PartnerRe Posts Strong Growth, But WTC Attacks, Enron Hit Earnings

February 12, 2002

Bermuda’s PartnerRe Ltd. reported results for the fourth quarter and full year which reflected the tumult felt by many insurers in 2001. While net premiums written rose 30 percent to $1.825 billion, the company posted an operating loss to common shareholders of $222.4 million, or $4.44 per share on a fully diluted basis, compared to operating earnings of $192.1 million, or $3.79 per share, for the year 2000.

PartnerRe had already taken a charge of $400 million in the 3rd quarter to to cover its potential exposure to the Sept.11 attacks, and in the 4th quarter took an additional $47.3 million pre-tax charge ($31.1 million after tax), or $0.60 per share after tax, relating to Enron Corp.

“This represents a full reserve against the Company’s previously indicated exposure to surety bonds and liability policies associated with Enron Corp. The Company also experienced an unusually high frequency of large losses, predominantly in Europe,” said the announcement.

President and CEO Patrick Thiele stated that, “The fourth quarter was an extraordinary one for PartnerRe following the events of September 11. We dealt quickly with the impact of the tragedy, replenished our capital, and immediately addressed the needs of our clients.”

He noted that the 46% growth achieved in net written premiums “reflects the strength of the market, our global franchise, our leadership in specialty lines and our continued ability to provide significant capacity on the strength of our balance sheet,” even though it was offset by the Enron bankruptcy and “by a higher frequency of losses in Europe.”

Thiele continued on a decidedly positive note, pointing out that “Over the course of the year, we grew net written premiums over 30% at attractive terms and conditions, and delivered substantial cash flow. We continue to anticipate superior performance for 2002.”|”partnerre, posts, strong, growth,, but, wtc, attacks,, enron, hit, earnings

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