Everest Re Group missed analysts expectations for their first quarter earnings despite posting an increase of 32.5 percent compared to the same period last year.

In a press release, the Bermuda-based company said they had benefited from fewer losses and higher net investment income in the quarter, earning $167.1 million, or $2.93 per share compared to $126.1 million, or $2.22 per share, a year ago.

Operating income for the quarter, which excludes realised capital gains and losses, rose nine percent to $165.2 million, or $2.90 per share, from $151.5 million, or $2.67 per share, last year.

Analysts surveyed by Thomson Financial expected the company to report operating profit of $3 per share. Total revenue rose to $1.13 billion from $1.12 billion in the 2004 period.

Gross premiums written fell 14.5 percent to $1.05 billion from $1.22 billion a year earlier. Net premiums written during the quarter were $1.01 billion, a drop of 14.1 percent from $1.18 billion a year ago.

Everest Re shares rose $1.56 to close at $86.02 on the New York Stock Exchange on Monday, but traded sideways at approximately $84 per share on after opening below $83.