Everest Re Group Sees Pre-tax Loss of $140 million to $210 million from New Zealand Earthquake

Everest Re Group, Ltd. RE announced today its preliminary loss estimate for exposures relating to the earthquake that occurred near Christchurch, New Zealand in February. The Company's initial pre-tax loss estimate, net of reinstatement premiums, is in the range of $140 million to $210 million. On an after-tax basis, the Company estimates this loss to be between $120 million and $180 million.

The Company's current estimates for this event are based on underwriters' preliminary analyses and judgments, profiling of exposed limits, and modeled loss estimates that are consistent with an industry loss event ranging between $8 billion and $12 billion. It is expected that it will be several months before relative clarity emerges with respect to its ceding companies' underlying losses, therefore the Company may adjust these estimates as new information emerges.

As previously announced, the Company also expects gross losses of $45 million in the first quarter due to storms and flooding across Australia, which on a net after-tax basis would amount to approximately $37 million. Losses arising from Cyclone Yasi are expected to be relatively immaterial.