Bermuda-based Everest Re Group, Ltd. announced that its fourth quarter results would be adversely impacted by catastrophe losses, which it estimates will be around $133 million, or $2.32 per diluted share, after tax.
“The quarter’s catastrophe loss activity arose principally from re-estimates with respect to the third quarter Florida hurricanes and Pacific typhoon Songda but also includes an initial loss provision related to the December Tsunami in East Asia,” said the announcement.
Everest Re indicated that it still expects fourth quarter net income and after-tax operating earnings of approximately $2.00 per diluted share, “despite the impact of these losses.” The Company noted that it expects shareholders’ equity to increase by approximately $200 million in the quarter, with year-end shareholders’ equity in excess of $3.7 billion.
Standard & Poor’s reacted to the announcement with a statement indicating that the company’s ratings would not be affected by the fourth quarter losses.
Everest Re plans to release its fourth quarter and full year 2004 earnings after the close of trading on the NYSE on January 31, 2005. A conference call discussing the results will be held at 8:30 a.m. Eastern Time on February 1, 2005 at which time management will comment further on results and expectations and respond to questions from the investment community. The call will be available on the Internet at the Company’s Website, www.everestre.com or at www.streetevents.com.
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