Everest Re Gives Preliminary Q3 Estimates; $246 Million Capital Loss

The Bermuda-based Everest Re Group has announced its preliminary estimates of third quarter 2008 results.

The Company said after-tax operating income, which excludes capital gains/losses, for the third quarter of 2008 are expected to be “between $0.15 and $0.25 per common share, reflecting the previously announced losses due to Hurricanes Gustav and Ike.

“After-tax net realized 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”.

Everest Re added that “after the impact of net realized and unrealized capital losses, share repurchases and dividends paid to shareholders during the quarter, the Company expects book value per share to be about $82.00; a decrease of approximately 9 percent from year end 2007. A significant portion of the realized and unrealized 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 U.S. Treasury securities.”

Chairman and CEO Joseph V. Taranto commented: “Despite financial market volatility and the large loss events in the quarter, we remain well capitalized relative to our financial ratings. We are prepared to continue to support our clients’ needs as well as pursue market opportunities as they arise.”

Source: Everest Re Group – www.everestre.com