Everest Re Group Ltd. reported yesterday that its second quarter 2005 net income declined 26.4 percent to $194.2 million compared to $264 million in the second quarter of 2004.

Second quarter 2005 operating income fell nominally to $173.3 million, or $3.03 per share, from $174.4 million, or $3.07 per share, in the second quarter of 2004.

Chairman and chief executive officer Joseph V. Taranto said, ?We have reached yet another milestone with shareholders? equity now in excess of $4 billion and continue our disciplined pursuit of opportunities to keep this capital effectively deployed.?

For the six months ended June 30, 2005, operating income was $338.6 million, a 3.9 percent increase from $325.9 million in the same period 2004. Net income in the first six months of 2005 was $361.3 million, a decrease of 7.4 percent compared to $390.1 million in the same period of 2004.

For the six months ended June 30, 2005, gross premiums written were $2.16 billion, a 6.6 percent decrease from $2.31 billion in the first six months of 2004. Net premiums written for the same period decreased 6.4 percent to $2.09 billion from $2.23 billion in 2004. Net investment income for the six months ended June 30, 2005 was $270.3 million, an increase of 13.7 percent from $237.7 million in 2004. Cash flow from operations in the first six months was $616.3 million, compared to $792.5 million in the first six months of 2004.