PartnerRe Ltd. Reports Record 2ndQ and First Half 2003 Results

PartnerRe Ltd. reported record results for the second quarter and first half of 2003.

PartnerRe president & CEO Patrick Thiele, commented, “We had an exceptional second quarter. In addition to setting a new record for operating income, we continued to achieve significant levels of written premium and book value growth, clearly indicating that we are benefiting from both our operating strategies and the current attractive market conditions.”

For the three months ended June 30, 2003, net income was $121.9 million, or $2.00 per share on a fully diluted basis. Net income includes a net after-tax realized gain on investments of $23.1 million or $0.43 per share. This quarter’s per share result includes one-time preferred share charges of $9.6 million or $0.18 per share relating to the issuance of new Series C Preferred Shares and redemption of the Series A Preferred Shares. The Company also began recognizing compensation expense relating to its stock incentive plans under the fair-value method of Financial Accounting Standard No. 123 “Accounting for Stock-Based Compensation” (FAS 123). This added $1.1 million or $0.02 per share to operating expenses during the second quarter. Net income for the second quarter of 2002, including a net after-tax realized loss on investments of $9.7 million or $0.19 per share, was $66.6 million or $1.19 per share.

Operating earnings for the second quarter 2003 were $84.2 million or $1.57 per share on a fully diluted basis. Operating earnings exclude net realized investment gains or losses and are calculated after payment of preferred dividends. Operating results for this quarter also reflect the impact of the refinancing of the Series A Preferred Shares and the expense related to stock incentives. This compares to operating earnings of $71.3 million, or $1.38 per share for the second quarter of 2002.