Reinsurer PartnerRe Ltd. swung to a second-quarter loss as it
reported a sharp drop in revenue and a large loss in
investments.
The Bermuda-based company, which is at the center of a merger
tug of war between Axis Capital Holdings Ltd. and Italian
investment firm Exor SpA, said it expects results to pick up in the
fall, when many of its accounts are up for renewal.
PartnerRe and Axis agreed to merge in January, in a deal valued
at about $11 billion that would create one of the world's largest
reinsurance and specialist insurance companies.
But Exor, which owns a controlling stake in Fiat Chrysler
Automobiles, countered with a sweetened bid for PartnerRe valued at
about $140.50 a share, including a $3 dividend, The Wall Street
Journal reported. Axis's offer, meanwhile, would value PartnerRe at
just over $139, based on Friday's closing price.
Proxy-advisory firms Glass Lewis & Co. and Institutional
Shareholder Services Inc. have recommended PartnerRe shareholders
vote against the proposed merger with Axis Capital Holdings Ltd.,
saying that Italian investment firm Exor SpA presented a better
offer.
Overall, PartnerRe reported a loss of $88.9 million, or $2.16 a
share after the payout of preferred dividends, compared with a
year-earlier profit of $271.8 million, or $5.02 a share. Revenue
dropped 28% to $1.19 billion.
Analysts surveyed by Thomson Reuters had projected a profit of
$2.35 a share on $1.43 billion in revenue.
The company said it saw after-tax realized and unrealized losses
on investments of $217.2 million, compared with gains of $123.7
million in the year-earlier quarter.
Shares, which were inactive after hours, closed Monday at
$134.91, up 18% this year.
Write to Maria Armental at maria.armental@wsj.com
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