of 2001 over earnings for the same period in 2000. After tax operating income, excluding realised capital gains and losses, was $53.4 million compared to $43.5 million in 2000.

Net income was $50.1 million, or $1.07 per diluted share, which represents a 3.2 percent increase over 200 figures of $48.6 million or $1.06 per diluted share.

Joseph Taranto, chairman and chief executive officer, said, "Our efforts to capitalise on the improving insurance and reinsurance markets, coupled with the full effects of our restructuring and acquisitions from last year, have generated solid gains in premiums and income.

"Our returns are in the upper tier in our industry. With an excellent start to the year we remain comfortable that earnings for the full year will fall in a range of $4.50-$4.90 per diluted share in the absence of unusual loss activity.'' Mr. Taranto's employment agreement has just been extended to March 31st 2004.

Gross premiums written in the first quarter were $425.2 million, a 39.8 percent increase compared to $304.3 million in 2000. Net investment income also showed an increase, $86.2 million compared to $65.0 million in 2000 which represents a rise of 32.5 percent.

At March 31st 2001 the company's shareholders' equity was $1,680.3 million, which is a book value of $36.45 per share. This represents a 6.1 percent increase from December 31st, 2000 when it stood at $1,583.4 million or $34.40 per share.

A conference call discussing the first quarter results will be available on the Internet through the group's website at www.everestre.com or at www.streetevents.com.