Profile: Everest Re Group, Ltd. (RE)

Everest Re Group, Ltd., along with its operating subsidiaries, is engaged in underwriting of reinsurance and insurance in the United States, Bermuda, and international markets. The Company underwrites insurance principally through general agent relationships and surplus lines brokers. The Company’s subsidiaries include Bermuda Re, Everest International Reinsurance, Ltd., Everest Re, Everest National Insurance Company, Everest Indemnity Insurance Company, Everest Security Insurance Company, and Mt. McKinley. The Company, through its subsidiaries, operates in five segments: U.S. Reinsurance, U.S. Insurance, Specialty Underwriting, International, and Bermuda.

U.S. Reinsurance Segment

The Company’s U.S. Reinsurance segment writes property and casualty reinsurance, both treaty and facultative, through reinsurance brokers, as well as directly with ceding companies within the United States. The Company targets certain brokers and, through the broker market, specialty companies and small to medium sized standard lines companies. The Company also targets companies that place their business predominantly in the direct market, including small to medium sized regional ceding companies, and seeks to develop long-term relationships with those companies. In addition, the United States Reinsurance segment writes portions of reinsurance programs for large, national insurance companies.

U.S. Insurance Segment

During the year ended December 31, 2008, the Company’s U.S. Insurance segment wrote $771.8 million of gross written premiums, of which 96.1% was casualty and 3.9% was property. Of the total business written, Everest National wrote $601.1 million and Everest Re wrote $28.0 million, commercial property and casualty business written through general agents with program administrators. Workers’ compensation business accounted for $196.7 million, or 25.5% of the total business written, including $126.0 million, or 64.1%, of workers’ compensation business written in California.

Everest Indemnity wrote $121.4 million, principally excess and surplus lines insurance business written through surplus lines brokers. Everest Security wrote $21.4 million, principally non-standard auto insurance written through retail agents. With respect to insurance written through general agents and surplus lines brokers, the Company supplements the initial underwriting process with periodic claims, underwriting and operational reviews and ongoing monitoring.

Specialty Underwriting Segment

The Company’s Specialty Underwriting segment writes accident and health (A&H), marine, aviation and surety reinsurance. The A&H unit primarily focuses on health reinsurance of traditional indemnity plans, self-insured health plans, accident coverages and specialty medical plans. The marine and aviation unit focuses on ceding companies with a particular expertise in marine and aviation business. The marine and aviation business is written primarily through brokers and contains a significant international component written primarily through the London market. Surety business underwritten by the Company consists mainly of reinsurance of contract surety bonds.

International Segment

The Company’s International segment focuses on opportunities in the international reinsurance markets. The Company targets several international markets, including: Canada, with a branch in Toronto; Asia, with a branch in Singapore, and Latin America, Africa and the Middle East, which business is serviced from Everest Re’s Miami and New Jersey offices. The Company also writes from New Jersey home-foreign business, which provides reinsurance on the international portfolios of United States insurers. Approximately 84.4% of the Company’s 2008, international gross written premiums represented property business, while 15.6% represented casualty business. Approximately 71.9% of the Company’s international business was written through brokers, with 28.1% written directly with ceding companies.

Bermuda Segment

The Company’s Bermuda segment writes property and casualty insurance and reinsurance through Bermuda Re and property and casualty reinsurance through its United Kingdom branch. In 2008, Bermuda Re had gross property and casualty written premiums of $257.7 million virtually all of which was treaty reinsurance. The United Kingdom branch of Bermuda Re wrote $525.7 million of gross treaty reinsurance premium consisting of 41.7% of pro rata property business, 19.3% of excess property business, 19.5% of pro rata casualty business, and 19.5% of excess casualty business.