THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Everest Re Group, Ltd. (RE)

4/12/2006 Proxy Information

One of the Company’s Non-Employee Directors, William F. Galtney, Jr., was the President of Gallagher Healthcare Insurance Services, Inc. (“GHIS”), a wholly-owned subsidiary of Arthur J. Gallagher & Co. (“Gallagher”) until December 31, 2004. Thereafter, Mr. Galtney continued as Chairman of GHIS until March 31, 2005. Effective April 1, 2005, Mr. Galtney became Chairman of Oxford Insurance Services Limited (“Oxford”), a company 99% owned directly by Mr. Galtney. In addition, Mr. Galtney owns shares in Gallagher representing less than a 1% interest. In 2005, Everest Re paid brokerage commissions to Gallagher of $4,169,756. Brokerage commissions payable to Gallagher as of December 31, 2005 total $334,581.

In 2002, GHIS entered into Program Administrator Agreements with Everest National and with Mt. McKinley Managers as underwriting manager for Everest Indemnity (the “Everest Companies”). Under these agreements, policies placed by GHIS with the Everest Companies are generally reinsured under an 82% quota share treaty by Transatlantic Reinsurance Company, which then reinsures up to 100% of the assumed risk with Sunrise Professional Indemnity, Ltd., a Cayman reinsurance company owned by WFG Interests, LLC, which is owned by Mr. Galtney. Under these agreements, in 2005, the Everest Companies recorded $12,292,807 in gross written premiums and paid fees to GHIS totalling $2,456,888. Effective April 1, 2005, the GHIS agreements were terminated and the Everest Companies began negotiating new agreements with Oxford. Under these new agreements with Oxford in 2005, the Everest Companies recorded $48,797,255 in gross written premiums with related commissions and fees of $3,997,711, of which $2,376,918 was paid in 2005. GHIS has also entered into a service agreement with Oxford pursuant to which Oxford provides certain underwriting services to GHIS under its agreements with the Everest Companies. Under this agreement, the Company recorded an additional $1,738,717 in commissions to GHIS from Oxford, of which $1,267,036 was paid in 2005. Gross written premiums and related commissions and fees attributable to these agreements for 2006 are estimated to be $48.6 million and $4.2 million, respectively. GHIS, through its Western Litigation Specialists division (“WLS”), provides claims services for medical malpractice policies issued under both the GHIS and Oxford agreements. Total fees paid to WLS in 2005 were $515,882. Estimated fees for 2006 are $555,000.

GHIS was the producing agent for workers’ compensation, general liability and automobile risks written by the Everest Companies for Rural/Metro Corporation (“Rural Metro”). The workers’ compensation component of the program did not renew in May 2004. In 2005, the Company recorded $127,994 in written premiums in connection with this program and paid related commissions to GHIS of $1,175. Furthermore, the Company recorded an additional $187,500 in related Rural Metro commissions to GHIS from Oxford under their new respective service agreement, of which $140,625 was paid in 2005. Under the Oxford agreements with the Everest Companies, the Company recorded $3,845,000 in written premium with related commissions to Oxford of $125,000, of which $93,750 was paid in 2005. Estimated premium and commissions for the 2006 renewals of such policies, if written, are $3,845,000 and $125,000, respectively. If such policies are written in 2006, it is anticipated that the policies would be written through Oxford as producing agent.

GHIS also was the producing agent for workers’ compensation, general liability/professional liability and automobile risks written by the Everest Companies for San Diego Medical Services Enterprise, LLC (“SDMS”). SDMS is a joint venture between Rural/Metro and the City of San Diego. In 2005, the written premium for SDMS was $96,834 with related commissions paid to GHIS of $9,683. The account did not renew in 2005.

Gallagher Bassett Services, Inc. (“Gallagher Bassett”), a Gallagher affiliate, provides claims services for the Rural Metro program mentioned above, for Everest Indemnity’s All Risks, Ltd. Program, for Everest National’s Risk Services, LLC program and for Everest National’s Tangram Program Managers. Mr. Galtney does not have any affiliation with All Risks, Ltd., with Risk Services, LLC or with Tangram Program Managers. In 2005, the Company paid fees to Gallagher Bassett of $1,347,346. Estimated fees for 2006 are $2,357,132.

Everest Indemnity, through Mt. McKinley Managers, wrote a surplus lines medical malpractice book of business in Arizona known as APIC through SKANCO, a surplus lines producer affiliate of Gallagher. Gross written premium for 2005 under these agreements was $2,455,667 with related commissions of $61,392. Estimated premium and commissions for 2006 are $2,542,500 and $63,562 respectively.

Beginning in late 2003 and terminating in late 2004, Everest Indemnity, through Mt. McKinley Managers, wrote a California construction liability program on a surplus lines basis through Cromwell Management Corporation. J.P. Woods Co., Inc., a Gallagher affiliate, receives a brokerage fee equal to 1.0% of the gross written premium for the first $1 million of limits on policies written. For 2005, the resulting brokerage fees paid to J.P. Woods Co., Inc. was $210,406. There are no payables due in 2006.

Everest National had a business relationship with WorkCare Northwest, Inc. (“WorkCare Northwest”), a company which is fully owned by Gallagher. Edward B. Galtney, William Galtney’s brother, serves as Area President of WorkCare Northwest. In 2005, Everest National paid commissions in the amount of $1,023 to WorkCare Northwest for insurance agency services as a program administrator. This program was cancelled as of July 1, 2001 and is currently in run-off. It is expected that no commissions will be paid to WorkCare Northwest in the future.

In addition to the above, Everest National’s Western Regional Office does business with several Gallagher-affiliated Custom Accounts. Under these accounts in 2005, the Everest Companies recorded $7,892,913 in gross written premiums with related commissions and fees paid to these agents of $622,030.

4/14/2005 Proxy Information

One of the Company’s Non-Employee Directors, William F. Galtney, Jr., was the President of Gallagher Healthcare Insurance Services, Inc. (“GHIS”), a wholly-owned subsidiary of Arthur J. Gallagher & Co. (“Gallagher”) until December 31, 2004. Thereafter, Mr. Galtney continued as Chairman of GHIS until March 31, 2005. Effective April 1, 2005, Mr. Galtney became Chairman of Oxford Insurance Services Limited (“Oxford”), a company 99% owned directly by Mr. Galtney. In addition, Mr. Galtney owns shares in Gallagher representing less than a 1% interest. In 2004, Everest Re paid brokerage commissions to Gallagher of $2,556,173. Currently, brokerage payable to Gallagher is $531,233.

In 2002, GHIS entered into Program Administrator Agreements with Everest National and with Mt. McKinley Managers as underwriting manager for Everest Indemnity (the “Everest Companies”). Under these agreements, policies placed by GHIS with the Everest Companies are generally reinsured under an 82% quota share treaty by Transatlantic Reinsurance Company, which then reinsures up to 100% of the assumed risk with Sunrise Professional Indemnity, Ltd., a Cayman reinsurance company owned by WFG Interests, LLC, which is owned by Mr. Galtney. Under these agreements, in 2004, the Everest Companies recorded $67,920,869 in gross written premiums and related commissions and fees of $6,274,820 to GHIS, of which $5,081,710 was paid in 2004. Effective April 1, 2005, the GHIS agreements were terminated and the Everest Companies began negotiating new agreements with Mr. Galtney. GHIS has also entered into a service agreement with Oxford pursuant to which Oxford provides certain underwriting services related to GHIS under its agreements with the Everest Companies. It is anticipated that the estimated gross written premiums and related commissions and fees for 2005 for both the GHIS and Oxford agreements with the Everest Companies are approximately $53.3 million and $4.3 million, respectively. GHIS, through its Western Litigation Specialists division, provides claims services for medical malpractice policies issued under both the GHIS and Oxford agreements.

GHIS was the producing agent for workers’ compensation, general liability and automobile risks written by the Everest Companies for Rural/Metro Corporation (“Rural Metro”). The workers’ compensation component of the program did not renew in May 2004. In 2004, the Company recorded $8,641,315 in written premiums in connection with this program and paid related commissions to GHIS of $796,018, of which $575,611 was paid in 2004. Estimated premium and commissions for the 2005 renewals of such policies, if written, are $9.7 million and $.8 million, respectively. If such policies are written in 2005, it is anticipated that the policies would be written through Oxford as producing agent.

GHIS also was the producing agent for workers’ compensation, general liability/professional liability and automobile risks written by the Everest Companies for San Diego Medical Services Enterprise, LLC (“SDMS”). SDMS is a joint venture between Rural/Metro and the City of San Diego. In 2004, the written premium for SDMS was $1,346,069 with related commissions paid to GHIS of $134,607. Estimated premium and commissions for the 2005 renewals of such policies, if written, are $1.3 million and $134,607, respectively. If such policies are written in 2005, it is anticipated that the policies would be written through Oxford as producing agent.

Gallagher Bassett Services, Inc. (“Gallagher Bassett”), a Gallagher affiliate, provides claims services for the Rural Metro program mentioned above, for Everest Indemnity’s All Risks, Ltd. Program and for Everest National’s Risk Services, LLC program. Mr. Galtney does not have any affiliation with All Risks, Ltd or with Risk Services, LLC. In 2004, the Company paid fees to Gallagher Bassett of $862,786 net of audit refunds for prior year’s services of $164,893. Estimated fees for 2005 are $2,559,272.

In 2004, Everest Indemnity, through Mt. McKinley Managers, wrote a surplus lines medical malpractice book of business in Arizona known as APIC through SKANCO, a surplus lines producer affiliate of Gallagher. Under these agreements in 2004, written premium was $2,171,827 with related commissions of $54,295. Estimated premium and commissions for 2005 are $2.0 million and $50,000, respectively.

Beginning in late 2003 and terminating in late 2004, Everest Indemnity, through Mt. McKinley Managers, wrote a California construction liability program on a surplus lines basis through Cromwell Management Corporation. J.P. Woods Co., Inc., a Gallagher affiliate, receives a brokerage fee equal to 1.0% of the gross written premium for the first $1 million of limits on policies written. For 2005, the estimated premium for the first $1 million in limits is $25,336,091, and the resulting estimated brokerage due to J.P. Woods Co., Inc. is $828,431.

Everest National had a business relationship with WorkCare Northwest, Inc. (“WorkCare Northwest”), a company of which Edward B. Galtney, William Galtney’s brother, is a majority owner. In 2004, Everest National paid commissions in the amount of $0 to WorkCare Northwest for insurance agency services as a program administrator. This program was cancelled as of July 1, 2001 and is currently in run-off. It is expected that no commissions will be paid to WorkCare Northwest in the future.

4/9/2004 Proxy Information

One of the Company’s Non-Employee Directors, William F. Galtney, Jr., is the President of Gallagher Healthcare Insurance Services, Inc. (“GHIS”), a wholly-owned subsidiary of Arthur J. Gallagher & Co. (“Gallagher”). In addition, Mr. Galtney owns shares in Gallagher representing less than a 1% interest. In 2003, Everest Re paid brokerage commissions to Gallagher of $4,002,474. Currently, brokerage payable to Gallagher is $194,136.

In 2002, GHIS entered into Program Administrator Agreements with Everest National and with Mt. McKinley Managers as underwriting manager for Everest Indemnity (the “Everest Companies”). Under these agreements, policies placed by GHIS with the Everest Companies are generally reinsured by Transatlantic Reinsurance Company, which then reinsures up to 100% of the assumed risk with Sunrise Professional Indemnity, Ltd., a Cayman reinsurance company owned by WFG Interests, LLC, which is owned by Mr. Galtney. Under these agreements, in 2003, the Everest Companies recorded $94,807,957 in gross written premiums and related commissions and fees of $7,090,651 to GHIS, of which $6,859,085 was paid in 2003. Estimated gross written premiums and related commissions and fees for 2004 are approximately $119.2 million and $13.3 million, respectively. GHIS, through its Western Litigation Specialists division, provides claims services for medical malpractice policies issued under the agreements.

GHIS was the producing agent for workers’ compensation, general liability and automobile risks written by the Everest Companies for Rural/Metro Corporation (“Rural Metro”). In 2003, the Company recorded $22,747,440 in written premiums in connection with this program and related commissions to GHIS of $1,096,000, of which $697,613 was paid in 2003. Estimated premium and commissions for the 2004 renewals of such policies, if written, are $22.8 million and $1.1 million, respectively.

GHIS also was the producing agent for workers’ compensation, general liability/professional liability and automobile risks written by the Everest Companies for San Diego Medical Services Enterprise, LLC (“SDMS”). SDMS is a joint venture between Rural/Metro and the City of San Diego. In 2003, the written premium for SDMS was $1,548,857 with related commissions paid to GHIS of $154,886. Estimated premium and commissions for the 2004 renewals of such policies, if written, are $1.6 million and $155,000, respectively.

Gallagher Bassett Services, Inc. (“Gallagher Bassett”), a Gallagher affiliate, provides claims services for the Rural Metro program mentioned above and for Everest Indemnity’s All Risks, Ltd. program. Mr. Galtney does not have any affiliation with All Risks, Ltd. In 2003, the Company paid fees to Gallagher Bassett of $715,279. Estimated fees for 2004 are $1,232,000.

In 2004, Everest Indemnity, through Mt. McKinley Managers, will write a surplus lines medical malpractice book of business in Arizona known as APIC through Risk Placement Services (f/k/a SKANCO), a surplus lines producer affiliate of Gallagher. Estimated premium and commissions for 2004 are $2.0 million and $51,000, respectively.

Beginning in late 2003 and continuing during 2004, Everest Indemnity, through Mt. McKinley Managers, will write a California construction liability program on a surplus lines basis through Cromwell Management Corporation. J.P. Woods Co., Inc., a Gallagher affiliate, receives a brokerage fee equal to 1.0% of the gross written premium for the first $1 million of limits on policies written. For 2004, the estimated premium is $30 million, and the resulting estimated brokerage due to J.P. Woods Co., Inc. is $300,000.

Everest National had a business relationship with WorkCare Northwest, Inc. (“WorkCare Northwest”), a company of which Edward B. Galtney, William Galtney’s brother, is a majority owner. In 2003, Everest National paid commissions in the amount of $71,508 to WorkCare Northwest for insurance agency services as a program administrator. This program was cancelled as of July 1, 2001 and is currently in run-off. It is expected that no material commissions will be paid to WorkCare Northwest in 2004.

4/10/2003 Proxy Information

One of the Company's directors, William F. Galtney, Jr., is the President of Gallagher Healthcare Insurance Services, Inc. ("GHIS"), a wholly-owned subsidiary of Arthur J. Gallagher & Co. ("Gallagher"). In 2002, Everest Re paid brokerage commissions to Gallagher of $1,181,870.

In 2002, GHIS entered into Program Administrator Agreements with Everest National and Mt. McKinley Managers ("the Everest Companies") as underwriting manager for Everest Indemnity. Under these agreements, policies are placed by GHIS with the Everest Companies and reinsured by Transatlantic Reinsurance Company, which then reinsures up to 100% of the assumed risk with Sunrise Professional Indemnity, Ltd., a Cayman reinsurance company owned by WFG Interests, LLC, which is owned by Mr. Galtney. Under these agreements, in 2002, the Company recorded $85,483,571 in gross written premiums and paid related commissions and fees of $6,795,528 to GHIS.

GHIS was the producing agent for workers' compensation, general liability and automobile risks written by the Everest Companies for the Rural/Metro Corporation. In 2002, the Company recorded $19,764,672 in gross written premiums in connection with this program and paid related commissions to GHIS of $932,545.

Gallagher Bassett Services, Inc. ("Gallagher Bassett"), a Gallagher affiliate, provides claims services for the Rural Metro program mentioned above and for Everest Indemnity's All Risks program. In 2002, the Company paid fees to Gallagher Basset of $434,268.

In 2003, Everest Indemnity, through Mt. McKinley Managers, expects to write a liability program for which J.P. Woods Co., Inc., a Gallagher affiliate, will receive an estimated brokerage fee of $900,000.

Everest National had a business relationship with WorkCare Northwest, Inc. ("WorkCare Northwest"), a company in which Edward B. Galtney, William Galtney's brother, holds a 50% interest. In 2002, Everest National paid commissions in the amount of $828,720 to WorkCare Northwest for insurance agency services as a program administrator. This program was cancelled as of July 1, 2001 and is currently in run-off. It is expected that no material commissions will be paid to WorkCare Northwest in 2003.