Everest Re's corporate offices are located in approximately 230,500 square feet of leased office space in Liberty Corner, New Jersey. Bermuda Re's corporate offices are located in approximately 5,800 total square feet of leased office space in Hamilton, Bermuda. The Company's other 24 locations occupy a total of approximately 194,600 square feet, all of which are leased. Management believes that the above-described office space is adequate for its current and anticipated needs.
Catastrophe losses are presented net of reinsurance and reinstatement premiums. Catastrophe insurance provides coverage for one event. When limits are exhausted, some contractual arrangements provide for the availability of additional coverage upon the payment of additional premium. This additional premium is referred to as reinstatement premium.
During 2015, we initiated a strategic build out of our insurance platform through the investment in key leadership hires which in turn has brought significant underwriting talent and stronger direction in achieving our insurance program strategic goals of increased premium volume and improved underwriting results. Recent growth is coming from highly diversified areas including newly launched lines of business, as well as, product and geographic expansion in existing lines of business. We are building a world-class insurance platform capable of offering products across lines and geographies, complementing our leading global reinsurance franchise. As part of this initiative, we received approval from Lloyd's of London to launch a new syndicate, which will provide us access to additional international business and new product opportunities to further diversify and broaden our insurance portfolio in 2016.
Premiums. Gross written premiums increased by 2.2% to $5,876.3 million in 2015, compared to $5,749.0 million in 2014, reflecting a $313.9 million, or 25.8%, increase in our insurance business and a $95.6 million, or 69.1%, increase from the Mt. Logan Re segment, partially offset by a $282.2 million, or 6.4%, decrease in our reinsurance business. The rise in insurance premiums was primarily due to increases in most lines of business, as we have focused on expanding the insurance operations. The increase in the Mt. Logan Re premiums is comparable to the increase in capital from non-voting redeemable preferred shares.
The decline in reinsurance premiums was due mainly to decreases in treaty casualty business, reductions in the quota share agreements and a negative impact of $136.0 million from the year over year movement in foreign exchange rates. Net written premiums increased by 2.3% to $5,378.3 million in 2015 compared to $5,256.9 million in 2014. The increase is consistent with the increase in gross written premiums. Premiums earned increased by 6.0% to $5,481.5 million in 2015, compared to $5,169.1 million in 2014. The change in premiums earned relative to net written premiums is the result of timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage period.
Gross written premiums increased by 10.2% to $5,749.0 million in 2014, compared to $5,218.6 million in 2013, reflecting a $462.5 million, or 11.8%, increase in our reinsurance business and a $118.2 million increase from the Mt. Logan Re segment, which commenced operations in the third quarter of 2013, partially offset by a $50.4 million, or 4.0%, decrease in our insurance business. The increase in reinsurance premiums was mainly due to new business: quota share contracts and contracts with catastrophe exposed risks, partially offset by a negative impact of $52.1 million from the movement in foreign exchange rates. The decrease in insurance premiums was primarily due to lower crop premiums, partially offset by an increase in non-standard auto business. Net written premiums increased by 5.0% to $5,256.9 million in 2014 compared to $5,004.8 million in 2013. The variance between the increase in gross written premiums compared to the increase in net written premiums is primarily due to a higher utilization of reinsurance related to the new quota share contracts. Premiums earned increased by 8.7% to $5,169.1 million in 2014, compared to $4,753.5 million in 2013. The change in premiums earned relative to net written premiums is the result of timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage period.
Net Investment Income. Net investment income decreased by 10.7% to $473.8 million in 2015 compared with investment income of $530.6 million in 2014. Net pre-tax investment income, as a percentage of average invested assets, was 2.8% in 2015 compared to 3.2% in 2014. The decline in income and yield was primarily the result of lower reinvestment rates for the fixed income portfolios and a decrease in our limited partnership income.
Net investment income decreased by 3.3% to $530.6 million in 2014 compared with net investment income of $548.5 million in 2013. Net pre-tax investment income, as a percentage of average invested assets, was 3.2% in 2014 compared to 3.5% in 2013. The decline in income and yield in 2014 compared to 2013 was primarily the result of lower reinvestment rates for the fixed income portfolios and a decrease in our limited partnership income.
Net Realized Capital Gains (Losses). Net realized capital losses were $184.1 million in 2015 and net realized capital gains were $84.0 million and $300.2 million in 2014 and 2013, respectively. The $184.1 million was comprised of $102.2 million of other-than-temporary impairments, $45.6 million of net losses from fair value re-measurements and $36.3 million of net realized capital losses from sales on our fixed maturity and equity securities. The net realized capital gains of $84.0 million in 2014 was comprised of $121.7 million of net gains from fair value re-measurements and $1.9 million of net realized capital gains from sales on our fixed maturity and equity securities, which were partially offset by $39.5 million of other-than-temporary impairments. The net realized capital gains of $300.2 million in 2013 were the result of $258.9 million of gains from fair value re-measurements and $42.4 million of net realized capital gains from sales on our fixed maturity and equity securities, which were partially offset by $1.1 million of other-than-temporary impairments.
Incurred losses and LAE increased by 6.7% to $3,101.9 million for the year ended December 31, 2015 compared to $2,906.5 million for the year ended December 31, 2014, primarily due to an increase in current year attritional losses of $214.8 million resulting primarily from the impact of the increase in premiums earned, a $60.0 million loss from the explosion at the Chinese port of Tianjin and numerous weather-related losses that did not meet our $10 million catastrophe threshold, partially offset by a decrease of $23.4 million of prior year attritional losses. The $35.5 million of favorable prior years' attritional loss development is comprised of $187.6 million of favorable development in the reinsurance segments and Mt. Logan, partially offset by $152.1 million of development in the insurance segment. The $187.6 million of favorable development related primarily to casualty and property treaty business and was net of $38.4 million of development in asbestos reserves. The development in the insurance segment largely related to umbrella business and construction liability on run-off programs non-renewed by the Company several years ago. Current year catastrophe losses were $99.3 million for the year ended December 31, 2015 and related to the 2015 Chilean earthquake ($40.0 million), Northern Chile storms ($20.0 million), New South Wales storms ($20 million) and 2015 US Storms ($19.3 million). The $90.0 million of current year catastrophe losses for the year ended December 31, 2014 related to the Japan snowstorm ($31.5 million), Hurricane Odile ($22.0 million), the 2014 Chilean earthquake ($21.5 million) and the Brisbane hailstorm ($15.0 million). The $33.0 million of favorable development on prior years' catastrophes related primarily to the 2013 German hail storms, European floods, Typhoon Fitow and U.S, storms.
Incurred losses and LAE increased by 3.8% to $2,906.5 million for the year ended December 31, 2014 compared to $2,800.3 million for the year ended December 31, 2013, primarily due to increases in current year attritional losses, partially offset by a reduction in current year catastrophe losses (outlined above). The increase in current year attritional losses of $232.9 million is primarily due to the impact of the increase in premiums earned. The $12.1 million of favorable prior years' development for 2014 is a combination of $174.7 million of favorable development in the reinsurance segments, related primarily to treaty casualty
and treaty property reserves, partially offset by $137.8 million of development on A&E reserves and $24.9 million of development on insurance reserves, primarily related to construction liability and umbrella business. The $195.0 million of current year catastrophe losses for the year ended December 31, 2013 related to Canadian floods ($79.7 million), U.S. storms ($44.8 million), Typhoon Fitow ($30.0 million), German hailstorms ($20.5 million) and European floods ($20.0 million).
Interest, Fees and Bond Issue Cost Amortization Expense. Interest, fees and other bond amortization expense was $36.2 million and $38.5 million in 2015 and 2014, respectively. The decrease was primarily due to the combination of the maturity of $250.0 million of senior notes in October 2014, and the issuance of $400.0 million of senior notes in June 2014.
Interest, fees and other bond amortization expense was $38.5 million and $46.1 million in 2014 and 2013, respectively. The decrease was primarily due to the redemption of $329.9 million of trust preferred securities in May 2013 and the maturity of $250.0 million of senior notes in October, 2014, partially offset by the impact of the issuance of $400.0 million of senior notes in June 2014.
Our net income was $1,074.5 million, $1,258.5 million and $1,265.3 million in 2015, 2014 and 2013, respectively. The changes were primarily driven by the financial component fluctuations explained above.
Shareholders' equity increased by $157.5 million to $7,608.6 million at December 31, 2015 from $7,451.1 million at December 31, 2014, principally as a result of $977.9 million of net income attributable to Everest Re Group, share-based compensation transactions of $34.8 million and $11.9 million of net benefit plan obligation adjustments, partially offset by repurchases of 2.3 million common shares for $400.1 million, $180.4 million of unrealized depreciation on investments, net of tax, $175.1 million of shareholder dividends and $111.5 million of net foreign currency translation adjustments.
Shareholders' equity increased by $482.8 million to $7,451.1 million at December 31, 2014 from $6,968.3 million at December 31, 2013, principally as a result of $1,199.2 million of net income attributable to Everest Re Group, share-based compensation transactions of $39.0 million and $22.1 million of unrealized appreciation on investments, net of tax, partially offset by repurchases of 3.2 million common shares for $500.0 million, $145.9 million of shareholder dividend, $95.4 million of net foreign currency translation adjustments and $36.1 million of net benefit plan obligation adjustments.
Net investment income decreased by 3.3% to $530.6 million in 2014 compared to $548.5 million in 2013, primarily due to a decline in income from our fixed maturities, reflective of lower reinvestment rates, and a decline in income from our limited partnership investments.
The following tables show a comparison of various investment yields for the periods indicated.
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.
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.
Premiums. Gross written premiums decreased by 3.7% to $1,963.5 million in 2015 from $2,039.6 million in 2014, primarily due to a decrease in treaty casualty business resulting from the cancellation of some contracts. Net written premiums decreased by 6.4% to $1,855.9 million in 2015 compared to $1,983.8 million in 2014. The difference between the change in gross written premiums compared to the change in net written premiums was due to a higher utilization of reinsurance. Premiums earned decreased 1.7% to $1,952.7 million in 2015 compared to $1,986.8 million in 2014. The change in premiums earned relative to net written premiums is primarily the result of timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage period.
Gross written premiums increased by 12.7% to $2,039.6 million in 2014 from $1,809.7 million in 2013, primarily due to new business opportunities, particularly for contracts with catastrophe exposed risks. Net written premiums increased by 9.8% to $1,983.8 million in 2014 compared to $1,807.1 million in 2013, which is in line with the increase in gross written premiums combined with a higher use of reinsurance for catastrophe exposures. Premiums earned increased 18.9% to $1,986.8 million in 2014 compared to $1,671.5 million in 2013. The change in premiums earned relative to net written premiums is primarily the result of timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage period.
Incurred losses increased by 17.2% to $954.5 million in 2014 compared to $814.7 million in 2013, primarily due to the increase in current year attritional losses of $151.5 million resulting primarily from the impact of the increase in premiums earned and less favorable development of $61.2 million on prior years' attritional losses in 2014 compared to 2013, mainly related to an increase in A&E reserves. This increase was partially offset by a decrease in current year catastrophe losses (outlined above) and favorable development of $33.5 million on prior year catastrophe losses in 2014 compared to 2013, mainly related to Superstorm Sandy. The $51.8 million of current year catastrophe losses in 2013 were mainly due to U.S. Storms ($44.8 million), the European floods ($5.0 million) and the Canadian Floods ($2.0 million).
Segment Expenses. Commission and brokerage expenses increased by 5.8% to $493.3 million in 2015 compared to $466.3 million in 2014. The variance was primarily due to the impact of changes in the mix of business. Segment other underwriting expenses increased to $50.1 million in 2015 from $45.6 million in 2014. The increase was primarily due to the impact of changes in the mix of business and higher employee benefit costs.
Commission and brokerage expenses increased by 27.1% to $466.3 million in 2014 compared to $366.9 million in 2013. The variance was due to the impact of the increase in premiums earned, change in the mix of business and higher contingent commissions. Segment other underwriting expenses decreased slightly to $45.6 million in 2014 from $47.2 million in 2013.
Segment Expenses. Commission and brokerage decreased by 2.6% to $298.2 million in 2015 compared to $306.2 million in 2014. The decrease was mainly due to the impact of the decrease in premiums earned and changes in the mix of business. Segment other underwriting expenses decreased slightly to $34.3 million in 2015 compared to $34.6 million in 2014.
Premiums. Gross written premiums increased by 10.7% to $852.5 million in 2015 compared to $770.2 million in 2014, primarily due to increased property and casualty writings through the Bermuda, Ireland and UK offices, partially offset by the negative impact of $44.1 million from the movement of foreign exchange rates. Net written premiums increased by 6.3% to $791.6 million in 2015 compared to $744.7 million in 2014. The difference between the change in gross written premiums compared to the change in net written premiums was due to a higher utilization of reinsurance. Premiums earned increased 14.9% to $822.4 million in 2015 compared to $715.7 million in 2014. The change in premiums earned relative to net written premiums is the result of timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage period.
Gross written premiums decreased by 0.5% to $770.2 million in 2014 compared to $774.3 million in 2013, primarily due to the non-renewal of a casualty quota share contract. Net written premiums decreased by 2.7% to $744.7 million in 2014 compared to $765.7 million in 2013. The variance of the change in gross written premiums compared to the change in net written premiums is due to a higher utilization of reinsurance including cessions to Mt. Logan. Premiums earned decreased 3.0% to $715.7 million in 2014 compared to $738.0 million in 2013. The change in premiums earned relative to net written premiums is the result of timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage period.
Segment Expenses. Commission and brokerage increased by 8.6% to $216.0 million in 2015 compared to $198.8 million in 2014. The rise was primarily due to the impact of the increase in premiums earned. Segment other underwriting expenses increased to $36.0 million in 2015 compared to $34.9 million in 2014. The increase was primarily due to the impact of the increases in premiums earned.
Gross written premiums decreased by 4.0% to $1,218.4 million in 2014 compared to $1,268.7 million in 2013. This decrease was primarily driven by a decline in crop business, partially offset by an increase in the non-standard auto business. Net written premiums decreased by 1.7% to $1,067.3 million in 2014 compared to $1,086.2 million in 2013. The variance of the change in gross written premiums compared to the change in net written premiums is due to a lesser utilization of reinsurance, particularly on the crop business. Premiums earned decreased 0.7% to $1,030.3 million in 2014 compared to $1,037.4 million in 2013. The change in premiums earned relative to net written premiums is the result of timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage period.
Segment Expenses. Commission and brokerage increased by 17.7% to $176.2 million in 2015 compared to $149.8 million in 2014. The increase was primarily driven by the impact of the increase in premiums earned and the change in the mix of business. Segment other underwriting expenses increased to $136.7 million in 2015 compared to $118.0 million in 2014. The increase was primarily due to the impact of the increase in premiums earned and increased focus on insurance operations resulting in increased operating expenses, including new hires.
Commission and brokerage increased by 12.0% to $149.8 million in 2014 compared to $133.7 million in 2013. The increase was primarily driven by the shift in the mix of premium away from crop business, which carries a lower commission rate than other insurance lines. Segment other underwriting expenses decreased slightly to $118.0 million in 2014 compared to $119.3 million in 2013.
Premiums. Gross written premiums increased by 69.1% to $234.0 million in 2015 compared to $138.4 million in 2014, as this segment expands from its start-up phase through continued third party investment. Net written premiums increased by 57.4% to $196.0 million in 2015 compared to $124.5 million in 2014, which is consistent with the change in gross written premiums. Premiums earned increased by 50.4% to $188.6 million in 2015 compared to $125.4 million in 2014. The change in premiums earned relative to net written premiums is the result of timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage period.
Gross written premiums increased to $138.4 million in 2014 compared to $20.2 million in 2013, as this segment continues to expand from its initial start-up in the third quarter of 2013. Net written premiums increased to $124.5 million in 2014 compared to $18.4 million in 2013, which is consistent with the change in gross written premiums. Premiums earned increased to $125.4 million in 2014 compared to $17.3 million in 2013. The change in premiums earned is comparable to the change in net written premiums.
Incurred losses and LAE increased by 21.6% to $37.2 million in 2015 compared to $30.6 million in 2014, mainly due to an increase of $6.0 million in current year catastrophe losses and the increase in current year attritional losses of $4.0 million, resulting primarily from the impact of the increase in premiums earned. The $12.1 million of current year catastrophe losses in 2015, were primarily due to the 2015 Chilean earthquake ($5.2 million), the New South Wales storms ($3.3 million), the 2015 US Storms ($3.1 million), and the Northern Chile storms ($0.5 million) The $6.1 million of current year catastrophe losses in 2014 were mainly due to the Japan snowstorm ($3.7 million), Hurricane Odile ($1.6 million) and the 2014 Chilean earthquake ($0.8 million).
Segment Expenses. Commission and brokerage increased by 27.4% to $18.4 million in 2015 compared to $14.4 million in 2014. The year over year increase was primarily due to the impact of the increase in premiums earned. Segment other underwriting expenses increased to $8.9 million in 2015 compared to $7.3 million in 2014. The increases were primarily due to the impact of the increase in premiums earned and increased operations.
Commission and brokerage increased to $14.4 million in 2014 compared to $2.0 million in 2013. The increase was primarily due to the impact of the increase in premiums earned. Segment other underwriting expenses increased to $7.3 million in 2014 compared to $2.1 million in 2013. The increase was primarily due to the impact of the increase in premiums earned and increased operations.
It is more difficult to accurately estimate loss reserves for reinsurance liabilities than for insurance liabilities. At December 31, 2015, we had reinsurance reserves of $7,383.0 million and insurance loss reserves of $2,568.8 million, of which $332.1 million and $101.0 million, respectively, were loss reserves for A&E liabilities. A detailed discussion of additional considerations related to A&E exposures follows later in this section.
Reinsurance Receivables. We have purchased reinsurance to reduce our exposure to adverse claim experience, large claims and catastrophic loss occurrences. Our ceded reinsurance provides for recovery from reinsurers of a portion of losses and loss expenses under certain circumstances. Such reinsurance does not relieve us of our obligation to our policyholders. In the event our reinsurers are unable to meet their obligations under these agreements or are able to successfully challenge losses ceded by us under the contracts, we will not be able to realize the full value of the reinsurance receivable balance. To minimize exposure from uncollectible reinsurance receivables, we have a reinsurance security committee that evaluates the financial strength of each reinsurer prior to our entering into a reinsurance arrangement. In some cases, we may hold full or partial collateral for the receivable, including letters of credit, trust assets and cash. Additionally, creditworthy foreign reinsurers of business written in the U.S., as well as capital markets' reinsurance mechanisms, are generally required to secure their obligations. We have established reserves for uncollectible balances based on our assessment of the collectability of the outstanding balances. As of December 31, 2015 and 2014, the reserve for uncollectible balances was $15.0 million and $21.6 million, respectively. Actual uncollectible amounts may vary, perhaps substantially, from such reserves, impacting income (loss) in the period in which the change in reserves is made. See also ITEM 8, "Financial Statements and Supplementary Data" - Note 13 of Notes to the Consolidated Financial Statements and "Financial Condition - Reinsurance Receivables" below.
Investment Valuation. Our fixed income investments are classified for accounting purposes as available for sale and are carried at market value or fair value in our consolidated balance sheets. Our equity securities are also held as available for sale and are carried at market or fair value. Most securities we own are traded on national exchanges where market values are readily available. Some of our commercial mortgage-backed securities ("CMBS") are valued using cash flow models and risk-adjusted discount rates. We hold some privately placed securities, less than 0.04% of the portfolio, that are either valued by brokers or an investment advisor or in limited circumstances when broker prices are not available for private placement, we will value the securities using comparable market information. At December 31, 2015 and 2014, our investment portfolio included $765.5 million and $575.8 million, respectively, of limited partnership investments whose values are reported pursuant to the equity method of accounting. We carry these investments at values provided by the managements of the limited partnerships and due to inherent reporting lags, the carrying values are based on values with "as of" dates from one month to one quarter prior to our financial statement date.
Cash and Invested Assets. Aggregate invested assets, including cash and short-term investments, were $17,672.2 million at December 31, 2015, an increase of $236.2 million compared to $17,435.9 million at December 31, 2014. This increase was primarily the result of $1,308.4 million of cash flows from operations, $266.8 million from external third party net capital investment into Mt. Logan Re, $30.0 million of subscription advances into Mt. Logan Re and $13.0 million in equity adjustments of our limited partnership investments, partially offset by $400.1 million paid for share repurchases, $235.2 million due to fluctuations in foreign currencies, $194.0 million of pre-tax unrealized depreciation, $175.1 million paid out in dividends to shareholders, $135.6 million in fair value re-measurements, $102.2 million of other-than-temporary impairments, $68.2 million paid out in dividends to third party investors in redeemable noncontrolling interests, $50.9 million of amortization bond premium and $22.7 million of unsettled securities.
Over the past several years, we have expanded the allocation of our investments funded by shareholders' equity to include: 1) a greater percentage of publicly traded equity securities, 2) emerging market fixed maturities through mutual fund structures, as well as individual holdings, 3) high yield fixed maturities, 4) bank loan securities and 5) private equity limited partnership investments. The objective of this portfolio diversification is to enhance the risk-adjusted total return of the investment portfolio by allocating a prudent portion of the portfolio to higher return asset classes, which are also less subject to changes in value with movements in interest rates. We limit our allocation to these asset classes because of 1) the potential for volatility in their values and 2) the impact of these investments on regulatory and rating agency capital adequacy models. We use investment managers experienced in these markets and adjust our allocation to these investments based upon market conditions. At December 31, 2015, the market value of investments in these investment market sectors, carried at both market and fair value, approximated 53% of shareholders' equity.
Reinsurance receivables for both paid and recoverable on unpaid losses totaled $840.4 million and $670.9 million at December 31, 2015 and 2014, respectively. At December 31, 2015, $194.2 million, or 23.1%, was receivable from Resolution Group; $104.8 million, or 12.5%, was receivable from C.V. Starr; $88.1 million, or 10.5%, was receivable from Zurich; $49.5 million, or 5.9%, was receivable from Axis; $46.6 million, or 5.5%, was receivable from Hannover and $44.0 million or 5.2% was receivable from Transatlantic. The receivables from Resolution Group and C.V. Starr are fully collateralized by individual trust agreements. No other retrocessionaire accounted for more than 5% of our receivables.
Changes in premiums earned and business mix, reserve re-estimations, catastrophe losses and changes in catastrophe loss reserves and claim settlement activity all impact loss and LAE reserves by segment and in total.
Depending on the specific segment, the range derived for the loss reserves, excluding reserves for A&E exposures, ranges from minus 9.0% to minus 21.1% for the low range and from plus 9.0% to plus 21.1% for the high range. Both the higher and lower ranges are associated with the Insurance segment. The size of the range is dependent upon the level of confidence associated with the outcome. Within each range, management's best estimate of loss reserves is based upon the point estimate derived by our actuaries in detailed reserve studies. Such ranges are necessarily subjective due to the lack of generally accepted actuarial standards with respect to their development. For the above presentation, we have assumed what we believe is a reasonable confidence level but note that there can be no assurance that our claim obligations will not vary outside of these ranges.
Industry analysts use the "survival ratio" to compare the A&E reserves among companies with such liabilities. The survival ratio is typically calculated by dividing a company's current net reserves by the three year average of annual paid losses. Hence, the survival ratio equals the number of years that it would take to exhaust the current reserves if future loss payments were to continue at historical levels. Using this measurement, our net three year asbestos survival ratio was 5.9 years at December 31, 2015. These metrics can be skewed by individual large settlements occurring in the prior three years and therefore, may not be indicative of the timing of future payments.
Shareholders' Equity. Our shareholders' equity increased to $7,608.6 million as of December 31, 2015 from $7,451.1 million as of December 31, 2014. This increase was the result of $977.9 million of net income attributable to Everest Re Group, share-based compensation transactions of $34.8 million and $11.9 million of net benefit plan obligation adjustments, partially offset by repurchases of 2.3 million common shares for $400.1 million, $180.4 million of unrealized depreciation on investments, net of tax, $175.1 million of shareholder dividends and $111.5 million of net foreign currency translation adjustments.
The regulatory targeted capital and the actual statutory capital for Bermuda Re and Everest Re were as follows:
(3) The 2015 BSCR calculation is not yet due to be completed; however, the Company anticipates that Bermuda Re's December 31, 2015 actual capital will exceed the targeted capital level.
During 2014, the Company issued $400.0 million of senior notes at an attractive interest rate during this low interest rate environment and used $250.0 million of the proceeds for maturing senior notes. The balance of the proceeds will be used for other operating purposes. The senior notes qualify as capital for the rating agency models.
On July 9, 2014, we renewed our shelf registration statement on Form S-3ASR with the Securities and Exchange Commission ("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.
As the timing of payments for claims and benefits cannot be predicted with certainty, we maintain portfolios of long term invested assets with varying maturities, along with short-term investments that provide additional liquidity for payment of claims. At December 31, 2015 and 2014, we held cash and short-term investments of $2,079.1 million and $2,143.4 million, respectively. All of our short-term investments are readily marketable and can be converted to cash. In addition to these cash and short-term investments, at December 31, 2015, we had $1,036.0 million of available for sale fixed maturity securities maturing within one year or less, $6,220.6 million maturing within one to five years and $3,045.7 million maturing after five years. Our $1,446.7 million of equity securities are comprised primarily of publicly traded securities that can be easily liquidated. We believe that these fixed maturity and equity securities, in conjunction with the short-term investments and positive cash flow from operations, provide ample sources of liquidity for the expected payment of losses in the near future. We do not anticipate selling securities or using available credit facilities to pay losses and LAE but have the ability to do so. Sales of securities might result in realized capital gains or losses. At December 31, 2015 we had $67.7 million of net pre-tax unrealized appreciation, comprised of $340.4 million of pre-tax unrealized appreciation and $272.7 million of pre-tax unrealized depreciation.
In addition to our cash flows from operations and liquid investments, we also have multiple credit facilities that provide up to $200.0 million of unsecured revolving credit for liquidity but more importantly provide for up to $600.0 million and £175.0 million of collateralized standby letters of credit to support business written by our Bermuda operating subsidiaries.
At December 31, 2015 and 2014, the Company had no outstanding short-term borrowings from the Group Credit Facility revolving credit line. The highest amount outstanding during the year ended December 31, 2015 was $150.0 million for the period of November 6, 2015 to December 7, 2015. There were no short term borrowings during 2014. At December 31, 2015, the Group Credit Facility had no outstanding letters of credit under tranche one and $449.7 million outstanding letters of credit under tranche two. At December 31, 2014, the Group Credit Facility had no outstanding letters of credit under tranche one and $444.0 million outstanding letters of credit under tranche two.
Effective November 9, 2015, Everest International entered into a four year, £175,000 thousand credit facility with Lloyd's of London Bank ("Everest International Credit Facility"). The Everest International Credit Facility provides up to £175,000 thousand for the issuance of standby letters of credit on a collateralized basis. The Company pays a commitment fee of 0.1% per annum on the average daily amount of the remainder of (1) the aggregate amount available under the facility and (2) the aggregate amount of drawings outstanding under the facility. The Company pays a credit commission fee of 0.35% per annum on drawings outstanding under the facility.
Costs incurred in connection with the Group Credit Facility, Everest International Credit Facility and Holdings Credit Facility were $0.8 million and $0.7 million for December 31, 2015 and 2014.
Projected catastrophe losses are generally summarized in terms of the PML. We define PML as our anticipated loss, taking into account contract terms and limits, caused by a single catastrophe affecting a broad contiguous geographic area, such as that caused by a hurricane or earthquake. The PML will vary depending upon the modeled simulated losses and the make-up of the in force book of business. The projected severity levels are described in terms of "return periods", such as "100-year events" and "250-year events". For example, a 100-year PML is the estimated loss to the current in-force portfolio from a single event which has a 1% probability of being exceeded in a twelve month period. In other words, it corresponds to a 99% probability that the loss from a single event will fall below the indicated PML. It is important to note that PMLs are estimates. Modeled events are hypothetical events produced by a stochastic model. As a result, there can be no assurance that any actual event will align with the modeled event or that actual losses from events similar to the modeled events will not vary materially from the modeled event PML.
Management estimates that the projected net economic loss from its largest 100-year event in a given zone represents approximately 13% of its projected 2016 shareholders' equity. Economic loss is the PML exposure, net of third party reinsurance and the noncontrolling interests of Mt. Logan Re, reduced by estimated reinstatement premiums to renew coverage and estimated income taxes. The impact of income taxes on the PML depends on the distribution of the losses by corporate entity, which is also affected by inter-affiliate reinsurance. Management also monitors and controls its largest PMLs at multiple points along the loss distribution curve, such as loss amounts at the 20, 50, 100, 250, 500 and 1,000 year return periods. This process enables management to identify and control exposure accumulations and to integrate such exposures into enterprise risk, underwriting and capital management decisions.
If such a single catastrophe loss were to occur, management estimates that the economic loss to us would be approximately $983.0 million. The estimate involves multiple variables, including which Everest entity would experience the loss, and as a result there can be no assurance that this amount would not be exceeded.
Disclosures about Short-Duration Contracts. In May 2015, the FASB issued ASU 2015-09, authoritative guidance regarding required disclosures associated with short duration insurance contracts. The new disclosure requirements focus on information about initial claim estimates and subsequent claim estimate adjustment, methodologies in estimating claims and the timing, frequency and severity of claims related to short duration insurance contracts. This guidance is effective for annual reporting periods beginning after December 15, 2015 and interim reporting periods beginning after December 15, 2016. The Company has chosen not to early adopt and will implement this guidance as of January 1, 2016. The Company is still evaluating the impact of the implementation of this guidance but does not anticipate that it will have a significant impact on its financial statements.
The tables below display the potential impact of market value fluctuations and after-tax unrealized appreciation on our fixed maturity portfolio (including $1,795.5 million of short-term investments) for the period indicated based on upward and downward parallel and immediate 100 and 200 basis point shifts in interest rates. For legal entities with a U.S. dollar functional currency, this modeling was performed on each security individually. To generate appropriate price estimates on mortgage-backed securities, changes in prepayment expectations under different interest rate environments were taken into account. For legal entities with a non-U.S. dollar functional currency, the effective duration of the involved portfolio of securities was used as a proxy for the market value change under the various interest rate change scenarios.
We had $9,951.8 million and $9,720.8 million of gross reserves for losses and LAE as of December 31, 2015 and 2014, respectively. These amounts are recorded at their nominal value, as opposed to present value, which would reflect a discount adjustment to reflect the time value of money. Since losses are paid out over a period of time, the present value of the reserves is less than the nominal value. As interest rates rise, the present value of the reserves decreases and, conversely, as interest rates decline, the present value increases. These movements are the opposite of the interest rate impacts on the fair value of investments. While the difference between present value and nominal value is not reflected in our financial statements, our financial results will include investment income over time from the investment portfolio until the claims are paid. Our loss and loss reserve obligations have an expected duration of approximately 4.0 years, which is reasonably consistent with our fixed income portfolio. If we were to discount our loss and LAE reserves, net of ceded reserves, the discount would be approximately $1.1 billion resulting in a discounted reserve balance of approximately $8.0 billion, representing approximately 53.1% of the value of the fixed maturity investment portfolio funds.
Foreign Currency Risk. Foreign currency risk is the potential change in value, income and cash flow arising from adverse changes in foreign currency exchange rates. Each of our non-U.S./Bermuda ("foreign") operations maintains capital in the currency of the country of its geographic location consistent with local regulatory guidelines. Each foreign operation may conduct business in its local currency, as well as the currency of other countries in which it operates. The primary foreign currency exposures for these foreign operations are the Canadian Dollar, the Singapore Dollar, the British Pound Sterling and the Euro. We mitigate foreign exchange exposure by generally matching the currency and duration of our assets to our corresponding operating liabilities. In accordance with FASB guidance, we translate the assets, liabilities and income of non-U.S. dollar functional currency legal entities to the U.S. dollar. This translation amount is reported as a component of other comprehensive income. As of December 31, 2015, there has been no material change in exposure to foreign exchange rates as compared to December 31, 2014.