Everest Re Group reported second-quarter net income fell 26.4 percent to $194.2 million, or $3.40 per share, as a result of lower investment gains.
Second-quarter operating earnings were at $173.3 million, or $3.03 per share, compared to $174.4 million, or $3.07 per share, last year.
Written premiums grew just over 2 percent, and combined ratios remained essentially flat.
Realized capital gains from investment sales pushed the net income figure down. Gains in second-quarter 2005 were $20.9 million, while capital gains in second-quarter 2004 were more than four times greater, at $90 million.
Like other figures in the second-quarter report, investment income (from interest and dividends) was close to last year's at $137.4 million, compared to $136.8 million in the 2004 second quarter.
Still, the Hamilton, Bermuda-based company reported a milestone as shareholders' equity reached more than $4 billion June 30, Chairman and Chief Executive Officer Joseph V. Taranto said in a statement, adding that the company planned to continue its "disciplined pursuit of opportunities to keep this capital effectively deployed."
Through six months, income also fell, while operating earnings increased.
For the six months ended June 30, after-tax operating income was $338.6 million, or $5.93 per share, an increase of 3.9 percent compared to $325.9 million, or $5.73 per share, in 2004.
Net income in the first six months of 2005 was $361.3 million, or $6.33 per share, falling 7.4 percent from $390.1 million, or $6.86 per share, in 2004.
While gross and net premiums written for the second quarter of 2005 both increased slightly–2.2 percent–over second-quarter 2004, the first-half results included premium declines recorded in the first quarter.
For the six months ended June 30, 2005, gross premiums written were $2.2 billion, a 6.6 percent drop from the first six months of 2004. Net premiums written for the same period decreased 6.4 percent to $2.1 billion.
Combined ratios for the second quarter and first six months were both 91.3, showing little change from the prior year periods.
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