- Second Quarter Operating Earnings
per share of $2.35; Net Loss per share of $2.16
- Second Quarter Annualized Operating
ROE of 7.5%; Annualized Net Loss ROE of 6.8%
- Half Year Operating Earnings per
share of $5.39; Net Income per share of $2.64
- Half Year Annualized Operating ROE
of 8.5%; Annualized Net Income ROE of 4.2%
- Book Value of $127.24 per share,
down 2.0% for the quarter and up 0.8% year-to-date
- Tangible Book Value of $115.90 per
share, down 2.1% for the quarter and up 1.0% year-to-date
PartnerRe Ltd. (NYSE:PRE) today reported a net loss of $103.1
million, or $2.16 per share for the second quarter of 2015. This
includes net after-tax realized and unrealized losses on
investments of $217.2 million, or $4.55 per share. Net income for
the second quarter of 2014 was $257.7 million, or $5.02 per share,
including net after-tax realized and unrealized gains on
investments of $123.7 million, or $2.41 per share. The Company
reported operating earnings of $112.5 million, or $2.35 per share,
for the second quarter of 2015. This compares to operating earnings
of $133.5 million, or $2.60 per share, for the second quarter of
2014.
Net income for the first six months of 2015 was $128.6 million,
or $2.64 per share. This includes net after-tax realized and
unrealized losses on investments of $116.9 million, or $2.39 per
share. Net income for the first six months of 2014 was $553.3
million, or $10.64 per share. This includes net after-tax realized
and unrealized gains on investments of $239.6 million, or $4.61 per
share. Operating earnings for the first six months of 2015 were
$263.0 million, or $5.39 per share. This compares to operating
earnings of $310.4 million, or $5.97 per share, for the first six
months of 2014.
Operating earnings or loss excludes certain net after-tax
realized and unrealized investment gains and losses, net after-tax
foreign exchange gains and losses, certain net after-tax interest
in results of equity method investments, the loss on redemption of
preferred shares and certain net after-tax withholding tax on
inter-company dividends (included in other expenses), and is
calculated after the payment of preferred dividends. All references
to per share amounts in the text of this press release are on a
fully diluted basis.
Commenting on results, PartnerRe Interim Chief Executive Officer
David Zwiener said, “We continued to see challenging market
conditions during the second quarter, both in terms of persistent
competitive reinsurance pressures and difficult financial markets.
Nevertheless, we posted strong technical results in the quarter,
which when combined with our first quarter performance, resulted in
an operating ROE of 8.5%. As you saw from our press release earlier
this month, our tangible book value per share was impacted by
increases in longer term risk-free rates both in the U.S. and
Europe, resulting in a significant mark-to-market loss on our
investment portfolio. For the year to date, however, our tangible
book value is up 1%.”
Mr. Zwiener added, “As we look ahead to the important fall
renewal season, we are encouraged by the success of the current
June/July renewals, which accounts for approximately 10% of our
Non-Life treaty business. Despite continued competitive pressures,
we saw some initial signs that markets are beginning to stabilize,
and we wrote a number of profitable new treaties. This speaks to
our strong market presence, the quality of our client
relationships, and underscores the strength of the PartnerRe
franchise.”
Highlights for the second quarter and first six months of 2015
compared to the same periods in 2014 include:
Results of operations:
- For the second quarter, net premiums
written of $1.3 billion were down 7%. On a constant foreign
exchange basis, net premiums written were flat with a decrease
reported in the Catastrophe Non-life sub-segment, which was almost
entirely offset by increases in the Life and Health segment and, to
a lesser extent, the North America and Global (Non-U.S.) P&C
Non-life sub-segments. For the first six months of 2015, net
premiums written of $3.0 billion were down 6%. On a constant
foreign exchange basis, net premiums written were flat with
increases reported in the Life and Health segment and, to a lesser
extent, the Global (Non-U.S.) P&C Non-life sub-segment, which
were almost entirely offset by decreases in the Catastrophe and
North America Non-life sub-segments.
- For the second quarter, net premiums
earned of $1.3 billion were down 2%. On a constant foreign exchange
basis, net premiums earned were up 5% primarily due to the North
America Non-life sub-segment and the Life and Health segment. These
increases were partially offset by a decrease in the Catastrophe
Non-life sub-segment. For the first six months of 2015, net
premiums earned of $2.6 billion were down 2%. On a constant foreign
exchange basis, net premiums earned were up 4%, primarily due to
the Life and Health segment and the Global Specialty Non-life
sub-segment.
- For the second quarter, the Non-life
combined ratio was 90.3%. The combined ratio benefited from
favorable prior year development of 17.1 points (or $173 million).
All Non-life sub-segments experienced net favorable development
from prior accident years during the second quarter of 2015. For
the first six months of 2015, the Non-life combined ratio was
86.7%. The combined ratio benefited from favorable prior year
development of 20.4 points (or $398 million). All Non-life
sub-segments experienced net favorable development on prior
accident years during the first six months of 2015.
- For the second quarter and first six
months, other expenses of $130 million and $254 million,
respectively, include $9 million and $40 million, respectively, of
costs related to the amalgamation with Axis Capital, pre-tax, or
$0.19 and $0.82, respectively, per diluted share, pre-tax. In
addition, other expenses for the second quarter and first six
months include $25 million, pre-tax, of costs related to the
negotiated earn-out consideration paid to the former shareholders
of Presidio Reinsurance Group, Inc., or $0.53 and $0.52,
respectively, per diluted share, pre-tax.
- For the second quarter, net investment
income of $120 million was down 8%. On a constant foreign exchange
basis, net investment income was down by 3% primarily driven by
lower reinvestment rates. For the first six months of 2015, net
investment income of $225 million was down 9%. On a constant
foreign exchange basis, net investment income was down by 5%
primarily reflecting lower reinvestment rates.
- For the second quarter and first six
months, pre-tax net realized and unrealized investment losses were
$256 million and $140 million, respectively, primarily reflecting
increases in longer-term U.S. and European risk-free rates.
- For the second quarter, the effective
tax rate on operating earnings and non-operating losses was 16.4%
and 15.3%, respectively. For the first six months of 2015, the
effective tax rate on operating earnings and non-operating losses
was 16.9% and (4.7)%, respectively.
Balance sheet and capitalization:
- Total investments, cash and funds held
– directly managed were $16.8 billion at June 30, 2015, down
2% compared to December 31, 2014, primarily reflecting the
impacts of foreign exchange and increases in longer-term U.S. and
European risk-free rates.
- Net Non-life loss and loss expense
reserves were $9.3 billion at June 30, 2015, down 2% compared
to December 31, 2014, primarily reflecting the impacts of
foreign exchange.
- Net policy benefits for life and
annuity contracts were $2.1 billion at June 30, 2015, up 1%
compared to December 31, 2014, primarily due to the growth of
the business, which was partially offset by the impacts of foreign
exchange.
- Total capital was $7.9 billion at
June 30, 2015, flat compared to December 31, 2014, as a
result of net income for the first six months being almost entirely
offset by common and preferred dividend payments and share
repurchases.
- Total shareholders’ equity attributable
to PartnerRe was $7.1 billion at June 30, 2015, flat compared
to December 31, 2014, due to the same factors described above
for total capital.
- Book value per common share was $127.24
at June 30, 2015, up 0.8% compared to $126.21 at
December 31, 2014. Tangible book value per common share was
$115.90 at June 30, 2015, up 1.0% compared to $114.76 at
December 31, 2014. The increases were primarily driven by net
income, which was partially offset by common and preferred dividend
payments.
Segment and sub-segment highlights for the second quarter and
first six months of 2015 compared to the same period in 2014
include:
Non-life:
- For the second quarter, the Non-life
segment’s net premiums written were down 9%. On a constant foreign
exchange basis, net premiums written were down 3% with the decrease
reported in the Catastrophe sub-segment, which was partially offset
by modest increases in the North America and Global (Non-U.S.
P&C) sub-segments. For the first six months of 2015, the
Non-life segment’s net premiums written were down 8%. On a constant
foreign exchange basis, net premiums written were down 3% with the
decrease reported in the Catastrophe and North America sub-segments
and was partially offset by a modest increase in the Global
(Non-U.S. P&C) sub-segment.
- For the second quarter, the North
America sub-segment’s net premiums written were up 2%. On a
constant foreign exchange basis, net premiums written were up 3%
with the increase driven by new business and timing differences
primarily in the agriculture and casualty lines of business,
partially offset by cancellations in the casualty and structured
property lines of business and higher premiums retroceded to the
Company's third-party capital vehicle, Lorenz Re. This sub-segment
reported a technical ratio of 93.5%, which included 10.1 points (or
$44 million) of net favorable prior year loss development. For the
first six months of 2015, the North America sub-segment’s net
premiums written were down 5%, primarily due to cancellations,
non-renewals and participation decreases across various lines of
business, and higher premiums retroceded to Lorenz Re. These
decreases were partially offset by contributions from new business
written in prior periods primarily in the casualty, agriculture and
property lines of business. This sub-segment reported a technical
ratio of 86.8%, which included 16.3 points (or $126 million) of net
favorable prior year loss development.
- For the second quarter, the Global
(Non-U.S.) P&C sub-segment’s net premiums written were down 7%.
On a constant foreign exchange basis, net premiums written were up
6% primarily due to new business written across all lines of
business, which was partially offset by downward prior year premium
adjustments in the property and motor lines of business and
cancellations in the motor line of business. This sub-segment
reported a technical ratio of 99.1%, which included 6.4 points (or
$10 million) of net favorable prior year loss development. For the
first six months of 2015, the Global (Non-U.S.) P&C
sub-segment’s net premiums written were down 8%. On a constant
foreign exchange basis, net premiums written were up 2% primarily
due to the same factors describing the second quarter. This
sub-segment reported a technical ratio of 98.8%, which included 8.5
points (or $28 million) of net favorable prior year loss
development.
- For the second quarter, the Global
Specialty sub-segment’s net premiums written were down 8%. On a
constant foreign exchange basis, net premiums written were flat
which reflects new business written across multiple lines of
business in prior periods, which was partially offset by downward
prior year premium adjustments and cancellations in various lines
of business. This sub-segment reported a technical ratio of 80.2%,
which included 29.4 points (or $110 million) of net favorable prior
year loss development. For the first six months of 2015, the Global
Specialty sub-segment’s net premiums written were down 7%. On a
constant foreign exchange basis, net premiums written were flat
which reflects new business written across multiple lines of
business in prior periods and lower premiums ceded under the
Company's retrocessional program, which were partially offset by
downward prior year premium adjustments, reduced participations and
cancellations in various lines of business. This sub-segment
reported a technical ratio of 76.2%, which included 29.7 points (or
$220 million) of net favorable prior year loss development.
- For the second quarter, the Catastrophe
sub-segment’s net premiums written were down 48%. On a constant
foreign exchange basis, net premiums written were down by 44%
primarily due to higher premiums ceded under the Company's
retrocessional program to Lorenz Re, cancellations, non-renewals
and timing differences. This sub-segment reported a favorable
technical ratio of (13.3%), which included 21.4 points (or $9
million) of net favorable prior year loss development. For the
first six months of 2015, the Catastrophe sub-segment’s net
premiums written were down 21%. On a constant foreign exchange
basis, net premiums written were down 16% primarily due to the same
factors describing the second quarter. This sub-segment reported a
technical ratio of 17.5%, which included 23.1 points (or $24
million) of net favorable prior year loss development.
Life and Health:
- For the second quarter, the Life and
Health segment’s net premiums written were up 1%. On a constant
foreign exchange basis, net premiums written were up 10% with the
increase primarily driven by an increase in our participation on a
significant longevity treaty and new short-term business written in
the mortality line. For the first six months of 2015, the Life and
Health segment’s net premiums written were up 6%. On a constant
foreign exchange basis, net premiums written were up 14% primarily
driven by PartnerRe Health’s accident and health line of business
and the increased participation on a significant longevity treaty
as described in the second quarter above.
- For the second quarter, the Life and
Health segment’s allocated underwriting result, which includes
allocated investment income and other expenses, increased to $26
million compared to $18 million in the same period of 2014. This
increase was primarily due to a higher level of favorable prior
year loss development from the Company's short-term mortality and
accident and health lines of business. For the first six months of
2015, the Life and Health segment’s allocated underwriting result,
which includes allocated investment income and other expenses,
increased to $51 million compared to $32 million in the same period
of 2014 primarily due to the same factors describing the second
quarter.
Corporate and Other:
- For the second quarter, investment
activities contributed losses of $144 million to pre-tax net loss,
excluding investment income allocated to the Life and Health
segment. Of this amount, income of $104 million was included in
pre-tax operating earnings and a loss of $248 million related to
net realized and unrealized losses on investments and earnings from
equity method investee companies was included in pre-tax
non-operating losses. For the first six months of 2015, investment
activities contributed income of $63 million to pre-tax net income,
excluding investment income allocated to the Life and Health
segment. Of this amount, income of $198 million was included in
pre-tax operating earnings and losses of $135 million related to
net realized and unrealized losses on investments and earnings from
equity method investee companies was included in pre-tax
non-operating losses.
Separately, as announced by the Company earlier today, the Board
of Directors declared a quarterly dividend of $0.70 per common
share. The dividend will be payable on September 1, 2015 to common
shareholders of record on August 7, 2015.
The Company has posted its second quarter 2015 financial
supplement on its website www.partnerre.com in the Financial Information
section of the Investor Relations page under Supplementary
Financial Data, which includes a reconciliation of GAAP and
non-GAAP measures.
The Company will hold a dial-in conference call and question and
answer session with investors at 10 a.m. Eastern tomorrow, July 28.
Investors and analysts are encouraged to call in 15 minutes prior
to the commencement of the call. The conference call can be
accessed by dialing (888)-637-7707 or, from outside the United
States, by dialing (913)-312-6670. The media are invited to listen
to the call live over the Internet on the Investor Relations
section of PartnerRe’s web site, www.partnerre.com. To listen to the webcast,
please log on to the broadcast at least five minutes prior to the
start.
_________________________________________
Net income/loss per share is defined as net income/loss
attributable to PartnerRe common shareholders divided by the
weighted average number of fully diluted shares outstanding for the
period. Net income/loss attributable to PartnerRe common
shareholders is defined as net income/loss attributable to
PartnerRe less preferred dividends and loss on redemption of
preferred shares.
Operating earnings/loss is defined as net income/loss available
to PartnerRe common shareholders excluding certain after-tax net
realized and unrealized gains/losses on investments, after-tax net
foreign exchange gains/losses, the loss on redemption of preferred
shares, certain after-tax interest in earnings/losses of equity
method investments and certain after-tax withholding taxes on
inter-company dividends (included in other expenses). Operating
earnings/loss per share is defined as operating earnings/loss
divided by the weighted average number of fully diluted shares
outstanding for the period.
The Company uses operating earnings, diluted operating earnings
per share and annualized operating return on beginning diluted book
value per common and common share equivalents outstanding to
measure performance, as these measures focus on the underlying
fundamentals of our operations without the impact of after-tax net
realized and unrealized gains/losses on investments (except where
the Company has made a strategic investment in an insurance or
reinsurance related investee), after-tax net foreign exchange
gains/losses, the after-tax interest in earnings/losses of equity
method investments (except where the Company has made a strategic
investment in an insurance or reinsurance related investee and
where the Company does not control the investees activities) and
certain after-tax withholding taxes on inter-company dividends
(included in other expenses).
The Company uses technical ratio and technical result as
measures of underwriting performance. The technical ratio is
defined as the sum of the loss and acquisition ratios. These
metrics exclude other expenses.
The Company also uses combined ratio to measure results for the
Non-life segment. The combined ratio is the sum of the technical
and other expense ratios.
The Company uses allocated underwriting result as a measure of
underwriting performance for its Life and Health operations. This
metric is defined as net premiums earned, other income or loss and
allocated net investment income less life policy benefits,
acquisition costs and other expenses.
The Company uses total capital, which is defined as total
shareholders’ equity attributable to PartnerRe, long-term debt,
senior notes and CENts, to manage the capital structure of the
Company.
The Company calculates Tangible Book Value using common
shareholders’ equity attributable to PartnerRe less goodwill and
intangible assets, net of tax. The Company calculates Diluted
Tangible Book Value per Common Share using Tangible Book Value
divided by the number of PartnerRe common shares and common share
equivalents outstanding. The Company uses these measures as the
basis for its prime measure of long-term financial performance
(annualized growth in Diluted Tangible Book Value per Common Share
plus dividends).
_____________________________________________
PartnerRe Ltd. is a leading global reinsurer, providing
multi-line reinsurance to insurance companies. The Company, through
its wholly owned subsidiaries, also offers capital markets products
that include weather and credit protection to financial, industrial
and service companies. Risks reinsured include property, casualty,
motor, agriculture, aviation/space, catastrophe, credit/surety,
engineering, energy, marine, specialty property, specialty
casualty, multi-line and other lines in its Non-life operations,
mortality, longevity and accident and health in its Life and Health
operations, and alternative risk products. For the year ended
December 31, 2014, total revenues were $6.5 billion. At
June 30, 2015, total assets were $22.5 billion, total capital
was $7.9 billion and total shareholders’ equity attributable to
PartnerRe was $7.1 billion.
PartnerRe on the Internet: www.partnerre.com
Forward-looking statements contained in this press release
are based on the Company’s assumptions and expectations concerning
future events and financial performance and are made pursuant to
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Such statements are subject to significant
business, economic and competitive risks and uncertainties that
could cause actual results to differ materially from those
reflected in the forward-looking statements. PartnerRe’s
forward-looking statements could be affected by numerous
foreseeable and unforeseeable events and developments such as
exposure to catastrophe, or other large property and casualty
losses, credit, interest, currency and other risks associated with
the Company’s investment portfolio, adequacy of reserves, levels
and pricing of new and renewal business achieved, changes in
accounting policies, risks associated with implementing business
strategies, and other factors identified in the Company’s filings
with the Securities and Exchange Commission. In light of the
significant uncertainties inherent in the forward-looking
information contained herein, readers are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the dates on which they are made. The Company disclaims
any obligation to publicly update or revise any forward-looking
information or statements.
Important Information For Investors And Shareholders
This communication does not constitute an offer to buy or sell
or the solicitation of an offer to buy or sell any securities or a
solicitation of any vote or approval. This communication relates to
a proposed business combination between PartnerRe Ltd.
(“PartnerRe”) and AXIS Capital Holdings Limited
(“AXIS”). In connection with this proposed business
combination, PartnerRe and AXIS have filed a registration statement
on Form S-4 with the Securities and Exchange Commission (the
“SEC”), and a definitive joint proxy statement/prospectus of
PartnerRe and AXIS and other documents related to the proposed
transaction. This communication is not a substitute for any such
documents. The registration statement was declared effective by the
SEC on June 1, 2015 and the definitive proxy statement/prospectus
has been mailed to shareholders of PartnerRe and AXIS. INVESTORS
AND SECURITY HOLDERS OF PARTNERRE AND AXIS ARE URGED TO READ THE
REGISTRATION STATEMENT, JOINT PROXY STATEMENT/PROSPECTUS AND OTHER
DOCUMENTS THAT HAVE BEEN OR MAY BE FILED WITH THE SEC CAREFULLY AND
IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT
INFORMATION. A definitive proxy statement has been mailed to
shareholders of PartnerRe and AXIS. Investors and security holders
may obtain free copies of these documents and other documents filed
with the SEC by PartnerRe and/or AXIS through the website
maintained by the SEC at http://www.sec.gov. Copies of the
documents filed with the SEC by PartnerRe are available free of
charge on PartnerRe’s internet website at http://www.partnerre.com
or by contacting PartnerRe’s Investor Relations Director by email
at robin.sidders@partnerre.com or by phone at 1-441-294-5216.
Copies of the documents filed with the SEC by AXIS are available
free of charge on AXIS’ internet website at
http://www.axiscapital.com or by contacting AXIS’ Investor
Relations Contact by email at linda.ventresca@axiscapital.com or by
phone at 1-441-405-2727.
Participants in Solicitation
PartnerRe, AXIS, their respective directors and certain of their
respective executive officers may be considered participants in the
solicitation of proxies in connection with the proposed
transaction. Information about the directors and executive officers
of PartnerRe is set forth in its Annual Report on Form 10-K for the
year ended December 31, 2014, which was filed with the SEC on
February 26, 2015, its proxy statement for its 2014 annual meeting
of stockholders, which was filed with the SEC on April 1, 2014, its
Quarterly Report on Form 10-Q for the quarter ended March 31, 2015,
which was filed with the SEC on May 4, 2015 and its Current Reports
on Form 8-K, which were filed with the SEC on January 29, 2015, May
16, 2014 and March 27, 2014. Information about the directors and
executive officers of AXIS is set forth in its Annual Report on
Form 10-K for the year ended December 31, 2014, which was filed
with the SEC on February 23, 2015, its proxy statement for its 2014
annual meeting of stockholders, which was filed with the SEC on
March 28, 2014, its Quarterly Report on Form 10-Q for the quarter
ended March 31, 2015, which was filed with the SEC on May 4, 2015
and its Current Reports on Form 8-K, which were filed with the SEC
on March 11, 2015, January 29, 2015, August 7, 2014, June 26, 2014,
March 27, 2014 and February 26, 2014.
These documents can be obtained free of charge from the sources
indicated above. Additional information regarding the participants
in the proxy solicitations and a description of their direct and
indirect interests, by security holdings or otherwise, is contained
in the joint proxy statement/prospectus and other relevant
materials filed with the SEC.
Forward Looking Statements
Certain statements in this communication regarding the proposed
transaction between PartnerRe and AXIS are “forward-looking”
statements. The words “anticipate,” “believe,” “ensure,” “expect,”
“if,” “illustrative,” “intend,” “estimate,” “probable,” “project,”
“forecasts,” “predict,” “outlook,” “aim,” “will,” “could,”
“should,” “would,” “potential,” “may,” “might,” “anticipate,”
“likely” “plan,” “positioned,” “strategy,” and similar expressions,
and the negative thereof, are intended to identify forward-looking
statements. These forward-looking statements, which are subject to
risks, uncertainties and assumptions about PartnerRe and AXIS, may
include projections of their respective future financial
performance, their respective anticipated growth strategies and
anticipated trends in their respective businesses. These statements
are only predictions based on current expectations and projections
about future events. There are important factors that could cause
actual results, level of activity, performance or achievements to
differ materially from the results, level of activity, performance
or achievements expressed or implied by the forward-looking
statements, including the risk factors set forth in PartnerRe’s and
AXIS’ most recent reports on Form 10-K, Form 10-Q and other
documents on file with the SEC and the factors given below:
• the failure to obtain the approval of shareholders of
PartnerRe or AXIS in connection with the proposed transaction;
• the failure to consummate or delay in consummating the
proposed transaction for other reasons;
• the timing to consummate the proposed transaction;
• the risk that a condition to closing of the proposed
transaction may not be satisfied;
• the risk that a regulatory approval that may be required for
the proposed transaction is delayed, is not obtained, or is
obtained subject to conditions that are not anticipated;
• AXIS’ or PartnerRe’s ability to achieve the synergies and
value creation contemplated by the proposed transaction;
• the ability of either PartnerRe or AXIS to effectively
integrate their businesses; and
• the diversion of management time on transaction-related
issues.
PartnerRe’s forward-looking statements are based on assumptions
that PartnerRe believes to be reasonable but that may not prove to
be accurate. AXIS’ forward-looking statements are based on
assumptions that AXIS believes to be reasonable but that may not
prove to be accurate. Neither PartnerRe nor AXIS can guarantee
future results, level of activity, performance or achievements.
Moreover, neither PartnerRe nor AXIS assumes responsibility for the
accuracy and completeness of any of these forward-looking
statements. PartnerRe and AXIS assume no obligation to update or
revise any forward-looking statements as a result of new
information, future events or otherwise, except as may be required
by law. Readers are cautioned not to place undue reliance on these
forward-looking statements that speak only as of the date
hereof.
PartnerRe Ltd. Consolidated Statements of Operations and
Comprehensive (Loss) Income (Expressed in thousands of U.S.
dollars, except share and per share data) (Unaudited)
For the threemonths
endedJune 30, 2015
For the threemonths endedJune 30, 2014
For the sixmonths
endedJune 30, 2015
For the sixmonths endedJune 30, 2014
Revenues Gross premiums written
$ 1,432,012
$ 1,462,307
$ 3,180,946 $
3,334,047 Net premiums written
$ 1,322,304 $
1,418,665
$ 2,975,519 $ 3,157,159 Decrease (increase)
in unearned premiums
5,522 (65,596 )
(412,972 ) (550,308 ) Net premiums
earned
1,327,826 1,353,069
2,562,547 2,606,851 Net
investment income
120,192 129,967
224,823 246,834 Net
realized and unrealized investment (losses) gains
(255,734
) 165,717
(140,089 ) 307,888 Other income
236 9,265
4,528
9,669
Total revenues
1,192,520 1,658,018
2,651,809 3,171,242
Expenses
Losses and loss expenses and life policy benefits
864,917
883,846
1,586,198 1,633,303 Acquisition costs
283,463
302,573
559,254 567,181 Other expenses (1)
129,766
107,072
254,516 218,534 Interest expense
12,248
12,240
24,493 24,477 Amortization of intangible assets
6,767 7,003
13,535 14,005 Net foreign exchange losses
(gains)
6,391 (2,023 )
(6,756 ) (2,693 )
Total expenses
1,303,552 1,310,711
2,431,240 2,454,807
(Loss) income before taxes and interest
in earnings of equity methodinvestments
(111,032 ) 347,307
220,569 716,435 Income tax
(benefit) expense
(13,844 ) 78,440
65,821
140,746 Interest in earnings of equity method investments
8,633 4,925
4,795
10,989
Net (loss) income (88,555
) 273,792
159,543 586,678 Net income attributable to
noncontrolling interests
(354 ) (1,951
)
(2,536 ) (4,995 )
Net (loss)
income attributable to PartnerRe (88,909 )
271,841
157,007 581,683 Preferred dividends
14,184 14,184
28,367
28,367
Net (loss) income attributable to
PartnerRe common shareholders $ (103,093 )
$ 257,657
$ 128,640 $ 553,316
Operating earnings attributable to PartnerRe common
shareholders $ 112,494 $ 133,508
$ 263,030 $ 310,418
Comprehensive
(loss) income attributable to PartnerRe $ (81,913
) $ 288,630
$ 160,846 $ 583,023
Earnings and dividends per share data
attributable to PartnerRe commonshareholders:
Basic operating earnings
$ 2.35 $ 2.66
$
5.52 $ 6.09 Net realized and unrealized investment (losses)
gains, net of tax
(4.55 ) 2.46
(2.45 )
4.70 Net foreign exchange losses, net of tax
(0.10 )
(0.06 )
(0.44 ) (0.08 ) Interest in earnings of
equity method investments, net of tax
0.14
0.07
0.07 0.15
Basic net (loss) income
$ (2.16 ) $ 5.13
$ 2.70 $ 10.86 Weighted average
number of common shares outstanding
47,773,371 50,241,216
47,650,042 50,942,980 Diluted operating earnings (1)
$ 2.35 $ 2.60
$ 5.39 $ 5.97 Net
realized and unrealized investment (losses) gains, net of tax
(4.55 ) 2.41
(2.39 ) 4.61 Net foreign
exchange losses, net of tax
(0.10 ) (0.06 )
(0.43 ) (0.08 ) Interest in earnings of equity method
investments, net of tax
0.14 0.07
0.07 0.14 Diluted net
(loss) income
$ (2.16 ) $ 5.02
$
2.64 $ 10.64
Weighted average number of common shares
and common shareequivalents outstanding
47,773,371 51,328,761
48,785,437 52,024,451 Dividends
declared per common share
$ 0.70 $ 0.67
$
1.40 $ 1.34 (1) Other expenses for the three months and six
months ended June 30, 2015 include $9 million and $40 million,
respectively, of costs related to the amalgamation with Axis,
pre-tax, or $0.19 and $0.82, respectively, per diluted share,
pre-tax. In addition, other expenses for the three months and six
months ended June 30, 2015 include $25 million, pre-tax, related to
the negotiated earn-out consideration paid to the former
shareholders of Presidio Reinsurance Group, Inc., or $0.53 and
$0.52, respectively, per diluted share, pre-tax.
PartnerRe
Ltd. Consolidated Balance Sheets
(Expressed in thousands of U.S. dollars,
except per share and parenthetical share and per share data)
(Unaudited)
June 30, December 31,
2015 2014
Assets Investments: Fixed
maturities, at fair value
$ 13,349,772 $ 13,918,745
Short-term investments, at fair value
19,244 25,678
Equities, at fair value
1,006,551 1,056,514 Other invested
assets
340,267 298,827
Total
investments 14,715,834 15,299,764 Funds held – directly
managed
594,870 608,853 Cash and cash equivalents
1,492,997 1,313,468 Accrued investment income
139,772
158,737 Reinsurance balances receivable
3,055,308 2,454,850
Reinsurance recoverable on paid and unpaid losses
342,074
246,158 Funds held by reinsured companies
688,358 765,905
Deferred acquisition costs
733,184 661,186 Deposit assets
72,442 92,973 Net tax assets
55,214 6,876 Goodwill
456,380 456,380 Intangible assets
146,069 159,604
Other assets
39,321 45,603
Total assets $ 22,531,823 $ 22,270,357
Liabilities Unpaid losses and loss expenses
$
9,549,398 $ 9,745,806 Policy benefits for life and annuity
contracts
2,087,369 2,050,107 Unearned premiums
2,207,674 1,750,607 Other reinsurance balances payable
234,175 182,395 Deposit liabilities
48,475 70,325 Net
tax liabilities
246,618 240,989 Accounts payable, accrued
expenses and other
254,982 304,728 Debt related to senior
notes
750,000 750,000 Debt related to capital efficient
notes
70,989 70,989
Total
liabilities 15,449,680 15,165,946
Shareholders’ Equity Common shares (par value $1.00;
issued: 2015 and 2014, 87,237,220 shares)
87,237 87,237
Preferred shares (par value $1.00; issued
and outstanding: 2015 and 2014, 34,150,000 shares; aggregate
liquidationvalue: 2015 and 2014, $853,750)
34,150 34,150 Additional paid-in capital
3,965,490
3,949,665 Accumulated other comprehensive loss
(30,244
) (34,083 ) Retained earnings
6,297,968 6,270,811
Common shares held in treasury, at cost (2015, 39,401,311 shares;
2014, 39,400,936 shares)
(3,274,675 )
(3,258,870 )
Total shareholders’ equity attributable to
PartnerRe 7,079,926 7,048,910 Noncontrolling interests
2,217 55,501
Total
shareholders’ equity 7,082,143
7,104,411
Total liabilities and shareholders’ equity
$ 22,531,823 $ 22,270,357
Diluted
Book Value Per Common Share and Common Share Equivalents
Outstanding (1) (2) $ 127.24 $
126.21
Diluted Tangible Book Value Per Common Share and
Common Share Equivalents Outstanding (1) (2) $
115.90 $ 114.76
Number of Common Shares and
Common Share Equivalents Outstanding (2)
48,932,758 49,087,412 (1)
Excludes the aggregate liquidation value of preferred shares (2015
and 2014, $853,750) and noncontrolling interests (2015, $2,217;
2014, $55,501). (2) Common share and common share equivalents
outstanding are calculated using the Treasury Method for all
potentially dilutive shares.
PartnerRe Ltd. Segment
Information (Expressed in millions of U.S. dollars) (Unaudited)
For the three months ended June 30,
2015
NorthAmerica
Global(Non-U.S.)P&C
GlobalSpecialty
Catastrophe
TotalNon-lifesegment
Lifeand
Healthsegment
Corporateand Other
Total Gross premiums written $ 427 $ 143 $ 406 $ 122
$ 1,098 $ 334 $ — $ 1,432 Net premiums written $ 401 $ 137 $ 400 $
71 $ 1,009 $ 313 $ — $ 1,322 Decrease (increase) in unearned
premiums 34 22 (26) (27) 3
3 — 6 Net premiums earned $ 435 $ 159 $ 374 $
44 $ 1,012 $ 316 $ — $ 1,328 Losses and loss expenses and life
policy benefits (296) (121) (198) 10 (605) (260) — (865)
Acquisition costs (111) (36) (102) (4)
(253) (30) — (283)
Technical
result $ 28 $ 2 $ 74
$ 50 $ 154 $ 26 $
— $ 180 Other income — — — — Other expenses
(55) (16) (59) (130)
Underwriting
result $ 99 $ 10 n/a
$ 50 Net investment income 16 104
120
Allocated underwriting result (1) $
26 n/a n/a Net realized and unrealized
investment losses (256) (256) Interest expense (12) (12)
Amortization of intangible assets (7) (7) Net foreign exchange
losses (6) (6) Income tax benefit 14 14 Interest in earnings of
equity method investments 8 8
Net loss
n/a $ (89) Loss ratio (2) 68.1 % 75.9 % 53.0 %
(21.5) % 59.8 % Acquisition ratio (3) 25.4 23.2
27.2 8.2 25.0 Technical ratio (4) 93.5 % 99.1
% 80.2 % (13.3) % 84.8 % Other expense ratio (5) 5.5
Combined ratio (6) 90.3 %
For the three months ended June 30,
2014
NorthAmerica
Global(Non-U.S.)P&C
GlobalSpecialty
Catastrophe
TotalNon-lifesegment
Lifeand
Healthsegment
Corporateand Other
Total Gross premiums written $ 400 $ 155 $ 438 $ 143
$ 1,136 $ 326 $ — $ 1,462 Net premiums written $ 392 $ 148 $ 432 $
136 $ 1,108 $ 311 $ — $ 1,419 (Increase) decrease in unearned
premiums (2) 39 (26) (77) (66)
— — (66) Net premiums earned $ 390 $ 187 $ 406
$ 59 $ 1,042 $ 311 $ — $ 1,353 Losses and loss expenses and life
policy benefits (240) (103) (270) (19) (632) (252) — (884)
Acquisition costs (102) (52) (98) (8)
(260) (43) — (303)
Technical
result $ 48 $ 32 $ 38
$ 32 $ 150 $ 16 $
— $ 166 Other income 1 3 5 9 Other expenses
(61) (16) (30) (107)
Underwriting
result $ 90 $ 3 n/a $
68 Net investment income 15 115 130
Allocated underwriting result (1) $ 18
n/a n/a Net realized and unrealized investment gains
166 166 Interest expense (12) (12) Amortization of intangible
assets (7) (7) Net foreign exchange gains 2 2 Income tax expense
(78) (78) Interest in earnings of equity method investments
5 5
Net income n/a $ 274
Loss ratio (2) 61.5 % 54.6 % 66.5 % 33.4 % 60.6 % Acquisition ratio
(3) 26.1 27.9 24.2 13.0 25.0
Technical ratio (4) 87.6 % 82.5 % 90.7 % 46.4 % 85.6 % Other
expense ratio (5) 5.9 Combined ratio (6) 91.5 % (1)
Allocated underwriting result is defined as net premiums
earned, other income or loss and allocated net investment income
less life policy benefits, acquisition costs and other expenses.
(2) Loss ratio is obtained by dividing losses and loss expenses by
net premiums earned. (3) Acquisition ratio is obtained by dividing
acquisition costs by net premiums earned. (4) Technical ratio is
defined as the sum of the loss ratio and the acquisition ratio. (5)
Other expense ratio is obtained by dividing other expenses by net
premiums earned. (6) Combined ratio is defined as the sum of the
technical ratio and the other expense ratio.
PartnerRe Ltd.
Segment Information (Expressed in millions of U.S. dollars)
(Unaudited)
For the six months ended June 30,
2015
NorthAmerica
Global(Non-U.S.)P&C
GlobalSpecialty
Catastrophe
TotalNon-lifesegment
Lifeand
Healthsegment
Corporateand Other
Total Gross premiums written $ 900 $ 477 $ 833 $ 312
$ 2,522 $ 659 $ — $ 3,181 Net premiums written $ 872 $ 468 $ 762 $
247 $ 2,349 $ 626 $ — $ 2,975 Increase in unearned premiums
(98 ) (135 ) (23 ) (145 ) (401 )
(12 ) — (413 ) Net premiums earned $ 774 $ 333
$ 739 $ 102 $ 1,948 $ 614 $ — $ 2,562 Losses and loss expenses and
life policy benefits (468 ) (240 ) (369 ) (10 ) (1,087 ) (499 ) —
(1,586 ) Acquisition costs (204 ) (89 ) (194 )
(8 ) (495 ) (64 ) — (559
)
Technical result $ 102 $ 4
$ 176 $ 84 $ 366 $
51 $ — $ 417 Other income — 1 3
4 Other expenses (107 ) (31 ) (116 )
(254 )
Underwriting result $ 259 $
21 n/a $ 167 Net investment income
30 195 225
Allocated
underwriting result (1) $ 51 n/a
n/a Net realized and unrealized investment losses (140 )
(140 ) Interest expense (25 ) (25 ) Amortization of intangible
assets (14 ) (14 ) Net foreign exchange gains 7 7 Income tax
expense (65 ) (65 ) Interest in earnings of equity method
investments 5 5
Net income
n/a $ 160 Loss ratio (2)
60.4 % 72.0 % 49.9 % 9.9 % 55.8 % Acquisition ratio (3) 26.4
26.8 26.3 7.6
25.4 Technical ratio (4) 86.8 % 98.8 % 76.2 % 17.5 %
81.2 % Other expense ratio (5) 5.5 Combined ratio (6)
86.7 %
For the six months ended June 30,
2014
NorthAmerica
Global(Non-U.S.)P&C
GlobalSpecialty
Catastrophe
TotalNon-lifesegment
Lifeand
Healthsegment
Corporateand Other
Total Gross premiums written $ 930 $ 519 $ 917 $ 353
$ 2,719 $ 615 $ — $ 3,334 Net premiums written $ 919 $ 508 $ 822 $
315 $ 2,564 $ 593 $ — $ 3,157 Increase in unearned premiums
(151 ) (141 ) (61 ) (177 ) (530 )
(20 ) — (550 ) Net premiums earned $
768 $ 367 $ 761 $ 138 $ 2,034 $ 573 $ — $ 2,607 Losses and loss
expenses and life policy benefits (499 ) (196 ) (471 ) 1 (1,165 )
(468 ) — (1,633 ) Acquisition costs (194 ) (107 )
(178 ) (15 ) (494 ) (73 ) —
(567 )
Technical result $ 75
$ 64 $ 112 $ 124 $
375 $ 32 $ — $ 407
Other income 2 4 4 10 Other expenses (126 ) (34 )
(59 ) (219 )
Underwriting result $
251 $ 2 n/a $ 198 Net
investment income 30 217 247
Allocated underwriting result (1) $
32 n/a n/a Net realized and unrealized
investment gains 308 308 Interest expense (25 ) (25 ) Amortization
of intangible assets (14 ) (14 ) Net foreign exchange gains 3 3
Income tax expense (141 ) (141 ) Interest in earnings of equity
method investments 11 11
Net
income n/a $ 587 Loss
ratio (2) 65.0 % 53.5 % 61.9 % (0.9 ) % 57.3 % Acquisition ratio
(3) 25.2 29.0 23.4
11.4 24.3 Technical ratio (4) 90.2 % 82.5 %
85.3 % 10.5 % 81.6 % Other operating ratio (5) 6.2
Combined ratio (6) 87.8 %
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150727006219/en/
PartnerRe Ltd.(441) 292-0888Investor Contact: Robin
SiddersMedia Contact: Celia PowellorSard Verbinnen &
Co(212) 687-8080Drew Brown/Robin Weinberg
Partnerre (NYSE:PRE)
Historical Stock Chart
From Mar 2024 to Apr 2024
Partnerre (NYSE:PRE)
Historical Stock Chart
From Apr 2023 to Apr 2024
