PartnerRe Reports Q3 & Nine Month Results

November 17, 2017 | 0 Comments

Bermuda-based PartnerRe Ltd. reported a net loss available to common shareholder of $84 million for the third quarter of 2017 compared to net income of $240 million for the same period of 2016.

Net income or loss available to common shareholder includes net realized and unrealized investment gains of $61 million in the third quarter of 2017 compared to $56 million in the same period of 2016. Operating losses were $113 million for the third quarter of 2017 compared to operating gains of $185 million for the same period of 2016.

Net income available to common shareholder for the first nine months of 2017 was $145 million compared to $578 million in the same period of 2016. Net income available to common shareholder includes net realized and unrealized investment gains of $214 million compared to $415 million in the same period of 2016. Operating earnings for the first nine months of 2017 were $27 million compared to $164 million for the same period of 2016.

Operating earnings is a non-GAAP financial measure which excludes certain net after-tax realized and unrealized investment gains and losses, net after-tax foreign exchange gains and losses and certain net after-tax interest in results of equity method investments, and is calculated after dividends to preferred shareholders.

Operating [losses] earnings and net [loss] income available to common shareholder, and the associated annualized ROEs, for the third quarters and the first nine months of 2017 and 2016 include various non-recurring transaction and reorganization related costs, which impact period over period comparability as follows [in US$ millions, except for percentages]:

Commenting on results, PartnerRe President and Chief Executive Officer Emmanuel Clarke said, “The third quarter of 2017 was a very active period of severe catastrophe events, with a series of hurricanes impacting the Caribbean and the U.S. and two earthquakes in Mexico.

“Our first thoughts go to the victims of these catastrophes. PartnerRe is paying losses promptly and continue to provide coverage to our clients, demonstrating the value of our reinsurance product, which ultimately contributes to fund reconstruction efforts in devastated regions.”

Mr. Clarke also added: “Despite the impact of these losses on the catastrophe exposed lines in our portfolio, PartnerRe book value declined by only 0.9% during the quarter, thanks to discipline in deploying capital in Catastrophe exposed classes, solid performance in our Specialty portfolio, an improvement in our P&C non-CAT accident year technical ratio compared to the third quarter of 2016 and good investments performance.

“These results highlight our underwriting discipline and the quality and diversification of our underwriting portfolio. We are approaching the January 1 renewals season with a strong capital position which will allow us to benefit from improving pricing conditions in the market.”

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