PartnerRe Comments on Financial Impact of Q2 Losses

Bermuda-based PartnerRe Ltd. has provided information on the net impact of catastrophe-related large losses affecting second quarter 2011 results.

Significant losses, related to the tornadoes that struck the U.S. in April and May, are estimated to total $89 million, which includes the tornado losses during the last week of April 2011 that were already disclosed by the Company.

In addition, PartnerRe said it “expects to record $59 million in losses associated with changes in estimates during the second quarter for catastrophe events that occurred in the first quarter of 2011”.

The revised estimate is mainly due to “an increase in the loss estimate for the New Zealand earthquake in February 2011, following the receipt of recently revised loss information from cedants,” said the bulletin. “The Company did not materially change its loss estimate associated with the Tohoku Earthquake and resulting tsunami impacting Japan in March 2011.

“Loss estimates are pre-tax, net of retrocession, reinstatement premiums and commissions, and relate to all reinsurance contracts expected to be impacted.

“Losses are expected to be primarily recorded within the Company’s Catastrophe and North America sub-segments.”

PartnerRe is scheduled to release second quarter and half year 2011 results after the close of trading on Monday, August 1, 2011.

Source: PartnerRe

Topics Mergers & Acquisitions Catastrophe Profit Loss