Bermuda-based Everest Re Group, Ltd. said after-tax operating income jumped 33.7 percent in the fourth quarter of 2002 as it took advantage of rising premiums.

And the company said it expected to post improved results in 2003 as it predicted growth in premiums and underwriting margins.

Everest said its fourth quarter after-tax operating income was $60.6 million, or $1.17 per diluted share, compared to $45.3 million, or $0.96 per diluted share, in the fourth quarter of 2001.

Fourth quarter net income, which includes realised gains and losses on investments, rose 57.1 percent to $55.6 million or $1.08 per diluted share from $35.4 million, or $0.75 per diluted share, in the fourth quarter of 2001.

For the year ended December 31, 2002, after-tax operating income for the year was $262.8 million, or $5.14 per diluted share, an increase of 126.9 percent compared to $115.8 million, or $2.46 per diluted share, in 2001. Net income was $231.3 million, or $4.52 per diluted share, an increase of 133.6 percent compared to $99.0 million, or $2.10 per diluted share, in 2001, the company said.

"With our diverse underwriting platform, the company took full advantage of the opportunities presented to us in 2002, delivering exceptional top-line growth, solid earnings and record cash flow," said chairman and chief executive officer Joseph V. Taranto.

"We expect continued improvement in premium growth, underwriting margins and bottom-line results in 2003. Accordingly, we are revising our estimate for 2003 operating earnings and net income per share to a range of $6.70 to $7.30, absent unusual loss activity."

Everest said gross premiums written for the fourth quarter of 2002 almost doubled, rising 94.5 percent to $912.2 million from $469 million in 2001. Net written premiums were $811.3 million, an increase of 116 percent from $375.5 million for the fourth quarter of 2001.

The company's combined ratio in the fourth quarter was 101.6 percent compared to 108.7 percent in 2001.

Net investment income for the fourth quarter was $87.8 million compared to $83.2 million in the fourth quarter of 2001.

For the full year, gross premiums written were $2.85 billion, a 51.8 percent increase from $1.87 billion in 2001. Net written premiums grew 69.1 percent to $2.64 billion in 2002 from $1.56 billion in 2001. The combined ratio for 2002 was 99 percent compared to 113.5 percent in 2001.

Net investment income for the year was $350.6 million, an increase of three percent from $340.4 million in 2001.