Bermuda-based reinsurer Everest Re Group, Ltd. has released an early estimate of its third-quarter earnings to counter speculation swirling around the company.

The company said yesterday it expected after-tax operating income to range between $2.55 and $2.75 per share and net income to range between $2.95 and $3.20 per share.

The talk followed chief executive officer Joseph Taranto reversing his decision to retire at the end of this year — an action which prompted the resignation of his previously announced successor, chief operating officer Ralph Jones.

"We felt it was incumbent upon us to pre-announce our best estimate of earnings and book value in light of the speculation that followed Monday's announcement," Mr. Taranto said in a company statement.

"I want to assure all of our constituents that our balance sheet remains strong, our strategy is consistent, and our focus on the bottom line is unerring."

Everest estimated catastrophe losses for the quarter at $75 million, relating to events including the New Zealand earthquake and the hailstorm in Calgary.

It also expects lower net investment income on limited partnerships, due to lower equity market valuations.

Based on these estimates and share repurchases of $99.7 million completed during the quarter, the Company expects book value per share to increase approximately six percent in the quarter.

The Company will release its third quarter 2010 earnings on the morning of November 1.