PartnerRe Ltd. (PRE) filed Quarterly Report for the period ended 2009-09-30.
PartnerRe Ltd. is a leading global reinsurer providing multi-line reinsurance to insurance companies. Risks reinsured include property casualty motor agriculture aviation/space catastrophe credit/surety engineering energy marine specialty property specialty casualty other lines life/annuity and health and alternative risk transfer solutions. Partnerre Ltd. has a market cap of $4.49 billion; its shares were traded at around $77.05 with a P/E ratio of 6.6 and P/S ratio of 1.1. The dividend yield of Partnerre Ltd. stocks is 2.4%.
Highlight of Business Operations:
On November 2, 2009, Paris Re, having met all of the conditions precedent to the payment of its previously announced extraordinary cash distribution by way of a capital reduction to all Paris Re shareholders in the amount of CHF 4.17 per Paris Re common share (the Swiss franc equivalent of $3.85 as of July 7, 2009, the date on which Paris Re fixed the U.S. dollar/Swiss franc currency exchange rate to be used for the extraordinary cash distribution) (the Share Capital Repayment), effected the Share Capital Repayment. The Paris Re shareholders that previously sold their Paris Re common shares to the Company in July 2009, received a payment of $3.85 at the closing of the Block Purchase for each Paris Re common share sold (net of dividends paid on the Company’s common shares with respect to the period after such sale and prior to the closing of the Block Purchase). All other Paris Re shareholders who sold their common shares to the Company prior to the Share Capital Repayment received a payment of CHF 4.17 for each Paris Re common share sold either in cash or in the form of a promissory note issued by the Company at the time of the acquisition of their Paris Re common shares. On November 3, 2009, the Company paid in full all promissory notes issued to sellers of Paris Re common shares.
The Life segment reported net favorable development on prior accident years of $14 million during the three months ended September 30, 2009 and net favorable development of $11 million during the nine months ended September 30, 2009, primarily due to certain GMDB treaties where the payout is linked to the performance of the underlying capital markets. For the three months and nine months ended September 30, 2008, the Life segment reported net adverse development on prior accident years of $5 million and $10 million, respectively, primarily due to certain GMDB treaties. See Results by Segment below.
Management uses certain assumptions and judgments to derive the fair value of its investments, particularly for those assets with significant unobservable inputs, commonly referred to as Level 3 assets. The Company’s Level 3 assets totaled $151.2 million and $95.7 million at September 30, 2009 and December 31, 2008, respectively. For additional information, see Note 4 to Condensed Consolidated Financial Statements included in Item 1 of Part I of this report.
PRE is in the portfolios of John Griffin of Blue Ridge Capital, John Keeley of Keeley Fund Management.
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