Partnerre Ltd. · OTC:PREJF
Partnerre — Investor Presentation (November 2006)
11 slides from Partnerre's investor presentation, Nov 1, 2006
Slide 1: RAA Underwriting Committee
RAA Underwriting Committee PartnerRe Global, Tad Walker November 1, 2006
Slide 2: Cat Market Drivers
RAA Underwriting Committee November 1, 2006 2 Cat Market Drivers Long Term Concentration of values continuing to create demand in peak zones Global market is imbalanced and constrains ability to achieve broad diversification Capital is increasingly fluid with capital markets seeking easy entry
Slide 3: Catastrophe Market Conditions 2006
RAA Underwriting Committee November 1, 2006 3 Catastrophe Market Conditions 2006 U.S. market extremely tight: “Crunch Time” Cat market for U.S. wind tighter than at any point in recent history (including post Andrew) Price increases of 200% were not uncommon Programs went unplaced despite pric
Slide 4: Factors Driving Market Conditions (U.S.)
RAA Underwriting Committee November 1, 2006 4 Factors Driving Market Conditions (U.S.) Changing Assumptions Underwriting view on frequency of Atlantic storms shifted from long term average (+100 yrs), to near term horizon (5 years) Modeling companies adjusted models up significantly to reflect a
Slide 5: Supply & Demand Shifts in selected U.S. Cat National Accounts 2005:2006
RAA Underwriting Committee November 1, 2006 5 Supply & Demand Shifts in selected U.S. Cat National Accounts 2005:2006 Limit Demand purchased ROL 2006 in 2006 Supply P2 2005 Unplaced Limit Placed Placed purchased in 2005 Unplaced Placed P1 61% Supply 2006 80% Demand 2005 Retention Retention Quantity
Slide 6: Traditional Market Response: Selected Bermuda Markets
RAA Underwriting Committee November 1, 2006 6 Traditional Market Response Selected Bermuda Markets 700 600 Tim Re & Starbound Re 500 Written Premium (USD mio) 400 CAT Gross 300 200 100 - Ren Re Davinci Axis(Re) Par t ner Re Mont pelier Re Endur ance Ar ch( Re) Plat inum PXRE CAT GWP (USD mio) 6 mont
Slide 7: Post Katrina Capital Raising
RAA Underwriting Committee November 1, 2006 7 Post Katrina Capital Raising 14 12 10 US$ Billions 8 6 4 2 0 Re-Caps Start Ups Side Cars Cat Bonds Source: Benfield Industry Analysis & Research
Slide 8: Capital Markets Reinsurance Plays
RAA Underwriting Committee November 1, 2006 8 Capital Markets Reinsurance Plays Model Ease of Entry Liquidity Risk Classes Easy entry Highly liquid Diversified reinsurance risk, Liquid Existing Traded securities Management/operating risk, Reinsurance Companies Past exposure, Asset risk Underwriting
Slide 9: Post-Katrina P&C Securitisations
RAA Underwriting Committee November 1, 2006 9 Post-Katrina P&C Securitisations (Re)insurer Name/jurisdiction Amount Risk covered/Details Date announced Lloyd’s Thunderbird Re Open ended US windstorm and quake TBA. Framework created FM Global Cascadia II $300mn North American earthquake Aug-06 Tokio
Slide 10: Post-Katrina Sidecars
RAA Underwriting Committee November 1, 2006 10 Post-Katrina Sidecars Name Affiliate FC* Capital Notes Bay Point Re Harbor Point No $150mn Goldman Sachs advised on vehicle Blue Ocean Re Montpelier Re Yes $365mn Montpelier Re invested $133mn in retro arm Castlepoint Re Tower Group No $265mn A- rated b
Slide 11: Capital Raising
RAA Underwriting Committee November 1, 2006 11 Capital Raising 25 Cat bonds Sidecars 20 Recapitalisation Capital raised USDbn Start-ups 15 12.6 6.1 10 7.9 5 3.1 8.3 7.6 2.3 6.0 0.5 0 1992/3 2001/2 2005/6 1992/3 2001/2 2005/6 1992/3 2001/2 2005/6 Recaps and Start ups Sidecars Cat Bonds Source: Benfie