Segment Reporting

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Segment Reporting

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.

The following tables present the underwriting results for the operating segments for the periods indicated:

	Three Months Ended				Six Months Ended
U.S. Reinsurance	June 30,				June 30,
(Dollars in thousands)	2015		2014		2015		2014
Gross written premiums	$	421,810	$	437,475	$	927,357	$	933,116
Net written premiums		388,006		423,279		872,409		921,036
Premiums earned	$	480,848	$	489,129	$	991,942	$	918,770
Incurred losses and LAE		228,745		239,014		473,631		452,469
Commission and brokerage		120,171		122,766		242,955		215,734
Other underwriting expenses		11,807		11,454		23,336		20,936
Underwriting gain (loss)	$	120,125	$	115,895	$	252,020	$	229,631

	Three Months Ended				Six Months Ended
International	June 30,				June 30,
(Dollars in thousands)	2015		2014		2015		2014
Gross written premiums	$	292,775	$	454,017	$	611,220	$	775,259
Net written premiums		316,656		315,590		578,394		624,627
Premiums earned	$	338,263	$	319,998	$	643,832	$	638,379
Incurred losses and LAE		222,087		204,433		401,739		367,607
Commission and brokerage		84,813		71,599		155,427		142,573
Other underwriting expenses		8,049		8,088		16,164		15,925
Underwriting gain (loss)	$	23,314	$	35,878	$	70,502	$	112,274

	Three Months Ended				Six Months Ended
Bermuda	June 30,				June 30,
(Dollars in thousands)	2015		2014		2015		2014
Gross written premiums	$	162,536	$	185,036	$	338,330	$	368,451
Net written premiums		131,209		176,193		305,775		358,763
Premiums earned	$	198,297	$	191,259	$	394,001	$	364,945
Incurred losses and LAE		108,230		107,133		218,245		201,641
Commission and brokerage		47,243		46,839		98,376		92,547
Other underwriting expenses		8,788		8,159		17,588		16,445
Underwriting gain (loss)	$	34,036	$	29,128	$	59,792	$	54,312

	Three Months Ended					Six Months Ended
Insurance	June 30,					June 30,
(Dollars in thousands)	2015			2014		2015			2014
Gross written premiums	$	343,630		$	316,481	$	683,888		$	547,131
Net written premiums		299,848			280,073		603,429			491,741
Premiums earned	$	267,848		$	248,283	$	527,969		$	451,520
Incurred losses and LAE		219,123			175,033		399,724			317,224
Commission and brokerage		38,294			39,908		76,857			74,117
Other underwriting expenses		33,258			29,128		63,555			52,361
Underwriting gain (loss)	$	(22,827	)	$	4,214	$	(12,167	)	$	7,818

	Three Months Ended				Six Months Ended
Mt. Logan Re	June 30,				June 30,
(Dollars in thousands)	2015		2014		2015		2014
Gross written premiums	$	37,497	$	22,353	$	111,494	$	58,829
Net written premiums		32,777		22,352		92,378		48,909
Premiums earned	$	47,142	$	23,648	$	81,731	$	43,193
Incurred losses and LAE		12,476		10,084		19,787		16,165
Commission and brokerage		4,396		2,575		8,469		4,718
Other underwriting expenses		2,049		1,585		3,972		3,385
Underwriting gain (loss)	$	28,221	$	9,404	$	49,503	$	18,925

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						Six Months Ended
	June 30,						June 30,
(Dollars in thousands)	2015			2014			2015			2014
Underwriting gain (loss)	$	182,869		$	194,519		$	419,650		$	422,960
Net investment income		125,046			131,224			247,629			254,381
Net realized capital gains (losses)		(24,178	)		59,016			(34,683	)		80,142
Net derivative gain (loss)		6,445			3,774			6,203			2,113
Corporate expenses		(5,925	)		(3,899	)		(11,388	)		(8,844	)
Interest, fee and bond issue cost amortization expense		(9,026	)		(8,978	)		(18,016	)		(16,546	)
Other income (expense)		(3,925	)		(13,871	)		42,148			(17,167	)
Income (loss) before taxes	$	271,306		$	361,785		$	651,543		$	717,039

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				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2015		2014		2015		2014
United Kingdom	$	155,168	$	131,093	$	353,104	$	337,876

No other country represented more than 5% of the Company's revenues.