PartnerRe Reports Strong Gains in Q4, Full Year Earnings

February 11, 2003

Bermuda’s PartnerRe Ltd. joined Converium in reporting excellent fourth quarter and full year results. It posted operating earnings, which exclude net realized investment gains or losses and are calculated after payment of preferred dividends, of $77 million or $1.46 per share on a fully diluted basis in the fourth quarter, compared to operating earnings of $17.2 million, or $0.33 per share for the fourth quarter of 2001.

For the year ended December 31, 2002, Partner Re’s operating earnings were $187 million or $3.60 per share on a fully diluted basis, while its net premiums written reached $2.7 billion, an increase of 45% from 2001. Net income for the year was $190.3 million, or $3.28 per share (after deduction of preferred dividends), which included net after-tax realized investment losses of $16.7 million.

In 2001 Partner Re posted a $222.4 million or $4.44 per share operating loss, and net losses of $160.5 million or $3.60 per share after net realized investment gains of $14.1 million after tax and what it termed “the positive cumulative effect of adopting FAS 133 of $27.8 million.”

President & CEO Patrick Thiele, commented, “We had an excellent fourth quarter to finish 2002. Overall it was a good year, with calendar year ROE of 12.5%, and book value per share growth of 17%. Premium growth of 45% was driven by excellent pricing conditions in most of our markets.”

The bulletin noted that “results for 2001 were impacted by a loss of $400 million, or $8.01 per diluted share after tax, as a result of the terrorist attack of September 11.” It indicated that developments in the fourth quarter of 2002 seemed to reflect “a return to a more normalized level of profitability given current market conditions, while results in the fourth quarter of 2001 were impacted by a $47.3 million pre-tax loss ($0.60 per diluted share after tax) relating to the Company’s exposure to Enron Corp., as well as unusually high frequency of large losses in Europe.”

Partner Re reaffirmed its expectations of achieving a return on equity in excess of 17 percent in 2003.

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