PartnerRe, Max Re Report 3Q Losses

November 7, 2001

Two Bermuda-based reinsurers, PartnerRe and Max Re, have posted third quarter net losses of $338.5 million and $8.7 million respectively, primarily due to claims related to the attacks of Sept.11.

PartnerRe confirmed earlier loss estimates (See IJ Website Oct.29) of $400 million pre-tax ($382 million after-tax) as a result of increased claims. Operating losses for the period were $239.7 million compared to an operating profit of $164.5 million for the third quarter of 2000. It also posted a a net loss for the first nine months of the year of $189.4 million.

President and CEO Patrick Thiele reiterated his optimistic forecasts for next year, and reaffirmed the company’s current plans to raise $350 million in additional capital. He anticipates that premiums will grow by at least 30 percent in 2002.

Max Re’s more modest losses reflected a lesser exposure to the events of September 11. It attributed losses of $4.7 million to the attacks, slightly less than its preliminary estimate of $5 million. It also recorded losses on investments during the quarter, but a net gain on investments for the first nine months of $15.4 million.

Max Re’s gross premiums written during the quarter rose 38 percent compared to last year from $35.4 million to $48.7. For the first nine months they’re up 84 percent to $563 million; however, net earned premiums declined to $257.3 million, compared to $288.6 million for the first nine months of 2000.

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