Everest Re Earnings Rise

Bermuda-based reinsurer Everest Re Group(RE Quote) reported a net income of $245.7 million, or $3.76 a share, compared with a net loss of $417.7 million, or $7.41 a share, a year ago. Operating income, which excludes net realized investment gains and losses, was $240.2 million, or $3.68 a share, compared with a loss of $438.9 million, or $7.79 a share, a year ago.

Analysts polled by Thomson First Call were expecting earnings of $3.38 a share for the quarter.

After the massive storms in 2004 and 2005, reinsurers had increased the price of some coverage. Now that the North Atlantic hurricane season has passed with a few big storms, they get to keep most of the higher premiums collected, the company said

These high profits could lead to reinsurers competing for more business with resultant premium cuts it added.