Partner Re Posts 73.4% Q1 Net Income Gain to $193.2 Million

April 25, 2006

Bermuda’s PartnerRe Ltd. reported net income of $193.2 million, or $3.21 per share on a fully diluted basis, for the first quarter of 2006, a 73.4 percent rise. Net income includes net after-tax realized gains on investments of $50.9 million or $0.89 per share. By comparison, net income for the first quarter of 2005, including net after-tax realized gains on investments of $35.2 million or $0.63 per share, was $111.4 million or $1.84 per share.

“Operating earnings for the first quarter of 2006 were $133.7 million or $2.32 per share on a fully diluted basis. This compares to operating earnings of $67.6 million, or $1.21 per share, for the first quarter of 2005,” said the bulletin.

Commenting on the first quarter 2006 results, PartnerRe President & CEO Patrick Thiele said: “Our results this quarter were favorably impacted by a low level of large loss activity as shown by a 21 percent annualized operating return on beginning shareholders’ equity. In addition, we continue to achieve positive results and generate substantial realized gains in our equity portfolios, leading to an annualized net income return on equity of 29 percent.

“Our GAAP book value per share increased 3.5 percent in the quarter to $46.15, despite the negative impact of rising interest rates on the market value of our bond portfolios. Rising interest rates tend to restrain growth in book value, as GAAP recognizes interest rate impacts only on assets and not on liabilities. Nevertheless, we remain committed to growing GAAP book value at an average of 10 percent per year, and to building shareholder value over the long term.”

Net premiums written for the first quarter 2006 were $1.3446 billion, a 5 percent drop from Q1 2005. PartnerRe explained the decrease as due to “the impact of foreign exchange, without which net premiums written would have been flat year over year.” The bulletin also noted that “total revenues for the quarter were $995.6 million, down from the $1.0 billion in revenues in the first quarter of 2005. Total revenues for the first quarter 2006 included $832.8 million of net premiums earned; net investment income of $100.0 million – an increase of 15 percent; and pre-tax net realized investment gains of $55.1 million.”

The Company’s non-life combined ratio for the quarter dropped nearly 10 percent from 97 percent in Q1 2005 to 87.8 percent in Q1 2006.

The full report and additional comments are available on the Company’s Website at: http://www.partnerre.com.

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