Everest Re Quarterly Profit Rises 33.6%
By Michael Ha
NU Online News Service, April 20, 4:24 p.m. EDT?Bermuda-based reinsurer Everest Re Group Ltd. reported first-quarter net income, helped by higher premiums, rose 33.6 percent to $126.1 million, compared with a $94.4 million profit reported during the year-ago period.[@@]
?I am very pleased to report that Everest's first-quarter results were our best ever," said the company's chief financial officer Stephen Limauro during today's conference call. Mr. Limauro also noted that, moreover, market conditions and company fundamentals remain favorable and continue to suggest 2004 will be "an excellent year" for Everest Re.
Mr. Limauro said his company saw improvements in several key areas. He pointed out that Everest Re's gross premiums written for the 2004 first quarter came in at $1.22 billion, a 22.3 percent rise from $1 billion reported during the 2003 first quarter. Also, net premiums written for the quarter were reported at $1.18 billion, a 23.7 percent jump from $951.9 million reported during the year-ago period.
The company's combined ratio for the quarter also improved?Everest Re's quarterly combined ratio was 90.8, down from 93.5 reported during the 2003 first quarter. Net investment income for the first quarter came in at $100.9 million, up from $93.5 million reported in the first quarter of 2003.
Additionally, cash flow from operations for the quarter was reported at $399.6 million, a 22 percent rise from $327.7 million reported during the year-ago period.
Everest Re also reaffirmed its previously announced estimate of 2004 operating earnings, which was around $10 to $11 per diluted share.
Everest Re, a property-casualty reinsurer marketing to United States and international insurers, specializes in several areas, which include marine, aviation and surety, as well as medical malpractice, directors-and-officers liability, and professional errors and omissions liability. For the full-year 2003, the company reported $426 million in net income, up 84.2 percent from $231.3 million reported during 2002.
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