Holdings continues to be the holding company for the Company's U.S. based operations. At December 31, 2020, Everest Re had statutory surplus of $5.3 billion. The majority of Everest Indemnity's business is reinsured by its parent, Everest Re. The prior year presented segment information has been reformatted to reflect this change. It is important to note that PMLs are estimates. Modeled events are hypothetical events produced by a stochastic model. Reinsurance and Retrocession Arrangements. No other retrocessionaire accounted for more than 5% of our receivables. On July 13, 2015, the Company sold Mt. McKinley to Clearwater Insurance Company. Some amounts may not reconcile due to rounding.) a) Represents the amount of OTTI recognized in AOCI. A.M. Best affirmed these ratings on May 29, 2020. Worldwide insurance and reinsurance market conditions historically have been competitive. The industry continues to deal with the impacts of a global pandemic, COVID-19. The pandemic has caused significant volatility in the global financial markets. Interest rates plummeted, credit spreads widened and the equity markets lost value. As of February 1, 2021, the Company employed 1,746 persons. It is also authorized to conduct reinsurance business in Singapore and Brazil. Everest Premier is licensed in 50 states and the District of Columbia. Various proposals to change the RBC formula arise from time to time. In addition, reinsurers may be unwilling to pay us even though they are able to do so. Special considerations apply to our Bermuda operations. The value of these assets fluctuates with changes in the markets. Limitation of Liability of Directors and Officers. The imposition of such tax would reduce our net income. Catastrophe insurance provides coverage for one event. 44 There will also be a negative impact on future industry underwriting results. This change is consistent with the change in gross written premiums. Our combined ratio increased by 7.4 points to 102.9% in 2020, compared to 95.5% in 2019. The Company does not maintain separate balance sheet data for its operating segments. The current year catastrophe losses of $541.5 million in 2019 are outlined above. This information is recorded into our records. Our A&E liabilities emanate from Everest Re's assumed reinsurance business. Credit ratings are forward-looking and consider a variety of economic outcomes. As of December 31, 2020, we had repurchased 29.6 million shares under this authorization. Everest's information technology is a key component of its business operations. Accounting for Long Duration Contracts. Accounting for Impact on Income Taxes due to Tax Reform. SAB 118 became effective upon release. The Company adopted the guidance effective January 1, 2019. The cumulative effect adjustment to the opening balance of retained earnings was zero. Recognition and Measurement of Financial Instruments. Actual events or results may differ materially from our expectations. Based on that evaluation, there has been no such change during the fourth quarter. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Business and Basis of Presentation. Each acquisition lot is reviewed to recalculate the effective yield. F-10 C. Allowance for Receivable Balances. Credit ratings are reviewed and updated at least annually. Therefore, it is not possible to provide this information. This method relies entirely on actual paid or reported losses to project ultimate losses. No other factors such as changes