DOW JONES NEWSWIRES
Everest Re Group Ltd.'s (RE) first-quarter net income climbed
39% on higher sales and smaller investment losses.
"We are pleased with the opportunities we are seeing in our
markets," said Chief Executive Joseph V. Taranto.
The reinsurer has suffered substantial losses on investments
since the stock market plunged last fall and has moved into more
conservative areas. The company also has been shifting its business
mix toward property and international business, while lowering its
U.S. casualty writings. Everest Re is benefiting from higher
reinsurance premiums and could take market share away from the
weakened American International Group Inc. (AIG).
Everest Re, one of the world's 10 largest reinsurers, reported
net income of $108.6 million, or $1.77 a share, up from $77.9
million, or $1.24 a share, a year earlier. Operating income, which
excludes realized capital gains and losses, fell to $1.73 from
$3.03.
Total revenue grew 7.9% to $989.3 million, and net premiums
earned rose 2.2% to $932.3 million.
Analysts' estimates were for per-share operating earnings of
$2.81 and premiums earned of $878.3 million, according to a poll by
Thomson Reuters.
Reinsurance premiums grew 19%, while insurance premiums slid
3%.
The combined ratio, or the percentage of premiums paid out on
losses and expenses, rose to 89.7% from 89.1%.
Everest's shares closed Wednesday at $73.40, up 0.4%, and were
inactive after hours. The stock is down about 4% this year.
-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975;
Kathy.Shwiff@dowjones.com