NEW YORK (Dow Jones/AP) - The stock of Bermuda-based Everest Re Group rose sharply yesterday after the reinsurer posted a 54 percent increase in first-quarter profit.

In afternoon trading, shares of Everest Re jumped to $71.25, up $9.80, or 16 percent, on the New York Stock Exchange.

In a conference call with analysts yesterday, Everest Re chairman and chief executive Joseph V. Taranto said he expected higher rates and improved terms and conditions in the casualty market through the rest of this year and into 2004.

Taranto said rates are levelling off somewhat in areas that experienced dramatic price increases following the September 11, 2001 terrorist attacks.

Monday, after the financial markets closed, Everest Re said first-quarter net income rose to $94.4 million, or $1.83 a share, from $61.1 million, or $1.24 a share, a year ago.Revenue rose 43 percent in the latest quarter to $821.2 million.

Operating income came to $104.1 million, or $2.02 a share, the company said. The mean estimate of analysts polled by Thomson First Call was for earnings, excluding items, of $1.64 a share.

Everest Re also raised its 2003 earnings estimate to a range of $7.75 a share to $8.25 a share, up from a range of $6.70 a share to $7.30 a share. Analysts expected the company to earn $6.92 a share for 2003.

The company established 2004 earnings estimate of $9.50 a share to $10.50 a share. Wall Street had expected the reinsurer to earn $8.03 a share in 2004, according to Thomson First Call.

Everest Re Group, with 2002 revenue of $9.86 billion, is the holding company for Everest Reinsurance Co., an underwriter of property and casualty reinsurance.