Everest Re profits rose 78 percent in the second quarter of 2009 on the back of rising underwriting revenue.

The Bermuda-based reinsurer's net income rose to $272.6 million, or $4.43 per share, compared $153 million, or $2.46 per share, for the second quarter of 2008.

After-tax operating income, excluding realised capital gains and losses, was $256.2 million or $4.16 per share for the second quarter compared to $180 million or $2.89 per share, for the same period last year.

Everest Re chairman and CEO Joseph Taranto said: "We are pleased with the results that have been achieved for the first half of the year, and believe we are well positioned to continue to produce quality earnings.

"During the quarter, we bought back $49.4 million of our common shares under our share repurchase programme and we remain committed to delivering value to our shareholders through efficient and effective capital management.

"Since the beginning of the year, we have returned more than $108 million of capital, both in the form of dividends and share repurchases and opportunistically repurchased outstanding debt at a significant discount."

Gross written premiums increased eight percent to $973.8 million for the quarter compared to $905.3 million for the same period in 2008.

The company's combined ratio - the proportion of premium dollars spent on claims and expenses - was 87.9 percent for the quarter versus 94.4 percent in the second quarter of 2008.

Net investment income was $167.2 million, five percent lower than in the second quarter of 2008, mainly due to lower income from equity securities and limited partnership investments.

Cash flow from operations was $103.4 million compared to negative cash flows of $18.4 million for the same period in 2008, largely attributed to timing.

Shareholders' equity ended the quarter at $5.5 billion, up 12 percent from year-end 2008. Accordingly, book value per share increased 13 percent to $91.13 as of June 30, 2009 from $80.77 at year-end 2008.

During the quarter, the company repurchased 707,900 of its common shares at an average price of $69.81.

The total cost of the repurchased shares under this programme was $49.4 million, with the repurchases made pursuant to a share repurchase authorisation, provided by the company's board of directors, under which there remains 5.1 million shares available.

EVEREST Q2 REPORT CARD

Net income: $272.6 million compared to $153 million

Combined ratio: 87.9 percent compared to 94.4 percent

Gross premiums written: $973.8 million compared to $905.3 million