ST. MICHAEL, Barbados - December 22, 2000 -- Everest Re Group, Ltd. (NYSE: RE) announced today that its subsidiary Everest Reinsurance (Bermuda), Ltd. has acquired AFC Re Ltd., a Bermuda-based annuity/life reinsurer, from AFC Holdings Ltd. for approximately $17 million in a cash transaction to be accounted for as a purchase. The acquisition brings with it approximately $253 million in assets and $236 million of liabilities, most of which represent reserves for annuity benefits, as well as a staff of four who will become part of Everest Re Group's existing operations in Bermuda. Peter Bennett, CEO of Everest Reinsurance (Bermuda), Ltd., commenting on the transaction said, " We are extremely pleased to expand Everest Re Group's product offerings through an acquisition which gives us an immediate and respected presence in this important market. We look forward to integrating the efforts of these high calibre professionals with the Group's existing product and distribution capabilities and further building on the financial strength we bring to world reinsurance markets."
Joseph V. Taranto, CEO of Everest Re Group, Ltd, added, "Our Bermuda reinsurance company continues to strengthen under Peter Bennett's leadership. We expect this transaction to be accretive in 2001 and add approximately 5 cents to earnings. Accordingly, we are raising our estimate of operating earnings for 2001 to a range of $4.45 to $4.85 per diluted share, absent unusual loss activity."
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. Southeastern Security Insurance Company provides personal lines insurance in Georgia. Everest Insurance Company of Canada provides property and casualty insurance to policyholders in Canada. Mt. McKinley Insurance Company is a run-off insurer domiciled in Delaware. Additional information on Everest Re Group companies can be found at the Group's web site: www.everestregroup.com.
Statements made in connection with this release that are not purely historical may be deemed forward-looking statements. Such statements, including in particular the Company's estimates of future earnings, are subject to various risks and uncertainties, including but not limited to the impact of competition, product demand, insurance and reinsurance pricing, trends in paid and incurred losses, catastrophes, interest rates and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. These risks could cause the Company's actual results to differ materially from those expressed in any forward-looking statement that may be made by or on behalf of the Company.
