Everest Re Profit Up 55 Percent

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 of property-casualty reinsurance, reported first-quarter net profit rose 55 percent, or $94.4 million.

The increase translates as $1.35 per diluted share, compared with $61.1 million, or $1.24 per share, for the comparison period last year.

Joseph V. Taranto, chairman and chief executive officer at Everest Re, predicted during a conference call today that the casualty insurance market can expect good conditions, including higher rates and tighter terms and conditions, for the next couple of years.

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

Everest Re also reported an improvement in its gross premiums written, which came in at $1.002 billion in its latest quarter. That figure represents a 68 percent increase from its 2002 first quarter, 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, compared to $85.5 million in the 2002 first quarter.

"We continue to receive excellent business opportunities," said Mr. Taranto. He said that, accordingly, the company is increasing its 2003 earnings guidance to $7.75-to-$8.25 per share and providing 2004 guidance of $9.50-to-$10.50 per share, absent any unusual losses.