QUOTE AND NEWS
Reuters  Apr 30  Comment 
Bermuda-based Axis Capital Holdings said in a statement late on Wednesday it continued to believe a merger with reinsurer PartnerRe was in the best interests of its...
Insurance Journal  Apr 29  Comment 
PartnerRe Ltd., the reinsurer that agreed to combine with Axis Capital Holdings Ltd., said it would refuse to answer questions on its first-quarter earnings call about the unsolicited $6.4 billion buyout offer from EXOR SpA. PartnerRe’s board is...
Insurance Journal  Apr 28  Comment 
Bermuda-based PartnerRe Ltd. reported net income of $231.7 million, or $4.76 per share for the first quarter of 2015. The figure includes net after-tax realized and unrealized gains on investments of $100.3 million, or $2.06 per share. By...
Benzinga  Apr 22  Comment 
UBS downgraded Partnerre Ltd (NYSE: PRE) from Buy to Neutral. Partnerre shares have climbed 23.63 percent over the past 52 weeks, while the S&P 500 index has surged 11.58 percent in the same period. Partnerre shares rose 0.51 percent to close...
Insurance Journal  Apr 17  Comment 
The Agnelli family’s EXOR SpA, known for investments in cars and soccer, is dismissing the prevailing reinsurance strategies as it seeks to push into the industry with a $6.4 billion takeover. EXOR is shunning the idea that it should take...
Insurance Journal  Apr 17  Comment 
PartnerRe Ltd.’s second-biggest shareholder, Franklin Mutual Advisers LLC (FMA), said Exor SpA’s offer for the Bermuda-based reinsurer was “much superior” to a deal with Axis Capital Holdings Ltd that was already on the table. FMA’s CEO...
Reuters  Apr 16  Comment 
PartnerRe Ltd's second-biggest shareholder said Exor SpA's offer for the Bermuda-based reinsurer was "much superior" to a deal with Axis Capital Holdings Ltd that was already on the table.
TheStreet.com  Apr 15  Comment 
NEW YORK (TheStreet) -- PartnerRe shares are up 0.68% to $130.13 in trading on Wednesday after the company received a $6.4 billion cash bid from Italian holding company Exor that trumps the $11 billion all share merger agreement the company...
Reuters  Apr 15  Comment 
* Exor CEO says he expects the group will be able to keep investment grade rating after a potential deal to buy PartnerRe. Further company coverage: (Reporting by Milan Newsroom)




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Based in Bermuda, PartnerRe Ltd. (PRE) was formed in 1993, raising nearly $1 billion in an IPO to capitalize on the void in catastrophe reinsurance capacity following Hurricane Andrew and the concurrent difficulties faced by Lloyds of London. While beginning as a pure property reinsurer, the company has become a dynamic and diversified property-casualty (P&C) and life reinsurer over the years, covering catastrophe, automobile, agricultural, credit and surety, marine, space and aviation, miscellaneous casualty, and life/health risks. Since 1997, the company has been a leading international reinsurance company that writes multi-line reinsurance on a pro-rata as well as excess of loss basis and offers both treaty and facultative contracts.

In December 2007, PRE redefined its financial reporting segments. According to the latest redefinition the company classified its activities into three primary segments for FY06:

Non-life - $3.2 billion in net written premiums (NWP), or 86.5% of PRE's total NWP:

U.S. Property and Casualty 32.2% of Non-life NWP

Global (Non-U.S.) Property and Casualty 23.8% of Non-life NWP

Global (Non-U.S.) Specialty 31.0% of Non-life NWP

Catastrophe 12.9% of Non-life NWP

Life - 13.2% of PRE's total NWP:

Annuity

Health

Life

Corporate and Other 0.3% of PRE's total NWP:

Insurance Linked Securities

Principal Finance

Strategic Investments

PartnerRe operates in Asia, Europe, South America, and in the U.S. through its subsidiaries Partner Reinsurance Company Ltd, PartnerRe SA, and Partner Reinsurance Company of the U.S. In 2006, North America and Europe contributed 43% and 42% of gross written premiums, respectively. The balance came from Asia, Australia, and New Zealand (8%) Latin America, Caribbean Islands, and Africa (7%).

History of earnings stability

PRE's diversified book of business, both geographically (more than 120 countries) and across reinsurance products, has contributed to more stable earnings and better underwriting profitability, compared to many of its peers. Although in the third quarter of 2004 the company suffered hurricane losses adding 16 points to the combined ratio (the loss ratio was 71.3% versus 65.1% in the year-ago quarter), it still generated an underwriting profit, albeit a slim one the third quarter of 2004 combined ratio was 99.5%. Progressing further into the soft market, we think this diversification and apparent underwriting discipline will likely enable the company to continue generating a ROE in the teens, albeit below recent levels. The company generated a ROE of 17% in 2004 and surpassed our expectations to expand at 26% for 2006 exceeding the very strong 21% earned in 2003. Though operating ROE slightly moderated during the first half of FY07 (operating ROE at 18% for 1H07), due to soft pricing strong results for the third quarter again pushed operating ROE to 23% annualized for the nine months ended September 2007 .

Conservative reserving policy

Added earnings cushion going into the softening P&C cycle could come from favorable reserve development. PRE began writing casualty business as the cycle was turning up in 2001, and therefore we believe coverages written were more likely to be priced and reserved appropriately. Indeed, the company has experienced favorable reserve development in all of the last eight quarters a trend we think could continue. We do note, however, that the favorable reserve development comes from policies written in a hard market, and the company's lack of casualty underwriting experience could result in negative surprises in the future.

Life segment poised to benefit from market consolidation

The Life segment, which accounts for 16% of net written premiums for 3Q07, is positioned to benefit from the consolidation in the global life reinsurance market. The weak dollar has contributed to rapid growth in recent years we would expect the growth trend to moderate, when the dollar's decline reverses. Net life premiums earned increased 29% year-over-year during 3Q07, however, in our opinion, we expect growth in the teens for the coming quarters as the global life reinsurance market consolidates.

Benign loss environment to boost profits: Hurricane season has remained mild so far which should keep the level of incurred losses below average levels resulting in higher profits. However, we do expect continued softening in pricing environment and increasing competition to offset some of the profits.

Excellent returns to the shareholders: PRE has continued to return additional value to its shareholders through stock buybacks and dividend payments. From inception till the end of 3Q07, the company has returned a total of $1.6 billion in dividends and share repurchases, which exceeds the total common equity raised by it.




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