Everest Re Profit Up 55 Percent

Michael Ha

NU Online News Service, April 22, 3:06 p.m.EDT?Everest Re Group Ltd., a Barbados-based underwriter ofproperty-casualty reinsurance, reported first-quarter net profitrose 55 percent, or $94.4 million.

The increase translates as $1.35 per diluted share, comparedwith $61.1 million, or $1.24 per share, for the comparison periodlast year.

Joseph V. Taranto, chairman and chief executive officer atEverest Re, predicted during a conference call today that thecasualty insurance market can expect good conditions, includinghigher rates and tighter terms and conditions, for the next coupleof years.

These positive changes should impact general liability, auto,workers' comp, directors and officers insurance, errors andomissions insurance, and medical malpractice, he said.

Everest Re also reported an improvement in its gross premiumswritten, which came in at $1.002 billion in its latest quarter.That figure represents a 68 percent increase from its 2002 firstquarter, when the company posted $596 million.

The reinsurer's net investment income also took a positive turn.The company reported $93.4 million for its first quarter, comparedto $85.5 million in the 2002 first quarter.

"We continue to receive excellent business opportunities," saidMr. Taranto. He said that, accordingly, the company is increasingits 2003 earnings guidance to $7.75-to-$8.25 per share andproviding 2004 guidance of $9.50-to-$10.50 per share, absent anyunusual losses.