Everest Re Group Ltd. returned a profit of almost $200 million as gross written premiums rose 15 percent during the fourth quarter of 2009.

The re/insurer recorded net income of $197.2 million or $3.28 per share for the fourth quarter compared to a net loss of $16.6 million or 27 cents per share during the same period in 2008.

After-tax operating income, excluding realised capital gains and losses, was $192 million or $3.19 per share versus $179.5 million or $2.92 per share over the respective period, a nine percent increase in after-tax operating earnings per share.

For the year ended December 31, 2009, net income was $807 million or $13.22 per share, compared to a net loss of $18.8 million, or 30 cents per share, for 2008.

Chairman and CEO of Everest Re, Joseph Taranto, said: "We are pleased to have grown premium 12 percent, achieved a 15 percent return on equity and increased book value per share by 27 percent in 2009. Our performance demonstrates the strength of the Everest franchise."

Gross written premiums were $1 billion for the quarter, representing an increase of 15 percent compared to the same period in 2008.

Worldwide reinsurance premiums increased 16 percent while insurance premiums were up 10 percent, consistent with a trend seen throughout the year, with international business driving much of the growth.

For the year, gross written premiums totalled $4.1 billion, an increase of 12 percent compared to last year, but adjusting for the effect of foreign exchange, grew by approximately 14 percent.

The company's loss and combined ratios were 63.1 percent and 91.7 percent, respectively, for the quarter compared to 52.3 percent and 83.5 percent, respectively, in the fourth quarter of 2008. Excluding prior year development and catastrophe losses, the current quarter attritional loss ratio was 54 percent, down slightly from the 54.7 percent reported for last year's fourth quarter.

The combined ratio for the full year 2009 was 89.6 percent compared to 95.6 percent for 2008.

Net investment income was $146.4 million, up significantly from the fourth quarter of 2008, which had been impacted by large reported losses on limited partnerships. For the fourth quarter of 2009, results for the limited partnerships were positive. Investment income totalled $547.8 million for the full year 2009, a three percent decline compared to 2008 as yields declined, particularly for short-term investments.

Shareholders' equity ended the year at $6.1 billion, up 23 percent from year-end 2008. Accordingly, book value per share increased 27 percent to $102.87 of December 31, 2009 from $80.77 at year-end 2008.