - | 2,183,164 | - |
| Non-agency residential | 2,731 | - | 2,731 | - |
| Foreign government securities | 1,532,455 | - | 1,532,455 | - |
| Foreign corporate securities | 3,037,315 | - | 3,030,149 | 7,166 |
| Total fixed maturities, market value | 13,101,067 | - | 13,085,304 | 15,763 |
| Fixed maturities, fair value | 1,509 | - | 1,509 | - |
| Equity securities, market value | 140,210 | 124,295 | 15,915 | - |
| Equity securities, fair value | 1,447,820 | 1,337,396 | 110,424 | - |
| Liabilities: |
| Equity index put option contracts | $ | 47,022 | $ | - | $ | - | $ | 47,022 |

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The following tables present the activity under Level 3, fair value measurements using significant unobservable inputs by asset type, for the periods indicated:
| Three Months Ended September 30, 2015 | Nine Months Ended September 30, 2015 |
| Corporate | Foreign | Corporate | Foreign |
| (Dollars in thousands) | Securities | Corporate | Total | Securities | CMBS | Corporate | Total |
| Beginning balance | $ | 1,958 | $ | 7,837 | $ | 9,795 | $ | - | $ | 8,597 | $ | 7,166 | $ | 15,763 |
| Total gains or (losses) (realized/unrealized) |
| Included in earnings | (8 | ) | 62 | 54 | (4 | ) | - | 177 | 173 |
| Included in other comprehensive income (loss) | (137 | ) | (1,287 | ) | (1,424 | ) | (139 | ) | - | (1,216 | ) | (1,355 | ) |
| Purchases, issuances and settlements | 1,723 | - | 1,723 | 3,651 | - | - | 3,651 |
| Transfers in and/or (out) of Level 3 | 4,030 | (487 | ) | 3,543 | 4,058 | (8,597 | ) | (2 | ) | (4,541 | ) |
| Ending balance | $ | 7,566 | $ | 6,125 | $ | 13,691 | $ | 7,566 | $ | - | $ | 6,125 | $ | 13,691 |
| The amount of total gains or losses for the period |
| included in earnings (or changes in net assets) |
| attributable to the change in unrealized gains |
| or losses relating to assets still held |
| at the reporting date | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - |
| (Some amounts may not reconcile due to rounding.) |

| Three Months Ended September 30, 2014 | Nine Months Ended September 30, 2014 |
| Corporate | Asset-backed | Foreign | Non-agency | Agency | Corporate | Asset-backed | Foreign | Non-agency | Agency |
| (Dollars in thousands) | Securities | Securities | Corporate | RMBS | RMBS | Total | Securities | Securities | Corporate | RMBS | RMBS | Total |
| Beginning balance | $ | - | $ | 3,000 | $ | - | $ | 259 | $ | - | $ | 3,259 | $ | - | $ | 5,299 | $ | 481 | $ | 347 | $ | - | $ | 6,127 |
| Total gains or (losses) (realized/unrealized) |
| Included in earnings | - | 1,203 | - | 187 | - | 1,390 | - | 1,259 | 18 | 329 | - | 1,606 |
| Included in other comprehensive income (loss) | 42 | (201 | ) | (62 | ) | (114 | ) | - | (335 | ) | 42 | (126 | ) | (82 | ) | (138 | ) | - | (304 | ) |
| Purchases, issuances and settlements | 1,274 | 22,797 | 4,517 | (332 | ) | 29,845 | 58,101 | 1,274 | 21,303 | 4,038 | (538 | ) | 29,845 | 55,922 |
| Transfers in and/or (out) of Level 3 | - | (1,431 | ) | - | - | - | (1,431 | ) | - | (2,367 | ) | - | - | - | (2,367 | ) |
| Ending balance | $ | 1,316 | $ | 25,368 | $ | 4,455 | $ | - | $ | 29,845 | $ | 60,984 | $ | 1,316 | $ | 25,368 | $ | 4,455 | $ | - | $ | 29,845 | $ | 60,984 |
| The amount of total gains or losses for the period |
| included in earnings (or changes in net assets) |
| attributable to the change in unrealized gains |
| or losses relating to assets still held |
| at the reporting date | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - |
| (Some amounts may not reconcile due to rounding.) |

The net transfers to/(from) level 3, fair value measurements using significant unobservable inputs, of $4,541 thousand and $2,367 thousand of investments for the nine months ended September 30, 2015 and 2014, respectively, primarily relate to securities that were priced using single non-binding broker quotes as of December 31, 2014 and 2013, respectively. The securities were subsequently priced using a recognized pricing service as of September 30, 2015 and 2014, and were classified as level 2 as of those dates.
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The following table presents the activity under Level 3, fair value measurements using significant unobservable inputs for equity index put option contracts, for the periods indicated:
| Three Months Ended | Nine Months Ended |
| September 30, | September 30, |
| (Dollars in thousands) | 2015 | 2014 | 2015 | 2014 |
| Liabilities: |
| Balance, beginning of period | $ | 40,819 | $ | 33,309 | $ | 47,022 | $ | 35,423 |
| Total (gains) or losses (realized/unrealized) |
| Included in earnings | 11,428 | (1,855 | ) | 5,225 | (3,968 | ) |
| Included in other comprehensive income (loss) | - | - | - | - |
| Purchases, issuances and settlements | - | - | - | - |
| Transfers in and/or (out) of Level 3 | - | - | - | - |
| Balance, end of period | $ | 52,247 | $ | 31,455 | $ | 52,247 | $ | 31,455 |
| The amount of total gains or losses for the period included in earnings |
| (or changes in net assets) attributable to the change in unrealized |
| gains or losses relating to liabilities still held at the reporting date | $ | - | $ | - | $ | - | $ | - |
| (Some amounts may not reconcile due to rounding.) |

6. REDEEMABLE NONCONTROLLING INTERESTS – MT. LOGAN RE
Mt. Logan Re is a Class 3 insurer registered in Bermuda effective February 27, 2013 under The Segregated Accounts Companies Act 2000 and 100% of the voting common shares are owned by Group. Separate segregated accounts have been established effective July 1, 2013 and non-voting, redeemable preferred shares have been issued to capitalize the segregated accounts. Each segregated account will invest in a diversified set of catastrophe exposures, diversified by risk/peril and across different geographic regions globally. The financial statements for Mt. Logan Re are consolidated with the Company with adjustments reflected for the third party noncontrolling interests reflected as separate captions in the Company's financial statements.
The following table presents the activity for redeemable noncontrolling interests in the consolidated balance sheets for the periods indicated:
| Nine Months Ended | Twelve Months Ended |
| September 30, | December 31, |
| (Dollars in thousands) | 2015 | 2014 |
| Redeemable noncontrolling interests - Mt. Logan Re, beginning of period | $ | 421,552 | $ | 93,378 |
| Unaffiliated third party investments during period, net | 336,848 | 279,200 |
| Net income (loss) attributable to noncontrolling interests | 61,526 | 59,307 |
| Dividends paid on third party investment in redeemable noncontrolling interest | (67,233 | ) | (10,334 | ) |
| Redeemable noncontrolling interests - Mt. Logan Re, end of period | $ | 752,692 | $ | 421,552 |
| (Some amounts may not reconcile due to rounding.) |

In addition, the Company has invested $50,000 thousand in the segregated accounts from inception to date.
The Company expects its participation level in the segregated funds to fluctuate over time.
7. CAPITAL TRANSACTIONS
On July 9, 2014, the Company renewed its shelf registration statement on Form S-3ASR with the Securities and Exchange Commission (the "SEC"), as a Well Known Seasoned Issuer. This shelf registration statement can be used by Group to register common shares, preferred shares, debt securities, warrants, share purchase contracts and share purchase units; by Holdings to register debt securities and by Everest Re Capital Trust III ("Capital Trust III") to register trust preferred securities.
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8. EARNINGS PER COMMON SHARE
Basic earnings per share are calculated by dividing net income by the weighted average number of common shares outstanding. Diluted earnings per share reflect the potential dilution that would occur if options granted under various share-based compensation plans were exercised resulting in the issuance of common shares that would participate in the earnings of the entity.
Net income (loss) attributable to Everest Re Group per common share has been computed as per below, based upon weighted average common basic and dilutive shares outstanding.
| Three Months Ended | Nine Months Ended |
| September 30, | September 30, |
| (Dollars in thousands, except per share amounts) | 2015 | 2014 | 2015 | 2014 |
| Net income (loss) attributable to Everest Re Group per share: |
| Numerator |
| Net income (loss) attributable to Everest Re Group | $ | 88,553 | $ | 274,916 | $ | 620,588 | $ | 859,033 |
| Less: dividends declared-common shares and nonvested common shares | (41,698 | ) | (33,973 | ) | (125,905 | ) | (103,034 | ) |
| Undistributed earnings | 46,855 | 240,943 | 494,683 | 755,999 |
| Percentage allocated to common shareholders (1) | 99.0 | % | 98.9 | % | 98.9 | % | 99.0 | % |
| 46,364 | 238,407 | 489,434 | 748,273 |
| Add: dividends declared-common shareholders | 41,293 | 33,631 | 124,638 | 101,993 |
| Numerator for basic and diluted earnings per common share | $ | 87,657 | $ | 272,038 | $ | 614,072 | $ | 850,266 |
| Denominator |
| Denominator for basic earnings per weighted-average common shares | 43,361 | 44,941 | 43,728 | 45,615 |
| Effect of dilutive securities: |
| Options | 367 | 415 | 392 | 426 |
| Denominator for diluted earnings per adjusted weighted-average common shares | 43,728 | 45,356 | 44,120 | 46,041 |
| Per common share net income (loss) |
| Basic | $ | 2.02 | $ | 6.05 | $ | 14.04 | $ | 18.64 |
| Diluted | $ | 2.00 | $ | 6.00 | $ | 13.92 | $ | 18.47 |
| (1) | Basic weighted-average common shares outstanding | 43,361 | 44,941 | 43,728 | 45,615 |
| Basic weighted-average common shares outstanding and nonvested common shares expected to vest | 43,820 | 45,419 | 44,197 | 46,086 |
| Percentage allocated to common shareholders | 99.0 | % | 98.9 | % | 98.9 | % | 99.0 | % |
| (Some amounts may not reconcile due to rounding.) |

There were no anti-diluted options outstanding for the three and nine months ended September 30, 2015 and 2014.
All outstanding options expire on or between February 21, 2017 and September 19, 2022.
9. CONTINGENCIES
In the ordinary course of business, the Company is involved in lawsuits, arbitrations and other formal and informal dispute resolution procedures, the outcomes of which will determine the Company's rights and obligations under insurance and reinsurance agreements. In some disputes, the Company seeks to enforce its rights under an agreement or to collect funds owing to it. In other matters, the Company is resisting attempts by others to collect funds or enforce alleged rights. These disputes arise from time to time and are ultimately resolved through both informal and formal means, including negotiated resolution, arbitration and litigation. In all such matters, the Company believes that its positions are legally and commercially reasonable. The Company considers the statuses of these proceedings when determining its reserves for unpaid loss and loss adjustment expenses.
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Aside from litigation and arbitrations related to these insurance and reinsurance agreements, the Company is not a party to any other material litigation or arbitration.
The Company has entered into separate annuity agreements with The Prudential Insurance of America ("The Prudential") and an additional unaffiliated life insurance company in which the Company has either purchased annuity contracts or become the assignee of annuity proceeds that are meant to settle claim payment obligations in the future. In both instances, the Company would become contingently liable if either The Prudential or the unaffiliated life insurance company were unable to make payments related to the respective annuity contract.
The table below presents the estimated cost to replace all such annuities for which the Company was contingently liable for the periods indicated:
| At September 30, | At December 31, |
| (Dollars in thousands) | 2015 | 2014 |
| The Prudential | $ | 142,661 | $ | 142,653 |
| Unaffiliated life insurance company | 32,414 | 31,964 |

10. OTHER COMPREHENSIVE INCOME (LOSS)
The following tables present the components of comprehensive income (loss) in the consolidated statements of operations for the periods indicated:
| Three Months Ended September 30, 2015 | Nine Months Ended September 30, 2015 |
| (Dollars in thousands) | Before Tax | Tax Effect | Net of Tax | Before Tax | Tax Effect | Net of Tax |
| Unrealized appreciation (depreciation) ("URA(D)") on securities - temporary | $ | (105,356 | ) | $ | 14,558 | $ | (90,798 | ) | $ | (178,878 | ) | $ | 29,004 | $ | (149,874 | ) |
| URA(D) on securities - OTTI | (253 | ) | (8 | ) | (261 | ) | 8,954 | (3,415 | ) | 5,539 |
| Reclassification of net realized losses (gains) included in net income (loss) | 29,235 | (4,639 | ) | 24,596 | 82,967 | (23,441 | ) | 59,526 |
| Foreign currency translation adjustments | (47,298 | ) | 14,793 | (32,505 | ) | (104,542 | ) | 24,034 | (80,508 | ) |
| Benefit plan actuarial net gain (loss) | - | - | - | - | - | - |
| Reclassification of benefit plan liability amortization included in net income (loss) | 2,393 | (837 | ) | 1,556 | 7,336 | (2,567 | ) | 4,769 |
| Total other comprehensive income (loss) | $ | (121,279 | ) | $ | 23,867 | $ | (97,412 | ) | $ | (184,163 | ) | $ | 23,615 | $ | (160,548 | ) |

| Three Months Ended September 30, 2014 | Nine Months Ended September 30, 2014 |
| (Dollars in thousands) | Before Tax | Tax Effect | Net of Tax | Before Tax | Tax Effect | Net of Tax |
| Unrealized appreciation (depreciation) ("URA(D)") on securities - temporary | $ | (84,122 | ) | $ | 10,309 | $ | (73,813 | ) | $ | 75,275 | $ | (9,777 | ) | $ | 65,498 |
| URA(D) on securities - OTTI | (261 | ) | - | (261 | ) | (180 | ) | - | (180 | ) |
| Reclassification of net realized losses (gains) included in net income (loss) | (7,024 | ) | 1,340 | (5,684 | ) | (1,938 | ) | 297 | (1,641 | ) |
| Foreign currency translation adjustments | (38,998 | ) | 4,024 | (34,974 | ) | (42,998 | ) | 4,624 | (38,374 | ) |
| Benefit plan actuarial net gain (loss) | - | - | - | - | - | - |
| Reclassification of benefit plan liability amortization included in net income (loss) | 1,269 | (444 | ) | 825 | 3,640 | (1,274 | ) | 2,366 |
| Total other comprehensive income (loss) | $ | (129,136 | ) | $ | 15,229 | $ | (113,907 | ) | $ | 33,799 | $ | (6,130 | ) | $ | 27,669 |

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The following table presents details of the amounts reclassified from AOCI for the periods indicated:
| Three Months Ended | Nine Months Ended |
| September 30, | September 30, | Affected line item within the statements of |
| AOCI component | 2015 | 2014 | 2015 | 2014 | operations and comprehensive income (loss) |
| (Dollars in thousands) |
| URA(D) on securities | $ | 29,235 | $ | (7,024 | ) | $ | 82,967 | $ | (1,938 | ) | Other net realized capital gains (losses) |
| (4,639 | ) | 1,340 | (23,441 | ) | 297 | Income tax expense (benefit) |
| $ | 24,596 | $ | (5,684 | ) | $ | 59,526 | $ | (1,641 | ) | Net income (loss) |
| Benefit plan net gain (loss) | $ | 2,393 | $ | 1,269 | $ | 7,336 | $ | 3,640 | Other underwriting expenses |
| (837 | ) | (444 | ) | (2,567 | ) | (1,274 | ) | Income tax expense (benefit) |
| $ | 1,556 | $ | 825 | $ | 4,769 | $ | 2,366 | Net income (loss) |

The following table presents the components of accumulated other comprehensive income (loss), net of tax, in the consolidated balance sheets for the periods indicated:
| Nine Months Ended | Twelve Months Ended |
| September 30, | December 31, |
| (Dollars in thousands) | 2015 | 2014 |
| Beginning balance of URA (D) on securities | $ | 223,250 | $ | 201,154 |
| Current period change in URA (D) of investments - temporary | (90,348 | ) | 28,767 |
| Current period change in URA (D) of investments - non-credit OTTI | 5,539 | (6,671 | ) |
| Ending balance of URA (D) on securities | 138,441 | 223,250 |
| Beginning balance of foreign currency translation adjustments | (99,947 | ) | (4,530 | ) |
| Current period change in foreign currency translation adjustments | (80,508 | ) | (95,417 | ) |
| Ending balance of foreign currency translation adjustments | (180,455 | ) | (99,947 | ) |
| Beginning balance of benefit plan net gain (loss) | (74,986 | ) | (38,896 | ) |
| Current period change in benefit plan net gain (loss) | 4,769 | (36,090 | ) |
| Ending balance of benefit plan net gain (loss) | (70,217 | ) | (74,986 | ) |
| Ending balance of accumulated other comprehensive income (loss) | $ | (112,231 | ) | $ | 48,317 |

11. CREDIT FACILITIES
The Company has two active credit facilities for a total commitment of up to $1,100,000 thousand, providing for the issuance of letters of credit and/or unsecured revolving credit lines. The following table presents the costs incurred in connection with the two credit facilities for the periods indicated:
| Three Months Ended | Nine Months Ended |
| September 30, | September 30, |
| (Dollars in thousands) | 2015 | 2014 | 2015 | 2014 |
| Credit facility fees incurred | $ | 132 | $ | 132 | $ | 431 | $ | 527 |

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The terms and outstanding amounts for each facility are discussed below:
Group Credit Facility
Effective June 22, 2012, Group, Bermuda Re and Everest International entered into a four year, $800,000 thousand senior credit facility with a syndicate of lenders, which amended and restated in its entirety the July 27, 2007, five year, $850,000 thousand senior credit facility. Both the June 22, 2012 and July 27, 2007 senior credit facilities, which have similar terms, are referred to as the "Group Credit Facility". Wells Fargo Corporation ("Wells Fargo Bank") is the administrative agent for the Group Credit Facility, which consists of two tranches. Tranche one provides up to $200,000 thousand of unsecured revolving credit for liquidity and general corporate purposes, and for the issuance of unsecured standby letters of credit. The interest on the revolving loans shall, at the Company's option, be either (1) the Base Rate (as defined below) or (2) an adjusted London Interbank Offered Rate ("LIBOR") plus a margin. The Base Rate is the higher of (a) the prime commercial lending rate established by Wells Fargo Bank, (b) the Federal Funds Rate plus 0.5% per annum or (c) the one month LIBOR Rate plus 1.0% per annum. The amount of margin and the fees payable for the Group Credit Facility depends on Group's senior unsecured debt rating. Tranche two exclusively provides up to $600,000 thousand for the issuance of standby letters of credit on a collateralized basis.
The Group Credit Facility requires Group to maintain a debt to capital ratio of not greater than 0.35 to 1 and to maintain a minimum net worth. Minimum net worth is an amount equal to the sum of $4,249,963 thousand plus 25% of consolidated net income for each of Group's fiscal quarters, for which statements are available ending on or after January 1, 2012 and for which consolidated net income is positive, plus 25% of any increase in consolidated net worth during such period attributable to the issuance of ordinary and preferred shares, which at September 30, 2015, was $5,277,454 thousand. As of September 30, 2015, the Company was in compliance with all Group Credit Facility covenants.
The following table summarizes the outstanding letters of credit and/or borrowings for the periods indicated:
| (Dollars in thousands) | At September 30, 2015 | At December 31, 2014 |
| Bank | Commitment | In Use | Date of Expiry | Commitment | In Use | Date of Expiry |
| Wells Fargo Bank Group Credit Facility | Tranche One | $ | 200,000 | $ | - | $ | 200,000 | $ | - |
| Tranche Two | 600,000 | 456,379 | 12/31/2015 | 600,000 | 444,012 | 12/31/2015 |
| Total Wells Fargo Bank Group Credit Facility | $ | 800,000 | $ | 456,379 | $ | 800,000 | $ | 444,012 |

Bermuda Re Letter of Credit Facility
Effective December 31, 2014, Bermuda Re renewed its $300,000 thousand letter of credit issuance facility with Citibank N.A. referred to as the "Bermuda Re Letter of Credit Facility", which commitment is reconfirmed annually with updated fees. The Bermuda Re Letter of Credit Facility provides for the issuance of up to $300,000 thousand of secured letters of credit to collateralize reinsurance obligations as a non-admitted reinsurer. The interest on drawn letters of credit shall be (A) 0.35% per annum of the principal amount of issued standard letters of credit (expiry of 15 months or less) and (B) 0.45% per annum of the principal amount of issued extended tenor letters of credit (expiry maximum of up to 60 months). The commitment fee on undrawn credit shall be 0.15% per annum.
The following table summarizes the outstanding letters of credit for the periods indicated:
| (Dollars in thousands) | At September 30, 2015 | At December 31, 2014 |
| Bank | Commitment | In Use | Date of Expiry | Commitment | In Use | Date of Expiry |
| Citibank Bilateral Letter of Credit Agreement | $ | 300,000 | $ | 3,672 | 11/24/2015 | $ | 300,000 | $ | 112 | 8/30/2015 |
| 65,013 | 12/31/2015 | 3,672 | 11/24/2015 |
| 2,681 | 12/31/2016 | 70,922 | 12/31/2015 |
| 173 | 8/30/2017 | 2,014 | 12/31/2016 |
| 119,002 | 9/30/2019 | 149,353 | 12/30/2018 |
| Total Citibank Bilateral Agreement | $ | 300,000 | $ | 190,541 | $ | 300,000 | $ | 226,073 |

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Holdings Credit Facility - Expired
Effective August 15, 2011, the Company entered into a three year, $150,000 thousand unsecured revolving credit facility, referred to as the "Holdings Credit Facility", which expired on August 15, 2014. The Company decided not to renew the Holdings Credit Facility at expiration.
12. REINSURANCE AND TRUST AGREEMENTS
Certain subsidiaries of Group have established trust agreements, which effectively use the Company's investments as collateral, as security for assumed losses payable to certain non-affiliated ceding companies. At September 30, 2015, the total amount on deposit in trust accounts was $404,008 thousand.
On April 24, 2014, the Company entered into two collateralized reinsurance agreements with Kilimanjaro Re Limited ("Kilimanjaro"), a Bermuda based special purpose reinsurer, to provide the Company with catastrophe reinsurance coverage. These agreements are multi-year reinsurance contracts which cover specified named storm and earthquake events. The first agreement provides up to $250,000 thousand of reinsurance coverage from named storms in specified states of the Southeastern United States. The second agreement provides up to $200,000 thousand of reinsurance coverage from named storms in specified states of the Southeast, Mid-Atlantic and Northeast regions of the United States and Puerto Rico as well as reinsurance coverage from earthquakes in specified states of the Southeast, Mid-Atlantic, Northeast and West regions of the United States, Puerto Rico and British Columbia.
On November 18, 2014, the Company entered into a collateralized reinsurance agreement with Kilimanjaro Re to provide the Company with catastrophe reinsurance coverage. This agreement is a multi-year reinsurance contract which covers specified earthquake events. The agreement provides up to $500,000 thousand of reinsurance coverage from earthquakes in the United States, Puerto Rico and Canada.
Kilimanjaro has financed the various property catastrophe reinsurance coverage by issuing catastrophe bonds to unrelated, external investors. On April 24, 2014, Kilimanjaro issued $450,000 thousand of variable rate notes ("Series 2014-1 Notes"). On November 18, 2014, Kilimanjaro issued $500,000 thousand of variable rate notes ("Series 2014-2 Notes"). The proceeds from the issuance of the Series 2014-1 Notes and the Series 2014-2 Notes are held in reinsurance trust throughout the duration of the applicable reinsurance agreements and invested solely in US government money market funds with a rating of at least "AAAm" by Standard & Poor's.
13. SENIOR NOTES
The table below displays Holdings' outstanding senior notes. Market value is based on quoted market prices, but due to limited trading activity, these senior notes are considered Level 2 in the fair value hierarchy.
| September 30, 2015 | December 31, 2014 |
| Consolidated Balance | Consolidated Balance |
| (Dollars in thousands) | Date Issued | Date Due | Principal Amounts | Sheet Amount | Market Value | Sheet Amount | Market Value |
| 4.868% Senior notes | 06/05/2014 | 06/01/2044 | $ | 400,000 | $ | 400,000 | $ | 388,768 | $ | 400,000 | $ | 404,892 |
| 5.40% Senior notes | 10/12/2004 | 10/15/2014 | 250,000 | - | - | - | - |

On June 5, 2014, Holdings issued $400,000 thousand of 30 year senior notes at 4.868%, which will mature on June 1, 2044. Interest will be paid semi-annually on June 1 and December 1 of each year. The proceeds from the issuance have been used in part to pay off the $250,000 thousand of 5.40% senior notes which matured on October 15, 2014.
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Interest expense incurred in connection with these senior notes is as follows for the periods indicated:
| Three Months Ended | Nine Months Ended |
| September 30, | September 30, |
| (Dollars in thousands) | 2015 | 2014 | 2015 | 2014 |
| Interest expense incurred | $ | 4,868 | $ | 8,256 | $ | 14,604 | $ | 16,385 |

14. LONG TERM SUBORDINATED NOTES
The table below displays Holdings' outstanding fixed to floating rate long term subordinated notes. Market value is based on quoted market prices, but due to limited trading activity, these subordinated notes are considered Level 2 in the fair value hierarchy.
| Maturity Date | September 30, 2015 | December 31, 2014 |
| Original | Consolidated Balance | Consolidated Balance |
| (Dollars in thousands) | Date Issued | Principal Amount | Scheduled | Final | Sheet Amount | Market Value | Sheet Amount | Market Value |
| 6.6% Long term subordinated notes | 04/26/2007 | $ | 400,000 | 05/15/2037 | 05/01/2067 | $ | 238,367 | $ | 218,281 | $ | 238,364 | $ | 246,312 |

During the fixed rate interest period from May 3, 2007 through May 14, 2017, interest will be at the annual rate of 6.6%, payable semi-annually in arrears on November 15 and May 15 of each year, commencing on November 15, 2007, subject to Holdings' right to defer interest on one or more occasions for up to ten consecutive years. During the floating rate interest period from May 15, 2017 through maturity, interest will be based on the 3 month LIBOR plus 238.5 basis points, reset quarterly, payable quarterly in arrears on February 15, May 15, August 15 and November 15 of each year, subject to Holdings' right to defer interest on one or more occasions for up to ten consecutive years. Deferred interest will accumulate interest at the applicable rate compounded semi-annually for periods prior to May 15, 2017, and compounded quarterly for periods from and including May 15, 2017.
Holdings can redeem the long term subordinated notes prior to May 15, 2017, in whole but not in part at the applicable redemption price, which will equal the greater of (a) 100% of the principal amount being redeemed and (b) the present value of the principal payment on May 15, 2017 and scheduled payments of interest that would have accrued from the redemption date to May 15, 2017 on the long term subordinated notes being redeemed, discounted to the redemption date on a semi-annual basis at a discount rate equal to the treasury rate plus an applicable spread of either 0.25% or 0.50%, in each case plus accrued and unpaid interest. Holdings may redeem the long term subordinated notes on or after May 15, 2017, in whole or in part at 100% of the principal amount plus accrued and unpaid interest; however, redemption on or after the scheduled maturity date and prior to May 1, 2047 is subject to a replacement capital covenant. This covenant is for the benefit of certain senior note holders and it mandates that Holdings receive proceeds from the sale of another subordinated debt issue, of at least similar size, before it may redeem the subordinated notes. Effective upon the maturity of the Company's 5.40% senior notes on October 15, 2014, the Company's 4.868% senior notes, due on June 1, 2044, have become the Company's long term indebtedness that ranks senior to the long term subordinated notes.
On March 19, 2009, Group announced the commencement of a cash tender offer for any and all of the 6.60% fixed to floating rate long term subordinated notes. Upon expiration of the tender offer, the Company had reduced its outstanding debt by $161,441 thousand.
Interest expense incurred in connection with these long term subordinated notes is as follows for the periods indicated:
| Three Months Ended | Nine Months Ended |
| September 30, | September 30, |
| (Dollars in thousands) | 2015 | 2014 | 2015 | 2014 |
| Interest expense incurred | $ | 3,937 | $ | 3,937 | $ | 11,811 | $ | 11,811 |

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15. SEGMENT REPORTING
The U.S. Reinsurance operation writes property and casualty 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. property and casualty reinsurance through Everest Re's 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 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 general agents, brokers and surplus lines brokers within the U.S. and Canada. The Mt. Logan Re segment represents business written for the segregated accounts of Mt. Logan Re, which were formed on July 1, 2013. The Mt. Logan Re business represents a diversified set of catastrophe exposures, diversified by risk/peril and across different geographical regions globally.
These segments, with the exception of Mt. Logan Re, are managed independently, 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 underwriting results. The Mt. Logan Re segment is managed independently and seeks to write a diverse portfolio of catastrophe risks for each segregated account to achieve desired risk and return criteria.
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 expense ratios, which, respectively, divide incurred losses, commissions and brokerage and other underwriting expenses by premiums earned.
Mt. Logan Re's business is sourced through operating subsidiaries of the Company; however, the activity is only reflected in the Mt. Logan Re segment. For other inter-affiliate reinsurance, business is generally reported within the segment in which the business was first produced, consistent with how the business is managed.
Except for Mt. Logan Re, the Company does not maintain separate balance sheet data for its operating segments. Accordingly, the Company does not review and evaluate the financial results of its operating segments based upon balance sheet data.
25
The following tables present the underwriting results for the operating segments for the periods indicated:
| Three Months Ended | Nine Months Ended |
| U.S. Reinsurance | September 30, | September 30, |
| (Dollars in thousands) | 2015 | 2014 | 2015 | 2014 |
| Gross written premiums | $ | 537,483 | $ | 640,660 | $ | 1,464,840 | $ | 1,573,776 |
| Net written premiums | 511,238 | 615,078 | 1,383,647 | 1,536,114 |
| Premiums earned | $ | 488,485 | $ | 559,488 | $ | 1,480,427 | $ | 1,478,258 |
| Incurred losses and LAE | 225,944 | 249,004 | 699,575 | 701,473 |
| Commission and brokerage | 121,050 | 123,432 | 364,005 | 339,166 |
| Other underwriting expenses | 13,718 | 12,118 | 37,054 | 33,054 |
| Underwriting gain (loss) | $ | 127,773 | $ | 174,934 | $ | 379,793 | $ | 404,565 |

| Three Months Ended | Nine Months Ended |
| International | September 30, | September 30, |
| (Dollars in thousands) | 2015 | 2014 | 2015 | 2014 |
| Gross written premiums | $ | 354,871 | $ | 406,254 | $ | 966,091 | $ | 1,181,513 |
| Net written premiums | 318,478 | 352,608 | 896,872 | 977,235 |
| Premiums earned | $ | 291,396 | $ | 320,020 | $ | 935,228 | $ | 958,399 |
| Incurred losses and LAE | 229,013 | 236,559 | 630,752 | 604,166 |
| Commission and brokerage | 70,894 | 73,143 | 226,321 | 215,716 |
| Other underwriting expenses | 9,128 | 8,758 | 25,292 | 24,683 |
| Underwriting gain (loss) | $ | (17,639 | ) | $ | 1,560 | $ | 52,863 | $ | 113,834 |

| Three Months Ended | Nine Months Ended |
| Bermuda | September 30, | September 30, |
| (Dollars in thousands) | 2015 | 2014 | 2015 | 2014 |
| Gross written premiums | $ | 267,035 | $ | 205,342 | $ | 605,365 | $ | 573,793 |
| Net written premiums | 251,678 | 189,447 | 557,453 | 548,210 |
| Premiums earned | $ | 222,240 | $ | 181,754 | $ | 616,241 | $ | 546,699 |
| Incurred losses and LAE | 154,327 | 108,961 | 372,572 | 310,602 |
| Commission and brokerage | 52,980 | 48,421 | 151,356 | 140,968 |
| Other underwriting expenses | 9,457 | 9,360 | 27,045 | 25,805 |
| Underwriting gain (loss) | $ | 5,476 | $ | 15,012 | $ | 65,268 | $ | 69,324 |

| Three Months Ended | Nine Months Ended |
| Insurance | September 30, | September 30, |
| (Dollars in thousands) | 2015 | 2014 | 2015 | 2014 |
| Gross written premiums | $ | 489,124 | $ | 364,111 | $ | 1,173,012 | $ | 911,242 |
| Net written premiums | 418,960 | 310,690 | 1,022,389 | 802,431 |
| Premiums earned | $ | 360,742 | $ | 290,518 | $ | 888,711 | $ | 742,038 |
| Incurred losses and LAE | 262,328 | 239,823 | 662,052 | 557,047 |
| Commission and brokerage | 50,268 | 40,418 | 127,125 | 114,535 |
| Other underwriting expenses | 35,677 | 31,311 | 99,232 | 83,672 |
| Underwriting gain (loss) | $ | 12,469 | $ | (21,034 | ) | $ | 302 | $ | (13,216 | ) |

26
| Three Months Ended | Nine Months Ended |
| Mt. Logan Re | September 30, | September 30, |
| (Dollars in thousands) | 2015 | 2014 | 2015 | 2014 |
| Gross written premiums | $ | 72,200 | $ | 50,334 | $ | 183,694 | $ | 109,163 |
| Net written premiums | 60,903 | 49,757 | 153,281 | 98,666 |
| Premiums earned | $ | 50,777 | $ | 38,218 | $ | 132,508 | $ | 81,411 |
| Incurred losses and LAE | 16,485 | 3,410 | 36,272 | 19,575 |
| Commission and brokerage | 4,856 | 5,105 | 13,325 | 9,823 |
| Other underwriting expenses | 2,687 | 1,566 | 6,659 | 4,951 |
| Underwriting gain (loss) | $ | 26,749 | $ | 28,137 | $ | 76,252 | $ | 47,062 |

The following table reconciles the underwriting results for the operating segments to income before taxes as reported in the consolidated statements of operations and comprehensive income (loss) for the periods indicated:
| Three Months Ended | Nine Months Ended |
| September 30, | September 30, |
| (Dollars in thousands) | 2015 | 2014 | 2015 | 2014 |
| Underwriting gain (loss) | $ | 154,828 | $ | 198,609 | $ | 574,478 | $ | 621,569 |
| Net investment income | 115,511 | 142,143 | 363,140 | 396,524 |
| Net realized capital gains (losses) | (159,971 | ) | (9,448 | ) | (194,654 | ) | 70,694 |
| Net derivative gain (loss) | (11,428 | ) | 1,855 | (5,225 | ) | 3,968 |
| Corporate expenses | (5,924 | ) | (9,958 | ) | (17,312 | ) | (18,802 | ) |
| Interest, fee and bond issue cost amortization expense | (8,990 | ) | (12,424 | ) | (27,006 | ) | (28,970 | ) |
| Other income (expense) | 17,413 | 11,332 | 59,561 | (5,835 | ) |
| Income (loss) before taxes | $ | 101,439 | $ | 322,109 | $ | 752,982 | $ | 1,039,148 |

The Company produces business in the U.S., Bermuda and internationally. The net income deriving from and assets residing in the individual foreign countries in which the Company writes business are not identifiable in the Company's financial records. Based on gross written premium, the table below presents the largest country, other than the U.S., in which the Company writes business, for the periods indicated:
| Three Months Ended | Nine Months Ended |
| September 30, | September 30, |
| (Dollars in thousands) | 2015 | 2014 | 2015 | 2014 |
| United Kingdom gross written premium | $ | 212,039 | $ | 199,052 | $ | 565,143 | $ | 536,928 |

No other country represented more than 5% of the Company's revenues.
16. SHARE-BASED COMPENSATION PLANS
For the three months ended September 30, 2015, share-based compensation awards granted were 4,720 restricted shares, granted on September 9, 2015, with a fair value of $176.37 per share.
27
17. RETIREMENT BENEFITS
The Company maintains both qualified and non-qualified defined benefit pension plans and a retiree health plan for its U.S. employees employed prior to April 1, 2010.
Net periodic benefit cost for U.S. employees included the following components for the periods indicated:
| Pension Benefits | Three Months Ended | Nine Months Ended |
| September 30, | September 30, |
| (Dollars in thousands) | 2015 | 2014 | 2015 | 2014 |
| Service cost | $ | 3,203 | $ | 2,460 | $ | 9,398 | $ | 7,381 |
| Interest cost | 2,758 | 2,542 | 7,926 | 7,625 |
| Expected return on plan assets | (2,904 | ) | (2,822 | ) | (8,710 | ) | (8,468 | ) |
| Amortization of prior service cost | 4 | 13 | 15 | 38 |
| Amortization of net (income) loss | 2,312 | 1,173 | 6,824 | 3,356 |
| FAS 88 settlement charge | - | 5,269 | - | 5,269 |
| Net periodic benefit cost | $ | 5,373 | $ | 8,635 | $ | 15,453 | $ | 15,201 |

| Other Benefits | Three Months Ended | Nine Months Ended |
| September 30, | September 30, |
| (Dollars in thousands) | 2015 | 2014 | 2015 | 2014 |
| Service cost | $ | 498 | $ | 407 | $ | 1,498 | $ | 1,221 |
| Interest cost | 329 | 342 | 987 | 1,026 |
| Amortization of net (income) loss | 76 | 82 | 497 | 246 |
| Net periodic benefit cost | $ | 903 | $ | 831 | $ | 2,982 | $ | 2,493 |

The Company did not make any contributions to the qualified pension benefit plan for the three and nine months ended September 30, 2015 and 2014.
18. INCOME TAXES
The Company is domiciled in Bermuda and has significant subsidiaries and/or branches in Canada, Ireland, Singapore, the United Kingdom, and the United States. The Company's Bermuda domiciled subsidiaries are exempt from income taxation under Bermuda law until 2035. Pre-tax income generated by Group's non-Bermuda subsidiaries and the UK branch of Bermuda is subject to applicable federal, foreign, state and local taxes on corporations. Company subsidiaries domiciled in the US as well as the Canadian and Singapore branches of Everest Re generate US pre-tax income (loss). Foreign domiciled subsidiaries, including the UK branch of Bermuda Re, generate non-US pre-tax income (loss). Fluctuations in US and non-US pre-tax income (loss) primarily result from the impact of catastrophe losses and realized investment gains (losses).
For interim reporting periods, the company is generally required to use the annualized effective tax rate ("AETR") method, as prescribed by ASC 740-270, Interim Reporting, to calculate its income tax provision. Under this method, the AETR is applied to the interim year-to-date pre-tax income to determine the income tax expense or benefit for the year-to-date period. The income tax expense or benefit for a quarter represents the difference between the year-to-date income tax expense or benefit for the current year-to-date period less such amount for the immediately preceding year-to-date period. Management considers the impact of all known events in its estimation of the Company's annual pre-tax income and AETR.
19. DISPOSITIONS
On July 13, 2015, the Company closed its agreement to sell all of the outstanding shares of capital stock of Mt. McKinley, a Delaware domiciled insurance company and wholly-owned subsidiary of the Company to Clearwater Insurance Company, a Delaware domiciled insurance company. The Company received $20,156 thousand in cash for Mt. McKinley and did not recognize any realized gain or loss from the sale.
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Concurrently with the closing, the Company entered into a retrocession treaty with an affiliate of Clearwater Insurance Company. Per the retrocession treaty, the Company retroceded 100% of the liabilities associated with certain Mt. McKinley policies, which had been reinsured by Everest Reinsurance (Bermuda), Ltd. ("Everest Re Bermuda"), a wholly-owned subsidiary of the Company. As consideration for entering into the retrocession treaty, Everest Re Bermuda transferred cash of $140,279 thousand, an amount equal to the net loss reserves as of the closing date. The maximum liability retroceded under the retrocession treaty will be $440,279 thousand, equal to the retrocession payment plus $300,000 thousand. The Company will retain liability for any amounts exceeding the maximum liability retroceded under the retrocession treaty.
20. SUBSEQUENT EVENTS
The Company is currently negotiating two additional reinsurance agreements with Kilimanjaro to provide the Company with catastrophe reinsurance coverage. Kilimanjaro will fund the catastrophe reinsurance coverage through the issuance of two classes of catastrophe reinsurance bonds.
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ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION
| Three Months Ended | Percentage | Nine Months Ended | Percentage |
| September 30, | Increase/ | September 30, | Increase/ |
| (Dollars in millions) | 2015 | 2014 | (Decrease) | 2015 | 2014 | (Decrease) |
| Gross written premiums | $ | 1,720.7 | $ | 1,666.7 | 3.2 | % | $ | 4,393.0 | $ | 4,349.5 | 1.0 | % |
| Net written premiums | 1,561.3 | 1,517.6 | 2.9 | % | 4,013.6 | 3,962.7 | 1.3 | % |
| REVENUES: |
| Premiums earned | $ | 1,413.6 | $ | 1,390.0 | 1.7 | % | $ | 4,053.1 | $ | 3,806.8 | 6.5 | % |
| Net investment income | 115.5 | 142.1 | -18.7 | % | 363.1 | 396.5 | -8.4 | % |
| Net realized capital gains (losses) | (160.0 | ) | (9.4 | ) | NM | (194.7 | ) | 70.7 | NM |
| Net derivative gain (loss) | (11.4 | ) | 1.9 | NM | (5.2 | ) | 4.0 | -231.7 | % |
| Other income (expense) | 17.4 | 11.3 | 53.6 | % | 59.6 | (5.8 | ) | NM |
| Total revenues | 1,375.2 | 1,535.9 | -10.5 | % | 4,275.9 | 4,272.2 | 0.1 | % |
| CLAIMS AND EXPENSES: |
| Incurred losses and loss adjustment expenses | 888.1 | 837.8 | 6.0 | % | 2,401.2 | 2,192.9 | 9.5 | % |
| Commission, brokerage, taxes and fees | 300.0 | 290.5 | 3.3 | % | 882.1 | 820.2 | 7.5 | % |
| Other underwriting expenses | 70.7 | 63.1 | 12.0 | % | 195.3 | 172.2 | 13.4 | % |
| Corporate expenses | 5.9 | 10.0 | -40.5 | % | 17.3 | 18.8 | -7.9 | % |
| Interest, fees and bond issue cost amortization expense | 9.0 | 12.4 | -27.6 | % | 27.0 | 29.0 | -6.8 | % |
| Total claims and expenses | 1,273.7 | 1,213.8 | 4.9 | % | 3,523.0 | 3,233.0 | 9.0 | % |
| INCOME (LOSS) BEFORE TAXES | 101.4 | 322.1 | -68.5 | % | 753.0 | 1,039.1 | -27.5 | % |
| Income tax expense (benefit) | (6.1 | ) | 20.9 | -129.4 | % | 70.9 | 137.9 | -48.6 | % |
| NET INCOME (LOSS) | $ | 107.6 | $ | 301.3 | -64.3 | % | $ | 682.1 | $ | 901.2 | -24.3 | % |
| Net (income) loss attributable to noncontrolling interests | (19.0 | ) | (26.3 | ) | -27.8 | % | (61.5 | ) | (42.2 | ) | 45.9 | % |
| NET INCOME (LOSS) ATTRIBUTABLE TO EVEREST RE GROUP | $ | 88.6 | $ | 274.9 | -67.8 | % | $ | 620.6 | $ | 859.0 | -27.8 | % |
| RATIOS: | Point Change | Point Change |
| Loss ratio | 62.8 | % | 60.3 | % | 2.5 | 59.2 | % | 57.6 | % | 1.6 |
| Commission and brokerage ratio | 21.2 | % | 20.9 | % | 0.3 | 21.8 | % | 21.5 | % | 0.3 |
| Other underwriting expense ratio | 5.0 | % | 4.5 | % | 0.5 | 4.8 | % | 4.6 | % | 0.2 |
| Combined ratio | 89.0 | % | 85.7 | % | 3.3 | 85.8 | % | 83.7 | % | 2.1 |
| At | At | Percentage |
| September 30, | December 31, | Increase/ |
| (Dollars in millions, except per share amounts) | 2015 | 2014 | (Decrease) |
| Balance sheet data: |
| Total investments and cash | $ | 17,647.2 | $ | 17,435.9 | 1.2 | % |
| Total assets | 21,682.3 | 20,817.8 | 4.2 | % |
| Loss and loss adjustment expense reserves | 9,966.0 | 9,720.8 | 2.5 | % |
| Total debt | 638.4 | 638.4 | 0.0 | % |
| Total liabilities | 13,443.3 | 12,945.2 | 3.8 | % |
| Redeemable noncontrolling interests - Mt. Logan Re | 752.7 | 421.6 | 78.6 | % |
| Shareholders' equity | 7,486.3 | 7,451.1 | 0.5 | % |
| Book value per share | 173.76 | 166.75 | 4.2 | % |
| (NM, not meaningful) |
| (Some amounts may not reconcile due to rounding.) |
| Three Months Ended September 30, |
| Current | Ratio %/ | Prior | Ratio %/ | Total | Ratio %/ |
| (Dollars in millions) | Year | Pt Change | Years | Pt Change | Incurred | Pt Change |
| 2015 |
| Attritional (a) | $ | 848.1 | 60.1 | % | $ | - | 0.0 | % | $ | 848.1 | 60.1 | % |
| Catastrophes | 40.0 | 2.7 | % | - | 0.0 | % | 40.0 | 2.7 | % |
| Total | $ | 888.1 | 62.8 | % | $ | - | 0.0 | % | $ | 888.1 | 62.8 | % |
| 2014 |
| Attritional (a) | $ | 807.3 | 58.1 | % | $ | 0.5 | 0.0 | % | $ | 807.8 | 58.1 | % |
| Catastrophes | 30.0 | 2.2 | % | - | 0.0 | % | 30.0 | 2.2 | % |
| Total | $ | 837.3 | 60.3 | % | $ | 0.5 | 0.0 | % | $ | 837.8 | 60.3 | % |
| Variance 2015/2014 |
| Attritional | $ | 40.8 | 2.0 | pts | $ | (0.5 | ) | - | pts | $ | 40.3 | 2.0 | pts |
| Catastrophes | 10.0 | 0.5 | pts | - | - | pts | 10.0 | 0.4 | pts |
| Total segment | $ | 50.8 | 2.5 | pts | $ | (0.5 | ) | - | pts | $ | 50.3 | 2.5 | pts |
| Nine Months Ended September 30, |
| Current | Ratio %/ | Prior | Ratio %/ | Total | Ratio %/ |
| (Dollars in millions) | Year | Pt Change | Years | Pt Change | Incurred | Pt Change |
| 2015 |
| Attritional (a) | $ | 2,332.1 | 57.5 | % | $ | (0.8 | ) | 0.0 | % | $ | 2,331.3 | 57.5 | % |
| Catastrophes | 80.0 | 2.0 | % | (10.0 | ) | -0.3 | % | 70.0 | 1.7 | % |
| Total | $ | 2,412.1 | 59.5 | % | $ | (10.8 | ) | -0.3 | % | $ | 2,401.2 | 59.2 | % |
| 2014 |
| Attritional (a) | $ | 2,120.8 | 55.7 | % | $ | (2.9 | ) | -0.1 | % | $ | 2,117.9 | 55.6 | % |
| Catastrophes | 75.0 | 2.0 | % | - | 0.0 | % | 75.0 | 2.0 | % |
| Total | $ | 2,195.8 | 57.7 | % | $ | (2.9 | ) | -0.1 | % | $ | 2,192.9 | 57.6 | % |
| Variance 2015/2014 |
| Attritional | $ | 211.3 | 1.8 | pts | $ | 2.1 | 0.1 | pts | $ | 213.4 | 1.9 | pts |
| Catastrophes | 5.0 | - | pts | (10.0 | ) | (0.3 | ) | pts | (5.0 | ) | (0.3 | ) | pts |
| Total segment | $ | 216.3 | 1.8 | pts | $ | (7.9 | ) | (0.2 | ) | pts | $ | 208.3 | 1.6 | pts |
| (a) Attritional losses exclude catastrophe losses. |
| (Some amounts may not reconcile due to rounding.) |
| Three Months Ended | Nine Months Ended |
| September 30, | September 30, |
| (Dollars in millions) | 2015 | 2014 | 2015 | 2014 |
| Fixed maturities | $ | 108.1 | $ | 115.1 | $ | 327.0 | $ | 348.9 |
| Equity securities | 11.1 | 11.1 | 35.8 | 36.1 |
| Short-term investments and cash | 0.4 | 0.3 | 1.1 | 1.2 |
| Other invested assets |
| Limited partnerships | 0.4 | 21.7 | 14.0 | 25.7 |
| Other | (0.2 | ) | 0.9 | 1.4 | 3.2 |
| Gross investment income before adjustments | 119.7 | 149.0 | 379.2 | 415.1 |
| Funds held interest income (expense) | 2.6 | 1.8 | 8.2 | 6.9 |
| Future policy benefit reserve income (expense) | (0.3 | ) | (0.5 | ) | (1.4 | ) | (0.9 | ) |
| Gross investment income | 122.0 | 150.3 | 386.0 | 421.0 |
| Investment expenses | (6.5 | ) | (8.2 | ) | (22.8 | ) | (24.5 | ) |
| Net investment income | $ | 115.5 | $ | 142.1 | $ | 363.1 | $ | 396.5 |
| (Some amounts may not reconcile due to rounding.) |
| At | At |
| September 30, | December 31, |
| 2015 | 2014 |
| Imbedded pre-tax yield of cash and invested assets | 3.0% | 3.0% |
| Imbedded after-tax yield of cash and invested assets | 2.5% | 2.6% |
| Three Months Ended | Nine Months Ended |
| September 30, | September 30, |
| 2015 | 2014 | 2015 | 2014 |
| Annualized pre-tax yield on average cash and invested assets | 2.7% | 3.4% | 2.8% | 3.2% |
| Annualized after-tax yield on average cash and invested assets | 2.2% | 2.7% | 2.3% | 2.7% |
| Three Months Ended September 30, | Nine Months Ended September 30, |
| (Dollars in millions) | 2015 | 2014 | Variance | 2015 | 2014 | Variance |
| Gains (losses) from sales: |
| Fixed maturity securities, market value: |
| Gains | $ | 11.8 | $ | 12.7 | $ | (0.9 | ) | $ | 37.5 | $ | 27.5 | $ | 10.0 |
| Losses | (17.0 | ) | (5.5 | ) | (11.5 | ) | (53.3 | ) | (23.9 | ) | (29.4 | ) |
| Total | (5.2 | ) | 7.3 | (12.5 | ) | (15.8 | ) | 3.7 | (19.5 | ) |
| Fixed maturity securities, fair value: |
| Gains | - | 0.1 | (0.1 | ) | - | 1.3 | (1.3 | ) |
| Losses | - | - | - | - | (0.3 | ) | 0.3 |
| Total | - | 0.1 | (0.1 | ) | - | 1.0 | (1.0 | ) |
| Equity securities, market value: |
| Gains | - | - | - | - | - | - |
| Losses | (3.6 | ) | (0.1 | ) | (3.5 | ) | (4.5 | ) | (1.2 | ) | (3.3 | ) |
| Total | (3.6 | ) | (0.1 | ) | (3.5 | ) | (4.5 | ) | (1.2 | ) | (3.3 | ) |
| Equity securities, fair value: |
| Gains | 5.3 | 2.5 | 2.8 | 18.9 | 13.0 | 5.9 |
| Losses | (18.9 | ) | (4.4 | ) | (14.5 | ) | (31.9 | ) | (14.9 | ) | (17.0 | ) |
| Total | (13.6 | ) | (1.9 | ) | (11.7 | ) | (13.0 | ) | (1.9 | ) | (11.1 | ) |
| Total net realized capital gains (losses) from sales: |
| Gains | 17.1 | 15.4 | 1.7 | 56.4 | 41.9 | 14.5 |
| Losses | (39.5 | ) | (10.0 | ) | (29.5 | ) | (89.7 | ) | (40.3 | ) | (49.4 | ) |
| Total | (22.5 | ) | 5.4 | (27.9 | ) | (33.3 | ) | 1.6 | (34.9 | ) |
| Other-than-temporary impairments: | (20.4 | ) | (0.1 | ) | (20.3 | ) | (62.7 | ) | (0.5 | ) | (62.2 | ) |
| Gains (losses) from fair value adjustments: |
| Fixed maturity securities, fair value | - | (0.9 | ) | 0.9 | 0.1 | (0.9 | ) | 1.0 |
| Equity securities, fair value | (117.1 | ) | (13.8 | ) | (103.3 | ) | (98.7 | ) | 70.5 | (169.2 | ) |
| Total | (117.1 | ) | (14.7 | ) | (102.4 | ) | (98.7 | ) | 69.6 | (168.3 | ) |
| Total net realized capital gains (losses) | $ | (160.0 | ) | $ | (9.4 | ) | $ | (150.6 | ) | $ | (194.7 | ) | $ | 70.7 | $ | (265.4 | ) |
| (Some amounts may not reconcile due to rounding.) |
| Three Months Ended September 30, | Nine Months Ended September 30, |
| (Dollars in millions) | 2015 | 2014 | Variance | % Change | 2015 | 2014 | Variance | % Change |
| Gross written premiums | $ | 537.5 | $ | 640.7 | $ | (103.2 | ) | -16.1 | % | $ | 1,464.8 | $ | 1,573.8 | $ | (108.9 | ) | -6.9 | % |
| Net written premiums | 511.2 | 615.1 | (103.8 | ) | -16.9 | % | 1,383.6 | 1,536.1 | (152.5 | ) | -9.9 | % |
| Premiums earned | $ | 488.5 | $ | 559.5 | $ | (71.0 | ) | -12.7 | % | $ | 1,480.4 | $ | 1,478.3 | $ | 2.2 | 0.1 | % |
| Incurred losses and LAE | 225.9 | 249.0 | (23.1 | ) | -9.3 | % | 699.6 | 701.5 | (1.9 | ) | -0.3 | % |
| Commission and brokerage | 121.1 | 123.4 | (2.4 | ) | -1.9 | % | 364.0 | 339.2 | 24.8 | 7.3 | % |
| Other underwriting expenses | 13.7 | 12.1 | 1.6 | 13.2 | % | 37.1 | 33.1 | 4.0 | 12.1 | % |
| Underwriting gain (loss) | $ | 127.8 | $ | 174.9 | $ | (47.2 | ) | -27.0 | % | $ | 379.8 | $ | 404.6 | $ | (24.8 | ) | -6.1 | % |
| Point Chg | Point Chg |
| Loss ratio | 46.3 | % | 44.5 | % | 1.8 | 47.3 | % | 47.5 | % | (0.2 | ) |
| Commission and brokerage ratio | 24.8 | % | 22.1 | % | 2.7 | 24.6 | % | 22.9 | % | 1.7 |
| Other underwriting expense ratio | 2.7 | % | 2.1 | % | 0.6 | 2.4 | % | 2.2 | % | 0.2 |
| Combined ratio | 73.8 | % | 68.7 | % | 5.1 | 74.3 | % | 72.6 | % | 1.7 |
| (Some amounts may not reconcile due to rounding.) |
| Three Months Ended September 30, |
| Current | Ratio %/ | Prior | Ratio %/ | Total | Ratio %/ |
| (Dollars in millions) | Year | Pt Change | Years | Pt Change | Incurred | Pt Change |
| 2015 |
| Attritional | $ | 225.5 | 46.2 | % | $ | 0.5 | 0.2 | % | $ | 226.0 | 46.4 | % |
| Catastrophes | 0.2 | 0.0 | % | (0.3 | ) | -0.1 | % | (0.1 | ) | -0.1 | % |
| Total segment | $ | 225.7 | 46.2 | % | $ | 0.2 | 0.1 | % | $ | 225.9 | 46.3 | % |
| 2014 |
| Attritional | $ | 246.7 | 44.1 | % | $ | 1.3 | 0.2 | % | $ | 248.1 | 44.3 | % |
| Catastrophes | - | 0.0 | % | 0.9 | 0.2 | % | 0.9 | 0.2 | % |
| Total segment | $ | 246.7 | 44.1 | % | $ | 2.3 | 0.4 | % | $ | 249.0 | 44.5 | % |
| Variance 2015/2014 |
| Attritional | $ | (21.2 | ) | 2.1 | pts | $ | (0.8 | ) | - | pts | $ | (22.1 | ) | 2.1 | pts |
| Catastrophes | 0.2 | - | pts | (1.2 | ) | (0.3 | ) | pts | (1.0 | ) | (0.3 | ) | pts |
| Total segment | $ | (21.0 | ) | 2.1 | pts | $ | (2.1 | ) | (0.3 | ) | pts | $ | (23.1 | ) | 1.8 | pts |
| Nine Months Ended September 30, |
| Current | Ratio %/ | Prior | Ratio %/ | Total | Ratio %/ |
| (Dollars in millions) | Year | Pt Change | Years | Pt Change | Incurred | Pt Change |
| 2015 |
| Attritional | $ | 732.4 | 49.5 | % | $ | (24.3 | ) | -1.6 | % | $ | 708.1 | 47.9 | % |
| Catastrophes | 0.2 | 0.0 | % | (8.8 | ) | -0.6 | % | (8.5 | ) | -0.6 | % |
| Total segment | $ | 732.6 | 49.5 | % | $ | (33.1 | ) | -2.2 | % | $ | 699.6 | 47.3 | % |
| 2014 |
| Attritional | $ | 691.3 | 46.8 | % | $ | 2.3 | 0.2 | % | $ | 693.6 | 46.9 | % |
| Catastrophes | 6.3 | 0.4 | % | 1.5 | 0.1 | % | 7.8 | 0.5 | % |
| Total segment | $ | 697.7 | 47.2 | % | $ | 3.8 | 0.3 | % | $ | 701.5 | 47.5 | % |
| Variance 2015/2014 |
| Attritional | $ | 41.1 | 2.7 | pts | $ | (26.6 | ) | (1.8 | ) | pts | $ | 14.5 | 1.0 | pts |
| Catastrophes | (6.1 | ) | (0.4 | ) | pts | (10.3 | ) | (0.7 | ) | pts | (16.3 | ) | (1.1 | ) | pts |
| Total segment | $ | 34.9 | 2.3 | pts | $ | (36.9 | ) | (2.5 | ) | pts | $ | (1.9 | ) | (0.2 | ) | pts |
| (Some amounts may not reconcile due to rounding.) |
| Three Months Ended September 30, | Nine Months Ended September 30, |
| (Dollars in millions) | 2015 | 2014 | Variance | % Change | 2015 | 2014 | Variance | % Change |
| Gross written premiums | $ | 354.9 | $ | 406.3 | $ | (51.4 | ) | -12.6 | % | $ | 966.1 | $ | 1,181.5 | $ | (215.4 | ) | -18.2 | % |
| Net written premiums | 318.5 | 352.6 | (34.1 | ) | -9.7 | % | 896.9 | 977.2 | (80.4 | ) | -8.2 | % |
| Premiums earned | $ | 291.4 | $ | 320.0 | $ | (28.6 | ) | -8.9 | % | $ | 935.2 | $ | 958.4 | $ | (23.2 | ) | -2.4 | % |
| Incurred losses and LAE | 229.0 | 236.6 | (7.5 | ) | -3.2 | % | 630.8 | 604.2 | 26.6 | 4.4 | % |
| Commission and brokerage | 70.9 | 73.1 | (2.2 | ) | -3.1 | % | 226.3 | 215.7 | 10.6 | 4.9 | % |
| Other underwriting expenses | 9.1 | 8.8 | 0.4 | 4.2 | % | 25.3 | 24.7 | 0.6 | 2.5 | % |
| Underwriting gain (loss) | $ | (17.6 | ) | $ | 1.6 | $ | (19.2 | ) | NM | $ | 52.9 | $ | 113.8 | $ | (61.0 | ) | -53.6 | % |
| Point Chg | Point Chg |
| Loss ratio | 78.6 | % | 73.9 | % | 4.7 | 67.4 | % | 63.0 | % | 4.4 |
| Commission and brokerage ratio | 24.3 | % | 22.9 | % | 1.4 | 24.2 | % | 22.5 | % | 1.7 |
| Other underwriting expense ratio | 3.2 | % | 2.7 | % | 0.5 | 2.7 | % | 2.6 | % | 0.1 |
| Combined ratio | 106.1 | % | 99.5 | % | 6.6 | 94.3 | % | 88.1 | % | 6.2 |
| (NM, not meaningful) |
| (Some amounts may not reconcile due to rounding.) |
| Three Months Ended September 30, |
| Current | Ratio %/ | Prior | Ratio %/ | Total | Ratio %/ |
| (Dollars in millions) | Year | Pt Change | Years | Pt Change | Incurred | Pt Change |
| 2015 |
| Attritional | $ | 195.5 | 67.1 | % | $ | 0.4 | 0.1 | % | $ | 195.9 | 67.2 | % |
| Catastrophes | 34.4 | 11.8 | % | (1.3 | ) | -0.4 | % | 33.1 | 11.4 | % |
| Total segment | $ | 229.9 | 78.9 | % | $ | (0.9 | ) | -0.3 | % | $ | 229.0 | 78.6 | % |
| 2014 |
| Attritional | $ | 213.0 | 66.5 | % | $ | (4.6 | ) | -1.4 | % | $ | 208.4 | 65.1 | % |
| Catastrophes | 29.3 | 9.2 | % | (1.2 | ) | -0.4 | % | 28.1 | 8.8 | % |
| Total segment | $ | 242.3 | 75.7 | % | $ | (5.8 | ) | -1.8 | % | $ | 236.6 | 73.9 | % |
| Variance 2015/2014 |
| Attritional | $ | (17.5 | ) | 0.6 | pts | $ | 5.0 | 1.5 | pts | $ | (12.5 | ) | 2.1 | pts |
| Catastrophes | 5.1 | 2.6 | pts | (0.1 | ) | - | pts | 5.0 | 2.6 | pts |
| Total segment | $ | (12.4 | ) | 3.2 | pts | $ | 4.9 | 1.5 | pts | $ | (7.5 | ) | 4.7 | pts |
| Nine Months Ended September 30, |
| Current | Ratio %/ | Prior | Ratio %/ | Total | Ratio %/ |
| (Dollars in millions) | Year | Pt Change | Years | Pt Change | Incurred | Pt Change |
| 2015 |
| Attritional | $ | 565.2 | 60.4 | % | $ | (2.7 | ) | -0.3 | % | $ | 562.5 | 60.1 | % |
| Catastrophes | 71.3 | 7.6 | % | (3.1 | ) | -0.3 | % | 68.2 | 7.3 | % |
| Total segment | $ | 636.6 | 68.0 | % | $ | (5.8 | ) | -0.6 | % | $ | 630.8 | 67.4 | % |
| 2014 |
| Attritional | $ | 548.2 | 57.1 | % | $ | (4.7 | ) | -0.5 | % | $ | 543.5 | 56.6 | % |
| Catastrophes | 63.9 | 6.7 | % | (3.3 | ) | -0.3 | % | 60.6 | 6.4 | % |
| Total segment | $ | 612.1 | 63.8 | % | $ | (8.0 | ) | -0.8 | % | $ | 604.2 | 63.0 | % |
| Variance 2015/2014 |
| Attritional | $ | 17.0 | 3.3 | pts | $ | 2.0 | 0.2 | pts | $ | 19.0 | 3.5 | pts |
| Catastrophes | 7.4 | 0.9 | pts | 0.2 | - | pts | 7.6 | 0.9 | pts |
| Total segment | $ | 24.5 | 4.2 | pts | $ | 2.2 | 0.2 | pts | $ | 26.6 | 4.4 | pts |
| (Some amounts may not reconcile due to rounding.) |
| Three Months Ended September 30, | Nine Months Ended September 30, |
| (Dollars in millions) | 2015 | 2014 | Variance | % Change | 2015 | 2014 | Variance | % Change |
| Gross written premiums | $ | 267.0 | $ | 205.3 | $ | 61.7 | 30.0 | % | $ | 605.4 | $ | 573.8 | $ | 31.6 | 5.5 | % |
| Net written premiums | 251.7 | 189.4 | 62.2 | 32.8 | % | 557.5 | 548.2 | 9.2 | 1.7 | % |
| Premiums earned | $ | 222.2 | $ | 181.8 | $ | 40.5 | 22.3 | % | $ | 616.2 | $ | 546.7 | $ | 69.5 | 12.7 | % |
| Incurred losses and LAE | 154.3 | 109.0 | 45.4 | 41.6 | % | 372.6 | 310.6 | 62.0 | 20.0 | % |
| Commission and brokerage | 53.0 | 48.4 | 4.6 | 9.4 | % | 151.4 | 141.0 | 10.4 | 7.4 | % |
| Other underwriting expenses | 9.5 | 9.4 | 0.1 | 1.0 | % | 27.0 | 25.8 | 1.2 | 4.8 | % |
| Underwriting gain (loss) | $ | 5.5 | $ | 15.0 | $ | (9.5 | ) | -63.5 | % | $ | 65.3 | $ | 69.3 | $ | (4.1 | ) | -5.9 | % |
| Point Chg | Point Chg |
| Loss ratio | 69.4 | % | 59.9 | % | 9.5 | 60.5 | % | 56.8 | % | 3.7 |
| Commission and brokerage ratio | 23.8 | % | 26.6 | % | (2.8 | ) | 24.6 | % | 25.8 | % | (1.2 | ) |
| Other underwriting expense ratio | 4.3 | % | 5.2 | % | (0.9 | ) | 4.3 | % | 4.7 | % | (0.4 | ) |
| Combined ratio | 97.5 | % | 91.7 | % | 5.8 | 89.4 | % | 87.3 | % | 2.1 |
| (Some amounts may not reconcile due to rounding.) |
| Three Months Ended September 30, |
| Current | Ratio %/ | Prior | Ratio %/ | Total | Ratio %/ |
| (Dollars in millions) | Year | Pt Change | Years | Pt Change | Incurred | Pt Change |
| 2015 |
| Attritional | $ | 153.4 | 69.0 | % | $ | - | 0.0 | % | $ | 153.4 | 69.0 | % |
| Catastrophes | - | 0.0 | % | 0.9 | 0.4 | % | 0.9 | 0.4 | % |
| Total segment | $ | 153.4 | 69.0 | % | $ | 0.9 | 0.4 | % | $ | 154.3 | 69.4 | % |
| 2014 |
| Attritional | $ | 108.8 | 59.8 | % | $ | - | 0.0 | % | $ | 108.8 | 59.8 | % |
| Catastrophes | - | 0.0 | % | 0.2 | 0.1 | % | 0.2 | 0.1 | % |
| Total segment | $ | 108.8 | 59.8 | % | $ | 0.2 | 0.1 | % | $ | 109.0 | 59.9 | % |
| Variance 2015/2014 |
| Attritional | $ | 44.6 | 9.2 | pts | $ | - | - | pts | $ | 44.6 | 9.2 | pts |
| Catastrophes | - | - | pts | 0.7 | 0.3 | pts | 0.7 | 0.3 | pts |
| Total segment | $ | 44.6 | 9.2 | pts | $ | 0.7 | 0.3 | pts | $ | 45.4 | 9.5 | pts |
| Nine Months Ended September 30, |
| Current | Ratio %/ | Prior | Ratio %/ | Total | Ratio %/ |
| (Dollars in millions) | Year | Pt Change | Years | Pt Change | Incurred | Pt Change |
| 2015 |
| Attritional | $ | 376.5 | 61.1 | % | $ | (5.2 | ) | -0.8 | % | $ | 371.3 | 60.3 | % |
| Catastrophes | - | 0.0 | % | 1.3 | 0.2 | % | 1.3 | 0.2 | % |
| Total segment | $ | 376.5 | 61.1 | % | $ | (3.9 | ) | -0.6 | % | $ | 372.6 | 60.5 | % |
| 2014 |
| Attritional | $ | 313.7 | 57.4 | % | $ | (5.0 | ) | -0.9 | % | $ | 308.7 | 56.5 | % |
| Catastrophes | - | 0.0 | % | 1.9 | 0.3 | % | 1.9 | 0.3 | % |
| Total segment | $ | 313.7 | 57.4 | % | $ | (3.1 | ) | -0.6 | % | $ | 310.6 | 56.8 | % |
| Variance 2015/2014 |
| Attritional | $ | 62.8 | 3.7 | pts | $ | (0.2 | ) | 0.1 | pts | $ | 62.6 | 3.8 | pts |
| Catastrophes | - | - | pts | (0.6 | ) | (0.1 | ) | pts | (0.6 | ) | (0.1 | ) | pts |
| Total segment | $ | 62.8 | 3.7 | pts | $ | (0.8 | ) | - | pts | $ | 62.0 | 3.7 | pts |
| (Some amounts may not reconcile due to rounding.) |
| Three Months Ended September 30, | Nine Months Ended September 30, |
| (Dollars in millions) | 2015 | 2014 | Variance | % Change | 2015 | 2014 | Variance | % Change |
| Gross written premiums | $ | 489.1 | $ | 364.1 | $ | 125.0 | 34.3 | % | $ | 1,173.0 | $ | 911.2 | $ | 261.8 | 28.7 | % |
| Net written premiums | 419.0 | 310.7 | 108.3 | 34.8 | % | 1,022.4 | 802.4 | 220.0 | 27.4 | % |
| Premiums earned | $ | 360.7 | $ | 290.5 | $ | 70.2 | 24.2 | % | $ | 888.7 | $ | 742.0 | $ | 146.7 | 19.8 | % |
| Incurred losses and LAE | 262.3 | 239.8 | 22.5 | 9.4 | % | 662.1 | 557.0 | 105.0 | 18.9 | % |
| Commission and brokerage | 50.3 | 40.4 | 9.9 | 24.4 | % | 127.1 | 114.5 | 12.6 | 11.0 | % |
| Other underwriting expenses | 35.7 | 31.3 | 4.4 | 13.9 | % | 99.2 | 83.7 | 15.6 | 18.6 | % |
| Underwriting gain (loss) | $ | 12.5 | $ | (21.0 | ) | $ | 33.5 | -159.3 | % | $ | 0.3 | $ | (13.2 | ) | $ | 13.5 | -102.3 | % |
| Point Chg | Point Chg |
| Loss ratio | 72.7 | % | 82.5 | % | (9.8 | ) | 74.5 | % | 75.1 | % | (0.6 | ) |
| Commission and brokerage ratio | 13.9 | % | 13.9 | % | - | 14.3 | % | 15.4 | % | (1.1 | ) |
| Other underwriting expense ratio | 9.9 | % | 10.8 | % | (0.9 | ) | 11.2 | % | 11.3 | % | (0.1 | ) |
| Combined ratio | 96.5 | % | 107.2 | % | (10.7 | ) | 100.0 | % | 101.8 | % | (1.8 | ) |
| (Some amounts may not reconcile due to rounding.) |
| Three Months Ended September 30, |
| Current | Ratio %/ | Prior | Ratio %/ | Total | Ratio %/ |
| (Dollars in millions) | Year | Pt Change | Years | Pt Change | Incurred | Pt Change |
| 2015 |
| Attritional | $ | 262.9 | 72.9 | % | $ | (0.9 | ) | -0.3 | % | $ | 262.1 | 72.6 | % |
| Catastrophes | - | 0.0 | % | 0.2 | 0.1 | % | 0.2 | 0.1 | % |
| Total segment | $ | 262.9 | 72.9 | % | $ | (0.6 | ) | -0.2 | % | $ | 262.3 | 72.7 | % |
| 2014 |
| Attritional | $ | 236.1 | 81.2 | % | $ | 3.7 | 1.3 | % | $ | 239.8 | 82.5 | % |
| Catastrophes | - | 0.0 | % | - | 0.0 | % | - | 0.0 | % |
| Total segment | $ | 236.1 | 81.2 | % | $ | 3.7 | 1.3 | % | $ | 239.8 | 82.5 | % |
| Variance 2015/2014 |
| Attritional | $ | 26.8 | (8.3 | ) | pts | $ | (4.6 | ) | (1.6 | ) | pts | $ | 22.3 | (9.9 | ) | pts |
| Catastrophes | - | - | pts | 0.2 | 0.1 | pts | 0.2 | 0.1 | pts |
| Total segment | $ | 26.8 | (8.3 | ) | pts | $ | (4.3 | ) | (1.5 | ) | pts | $ | 22.5 | (9.8 | ) | pts |
| Nine Months Ended September 30, |
| Current | Ratio %/ | Prior | Ratio %/ | Total | Ratio %/ |
| (Dollars in millions) | Year | Pt Change | Years | Pt Change | Incurred | Pt Change |
| 2015 |
| Attritional | $ | 630.5 | 70.9 | % | $ | 31.5 | 3.6 | % | $ | 662.0 | 74.5 | % |
| Catastrophes | - | 0.0 | % | 0.1 | 0.0 | % | 0.1 | 0.0 | % |
| Total segment | $ | 630.5 | 70.9 | % | $ | 31.6 | 3.6 | % | $ | 662.1 | 74.5 | % |
| 2014 |
| Attritional | $ | 552.5 | 74.5 | % | $ | 4.5 | 0.6 | % | $ | 557.0 | 75.1 | % |
| Catastrophes | - | 0.0 | % | 0.1 | 0.0 | % | 0.1 | 0.0 | % |
| Total segment | $ | 552.5 | 74.5 | % | $ | 4.6 | 0.6 | % | $ | 557.0 | 75.1 | % |
| Variance 2015/2014 |
| Attritional | $ | 78.0 | (3.6 | ) | pts | $ | 27.0 | 3.0 | pts | $ | 105.0 | (0.6 | ) | pts |
| Catastrophes | - | - | pts | - | - | pts | - | - | pts |
| Total segment | $ | 78.0 | (3.6 | ) | pts | $ | 27.0 | 3.0 | pts | $ | 105.0 | (0.6 | ) | pts |
| (Some amounts may not reconcile due to rounding.) |
| Three Months Ended September 30, | Nine Months Ended September 30, |
| (Dollars in millions) | 2015 | 2014 | Variance | % Change | 2015 | 2014 | Variance | % Change |
| Gross written premiums | $ | 72.2 | $ | 50.3 | $ | 21.9 | 43.4 | % | $ | 183.7 | $ | 109.2 | $ | 74.5 | 68.3 | % |
| Net written premiums | 60.9 | 49.8 | 11.1 | 22.4 | % | 153.3 | 98.7 | 54.6 | 55.4 | % |
| Premiums earned | $ | 50.8 | $ | 38.2 | $ | 12.6 | 32.9 | % | $ | 132.5 | $ | 81.4 | $ | 51.1 | 62.8 | % |
| Incurred losses and LAE | 16.5 | 3.4 | 13.1 | NM | 36.3 | 19.6 | 16.7 | 85.3 | % |
| Commission and brokerage | 4.9 | 5.1 | (0.2 | ) | -4.9 | % | 13.3 | 9.8 | 3.5 | 35.7 | % |
| Other underwriting expenses | 2.7 | 1.6 | 1.1 | 71.6 | % | 6.7 | 5.0 | 1.7 | 34.5 | % |
| Underwriting gain (loss) | $ | 26.7 | $ | 28.1 | $ | (1.4 | ) | -4.9 | % | $ | 76.3 | $ | 47.1 | $ | 29.2 | 62.0 | % |
| Point Chg | Point Chg |
| Loss ratio | 32.5 | % | 8.9 | % | 23.6 | 27.4 | % | 24.0 | % | 3.4 |
| Commission and brokerage ratio | 9.6 | % | 13.4 | % | (3.8 | ) | 10.1 | % | 12.1 | % | (2.0 | ) |
| Other underwriting expense ratio | 5.2 | % | 4.1 | % | 1.1 | 5.0 | % | 6.1 | % | (1.1 | ) |
| Combined ratio | 47.3 | % | 26.4 | % | 20.9 | 42.5 | % | 42.2 | % | 0.3 |
| (NM, not meaningful) |
| (Some amounts may not reconcile due to rounding.) |
| Three Months Ended September 30, |
| Current | Ratio %/ | Prior | Ratio %/ | Total | Ratio %/ |
| (Dollars in millions) | Year | Pt Change | Years | Pt Change | Incurred | Pt Change |
| 2015 |
| Attritional | $ | 10.7 | 21.1 | % | $ | - | 0.0 | % | $ | 10.7 | 21.1 | % |
| Catastrophes | 5.4 | 10.5 | % | 0.4 | 0.9 | % | 5.8 | 11.4 | % |
| Total segment | $ | 16.1 | 31.6 | % | $ | 0.4 | 0.9 | % | $ | 16.5 | 32.5 | % |
| 2014 |
| Attritional | $ | 2.7 | 7.2 | % | $ | - | 0.0 | % | $ | 2.7 | 7.2 | % |
| Catastrophes | 0.7 | 1.7 | % | - | 0.0 | % | 0.7 | 1.7 | % |
| Total segment | $ | 3.4 | 8.9 | % | $ | - | 0.0 | % | $ | 3.4 | 8.9 | % |
| Variance 2015/2014 |
| Attritional | $ | 8.0 | 13.9 | pts | $ | - | - | pts | $ | 8.0 | 13.9 | pts |
| Catastrophes | 4.7 | 8.8 | pts | 0.4 | 0.9 | pts | 5.1 | 9.7 | pts |
| Total segment | $ | 12.7 | 22.7 | pts | $ | 0.4 | 0.9 | pts | $ | 13.1 | 23.6 | pts |
| Nine Months Ended September 30, |
| Current | Ratio %/ | Prior | Ratio %/ | Total | Ratio %/ |
| (Dollars in millions) | Year | Pt Change | Years | Pt Change | Incurred | Pt Change |
| 2015 |
| Attritional | $ | 27.4 | 20.7 | % | $ | - | 0.0 | % | $ | 27.4 | 20.7 | % |
| Catastrophes | 8.4 | 6.4 | % | 0.4 | 0.3 | % | 8.8 | 6.7 | % |
| Total segment | $ | 35.8 | 27.1 | % | $ | 0.4 | 0.3 | % | $ | 36.3 | 27.4 | % |
| 2014 |
| Attritional | $ | 15.0 | 18.4 | % | $ | - | 0.0 | % | $ | 15.0 | 18.4 | % |
| Catastrophes | 4.7 | 5.8 | % | (0.2 | ) | -0.2 | % | 4.5 | 5.6 | % |
| Total segment | $ | 19.8 | 24.2 | % | $ | (0.2 | ) | -0.2 | % | $ | 19.6 | 24.0 | % |
| Variance 2015/2014 |
| Attritional | $ | 12.4 | 2.3 | pts | $ | - | - | pts | $ | 12.4 | 2.3 | pts |
| Catastrophes | 3.7 | 0.6 | pts | 0.6 | 0.5 | pts | 4.3 | 1.1 | pts |
| Total segment | $ | 16.0 | 2.9 | pts | $ | 0.6 | 0.5 | pts | $ | 16.7 | 3.4 | pts |
| (Some amounts may not reconcile due to rounding.) |
| (Dollars in millions) | At September 30, 2015 | At December 31, 2014 |
| Fixed maturities, market value | $ | 13,491.0 | 76.4 | % | $ | 13,101.1 | 75.1 | % |
| Fixed maturities, fair value | - | 0.0 | % | 1.5 | 0.0 | % |
| Equity securities, market value | 113.0 | 0.6 | % | 140.2 | 0.8 | % |
| Equity securities, fair value | 1,357.3 | 7.7 | % | 1,447.8 | 8.3 | % |
| Short-term investments | 1,615.0 | 9.2 | % | 1,705.9 | 9.8 | % |
| Other invested assets | 669.7 | 3.8 | % | 601.9 | 3.5 | % |
| Cash | 401.2 | 2.3 | % | 437.5 | 2.5 | % |
| Total investments and cash | $ | 17,647.2 | 100.0 | % | $ | 17,435.9 | 100.0 | % |
| (Some amounts may not reconcile due to rounding.) |
| At | At |
| September 30, 2015 | December 31, 2014 |
| Fixed income portfolio duration (years) | 3.0 | 2.9 |
| Fixed income composite credit quality | A1 | A1 |
| Imbedded end of period yield, pre-tax | 3.0% | 3.0% |
| Imbedded end of period yield, after-tax | 2.5% | 2.6% |
| Nine Months Ended | Twelve Months Ended |
| September 30, 2015 | December 31, 2014 |
| Fixed income portfolio total return | 1.4% | 3.5% |
| Barclay's Capital - U.S. aggregate index | 1.1% | 6.0% |
| Common equity portfolio total return | -5.0% | 10.4% |
| S&P 500 index | -5.3% | 13.7% |
| Other invested asset portfolio total return | 4.1% | 11.8% |
| At September 30, 2015 |
| Case | IBNR | Total | % of |
| (Dollars in millions) | Reserves | Reserves | Reserves | Total |
| U.S. Reinsurance | $ | 1,290.2 | $ | 2,013.9 | $ | 3,304.1 | 33.2 | % |
| International | 775.7 | 1,069.5 | 1,845.3 | 18.5 | % |
| Bermuda | 862.4 | 1,225.5 | 2,087.8 | 20.9 | % |
| Insurance | 1,001.0 | 1,249.8 | 2,250.8 | 22.6 | % |
| Mt. Logan Re | 18.4 | 38.7 | 57.1 | 0.6 | % |
| Total excluding A&E | 3,947.7 | 5,597.4 | 9,545.1 | 95.8 | % |
| A&E | 236.1 | 184.8 | 420.9 | 4.2 | % |
| Total including A&E | $ | 4,183.8 | $ | 5,782.2 | $ | 9,966.0 | 100.0 | % |
| (Some amounts may not reconcile due to rounding.) |
| At December 31, 2014 |
| Case | IBNR | Total | % of |
| (Dollars in millions) | Reserves | Reserves | Reserves | Total |
| U.S. Reinsurance | $ | 1,409.5 | $ | 1,925.4 | $ | 3,334.9 | 34.3 | % |
| International | 902.5 | 868.6 | 1,771.0 | 18.2 | % |
| Bermuda | 783.9 | 1,108.2 | 1,892.0 | 19.5 | % |
| Insurance | 968.3 | 1,250.4 | 2,218.6 | 22.8 | % |
| Mt. Logan Re | 13.0 | 15.0 | 28.0 | 0.3 | % |
| Total excluding A&E | 4,077.1 | 5,167.5 | 9,244.6 | 95.1 | % |
| A&E | 251.1 | 225.1 | 476.2 | 4.9 | % |
| Total including A&E | $ | 4,328.2 | $ | 5,392.6 | $ | 9,720.8 | 100.0 | % |
| (Some amounts may not reconcile due to rounding.) |
| At | At |
| September 30, | December 31, |
| (Dollars in millions) | 2015 | 2014 |
| Gross reserves | $ | 420.9 | $ | 476.2 |
| Reinsurance receivable | (113.2 | ) | (18.0 | ) |
| Net reserves | $ | 307.6 | $ | 458.2 |
| (Some amounts may not reconcile due to rounding.) |
| Bermuda Re (1) | Everest Re (2) |
| At December 31, | At December 31, |
| (Dollars in millions) | 2014 | 2013 | 2014 | 2013 |
| Regulatory targeted capital | $ | 2,050.0 | $ | 2,154.6 | $ | 1,209.6 | $ | 1,094.6 |
| Actual capital | $ | 2,748.0 | $ | 2,712.2 | $ | 2,893.0 | $ | 2,814.3 |
| Impact of Interest Rate Shift in Basis Points |
| At September 30, 2015 |
| -200 | -100 | 0 | 100 | 200 |
| (Dollars in millions) |
| Total Market/Fair Value | $ | 15,883.0 | $ | 15,507.1 | $ | 15,106.0 | $ | 14,677.4 | $ | 14,235.5 |
| Market/Fair Value Change from Base (%) | 5.1 | % | 2.7 | % | 0.0 | % | -2.8 | % | -5.8 | % |
| Change in Unrealized Appreciation |
| After-tax from Base ($) | $ | 657.8 | $ | 340.0 | $ | - | $ | (364.4 | ) | $ | (740.2 | ) |
| Impact of Percentage Change in Equity Fair/Market Values |
| At September 30, 2015 |
| (Dollars in millions) | -20% | -10% | 0% | 10% | 20% |
| Fair/Market Value of the Equity Portfolio | $ | 1,176.2 | $ | 1,323.3 | $ | 1,470.3 | $ | 1,617.3 | $ | 1,764.4 |
| After-tax Change in Fair/Market Value | $ | (201.7 | ) | $ | (100.9 | ) | $ | - | $ | 100.9 | $ | 201.7 |

ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Market Risk Instruments. See "Liquidity and Capital Resources - Market Sensitive Instruments" in PART I – ITEM 2.
57
ITEM 4.
CONTROLS AND PROCEDURES
As of the end of the period covered by this report, our management carried out an evaluation, with the participation of the Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the "Exchange Act")). Based on their evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective to ensure that information required to be disclosed by us in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission's rules and forms. Our management, with the participation of the Chief Executive Officer and Chief Financial Officer, also conducted an evaluation of our internal control over financial reporting to determine whether any changes occurred during the quarter covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Based on that evaluation, there has been no such change during the quarter covered by this report.
PART II
ITEM 1.
LEGAL PROCEEDINGS
In the ordinary course of business, the Company is involved in lawsuits, arbitrations and other formal and informal dispute resolution procedures, the outcomes of which will determine the Company's rights and obligations under insurance and reinsurance agreements. In some disputes, the Company seeks to enforce its rights under an agreement or to collect funds owing to it. In other matters, the Company is resisting attempts by others to collect funds or enforce alleged rights. These disputes arise from time to time and are ultimately resolved through both informal and formal means, including negotiated resolution, arbitration and litigation. In all such matters, the Company believes that its positions are legally and commercially reasonable. The Company considers the statuses of these proceedings when determining its reserves for unpaid loss and loss adjustment expenses.
Aside from litigation and arbitrations related to these insurance and reinsurance agreements, the Company is not a party to any other material litigation or arbitration.
ITEM 1A.
RISK FACTORS
No material changes.
58
ITEM 2.
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Issuer Purchases of Equity Securities.
| Issuer Purchases of Equity Securities |
| (a) | (b) | (c) | (d) |
| Maximum Number (or |
| Total Number of | Approximate Dollar |
| Shares (or Units) | Value) of Shares (or |
| Purchased as Part | Units) that May Yet |
| Total Number of | of Publicly | Be Purchased Under |
| Shares (or Units) | Average Price Paid | Announced Plans or | the Plans or |
| Period | Purchased | per Share (or Unit) | Programs | Programs (1) |
| July 1 - 31, 2015 | 1,756 | $ | 183.2850 | - | 5,631,185 |
| August 1 - 31, 2015 | 514,629 | $ | 177.4608 | 514,629 | 5,116,556 |
| September 1 - 30, 2015 | 626,078 | $ | 174.4833 | 622,844 | 4,493,712 |
| Total | 1,142,463 | $ | - | 1,137,473 | 4,493,712 |

(1) On September 21, 2004, the Company's board of directors approved an amended share repurchase program authorizing the Company and/or its subsidiary Holdings to purchase up to an aggregate of 5,000,000 of the Company's common shares through open market transactions, privately negotiated transactions or both. On July 21, 2008; February 24, 2010; February 22, 2012; May 15, 2013; and November 19, 2014, the Company's executive committee of the Board of Directors has approved subsequent amendments to the share repurchase program authorizing the Company and/or its subsidiary Holdings, to purchase up to a current aggregate of 30,000,000 of the Company's shares (recognizing that the number of shares authorized for repurchase has been reduced by those shares that have already been purchased) in open market transactions, privately negotiated transactions or both.
ITEM 3.
DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4.
MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5
.
OTHER INFORMATION
None.
59
ITEM 6.
EXHIBITS
| Exhibit Index: |
| Exhibit No. | Description |
| 31.1 | Section 302 Certification of Dominic J. Addesso |
| 31.2 | Section 302 Certification of Craig Howie |
| 32.1 | Section 906 Certification of Dominic J. Addesso and Craig Howie |
| 101.INS | XBRL Instance Document |
| 101.SCH | XBRL Taxonomy Extension Schema |
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase |
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase |
| 101.LAB | XBRL Taxonomy Extension Labels Linkbase |
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase |

60
Everest Re Group, Ltd.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Everest Re Group, Ltd. |
| (Registrant) |
| /S/ CRAIG HOWIE |
| Craig Howie |
| Executive Vice President and |
| Chief Financial Officer |
| (Duly Authorized Officer and Principal Financial Officer) |


Question: What is the percent change in the total outstanding amount of the Citibank Bilateral Letter of Credit Agreement from September 30, 2015 to December 31, 2014?

Python solution:
def solution():
    #Define variables name and value
    outstanding_september_2015 = 190541  # Dollars in thousands
    outstanding_december_2014 = 226073  # Dollars in thousands

    #Do math calculation to get the answer
    percent_change = ((outstanding_september_2015 - outstanding_december_2014) / outstanding_december_2014) * 100
    answer = round(percent_change, 2)
    return answer


Answer: -15.72