Everest Re Group Ltd.'s Joseph Taranto has announced his retirement as CEO of the company at the end of this year as the company released its results for the second quarter of 2010.

The re/insurer's profits dropped by more than $100,000 during the second quarter of 2010 to $156.7 million or $2.70 per share from $272.6 million or $4.43 per share for the same period in 2009.

Mr. Taranto said he will be stepping down from his post on December 31, 2010, to be succeeded by president and chief operating officer Ralph Jones, but he will stay on as chairman of the board.

Speaking on the company's results, Mr. Taranto said: "Although markets remain generally competitive, we have been able to selectively grow our business by focusing on those markets that present the best opportunities.

"We were pleased with the results generated this quarter and given our very well capitalised position, we continue to invest these earnings into buying back the company's shares at prices that we believe are very attractive. Since the beginning of the year, we have bought back almost six percent of the company's outstanding shares."

On his move, he added: "At December 31, 2010, I will retire as CEO. I will remain chairman of the board. Ralph Jones will become CEO on January 1, 2011.

"It has been an honour to work with many wonderful people at Everest to build the company from a modest size in 1995 to the global company it is today with over $6 billion of capital. The board and I have great confidence that Ralph, and our team, will continue to effectively grow Everest in the future."

Everest boosted its gross premiums written by four percent to $1 billion in the second quarter of 2010, while worldwide, reinsurance premiums increased six percent to $808.6 million with premium derived from the US markets up three percent and the international markets up nine percent. The company's combined ratio was 93.2 percent for the quarter versus 87.5 percent for the second quarter of 2009.

Excluding $9.8 million of prior year favourable development and $69.7 million of catastrophe losses, which were primarily attributable to development on first-quarter events, the current year attritional loss ratio was 59 percent, up from the 57.7 percent reported for last year's second quarter.

After-tax operating income, excluding net realised capital gains and losses, stood at $184.8 million, or $3.18 per share, compared to $256.2 million or $4.16 per share in the second quarter of 2009.

For the six months ended June 30, 2010, after-tax operating income was $111 million, or $1.89 per share, versus $362.4 million, or $5.88 per share, for the first six months of last year.

Net income, including net realised capital gains and losses, was $134 million or $2.28 per share for the first six months of 2010, compared to $381.1 million or $6.19 per share for the same period in 2009.

During the quarter, Everest repurchased 2.7 million of its shares at an average price of $74.64 and a total cost of $200.1 million. For the year, the company bought back 3.2 million of its shares or 5.5 percent of its total outstanding shares at year end 2009 for a total cost of $247.1 million. Shareholders' equity ended the quarter at $6 billion, down one percent from the $6.1 billion at December 31, 2009. Book value per share was $107.31 as of June 30, 2010 compared to $102.87 at December 31, 2009.

• Ratings agency AM Best has affirmed Everest's financial strength rating of A+ (superior).