PartnerRe predicts its 2008 Q3 combined ratio will be 95-96%

**CLARIFICATION** PartnerRe was earlier reported to have predicted an industry combined ratio of between 95-96%, when in fact the company was predicting its own combined ratio.

PartnerRe Ltd. (NYSE: PRE) predicts its 2008 Q3 combined ratio (COR) will be 95-96%, and its COR for the nine months ended Sept. 30, 2008 will be 91-92%.
In addition, PartnerRe estimates its 2008 Q3 shareholders’ equity will amount to up to US$4.1 billion.
“In advance of the start of the January 2009 renewal season, we are releasing these numbers early to demonstrate that our integrated approach to risk management has worked in the most tumultuous period in recent times,” PartnerRe president and CEO Patrick Thiele said in a statement. “Despite being impacted by one of the worst hurricanes in history, we were able to maintain underwriting profitability in the quarter and year-to-date.
“And despite the dramatic decline of the global stock markets, the collapse of a number of major financial institutions, extreme volatility in foreign exchange rates, and a significant increase in credit spreads, which lead to ‘mark to market’ declines in our fixed income investment holdings, our capital and reserve positions remain on a par with levels at Sept. 30, 2007, even after share repurchases and dividends.”
Prior to releasing its 2008 Q3 outlook, PartnerRe announced the implementation of a forward sale agreement entered into in 2005.
“Under the terms of the forward sale agreement, PartnerRe expects to deliver [3.4-million] common shares to an affiliate of Citigroup over a 40-day valuation period for a total of no less than [US]$200 million,” the company announced.
Thiele said of the transaction: “The range forward transaction of 2005 has proven to be an efficient component of our capital structure.
“We will continue to manage our capital to provide the optimal balance of financial strength for our clients and superior returns for our shareholders.
“The current dislocation in the capital markets may drive the need for additional reinsurance capacity. With our superior financial strength, ratings and franchise, PartnerRe continues to be well positioned to provide high quality capacity to the marketplace.”