PartnerRe last week announced it expects to write and bind approximately $2 billion of non-life premium during the January 1 renewal season.

The non-life renewal does not include the resinsurance firm's non-life facultative business or its life operations due to renewal dates for both being distributed evenly throughout the year.

Typically, about 55 to 60 percent of the total annual non-life treaty business is expected to be renewed on January 1.

On a constant foreign exchange basis, the January 1 renewals would represent a three percent increase over total renewable expiring premium totalling $1.95 billion.

PartnerRe president and CEO Patrick Thiele said: "Overall, we are pleased with the January 1 renewal. We found the market to be increasingly competitive but still rational, which is characteristic of a market in transition.

"We were able to hold production flat despite falling prices in most major markets and despite continued retention of premium by cedants."

To date, from a renewable premium base of approximately $1.95 billion, $1.8 billion has been resolved with $123 million in process, meaning that renewal negotiations have not been concluded.

Of the $1.8 million resolved renewal premium, $275 million was not renewed. The non-renewed premium includes approximately $188 million, or 10 percent, of the resolved renewable base which was removed from the market as a result of cedants' decisions to retain more of their business, or restructure quota share coverages to excess of loss treaties, which provide less premium.

In addition, PartnerRe declined to renew approximately $87 million, or five percent of expiring premiums, due to pricing or terms and conditions that did not meet the company's objectives.

Renewal increases were primarily the result of increased participations and exposure growth on existing treaties as pricing was generally on the decline.

In addition, new business totaled $257 million, which was partly the result of the acquisition of the renewal rights of the international reinsurance business of the French Monceau Group, while there is an estimated $195 million of new and renewal business in process which is expected to be bound within the next month.

More than half of that is new and renewal treaties in the US agriculture book.

Mr. Thiele added: "Aside from isolated pockets of increased demand and market turmoil, such as US agriculture, most lines of business continued on a downward trend, as was expected.