Bermuda-based reinsurer PartnerRe has announced it will be raising $200 million of new capital through selling 8 million Series J Preferred Shares.
The shares have a 4.875% fixed rate with a liquidation value of $25.00 per share.
It expects to receive net proceeds from this offering of approximately $194 million, after the underwriting discount and estimated expenses.
The reinsurer will be using the net proceeds from this offering for general corporate purposes, which may include the redemption or repurchase in part of PartnerRe’s issued and outstanding preferred shares.
This announcement comes after it reported a net income of $204 million and $206 million for the fourth-quarter and full-year 2020, respectively, while the impacts of catastrophe events during the year and the ongoing pandemic pushed down its underwriting performance.
The net income for the quarter improved from the net loss posted a year earlier and included net realised and unrealised investment gains of $20 million on fixed maturities and short-term investments, and $103 million of net foreign exchange losses.
Update: PartnerRe announced that it completed this capital raise successfully, selling 8 million shares of its 4.875% Fixed Rate Non-Cumulative Redeemable Preferred Shares, Series J, for gross proceeds of $200 million.
The Series J Preferred Shares are expected to trade on the New York Stock Exchange under the symbol “PRE PR J”.