The Fitch rating of Bermuda's Everest Reinsurance Holdings Limited was affirmed at `A-' yesterday for long term issuer and senior debt.

The company's trust preferred rating was affirmed at `BBB+' while the insurance operations were issued an insurer financial strength (IFS) rating of `AA-' .

The rating outlook on all the ratings is `stable'.

The ratings were based on Everest Re's consistent performance and good market position since its spin-off from Prudential Insurance company in 1995, Fitch said.

"The company has demonstrated sound underwriting results relative to peers as reflected in the company's GAAP combined ratio of 94.5 percent for the six months ending June 30, 2003," the ratings group said.

"Additionally, Everest Group maintains good capitalisation and balance sheet quality.

"Hardening market conditions have led to a sound improvement in results during 2002 and into 2003."

Everest Holdings is a wholly-owned subsidiary of Everest Re Group.

Everest Re has seen a 66 percent increase in net written premiums in the first six months of 2003 against the first six months of 2002.

To June 30, 2003, the company's net written premiums stood at $1.9 billion.

The growth was attributed to rate increases in a hardening market environment as well as unit growth.

And net income for the group was up 78 percent over 2002 at $203.9 million.

Everest Group has $11.4 billion in total assets and $3.1 billion total shareholder equity.