PartnerRe's profits soared - doubling in the first quarter of 2003, after the Bermuda reinsurer saw a 50 percent growth in net written premiums in what it dubbed an “excellent” quarter.

The company attributed the growth - which saw business written rise to over $1 billion for the first time for the quarter - to superior ratings, a strong market presence and good pricing.

Profits or net income for the first three months of the year rose from $63.3 million in the first quarter of 2002 to $124.6 million for the same period this year.

“We had an excellent first quarter, with strong growth in all segments and results in line with the ambitious targets we have set for ourselves,” said Patrick Thiele, president and chief executive officer of the company. “We achieved an annualised operating return on equity of 18 percent while maintaining a superior balance sheet.”

PartnerRe, which is based in Pitts Bay Road, for the three months ended March 31, 2003, reported net income was $2.23 per share on a fully diluted basis. The company said its net income includes a net after-tax realised gain on investments of $38.5 million or $0.72 per share.

Net income for the first quarter of 2002, including a net after-tax realised loss on investments of $8.5 million, was $63.3 million or $1.13 per share.

Operating earnings for the first quarter 2003 were $81.2 million or $1.51 per share on a fully diluted basis. Operating earnings exclude net realised investment gains or losses and are calculated after payment of preferred dividends. This compares to operating earnings of $66.8 million, or $1.29 per share for the first quarter of 2002.

Mr. Thiele added: “Growth in net written premium was significant in the first quarter of 2003, representing a 50 percent increase over the first quarter of 2002 and the first time we have exceeded the $1 billion level during a quarter.

“This was the result of several factors, including our superior ratings and strong market presence, good pricing across all our lines of business, a positive foreign exchange impact and the timing of renewals. We continue to expect, however, that the growth rate for the year will be in the range of 25 percent to 30 percent.”

Total revenues increased 72 percent in the quarter to $911.4 million, including $806.2 million of net premiums earned, net investment income of $61.7 million, and net realised investment gains of $41.0 million. For the first quarter of 2002, revenues were $531.0 million, with $479.5 million of net premiums earned, net investment income of $58.7 million, and net realised investment losses of $7.9 million.

Mr. Thiele said: “Our Non-Life segment performed well, with a combined ratio of 94.6 percent. We are also taking advantage of dislocations in the life market and, as a result, life premiums are up by more than 100 percent compared to last year. “We continue to generate strong cash flow from our reinsurance operations, with cash flow from operations of $234 million this quarter, contributing to meaningful growth in invested assets.”

At March 31, 2003, total assets were $10.0 billion, total capitalisation was $2.8 billion, and total shareholders' equity was $2.2 billion. This compares to total assets of $8.7 billion, total capitalisation of $2.7 billion, and total shareholders' equity of $2.1 billion at December 31, 2002. Book value per common share was $35.54 on a fully diluted basis, compared to $34.02 per share at December 31, 2002.

Mr. Thiele added: “As PartnerRe enters its tenth year in operation, the company has grown into one of the world's leading reinsurers and is well positioned to take advantage of virtually all market opportunities. Our growing franchise, strong ratings, products and coverages are in increased demand across the globe.

“The superior results achieved this quarter - in particular the 18 percent annualised operating return on beginning equity and 22 percent increase in operating income - are clear indicators that PartnerRe is benefiting from the increasing flight to quality.

“We remain confident that we will achieve our previously communicated plan for 2003 of at least $3.3 billion in premiums written, an operating return on equity of at least 17 percent, and minimum operating earnings per share of $5.70, barring any large catastrophes or unusual loss events.”