Profits of Bermuda reinsurer Everest Re Group have risen in the first quarter of 2002 by nearly 22 percent, according to figures released by the company yesterday.

Net income was reported at $61.1 million, or $1.24 per diluted share, a 21.8 percent increase compared to $50.1 million, or $1.07 per diluted share, in the first quarter of 2001

"As one of the strongest companies in its markets, Everest benefits from the clear flight to quality and the continuing increases in insurance and reinsurance rates," said Everest Re's chairman and chief executive officer Joseph Taranto. "This has allowed us to begin 2002 with strong growth in premiums, earnings and cash flow. We are on track for an extremely positive year."

Everest Re also reported first quarter 2002 after-tax operating income (which excludes realised capital gains and losses), of $66.0 million, or $1.35 per diluted share, a 23.6 percent increase compared to $53.4 million, or $1.14 per diluted share in the first quarter of 2001.

The company also reported gross premiums written for the first quarter were $596.3 million in 2002, a 42.2 percent increase compared to $419.4 million in 2001. Everest Re's GAAP combined ratio was 99.3 percent for this quarter compared to 103.0 percent in 2001. Net investment income for the first quarter was $85.5 million compared to $86.2 million in the first quarter of 2001.

At March 31, 2002, the company's shareholders' equity was $2.06 billion (a book value per share of $40.09), which includes the $346 million in proceeds from the company's secondary equity offering on February 21, 2002.

This business said this represents a 19.5 percent increase from shareholders' equity of $1.72 billion ($37.19 per share) at December 31, 2001.

Everest Re Group, Ltd. is a Bermuda holding company that operates through the following subsidiaries: Everest Reinsurance Co provides reinsurance to property and casualty insurers in both the US and international markets. Everest Reinsurance (Bermuda), Ltd. provides reinsurance to property and casualty and life insurers in both the Bermuda and international markets.

Everest National Insurance Company and Everest Security Insurance Company provide property and casualty insurance to policyholders in the United States. Everest Indemnity Insurance Company offers excess and surplus lines insurance in the United States.

For more information go to www.everestre.com.