Bermuda-based Everest Re Group announced yesterday that it expects after-tax losses of $246 million for the third quarter of 2008 and has seen a nine percent drop in its share value since the 2007 year end.

"After-tax net realised capital losses for the quarter are anticipated to be $246 million, reflecting $131 million due to other than temporarily impaired investment losses, $62 million due to sales of securities and $53 million due to fair value adjustments of our investments," the company said in a Business Wire release.

"After the impact of net realised and unrealised capital losses, share repurchases and dividends paid to shareholders during the quarter, the company expects book value per share to be about $82; a decrease of approximately 9 percent from year end 2007."

Operating income was $0.15 to $0.25 per share, the company added, reflecting previously announced losses from hurricanes Ike and Gustav.

"A significant portion of the realised and unrealised capital losses emanated from the lack of liquidity in financial markets and the concomitant widening of interest rate spreads on all fixed income securities relative to US Treasury securities," the company added.

Chairman and CEO Joseph Taranto said, however, the company remains well capitalised.

"Despite financial market volatility and the large loss events in the quarter, we remain well capitalised relative to our financial ratings," he said. "We are prepared to continue to support our clients' needs as well as pursue market opportunities as they arise."

Despite the poor results, Everest's stock rose 21.91 percent yesterday in trading on the New York Stock Exchange, sharing in an overall powerful market rally.

Shares of Everest closed at $74.06, up $13.31 from Friday.

Share value has fallen considerably from the company's 52-week high of $113.52, however.