PEMBROKE, Bermuda–(BUSINESS WIRE)– PartnerRe Ltd. (NYSE:PRE) today announced that during the January 1, 2014 treaty renewal season it expects to write and bind approximately $2.8 billion of Non-Life treaty premium. On a constant foreign exchange basis, this represents an increase of 3% from the renewable premium base. The renewal premium includes U.S. agriculture, as it is at a more advanced stage of completion than in previous years.
The Company renews approximately 65% percent of its total annual Non-Life treaty business on January 1. The remainder is comprised of treaty business that renews at other times during the year. In addition to treaty business, the Company writes approximately $440 million of facultative business which renews through the year.
PartnerRe President & Chief Executive Officer Costas Miranthis said, “We are pleased with the outcome of the January 1 renewal. Despite persistent challenging market conditions, our strong position with clients enabled us to obtain desired shares in our targeted businesses.”
Mr. Miranthis added, “As expected, the January renewal was very competitive in most lines and geographies with premium rates, and sometimes terms and conditions, coming under pressure. In many instances where premiums no longer provide an adequate return for the risk, we did not renew business. In spite of this, our overall premium grew slightly due to the fact that contracts negotiated earlier in 2013, as part of our initiative to grow in diversifying lines, incepted on January 1.”
The table below outlines PartnerRe’s January 1, 2014 Non-Life treaty renewals.
| PartnerRe January 1, 2014 Non-Life Treaty Renewal
(amounts are in U.S. $ millions and are on a constant foreign exchange basis) |
||||||||||||||||||||||||
| North America |
Global (Non- |
Global |
Catastrophe | TOTAL | ||||||||||||||||||||
| Non Ag | Agriculture | |||||||||||||||||||||||
| Renewable | $ | 373 | $ | 464 | $ | 690 | $ | 916 | $ | 244 | $ | 2,687 | ||||||||||||
| In Process / Extensions | 3 | 121 | 2 | 44 | – | 170 | ||||||||||||||||||
| Renewable Base | 370 | 343 | 688 | 872 | 244 | 2,517 | ||||||||||||||||||
| Non-Renewed |
(44 |
) |
(1 |
) |
(80 |
) |
(45 | ) |
(28 |
) |
(198 |
) |
||||||||||||
| Renewed | 326 | 342 | 608 | 827 | 216 | 2,319 | ||||||||||||||||||
| Renewal Changes/New Business | 115 | 18 | 63 | 97 | 2 | 295 | ||||||||||||||||||
| Total Estimated Premium | 441 | 360 | 671 | 924 | 218 | 2,614 | ||||||||||||||||||
| In Process / Potential New | 3 | 84 | 2 | 53 | – | 142 | ||||||||||||||||||
| Total Potential | $ | 444 | $ | 444 | $ | 673 | $ | 977 | $ | 218 | $ | 2,756 | ||||||||||||
| Growth % | 19 | % |
(4 |
)% |
(2 | )% | 7 | % | (11 | %) | 3 | % | ||||||||||||
Note: The January 1, 2014 Non-Life treaty renewal premium shown in the above table is not representative of the Company’s gross premium written for the first quarter of 2014 given most of this renewal business is written on a proportional basis with risks attaching to these treaties throughout 2014. The most significant exception to this is the renewal business written in the Catastrophe sub-segment, which is predominantly written on a non-proportional basis.
PartnerRe is scheduled to release fourth quarter and full year 2013 results after the close of trading on Monday, February 3, 2014. PartnerRe Management will conduct a conference call and webcast on Tuesday, February 4, 2014 at 10:00 a.m. Easte to discuss results and provide additional information on the January 1, 2014 renewals.
PartnerRe Ltd. is a leading global reinsurer, providing multi-line reinsurance to insurance companies. The Company, through its wholly owned subsidiaries, also offers capital markets 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, mortality, longevity, accident and health, and alternative risk products. For the year ended December 31, 2012, total revenues were $5.6 billion. At September 30, 2013, total assets were $23.1 billion, total capital was $7.4 billion and total shareholders’ equity attributable to PartnerRe was $6.6 billion.
PartnerRe on the Inteet: 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, credit, interest, currency and other risks associated with the Company’s investment portfolio, adequacy of reserves, levels and pricing of new and renewal business achieved, changes in accounting policies, risks associated with implementing business strategies, 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.
PartnerRe Ltd.
Investors: Robin Sidders
Media: Celia Powell
441-292-0888
or
Sard Verbinnen & Co
Drew Brown/Daniel Goldstein
212-687-8080
Source: PartnerRe Ltd.
