Back to top

Analyst Blog

Ahead of its fourth-quarter earnings release, the board of property-casualty and life reinsurer – PartnerRe Ltd. (PRE - Analyst Report) approved a 5% hike in its regular quarterly dividend payout to 67 cents per share from the prior 64 cents, now shelling out $2.68 per share annually.

The raised quarterly dividend will be paid on Feb 28, 2014 to shareholders of record as on Feb 18. Following the announcement, shares of PartnerRe rose 2.5% to $100.09 on Thursday. At this closing price, the company’s dividend yield stands at 2.67%, up from prior 2.56%, thereby increasing shareholder return.

PartnerRe has a history of consistent payment of excess capital to its shareholders. The current hike marks the 21st consecutive year of dividend increasesince the company’s commencement. Previously, in Feb 2013, the company had raised its regular dividend by 3% to 64 cents per share from the prior payout of 62 cents.

Meanwhile, in September last year, the board had also sanctioned a new stock repurchase program for 6.0 million shares. The accretive impact of share repurchases also enhances book value and earnings on a per share basis.

Moreover, increased capital deployment reflects the company’s efficient operational synergies and prudent risk management. A low level of debt obligations and zero long-term debt further supports the disposition of excess capital.

Earnings Review

PartnerRe is scheduled to release its earnings after the closing bell on Feb 3, 2014.

Meanwhile, the Zacks Consensus Estimate for 2013 have risen 2.7% to $12.90 per share in the last 60 days. Moreover, the estimate for 2014 moved north by 4% to $9.84 a share during the same period.

However, the estimate for 2014 implies a year-over-year plunge of 23.7%, reflecting headwinds from renewals data issued earlier this week. With the estimates showing no clear directional pressure on the stock in the near term, currently PartnerRe bears a Zacks Rank #3 (Hold).

We prefer to remain on the sidelines with regards to PartnerRe for the time being. However, some better-ranked insurers include Aspen Insurance Holdings Ltd. (AHL), RLI Corp. (RLI - Analyst Report) and Endurance Specialty Holdings Ltd. (ENH - Snapshot Report). All these stocks sport a Zacks Rank #1 (Strong Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SIGNET JEWE… SIG 116.37 +7.72%
CHYRONHEGO… CHYR 2.72 +5.84%
US SILICA H… SLCA 70.72 +4.00%
MALLINCKROD… MNK 80.11 +2.32%
RF MICRO DE… RFMD 11.76 +2.31%