The cost of global energy giant Enron's bankruptcy continues to send waves through the insurance industry, and yesterday PartnerRe said it expected the company's collapse to cost the insurer $34 million after tax.

In a statement released yesterday, the company said: "The aggregate limits of its exposures to Enron Corporation are approximately $49 million on a pre-tax basis, and $34 million after tax."

The bulk of PartnerRe's exposures relate to surety reinsurance contracts. Exposures to various liability reinsurance coverages and investment losses are not material, the company said.

PartnerRe said that at this point in time the company is not in a position to accurately estimate the actual losses, if any, it may incur under its various reinsurance contracts. Various contingencies may affect the amount and the timing of actual claims, if any.

These include developments in the Enron bankruptcy proceedings, the nature of Enron's obligations supported by surety bonds and Enron's performance under these obligations, and potential recoveries by PartnerRe's reinsureds in mitigation of their losses.

Other Bermuda companies that have admitted exposure to Enron's bankruptcy include Everest Re which expects to be hit with a $25 million claim, as well as XL Capital which said it will be only minimally affected by Enron's bankruptcy.

ACE Ltd. has also said it does not expect that exposure to Enron's losses will have a significant impact on the business.

Enron's collapse could also have an effect in the weather hedging market which has been developing in Bermuda and elsewhere.

Trade magazine Business Insurance reported in its December 10 issue that Enron had between 25 and 30 percent of the market.

"It definitely will have an impact," Christopher J. Phelan, managing director of Bermuda-based Commercial Risk Capital Markets, told the magazine. "The near term impact is that a number of (weather market) players have exposure to Enron."

And he said buyers of weather risk protection will be more "credit-conscious".