Everest Re has reported a 4.5% decrease in its Q1 2006 after-tax operating income to $157.9m compared to $165.2m in the first quarter of 2005.
The reinsurer said that on a pre-tax basis, first quarter results for 2006 were impacted by increased catastrophe loss estimates, including reinstatement premiums, of $70.8m.
Gross premiums written for the first quarter of 2006 were $1.06bn compared to $1.05bn in 2005.
Chairman and CEP, Joseph Taranto said: "Although changes in estimates for the 2005 hurricanes substantially reduced first quarter earnings, we still posted a 15.7% return on equity, demonstrating the strength of our worldwide operation.
"Our reinsurance business grew 8% for the quarter, as we continue to see new quality opportunities, particularly for property reinsurance.
"Whereas our insurance premiums were down from less California workers comp business and less credit business, we have recently added new programmes that should result in quality growth for the second half of the year.
"Accordingly, we remain positive with regard to our overall prospects for 2006."
