# EDGAR Filing Document

**Accession Number:** 0001095073
**File Stem:** 0001095073-23-000005
**Filing Date:** 2023-2
**Character Count:** 31101
**Document Hash:** 5d85b75bc45b07afaeb0ad2cf8b8a5ca
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001095073-23-000005.hdr.sgml**: 20230208

**ACCESSION NUMBER**: 0001095073-23-000005

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20230208

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230208

**DATE AS OF CHANGE**: 20230208

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** EVEREST RE GROUP LTD
- **CENTRAL INDEX KEY:** 0001095073
- **STANDARD INDUSTRIAL CLASSIFICATION:** FIRE, MARINE & CASUALTY INSURANCE [6331]
- **IRS NUMBER:** 980365432
- **STATE OF INCORPORATION:** D0
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-15731
- **FILM NUMBER:** 23599347

**BUSINESS ADDRESS:**
- **STREET 1:** SEON PLACE, 4TH FLOOR
- **STREET 2:** 141 FRONT STREET
- **CITY:** HAMILTON
- **STATE:** D0
- **ZIP:** HM 19
- **BUSINESS PHONE:** 4412950006

**MAIL ADDRESS:**
- **STREET 1:** C/O REINSURANCE HOLDINGS INC
- **STREET 2:** 100 EVEREST WAY
- **CITY:** WARREN
- **STATE:** NJ
- **ZIP:** 07059

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** EVEREST REINSURANCE GROUP LTD
- **DATE OF NAME CHANGE:** 19990915

?xml version="1.0" encoding="UTF-8"? re-20230208

#### UNITED STATES

#### SECURITIES AND EXCHANGE COMMISSION

#### Washington, D.C. 20549

#### FORM

#### 8-K

#### Current Report Pursuant to Section 13 OR 15(d) of

#### The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)

February 8, 2023

#### Everest Re Group, Ltd.
(Exact name of registrant as specified in its charter)

Bermuda

1-15731

98-0365432

(State or other jurisdiction

(Commission

(IRS Employer

of incorporation)

File Number)

Identification No.)

Seon Place – 4th Floor

141 Front Street

PO Box HM 845

Hamilton

HM 19

,

Bermuda

Not Applicable

(Address of principal executive offices)

(Zip Code)

Registrant's telephone number, including area code

-

295-0006

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the

registrant under any of the following provisions (see General Instruction A.2. below):

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Class

Trading Symbol(s)

Name of Exchange where registered

#### Common Shares, $0.01 par value

#### RE

#### New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of

1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period

for complying with any new or revised financial accounting standards provided pursuant to Section 12(a) of the Exchange

Act.

☐

#### ITEM 2.02

#### DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On February 8, 2023, the registrant issued a news release announcing its fourth quarter 2022 results. A copy of

that news release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

The news release furnished herewith contains information regarding the registrant's operating income (loss).

Operating income (loss) differs from net income (loss) attributable to Everest Re Group, the most directly

comparable generally accepted accounting principle financial measure, by the exclusion of net gains (losses) on

investments and net foreign exchange income (expense). Management believes that presentation of operating

income (loss) provides useful information to investors because it more accurately measures and predicts the

registrant's results of operations by removing the variability arising from both the management of the registrant's

investment portfolio and the fluctuations of foreign currency exchange rates. In addition, management, analysts

and investors use operating income (loss) to evaluate the financial performance of the registrant and the insurance

industry in general.

In accordance with general instruction B.2 of Form 8-K, the information in this report, including exhibits, is

furnished pursuant to Item 2.02 and shall not be deemed "filed" for the purposes of Section 18 of the Securities

Exchange Act of 1934, or otherwise subject to the liability of that section.

#### ITEM 9.01

#### FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits

Exhibit No.

Description

99.1 News Release of the registrant,

dated February 8, 2023

#### 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 hereunto duly authorized.

EVEREST RE GROUP, LTD.

By:

/S/ ROBERT J. FREILING

Robert J. Freiling

Senior Vice President and

Chief Accounting Officer

Dated: February 8, 2023

#### EXHIBIT INDEX

#### Exhibit

#### Number

#### Description of Document

#### Page No.
[99.1](ex991.htm)

[News Release of registrant,](ex991.htm)

[dated February 8, 2023](ex991.htm)

Cover Page Interactive Data File (embedded

within the Inline XBRL document

## Exhibit 99.1

# NEWS RELEASE

EVEREST RE GROUP, LTD.

Seon place, 141 Front Street, 4th Floor, Hamilton HM 19, Bermuda

# Contacts

Media: Dawn Lauer
Chief Communications Officer
Everest Global Services, Inc.
908.300.7670

Investors: Matt Rohrmann
Head of Investor Relations
Everest Global Services, Inc.
908.604.7343

## Everest Re Group Reports Fourth Quarter 2022 Results

**Fourth Quarter ROE of 20.1%, Operating ROE of 19.4%**
**Underwriting Discipline Drove Strong Combined Ratio of 87.8%**
**with Margin Improvement in both Segments**
**Significant Momentum Following Outstanding 1/1 Renewals**

**HAMILTON, Bermuda - (BUSINESS WIRE) - February 8, 2023** - Everest Re Group, Ltd. (“Everest” or the “Group”) today reported its fourth quarter 2022 results.

# Fourth Quarter 2022 Highlights

- Net Operating Income of $478 million, and Net Income of $496 million driven by continued underwriting margin improvement. YTD 2022 Net Operating Income of $1.1 billion, Net Income of $597 million
- $3.6 billion in gross written premium (“GWP”) with year over year growth of 9% in constant dollars for the Group, 21% in constant dollars for Insurance, and 3.7% in constant dollars and excluding reinstatements for Reinsurance
- Combined ratios of 87.8% for the Group, 86.4% for Reinsurance and 91.4% for Insurance
- Strong attritional combined ratios of 87.3% for the Group, 86.0% for Reinsurance and 90.8% for Insurance
- Pre-tax underwriting income of $368 million including $15 million of pre-tax catastrophe losses net of estimated recoveries and reinstatement premiums. The catastrophe losses were from Winter Storm Elliott
- Net investment income of $210 million, driven by stronger fixed income returns as new money yields continue to improve

1

“Everest’s fourth quarter results capped a strong year of consistent execution and positive momentum for the company,” said Juan C. Andrade, Everest President and CEO.

“We grew both underwriting franchises with improved margins, significantly reduced volatility and generated solid returns despite ongoing market uncertainty and another elevated catastrophe year. This led to over $1 billion in operating income, and a double-digit operating return on equity for both the quarter and the full year. We had a successful January 1 reinsurance renewal executing a precise and well-orchestrated strategy. We leveraged Everest’s global leadership position to capitalize on the robust property market and the flight to quality was evident across virtually all lines and geographies. We drove improved pricing, terms and conditions and deepened relationships with new and existing core clients throughout the world, which significantly improved risk adjusted returns across the entire portfolio. We are well positioned with the talent and the platform to continue this momentum in 2023.”

#### Summary of Fourth Quarter 2022 Net Income and Other Items

- Net Income of $496 million, equal to $12.66 per diluted share versus fourth quarter 2021 net income of $431 million, equal to $10.94 per diluted share
- Net operating income of $478 million, equal to $12.21 per diluted share versus fourth quarter 2021 net operating income of $359 million, equal to $9.12 per diluted share
- GAAP combined ratio of 87.8% including 0.5 points of catastrophe losses versus the fourth quarter 2021 figures of 91.9% including 4.5 points of catastrophe losses
- Strong operating cashflow for the quarter of $1.0 billion which is flat versus the fourth quarter 2021

The following table summarizes the Company’s net income and related financial metrics.

| Net income and operating income | Q4 2022 | Year to Date 2022 | Q4 2021 | Year to Date 2021 |
| --- | --- | --- | --- | --- |
| All values in USD millions except for per share amounts and percentages |  |  |  |  |
| Everest Re Group |  |  |  |  |
| Net income (loss) | 496 | 597 | 431 | 1,379 |
| Net operating income (loss) (1) | 478 | 1,065 | 359 | 1,153 |
| Net income (loss) per diluted common share | 12.66 | 15.19 | 10.94 | 34.62 |
| Net operating income (loss) per diluted common share | 12.21 | 27.08 | 9.12 | 28.97 |
| Net income (loss) return on average equity (annualized) | 20.1% | 6.0% | 17.7% | 14.6% |
| After-tax operating income (loss) return on average equity (annualized) | 19.4% | 10.6% | 14.8% | 12.2% |

Notes

(1) Refer to the reconciliation of net income to net operating income found on page 6 of this press release

2

| Shareholders' Equity and Book Value per Share | Q4 2022 | Year to Date 2022 | Q4 2021 | Year to Date 2021 |
| --- | --- | --- | --- | --- |
| All values in USD millions except for per share amounts and percentages |  |  |  |  |
| Beginning shareholders' equity | 7,649 | 10,139 | 9,979 | 9,726 |
| Net income (loss) | 496 | 597 | 431 | 1,379 |
| Change - unrealized gains (losses) - Fixed inc. investments | 250 | (1,948) | (177) | (485) |
| Dividends to shareholders | (65) | (255) | (61) | (247) |
| Purchase of treasury shares | - | (61) | (25) | (225) |
| Other | 110 | (31) | (7) | (10) |
| Ending shareholders' equity | 8,441 | 8,441 | 10,139 | 10,139 |
| Common shares outstanding |  | 39.2 |  | 39.3 |
| Book value per common share outstanding |  | 215.54 |  | 258.21 |
| Less: Unrealized appreciation/depreciation of fixed maturity investments ("URAD") |  | (43.64) |  | 6.09 |
| Adjusted book value per common share outstanding excluding URAD |  | 259.18 |  | 252.12 |
| Total Shareholder Return ("TSR") - Annualized |  | 5.4% |  | 14.7% |
| Common share dividends paid - last 12 months |  | 6.50 |  | 6.20 |

The following information summarizes the Company's underwriting results, on a consolidated basis and by segment - Reinsurance and Insurance, with selected commentary on results by segment.

| Underwriting information - Everest Re Group | Q4 2022 | Year to Date 2022 | Q4 2021 | Year to Date 2021 | Year on Year Change Q4 | Year to Date |
| --- | --- | --- | --- | --- | --- | --- |
| All values in USD millions except for percentages |  |  |  |  |  |  |
| Gross written premium | 3,639 | 13,952 | 3,431 | 13,050 | 6.1% | 6.9% |
| Net written premium | 3,188 | 12,344 | 3,056 | 11,446 | 4.3% | 7.9% |
| Loss ratio | 60.1% | 68.7% | 64.9% | 71.0% | (4.8) pts | (2.3) pts |
| Commission and brokerage ratio | 21.6% | 21.4% | 21.3% | 21.2% | 0.3 pts | 0.2 pts |
| Other underwriting expenses | 6.0% | 5.8% | 5.7% | 5.6% | 0.3 pts | 0.2 pts |
| Combined ratio | 87.8% | 96.0% | 91.9% | 97.8% | (4.1) pts | (1.8) pts |
| Attritional combined ratio (1) | 87.3% | 87.4% | 87.4% | 87.6% | (0.1) pts | (0.2) pts |
| Pre-tax net catastrophe losses (2) | 15 | 945 | 125 | 1,065 |  |  |
| Pre-tax net Russia/Ukraine losses | - | 45 | - | - |  |  |
| Pre-tax net prior year reserve development | - | (1) | (3) | (9) |  |  |

Notes

(1) Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned, prior year development, COVID-19 losses, CECL and losses from the Russia/Ukraine war

(2) Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums

### Reinsurance Segment - Quarterly Highlights

- Gross written premiums of $2.38 billion for the quarter versus $2.37 billion a year ago. On a constant dollar basis, growth was 3.7% in the quarter. Casualty and Financial Lines grew by 3.9%, driven by growth with our core casualty clients and taking advantage of increased mortgage opportunities. This growth was largely offset by a combination of targeted reductions in our property portfolio and foreign exchange movements
- Pre-tax catastrophe losses of $10 million net of estimated recoveries and reinstatement premiums, compared with $110 million a year ago

3

- Improved profitability of the portfolio driven by targeted underwriting actions, resulting in a 150-basis point improvement in the attritional loss ratio for the quarter vs. the prior year (58.2% vs. 59.7%) and an attritional combined ratio of 86.0% vs 86.4% a year ago
- Continued expense discipline with a 2.8% expense ratio
- Execution for the January 1 renewals was precise and well-orchestrated achieving an excellent outcome

| Underwriting information - Reinsurance segment | Q4 | Year to Date | Q4 | Year to Date | Year on Year | Change |
| --- | --- | --- | --- | --- | --- | --- |
| All values in USD millions except for percentages | 2022 | 2022 | 2021 | 2021 | Q4 | Year to Date |
| Gross written premium | 2,378 | 9,316 | 2,372 | 9,067 | 0.3% | 2.7% |
| Net written premium | 2,320 | 8,983 | 2,270 | 8,536 | 2.2% | 5.2% |
| Loss ratio | 58.7% | 69.2% | 64.8% | 71.6% | (6.1) pts | (2.4) pts |
| Commission and brokerage ratio | 25.0% | 24.6% | 24.1% | 23.9% | 0.9 pts | 0.7 pts |
| Other underwriting expenses | 2.8% | 2.5% | 2.6% | 2.6% | 0.2 pts | (0.1) pts |
| Combined ratio | 86.4% | 96.4% | 91.5% | 98.1% | (5.1) pts | (1.7) pts |
| Attritional combined ratio (1) | 86.0% | 86.2% | 86.4% | 86.3% | (0.4) pts | (0.1) pts |
| Pre-tax net catastrophe losses (2) | 10 | 820 | 110 | 913 |  |  |
| Pre-tax net Russia/Ukraine losses | - | 45 | - | - |  |  |
| Pre-tax net prior year reserve development | - | (2) | (3) | (8) |  |  |

Notes

(1) Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned, prior year development, COVID-19 losses, CECL and losses from the Russia/Ukraine war

(2) Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums

## Insurance Segment - Quarterly Highlights

- Gross written premiums of $1.3 billion, a 21% increase year over year in constant dollars (19% increase as reported), driven by balanced and diversified growth across most lines of business and geographies
- Strong profitability with combined ratio of 91.4% and an attritional combined ratio of 90.8%
- Continued robust expense management with a total expense ratio of 27.4% versus 27.8% a year ago
- Rate and exposure trends remain favorable

| Underwriting information - Insurance segment | Q4 | Year to Date | Q4 | Year to Date | Year on Year | Change |
| --- | --- | --- | --- | --- | --- | --- |
| All values in USD millions except for percentages | 2022 | 2022 | 2021 | 2021 | Q4 | Year to Date |
| Gross written premium | 1,260 | 4,636 | 1,059 | 3,982 | 19.0% | 16.4% |
| Net written premium | 869 | 3,361 | 787 | 2,910 | 10.5% | 15.5% |
| Loss ratio | 64.0% | 67.3% | 65.1% | 69.3% | (1.1) pts | (2.0) pts |
| Commission and brokerage ratio | 12.4% | 12.6% | 13.4% | 13.4% | (1.0) pts | (0.8) pts |
| Other underwriting expenses | 15.0% | 14.8% | 14.4% | 14.5% | 0.6 pts | 0.3 pts |
| Combined ratio | 91.4% | 94.8% | 92.8% | 97.1% | (1.4) pts | (2.3) pts |
| Attritional combined ratio (1) | 90.8% | 90.4% | 90.4% | 91.2% | 0.4 pts | (0.8) pts |
| Pre-tax net catastrophe losses (2) | 5 | 125 | 15 | 153 |  |  |
| Pre-tax net Russia/Ukraine losses | - | - | - | - |  |  |
| Pre-tax net prior year reserve development | - | 1 | - | (1) |  |  |

Notes

(1) Attritional combined ratio excludes catastrophe losses, reinstatement premiums, prior year development, Covid-19 losses, CECL, and losses from the Russian/Ukraine war

(2) Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums

4

### **Investments and Shareholders' Equity as of December 31, 2022**

- Total invested assets and cash of $29.9 billion versus the year end 2021 value of $29.7 billion
- Shareholders' equity of $8.4 billion vs. $10.1 billion at year end 2021, largely driven by $1.7 billion of unrealized net losses on fixed maturity investments
- Shareholders' equity excluding unrealized gains (losses) on fixed maturity investments of $10.1 billion vs. $9.9 billion at year end 2021
- Book value per diluted share of $215.54 vs. $258.21 at year end 2021
- Book value per diluted share excluding unrealized gains (losses) on fixed maturity investments of $259.18 vs. $252.12 at year end 2021
- Common share dividends declared and paid in the quarter of $1.65 per share equal to $65 million

*This news release contains forward-looking statements within the meaning of the U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. Federal securities laws. These statements involve risks and uncertainties that could cause actual results to differ materially from those contained in forward-looking statements made on behalf of the Company. These risks and uncertainties include the impact of general economic conditions and conditions affecting the insurance and reinsurance industry, the adequacy of our reserves, our ability to assess underwriting risk, trends in rates for property and casualty insurance and reinsurance, competition, investment market and investment income fluctuations, trends in insured and paid losses, catastrophes, pandemic, regulatory and legal uncertainties and other factors described in our latest Annual Report on Form 10-K. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.*

### **About Everest**

Everest is a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions that address customers' most pressing challenges. Known for a 50-year track record of disciplined underwriting, capital and risk management, Everest, through its global operating affiliates, is committed to underwriting opportunity for colleagues, customers, shareholders, and communities worldwide.

Everest common stock (NYSE: RE) is a component of the S&P 500 index.

Additional information about Everest, our people, and our products can be found on our website at www.everestre.com.

A conference call discussing the results will be held at 8:00 a.m. Eastern Time on February 9, 2023. The call will be available on the Internet through the Company's web site at everestre.com/investors.

Recipients are encouraged to visit the Company's web site to view supplemental financial information on the Company's results. The supplemental information is located at

5

www.everestre.com in the “Investors/Financials/Quarterly Results” section of the website. The supplemental financial information may also be obtained by contacting the Company directly.

The Company generally uses after-tax operating income (loss), a non-GAAP financial measure, to evaluate its performance. After-tax operating income (loss) consists of net income (loss) excluding after-tax net gains (losses) on investments and after-tax net foreign exchange income (expense) as the following reconciliation displays:

| (Dollars in millions, except per share amounts) | Three Months Ended December 31, |  |  |  | Twelve Months Ended December 31, |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | 2022 |  | 2021 |  | 2022 |  | 2021 |  |
|  | (unaudited) |  |  |  | (unaudited) |  |  |  |
|  | Amount | Per Diluted Share | Amount | Per Diluted Share | Amount | Per Diluted Share | Amount | Per Diluted Share |
| After-tax operating income (loss) | $478 | $12.21 | $359 | $9.12 | $1,065 | $27.08 | $1,153 | $28.97 |
| After-tax net gains (losses) on investments | $49 | $1.25 | $90 | $2.29 | $(366) | $(9.30) | $202 | $5.06 |
| After-tax net foreign exchange income (expense) | $(31) | $(0.80) | $(19) | $(0.48) | $(102) | $(2.60) | $24 | $0.60 |
| Net income (loss) | $496 | $12.66 | $431 | $10.94 | $597 | $15.19 | $1,379 | $34.62 |

(Some amounts may not reconcile due to rounding.)

Although net gains (losses) on investments and net foreign exchange income (expense) are an integral part of the Company's insurance operations, the determination of net gains (losses) on investments and foreign exchange income (expense) is independent of the insurance underwriting process. The Company believes that the level of net gains (losses) on investments and net foreign exchange income (expense) for any particular period is not indicative of the performance of the underlying business in that particular period. Providing only a GAAP presentation of net income (loss) makes it more difficult for users of the financial information to evaluate the Company's success or failure in its basic business and may lead to incorrect or misleading assumptions and conclusions. The Company understands that the equity analysts who follow the Company focus on after-tax operating income (loss) in their analyses for the reasons discussed above. The Company provides after-tax operating income (loss) to investors so that they have what management believes to be a useful supplement to GAAP information concerning the Company's performance.

--Financial Details Follow--

6

# EVEREST RE GROUP, LTD.  
 CONSOLIDATED STATEMENTS OF OPERATIONS  
 AND COMPREHENSIVE INCOME (LOSS)

|  | Three Months Ended December 31, |  | Twelve Months Ended December 31, |  |
| --- | --- | --- | --- | --- |
| (Dollars in millions, except per share amounts) | 2022 | 2021 | 2022 | 2021 |
|  | (unaudited) |  | (unaudited) |  |
| REVENUES: |  |  |  |  |
| Premiums earned | $3,012 | $2,804 | $11,787 | $10,406 |
| Net investment income | 210 | 205 | 830 | 1,165 |
| Net gains (losses) on investments: |  |  |  |  |
| Credit allowances on fixed maturity securities | (15) | 2 | (33) | (28) |
| Gains (losses) from fair value adjustments | 2 | 108 | (460) | 236 |
| Net realized gains (losses) from dispositions | 77 | 9 | 38 | 50 |
| Total net gains (losses) on investments | 64 | 119 | (455) | 258 |
| Other income (expense) | (30) | (7) | (102) | 37 |
| Total revenues | 3,256 | 3,121 | 12,060 | 11,866 |
| CLAIMS AND EXPENSES: |  |  |  |  |
| Incurred losses and loss adjustment expenses | 1,811 | 1,819 | 8,100 | 7,391 |
| Commission, brokerage, taxes and fees | 651 | 598 | 2,528 | 2,209 |
| Other underwriting expenses | 182 | 158 | 682 | 583 |
| Corporate expenses | 16 | 21 | 61 | 68 |
| Interest, fees and bond issue cost amortization expense | 27 | 23 | 101 | 70 |
| Total claims and expenses | 2,687 | 2,620 | 11,472 | 10,321 |
| INCOME (LOSS) BEFORE TAXES | 568 | 500 | 588 | 1,546 |
| Income tax expense (benefit) | 72 | 69 | (9) | 167 |
| NET INCOME (LOSS) | $496 | $431 | $597 | $1,379 |
| Other comprehensive income (loss), net of tax: |  |  |  |  |
| Unrealized appreciation (depreciation) ('URA(D)') on securities arising during the period | 223 | (184) | (2,037) | (488) |
| Reclassification adjustment for realized losses (gains) included in net income (loss) | 28 | 7 | 89 | 4 |
| Total URA(D) on securities arising during the period | 251 | (177) | (1,948) | (485) |
| Foreign currency translation adjustments | 86 | (33) | (77) | (62) |
| Benefit plan actuarial net gain (loss) for the period | 15 | 17 | 15 | 17 |
| Reclassification adjustment for amortization of net (gain) loss included in net income (loss) | - | 1 | 2 | 6 |
| Total benefit plan net gain (loss) for the period | 15 | 18 | 17 | 23 |
| Total other comprehensive income (loss), net of tax | 352 | (192) | (2,008) | (523) |
| COMPREHENSIVE INCOME (LOSS) | $848 | $238 | $(1,411) | $856 |
| EARNINGS PER COMMON SHARE: |  |  |  |  |
| Basic | $12.66 | $10.95 | $15.19 | $34.66 |
| Diluted | 12.66 | 10.94 | 15.19 | 34.62 |

7

# **EVEREST RE GROUP, LTD.**  
 **CONSOLIDATED BALANCE SHEETS**

(Dollars and share amounts in millions, except par value per share)

|  | December 31, |  |
| --- | --- | --- |
|  | 2022 | 2021 |
|  | (unaudited) |  |
| ASSETS: |  |  |
| Fixed maturities - available for sale, at fair value | $22,236 | $22,308 |
| (amortized cost: 2022, $24,191; 2021, $22,064, credit allowances: 2022, ($54); 2021, ($30)) |  |  |
| Fixed maturities - held to maturity, at amortized cost |  |  |
| (fair value: 2022, $821, credit allowances: 2022, ($9)) | 839 | - |
| Equity securities, at fair value | 281 | 1,826 |
| Other invested assets | 4,085 | 2,920 |
| Short-term investments (cost: 2022, $1,032; 2021, $1,178) | 1,032 | 1,178 |
| Cash | 1,398 | 1,441 |
| Total investments and cash | 29,872 | 29,673 |
| Accrued investment income | 217 | 149 |
| Premiums receivable (credit allowances: 2022, ($29); 2021, ($26)) | 3,619 | 3,294 |
| Reinsurance paid loss recoverables (credit allowances: 2022, ($23); 2021, ($17)) | 136 | 107 |
| Reinsurance unpaid loss recoverables | 2,105 | 1,946 |
| Funds held by reinsureds | 1,056 | 869 |
| Deferred acquisition costs | 962 | 872 |
| Prepaid reinsurance premiums | 610 | 515 |
| Income tax asset, net | 459 | 2 |
| Other assets (credit allowances: 2022, ($5); 2021, ($4)) | 930 | 757 |
| TOTAL ASSETS | $39,966 | $38,185 |
| LIABILITIES: |  |  |
| Reserve for losses and loss adjustment expenses | 22,065 | 19,009 |
| Future policy benefit reserve | 29 | 36 |
| Unearned premium reserve | 5,147 | 4,610 |
| Funds held under reinsurance treaties | 13 | 18 |
| Other net payable to reinsurers | 567 | 450 |
| Losses in course of payment | 74 | 261 |
| Senior notes | 2,347 | 2,346 |
| Long term notes | 218 | 224 |
| Borrowings from FHLB | 519 | 519 |
| Accrued interest on debt and borrowings | 19 | 17 |
| Unsettled securities payable | 1 | 17 |
| Other liabilities | 526 | 540 |
| Total liabilities | 31,525 | 28,046 |
| SHAREHOLDERS' EQUITY: |  |  |
| Preferred shares, par value: $0.01; 50.0 shares authorized; |  |  |
| no shares issued and outstanding | - | - |
| Common shares, par value: $0.01; 200.0 shares authorized; (2022) 69.9 |  |  |
| and (2021) 69.8 outstanding before treasury shares | 1 | 1 |
| Additional paid-in capital | 2,302 | 2,274 |
| Accumulated other comprehensive income (loss), net of deferred income tax expense |  |  |
| (benefit) of ($250) at 2022 and $27 at 2021 | (1,996) | 12 |
| Treasury shares, at cost: 30.8 (2022) and 30.5 shares (2021) | (3,908) | (3,847) |
| Retained earnings | 12,042 | 11,700 |
| Total shareholders' equity | 8,441 | 10,139 |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $39,966 | $38,185 |

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# EVEREST RE GROUP, LTD.  
 CONSOLIDATED STATEMENTS OF CASH FLOWS

|  | Twelve Months Ended December 31, |  |
| --- | --- | --- |
|  | 2022 | 2021 |
| (Dollars in millions) | (unaudited) |  |
| CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |
| Net income (loss) | $597 | $1,379 |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| Decrease (increase) in premiums receivable | (435) | (649) |
| Decrease (increase) in funds held by reinsurers, net | (197) | (151) |
| Decrease (increase) in reinsurance recoverables | (413) | (125) |
| Decrease (increase) in income taxes | (181) | 68 |
| Decrease (increase) in prepaid reinsurance premiums | (166) | (128) |
| Increase (decrease) in reserve for losses and loss adjustment expenses | 3,477 | 2,805 |
| Increase (decrease) in future policy benefit reserve | (7) | (2) |
| Increase (decrease) in unearned premiums | 655 | 1,146 |
| Increase (decrease) in other net payable to reinsurers | 201 | 186 |
| Increase (decrease) in losses in course of payment | (186) | 134 |
| Change in equity adjustments in limited partnerships | (94) | (613) |
| Distribution of limited partnership income | 180 | 211 |
| Change in other assets and liabilities, net | (291) | (290) |
| Non-cash compensation expense | 45 | 43 |
| Amortization of bond premium (accrual of bond discount) | 55 | 76 |
| Net (gains) losses on investments | 455 | (258) |
| Net cash provided by (used in) operating activities | 3,695 | 3,833 |
| CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |
| Proceeds from fixed maturities matured/called/repaid - available for sale | 2,626 | 3,893 |
| Proceeds from fixed maturities sold - available for sale | 1,403 | 1,916 |
| Proceeds from fixed maturities matured/called/repaid - held to maturity | 39 | - |
| Proceeds from equity securities sold | 2,217 | 990 |
| Distributions from other invested assets | 266 | 257 |
| Cost of fixed maturities acquired - available for sale | (7,344) | (8,825) |
| Cost of fixed maturities acquired - held to maturity | (153) | - |
| Cost of equity securities acquired | (1,003) | (1,098) |
| Cost of other invested assets acquired | (1,547) | (757) |
| Net change in short-term investments | 149 | (43) |
| Net change in unsettled securities transactions | (71) | (203) |
| Net cash provided by (used in) investing activities | (3,418) | (3,869) |
| CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |
| Common shares issued (redeemed) during the period for share-based compensation, net of expense | (17) | (14) |
| Purchase of treasury shares | (61) | (225) |
| Dividends paid to shareholders | (255) | (247) |
| Proceeds from issuance of senior notes | - | 968 |
| Cost of debt repurchase | (6) | - |
| Net FHLB borrowings (repayments) | - | 209 |
| Cost of shares withheld on settlements of share-based compensation awards | (20) | (17) |
| Net cash provided by (used in) financing activities | (359) | 674 |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH |  |  |
|  | 39 | 1 |
| Net increase (decrease) in cash | (42) | 639 |
| Cash, beginning of period | 1,441 | 802 |
| Cash, end of period | $1,398 | $1,441 |
| SUPPLEMENTAL CASH FLOW INFORMATION: |  |  |
| Income taxes paid (recovered) | $171 | $98 |
| Interest paid | 98 | 62 |
| NON-CASH TRANSACTIONS: |  |  |
| Reclassification of specific investments from fixed maturity securities, available for sale at fair value to fixed maturity securities, held to maturity at amortized cost net of credit allowances | $722 | $- |

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