PartnerRe Reports Q2 & Half Year Results
Bermuda-based PartnerRe Ltd. reported a net income available to common shareholder of $191 million for the second quarter of 2017 compared to $137 million for the same period in 2016.
Net income available to common shareholder includes net realized and unrealized gains on investments of $129 million in the second quarter of 2017 compared to a $192 million gain in the same period of 2016. Operating earnings were $97 million for the second quarter of 2017 compared to operating losses of $66 million for the same period of 2016.
Net income available to common shareholder for the first six months of 2017 was $229 million compared to $338 million in the same period of 2016. Net income available to common shareholder includes net realized and unrealized gains on investments of $152 million compared to $359 million in the same period of 2016. Operating earnings for the first six months of 2017 were $140 million compared to operating losses of $21 million for the same period of 2016.
Operating earnings is a non-GAAP financial measure which excludes certain net after-tax realized and unrealized investment gains and losses, net after-tax foreign exchange gains and losses, certain net after-tax interest in results of equity method investments, and is calculated after dividends to preferred shareholders.
Operating earnings and net income available to common shareholder, and the associated annualized ROEs, for the second quarters and the first six months of 2017 and 2016 include various non-recurring transaction and severance related costs, which impact period over period comparability as follows [in US$ millions, except for percentages]:
Commenting on results, PartnerRe President and Chief Executive Officer Emmanuel Clarke said, “We delivered good results in the second quarter with an annualized adjusted Net Income ROE of 13.0% driven by strong Non-Life underwriting results and Investments contribution.
“The Non-life combined ratio of 87.7% was driven by a strong performance in our Specialty segment, with a technical ratio of 77.9%, highlighting the quality and diversification of our Specialty portfolio, but also by an improvement in our P&C non-CAT accident year technical ratio compared to the second quarter of 2016. Having successfully completed the acquisition of Aurigen in the quarter, we will now work on leveraging this platform to expand our footprint in North America, consistent with our strategy to increase our revenues and profitability in the broader Life and Health segment.”
