EVEREST RE GROUP LTD – 10-Q – MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

Industry Conditions.

The worldwide reinsurance and insurance businesses are highly competitive, as
well as cyclical by product and market. As such, financial results tend to
fluctuate with periods of constrained availability, higher rates and stronger
profits followed by periods of abundant capacity, lower rates and constrained
profitability. Competition in the types of reinsurance and insurance business
that we underwrite is based on many factors, including the perceived overall
financial strength of the reinsurer or insurer, ratings of the reinsurer or
insurer by A.M. Best and/or Standard & Poor's, underwriting expertise, the
jurisdictions where the reinsurer or insurer is licensed or otherwise
authorized, capacity and coverages offered, premiums charged, other terms and
conditions of the reinsurance and insurance business offered, services offered,
speed of claims payment and reputation and experience in lines written.
Furthermore, the market impact from these competitive factors related to
reinsurance and insurance is generally not consistent across lines of business,
domestic and international geographical areas and distribution channels.



We compete in the U.S., Bermuda and international reinsurance and insurance
markets with numerous global competitors. Our competitors include independent
reinsurance and insurance companies, subsidiaries or affiliates of established
worldwide insurance companies, reinsurance departments of certain insurance
companies, domestic and international underwriting operations, including
underwriting syndicates at Lloyd's of London and certain government sponsored
risk transfer vehicles. Some of these competitors have greater financial
resources than we do and have established long term and continuing business
relationships, which can be a significant competitive advantage. In addition,
the lack of strong barriers to entry into the reinsurance business and recently,
the securitization of reinsurance and insurance risks through capital markets
provide additional sources of potential reinsurance and insurance capacity and
competition.



Worldwide insurance and reinsurance market conditions historically have been
competitive. Generally, there was ample insurance and reinsurance capacity
relative to demand, as well as additional capital from the capital markets
through insurance linked financial instruments. These financial instruments such
as side cars, catastrophe bonds and collateralized reinsurance funds, provided
capital markets with access to insurance and reinsurance risk exposure. The
capital markets demand for these products was being primarily driven by a low
interest environment and the desire to achieve greater risk diversification and
potentially higher returns on their investments. This increased competition was
generally having a negative impact on rates, terms and conditions; however, the
impact varies widely by market and coverage.



The industry continues to deal with the impacts of a global pandemic, COVID-19
and its subsequent variants. We continue to service and meet the needs of our
clients while ensuring the safety and health of our employees and customers.



Prior to the pandemic, there was a growing industry consensus that there was
some firming of (re)insurance rates for the areas impacted by the recent
catastrophes. The increased frequency of catastrophe losses that continued to be
experienced in 2022 and throughout 2021 appears to be further pressuring the
increase of rates. As business activity continues to regain strength, rates also
appear to be firming in most lines of business, particularly in the casualty
lines that had seen significant losses such as excess casualty and directors'
and officers' liability. Other casualty lines are experiencing modest rate
increase, while some lines such as workers' compensation were experiencing
softer market conditions. It is too early to tell what the impact on pricing
conditions will be, but it is likely to change depending on the line of business
and geography.



While we are unable to predict the full impact the pandemic will have on the
insurance industry as it continues to have a negative impact on the global
economy, we are well positioned to continue to service our clients. Our capital
position remains a source of strength, with high quality invested assets,
significant liquidity and a low operating expense ratio. Our diversified global
platform with its broad mix of products, distribution and geography is
resilient.
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The war in the Ukraine is ongoing and an evolving event. Economic and legal
sanctions have been levied against Russia, specific named individuals and
entities connected to the Russian government, as well as businesses located in
the Russian Federation and/or owned by Russian nationals by numerous countries,
including the United States. The significant political and economic uncertainty
surrounding the war and associated sanctions have impacted economic and
investment markets both within Russia and around the world. To the best of our
knowledge at this time, the Company has limited financial exposure related to
the Russian invasion of the Ukraine. However, given the ongoing nature of the
war and the high degree of uncertainty around both exposures and coverage, a
reasonable estimation of potential loss is not credible at this time.

Financial Summary.

We monitor and evaluate our overall performance based upon financial results.
The following table displays a summary of the consolidated net income (loss),
ratios and shareholders' equity for the periods indicated.


                                                      Three Months Ended          Percentage
                                                          March 31,                Increase/
(Dollars in millions)                               2022            2021          (Decrease)
Gross written premiums                          $  3,186.4     $     2,931.4             8.7 %
Net written premiums                               2,812.0           2,553.9            10.1 %

REVENUES:
Premiums earned                                 $  2,791.8     $     2,387.9            16.9 %
Net investment income                                242.8             260.4            -6.8 %
Net gains (losses) on investments                  (153.6)              38.9              NM
Other income (expense)                                15.4              56.6           -72.9 %
Total revenues                                     2,896.3           2,743.8             5.6 %

CLAIMS AND EXPENSES:
Incurred losses and loss adjustment expenses 1,789.9 1,711.4

             4.6 %
Commission, brokerage, taxes and fees                605.2             489.0            23.8 %
Other underwriting expenses                          161.3             142.2            13.4 %
Corporate expenses                                    14.0              12.4            12.9 %
Interest, fees and bond issue cost amortization       24.1              15.6            54.5 %
expense
Total claims and expenses                          2,594.5           2,370.7             9.5 %

INCOME (LOSS) BEFORE TAXES                           301.8             373.1           -19.1 %
Income tax expense (benefit)                           4.1              31.2           -86.9 %
NET INCOME (LOSS)                               $    297.8     $       341.9           -12.9 %

RATIOS:                                                                          Point Change
Loss ratio                                            64.1 %            71.7 %         (7.6)
Commission and brokerage ratio                        21.7 %            20.5 %           1.2
Other underwriting expense ratio                       5.8 %             5.9 %         (0.1)
Combined ratio                                        91.6 %            98.1 %         (6.5)

                                                     At              At           Percentage
                                                 March 31,      December 31,       Increase/
(Dollars in millions, except per share amounts)     2022            2021          (Decrease)
Balance sheet data:
Total investments and cash                      $ 29,298.1     $    29,673.3            -1.3 %
Total assets                                      37,986.8          38,185.3            -0.5 %
Loss and loss adjustment expense reserves         19,495.6          19,009.5             2.6 %
Total debt                                         3,088.9           3,088.6               - %
Total liabilities                                 28,459.2          28,046.1             1.5 %
Shareholders' equity                               9,527.6          10,139.2            -6.0 %
Book value per share                                241.52            258.21            -6.5 %

(NM, not meaningful)
(Some amounts may not reconcile due to
rounding.)



                                       28

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Revenues.

Premiums. Gross written premiums increased by 8.7% to $3.2 billion in for the
three months ended March 31, 2022, compared to $2.9 billion three months ended
March 31, 2021, reflecting a $128.3 million, or 14.7%, increase in our insurance
business and a $126.6 million, or 6.1%, increase in our reinsurance business.
The rise in insurance premiums was primarily due to increases in specialty
casualty business and other specialty business. The increase in reinsurance
premiums was primarily due to increases in casualty pro rata business and
financial lines of business.



Net written premiums increased by 10.1% to $2.8 billion for the three months
ended March 31, 2022, compared to $2.6 billion for the three months ended March
31, 2021. The higher percentage increase in net written premiums compared to
gross written premiums mainly related to a reduction in business ceded to the
segregated accounts of Mt. Logan Re in the three months ended March 31, 2022
compared to the three months ended March 31, 2021. Premiums earned increased by
16.9% to $2.8 billion for the three months ended March 31, 2022, compared to
$2.4 billion for the three months ended March 31, 2021. 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. Accordingly, the
significant increases in gross written premiums from pro rata business during
the latter half of 2021 contributed to the current quarter percentage increase
in net earned premiums.



Other Income (Expense). We recorded other income of $15.4 million and $56.6
million for the three months ended March 31, 2022 and 2021, respectively. The
changes were primarily the result of fluctuations in foreign currency exchange
rates. We recognized foreign currency exchange income of $13.1 million and $51.8
million for the three months ended March 31, 2022 and 2021, respectively.

Net Investment Income. Refer to Consolidated Investments Results Section below.

Net Gains (Losses) on Investments. Refer to Consolidated Investments Results
Section below.

Claims and Expenses.

Incurred Losses and Loss Adjustment Expenses. The following table presents our
incurred losses and loss adjustment expenses ("LAE") for the periods indicated.

                                           Three Months Ended March 31,
                       Current     Ratio %/     Prior     Ratio %/      Total      Ratio %/
(Dollars in millions)   Year      Pt Change     Years    Pt Change    Incurred    Pt Change
2022
Attritional           $ 1,675.8     60.0 %     $ (0.9)        - %       1,674.9     60.0 %
Catastrophes              115.0      4.1 %           -        - %         115.0      4.1 %
Total                 $ 1,790.8     64.1 %     $ (0.9)        - %     $ 1,789.9     64.1 %

2021
Attritional           $ 1,443.3     60.4 %     $ (1.8)     -0.1 %     $ 1,441.4     60.3 %
Catastrophes              270.0     11.3 %           -        - %         270.0     11.3 %
Total                 $ 1,713.3     71.7 %     $ (1.8)     -0.1 %     $ 1,711.4     71.7 %

Variance 2022/2021
Attritional           $   232.5    (0.4) pts   $   0.9      0.1 pts   $   233.5    (0.3) pts
Catastrophes            (155.0)    (7.2) pts         -        - pts    

(155.0)    (7.2) pts
Total                 $    77.5    (7.6) pts   $   0.9      0.1 pts   $    78.5    (7.6) pts




Incurred losses and LAE increased by 4.6% to $1.8 billion for the three months
ended March 31, 2022, compared to $1.7 billion for the three months ended March
31, 2021, primarily due to an increase of $232.5 million in current year
attritional losses, partially offset by a decline of $155.0 million in current
year catastrophe losses. The increase in current year attritional losses was
mainly due to the impact of the increase in premiums earned. The current year
catastrophe losses of $115.0 million for the three months ended March 31, 2022
related primarily to the 2022 Australia floods ($75.0 million), the 2022
European storms ($30.0 million), and the 2022 March U.S. storms ($10.0 million).
The $270.0 million of current year catastrophe losses for the three months
                                       29
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ended March 31, 2021 related to the Texas winter storms ($260.0 million) and the
2021 Australia floods ($10.0 million).

Commission, Brokerage, Taxes and Fees. Commission, brokerage, taxes and fees
increased by 23.8% to $605.2 million for the three months ended March 31, 2022,
compared to $489.0 million for the three months ended March 31, 2021. The
increase was primarily due to the impact of the increases in premiums earned and
changes in the mix of business.



Other Underwriting Expenses. Other underwriting expenses were $161.3 million and
$142.2 million for the three months ended March 31, 2022 and 2021, respectively.
The increase in other underwriting expenses was mainly due to the impact of the
increase in premiums earned as well as the continued build out of our insurance
operations, including an expansion of the international insurance platform.



Corporate Expenses. Corporate expenses, which are general operating expenses
that are not allocated to segments, were $14.0 million and $12.4 million for the
three months ended March 31, 2022 and 2021, respectively. The increase was
mainly due to higher compensation expenses from an increased staff count.



Interest, Fees and Bond Issue Cost Amortization Expense. Interest, fees and
other bond amortization expense was $24.1 million and $15.6 million for the
three months ended March 31, 2022 and 2021, respectively. The increase was
primarily due to the issuance of $1.0 billion of senior notes in October 2021.
Interest expense was also impacted by the movements in the floating interest
rate related to the long term subordinated notes, which is reset quarterly per
the note agreement. The floating rate was 2.89% as of March 31, 2022.



Income Tax Expense (Benefit). We had income tax expense of $4.1 million and
$31.2 million for the three months ended March 31, 2022 and 2021, respectively.
Income tax expense is primarily a function of the geographic location of the
Company's pre-tax income and the statutory tax rates in those jurisdictions. The
effective tax rate ("ETR") is primarily affected by tax-exempt investment
income, foreign tax credits and dividends. Variations in the ETR generally
result from changes in the relative levels of pre-tax income, including the
impact of catastrophe losses and net capital gains (losses), among jurisdictions
with different tax rates.



Net Income (Loss).

Our net income was $297.8 million and $341.9 million for the three months ended
March 31, 2022 and 2021, respectively. These changes were primarily driven by
the financial component fluctuations explained above.

Ratios.

Our combined ratio decreased by 6.5 points to 91.6% for the three months ended
March 31, 2022, compared to 98.1% for the three months ended March 31, 2021. The
loss ratio component decreased 7.6 points for the three months ended March 31,
2022 over the same period last year mainly due to a decline of $155.0 million in
current year catastrophe losses. The commission and brokerage ratio components
increased to 21.7% for the three months ended March 31, 2022 compared to 20.5%
for the three months ended March 31, 2021 mainly due to changes in the mix of
business. The other underwriting expense ratios decreased slightly to 5.8% for
the three months ended March 31, 2022 compared to 5.9% for the three months
ended March 31, 2021.



Shareholders' Equity.

Shareholders' equity decreased by $611.6 million to $9.5 billion at March 31,
2022 from $10.1 billion at December 31, 2021, principally as a result of $811.0
million of unrealized depreciation on fixed maturity portfolio net of tax, $61.1
million of shareholder dividends, $34.1 million of net foreign currency
translation adjustments, $2.5 million of share-based compensation transactions
and the repurchase of 5,000 common shares for $1.3 million, partially offset by
$297.8 million of net income and $0.8 million of net benefit plan obligation
adjustments, net of tax.


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Consolidated Investment Results

Net Investment Income.

Net investment income decreased by 6.8% to $242.8 billion for the three months
ended March 31, 2022 compared with investment income of $260.4 million for the
three months ended March 31, 2021. The decrease was primarily the result of a
decline of $25.9 million in limited partnership income, partially offset by an
additional $7.3 million of income from fixed maturity investments. The limited
partnership income primarily reflects increases in their reported net asset
values. As such, until these asset values are monetized and the resultant income
is distributed, they are subject to future increases or decreases in the asset
value, and the results may be volatile.



The following table shows the components of net investment income for the
periods indicated.


                                                 Three Months Ended
                                                     March 31,
(Dollars in millions)                             2022         2021
Fixed maturities                               $     148.2   $  140.9
Equity securities                                      4.1        4.8
Short-term investments and cash                        0.2        0.2
Other invested assets
Limited partnerships                                  88.4      114.3
Other                                                 11.8        6.0
Gross investment income before adjustments           252.8      266.3
Funds held interest income (expense)                   3.7        8.0

Future policy benefit reserve income (expense) (0.2) (0.3)
Gross investment income

                              256.3      274.0
Investment expenses                                 (13.4)     (13.5)
Net investment income                          $     242.8   $  260.4

(Some amounts may not reconcile due to rounding.)

The following table shows a comparison of various investment yields for the
periods indicated.


                                                              Three Months Ended
                                                                  March 31,
                                                             2022            2021

Annualized pre-tax yield on average cash and invested 3.3 %

    4.2 %
assets
Annualized after-tax yield on average cash and invested        2.9 %           3.7 %
assets
Annualized return on invested assets                           1.2 %           4.8 %



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Net Gains (Losses) on Investments.

The following table presents the composition of our net gains (losses) on
investments for the periods indicated.

                                                          Three Months Ended March 31,
(Dollars in millions)                                     2022          2021      Variance
Realized gains (losses) from dispositions:
Fixed maturity securities:
Gains                                                $      20.1    $     14.9   $      5.2
Losses                                                    (17.3)         (5.7)       (11.6)
Total                                                        2.8           9.2        (6.4)

Equity securities, fair value:
Gains                                                        3.5          12.3        (8.8)
Losses                                                    (15.3)         (6.1)        (9.2)
Total                                                     (11.8)           6.2       (18.0)

Other Invested Assets:
Gains                                                        4.5           1.4          3.1
Losses                                                     (0.3)         (0.1)        (0.2)
Total                                                        4.2           1.3          2.9

Short Term Investments:
Gains                                                          -           0.1        (0.1)
Losses                                                     (0.1)             -        (0.1)
Total                                                      (0.1)           0.1        (0.2)

Total net realized gains (losses) from dispositions:
Gains                                                       28.1          28.7        (0.6)
Losses                                                    (33.0)        (11.9)       (21.1)
Total                                                      (4.9)          16.8       (21.7)

Allowance for credit losses:                              (11.9)         (7.0)        (4.9)

Gains (losses) from fair value adjustments:
Equity securities, fair value                            (136.9)          29.1      (166.0)
Total                                                    (136.9)          

29.1 (166.0)

Total net gains (losses) on investments              $   (153.6)    $     

38.9 $ (192.5)

(Some amounts may not reconcile due to rounding.)

Net gains (losses) on investments during the three months ended March 31, 2022
primarily relate to net losses from fair value adjustments on equity securities
in the amount of $136.9 million as a result of equity market declines during the
first quarter of 2022. In addition, we recorded an increase to the allowance for
credit losses during the three months ended March 31, 2022 in the amount of
$11.9 million primarily related to our direct holdings of Russian corporate
fixed maturity securities.



Segment Results.

The Company manages its reinsurance and insurance operations as autonomous units
and key strategic decisions are based on the aggregate operating results and
projections for these segments of business.



The Reinsurance operation writes worldwide property and casualty reinsurance and
specialty lines of business, on both a treaty and facultative basis, through
reinsurance brokers, as well as directly with ceding companies. Business is
written in the U.S., Bermuda, and Ireland offices, as well as, through branches
in Canada, Singapore, the United Kingdom and Switzerland. The Insurance
operation writes property and casualty insurance directly and through brokers,
surplus lines brokers and general agents within the U.S., Bermuda, Canada,
Europe and South America through its offices in the U.S., Canada, Chile, the
United Kingdom, Ireland and a branch located in the Netherlands.
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These segments 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.



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.

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.

Our loss and LAE reserves are management's best estimate of our ultimate
liability for unpaid claims. We re-evaluate our estimates on an ongoing basis,
including all prior period reserves, taking into consideration all available
information, and in particular, recently reported loss claim experience and
trends related to prior periods. Such re-evaluations are recorded in incurred
losses in the period in which re-evaluation is made.

The following discusses the underwriting results for each of our segments for
the periods indicated.

Reinsurance.

The following table presents the underwriting results and ratios for the
Reinsurance segment for the periods indicated.

                                            Three Months Ended March 31,
(Dollars in millions)               2022          2021        Variance     % Change
Gross written premiums           $ 2,185.6     $ 2,059.0     $    126.6        6.1 %
Net written premiums               2,081.4       1,913.0          168.5        8.8 %

Premiums earned                  $ 2,066.3     $ 1,777.5     $    288.8       16.2 %
Incurred losses and LAE            1,324.7       1,271.9           52.8        4.2 %
Commission and brokerage             514.2         408.7          105.5       25.8 %
Other underwriting expenses           50.5          52.0          (1.5)       -3.0 %
Underwriting gain (loss)         $   176.8     $    44.8     $    132.0     -294.5 %

                                                                          Point Chg
Loss ratio                            64.1 %        71.6 %                   (7.5)
Commission and brokerage ratio        24.9 %        23.0 %                  

1.9

Other underwriting expense ratio       2.4 %         2.9 %                   (0.5)
Combined ratio                        91.4 %        97.5 %                   (6.1)

(NM, Not Meaningful)
(Some amounts may not reconcile due to rounding.)



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Premiums. Gross written premiums increased by 6.1% to $2.2 billion for the three
months ended March 31, 2022 from $2.1 billion for the three months ended March
31, 2021, primarily due to increases in casualty pro rata business and financial
lines of business. Net written premiums increased by 8.8% to $2.1 billion for
the three months ended March 31, 2022 compared to $1.9 billion for the three
months ended March 31, 2021. The higher percentage increase in net written
premiums compared to gross written premiums mainly related to a reduction in
business ceded to the segregated accounts of Mt. Logan Re in the three months
ended March 31, 2022 compared to the three months ended March 31, 2021. Premiums
earned increased by 16.2% to $2.1 billion for the three months ended March 31,
2022, compared to $1.8 billion for the three months ended March 31, 2021. 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.
Accordingly, the significant increases in gross written premiums from pro rata
business during the latter half of 2021 contributed to the current quarter
percentage increase in net earned premiums.

Incurred Losses and LAE. The following table presents the incurred losses and
LAE for the Reinsurance segment for the periods indicated.

                                           Three Months Ended March 31,
                       Current     Ratio %/     Prior     Ratio %/      Total      Ratio %/
(Dollars in millions)   Year      Pt Change     Years    Pt Change    Incurred    Pt Change
2022
Attritional           $ 1,216.3     58.9 %     $ (1.6)     -0.1 %       1,214.7     58.8 %
Catastrophes              110.0      5.3 %           -        - %         110.0      5.3 %
Total Segment         $ 1,326.3     64.2 %     $ (1.6)     -0.1 %     $ 1,324.7     64.1 %

2021
Attritional           $ 1,051.2     59.1 %     $ (1.8)     -0.1 %       1,049.4     59.0 %
Catastrophes              222.5     12.5 %           -        - %         222.5     12.5 %
Total Segment         $ 1,273.7     71.6 %     $ (1.8)     -0.1 %     $ 1,271.9     71.6 %

Variance 2022/2021
Attritional           $   165.1    (0.2) pts   $   0.2        - pts   $   165.3    (0.2) pts
Catastrophes            (112.5)    (7.2) pts         -        - pts    

(112.5) (7.2) pts
Total Segment $ 52.6 (7.4) pts $ 0.2 - pts $ 52.8 (7.5) pts

Incurred losses increased by 4.2% to $1.32 billion for the three months ended
March 31, 2022, compared to $1.27 billion for the three months ended March 31,
2021. The increase was primarily due to an increase of $165.1 million in current
year attritional losses, partially offset by a decrease of $112.5 million in
current year catastrophe losses. The increase in current year attritional losses
was mainly related to the impact of the increase in premiums earned. The current
year catastrophe losses of $110.0 million for the three months ended March 31,
2022 related primarily to the 2022 Australia floods ($75.0 million), the 2022
European storms ($30.0 million), and the 2022 March U.S. storms ($5.0 million).
The $222.5 million of current year catastrophe losses for the three months ended
March 31, 2021 related to the Texas winter storms ($212.5 million) and the 2021
Australia floods ($10.0 million).



Segment Expenses. Commission and brokerage expense increased by 25.8% to $514.2
million for the three months ended March 31, 2022 compared to $408.7 million for
the three months ended March 31, 2021. The increase was mainly due to the impact
of the increase in premiums earned and changes in the mix of business.



Segment other underwriting expenses decreased to $50.5 million for the three
months ended March 31, 2022 from $52.0 million for the three months ended March
31, 2021. The decrease was mainly due to lower variable compensation expenses.


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Insurance.

The following table presents the underwriting results and ratios for the
Insurance segment for the periods indicated.

                                           Three Months Ended March 31,
(Dollars in millions)               2022         2021       Variance     % Change
Gross written premiums           $ 1,000.7     $ 872.4     $    128.3       14.7 %
Net written premiums                 730.6       641.0           89.6       14.0 %

Premiums earned                  $   725.5     $ 610.4     $    115.1       18.9 %
Incurred losses and LAE              465.1       439.5           25.6        5.8 %
Commission and brokerage              91.0        80.3           10.7       13.3 %
Other underwriting expenses          110.8        90.2           20.6       22.8 %
Underwriting gain (loss)         $    58.5     $   0.4     $     58.2         NM

                                                                        Point Chg
Loss ratio                            64.1 %      72.0 %                   (7.9)
Commission and brokerage ratio        12.5 %      13.2 %                   

(0.7)

Other underwriting expense ratio      15.3 %      14.8 %                     0.5
Combined ratio                        91.9 %      99.9 %                   (8.0)

(NM not meaningful)
(Some amounts may not reconcile due to rounding.)




Premiums. Gross written premiums increased by 14.7% to $1.0 billion for the
three months ended March 31, 2022 compared to $872.4 million for the three
months ended March 31, 2021. This rise was primarily related to increases in
specialty casualty business and other specialty business. Net written premiums
increased by 14.0% to $730.6 million for the three months ended March 31, 2022
compared to $641.0 million for the three months ended March 31, 2021, which is
consistent with the change in gross written premiums. Premiums earned increased
18.9% to $725.5 million for the three months ended March 31, 2022 compared to
$610.4 million for the three months ended March 31, 2021. 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. Accordingly, the significant increases in
gross written premiums during the latter half of 2021 contributed to the current
quarter percentage increase in net earned premiums.

Incurred Losses and LAE. The following table presents the incurred losses and
LAE for the Insurance segment for the periods indicated.

                                                   Three Months Ended March 

31,

                             Current        Ratio %/      Prior      Ratio %/       Total      Ratio %/
(Dollars in millions)          Year        Pt Change      Years      Pt Change    Incurred    Pt Change
2022
Attritional               $        459.5     63.3 %     $     0.7      0.1 %          460.1     63.4 %
Catastrophes                         5.0      0.7 %             -        - %            5.0      0.7 %
Total Segment             $        464.5     64.0 %     $     0.7      0.1 %      $   465.1     64.1 %

2021
Attritional               $        392.0     64.2 %     $       -        - %      $   392.0     64.2 %
Catastrophes                        47.5      7.8 %             -        - %           47.5      7.8 %
Total Segment             $        439.5     72.0 %     $       -        - %      $   439.5     72.0 %

Variance 2022/2021
Attritional               $         67.5    (0.9) pts   $     0.7      0.1 pts    $    68.1    (0.8) pts
Catastrophes                      (42.5)    (7.1) pts           -        - pts       (42.5)    (7.1) pts
Total Segment             $         25.0    (8.0) pts   $     0.7      0.1 pts    $    25.6    (7.9) pts

(Some amounts may not reconcile due to
rounding.)




Incurred losses and LAE increased by 5.8% to $465.1 million for the three months
ended March 31, 2022 compared to $439.5 million for the three months ended March
31, 2021. The increase was mainly due to an
                                       35
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increase of $67.5 million in current year attritional losses, partially offset
by a decrease in current year catastrophe losses of $42.5 million. The increase
in current year attritional losses was primarily due to the impact of the
increase in premiums earned. The current year catastrophe losses of $5.0 million
related to the 2022 March U.S. storms. The $47.5 million of current year
catastrophe losses for the three months ended March 31, 2021 related to the
Texas winter storms.



Segment Expenses. Commission and brokerage increased by 13.3% to $91.0 million
for the three months ended March 31, 2022 compared to $80.3 million for the
three months ended March 31, 2021. The increase was mainly due to the impact of
the increase in premiums earned.



Segment other underwriting expenses increased to $110.8 million for the three
months ended March 31, 2022 compared to $90.2 million for the three months ended
March 31, 2021. The increase was mainly due to the impact of the increase in
premiums earned and increased expenses related to the continued build out of the
insurance business, including an expansion of the international insurance
platform.



FINANCIAL CONDITION



Investments. Total investments were $27.5 billion at March 31, 2022, a decrease
of $712.6 million compared to $28.2 billion at December 31, 2021. This decrease
was primarily related to declines in fixed maturity securities and short-term
investments. Fixed maturity securities decreased due to decreases in fair values
resulting from higher interest rates, partially offset by net purchases of
securities. Short-term investments decreased as a result of the reinvestment of
funds related to the settlement of affiliated reinsurance agreements during the
three months ended March 31, 2022.



The Company's limited partnership investments are comprised of limited
partnerships that invest in private equities. Generally, the limited
partnerships are reported on a quarter lag. We receive annual audited financial
statements for all of the limited partnerships which are prepared using fair
value accounting in accordance with FASB guidance. For the quarterly reports,
the Company reviews the financial reports for any unusual changes in carrying
value. If the Company becomes aware of a significant decline in value during the
lag reporting period, the loss will be recorded in the period in which the
Company identifies the decline.

The table below summarize the composition and characteristics of our investment
portfolio as of the dates indicated.

                                               At                  At
                                         March 31, 2022     December 31, 

2021

Fixed income portfolio duration (years)         3.1                  3.2
Fixed income composite credit quality            A+                   A+




Reinsurance Recoverables.

Reinsurance recoverables for both paid and unpaid losses totaled $2.1 billion
and $2.1 billion at March 31, 2022 and December 31, 2021, respectively. At March
31, 2022, $649.0 million, or 30.9%, was receivable from Mt. Logan Re
collateralized segregated accounts; $224.1 million, or 10.7%, was receivable
from Munich Reinsurance America, Inc. ("Munich Re") and $123.5 million or 5.9%
was receivable from Endurance Specialty Holdings, Ltd. ("Endurance"). No other
retrocessionaire accounted for more than 5% of our recoverables.

Loss and LAE Reserves. Gross loss and LAE reserves totaled $19.5 billion and
$19.0 billion at March 31, 2022 and December 31, 2021, respectively.

                                       36
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The following tables summarize gross outstanding loss and LAE reserves by
segment, classified by case reserves and IBNR reserves, for the periods
indicated.


                                                   At March 31, 2022
                                    Case          IBNR          Total         % of
(Dollars in millions)             Reserves      Reserves      Reserves        Total
Reinsurance                      $   5,639.4   $   8,480.4   $  14,119.8        72.4 %
Insurance                            1,570.3       3,652.5       5,222.8        26.8 %
Total excluding A&E                  7,209.6      12,132.9      19,342.5        99.2 %
A&E                                    148.4           4.8         153.1         0.8 %
Total including A&E              $   7,358.0   $  12,137.7   $  19,495.6       100.0 %

(Some amounts may not reconcile
due to rounding.)



                                                 At December 31, 2021
                                    Case          IBNR          Total         % of
(Dollars in millions)             Reserves      Reserves      Reserves        Total
Reinsurance                      $   5,415.0   $   8,312.3   $  13,727.3        72.2 %
Insurance                            1,546.2       3,562.4       5,108.6        26.9 %
Total excluding A&E                  6,961.2      11,874.7      18,835.9        99.1 %
A&E                                    163.7           9.9         173.6         0.9 %
Total including A&E              $   7,124.8   $  11,884.7   $  19,009.5       100.0 %

(Some amounts may not reconcile
due to rounding.)




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.



Our loss and LAE reserves represent management's best estimate of our ultimate
liability for unpaid claims. We continuously re-evaluate our reserves, including
re-estimates of prior period reserves, taking into consideration all available
information and, in particular, newly reported loss and claim experience.
Changes in reserves resulting from such re-evaluations are reflected in incurred
losses in the period when the re-evaluation is made. Our analytical methods and
processes operate at multiple levels including individual contracts, groupings
of like contracts, classes and lines of business, internal business units,
segments, legal entities, and in the aggregate. In order to set appropriate
reserves, we make qualitative and quantitative analyses and judgments at these
various levels. Additionally, the attribution of reserves, changes in reserves
and incurred losses among accident years requires qualitative and quantitative
adjustments and allocations at these various levels. We utilize actuarial
science, business expertise and management judgment in a manner intended to
ensure the accuracy and consistency of our reserving practices. Nevertheless,
our reserves are estimates, which are subject to variation, which may be
significant.



There can be no assurance that reserves for, and losses from, claim obligations
will not increase in the future, possibly by a material amount. However, we
believe that our existing reserves and reserving methodologies lessen the
probability that any such increase would have a material adverse effect on our
financial condition, results of operations or cash flows.


                                       37
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Asbestos and Environmental Exposures. A&E exposures represent a separate
exposure group for monitoring and evaluating reserve adequacy. The following
table summarizes the outstanding loss reserves with respect to A&E reserves on
both a gross and net of retrocessions basis for the periods indicated.


                                                      At              At
                                                   March 31,     December 31,
(Dollars in millions)                                2022            2021
Gross reserves                                    $     153.1   $        175.2
Ceded reserves                                         (17.5)           (19.0)
Net reserves                                      $     135.6   $        156.1

(Some amounts may not reconcile due to rounding.)

With respect to asbestos only, at March 31, 2022, we had net asbestos loss
reserves of $135.8 million, or 100.2%, of total net A&E reserves, all of which
was for assumed business.

Ultimate loss projections for A&E liabilities cannot be accomplished using
standard actuarial techniques. We believe that our A&E reserves represent
management's best estimate of the ultimate liability; however, there can be no
assurance that ultimate loss payments will not exceed such reserves, perhaps by
a significant amount.



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 3.8 years at March 31, 2022. 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.

LIQUIDITY AND CAPITAL RESOURCES

Capital. Shareholders' equity at March 31, 2022 and December 31, 2021 was $9.5
billion and $10.1 billion, respectively. Management's objective in managing
capital is to ensure its overall capital level, as well as the capital levels of
its operating subsidiaries, exceed the amounts required by regulators, the
amount needed to support our current financial strength ratings from rating
agencies and our own economic capital models. The Company's capital has
historically exceeded these benchmark levels.



Our two main operating companies Bermuda Re and Everest Re are regulated by the
Bermuda Monetary Authority ("BMA") and the State of Delaware, Department of
Insurance, respectively. Both regulatory bodies have their own capital adequacy
models based on statutory capital as opposed to GAAP basis equity. Failure to
meet the required statutory capital levels could result in various regulatory
restrictions, including business activity and the payment of dividends to their
parent companies.

The regulatory targeted capital and the actual statutory capital for Bermuda Re
and Everest Re were as follows:

                               Bermuda Re (1)          Everest Re (2)
                               At December 31,         At December 31,

(Dollars in millions) 2021 2020 2021 2020
Regulatory targeted capital $ 2,169.3 $ 1,923.2 $ 2,960.0 $ 2,489.8
Actual capital

              $ 3,184.1   $ 2,930.3   $ 5,717.1   $ 5,276.0

(1) Regulatory targeted capital represents the target capital level from the
applicable year's BSCR calculation.

(2) Regulatory targeted capital represents 200% of the RBC authorized control
level calculation for the applicable year.

Our financial strength ratings as determined by A.M. Best, Standard & Poor's and
Moody's are important as they provide our customers and investors with an
independent assessment of our financial strength using a rating scale that
provides for relative comparisons. We continue to possess significant financial
flexibility and access to
                                       38
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debt and equity markets as a result of our financial strength, as evidenced by
the financial strength ratings as assigned by independent rating agencies.

We maintain our own economic capital models to monitor and project our overall
capital, as well as the capital at our operating subsidiaries. A key input to
the economic models is projected income and this input is continually compared
to actual results, which may require a change in the capital strategy.

On October 4, 2021, we issued $1.0 billion of 31 year senior notes with an
interest coupon rate of 3.125%. These senior notes will mature on October 15,
2052 and will pay interest semi-annually.

During the first quarter of 2022, we repurchased 5,000 shares for $1.3 million
in the open market and paid $61.1 million in dividends to adjust our capital
position and enhance long term expected returns to our shareholders. In 2021, we
repurchased 887,622 shares for $225.1 million in the open market and paid $246.7
million in dividends to adjust our capital position and enhance long term
expected returns to our shareholders. We may at times enter into a Rule 10b5-1
repurchase plan agreement to facilitate the repurchase of shares. On May 22,
2020, our existing Board authorization to purchase up to 30 million of our
shares was amended to authorize the purchase of up to 32 million shares. As of
March 31, 2022, we had repurchased 30.5 million shares under this authorization.



We may continue, from time to time, to seek to retire portions of our
outstanding debt securities through cash repurchases, in open-market purchases,
privately negotiated transactions or otherwise. Such repurchases, if any, will
be subject to and depend on prevailing market conditions, our liquidity
requirements, contractual restrictions and other factors. The amounts involved
in any such transactions, individually or in the aggregate, may be material.



Liquidity. Our liquidity requirements are generally met from positive cash flow
from operations. Positive cash flow results from reinsurance and insurance
premiums being collected prior to disbursements for claims, which disbursements
generally take place over an extended period after the collection of premiums,
sometimes a period of many years. Collected premiums are generally invested,
prior to their use in such disbursements, and investment income provides
additional funding for loss payments. Our net cash flows from operating
activities were $846.4 million and $904.4 million for the three months ended
March 31, 2022 and 2021, respectively. Additionally, these cash flows reflected
net catastrophe loss payments of $196.0 million and $173.6 million for the three
months ended March 31, 2022 and 2021, respectively and net tax payments of $2.7
million and $6.4 million for the three months ended March 31, 2022 and 2021,
respectively.



If disbursements for claims and benefits, policy acquisition costs and other
operating expenses were to exceed premium inflows, cash flow from reinsurance
and insurance operations would be negative. The effect on cash flow from
insurance operations would be partially offset by cash flow from investment
income. Additionally, cash inflows from investment maturities and dispositions,
both short-term investments and longer term maturities are available to
supplement other operating cash flows.



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 March 31, 2022 and December 31, 2021, we held cash and
short-term investments of $2.6 billion and $2.6 billion, respectively. Our
short-term investments are generally readily marketable and can be converted to
cash. In addition to these cash and short-term investments, at March 31, 2022,
we had $1.4 billion of available for sale fixed maturity securities maturing
within one year or less, $7.1 billion maturing within one to five years and $6.2
billion maturing after five years. Our $1.8 billion 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 a significant amount of securities to pay losses and
LAE but have the ability to do so. Sales of securities might result in net gains
(losses) on investments. At March 31, 2022 we had $653.0 million of
                                       39
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net pre-tax unrealized depreciation related to fixed maturity securities,
comprised of $806.8 million of pre-tax unrealized depreciation and $153.7
million of pre-tax unrealized appreciation.

Management generally expects annual positive cash flow from operations, which
reflects the strength of overall pricing. However, given the recent set of
catastrophic events, cash flow from operations may decline and could become
negative in the near term as significant claim payments are made related to the
catastrophes. However, as indicated above, the Company has ample liquidity to
settle its catastrophe claims.



In addition to our cash flows from operations and liquid investments, we also
have multiple active credit facilities that provide commitments of up to $1.2
billion of collateralized standby letters of credit to support business written
by our Bermuda operating subsidiaries. In addition, the Company has the ability
to request access to an additional $340.0 million of uncommitted credit
facilities, which would require approval from the applicable lender. There is no
guarantee the uncommitted capacity will be available to us on a future date. See
Note 9 - Credit Facilities for further details.

Market Sensitive Instruments.

The SEC's Financial Reporting Release #48 requires registrants to clarify and
expand upon the existing financial statement disclosure requirements for
derivative financial instruments, derivative commodity instruments and other
financial instruments (collectively, "market sensitive instruments"). We do not
generally enter into market sensitive instruments for trading purposes.



Our current investment strategy seeks to maximize after-tax income through a
high quality, diversified, fixed maturity portfolio, while maintaining an
adequate level of liquidity. Our mix of investments is adjusted periodically,
consistent with our current and projected operating results and market
conditions. The fixed maturity securities in the investment portfolio are
comprised of non-trading available for sale securities. Additionally, we have
invested in equity securities.



The overall investment strategy considers the scope of present and anticipated
Company operations. In particular, estimates of the financial impact resulting
from non-investment asset and liability transactions, together with our capital
structure and other factors, are used to develop a net liability analysis. This
analysis includes estimated payout characteristics for which our investments
provide liquidity. This analysis is considered in the development of specific
investment strategies for asset allocation, duration and credit quality. The
change in overall market sensitive risk exposure principally reflects the asset
changes that took place during the period.



Interest Rate Risk. Our $29.3 billion investment portfolio, at March 31, 2022,
is principally comprised of fixed maturity securities, which are generally
subject to interest rate risk and some foreign currency exchange rate risk, and
some equity securities, which are subject to price fluctuations and some foreign
exchange rate risk. The overall economic impact of the foreign exchange risks on
the investment portfolio is partially mitigated by changes in the dollar value
of foreign currency denominated liabilities and their associated income
statement impact.



Interest rate risk is the potential change in value of the fixed maturity
securities portfolio, including short-term investments, from a change in market
interest rates. In a declining interest rate environment, it includes prepayment
risk on the $3.4 billion of mortgage-backed securities in the $22.0 billion
fixed maturity portfolio. Prepayment risk results from potential accelerated
principal payments that shorten the average life and thus the expected yield of
the security.



The table below displays the potential impact of market value fluctuations and
after-tax unrealized appreciation on our fixed maturity portfolio (including
$823.9 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
                                       40
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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.

                                           Impact of Interest Rate Shift in Basis Points
                                                         At March 31, 2022
                                 -200            -100           0              100            200
(Dollars in millions)
Total Market/Fair Value      $ 24,300.1     $ 23,561.2     $ 22,822.3     $ 22,083.4     $  21,344.5
Market/Fair Value Change            6.5 %          3.2 %          0.0 %        (3.2) %         (6.5) %
from Base (%)
Change in Unrealized
Appreciation
After-tax from Base ($)      $  1,286.2     $    643.1     $        -     $  (643.1)     $ (1,286.2)




We had $19.5 billion and $19.0 billion of gross reserves for losses and LAE as
of March 31, 2022 and December 31, 2021, 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 3.9 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 $1.6
billion resulting in a discounted reserve balance of approximately $15.9
billion, representing approximately 69.5% of the value of the fixed maturity
investment portfolio funds.



Equity Risk. Equity risk is the potential change in fair and/or market value of
the common stock, preferred stock and mutual fund portfolios arising from
changing prices. Our equity investments consist of a diversified portfolio of
individual securities and mutual funds, which invest principally in high quality
common and preferred stocks that are traded on the major exchanges, and mutual
fund investments in emerging market debt. The primary objective of the equity
portfolio is to obtain greater total return relative to our core bonds over time
through market appreciation and income.



The table below displays the impact on fair/market value and after-tax change in
fair/market value of a 10% and 20% change in equity prices up and down for the
period indicated.


                                                Impact of Percentage Change

in Equity Fair/Market Values

                                                                    At March 31, 2022
(Dollars in millions)                         -20%            -10%             0%            10%         20%

Fair/Market Value of the Equity Portfolio $ 1,424.4 $ 1,602.5 $

    1,780.5    $ 1,958.6   $ 2,136.6
After-tax Change in Fair/Market Value     $    (282.2)    $    (141.1)    $          -    $   141.1   $   282.2




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, the impact on the market value of available for sale fixed
maturities due to changes in foreign currency exchange rates, in relation to
functional currency, is reflected as part of other comprehensive income.
Conversely, the impact of changes in foreign currency exchange rates, in
relation to functional currency, on other assets and liabilities is reflected
through net income as a component of other income (expense). In addition, we
translate the assets, liabilities and income of non-U.S. dollar functional
                                       41
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currency legal entities to the U.S. dollar. This translation amount is reported
as a component of other comprehensive income.

Safe Harbor Disclosure.

This report 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
federal securities laws. In some cases, these statements can be identified by
the use of forward-looking words such as "may", "will", "should", "could",
"anticipate", "estimate", "expect", "plan", "believe", "predict", "potential"
and "intend". Forward-looking statements contained in this report include
information regarding our reserves for losses and LAE, the CARES Act, the impact
of the Tax Cut and Jobs Act, the adequacy of capital in relation to regulatory
required capital, the adequacy of our provision for uncollectible balances,
estimates of our catastrophe exposure, the effects of catastrophic and pandemic
events on our financial statements, the ability of Everest Re, Holdings,
Holdings Ireland, Dublin Holdings, Bermuda Re and Everest International to pay
dividends and the settlement costs of our specialized equity index put option
contracts. Forward-looking statements only reflect our expectations and are not
guarantees of performance. These statements involve risks, uncertainties and
assumptions. Actual events or results may differ materially from our
expectations. Important factors that could cause our actual events or results to
be materially different from our expectations include those discussed under the
caption ITEM 1A, "Risk Factors" in the Company's most recent 10-K filing. We
undertake no obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events or otherwise.