Everest Re Group saw its profits plunge by 74 percent in the first quarter 2008 from $297.6 million to $77.9 million.

Gross premiums written were also down for the quarter at $877.5 million compared to $1.02 billion during the same period last year as the company's reinsurance segment experienced its largest decline due to increasingly competitive conditions in both the property and catastrophe sectors of the market.

But despite shareholders' equity ending the quarter at $5.6 billion down from $5.7 billion, after share repurchases of $100.8 million and dividend payouts of $30 million, book value per share grew from $90.43 to $91.01 over this same period, benefiting from the company's share repurchase activity.

Everest also report first quarter 2008 after-tax operating income, which excludes realised capital gains and losses, of $190.6 million, or $3.03 per diluted share, compared to after-tax operating income of $267.9 million, or $4.13 per diluted share, in the first quarter of 2007.

Net income, including net realised capital gains and losses, was $77.9 million, or $1.24 per diluted share, for the first quarter of 2008 compared to $297.6 million or $4.59 per diluted share for the same period last year.

Other operating highlights for the first quarter included net investment income down four percent to $150.1 million compared to $155.8 million for last year's first quarter. The reduction primarily resulted from lower income from limited partnership investments.

Cash flow from operations was $250.7 million for the period compared to $162.3 million for the first quarter of 2007. Lower catastrophe loss pay-outs in the current quarter of $68.4 million compared to $141.2 million in the first quarter of 2007 contributed to this increase.

Everest's chairman and chief execuive officer Joseph Taranto said: "We are pleased to continue to produce quality earnings in this challenging financial marketplace. We are also pleased to have returned $130 million to shareholders in the form of $100 million in stock buyback and $30 million in dividends."