Bermuda-based reinsurer Everest Re Group Ltd. announced their quarterly profit more than doubled, helped by higher premium rates and a small one-time gain from selling investments.

Everest Group, a Bermuda holding company for property and casualty insurance and reinsurance business, reported second-quarter profit of $109.6 million, or $1.99 a share, compared with $53.4 million, or $1.02 a share, a year earlier - a jump of 105 percent.

The figure from Q2 2002 was reduced by a $31 million loss on investments, largely related to bankrupt WorldCom Inc.

Chairman and chief executive officer Joseph Taranto said: "Solid execution in firming markets contributed to the company's robust top-line growth, excellent cash flow, continued improvement in underwriting margins and strong earnings and book value growth."

The company said that net premiums written in the quarter rose 65 percent to $988 million, helped by charging higher rates.

Excluding certain items, it reported $1.94 a share operating profit for the quarter. Wall Street expected $1.95 a share.

Looking forward, the company reaffirmed operating earnings guidance of $7.75 to $8.25 a share for 2003 and $9.50 to $10.50, excluding any unusual losses or market developments.

The second quarter 2003 after-tax operating income, which excludes realised capital gains and losses, was reported at $107.1 million, or $1.94 per diluted share, a 54 percent increase compared to $69.7 million, or $1.34 per diluted share, in the second quarter of 2002. The company added that operating income differs from net income only by the exclusion of realised gains and losses on investments.

Gross premiums written for the second quarter of 2003 were $1.07 billion, a 70 percent increase compared to $630 million in 2002 and net premiums written were $988 million, an increase of 65 percent from $601 million for the second quarter of 2002.

The company's GAAP combined ratio in the second quarter was 95.5 percent compared to 97.6 percent in 2002. Net investment income for the second quarter was $102.1 million compared to $90.8 million in the second quarter of 2002. Cash flow from operations for the quarter was $353.2 million, an increase of 108 percent from $169.6 million in the second quarter of 2002.

At June 30, 2003, the company's shareholders' equity was $3.06 billion or $55.09 per outstanding share. This represents a 29 percent increase from shareholders' equity of $2.37 billion or $46.55 per share at December 31, 2002.