A.M. Best Comments on PartnerRe Ltd.`s Planned Acquisition of PARIS RE Holdings Limited

OLDWICK, N.J.--(Business Wire)--
A.M. Best Co. has commented that the financial strength rating of A+ (Superior)
and issuer credit ratings (ICR) of "aa-" of PartnerRe Group (PartnerRe)
(Hamilton, Bermuda) and its members are unchanged. Concurrently, A.M. Best has
commented that the ICR of "a-" and debt ratings ofPartnerRe`s parent, PartnerRe
Ltd. (Hamilton, Bermuda) [NYSE: PRE] also are unchanged by the proposed
transaction following PRE`s announcement that it plans to acquire PARIS RE
Holdings Limited (Paris Re) in an all stock transaction. The outlook for all
ratings is stable.

The transaction is valued at approximately $2.0 billion. The consideration will
be the exchange of 0.3 of PartnerRe shares for each Paris Re share outstanding
after the expected dividend distribution of approximately $ 310 million. The
exchange offer will be structured in two steps. The first step, expected to be
completed during the fourth quarter of 2009, entails PRE purchasing a majority
ownership in Paris Re in a stock-for-stock exchange for the private equity
investor`s approximately 60% stake in Paris Re, gaining board control. The
second step, expected to be completed in the first quarter of 2010, entails an
exchange offering for the remainder of Paris Re stock held by minority
shareholders. The transaction is subject to customary regulatory and shareholder
approvals.

A.M. Best believes that this transaction will further deepen PartnerRe`s
geographic scope and operating scale. Paris Re maintains a strong balance sheet
with the majority of its invested asset base held in fixed income securities of
solid credit quality. Paris Re`s loss reserves prior to accident year 2006 are
guaranteed by its former parent, AXA S.A., which somewhat mitigates the typical
risks of acquiring an insurance company`s liabilities. A.M. Best does believe
that there is integration, operational and treaty overlap risks associated with
this transaction; however, given the relative size of Paris Re, these risks
should be manageable.

The ratings reflect PartnerRe`s excellent business profile, strong risk-adjusted
capitalization and strong enterprise risk management practices. PartnerRe is a
global provider of multi-line reinsurance, and its competitive position benefits
from diversification on both a geographic and product lines basis.

For Best`s Credit Ratings, an overview of the rating process and rating
methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any
additional methodologies and factors that may have been considered, can be found
at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating
organization dedicated to serving the financial and health care service
industries, including insurance companies, banks, hospitals and health care
system providers. For more information, visit www.ambest.com.

A.M. Best Co.
Analysts
Devin Inskeep, 908-439-2200, ext. 5449
devin.inskeep@ambest.com
or
Robert DeRose, 908-439-2200, ext. 5453
robert.derose@ambest.com
or
Public Relations
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com

Copyright Business Wire 2009