Everest Re Lowers Q4 Earnings Estimate

January 25, 2005

The Bermuda-based Everest Re Group has issued a bulletin indicating that it now expects fourth quarter 2004 net income and after-tax operating earnings of approximately $1.65 per diluted share.

The company had earlier indicated that its fourth quarter results would be adversely impacted by catastrophe losses, which it estimated will be around $133 million, or $2.32 per diluted share, after tax (See IJ Website Jan.16). Everest said in that bulletin that it nonetheless expected after-tax operating earnings of approximately $2.00 per diluted share, “despite the impact of these losses.”

The company also noted that it “expects shareholders’ equity to increase by approximately $175 million in the quarter, with year-end shareholders’ equity in excess of $3.7 billion.” It said the “revision of its expectations from its press release dated January 13, 2005 relates solely to its current determination that the tax benefits available to it in the fourth quarter will be less than anticipated at the time of the earlier press release.”

Everest expects 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 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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