4
EVEREST REINSURANCE HOLDINGS, INC.
CONSOLIDATED
STATEMENTS
OF CASH FLOWS
SixNine Months Ended
JuneSeptember 30,
(Dollars in thousands)millions)
2022
2021
(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
$
(84,631)(626)
$
585,250442
Adjustments to reconcile net income to net cash provided by operating activities:
Decrease (increase) in premiums receivable
9,684(50)
(233,770)(261)
Decrease (increase) in funds held by reinsureds, net
(6,320)7
(21,256)(26)
Decrease (increase) in reinsurance recoverables
105,32740
226,291172
Decrease (increase) in income taxes
(139,313)(341)
116,48385
Decrease (increase) in prepaid reinsurance premiums
(44,429)(30)
(40,542)(81)
Increase (decrease) in reserve for losses and loss adjustment expenses
636,6961,791
807,9841,657
Increase (decrease) in unearned premiums
51,183159
272,722530
Increase (decrease) in other net payable to reinsurers
35,06845
66,461151
Increase (decrease) in losses in course of payment
(174,622)(131)
39,117(11)
Change in equity adjustments in limited partnerships
(109,613)(94)
(201,379)(311)
Distribution of limited partnership income
48,80272
27,90565
Change in other assets and liabilities, net
(19,372)(62)
(88,949)(87)
Non-cash compensation expense
19,76628
18,40628
Amortization of bond premium (accrual of bond discount)
14,78421
15,53523
Net (gains) losses on investments
604,860842
(318,774)(267)
Net cash provided by (used in) operating activities
947,8701,671
1,271,4842,106
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from fixed maturities matured/called/repaid - available for sale
875,6421,124
1,153,2581,640
Proceeds from fixed maturities sold - available for sale
511,218812
242,072394
Proceeds from fixed maturities matured/called/repaid - held to maturity
33318
-
Proceeds from equity securities sold - at fair value
425,3801,016
346,088450
Proceeds from distributions and sales of other invested assets
98,653126
70,811135
Cost of fixed maturities acquired - available for sale
(2,464,587)(3,358)
(2,401,534)(3,485)
Cost of fixed maturities acquired - held to maturity
(72,061)(105)
-
Cost of equity securities acquired - at fair value
(271,842)(949)
(358,790)(507)
Cost of other invested assets acquired
(153,486)(224)
(210,373)(396)
Net change in short-term investments
465,116243
205,323171
Net change in unsettled securities transactions
28,64779
(129,026)(194)
Proceeds from repayment (cost of issuance) of note receivable - affiliated
(215,000)(215)
-(200)
Net cash provided by (used in) investing activities
(771,987)(1,433)
(1,082,171)(1,992)
CASH FLOWS FROM FINANCING ACTIVITIES:
Tax benefit from share-based compensation, net of expense
(19,543)(28)
(18,182)(27)
Cost of debt repurchase
(6)
-
Net cash provided by (used in) financing activities
(19,543)(34)
(18,182)(27)
EFFECT OF EXCHANGE RATE CHANGES ON CASH
(11,860)(25)
(3,903)(12)
Net increase (decrease) in cash
144,480179
167,22875
Cash, beginning of period
699,266699
378,518379
Cash, end of period
$
843,746878
$
545,746453
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid (recovered)
$
104,325170
$
28,85933
Interest paid
48,41451
31,52033
NON-CASH TRANSACTIONS
Reclassification of specific investments from fixed maturity securities, available for sale at fair value to fixed maturity securities, held to maturity at amortized cost net of credit allowances
$
722
$
-
The accompanying notes are an integral part of the consolidated
financial statements.