PartnerRe, Max Re See 3Q, Full Year Losses

October 4, 2001

Two Bermuda-based reinsurers, PartnerRe and Max Re, have indicated that they expect to show loss results for both the third quarter and probably the full year, caused for the most part by the direct and indirect effects of the terrorist attacks of September 11.

PartnerRe confirmed net after tax loss estimates from the event at $375 million, and predicted a net operating loss in the third quarter of between $5.60 and $6.25 per share. Full year estimates indicate losses of between $2.45 and $3.20 per share.

Max Re expects gross losses from its reinsurance contracts of $5 million from the WTC tragedy, but said the turbulence in the financial markets following September 11 had also reduced earnings. It expects to report loses of between 20 and 30 cents per share for the quarter. Full year estimates fall between a 20 cents per share profit, and 30 cents a share loss.

PartnerRe’s CEO Patrick Thiele stressed that his company retains a strong and secure capital position. He estimated it to be approximately $1.8 billion, equivalent to the levels of 1999, and that the company was “well positioned to support both current and new business.”

He voiced optimism about the prospects for 2002, indicating that he expected reinsurance demand to increase and premium levels to rise by around 25 percent with consequent growth for PartnerRe “in the high teens, substantially in excess of our long-term goal of 13%.”|”partnerre,, max, re, see, 3q,, full, year, losses

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