PartnerRe Estimates Net Loss Exposure to Enron at $34 Million

December 14, 2001

Bermuda’s PartnerRe Ltd. announced that its aggregate loss exposure following the collapse of Enron Corp. was approximately $49 million on a pre-tax basis, and $34 million after tax.

“The bulk of PartnerRe’s exposures relate to surety reinsurance contracts. Exposures to various liability reinsurance coverages and investment losses are not material,” said the company’s announcement.

It added that the situation was subject to a number of contingencies, and that it was not “in a position to accurately estimate the actual losses, if any, it may incur under its various reinsurance contracts.” Enron is in chapter 11, and hopes to eventually reorganize; therefore, many liabilities may eventually be partially or even entirely paid, and many of PartnerRe’s primary insureds may mitigate the amount of their actual losses.

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