acquired AFC Re Ltd., a Bermuda-based annuity/life reinsurer for $17 million.

The company bought AFC Re from AFC Holdings Ltd. and brings with it approximately $253 million in assets and $236 million of liabilities, most of which represent reserves for annuity benefits, as well as a staff of four who will become part of Everest Re Group's existing operations in Bermuda.

Peter Bennett, CEO of Everest Reinsurance (Bermuda), Ltd. said: "We are extremely pleased to expand Everest Re Group's product offerings through an acquisition which gives us an immediate and respected presence in this important market.

"We look forward to integrating the efforts of these high calibre professionals with the Group's existing product and distribution capabilities and further building on the financial strength we bring to world reinsurance markets.'' Joseph V. Taranto, CEO of Everest Re Group, added: "Our Bermuda reinsurance company continues to strengthen under Peter Bennett's leadership. We expect this transaction to be accrative in 2001 and add approximately 5 cents to earnings. Accordingly, we are raising our estimate of operating earnings for 2001 to a range of $4.45 to $4.85 per diluted share, absent unusual loss activity.''