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PartnerRe Ltd. (NYSE: PRE) today announced that during the January 1, 2013 treaty renewal season it expects to write and bind approximately $2.0 billion of Non-Life treaty premium. On a constant foreign exchange basis, this represents an increase of 12% from the renewable premium base. The Company renews approximately 60% percent of its total annual Non-Life treaty business on January 1.
The renewal data does not include U.S. agriculture premium which renews later in the first quarter of 2013. The Company expects to write approximately $400 million of U.S. agriculture premium, including MPCI and crop hail, although the ultimate amount may vary significantly from this initial estimate. The 2012 U.S. agriculture portfolio was approximately $220 million.
The renewal numbers relate to reinsurance treaty business only. In addition to treaty reinsurance, the Company writes facultative business. Renewal dates for facultative are more evenly distributed during the year than renewal dates for treaty business. During 2013, the Company expects to write approximately $390 million of facultative business.
PartnerRe President & Chief Executive Officer Costas Miranthis said, “We are very pleased with the outcome of the January 1 renewal. Against a background of generally improving primary insurance and largely stable reinsurance terms, PartnerRe’s strong global franchise, long-term relationships, and technical capabilities served us well. We were able to grow our participations with a number of existing clients, add a number of new relationships, all while maintaining the same overall risk appetite.”
Mr. Miranthis added, “The success of the January 1 Non-life portfolio renewal, in addition to the recent acquisition of the Presidio specialty accident and health underwriting platform, provides us with a very strong foundation to execute our strategy in 2013 and beyond.”
The table below outlines PartnerRe’s January 1, 2013 Non-Life treaty renewals.
PartnerRe January 1, 2013 Non-Life Treaty Renewal(amounts are in U.S. $ millions and are on a constant foreign exchange basis)
In Process / Extensions
Renewal Changes/New Business
Total Estimated Premium
In Process / Potential New
PartnerRe is scheduled to release fourth quarter and full year 2012 results after the close of trading on Wednesday, February 6, 2013. PartnerRe Management will conduct a conference call and webcast on Thursday, February 7, 2013 at 10:00 a.m. Eastern to discuss results and provide additional information on the January 1, 2013 renewals.