SECURITIES AND EXCHANGE COMMISSION

                             Washington, D. C. 20549

                                   FORM 10-Q/A

                   QUARTERLY REPORT UNDER SECTION 13 or 15(d)

                     OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarter ended:                                   Commission File Number:
 SEPTEMBER 30, 2002                                              1-13816
---------------------                                    -----------------------

                       EVEREST REINSURANCE HOLDINGS, INC.
             ------------------------------------------------------
             (Exact name of Registrant as specified in its charter)


       DELAWARE                                            22-3263609
------------------------                            ----------------------------
(State or other juris-                              (IRS Employer Identification
diction of incorporation                               Number)
    or organization)

                              477 MARTINSVILLE ROAD
                               POST OFFICE BOX 830
                      LIBERTY CORNER, NEW JERSEY 07938-0830
                                 (908) 604-3000
         (Address, including zip code, and telephone number, including
             area code, of registrant's principal executive office)

--------------------------------------------------------------------------------
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to the filing
requirements for at least the past 90 days.

                       YES    X                  NO
                           -------                  -------

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date:

                                                    Number of Shares Outstanding
                Class                                    at November 5, 2002
                -----                               ----------------------------

COMMON STOCK,      $.01 PAR VALUE                              1,000


The registrant meets the conditions set forth in General Instruction H(1)(a) and
(b) of Form 10-Q and is therefore  filing this form with the reduced  disclosure
format permitted by General Instruction H of Form 10-Q.



                       EVEREST REINSURANCE HOLDINGS, INC.

                               INDEX TO FORM 10-Q/A

                                     PART I

                              FINANCIAL INFORMATION

                                                                            PAGE
                                                                            ----

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS
         ------------------------------------
         OF FINANCIAL CONDITION AND RESULTS OF OPERATION                       1
         -----------------------------------------------


                                     PART II

                                OTHER INFORMATION
                                -----------------


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K                                     12
         --------------------------------

PART I - ITEM 2


                       EVEREST REINSURANCE HOLDINGS, INC.
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS


RESULTS OF OPERATIONS

INDUSTRY CONDITIONS

The worldwide  reinsurance and insurance  businesses are highly  competitive yet
cyclical by product and market.  The  terrorist  attacks on  September  11, 2001
resulted  in losses  which  reduced  industry  capacity  and were of  sufficient
magnitude to cause most individual companies to reassess their capital position,
tolerance  for risk,  exposure  control  mechanisms  and the  pricing  terms and
conditions  at which they are willing to take on risk.  The gradual and variable
improving  trend that had been apparent  through 2000 and earlier in 2001 firmed
significantly. This firming generally took the form of immediate and significant
upward pressure on prices, more restrictive terms and conditions and a reduction
of coverage  limits and capacity  availability.  Such pressures were  widespread
with  variability  depending  on the product and  markets  involved,  but mainly
depending on the characteristics of the underlying risk exposures. The magnitude
of the changes was sufficient to create temporary disequilibrium in some markets
as individual  buyers and sellers  adapted to changes in both their internal and
market dynamics.

Thus far in 2002, our markets, and reinsurance and insurance markets in general,
have continued to firm.  This firming  reflects the continuing  implications  of
losses  arising  from the  September  11  attacks as well as  aggregate  company
reactions to broad and growing  recognition  that competition in the late 1990's
reached extremes in many classes and markets, which ultimately led to inadequate
pricing and overly broad terms,  conditions and  coverages.  The effect of these
extremes,  which is only now becoming apparent through excessive loss emergence,
varies  widely by company  depending  on product  offerings,  markets  accessed,
underwriting  and  operating  practices,  competitive  strategies  and  business
volumes. Across all market participants,  however, the aggregate effect has been
impaired  financial  results and erosion of the industry  capital base.  Coupled
with  deteriorating  investment  market  conditions  and  results,  and  renewed
concerns  regarding  longer term industry  specific issues,  including  asbestos
exposure and sub-par capital  returns,  these financial  impacts have introduced
substantial,  and in some cases  extreme,  pressure  for the  initiation  and/or
strengthening  of corrective  action by individual  market  participants.  These
pressures,  aggregating across industry  participants,  have resulted in firming
prices,  terms and conditions and tightened  coverage  availability  across most
classes and markets.

These  changes  reflect a clear  reversal of the general trend from 1987 through
1999 toward increasingly  competitive global market conditions across most lines
of business as reflected by decreasing prices and broadening contract terms. The
earlier  trend  resulted  from a number of factors,  including  the emergence of
significant  reinsurance  capacity  in  Bermuda,  changes in the Lloyds  market,
consolidation  and increased  capital  levels in the  insurance and  reinsurance
industries,  as well as the emergence of new reinsurance and financial  products
addressing traditional exposures in alternative fashions.  Many of these factors
continue  to exist and may take on  additional  importance  as the result of the
firming  conditions  which have  emerged.  As a result,  although the Company is


                                        1

encouraged  by the  recent  improvements,  and more  generally,  current  market
conditions, the Company cannot predict with any reasonable certainty whether and
to what extent these improvements will persist.

SEGMENT INFORMATION

The  Company,  through  its  subsidiaries,   operates  in  four  segments:  U.S.
Reinsurance,   U.S.   Insurance,   Specialty   Reinsurance   and   International
Reinsurance.  The U.S. Reinsurance operation writes property and casualty treaty
reinsurance  through  reinsurance  brokers  as  well  as  directly  with  ceding
companies  within the United  States,  in addition  to  property,  casualty  and
specialty  facultative  reinsurance  through  brokers and  directly  with ceding
companies within the United States. The U.S. Insurance operation writes property
and casualty insurance primarily through general agent relationships and surplus
lines brokers  within the United  States.  The Specialty  Reinsurance  operation
writes  accident and health,  marine,  aviation and surety  business  within the
United States and worldwide  through brokers and directly with ceding companies.
The International Reinsurance operation writes property and casualty reinsurance
through the Company's branches in London, Canada, and Singapore,  in addition to
foreign "home-office" business.

These  segments  are  managed in a  carefully  coordinated  fashion  with strong
elements of central control, including with respect to capital,  investments and
support operations. As a result, management monitors and evaluates the financial
performance  of  these   operating   segments   principally   based  upon  their
underwriting results. The Company utilizes inter-affiliate  reinsurance and such
reinsurance  does not impact segment results as business is reported in the unit
responsible for the business as initially written with third parties,  generally
within the segment in which the business was first produced.


THREE MONTHS ENDED  SEPTEMBER 30, 2002 COMPARED TO THREE MONTHS ENDED  SEPTEMBER
30, 2001

PREMIUMS.  Gross premiums written increased 42.6% to $693.5 million in the three
months ended  September  30, 2002 from $486.3  million in the three months ended
September   30,  2001  as  the  Company  took   advantage  of  selected   growth
opportunities, while continuing to maintain a disciplined underwriting approach.
Premium  growth areas  included a 65.2%  ($100.2  million)  increase in the U.S.
Reinsurance  operation  principally  attributable  to growth across property and
casualty  lines,  a  60.4%  ($50.3  million)   increase  in  the   International
Reinsurance  operation,  mainly attributable to growth in the London, Canada and
Latin  American  markets  and a  41.6%  ($57.7  million)  increase  in the  U.S.
Insurance operation, principally attributable to growth in workers' compensation
insurance.  These  increases  were  partially  offset by a 0.9%  ($1.0  million)
decrease  in the  Specialty  Reinsurance  operation.  The Company  continued  to
decline  business  that  did not  meet  its  objectives  regarding  underwriting
profitability.

Ceded premiums  increased to $169.9 million in the three months ended  September
30, 2002 from $123.1 million in the three months ended  September 30, 2001. This
increase  was  principally  attributable  to $100.2  million  of ceded  premiums
relating to a Quota Share  Reinsurance  Agreement between Everest Re and Bermuda
Re,  whereby  Everest Re cedes 20% of its net retained  liability on all new and
renewal  policies  written during the term of this  agreement,  and an Excess of
Loss  Agreement  between  Everest Re,  Everest  National  Insurance  Company and
Everest  Security  Insurance  Company and Bermuda Re, whereby Bermuda Re assumes


                                        2

liability for primary insurance workers'  compensation losses exceeding $100,000
per occurrence, with its liability not to exceed $150,000 per occurrence.  Ceded
premiums for the three months ended September 30, 2002 included $4.5 million and
$11.9 million in adjustment  premiums relating to claims made under the 2001 and
2000 accident year aggregate excess of loss elements of the Company's  corporate
retrocessional program, respectively.  Ceded premiums for the three months ended
September  30,  2001  included  $59.9  million and $10.9  million in  adjustment
premiums relating to claims made under the 2001 and 1999 accident year aggregate
excess of loss  elements  of the  Company's  corporate  retrocessional  program,
respectively,  with the 2001 accident year cessions  relating to losses incurred
as a result of the September 11 attacks.

Net premiums  written  increased by 44.2% to $523.6  million in the three months
ended September 30, 2002 from $363.2 million in the three months ended September
30,  2001.  This  increase  reflects  the  increase in gross  premiums  written,
partially offset by the increase in ceded premiums.

PREMIUM  REVENUES.  Net premiums earned  increased by 33.0% to $456.4 million in
the three  months  ended  September  30, 2002 from  $343.0  million in the three
months ended  September  30,  2001.  Contributing  to this  increase was a 69.2%
($63.0  million)  increase in the U.S.  Reinsurance  operation,  a 43.9%  ($28.9
million) increase in the International  Reinsurance operation and a 42.8% ($35.5
million)  increase  in  the  U.S.  Insurance  operation.  These  increases  were
partially  offset  by  a  13.6%  ($14.0  million)   decrease  in  the  Specialty
Reinsurance operation.  All of these changes reflect period to period changes in
net written  premiums  and  business mix  together  with normal  variability  in
earnings  patterns.  Business mix changes  occur not only as the Company  shifts
emphasis between products, lines of business,  distribution channels and markets
but also as individual contracts renew or non-renew,  almost always with changes
in coverage,  structure,  prices and/or terms, and as new contracts are accepted
with coverages, structures, prices and/or terms different from those of expiring
contracts.   As  premium   reporting  and  earnings  and  loss  and   commission
characteristics  derive  from  the  provisions  of  individual  contracts,   the
continuous turnover of individual contracts,  arising from both strategic shifts
and day to day  underwriting,  can and  does  introduce  appreciable  background
variability in various underwriting line items.

EXPENSES.  Incurred loss and loss adjustment  expenses ("LAE") decreased by 8.3%
to $328.8  million in the three  months  ended  September  30,  2002 from $358.5
million in the three months ended  September 30, 2001.  The decrease in incurred
losses and LAE was  principally  attributable  to the  decrease  in  catastrophe
losses,  partially  offset  by the  increase  in net  premiums  earned  and also
reflects the impact of changes in the Company's mix of business. Incurred losses
and LAE include  catastrophe  losses,  which  include the impact of both current
period events and favorable and unfavorable  development on prior period events,
and are net of reinsurance. A catastrophe is an event that causes a pre-tax loss
on property  exposures of at least $5.0 million and has an event date of January
1, 1988 or later.  Catastrophe  losses,  net of contract  specific  cessions but
before cessions under the corporate  retrocessional  program, were $10.2 million
in the three months ended September 30, 2002,  principally  relating to European
flood losses,  compared to net catastrophe losses of $192.8 million in the three
months ended September 30, 2001, which was principally  related to the September
11 attacks.  Incurred  losses and LAE for the three months ended  September  30,
2002 reflected  ceded losses and LAE of $130.4 million  compared to ceded losses
and LAE in the three months ended  September 30, 2001 of $227.8  million.  Ceded
losses and LAE in the three  months  ended  September  30,  2002  include  $55.6
million of ceded losses relating to the reinsurance  transactions  noted earlier
between  the  Company  and  Bermuda  Re. The ceded  losses and LAE for the three
months ended  September  30, 2002  included  $9.6  million and $22.0  million of


                                        3

losses  ceded under the 2001 and 2000  accident  year  aggregate  excess of loss
component of the Company's corporate retrocessional program,  respectively.  The
ceded  losses and LAE for the three  months ended  September  30, 2001  included
$130.0  million  and  $20.0  million  of  losses  ceded  under the 2001 and 1999
accident year  aggregate  excess of loss  component of the  Company's  corporate
retrocessional  program,  respectively,  with the 2001  accident  year  cessions
relating to losses incurred as a result of the September 11 attacks.

Contributing  to the  decrease  in incurred  losses and LAE in the three  months
ended  September 30, 2002 from the three months ended  September 30, 2001 were a
32.8% ($55.2 million)  decrease in the U.S.  Reinsurance  operation  principally
reflecting decreased  catastrophe losses,  partially offset by increased premium
volume  and a  20.6%  ($18.5  million)  decrease  in the  Specialty  Reinsurance
operation principally  attributable to decreased  catastrophe losses,  partially
offset  by  increased  premium  volume in A&H  business.  These  decreases  were
partially  offset by a 49.0%  ($28.8  million)  increase  in the U.S.  Insurance
operation and a 37.1% ($15.2 million) increase in the  International  operation;
both increases principally reflect increased premium volume. Incurred losses and
LAE for each operation were also impacted by variability  relating to changes in
the level of premium volume and mix of business by class and type.

The Company's loss and LAE ratio ("loss ratio"), which is calculated by dividing
incurred losses and LAE by premiums earned,  decreased by 32.4 percentage points
to 72.1% in the three months ended  September  30, 2002 from 104.5% in the three
months ended September 30, 2001 reflecting the incurred losses and LAE discussed
above.  The  following  table  shows the loss  ratios for each of the  Company's
operating  segments for the three months ended  September 30, 2002 and 2001. The
loss ratios for all operations were impacted by the factors noted above.



                                      Operating Segment Loss Ratios
----------------------------------------------------------------------------------------
     Segment                                     2002                               2001
----------------------------------------------------------------------------------------
                                                                             
U.S. Reinsurance                                 73.6%                             185.2%
U.S. Insurance                                   74.2%                              71.1%
Specialty Reinsurance                            80.1%                              87.2%
International Reinsurance                        59.4%                              62.3%


Underwriting  expenses  increased by 0.3% to $124.5  million in the three months
ended September 30, 2002 from $124.1 million in the three months ended September
30, 2001.  Commission,  brokerage,  taxes and fees  decreased  by $1.6  million,
principally  reflecting  $18.2  million  of ceded  commissions  relating  to the
reinsurance  transactions  noted  earlier  between  the  Company and Bermuda Re,
partially  offset by  increases  in  premium  volume  and  changes in the mix of
business.  Other underwriting  expenses increased by $1.9 million as the Company
expanded its operations to support its increased  business volume.  Contributing
to these underwriting expense increases were a 55.2% ($13.1 million) increase in
the  U.S.  Insurance  operation  and a  2.7%  ($0.6  million)  increase  in  the
International operation.  These increases were partially offset by a 20.0% ($9.3
million) decrease in the U.S.  Reinsurance  operation and a 17.2% ($5.2 million)
decrease  in  the  Specialty  Reinsurance   operation.   The  changes  for  each
operation's  expenses  principally  resulted from changes in commission expenses
related to changes in premium  volume and business mix by class and type and, in
some cases,  changes in the use of  reinsurance,  including with Bermuda Re, and
the underwriting  performance of the underlying business.  The Company's expense
ratio, which is calculated by dividing underwriting expenses by premiums earned,
was 27.3% for the three months ended  September  30, 2002  compared to 36.2% for
the three months ended September 30, 2001.


                                        4

The Company's  combined ratio,  which is the sum of the loss and expense ratios,
decreased by 41.4 percentage points to 99.3% in the three months ended September
30, 2002 compared to 140.7% in the three months ended  September  30, 2001.  The
following  table shows the combined  ratios for each of the Company's  operating
segments for the three months ended  September  30, 2002 and 2001.  The combined
ratios  for  all  operations  were  impacted  by  the  loss  and  expense  ratio
variability noted above, and for certain operations, by the impact of adjustment
premiums ceded under the accident year  aggregate  excess of loss element of the
Company's retrocessional program, principally relating to losses incurred as the
result of the September 11 attacks.




                                    Operating Segment Combined Ratios
----------------------------------------------------------------------------------------
     Segment                                     2002                               2001
----------------------------------------------------------------------------------------
                                                                             
U.S. Reinsurance                                 97.8%                             236.5%
U.S. Insurance                                  105.2%                              99.6%
Specialty Reinsurance                           108.1%                             116.4%
International Reinsurance                        84.6%                              97.6%


INVESTMENT RESULTS. Net investment income decreased 1.4% to $64.4 million in the
three months  ended  September  30, 2002 from $65.3  million in the three months
ended  September  30,  2001,  principally  reflecting  the  effects of the lower
interest  rate  environment,  partially  offset by the effect of  investing  the
$413.0 million of cash flow from operations in the twelve months ended September
30, 2002. The following table shows a comparison of various investment yields as
of September 30, 2002 and December 31, 2001,  respectively,  and for the periods
ended September 30, 2002 and 2001, respectively.


                                                                           2002               2001
                                                                           -----------------------
                                                                                         
Imbedded pre-tax yield of cash and invested
 assets at September 30, 2002 and December 31, 2001                        5.6%                6.0%
Imbedded after-tax yield of cash and invested
 assets at September 30, 2002 and December 31, 2001                        4.4%                4.6%
Annualized pre-tax yield on average cash and
 invested assets for the three months ended September 30,
 2002 and 2001                                                             5.6%                6.2%
Annualized after-tax yield on average cash and
 invested assets for the three months ended September 30,
 2002 and 2001                                                             4.4%                4.7%


Net realized  capital loss was $7.1 million in the three months ended  September
30, 2002,  reflecting  realized  capital losses on the Company's  investments of
$18.4 million which  included $8.7 million  relating to write-downs in the value
of securities deemed to be impaired on an other than temporary basis,  partially
offset by $11.3  million of realized  capital  gains,  compared to net  realized
capital losses of $1.0 million in the three months ended September 30, 2001. The
net  realized  capital  losses in the three  months  ended  September  30,  2001
reflected  realized capital losses of $4.7 million,  which included $0.0 million
relating to write-downs  in the value of securities  deemed to be impaired on an
other than temporary basis, partially offset by $3.7 million of realized capital
gains.


                                        5

Interest expense for the three months ended September 30, 2002 was $10.7 million
compared  to $11.3  million  for the three  months  ended  September  30,  2001.
Interest  expense for the three months ended  September  30, 2002  reflects $9.7
million  relating to the  Company's  issuance of senior  notes and $1.0  million
relating  to the  Company's  borrowings  under its  revolving  credit  facility.
Interest  expense for the three months ended  September  30, 2001  reflects $9.7
million  relating to the  Company's  issuance of senior  notes and $1.6  million
relating to the Company's borrowings under its revolving credit facility.

Other  income for the three  months  ended  September  30, 2002 was $0.5 million
compared to other  expense of $1.6 million for the three months ended  September
30, 2001.  Significant  contributors  to other income for the three months ended
September 30, 2002 were normal provision for uncollectible  audit premium in the
U.S.  Insurance  operation and the amortization of deferred expenses relating to
the  Company's  issuance of senior  notes in 2000,  partially  offset by foreign
exchange  gains  and fee  income.  Other  expense  for the  three  months  ended
September 30, 2001 principally  included the  amortization of deferred  expenses
relating to the Company's  issuance of senior notes in 2000 and foreign exchange
losses,  partially  offset by fee income.  The foreign exchange gains and losses
for both periods are attributable to fluctuations in foreign  currency  exchange
rates.

The Company has in its product  portfolio a credit default swap contract,  which
it no longer offers.  This contract  meets the definition of a derivative  under
FAS 133. Net derivative expense,  essentially  reflecting changes in fair value,
from this credit default  transaction  for the three months ended  September 30,
2002 was $1.0  million  compared  to $0.0  million  for the three  months  ended
September 30, 2001.

INCOME TAXES. The Company  recognized income tax expense of $14.5 million in the
three months ended September 30, 2002 compared to an income tax benefit of $35.1
million in the three months  ended  September  30, 2001.  The tax benefit in the
three  months  ended  September  30,  2001  resulted  primarily  from the losses
relating to the September 11 attacks, for which the benefit was calculated based
on the specific impacts of the event.

NET INCOME. Net income was $34.8 million in the three months ended September 30,
2002 compared to a net loss of $53.1 million in the three months ended September
30, 2001.  The net loss in the three months ended  September  30, 2001  resulted
primarily from the losses relating to the September 11 attacks.


NINE MONTHS ENDED SEPTEMBER 30, 2002 COMPARED TO NINE MONTHS ENDED SEPTEMBER 30,
2001

PREMIUMS. Gross premiums written increased 37.9% to $1,911.1 million in the nine
months ended  September 30, 2002 from $1,386.1  million in the nine months ended
September   30,  2001  as  the  Company  took   advantage  of  selected   growth
opportunities, while continuing to maintain a disciplined underwriting approach.
Premium  growth areas  included a 58.0%  ($226.4  million)  increase in the U.S.
Insurance operation, principally attributable to growth in workers' compensation
insurance,  a 44.8% ($110.9 million) increase in the  International  Reinsurance
operation,  mainly  attributable  to  growth  in the  London,  Canada  and Latin
American  markets,  a 34.5% ($151.3  million)  increase in the U.S.  Reinsurance
operation primarily  reflecting growth across property and casualty lines and an
11.8%  ($36.5  million)  increase  in  the  Specialty   Reinsurance   operation,


                                        6

principally  attributable to growth in marine and aviation business. The Company
continued  to  decline  business  that  did not meet  its  objectives  regarding
underwriting profitability.

Ceded premiums  increased to $354.0  million in the nine months ended  September
30, 2002 from $221.1 million in the nine months ended  September 30, 2001.  This
increase  was  principally  attributable  to $214.4  million  of ceded  premiums
relating to a Quota Share  Reinsurance  Agreement between Everest Re and Bermuda
Re,  whereby  Everest Re cedes 20% of its net retained  liability on all new and
renewal  policies  written during the term of this  agreement,  and an Excess of
Loss  Agreement  between  Everest Re,  Everest  National  Insurance  Company and
Everest  Security  Insurance  Company and Bermuda Re, whereby Bermuda Re assumes
liability for primary insurance workers'  compensation losses exceeding $100,000
per occurrence, with its liability not to exceed $150,000 per occurrence.  Ceded
premiums for the nine months ended  September 30, 2002 included $5.1 million and
$11.9 million in adjustment  premiums relating to claims made under the 2001 and
2000 accident year aggregate excess of loss elements of the Company's  corporate
retrocessional program,  respectively.  Ceded premiums for the nine months ended
September  30,  2001  included  $59.9  million and $26.3  million in  adjustment
premiums relating to claims made under the 2001 and 1999 accident year aggregate
excess of loss  elements  of the  Company's  corporate  retrocessional  program,
respectively,  with the 2001 accident year cessions  relating to losses incurred
as a result of the September 11 attacks.

Net premiums  written  increased by 33.6% to $1,557.0 million in the nine months
ended  September  30,  2002  from  $1,165.0  million  in the nine  months  ended
September  30, 2001.  This  increase  reflects  the  increase in gross  premiums
written, partially offset by the increase in ceded premiums.

PREMIUM REVENUES.  Net premiums earned increased by 28.8% to $1,366.1 million in
the nine  months  ended  September  30, 2002 from  $1,060.4  million in the nine
months ended  September  30,  2001.  Contributing  to this  increase was a 59.7%
($121.4  million)  increase in the U.S.  Insurance  operation,  a 35.4%  ($120.0
million)  increase in the U.S.  Reinsurance  operation,  a 23.6% ($52.6 million)
increase in the International  Reinsurance  operation and a 4.0% ($11.7 million)
increase in the Specialty  Reinsurance  operation.  All of these changes reflect
period to period changes in net written  premiums and business mix together with
normal variability in earnings patterns.

EXPENSES.  Incurred loss and LAE increased by 8.7% to $967.0 million in the nine
months  ended  September  30, 2002 from $889.5  million in the nine months ended
September  30,  2001.  The increase in incurred  losses and LAE was  principally
attributable to the increase in net premiums earned and lower catastrophe losses
and also  reflects  the  impact of  changes in the  Company's  mix of  business.
Incurred losses and LAE include catastrophe losses,  which include the impact of
both current period events,  and favorable and unfavorable  development on prior
period events and are net of reinsurance.  A catastrophe is an event that causes
a pre-tax  loss on property  exposures of at least $5.0 million and has an event
date of January 1, 1988 or later.  Catastrophe  losses, net of contract specific
cessions but before cessions under the corporate  retrocessional  program,  were
$11.9 million in the nine months ended September 30, 2002,  principally relating
to European flood losses,  compared to net catastrophe  losses of $222.1 million
in the nine months ended September 30, 2001,  which was  principally  related to
the  September  11 attacks.  Incurred  losses and LAE for the nine months  ended
September 30, 2002 reflected ceded losses and LAE of $263.7 million  compared to


                                        7

ceded  losses and LAE in the nine  months  ended  September  30,  2001 of $337.5
million.  Ceded  losses and LAE in the nine  months  ended  September  30,  2002
include $115.7 million of ceded losses relating to the reinsurance  transactions
noted  earlier  between the Company and Bermuda Re. The ceded losses and LAE for
the nine months  ended  September  30,  2002  included  $11.0  million and $22.0
million of losses ceded under the 2001 and 2000 accident year  aggregate  excess
of  loss   component  of  the  Company's   corporate   retrocessional   program,
respectively.  The ceded losses and LAE for the nine months ended  September 30,
2001  included  $130.0  million and $49.0 million of losses ceded under the 2001
and 1999  accident  year  aggregate  excess of loss  component of the  Company's
corporate  retrocessional  program,  respectively,  with the 2001  accident year
cessions relating to losses incurred as a result of the September 11 attacks.

Contributing to the increase in incurred losses and LAE in the nine months ended
September  30, 2002 from the nine months ended  September  30, 2001 were a 58.9%
($85.1 million) increase in the U.S. Insurance operation principally  reflecting
increased  premium  volume  coupled  with  changes  in  this  segments  specific
reinsurance  programs and an 11.0% ($16.9 million) increase in the International
Reinsurance  operation.  These increases were partially  offset by a 6.9% ($24.4
million) decrease in the U.S. Reinsurance operation. Incurred losses and LAE for
each  operation  were also  impacted by  variability  relating to changes in the
level of premium volume and mix of business by class and type.

The Company's loss ratio,  decreased by 13.1  percentage  points to 70.8% in the
nine  months  ended  September  30,  2002 from  83.9% in the nine  months  ended
September 30, 2001 reflecting the incurred losses and LAE discussed  above.  The
following  table  shows  the loss  ratios  for each of the  Company's  operating
segments for the nine months ended  September 30, 2002 and 2001. The loss ratios
for all operations were impacted by the factors noted above.



                                      Operating Segment Loss Ratios
---------------------------------------------------------------------------------------
     Segment                                   2002                               2001
---------------------------------------------------------------------------------------
                                                                            
U.S. Reinsurance                               71.4%                              103.9%
U.S. Insurance                                 70.9%                               71.4%
Specialty Reinsurance                          77.4%                               80.4%
International Reinsurance                      62.3%                               69.4%


Underwriting  expenses  increased by 15.2% to $379.1  million in the nine months
ended  September 30, 2002 from $329.0 million in the nine months ended September
30, 2001.  Commission,  brokerage,  taxes and fees  increased by $45.0  million,
principally  reflecting  increases  in premium  volume and changes in the mix of
business, partially offset by $31.3 million of ceded commissions relating to the
reinsurance transactions noted earlier between the Company and Bermuda Re. Other
underwriting  expenses  increased  by $5.1  million as the Company  expanded its
operations  to support its  increased  business  volume.  Contributing  to these
underwriting expense increases were a 61.9% ($36.6 million) increase in the U.S.
Insurance  operation,   a  13.1%  ($10.5  million)  increase  in  the  Specialty
Reinsurance operation and a 7.4% ($8.7 million) increase in the U.S. Reinsurance
operation.  These  increases  were  partially  offset by a 7.8%  ($5.4  million)
decrease  in the  International  Reinsurance  operation.  The  changes  for each
operation's  expenses  principally  resulted from changes in commission expenses
related to changes in premium  volume and business mix by class and type and, in
some cases,  changes in the use of reinsurance and the underwriting  performance
of the underlying  business.  The Company's expense ratio was 27.7% for the nine
months  ended  September  30, 2002  compared to 31.0% for the nine months  ended
September 30, 2001.


                                        8

The Company's combined ratio decreased by 16.4 percentage points to 98.5% in the
nine months ended September 30, 2002 compared to 114.9% in the nine months ended
September 30, 2001.  The following  table shows the combined  ratios for each of
the Company's  operating  segments for the nine months ended  September 30, 2002
and 2001. The combined  ratios for all operations  were impacted by the loss and
expense ratio variability noted above, and for certain operations, by the impact
of adjustment  premiums ceded under the accident year  aggregate  excess of loss
element of the Company's retrocessional program,  principally relating to losses
incurred as the result of the September 11 attacks.



                                    Operating Segment Combined Ratios
----------------------------------------------------------------------------------------
      Segment                                   2002                                2001
----------------------------------------------------------------------------------------
                                                                             
U.S. Reinsurance                                99.0%                              138.7%
U.S. Insurance                                 100.3%                              100.4%
Specialty Reinsurance                          107.0%                              107.7%
International Reinsurance                       85.6%                              100.7%


INVESTMENT  RESULTS.  Net investment  income decreased 3.4% to $194.7 million in
the nine months ended  September 30, 2002 from $201.4 million in the nine months
ended  September  30,  2001,  principally  reflecting  the  effects of the lower
interest  rate  environment,  partially  offset by the effect of  investing  the
$413.0 million of cash flow from operations in the twelve months ended September
30, 2002. The following table shows a comparison of various investment yields as
of September 30, 2002 and December 31, 2001,  respectively,  and for the periods
ended September 30, 2002 and 2001, respectively.



                                                                           2002               2001
                                                                           -----------------------
                                                                                         
Imbedded pre-tax yield of cash and invested
 assets at September 30, 2002 and December 31, 2001                        5.6%                6.0%
Imbedded after-tax yield of cash and invested
 assets at September 30, 2002 and December 31, 2001                        4.4%                4.6%
Annualized pre-tax yield on average cash and
 invested assets for the nine months ended September 30,
 2002 and 2001                                                             5.8%                6.4%
Annualized after-tax yield on average cash and
 invested assets for the nine months ended September 30,
 2002 and 2001                                                             4.5%                4.8%



Net  realized  capital  losses  were  $45.9  million  in the nine  months  ended
September  30,  2002,  reflecting  realized  capital  losses  on  the  Company's
investments  of  $79.8  million,   which  included  $65.6  million  relating  to
write-downs  in the value of  securities  deemed to be impaired on an other than
temporary basis, of which $25.7 million related to WorldCom, partially offset by
$33.9 million of realized capital gains, compared to net realized capital losses
of $1.7 million in the nine months ended  September  30, 2001.  The net realized
capital losses in the nine months ended  September 30, 2001  reflected  realized
capital  losses of $26.0  million,  which  included  $16.7  million  relating to
write-downs  in the value of  securities  deemed to be impaired on an other than
temporary basis, partially offset by $24.3 million of realized capital gains.


                                        9

Interest  expense for the nine months ended September 30, 2002 was $31.9 million
compared to $35.3 million for the nine months ended September 30, 2001. Interest
expense for the nine months ended  September  30, 2002  reflects  $29.2  million
relating to the Company's  issuance of senior notes and $2.7 million relating to
the Company's  borrowings under its revolving credit facility.  Interest expense
for the nine months ended September 30, 2001 reflects $29.2 million  relating to
the  Company's  issuance  of  senior  notes  and $6.1  million  relating  to the
Company's borrowings under its revolving credit facility.

Other  expenses for the nine months ended  September  30, 2002 were $3.9 million
compared to other  expenses of $0.1 million for the nine months ended  September
30, 2001.  Significant  contributors  to other expense for the nine months ended
September  30, 2002 were an increase  in other  liabilities  related to deferred
recognition of reinsurance recoveries under retroactive  reinsurance between the
Company and Bermuda Re, the normal provision for uncollectible  audit premium in
the U.S. Insurance  operation and the amortization of deferred expenses relating
to the  Company's  issuance  of senior  notes in 2000,  partially  offset by fee
income and foreign  exchange  gains.  Other  expense  for the nine months  ended
September 30, 2001 principally  included the  amortization of deferred  expenses
relating to  Company's  issuance of senior  notes in 2000,  partially  offset by
foreign  exchange  gains and fee  income.  The foreign  exchange  gains for both
periods are attributable to fluctuations in foreign currency exchange rates.

INCOME TAXES. The Company  recognized income tax expense of $28.0 million in the
nine months ended  September 30, 2002 compared to a tax benefit of $14.1 million
in the nine months ended  September 30, 2001. The tax benefit in the nine months
ended  September 30, 2001  resulted  primarily  from the losses  relating to the
September 11 attacks, for which the benefit was calculated based on the specific
impacts of the event.

NET INCOME. Net income was $103.7 million in the nine months ended September 30,
2002 compared to $20.3 million in the nine months ended September 30, 2001. This
increase  generally  reflects the improved  underwriting  results and  decreased
interest expense, partially offset by increased tax expense and realized capital
losses.

MARKET  SENSITIVE  INSTRUMENTS.  The  Company's  risks  associated  with  market
sensitive  instruments  have not  changed  materially  since  the  period  ended
December 31, 2001.

SAFE HARBOR DISCLOSURE.  This report contains forward-looking  statements within
the meaning of the U.S.  federal  securities  laws.  The Company  intends  these
forward-looking  statements  to be covered  by the safe  harbor  provisions  for
forward-looking  statements in the federal securities laws. In some cases, these
statements can be identified by the use of forward-looking  words such as "may",
"will",  "should",   "could",   "anticipate",   "estimate",   "expect",  "plan",
"believe",  "predict",  "potential"  and  "intend".  Forward-looking  statements
contained in this report include  information  regarding the Company's  reserves
for losses and LAE, including estimates of the Company's  catastrophe  exposure.
Forward-looking  statements only reflect the Company's  expectations and are not
guarantees of performance.  These statements  involve risks,  uncertainties  and
assumptions.  Actual events or results may differ  materially from the Company's
expectations. Important factors that could cause the Company's actual results to
be materially  different from its expectations  include the  uncertainties  that
surround the estimating of reserves for losses and LAE, those  discussed in Note
2 to the Financial  Statements  included in this report and the risks  described
under the caption  "Risk  Factors" in the  Company's  most recent Report on Form
10-K.  The Company  undertakes no  obligation  to update or revise  publicly any


                                       10

forward-looking  statements,  whether  as a result  of new  information,  future
events or otherwise.


                                       11

                       EVEREST REINSURANCE HOLDINGS, INC.

                                Other Information


PART II - ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

a)   Exhibit Index:

     Exhibit No.      Description                                 Location
     -----------      -----------                                 --------
     99.1             CEO and CFO certification of Form 10-Q/A    Filed herewith


b)   A report on Form 8-K dated  August 13,  2002 was filed on August 13,  2002,
     reporting the voluntary  certification by Joseph V. Taranto,  the Company's
     Chief  Executive  Officer,  and Stephen L.  Limauro,  the  Company's  Chief
     Financial Officer, of the Company's 2001 annual report on Form 10-K and all
     subsequent reports filed prior to such date.


Omitted  from  this Part II are items  which  are  inapplicable  or to which the
answer is negative for the period covered.


                                       28



                       EVEREST REINSURANCE HOLDINGS, INC.

                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                              Everest Reinsurance Holdings, Inc.
                                                          (Registrant)





                                              /S/ STEPHEN L. LIMAURO
                                              ----------------------------------
                                              Stephen L. Limauro
                                              Executive Vice President and Chief
                                              Financial Officer


                                              (Duly Authorized Officer,
                                              Executive Vice President and Chief
                                              Financial Officer)









Dated:  November 5, 2002


I, Joseph V. Taranto, certify that:

1.   I have reviewed this quarterly report on Form 10-Q/A of Everest Reinsurance
     Holdings, Inc;

2.   Based on my knowledge,  this  quarterly  report does not contain any untrue
     statement of a material fact or omit to state a material fact  necessary to
     make the statements  made, in light of the  circumstances  under which such
     statements  were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in this  quarterly  report,  fairly  present  in all
     material respects the financial  condition,  results of operations and cash
     flows of the  registrant  as of, and for,  the  periods  presented  in this
     quarterly report;

4.   The  registrant's  other  certifying  officers  and I are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have;

     a.   designed  such  disclosure  controls  and  procedures  to ensure  that
          material  information  relating  to  the  registrant,   including  its
          consolidated subsidiaries,  is made known to us by others within those
          entities,  particularly  during  the  period in which  this  quarterly
          report is being prepared;

     b.   evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     c.   presented  in  this  quarterly   report  our  conclusions   about  the
          effectiveness  of the disclosure  controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The registrant's other certifying  officers and I have disclosed,  based on
     our most recent  evaluation,  to the  registrant's  auditors  and the audit
     committee of  registrant's  board of directors (or persons  performing  the
     equivalent function):

     a.   all  significant  deficiencies  in the design or operation of internal
          controls  which could  adversely  affect the  registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  registrant's  auditors any material  weaknesses in
          internal controls; and

     b.   any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          controls; and

6.   The  registrant's  other  certifying  officers and I have indicated in this
     quarterly report whether or not there were significant  changes in internal
     controls  or in other  factors  that could  significantly  affect  internal
     controls  subsequent to the date of our most recent  evaluation,  including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.



November 5, 2002                                           /S/ JOSEPH V. TARANTO
----------------                                           ---------------------
                                                           Joseph V. Taranto
                                                           Chairman and Chief
                                                           Executive Officer


I, Stephen L. Limauro, certify that:

1.   I have reviewed this quarterly report on Form 10-Q/A of Everest Reinsurance
     Holdings, Inc;

2.   Based on my knowledge,  this  quarterly  report does not contain any untrue
     statement of a material fact or omit to state a material fact  necessary to
     make the statements  made, in light of the  circumstances  under which such
     statements  were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in this  quarterly  report,  fairly  present  in all
     material respects the financial  condition,  results of operations and cash
     flows of the  registrant  as of, and for,  the  periods  presented  in this
     quarterly report;

4.   The  registrant's  other  certifying  officers  and I are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have;

     a.   designed  such  disclosure  controls  and  procedures  to ensure  that
          material  information  relating  to  the  registrant,   including  its
          consolidated subsidiaries,  is made known to us by others within those
          entities,  particularly  during  the  period in which  this  quarterly
          report is being prepared;

     b.   evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     c.   presented  in  this  quarterly   report  our  conclusions   about  the
          effectiveness  of the disclosure  controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The registrant's other certifying  officers and I have disclosed,  based on
     our most recent  evaluation,  to the  registrant's  auditors  and the audit
     committee of  registrant's  board of directors (or persons  performing  the
     equivalent function):

     a.   all  significant  deficiencies  in the design or operation of internal
          controls  which could  adversely  affect the  registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  registrant's  auditors any material  weaknesses in
          internal controls; and

     b.   any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          controls; and

6.   The  registrant's  other  certifying  officers and I have indicated in this
     quarterly report whether or not there were significant  changes in internal
     controls  or in other  factors  that could  significantly  affect  internal
     controls  subsequent to the date of our most recent  evaluation,  including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.



November 5, 2002                                    /S/ STEPHEN L. LIMAURO
----------------                                    ----------------------------
                                                    Stephen L. Limauro
                                                    Executive Vice President and
                                                    Chief Financial Officer