The proceeds and split between gross gains and losses, from sales of fixed maturity and equity securities, are presented in the table below for the periods indicated:

	Three Months Ended
	March 31,
(Dollars in thousands)	2021		2020
Proceeds from sales of fixed maturity securities	$	492,943	$	164,244
Gross gains from sales		6,349		1,846
Gross losses from sales		(2,422)		(22,783)

Proceeds from sales of equity securities	$	281,313	$	204,161
Gross gains from sales		12,304		2,581
Gross losses from sales		(6,066)		(30,183)

Three Months Ended Nine Months Ended
September 30, September 30,
(Dollars in thousands) 2017 2016 2017 2016
Proceeds from sales of fixed maturity securities $ 410,636 $ 136,767 $ 1,063,126 $ 435,242
Gross gains from sales 7,931 6,257 23,674 13,875
Gross losses from sales (4,089 ) (1,920 ) (6,860 ) (26,003 )

Proceeds from sales of equity securities $ 52,754 $ 109,914 $ 302,407 $ 531,894
Gross gains from sales 2,199 6,874 13,774 13,509
Gross losses from sales (3,678 ) (1,422 ) (10,309 ) (23,643 )

4. RESERVES FOR LOSSES AND LAE

Activity in the reserve for losses and LAE is summarized for the periods indicated:

	Three Months Ended March 31,
(Dollars in thousands)		2021		2020
Gross reserves beginning of period	$	11,654,950	$	10,209,519
Less reinsurance recoverables		(3,951,474)		(4,215,348)
Net reserves beginning of period		7,703,476		5,994,171
Incurred related to:
Current year		1,338,891		1,026,442
Prior years		15,193		3,071
Total incurred losses and LAE		1,354,084		1,029,513
Paid related to:
Current year		168,423		138,778
Prior years		527,470		593,482
Total paid losses and LAE		695,893		732,260

Foreign exchange/translation adjustment and cumulative adjustment due to adoption of ASU 2016-13		(6,819)		(36,673)

Net reserves end of period		8,354,848		6,254,751
Plus reinsurance recoverables		3,829,356		4,016,471
Gross reserves end of period	$	12,184,204	$	10,271,222

(Some amounts may not reconcile due to rounding.)

Nine Months Ended Twelve Months Ended
September 30, At December 31,
(Dollars in thousands) 2017 2016
Gross reserves at beginning of period $ 8,331,288 $ 7,940,720
Less reinsurance recoverables (4,199,791 ) (3,875,073 )
Net reserves at beginning of period 4,131,497 4,065,647

Incurred related to:
Current year 1,918,055 1,441,962
Prior years 453 (91,682 )
Total incurred losses and LAE 1,918,508 1,350,280

Paid related to:
Current year 441,480 400,489
Prior years 547,176 892,207
Total paid losses and LAE 988,656 1,292,696

Foreign exchange/translation adjustment 19,084 8,266

Net reserves at end of period 5,080,433 4,131,497
Plus reinsurance recoverables 4,888,715 4,199,791
Gross reserves at end of period $ 9,969,148 $ 8,331,288

Current year incurred losses were ~~$1,918,055~~$1,338,891 thousand for the ~~nine~~three months ended ~~September 30, 2017 compared to $1,441,962~~March 31, 2021 and $1,026,442 thousand for the ~~full year 2016.~~three months ended March 31, 2020, respectively. The increase in current year incurred losses in 2021 compared to 2020 was primarily due to $1,039,295 thousand of catastrophe losses incurred in the nine months ended September 30, 2017, mainly related to Hurricane Irma, Hurricane Maria, Hurricane Harvey and the Mexico City earthquake. The $688,924a $230,500 thousand increase in ~~reinsurance recoverables from December 31, 2016 is primarily due to recoverables from these~~current year catastrophe ~~losses.~~

Incurred prior years' reserves increased by $453 thousand and decreased by $91,682 thousand for the nine months ended September 30, 2017 and the year ended December 31, 2016, respectively. The decrease for the year ended December 31, 2016 was attributable to favorable development in the reinsurance segments of $187,909 thousand related primarily to property and short-tail business in the U.S., property business in Canada, Latin America, Middle East and Africa,losses as well as ~~favorable development on prior year catastrophe~~

~~losses, partially offset by $45,668 thousand of adverse development on A&E reserves. Part~~the impact of the ~~favorable development~~increase in the reinsurance segment related to the 2015 loss from the explosion at the Chinese port of Tianjin. In 2015, this loss was originally estimated to be $21,566 thousands. At December 31, 2016, this loss was projected to be $6,261 thousands resulting in $15,305 thousands of favorable development in 2016. The net favorable development in the reinsurance segments was partially offset by $96,227 thousand of unfavorable development in the insurance segment primarily related to run-off construction liability and umbrella program business.

6.premiums earned.

5. FAIR VALUE

GAAP guidance regarding fair value measurements address how companies should measure fair value when they are required to use fair value measures for recognition or disclosure purposes under GAAP and provides a common definition of fair value to be used throughout GAAP. It defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly fashion between market participants at the measurement date. In addition, it establishes a three-level valuation hierarchy for the disclosure of fair value measurements. The valuation hierarchy is based on the transparency of inputs to the valuation of an asset or liability. The level in the hierarchy within which a given fair value measurement falls is determined based on

the lowest level input that is significant to the measurement, with Level 1 being the highest priority and Level 3 being the lowest priority.

The levels in the hierarchy are defined as follows:

Level 1:

Inputs to the valuation methodology are observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in an active market;

Level 2:

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

Level 3:

Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The ~~Company's~~Company’s fixed maturity and equity securities are primarily managed by third party investment asset managers. The investment asset managers managing publicly traded securities obtain prices from nationally recognized pricing services. These services seek to utilize market data and observations in their evaluation process. They use pricing applications that vary by asset class and incorporate available market information and when fixed maturity securities do not trade on a daily basis the services will apply available information through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing. In addition, they use model processes, such as the Option Adjusted Spread model to develop prepayment and interest rate scenarios for securities that have prepayment features.

In limited instances where prices are not provided by pricing services or in rare instances when a manager may not agree with the pricing service, price quotes on a non-binding basis are obtained from investment brokers. The investment asset managers do not make any changes to prices received from either the pricing services or the investment brokers. In addition, the investment asset managers have procedures in place to review the reasonableness of the prices from the service providers and may request verification of the prices. In addition, the Company continually performs analytical reviews of price changes and tests the prices on a random basis to an independent pricing source. No material variances were noted during these price validation procedures. In limited situations, where financial markets are inactive or illiquid, the Company may use its own assumptions about future cash flows and risk-adjusted discount rates to determine fair value. ~~Due~~At March 31, 2021, $1,424,851 thousand of fixed maturities, market value were fair valued using unobservable inputs. The majority of the fixed maturities, market value, were valued by investment managers’ valuation committees and many of these fair values were substantiated by valuations from independent third parties. The Company has procedures in place to the unavailability of prices for forty-eight private placement securities, the investment manager's valuation committee valued the forty-eight securities at $105,199 thousand at September 30, 2017. Due to the unavailability of prices for forty-two private placement securities, the investment manager's valuation committee valued the forty-two securities at $86,536 thousand atevaluate these independent third party valuations. At December 31, ~~2016.~~

2020, $1,259,576 thousand of fixed maturities, market value were fair valued using unobservable inputs.

The Company internally manages a public equity portfolio which had a fair value at ~~September 30, 2017~~March 31, 2021 and December 31, ~~2016~~2020 of ~~$218,533~~$912,126 thousand and ~~$133,755~~$784,746 thousand, respectively, and all prices were obtained from ~~publically~~publicly published sources.

Equity securities denominated in U.S. currency with quoted prices in active markets for identical assets are categorized as ~~level~~Level 1 since the quoted prices are directly observable. Equity securities traded on foreign exchanges are categorized as ~~level~~Level 2 due to the added input of a foreign exchange conversion rate to determine fair or market value. The Company uses foreign currency exchange rates published by nationally recognized sources.

All categories of fixed maturity securities listed in the tables below are generally categorized as ~~level~~Level 2, since a particular security may not have traded but the pricing services are able to use valuation models with observable market inputs such as interest rate yield curves and prices for similar fixed maturity securities in terms of issuer, maturity and seniority. For foreign government securities and foreign corporate securities, the fair values provided by the third party pricing services in local currencies, and where applicable, are converted to U.S. dollars using currency exchange rates from nationally recognized sources.

The fixed maturities with fair values categorized as ~~level~~Level 3 result when prices are not available from the nationally recognized pricing services. The asset managers will then obtain non-binding price quotes for the securities from brokers. The single broker quotes are provided by market makers or broker-dealers who are recognized as market participants in the markets in which they are providing the quotes. The prices received from brokers are reviewed for reasonableness by the third party asset managers and the Company. If the broker quotes are for foreign denominated securities, the quotes are converted to U.S. dollars using currency exchange rates from nationally recognized sources. In limited circumstances when broker prices are not available for private placements, the Company will value the securities using comparable market information.

The composition and valuation inputs for the presented fixed maturities categories Level 1 and Level 2 are as follows:

·	U.S. Treasury securities and obligations of U.S. government agencies and corporations are primarily comprised of U.S. Treasury bonds and the fair value is based on observable market inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields;

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

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

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

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

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

19·

U.S. Treasury securities and obligations of U.S. government agencies and corporations are primarily comprised of U.S. Treasury bonds and the fair value is based on observable market inputs such as quoted prices, reported trades, quoted prices for similar issuances or benchmark yields;

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

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

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

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

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

Other invested assets, at fair value, ~~was~~were categorized as Level 3 at ~~September 30, 2017~~March 31, 2021 and December 31, ~~2016,~~2020, since it represented a privately placed convertible preferred stock issued by an affiliate. The stock was received in exchange for shares of the ~~Company's~~Company’s parent. The ~~fair value of the~~25 year redeemable, convertible preferred stock ~~at September 30, 2017 and December 31, 2016 was determined~~with a 1.75 % coupon is valued using a pricing model. The pricing model includes observable inputs such as the U.S. Treasury yield curve rate T note constant maturity 10 year and the swap rate on the Company’s June 1, 2044 , 4.868% senior notes, with adjustments to reflect the Company’s own assumptions about the inputs that market participants would use in pricing the asset.

The following table presents the fair value measurement levels for all assets, which the Company has recorded at fair value (fair and market value) as of the period indicated:

			Fair Value Measurement Using:
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
(Dollars in thousands)	March 31, 2021		(Level 1)		(Level 2)		(Level 3)
Assets:
Fixed maturities, market value
U.S. Treasury securities and obligations of U.S. government agencies and corporations	$	638,843	$	-	$	638,843	$	-
Obligations of U.S. States and political subdivisions		595,048		-		595,048		-
Corporate securities		3,729,429		-		3,095,536		633,893
Asset-backed securities		2,490,103		-		1,704,743		785,360
Mortgage-backed securities
Commercial		572,590		-		572,590		-
Agency residential		1,005,851		-		1,005,851		-
Non-agency residential		6,264		-		6,264		-
Foreign government securities		769,289		-		769,289		-
Foreign corporate securities		1,242,584		-		1,236,986		5,598
Total fixed maturities, market value		11,050,001		-		9,625,150		1,424,851

Equity securities, fair value		1,226,120		1,191,064		35,056		-
Other invested assets, fair value		1,889,558		-		-		1,889,558

Fair Value Measurement Using:
Quoted Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
Assets Inputs Inputs
(Dollars in thousands) September 30, 2017 (Level 1) (Level 2) (Level 3)
Assets:
Fixed maturities, market value
U.S. Treasury securities and obligations of
U.S. government agencies and corporations $ 655,886 $ - $ 655,886 $ -
Obligations of U.S. States and political subdivisions 671,842 - 671,842 -
Corporate securities 2,239,591 - 2,137,522 102,069
Asset-backed securities 153,789 - 153,789 -
Mortgage-backed securities
Commercial 59,023 - 59,023 -
Agency residential 677,830 - 677,830 -
Non-agency residential 62 - 62 -
Foreign government securities 531,473 - 531,473 -
Foreign corporate securities 1,049,865 - 1,046,734 3,131
Total fixed maturities, market value 6,039,361 - 5,934,161 105,200

Equity securities, fair value 998,071 951,679 46,392 -
Other invested assets, fair value 1,922,402 - - 1,922,402

~~There were no transfers between Level 1 and Level 2 for the nine months ended September 30, 2017.~~

The following table presents the fair value measurement levels for all assets, which the Company has recorded at fair value (fair and market value) as of the period ~~indicated:~~indicated.

			Fair Value Measurement Using:
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
(Dollars in thousands)	December 31, 2020		(Level 1)		(Level 2)		(Level 3)
Assets:
Fixed maturities, market value
U.S. Treasury securities and obligations of U.S. government agencies and corporations	$	681,989	$	-	$	681,989	$	-
Obligations of U.S. States and political subdivisions		577,046		-		577,046		-
Corporate securities		3,449,912		-		2,819,068		630,844
Asset-backed securities		2,474,170		-		1,851,137		623,033
Mortgage-backed securities
Commercial		550,080		-		550,080		-
Agency residential		965,100		-		965,100		-
Non-agency residential		3,164		-		3,164		-
Foreign government securities		742,238		-		742,238		-
Foreign corporate securities		1,199,866		-		1,194,167		5,699
Total fixed maturities, market value		10,643,565		-		9,383,989		1,259,576

Equity securities, fair value		1,288,767		1,222,158		66,609		-
Other invested assets, fair value		1,796,479		-		-		1,796,479

Fair Value Measurement Using:
Quoted Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
Assets Inputs Inputs
(Dollars in thousands) December 31, 2016 (Level 1) (Level 2) (Level 3)
Assets:
Fixed maturities, market value
U.S. Treasury securities and obligations of
U.S. government agencies and corporations $ 691,080 $ - $ 691,080 $ -
Obligations of U.S. States and political subdivisions 729,984 - 729,984 -
Corporate securities 2,154,203 - 2,089,006 65,197
Asset-backed securities 137,027 - 137,027 -
Mortgage-backed securities
Commercial 75,493 - 75,493 -
Agency residential 715,144 - 715,144 -
Non-agency residential 88 - 88 -
Foreign government securities 507,277 - 507,277 -
Foreign corporate securities 960,200 - 957,662 2,538
Total fixed maturities, market value 5,970,496 - 5,902,761 67,735

Equity securities, fair value 887,800 827,237 60,563 -
Other invested assets, fair value 1,766,626 - - 1,766,626

In addition, ~~$70,657~~$240,892 thousand and ~~$18,801~~$224,698 thousand of investments within other invested assets on the consolidated balance sheets as of ~~September 30, 2017~~March 31, 2021 and December 31, ~~2016,~~2020, respectively, are not included within the fair value hierarchy tables as the assets are ~~valued using the~~measured at NAV as a practical expedient ~~guidance within ASU 2015-07.~~

to determine fair value.

The following ~~table presents~~tables present the activity under Level 3, fair value measurements using significant unobservable inputs by asset type, for the periods indicated:

	Total Fixed Maturities, Market Value
	Three Months Ended March 31, 2021
	Corporate		Asset		Foreign
(Dollars in thousands)	Securities		Backed Securities		Corporate		Total
Beginning balance	$	630,843	$	623,033	$	5,700	$	1,259,576
Total gains or (losses) (realized/unrealized)
Included in earnings		(1,788)		(4,168)		2		(5,954)
Included in other comprehensive income (loss)		2,835		(3,135)		49		(251)
Purchases, issuances and settlements		2,003		169,630		(153)		171,480
Transfers in and/or (out) of Level 3		-		-		-		-
Ending balance	$	633,893	$	785,360	$	5,598	$	1,424,851
The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date	$	-	$	-	$	-	$	-

(Some amounts may not reconcile due to rounding.)

	Total Fixed Maturities, Market Value
	Three Months Ended March 31, 2020
	Corporate		Asset		Foreign
(Dollars in thousands)	Securities		Backed Securities		Corporate		Total
Beginning balance	$	546,939	$	153,641	$	1,751	$	702,331
Total gains or (losses) (realized/unrealized)
Included in earnings		(214)		4		-		(210)
Included in other comprehensive income (loss)		(3,357)		(15,882)		-		(19,239)
Purchases, issuances and settlements		99,064		100,868		(1,751)		198,181
Transfers in and/or (out) of Level 3		-		-		-		-
Ending balance	$	642,432	$	238,631	$	-	$	881,063
The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date	$	(539)	$	-	$	-	$	(539)

(Some amounts may not reconcile due to rounding.)

Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017
Corporate Foreign Corporate Foreign
(Dollars in thousands) Securities Corporate Total Securities Corporate Total
Beginning balance $ 86,140 $ 3,151 $ 89,291 $ 65,197 $ 2,538 $ 67,735
Total gains or (losses) (realized/unrealized)
Included in earnings 283 210 493 1,208 314 1,522
Included in other comprehensive income (loss) 18 (230 ) (212 ) 161 (230 ) (69 )
Purchases, issuances and settlements 15,628 - 15,628 35,503 509 36,012
Transfers in and/or (out) of Level 3 - - - - - -
Ending balance $ 102,069 $ 3,131 $ 105,200 $ 102,069 $ 3,131 $ 105,200

The amount of total gains or losses for the period included
in earnings (or changes in net assets) attributable to the
change in unrealized gains or losses relating to assets
still held at the reporting date $ - $ - $ - $ - $ - $ -

(Some amounts may not reconcile due to rounding.)

	Total Fixed Maturities, Fair Value
	Three Months Ended March 31, 2021
	Foreign
(Dollars in thousands)	Corporate		Total
Beginning balance fixed maturities at fair value	$	-	$	-
Total gains or (losses) (realized/unrealized)
Included in earnings		-		-
Included in other comprehensive income (loss)		-		-
Purchases, issuances and settlements		-		-
Transfers in and/or (out) of Level 3		-		-
Ending balance	$	-	$	-
The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date	$	-	$	-

(Some amounts may not reconcile due to rounding.)

	Total Fixed Maturities, Fair Value
	Three Months Ended March 31, 2020
	Foreign
(Dollars in thousands)	Corporate		Total
Beginning balance fixed maturities at fair value	$	5,826	$	5,826
Total gains or (losses) (realized/unrealized)
Included in earnings		(1,123)		(1,123)
Included in other comprehensive income (loss)		-		-
Purchases, issuances and settlements		-		-
Transfers in and/or (out) of Level 3		-		-
Ending balance	$	4,703	$	4,703
The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date	$	-	$	-

(Some amounts may not reconcile due to rounding.)

Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016
Corporate Foreign Corporate Foreign
(Dollars in thousands) Securities CMBS Corporate Total Securities CMBS Corporate Total
Beginning balance $ 32,410 $ - $ 2,021 $ 34,431 $ 3,933 $ - $ 1,593 $ 5,526
Total gains or (losses) (realized/unrealized)
Included in earnings (12 ) - 27 15 (22 ) - (970 ) (992 )
Included in other comprehensive income (loss) (48 ) (34 ) (1,285 ) (1,367 ) (81 ) (34 ) 140 25
Purchases, issuances and settlements 25,877 (40 ) 2,231 28,068 54,397 (40 ) 2,231 56,588
Transfers in and/or (out) of Level 3 (1,932 ) 3,553 - 1,621 (1,932 ) 3,553 - 1,621
Ending balance $ 56,295 $ 3,479 $ 2,994 $ 62,768 $ 56,295 $ 3,479 $ 2,994 $ 62,768

The amount of total gains or losses for the period included
in earnings (or changes in net assets) attributable to the
change in unrealized gains or losses relating to assets
still held at the reporting date $ - $ - $ - $ - $ - $ - $ (997 ) $ (997 )

(Some amounts may not reconcile due to rounding.)

The net transfers to/(from) level 3, fair value measurements using significant unobservable inputs were $0 thousand and $1,621 thousand of investments for the nine months ended September 30, 2017 and 2016, respectively. The $1,621 thousand of investments for the nine months ended September 30, 2016 related to the net impact of securities no longer priced by a recognized pricing service.

The following table presents the activity under Level 3, fair value measurements using significant unobservable inputs by other invested assets, for the periods indicated:

	Three Months Ended
	March 31,
(Dollars in thousands)	2021		2020
Other invested assets, fair value:
Beginning balance	$	1,796,479	$	1,982,582
Total gains or (losses) (realized/unrealized)
Included in earnings		93,079		442,479
Included in other comprehensive income (loss)		-		-
Purchases, issuances and settlements		-		-
Transfers in and/or (out) of Level 3		-		-
Ending balance	$	1,889,558	$	2,425,061
The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date	$	-	$	-

(Some amounts may not reconcile due to rounding.)

Three Months Ended Nine Months Ended
September 30, September 30,
(Dollars in thousands) 2017 2016 2017 2016
Other invested assets, fair value:
Beginning balance $ 1,724,532 $ 1,772,458 $ 1,766,626 $ 1,773,214
Total gains or (losses) (realized/unrealized)
Included in earnings 197,870 (47,090 ) 155,776 (47,846 )
Included in other comprehensive income (loss) - - - -
Purchases, issuances and settlements - - - -
Transfers in and/or (out) of Level 3 - - - -
Ending balance $ 1,922,402 $ 1,725,367 $ 1,922,402 $ 1,725,367

The amount of total gains or losses for the period included in earnings
(or changes in net assets) attributable to the change in unrealized
gains or losses relating to assets still held at the reporting date $ - $ - $ - $ -

(Some amounts may not reconcile due to rounding.)

6. COMMITMENTS AND ~~CONTINGENCIES~~

C ONTINGENCIES

In the ordinary course of business, the Company is involved in lawsuits, arbitrations and other formal and informal dispute resolution procedures, the outcomes of which will determine the ~~Company's~~Company’s rights and obligations under insurance and reinsurance agreements. In some disputes, the Company seeks to enforce its rights under an agreement or to collect funds owing to it. In other matters, the Company is resisting attempts by others to collect funds or enforce alleged rights. These disputes arise from time to time and are ultimately resolved through both informal and formal means, including negotiated resolution, arbitration and litigation. In all such matters, the Company believes that its positions are legally and commercially reasonable. The Company considers the statuses of these proceedings when determining its reserves for unpaid loss and loss adjustment expenses.

Aside from litigation and arbitrations related to these insurance and reinsurance agreements, the Company is not a party to any other material litigation or arbitration.

The Company has entered into separate annuity agreements with The Prudential Insurance Company of America ("(“The ~~Prudential"~~Prudential”) and an additional unaffiliated life insurance company in which the Company has either purchased annuity contracts or become the assignee of annuity proceeds that are meant to settle claim payment obligations in the future. In both instances, the Company would become contingently liable if either

The Prudential or the unaffiliated life insurance company were unable to make payments related to the respective annuity ~~contact.~~

contract.

The table below presents the estimated cost to replace all such annuities for which the Company was contingently liable for the periods indicated:

	At March 31, 2021		At December 31, 2020
(Dollars in thousands)	At March 31, 2021		At December 31, 2020
The Prudential	$	139,981	$	140,773
Unaffiliated life insurance company		32,835		35,128

At September 30, At December 31,
(Dollars in thousands) 2017 2016
The Prudential $ 144,331 $ 146,507
Unaffiliated life insurance company 33,769 33,860

7. COMPREHENSIVE INCOME (LOSS)

The following ~~table presents~~tables present the components of comprehensive income (loss) in the consolidated statements of operations and comprehensive income (loss) for the periods indicated:

	Three Months Ended March 31, 2021
(Dollars in thousands)	Before Tax		Tax Effect		Net of Tax
Unrealized appreciation (depreciation) ("URA(D)") on securities - non-credit related temporary	$	(139,019)		29,161	$	(109,858)
Reclassification of net realized losses (gains) included in net income (loss)		1,870		(379)		1,490
Foreign currency translation adjustments		2,856		(594)		2,262
Reclassification of amortization of net gain (loss) included in net income (loss)		2,586		(543)		2,043
Total other comprehensive income (loss)	$	(131,708)	$	27,645	$	(104,063)

(Some amounts may not reconcile due to rounding)

	Three Months Ended March 31, 2020
(Dollars in thousands)	Before Tax		Tax Effect		Net of Tax
Unrealized appreciation (depreciation) ("URA(D)") on securities - temporary	$	(223,770)	$	46,246	$	(177,524)
Reclassification of net realized losses (gains) included in net income (loss)		35,364		(7,478)		27,886
Foreign currency translation adjustments		(37,532)		7,899		(29,633)
Reclassification of amortization of net gain (loss) included in net income (loss)		1,165		(245)		920
Total other comprehensive income (loss)	$	(224,773)	$	46,422	$	(178,351)

(Some amounts may not reconcile due to rounding)

Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017
(Dollars in thousands) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax
Unrealized appreciation (depreciation) ("URA(D)") on securities - temporary $ 852 $ (219 ) $ 633 $ 24,656 $ (8,279 ) $ 16,377
URA(D) on securities - OTTI (158 ) 55 (103 ) (3,974 ) 1,391 (2,583 )
Reclassification of net realized losses (gains) included in net income (loss) (2,454 ) 780 (1,674 ) (12,719 ) 4,101 (8,618 )
Foreign currency translation adjustments 52,740 (18,459 ) 34,281 66,492 (23,272 ) 43,220
Benefit plan actuarial net gain (loss) - - - - - -
Reclassification of amortization of net gain (loss) included in net income (loss) 2,107 (738 ) 1,369 8,273 (2,896 ) 5,377
Total other comprehensive income (loss) $ 53,088 $ (18,581 ) $ 34,507 $ 82,729 $ (28,955 ) $ 53,774

(Some amounts may not reconcile due to rounding)

Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016
(Dollars in thousands) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax
Unrealized appreciation (depreciation) ("URA(D)") on securities - temporary $ 8,305 $ (2,909 ) $ 5,396 $ 92,221 $ (32,279 ) $ 59,942
URA(D) on securities - OTTI (2,444 ) 856 (1,588 ) 4,199 (1,469 ) 2,730
Reclassification of net realized losses (gains) included in net income (loss) (4,258 ) 1,491 (2,767 ) 35,515 (12,430 ) 23,085
Foreign currency translation adjustments (4,066 ) 1,424 (2,642 ) 42,741 (14,962 ) 27,779
Benefit plan actuarial net gain (loss) - - - - - -
Reclassification of amortization of net gain (loss) included in net income (loss) 1,951 (683 ) 1,268 6,076 (2,127 ) 3,949
Total other comprehensive income (loss) $ (512 ) $ 179 $ (333 ) $ 180,752 $ (63,267 ) $ 117,485

(Some amounts may not reconcile due to rounding)

The following table presents details of the amounts reclassified from AOCI for the periods indicated:

	Three Months Ended				Affected line item within the
	March 31,				statements of operations and
AOCI component	2021		2020		comprehensive income (loss)
(Dollars in thousands)
URA(D) on securities	$	1,870	$	35,364	Other net realized capital gains (losses)
		(379)		(7,478)	Income tax expense (benefit)
	$	1,490	$	27,886	Net income (loss)
Benefit plan net gain (loss)	$	2,586	$	1,165	Other underwriting expenses
		(543)		(245)	Income tax expense (benefit)
	$	2,043	$	920	Net income (loss)

(Some amounts may not reconcile due to rounding)

Three Months Ended Nine Months Ended
September 30, September 30, Affected line item within the statements of
AOCI component 2017 2016 2017 2016 operations and comprehensive income (loss)
(Dollars in thousands)
URA(D) on securities $ (2,454 ) $ (4,258 ) $ (12,719 ) $ 35,515 Other net realized capital gains (losses)
780 1,491 4,101 (12,430 ) Income tax expense (benefit)
$ (1,674 ) $ (2,767 ) $ (8,618 ) $ 23,085 Net income (loss)

Benefit plan net gain (loss) $ 2,107 $ 1,951 $ 8,273 $ 6,076 Other underwriting expenses
(738 ) (683 ) (2,896 ) (2,127 ) Income tax expense (benefit)
$ 1,369 $ 1,268 $ 5,377 $ 3,949 Net income (loss)

(Some amounts may not reconcile due to rounding)

The following table presents the components of accumulated other comprehensive income (loss), net of tax, in the consolidated balance sheets for the periods indicated:

	Three Months Ended
	March 31,
(Dollars in thousands)	2021		2020
Beginning balance of URA (D) on securities	$	313,161	$	124,612
Current period change in URA (D) of investments - non-credit related		(108,368)		(149,638)
Ending balance of URA (D) on securities		204,793		(25,025)

Beginning balance of foreign currency translation adjustments		28,727		14,267
Current period change in foreign currency translation adjustments		2,262		(29,633)
Ending balance of foreign currency translation adjustments		30,989		(15,367)

Beginning balance of benefit plan net gain (loss)		(73,870)		(74,556)
Current period change in benefit plan net gain (loss)		2,043		920
Ending balance of benefit plan net gain (loss)		(71,827)		(73,635)

Ending balance of accumulated other comprehensive income (loss)	$	163,955	$	(114,027)

Nine Months Ended Twelve Months Ended
September 30, December 31,
(Dollars in thousands) 2017 2016

Beginning balance of URA (D) on securities $ 39,041 $ 13,654
Current period change in URA (D) of investments - temporary 7,759 22,063
Current period change in URA (D) of investments - non-credit OTTI (2,583 ) 3,324
Ending balance of URA (D) on securities 44,218 39,041

Beginning balance of foreign currency translation adjustments (9,852 ) (12,701 )
Current period change in foreign currency translation adjustments 43,220 2,849
Ending balance of foreign currency translation adjustments 33,368 (9,852 )

Beginning balance of benefit plan net gain (loss) (65,504 ) (63,089 )
Current period change in benefit plan net gain (loss) 5,377 (2,415 )
Ending balance of benefit plan net gain (loss) (60,127 ) (65,504 )

Ending balance of accumulated other comprehensive income (loss) $ 17,459 $ (36,315 )

8. COLLATERALIZED REINSURANCE AND TRUST AGREEMENTS

A subsidiary of the Company, Everest Re, has established a trust agreement, which effectively uses Everest ~~Re's~~Re’s investments as collateral, as security for assumed losses payable to a non-affiliated ceding ~~company.~~companies. At ~~September 30, 2017,~~March 31, 2021, the total amount on deposit in the trust account was ~~$659,548~~$928,624 thousand.

On ~~April 24, 2014,~~December 1, 2015, the Company entered into two collateralized reinsurance agreements with Kilimanjaro Re Limited ~~("Kilimanjaro"~~(“Kilimanjaro”), a Bermuda based special purpose reinsurer, to provide the Company with catastrophe reinsurance coverage. These agreements are multi-year reinsurance contracts which cover ~~specified~~ named storm and earthquake events. The first agreement provides up to ~~$250,000~~$300,000 thousand of reinsurance coverage from named storms in specified states of the Southeastern United States. The second agreement provides up to $200,000 thousand of reinsurance coverage from named storms in specified states of the Southeast, Mid-Atlantic and Northeast regions of the United States and Puerto Rico as well as reinsurance coverage from earthquakes in specified states of the Southeast, Mid-Atlantic, Northeast and West regions of the United States, Puerto Rico and British Columbia.

On November 18, 2014, the Company entered into a collateralized reinsurance agreement with Kilimanjaro to provide the Company with catastrophe reinsurance coverage. This agreement is a multi-year reinsurance contract which covers specified earthquake events. The agreement provides up to $500,000 thousand of reinsurance coverage from earthquakes in the United States, Puerto Rico and Canada.

The second agreement provides up to $325,000 thousand of reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico and Canada. These reinsurance agreements expired in December 2020.

On ~~December 1, 2015~~April 13, 2017, the Company entered into ~~two~~six collateralized reinsurance agreements with Kilimanjaro to provide the Company with annual aggregate catastrophe reinsurance coverage. The initial three agreements are four year reinsurance contracts which cover named storm and earthquake events. These agreements provide up to $225,000 thousand, $400,000 thousand and $325,000 thousand, respectively, of annual aggregate reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico and Canada. The subsequent three agreements are five year reinsurance contracts which cover named storm and earthquake events. These agreements provide up to $50,000 thousand, $75,000 thousand and $175,000 thousand, respectively, of annual aggregate reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico and Canada.

On April 30, 2018, the Company entered into four collateralized reinsurance agreements with Kilimanjaro to provide the Company with catastrophe reinsurance coverage. These agreements are multi-year reinsurance contracts which cover named storm and earthquake events. The first agreement provides up to $300,000 thousand of reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico and Canada. The second agreement provides up to $325,000 thousand of reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico and Canada.

~~On April 13, 2017 the Company entered into six collateralized reinsurance agreements with Kilimanjaro to provide the Company with annual aggregate catastrophe reinsurance coverage. The initial three~~two agreements are four year reinsurance contracts which ~~cover named storm and earthquake events. These agreements~~ provide up to ~~$225,000 thousand, $400,000~~$62,500 thousand and ~~$325,000~~$200,000 thousand, respectively, of annual aggregate reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico, the U.S. Virgin Islands and Canada. The ~~subsequent three~~remaining two agreements are five year reinsurance contracts which ~~cover named storm and earthquake events. These agreements~~ provide up to ~~$50,000 thousand, $75,000~~$62,500 thousand and ~~$175,000~~$200,000 thousand, respectively, of annual aggregate reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico, the U.S. Virgin Islands and Canada.

On December 12, 2019, the Company entered into four collateralized reinsurance agreements with Kilimanjaro to provide the Company with catastrophe reinsurance coverage. These agreements are multi-year reinsurance contracts which cover named storm and earthquake events. The first two agreements are four year reinsurance contracts which provide up to $150,000 thousand and $275,000 thousand, respectively, of annual aggregate reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico, the U.S. Virgin Islands and Canada. The remaining two agreements are five year reinsurance contracts which provide up to $150,000 thousand and $275,000 thousand, respectively, of annual aggregate reinsurance coverage from named storms and earthquakes in the United State, Puerto Rico, the U.S. Virgin Islands and Canada.

On April 8, 2021, the Company entered into six collateralized reinsurance agreements with Kilimanjaro to provide the Company with catastrophe reinsurance coverage. These agreements are multi-year reinsurance contracts which cover named storm and earthquake events. The first three agreements are four year reinsurance contracts which provide up to $150,000 thousand, $85,000 thousand and $85,000 thousand, respectively, of annual aggregate reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico, the U.S. Virgin Islands and Canada. The remaining three agreements are five year reinsurance contracts which provide up to $150,000 thousand, $90,000 thousand and $90,000 thousand, respectively, of annual aggregate reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico, the U.S. Virgin Islands and Canada.

Recoveries under these collateralized reinsurance agreements with Kilimanjaro are primarily dependent on estimated industry level insured losses from covered events, as well as, the geographic location of the events. The estimated industry level of insured losses is obtained from published estimates by an independent recognized authority on insured property losses. ~~As of September 30, 2017,~~Currently, none of the published insured loss estimates for ~~the 2017~~ catastrophe events during the applicable covered periods of the various agreements have exceeded the single event retentions or aggregate retentions under the terms of the agreements that would result in a recovery. In addition, the aggregation of the to date published insured loss estimates for the 2017 covered events have not exceeded the aggregated retentions for recovery. However, if the published estimates for insured losses for the covered 2017 events increase or if there are additional covered events during the remainder of 2017, the aggregate losses may exceed the aggregate event retentions under the agreements, resulting in a recovery.

Kilimanjaro has financed the various property catastrophe reinsurance coverages by issuing catastrophe bonds to unrelated, external investors. On ~~April 24, 2014, Kilimanjaro issued $450,000 thousand of notes ("Series 2014-1 Notes"). On November 18, 2014, Kilimanjaro issued $500,000 thousand of notes ("Series 2014-2 Notes"). On~~ December 1, 2015, Kilimanjaro issued $625,000 thousand of notes ("(“Series 2015-1 Notes). The $625,000 thousand of Series 2015-1 Notes were fully redeemed and are no longer outstanding. On April 13, 2017, Kilimanjaro issued $950,000 thousand of notes ("(“Series 2017-1 Notes) and $300,000 thousand of notes ("(“Series 2017-2 Notes). On April 30, 2018, Kilimanjaro issued $262,500 thousand of notes (“Series 2018-1 Notes”) and $262,500 thousand of notes (“Series 2018-2 Notes”). On December 12, 2019 Kilimanjaro issued $425,000 thousand of notes (“Series 2019-1 Notes”) and $425,000 thousand of notes (“Series 2019-2 Notes’”). On April 8, 2021 Kilimanjaro issued $320,000 thousand of notes (“Series 2021-1 Notes”) and $330,000 thousand of notes (“Series 2021-2 Notes”). The proceeds from the issuance of the Notes listed above are held in reinsurance trust throughout the duration of the applicable reinsurance agreements and invested solely in US government money market funds with a rating of at least ~~"AAAm"~~“AAAm” by Standard & ~~Poor's.~~

~~10. SENIOR~~Poor’s.

9. S ENIOR NOTES

The table below displays ~~Holdings'~~Holdings’ outstanding senior notes. Market value is based on quoted market prices, but due to limited trading activity, these senior notes are considered Level 2 in the fair value hierarchy.

				March 31, 2021				December 31, 2020
				Consolidated				Consolidated
			Principal	Balance Sheet		Market		Balance Sheet		Market
(Dollars in thousands)	Date Issued	Date Due	Amounts	Amount		Value		Amount		Value
4.868% Senior notes	06/05/2014	06/01/2044	400,000	$	397,224	$	479,616	$	397,194	$	528,000
3.5% Senior notes	10/07/2020	10/15/2050	1,000,000	$	979,654	$	976,480	$	979,524	$	1,138,100

September 30, 2017 December 31, 2016
Consolidated Balance Consolidated Balance
(Dollars in thousands) Date Issued Date Due Principal Amounts Sheet Amount Market Value Sheet Amount Market Value
4.868% Senior notes 06/05/2014 06/01/2044 400,000 $ 396,804 $ 420,008 $ 396,714 $ 383,612

On June 5, 2014, Holdings issued ~~$400,000~~$400,000 thousand of 30 year senior notes at 4.868%, which will mature on June 1, 2044. Interest will be paid semi-annually on June 1 and December 1 of each year.

25On October 7, 2020 , Holdings issued $1,000,000 thousand of 30 year senior notes an interest coupon rate of 3.5 % which will mature on October 15, 2050. Interest will be paid semi-annually on April 15th and October 15th of each year.

Interest expense incurred in connection with these senior notes is as follows for the periods indicated:

	Three Months Ended
	March 31,
(Dollars in thousands)	2021		2020
Interest expense incurred 4.868% Senior Notes	$	4,868	$	4,868
Interest expense incurred 3.5% Senior Notes	$	8,805	$	-

Three Months Ended Nine Months Ended
September 30, September 30,
(Dollars in thousands) 2017 2016 2017 2016
Interest expense incurred $ 4,868 $ 4,868 $ 14,604 $ 14,604

~~11.~~

10. LONG TERM SUBORDINATED NOTES

The table below displays ~~Holdings'~~Holdings’ outstanding fixed to floating rate long term subordinated notes. Market value is based on quoted market prices, but due to limited trading activity, these subordinated notes are considered Level 2 in the fair value hierarchy.

March 31, 2021

December 31, 2020

Original

Consolidated

Principal

Maturity Date

Balance

Market

Balance

Market

(Dollars in thousands)

Date Issued

Amount

Scheduled

Final

Sheet Amount

Value

Sheet Amount

Value

Long term subordinated notes

04/26/2007

400,000

05/15/2037

05/01/2067

223,699

207,648

223,674

206,447

Maturity Date September 30, 2017 December 31, 2016
Original Consolidated Balance Consolidated Balance
(Dollars in thousands) Date Issued Principal Amount Scheduled Final Sheet Amount Market Value Sheet Amount Market Value
6.6% Long term subordinated notes 04/26/2007 $ 400,000 05/15/2037 05/01/2067 $ 236,536 $ 221,380 $ 236,462 $ 204,636

During the fixed rate interest period from May 3, 2007 through May 14, 2017, interest was at the annual rate of 6.6%, payable semi-annually in arrears on November 15 and May 15 of each year, commencing on November 15, 2007. During the floating rate interest period from May 15, 2017 through maturity, interest will be based on the 3 month LIBOR plus 238.5 basis points, reset quarterly, payable quarterly in arrears on February 15, May 15, August 15 and November 15 of each year, subject to ~~Holdings'~~Holdings’ right to defer interest on one or more occasions for up to ten consecutive years. Deferred interest will accumulate interest at the applicable rate compounded quarterly for periods from and including ~~August~~May 15, 2017. The reset quarterly interest rate for ~~November 15, 2017~~February 16, 2021 to ~~November 15, 2017~~May 16, 2021 is ~~3.70%~~2.58%.

Holdings may redeem the long term subordinated notes on or after May 15, 2017 , in whole or in part at ~~100%~~100 % of the principal amount plus accrued and unpaid interest; however, redemption on or after the scheduled maturity date and prior to May 1, 2047 is subject to a replacement capital covenant. This covenant is for the benefit of certain senior note holders and it mandates that Holdings receive proceeds from the sale of another subordinated debt issue, of at least similar size, before it may redeem the subordinated notes. Effective upon the maturity of the ~~Company's 5.40%~~Company’s 5.40 % senior notes on October 15, 2014 , the ~~Company's 4.868%~~Company’s 4.868 % senior notes, due on June 1, 2044, have become the ~~Company's~~Company’s long term indebtedness that ranks senior to the long term subordinated notes.

The Company repurchased and retired $0 thousand and $1,700 thousand of its outstanding long term subordinated notes during the three months ended March 31, 2021 and 2020, respectively. The Company realized a gain of $0 thousand and $502 thousand from the repurchase of the long term subordinated notes during the three months ended March 31, 2021 and 2020, respectively.

On March 19, 2009, Group announced the commencement of a cash tender offer for any and all of the ~~6.60%~~6.60 % fixed to floating rate long term subordinated notes. Upon expiration of the tender offer, the Company had reduced its outstanding debt by $161,441 thousand. In addition, during 2020, the Company repurchased and retired $13,183 thousand of these notes.

Interest expense incurred in connection with these long term subordinated notes is as follows for the periods indicated:

	Three Months Ended
	March 31,
(Dollars in thousands)	2021		2020
Interest expense incurred	$	1,462	$	2,538

Three Months Ended Nine Months Ended
September 30, September 30,
(Dollars in thousands) 2017 2016 2017 2016
Interest expense incurred $ 2,240 $ 3,937 $ 9,210 $ 11,811

~~12.~~

11 . FEDERAL HOME LOAN BANK MEMBERSHIP

Effective August 15, 2019, Everest Reinsurance Company (“Everest Re”) became a member of the Federal Home Loan Bank of New York (“FHLBNY”), which allows Everest Re to borrow up to 10 % of its statutory admitted assets. As of March 31, 2021, Everest Re had admitted assets of approximately $17,280,068 thousand which provides borrowing capacity of up to approximately $1,728,007 thousand.

During 2020, Everest Re borrowed $400,000 thousand under its FHLBNY capacity. The borrowings have interest payable at an interest rate of 0.35 %. As of March 31, 2021, $310,000 of these borrowings remain outstanding, with maturities in November and December 2021. The FHLBNY membership agreement requires that 4.5% of borrowed funds be used to acquire additional membership stock.

12 . SEGMENT REPORTING

The ~~U.S.~~ Reinsurance operation writes worldwide 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~~companies. Business is written in the ~~U.S. The International operation writes non-U.S. property and casualty reinsurance~~United States as well as through ~~Everest Re's~~ branches in Canada ~~Singapore~~ and ~~through offices in Brazil, Miami and New Jersey.~~Singapore. The Insurance operation writes property and casualty insurance directly and through brokers, surplus lines brokers and general agents ~~mainly~~ within the ~~U.S.~~

United States.

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")~~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.

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

	Three Months Ended
Reinsurance	March 31,
(Dollars in thousands)	2021		2020
Gross written premiums	$	1,420,082	$	1,308,194
Net written premiums		1,208,813		1,114,235

Premiums earned	$	1,177,170	$	1,007,034
Incurred losses and LAE		970,318		682,707
Commission and brokerage		290,556		260,901
Other underwriting expenses		36,289		29,847
Underwriting gain (loss)	$	(119,994)	$	33,579

	Three Months Ended
Insurance	March 31,
(Dollars in thousands)	2021		2020
Gross written premiums	$	713,252	$	666,771
Net written premiums		556,530		524,474

Premiums earned	$	519,730	$	486,970
Incurred losses and LAE		383,766		346,805
Commission and brokerage		59,298		62,203
Other underwriting expenses		73,505		71,361
Underwriting gain (loss)	$	3,161	$	6,601

Three Months Ended Nine Months Ended
U.S. Reinsurance
September 30, September 30,
(Dollars in thousands) 2017 2016 2017 2016
Gross written premiums $ 908,346 $ 654,770 $ 1,962,297 $ 1,597,006
Net written premiums 295,645 327,242 649,883 711,700

Premiums earned $ 242,350 $ 249,203 $ 652,953 $ 709,064
Incurred losses and LAE 678,926 137,245 919,107 363,567
Commission and brokerage 31,698 48,107 115,243 147,968
Other underwriting expenses 12,094 14,265 40,623 39,856
Underwriting gain (loss) $ (480,368 ) $ 49,586 $ (422,020 ) $ 157,673

Three Months Ended Nine Months Ended
International
September 30, September 30,
(Dollars in thousands) 2017 2016 2017 2016
Gross written premiums $ 363,186 $ 353,195 $ 975,296 $ 939,851
Net written premiums 130,180 141,295 345,387 353,449

Premiums earned $ 123,915 $ 128,358 $ 355,366 $ 372,816
Incurred losses and LAE 410,543 41,830 557,416 206,672
Commission and brokerage 25,101 30,193 72,426 82,443
Other underwriting expenses 8,241 9,219 26,293 25,011
Underwriting gain (loss) $ (319,970 ) $ 47,116 $ (300,769 ) $ 58,690

Three Months Ended Nine Months Ended
Insurance
September 30, September 30,
(Dollars in thousands) 2017 2016 2017 2016
Gross written premiums $ 429,593 $ 497,958 $ 1,351,491 $ 1,276,761
Net written premiums 144,935 154,079 442,237 462,791

Premiums earned $ 152,242 $ 179,092 $ 449,440 $ 445,553
Incurred losses and LAE 242,089 122,528 441,985 365,962
Commission and brokerage (22,254 ) 4,478 (40,104 ) (10,859 )
Other underwriting expenses 37,378 40,665 114,889 116,839
Underwriting gain (loss) $ (104,971 ) $ 11,421 $ (67,330 ) $ (26,389 )

The following table reconciles the underwriting results for the operating segments to income (loss) before taxes as reported in the consolidated statements of operations and comprehensive income (loss) for the periods indicated:

	Three Months Ended
	March 31,
(Dollars in thousands)	2021		2020
Underwriting gain (loss)	$	(116,833)	$	40,180
Net investment income		147,723		74,201
Net realized capital gains (losses)		135,011		256,867
Corporate expense		(4,581)		(3,721)
Interest, fee and bond issue cost amortization expense		(15,534)		(7,460)
Other income (expense)		3,979		(4,498)
Income (loss) before taxes	$	149,765	$	355,569

Three Months Ended Nine Months Ended
September 30, September 30,
(Dollars in thousands) 2017 2016 2017 2016
Underwriting gain (loss) $ (905,309 ) $ 108,123 $ (790,119 ) $ 189,974
Net investment income 73,417 64,570 206,166 196,887
Net realized capital gains (losses) 228,489 (50,063 ) 253,966 (87,275 )
Corporate expense (1,132 ) (1,835 ) (6,241 ) (6,181 )
Interest, fee and bond issue cost amortization expense (7,161 ) (8,859 ) (23,974 ) (26,576 )
Other income (expense) 1,486 (13,208 ) 21,996 (10,806 )
Income (loss) before taxes $ (610,210 ) $ 98,728 $ (338,206 ) $ 256,023

The Company produces business in the U.S. and internationally. The net income deriving from assets residing in the individual foreign countries in which the Company writes business are not identifiable in the ~~Company's~~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
	March 31,
(Dollars in thousands)	2021		2020
Canada gross written premiums	$	34,330	$	63,637

Three Months Ended Nine Months Ended
September 30, September 30,
(Dollars in thousands) 2017 2016 2017 2016
Canada gross written premiums $ 30,625 $ 35,856 $ 94,777 $ 94,072

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

13. RELATED-PARTY TRANSACTIONS

Parent

Group entered into a ~~$250,000~~$300,000 thousand long term ~~promissory~~ note agreement with ~~Holdings~~Everest Re as of December ~~31, 2014.~~17, 2019. The note will ~~mature on December 31, 2023 and has an~~pay interest annually at a rate of ~~1.72% that~~1.69 % and is ~~payable annually.~~scheduled to mature in December, 2028. This transaction is presented as a Note Receivable – Affiliated in the Consolidated Balance ~~Sheets~~Sheet of Holdings. ~~Interest~~The Company recognized interest income ~~in the amount~~related to this long term note of ~~$3,225~~$1,268 thousand and ~~$3,225~~$1,282 thousand ~~was recorded by Holdings~~ for the ~~nine~~three months ended ~~September 30, 2017,~~March 31, 2021 and ~~September 30, 2016,~~2020, respectively.

~~Group's~~

Group’s Board of Directors approved an amended share repurchase program authorizing Group and/or its subsidiary Holdings to purchase ~~Group's~~Group’s common shares through open market transactions, privately negotiated transactions or both. The table below represents the amendments to the share repurchase program for the common shares approved for repurchase.

		Common ~~Shares~~
		~~Authorized for~~ Shares
~~Amendment Date~~		~~Repurchase~~ Authorized for
Amendment Date		Repurchase
(Dollars in thousands)
09/21/2004		5,000,000
~~09/~~ 07/21/~~2004~~2008		5,000,000
~~07/21/2008~~ 02/24/2010		5,000,000
02/~~24/2010~~22/2012		5,000,000
~~02/22/2012~~ 05/15/2013		5,000,000
~~05/15/2013~~ 11/19/2014		5,000,000
~~11/19/2014~~ 05/22/2020		~~5,000,000~~ 2,000,000
		~~30,000,000~~ 32,000,000

Holdings had purchased and held 9,719,971 Common Shares of Group, which were purchased in the open market between February 2007 and March 2011.

In December, 2015, Holdings transferred the 9,719,971 Common Shares of Group, which it held as other invested assets, at fair value, valued at $1,773,214 thousand, to Preferred Holdings, an affiliated entity and subsidiary of Group, in exchange for 1,773.214 preferred shares of Preferred Holdings with a $1,000 thousand par value and ~~1.75%~~1.75% annual dividend rate. After the exchange, Holdings no longer holds any shares or has any ownership interest in Group.

Holdings has reported ~~both its Parent shares and~~the preferred shares in Preferred Holdings, as other invested assets, fair value, in the consolidated balance sheets with changes in fair value re-measurement recorded in net realized capital gains (losses) in the consolidated statements of operations and comprehensive income (loss). The following table presents the dividends received on the preferred shares of Preferred Holdings and on the Parent shares that are reported as net investment income in the consolidated statements of operations and comprehensive income (loss) for the period indicated.

	Three Months Ended
	March 31,
(Dollars in thousands)	2021		2020
Dividends received on preferred stock of affiliate	$	7,758	$	7,758

Three Months Ended Nine Months Ended
September 30, September 30,
(Dollars in thousands) 2017 2016 2017 2016
Dividends received on preferred stock of affiliate $ 7,758 $ 7,758 $ 23,274 $ 23,274

~~Affiliated Companies~~Affiliates

The Company has engaged in reinsurance transactions with Bermuda Re, Everest ~~Global Services, Inc. ("Global Services"~~International Reinsurance Ltd. (“Everest International”), ~~an affiliate~~Mt. Logan Re, Everest Insurance Company of ~~Holdings, provides centralized management~~Canada (“Everest Canada”) and ~~home office services, through a management agreement, to Holdings and other~~Lloyd’s Syndicate 2786, which are affiliated companies ~~within Holdings' consolidated structure. Services provided~~primarily driven by ~~Everest Global include executive managerial services, legal services, actuarial services, accounting services, information technology services~~enterprise risk and ~~others.~~

~~The following table presents the expenses incurred by Holdings from services provided by Everest Global for the periods indicated.~~

Three Months Ended Nine Months Ended
September 30, September 30,
(Dollars in thousands) 2017 2016 2017 2016
Expenses incurred $ 25,465 $ 21,242 $ 71,694 $ 62,701

~~Affiliates~~

capital management considerations under which business is ceded at market rates and terms.

The table below represents affiliated quota share reinsurance agreements ("whole account quota share") for all new and renewal business for the indicated coverage period:

(Dollars in thousands)
						Single
		Percent		Assuming		Occurrence		Aggregate
Coverage Period	Ceding Company	Ceded		Company	Type of Business	Limit		Limit
01/01/2010-12/31/2010	Everest Re	44.0	%	Bermuda Re	property / casualty business	150,000		325,000
01/01/2011-12/31/2011	Everest Re	50.0	%	Bermuda Re	property / casualty business	150,000		300,000
01/01/2012-12/31/2014	Everest Re	50.0	%	Bermuda Re	property / casualty business	100,000		200,000
01/01/2015-12/31/2016	Everest Re	50.0	%	Bermuda Re	property / casualty business	162,500		325,000
01/01/2017-12/31/2017	Everest Re	60.0	%	Bermuda Re	property / casualty business	219,000		438,000
01/01/2010-12/31/2010	Everest Re- Canadian Branch	60.0	%	Bermuda Re	property business	350,000	⁽¹⁾	-
01/01/2011-12/31/2011	Everest Re- Canadian Branch	60.0	%	Bermuda Re	property business	350,000	⁽¹⁾	-
01/01/2012-12/31/2012	Everest Re- Canadian Branch	75.0	%	Bermuda Re	property / casualty business	206,250	⁽¹⁾	412,500	⁽¹⁾
01/01/2013-12/31/2013	Everest Re- Canadian Branch	75.0	%	Bermuda Re	property / casualty business	150,000	⁽¹⁾	412,500	⁽¹⁾
01/01/2014-12/31/2017	Everest Re- Canadian Branch	75.0	%	Bermuda Re	property / casualty business	262,500	⁽¹⁾	412,500	⁽¹⁾
01/01/2012-12/31/2017	Everest Canada	80.0	%	Everest Re- Canadian Branch	property business	-		-
01/01/2020	Everest International Assurance	100.0	%	Bermuda Re	life business	-		-

(1) Amounts shown are Canadian dollars.

(Dollars in thousands)
Percent Assuming Single Aggregate
Coverage Period Ceding Company Ceded Company Type of Business Occurrence Limit Limit

01/01/2010-12/31/2010 Everest Re 44.0% Bermuda Re property / casualty business 150,000 325,000

01/01/2011-12/31/2011 Everest Re 50.0% Bermuda Re property / casualty business 150,000 300,000

01/01/2012-12/31/2014 Everest Re 50.0% Bermuda Re property / casualty business 100,000 200,000

01/01/2015-12/31/2016 Everest Re 50.0% Bermuda Re property / casualty business 162,500 325,000

01/01/2017 Everest Re 60.0% Bermuda Re property / casualty business 219,000 438,000

01/01/2010-12/31/2010 Everest Re- Canadian Branch 60.0% Bermuda Re property business 350,000
⁽¹⁾
-
01/01/2011-12/31/2011 Everest Re- Canadian Branch 60.0% Bermuda Re property business 350,000
⁽¹⁾
-
01/01/2012-12/31/2012 Everest Re- Canadian Branch 75.0% Bermuda Re property / casualty business 206,250
⁽¹⁾
412,500
⁽¹⁾
01/01/2013-12/31/2013 Everest Re- Canadian Branch 75.0% Bermuda Re property / casualty business 150,000
⁽¹⁾
412,500
⁽¹⁾
01/01/2014 Everest Re- Canadian Branch 75.0% Bermuda Re property / casualty business 262,500
⁽¹⁾
412,500
⁽¹⁾

01/01/2012 Everest Canada 80.0% Everest Re- Canadian Branch property business - -

⁽¹⁾Amounts shown are Canadian dollars.

Effective January 1, 2018, Everest Re entered into a twelve month whole account aggregate stop loss reinsurance contract (“stop loss agreement”) with Bermuda Re. The stop loss agreement provides coverage for ultimate net losses on applicable net earned premiums above a retention level, subject to certain other coverage limits and conditions. The stop loss agreement was most recently renewed effective January 1, 2021.

In addition, Everest Re entered into a property catastrophe excess of loss reinsurance contract with Bermuda Re, effective January 1, 2019. The contract provides $100,000 thousand of reinsurance coverage for property catastrophe losses above certain attachment points. This agreement expired on December 31, 2019 and was not renewed.

The table below represents loss portfolio transfer (“LPT”) reinsurance agreements whereby net insurance exposures and reserves were transferred to an affiliate.

(Dollars in thousands)
Effective	Transferring	Assuming		% of Business or		Covered Period
Date	Company	Company		Amount of Transfer		of Transfer
10/01/2001	Everest Re (Belgium Branch)	Bermuda Re		100	%	All years
10/01/2008	Everest Re	Bermuda Re	$	747,022		01/01/2002-12/31/2007
12/31/2017	Everest Re	Bermuda Re	$	970,000		All years

Effective Transferring Assuming % of Business or Covered Period
Date Company Company Amount of Transfer of Transfer

09/19/2000 Mt. McKinley Bermuda Re 100 % All years
10/01/2001 Everest Re (Belgium Branch) Bermuda Re 100 % All years
10/01/2008 Everest Re Bermuda Re $ 747,022 01/01/2002-12/31/2007

On ~~July 13, 2015,~~December 31, 2017, the Company ~~sold Mt. McKinley~~entered into a LPT agreement with Bermuda Re. The LPT agreement covers subject loss reserves of $2,336,242 thousand for accident years 2017 and prior. As a result of the LPT agreement, the Company transferred $1,000,000 thousand of cash and fixed maturity securities and transferred $970,000 thousand of loss reserves to ~~Clearwater Insurance Company, a Delaware domiciled insurance company.~~Bermuda Re. As part of ~~that date, Mt. McKinley is no longer deemed~~the LPT agreement, Bermuda Re will provide an ~~affiliated company or related party.~~additional $500,000 thousand of adverse development coverage on the subject loss reserves.

The following tables summarize the premiums and losses ceded by the Company to Bermuda Re and Everest International, respectively, and premiums and losses assumed by the Company from Everest Canada and ~~Lloyd's~~Lloyd’s syndicate 2786 for the periods indicated:

	Three Months Ended
Bermuda Re	March 31,
(Dollars in thousands)	2021		2020
Ceded written premiums	$	70,798	$	30,500
Ceded earned premiums		70,877		30,500
Ceded losses and LAE		(30,150)		(22,159)

	Three Months Ended
Everest International	March 31,
(Dollars in thousands)	2021		2020
Ceded written premiums	$	-	$	-
Ceded earned premiums		-		-
Ceded losses and LAE		-		22

Three Months Ended Nine Months Ended
Bermuda Re
September 30, September 30,
(Dollars in thousands) 2017 2016 2017 2016
Ceded written premiums $ 911,866 $ 685,798 $ 2,228,538 $ 1,746,976
Ceded earned premiums 796,194 585,993 2,005,965 1,718,295
Ceded losses and LAE (a) 650,460 344,789 1,379,164 1,039,932

	Three Months Ended
Everest Canada	March 31,
(Dollars in thousands)	2021		2020
Assumed written premiums	$	-	$	236
Assumed earned premiums		-		39
Assumed losses and LAE		59		1,598

Three Months Ended Nine Months Ended
Everest International
September 30, September 30,
(Dollars in thousands) 2017 2016 2017 2016
Ceded written premiums $ 21 $ (5 ) $ (4 ) $ 26
Ceded earned premiums 38 (3 ) 13 36
Ceded losses and LAE (13 ) 479 (631 ) 1,377

	Three Months Ended
Lloyd's Syndicate 2786	March 31,
(Dollars in thousands)	2021		2020
Assumed written premiums	$	599	$	(3,031)
Assumed earned premiums		529		(2,822)
Assumed losses and LAE		(1,582)		814

Three Months Ended Nine Months Ended
Everest Canada
September 30, September 30,
(Dollars in thousands) 2017 2016 2017 2016
Assumed written premiums $ 13,028 $ 12,667 $ 39,008 $ 39,094
Assumed earned premiums 13,464 11,611 38,201 34,740
Assumed losses and LAE 7,448 13,287 21,418 34,714

Three Months Ended Nine Months Ended
Lloyd's Syndicate 2786
September 30, September 30,
(Dollars in thousands) 2017 2016 2017 2016
Assumed written premiums $ 15,984 $ 351 $ 34,069 $ 890
Assumed earned premiums 15,042 173 31,766 289
Assumed losses and LAE 7,893 - 16,157 -

Everest Re sold net assets of its UK branch to Bermuda Re and provided Bermuda Re with a reserve indemnity agreement allowing for indemnity payments of up to 90% of ₤25.0 million of the excess of 2002 and prior reserves, provided that any recognition of profit from the reserves for 2002 and prior underwriting years is taken into account.

Effective February 27, 2013, Group established a new subsidiary, Mt. Logan Re, which is a Class 3 insurer based in Bermuda. Effective July 1, 2013, Mt. Logan Re established separate segregated accounts for its business activity, which will invest in a diversified set of catastrophe exposures.

The following table summarizes the premiums and losses that are ceded by the Company to Mt. Logan Re segregated accounts and assumed by the Company from Mt. Logan Re segregated accounts.

	Three Months Ended
Mt. Logan Re Segregated Accounts	March 31,
(Dollars in thousands)	2021		2020
Ceded written premiums	$	81,371	$	95,350
Ceded earned premiums		65,988		79,855
Ceded losses and LAE		72,994		37,465
Assumed written premiums		-		-
Assumed earned premiums		-		-
Assumed losses and LAE		-		-

Three Months Ended Nine Months Ended
Mt. Logan Re Segregated Accounts
September 30, September 30,
(Dollars in thousands) 2017 2016 2017 2016
Ceded written premiums $ 54,057 $ 57,911 $ 131,939 $ 128,292
Ceded earned premiums 46,696 44,548 131,361 118,776
Ceded losses and LAE 180,540 7,420 223,973 32,750

Assumed written premiums $ 2,587 $ 5,032 $ 9,082 $ 11,666
Assumed earned premiums 2,587 5,032 9,082 11,666
Assumed losses and LAE - - - -

14.RETIREMENT BENEFITS

The Company maintains both qualified and non-qualified defined benefit pension plans ~~and a retiree health plan~~ for its U.S. employees employed prior to April 1, 2010. Generally, the Company computes the benefits based on average earnings over a period prescribed by the plans and credited length of service. The Company’s non-qualified defined benefit pension plan provided compensating pension benefits for participants whose benefits have been curtailed under the qualified plan due to Internal Revenue Code limitations. Effective January 1, 2018, participants of the Company’s non-qualified defined benefit pension plan may no longer accrue additional service benefits.

Net periodic benefit cost for U.S. employees included the following components for the periods indicated:

Pension Benefits	Three Months Ended
	March 31,
(Dollars in thousands)	2021		2020
Service cost	$	2,738	$	4,011
Interest cost		1,999		2,483
Expected return on plan assets		(5,580)		(5,197)
Amortization of net (income) loss		2,730		1,213
Net periodic benefit cost	$	1,887	$	2,510

Other Benefits	Three Months Ended
	March 31,
(Dollars in thousands)	2021		2020
Service cost	$	281	$	141
Interest cost		181		215
Amortization of prior service cost		(144)		(48)
Net periodic benefit cost	$	318	$	308

(Some amounts may not reconcile due to rounding.)

Pension Benefits
Three Months Ended Nine Months Ended
September 30, September 30,
(Dollars in thousands) 2017 2016 2017 2016
Service cost $ 2,737 $ 2,731 $ 9,335 $ 8,524
Interest cost 2,509 2,371 7,060 7,093
Expected return on plan assets (3,263 ) (2,789 ) (9,572 ) (7,757 )
Amortization of net (income) loss 2,091 1,984 8,172 6,012
Net periodic benefit cost $ 4,074 $ 4,297 $ 14,995 $ 13,872

Other Benefits
Three Months Ended Nine Months Ended
September 30, September 30,
(Dollars in thousands) 2017 2016 2017 2016
Service cost $ 392 $ 354 $ 1,273 $ 1,230
Interest cost 295 252 793 844
Amortization of prior service cost (33 ) (33 ) (98 ) (33 )
Amortization of net (income) loss 48 - 199 96
Net periodic benefit cost $ 703 $ 573 $ 2,167 $ 2,137

(Some amounts may not reconcile due to rounding.)

The service cost component of net periodic benefit costs is included within other underwriting expenses on the consolidated statement of operations and comprehensive income (loss). In accordance with ASU 2017-07, other staff compensation costs are also primarily recorded within this line item.

The Company ~~contributed $10,000 thousand~~did no t make any contributions to the qualified pension benefit plan for the three ~~and nine~~ months ended ~~September 30, 2017. The Company contributed $30,000 thousand to the qualified pension benefit plan for the three~~March 31, 2021 and ~~nine months ended September 30, 2016.~~

2020, respectively.

15. INCOME TAXES

The Company is domiciled in the United States and has subsidiaries domiciled within the United States with significant branches in Canada and Singapore. The ~~Company's~~Company’s non-U.S. branches are subject to income taxation at varying rates in their respective domiciles.

The Company generally applies the estimated annual effective tax rate approach for calculating its tax provision for interim periods as prescribed by ASC 740-270, Interim Reporting. Under the estimated annual effective tax rate approach, the estimated annual effective tax rate is applied to the interim year-to-date pre-tax income/loss to determine the income tax expense or benefit for the year-to-date period. If the annual effective tax rate approach produces a year-to-date tax benefit which exceeds the amount which is estimated to be recoverable for the full year, then the tax benefit for the interim reporting period will be limited as

~~prescribed under ASC 740-270 to the estimated recoverable based on the year-to-date result.~~ The tax expense or benefit for the quarter represents the difference between the year-to-date tax expense or benefit for the current year-to-date period less such amount for the immediately preceding year-to-date period. Management considers the impact of all known events in its estimation of the ~~Company's~~Company’s annual pre-tax income/loss and effective tax rate.

~~16. DISPOSITION~~

On August 24, 2016 the Company sold Heartland, its crop Managing General Agent to CGB for $49,000 thousand. The sale agreement includes a provision for a long term strategic reinsurance relationship with CGB. The Company has recognized an after-tax loss on the sale of Heartland of $12,942 thousand. Under the terms of the reinsurance arrangement, there has not been a material fluctuation in the level of crop business, although it has been reflected as reinsurance rather than insurance.

~~17.~~

16 . SUBSEQUENT EVENTS

The Company has evaluated known recognized and non-recognized subsequent events. In October 2017, Hurricane Nate impacted the Southern United States and Central America and Hurricane Ophelia impacted Ireland, the United Kingdom and Northern Europe. Also, in October 2017, a number of wildfires affected California. DueThe Company does not have any subsequent events to the recentness of these events, the Company is unable to estimate the amount of losses related to Hurricane Nate, Hurricane Ophelia or the California wildfires at this time. However, the Company anticipates that these events will adversely impact the fourth quarter 2017 financial results.report.

ITEM 2.~~MANAGEMENT'S~~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,~~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. 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 ~~continued to be very competitive, particularly in the property catastrophe and casualty reinsurance lines of business.~~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, ~~provide~~provided capital markets with access to insurance and reinsurance risk exposure. The capital markets demand for these products iswas being primarily driven by ~~the current~~a low interest ~~rate~~ environment and the desire to achieve greater risk diversification and potentially higher returns on their investments. This increased competition iswas generally having a negative impact on rates, terms and conditions; however, the impact varies widely by market and coverage.

~~Rates tend~~

The industry continues to ~~fluctuate by specific region~~deal with the impacts of a global pandemic, COVID-19. Globally, many countries mandated that their citizens remain at home and ~~products, particularly areas recently impacted by large catastrophic events.~~ many non-essential businesses have continued to be physically closed. We activated our operational resiliency plan across our global footprint and all of our critical operations are functioning effectively from remote locations. We continue to service and meet the needs of our clients while ensuring the safety and health of our employees and customers.

There ~~was an unprecedented series~~continues to be a negative impact on industry underwriting results from the pandemic. These impacts vary significantly from country to country depending on the rate of catastrophes in the third quarter of 2017 with Hurricanes Harvey, Irma and Maria, as well as a significant earthquake in Mexico City. Additional catastrophe events occurred in October 2017 with Hurricanes Nate and Opheliainfections and the ~~wild fires in California. The total industry losses for all of these events could exceed $100 billion. This is~~corresponding mandated business restrictions.

Prior to the second consecutive year with higher than average catastrophe losses. During 2016, catastrophe losses included the Fort McMurray Canadian wildfire, Hurricane Matthew which affected a large area of the Caribbean and southeastern United States, storms and an earthquake in Ecuador. There are industry reports that the catastrophe losses for 2016 reached their highest level in four years and the United States experienced the most loss events since 1980 and the highest total losses since 2012. While the future impact on market conditions from these catastrophes cannot be determined at this time,pandemic, there was ~~some firming in the markets impacted by the 2016 catastrophes and as catastrophe losses continue to increase in 2017, there is~~ a growing industry consensus that there ~~will be a general~~was some firming of ~~the~~ (re)insurance ~~markets resulting~~rates for the areas impacted by the recent catastrophes. The increased frequency of catastrophe losses in ~~rate increases, not only for catastrophe exposures, but~~2020 appears to be further pressuring the increase of rates. Rates also ~~potentially for~~appear to be firming in most ~~other lines of business.~~

Commencing in 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, 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 will be the impact on pricing conditions 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 ~~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.~~

Overall, we believe that given our size, strong ratings, distribution system, reputation, expertise and capital market vehicle activity the current marketplace conditions provide profit opportunities. Wepositioned to continue to ~~employ~~service our ~~strategy~~clients. Our capital position remains a source of ~~targeting business that offers the greatest profit potential, while maintaining balance~~strength, with high quality invested assets, significant liquidity and ~~diversification in our overall portfolio.~~a low operating expense ratio. Our diversified global platform with its broad mix of products, distribution and geography is resilient.

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 ~~stockholder's~~stockholder’s equity for the periods indicated:

	Three Months Ended				Percentage
	March 31,				Increase/
(Dollars in millions)	2021		2020		(Decrease)
Gross written premiums	$	2,133.3	$	1,975.0	8.0%
Net written premiums		1,765.3		1,638.7	7.7%

REVENUES:
Premiums earned	$	1,696.9	$	1,494.0	13.6%
Net investment income		147.7		74.2	99.1%
Net realized capital gains (losses)		135.0		256.9	-47.4%
Other income (expense)		4.0		(4.5)	-188.5%
Total revenues		1,983.6		1,820.6	9.0%

CLAIMS AND EXPENSES:
Incurred losses and loss adjustment expenses		1,354.1		1,029.5	31.5%
Commission, brokerage, taxes and fees		349.9		323.1	8.3%
Other underwriting expenses		109.8		101.2	8.5%
Corporate expense		4.6		3.7	23.1%
Interest, fee and bond issue cost amortization expense		15.5		7.5	108.2%
Total claims and expenses		1,833.8		1,465.0	25.2%

INCOME (LOSS) BEFORE TAXES		149.8		355.6	-57.9%
Income tax expense (benefit)		30.3		38.9	-22.1%
NET INCOME (LOSS)	$	119.4	$	316.6	-62.3%

RATIOS:					Point Change
Loss ratio		79.8%		68.9%	10.9
Commission and brokerage ratio		20.6%		21.6%	(1.0)
Other underwriting expense ratio		6.5%		6.8%	(0.3)
Combined ratio		106.9%		97.3%	9.6

	At		At		Percentage
	March 31,		December 31,		Increase/
(Dollars in millions)	2021		2020		(Decrease)
Balance sheet data:
Total investments and cash	$	16,482.6	$	15,910.2	3.6%
Total assets		24,309.0		23,717.1	2.5%
Loss and loss adjustment expense reserves		12,184.2		11,655.0	4.5%
Total debt		1,910.6		1,910.4	0.0%
Total liabilities		17,879.2		17,302.8	3.3%
Stockholder's equity		6,429.8		6,414.3	0.2%

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

Three Months Ended Percentage Nine Months Ended Percentage
September 30, Increase/ September 30, Increase/
(Dollars in millions) 2017 2016 (Decrease) 2017 2016 (Decrease)
Gross written premiums $ 1,701.1 $ 1,505.9 13.0 % $ 4,289.1 $ 3,813.6 12.5 %
Net written premiums 570.8 622.6 -8.3 % 1,437.5 1,527.9 -5.9 %

REVENUES:
Premiums earned $ 518.5 $ 556.7 -6.9 % $ 1,457.8 $ 1,527.4 -4.6 %
Net investment income 73.4 64.6 13.7 % 206.2 196.9 4.7 %
Net realized capital gains (losses) 228.5 (50.1 )
NM
254.0 (87.3 )
NM
Other income (expense) 1.5 (13.2 ) -111.3 % 22.0 (10.8 ) NM
Total revenues 821.9 558.0 47.3 % 1,939.9 1,626.2 19.3 %

CLAIMS AND EXPENSES:
Incurred losses and loss adjustment expenses 1,331.6 301.6 NM 1,918.5 936.2 104.9 %
Commission, brokerage, taxes and fees 34.5 82.8 -58.3 % 147.6 219.6 -32.8 %
Other underwriting expenses 57.7 64.1 -10.0 % 181.8 181.7 0.1 %
Corporate expense 1.1 1.8 -38.3 % 6.2 6.2 1.0 %
Interest, fee and bond issue cost amortization expense 7.2 8.9 -19.2 % 24.0 26.6 -9.8 %
Total claims and expenses 1,432.1 459.2 211.9 % 2,278.1 1,370.2 66.3 %

INCOME (LOSS) BEFORE TAXES (610.2 ) 98.7
NM
(338.2 ) 256.0 -232.1 %
Income tax expense (benefit) (220.5 ) 22.4 NM (153.3 ) 69.4 NM
NET INCOME (LOSS) $ (389.7 ) $ 76.3
NM
$ (184.9 ) $ 186.7 -199.0 %

RATIOS: Point Change Point Change
Loss ratio 256.8 % 54.2 % 202.6 131.6 % 61.3 % 70.3
Commission and brokerage ratio 6.7 % 14.9 % (8.2 ) 10.1 % 14.4 % (4.3 )
Other underwriting expense ratio 11.1 % 11.5 % (0.4 ) 12.5 % 11.9 % 0.6
Combined ratio 274.6 % 80.6 % 194.0 154.2 % 87.6 % 66.6

At At Percentage
September 30, December 31, Increase/
(Dollars in millions) 2017 2016 (Decrease)
Balance sheet data:
Total investments and cash $ 10,231.7 $ 9,842.7 4.0 %
Total assets 19,143.4 17,083.4 12.1 %
Loss and loss adjustment expense reserves 9,969.1 8,331.3 19.7 %
Total debt 633.3 633.2 0.0 %
Total liabilities 13,975.7 11,784.9 18.6 %
Stockholder's equity 5,167.6 5,298.6 -2.5 %

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

35Revenues.

~~Revenues.~~

Premiums. Gross written premiums increased by ~~13.0%~~8.0% to ~~$1,701.1~~$2,133.3 million for the three months March 31, 2021, compared to $1,975.0 million for the three months ended ~~September~~ ~~30, 2017, compared to $1,505.9 million for the three months ended~~ ~~September~~ ~~30, 2016,~~March 31, 2020, reflecting a ~~$263.6~~$111.9 million, or ~~26.1%~~8.6%, increase in our reinsurance business and a ~~$68.4~~$46.5 million, or 13.7%, decrease in our insurance business. The increase in reinsurance premiums was mainly due to the new crop reinsurance transactions, increases in financial lines of business and the influx of reinstatement premiums related to multiple catastrophe events in the third quarter. The decline in insurance premiums was due to the sale of Heartland Crop Insurance, Inc. ("Heartland") which accounted for $162.4 million of gross written premium in the third quarter of 2016. Excluding the impact of Heartland, insurance premiums rose by $94.0 million due to increased production in many lines of business, including retail casualty, surety and accident and health. Gross written premiums increased by 12.5% to $4,289.1 million for the nine months ended ~~September~~ ~~30, 2017, compared to $3,813.6 million for the nine months ended~~ ~~September~~ ~~30, 2016, reflecting a $400.7 million, or 15.8%, increase in our reinsurance business and a $74.7 million, or 5.9%~~7.0%, increase in our insurance business. The increase in reinsurance premiums was mainly due to ~~the new crop reinsurance transactions,~~ increases in ~~treaty~~ property ~~and financial lines~~pro rata business, property excess of loss business and ~~the influx~~casualty excess of ~~reinstatement premiums related to multiple catastrophe events in the third quarter.~~loss writings. The rise in insurance premiums was primarily due to increases in ~~many lines of~~specialty casualty business, ~~including retail casualty, accident~~property business and ~~health and surety,~~professional liability business, partially offset by ~~the impact of the sale of Heartland.~~a decline in workers’ compensation business.

Net written premiums ~~decreased~~increased by ~~8.3%~~7.7% to ~~$570.8~~$1,765.3 million for the three months ended ~~September~~ ~~30, 2017,~~March 31, 2021, compared to ~~$622.6~~$1,638.7 million for the three months ended ~~September~~ ~~30, 2016, and decreased by 5.9% to $1,437.5 million for the nine months ended~~ ~~September~~ ~~30, 2017, compared to $1,527.9 million for the nine months ended~~ ~~September~~ ~~30, 2016. The difference between~~March 31, 2020, which is consistent with the change in gross written ~~premiums compared to the change in net written premiums is primarily due to varying utilization of reinsurance mainly related to affiliated quota share contracts.~~premiums. Premiums earned ~~decreased~~increased by ~~6.9%~~13.6% to ~~$518.5~~$1,696.9 million for the three months ended ~~September~~ ~~30, 2017,~~March 31, 2021, compared to ~~$556.7~~$1,494.0 million for the three months ended ~~September~~ ~~30, 2016 and decreased by 4.6% to $1,457.8 million for the nine months ended~~ ~~September~~ ~~30, 2017, compared to $1,527.4 million for the nine months ended~~ ~~September~~ ~~30, 2016.~~March 31, 2020. 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 increased ~~13.7%~~99.1% to ~~$73.4~~$147.7 million for the three months ended ~~September~~ ~~30, 2017~~March 31, 2021 compared with net investment income of ~~$64.6~~$74.2 million for the three months ended ~~September~~ ~~30, 2016 and increased 4.7% to $206.2 million for the nine months ended~~ ~~September~~ ~~30, 2017 compared with net investment income of $196.9 million for the nine months ended~~ ~~September~~ ~~30, 2016.~~March 31, 2020. Net pre-tax investment income as a percentage of average invested assets was ~~3.0%~~3.8% and 2.6% for the three months ended March 31, 2021 and 2020, respectively. The increases in both income and yield were ~~September~~primarily the result of an increase in limited partnership income and higher income from our fixed income portfolio.

Net Realized Capital Gains (Losses). ~~30, 2017, compared to 2.7%~~Net realized capital gains were $135.0 million and $256.9 million for the three months ended ~~September~~March 31, 2021 ~~30, 2016~~ and ~~remained flat at 2.8% for the nine months ended~~ ~~September~~ 30, 2017 and 2016. The increases in income for the three and nine months ended September 30, 2017 were primarily the result of higher income from our limited partnerships and higher income from the growing fixed income portfolio, partially offset by lower dividend income from our equity portfolio.

~~Net Realized Capital Gains (Losses).~~ ~~Net realized capital gains were $228.5 million and net realized capital losses were $50.1 million~~ ~~for the three months ended~~ ~~September~~ ~~30,~~ ~~2017 and 2016,~~2020, respectively. The net realized capital gains of ~~$228.5~~$135.0 million for the three months ended March 31, 2021, were comprised of ~~$227.5~~$130.6 million of gains from fair value re-measurements ~~on equity securities~~ and ~~other invested assets and $2.4~~$11.5 million of gains from sales ~~on our fixed maturity and equity securities,~~of investments, partially offset by ~~$1.5~~$7.1 million ~~of other-than-temporary impairments. The~~in net ~~realized capital losses of $50.1 million~~ allowances for ~~the three months ended~~ credit losses.~~September~~ ~~30, 2016~~ ~~were~~ ~~comprised of~~ $~~30.9~~ million of losses from fair value re-measurements on fixed maturity securities, equity securities and other invested assets, net realized capital losses of $28.0 million from the sale of our Heartland subsidiary and $0.8 million of other-than-temporary impairments, partially offset by $~~9.6~~ ~~million of gains from sales on our fixed maturity and equity securities.~~

~~Net realized capital gains were $254.0 million and net realized capital losses were $87.3 million~~ ~~for the nine months ended September 30,~~ ~~2017 and 2016, respectively.~~ The net realized capital gains of ~~$254.0~~$256.9 million in 2020 were comprised of $~~237.8~~319.7 million of gains from fair value re-measurements, ~~on equity securities and other invested assets and $20.3~~ ~~million of gains from sales on our fixed maturity and equity securities,~~ partially offset by ~~$4.2 million of other-than-temporary impairments. The net realized capital losses of $87.3 million~~ ~~for the nine months ended September 30, 2016~~ ~~million were~~ ~~comprised of~~ ~~net realized capital losses of $28.0 million from the sale of our Heartland subsidiary, $25.2 million of other-than-temporary impairments, $22.4~~$50.7 million of losses from sales ~~on our fixed maturity~~of investments and ~~equity securities and $11.7~~$12.1 million of ~~losses from fair value re-measurements on fixed maturity securities, equity securities and other invested assets.~~

allowances for credit losses.

Other Income (Expense). We recorded other income of ~~$1.5~~$4.0 million and ~~$22.0 million~~ ~~for the three and nine months ended September 30,~~ ~~2017, respectively. We recorded~~ other expense of $~~13.2~~ ~~million and $10.8~~$4.5 million for the three ~~and nine~~ months ended ~~September 30, 2016, respectively.~~March 31, 2021 and 2020, respectively. The ~~changes were~~change was primarily the result of fluctuations in foreign currency exchange rates.

Claims and Expenses.

Incurred Losses and Loss Adjustment Expenses. The following table presents our incurred losses and loss adjustment expenses ~~("LAE"~~(“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
2021
Attritional	$	1,078.4	63.6%		$	(1.0)	-0.1%		$	1,077.4	63.5%
Catastrophes		260.5	15.4%			16.2	1.0%			276.7	16.4%
Total	$	1,338.9	79.0%		$	15.2	0.9%		$	1,354.1	79.8%
2020
Attritional	$	996.4	66.7%		$	(1.1)	-0.1%		$	995.3	66.6%
Catastrophes		30.0	2.0%			4.2	0.3%			34.2	2.3%
Total	$	1,026.4	68.7%		$	3.1	0.2%		$	1,029.5	68.9%
Variance 2021/2020
Attritional	$	82.0	(3.1)	pts	$	0.1	-	pts	$	82.1	(3.1)	pts
Catastrophes		230.5	13.4	pts		12.0	0.7	pts		242.5	14.1	pts
Total	$	312.5	10.3	pts	$	12.1	0.7	pts	$	324.6	10.9	pts

Three Months Ended September 30,
Current Ratio %/ Prior Ratio %/ Total Ratio %/
(Dollars in millions) Year Pt Change Years Pt Change Incurred Pt Change
2017

Attritional $ 325.6 62.8 % $ (0.9 ) -0.2 % $ 324.7 62.6 %
Catastrophes 1,007.8 194.4 % (0.9 ) -0.2 % 1,006.9 194.2 %
Total $ 1,333.4 257.2 % $ (1.8 ) -0.4 % $ 1,331.6 256.8 %

2016

Attritional $ 300.4 54.0 % $ 0.1 0.0 % $ 300.6 54.0 %
Catastrophes 20.9 3.8 % (19.8 ) -3.6 % 1.0 0.2 %
Total $ 321.3 57.8 % $ (19.7 ) -3.6 % $ 301.6 54.2 %

Variance 2017/2016

Attritional $ 25.2 8.8 pts $ (1.0 ) (0.2 ) pts $ 24.1 8.6 pts
Catastrophes 986.9 190.6 pts 18.9 3.4 pts 1,005.9 194.0 pts
Total $ 1,012.1 199.4 pts $ 17.9 3.2 pts $ 1,030.0 202.6 pts

Nine Months Ended September 30,
Current Ratio %/ Prior Ratio %/ Total Ratio %/
(Dollars in millions) Year Pt Change Years Pt Change Incurred Pt Change
2017

Attritional $ 878.8 60.3 % $ 4.4 0.3 % $ 883.2 60.6 %
Catastrophes 1,039.3 71.3 % (3.9 ) -0.3 % 1,035.3 71.0 %
Total $ 1,918.1 131.6 % $ 0.5 0.0 % $ 1,918.5 131.6 %

2016

Attritional $ 894.7 58.5 % $ 0.9 0.1 % $ 895.6 58.6 %
Catastrophes 77.6 5.1 % (37.0 ) -2.4 % 40.6 2.7 %
Total $ 972.3 63.6 % $ (36.1 ) -2.3 % $ 936.2 61.3 %

Variance 2017/2016

Attritional $ (15.9 ) 1.8 pts $ 3.5 0.2 pts $ (12.4 ) 2.0 pts
Catastrophes 961.7 66.2 pts 33.1 2.1 pts 994.7 68.3 pts
Total $ 945.8 68.0 pts $ 36.6 2.3 pts $ 982.3 70.3 pts

(Some amounts may not reconcile due to rounding.)

Incurred losses and LAE increased by 31.5% to ~~$1,331.6~~$1,354.1 million for the three months ended ~~September 30, 2017~~March 31, 2021 compared to ~~$301.6~~$1,029.5 million for the three months ended ~~September 30, 2016,~~March 31, 2020, primarily due to an increase of ~~$986.9~~$230.5 million in current year catastrophe losses and an increase of $82.0 million in current year attritional losses, ~~of $25.2 million and $19.8 million of favorable development on prior years catastrophe losses in 2016, primarily~~mainly related ~~to the 2011 Japan earthquake, which did not recur in 2017. The increase in attritional losses was primarily due~~ to the impact of ~~changes~~the increase in ~~affiliated quota share contracts and changes~~premiums earned partially offset by $35.7 million of COVID-19 losses incurred in ~~the mix of business.~~2020. The current year catastrophe losses of ~~$1,007.8~~$260.5 million for the three months ended ~~September~~ ~~30,~~ ~~2017~~March 31, 2021 related to ~~Hurricane Irma~~Texas winter storms ($~~476.2~~253.0 million), ~~Hurricane Maria ($318.9 million), Hurricane Harvey ($180.7 million)~~ and the ~~Mexico City earthquake~~2021 Aussie floods ($~~32.1~~7.5 million). The current year catastrophe losses of ~~$20.9~~$30.0 million for the three months ended ~~September 30, 2016 were~~March 31, 2020 related to ~~Hurricane Hermine~~the Nashville tornadoes ($~~6.8~~10.0 million), ~~2016 U.S. Storms~~Australia East Coast storms ($~~6.6 million), the Fort McMurray Canada wildfire ($5.0 million), the Taiwan earthquake ($2.3~~10.0 million) and the ~~Ecuador earthquake ($0.2 million).~~

Incurred losses and LAE increased by 104.9% to $1,918.5 million for the nine months ended September 30, 2017 compared to $936.2 million for the nine months ended September 30, 2016, primarily due to an increase of $961.7 million in current year catastrophe losses and favorable development of $37.0 million on prior year catastrophe losses in 2016, primarily related to the 2011 Japan earthquake, which did not recur in 2017. The current year catastrophe losses of $1,039.3 million ~~for the~~ ~~nine months ended September 30~~, ~~2017 related to Hurricane Irma ($476.2 million), Hurricane Maria ($318.9 million), Hurricane Harvey ($180.7 million), the Mexico City earthquake ($32.1 million), the South Africa Knysna~~Australia fires ($10.0 million), Cyclone Debbie in Australia ($8.3 million), the Peru storms ($6.9 million) and the 2017 US Midwest storms ($6.2 million). The current year catastrophe losses of $77.6 million for the nine months ended September 30, 2016 were related to the Fort McMurray Canada wildfire ($26.9 million), the 2016 U.S. Storms ($24.9 million), the Ecuador earthquake ($11.6 million), the 2016 Taiwan earthquake ($7.5 million) and Hurricane Hermine ($6.8 million).

Commission, Brokerage, Taxes and Fees. Commission, brokerage, taxes and fees de~~creased by 58.3%~~increased to ~~$34.5 million~~ ~~for the three months ended~~ ~~September~~ ~~30,~~ ~~2017 compared to~~ ~~$82.8~~$349.9 million for the three months ended ~~September~~March 31, 2021 ~~30,~~ ~~2016.~~ ~~Commission, brokerage, taxes and fees decreased by 32.8% to $147.6 million~~ ~~for the nine months ended September 30,~~ ~~2017~~ compared to ~~$219.6~~$323.1 million for the ~~nine~~three months ended ~~September 30,~~ ~~2016.~~March 31, 2020. The ~~decreases were primarily~~increase was mainly due to the impact of the ~~decrease~~increase in premiums earned and ~~the impact of~~changes in affiliated ~~quota share contracts.~~reinsurance agreements.

Other Underwriting Expenses. Other underwriting expenses ~~were $57.7 million~~ ~~and~~ ~~$64.1~~increased to $109.8 million for the three months ended ~~September 30, 2017 and September 30, 2016, respectively. The decrease~~March 31, 2021 compared to $101.2 million for the three ~~month period was primarily~~months ended March 31, 2020. These increases were mainly due to ~~lower variable compensation costs. Other underwriting expenses were flat at $181.8 million~~changes in affiliated reinsurance agreements, impact of increase in premiums earned and costs incurred to support the expansion of the insurance business. ~~and~~

~~$181.7 million for the nine months ended September 30, 2017 and September 30, 2016, respectively.~~

Corporate Expenses. Corporate expenses, which are general operating expenses that are not allocated to segments, ~~decreased~~have increased slightly to ~~$1.1~~$4.6 million from ~~$1.8~~ $3.7 million for the three months ended ~~September~~ ~~30,~~ ~~2017~~March 31, 2021 and ~~2016, respectively, and~~2020, respectively. The increases were ~~flat at $6.2 million~~ mainly due to higher compensation costs.~~for the nine months ended September 30,~~

~~2017 and 2016, respectively.~~

Interest, Fees and Bond Issue Cost Amortization Expense. Interest, fees and other bond amortization ~~were $7.2~~expense was $15.5 million and ~~$8.9~~$7.5 million for the three months ended ~~September~~ ~~30,~~ ~~2017~~March 31, 2021 and ~~2016, respectively. Interest, fees and other bond amortization were $24.0 million and $26.6 million~~ ~~for the nine months ended September 30,~~ ~~2017 and 2016,~~2020, respectively. The ~~decreases~~variance in expense ~~for both the three and nine month periods were~~was primarily due to interest expense on the ~~conversion~~$1,000.0 million of senior notes issued in October 2020 and the movement in the floating interest rate related to the long term subordinated notes, ~~from a fixed rate of 6.6% to a floating rate,~~ which is reset quarterly per the note agreement. The floating rate was ~~3.70%~~2.6% as of ~~September 30, 2017.~~March 31, 2021 compared to 4.1% as of March 31, 2020.

Income Tax Expense (Benefit). We had an income ~~tax benefit of $220.5 million~~ ~~and income~~ tax expense of ~~$22.4~~$30.3 million and $38.9 million for the three months ended ~~September~~ ~~30,~~ ~~2017~~March 31, 2021 and ~~2016,~~2020, respectively. ~~We had an income~~Income tax benefit ~~of $153.3 million~~ ~~and income tax expense of~~ ~~$69.4 million for the nine months ended September 30,~~ ~~2017 and 2016, respectively. Income tax~~or expense is primarily a function of the ~~Company's~~geographic location of the Company’s pre-tax income and the statutory tax rates in those jurisdictions. The effective tax rate as(“ETR”) is primarily affected by tax-exempt investment income, qualifying dividends, and

foreign tax ~~credits and as calculated under the annualized effective tax rate ("AETR") method.~~credits. Variations in ~~income tax expense~~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)~~. However, if the AETR approach produces a year-to-date~~, among jurisdictions with different tax benefit which exceeds the amount which is estimated to be recoverable for the full year, then the tax benefit for the interim reporting period will be limited, as prescribed under ASC 740-270, to the estimated tax recoverable based on the year-to-date result.rates. The ~~decrease~~change in income tax expense ~~for the three and nine months ended September 30, 2017~~ ~~compared to~~ ~~the three and nine months ended September 30, 2016~~ ~~was primarily due to the significant catastrophe losses incurred during the third quarter of 2017.~~

~~Net Income (Loss).~~

~~Our net loss was $389.7 million and our net income was $76.3 million~~ (benefit) for the three months ended ~~September~~March 31, 2021 as ~~30,~~ compared to the three months ended March 31, 2020 results primarily from higher investment income and earned premiums offset by higher catastrophe losses and the impact of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) incurred in the first quarter of 2020.

The CARES Act was passed by Congress and signed into law by the President on March 27, 2020 in response to the COVID-19 pandemic. Among the provisions of the CARES Act was a special tax provision which allows companies to elect to carryback five years net operating losses incurred in the 2018, 2019 and/or 2020 tax years. The Tax Cuts and Jobs Act of 2017 ~~and 2016, respectively. Our~~had eliminated net operating loss ~~was $184.9~~carrybacks for most companies. The Company determined that the special five year loss carryback tax provision provided a tax benefit of $31.0 million ~~and our~~which it recorded in the quarter ended March 31, 2020.

Net Income (Loss).

Our net income was ~~$186.7~~$119.4 million and $316.6 million, for the ~~nine~~three months ended ~~September 30,~~ ~~2017~~March 31, 2021 and ~~2016,~~2020 respectively. The changes were primarily driven by the financial component fluctuations explained above.

Ratios.

~~Ratios.~~

Our combined ratio increased by ~~194.0~~9.6 points to ~~274.6%~~106.9% for the three months ended ~~September 30, 2017,~~March 31, 2021 compared to ~~80.6%~~97.3% for the three months ended ~~September 30, 2016, and increased by 66.6 points to 154.2% for the nine months ended September 30, 2017, compared to 87.6% for the nine months ended September 30, 2016.~~March 31, 2020. The loss ratio ~~components~~component increased ~~202.6 points and 70.3~~by 10.9 points for the three ~~and nine~~ months ended ~~September 30, 2017, respectively,~~March 31, 2021 over the same period last ~~year. The changes were~~year mainly due to ~~the increases~~an increase of $230.5 million in current year catastrophe losses. The commission and brokerage ratio ~~components~~component decreased to ~~6.7% from 14.9%~~20.6% for the three months ended ~~September 30, 2017 and 2016, respectively, and decreased~~March 31, 2021 compared to ~~10.1% from 14.4%~~21.6% for the ~~nine~~three months ended ~~September 30, 2017~~March 31, 2020, reflecting changes in affiliated reinsurance agreements and ~~2016, respectively. The decreases reflect~~ changes in the mix of ~~business, the impact of affiliated quota share contracts and the impact from reinstatement premiums.~~business. The other underwriting expense ~~ratios~~ratio decreased slightly to ~~11.1% from 11.5%~~6.5% for the three months ended ~~September 30, 2017 and 2016, respectively, and increased to 12.5%~~March 31, 2021 from ~~11.9%~~6.8% for the ~~nine~~three months ended September 30, 2017 and 2016, respectively. The decrease in the three month period was mainly due to lower variable compensation costs. The increase in the nine month period was due to costs associated with the continued expansion of the insurance business, partially offsetMarch 31, 2020.

Stockholder's Equity.

Stockholder’s equity increased by ~~lower variable compensation costs.~~

~~Stockholder's Equity.~~

~~Stockholders' equity decreased by $130.9~~$15.5 million to ~~$5,167.6~~$6,429.8 million at ~~September 30, 2017~~ March 31, 2021 from ~~$5,298.6~~$6,414.3 million at December 31, ~~2016,~~2020, principally as a result of ~~$184.9~~$119.4 million of net ~~loss, partially offset by $43.2~~income, $2.3 million of net foreign currency translation adjustments ~~$5.4~~and $2.0 million of net benefit plan obligation adjustments, ~~$5.2~~partially offset by $108.4 million of net unrealized depreciation on investments, net of ~~tax and $0.2 million of share-based compensation transactions.~~

tax.

Consolidated Investment Results

Net Investment Income.

Net investment income increased by ~~13.7%~~99.1% to ~~$73.4~~$147.7 million for the three months ended ~~September 30, 201~~7March 31, 2021 compared to ~~$64.6~~$74.2 million for the three months ended ~~September 30, 201~~March 31, 2020. ~~6. Net investment income increased by 4.7% to $206.2 million~~ ~~for~~This increase was primarily the ~~nine months ended September 30, 2017 compared to $196.9 million~~ ~~for the nine months ended September 30, 2016. The increases for the three and nine month periods were primarily due to~~result of an increase in limited partnership income and higher income from ~~the growing~~our fixed income ~~portfolio, partially offset by lower dividend income from our equity~~ portfolio.

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

	Three Months Ended
	March 31,
(Dollars in millions)	2021		2020
Fixed maturities	$	85.1	$	74.1
Equity securities		2.9		1.6
Short-term investments and cash		0.1		1.6
Other invested assets
Limited partnerships		52.2		7.0
Dividends from preferred shares of affiliate		7.8		7.8
Other		6.0		(13.1)
Gross investment income before adjustments		154.1		79.0
Funds held interest income (expense)		3.5		3.2
Interest income from Parent		1.3		1.3
Gross investment income		158.9		83.5
Investment expenses		11.2		9.3
Net investment income	$	147.7	$	74.2

(Some amounts may not reconcile due to rounding.)

Three Months Ended Nine Months Ended
September 30, September 30,
(Dollars in millions) 2017 2016 2017 2016
Fixed maturities $ 48.3 $ 44.8 $ 144.9 $ 134.9
Equity securities 6.3 7.9 19.4 25.8
Short-term investments and cash 0.6 0.3 1.6 0.9
Other invested assets
Limited partnerships 11.8 6.0 20.6 17.7
Dividends from preferred shares of affiliate 7.8 7.8 23.3 23.3
Other 1.5 0.5 4.2 0.3
Gross investment income before adjustments 76.4 67.3 214.1 202.8
Funds held interest income (expense) 1.1 1.1 4.0 4.7
Interest income from Parent 1.1 1.1 3.2 3.2
Gross investment income 78.5 69.5 221.3 210.8
Investment expenses (5.1 ) (4.9 ) (15.1 ) (13.9 )
Net investment income $ 73.4 $ 64.6 $ 206.2 $ 196.9

(Some amounts may not reconcile due to rounding.)

The following tables show a comparison of various investment yields for the periods indicated:

	At	At
	March 31,	December 31,
	2021	2020
Imbedded pre-tax yield of cash and invested assets	3.0%	3.1%
Imbedded after-tax yield of cash and invested assets	2.4%	2.5%

	Three Months Ended
	March 31,
	2021	2020
Annualized pre-tax yield on average cash and invested assets	3.8%	2.6%
Annualized after-tax yield on average cash and invested assets	3.1%	2.1%

At At
September 30, December 31,
2017 2016
Imbedded pre-tax yield of cash and invested assets at December 31 3.1% 2.9%
Imbedded after-tax yield of cash and invested assets at December 31 2.1% 2.0%

Three Months Ended Nine Months Ended
September 30, September 30,
2017 2016 2017 2016
Annualized pre-tax yield on average cash and invested assets 3.0% 2.7% 2.8% 2.8%
Annualized after-tax yield on average cash and invested assets 2.1% 1.9% 2.0% 1.9%

Net Realized Capital Gains (Losses).

The following table presents the composition of our net realized capital gains (losses) for the periods indicated:

	Three Months Ended March 31,
(Dollars in millions)	2021		2020		Variance
Gains (losses) from sales:
Fixed maturity securities, market value
Gains	$	6.3	$	1.8	$	4.5
Losses		(2.4)		(22.8)		20.4
Total		3.9		(21.0)		24.9
Equity securities, fair value
Gains		12.3		2.6		9.7
Losses		(6.1)		(30.2)		24.1
Total		6.2		(27.6)		33.8
Other invested assets
Gains		1.4		3.0		(1.6)
Losses		(0.1)		(5.4)		5.3
Total		1.3		(2.4)		3.7
Short Term Investments:
Gains		-		0.1		(0.1)
Losses		-		-		-
Total		-		0.1		(0.1)
Total net realized gains (losses) from sales
Gains		20.1		7.5		12.6
Losses		(8.6)		(58.4)		49.8
Total		11.5		(50.7)		62.2

Allowances for credit losses:		(7.1)		(12.1)		5.0

Gains (losses) from fair value adjustments:
Fixed maturities, fair value		-		(1.1)		1.1
Equity securities, fair value		37.6		(121.7)		159.3
Other invested assets, fair value		93.1		442.5		(349.4)
Total		130.6		319.7		(189.1)

Total net realized gains (losses)	$	135.0	$	256.9	$	(121.9)

(Some amounts may not reconcile due to rounding.)

Three Months Ended September 30, Nine Months Ended September 30,
(Dollars in millions) 2017 2016 Variance 2017 2016 Variance
Gains (losses) from sales:

Fixed maturity securities, market value
Gains $ 8.0 $ 6.3 $ 1.7 $ 23.7 $ 13.9 $ 9.8
Losses (4.1 ) (1.9 ) (2.2 ) (6.9 ) (24.1 ) 17.2
Total 3.9 4.4 (0.5 ) 16.8 (10.3 ) 27.0

Fixed maturity securities, fair value
Gains - - - - - -
Losses - - - - (1.9 ) 1.9
Total - - - - (1.9 ) 1.9

Equity securities, fair value
Gains 2.2 6.9 (4.7 ) 13.8 13.5 0.3
Losses (3.7 ) (1.4 ) (2.3 ) (10.3 ) (23.6 ) 13.3
Total (1.5 ) 5.5 (7.0 ) 3.5 (10.1 ) 13.6

Total net realized gains (losses) from sales
Gains 10.2 13.2 (3.0 ) 37.5 27.4 10.1
Losses (7.8 ) (3.4 ) (4.5 ) (17.2 ) (49.7 ) 32.5
Total 2.4 9.6 (7.5 ) 20.3 (22.4 ) 42.6

Gain (losses) on sale of subsidiary:
- (28.0 ) 28.0 - (28.0 ) 28.0

Other than temporary impairments:
(1.5 ) (0.8 ) (0.7 ) (4.2 ) (25.2 ) 21.0

Gains (losses) from fair value adjustments:

Fixed maturities, fair value - 0.1 (0.1 ) - 1.4 (1.4 )
Equity securities, fair value 29.6 16.0 13.6 82.0 34.7 47.3
Other invested assets, fair value 197.9 (47.0 ) 244.9 155.8 (47.8 ) 203.6
Total 227.5 (30.9 ) 258.4 237.8 (11.7 ) 249.5

Total net realized gains (losses) $ 228.5 $ (50.1 ) $ 278.6 $ 254.0 $ (87.3 ) $ 341.3
(Some amounts may not reconcile due to rounding.)

Net Realized Capital Gains (Losses).Net realized capital gains were ~~$228.5~~$135.0 million and ~~net realized capital losses were $50.1~~$256.9 million for the three months ended ~~September 30, 2017~~March 31, 2021 and ~~2016,~~2020, respectively. ~~For the three months ended September 30, 2017 we recorded $227.5 million of~~The net realized capital gains ~~due to fair value re-measurements on equity securities and other invested assets and $2.4~~of $135.0 million of net realized capital gains from sales of fixed maturity and equity securities, partially offset by $1.5 million of other-than-temporary impairments. For the three months ended September 30, 2016, we recorded $30.9 million of net realized capital losses due to fair value re-measurements on fixed maturity securities, equity securities and other invested assets, net realized capital losses of $28.0 million from the sale of our Heartland subsidiary and $0.8 million of other-than-temporary impairments, partially offset by $9.6 million of net realized capital gains from sales of fixed maturity and equity securities. The fixed maturity and equity sales for the three months ended ~~September 30, 2017~~March 31, 2021, were comprised of $130.6 million of gains from fair value re-measurements and ~~2016 related primarily to adjusting the portfolios~~$11.5 million of gains from sales of investments, partially offset by $7.1 million in net allowances for ~~overall market changes and individual~~ credit ~~shifts.~~

Net realized capital gains were $254.0 million and net realized capital losses were $87.3 million for the nine months ended September 30, 2017 and 2016, respectively. For the nine months ended September 30, 2017 we recorded $237.8 million oflosses. The net realized capital gains ~~due to~~of $256.9 million in 2020 were comprised of $319.7 million of gains from fair value re-measurements, ~~on equity securities and other invested assets and $20.3 million of net realized capital gains from sales of fixed maturity and equity securities,~~ partially offset by ~~$4.2~~$50.7 million of ~~other-than-temporary impairments. For the nine months ended September 30, 2016, we recorded net realized capital losses of $28.0 million from the~~

~~sale of our Heartland subsidiary, $25.2 million of other-than-temporary impairments, $22.4 million of net realized capital~~ losses from sales of ~~fixed maturity~~investments and ~~equity securities and $11.7~~$12.1 million of ~~net realized capital losses due to fair value re-measurements on fixed maturity securities, equity securities and other invested assets. The fixed maturity and equity sales~~allowances for ~~the nine months ended September 30, 2017 and 2016 related primarily to adjusting the portfolios for overall market changes and individual~~ credit ~~shifts.~~

losses.

Segment Results.

The ~~U.S.~~ Reinsurance operation writes worldwide property and casualty reinsurance and specialty lines of ~~business, including Marine, Aviation, Surety and A&H~~ business, on both a treaty and facultative basis, through reinsurance brokers, as well as directly with ceding ~~companies primarily within~~companies. Business is written in the ~~U.S. The International operation writes non-U.S. property and casualty reinsurance~~United States as well as through ~~Everest Re's~~ branches in Canada ~~Singapore~~ and ~~through offices in Brazil, Miami and New Jersey.~~Singapore. The Insurance operation writes property and casualty insurance directly and through brokers, surplus lines brokers and general agents ~~mainly~~ within the ~~U.S.~~United States.

Underwriting results include earned premium less losses and 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.

Our loss and LAE reserves are ~~management's~~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 the re-evaluation is made.

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

~~U.S.~~

Reinsurance.

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

	Three Months Ended March 31,
(Dollars in millions)	2021		2020		Variance		% Change
Gross written premiums	$	1,420.1	$	1,308.2	$	111.9	8.6%
Net written premiums		1,208.8		1,114.2		94.6	8.5%

Premiums earned	$	1,177.2	$	1,007.0	$	170.2	16.9%
Incurred losses and LAE		970.3		682.7		287.6	42.1%
Commission and brokerage		290.6		260.9		29.7	11.4%
Other underwriting expenses		36.3		29.8		6.5	21.6%
Underwriting gain (loss)	$	(120.0)	$	33.6	$	(153.6)	NM

							Point Chg
Loss ratio		82.4%		67.8%			14.6
Commission and brokerage ratio		24.7%		25.9%			(1.2)
Other underwriting ratio		3.1%		3.0%			0.1
Combined ratio		110.2%		96.7%			13.5

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

Three Months Ended September 30, Nine Months Ended September 30,
(Dollars in millions) 2017 2016 Variance % Change 2017 2016 Variance % Change
Gross written premiums $ 908.3 $ 654.8 $ 253.6 38.7 % $ 1,962.3 $ 1,597.0 $ 365.3 22.9 %
Net written premiums 295.6 327.2 (31.6 ) -9.7 % 649.9 711.7 (61.8 ) -8.7 %

Premiums earned $ 242.4 $ 249.2 $ (6.9 ) -2.8 % $ 653.0 $ 709.1 $ (56.1 ) -7.9 %
Incurred losses and LAE 678.9 137.2 541.7
NM
919.1 363.6 555.5 152.8 %
Commission and brokerage 31.7 48.1 (16.4 ) -34.1 % 115.2 148.0 (32.7 ) -22.1 %
Other underwriting expenses 12.1 14.3 (2.2 ) -15.2 % 40.6 39.9 0.8 1.9 %
Underwriting gain (loss) $ (480.4 ) $ 49.6 $ (530.0 ) NM $ (422.0 ) $ 157.7 $ (579.7 ) NM

Point Chg Point Chg
Loss ratio 280.1 % 55.1 % 225.0 140.8 % 51.3 % 89.5
Commission and brokerage ratio 13.1 % 19.3 % (6.2 ) 17.6 % 20.9 % (3.2 )
Other underwriting ratio 5.0 % 5.7 % (0.7 ) 6.2 % 5.6 % 0.6
Combined ratio 298.2 % 80.1 % 218.1 164.6 % 77.8 % 86.9

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

42Premiums.

~~Premiums.~~Gross written premiums increased by ~~38.7%~~8.6% to ~~$908.3~~$1,420.1 million for the three months ended ~~September 30, 201~~7March 31, 2021 from ~~$654.8~~$1,308.2 million for the three months ended ~~September 30, 201~~6,March 31, 2020 primarily due to ~~the new crop reinsurance~~increases in property pro rata business, ~~related to the sale~~property excess of ~~Heartland~~loss business and ~~the influx~~casualty excess of ~~reinstatement premiums due to the catastrophe losses.~~loss writings. Net written premiums ~~decreased~~increased by ~~9.7%~~8.5% to ~~$295.6~~$1,208.8 million for the three months ended ~~September 30, 201~~7March 31, 2021 compared to ~~$327.2~~$1,114.2 million for the three months ended ~~September 30, 201~~6. ~~The difference between~~March 31, 2020, which is consistent with the change in gross written ~~premiums compared to the change in net written premiums is primarily due to a varying utilization of reinsurance primarily related to the affiliated quota share contracts.~~premiums. Premiums earned ~~decreased 2.8%~~increased 16.9% to ~~$242.4~~$1,177.2 million for the three months ended ~~September 30, 201~~7March 31, 2021 compared to ~~$249.2~~$1,007.0 million for the three months ended ~~September 30, 201~~6. 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 22.9% to $1,962.3 million for the nine months ended September 30, 201~~7 ~~from $1,597.0 million for the nine months ended September 30, 201~~6, primarily due to the new crop reinsurance business, an increase in treaty casualty business and the influx of reinstatement premiums due to the catastrophe losses. Net written premiums decreased by 8.7% to $649.9 million for the nine months ended September 30, 2017 ~~compared to $711.7 million for the nine months ended September 30, 201~~6. The difference between the change in gross written premiums compared to the change in net written premiums is primarily due to a varying utilization of reinsurance primarily related to the affiliated quota share contracts. Premiums earned decreased 7.9% to $653.0 million for the nine months ended September 30, 2017 ~~compared to $709.1 million for the nine months ended September 30, 201~~6. 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 and LAE.~~ ~~The following table presents the incurred losses and LAE for the U.S. Reinsurance segment for the periods indicated.~~

Three Months Ended September 30,
Current Ratio %/ Prior Ratio %/ Total Ratio %/
(Dollars in millions) Year Pt Change Years Pt Change Incurred Pt Change
2017

Attritional $ 128.0 52.8 % $ (0.4 ) -0.2 % $ 127.5 52.6 %
Catastrophes 551.6 227.6 % (0.2 ) -0.1 % 551.4 227.5 %
Total segment $ 679.6 280.4 % $ (0.6 ) -0.3 % $ 678.9 280.1 %

2016

Attritional $ 129.8 52.1 % $ (1.0 ) -0.4 % $ 128.8 51.7 %
Catastrophes 14.4 5.8 % (5.9 ) -2.4 % 8.5 3.4 %
Total segment $ 144.2 57.9 % $ (6.9 ) -2.8 % $ 137.2 55.1 %

Variance 2017/2016

Attritional $ (1.8 ) 0.7 pts $ 0.6 0.2 pts $ (1.3 ) 0.9 pts
Catastrophes 537.2 221.8 pts 5.7 2.3 pts 542.9 224.1 pts
Total segment $ 535.4 222.5 pts $ 6.3 2.5 pts $ 541.7 225.0 pts

Nine Months Ended September 30,
Current Ratio %/ Prior Ratio %/ Total Ratio %/
(Dollars in millions) Year Pt Change Years Pt Change Incurred Pt Change
2017

Attritional $ 374.8 57.4 % $ (4.7 ) -0.7 % $ 370.0 56.7 %
Catastrophes 553.2 84.7 % (4.1 ) -0.6 % 549.1 84.1 %
Total segment $ 928.0 142.1 % $ (8.8 ) -1.3 % $ 919.1 140.8 %

2016

Attritional $ 365.2 51.6 % $ (1.3 ) -0.2 % $ 363.9 51.4 %
Catastrophes 15.8 2.2 % (16.1 ) -2.3 % (0.3 ) -0.1 %
Total segment $ 381.0 53.8 % $ (17.4 ) -2.5 % $ 363.6 51.3 %

Variance 2017/2016

Attritional $ 9.6 5.8 pts $ (3.4 ) (0.5 ) pts $ 6.1 5.3 pts
Catastrophes 537.4 82.5 pts 12.0 1.7 pts 549.4 84.2 pts
Total segment $ 547.0 88.3 pts $ 8.6 1.2 pts $ 555.5 89.5 pts

(Some amounts may not reconcile due to rounding.)

~~Incurred losses increased to $678.9 million for the three months ended September 30, 201~~7 ~~compared to $137.2 million for the three months ended September 30, 201~~6~~, primarily due to an increase of $537.2 million in current year catastrophe losses.~~ ~~The current year catastrophe losses of $551.6 million~~ ~~for the three months ended September 30, 2017 related to Hurricane Irma ($348.6 million), Hurricane Harvey ($128.5 million), Hurricane Maria ($74.0 million), and the Mexico City earthquake ($1.1 million).~~ ~~The $14.4 million of current year catastrophe losses for the three months ended September 30, 2016 were related to Hurricane Hermine ($6.8 million), 2016 U.S. Storms ($6.3 million) and the Fort McMurray Canada Wildfire ($1.3 million).~~

~~Incurred losses increased by 152.8% to $919.1 million for the nine months ended September 30, 201~~7 ~~compared to $363.6 million for the nine months ended September 30, 201~~6, due to an increase of $537.4 million in current year catastrophe losses, favorable development of $16.1 million on prior years' catastrophe losses in 2016 which did not recur in 2017 and an increase of $9.6 million in current year attritional losses, resulting mainly from the impact of the new crop reinsurance contract. ~~The current year catastrophe losses of $553.2 million~~ ~~for the nine months ended September 30, 2017 related to Hurricane Irma ($348.6 million), Hurricane Harvey ($128.5 million), Hurricane Maria ($74.0 million), the Mexico City earthquake ($1.1 million) and the 2017 U.S. Storms ($1.4 million).~~ ~~The $15.8 million of current year catastrophe losses for the nine months ended September 30, 2016 were related to Hurricane Hermine ($6.8 million) and 2016 U.S. Storms ($9.6 million).~~

~~Segment Expenses.~~ ~~Commission and brokerage expenses decreased by 34.1% to $31.7 million~~ ~~for the three months ended September 30, 2017~~ ~~compared to $48.1 million~~ ~~for the three months ended September 30, 2016. Commission and brokerage expenses decreased by 22.1% to $115.2 million~~ ~~for the nine months ended September 30, 2017~~ ~~compared to $148.0 million~~ ~~for the nine months ended September 30, 2016~~. The decreases are mainly due to the impact of the new crop reinsurance contract which generally has a lower expense ratio, the impact of affiliated quota share contracts and the impact of the decrease in premiums earned.

~~Segment other underwriting expenses decreased to $12.1 million~~ ~~for the three months ended September 30, 2017~~ ~~from $14.3 million~~ ~~for the three months ended September 30, 2016. The decrease for the three month period was primarily due to lower variable compensation costs.~~ ~~Segment other underwriting expenses increased slightly to $40.6 million~~ ~~for the nine months ended September 30, 2017~~ ~~from $39.9 million~~ ~~for the nine months ended September 30, 2016.~~

~~International.~~

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

Three Months Ended September 30, Nine Months Ended September 30,
(Dollars in millions) 2017 2016 Variance % Change 2017 2016 Variance % Change
Gross written premiums $ 363.2 $ 353.2 $ 10.0 2.8 % $ 975.3 $ 939.9 $ 35.4 3.8 %
Net written premiums 130.2 141.3 (11.1 ) -7.9 % 345.4 353.4 (8.1 ) -2.3 %

Premiums earned $ 123.9 $ 128.4 $ (4.4 ) -3.5 % $ 355.4 $ 372.8 $ (17.5 ) -4.7 %
Incurred losses and LAE 410.5 41.8 368.7
NM
557.4 206.7 350.7 169.7 %
Commission and brokerage 25.1 30.2 (5.1 ) -16.9 % 72.4 82.4 (10.0 ) -12.2 %
Other underwriting expenses 8.2 9.2 (1.0 ) -10.6 % 26.3 25.0 1.3 5.1 %
Underwriting gain (loss) $ (320.0 ) $ 47.1 $ (367.1 ) NM $ (300.8 ) $ 58.7 $ (359.5 ) NM

Point Chg Point Chg
Loss ratio 331.3 % 32.6 % 298.7 156.9 % 55.4 % 101.5
Commission and brokerage ratio 20.3 % 23.5 % (3.3 ) 20.4 % 22.1 % (1.7 )
Other underwriting ratio 6.6 % 7.2 % (0.6 ) 7.3 % 6.8 % 0.5
Combined ratio 358.2 % 63.3 % 294.9 184.6 % 84.3 % 100.4

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

~~Premiums.~~ ~~Gross written premiums increased by 2.8% to $363.2 million for the three months ended September 30, 201~~7 ~~compared to $353.2 million for the three months ended September 30, 201~~6, primarily due to the increase in Middle East, African and Asian business, partially offset by a decline in Latin American business and a negative impact of $5.6 million from the movement of foreign exchange rates. Net written premiums decreased by 7.9% to $130.2 million for the three months ended September 30, 2017 ~~compared to $141.3 million for the three months ended September 30, 201~~6. The difference between the change in gross written premiums compared to the change in net written premiums is primarily due to varying utilization of reinsurance related to the quota share contracts, including affiliated quota share contracts. Premiums earned decreased 3.5% to $123.9 million for the three months ended September 30, 2017 ~~compared to $128.4 million for the three months ended September 30, 201~~6. 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 3.8% to $975.3 million for the nine months ended September 30, 201~~7 ~~compared to $939.9 million for the nine months ended September 30, 201~~6, primarily due to increases in Middle East, African and Asian business and the positive impact of $17.7 million from the movement of foreign exchange rates. Net written premiums decreased by 2.3% to $345.4 million for the nine months ended September 30, 2017 ~~compared to $353.4 million for the nine months ended September 30, 201~~6. The difference between the change in gross written premiums compared to the change in net written premiums is primarily due to varying utilization of reinsurance related to the quota share contracts, including affiliated quota share contracts. Premiums earned decreased 4.7% to $355.4 million for the nine months ended September 30, 2017 ~~compared to $372.8 million for the nine months ended September 30, 201~~6. 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 and LAE.~~ ~~The following table presents the incurred losses and LAE for the International segment for the periods indicated.~~

Three Months Ended September 30,
Current Ratio %/ Prior Ratio %/ Total Ratio %/
(Dollars in millions) Year Pt Change Years Pt Change Incurred Pt Change
2017

Attritional $ 64.0 51.7 % $ 0.7 0.6 % $ 64.7 52.3 %
Catastrophes 346.6 279.7 % (0.8 ) -0.7 % 345.8 279.0 %
Total segment $ 410.6 331.4 % $ (0.1 ) -0.1 % $ 410.5 331.3 %

2016

Attritional $ 49.3 38.4 % $ - 0.0 % $ 49.3 38.4 %
Catastrophes 6.5 5.1 % (14.0 ) -10.9 % (7.5 ) -5.8 %
Total segment $ 55.8 43.5 % $ (14.0 ) -10.9 % $ 41.8 32.6 %

Variance 2017/2016

Attritional $ 14.7 13.3 pts $ 0.7 0.6 pts $ 15.4 13.9 pts
Catastrophes 340.1 274.6 pts 13.2 10.2 pts 353.3 284.8 pts
Total segment $ 354.8 287.9 pts $ 13.9 10.8 pts $ 368.7 298.7 pts

Nine Months Ended September 30,
Current Ratio %/ Prior Ratio %/ Total Ratio %/
(Dollars in millions) Year Pt Change Years Pt Change Incurred Pt Change
2017

Attritional $ 182.9 51.5 % $ 2.6 0.7 % $ 185.5 52.2 %
Catastrophes 371.7 104.6 % 0.2 0.1 % 371.9 104.7 %
Total segment $ 554.6 156.1 % $ 2.8 0.8 % $ 557.4 156.9 %

2016

Attritional $ 185.6 49.8 % $ (3.4 ) -0.9 % $ 182.3 48.9 %
Catastrophes 45.2 12.1 % (20.8 ) -5.6 % 24.4 6.5 %
Total segment $ 230.8 61.9 % $ (24.1 ) -6.5 % $ 206.7 55.4 %

Variance 2017/2016

Attritional $ (2.7 ) 1.7 pts $ 6.0 1.6 pts $ 3.2 3.3 pts
Catastrophes 326.5 92.5 pts 21.0 5.7 pts 347.5 98.2 pts
Total segment $ 323.8 94.2 pts $ 26.9 7.3 pts $ 350.7 101.5 pts

(Some amounts may not reconcile due to rounding.)

~~Incurred losses and LAE increased to $410.5 million for the three months ended September 30, 201~~7 ~~compared to $41.8 million for the three months ended September 30, 201~~6, primarily due to an increase of $340.1 million in current year catastrophe losses, an increase of $14.7 million in current year attritional losses and $14.0 million of favorable development on prior year catastrophe losses in 2016, which did not recur in 2017. ~~The current year catastrophe losses of $346.6 million~~ ~~for the three months ended September 30, 2017 related to Hurricane Maria ($236.2 million), Hurricane Irma ($77.5 million), the Mexico City earthquake ($31.1 million) and Hurricane Harvey ($1.4 million).~~ ~~The $6.5 million of current year catastrophe losses for the three months ended September 30, 2016~~ ~~were related to the Fort McMurray Canada Wildfire ($3.7 million), the Taiwan earthquake ($2.3 million), 2016 U.S. Storms ($0.3 million) and the Ecuador earthquake ($0.2 million).~~

~~Incurred losses and LAE increased by 169.7% to $557.4 million for the nine months ended September 30, 201~~7 ~~compared to $206.7 million for the nine months ended September 30, 201~~6~~, primarily due to an increase of $326.5 million in current catastrophe losses and $20.8 million of favorable development on prior year catastrophe losses in 2016 which did not recur in 2017.~~ ~~The current year catastrophe losses of $371.7 million~~ ~~for the nine months ended September 30, 201~~7 related to Hurricane Maria ($236.2 million), Hurricane Irma ($77.5 million), the Mexico City earthquake ($31.1 million), the South Africa Knysna fires ($10.1 million), Cyclone Debbie in Australia ($8.3 million), the Peru storms ($7.1 million) and Hurricane Harvey ($1.4 million). ~~The $45.2 million of current year catastrophe losses for the nine months ended~~

~~September 30, 2016 were due to the Fort McMurray Canada wildfire ($25.4 million), the Ecuador earthquake ($11.8 million), the Taiwan earthquake ($7.6 million) and~~ ~~U.S. Storms ($0.3 million)~~.

~~Segment Expenses.~~ ~~Commission and brokerage decreased 16.9% to $25.1 million for the three months ended September 30, 201~~7 ~~compared to $30.2 million for the three months ended September 30, 201~~6~~. Commission and brokerage decreased 12.2% to $72.4 million for the nine months ended September 30, 201~~7 ~~compared to $82.4 million for the nine months ended September 30, 201~~6~~. The decreases were due to the impact of the decreases in premiums earned, the impact of affiliated quota share agreements and changes in the mix of business.~~

~~Segment other underwriting expenses decreased to $8.2 million for the three months ended September 30, 201~~7 ~~from $9.2 million for the three months ended September 30, 201~~6. ~~The decrease for the three month period is primarily due to lower variable compensation costs. Segment other underwriting expenses~~ ~~increased slightly to~~ ~~$26.3 million for the nine months ended September 30, 201~~7 ~~from $25.0 million for the nine months ended September 30, 201~~6.

~~Insurance.~~

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

Three Months Ended September 30, Nine Months Ended September 30,
(Dollars in millions) 2017 2016 Variance % Change 2017 2016 Variance % Change
Gross written premiums $ 429.6 $ 498.0 $ (68.4 ) -13.7 % $ 1,351.5 $ 1,276.8 $ 74.7 5.9 %
Net written premiums 144.9 154.1 (9.1 ) -5.9 % 442.2 462.8 (20.6 ) -4.4 %

Premiums earned $ 152.2 $ 179.1 $ (26.9 ) -15.0 % $ 449.4 $ 445.6 $ 3.9 0.9 %
Incurred losses and LAE 242.1 122.5 119.6 97.6 % 442.0 366.0 76.0 20.8 %
Commission and brokerage (22.3 ) 4.5 (26.7 ) NM (40.1 ) (10.9 ) (29.2 ) NM
Other underwriting expenses 37.4 40.7 (3.3 ) -8.1 % 114.9 116.8 (2.0 ) -1.7 %
Underwriting gain (loss) $ (105.0 ) $ 11.4 $ (116.4 ) NM $ (67.3 ) $ (26.4 ) $ (40.9 ) NM

Point Chg Point Chg
Loss ratio 159.0 % 68.4 % 90.6 98.3 % 82.1 % 16.2
Commission and brokerage ratio -14.6 % 2.5 % (17.1 ) -8.9 % -2.5 % (6.4 )
Other underwriting ratio 24.5 % 22.7 % 1.8 25.6 % 26.3 % (0.7 )
Combined ratio 168.9 % 93.6 % 75.3 115.0 % 105.9 % 9.1

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

~~Premiums.~~ ~~Gross written premiums decreased by 13.7% to $429.6 million for the three months ended September 30, 201~~7 ~~compared to $498.0 million for the three months ended September 30, 201~~6. This decrease was primarily due to the sale of Heartland, which accounted for $162.4 million of gross written premiums in the third quarter of 2016. Excluding the impact of Heartland, gross written premiums increased by $94.0 million due to higher production from many lines of business, including retail casualty, surety and accident and health. Net written premiums decreased by 5.9% to $144.9 million for the three months ended September 30, 2017 ~~compared to $154.1 million for the three months ended September 30, 201~~6. The difference between the change in gross written premiums compared to the change in net written premiums is primarily due to the more conservative reinsurance position we have taken to support our expanded insurance business and the impact of affiliated quota share agreements. Premiums earned decreased 15.0% to $152.2 million for the three months ended September 30, 2017 ~~compared to $179.1 million for the three months ended September 30, 201~~6.March 31, 2020. 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.

Incurred Losses and LAE.The following tables present 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
2021
Attritional	$	741.8	63.0%		$	-	0.0%		$	741.8	63.0%
Catastrophes		213.0	18.1%			15.5	1.3%			228.5	19.4%
Total segment	$	954.8	81.1%		$	15.5	1.3%		$	970.3	82.4%
2020
Attritional	$	654.7	65.0%		$	(0.6)	-0.1%		$	654.0	64.9%
Catastrophes		24.5	2.4%			4.2	0.4%			28.7	2.8%
Total segment	$	679.2	67.4%		$	3.5	0.3%		$	682.7	67.8%
Variance 2021/2020
Attritional	$	87.1	(2.0)	pts	$	0.6	0.1	pts	$	87.8	(1.9)	pts
Catastrophes		188.5	15.7	pts		11.3	0.9	pts		199.8	16.6	pts
Total segment	$	275.6	13.7	pts	$	12.0	1.0	pts	$	287.6	14.6	pts

Incurred losses increased by 42.1% to $970.3 million for the three months ended March 31, 2021 compared to $682.7 million for the three months ended March 31, 2020. The rise in incurred losses was primarily due to an increase of $188.5 million on current years catastrophe losses and an increase of $87.1 million in current year attritional losses, primarily related to the impact of the increase in premiums earned. The $213.0 million of current year catastrophe losses for the three months ended March 31, 2021 related to Texas winter storms ($205.5 million), and the 2021 Aussie floods ($7.5 million).The current year catastrophe losses of $24.5 million for the three months ended March 31, 2020 primarily related to Australia East Coast storms ($10.0 million), Australia fires (10.0 million) and the Nashville tornadoes ($4.5 million).

Segment Expenses. Commission and brokerage increased to $290.6 million for the three months ended March 31, 2021 compared to $260.9 million for the three months ended March 31, 2020. The increase was mainly due to the impact of the increase in premiums earned. Segment other underwriting expenses increased to $36.3 million for the three months ended March 31, 2021 from $29.8 million for the three months ended March 31, 2020,mainly due to the impact of the increase in premiums earned and changes in affiliated reinsurance agreements.

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)	2021		2020		Variance		% Change
Gross written premiums	$	713.3	$	666.8	$	46.5	7.0%
Net written premiums		556.5		524.5		32.0	6.1%

Premiums earned	$	519.7	$	487.0	$	32.7	6.7%
Incurred losses and LAE		383.8		346.8		37.0	10.7%
Commission and brokerage		59.3		62.2		(2.9)	-4.7%
Other underwriting expenses		73.5		71.4		2.1	2.9%
Underwriting gain (loss)	$	3.2	$	6.6	$	(3.4)	-52.1%

							Point Chg
Loss ratio		73.8%		71.2%			2.6
Commission and brokerage ratio		11.4%		12.8%			(1.4)
Other underwriting ratio		14.1%		14.6%			(0.5)
Combined ratio		99.4%		98.6%			0.7

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

Premiums.Gross written premiums increased by ~~5.9%~~7.0% to ~~$1,351.5~~$713.3 million for the ~~nine~~three months ended ~~September 30, 201~~7March 31, 2021 compared to ~~$1,276.8~~$666.8 million for the ~~nine~~three months ended ~~September 30, 201~~6~~. Excluding the impact of the sale of Heartland, which accounted for $229.9 million of~~March 31, 2020. The rise in gross written premiums was primarily due to increases in ~~the nine months~~

specialty casualty business, property business and professional liability business, partially offset by a decline in workers’ compensation business. 47

~~ended September 30, 2016, gross~~Net written premiums increased ~~$304.6 million. This increase was primarily driven~~ by ~~expansion of many lines of business, including retail casualty, retail property, surety and accident and health. Net written premiums decreased by 4.4%~~6.1% to ~~$442.2~~$556.5 million for the ~~nine~~three months ended ~~September 30, 201~~7March 31, 2021 compared to ~~$462.8~~$524.5 million for the ~~nine~~three months ended ~~September 30, 201~~6. ~~The difference between~~March 31, 2020, which is consistent with the change in gross written premiums compared to the change in net written premiums is primarily due to the more conservative reinsurance position we have taken to support our new business and the impact of affiliated quota share agreements. premiums. Premiums earned increased ~~0.9%~~6.7% to ~~$449.4~~$519.7 million for the ~~nine~~three months ended ~~September 30, 201~~7March 31, 2021 compared to ~~$445.6~~$487.0 million for the ~~nine~~three months ended ~~September 30, 201~~6.March 31, 2020. 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.

Incurred Losses and LAE.The following ~~table presents~~tables present 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
2021
Attritional	$	336.6	64.8%		$	(1.0)	-0.2%		$	335.6	64.6%
Catastrophes		47.5	9.1%			0.7	0.1%			48.2	9.3%
Total segment	$	384.1	73.9%		$	(0.3)	-0.1%		$	383.8	73.8%
2020
Attritional	$	341.8	70.2%		$	(0.5)	-0.1%		$	341.3	70.1%
Catastrophes		5.5	1.1%			-	0.0%			5.5	1.1%
Total segment	$	347.3	71.3%		$	(0.5)	-0.1%		$	346.8	71.2%
Variance 2021/2020
Attritional	$	(5.2)	(5.4)	pts	$	(0.5)	(0.1)	pts	$	(5.7)	(5.5)	pts
Catastrophes		42.0	8.0	pts		0.7	0.1	pts		42.7	8.2	pts
Total segment	$	36.8	2.6	pts	$	0.2	-	pts	$	37.0	2.6	pts

Three Months Ended September 30,
Current Ratio %/ Prior Ratio %/ Total Ratio %/
(Dollars in millions) Year Pt Change Years Pt Change Incurred Pt Change
2017

Attritional $ 133.6 87.7 % $ (1.2 ) -0.8 % $ 132.4 86.9 %
Catastrophes 109.6 72.0 % 0.1 0.1 % 109.7 72.1 %
Total segment $ 243.2 159.7 % $ (1.1 ) -0.7 % $ 242.1 159.0 %

2016

Attritional $ 121.4 67.8 % $ 1.1 0.6 % $ 122.5 68.4 %
Catastrophes - 0.0 % - 0.0 % - 0.0 %
Total segment $ 121.4 67.8 % $ 1.1 0.6 % $ 122.5 68.4 %

Variance 2017/2016

Attritional $ 12.2 19.9 pts $ (2.3 ) (1.4 ) pts $ 9.9 18.5 pts
Catastrophes 109.6 72.0 pts 0.1 0.1 pts 109.7 72.1 pts
Total segment $ 121.8 91.9 pts $ (2.2 ) (1.3 ) pts $ 119.6 90.6 pts

Nine Months Ended September 30,
Current Ratio %/ Prior Ratio %/ Total Ratio %/
(Dollars in millions) Year Pt Change Years Pt Change Incurred Pt Change
2017

Attritional $ 321.2 71.4 % $ 6.5 1.4 % $ 327.7 72.8 %
Catastrophes 114.4 25.5 % (0.1 ) 0.0 % 114.3 25.5 %
Total segment $ 435.6 96.9 % $ 6.4 1.4 % $ 442.0 98.3 %

2016

Attritional $ 343.8 77.1 % $ 5.6 1.3 % $ 349.4 78.4 %
Catastrophes 16.7 3.7 % (0.2 ) 0.0 % 16.5 3.7 %
Total segment $ 360.5 80.8 % $ 5.4 1.3 % $ 366.0 82.1 %

Variance 2017/2016

Attritional $ (22.6 ) (5.7 ) pts $ 0.9 0.1 pts $ (21.7 ) (5.6 ) pts
Catastrophes 97.7 21.8 pts 0.1 - pts 97.8 21.8 pts
Total segment $ 75.1 16.1 pts $ 1.0 0.1 pts $ 76.0 16.2 pts

(Some amounts may not reconcile due to rounding.)

Incurred losses and LAE increased by ~~97.6%~~10.7% to ~~$242.1~~$383.8 million for the three months ended ~~September 30, 201~~7March 31, 2021 compared to ~~$122.5~~$346.8 million for the three months ended ~~September 30, 201~~6,March 31, 2020, mainly due to an increase of ~~$109.6~~$42.0 million in current year catastrophe ~~losses and an increase of $12.2 million in current year attritional losses.~~ ~~The current year catastrophe losses of $109.6 million~~ ~~for the three months ended September 30, 2017 related to Hurricane Harvey ($50.8 million), Hurricane Irma ($50.1 million) and Hurricane Maria ($8.7 million).~~ ~~There were no current year catastrophe losses~~ ~~for the three months ended September 30, 2016.~~

~~Incurred losses and LAE increased by 20.8% to $442.0 million for the nine months ended September 30, 201~~7 ~~compared to $366.0 million for the nine months ended September 30, 201~~6~~, mainly due to an increase of $97.7 million in current catastrophe losses, partially offset by a decrease of $22.6 million in current year attritional~~ losses. The ~~decrease in current year attritional losses primarily related to changes in the mix of business and the impact of affiliated quota share agreements.~~ ~~The current year catastrophe losses of $114.4 million~~ ~~for the nine months ended September 30, 2017 primarily related to Hurricane Harvey ($50.8 million), Hurricane Irma ($50.1 million), Hurricane Maria ($8.7 million) and the 2017 US Midwest Storms ($4.8 million).~~ ~~The $16.7~~$47.5 million of current year catastrophe losses for the ~~nine~~three months ended ~~September 30, 2016 were due~~March 31, 2021, related to Texas winter storms ($47.5 million). The current year catastrophe losses for the three months ended March 31, 2020 of $5.5 million related to the ~~2016 U.S. storms~~Nashville tornadoes ($~~15.0~~5.5 million) ~~and the Fort McMurray Canada wildfire ($1.7 million)~~.

Segment Expenses.Commission and brokerage decreased to ~~($22.3)~~$59.3 million for the three months ended ~~September 30, 201~~7March 31, 2021 compared to ~~$4.5~~$62.2 million for the three months ended ~~September 30, 201~~6~~. Commission and brokerage decreased~~March 31, 2020. The decrease was primarily due to ~~($40.1)~~changes in the mix of business. Segment other underwriting expenses increased to $73.5 million for the ~~nine~~three months ended ~~September 30, 201~~7March 31, 2021 compared to ~~($10.9)~~$71.4 million for the ~~nine~~three months ended ~~September 30, 201~~6~~. The decreases were~~March 31, 2020, mainly due to the impact of ~~changes~~the increase in premiums earned and expenses related to the ~~mix~~continued build out of ~~business and~~ the ~~impacts from affiliated quota share agreements.~~

~~Segment other underwriting expenses decreased to $37.4 million for the three months ended September 30, 201~~insurance business.

7 ~~compared to $40.7 million for the three months ended September 30, 201~~6. ~~Segment other underwriting expenses decreased to $114.9 million for the nine months ended September 30, 201~~7 ~~compared to $116.8 million for the nine months ended September 30, 2016. These decreases were mainly due to lower variable compensation costs.~~

Market Sensitive Instruments.

The ~~SEC's~~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~~“market sensitive ~~instruments"~~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, taxable and tax-preferenced fixed maturity portfolio, while maintaining an adequate level of liquidity. Our mix of taxable and tax-preferenced investments is adjusted periodically, consistent with our current and projected operating results, market conditions and our tax position. 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.~~Risk. Our ~~$10.2~~$16.5 billion investment portfolio, at ~~September 30, 2017,~~March 31, 2021, 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 ~~$736.9~~$1,584.7 million of mortgage-backed securities in the ~~$6,039.4~~$11,050.0 million 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 ~~$230.0~~$620.4 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 estimate on mortgage-backed securities, changes in prepayment expectations under different interest rate environments were taken into account. For legal entities with 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.

	Impact of Interest Rate Shift in Basis Points
	At March 31, 2021
(Dollars in millions)	-200		-100		-		100		200
Total Market/Fair Value	$	12,388.5	$	12,029.4	$	11,670.4	$	11,311.4	$	10,952.3
Market/Fair Value Change from Base (%)		6.2%		3.1%		0.0%		-3.1%		-6.2%
Change in Unrealized Appreciation
After-tax from Base ($)	$	567.3	$	283.6	$	-	$	(283.6)	$	(567.3)

Impact of Interest Rate Shift in Basis Points
At September 30, 2017
(Dollars in millions) -200 -100 0 100 200
Total Market/Fair Value $ 6,634.4 $ 6,454.2 $ 6,269.4 $ 6,077.2 $ 5,883.9
Market/Fair Value Change from Base (%) 5.8 % 2.9 % 0.0 % -3.1 % -6.1 %
Change in Unrealized Appreciation
After-tax from Base ($) $ 237.3 $ 120.1 $ - $ (124.9 ) $ (250.6 )

We had ~~$9,969.1~~$12,184.2 million and ~~$8,331.3~~$11,654.9 million of gross reserves for losses and LAE as of ~~September 30, 2017~~March 31, 2021 and December 31, ~~2016,~~2020, 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 that is reasonably consistent with our fixed income portfolio.

Equity ~~Risk.~~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. 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 periods indicated.

	Impact of Percentage Change in Equity Fair/Market Values
	At March 31, 2021
(Dollars in millions)	-20%		-10%		0%		10%		20%
Fair/Market Value of the Equity Portfolio	$	980.9	$	1,103.5	$	1,226.1	$	1,348.7	$	1,471.3
After-tax Change in Fair/Market Value		(193.7)		(96.9)		-		96.9		193.7

Impact of Percentage Change in Equity Fair/Market Values
At September 30, 2017
(Dollars in millions) -20% -10% 0% 10% 20%
Fair/Market Value of the Equity Portfolio $ 798.5 $ 898.3 $ 998.1 $ 1,097.9 $ 1,197.7
After-tax Change in Fair/Market Value (129.7 ) (64.9 ) - 64.9 129.7

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. ~~("foreign"~~(“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 Singapore and Canadian Dollars. 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 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"~~“may”, ~~"will"~~“will”, ~~"should"~~“should”, ~~"could"~~“could”, ~~"anticipate"~~“anticipate”, ~~"estimate"~~“estimate”, ~~"expect"~~“expect”, ~~"plan"~~“plan”, ~~"believe"~~“believe”, ~~"predict"~~“predict”, ~~"potential"~~“potential” and ~~"intend"~~“intend”. Forward-looking statements contained in this report include information regarding our reserves for losses and LAE, the CARES Act, the impact of the TCJA, the adequacy of our provision for uncollectible balances, estimates of our catastrophe exposure, the effects of catastrophic and pandemic events on our financial statements and the ability of our subsidiaries to pay dividends. 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"~~“Risk Factors” in the ~~Company's~~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.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market Risk Instruments. See ~~"Market~~“Market Sensitive ~~Instruments"~~Instruments” in PART I – ITEM 2.

ITEM 4. CONTROLS AND PROCEDURES

As of the end of the period covered by this report, our management carried out an evaluation, with the participation of the Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the ~~"Exchange Act"~~“Exchange Act”)). Based on their evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act are recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange ~~Commission's~~Commission’s rules and forms. Our management, with the participation of the Chief Executive Officer and Chief Financial Officer, also conducted

an evaluation of our internal control over financial reporting to determine whether any changes occurred during the quarter covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Based on that evaluation, there has been no such change during the quarter covered by this report.

PART II

ITEM 1. LEGAL PROCEEDINGS

Aside from litigation and arbitrations related to these insurance and reinsurance agreements, the Company is not a party to any other material litigation or arbitration.

ITEM 1A. RISK FACTORS

No material changes.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

~~None.~~

ITEM 6. EXHIBITS

Exhibit Index:

Exhibit No.	Description

31.1	Section 302 Certification of ~~Dominic J. Addesso~~	Juan C. Andrade

31.2	Section 302 Certification of ~~Craig Howie~~	Mark Kociancic

32.1	Section 906 Certification of ~~Dominic J. Addesso~~Juan C. Andrade and ~~Craig Howie~~	Mark Kociancic

101.INS	XBRL Instance Document

101.SCH	XBRL Taxonomy Extension Schema

101.CAL	XBRL Taxonomy Extension Calculation Linkbase

101.DEF	XBRL Taxonomy Extension Definition Linkbase

101.LAB	XBRL Taxonomy Extension Labels Linkbase

101.PRE	XBRL Taxonomy Extension Presentation Linkbase

Everest Reinsurance Holdings, Inc.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	Everest Reinsurance Holdings, Inc.
~~(Registrant)~~	(Registrant)


	/S/ ~~CRAIG HOWIE~~MARK KOCIANCIC
~~Craig Howie~~	Mark Kociancic
	Executive Vice President and
		Chief Financial Officer

	(Duly Authorized Officer and Principal Financial Officer)



Dated: May 17, 2021

~~Dated: November 14, 2017~~

Delaware		22-3263609
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

Large accelerated filer☐			Accelerated filer	☐
Non-accelerated ~~filer~~ Filer ☑	X		Smaller reporting company	☐
~~(Do not check if smaller reporting company)~~		Emerging growth company	☐

		Number of Shares Outstanding
Class		At ~~November~~May 1, ~~2017~~2021
Common Shares, $0.01 par value		1,000

			Page
~~Item 1.~~				~~Financial Statements~~	PART I

FINANCIAL INFORMATION

Item 1.	Financial Statements

	Consolidated Balance Sheets at ~~September 30, 2017~~March 31, 2021 (unaudited) and December 31, 2020	1
		~~December 31, 2016 (unaudited)~~	1

	Consolidated Statements of Operations and Comprehensive Income (Loss) for the three months ended March 31, 2021 and 2020 (unaudited)		2
		~~three and nine months ended September 30, 2017 and 2016 (unaudited)~~	2

	Consolidated Statements of Changes in ~~Stockholder's~~Stockholder’s Equity for the three months ended March 31, 2021 and 2020 (unaudited)		3
		~~nine months ended September 30, 2017 and 2016 (unaudited)~~	3

	Consolidated Statements of Cash Flows for the ~~nine~~three months ended March 31, 2021 and 2020 (unaudited)		4
		~~September 30, 2017 and 2016 (unaudited)~~	4

	Notes to Consolidated Interim Financial Statements (unaudited)		5

Item 2.	~~Management's~~ Management’s Discussion and Analysis of Financial Condition and
		Results of Operation	34 30

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	51 41

Item 4.	Controls and Procedures	51 41


~~Item 1.~~			~~Legal Proceedings~~	51 PART II

~~Item 1A.~~			~~Risk Factors~~	52 OTHER INFORMATION

Item 1.	Legal Proceedings	42

Item 1A.	Risk Factors	42

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	52 42

Item 3.	Defaults Upon Senior Securities	52 42

Item 4.	Mine Safety Disclosures	52 42

Item 5.	Other Information	52 42

Item 6.	Exhibits	52 43


(Dollars in thousands, except share amounts and par value per share)	March 31, 2021		December 31, 2020
	(unaudited)
ASSETS:
Fixed maturities - available for sale, at market value (amortized cost: 2021, $10,799,513; 2020, $10,248,650 allowances for credit losses: 2021, ($8,708); 2020, ($1,566))	$	11,050,001	$	10,643,565
Equity securities, at fair value		1,226,120		1,288,767
Short-term investments (cost: 2021, $620,398; 2020, $708,043)		620,395		707,905
Other invested assets (cost: 2021, $1,177,837; 2020, $1,094,933)		1,177,837		1,094,933
Other invested assets, at fair value		1,889,558		1,796,479
Cash		518,681		378,518
Total investments and cash		16,482,592		15,910,167
Note Receivable - affiliated		300,000		300,000
Accrued investment income		94,239		80,196
Premiums receivable		1,611,678		1,591,980
Reinsurance receivables - unaffiliated		1,562,846		1,505,650
Reinsurance receivables - affiliated		2,578,710		2,701,655
Funds held by reinsureds		275,084		267,599
Deferred acquisition costs		388,746		379,707
Prepaid reinsurance premiums		363,706		363,489
Other assets		651,421		616,640
TOTAL ASSETS	$	24,309,022		23,717,083

LIABILITIES:
Reserve for losses and loss adjustment expenses	$	12,184,204	$	11,654,950
Unearned premium reserve		2,454,077		2,385,174
Funds held under reinsurance treaties		44,769		46,894
Other net payable to reinsurers		358,519		277,390
Losses in course of payment		141,053		161,154
Income taxes net payable		193,453		192,877
Senior notes due 6/1/2044		397,224		397,194
Senior notes due 10/15/2050		979,654		979,524
Long term notes due 5/1/2067		223,699		223,674
Borrowings from FHLB		310,000		310,000
Accrued interest on debt and borrowings		24,035		10,460
Unsettled securities payable		127,283		206,693
Other liabilities		441,251		456,786
Total liabilities		17,879,221		17,302,770
Commitments and Contingencies (Note 6)		(nil)		(nil)

STOCKHOLDER'S EQUITY:
Common stock, par value: $0.01; 3,000 shares authorized; 1,000 shares issued and outstanding (2021 and 2020)		-		-
Additional paid-in capital		1,101,200		1,101,092
Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit) of $43,436 at 2021 and $71,080 at 2020		163,955		268,018
Retained earnings		5,164,646		5,045,203
Total stockholder's equity		6,429,801		6,414,313
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY	$	24,309,022	$	23,717,083

The accompanying notes are an integral part of the consolidated financial statements.

	September 30,			December 31,
(Dollars in thousands, except par value per share)	2017			2016
	(unaudited)
ASSETS:
Fixed maturities - available for sale, at market value	$	6,039,361		$	5,970,496
(amortized cost: 2017, $5,974,256; 2016, $5,910,494)
Equity securities - available for sale, at fair value		998,071			887,800
Short-term investments		229,999			306,286
Other invested assets (cost: 2017, $736,566; 2016, $613,680)		739,486			613,740
Other invested assets, at fair value		1,922,402			1,766,626
Cash		302,331			297,794
Total investments and cash		10,231,650			9,842,742
Note receivable - affiliated		250,000			250,000
Accrued investment income		45,575			45,323
Premiums receivable		1,564,491			1,128,639
Reinsurance receivables - unaffiliated		1,116,370			887,657
Reinsurance receivables - affiliated		4,137,998			3,686,130
Funds held by reinsureds		204,989			190,421
Deferred acquisition costs		65,519			68,621
Prepaid reinsurance premiums		1,115,344			781,384
Other assets		411,425			202,519
TOTAL ASSETS	$	19,143,361		$	17,083,436

LIABILITIES:
Reserve for losses and loss adjustment expenses	$	9,969,148		$	8,331,288
Unearned premium reserve		1,628,717			1,312,386
Funds held under reinsurance treaties		125,463			110,836
Losses in the course of payment		193,948			82,915
Commission reserves		24,932			52,037
Other net payable to reinsurers		1,158,259			815,298
4.868% Senior notes due 6/1/2044		396,804			396,714
6.6% Long term notes due 5/1/2067		236,536			236,462
Accrued interest on debt and borrowings		7,564			3,537
Income taxes		(29,533	)		148,940
Unsettled securities payable		39,660			27,121
Other liabilities		224,219			267,349
Total liabilities		13,975,717			11,784,883

Commitments and Contingencies (Note 7)

STOCKHOLDER'S EQUITY:
Common stock, par value: $0.01; 3,000 shares authorized;
1,000 shares issued and outstanding (2017 and 2016)		-			-
Additional paid-in capital		387,772			387,567
Accumulated other comprehensive income (loss), net of deferred income tax expense
(benefit) of $9,405 at 2017 and ($19,549) at 2016		17,459			(36,315	)
Retained earnings		4,762,413			4,947,301
Total stockholder's equity		5,167,644			5,298,553
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY	$	19,143,361		$	17,083,436

The accompanying notes are an integral part of the consolidated financial statements.

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(Dollars in thousands)	2017			2016			2017			2016
	(unaudited)						(unaudited)
REVENUES:
Premiums earned	$	518,507		$	556,653		$	1,457,759		$	1,527,433
Net investment income		73,417			64,570			206,166			196,887
Net realized capital gains (losses):
Other-than-temporary impairments on fixed maturity securities		(1,473	)		(836	)		(4,179	)		(25,242	)
Other-than-temporary impairments on fixed maturity securities
transferred to other comprehensive income (loss)		-			-			-			-
Realized gain(loss) on sale of subsidiary		-			(28,032	)		-			(28,032	)
Other net realized capital gains (losses)		229,962			(21,195	)		258,145			(34,001	)
Total net realized capital gains (losses)		228,489			(50,063	)		253,966			(87,275	)
Other income (expense)		1,486			(13,208	)		21,996			(10,806	)
Total revenues		821,899			557,952			1,939,887			1,626,239

CLAIMS AND EXPENSES:
Incurred losses and loss adjustment expenses		1,331,558			301,603			1,918,508			936,201
Commission, brokerage, taxes and fees		34,545			82,778			147,565			219,552
Other underwriting expenses		57,713			64,149			181,805			181,706
Corporate expenses		1,132			1,835			6,241			6,181
Interest, fee and bond issue cost amortization expense		7,161			8,859			23,974			26,576
Total claims and expenses		1,432,109			459,224			2,278,093			1,370,216

INCOME (LOSS) BEFORE TAXES		(610,210	)		98,728			(338,206	)		256,023
Income tax expense (benefit)		(220,486	)		22,425			(153,318	)		69,358

NET INCOME (LOSS)	$	(389,724	)	$	76,303		$	(184,888	)	$	186,665

Other comprehensive income (loss), net of tax:
Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period		530			3,808			13,794			62,672
Less: reclassification adjustment for realized losses (gains) included in net income (loss)		(1,674	)		(2,767	)		(8,618	)		23,085
Total URA(D) on securities arising during the period		(1,144	)		1,041			5,176			85,757

Foreign currency translation adjustments		34,281			(2,642	)		43,220			27,779

Benefit plan actuarial net gain (loss) for the period		-			-			-			-
Reclassification adjustment for amortization of net (gain) loss included in net income (loss)		1,369			1,268			5,377			3,949
Total benefit plan net gain (loss) for the period		1,369			1,268			5,377			3,949
Total other comprehensive income (loss), net of tax		34,507			(333	)		53,774			117,485

COMPREHENSIVE INCOME (LOSS)	$	(355,217	)	$	75,970		$	(131,114	)	$	304,150

The accompanying notes are an integral part of the consolidated financial statements.

CONSOLIDATED BALANCE SHEETS	March 31, 2017
	As Previously		Impact of
	Reported		Revisions			As Revised
(Dollars in thousands, except par value per share)
ASSETS:
Deferred acquisition costs	$	62,308	$	(4,994	)	$	57,314
TOTAL ASSETS	$	17,587,840	$	(4,994	)	$	17,582,846

LIABILITIES:
Other net payable to reinsurers	$	832,307	$	(41,746	)	$	790,561
Income taxes		223,629		5,625			229,254
Total liabilities		12,139,623		(36,121	)		12,103,502

STOCKHOLDERS EQUITY:
Retained earnings		5,085,352		31,127			5,116,479
Total stockholder's equity		5,448,217		31,127			5,479,344
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY	$	17,587,840	$	(4,994	)	$	17,582,846

CONSOLIDATED BALANCE SHEETS	December 31, 2016							December 31, 2015
	As Previously		Impact of					As Previously		Impact of
	Reported		Revisions			As Revised		Reported		Revisions			As Revised
(Dollars in thousands, except par value per share)
ASSETS:
Deferred acquisition costs	$	73,924	$	(5,303	)	$	68,621	$	92,651	$	(6,249	)	$	86,402
TOTAL ASSETS	$	17,088,739	$	(5,303	)	$	17,083,436	$	16,695,203	$	(6,249	)	$	16,688,954

LIABILITIES:
Other net payable to reinsurers	$	860,391	$	(45,093	)	$	815,298	$	1,225,260	$	(37,480	)	$	1,187,780
Income taxes		142,143		6,797			148,940		68,024		4,132			72,156
Total liabilities		11,823,179		(38,296	)		11,784,883		11,763,992		(33,348	)		11,730,644

STOCKHOLDERS EQUITY:
Retained earnings		4,914,308		32,993			4,947,301		4,618,558		27,099			4,645,657
Total stockholder's equity		5,265,560		32,993			5,298,553		4,931,211		27,099			4,958,310
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY	$	17,088,739	$	(5,303	)	$	17,083,436	$	16,695,203	$	(6,249	)	$	16,688,954

CONSOLIDATED STATEMENTS OF OPERATIONS	Year Ended December 31, 2016							Year Ended December 31, 2015
AND COMPREHENSIVE INCOME (LOSS):	As Previously		Impact of					As Previously		Impact of
	Reported		Revisions			As Revised		Reported		Revisions			As Revised
(Dollars in thousands)
CLAIMS AND EXPENSES:
Commission, brokerage, taxes and fees	$	289,982	$	(8,558	)	$	281,424	$	315,069	$	(2,744	)	$	312,325
Total claims and expenses		1,928,940		(8,558	)		1,920,382		1,892,062		(2,744	)		1,889,318

INCOME (LOSS) BEFORE TAXES		390,433		8,558			398,991		604,542		2,744			607,286
Income tax expense (benefit)		94,683		2,664			97,347		191,889		3,007			194,896

NET INCOME (LOSS)	$	295,750	$	5,894		$	301,644	$	412,653	$	(263	)	$	412,390

COMPREHENSIVE INCOME (LOSS)	$	321,571	$	5,894		$	327,465	$	345,998	$	(263	)	$	345,735

CONSOLIDATED STATEMENTS OF OPERATIONS	Year Ended December 31, 2014							Three Months Ended March 31, 2017
AND COMPREHENSIVE INCOME (LOSS):	As Previously		Impact of					As Previously		Impact of
	Reported		Revisions			As Revised		Reported		Revisions			As Revised
(Dollars in thousands)
CLAIMS AND EXPENSES:
Commission, brokerage, taxes and fees	$	339,402	$	(427	)	$	338,975	$	49,470	$	3,037		$	52,507
Total claims and expenses		1,930,749		(427	)		1,930,322		411,543		3,037			414,580

INCOME (LOSS) BEFORE TAXES		657,688		427			658,115		247,984		(3,037	)		244,947
Income tax expense (benefit)		203,562		1,125			204,687		76,940		(1,171	)		75,769

NET INCOME (LOSS)	$	454,126	$	(698	)	$	453,428	$	171,044	$	(1,866	)	$	169,178

COMPREHENSIVE INCOME (LOSS)	$	370,997	$	(698	)	$	370,299	$	182,587	$	(1,866	)	$	180,721

CONSOLIDATED STATEMENTS OF OPERATIONS	Three Months Ended September 30, 2016							Nine Months Ended September 30, 2016
AND COMPREHENSIVE INCOME (LOSS):	As Previously		Impact of					As Previously		Impact of
	Reported		Revisions			As Revised		Reported		Revisions			As Revised
(Dollars in thousands)
CLAIMS AND EXPENSES:
Commission, brokerage, taxes and fees	$	85,563	$	(2,785	)	$	82,778	$	226,511	$	(6,959	)	$	219,552
Total claims and expenses		462,009		(2,785	)		459,224		1,377,175		(6,959	)		1,370,216

INCOME (LOSS) BEFORE TAXES		95,943		2,785			98,728		249,064		6,959			256,023
Income tax expense (benefit)		21,145		1,280			22,425		66,990		2,368			69,358

NET INCOME (LOSS)	$	74,798	$	1,505		$	76,303	$	182,074	$	4,591		$	186,665

COMPREHENSIVE INCOME (LOSS)	$	74,465	$	1,505		$	75,970	$	299,559	$	4,591		$	304,150

CONSOLIDATED STATEMENTS OF OPERATIONS	Three Months Ended June 30, 2016							Six Months Ended June 30, 2016
AND COMPREHENSIVE INCOME (LOSS):	As Previously		Impact of					As Previously		Impact of
	Reported		Revisions			As Revised		Reported		Revisions			As Revised
(Dollars in thousands)
CLAIMS AND EXPENSES:
Commission, brokerage, taxes and fees	$	72,126	$	(1,717	)	$	70,409	$	140,948	$	(4,174	)	$	136,774
Total claims and expenses		479,860		(1,717	)		478,143		915,166		(4,174	)		910,992

INCOME (LOSS) BEFORE TAXES		101,332		1,717			103,049		153,121		4,174			157,295
Income tax expense (benefit)		32,982		695			33,677		45,845		1,088			46,933

NET INCOME (LOSS)	$	68,350	$	1,022		$	69,372	$	107,276	$	3,086		$	110,362

COMPREHENSIVE INCOME (LOSS)	$	124,381	$	1,022		$	125,403	$	225,094	$	3,086		$	228,180

CONSOLIDATED STATEMENTS OF OPERATIONS	Three Months Ended March 31, 2016
AND COMPREHENSIVE INCOME (LOSS):	As Previously		Impact of
	Reported		Revisions			As Revised
(Dollars in thousands)
CLAIMS AND EXPENSES:
Commission, brokerage, taxes and fees	$	68,822	$	(2,457	)	$	66,365
Total claims and expenses		435,306		(2,457	)		432,849

INCOME (LOSS) BEFORE TAXES		51,789		2,457			54,246
Income tax expense (benefit)		12,863		393			13,256

NET INCOME (LOSS)	$	38,926	$	2,064		$	40,990

COMPREHENSIVE INCOME (LOSS)	$	100,713	$	2,064		$	102,777

CONSOLIDATED STATEMENTS OF	Year Ended December 31, 2016						Year Ended December 31, 2015
CHANGES IN STOCKHOLDER'S EQUITY	As Previously		Impact of				As Previously		Impact of
	Reported		Revisions		As Revised		Reported		Revisions			As Revised

(Dollars in thousands, except share amounts)
RETAINED EARNINGS:
Balance, beginning of period	$	4,618,558	$	27,099	$	4,645,657	$	4,205,905	$	27,362		$	4,233,267
Net income (loss)		295,750		5,894		301,644		412,653		(263	)		412,390
Balance, end of period		4,914,308		32,993		4,947,301		4,618,558		27,099			4,645,657
TOTAL STOCKHOLDER'S EQUITY, END OF PERIOD	$	5,265,560	$	32,993	$	5,298,553	$	4,931,211	$	27,099		$	4,958,310

CONSOLIDATED STATEMENTS OF CASH FLOWS	Year Ended December 31, 2016									Year Ended December 31, 2015
	As Previously			Impact of						As Previously		Impact of
	Reported			Revisions			As Revised			Reported		Revisions			As Revised
(Dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	295,750		$	5,894		$	301,644		$	412,653	$	(263	)	$	412,390
Decrease (increase) in income taxes		60,325			2,666			62,991			57,487		3,007			60,494
Increase (decrease) in other net payable to reinsurers		(364,242	)		(7,614	)		(371,856	)		204,526		(8,590	)		195,936
Change in other assets and liabilities, net		16,090			(946	)		15,144			7,499		5,846			13,345

	At March 31, 2021
	Amortized		Allowances for		Unrealized		Unrealized		Market
(Dollars in thousands)	Cost		Credit Losses		Appreciation		Depreciation		Value
Fixed maturity securities
U.S. Treasury securities and obligations of U.S. government agencies and corporations	$	622,352	$	-	$	16,658	$	(167)	$	638,843
Obligations of U.S. states and political subdivisions		565,697		-		32,092		(2,741)		595,048
Corporate securities		3,660,209		(3,588)		114,692		(41,884)		3,729,429
Asset-backed securities		2,471,769		(4,915)		25,459		(2,210)		2,490,103
Mortgage-backed securities
Commercial		554,472		-		23,276		(5,158)		572,590
Agency residential		989,178		-		24,826		(8,153)		1,005,851
Non-agency residential		6,262		-		4		(2)		6,264
Foreign government securities		734,630		-		38,724		(4,065)		769,289
Foreign corporate securities		1,194,944		(205)		55,057		(7,212)		1,242,584
Total fixed maturity securities	$	10,799,513	$	(8,708)	$	330,788	$	(71,592)	$	11,050,001

	At September 30, 2017
	Amortized		Unrealized		Unrealized			Market		OTTI in AOCI
(Dollars in thousands)	Cost		Appreciation		Depreciation			Value		(a)
Fixed maturity securities
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	657,018	$	2,088	$	(3,220	)	$	655,886	$	-
Obligations of U.S. states and political subdivisions		652,525		24,061		(4,744	)		671,842		-
Corporate securities		2,213,498		38,058		(11,965	)		2,239,591		695
Asset-backed securities		153,400		451		(62	)		153,789		-
Mortgage-backed securities
Commercial		59,311		334		(622	)		59,023		-
Agency residential		683,178		1,904		(7,252	)		677,830		-
Non-agency residential		55		7		-			62		-
Foreign government securities		520,431		19,038		(7,996	)		531,473		-
Foreign corporate securities		1,034,840		25,601		(10,576	)		1,049,865		374
Total fixed maturity securities	$	5,974,256	$	111,542	$	(46,437	)	$	6,039,361	$	1,069

	At December 31, 2016
	Amortized		Unrealized		Unrealized			Market		OTTI in AOCI
(Dollars in thousands)	Cost		Appreciation		Depreciation			Value		(a)
Fixed maturity securities
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	693,005	$	2,509	$	(4,434	)	$	691,080	$	-
Obligations of U.S. states and political subdivisions		723,938		18,016		(11,970	)		729,984		-
Corporate securities		2,119,324		50,665		(15,786	)		2,154,203		4,868
Asset-backed securities		136,826		330		(129	)		137,027		-
Mortgage-backed securities
Commercial		75,435		510		(452	)		75,493		-
Agency residential		721,772		2,365		(8,993	)		715,144		-
Non-agency residential		76		12		-			88		-
Foreign government securities		495,572		22,088		(10,383	)		507,277		-
Foreign corporate securities		944,546		30,015		(14,361	)		960,200		175
Total fixed maturity securities	$	5,910,494	$	126,510	$	(66,508	)	$	5,970,496	$	5,043

	Duration of Unrealized Loss at March 31, 2021 By Security Type
	Less than 12 months				Greater than 12 months				Total
			Gross				Gross				Gross
	Market		Unrealized		Market		Unrealized		Market		Unrealized
(Dollars in thousands)	Value		Depreciation		Value		Depreciation		Value		Depreciation
Fixed maturity securities - available for sale
U.S. Treasury securities and obligations of U.S. government agencies and corporations	$	38,242	$	(167)	$	-	$	-	$	38,242	$	(167)
Obligations of U.S. states and political subdivisions		56,822		(1,710)		12,079		(1,031)		68,901		(2,741)
Corporate securities		790,015		(24,012)		187,655		(17,872)		977,670		(41,884)
Asset-backed securities		240,987		(1,749)		22,773		(461)		263,760		(2,210)
Mortgage-backed securities
Commercial		120,334		(5,158)		-		-		120,334		(5,158)
Agency residential		529,830		(8,000)		12,012		(153)		541,842		(8,153)
Non-agency residential		3,529		-		156		(2)		3,685		(2)
Foreign government securities		69,597		(1,550)		22,968		(2,515)		92,565		(4,065)
Foreign corporate securities		248,667		(5,705)		14,374		(1,507)		263,041		(7,212)
Total fixed maturity securities	$	2,098,023	$	(48,051)	$	272,017	$	(23,541)	$	2,370,040	$	(71,592)

	Duration of Unrealized Loss at September 30, 2017 By Security Type
	Less than 12 months					Greater than 12 months					Total
			Gross					Gross					Gross
			Unrealized					Unrealized					Unrealized
(Dollars in thousands)	Market Value		Depreciation			Market Value		Depreciation			Market Value		Depreciation
Fixed maturity securities - available for sale
U.S. Treasury securities and obligations of
U.S. government agencies and corporations	$	239,038	$	(2,191	)	$	37,447	$	(1,029	)	$	276,485	$	(3,220	)
Obligations of U.S. states and political subdivisions		89,509		(2,104	)		67,956		(2,640	)		157,465		(4,744	)
Corporate securities		415,341		(6,124	)		155,808		(5,841	)		571,149		(11,965	)
Asset-backed securities		30,657		(55	)		1,912		(7	)		32,569		(62	)
Mortgage-backed securities
Commercial		31,221		(487	)		3,803		(135	)		35,024		(622	)
Agency residential		417,521		(4,374	)		115,934		(2,878	)		533,455		(7,252	)
Non-agency residential		-		-			-		-			-		-
Foreign government securities		199,311		(4,486	)		56,732		(3,510	)		256,043		(7,996	)
Foreign corporate securities		254,015		(4,069	)		89,121		(6,507	)		343,136		(10,576	)
Total fixed maturity securities	$	1,676,613	$	(23,890	)	$	528,713	$	(22,547	)	$	2,205,326	$	(46,437	)

	Duration of Unrealized Loss at December 31, 2020 By Security Type
	Less than 12 months				Greater than 12 months				Total
			Gross				Gross				Gross
	Market		Unrealized		Market		Unrealized		Market		Unrealized
(Dollars in thousands)	Value		Depreciation		Value		Depreciation		Value		Depreciation
Fixed maturity securities - available for sale
Obligations of U.S. states and political subdivisions		19,524		(999)		4,059		(256)		23,583		(1,255)
Corporate securities		240,601		(7,799)		188,853		(23,681)		429,454		(31,480)
Asset-backed securities		223,919		(4,573)		81,952		(649)		305,871		(5,222)
Mortgage-backed securities
Commercial		37,414		(182)		3,983		(1)		41,397		(183)
Agency residential		235,809		(682)		1,573		(14)		237,382		(696)
Non-agency residential		161		(2)		-		-		161		(2)
Foreign government securities		10,505		(373)		25,793		(2,838)		36,298		(3,211)
Foreign corporate securities		57,900		(2,182)		18,349		(1,721)		76,249		(3,903)
Total fixed maturity securities	$	825,833	$	(16,792)	$	324,562	$	(29,160)	$	1,150,395	$	(45,952)

	Roll Forward of Allowance for Credit Losses
	Three Months Ended March 31, 2021								Three Months Ended March 31, 2020
			Asset		Foreign						Asset		Foreign
	Corporate		Backed		Corporate				Corporate		Backed		Corporate
	Securities		Securities		Securities		Total		Securities		Securities		Securities		Total
Beginning Balance	$	(1,205)	$	-	$	(361)	$	(1,566)	$	-	$	-	$	-	$	-
Credit losses on securities where credit
losses were not previously recorded		(2,383)		(4,915)		-		(7,298)		(11,468)		(70)		(561)		(12,099)
Increases in allowance on previously
impaired securities		-		-		-		-		-		-		-		-
Decreases in allowance on previously
impaired securities		-		-		-		-		-		-		-		-
Reduction in allowance due to disposals		-		-		156		156		-		-		-		-

Balance as of March 31	$	(3,588)	$	(4,915)	$	(205)	$	(8,708)	$	(11,468)	$	(70)	$	(561)	$	(12,099)

	Nine Months Ended			Twelve Months Ended
	September 30,			At December 31,
(Dollars in thousands)	2017			2016
Gross reserves at beginning of period	$	8,331,288		$	7,940,720
Less reinsurance recoverables		(4,199,791	)		(3,875,073	)
Net reserves at beginning of period		4,131,497			4,065,647

Incurred related to:
Current year		1,918,055			1,441,962
Prior years		453			(91,682	)
Total incurred losses and LAE		1,918,508			1,350,280

Paid related to:
Current year		441,480			400,489
Prior years		547,176			892,207
Total paid losses and LAE		988,656			1,292,696

Foreign exchange/translation adjustment		19,084			8,266

Net reserves at end of period		5,080,433			4,131,497
Plus reinsurance recoverables		4,888,715			4,199,791
Gross reserves at end of period	$	9,969,148		$	8,331,288

	Three Months Ended September 30, 2017								Nine Months Ended September 30, 2017
	Corporate		Foreign						Corporate		Foreign
(Dollars in thousands)	Securities		Corporate			Total			Securities		Corporate			Total
Beginning balance	$	86,140	$	3,151		$	89,291		$	65,197	$	2,538		$	67,735
Total gains or (losses) (realized/unrealized)
Included in earnings		283		210			493			1,208		314			1,522
Included in other comprehensive income (loss)		18		(230	)		(212	)		161		(230	)		(69	)
Purchases, issuances and settlements		15,628		-			15,628			35,503		509			36,012
Transfers in and/or (out) of Level 3		-		-			-			-		-			-
Ending balance	$	102,069	$	3,131		$	105,200		$	102,069	$	3,131		$	105,200

The amount of total gains or losses for the period included
in earnings (or changes in net assets) attributable to the
change in unrealized gains or losses relating to assets
still held at the reporting date	$	-	$	-		$	-		$	-	$	-		$	-

(Some amounts may not reconcile due to rounding.)

	At September 30,		At December 31,
(Dollars in thousands)	2017		2016
The Prudential	$	144,331	$	146,507
Unaffiliated life insurance company		33,769		33,860

	Three Months Ended					Nine Months Ended
U.S. Reinsurance	September 30,					September 30,
(Dollars in thousands)	2017			2016		2017			2016
Gross written premiums	$	908,346		$	654,770	$	1,962,297		$	1,597,006
Net written premiums		295,645			327,242		649,883			711,700

Premiums earned	$	242,350		$	249,203	$	652,953		$	709,064
Incurred losses and LAE		678,926			137,245		919,107			363,567
Commission and brokerage		31,698			48,107		115,243			147,968
Other underwriting expenses		12,094			14,265		40,623			39,856
Underwriting gain (loss)	$	(480,368	)	$	49,586	$	(422,020	)	$	157,673

	Three Months Ended					Nine Months Ended
International	September 30,					September 30,
(Dollars in thousands)	2017			2016		2017			2016
Gross written premiums	$	363,186		$	353,195	$	975,296		$	939,851
Net written premiums		130,180			141,295		345,387			353,449

Premiums earned	$	123,915		$	128,358	$	355,366		$	372,816
Incurred losses and LAE		410,543			41,830		557,416			206,672
Commission and brokerage		25,101			30,193		72,426			82,443
Other underwriting expenses		8,241			9,219		26,293			25,011
Underwriting gain (loss)	$	(319,970	)	$	47,116	$	(300,769	)	$	58,690

	Three Months Ended September 30,
	Current		Ratio %/				Prior			Ratio %/				Total		Ratio %/
(Dollars in millions)	Year		Pt Change				Years			Pt Change				Incurred		Pt Change
2017
Attritional	$	325.6		62.8	%		$	(0.9	)		-0.2	%		$	324.7		62.6	%
Catastrophes		1,007.8		194.4	%			(0.9	)		-0.2	%			1,006.9		194.2	%
Total	$	1,333.4		257.2	%		$	(1.8	)		-0.4	%		$	1,331.6		256.8	%

2016
Attritional	$	300.4		54.0	%		$	0.1			0.0	%		$	300.6		54.0	%
Catastrophes		20.9		3.8	%			(19.8	)		-3.6	%			1.0		0.2	%
Total	$	321.3		57.8	%		$	(19.7	)		-3.6	%		$	301.6		54.2	%

Variance 2017/2016
Attritional	$	25.2		8.8		pts	$	(1.0	)		(0.2	)	pts	$	24.1		8.6		pts
Catastrophes		986.9		190.6		pts		18.9			3.4		pts		1,005.9		194.0		pts
Total	$	1,012.1		199.4		pts	$	17.9			3.2		pts	$	1,030.0		202.6		pts

	Nine Months Ended September 30,
	Current			Ratio %/				Prior			Ratio %/				Total			Ratio %/
(Dollars in millions)	Year			Pt Change				Years			Pt Change				Incurred			Pt Change
2017
Attritional	$	878.8			60.3	%		$	4.4			0.3	%		$	883.2			60.6	%
Catastrophes		1,039.3			71.3	%			(3.9	)		-0.3	%			1,035.3			71.0	%
Total	$	1,918.1			131.6	%		$	0.5			0.0	%		$	1,918.5			131.6	%

2016
Attritional	$	894.7			58.5	%		$	0.9			0.1	%		$	895.6			58.6	%
Catastrophes		77.6			5.1	%			(37.0	)		-2.4	%			40.6			2.7	%
Total	$	972.3			63.6	%		$	(36.1	)		-2.3	%		$	936.2			61.3	%

Variance 2017/2016
Attritional	$	(15.9	)		1.8		pts	$	3.5			0.2		pts	$	(12.4	)		2.0		pts
Catastrophes		961.7			66.2		pts		33.1			2.1		pts		994.7			68.3		pts
Total	$	945.8			68.0		pts	$	36.6			2.3		pts	$	982.3			70.3		pts

(Some amounts may not reconcile due to rounding.)