PartnerRe See 3Q Loss, Will Raise $350 Million

October 29, 2001

Bermuda’s PartnerRe, which already announced estimated net losses from the Sept.11 attacks of around $400 million, announced additional losses of around $25 million, and said it would report a third quarter operating loss of between $6.65 and $6.75 per share. The company also revealed plans to raise an additional $350 million in new capital.

PartnerRe was hit by increased claims caused by damages from Tropical Storm Nari and the explosion and fire at the TotalFinaElf chemical plant in Toulouse, France.

President and CEO Patrick Thiele said in a written statement that PartnerRe had “decided to raise new capital in order to provide additional capacity to our clients and to ensure the maintenance of our very strong financial strength ratings”. It plans to issue “trust preferred and convertible preferred securities, before the end of the year,” to do so.

He indicated that the company forecast increased business opportunities in 2002. “Our outlook for next year is very positive and we now expect premium income to grow by at least 30% during 2002,” Thiele said. “We have set as a target for 2002 operating earnings in excess of $5.50 per share and a return on beginning book value in excess of 17% (barring unexpectedly large loss events), despite issuing new securities and larger than expected losses in the third quarter 2001.”|”partnerre, see, 3q, loss,, will, raise, $350, million

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