PartnerRe Ltd.’s (PRE) Losses In Chile Expected To Severely Impact the First-Quarter
March 09, 2010 3:39 PM
Analysts Michael Paisan and Mariza Costa at Stifel Nicolaus have released an update on PartnerRe Ltd. (NYSE: PRE).
The company provided an estimate of its losses from the earthquake in Chile, and Xynthia in Western Europe, on Monday. The company expects losses of $220-$320 million, and $40-$70 million from the Chilean earthquake,and Xynthia, respectively.
According to analysts, the Chilean earthquake will be a major burden on the reinsurance market, and PartnerRe will be heavily exposed to it given its multiple exposure from its recent acquisition of PARIS Re business as well as through its cat, and non-US property segments.
However, analysts believe that the company is currently trading at a discount. According to analysts, the company continues to develop a solid footprint and has demonstrated the discipline and acumen in navigating through all cycles. Analysts at Stifel Nicolaus continue to rate PartnerRe Ltd. as a Buy, with a price target of $95.
