EVEREST RE GROUP, LTD.

Seon Place, 141 Front Street, 4^th Floor, Hamilton HM 19, Bermuda

Contact:  Elizabeth B. Farrell

Vice President, Investor Relations

Everest Global Services, Inc.

908.604.3169

For Immediate Release

Everest Re Group Reports Third Quarter 2016 Results;

Annualized Return on Equity of 15% for the Quarter and 11% Year-to-Date

HAMILTON, Bermuda –October 24, 2016 -- Everest Re Group, Ltd. (NYSE: RE) today reported third quarter 2016 net income of $295.4 million, or $7.06 per diluted common share, compared to net income of $88.6 million, or $2.00 per diluted common share, for the third quarter of 2015. After-tax operating income¹, excluding realized capital gains and losses, was $273.2 million, or $6.53 per diluted common share, for the third quarter of 2016, compared to after-tax operating income¹ of $200.2 million, or $4.53 per diluted common share, for the same period last year.

For the nine months ended September 30, 2016, net income was $622.8 million, or $14.70 per diluted common share, compared to $620.6 million, or $13.92 per diluted common share, for the first nine months of 2015. After-tax operating income¹, excluding realized capital gains and losses, was $630.1 million, or $14.87 per diluted common share, compared to $754.6 million or $16.92 per diluted common share, for the same period in 2015.

Commenting on the Company's results, President and Chief Executive Officer, Dominic J. Addesso said, "We are very pleased with this quarter's results. These earnings reflect strong underwriting margins, with a combined ratio of 85.6%, and a well-balanced investment portfolio that is providing solid investment income returns. Continued momentum in our insurance operations coupled with the stability of our reinsurance book is fostering these strong results and providing shareholders double digit returns, with an 11% annualized operating return on equity for the first nine months of the year."

Operating highlights for the third quarter of 2016 included the following:

·

Gross written premiums for the quarter were $1.8 billion, an increase of 3% compared to the third quarter of 2015. Eliminating the unfavorable effects of foreign currency fluctuations, premiums were actually up 4% for the quarter. Worldwide, reinsurance premiums were up 2%, on a constant dollar basis, and insurance premiums were up 9%, quarter over quarter.

·	The combined ratio for the quarter was 85.6% compared to 90.6% in the third quarter of 2015. Excluding catastrophe losses, reinstatement premiums, and prior period loss development, the current quarter attritional combined ratio was 84.4% compared to 88.3% in the same period last year.

·

Catastrophe losses, net of reinsurance, amounted to $17.5 million in the quarter, largely arising from Hurricane Hermine. In addition, reserves for events that occurred earlier in the year were strengthened but were largely offset by reserve releases on several prior year events. The net impact in the quarter of these catastrophe losses, after reinstatement premiums and taxes, was $16.2 million.

·	Net investment income for the quarter was $122.7 million, including income of $17.1 million on limited partnership investments.

·	Cash flow from operations was $276.3 million compared to $270.2 million for the same period in 2015.

·	Through the first nine months, the annualized after-tax operating income¹ return on average adjusted shareholders' equity² was 11.0%.

·

During the quarter, the Company repurchased 1,013,857 of its common shares at an average price of $190.21 and a total cost of $192.9 million. Subsequent to quarter end, the Company repurchased an additional 36,756 shares at an average price of $192.07 and a total cost of $7.1 million bringing total repurchases since second quarter to $200 million. The repurchases were made pursuant to a share repurchase authorization, provided by the Company's Board of Directors, under which there remains 2.0 million shares available.

·	Shareholders' equity ended the quarter at $8.0 billion, up 6% compared to year end 2015. Book value per share increased 10% from $178.21 at December 31, 2015 to $196.67 at September 30, 2016.

This news release contains forward-looking statements within the meaning of the U.S. federal securities laws.  We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. Federal securities laws. These statements involve risks and uncertainties that could cause actual results to differ materially from those contained in forward-looking statements made on behalf of the Company.  These risks and uncertainties include the impact of general economic conditions and conditions affecting the insurance and reinsurance industry, the adequacy of our reserves, our ability to assess underwriting risk, trends in rates for property and casualty insurance and reinsurance, competition, investment market fluctuations, trends in insured and paid losses, catastrophes, regulatory and legal uncertainties and other factors described in our latest Annual Report on Form 10-K.  The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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 U.S. and international markets. Everest Reinsurance (Bermuda), Ltd., including through its branch in the United Kingdom, provides reinsurance and insurance to worldwide property and casualty markets and reinsurance to life insurers. Everest Reinsurance Company (Ireland), Limited provides reinsurance to non-life insurers in Europe. Everest National Insurance Company and Everest Security Insurance Company provide property and casualty insurance to policyholders in the U.S. Everest Indemnity Insurance Company offers excess and surplus lines insurance in the U.S. Everest Insurance Company of Canada provides property and casualty insurance to policyholders in Canada. The Company also operates within the Lloyd's insurance market through Syndicate 2786. In addition, through Mt. Logan Re, Ltd., the Company manages segregated accounts, capitalized by the Company and third party investors, that provide reinsurance for property catastrophe risks. Additional information on Everest Re Group companies can be found at the Group's web site at www.everestregroup.com.

A conference call discussing the third quarter results will be held at 10:30 a.m. Eastern Time on October 25, 2016. The call will be available on the Internet through the Company's web site or at www.streetevents.com.

Recipients are encouraged to visit the Company's web site to view supplemental financial information on the Company's results. The supplemental information is located at www.everestregroup.com in the "Financial Reports" section of the "Investor Center". The supplemental financial information may also be obtained by contacting the Company directly.

___________________________

 

		Three Months Ended																Nine Months Ended
		September 30,																September 30,
(Dollars in thousands, except per share amounts)		2016								2015								2016								2015
						(unaudited)																(unaudited)
						Per Diluted								Per Diluted								Per Diluted								Per Diluted
						Common								Common								Common								Common
		Amount				Share				Amount				Share				Amount				Share				Amount				Share
Net income (loss)		$	295,394			$	7.06			$	88,553			$	2.00			$	622,772			$	14.70			$	620,588			$	13.92
After-tax net realized capital gains (losses)			22,215				0.53				(111,680	)			(2.53	)			(7,302	)			(0.17	)			(134,024	)			(3.01	)
After-tax operating income (loss)		$	273,179			$	6.53			$	200,233			$	4.53			$	630,074			$	14.87			$	754,612			$	16.92
(Some amounts may not reconcile due to rounding.)

Although net realized capital gains (losses) are an integral part of the Company's insurance operations, the determination of net realized capital gains (losses) is independent of the insurance underwriting process.  The Company believes that the level of net realized capital gains (losses) for any particular period is not indicative of the performance of the underlying business in that particular period.  Providing only a GAAP presentation of net income (loss) makes it more difficult for users of the financial information to evaluate the Company's success or failure in its basic business, and may lead to incorrect or misleading assumptions and conclusions.  The Company understands that the equity analysts who follow the Company focus on after-tax operating income (loss) in their analyses for the reasons discussed above.  The Company provides after-tax operating income (loss) to investors so that they have what management believes to be a useful supplement to GAAP information concerning the Company's performance.

--Financial Details Follow--

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EVEREST RE GROUP, LTD.
CONSOLIDATED BALANCE SHEETS
		September 30,				December 31,
(Dollars and share amounts in thousands, except par value per share)		2016				2015
		(unaudited)
ASSETS:
Fixed maturities - available for sale, at market value		$	14,266,113			$	13,357,294
(amortized cost: 2016, $13,853,790; 2015, $13,276,206)
Fixed maturities - available for sale, at fair value			3,982				2,102
Equity securities - available for sale, at market value (cost: 2016, $126,729; 2015, $122,271)			123,296				108,940
Equity securities - available for sale, at fair value			1,090,734				1,337,733
Short-term investments			314,494				799,684
Other invested assets (cost: 2016, $1,305,174; 2015, $786,994)			1,305,174				786,994
Cash			435,795				283,658
Total investments and cash			17,539,588				16,676,405
Accrued investment income			101,011				100,942
Premiums receivable			1,667,002				1,483,090
Reinsurance receivables			965,427				894,037
Funds held by reinsureds			241,983				278,673
Deferred acquisition costs			349,317				372,351
Prepaid reinsurance premiums			232,919				164,971
Income taxes			169,867				258,541
Other assets			395,968				316,408
TOTAL ASSETS		$	21,663,082			$	20,545,418
LIABILITIES:
Reserve for losses and loss adjustment expenses		$	10,375,470			$	9,951,798
Future policy benefit reserve			56,998				58,910
Unearned premium reserve			1,702,390				1,613,390
Funds held under reinsurance treaties			23,567				13,544
Commission reserves			93,733				60,098
Other net payable to reinsurers			262,662				173,087
Losses in course of payment			121,082				112,170
4.868% Senior notes due 6/1/2044			396,684				396,594
6.6% Long term notes due 5/1/2067			236,438				236,364
Accrued interest on debt and borrowings			12,341				3,537
Equity index put option liability			35,219				40,705
Unsettled securities payable			76,813				15,314
Other liabilities			228,593				261,322
Total liabilities			13,621,990				12,936,833
SHAREHOLDERS' EQUITY:
Preferred shares, par value: $0.01; 50,000 shares authorized;
no shares issued and outstanding			-				-
Common shares, par value: $0.01; 200,000 shares authorized; (2016) 68,822
and (2015) 68,606 outstanding before treasury shares			688				686
Additional paid-in capital			2,129,311				2,103,638
Accumulated other comprehensive income (loss), net of deferred income tax expense
(benefit) of $56,361 at 2016 and ($15,863) at 2015			75,830				(231,755	)
Treasury shares, at cost; 27,935 shares (2016) and 25,912 shares (2015)			(3,265,184	)			(2,885,956	)
Retained earnings			9,100,447				8,621,972
Total shareholders' equity			8,041,092				7,608,585
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	21,663,082			$	20,545,418

EVEREST RE GROUP, LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
		Nine Months Ended
		September 30,
(Dollars in thousands)		2016				2015
		(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)		$	622,772			$	620,588
Adjustments to reconcile net income to net cash provided by operating activities:
Decrease (increase) in premiums receivable			(185,559	)			(278,433	)
Decrease (increase) in funds held by reinsureds, net			46,134				(41,745	)
Decrease (increase) in reinsurance receivables			(87,807	)			(232,472	)
Decrease (increase) in income taxes			15,935				(61,627	)
Decrease (increase) in prepaid reinsurance premiums			(66,147	)			(67,406	)
Increase (decrease) in reserve for losses and loss adjustment expenses			470,560				347,729
Increase (decrease) in future policy benefit reserve			(1,912	)			(240	)
Increase (decrease) in unearned premiums			89,013				1,455
Increase (decrease) in other net payable to reinsurers			85,493				70,103
Increase (decrease) in losses in course of payment			7,673				142,418
Change in equity adjustments in limited partnerships			(33,289	)			(12,725	)
Distribution of limited partnership income			52,913				42,625
Change in other assets and liabilities, net			(164,782	)			21,994
Non-cash compensation expense			20,359				16,150
Amortization of bond premium (accrual of bond discount)			38,151				38,770
Amortization of underwriting discount on senior notes			3				3
Net realized capital (gains) losses			41,221				194,654
Net cash provided by (used in) operating activities			950,731				801,841
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from fixed maturities matured/called - available for sale, at market value			1,439,002				1,687,589
Proceeds from fixed maturities sold - available for sale, at market value			888,761				1,146,000
Proceeds from fixed maturities sold - available for sale, at fair value			1,588				1,824
Proceeds from equity securities sold - available for sale, at market value			155				22,120
Proceeds from equity securities sold - available for sale, at fair value			542,560				439,692
Distributions from other invested assets			3,600,587				41,782
Proceeds from sale of subsidiary (net of cash disposed)			47,721				3,934
Cost of fixed maturities acquired - available for sale, at market value			(2,974,792	)			(3,583,990	)
Cost of fixed maturities acquired - available for sale, at fair value			(3,940	)			(234	)
Cost of equity securities acquired - available for sale, at market value			(4,194	)			(6,581	)
Cost of equity securities acquired - available for sale, at fair value			(269,544	)			(460,965	)
Cost of other invested assets acquired			(4,131,419	)			(140,923	)
Net change in short-term investments			488,047				498,902
Net change in unsettled securities transactions			44,494				(18,242	)
Net cash provided by (used in) investing activities			(330,974	)			(369,092	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Common shares issued during the period, net			5,315				9,896
Purchase of treasury shares			(379,228	)			(324,981	)
Dividends paid to shareholders			(144,297	)			(125,905	)
Net cash provided by (used in) financing activities			(518,210	)			(440,990	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH			50,590				(28,007	)
Net increase (decrease) in cash			152,137				(36,248	)
Cash, beginning of period			283,658				437,474
Cash, end of period		$	435,795			$	401,226
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid (recovered)		$	40,072			$	123,234
Interest paid			18,227				18,039