A.M. Best Places Ratings of PartnerRe, Ltd. and Its Operating Subsidiaries Under Review With Negative Implications

A.M. Best Co. has placed under review with negative implications the financial strength rating (FSR) of A+ (Superior) and issuer credit ratings (ICR) of "aa-" of Partner Reinsurance Company Ltd. (Hamilton, Bermuda) and its affiliates. A.M. Best also has placed under review with negative implications the ICR of "a-" and debt ratings ofits parent, PartnerRe Ltd. (PartnerRe) (Hamilton, Bermuda) (NYSE: PRE). This rating action follows PartnerRe's recent pre-earnings release, which provided estimates of losses related to flooding in Thailand and its outlook on fourth quarter 2011 financial results. (See link below for a detailed listing of the companies and ratings.)

The under review status reflects A.M. Best's concern with the aggregation of catastrophe losses that PartnerRe has experienced on an absolute and relative basis. The accumulation of catastrophe losses experienced by PartnerRe in 2011 has strained average historical measures.

PartnerRe will remain under review pending the completion of A.M. Best's analysis of the company's final 2011 earnings release and catastrophe losses as well as market analysis of PartnerRe's 2011 results relative to its peers. The analysis also will include a review of the company's capital position, risk appetite and risk management capabilities

Factors that could result in a negative outlook or a downgrading of the ratings include unfavorable operating profitability relative to the market as a result of catastrophe losses. Additional factors that could place downward pressure on the ratings would be an altered view of PartnerRe's risk management capability or a material decline in its risk-adjusted capital. Factors that could lead to a stable outlook would be evidence of PartnerRe's long-term, consistently strong operating profitability and maintenance of strong risk-adjusted capital levels.

For a complete listing of PartnerRe, Ltd. and its subsidiaries' FSRs, ICRs and debt ratings, please visit www.ambest.com/press/012404partnerre.pdf.

The principal methodology used in determining these ratings is Best's Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best's rating process and highlights the different rating criteria employed. Additional key criteria utilized include: "Risk Management and the Rating Process for Insurance Companies"; "Understanding Universal BCAR"; "Catastrophe Analysis in A.M. Best Ratings"; "Rating Members of Insurance Groups"; and "A.M. Best's Ratings & the Treatment of Debt." Methodologies can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2012 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

Contacts:

A.M. Best Co.
Greg Reisner,908-439-2200, ext. 5224
Senior Financial Analyst
[e-mail]
or
Peter Dickey, 908-439-2200, ext. 5053
Assistant Vice President
[e-mail]
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
[e-mail]
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
[e-mail]