Everest Re Group, a company engaged in the reinsurance and insurance business, has reported a net income, including net realized capital gains and losses, of $153 million or $2.47 per diluted share for the second quarter of 2008, a decrease against $282.9 million, or $4.45 per diluted share for the comparable period of 2007.
The company’s after-tax operating income, which excludes realized capital gains and losses, was $180 million, or $2.90 per diluted share for the quarter, down from after-tax operating income of $213.3 million, or $3.36 per diluted share in the second quarter of 2007.
Net investment income was down 2% to $175.9 million compared to $179.7 million for the second quarter of 2007. The reduction primarily resulted from a slight reduction in the average yield on the fixed income portfolio. Gross written premiums of $905.3 million decreased 3% from the same period in 2007.
For the six months ended June 30, 2008, after-tax operating income was $370.6 million, or $5.94 per diluted share, a decline as against $481.2 million, or $7.50 per diluted share, for the six months ended June 30, 2007.
Net income, including realized capital gains and losses was $231 million in the first six months of 2008, or $3.70 per diluted share, compared to $580.5 million or $9.05 per diluted share recorded during the corresponding period in 2007.
Joseph Taranto, chairman and CEO of Everest Re, said: Our core business continues to perform very well as we maintain disciplined underwriting.