The Company has entered into separate annuity agreements with The Prudential Insurance of America ("The 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.~~

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

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

8.12. OTHER 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 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)


	Three Months Ended June 30, 2023						Six Months Ended June 30, 2023
(Dollars in millions)	Before Tax		Tax Effect		Net of Tax		Before Tax		Tax Effect		Net of Tax
Unrealized appreciation (depreciation) ("URA(D)") on securities - non-credit related	$	(56)	$	12	$	(44)	$	86	$	(18)	$	68
Reclassification of net realized losses (gains) included in net income (loss)	8		(2)		6		19		(4)		15
Foreign currency translation adjustments	(5)		1		(4)		3		(1)		2
Reclassification of amortization of net gain (loss) included in net income (loss)	1		—		—		1		—		1
Total other comprehensive income (loss)	$	(53)	$	11	$	(42)	$	109	$	(23)	$	86

(Some amounts may not reconcile due to rounding)


	Three Months Ended June 30, 2022						Six Months Ended June 30, 2022
(Dollars in millions)	Before Tax		Tax Effect		Net of Tax		Before Tax		Tax Effect		Net of Tax
Unrealized appreciation (depreciation) ("URA(D)") on securities - non-credit related	$	(520)	$	109	$	(411)	$	(1,019)	$	213	$	(805)
Reclassification of net realized losses (gains) included in net income (loss)	8		(2)		6		11		(2)		8
Foreign currency translation adjustments	(12)		3		(10)		(15)		3		(12)
Reclassification of amortization of net gain (loss) included in net income (loss)	1		—		1		2		—		2
Total other comprehensive income (loss)	$	(524)	$	110	$	(414)	$	(1,021)	$	214	$	(807)

(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 June 30,				Six Months Ended June 30,				Affected line item within the statements of operations and comprehensive income (loss)
AOCI component	2023		2022		2023		2022
(Dollars in millions)
URA(D) on securities	$	8	$	8	$	19	$	11	Other net gains (losses) on investments
	(2)		(2)		(4)		(2)		Income tax expense (benefit)
	$	6	$	6	$	15	$	8	Net income (loss)

Benefit plan net gain (loss)	$	1	$	1	$	1	$	2	Other underwriting expenses
	—		—		—		—		Income tax expense (benefit)
	$	—	$	1	$	1	$	2	Net income (loss)

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)

(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:

	Nine Months Ended			Twelve Months Ended
	September 30,			December 31,				Three Months Ended June 30,				Six Months Ended June 30,
(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
(Dollars in millions)							(Dollars in millions)	2023		2022		2023		2022
Beginning balance of URA(D) on securities							Beginning balance of URA(D) on securities	$	(695)	$	(270)	$	(816)	$	122
Current period change in URA(D) of investments - non-credit related							Current period change in URA(D) of investments - non-credit related	(38)		(405)		83		(797)
Ending balance of URA(D) on securities							Ending balance of URA(D) on securities	(734)		(675)		(734)		(675)

Beginning balance of foreign currency translation adjustments		(9,852	)		(12,701	)	Beginning balance of foreign currency translation adjustments	8		18		2		20
Current period change in foreign currency translation adjustments		43,220			2,849		Current period change in foreign currency translation adjustments	(4)		(10)		2		(12)
Ending balance of foreign currency translation adjustments		33,368			(9,852	)	Ending balance of foreign currency translation adjustments	4		8		4		8

Beginning balance of benefit plan net gain (loss)		(65,504	)		(63,089	)	Beginning balance of benefit plan net gain (loss)	(33)		(50)		(33)		(51)
Current period change in benefit plan net gain (loss)		5,377			(2,415	)	Current period change in benefit plan net gain (loss)	—		1		1		2
Ending balance of benefit plan net gain (loss)		(60,127	)		(65,504	)	Ending balance of benefit plan net gain (loss)	(32)		(49)		(32)		(49)

Ending balance of accumulated other comprehensive income (loss)	$	17,459		$	(36,315	)	Ending balance of accumulated other comprehensive income (loss)	$	(762)	$	(716)	$	(762)	$	(716)

~~9. COLLATERALIZED REINSURANCE AND TRUST AGREEMENTS~~(Some amounts may not reconcile due to rounding.)

A subsidiary of the Company, Everest Re, has established a trust agreement, which effectively uses Everest Re's investments as collateral, as security for assumed losses payable to a non-affiliated ceding company. At September 30, 2017, the total amount on deposit in the trust account was $659,548 thousand.13. RELATED-PARTY TRANSACTIONS

On April 24, 2014, the Company entered into two collateralized reinsurance agreements with Kilimanjaro Re Limited ("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 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.

On December 1, 2015 the Company entered into two 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 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.

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, none of the published insured loss estimates for the 2017 catastrophe events have exceeded the single event 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). 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). 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" by Standard & Poor's.

~~10. SENIOR NOTES~~

The table below displays ~~Holdings'~~long-term note agreements that Group entered into with Everest Re for the periods indicated. These transactions are presented as Notes Receivable – Affiliated in the Consolidated Balance Sheet of Holdings. All note agreements listed were repaid in full during the second quarter of 2023 and are no longer outstanding ~~senior notes. Market~~as of June 30, 2023. Fair value ~~is based on quoted market prices, but due to limited trading activity,~~of these ~~senior~~long-term notes ~~are~~is considered Level 2 in the fair value hierarchy.

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


				June 30, 2023				December 31, 2022
(Dollars in millions)	Date Issued	Date Due	Principal Amounts	Consolidated Balance Sheet Amount		Fair Value		Consolidated Balance Sheet Amount		Fair Value
1.69% Long-term Note	12/17/2019	12/17/2028	300	$	—	$	—	$	300	$	242
1.00% Long-term Note	8/5/2021	8/5/2030	200	—		—		200		151
3.11% Long-term Note	6/14/2022	6/14/2052	215	—		—		215		171
4.34%Long-term Note	12/12/2022	12/12/2052	125	—		—		125		125
			840	$	—	$	—	$	840	$	689

~~On June 5, 2014, Holdings issued $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.~~(Some amounts may not reconcile due to rounding)

Interest ~~expense incurred~~income recognized in connection with these ~~senior~~long-term notes is as follows for the periods indicated:

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. LONG TERM SUBORDINATED NOTES~~


			Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	Interest Received	Receivable Dates	2023		2022		2023		2022
1.69% Long-term Note	annually	December 17	$	1	$	1	$	2	$	3
1.00% Long-term Note	annually	August 5	—		1		1		1
3.11% Long-term Note	annually	June 14	1		—		3		—
4.34% Long-term Note	annually	December 12	1		—		2		—
			$	3	$	2	$	7	$	4

~~The table below displays Holdings' outstanding fixed to floating rate long term subordinated notes. Market value is based on quoted market prices, but~~(Some amounts may not reconcile due to ~~limited trading activity, these subordinated notes are considered Level 2 in the fair value hierarchy.~~

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' 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 15, 2017. The reset quarterly interest rate for November 15, 2017 to November 15, 2017 is 3.70%.

rounding)

Holdings may redeem the long term subordinated notes on or after May 15, 2017, in whole or in part at 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% senior notes on October 15, 2014, the Company's 4.868% senior notes, due on June 1, 2044, have become the Company's long term indebtedness that ranks senior to the long term subordinated notes.

On March 19, 2009, Group announced the commencement of a cash tender offer for any and all of the 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.

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

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. SEGMENT REPORTING~~

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

These segments are managed independently, but conform with corporate guidelines with respect to pricing, risk management, control of aggregate catastrophe exposures, capital, investments and support operations. Management generally monitors and evaluates the financial performance of these operating segments based upon their underwriting results.

Underwriting results include earned premium less losses and loss adjustment expenses ("LAE") incurred, commission and brokerage expenses and other underwriting expenses. We measure our underwriting results using ratios, in particular loss, commission and brokerage and other underwriting expense ratios, which, respectively, divide incurred losses, commissions and brokerage and other underwriting expenses by premiums earned.

The Company does not maintain separate balance sheet data for its operating segments. Accordingly, the Company does not review and evaluate the financial results of its operating segments based upon balance sheet data.

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

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 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 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 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 revenues.~~

~~13. RELATED-PARTY TRANSACTIONS~~

~~Parent~~

Group entered into a $250,000 thousand long term promissory note agreement with Holdings as of December 31, 2014. The note will mature on December 31, 2023 and has an interest rate of 1.72% that is payable annually. This transaction is presented as a Note Receivable – Affiliated in the Consolidated Balance Sheets of Holdings. Interest income in the amount of $3,225 thousand and $3,225 thousand was recorded by Holdings for the nine months ended September 30, 2017, and September 30, 2016, respectively.

Group's Board of Directors approved an amended share repurchase program authorizing Group and/or its subsidiary Holdings to purchase 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~~
~~Amendment Date~~		~~Repurchase~~
~~(Dollars in thousands)~~

~~09/21/2004~~		~~5,000,000~~
~~07/21/2008~~		~~5,000,000~~
~~02/24/2010~~		~~5,000,000~~
~~02/22/2012~~		~~5,000,000~~
~~05/15/2013~~		~~5,000,000~~
~~11/19/2014~~		~~5,000,000~~
		~~30,000,000~~

~~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 forholds 1,773.214 preferred shares of Preferred Holdings with a ~~$1,000 thousand~~$1 million par value and 1.75% annual dividend rate. Holdings received these shares in December 2015 in exchange for previously held 9,719,971 common shares of Group. 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) on investments 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.~~indicated:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,					Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in thousands)	2017		2016		2017		2016
(Dollars in millions)									(Dollars in millions)	2023		2022		2023		2022
Dividends received on preferred stock of affiliate	$	7,758	$	7,758	$	23,274	$	23,274	Dividends received on preferred stock of affiliate	$	8	$	8	$	16	$	16

~~Affiliated Companies~~Affiliates

The Company has engaged in reinsurance transactions with Bermuda Re, Everest ~~Global Services, Inc. ("Global Services"~~Reinsurance Company (Ireland) dac (“Ireland Re”), ~~an affiliate~~Everest Insurance (Ireland) dac (“Ireland Insurance”), Everest International Reinsurance Ltd. (“Everest International”), Everest Insurance Company of ~~Holdings, provides centralized management~~Canada (“Everest Canada”), Lloyd’s Syndicate 2786 and ~~home office services, through a management agreement, to Holdings and other~~Mt. Logan Re, 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 millions)
Coverage Period	Ceding Company	Percent Ceded		Assuming Company	Type of Business	Single Occurrence Limit		Aggregate Limit
01/01/2010-12/31/2010	Everest Re	44.0	%	Bermuda Re	property / casualty business	150		325
01/01/2011-12/31/2011	Everest Re	50.0	%	Bermuda Re	property / casualty business	150		300
01/01/2012-12/31/2014	Everest Re	50.0	%	Bermuda Re	property / casualty business	100		200
01/01/2015-12/31/2016	Everest Re	50.0	%	Bermuda Re	property / casualty business	163		325
01/01/2017-12/31/2017	Everest Re	60.0	%	Bermuda Re	property / casualty business	219		438
01/01/2010-12/31/2010	Everest Re- Canadian Branch	60.0	%	Bermuda Re	property business	350	(1)	—
01/01/2011-12/31/2011	Everest Re- Canadian Branch	60.0	%	Bermuda Re	property business	350	(1)	—
01/01/2012-12/31/2012	Everest Re- Canadian Branch	75.0	%	Bermuda Re	property / casualty business	206	(1)	413	(1)
01/01/2013-12/31/2013	Everest Re- Canadian Branch	75.0	%	Bermuda Re	property / casualty business	150	(1)	413	(1)
01/01/2014-12/31/2017	Everest Re- Canadian Branch	75.0	%	Bermuda Re	property / casualty business	263	(1)	413	(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	—		—

(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.

(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, 2023.

Everest Re entered into a catastrophe excess of loss reinsurance contract with Bermuda Re (UK Branch), effective January 1, 2021 through December 31, 2021. The contract provides Bermuda Re (UK Branch) with up to £110 million of reinsurance coverage for each catastrophe occurrence above £29 million. Bermuda Re (UK Branch) paid Everest Re £4 million for this coverage. This contract was most recently renewed effective January 1, 2023.

Everest Re entered into a catastrophe excess of loss reinsurance contract with Ireland Re, effective February 1, 2023 through January 31, 2024. The contract provides Ireland Re with up to €121 million of reinsurance coverage for each catastrophe occurrence above €18 million. Ireland Re paid Everest Re €10 million for this coverage.

Everest Re entered into a catastrophe excess of loss reinsurance contract with Ireland Re, effective March 31, 2023 through January 31, 2024. The contract provides Ireland Re with up to €61 million of reinsurance coverage for each catastrophe occurrence above €139 million. Ireland Re paid Everest Re €2 million for this coverage.

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

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

(Dollars in millions)

Effective Date

Transferring Company

Assuming Company

% of Business or Amount of Transfer

Covered Period of Transfer

10/01/2001

Everest Re (Belgium Branch)

Bermuda Re

100

All years

10/01/2008

Everest Re

Bermuda Re

747

01/01/2002-12/31/2007

12/31/2017

Everest Re

Bermuda Re

970

All years

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 $2.3 billion for accident years 2017 and prior. As a result of the LPT agreement, the Company transferred $1.0 billion of cash and fixed maturity securities and transferred $970 million of loss reserves to ~~Clearwater Insurance Company, a Delaware domiciled insurance company.~~Bermuda Re. As part of the LPT agreement, Bermuda Re will provide an additional $500 million of adverse development coverage on the subject loss reserves. As of ~~that date, Mt. McKinley is no longer deemed an affiliated company or related party.~~

June 30,

2023 and December 31, 2022, the Company has a reinsurance recoverable of $803 million and $804 million, respectively, recorded on its balance sheet due from Bermuda Re.

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

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 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 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
Bermuda Re									Bermuda Re	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)									(Dollars in millions)	2023		2022		2023		2022
Ceded written premiums									Ceded written premiums	$	107	$	91	$	214	$	184
Ceded earned premiums									Ceded earned premiums	107		91		213		184
Ceded losses and LAE									Ceded losses and LAE	(5)		3		(9)		1

Assumed written premiums	$	15,984	$	351	$	34,069	$	890	Assumed written premiums	4		1		4		3
Assumed earned premiums		15,042		173		31,766		289	Assumed earned premiums	3		1		3		5
Assumed losses and LAE		7,893		-		16,157		-	Assumed losses and LAE	—		—		—		—

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.


Ireland Re	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	2023		2022		2023		2022
Assumed written premiums	$	3	$	2	$	6	$	4
Assumed earned premiums	3		2		6		5
Assumed losses and LAE	1		—		1		2

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.


Ireland Insurance	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	2023		2022		2023		2022
Assumed written premiums	$	11	$	2	$	12	$	4
Assumed earned premiums	8		2		10		4
Assumed losses and LAE	2		(5)		4		2

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.~~accounts:

	Three Months Ended				Nine Months Ended
Mt. Logan Re Segregated Accounts	September 30,				September 30,				Mt. Logan Re Segregated Accounts	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in thousands)	2017		2016		2017		2016
(Dollars in millions)									(Dollars in millions)	2023		2022		2023		2022
Ceded written premiums	$	54,057	$	57,911	$	131,939	$	128,292	Ceded written premiums	$	40	$	22	$	82	$	62
Ceded earned premiums		46,696		44,548		131,361		118,776	Ceded earned premiums	44		29		82		72
Ceded losses and LAE		180,540		7,420		223,973		32,750	Ceded losses and LAE	19		23		32		60

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.~~

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

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 Company contributed $10,000 thousand 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 and nine months ended September 30, 2016.

~~15.~~14. 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 (“AETR”) approach for calculating its tax provision for interim periods as prescribed by ASC 740-270, Interim Reporting. Under the estimated ~~annual effective tax rate~~AETR approach, the estimated ~~annual effective tax rate~~AETR is applied to the interim year-to-date pre-tax income/~~loss~~(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~~(loss) and ~~effective tax rate.~~AETR.

~~16. DISPOSITION~~

On August ~~24, 2016~~16, 2022, 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 onInflation Reduction Act of 2022 (“IRA”) was enacted. We have evaluated the ~~sale of Heartland of $12,942 thousand. Under the terms~~tax provisions of the ~~reinsurance arrangement, there has~~IRA, the most significant of which are the corporate alternative minimum tax and the share repurchase excise tax and do not ~~been~~expect the legislation to have a material ~~fluctuation in~~impact on our results of operations. As the ~~level of crop business, although it has been reflected as reinsurance rather than insurance.~~IRS issues additional guidance, we will evaluate any impact to our consolidated financial statements.

~~17.~~15. 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.

~~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. We continue to employ our strategy of targeting business that offers the greatest profit potential, while maintaining balance and diversification in our overall portfolio.

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 June 30,						Percentage Increase/ (Decrease)		Six Months Ended June 30,						Percentage Increase/ (Decrease)
(Dollars in millions)	2023			2022					2023			2022
Gross written premiums	$	2,915		$	2,437		19.6	%	$	5,411		$	4,642		16.6	%
Net written premiums	2,396			1,995			20.1	%	4,459			3,791			17.6	%

REVENUES:
Premiums earned	$	2,131		$	1,954		9.0	%	$	4,200		$	3,783		11.0	%
Net investment income	242			176			37.3	%	432			333			30.0	%
Net gains (losses) on investments	(22)			(378)			-94.2	%	—			(605)			NM
Other income (expense)	(10)			—			NM		(15)			(9)			65.9	%
Total revenues	2,341			1,753			33.5	%	4,618			3,502			31.9	%

CLAIMS AND EXPENSES:
Incurred losses and loss adjustment expenses	1,325			1,304			1.6	%	2,719			2,530			7.5	%
Commission, brokerage, taxes and fees	433			409			5.9	%	869			793			9.6	%
Other underwriting expenses	136			120			13.1	%	275			238			15.5	%
Corporate expenses	4			6			-36.3	%	10			12			-12.6	%
Interest, fees and bond issue cost amortization expense	33			24			35.0	%	65			48			34.0	%
Total claims and expenses	1,930			1,863			3.6	%	3,938			3,621			8.8	%

INCOME (LOSS) BEFORE TAXES	411			(110)			NM		679			(119)			NM
Income tax expense (benefit)	81			(25)			NM		130			(35)			NM
NET INCOME (LOSS)	$	330		$	(86)		NM		$	549		$	(85)		NM

RATIOS:							Point Change								Point Change
Loss ratio	62.2		%	66.7		%	(4.6)		64.7		%	66.9		%	(2.1)
Commission and brokerage ratio	20.3		%	20.9		%	(0.6)		20.7		%	21.0		%	(0.3)
Other underwriting expense ratio	6.4		%	6.2		%	0.2		6.5		%	6.3		%	0.3
Combined ratio	88.9		%	93.8		%	(4.9)		92.0		%	94.1		%	(2.1)

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)


	At June 30,		At December 31,		Percentage Increase/ (Decrease)
(Dollars in millions)	2023		2022
Balance sheet data:
Total investments and cash	$	21,056	$	19,195	9.7	%
Total assets	29,494		27,957		5.5	%
Loss and loss adjustment expense reserves	15,512		14,977		3.6	%
Total debt	3,085		3,084		—	%
Total liabilities	23,204		22,303		4.0	%
Stockholder's equity	6,290		5,654		11.2	%

35(NM, not meaningful)

(Some amounts may not reconcile due to rounding)

Revenues.

Premiums. Gross written premiums increased by ~~13.0%~~19.6% to ~~$1,701.1 million~~$2.9 billion for the three months ended ~~September~~ June 30, ~~2017,~~2023, compared to ~~$1,505.9 million~~$2.4 billion for the three months ended ~~September~~ June 30, ~~2016,~~2022, reflecting a ~~$263.6~~$397 million, or ~~26.1%~~28.5%, increase in our reinsurance business and ~~a $68.4~~an $82 million, or ~~13.7%~~7.8%, ~~decrease~~increase in our insurance business. The increase in reinsurance premiums was ~~mainly~~primarily due to ~~the new crop reinsurance transactions,~~ increases ~~in financial~~across lines of ~~business and the influx of reinstatement premiums related to multiple catastrophe events in the third quarter.~~business. The ~~decline~~increase in insurance premiums was primarily due

to ~~the sale of Heartland Crop Insurance, Inc. ("Heartland") which accounted for $162.4 million of gross written premium~~increases in ~~the third quarter of 2016. Excluding the impact of Heartland, insurance premiums rose by $94.0 million due to increased production in many~~property/short tail business and other specialty lines of ~~business, including retail casualty, surety and accident and health.~~business. Gross written premiums increased by ~~12.5%~~16.6% to ~~$4,289.1 million~~$5.4 billion for the ~~nine~~six months ended ~~September~~ June 30, ~~2017,~~2023, compared to ~~$3,813.6 million~~$4.6 billion for the ~~nine~~six months ended ~~September~~ June 30, ~~2016,~~2022, reflecting a ~~$400.7~~$660 million, or ~~15.8%~~23.8%, increase in our reinsurance business and a ~~$74.7~~$109 million, or ~~5.9%~~5.8%, 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~~across all lines of ~~business and the influx of reinstatement premiums related to multiple catastrophe events in the third quarter.~~business. The ~~rise~~increase in insurance premiums ~~was primarily due to~~reflects increases in ~~many~~property/short tail business and other specialty lines of ~~business, including retail casualty, accident and health and surety, partially offset by the impact of the sale of Heartland.~~business.

Net written premiums ~~decreased~~increased by ~~8.3%~~20.1% to ~~$570.8~~$2.4 billion for the three months ended June 30, 2023, compared to $2.0 billion for the three months ended June 30, 2022 and increased by 17.6% to $4.5 billion for the six months ended June 30, 2023, compared to $3.8 billion for the six months ended June 30, 2022. Premiums earned generally reflect the portion of net premiums written that was recorded as revenues for the period as the exposure periods expire. Premiums earned increased by 9.0% to $2.1 billion for the three months ended June 30, 2023, compared to $2.0 billion for the three months ended June 30, 2022 and increased by 11.0% to $4.2 billion for the six months ended June 30, 2023, compared to $3.8 billion for the six months ended June 30, 2022.

Other Income (Expense). We recorded other expense of $10 million and other income of $0.5 million for the three months ended ~~September~~ June 30, ~~2017, compared to $622.6 million for the three months ended~~ ~~September~~ ~~30, 2016,~~2023 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 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 earned decreased by 6.9% to $518.5 million for the three months ended ~~September~~ ~~30, 2017, compared to $556.7 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. 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% to $73.4 million for the three months ended~~ ~~September~~ ~~30, 2017 compared with net investment income of $64.6 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. Net pre-tax investment income as a percentage of average invested assets was 3.0% for the three months ended~~ ~~September~~ ~~30, 2017, compared to 2.7% for the three months ended~~ ~~September~~ ~~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, respectively.~~ ~~The net realized capital gains of $228.5 million were comprised of~~ ~~$227.5 million of gains from fair value re-measurements on equity securities and other invested assets and $2.4~~ ~~million of gains from sales on our fixed maturity and equity securities, partially offset by $1.5 million of other-than-temporary impairments. The net realized capital losses of $50.1 million~~ ~~for the three months ended~~ ~~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 million were comprised of $237.8 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~~ million of losses from sales on our fixed maturity and equity securities and $11.7 million of losses from fair value re-measurements on fixed maturity securities, equity securities and other invested assets.

~~Other Income (Expense).~~ ~~We recorded other income of $1.5 million and $22.0 million~~ ~~for the three and nine months ended September 30,~~ ~~2017,~~2022, respectively. We recorded other expense of $~~13.2~~$15 million and $~~10.8~~other expense of $9 million for the ~~three and nine~~six months ended ~~September~~June 30, ~~2016,~~2023 and 2022, respectively. The changes were primarily the result of fluctuations in foreign currency exchange rates.

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

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

Claims and Expenses.

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


	Three Months Ended June 30,
(Dollars in millions)	Current Year		Ratio %/ Pt Change		Prior Years		Ratio %/ Pt Change		Total Incurred		Ratio %/ Pt Change
2023
Attritional	$	1,297	60.9	%	$	1	0.1	%	$	1,299	61.0	%
Catastrophes	19		0.9	%	7		0.3	%	26		1.2	%
Total	$	1,316	61.8	%	$	8	0.4	%	$	1,325	62.2	%

2022
Attritional	$	1,237	63.3	%	$	—	—	%	$	1,237	63.3	%
Catastrophes	65		3.3	%	2		0.1	%	67		3.4	%
Total	$	1,302	66.6	%	$	2	0.1	%	$	1,304	66.7	%

Variance 2023/2022
Attritional	$	61	(2.4)	pts	$	1	0.1	pts	$	62	(2.3)	pts
Catastrophes	(46)		(2.4)	pts	5		0.2	pts	(41)		(2.2)	pts
Total	$	15	(4.8)	pts	$	6	0.3	pts	$	21	(4.6)	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 $ 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.)


	Six Months Ended June 30,
(Dollars in millions)	Current Year		Ratio %/ Pt Change		Prior Years		Ratio %/ Pt Change		Total Incurred		Ratio %/ Pt Change
2023
Attritional	$	2,598	61.9	%	$	—	—	%	$	2,598	61.9	%
Catastrophes	122		2.9	%	—		—	%	121		2.9	%
Total	$	2,720	64.8	%	$	(1)	—	%	$	2,719	64.7	%

2022
Attritional	$	2,375	62.8	%	$	—	—	%	$	2,375	62.8	%
Catastrophes	145		3.8	%	9		0.2	%	155		4.1	%
Total	$	2,521	66.6	%	$	9	0.2	%	$	2,530	66.9	%

Variance 2023/2022
Attritional	$	223	(0.9)	pts	$	—	—	pts	222		(0.9)	pts
Catastrophes	(24)		(1.0)	pts	(9)		(0.2)	pts	(33)		(1.2)	pts
Total	$	199	(1.9)	pts	$	(10)	(0.3)	pts	$	189	(2.1)	pts

(Some amounts may not reconcile due to rounding.)

Incurred losses and LAE increased by 1.6% to ~~$1,331.6~~$1.3 billion for the three months ended June 30, 2023 compared to $1.3 billion for the three months ended June 30, 2022, primarily due to an increase of $61 million in current year attritional losses and a decrease of $46 million in current year catastrophe losses. The increase in current year attritional losses was mainly due to the impact of the increase in premiums earned. The current year catastrophe losses of $19 million for the three months ended ~~September~~June 30, ~~2017 compared~~2023 mainly related to ~~$301.6~~the 2023 Turkey earthquakes ($18 million), Typhoon Mawar ($12 million), and the 2023 2nd quarter U.S. storms ($10 million), partially offset by $25 million of reinsurance recoveries related to Hurricane Ian. The current year catastrophe losses of $65 million for the three months ended ~~September~~June 30, ~~2016,~~2022 related to 2022 South Africa flood ($38 million), the 2022 Canada derecho ($16 million) and the 2022 2nd quarter U.S. storms ($12 million). Prior year incurred development of $8 million for the three months ended June 30, 2023 is primarily driven by unfavorable movement on prior year catastrophes.

Incurred losses and LAE increased by 7.5% to $2.7 billion for the six months ended June 30, 2023 compared to $2.5 billion for the six months ended June 30, 2022, primarily due to an increase of ~~$986.9~~$223 million in current year attritional losses and a decrease of $24 million in current year catastrophe ~~losses, an~~losses. The increase in current year attritional losses of $25.2 million and $19.8 million of favorable development on prior years catastrophe losses in 2016, primarily related to the 2011 Japan earthquake, which did not recur in 2017. The increase in attritional losses was ~~primarily~~mainly due to the impact of ~~changes~~the increase in ~~affiliated quota share contracts~~premiums earned. The current year catastrophe losses of $122 million for the six months ended June 30, 2023 related to 2023 Turkey earthquakes ($83 million), the 2023 New Zealand storms ($42 million), Typhoon Mawar ($12 million), and the 2023 2nd quarter U.S. storms ($10 million), partially offset by $25 million of reinsurance recoveries related to Hurricane Ian. The current year catastrophe losses of $145 million for the six months ended June 30, 2022 primarily related to 2022 Australia floods ($71 million), 2022 South Africa flood ($38 million), the 2022 Canada derecho ($16 million), 2022 2nd quarter U.S. storms ($12 million), and the 2022 March U.S. storms ($9 million).

Commission, Brokerage, Taxes and Fees. Commission, brokerage, taxes and fees increased to $433 million for the three months ended June 30, 2023 compared to $409 million for the three months ended June 30, 2022. Commission, brokerage, taxes and fees increased to $869 million for the six months ended June 30, 2023 compared to $793 million for the six months ended June 30, 2022. The increases were mainly due to the impact of the increase in premiums earned and changes in the mix of business. ~~The current year catastrophe losses of $1,007.8 million~~ ~~for the three months ended~~ ~~September~~ ~~30,~~ ~~2017 related~~

Other Underwriting Expenses. Other underwriting expenses increased to ~~Hurricane Irma ($476.2 million), Hurricane Maria ($318.9 million), Hurricane Harvey ($180.7 million) and the Mexico City earthquake ($32.1 million). The current year catastrophe losses of $20.9~~$136 million for the three months ended ~~September~~June 30, 2016 were related to Hurricane Hermine ($6.8 million), 2016 U.S. Storms ($6.6 million), the Fort McMurray Canada wildfire ($5.0 million), the Taiwan earthquake ($2.3 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~~2023 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 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 decreased by 58.3% to $34.5 million~~ ~~for the three months ended~~ ~~September~~ ~~30,~~ ~~2017 compared to~~ ~~$82.8~~$120 million for the three months ended ~~September~~June 30, ~~2016.~~ ~~Commission, brokerage, taxes and fees decreased by 32.8%~~2022. Other underwriting expenses increased to ~~$147.6 million~~ ~~for the nine months ended September 30,~~ ~~2017 compared to~~ ~~$219.6~~$275 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016.~~2023 compared to $238 million for the six months ended June 30, 2022. The ~~decreases~~increases were ~~primarily~~mainly due to the impact of the ~~decrease~~increase in premiums earned and costs incurred to support the ~~impact~~expansion of ~~affiliated quota share contracts.~~the insurance business.

~~Other Underwriting Expenses.~~ ~~Other underwriting expenses were $57.7 million~~ ~~and~~ $64.1 million for the three months ended September 30, 2017 and September 30, 2016, respectively. The decrease for the three month period was primarily due to lower variable compensation costs. Other underwriting expenses were flat at $181.8 million ~~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, have decreased ~~slightly~~ to ~~$1.1~~$4 million from ~~$1.8~~ $6 million for the three months ended ~~September~~June 30, ~~2017~~2023 and ~~2016,~~2022, respectively, and ~~were flat at $6.2~~decreased to $10 million from $12 million for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2023 and ~~2016,~~2022, respectively. The variances are mainly due to changes in variable incentive compensation expenses.

Interest, Fees and Bond Issue Cost Amortization Expense. Interest, fees and other bond amortization ~~were $7.2~~expense was $33 million and ~~$8.9~~$24 million for the three months ended ~~September~~June 30, ~~2017~~ 2023 and ~~2016,~~2022, respectively. Interest, fees and other bond amortization ~~were $24.0~~expense was $65 million and ~~$26.6~~$48 million for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~ 2023 and ~~2016,~~2022, respectively. The ~~decreases in expense for both the three and nine month periods~~increases were ~~primarily~~mainly due to higher interest costs on the ~~conversion~~FHLBNY borrowing as a result of the ~~long term subordinated notes from a fixed~~rising interest rate ~~of 6.6%~~environment. Interest expense was also impacted by the movements in the floating interest rate related to ~~a floating rate,~~the Company’s long-term Subordinated Notes Issued 2007, which is reset quarterly per the note agreement. The floating rate was ~~3.70%~~7.71% as of ~~September~~June 30, ~~2017.~~2023.

Income Tax Expense (Benefit). We had an income tax expense of $81 million and $130 million for the three and six months ended June 30, 2023, respectively. We had income tax benefit of ~~$220.5~~$25 million and i~~ncome tax expense of~~ ~~$22.4~~$35 million for the three and six months ended ~~September~~June 30, ~~2017 and 2016,~~2022, respectively. ~~We had an 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~~Income tax 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, ~~and~~ foreign tax credits and ~~as calculated under the annualized effective tax rate ("AETR") method.~~dividends. 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, foreign exchange gains (losses) and net ~~capital~~ gains (losses)~~. However, if~~ on investments, among jurisdictions with different tax rates.

On August 16, 2022, the ~~AETR approach produces a year-to-date tax benefit which exceeds the amount which is estimated to be recoverable for the full year, then~~Inflation Reduction Act of 2022 (“IRA”) was enacted. We have evaluated the tax ~~benefit for~~provisions of the ~~interim reporting period~~IRA, the most significant of which are the corporate alternative minimum tax and the share repurchase excise tax and do not expect the legislation to have a material impact on our results of operations. As the IRS issues additional guidance, we will ~~be limited, as prescribed under ASC 740-270,~~evaluate any impact to ~~the estimated tax recoverable based on the year-to-date result. The decrease 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.~~our consolidated financial statements.

Net Income (Loss).

Our net ~~loss~~income was ~~$389.7~~$330 million and our net ~~income~~loss was ~~$76.3~~$86 million, for the three months ended ~~September~~June 30, ~~2017~~2023 and ~~2016,~~2022, respectively. Our net income was $549 million and net loss was ~~$184.9~~$85 million, ~~and our net income was $186.7 million~~ for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2023 and ~~2016,~~2022 respectively. The changes were primarily driven by the financial component fluctuations explained above.

Ratios.

Our combined ratio ~~increased~~decreased by ~~194.0~~4.9 points to ~~274.6%~~88.9% for the three months ended ~~September~~June 30, ~~2017,~~2023, compared to ~~80.6%~~93.8% for the three months ended ~~September~~June 30, ~~2016,~~2022 and ~~increased~~decreased by ~~66.6~~2.1 points to ~~154.2%~~92.0% for the ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2023 compared to ~~87.6%~~94.1% for the ~~nine~~six months ended ~~September~~June 30, ~~2016.~~2022. The loss ratio ~~components increased 202.6 points and 70.3~~component decreased by 4.6 points for the three ~~and nine~~ months ended ~~September~~June 30, ~~2017, respectively,~~2023 over the ~~same~~corresponding period last ~~year. The changes were mainly~~year primarily due to ~~the increases~~a decrease of $46 million in current year catastrophe ~~losses.~~losses and lack of losses from the war in Ukraine in 2023. In the second quarter 2022, the Company established reserves of $45 million for losses from the war in the Ukraine. The loss ratio component decreased by 2.1 points for the six months ended June 30, 2023 over the corresponding period last year primarily due to a decrease of $24 million in current year catastrophe losses and no losses from the war in Ukraine in 2023. The commission and brokerage ratio components decreased slightly to ~~6.7% from 14.9%~~20.3% for the three months ended ~~September~~June 30, ~~2017 and 2016, respectively,~~2023 compared to 20.9% for the three months ended June 30, 2022 and decreased to ~~10.1% from 14.4%~~20.7% for the ~~nine~~six months ended ~~September~~June 30, ~~2017 and 2016, respectively. The decreases reflect~~2023 compared to 21.0% for the six months ended June 30, 2022. These changes were mainly due to 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 ~~decreased~~increased to ~~11.1%~~6.4% from ~~11.5%~~6.2% for the three months ended ~~September~~June 30, ~~2017~~2023 and ~~2016,~~2022, respectively, and increased to ~~12.5%~~6.5% from ~~11.9%~~6.3% for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2023 and ~~2016,~~2022, respectively. ~~The decrease in the three month period was~~These increases were mainly due to ~~lower variable compensation costs. The increase in the nine month period was due to~~insurance operations costs associated with the continued ~~expansion~~build out of the insurance ~~business, partially offset~~platform.

Stockholder’s Equity.

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

~~Stockholder's Equity.~~

~~Stockholders' equity decreased by $130.9~~$636 million to ~~$5,167.6 million~~ $6.3 billion at ~~September~~June 30, ~~2017~~ 2023 from ~~$5,298.6 million~~$5.7 billion at December 31, ~~2016,~~2022, principally as a result of ~~$184.9~~$549 million of net ~~loss, partially offset by $43.2~~income, $83 million of net unrealized appreciation on investments, net of tax, and $2 million of net foreign currency translation ~~adjustments, $5.4 million of net benefit plan obligation adjustments, $5.2 million of net~~adjustments. The movement in the unrealized ~~depreciation~~appreciation on investments ~~net of tax and $0.2 million of share-based compensation transactions.~~was driven by the change in interest rates on the Company’s fixed maturity - available for sale portfolio.

Consolidated Investment Results

Net Investment Income.

Net investment income increased ~~by 13.7%~~ to ~~$73.4~~$242 million for the three months ended ~~September~~June 30, ~~201~~72023, compared to ~~$64.6~~$176 million for the three months ended ~~September~~June 30, ~~201~~6.2022. Net investment income increased ~~by 4.7%~~ to ~~$206.2~~$432 million for the ~~nine~~six months ended ~~September~~June 30, ~~201~~72023, compared to ~~$196.9~~$333 million for the ~~nine~~six months ended ~~September~~June 30, ~~201~~6.2022. The increases ~~for the three and nine month periods~~ were primarily ~~due to~~the result of an increase in income from fixed maturity securities, partially offset by reductions in income from limited partnerships. The limited partnership income primarily reflects changes in their reported NAVs. Accordingly, until these asset values are monetized and ~~higher~~the resultant income ~~from~~is distributed, they are subject to future increases or decreases in the ~~growing fixed income portfolio, partially offset by lower dividend income from our equity portfolio.~~NAV, and the results may be volatile.

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


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	2023		2022		2023		2022
Fixed maturities	$	199	$	116	$	374	$	210
Equity securities	1		5		2		9
Short-term investments and cash	16		1		27		1
Other invested assets
Limited partnerships	22		45		(1)		89
Dividends from preferred shares of affiliate	8		8		16		16
Other	6		14		27		26
Gross investment income before adjustments	252		188		444		350
Funds held interest income (expense)	(1)		1		1		3
Interest income from Group	3		2		7		4
Gross investment income	253		190		453		357
Investment expenses	(11)		(14)		(21)		(24)
Net investment income	$	242	$	176	$	432	$	333

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.)

(Some amounts may not reconcile due to rounding.)

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


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Annualized pre-tax yield on average cash and invested assets	4.5	%	3.6	%	4.1	%	3.5	%
Annualized after-tax yield on average cash and invested assets	3.6	%	2.9	%	3.3	%	2.8	%

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). on Investments.

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


	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in millions)	2023		2022		Variance		2023		2022		Variance
Realized gains (losses) from dispositions:
Fixed maturity securities - available for sale
Gains	$	1	$	3	$	(2)	$	4	$	6	(3)
Losses	(8)		(13)		5		(12)		(21)		9
Total	(7)		(10)		2		(9)		(15)		6

Equity securities
Gains	—		4		(4)		7		8		(1)
Losses	—		(34)		34		—		(46)		46
Total	—		(30)		30		7		(38)		45

Other Invested Assets
Gains	—		3		(3)		—		8		(8)
Losses	—		(3)		3		—		(3)		3
Total	—		1		(1)		—		5		(5)

Short-Term Investments
Gains	1		—		1		1		—		1
Losses	—		—		—		—		—		—
Total	—		—		—		—		—		1

Total net realized gains (losses) from dispositions
Gains	1		11		(9)		11		22		(11)
Losses	(8)		(50)		41		(12)		(70)		58
Total	(7)		(39)		32		(1)		(49)		47

Allowance for credit losses	—		2		(2)		(10)		—		(10)

Gains (losses) from fair value adjustments
Equity securities	8		(186)		194		11		(317)		328
Other invested assets	(23)		(155)		132		1		(239)		241
Total	(15)		(341)		326		12		(556)		568

Total net gains (losses) on investments	$	(22)	$	(378)	$	356	$	—	$	(605)	$	605

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.)

(Some amounts may not reconcile due to rounding.)

Net ~~realized capital~~ gains ~~were $228.5 million and net realized capital losses were $50.1 million for~~(losses) on investments during the three months ended ~~September~~June 30, ~~2017 and 2016, respectively. For~~2023 primarily related to net losses from fair value adjustments of $15 million as a result of market declines during the ~~three months ended September 30, 2017~~second quarter of 2023. In addition, we recorded ~~$227.5~~$7 million of net realized ~~capital~~losses from disposition of investments. There were no allowances for credit losses during the second quarter of 2023.

Net gains ~~due~~(losses) on investments during the six months ended June 30, 2023 primarily related to net gains from fair value ~~re-measurements on~~adjustments of $12 million as a result of equity ~~securities and other invested assets and $2.4~~market increases during 2023, partially offset by $1 million of net realized ~~capital gains~~losses from ~~sales~~disposition of ~~fixed maturity~~investments and ~~equity securities, partially offset by $1.5~~$10 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~~credit allowances 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 and 2016 related primarily to adjusting the portfolios 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 of net realized capital gains due to 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 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 and equity securities and $11.7 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 for the nine months ended September 30, 2017 and 2016 related primarily to adjusting the portfolios for overall market changes and individual credit shifts.

Segment Results.

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

The Reinsurance operation writes risks on a worldwide basis in 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. We write reinsurance business from entities chartered in the ~~U.S. The International operation writes non-U.S. property~~United States and ~~casualty reinsurance~~Bermuda as well as through ~~Everest Re's~~ branches of those entities established 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 and Bermuda.

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~~result from dividing 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.

Management’s best estimate is developed through collaboration with actuarial, underwriting, claims, legal and finance departments and culminates with the input of reserve committees. Each segment reserve committee includes the participation of the relevant parties from actuarial, finance, claims and segment senior management and has the responsibility for recommending and approving management’s best estimate. Reserves are further reviewed by Everest’s Chief Reserving Actuary and senior management. The objective of such process is to determine a single best estimate viewed by management to be the best estimate of its ultimate loss liability.

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.~~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 $ 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)


	Three Months Ended June 30,										Six Months Ended June 30,
(Dollars in millions)	2023			2022			Variance		% Change		2023			2022			Variance		% Change
Gross written premiums	$	1,791		$	1,394		397		28.5	%	$	3,434		$	2,774		$	660	23.8	%
Net written premiums	1,580			1,245			335		26.9	%	2,953			2,430			523		21.5	%

Premiums earned	$	1,417		$	1,295		$	122	9.4	%	$	2,784		$	2,504		$	279	11.2	%
Incurred losses and LAE	864			875			(11)		(1.3)	%	1,794			1,696			98		5.8	%
Commission and brokerage	363			332			31		9.4	%	724			647			77		11.9	%
Other underwriting expenses	36			32			4		11.7	%	75			63			12		18.2	%
Underwriting gain (loss)	$	153		$	55		$	98	NM		$	191		$	98		$	93	95.7	%

									Point Chg										Point Chg
Loss ratio	61.0		%	67.6		%			(6.6)		64.4		%	67.7		%			(3.3)
Commission and brokerage ratio	25.6		%	25.6		%			—		26.0		%	25.8		%			0.2
Other underwriting expense ratio	2.6		%	2.5		%			0.1		2.7		%	2.5		%			0.2
Combined ratio	89.2		%	95.7		%			(6.6)		93.1		%	96.1		%			(3.0)

(Some amounts may not reconcile due to rounding.)

(NM, not meaningful)

Premiums.Gross written premiums increased by ~~38.7%~~28.5% to ~~$908.3 million~~$1.8 billion for the three months ended ~~September~~June 30, ~~201~~72023 from ~~$654.8 million~~$1.4 billion for the three months ended ~~September~~June 30, ~~201~~6,2022, primarily due to ~~the new crop reinsurance business related to the sale~~increases across all lines of ~~Heartland and the influx of reinstatement premiums due to the catastrophe losses.~~business. Net written premiums ~~decreased~~increased by ~~9.7%~~26.9% to ~~$295.6 million~~$1.6 billion for the three months ended ~~September~~June 30, ~~201~~72023, compared to ~~$327.2 million~~$1.2 billion for the

three months ended June 30, 2022, which is consistent with the percentage change in gross written premiums. Premiums earned generally reflect the portion of net premiums written that was recorded as revenues for the period as the exposure periods expire. Premiums earned increased by 9.4% to $1.4 billion for the three months ended ~~September~~June 30, ~~201~~6. ~~The difference between the change in gross written premiums~~2023 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 2.8% to $242.4 million$1.3 billion for the three months ended ~~September~~June 30, ~~201~~7 ~~compared to $249.2 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.2022.

Gross written premiums increased by ~~22.9%~~23.8% to ~~$1,962.3 million~~$3.4 billion for the ~~nine~~six months ended ~~September~~June 30, ~~201~~72023 from ~~$1,597.0 million~~$2.8 billion for the ~~nine~~six months ended ~~September~~June 30, ~~201~~6,2022 primarily due to ~~the new crop reinsurance~~a decline in property pro rata business, partially offset by an increase in ~~treaty~~ casualty ~~business and the influx of reinstatement premiums due to the catastrophe losses.~~pro rata business. Net written premiums ~~decreased~~increased by ~~8.7%~~21.5% to ~~$649.9 million~~$3.0 billion for the ~~nine~~six months ended ~~September~~June 30, ~~201~~72023, compared to ~~$711.7 million~~$2.4 billion for the ~~nine~~six months ended ~~September~~June 30, ~~201~~6. ~~The difference between~~2022, which is consistent with the change in gross written premiums. Premiums earned generally reflect the portion of net premiums written that was recorded as revenues for the period as the exposure periods expire. Premiums earned increased by 11.2% to $2.8 billion for the six months ended June 30, 2023, 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~~$2.5 billion for the ~~nine~~six months ended ~~September~~June 30, ~~201~~7 ~~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.2022.

Incurred Losses and LAE.The following ~~table presents~~tables present the incurred losses and LAE for the ~~U.S.~~ Reinsurance segment for the periods ~~indicated.~~indicated:

	Three Months Ended September 30,
	Current			Ratio %/				Prior			Ratio %/				Total			Ratio %/					Three Months Ended June 30,
(Dollars in millions)	Year			Pt Change				Years			Pt Change				Incurred			Pt Change				(Dollars in millions)	Current Year		Ratio %/ Pt Change		Prior Years		Ratio %/ Pt Change		Total Incurred		Ratio %/ Pt Change
2017
2023																						2023
Attritional	$	128.0			52.8	%		$	(0.4	)		-0.2	%		$	127.5			52.6	%		Attritional	$	836	59.0	%	$	1	0.1	%	838		59.1	%
Catastrophes		551.6			227.6	%			(0.2	)		-0.1	%			551.4			227.5	%		Catastrophes	19		1.4	%	7		0.5	%	27		1.9	%
Total segment	$	679.6			280.4	%		$	(0.6	)		-0.3	%		$	678.9			280.1	%
Total Segment																						Total Segment	$	855	60.4	%	$	9	0.6	%	$	864	61.0	%

2016
2022																						2022
Attritional	$	129.8			52.1	%		$	(1.0	)		-0.4	%		$	128.8			51.7	%		Attritional	$	813	62.8	%	$	—	0.0	%	813		62.8	%
Catastrophes		14.4			5.8	%			(5.9	)		-2.4	%			8.5			3.4	%		Catastrophes	60		4.6	%	3		0.2	%	63		4.8	%
Total segment	$	144.2			57.9	%		$	(6.9	)		-2.8	%		$	137.2			55.1	%
Total Segment																						Total Segment	$	873	67.4	%	$	3	0.2	%	$	875	67.6	%

Variance 2017/2016
Variance 2023/2022																						Variance 2023/2022
Attritional	$	(1.8	)		0.7		pts	$	0.6			0.2		pts	$	(1.3	)		0.9		pts	Attritional	$	24	(3.7)	pts	$	1	0.1	pts	$	25	(3.6)	pts
Catastrophes		537.2			221.8		pts		5.7			2.3		pts		542.9			224.1		pts	Catastrophes	(41)		(3.3)	pts	5		0.3	pts	(36)		(3.0)	pts
Total segment	$	535.4			222.5		pts	$	6.3			2.5		pts	$	541.7			225.0		pts
Total Segment																						Total Segment	$	(17)	(7.0)	pts	$	6	0.4	pts	$	(11)	(6.6)	pts

43(Some amounts may not reconcile due to rounding.)


	Six Months Ended June 30,
(Dollars in millions)	Current Year		Ratio %/ Pt Change		Prior Years		Ratio %/ Pt Change		Total Incurred		Ratio %/ Pt Change
2023
Attritional	$	1,671	60.0	%	$	2	0.1	%	1,673		60.1	%
Catastrophes	120		4.3	%	1		—	%	121		4.3	%
Total Segment	$	1,791	64.3	%	$	3	0.1	%	$	1,794	64.4	%

2022
Attritional	$	1,550	61.9	%	$	—	—	%	1,551		61.9	%
Catastrophes	135		5.4	%	10		0.4	%	145		5.8	%
Total Segment	$	1,686	67.3	%	$	10	0.4	%	$	1,696	67.7	%

Variance 2023/2022
Attritional	$	120	(1.9)	pts	$	2	0.1	pts	$	122	(1.8)	pts
Catastrophes	$	(15)	(1.1)	pts	(9)		(0.4)	pts	(24)		(1.4)	pts
Total Segment	$	105	(3.0)	pts	$	(7)	(0.3)	pts	$	98	(3.3)	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.)

(Some amounts may not reconcile due to rounding.)

Incurred losses ~~increased~~decreased by 1.3% to ~~$678.9~~$864 million for the three months ended ~~September~~June 30, ~~201~~72023, compared to ~~$137.2~~$875 million for the three months ended ~~September~~June 30, ~~201~~6,2022. The decrease was primarily due to ~~an increase~~a decrease of ~~$537.2~~$41 million in current year catastrophe losses, partially offset by an increase of $24 million in current year attritional losses. The increase in current

year attritional losses was mainly related to the impact of the increase in premiums earned. The current year catastrophe losses of ~~$551.6~~$19 million for the three months ended ~~September~~June 30, ~~201~~72023 related primarily to the 2023 Turkey earthquakes ($18 million), Typhoon Mawar ($12 million), and the 2023 2nd quarter U.S. storms ($10 million), partially offset by $25 million of reinsurance recoveries 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).~~ Ian. The ~~$14.4~~$60 million of current year catastrophe losses for the three months ended ~~September~~June 30, ~~2016 were~~2022 related primarily to ~~Hurricane Hermine~~2022 South Africa flood ($~~6.8~~38 million), ~~2016 U.S. Storms~~the 2022 Canada derecho ($~~6.3~~16 million) and the ~~Fort McMurray Canada Wildfire~~2022 2nd quarter U.S. storms ($~~1.3~~7 million). Prior year incurred development of $9 million for the three months ended June 30, 2023 is primarily driven by unfavorable movement on prior year catastrophes.

Incurred losses increased by ~~152.8%~~5.8% to ~~$919.1 million~~$1.8 billion for the ~~nine~~six months ended ~~September~~June 30, ~~201~~72023, compared to ~~$363.6 million~~$1.7 billion for the ~~nine~~six months ended ~~September~~June 30, ~~201~~6,2022. The increase was primarily due to ~~an increase~~a decrease of ~~$537.4~~$15 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~~$120 million in current year attritional losses. The increase in current year attritional losses ~~resulting~~was mainly ~~from~~related to the impact of the ~~new crop reinsurance contract.~~ increase in premiums earned. The current year catastrophe losses of ~~$553.2~~$120 million for the ~~nine~~six months ended ~~September~~June 30, ~~201~~72023 related primarily to Turkey earthquakes ($83 million), the 2023 New Zealand storms ($40 million), Typhoon Mawar ($12 million), and the 2023 2nd quarter U.S. storms ($10 million), partially offset by $25 million of reinsurance recoveries 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).~~ Ian. The ~~$15.8~~$135 million of current year catastrophe losses for the ~~nine~~six months ended ~~September~~June 30, ~~2016 were~~2022 related primarily to ~~Hurricane Hermine~~2022 Australia floods ($~~6.8~~71 million), 2022 South Africa flood ($38 million), the 2022 Canada derecho ($16 million), 2022 2nd quarter U.S. storms ($7 million), and ~~2016~~the 2022 March U.S. ~~Storms~~storms ($~~9.6~~4 million).

Segment ~~Expenses.~~Expenses. Commission and brokerage ~~expenses decreased~~expense increased by ~~34.1%~~9.4% to ~~$31.7~~$363 million for the three months ended ~~September~~June 30, ~~2017~~2023, compared to ~~$48.1~~$332 million for the three months ended ~~September~~June 30, ~~2016~~.2022. Commission and brokerage ~~expenses decreased~~expense increased by ~~22.1%~~11.9% to ~~$115.2~~$724 million for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2023, compared to ~~$148.0~~$647 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~.2022. The ~~decreases are~~increases were mainly due to changes in the mix of business.

Segment other underwriting expenses increased to $36 million for the three months ended June 30, 2023 from $32 million for the three months ended June 30, 2022. Segment other underwriting expenses increased to $75 million for the six months ended June 30, 2023 from $63 million for the six months ended June 30, 2022. The increases were 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~~increase 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,													Three Months Ended June 30,								Six Months Ended June 30,
(Dollars in millions)	2017			2016			Variance			% Change			2017			2016			Variance			% Change			(Dollars in millions)	2023		2022		Variance		% Change		2023		2022		Variance		% Change
Gross written premiums	$	429.6		$	498.0		$	(68.4	)		-13.7	%	$	1,351.5		$	1,276.8		$	74.7			5.9	%	Gross written premiums	$	1,125	$	1,043	$	82	7.8	%	$	1,977	$	1,868	$	109	5.8	%
Net written premiums		144.9			154.1			(9.1	)		-5.9	%		442.2			462.8			(20.6	)		-4.4	%	Net written premiums	816		750		67		8.9	%	1,506		1,360		145		10.7	%

Premiums earned	$	152.2		$	179.1		$	(26.9	)		-15.0	%	$	449.4		$	445.6		$	3.9			0.9	%	Premiums earned	$	714	$	659	$	55	8.3	%	$	1,416	$	1,279	$	137	10.7	%
Incurred losses and LAE		242.1			122.5			119.6			97.6	%		442.0			366.0			76.0			20.8	%	Incurred losses and LAE	460		429		32		7.5	%	925		834		92		11.0	%
Commission and brokerage		(22.3	)		4.5			(26.7	)	NM				(40.1	)		(10.9	)		(29.2	)	NM			Commission and brokerage	70		77		(7)		(9.3)	%	145		146		(1)		(0.6)	%
Other underwriting expenses		37.4			40.7			(3.3	)		-8.1	%		114.9			116.8			(2.0	)		-1.7	%	Other underwriting expenses	100		88		12		13.6	%	200		175		25		14.6	%
Underwriting gain (loss)	$	(105.0	)	$	11.4		$	(116.4	)	NM			$	(67.3	)	$	(26.4	)	$	(40.9	)	NM			Underwriting gain (loss)	$	84	$	66	$	18	27.0	%	$	145	$	124	$	21	16.9	%

										Point Chg												Point Chg										Point Chg								Point Chg
Loss ratio		159.0	%		68.4	%					90.6			98.3	%		82.1	%					16.2		Loss ratio	64.5%		65.0%				(0.5)		65.4%		65.2%				0.2
Commission and brokerage ratio		-14.6	%		2.5	%					(17.1	)		-8.9	%		-2.5	%					(6.4	)	Commission and brokerage ratio	9.7%		11.6%				-1.9		10.3%		11.4%				(1.2)
Other underwriting ratio		24.5	%		22.7	%					1.8			25.6	%		26.3	%					(0.7	)
Other underwriting expense ratio																									Other underwriting expense ratio	14.0%		13.3%				0.7		14.1%		13.7%				0.5
Combined ratio		168.9	%		93.6	%					75.3			115.0	%		105.9	%					9.1		Combined ratio	88.2%		90.0%				(1.7)		89.7%		90.3%				(0.5)

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

(Some amounts may not reconcile due to rounding.)

(NM, not meaningful)

Premiums.Gross written premiums ~~decreased~~increased by ~~13.7%~~7.8% to ~~$429.6~~$1.1 billion for the three months ended June 30, 2023, compared to $1.0 billion for the three months ended June 30, 2022. The increase in insurance premiums was primarily due to increases in property/short tail business and other specialty lines of business. Net written premiums increased by 8.9% to $816 million for the three months ended ~~September~~June 30, ~~201~~72023, compared to ~~$498.0~~$750 million for the three months ended ~~September~~June 30, ~~201~~6~~. This decrease was primarily due~~2022. The higher percentage of net written premiums compared 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~~was mainly due to business mix and higher ~~production from many~~retention in certain lines of ~~business, including retail casualty, surety and accident and health. Net written premiums decreased by 5.9%~~business. Premiums earned increased 8.3% to ~~$144.9~~$714 million for the three months ended ~~September~~June 30, ~~201~~72023, compared to ~~$154.1~~$659 million for the three months ended ~~September~~June 30, ~~201~~6.2022.

Gross written premiums increased by 5.8% to $2.0 billion for the six months ended June 30, 2023, compared to $1.9 billion for the six months ended June 30, 2022. The ~~difference between~~increase in insurance premiums reflects increases in property/short tail business and other specialty lines of business. Net written premiums increased by 10.7% to $1.5 billion for the ~~change in gross~~six months ended June 30, 2023, compared to $1.4 billion for the six months ended June 30, 2022. The higher percentage of net written premiums compared to ~~the change in net~~gross written premiums ~~is primarily~~was mainly due to ~~the more conservative reinsurance position we have taken to support our expanded insurance~~ business mix and ~~the impact~~higher retention in certain lines of ~~affiliated quota share agreements.~~business. Premiums earned ~~decreased 15.0%~~increased by 10.7% to ~~$152.2 million~~$1.4 billion for the ~~three~~six months ended ~~September~~June 30, ~~201~~72023, compared to ~~$179.1 million~~$1.3 billion for the ~~three~~six months ended ~~September~~June 30, ~~201~~6.2022. The change in premiums earned ~~relative to net written premiums~~ is the result of timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage period.

~~Gross written premiums increased by 5.9% to $1,351.5 million for the nine months ended September 30, 201~~7 ~~compared to $1,276.8 million for the nine months ended September 30, 201~~6~~. Excluding the impact of the sale of Heartland, which accounted for $229.9 million of gross written premiums in the nine months~~

ended September 30, 2016, gross 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% to $442.2 million for the nine months ended September 30, 2017 ~~compared to $462.8 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 the more conservative reinsurance position we have taken to support our new business and the impact of affiliated quota share agreements. ~~Premiums earned increased 0.9% to $449.4 million for the nine months ended September 30, 201~~7 ~~compared to $445.6 million for the nine months ended September 30, 201~~6. 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 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 %/					Three Months Ended June 30,
(Dollars in millions)	Year			Pt Change				Years			Pt Change				Incurred			Pt Change				(Dollars in millions)	Current Year		Ratio %/ Pt Change		Prior Years		Ratio %/ Pt Change		Total Incurred		Ratio %/ Pt Change
2017
2023																						2023
Attritional	$	321.2			71.4	%		$	6.5			1.4	%		$	327.7			72.8	%		Attritional	$	461	64.6	%	$	—	—	%	461		64.6	%
Catastrophes		114.4			25.5	%			(0.1	)		0.0	%			114.3			25.5	%		Catastrophes	—		—	%	—		(0.1)	%	(1)		(0.1)	%
Total segment	$	435.6			96.9	%		$	6.4			1.4	%		$	442.0			98.3	%
Total Segment																						Total Segment	$	461	64.6	%	$	—	(0.1)	%	$	460	64.5	%

2016
2022																						2022
Attritional	$	343.8			77.1	%		$	5.6			1.3	%		$	349.4			78.4	%		Attritional	$	424	64.3	%	$	—	—	%	424		64.3	%
Catastrophes		16.7			3.7	%			(0.2	)		0.0	%			16.5			3.7	%		Catastrophes	5		0.8	%	—		—	%	5		0.7	%
Total segment	$	360.5			80.8	%		$	5.4			1.3	%		$	366.0			82.1	%
Total Segment																						Total Segment	$	429	65.0	%	$	—	—	%	$	429	65.0	%

Variance 2017/2016
Variance 2023/2022																						Variance 2023/2022
Attritional	$	(22.6	)		(5.7	)	pts	$	0.9			0.1		pts	$	(21.7	)		(5.6	)	pts	Attritional	$	37	0.3	pts	$	—	—	pts	$	37	0.3	pts
Catastrophes		97.7			21.8		pts		0.1			-		pts		97.8			21.8		pts	Catastrophes	(5)		(0.8)	pts	—		—	pts	(6)		(0.8)	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.)
Total Segment																						Total Segment	$	32	(0.5)	pts	$	—	—	pts	$	32	(0.5)	pts

(Some amounts may not reconcile due to rounding.)


	Six Months Ended June 30,
(Dollars in millions)	Current Year		Ratio %/ Pt Change		Prior Years		Ratio %/ Pt Change		Total Incurred		Ratio %/ Pt Change
2023
Attritional	$	927	65.5	%	$	(2)	(0.2)	%	925		65.3	%
Catastrophes	1		0.1	%	(1)		(0.1)	%	1		—	%
Total Segment	$	929	65.6	%	$	(3)	(0.3)	%	$	925	65.4	%

2022
Attritional	$	825	64.5	%	$	—	—	%	824		64.5	%
Catastrophes	10		0.8	%	(1)		—	%	9		0.7	%
Total Segment	$	835	65.3	%	$	(1)	-0.1	%	$	834	65.2	%

Variance 2023/2022
Attritional	$	103	1.0	pts	$	(2)	(0.1)	pts	101		0.9	pts
Catastrophes	(9)		(0.7)	pts	—		—	pts	(9)		(0.7)	pts
Total Segment	$	94	0.3	pts	$	(2)	(0.2)	pts	$	92	0.2	pts

(Some amounts may not reconcile due to rounding.)

Incurred losses and LAE increased by ~~97.6%~~7.5% to ~~$242.1~~$460 million for the three months ended ~~September~~June 30, ~~201~~72023, compared to ~~$122.5~~$429 million for the three months ended ~~September~~June 30, ~~201~~6,2022, mainly due to an increase of ~~$109.6 million in current year catastrophe losses and an increase of $12.2~~$37 million in current year attritional ~~losses.~~ ~~The current year catastrophe~~ losses ~~of $109.6 million~~ ~~for the three months ended September 30, 201~~7which is primarily related to ~~Hurricane Harvey ($50.8 million), Hurricane Irma ($50.1 million) and Hurricane Maria ($8.7 million).~~ a change in mix of business. There were no current year catastrophe losses for the three months ended ~~September~~June 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.~~2023. 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~~$5 million of current year catastrophe losses for the ~~nine~~three months ended ~~September~~June 30, ~~2016 were~~2022, related to the 2022 2nd quarter U.S. storms.

Incurred losses and LAE increased by 11.0% to $925 million for the six months ended June 30, 2023 compared to $834 million for the six months ended June 30, 2022, mainly due to an increase of $103 million in current year attritional losses which is primarily related to a change in mix of business. The $1 million of current year catastrophe losses for the ~~2016~~six months ended June 30, 2023, related to the 2023 New Zealand storms. The $10 million of current year catastrophe losses for the six months ended June 30, 2022, related to the 2022 2nd quarter U.S. storms ($~~15.0~~5 million) and the ~~Fort McMurray Canada wildfire~~2022 March U.S. storms ($~~1.7~~5 million).

Segment ~~Expenses.~~Expenses. Commission and brokerage expenses decreased by 9.3% to ~~($22.3)~~$70 million for the three months ended ~~September~~June 30, ~~201~~72023 compared to ~~$4.5~~$77 million for the three months ended ~~September~~June 30, ~~201~~6.2022. Commission and brokerage expenses decreased by 0.6% to ~~($40.1)~~$145 million for the ~~nine~~six months ended ~~September~~June 30, ~~201~~72023 compared to ~~($10.9)~~$146 million for the ~~nine~~six months ended ~~September~~June 30, ~~201~~6~~. The~~2022. These decreases were mainly due to changes in the mix of business.

Segment other underwriting expenses increased to $100 million for the three months ended June 30, 2023, compared to $88 million for the three months ended June 30, 2022. Segment other underwriting expenses increased to $200 million for the six months ended June 30, 2023, compared to $175 million for the six months ended June 30, 2022. These increases were mainly due to the impact of ~~changes~~the increase in premiums earned and increased expenses related to the continued build out of the insurance business.

LIQUIDITY AND CAPITAL RESOURCES

Capital.Stockholder’s equity at June 30, 2023 and December 31, 2022 was $6.3 billion and $5.7 billion, respectively.Management’s objective in managing capital is to ensure its overall capital level, as well as the capital levels of its operating subsidiaries, exceed the amounts required by regulators, the amount needed to support our current financial strength ratings from rating agencies and our own economic capital models.The Company’s capital has historically exceeded these benchmark levels.

Our main operating company, Everest Re, is regulated by the State of Delaware’s Department of Insurance. The regulatory body has its own capital adequacy models based on statutory capital as opposed to GAAP basis equity.Failure to meet the required statutory capital levels could result in various regulatory restrictions.

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


	Everest Re (1)
	At December 31,
(Dollars in millions)	2022		2021
Regulatory targeted capital	$	3,353	$	2,960
Actual capital	$	5,553	$	5,717

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

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

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

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

Liquidity.Our liquidity requirements are generally met from ~~affiliated quota share agreements.~~positive cash flow from operations.Positive cash flow results from reinsurance and insurance premiums being collected prior to disbursements for claims, which disbursements

~~Segment other underwriting expenses decreased~~generally take place over an extended period after the collection of premiums, sometimes a period of many years.Collected premiums are generally invested, prior to ~~$37.4~~their use in such disbursements, and investment income provides additional funding for loss payments. Our net cash flows from operating activities were $914 million and $948 million for the ~~three~~six months ended ~~September~~June 30, ~~201~~7 ~~compared~~2023 and 2022, respectively.

If disbursements for losses and LAE, policy acquisition costs and other operating expenses were to ~~$40.7~~exceed premium inflows, cash flow from reinsurance and insurance operations would be negative. The effect on cash flow from insurance operations would be partially offset by cash flow from investment income. Additionally, cash inflows from investment maturities of both short-term investments and longer-term maturities are available to supplement other operating cash flows. We do not expect to supplement negative insurance operations cash flows with investment dispositions.

As the timing of payments for losses and LAE cannot be predicted with certainty, we maintain portfolios of long-term invested assets with varying maturities, along with short-term investments that provide additional liquidity for payment of claims. At June 30, 2023 and December 31, 2022, we held cash and short-term investments of $1.6 billion and $1.3 billion, respectively. Our short-term investments are generally readily marketable and can be converted to cash. In addition to these cash and short-term investments, at June 30, 2023, we had $799 million of fixed maturity securities - available for sale maturing within one year or less, $3.4 billion maturing within one to five years and $3.1 billion maturing after five years. We believe that these fixed maturity securities, in conjunction with the short-term investments and positive cash flow from operations, provide ample sources of liquidity for the ~~three months ended September~~expected payment of losses and LAE in the near future. We do not anticipate selling a significant amount of securities to pay losses and LAE. At June 30, ~~201~~6. ~~Segment other underwriting expenses decreased~~2023, we had $882 million of net pre-tax unrealized depreciation related to ~~$114.9~~fixed maturity - available for sale securities, comprised of $919 million of pre-tax unrealized depreciation and $37 million of pre-tax unrealized appreciation.

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

Market Sensitive Instruments.

The ~~SEC's~~Securities and Exchange Commission’s (“SEC”) 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~~$21.1 billion investment portfolio at ~~September~~June 30, ~~2017,~~2023 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, itinterest rate risk includes prepayment risk on the ~~$736.9 million~~$2.2 billion of mortgage-backed securities in the ~~$6,039.4 million~~$15.0 billion fixed maturity portfolio.

Prepayment risk results from potential accelerated principal payments that shorten the average life and thus the expected yield of the security.

The table below displays the potential impact of ~~market~~fair value fluctuations and after-tax unrealized appreciation on our fixed maturity portfolio (including ~~$230.0 million~~$1.1 billion 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~~fair value change under the various interest rate change scenarios.


	Impact of Interest Rate Shift in Basis Points																Impact of Interest Rate Shift in Basis Points At June 30, 2023
	At September 30, 2017																-200			-100			0			100			200
(Dollars in millions)		-200			-100			0			100			200		(Dollars in millions)
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	%
Total Fair Value																Total Fair Value	$	16,791		$	16,438		$	16,084		$	15,731		$	15,378
Fair Value Change from Base (%)																Fair Value Change from Base (%)	4.4		%	2.2		%	—		%	(2.2)		%	(4.4)		%
Change in Unrealized Appreciation																Change in Unrealized Appreciation
After-tax from Base ($)	$	237.3		$	120.1		$	-		$	(124.9	)	$	(250.6	)	After-tax from Base ($)	$	558		$	279		$	—		$	(279)		$	(558)

We had ~~$9,969.1 million~~$15.5 billion and ~~$8,331.3 million~~$15.0 billion of gross reserves for losses and LAE as of ~~September~~June 30, ~~2017~~2023 and December 31, ~~2016,~~2022, 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~~fair value and after-tax change in ~~fair/market~~fair value of a 10% and 20% change in equity prices up and down for the periods ~~indicated.~~indicated:

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


	Impact of Percentage Change in Equity Fair Values At June 30, 2023
(Dollars in millions)	-20%		-10%		0%		10%		20%
Fair Value of the Equity Portfolio	$	134	$	150	$	167	$	184	$	201
After-tax Change in Fair Value	(26)		(13)		—		13		26

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~~fair 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~~

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~~ include:

•the effects of catastrophic and pandemic events on our financial statements;

•estimates of our catastrophe exposure;

•information regarding our reserves for losses and ~~LAE,~~ LAE;

•our failure to accurately assess underwriting risk;

•decreases in pricing for property and casualty reinsurance and insurance;

•our ability to maintain our financial strength ratings;

•the failure of our insured, intermediaries and reinsurers to satisfy their obligations;

•our inability or failure to purchase reinsurance;

•consolidation of competitors, customers and insurance and reinsurance brokers;

•the effect on our business of the highly competitive nature of our industry, including the effect of new entrants to, competing products for and consolidation in the (re)insurance industry;

•our ability to retain our key executive officers and to attract or retain the executives and employees necessary to manage our business;

•the performance of our investment portfolio;

•our ability to determine any impairments taken on our investments;

•foreign currency exchange rate fluctuations;

•the effect of cybersecurity risks, including technology breaches or failure, on our business;

•the CARES Act;

•the impact of the Tax Cut and Jobs Act; and

•the adequacy of ~~our provision for uncollectible balances, estimates of our catastrophe exposure, the effects of catastrophic events on our financial statements and the ability of our subsidiaries~~capital in relation to ~~pay dividends.~~ regulatory required capital.

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~~SEC’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 IIII. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

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.~~

LAE.

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.

ITEM 6. EXHIBITS

~~Exhibit Index:~~
				Exhibit Index:
~~Exhibit No.~~	~~Description~~
Exhibit No.		Description
~~31.1~~
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

104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

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

			(Duly Authorized Officer and Principal Financial Officer)

Dated: August 10, 2023

~~Dated: November 14, 2017~~

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


100 Everest Way Warren, New Jersey						07059
(Address of principal executive offices)						(Zip Code)


						Number of Shares Outstanding
Class						At ~~November~~August 1, ~~2017~~ 2023
Common Shares, $0.01 par value						1,000


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

FINANCIAL INFORMATION

Item 1.		Financial Statements

		Consolidated Balance Sheets ~~at September~~as of June 30, ~~2017~~2023 (unaudited) andDecember 31, 2022		1
						~~December 31, 2016 (unaudited)~~	1

	Consolidated Statements of Operations and Comprehensive Income (Loss) for thethree and six months ended June 30, 2023 and 2022 (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 and six months ended June 30, 2023 and 2022 (unaudited)		3
						~~nine months ended September 30, 2017 and 2016 (unaudited)~~	3

	Consolidated Statements of Cash Flows for the ~~nine~~six months endedJune 30, 2023 and 2022 (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 Operations	34 27

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

Item 4.				Controls and Procedures	51 41


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

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

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	~~Exhibits~~		52 43

~~FOR THE QUARTERLY PERIOD ENDED:~~ ~~September 30, 2017~~		~~Commission file number:~~ ~~1-14527~~
X			Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


			Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


	June 30,		December 31,
(Dollars in millions, except share amounts and par value per share)	2023		2022
	(unaudited)
ASSETS:
Fixed maturities - available for sale, at fair value (amortized cost: 2023, $15,141; 2022, $13,699, credit allowances: 2023, $(57); 2022, $(46))	$	14,202	$	12,671
Fixed maturities - held to maturity, at amortized cost (fair value: 2023, $771; 2022, $793, net of credit allowances: 2023, $(8); 2022, $(9))	788		811
Equity securities, at fair value	167		194
Other invested assets	2,853		2,754
Other invested assets, at fair value	1,474		1,472
Short-term investments	1,095		812
Cash	478		481
Total investments and cash	21,056		19,195
Notes receivable - affiliated	—		840
Accrued investment income	187		150
Premiums receivable (net of credit allowances:2023, $(22); 2022, $(21))	2,084		1,721
Reinsurance recoverables - unaffiliated (net of credit allowances:2023, $(21); 2022, $(21))	1,960		1,841
Reinsurance recoverables - affiliated	1,830		1,935
Income tax asset, net	201		288
Funds held by reinsureds	295		303
Deferred acquisition costs	530		499
Prepaid reinsurance premiums	522		463
Other assets (net of credit allowances: 2023, $(7); 2022, $(5))	830		722
TOTAL ASSETS	$	29,494	$	27,957

LIABILITIES:
Reserve for losses and loss adjustment expenses	$	15,512	$	14,977
Unearned premium reserve	3,497		3,177
Funds held under reinsurance treaties	55		43
Amounts due to reinsurers	509		436
Losses in course of payment	72		77

Senior notes	2,348		2,347
Long-term notes	218		218
Borrowings from FHLB	519		519
Accrued interest on debt and borrowings	19		19
Unsettled securities payable	10		1
Other liabilities	446		489
Total liabilities	23,204		22,303

Commitments and Contingencies (Note 11)

STOCKHOLDER'S EQUITY:
Common stock, par value: $0.01; 3,000 shares authorized; 1,000 shares issued and outstanding (2023 and 2022)	—		—
Additional paid-in capital	1,102		1,102
Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit) of $(202) at 2023 and $(225) at 2022	(762)		(848)
Retained earnings	5,950		5,400
Total stockholder's equity	6,290		5,654
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY	$	29,494	$	27,957

	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.


	At June 30, 2023
(Dollars in millions)	Amortized Cost		Allowances for Credit Losses		Unrealized Appreciation		Unrealized Depreciation		Fair Value
Fixed maturity securities – available for sale
U.S. Treasury securities and obligations of U.S. government agencies and corporations	$	475	$	—	$	—	$	(37)	$	439
Obligations of U.S. states and political subdivisions	424		—		1		(30)		395
Corporate securities	4,552		(55)		21		(309)		4,209
Asset-backed securities	4,783		—		5		(111)		4,676
Mortgage-backed securities
Commercial	567		—		—		(63)		503
Agency residential	1,817		—		3		(166)		1,654
Non-agency residential	60		—		—		(1)		59
Foreign government securities	735		—		3		(53)		684
Foreign corporate securities	1,729		(1)		5		(149)		1,583
Total fixed maturity securities - available for sale	$	15,141	$	(57)	$	37	$	(919)	$	14,202


	At December 31, 2022
(Dollars in millions)	Amortized Cost		Allowances for Credit Losses		Unrealized Appreciation		Unrealized Depreciation		Fair Value
Fixed maturity securities – available for sale
U.S. Treasury securities and obligations of U.S. government agencies and corporations	$	575	$	—	$	—	$	(40)	$	535
Obligations of U.S. states and political subdivisions	444		—		2		(32)		413
Corporate securities	3,913		(45)		14		(322)		3,561
Asset-backed securities	4,111		—		5		(165)		3,951
Mortgage-backed securities
Commercial	569		—		—		(59)		509
Agency residential	1,792		—		3		(167)		1,628
Non-agency residential	3		—		—		—		3
Foreign government securities	696		—		2		(61)		637
Foreign corporate securities	1,597		(1)		4		(167)		1,433
Total fixed maturity securities - available for sale	$	13,699	$	(46)	$	30	$	(1,013)	$	12,671

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 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 June 30, 2023 By Security Type
	Less than 12 months				Greater than 12 months				Total
(Dollars in millions)	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
Fixed maturity securities - available for sale
U.S. Treasury securities and obligations of U.S. government agencies and corporations	$	30	$	(1)	$	408	$	(36)	$	438	$	(37)
Obligations of U.S. states and political subdivisions	77		(1)		199		(29)		276		(30)
Corporate securities	1,135		(84)		2,128		(224)		3,263		(308)
Asset-backed securities	1,058		(23)		2,426		(88)		3,484		(111)
Mortgage-backed securities
Commercial	17		(1)		480		(62)		497		(63)
Agency residential	319		(5)		1,166		(160)		1,485		(166)
Non-agency residential	57		(1)		3		—		59		(1)
Foreign government securities	108		(2)		484		(51)		591		(53)
Foreign corporate securities	293		(9)		1,112		(140)		1,405		(149)
Total	3,092		(126)		8,406		(792)		11,498		(918)
Securities where an allowance for credit loss was recorded	—		—		—		(1)		1		(1)
Total fixed maturity securities - available for sale	$	3,093	$	(127)	$	8,406	$	(792)	$	11,499	$	(919)

	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, 2022 By Security Type
	Less than 12 months				Greater than 12 months				Total
(Dollars in millions)	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
Fixed maturity securities - available for sale
U.S. Treasury securities and obligations of U.S. government agencies and corporations	$	290	$	(14)	$	245	$	(26)	$	535	$	(40)
Obligations of U.S. states and political subdivisions	235		(23)		27		(9)		261		(32)
Corporate securities	2,138		(175)		841		(146)		2,979		(321)
Asset-backed securities	3,120		(138)		436		(27)		3,556		(165)
Mortgage-backed securities
Commercial	464		(50)		36		(9)		500		(59)
Agency residential	852		(54)		605		(113)		1,456		(167)
Non-agency residential	2		—		1		—		3		—
Foreign government securities	455		(36)		144		(25)		599		(61)
Foreign corporate securities	967		(100)		365		(67)		1,332		(167)
Total	$	8,522	$	(591)	$	2,698	$	(421)	$	11,220	$	(1,012)
Securities where an allowance for credit loss was recorded	2		(1)		—		—		2		(1)
Total fixed maturity securities - available for sale	$	8,524	$	(591)	$	2,698	$	(421)	$	11,222	$	(1,013)


	Roll Forward of Allowance for Credit Losses – Fixed Maturities - Available for Sale
	Three Months Ended June 30, 2023								Six Months Ended June 30, 2023
	Corporate Securities		Asset Backed Securities		Foreign Corporate Securities		Total		Corporate Securities		Asset Backed Securities		Foreign Corporate Securities		Total
(Dollars in millions)
Beginning balance	$	(55)	$	—	$	(1)	$	(56)	$	(45)	$	—	$	(1)	$	(46)
Credit losses on securities where credit losses were not previously recorded	(2)		—		—		(2)		(14)		—		—		(14)
Increases in allowance on previously impaired securities	—		—		—		—		—		—		—		—
Decreases in allowance on previously impaired securities	—		—		—		—		—		—		—		—
Reduction in allowance due to disposals	1		—		—		1		4		—		—		4
Balance, end of period	$	(55)	$	—	$	(1)	$	(57)	$	(55)	$	—	$	(1)	$	(57)

			Fair Value Measurement Using:
			Quoted Prices									Fair Value Measurement Using
			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)
(Dollars in millions)									(Dollars in millions)	June 30, 2023		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:									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		-
Fixed maturities - available for sale									Fixed maturities - available for sale
U.S. Treasury securities and obligations of U.S. government agencies and corporations									U.S. Treasury securities and obligations of U.S. government agencies and corporations	$	439	$	—	$	439	$	—
Obligations of U.S. states and political subdivisions									Obligations of U.S. states and political subdivisions	395		—		395		—
Corporate securities		2,239,591		-		2,137,522		102,069	Corporate securities	4,209		—		3,498		711
Asset-backed securities		153,789		-		153,789		-	Asset-backed securities	4,676		—		3,561		1,115
Mortgage-backed securities									Mortgage-backed securities
Commercial		59,023		-		59,023		-	Commercial	503		—		503		—
Agency residential		677,830		-		677,830		-	Agency residential	1,654		—		1,654		—
Non-agency residential		62		-		62		-	Non-agency residential	59		—		59		—
Foreign government securities		531,473		-		531,473		-	Foreign government securities	684		—		684		—
Foreign corporate securities		1,049,865		-		1,046,734		3,131	Foreign corporate securities	1,583		—		1,567		16
Total fixed maturities, market value		6,039,361		-		5,934,161		105,200
Total fixed maturities - available for sale									Total fixed maturities - available for sale	14,202		—		12,360		1,842

Equity securities, fair value		998,071		951,679		46,392		-	Equity securities, fair value	167		145		22		—
Other invested assets, fair value		1,922,402		-		-		1,922,402	Other invested assets, fair value	1,474		—		—		1,474

	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					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	)

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

	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

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