Everest Re profits fall 45%
by David Masters
Bermuda-based Everest Re Group has reported its second quarter results, with after-tax operating income excluding realised capital gains and losses at $180 million, equivalent to $2.90 per diluted share.
This is compared to an after-tax operating income of $213.3 million, or $3.36 per diluted share, for the second quarter of 2007.
Net income for the quarter was $153 million, down 45% compared to net income of $282.9 million for the second quarter of 2007.
Net income for the first half of 2008 was $231 million, down 60% on year.
Everest is attributing the fall in profits to ‘weakening US economic fundamentals’.
An after tax charge of $45.5 million was recorded in the second quarter because of deterioration in the runoff experience on the Centrix subprime auto loan credit insurance programme.
Everest has now increased its share repurchase programme to 6.1 million, authorising the buyback of an additional 5 million shares.
Everest Re, together with its subsidiaries, underwrites insurance and reinsurance in Africa, Asia, Bermuda, Canada, Latin America, the Middle East, and the United States.
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