Bermuda-based reinsurer Everest Re Group Ltd. last night posted a loss of $233.1 million for the third quarter after being hit by catastrophe and investment losses.

The loss, which included net realised capital losses, broke down to $3.80 per share, compared to a profit of $3.90 a share, or total earnings of $246.6 million, in the same period last year.

Pre-tax catastrophe losses, primarily emanating from hurricanes Gustav and Ike, totalled $267.4 million. The storms drove Everest's combined ratio - the percentage of premium dollars spent on claims and expenses - up to 115 percent, compared to 86.6 percent last year.

After-tax capital losses totalled $245.7 million for the quarter, with write-downs of Everest's financial-sector bond holdings accounting for $131 million of the loss. The remainder was about evenly split between realised losses from the sale of securities and and fair value accounting adjustments on the value of equities held.

Everest is the first major US-listed Bermuda reinsurer to post its third-quarter results and its experience, during a quarter which brought greater than normal catastrophe losses and a problematic investment environment, is expected to be typical of many of the Island's insurance companies.

Gross premiums written fell by seven percent to $999 million during the quarter, five percent down in the reinsurance segment and 15 percent lower in the insurance segment.

Shareholders' equity was $5 billion at the end of their third quarter, compared to $5.7 billion at the end of last year.

Everest chairman and chief executive officer Joseph Taranto said: "This quarter was marked by significant losses on both the underwriting and investment side, as two sizeable hurricanes in the Gulf occurred in tandem with a meltdown in the financial markets.

"Our conservative capital management and investment strategies enabled us to withstand these tumultuous events and maintain our position of strength. We believe we are in a strong position to continue to serve our clients as well as capitalise on opportunities going forward."

Everest added that since the end of 2007, it has repurchased 1.6 million shares at an average price of $92.35. The company's cumulative share repurchase authorisations allow for additional repurchases of up to 5.8 million shares.