PartnerRe Ltd Reports First Quarter 2010 Results

PEMBROKE, Bermuda - 07 May, 2010 - PartnerRe Ltd. (NYSE:PRE) reported net income of $79.7 million, or $0.85 per share on a fully diluted basis for the first quarter of 2010. Net income includes net after-tax realized and unrealized gains on investments of $110.6 million, or $1.33 per share. Net income for the first quarter of 2009 was $141.5 million, or $2.32 per share on a fully diluted basis, including net after-tax realized and unrealized losses on investments of $74.5 million or $1.30 per share, as well as a net after-tax gain of $57.0 million, or $0.99 per share, from the purchase of approximately 75% of the Company's outstanding Capital Efficient Notes (CENts). The Company recorded an operating loss of $41.8 million, or $0.50 per share on a fully diluted basis, for the first quarter of 2010. This compares to operating earnings of $155.7 million, or $2.72 per share, for the first quarter of 2009. Operating earnings exclude net after-tax realized and unrealized investment gains and losses, net after-tax realized gain on the purchase of the CENts, and net after-tax interest in results of equity investments, and is calculated after payment of preferred dividends. All references to per share amounts in the text of this press release are on a fully diluted basis.

Commenting on results for the first quarter of 2010, PartnerRe President & Chief Executive Officer Patrick Thiele said, "As a global, diversified reinsurer, we assume volatility that our insurance company clients don't want and, consequently, we expect to occasionally show that volatility in our own quarterly financial results. This quarter was an example of that with approximately $334 million in catastrophes causing a small operating loss. Nevertheless, we reported positive net income, as our capital markets risks more than offset those losses, and GAAP book value per share was essentially flat with year-end 2009."

Mr. Thiele added, "We are progressing well with the integration of PARIS RE into PartnerRe and expect to meet our goal of operating as one entity at the July 1, 2010 renewals. There have been no surprises in the business or the balance sheet we purchased and we remain pleased with this acquisition and the business and talent it has added to PartnerRe."

Net premiums written for the first quarter of 2010 were $1.8 billion, compared to $1.3 billion in the first quarter of 2009. Total revenues for the first quarter of 2010 were $1.5 billion, compared to $1.0 billion in the first quarter of 2009, and included $1.2 billion of net premiums earned, up 33% from the first quarter of 2009; net investment income of $173.1 million, up 30% when compared to $133.1 million in the first quarter of 2009; pre-tax net realized and unrealized investment gains of $145.5 million as compared to pre-tax net realized and unrealized investment losses of $70.1 million and a pre-tax gain of $88.4 million from the purchase of the CENts in the first quarter of 2009. Net premiums written, net premiums earned and net investment income were all positively impacted by foreign exchange, amounting to increases of 6%, 6% and 3%, respectively.

During the first quarter of 2010, the Company repurchased 3,006,873 common shares at a total cost of approximately $231 million. In February, the Company announced an increase in its share repurchase authorization up to a total of 8 million common shares. In April 2010, the Company repurchased 1,825,450 common shares at a total cost of approximately $146 million. Approximately 5 million common shares now remain under the current repurchase authorization.

Separately, the Company announced today that its Board of Directors declared a quarterly dividend of $0.50 per common share. The dividend will be payable on June 1, 2010, to common shareholders of record on May 21, 2010, with the stock trading ex-dividend commencing May 19, 2010.

For more information please visit PartnerRe on the Internet: www.partnerre.com

PartnerRe is a leading global reinsurer, providing multi-line reinsurance to insurance companies. The Company through its wholly owned subsidiaries also offers alternative risk products that include weather and credit protection to financial, industrial and service companies. Risks reinsured include property, casualty, motor, agriculture, aviation/space, catastrophe, credit/surety, engineering, energy, marine, specialty property, specialty casualty, other lines, life/annuity and health, and alternative risk products. For the year ended December 31, 2009, total revenues were $5.4 billion, and at December 31, 2009 total assets were $23.7 billion, total capital was $8.0 billion and total shareholders' equity was $7.6 billion. 

Contacts:

PartnerRe Ltd: – Robin Sidders - (441) 292-0888

Citigate Sard Verbinnen & Co:

Drew Brown/Jane Simmons - (212) 687-8080