Bermuda-based Everest Re Group Ltd. swung to a third-quarter profit and beat earnings estimates as the company benefited from a milder hurricane season compared to the same period last year.

The reinsurer earned $245.7 million, or $3.76 per share, versus a loss of $417.7 million, or $7.41 per share, for the same quarter in 2005.

Excluding capital gains and losses, operating earnings rose to $3.68 per share from a loss of $7.79 in the year-ago quarter.

Analysts polled by Thomson Financial expected profit of $3.38 per share.

Revenue rose slightly to $1.11 billion from $1.10 billion in the year-ago quarter.

The company said its leap to profit from loss came from easy comparisons with the prior-year period ? which included significant catastrophe losses from hurricanes Katrina, Rita, and Wilma ? as well as favorable market conditions during the 2006 period.

Gross premiums written were $1.05 billion, a 3 percent decrease compared with $1.08 billion in the third quarter of 2005, reflecting a worldwide reinsurance operation decline of 8.2 percent but a U.S. insurance segment increase of 18.3 percent. Net investment income increased by 25.5 percent to $147.5 million.

Everest shares closed up 48 cents at $100.51.