Everest Re Group yesterday announced a first-quarter profit of $304.7 million as the reinsurer saw strong rate increases.The company’s net income of $5.68 per diluted common share for the period ended March 31 compared to a net loss of $315.9 million, or $5.81 per common share, for the first quarter of 2011.Everest said, excluding realised capital gains and losses, after-tax operating income was $239.9 million, or $4.48 per diluted common share, for the first quarter 2012, compared to an after-tax operating loss of $323.6 million, or $5.95 per common share, for the same period last year.Operating earnings comfortably surpassed the $3.45 per share expectation of analysts polled by Bloomberg.The company’s incurred losses and loss adjusted expenses (claims) dropped from $1.25 billion in the first quarter of 2011 to $602 million this past quarter.Chairman and CEO Joseph Taranto said the company was “extremely pleased” with the earnings, having “generated comprehensive income in excess of $400 million, an annualised operating ROE of 17 percent, and growth in book value per share, adjusted for dividends, of seven percent in the quarter.“Our underwriting portfolio, particularly for catastrophe exposed risks, has seen strong upward rate momentum, which is adding meaningfully to the risk-adjusted returns we are able to achieve. We expect market momentum to continue and we remain well positioned to capitalise on opportunities as they arise.”Gross written premiums were $1.05 billion, a decrease of two percent when compared to the first quarter of 2011.However, the company said, adjusting for the impact of reinstatement premiums and foreign currency fluctuations, gross written premiums were up just over one percent, quarter over quarter, with reinsurance premiums up nine percent on this same basis.The company said its loss ratio was 60.4 percent for the quarter compared to 123.6 percent in the first quarter of 2011.Net investment income for the current quarter was $152.4 million, down when compared to $178.7 million for 2011, primarily due to higher investment income on limited partnership investments in the prior year.Net after-tax realised and unrealised capital gains totalled $64.8 million and $80.4 million, respectively, for the quarter.The company said cash flow from operations remained strong at $165.7 million for the quarter.During the quarter, the company repurchased 1.4 million of its common shares at an average price of $90.73 and a total cost of $125 million. The repurchases were made pursuant to a share repurchase authorisation, provided by the company’s board of directors, under which there remain 5.9 million shares available.Shareholders’ equity ended the quarter at $6.33 billion, up from $6.07 billion at year end 2011.Book value per share increased 6.5 percent from $112.99 at December 31, 2011 to $120.30 at March 31.Risk & Insurance has reported analysts have said fewer catastrophe claims and a firming trend in pricing are expected to help reinsurers deliver some of their best first-quarter results in at least two or three years.