Bermuda-based insurer and reinsurer Everest Re Group Ltd. yesterday reported profits were up by 33.6 percent to $1.26.1 million for the first quarter of 2004 after writing more business than it did during the same period a year earlier.

In the first of the insurance companies to release their results for the first quarter 2004, Everest Re predicted that it was in a good position to have an ?excellent? 2004.?The company continues to build on its leadership position and with strong earnings and a solid balance sheet, we believe we are well positioned to have another excellent year,? said Joseph Taranto, chairman and chief executive officer of Everest Re. After-tax operating income (which excludes realised capital gains and losses) was reported at $151.5 million, or $2.67 per diluted share, a 45.6 percent increase compared to $104.1 million, or $2.02 per diluted share, in the first quarter of 2003.

Gross premiums written for the first quarter of 2004 were $1.22 billion, a 22.3 percent increase compared to $1.0 billion in 2003 and net premiums written were $1.18 billion, an increase of 23.7 percent from $951.9 million for the first quarter of 2003.

The company?s GAAP combined ratio in the first quarter was 90.8 percent compared to 93.5 percent in 2003. Net investment income for the first quarter was $100.9 million compared to $93.5 million in the first quarter of 2003. Cash flow from operations for the first quarter of 2004 was $399.6 million, an increase of 22.0 percent from $327.7 million in the first quarter of 2003.

In a Press statement the company also reaffirmed its estimate of 2004 operating earnings at $10.00 to $11.00 per diluted share, absent any unusual losses or market developments.

The company also announced that its subsidiary, Everest Reinsurance Company, has completed the sale of its United Kingdom branch to its affiliate, Everest Reinsurance (Bermuda), Ltd.

At March 31, 2004, the company?s shareholders? equity was $3.36 billion, or $60.17 per outstanding share.

The change in book value per share represents a 6.3 percent increase from shareholders? equity of $3.16 billion, or $56.84 per outstanding share, at December 31, 2003.

Everest Re Group, Ltd. is a Bermuda holding company that operates through the following subsidiaries: Everest Reinsurance Company provides reinsurance to property and casualty insurers in both the US and international markets. Everest Reinsurance (Bermuda), Ltd. provides reinsurance and insurance to worldwide property and casualty markets and reinsurance to life insurers.

Everest National Insurance Company and Everest Security Insurance Company provide property and casualty insurance to policyholders in the US Everest Indemnity Insurance Company offers excess and surplus lines insurance in the US.