ST. MICHAEL, Barbados--(BUSINESS WIRE)--July 21, 2003--Everest Re
Group, Ltd. (NYSE: RE) reported second quarter 2003 after-tax
operating income, which excludes realized capital gains and losses, of
$107.1 million, or $1.94 per diluted share, a 53.7% increase compared
to $69.7 million, or $1.34 per diluted share, in the second quarter of
2002. Net income increased 105.1% to $109.6 million, or $1.99 per
diluted share, compared to $53.4 million, or $1.02 per diluted
share,in the second quarter of 2002, which was affected by investment
losses relating to the WorldCom bankruptcy. Operating income differs
from net income only by the exclusion of realized gains and losses on
investments.
For the six months ended June 30, 2003, after-tax operating income
was $211.2 million, or $3.96 per diluted share, an increase of 55.6%
compared to $135.7 million, or $2.68 per diluted share, in 2002. Net
income in the first six months of 2003 was $203.9 million, or $3.82
per diluted share, an increase of 78.1% compared to $114.5 million, or
$2.26 per diluted share, in 2002.
Gross premiums written for the second quarter of 2003 were $1.07
billion, a 69.6% increase compared to $630 million in 2002. Net
premiums written were $988 million, an increase of 64.6% from $601
million for the second quarter of 2002. The Company's GAAP combined
ratio in the second quarter was 95.5% compared to 97.6% in 2002. Net
investment income for the second quarter was $102.1 million compared
to $90.8 million in the second quarter of 2002. Cash flow from
operations for the quarter was $353.2 million, an increase of 108.3%
from $169.6 million in the second quarter of 2002.
For the six months ended June 30, 2003, gross premiums written
were $2.07 billion, a 68.8% increase from $1.23 billion in the first
six months of 2002. Net written premiums grew 66.5 % to $1.94 billion
from $1.17 billion in 2002. The GAAP combined ratio for the first six
months of 2003 was 94.5% compared to 98.4% in 2002. Net investment
income for the six months ended June 30, 2003 was $195.4 million, an
increase of 10.8% from $176.4 million in 2002. Cash flow from
operations in the first six months was $680.9 million, compared to
$275.1 million in the first six months of 2002.
At June 30, 2003, the Company's shareholders' equity was $3.06
billion or $55.09 per outstanding share. This represents a 29%
increase from shareholders' equity of $2.37 billion or $46.55 per
share at December 31, 2002.
Commenting on the Company's results, Chairman and Chief Executive
Officer Joseph V. Taranto said, "Solid execution in firming markets
contributed to the Company's robust top-line growth, excellent cash
flow, continued improvement in underwriting margins and strong
earnings and book value growth".
The Company also reaffirmed its estimate of 2003 operating
earnings at $7.75 - $8.25 per diluted share, and its estimate of 2004
operating earnings at $9.50 - $10.50 per diluted share, both absent
any unusual losses or market developments.
This press release contains forward-looking statements within the
meaning of the U.S. federal securities laws. We intend these forward-
looking statements to be covered by the safe harbor provisions for
forward-looking statements in the U.S. Federal securities laws. In
particular, our forecasts of future earnings are forward looking
statements. These statements involve risks and uncertainties that
could cause actual results to differ materially from those contained
in forward-looking statements made on behalf of the company. These
risks and uncertainties include the impact of general economic
conditions and conditions affecting the insurance and reinsurance
industry, the adequacy of our reserves, our ability to assess
underwriting risk, trends in rates for property and casualty insurance
and reinsurance, competition, investment market fluctuations, trends
in insured and paid losses, catastrophes, regulatory and legal
uncertainties and other factors described in our latest Annual Report
on Form 10-K. The Company undertakes no obligation to publicly update
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.

Everest Re Group, Ltd. is a Bermuda holding company that operates
through the following subsidiaries: Everest Reinsurance Company
provides reinsurance to property and casualty insurers in both the US
and international markets. Everest Reinsurance (Bermuda), Ltd.
provides reinsurance to property and casualty and life insurers in
both the Bermuda and international markets. Everest National Insurance
Company and Everest Security Insurance Company provide property and
casualty insurance to policyholders in the United States. Everest
Indemnity Insurance Company offers excess and surplus lines insurance
in the United States. Additional information on Everest Re Group
companies can be found at the Company's web site at www.everestre.com.

A conference call discussing the first quarter results will be
held at 8:30 a.m. Eastern Standard Time on July 22, 2003. The call
will be available on the Internet through the Company's web site or at
www.streetevents.com.

Anyone receiving this release by wire or through the Internet may
visit the Company's web site to view supplemental financial
information on the Company's results. The supplemental information is
located at www.everestre.com in the "Financials/Financial Reports"
section. The supplemental financial information may also be obtained
by contacting the Company directly.



--Financial Details Follow--


EVEREST RE GROUP, LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Dollars in thousands, except per share amounts)



Three Months Ended Six Months Ended
June 30, June 30,
------------------------------------------------
2003 2002 2003 2002
--------- --------- ----------- ----------
(unaudited) (unaudited)
REVENUES:
Premiums earned $ 851,988 $ 502,330 $ 1,596,858 $ 993,538
Net investment
income 102,060 90,830 195,437 176,370
Net realized
capital gain
(loss) 1,747 (31,008) (11,488) (34,863)
Net derivative
income (expense) 1,305 (4,890) (1,395) (5,140)
Other expense (4,453) (2,908) (5,600) (1,571)
--------- --------- ----------- ----------
Total revenues 952,647 554,354 1,773,812 1,128,334
--------- --------- ----------- ----------

CLAIMS AND EXPENSES:
Incurred loss
and loss
adjustment expenses 585,042 353,177 1,098,513 705,683
Commission,
brokerage,
taxes and fees 204,409 120,320 367,214 241,329
Other underwriting
expenses 23,920 16,724 43,784 30,849
Distributions
related to
trust preferred
securities 4,122 - 8,243 -
Interest expense
on senior notes 9,733 9,728 19,464 19,456
Interest expense
on credit facility 348 853 708 1,762
--------- --------- ----------- ----------
Total claims
and expenses 827,574 500,802 1,537,926 999,079
--------- --------- ----------- ----------

INCOME BEFORE
TAXES 125,073 53,552 235,886 129,255

Income tax expense 15,518 145 31,964 14,787
--------- --------- ----------- ----------

NET INCOME $ 109,555 $ 53,407 $ 203,922 $ 114,468
========= ========= =========== ==========


Other comprehensive
income (loss),
net of tax 142,261 39,328 172,249 (28,798)
--------- --------- ----------- ----------

COMPREHENSIVE
INCOME $ 251,816 $ 92,735 $ 376,171 $ 85,670
========= ========= =========== ==========


PER SHARE DATA:
Average shares
outstanding
(000's) 54,096 51,301 52,505 49,713
Net income per
common share
- basic $ 2.03 $ 1.04 $ 3.88 $ 2.30
========= ========= =========== ==========


Average diluted
shares
outstanding
(000's) 55,091 52,177 53,314 50,633
Net income per
common share
- diluted $ 1.99 $ 1.02 $ 3.82 $ 2.26
========= ========= =========== ==========





EVEREST RE GROUP, LTD.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except par value per share)


June 30, December 31,
------------- ------------
2003 2002
------------- ------------
ASSETS: (unaudited)
Fixed maturities - available for
sale, at market value(amortized cost:
2003, $7,478,198; 2002, $6,460,839) $ 8,000,791 $ 6,779,858
Equity securities, at market value
(cost: 2003, $60,902; 2002, $ 56,841) 56,296 47,473
Short-term investments 212,668 169,116
Other invested assets 61,728 53,856
Cash 134,909 208,830
----------- ------------
Total investments and cash 8,466,392 7,259,133

Accrued investment income 107,769 85,959
Premiums receivable 890,656 673,377
Reinsurance receivables 1,151,733 1,116,362
Funds held by reinsureds 147,404 121,308
Deferred acquisition costs 270,383 207,416
Prepaid reinsurance premiums 88,060 63,437
Deferred tax asset 98,197 139,176
Other assets 199,576 198,435
----------- -----------
TOTAL ASSETS $11,420,170 $ 9,864,603
=========== ===========

LIABILITIES:
Reserve for losses and adjustment
expenses $ 5,403,294 $ 4,905,582
Future policy benefit reserve 219,855 227,925
Unearned premium reserve 1,247,864 872,340
Funds held under reinsurance treaties 371,946 347,360
Losses in the course of payment 46,662 45,511
Contingent commissions (277) 1,932
Other net payable to reinsurers 99,971 61,244
Current federal income taxes (13,364) (16,696)
8.5% Senior notes due 3/15/2005 249,826 249,780
8.75% Senior notes due 3/15/2010 199,201 199,158
Revolving credit agreement borrowings 70,000 70,000
Company-obligated mandatorily
redeemable preferred securities
of subsidiary trusts holding
solely subordinated debentures
("trust preferred securities") 210,000 210,000
Accrued interest on debt
and borrowings 13,425 13,481
Other liabilities 246,403 308,340
----------- -----------
Total liabilities 8,364,806 7,495,957
----------- -----------


SHAREHOLDERS' EQUITY:
Preferred shares, par value: $0.01;
50 million shares authorized;
no shares issued and outstanding - -
Common shares, par value: $0.01;
200 million shares authorized;
55.5 million shares issued in 2003
and 50.9 million shares
issued in 2002 559 513
Additional paid-in capital 938,551 618,521
Unearned compensation (298) (340)
Accumulated other comprehensive income,
net of deferred income taxes of $133.2
million in 2003 and $74.4 million
in 2002 393,791 221,542
Retained earnings 1,745,711 1,551,360
Treasury shares, at cost; 0.5 million
shares in 2003 and 0.5 million
shares in 2002 (22,950) (22,950)
----------- -----------
Total shareholders' equity 3,055,364 2,368,646
----------- -----------

TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $11,420,170 $ 9,864,603
=========== ===========



EVEREST RE GROUP, LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)



Three Months Ended Six Months Ended
June 30, June 30,
-------------------- ----------------------
2003 2002 2003 2002
---------- --------- ---------- ----------
(unaudited) (unaudited)

CASH FLOWS FROM
OPERATING ACTIVITIES: $ 353,209 $ 169,579 $ 680,865 $ 275,080

CASH FLOWS FROM
INVESTING ACTIVITIES:
Proceeds from
investments sold 210,480 693,752 676,289 1,137,834
Proceeds from
investments maturing
or called 204,960 128,401 401,945 275,995
Cost of investments
acquired (1,144,754) (917,318) (2,112,036) (1,785,933)
Net sales (purchases)
of short-term
investments 30,819 (57,677) (41,464) (194,896)
---------- --------- ---------- ----------

Net cash (used in)
investing
activities (698,495) (152,842) (1,075,266) (567,000)
---------- --------- ---------- ----------

CASH FLOWS FROM
FINANCING ACTIVITIES:
Common shares issued
during the period 319,189 1,372 320,076 347,985
Dividends paid to
shareholders (4,990) (4,105) (9,571) (8,207)
Borrowings on revolving
credit agreement - - - 20,000
Repayments on revolving
credit agreement - - - (20,000)
--------- --------- ---------- ----------

Net cash provided
(used in) by
financing activities 314,199 (2,733) 310,505 339,778
--------- --------- ---------- ----------

EFFECT OF EXCHANGE
RATE CHANGES ON CASH 12,275 9,174 9,975 5,195
--------- --------- ---------- ----------


Net (decrease)
increase in cash (18,812) 23,178 (73,921) 53,053

Cash, beginning
of period 153,721 101,753 208,830 71,878
--------- --------- ---------- ----------
Cash, end
of period $ 134,909 $ 124,931 $ 134,909 $ 124,931
========= ========= ========== ==========