NU Online News Service, Feb. 9 3:11 p.m.EST

Catastrophe losses from the 2011 fourth quarter and priorquarters significantly weighed on earnings forthreeBermudaspecialty insurance and reinsurance companies.

Everest Re Group reports an 86 percent drop infourth-quarter earnings and the company posted an $80.5 millionloss for the year.

Fourth-quarter net income was $41 million compared to $302.5million during the 2010 fourth quarter.

Results include $370.7 million in catastrophe losses, pre-taxand net of reinstatement premiums, which includes $218 million inlosses from the flooding inThailand, Hamilton, Bermuda-basedEverest Re says.

The catastrophe-loss total also includes increased lossestimates from earthquakes inJapanandNew Zealandearlier in 2011 and$50 in additional catastrophe reserving.

Meanwhile, Pembroke, Bermuda-based Axis CapitalHoldings says fourth-quarter net income dropped about 70percent to $80 million. For the year net income was $9 millioncompared to $820 million for 2010.

Axis predicts $64 million in pre-tax losses from the Thaiflooding and a $75 million increase in loss estimates for othercatastrophes throughout 2011.

Alterra Capital Holdings reports net income of$30.9 million, down about 49 percent from $79.7 million for the2010 fourth quarter.

Alterra says it recorded $55.5 million in catastrophe losses,pre-tax. About $30 million was due to fourth-quarter events and thebalance is attributable to events from the first nine months of2011.

However, premiums are up. Everest Re says gross written premiumsduring the fourth quarter increased 10 percent.

Gross premiums written during the last quarter of 2011 increased5 percent at Axis Capital but John Charman, president and chiefexecutive, says in a statement that the market turn “may require afew years to regain the pricing eroded over the last five orsix.”