PartnerRe Acquires MCR’s Int’.l Renewal Rights; Best Comments

Bermuda’s PartnerRe Ltd. has signed a definitive agreement with the French Monceau Group, effective July 1, 2007, to acquire the renewal rights for the international reinsurance business of Mutuelle Centrale de Reassurance (MCR), the reinsurance subsidiary of the Monceau Group.

PartnerRe explained that the acquisition relates only to the renewal rights for “the reinsurance contracts with non-affiliated insurance companies outside of France.” MCR will be responsible for the run off of the international portfolio. Further details of the transaction, including the compensation terms, were not disclosed.

MCR is a well-established Company, providing reinsurance solutions to companies affiliated with the Monceau Group, as well as non-affiliated insurance companies. It has been particularly successful in establishing long-term relationships with insurance clients in Europe.

A.M. Best Co. commented that MCR’s “A-” (Excellent) rating and the issuer credit rating of “a-” would “remain unchanged following the announcement of the cession of the renewal rights for its international reinsurance business to Partner Re.”

The Monceau Group’s decision to sell the renewal rights follows a strategic revue. It has determined to “concentrate its capabilities and resources on the insurance and French reinsurance business,” said PartnerRe’s announcement.

Under the terms of the agreement MCR will recommend PartnerRe as continuing reinsurer for its non- French reinsurance participations. Partner Re said this “business aligns well ” with its present global operations, “and will be incorporated within PartnerRe’s Global (Non-U.S.) P & C and Worldwide Specialty sub-segments, as well as the Life segment.”

Some MCR employees, especially from its underwriting staff, are also expected to join PartnerRe.

Commenting further on the sale of the renewal rights, Best noted that “MCR will continue to write French business, focusing on attracting small mutual companies into the Monceau group.” Best also indicated that the “transaction is likely to improve MCR’s risk-adjusted capitalization at the 2008 renewal.”