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Everest Re Group Ltd. Reports Operating Results (10-K)

February 29, 2012 | About:
10qk

10qk

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Everest Re Group Ltd. (RE) filed Annual Report for the period ended 2011-12-31.

Everest Re Ltd has a market cap of $4.78 billion; its shares were traded at around $87.97 with and P/S ratio of 1. The dividend yield of Everest Re Ltd stocks is 2.2%.

Highlight of Business Operations:

Net Realized Capital Gains (Losses). Net realized capital gains were $6.9 million in 2011 compared to $101.9 million in 2010 and net realized capital losses of $2.3 million in 2009. The $6.9 million was comprised of $27.5 million of net realized capital gains from sales on our fixed maturity and equity securities which was partially offset by $4.4 million of losses from fair value re-measurements and $16.2 million of other-than-temporary impairments. The net realized capital gains of $101.9 million in 2010 were the result of $70.4 million of gains in fair value re-measurements and $34.5 million from net realized capital gains from sales on our fixed maturity and equity securities, which were partially offset by $3.0 million of other-than-temporary impairments. The net realized capital losses of $2.3 million in 2009 were the result of $29.3 million of net realized capital losses from sales and $13.2 million in other-than-temporary impairments on our available for sale fixed maturity securities, partially offset by a $40.2 million gain in fair value re-measurements.

Net realized capital gains were $6.9 million in 2011 compared to net realized capital gains of $101.9 million in 2010 and net realized capital losses of $2.3 million in 2009. In 2011, we recorded $27.5 million of net realized capital gains from sales of fixed maturity and equity securities, partially offset by $16.2 million of other-than-temporary impairments and $4.4 million of net realized capital losses due to fair value re-measurements on fixed maturity and equity securities. The gains and losses on the sales of fixed maturity securities included the impact of selling part of our municipal bond portfolio as credit concerns arose in this market sector. In 2010, we recorded $70.4 million of gains due to fair value re-measurements on fixed maturity and equity securities, $34.5 million of net realized capital gains from sales of fixed maturity and equity securities, partially offset by $3.0 million of other-than-temporary impairments on fixed maturity securities. The gains on the sales of fixed maturity securities included selling securities in foreign currencies, which reduced our exposure to future currency fluctuations. The losses included the impact of selling part of our municipal bond portfolio in the latter part of the year as credit concerns arose in this market sector. We were able to carry these realized losses back for income tax purposes to offset previously realized gains. This carry back availability expired at the end of 2010. In 2009, we recorded $29.4 million of net realized capital losses from sales of fixed maturity and equity securities and $13.2 million of other-than-temporary

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