Everest Re Group Ltd. opened the second quarter "earnings season" with a bang last night when it reported a 140.9 percent jump in profits.

Bermuda-based Everest said it had net income of $264 million, or $4.64 per share, for the three months ending June 30, compared to $109.6 million or $1.99 per share in the same period in 2003.

Net income for the first six months of 2004 was $390.1 million, or $6.86 per diluted share, an increase of 91.3 percent compared to $203.9 million, or $3.82 per diluted share, in 2003.

Everest Re chairman and chief executive officer Joseph V. Taranto said: "The company generated record earnings for the quarter driven largely by strong operating fundamentals and a continued favourable, although changing, market environment.

"We believe the company is well positioned to continue its strong performance."

Everest Re exceeded analysts' expectations with the result. Analysts had been predicting net income of $2.66 per share for the quarter.

Everest Re also increased its earnings forecast for the full year to $10.50 to $11.50, up from $10 to $11.

For the six months ended June 30, 2004, after-tax operating income was $325.9 million, or $5.73 per diluted share, an increase of 54.3 percent compared to $211.2 million, or $3.96 per diluted share, in 2003.

Everest Re said gross premiums written for the second quarter of 2004 were $1.09 billion, a 1.6 percent increase compared to $1.07 billion in 2003.

The company's combined ratio in the second quarter was 91.5 percent compared to 95.5 percent in 2003.

Net investment income for the second quarter was $136.8 million compared to $102.2 million in the second quarter of 2003.

For the first half of the year, gross premiums written were $2.31 billion, an 11.6 percent increase from $2.07 billion in 2003. The combined ratio for the first six months of 2004 was 91.1 percent compared to 94.5 percent in 2003.

Net investment income for the first half of the year was $237.7 million, an increase of 21.5 percent from $195.7 million in 2003.