For the three months ended March 31, 2002, operating earnings available to common
shareholders, which exclude net realized investment gains or losses and after payment of preferred dividends ("operating earnings"), were $66.8 million, or $1.29 per share on a fully diluted basis.
This compares to operating earnings of $55.6 million, or $1.08 per share, for the first quarter of 2001. For the three months ended March 31, 2002, net income was $63.3 million, or $1.13 per common share on a fully diluted basis. Net income includes net (after-tax) realized investment losses of $8.5 million. Net income for the first quarter of 2001 was $95.9 million, or $1.76 per common share, which included (after-tax) realized gains of $7.5 million and a non-recurring gain of $27.8 million, or $0.54 per diluted share, relating to the adoption of FAS 133.
At March 31, 2002, total assets were $7.6 billion, total capitalization was $2.4 billion and
shareholders' equity was $1.8 billion. Book value per common share was $29.24 on a fully diluted
basis at March 31, 2002, compared to $29.05 per share at December 31, 2001.
Separately, the Company announced that the Board of Directors declared an increase in the regular
quarterly dividend to $0.29 per common share from $0.28. The dividend will be payable on June
3, 2002, to common shareholders of record on May 24, 2002, with the stock trading ex-dividend
commencing May 21, 2002.
Results of Operations
The Company experienced strong growth during the first quarter of 2002. Net premiums written were $824.5 million for the three months ended March 31, 2002, a 38% increase over $597.8 million recorded for the 2001 first quarter. Sustained growth was achieved in every line and market, with the exception of the credit and surety line, as the Company allocated capital to those lines of business and markets that present the most attractive return opportunities.
Total revenues for the first quarter of 2002 were $531.0 million, with $479.5 million of net
premiums earned, net investment income of $58.7 million and net realized investment losses of
$7.9 million. For the first quarter 2001, revenues were $458.5 million, with $389.4 million of net premiums earned, net investment income of $60.0 million and net realized investment gains of
$9.1 million.
During the quarter, the Company adopted Financial Accounting Standard No. 142 "Goodwill and
Other Intangible Assets." As a result, it ceased amortizing goodwill on January 1, 2002, which
would have resulted in an after-tax charge of $5.6 million or $0.11 per share per quarter.
Commentary and Outlook "We are very pleased with our first quarter results, which position PartnerRe for what we believe will be a banner year, " said Patrick Thiele, President and Chief Executive Officer of PartnerRe.
"On an annualized basis, our first quarter operating earnings represent a return on beginning
common equity in excess of 17%, a level that amply rewards our shareholders." Mr. Thiele continued, "The Company's significant premium growth reflects a very strong January
renewal season, with pricing increases across the board and attractive terms and conditions. Our
excellent non-life underwriting performance, with a combined ratio of 92.6%, is the product of a
low incidence of losses in the catastrophe line, and continued improvement in all other lines. This
was partially offset by losses in credit and surety.
"In light of our first quarter and April 1 renewal performance, we now believe that our growth in net written premiums will exceed the 30% objective we previously advised, and we remain
confident in our prior guidance for 2002 of operating earnings per share of at least $5.50 and a return on equity in excess of 17%, absent unusual loss events, " he said. "Due to this positive outlook, we are pleased to increase our annual common share dividend to $1.16 per share. This represents the eight consecutive annual dividend increase in PartnerRe's history. "