PartnerRe Ltd. (NYSE: PRE) today announced the formation of Lorenz Re Ltd., a Special Purpose Insurer domiciled in Bermuda. Lorenz Re was capitalized with $75 million through the issuance of multiple classes of preference shares. It will provide additional capacity to PartnerRe on a diversified portfolio of catastrophe reinsurance treaties over a multi-year period.
Costas Miranthis, President and Chief Executive Officer of PartnerRe said, “Lorenz Re allows us to provide additional capacity to a number of our clients while optimizing the deployment of our capital. Investors will benefit from PartnerRe’s twenty years of experience and expertise in the catastrophe market, as well as access to our diversified portfolio of catastrophe risks.”
Aon Benfield Securities, Inc. acted as advisor on the transaction. Prime Management Limited, a Bermuda company specializing in the administration of investment funds and special purpose insurance vehicles, will serve as the insurance manager of Lorenz Re.
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 in its Non-life operations, mortality, longevity and accident and health in its Life operations, and alternative risk products. For the year ended December 31, 2012, total revenues were $5.6 billion. At December 31, 2012, total assets were $23.0 billion, total capital was $7.7 billion and total shareholders’ equity was $6.9 billion.