PEMBROKE, Bermuda, Sept. 23 /PRNewswire-FirstCall/ -- PartnerRe Ltd. today announced that its early estimate of claims relating to its exposure to Hurricane Ike is currently between $175-$210 million on a pre-tax basis, net of reinstatement premiums.
On September 13, 2008, Hurricane Ike made landfall at Galveston Island, Texas, as a strong Category 2 hurricane with maximum sustained winds of 110 miles per hour. Hurricane Ike's large footprint, with hurricane force winds extending 125 miles from the center, affected large portions of the Texas coastline in addition to areas well inland.
PartnerRe's loss estimate is based on the assessment of individual treaties as well as client data and is predominantly concentrated in the Catastrophe sub-segment, with additional losses expected in the U.S and Global (non-U.S.) Specialty sub-segments and the Insurance Linked Securities (ILS) unit. This loss estimate will be refined as additional information is received from clients.
In addition, after further discussion with clients, PartnerRe revised down its estimate of claims relating to its exposure to Hurricane Gustav to $10-$20 million on a pre-tax basis, net of reinstatement premiums, from its original estimate of $25-$45 million. The reduction in estimate is primarily concentrated in the Catastrophe sub-segment.
PartnerRe President & CEO Patrick Thiele said, "The third quarter has been active in terms of Atlantic hurricanes. We typically expect to incur larger catastrophe related claims in the second half of the year, and as a result, PartnerRe earns a proportionally higher level of catastrophe-exposed premiums in the third quarter and second half of the year. This partially mitigates the impact on results of third quarter and second half catastrophe related losses."
PartnerRe Ltd. is a leading global reinsurer, providing multi-line reinsurance to insurance companies. The Company, through its wholly owned subsidiaries, also offers alternative risk products that include weather and credit protection to financial, industrial and service companies. Risks reinsured include property, casualty, motor, agriculture, aviation/space, catastrophe, credit/surety, engineering, energy, marine, specialty property, specialty casualty, multiline and other lines, life/annuity and health, and alternative risk products. For the year ended December 31, 2007, total revenues were $4.2 billion. At June 30, 2008, total assets were $17.2 billion, total capital was $5.3 billion and total shareholders' equity was $4.4 billion.
PartnerRe on the Internet: http://www.partnerre.com/
Forward-looking statements contained in this press release are based on the Company's assumptions and expectations concerning future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are subject to significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. PartnerRe's forward-looking statements could be affected by numerous foreseeable and unforeseeable events and developments such as exposure to catastrophe, or other large property and casualty losses, adequacy of reserves, risks associated with implementing business strategies, levels and pricing of new and renewal business achieved, credit, interest, currency and other risks associated with the Company's investment portfolio, changes in accounting policies, and other factors identified in the Company's filings with the Securities and Exchange Commission. In light of the significant uncertainties inherent in the forward-looking information contained herein, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. The Company disclaims any obligation to publicly update or revise any forward-looking information or statements.
Contacts: PartnerRe Ltd. Sard Verbinnen & Co (441) 292-0888 (212) 687-8080 Investor Contact: Robin Sidders Drew Brown/Jane Simmons Media Contact: Celia Powell
