- Fourth Quarter Operating Earnings
per share of $3.74; Net Income per share of $3.30
- Fourth Quarter Annualized Operating
ROE of 11.9%; Annualized Net Income ROE of 10.5%
- Full Year Operating Earnings per
share of $13.45; Net Income per share of $0.97
- Full Year Annualized Operating ROE
of 10.7%; Annualized Net Income ROE of 0.8%
- Book Value of $123.05 per share, up
2.0% for the quarter and down 2.5% year-to-date
- Tangible Book Value of $111.93 per
share, up 2.3% for the quarter and down 2.5% year-to-date
PartnerRe Ltd. (NYSE: PRE) today reported net income of $162.3
million, or $3.30 per share for the fourth quarter of 2015. This
includes net after-tax realized and unrealized losses on
investments of $22.8 million, or $0.46 per share. Net income for
the fourth quarter of 2014 was $262.7 million, or $5.26 per share,
including net after-tax realized and unrealized gains on
investments of $82.1 million, or $1.64 per share. The Company
reported operating earnings of $183.9 million, or $3.74 per share,
for the fourth quarter of 2015. This compares to operating earnings
of $218.3 million, or $4.37 per share, for the fourth quarter of
2014.
Net income for the full year 2015 was $47.6 million, or $0.97
per share. This includes the amalgamation termination fee and
reimbursement of expenses paid to Axis Capital of $315.0 million,
or $6.44 per share, and net after-tax realized and unrealized
losses on investments of $261.4 million, or $5.34 per share. Net
income for the full year 2014 was $998.2 million, or $19.51 per
share, including net after-tax realized and unrealized gains on
investments of $286.3 million, or $5.60 per share. Operating
earnings for the full year 2015 were $658.5 million, or $13.45 per
share. This compares to operating earnings of $755.4 million, or
$14.76 per share, for the full year 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, 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.
Commenting on results, PartnerRe President Emmanuel Clarke said,
“I am very pleased with the strong financial results we achieved in
2015, particularly given very challenging reinsurance and financial
market dynamics, as well as the transaction-related activity that
occupied much of the year, concluding in PartnerRe beginning the
transition to private ownership under EXOR. All of our operating
units performed well, resulting in a full-year operating return on
equity of 10.7%.”
“Last week, we announced the results of our Non-life treaty
renewal, which accounts for approximately two-thirds of our total
Non-life treaty business. Our excellent underwriting teams and
resilient franchise made it possible to access and renew a high
quality portfolio, with renewal premium volume down just 5%, as
anticipated and planned for in this increasingly competitive
market. As we near the close of the transaction with EXOR, which we
still expect to occur in the first quarter of 2016, the PartnerRe
franchise is as strong as ever.”
Highlights for the fourth quarter and full year 2015 compared to
the same periods in 2014 include:
Results of operations:
- For the fourth quarter, net
premiums written of $1.1 billion were down 13%. On a constant
foreign exchange basis, net premiums written were down 8% primarily
driven by the Global Specialty Non-life sub-segment. For the full
year 2015, net premiums written of $5.2 billion were down 9%.
On a constant foreign exchange basis, net premiums written were
down 3% primarily driven by the Global Specialty, Catastrophe and
North America Non-life sub-segments, partially offset by an
increase in the Life and Health segment.
- For the fourth quarter, net
premiums earned of $1.3 billion were down 10%. On a constant
foreign exchange basis, net premiums earned were down 5%, driven by
all Non-life sub-segments and, to a lesser extent, the Life and
Health segment. For the full year 2015, net premiums earned of
$5.3 billion were down 6%. On a constant foreign exchange basis,
net premiums earned were flat with decreases in the Global
Specialty, Catastrophe and North America Non-life sub-segments
being partially offset by increases in the Life and Health segment
and the Global (Non-U.S.) P&C Non-life sub-segment.
- For the fourth quarter, the
Non-life combined ratio was 86.5%. The combined ratio benefited
from favorable prior year development of 18.7 points (or $187
million). All Non-life sub-segments, except for the Catastrophe
Non-life sub-segment, experienced net favorable development from
prior accident years during the fourth quarter of 2015. For the
full year 2015, the Non-life combined ratio was 85.6%. The
combined ratio benefited from favorable prior year development of
20.5 points (or $831 million) and included 1.5 points (or $59
million) of large losses related to the Tianjin explosion. All
Non-life sub-segments experienced net favorable development from
prior accident years during the full year 2015.
- For the fourth quarter, other expenses
of $120 million include transaction related expenses of $16
million, pre-tax, or $0.33 per diluted share, pre-tax. For the full
year 2015, other expenses of $791 million include the termination
fee and reimbursement of expenses paid to Axis Capital of $315
million, or $6.44 per diluted share. Additionally, other expenses
include other transaction related expenses of $63 million, pre-tax,
or $1.29 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 $0.52, per
diluted share, pre-tax.
- For the fourth quarter, net investment
income of $108 million was down 6%, or 2% on a constant foreign
exchange basis, primarily reflecting lower reinvestment rates,
partially offset by additional income from higher yielding
securities. For the full year 2015, net investment income of $450
million was down 6%, or 3% on a constant foreign exchange basis,
primarily reflecting the timing of dividends.
- For the fourth quarter, pre-tax net
realized and unrealized investment losses were $24 million,
primarily driven by increases in U.S. risk-free interest rates,
partially offset by the narrowing of U.S. and European credit
spreads and increases in worldwide equity markets. For the full
year 2015, pre-tax realized and unrealized investment losses were
$297 million, primarily driven by increases in U.S. risk-free
interest rates, the widening of U.S. and European credit spreads
and decreases in worldwide equity markets.
- For the fourth quarter, the effective
tax rate on operating earnings and non-operating losses was (6.6)%
and (72.0)%, respectively. For the full year 2015, the effective
tax rate on operating earnings and non-operating losses was 10.1%
and 0.2%, respectively.
Balance sheet and capitalization:
- Total investments, cash and funds held
– directly managed were $16.5 billion at December 31, 2015,
down 4% compared to December 31, 2014. The decrease was
primarily due to the impact of the strengthening U.S. dollar, cash
flows out of the portfolio to fund the termination fee and
reimbursement of expenses paid to Axis Capital, increases in U.S.
risk-free interest rates and the widening of U.S. and European
credit spreads.
- Net Non-life loss and loss expense
reserves were $8.9 billion at December 31, 2015, down 7%
compared to December 31, 2014, primarily reflecting the
impacts of foreign exchange.
- Net policy benefits for life and
annuity contracts were $2.0 billion at December 31, 2015,
which is flat 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 $7.7 billion at
December 31, 2015, down 1.9% compared to December 31,
2014 primarily due to common and preferred dividend payments,
partially offset by comprehensive income for the full year
2015.
- Total shareholders’ equity attributable
to PartnerRe was $6.9 billion at December 31, 2015, down 2.1%
compared to December 31, 2014. The decrease was primarily
driven by the same factors described above for total capital.
- Book value per common share was $123.05
at December 31, 2015, down 2.5% compared to $126.21 at
December 31, 2014. Tangible book value per common share was
$111.93 at December 31, 2015, down 2.5% compared to $114.76 at
December 31, 2014. The decreases were primarily driven by
common and preferred dividend payments, partially offset by
comprehensive income for the full year 2015.
Segment and sub-segment highlights for the fourth quarter and
the full year 2015 compared to the same periods in 2014
include:
Non-life:
- For the fourth quarter, the Non-life
segment’s net premiums written were down 15%. On a constant foreign
exchange basis, net premiums written were down 10% driven by the
Global Specialty sub-segment, with the other sub-segments being
essentially flat. For the full year 2015, the Non-life segment’s
net premiums written were down 11%. On a constant foreign exchange
basis, net premiums written were down 5% primarily driven by the
Global Specialty, Catastrophe and North America sub-segments, which
were partially offset by the Global (Non-U.S.) P&C
sub-segment.
- For the fourth quarter, the North
America sub-segment’s net premiums written were down 1% driven by
increased retrocessional coverage in the mortgage and agricultural
lines of business, cancellations and a timing difference relating
to the renewal of a large contract in the casualty line of
business. These decreases were partially offset by new business
written in the casualty, structured property and agricultural lines
of business. This sub-segment reported a technical ratio of 85.6%,
which included 14.3 points (or $56 million) of net favorable prior
year loss development. For the full year 2015, the North America
sub-segment’s net premiums written were down 5% primarily due
cancellations in the casualty, multi-line and motor lines of
business, increased retrocessional coverage in the mortgage and
agricultural lines of business and downward prior year premium
adjustments. These decreases were partially offset by new business
written across multiple lines of business. This sub-segment
reported a technical ratio of 84.2%, which included 18.1 points (or
$284 million) of net favorable prior year loss development.
- For the fourth quarter, the Global
(Non-U.S.) P&C sub-segment’s net premiums written were down
13%. On a constant foreign exchange basis, net premiums written
were down 3% primarily driven by downward prior year premium
adjustments in the property line of business and cancellations in
the motor line of business, which were partially offset by new
business written across all lines of business. This sub-segment
reported a technical ratio of 92.5%, which included 17.1 points (or
$30 million) of net favorable prior year loss development. For the
full year 2015, the Global (Non-U.S.) P&C sub-segment’s net
premiums written were down 9%. On a constant foreign exchange
basis, net premiums written were up 2% primarily driven by new
business written across all lines of business, partially offset by
downward prior year premium adjustments and cancellations in the
property and motor lines of business. This sub-segment reported a
technical ratio of 95.6%, which included 13.9 points (or $97
million) of net favorable prior year loss development, and included
2.7 points (or $18 million) of large losses related to the Tianjin
explosion.
- For the fourth quarter, the Global
Specialty sub-segment’s net premiums written were down 26%. On a
constant foreign exchange basis, net premiums written were down 21%
primarily due to downward prior year premium adjustments,
cancellations across multiple lines of business, non-renewable
business and a timing difference related to the renewal of a large
contract in the specialty casualty line of business. This
sub-segment reported a technical ratio of 79.5%, which included
30.2 points (or $111 million) of net favorable prior year loss
development. For the full year 2015, the Global Specialty
sub-segment’s net premiums written were down 13%. On a constant
foreign exchange basis, net premiums written were down 6% primarily
due to downward prior year premium adjustments and cancellations
across multiple lines of business, which were partially offset by
new business across multiple lines of business and lower premiums
ceded under retrocessional contracts. This sub-segment reported a
technical ratio of 78.9%, which included 28.7 points (or $434
million) of net favorable prior year loss development, and included
1.4 points (or $22 million) of large losses related to the Tianjin
explosion.
- For the fourth quarter, which is
traditionally a quiet catastrophe renewal period, the Catastrophe
sub-segment’s net premiums written increased by 31%, or $3 million
on a constant foreign exchange basis. This sub-segment reported a
technical ratio of 33.1%, which included 30.2 points (or $21
million) of net favorable prior quarters' loss development on
events that occurred in the first nine months of 2015, and 13.4
points (or $10 million) of net adverse prior year loss development.
For the full year 2015, the Catastrophe sub-segment’s net premiums
written were down 28%. On a constant foreign exchange basis, net
premiums written were down 22% primarily due to an increase in
retrocessional coverage, and cancellations and non-renewals. This
sub-segment reported a technical ratio of 27.7%, which included 5.5
points (or $16 million) of net favorable prior year loss
development, and included 5.6 points (or $16 million) of large
losses related to the Tianjin explosion.
Life and Health:
- For the fourth quarter, the Life and
Health segment’s net premiums written were down 6%. On a constant
foreign exchange basis, net premiums written were up 1% primarily
driven by the PartnerRe Health business, which was partially offset
by a decrease in the mortality line of business. For the full year
2015, the Life and Health segment’s net premiums written were down
1%. On a constant foreign exchange basis, net premiums written were
up 7% primarily due to increases in the PartnerRe Health business
and the longevity line of business.
- For the fourth quarter, the Life and
Health segment’s allocated underwriting result, which includes
allocated investment income and other expenses, increased to $24
million compared to $21 million in the same period of 2014. This
increase was primarily due to a higher level of net favorable prior
year loss development in the PartnerRe Health business, the short
term mortality line of business and the GMDB portfolio. For the
full year 2015, the Life and Health segment’s allocated
underwriting result increased to $94 million compared to $73
million in the same period of 2014 due to increased favorable prior
year loss development and increased profitability from the
PartnerRe Health business.
Corporate and Other:
- For the fourth quarter, investment
activities contributed income of $75 million to pre-tax net income,
excluding investment income allocated to the Life and Health
segment. Of this amount, income of $94 million was included in
pre-tax operating earnings and losses of $19 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 full year 2015, investment activities
contributed income of $100 million to pre-tax net income, excluding
investment income allocated to the Life and Health segment. Of this
amount, income of $387 million was included in pre-tax operating
earnings and losses of $287 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 March 1, 2016 to common
shareholders of record on February 19, 2016.
The Company has posted its fourth 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, February
9. 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.
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, 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, 2015, total revenues were $5.4 billion. At
December 31, 2015, total assets were $21.4 billion, total
capital was $7.7 billion and total shareholders’ equity
attributable to PartnerRe was $6.9 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
Income (Expressed in thousands of U.S. dollars, except share
and per share data) (Unaudited)
For the threemonths
endedDecember 31,2015
For the
three months ended December
31,2014
For the yearended
December31, 2015
For the
year ended December
31, 2014
Revenues Gross premiums written
$ 1,098,618
$ 1,236,676
$ 5,547,525 $
5,932,003 Net premiums written
$ 1,063,636 $
1,220,035
$ 5,229,548 $ 5,719,884 Decrease (increase)
in unearned premiums
230,865 225,695
39,630 (110,689 ) Net premiums
earned
1,294,501 1,445,730
5,269,178 5,609,195 Net
investment income
107,908 114,686
449,784 479,696 Net
realized and unrealized investment (losses) gains
(24,373
) 98,329
(297,479 ) 371,796 Other income
1,560 4,297
9,144
16,190
Total revenues
1,379,596 1,663,042
5,430,627 6,476,877
Expenses
Losses and loss expenses and life policy benefits
767,026
869,923
3,157,420 3,462,770 Acquisition costs
311,228
324,884
1,217,003 1,213,822 Other expenses (1) (2) (3)
120,389 122,539
790,723 449,688 Interest expense
12,246 12,244
48,988 48,963 Amortization of
intangible assets
6,290 6,479
26,593 27,486 Net
foreign exchange (gains) losses
(6,195 )
(7,301 )
9,461 (18,201 )
Total expenses 1,210,984
1,328,768
5,250,188 5,184,528
Income before taxes and interest in earnings (losses) of
equity method investments 168,612 334,274
180,439
1,292,349 Income tax (benefit) expense
(3,326 )
53,143
79,664 239,506 Interest in earnings (losses) of
equity method investments
4,811 (1,013
)
6,375 15,270
Net income
176,749 280,118
107,150 1,068,113 Net income
attributable to noncontrolling interests
(238
) (3,225 )
(2,769 )
(13,139 )
Net income attributable to PartnerRe
176,511 276,893
104,381 1,054,974 Preferred dividends
14,184 14,184
56,735 56,735
Net income
attributable to PartnerRe common shareholders $
162,327 $ 262,709
$ 47,646
$ 998,239
Operating earnings attributable to
PartnerRe common shareholders $ 183,858 $
218,340
$ 658,472 $ 755,418
Comprehensive income attributable to PartnerRe $
162,055 $ 251,528
$ 55,181
$ 1,033,129
Earnings and dividends per share data
attributable to PartnerRe common shareholders: Basic operating
earnings
$ 3.84 $ 4.48
$ 13.78 $ 15.10
Net realized and unrealized investment (losses) gains, net of tax
(0.48 ) 1.69
(5.47 ) 5.73 Net foreign
exchange losses, net of tax
(0.07 ) (0.61 )
(0.84 ) (0.92 ) Interest in earnings (losses) of
equity method investments, net of tax
0.10 (0.04 )
0.12 0.17 Amalgamation termination fee and reimbursement of
expenses (1)
— —
(6.59 ) — Withholding tax on
inter-company dividends, net of tax (3)
—
(0.13 )
— (0.12 ) Basic net
income
$ 3.39 $ 5.39
$
1.00 $ 19.96 Weighted average number of common
shares outstanding
47,916,601 48,707,096
47,771,673
50,019,480 Diluted operating earnings (2)
$ 3.74 $
4.37
$ 13.45 $ 14.76 Net realized and unrealized
investment (losses) gains, net of tax
(0.46 ) 1.64
(5.34 ) 5.60 Net foreign exchange losses, net of tax
(0.07 ) (0.60 )
(0.82 ) (0.90 )
Interest in earnings (losses) of equity method investments, net of
tax
0.09 (0.03 )
0.12 0.17 Amalgamation termination
fee and reimbursement of expenses (1)
— —
(6.44
) — Withholding tax on inter-company dividends, net of tax
(3)
— (0.12 )
—
(0.12 ) Diluted net income
$ 3.30 $
5.26
$ 0.97 $ 19.51 Weighted
average number of common shares and common share equivalents
outstanding
49,121,664 49,958,224
48,939,870
51,174,225 Dividends declared per common share
$ 0.70
$ 0.67
$ 2.80 $ 2.68 (1) Other expenses for the year
ended December 31, 2015 include the amalgamation termination fee
and reimbursement of expenses of $315 million, or $6.44 per diluted
share. (2) Other expenses for the three months and year ended
December 31, 2015 include $16 million and $63 million,
respectively, of aggregate expenses related to the Axis and Exor
transactions, pre-tax, or $0.33 and $1.29, respectively, per
diluted share, pre-tax. In addition, other expenses for the year
ended December 31, 2015 include $25 million, pre-tax, related to
the negotiated earn-out consideration paid to the former
shareholders of Presidio Reinsurance Group, Inc., or $0.52 per
diluted share, pre-tax. (3) Withholding taxes on certain
inter-company dividends are included in other expenses.
PartnerRe Ltd. Consolidated Balance Sheets
(Expressed in thousands of U.S. dollars, except per share and
parenthetical share and per share data) (Unaudited)
December 31, December 31,
2015 2014
Assets
Investments: Fixed maturities, at fair value
$
13,448,262 $ 13,918,745 Short-term investments, at fair
value
46,688 25,678 Equities, at fair value
443,861
1,056,514 Other invested assets
399,204
298,827
Total investments
14,338,015 15,299,764 Funds held – directly managed
539,743 608,853 Cash and cash equivalents
1,577,097
1,313,468 Accrued investment income
141,672 158,737
Reinsurance balances receivable
2,428,020 2,454,850
Reinsurance recoverable on paid and unpaid losses
282,916
246,158 Funds held by reinsured companies
657,815 765,905
Deferred acquisition costs
629,372 661,186 Deposit assets
88,152 92,973 Net tax assets
102,596 6,876 Goodwill
456,380 456,380 Intangible assets
133,011 159,604
Other assets
31,254
45,603
Total assets $
21,406,043 $ 22,270,357
Liabilities Unpaid losses and loss expenses
$
9,064,711 $ 9,745,806 Policy benefits for life and annuity
contracts
2,051,935 2,050,107 Unearned premiums
1,644,757 1,750,607 Other reinsurance balances payable
246,089 182,395 Deposit liabilities
44,420 70,325 Net
tax liabilities
218,652 240,989 Accounts payable, accrued
expenses and other
411,539 304,728 Debt related to senior
notes
750,000 750,000 Debt related to capital efficient
notes
70,989
70,989
Total liabilities
14,503,092 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
3,982,147
3,949,665 Accumulated other comprehensive loss
(83,283
) (34,083 ) Retained earnings
6,146,802 6,270,811
Common shares held in treasury, at cost (2015, 39,303,068 shares;
2014, 39,400,936 shares)
(3,266,552
) (3,258,870 )
Total shareholders’
equity attributable to PartnerRe 6,900,501 7,048,910
Noncontrolling interests
2,450
55,501
Total shareholders’
equity 6,902,951
7,104,411
Total liabilities and
shareholders’ equity $ 21,406,043
$ 22,270,357
Diluted Book Value Per
Common Share and Common Share Equivalents Outstanding (1)
(2) $ 123.05 $
126.21
Diluted Tangible Book Value Per Common Share and
Common Share Equivalents Outstanding (1) (2) $
111.93 $ 114.76
Number of Common Shares and Common Share Equivalents
Outstanding (2) 49,139,215
49,087,412 (1)
Excludes the aggregate liquidation value of preferred shares (2015
and 2014, $853,750) and noncontrolling interests (2015, $2,450;
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, 2014
NorthAmerica
Global(Non-U.S.)P&C
GlobalSpecialty
Catastrophe
TotalNon-lifesegment
Lifeand
Healthsegment
Corporateand Other
Total Gross premiums written $ 352 $ 106 $
330 $ 13 $ 801 $ 298 $ — $
1,099 Net premiums written $ 335 $ 105 $ 329 $ 11 $
780 $ 284 $ — $ 1,064 Decrease in unearned premiums
55 69 39
59 222 8
— 230 Net premiums
earned $ 390 $ 174 $ 368 $ 70 $ 1,002 $ 292 $ — $ 1,294 Losses and
loss expenses and life policy benefits (231 ) (111 ) (193 ) (16 )
(551 ) (216 ) — (767 ) Acquisition costs (103 )
(50 ) (100 ) (7 )
(260 ) (51 ) —
(311 )
Technical result $ 56
$ 13 $ 75 $ 47 $
191 $ 25 $ — $ 216
Other income (loss) — 2 (1 ) 1 Other expenses (56 )
(17 ) (47 ) (120 )
Underwriting result $ 135 $ 10
n/a $ 97 Net investment income
14 94 108
Allocated underwriting result (1) $ 24
n/a n/a Net realized and unrealized investment losses
(24 ) (24 ) Interest expense (12 ) (12 ) Amortization of intangible
assets (6 ) (6 ) Net foreign exchange gains 6 6 Income tax benefit
3 3 Interest in earnings of equity method investments
5 5
Net income
n/a $ 177
Loss ratio (2) 59.2 % 63.7 % 52.3 % 23.2 % 54.9 % Acquisition ratio
(3) 26.4 28.8
27.2 9.9 26.0
Technical ratio (4) 85.6 % 92.5 % 79.5 % 33.1 % 80.9 % Other
operating ratio (5) 5.6 Combined ratio (6)
86.5 %
For the three months ended December 31,
2014
NorthAmerica
Global(Non-U.S.)P&C
GlobalSpecialty
Catastrophe
TotalNon-lifesegment
Lifeand
Healthsegment
Corporateand Other
Total Gross premiums written $ 340 $ 122 $ 448 $ 13 $ 923 $
314 $ — $ 1,237 Net premiums written $ 338 $ 122 $ 446 $ 11 $ 917 $
302 $ 1 $ 1,220 Decrease (increase) in unearned premiums
67 78 (16 )
81 210 16
— 226 Net premiums
earned $ 405 $ 200 $ 430 $ 92 $ 1,127 $ 318 $ 1 $ 1,446 Losses and
loss expenses and life policy benefits (253 ) (119 ) (213 ) (24 )
(609 ) (261 ) — (870 ) Acquisition costs (102 )
(60 ) (117 ) (9 )
(288 ) (37 ) —
(325 )
Technical result $ 50 $
21 $ 100 $ 59 $
230 $ 20 $ 1 $ 251
Other income 2 2 — 4 Other expenses (65 )
(17 ) (41 ) (123 )
Underwriting result $ 167 $ 5
n/a $ 132 Net investment income
16 99 115
Allocated underwriting result (1) $ 21
n/a n/a Net realized and unrealized investment gains
98 98 Interest expense (12 ) (12 ) Amortization of intangible
assets (6 ) (6 ) Net foreign exchange gains 7 7 Income tax expense
(53 ) (53 ) Interest in losses of equity method investments
(1 ) (1 )
Net income
n/a $ 280
Loss ratio (2) 62.5 % 59.4 % 49.5 % 26.5 % 54.1 % Acquisition ratio
(3) 25.1 29.9
27.4 9.1 25.5
Technical ratio (4) 87.6 % 89.3 % 76.9 % 35.6 % 79.6 % Other
expense ratio (5) 5.7 Combined ratio (6)
85.3 % (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 year ended December
31, 2015
NorthAmerica
Global(Non-U.S.)P&C
GlobalSpecialty Catastrophe
TotalNon-lifesegment Lifeand
Healthsegment Corporateand Other
Total Gross premiums written $ 1,604 $ 735 $
1,556 $ 382 $ 4,277 $ 1,271 $ —
$ 5,548 Net premiums written $ 1,542 $ 726 $ 1,482 $ 272 $
4,022 $ 1,208 $ — $ 5,230 Decrease (increase) in unearned premiums
30 (33 ) 29
12 38 1
— 39 Net premiums
earned $ 1,572 $ 693 $ 1,511 $ 284 $ 4,060 $ 1,209 $ — $ 5,269
Losses and loss expenses and life policy benefits (881 ) (473 )
(785 ) (54 ) (2,193 ) (964 ) — (3,157 ) Acquisition costs
(443 ) (189 ) (407 )
(25 ) (1,064 ) (153 )
— (1,217 )
Technical result
$ 248 $ 31 $ 319 $
205 $ 803 $ 92 $ —
$ 895 Other income — 6 3 9 Other expenses
(219 ) (63 ) (509 )
(791 )
Underwriting result $ 584
$ 35 n/a $ 113 Net investment
income 59 391
450
Allocated underwriting result (1)
$ 94 n/a n/a Net realized and
unrealized investment losses (297 ) (297 ) Interest expense (49 )
(49 ) Amortization of intangible assets (27 ) (27 ) Net foreign
exchange losses (9 ) (9 ) Income tax expense (80 ) (80 ) Interest
in earnings of equity method investments 6
6
Net income n/a
$ 107 Loss ratio (2) 56.0 % 68.3
% 52.0 % 19.1 % 54.0 % Acquisition ratio (3) 28.2
27.3 26.9
8.6 26.2 Technical ratio (4)
84.2 % 95.6 % 78.9 % 27.7 % 80.2 % Other expense ratio (5)
5.4 Combined ratio (6) 85.6 %
For the year
ended December 31, 2014 NorthAmerica
Global(Non-U.S.)P&C
GlobalSpecialty Catastrophe
TotalNon-lifesegment Lifeand
Healthsegment Corporateand Other
Total Gross premiums written $ 1,642 $ 803 $ 1,797 $ 425 $
4,667 $ 1,265 $ — $ 5,932 Net premiums written $ 1,630 $ 794 $
1,696 $ 380 $ 4,500 $ 1,220 $ — $ 5,720 (Increase) decrease in
unearned premiums (33 ) (26 )
(58 ) 4 (113 )
2 — (111 ) Net
premiums earned $ 1,597 $ 768 $ 1,638 $ 384 $ 4,387 $ 1,222 $ — $
5,609 Losses and loss expenses and life policy benefits (1,000 )
(438 ) (963 ) (62 ) (2,463 ) (1,000 ) — (3,463 ) Acquisition costs
(401 ) (222 ) (400 )
(42 ) (1,065 ) (149 )
— (1,214 )
Technical
result $ 196 $ 108 $
275 $ 280 $ 859 $
73 $ — $ 932 Other income 3 8 5
16 Other expenses (252 ) (68 )
(130 ) (450 )
Underwriting result
$ 610 $ 13 n/a $
498 Net investment income 60
420 480
Allocated
underwriting result (1) $ 73 n/a
n/a Net realized and unrealized investment gains 372 372
Interest expense (49 ) (49 ) Amortization of intangible assets (27
) (27 ) Net foreign exchange gains 18 18 Income tax expense (239 )
(239 ) Interest in earnings of equity method investments
15 15
Net income
n/a $ 1,068 Loss
ratio (2) 62.6 % 57.0 % 58.8 % 16.1 % 56.1 % Acquisition ratio (3)
25.1 28.9
24.4 11.0 24.3
Technical ratio (4) 87.7 % 85.9 % 83.2 % 27.1 % 80.4 % Other
expense ratio (5) 5.8 Combined ratio (6)
86.2 %
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160208006238/en/
PartnerRe Ltd.Investor Contact: Robin SiddersMedia
Contact: Celia Powell441-292-0888orSard Verbinnen &
CoRobin Weinberg/Spencer Waybright212-687-8080
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