PartnerRe Ltd Announces Q2 2010 Results (Excerpt)

PEMBROKE, Bermuda – 05 August, 2010 - PartnerRe Ltd. (NYSE,Euronext:PRE) has reported net income of $190.9 million, or $2.31 per share on a fully diluted basis for the second quarter of 2010. This net income includes net after-tax realized and unrealized gains on investments of $29.7 million, or $0.38 per share. Net income for the second quarter of 2009 was $474.3 million, or $8.10 per share, including net after-tax realized gains on investments of $279.6 million, or $4.86 per share. Operating earnings for the second quarter of 2010 were $151.5 million, or $1.92 per share on a fully diluted basis. This compares to operating earnings of $179.3 million, or $3.12 per share, for the second quarter of 2009.

Net income for the first six months of 2010 was $270.6 million, or $3.13 per share. This net income includes net after-tax realized and unrealized gains on investments of $140.3 million, or $1.74 per share. Net income for the first six months of 2009 was $615.8 million, or $10.43 per share, including net after-tax realized and unrealized gains on investments of $205.1 million, or $3.57 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) in the first quarter of 2009. Operating earnings for the first six months of 2010 were $109.8 million, or $1.35 per share on a fully diluted basis. This compares to operating earnings of $335.0 million, or $5.84 per share, for the first six months 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 are 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 the second quarter and half year 2010 results, PartnerRe Chief Executive Officer Patrick Thiele said, “We had good second quarter 2010 results although there were a number of cross-currents, including the cost of a voluntary termination plan related to the integration of PARIS RE. For the half year, we showed strong net written premium growth of 35%, while operating earnings were down due to the combined impact of the Chilean earthquake and the Deepwater Horizon losses, reflecting the normal volatility we expect in our results.”

At June 30, 2010, total capital was $7.9 billion, and total shareholders’ equity was $7.1 billion. This compares to total capital of $8.0 billion, and total shareholders’ equity of $7.6 billion at December 31, 2009. Book value per common share at June 30, 2010 was $85.32 on a fully diluted basis compared to $84.51 per diluted share at December 31, 2009.

For additional information, the Company has posted a second quarter 2010 financial supplement on its website www.partnerre.com in the Investor Relations section on the Financial Reports page under Supplementary Financial Data.

Commentary and Outlook

Mr. Thiele said, “Our July 1 renewals were consistent with those at January 1, and expected profitability was reasonable considering the current low level of interest rates and assuming a continuing low underlying loss trend. This current market environment, which may last for some time, validates our decision to purchase PARIS RE last year. We have a larger more diversified book of business which gives us greater flexibility in generating shareholder value over the long-term.”

PartnerRe Ltd. is a leading global reinsurer, providing multi-line reinsurance to insurance companies. The Company, through its wholly owned subsidiaries, also offers capital markets 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, multiline and other lines, life/annuity and health, and alternative risk products. For the year ended December 31, 2009, total revenues were $5.4 billion. At June 30, 2010, total assets were $23.6 billion, total capital was $7.9 billion and total shareholders’ equity was $7.1 billion.   

PartnerRe on the Internet: www.partnerre.com

Contacts:

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

Citigate Sard Verbinnen & Co:

Drew Brown/Briana Kelly - (212) 687-8080

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For more information on the Bermuda Stock Exchange (BSX), contact Daniel Matthews at 1-441-292-7212 or dmatthews@bsx.com . Information is also available at www.bsx.com and on Bloomberg at BSX <GO>.

Established in 1971 the Bermuda Stock Exchange (BSX) is now the leading fully electronic offshore securities market. The BSX specializes in listing and trading of capital market instruments such as equities, debt issues, funds, hedge funds, derivative warrants and Insurance Linked Securities.

The BSX, recognised by the US SEC as a Designated Offshore Securities Market, is a member of the World Federation of Exchanges and is located in an O.E.C.D. member nation. The BSX has Approved Stock Exchange status under Australia’s Foreign Investment Fund (FIF) taxation rules; Designated Investment Exchange status by the UK’s Financial Services Authority; Recognised Stock Exchange by the UK HM Revenue and Customs; and is a member of America’s Central Securities Depository Association.