Everest Re Q1 Operating Income up 9% to $165.2 Million; 14.5% Drop in Gross Premium

April 19, 2005

Bermuda’s Everest Re Group reported good first quarter results. The company’s after-tax operating income (which excludes realized capital gains and losses) was $165.2 million, or $2.90 per diluted share, a 9 percent increase compared to $151.5 million, or $2.67 per diluted share, for the first quarter of 2004. Total revenues for the quarter were $1.134 billion, compared to $1.118 billion in the same period of 2004.

Gross premiums written for the first quarter were $1.05 billion, a 14.5 percent decrease compared to $1.22 billion in 2004. Net premiums written were $1.01 billion, a decrease of 14.1 percent from $1.18 billion for the first quarter lat year.

Everest Re’s combined ratio for the period was 91.4 percent, compared to 90.8 percent in 2004. Net investment income for the first quarter was $132.9 million compared to $100.9 million in the first quarter of 2004. Cash flow from operations for the first quarter of 2005 was $325.2 million, a decrease of 18.6 percent from $399.6 million in the first quarter of 2004.

First quarter 2005 net income increased 32.5 percent to $167.1 million, or $2.93 per diluted share, compared to $126.1 million, or $2.22 per diluted share, in the first quarter of 2004.

The company’s announcement indicated that as of March 31, 2005, “shareholders’ equity was $3.76 billion, or $66.65 per outstanding share. The change in book value represents a 1.2- percent increase from shareholders’ equity of $3.71 billion, or $66.09 per outstanding share, at December 31, 2004.”

Commenting on the Company’s results, Chairman and CEO Joseph V. Taranto stated: “We are pleased with the results achieved this quarter. Our superior existing portfolio of business, our ratings, our diversified operating platform, our people and our culture position us well in this changing market.”

The complete earnings report may be obtained on the company’s Website at: http://investor.everestre.com.

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