- Third Quarter Operating Earnings per
share of $4.42; Net Loss per share of $5.08
- Third Quarter Annualized Operating
ROE of 14.0%; Annualized Net Loss ROE of 16.1%
- Nine Month Operating Earnings per
share of $9.95; Net Loss per share of $2.40
- Nine Month Annualized Operating ROE
of 10.5%; Annualized Net Loss ROE of 2.5%
- Book Value of $120.67 per share,
down 5.2% for the quarter and down 4.4% year-to-date
- Tangible Book Value of $109.46 per
share, down 5.6% for the quarter and down 4.6%
year-to-date
PartnerRe Ltd. (NYSE:PRE) today reported a net loss of $243.3
million, or $5.08 per share for the third quarter of 2015. This
includes the amalgamation termination fee and reimbursement of
expenses paid to Axis Capital of $315.0 million, or $6.58 per
share, and net after-tax realized and unrealized losses on
investments of $121.8 million, or $2.54 per share. Net income for
the third quarter of 2014 was $182.2 million, or $3.60 per share,
including net after-tax realized and unrealized losses on
investments of $35.4 million, or $0.70 per share. The Company
reported operating earnings of $211.6 million, or $4.42 per share,
for the third quarter of 2015. This compares to operating earnings
of $226.7 million, or $4.47 per share, for the third quarter of
2014.
The net loss for the first nine months of 2015 was $114.7
million, or $2.40 per share. This includes the amalgamation
termination fee and reimbursement of expenses paid to Axis Capital
of $315.0 million, or $6.60 per share, and net after-tax realized
and unrealized losses on investments of $238.7 million, or $5.00
per share. Net income for the first nine months of 2014 was $735.5
million, or $14.26 per share. This includes net after-tax realized
and unrealized gains on investments of $204.1 million, or $3.95 per
share. Operating earnings for the first nine months of 2015 were
$474.6 million, or $9.95 per share. This compares to operating
earnings of $537.1 million, or $10.42 per share, for the first nine
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, certain net after-tax withholding tax on
inter-company dividends (included in other expenses) and the
amalgamation termination fee and reimbursement of expenses paid to
Axis Capital (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.
PartnerRe Interim Chief Executive Officer David Zwiener said,
“Our results this quarter reflect a number of factors, most notably
the amalgamation termination fee paid to Axis Capital, and
continued difficult financial and investment markets, both of which
had a negative impact on our book value. Despite the noise, and the
impact of the Chinese Tianjin loss in August, our underlying
results remain strong. All in, we posted a 1.4 point improvement in
our Non-life combined ratio to 82.8% when compared to the third
quarter of 2014. Our Life and Health portfolios also remain strong.
Overall for the third quarter, we recorded an operating ROE of 14%,
which on the back of our solid performance for the first half of
2015, resulted in an operating ROE of 10.5% for the year to
date.”
Commenting on market conditions, PartnerRe President Emmanuel
Clarke, said, “As we look ahead to the important January renewal
season, which accounts for more than 60% of our Non-life treaty
premium, reinsurance markets remain competitive across the board.
In addition, M&A activity is continuing to be a distraction for
some market participants. At PartnerRe, however, we continue to
distinguish ourselves with our clients as a stable and focused
partner with long-term financial flexibility, and a proven track
record of reliability.”
Highlights for the third quarter and first nine months of 2015
compared to the same periods in 2014 include:
Results of operations:
- For the third quarter, net premiums
written of $1.2 billion were down 11%. On a constant foreign
exchange basis, net premiums written were down 5% primarily driven
by decreases reported in the Catastrophe and North America Non-life
sub-segments. For the first nine months of 2015, net premiums
written of $4.2 billion were down 7%. On a constant foreign
exchange basis, net premiums written were down 1% primarily due to
the Catastrophe and North America Non-Life sub-segments. These
decreases were partially offset by an increase in the Life and
Health segment.
- For the third quarter, net premiums
earned of $1.4 billion were down 9%. On a constant foreign exchange
basis, net premiums earned were down 3% primarily due to the
Catastrophe and North America Non-life sub-segments. For the first
nine months of 2015, net premiums earned of $4.0 billion were
down 5%. On a constant foreign exchange basis, net premiums earned
were up 2%, primarily due to the Life and Health segment, and, to a
lesser extent, the Global Specialty and Global (Non-U.S.) P&C
Non-life sub-segments. These increases were partially offset by
decreases in the Catastrophe Non-life sub-segment.
- For the third quarter, the Non-life
combined ratio was 82.8%. The combined ratio benefited from
favorable prior year development of 22.2 points (or $246 million)
and included 5.4 points (or $60 million) of large losses related to
the Tianjin explosion. All Non-life sub-segments experienced net
favorable development from prior accident years during the third
quarter of 2015. For the first nine months of 2015, the
Non-life combined ratio was 85.3%. The combined ratio benefited
from favorable prior year development of 21.0 points (or $644
million) and included 2.0 points (or $60 million) of large losses
related to the Tianjin explosion. All Non-life sub-segments
experienced net favorable development on prior accident years
during the first nine months of 2015.
- For the third quarter, other expenses
of $416 million include the termination fee and reimbursement of
expenses paid to Axis Capital of $315 million, or $6.58 per diluted
share. Additionally, other expenses include other Axis Capital and
Exor transaction related expenses of $7 million, pre-tax, or $0.15
per diluted share, pre-tax. For the first nine months of 2015,
other expenses of $670 million include the termination fee and
reimbursement of expenses paid to Axis Capital of $315 million, or
$6.60 per diluted share. Additionally, other expenses include other
Axis Capital and Exor transaction related expenses of $47 million,
pre-tax, or $0.98 per diluted share, pre-tax, and costs related to
the negotiated earn-out consideration paid to the former
shareholders of Presidio Reinsurance Group, Inc. of $25 million, or
$0.53, per diluted share, pre-tax.
- For the third quarter, net investment
income of $117 million was down 1%. On a constant foreign exchange
basis, net investment income was up 3% reflecting additional income
from higher yielding securities. For the first nine months of 2015,
net investment income of $342 million was down 6%. On a constant
foreign exchange basis, net investment income was down 3% primarily
reflecting lower reinvestment rates.
- For the third quarter and first nine
months of 2015, pre-tax net realized and unrealized investment
losses were $133 million and $273 million, respectively, primarily
reflecting widening U.S. and European credit spreads and decreases
in worldwide equity markets. The losses in net realized and
unrealized investment losses for the third quarter were partially
offset by decreases in longer-term U.S. and European risk-free
rates.
- For the third quarter, the effective
tax rate on operating earnings and non-operating losses was 12.9%
and 3.4%, respectively. For the first nine months of 2015, the
effective tax rate on operating earnings and non-operating losses
was 15.2% and 1.7%, respectively.
Balance sheet and capitalization:
- Total investments, cash and funds held
– directly managed were $16.3 billion at September 30, 2015,
down 5% compared to December 31, 2014. The decrease was
primarily due to cash flows out of the portfolio to fund the
termination fee and reimbursement of expenses paid to Axis Capital,
the impact of the strengthening U.S. dollar, and the widening of
U.S. and European credit spreads.
- Net Non-life loss and loss expense
reserves were $9.3 billion at September 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 September 30, 2015, up
3% compared to December 31, 2014, primarily due to growth in
the business, which was partially offset by the impacts of foreign
exchange.
- Total capital was $7.6 billion at
September 30, 2015, down 3% compared to December 31,
2014, primarily due to the net loss for the first nine months of
2015 and common and preferred dividend payments.
- Total shareholders’ equity attributable
to PartnerRe was $6.8 billion at September 30, 2015, down 4%
compared to December 31, 2014, due to the same factors
described above for total capital.
- Book value per common share was $120.67
at September 30, 2015, down 4% compared to $126.21 at
December 31, 2014. Tangible book value per common share was
$109.46 at September 30, 2015, down 5% compared to $114.76 at
December 31, 2014. The decreases were primarily driven by the
net loss and common and preferred dividend payments.
Segment and sub-segment highlights for the third quarter and
first nine months of 2015 compared to the same period in 2014
include:
Non-life:
- For the third quarter, the Non-life
segment’s net premiums written were down 12%. On a constant foreign
exchange basis, net premiums written were down 7%. For the first
nine months of 2015, the Non-life segment’s net premiums written
were down 10%. On a constant foreign exchange basis, net premiums
written were down 4%. The decreases on a constant foreign exchange
basis for both the third quarter and first nine months of 2015 were
reported in all sub-segments, except for a modest increase in the
Global (Non-U.S.) P&C sub-segment.
- For the third quarter, the North
America sub-segment’s net premiums written were down 10%. On a
constant foreign exchange basis, net premiums written were down 9%
with the decrease driven by cancellations across multiple lines of
business, downward premium adjustments in the agriculture line and
higher premiums ceded in the credit/surety and agriculture lines of
business. This sub-segment reported a technical ratio of 78.1%,
which included 25.1 points (or $102 million) of net favorable prior
year loss development. For the first nine months of 2015, the North
America sub-segment’s net premiums written were down 6%, primarily
due to the same factors describing the third quarter. This
sub-segment reported a technical ratio of 83.8%, which included
19.3 points (or $229 million) of net favorable prior year loss
development.
- For the third 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
5% primarily due to new business written across all lines of
business, which was partially offset by an increased participation
on an existing motor treaty recorded in the same period of 2014.
This sub-segment reported a technical ratio of 92.7%, which
included 20.7 points (or $38 million) of net favorable prior year
loss development, and included 12.1 points (or $22 million) of
large losses related to the Tianjin explosion. For the first nine
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 3% primarily due to new
business written across all lines of business, which was partially
offset by cancellations and downward premium adjustments in the
property and motor lines of business. This sub-segment reported a
technical ratio of 96.6%, which included 12.9 points (or $67
million) of net favorable prior year loss development, and included
4.3 points (or $22 million) of large losses related to the Tianjin
explosion.
- For the third quarter, the Global
Specialty sub-segment’s net premiums written were down 9%. On a
constant foreign exchange basis, net premiums written were down 2%
primarily due to downward premium adjustments in multiple lines of
business and the impact of cancellations in prior periods across
multiple lines of business. These decreases in net premiums written
were partially offset by new business written in prior periods
across multiple lines of business. This sub-segment reported a
technical ratio of 83.2%, which included 25.6 points (or $104
million) of net favorable prior year loss development, and included
4.6 points (or $19 million) of large losses related to the Tianjin
explosion. For the first nine months of 2015, the Global Specialty
sub-segment’s net premiums written were down 8%. On a constant
foreign exchange basis, net premiums written were down 1% primarily
due to cancellations, reduced participations and downward prior
year premium adjustments across multiple lines of business, which
were partially offset by new business written across multiple lines
of business in prior periods and lower premiums ceded under the
Company's retrocessional programs. This sub-segment reported a
technical ratio of 78.7%, which included 28.3 points (or $323
million) of net favorable prior year loss development, and included
1.6 points (or $19 million) of large losses related to the Tianjin
explosion.
- For the third quarter, the Catastrophe
sub-segment’s net premiums written were down 75%. On a constant
foreign exchange basis, net premiums written were down 65%
primarily due to higher premiums ceded under the Company's
retrocessional programs and, to a lesser extent, cancellations and
non-renewals. These decreases in net premiums written were
partially offset by new business. This sub-segment reported a
technical ratio of 33.6%, which included 1.3 points (or $2 million)
of net favorable prior year loss development, and included 14.5
points (or $16 million) of large losses related to the Tianjin
explosion. For the first nine months of 2015, the Catastrophe
sub-segment’s net premiums written were down 29%. On a constant
foreign exchange basis, net premiums written were down 23%
primarily due to the same factors describing the third quarter.
This sub-segment reported a technical ratio of 25.9%, which
included 11.7 points (or $25 million) of net favorable prior year
loss development, and included 7.6 points (or $16 million) of large
losses related to the Tianjin explosion.
Life and Health:
- For the third quarter, the Life and
Health segment’s net premiums written were down 8%. On a constant
foreign exchange basis, net premiums written were up 1% with the
increase primarily driven by PartnerRe Health’s accident and health
line of business, which was partially offset by decreases in the
longevity and mortality lines of business. For the first nine
months of 2015, the Life and Health segment’s net premiums written
were up 1%. On a constant foreign exchange basis, net premiums
written were up 9% primarily driven by PartnerRe Health’s accident
and health line of business, an increase in our participation on a
significant longevity treaty and new short-term business written in
the mortality line.
- For the third quarter, the Life and
Health segment’s allocated underwriting result, which includes
allocated investment income and other expenses, decreased to $18
million compared to $20 million in the same period of 2014. This
decrease was primarily due to adverse prior year loss development
related to the GMDB line of business partially offset by increased
favorable prior year loss development on PartnerRe Health's
accident and health line of business. For the first nine months of
2015, the Life and Health segment’s allocated underwriting result,
which includes allocated investment income and other expenses,
increased to $69 million compared to $52 million in the same period
of 2014 primarily due to an increase in net favorable prior year
loss development.
Corporate and Other:
- For the third quarter, investment
activities contributed losses of $34 million to the pre-tax net
loss, excluding investment income allocated to the Life and Health
segment. Of this amount, income of $100 million was included in
pre-tax operating earnings and a loss of $134 million related to
net realized and unrealized losses on investments and losses from
equity method investee companies was included in pre-tax
non-operating losses. For the first nine months of 2015, investment
activities contributed income of $29 million to the pre-tax net
loss, excluding investment income allocated to the Life and Health
segment. Of this amount, income of $298 million was included in
pre-tax operating earnings and losses of $269 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 December 1, 2015 to common
shareholders of record on November 6, 2015.
The Company has posted its third 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, October
27. 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 (877)-876-9176 or, from outside the United
States, by dialing (785)-424-1667. 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, certain after-tax withholding taxes on
inter-company dividends (included in other expenses) and the
amalgamation termination fee and reimbursement of expenses paid to
Axis Capital (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),
certain after-tax withholding taxes on inter-company dividends
(included in other expenses) and the amalgamation termination fee
and reimbursement of expenses paid to Axis Capital (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
September 30, 2015, total assets were $22.0 billion, total
capital was $7.6 billion and total shareholders’ equity
attributable to PartnerRe was $6.8 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.
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
endedSeptember 30, 2015
For the threemonths endedSeptember 30,
2014
For the ninemonths
endedSeptember 30, 2015
For the ninemonths endedSeptember 30,
2014
Revenues Gross premiums written
$ 1,267,961
$ 1,361,280
$ 4,448,907 $
4,695,327 Net premiums written
$ 1,190,393 $
1,342,690
$ 4,165,912 $ 4,499,849 Decrease (increase)
in unearned premiums
221,737 213,924
(191,235 ) (336,384 ) Net
premiums earned
1,412,130 1,556,614
3,974,677
4,163,465 Net investment income
117,054 118,176
341,877 365,010 Net realized and unrealized investment
(losses) gains
(133,017 ) (34,420 )
(273,107
) 273,468 Other income
3,056
2,223
7,584 11,892
Total revenues 1,399,223
1,642,593
4,051,031 4,813,835
Expenses Losses and loss expenses and life policy
benefits
804,196 959,543
2,390,394 2,592,847
Acquisition costs
346,520 321,756
905,774 888,937
Other expenses (1) (2)
415,818 108,615
670,334
327,149 Interest expense
12,249 12,241
36,742 36,719
Amortization of intangible assets
6,768 7,003
20,303
21,007 Net foreign exchange losses (gains)
22,413
(8,206 )
15,657 (10,900 )
Total expenses 1,607,964
1,400,952
4,039,204 3,855,759
(Loss) income before taxes and interest
in (losses) earnings of equity method
investments
(208,741 ) 241,641
11,827 958,076 Income tax
expense
17,170 45,617
82,990 186,363 Interest in
(losses) earnings of equity method investments
(3,231
) 5,294
1,564
16,283
Net (loss) income (229,142 )
201,318
(69,599 ) 787,996 Net loss (income)
attributable to noncontrolling interests
5
(4,920 )
(2,531 ) (9,914 )
Net (loss) income attributable to PartnerRe (229,137
) 196,398
(72,130 ) 778,082 Preferred
dividends
14,184 14,184
42,551 42,551
Net (loss) income
attributable to PartnerRe common shareholders $
(243,321 ) $ 182,214
$ (114,681
) $ 735,531
Operating earnings attributable
to PartnerRe common shareholders $ 211,583
$ 226,660
$ 474,614 $ 537,078
Comprehensive (loss) income attributable to PartnerRe
$ (267,720 ) $ 198,578
$
(106,874 ) $ 781,602
Earnings and dividends per share data
attributable to PartnerRe common
shareholders:
Basic operating earnings
$ 4.42 $ 4.58
$
9.95 $ 10.64 Net realized and unrealized investment (losses)
gains, net of tax
(2.54 ) (0.72 )
(5.00
) 4.05 Net foreign exchange losses, net of tax
(0.33
) (0.24 )
(0.77 ) (0.32 ) Interest in (losses)
earnings of equity method investments, net of tax
(0.05
) 0.06
0.02 0.21 Amalgamation termination fee and
reimbursement of expenses (2)
(6.58 ) —
(6.60 ) — Basic net
(loss) income
$ (5.08 ) $ 3.68
$
(2.40 ) $ 14.58 Weighted average number of
common shares outstanding
47,866,040 49,514,980
47,722,833 50,461,749 Diluted operating earnings (1)
$ 4.42 $ 4.47
$ 9.95 $ 10.42 Net
realized and unrealized investment (losses) gains, net of tax
(2.54 ) (0.70 )
(5.00 ) 3.95 Net
foreign exchange losses, net of tax
(0.33 ) (0.23 )
(0.77 ) (0.31 ) Interest in (losses) earnings of
equity method investments, net of tax
(0.05 ) 0.06
0.02 0.20 Amalgamation termination fee and reimbursement of
expenses (2)
(6.58 ) —
(6.60 ) — Diluted net (loss) income
$ (5.08 ) $ 3.60
$ (2.40
) $ 14.26
Weighted average number of common shares
and common share equivalents
outstanding
47,866,040 50,681,325
47,722,833 51,566,134 Dividends
declared per common share
$ 0.70 $ 0.67
$
2.10 $ 2.01 (1) Other expenses for the three months and nine
months ended September 30, 2015 include $7 million and $47 million,
respectively, of aggregate expenses related to the Axis and Exor
transactions, pre-tax, or $0.15 and $0.98, respectively, per
diluted share, pre-tax. In addition, other expenses for the nine
months ended September 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 per
diluted share, pre-tax. (2) Other expenses for the three months and
nine months ended September 30, 2015 include the amalgamation
termination fee and reimbursement of expenses of $315 million, or
$6.58 and $6.60, respectively, per diluted share.
PartnerRe Ltd. Consolidated Balance Sheets (Expressed
in thousands of U.S. dollars, except per share and parenthetical
share and per share data) (Unaudited)
September 30, December 31,
2015 2014
Assets Investments: Fixed maturities, at fair value
$ 13,026,249 $ 13,918,745 Short-term investments, at
fair value
100,365 25,678 Equities, at fair value
1,004,116 1,056,514 Other invested assets
344,720 298,827
Total
investments 14,475,450 15,299,764 Funds held – directly
managed
595,677 608,853 Cash and cash equivalents
1,256,304 1,313,468 Accrued investment income
142,892
158,737 Reinsurance balances receivable
3,079,002 2,454,850
Reinsurance recoverable on paid and unpaid losses
329,834
246,158 Funds held by reinsured companies
671,572 765,905
Deferred acquisition costs
684,380 661,186 Deposit assets
83,729 92,973 Net tax assets
72,257 6,876 Goodwill
456,380 456,380 Intangible assets
139,301 159,604
Other assets
38,450 45,603
Total assets $ 22,025,228 $ 22,270,357
Liabilities Unpaid losses and loss expenses
$
9,522,225 $ 9,745,806 Policy benefits for life and annuity
contracts
2,123,028 2,050,107 Unearned premiums
1,934,360 1,750,607 Other reinsurance balances payable
288,402 182,395 Deposit liabilities
42,336 70,325 Net
tax liabilities
231,223 240,989 Accounts payable, accrued
expenses and other
285,316 304,728 Debt related to senior
notes
750,000 750,000 Debt related to capital efficient
notes
70,989 70,989
Total
liabilities 15,247,879 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 liquidation value: 2015 and
2014, $853,750)
34,150 34,150 Additional paid-in capital
3,971,974
3,949,665 Accumulated other comprehensive loss
(68,827
) (34,083 ) Retained earnings
6,019,786 6,270,811
Common shares held in treasury, at cost (2015, 39,335,464 shares;
2014, 39,400,936 shares)
(3,269,183 )
(3,258,870 )
Total shareholders’ equity attributable to
PartnerRe 6,775,137 7,048,910 Noncontrolling interests
2,212 55,501
Total
shareholders’ equity 6,777,349
7,104,411
Total liabilities and shareholders’ equity
$ 22,025,228 $ 22,270,357
Diluted
Book Value Per Common Share and Common Share Equivalents
Outstanding (1) (2) $ 120.67 $
126.21
Diluted Tangible Book Value Per Common Share and
Common Share Equivalents Outstanding (1) (2) $
109.46 $ 114.76
Number of Common Shares and
Common Share Equivalents Outstanding (2)
49,070,138 49,087,412 (1)
Excludes the aggregate liquidation value of preferred shares (2015
and 2014, $853,750) and noncontrolling interests (2015, $2,212;
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 September 30, 2015
NorthAmerica
Global(Non-U.S.)P&C
GlobalSpecialty
Catastrophe
TotalNon-lifesegment
Lifeand
Healthsegment
Corporateand Other
Total Gross premiums written $
351 $ 153 $ 393 $
57 $ 954 $ 314 $ — $
1,268 Net premiums written $ 335 $ 153 $ 391 $ 13 $
892 $ 298 $ — $ 1,190 Decrease in unearned premiums
73 33
13 99
218 4
— 222 Net premiums earned
$ 408 $ 186 $ 404 $ 112 $ 1,110 $ 302 $ — $ 1,412 Losses and loss
expenses and life policy benefits (182 ) (122 ) (224 ) (28 ) (556 )
(248 ) — (804 ) Acquisition costs (137 )
(50 ) (112 )
(10 ) (309 )
(38 ) —
(347 )
Technical result $ 89 $
14 $ 68 $ 74 $ 245
$ 16 $ — $ 261 Other
income — 3 — 3 Other expenses (55 )
(16 ) (345 )
(416 )
Underwriting result $ 190
$ 3 n/a $ (152 ) Net
investment income 15
102 117
Allocated
underwriting result (1) $ 18 n/a
n/a Net realized and unrealized investment losses (133 )
(133 ) Interest expense (12 ) (12 ) Amortization of intangible
assets (7 ) (7 ) Net foreign exchange losses (22 ) (22 ) Income tax
expense (17 ) (17 ) Interest in losses of equity method investments
(3 ) (3 )
Net loss
n/a $
(229 ) Loss ratio (2) 44.7 % 65.8 % 55.5 % 24.9 %
50.1 % Acquisition ratio (3) 33.4
26.9 27.7
8.7 27.8
Technical ratio (4) 78.1 % 92.7 % 83.2 % 33.6 % 77.9 % Other
expense ratio (5) 4.9 Combined ratio
(6) 82.8 %
For the three
months ended September 30, 2014
NorthAmerica
Global(Non-U.S.)P&C
GlobalSpecialty
Catastrophe
TotalNon-lifesegment
Lifeand
Healthsegment
Corporateand Other
Total Gross premiums written $ 372 $ 162 $ 432 $ 59 $ 1,025
$ 336 $ — $ 1,361 Net premiums written $ 372 $ 164 $ 428 $ 55 $
1,019 $ 325 $ (1 ) $ 1,343 Decrease in unearned premiums
52 38
20 98
208 6
— 214 Net premiums
earned $ 424 $ 202 $ 448 $ 153 $ 1,227 $ 331 $ (1 ) $ 1,557 Losses
and loss expenses and life policy benefits (247 ) (123 ) (279 ) (39
) (688 ) (272 ) — (960 ) Acquisition costs
(106 ) (56 ) (105 )
(17 ) (284 )
(38 ) —
(322 )
Technical result $ 71 $
23 $ 64 $ 97 $ 255
$ 21 $ (1 ) $ 275
Other (loss) income (1 ) 2 1 2 Other expenses
(62 ) (17 ) (29 )
(108 )
Underwriting result $ 192
$ 6 n/a $ 169 Net investment
income 14 104
118
Allocated underwriting
result (1) $ 20 n/a n/a Net
realized and unrealized investment losses (34 ) (34 ) Interest
expense (12 ) (12 ) Amortization of intangible assets (7 ) (7 ) Net
foreign exchange gains 8 8 Income tax expense (46 ) (46 ) Interest
in earnings of equity method investments 5
5
Net income
n/a $ 201
Loss ratio (2) 58.2 % 61.1 % 62.3 % 25.2 % 56.1 %
Acquisition ratio (3) 24.9
27.6 23.5
11.7 23.1
Technical ratio (4) 83.1 % 88.7 % 85.8 % 36.9 % 79.2 % Other
expense ratio (5) 5.0 Combined ratio
(6) 84.2 % (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 nine months ended September 30, 2015
NorthAmerica
Global(Non-U.S.)P&C
GlobalSpecialty
Catastrophe
TotalNon-lifesegment
Lifeand
Healthsegment
Corporateand Other
Total
Gross premiums written $ 1,251 $ 630 $
1,226 $ 370 $ 3,477 $
972 $ — $ 4,449 Net
premiums written $ 1,207 $ 621 $ 1,153 $ 261 $ 3,242 $ 924 $ — $
4,166 Increase in unearned premiums (25 )
(102 ) (10 )
(47 ) (184 )
(7 ) — (191
) Net premiums earned $ 1,182 $ 519 $ 1,143 $ 214 $ 3,058 $ 917 $ —
$ 3,975 Losses and loss expenses and life policy benefits
(650 ) (362 ) (593 ) (38 ) (1,643 ) (748 ) 1 (2,390 ) Acquisition
costs (341 ) (139 )
(307 ) (17 )
(804 ) (102 )
— (906 )
Technical result
$ 191 $ 18 $ 243 $
159 $ 611 $ 67 $ 1
$ 679 Other income — 4 3 7 Other expenses
(162 ) (47 )
(461 ) (670 )
Underwriting
result $ 449 $ 24 n/a
$ 16 Net investment income 45
297 342
Allocated underwriting result (1) $
69 n/a n/a Net realized and unrealized
investment losses (273 ) (273 ) Interest expense (37 ) (37 )
Amortization of intangible assets (20 ) (20 ) Net foreign exchange
losses (16 ) (16 ) Income tax expense (83 ) (83 ) Interest in
earnings of equity method investments 1
1
Net loss
n/a $ (70 ) Loss
ratio (2) 55.0 % 69.8 % 51.9 % 17.8 % 53.7 % Acquisition ratio (3)
28.8 26.8
26.8 8.1
26.3 Technical ratio (4) 83.8 % 96.6 %
78.7 % 25.9 % 80.0 % Other expense ratio (5)
5.3 Combined ratio (6) 85.3 %
For the nine months ended September 30, 2014
NorthAmerica
Global(Non-U.S.)P&C
GlobalSpecialty
Catastrophe
TotalNon-lifesegment
Lifeand
Healthsegment
Corporateand Other
Total Gross premiums written $ 1,302 $ 682 $ 1,348 $ 412 $
3,744 $ 951 $ — $ 4,695 Net premiums written $ 1,291 $ 672 $ 1,250
$ 370 $ 3,583 $ 918 $ (1 ) $ 4,500 Increase in unearned premiums
(99 ) (104 )
(42 ) (78 )
(323 ) (14 ) —
(337 ) Net premiums earned $ 1,192 $ 568 $
1,208 $ 292 $ 3,260 $ 904 $ (1 ) $ 4,163 Losses and loss
expenses and life policy benefits (747 ) (319 ) (749 ) (38 ) (1,853
) (740 ) — (2,593 ) Acquisition costs (299 )
(162 ) (283 )
(34 ) (778 )
(111 ) —
(889 )
Technical result $ 146 $
87 $ 176 $ 220 $
629 $ 53 $ (1 ) $
681 Other income 1 6 5 12 Other expenses
(187 ) (52 ) (88 )
(327 )
Underwriting result $
443 $ 7 n/a $ 366 Net
investment income 45
320 365
Allocated
underwriting result (1) $ 52 n/a
n/a Net realized and unrealized investment gains 273 273
Interest expense (36 ) (36 ) Amortization of intangible assets (21
) (21 ) Net foreign exchange gains 11 11 Income tax expense (186 )
(186 ) Interest in earnings of equity method investments
16 16
Net
income n/a $
788 Loss ratio (2) 62.6 % 56.2 % 62.1 % 12.9 %
56.8 % Acquisition ratio (3) 25.1
28.5 23.4
11.5 23.9
Technical ratio (4) 87.7 % 84.7 % 85.5 % 24.4 % 80.7 % Other
expense ratio (5) 5.7 Combined ratio
(6) 86.4 %
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151026006436/en/
PartnerRe Ltd.Investor Contact: Robin SiddersMedia
Contact: Celia Powell441-292-0888orSard Verbinnen &
CoDrew Brown/Robin Weinberg212-687-8080
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