PartnerRe Ltd. (PRE, Financial) filed Quarterly Report for the period ended 2010-09-30.
Partnerre Ltd. has a market cap of $6.2 billion; its shares were traded at around $82 with a P/E ratio of 9.13 and P/S ratio of 1.14. The dividend yield of Partnerre Ltd. stocks is 2.44%.PRE is in the portfolios of Chuck Royce of Royce& Associates, John Keeley of Keeley Fund Management, Donald Smith of Donald Smith & Co., Donald Smith of Donald Smith & Co., George Soros of Soros Fund Management LLC, Paul Tudor Jones of The Tudor Group, Jeremy Grantham of GMO LLC, Steven Cohen of SAC Capital Advisors.
Net cash used in financing activities of $510 million for the nine months ended September 30, 2010 was primarily related to share repurchases ($682 million), repayment of debt ($200 million) and dividends on common and preferred shares ($143 million), partially offset by the issuance of the Senior Notes of $500 million.
On May 14, 2010, the Company entered into an agreement to modify an existing credit facility. Under the terms of the agreement, this credit facility was increased from a $100 million unsecured credit facility to a $250 million combined credit facility, with the initial $100 million being unsecured and any utilization above the initial $100 million being secured. This credit facility matures on May 14, 2011, and can be extended automatically to May 14, 2012.
On July 16, 2010, the Company terminated its existing $660 million five-year syndicated unsecured credit facility, which had a maturity date of September 30, 2010, and entered into a new $750 million three-year syndicated unsecured credit facility. The new facility has the following terms: (i) a maturity date of July 16, 2013, (ii) a $250 million accordion feature, which enables the Company to potentially increase its available credit from $750 million to $1 billion, and (iii) a minimum consolidated tangible net worth requirement. The Companys ability to increase its available credit to $1 billion is subject to the agreement of the credit facility participants. The Companys breach of any of the covenants would result in an event of default, upon which the Company may be required to repay any outstanding borrowings and replace or cash collateralize letters of credit issued under this facility. The Company was in compliance with all of the covenants as of September 30, 2010. The new facility is predominantly used for the issuance of letters of credit, although the Company and its subsidiaries have access to a revolving line of credit of up to $375 million as part of this facility.
On April 28, 2010, under the terms of the amendment to the forward sale agreement with the forward counterparty, the remaining $200 million forward sale agreement matured. Subsequent to maturity and commencing on April 28, 2010, there was a 40 day valuation period, whereby the Company could deliver up to 3.4 million common shares over the valuation period, subject to a minimum price per share of $59.05 and a maximum price per share of $84.15. As a result of the Companys share price trading between the minimum and the maximum price per share during the valuation period, the Company did not deliver any common shares to the forward counterparty.
Interest rate movements also affect the economic value of the Companys outstanding debt obligations and preferred securities in the same way that they affect the Companys fixed income investments, and this can result in a liability whose economic value is different from the value reported in the Consolidated Balance Sheets. In March 2010, the Company issued $500 million aggregate principal amount of 5.500% Senior Notes. The fair value of the $500 million Senior Notes at September 30, 2010, of $510 million, was based on quoted market prices. The fair value of the Companys other outstanding debt obligations and preferred securities, has not changed materially compared to December 31, 2009. For additional information see Note 4 to the Unaudited Condensed Financial Statements in Item 1 of Part I of this report and Item 7A of Part II of the Companys Annual Report on Form 10-K for the year ended December 31, 2009.
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Partnerre Ltd. has a market cap of $6.2 billion; its shares were traded at around $82 with a P/E ratio of 9.13 and P/S ratio of 1.14. The dividend yield of Partnerre Ltd. stocks is 2.44%.PRE is in the portfolios of Chuck Royce of Royce& Associates, John Keeley of Keeley Fund Management, Donald Smith of Donald Smith & Co., Donald Smith of Donald Smith & Co., George Soros of Soros Fund Management LLC, Paul Tudor Jones of The Tudor Group, Jeremy Grantham of GMO LLC, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
Cash flows from operations for the nine months ended September 30, 2010 increased to $865 million from $775 million in the same period in 2009. The increase in cash flows from operations in the nine months ended September 30, 2010 compared to the same period in 2009 was primarily due to higher net investment and underwriting cash flows and was partially offset by an increase in taxes and foreign exchange. The increase in net investment cash flows reflects contributions from Paris Re and increased net investment income from a higher asset base and higher yielding investments. Although paid losses in the nine months ended September 30, 2010 were higher than paid losses in the same period of 2009 (due to the inclusion of Paris Res paid losses), the Companys net cash inflows from underwriting activities have increased.Net cash used in financing activities of $510 million for the nine months ended September 30, 2010 was primarily related to share repurchases ($682 million), repayment of debt ($200 million) and dividends on common and preferred shares ($143 million), partially offset by the issuance of the Senior Notes of $500 million.
On May 14, 2010, the Company entered into an agreement to modify an existing credit facility. Under the terms of the agreement, this credit facility was increased from a $100 million unsecured credit facility to a $250 million combined credit facility, with the initial $100 million being unsecured and any utilization above the initial $100 million being secured. This credit facility matures on May 14, 2011, and can be extended automatically to May 14, 2012.
On July 16, 2010, the Company terminated its existing $660 million five-year syndicated unsecured credit facility, which had a maturity date of September 30, 2010, and entered into a new $750 million three-year syndicated unsecured credit facility. The new facility has the following terms: (i) a maturity date of July 16, 2013, (ii) a $250 million accordion feature, which enables the Company to potentially increase its available credit from $750 million to $1 billion, and (iii) a minimum consolidated tangible net worth requirement. The Companys ability to increase its available credit to $1 billion is subject to the agreement of the credit facility participants. The Companys breach of any of the covenants would result in an event of default, upon which the Company may be required to repay any outstanding borrowings and replace or cash collateralize letters of credit issued under this facility. The Company was in compliance with all of the covenants as of September 30, 2010. The new facility is predominantly used for the issuance of letters of credit, although the Company and its subsidiaries have access to a revolving line of credit of up to $375 million as part of this facility.
On April 28, 2010, under the terms of the amendment to the forward sale agreement with the forward counterparty, the remaining $200 million forward sale agreement matured. Subsequent to maturity and commencing on April 28, 2010, there was a 40 day valuation period, whereby the Company could deliver up to 3.4 million common shares over the valuation period, subject to a minimum price per share of $59.05 and a maximum price per share of $84.15. As a result of the Companys share price trading between the minimum and the maximum price per share during the valuation period, the Company did not deliver any common shares to the forward counterparty.
Interest rate movements also affect the economic value of the Companys outstanding debt obligations and preferred securities in the same way that they affect the Companys fixed income investments, and this can result in a liability whose economic value is different from the value reported in the Consolidated Balance Sheets. In March 2010, the Company issued $500 million aggregate principal amount of 5.500% Senior Notes. The fair value of the $500 million Senior Notes at September 30, 2010, of $510 million, was based on quoted market prices. The fair value of the Companys other outstanding debt obligations and preferred securities, has not changed materially compared to December 31, 2009. For additional information see Note 4 to the Unaudited Condensed Financial Statements in Item 1 of Part I of this report and Item 7A of Part II of the Companys Annual Report on Form 10-K for the year ended December 31, 2009.
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