Partner Re’s 1Q 2006 results improve over 1Q 2005

PartnerRe Ltd.’s 1Q 2006 results compare favorably with those of the 1Q 2005 results, thanks to a relative absence of large losses during the 2006 first quarter, the reinsurer reported recently.Last year, Partner Re (NYSE: PRE) suffered losses as a result of the Suncor explosion in Calgary and US$63 million in losses when Winterstorm Erwin swept across Northern Europe in January 2005.The company’s non-life combined ratio was 97% during 1Q 2005. During 1Q 2006, PartnerRe’s COR was 87.8%Commenting on the first quarter 2006 results, PartnerRe president and CEO Patrick Thiele said: “Our results this quarter were favorably impacted by a low level of large loss activity, as shown by a 21% 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%.”Our GAAP book value per share increased 3.5% 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% per year, and to building shareholder value over the long term.”Overall, the reinsurer reported a net income of US$193.2 million, or $3.21 per share on a fully diluted basis, for the first quarter of 2006. This net income includes net after-tax realized gains on investments of US$50.9 million or $0.89 per share. In comparison, net income for the first quarter of 2005 was US$111.4 million or $1.84 per share. Net premiums written decreased from US$1.4 million in 1Q 2005 to US$1.3 million in 1Q 2006.