ST. MICHAEL, Barbados -- Nov. 1, 2001 -- Everest Re Group, Ltd. (NYSE:RE) announced today that it has filed a Form S-3 shelf registration statement with the Securities and Exchange Commission. Upon being declared effective by the SEC, the shelf registration statement will enable the Company to offer newly issued common shares from time to time, up to an aggregate of $575 million, subject to market conditions and the Company's capital needs. The Company expects to use the proceeds of the offering for working capital and other general corporate purposes.
The registration statement on Form S-3 relating to these common shares has been filed with the SEC but is not yet effective. The common shares described in the registration statement may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release is not an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these common shares in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
The Company also announced a technical correction to its press release dated October 22, 2001. That release reported operating earnings and net income for the three months ended September 30, 2001 of ($ .80) and ($ .93) per fully diluted share, respectively. Those figures were pro forma in that they included the net additional shares relating to the potential exercise of outstanding options, resulting in a dilution of the net loss per share. Based on generally accepted accounting principles, which require exclusion of the net additional shares when there is a loss, operating earnings and net income for the three months ended September 30, 2001 were ($ .82) and ($ .95) per fully diluted share, respectively. This correction affects only the results per fully diluted share for the three months ended September 30, 2001 and has no impact on the results per fully diluted share for the nine months ended September 30, 2001 or the underlying aggregate results for the three or nine month periods ending September 30, 2001.
Everest Re Group, Ltd. is a Bermuda holding company that operates through the following subsidiaries: Everest Reinsurance Company provides reinsurance to property and casualty insurers in both the US and international markets. Everest Reinsurance (Bermuda), Ltd. provides reinsurance to property and casualty and life insurers in both the Bermuda and international markets. Everest National Insurance Company provides property and casualty insurance to policyholders in the United States. Everest Indemnity Insurance Company offers excess and surplus lines insurance in the United States. Everest Security Insurance Company provides personal lines insurance in Georgia. Additional information on Everest Re Group companies can be found at the Group's web site at www.everestre.com.