The board of property-casualty and life reinsurer -
) approved and authorized a new stock repurchase worth 6.0
million shares. The latest sanction, to be effective immediately
replaces the 6.0 million share repurchase authorized in March
PartnerRe bought back about 3.7 million shares for $332
million during the second quarter of 2013. Overall, the company
had repurchased 5.5 million shares in the first half of 2013 for
$492 million, while an additional 0.4 million shares were bought
back for $32 million in the month of July.
This left the company with about 1.1 million shares available
for repurchase from the prior authorization. Moreover, PartnerRe
has approximately 32.4 million common shares, which were held in
treasury and are now available for re-issuance.
Steady Capital Deployment
The decision reflects the company's trend of returning wealth
to its shareholders from time to time, depending on market
conditions. PartnerRe continues to return additional value to its
shareholders through stock buybacks and dividend payments.
Despite the economic turmoil that adversely affected financials
in the past, the company returned about $1.1 billion of wealth in
2010, $396.2 million in 2011 and $532.9 million in 2012 through
Moreover, PartnerRe increased its annual dividend payout by 9%
in Apr 2011, followed by a 3% hike in Feb 2012 and another 3%
accretion in Feb 2013. The latest hike represents the 21
consecutive year of dividend rise since the company's
We believe that low level of debt obligations and no long-term
debt appears secure. Additionally, total debt plus preferred
interests to total capital ratio is expected to remain modestly
around 25% for the next couple of years, making PartnerRe's
balance sheet risk-free and enhancing operating leverage.
A stable ratings outlook affirmation from A.M. Best, S&P,
Moody's Investor Service and Fitch Ratings further validates the
company's overall operational synergies, competitive strength,
steady capital generation and risk management capabilities. This
is also satisfactory when compared with its peer group.
While PartnerRe carries a Zacks Rank #3 (Hold), other insurers
that are outperforming include
Global Indemnity Plc
EMC Insurance Group Inc.
). All these stocks carry a Zacks Rank #1 (Strong Buy).
EMC INSURANCE (EMCI): Free Stock Analysis
GLOBAL INDEMNTY (GBLI): Free Stock Analysis
PARTNERRE LTD (PRE): Free Stock Analysis
EVEREST RE LTD (RE): Free Stock Analysis
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