4
EVEREST REINSURANCE HOLDINGS, INC.
CONSOLIDATED
STATEMENTS
OF CASH FLOWS
Six Months Ended
June 30,
(Dollars in thousands)
2022
2021
(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
$
(84,631)
$
585,250
Adjustments to reconcile net income to net cash provided by operating activities:
Decrease (increase) in premiums receivable
9,684
(233,770)
Decrease (increase) in funds held by reinsureds, net
(6,320)
(21,256)
Decrease (increase) in reinsurance recoverables
105,327
226,291
Decrease (increase) in income taxes
(139,313)
116,483
Decrease (increase) in prepaid reinsurance premiums
(44,429)
(40,542)
Increase (decrease) in reserve for losses and loss adjustment expenses
636,696
807,984
Increase (decrease) in unearned premiums
51,183
272,722
Increase (decrease) in other net payable to reinsurers
35,068
66,461
Increase (decrease) in losses in course of payment
(174,622)
39,117
Change in equity adjustments in limited partnerships
(109,613)
(201,379)
Distribution of limited partnership income
48,802
27,905
Change in other assets and liabilities, net
(19,372)
(88,949)
Non-cash compensation expense
19,766
18,406
Amortization of bond premium (accrual of bond discount)
14,784
15,535
Net (gains) losses on investments
604,860
(318,774)
Net cash provided by (used in) operating activities
947,870
1,271,484
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from fixed maturities matured/called/repaid - available for sale
875,642
1,153,258
Proceeds from fixed maturities sold - available for sale
511,218
242,072
Proceeds from fixed maturities matured/called/repaid - held to maturity
333
-
Proceeds from equity securities sold - at fair value
425,380
346,088
Proceeds from distributions and sales of other invested assets
98,653
70,811
Cost of fixed maturities acquired - available for sale
(2,464,587)
(2,401,534)
Cost of fixed maturities acquired - held to maturity
(72,061)
-
Cost of equity securities acquired - at fair value
(271,842)
(358,790)
Cost of other invested assets acquired
(153,486)
(210,373)
Net change in short-term investments
465,116
205,323
Net change in unsettled securities transactions
28,647
(129,026)
Proceeds from repayment (cost of issuance) of note receivable - affiliated
(215,000)
-
Net cash provided by (used in) investing activities
(771,987)
(1,082,171)
CASH FLOWS FROM FINANCING ACTIVITIES:
Tax benefit from share-based compensation, net of expense
(19,543)
(18,182)
Net cash provided by (used in) financing activities
(19,543)
(18,182)
EFFECT OF EXCHANGE RATE CHANGES ON CASH
(11,860)
(3,903)
Net increase (decrease) in cash
144,480
167,228
Cash, beginning of period
699,266
378,518
Cash, end of period
$
843,746
$
545,746
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid (recovered)
$
104,325
$
28,859
Interest paid
48,414
31,520
The accompanying notes are an integral part of the consolidated
financial statements.