President and Chief Operating Officer Ralph Jones will replace Taranto from Jan. 1, 2011, while Taranto will remain the chairman of the board, Everest Re said in a statement.
The company reported operating profit -- a measure followed by insurance analysts -- of $184.8 million, or $3.18 a share, compared with $256.2 million, or $4.16 a share a year earlier.
Analysts on average expected the company to post earnings of $2.75 a share, excluding items, according to Thomson Reuters I/B/E/S.
Premiums earned rose 3.5 percent to $989.9 million from $956.9 million last year.
Net profit was $156.7 million, or $2.70 a share, compared with $272.6 million, or $4.43 a share a year ago.
Combined ratio, which is the percentage of premiums an insurer has to pay out in claims and expenses, rose to 93.2 percent from 87.5 percent last year.