PartnerRe Reports Q3 And Nine Month Results
Bermuda-based PartnerRe Ltd. 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.”
