Everest Re Group, Ltd. reported second quarter 2002 after-tax operating income, which excludes realised capital gains and losses, of $69.7 million, or $1.34 per diluted share, a 27.0 percent increase compared to $54.9 million, or $1.17 per diluted share, in the second quarter of 2001.

Commenting on the company's results, chairman and CEO Joseph V. Taranto said, "Solid execution in firming markets has contributed to the company's robust top-line growth, excellent cash flow, continued improvement in underwriting margins and strong earnings growth."

Net income, affected by investment losses from exposure to WorldCom, decreased by 6.8 percent to $53.4 million, or $1.02 per diluted share compared to $57.3 million, or $1.22 per diluted share, in the second quarter of 2001.

For the six months ended June 30, 2002, after-tax operating income was $135.7 million, or $2.68 per diluted share, an increase of 25.3 percent compared to $108.3 million, or $2.30 per diluted share, in 2001.

Net income in the first six months of 2002 was $114.5 million, or $2.26 per diluted share, an increase of 6.6 percent compared to $107.4 million, or $2.28 per diluted share, in 2001.

Gross premiums written for the second quarter of 2002 were $630.1 million, a 30.1 percent increase compared to $484.3 million in 2001.

Net written premiums were $600.7 million, an increase of 43.5 percent from $418.4 million for the second quarter of 2001.

The Company's GAAP combined ratio in the second quarter was 97.6 percent compared to 102.7 percent in 2001. Net investment income for the second quarter was $90.8 million compared to $87.1 million in the second quarter of 2001.

Cash flow from operations for the quarter was $169.6 million, an increase of 111.1 percent from $80.3 million in the second quarter of 2001.

For the six months ended June 30, 2002, gross premiums written were $1.23 billion, a 35.7 percent increase from $903.7 million in the first six months of 2001.

Net written premiums grew 44.7 percent to $1.17 billion from $805.8 million in 2001.

The GAAP combined ratio for the first six months of 2002 was 98.4 percent compared to 102.8 percent in 2001. Net investment income for the six months ended June 30, 2002 was $176.4 million, an increase of 1.8 percent from $173.3 million in 2001.

Cash flow from operations in the first six months was $275.1 million, compared to $143.8 million in the first six months of 2001.

The Company has reaffirmed its 2002 estimate of operating earnings at $5.50-$6.00 per diluted share, and its estimated 2003 operating earnings of $6.60-$7.20 per diluted share, absent any unusual losses or market developments.

Subsequent to the quarter close, the company repurchased 100,000 common shares at an average price of $52.50. As of June 30, 2002, approximately 2.2 million shares remained authorised under the Company share repurchase program.

The Company also announced that it intends to replace its existing common equity-only shelf registration statement with an expanded universal shelf registration statement which will give it and its affiliate, Everest Reinsurance Holdings Inc., additional capital and financing flexibility.

At June 30, 2002, the Company's shareholders' equity was $2.15 billion (a book value per share of $41.82). This represents a 24.7 percent increase from shareholders' equity of $1.72 billion ($37.19 per share) at December 31, 2001.

On the web

www.everestre.com.