PartnerRe has announced the conclusion of a voluntary severance plan for Paris-based employees following last year's acquisition of French reinsurer Paris Re.

PartnerRe has now completed the integration of Paris Re employees into the company's new operational structure, which was implemented to enable the merged companies to carry out the July 1, 2010 renewal as a single entity.

The Bermuda-based reinsurer expects to record approximately $34 million or 43 cents per diluted share in additional pre-tax expenses for the second quarter of 2010. This charge includes all expenses related to the voluntary severance plan and the company does not anticipate initiating any additional voluntary or involuntary severance plans.

Employees participating in the voluntary plan have leaving dates over the next 18 months and will continue to receive salary and other employment benefits until they leave the company.

Meanwhile AM Best Co. has commented that the financial strength rating of A+ (superior) and issuer credit ratings (ICR) of "aa-" of PartnerRe Group and its members remain unchanged following the company's recently announced management changes, which were reported in The Royal Gazette yesterday.

Concurrently, Best has commented that the ICR of "a-" and debt ratings of PartnerRe's parent, PartnerRe Ltd. are also the same. The outlook for all ratings is stable.

The ratings agency believes that any potential concerns regarding the number and/or significance of the recent management changes have been largely mitigated by the depth of experience, the continuity and the length of the transition period provided.