[October 26, 2016] |
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PartnerRe Ltd. Reports Third Quarter and Nine Month 2016 Results
PartnerRe Ltd. ("the Company") today reported a net income of $240.3
million for the third quarter of 2016. This includes net after-tax
realized and unrealized gains on investments of $56.4 million. The net
loss for the third quarter of 2015 was $243.3 million, including net
after-tax realized and unrealized losses on investments of $121.8
million and the amalgamation termination fee and reimbursement of
expenses paid to AXIS Capital of $315.0 million. The Company reported
operating earnings of $185.0 million for the third quarter of 2016,
which compares to operating earnings of $211.6 million for the third
quarter of 2015.
Net income for the first nine months of 2016 was $578.5 million. This
includes net after-tax realized and unrealized gains on investments of
$366.6 million. The net loss for the first nine months of 2015 was
$114.7 million, including net after-tax realized and unrealized losses
on investments of $238.7 million and the amalgamation termination fee
and reimbursement of expenses paid to Axis Capital of $315.0 million.
Operating earnings for the first nine months of 2016 were $163.6
million, which compares to operating earnings of $474.6 million for the
first nine months of 2015.
Operating earnings or loss is a non-GAAP metric which excludes certain
net after-tax realized and unrealized investment gains and losses, net
after-tax foreign exchange gains and losses, certain net after-tax
interest in results of equity method investments, and the amalgamation
termination fee and reimbursement of expenses paid to Axis Capital, and
is calculated after the payment of preferred dividends.
Net income and operating earnings and the associated annualized ROE's
for the third quarters and the first nine months of 2016 and 2015
include various transaction related costs and severance costs which
impact period over period comparability as follows:
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In US$ millions, except for percentages
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Q3 2016
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Q3 2015
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Year to date 2016
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Year to date 2015
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Operating earnings adjusted for transaction(1) and
severance costs, net of tax
|
|
197
|
|
|
219
|
|
|
257
|
|
|
547
|
|
Annualized operating ROE adjusted for transaction(1) and
severance costs, net of tax
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12.6
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%
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14.4
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%
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5.5
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%
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12.0
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%
|
Net income adjusted for transaction(1) and severance
costs, net of tax
|
|
252
|
|
|
79
|
|
|
672
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|
272
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|
Annualized net income ROE adjusted for transaction(1) and
severance costs, net of tax
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16.2
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%
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5.2
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%
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14.5
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%
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6.0
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%
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(1)
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Transaction costs include costs incurred related to the EXOR
acquisition, the terminated amalgamation with Axis Capital and the
negotiated earn-out consideration paid to the former shareholders
of Presidio Reinsurance Group, Inc.
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The Company's results for the third quarter of 2016 include $13 million,
pre-tax, related to severance costs associated with the reorganization
of the Company's investment operations and certain executive changes.
Commenting on results, PartnerRe President and Chief Executive Officer
Emmanuel Clarke said, "We delivered strong results in the third quarter,
with Operating ROE and Net Income ROE of 11.9% and 15.4%, respectively.
The Non-life combined ratio of 82.7% highlights our underwriting
discipline in a challenging environment, while continued strong
favorable prior year development of $173 million reflects the quality
and solidity of our balance sheet."
Mr. Clarke added, "The third quarter was also a very active quarter on
the corporate side, with the implementation of our new organization, the
strengthening of our leadership team with the appointment of James
Beedle as our new Head of Asia Pacific, the launch of our €750 million
Eurobond to refinance a portion of our liabilities, and the activities
that led to the acquisition of Aurigen, which we announced last week.
These are important achievements that will position us very well for the
longer term."
Highlights for the third quarter of 2016 compared to the same period in
2015 include:
Non-Life:
-
Total Non-Life net premiums written were down 4%. The decrease was
driven by the Property & Casualty ("P&C") segment which reported
decreases due to cancellations and non-renewals across all lines of
business, higher premiums ceded under retrocessional contracts in the
catastrophe line of business and the impact of foreign exchange. These
decreases were partially offset by new business across all lines of
business. The ratio between net premiums written to gross premiums
written was 89% in the third quarter of 2016, compared to 94% in the
third quarter of 2015, reflecting the higher use of retrocessional
coverage to protect our capital.
-
The Non-Life combined ratio of 82.7% was consistent with the ratio
reported in the third quarter of 2015, of 82.8%.
-
The Non-Life combined ratio continued to benefit from strong favorable
prior year development of 16.7 points (or $173 million) with both
Non-Life segments experiencing net favorable development from prior
accident years as actual reported losses from cedants were below
expectations. The combined ratio for the third quarter of 2015
included favorable prior year development of 22.2 points (or $246
million) and 5.4 points (or $60 million) of large losses related to
the Tianjin explosion.
Life and Health:
-
Net premiums written were down 9%. The decrease was primarily driven
by the impact of foreign exchange, the cancellation of certain
mortality contracts that did not meet the Company's return
expectations, and increased competitive pressures in the health
business.
-
Allocated underwriting result, which includes allocated investment
income and other expenses, was $11 million compared to $18 million in
the same period of 2015. This decrease primarily reflects a higher
combined ratio and lower favorable prior year reserve development in
the health business.
Investments:
-
Total investment return in the third quarter was 0.9%, for a total net
contribution of $161 million, of which $105 million was generated by
fixed income securities (government bonds and investment grade credit)
and $56 million was generated by other securities (mainly principal
finance and third party private equity funds).
-
The positive total net contribution generated by fixed income
securities, notwithstanding the increase in risk-free rates in the
U.S., highlights the diversified nature of our standard fixed income
portfolio with corporate credit and government agency mortgage backed
securities complementing government bonds.
-
Net investment income of $102 million was down 13%. This decrease
mainly reflects the impact of the reduction in risk within the
investment portfolio, the increased allocation to U.S. government
fixed income securities, the change in asset mix with a lower amount
of high yield fixed income securities and dividend yielding equity
securities, and lower reinvestment rates. These decreases were
partially offset by lower investment expenses following the
reorganization of the Company's investment operations.
Expenses and Taxes:
-
Other expenses of $91 million included $13 million, pre-tax, of
severance costs associated with the restructuring of the Company's
investment operations and certain executive changes. Other expenses
for the same period of 2015 of $416 million included the termination
fee and reimbursement of expenses paid to Axis Capital and other
transaction related costs of $322 million. Excluding the severance and
transaction-related one-time costs, other expenses were $78 million in
the third quarter of 2016, a 17% decrease compared to $94 million in
the same period of 2015, and the lowest quarterly level of other
expenses since 2007.
-
Interest expense was $12 million and preferred dividends were $14
million in the third quarter of 2016, in line with the same period of
2015.
-
For the third quarter of 2016, the effective tax rate on operating and
non-operating earnings was 13.8% and (5.5)%, respectively.
Balance Sheet and Capitalization:
-
Total investments, cash and cash equivalents and funds held - directly
managed were $17.5 billion at September 30, 2016, up 6.5% compared to
December 31, 2015.
-
Cash and cash equivalents, government fixed income securities and
investment grade fixed income securities were $14.9 billion at
September 30, 2016, representing 88% of the total cash and cash
equivalents and investment portfolio (88% at December 31, 2015). The
average rating and the average duration of the fixed income portfolio
at September 30, 2016 was A and 3.9 years respectively, while the
average duration of the Company's liabilities was 5.2 years.
-
Total capital was $8.8 billion at September 30, 2016, up 14% compared
to December 31, 2015, primarily due to the issuance of €750 million
senior debt in September 2016 and the net income for the first nine
months of 2016, partially offset by common dividends paid. On November
1, 2016, approximately $422 million of the proceeds raised from the
senior debt issuance will be used to redeem the Company's existing
$250 million senior notes due 2018 and Series D and Series E
cumulative preferred shares.
-
Common shareholders' equity attributable to PartnerRe (or book value)
and tangible book value were $6.3 billion and $5.8 billion,
respectively, at September 30, 2016, up 4.2% and 4.8%, respectively,
compared to December 31, 2015 due to the net income for the first nine
months of 2016, partially offset by common dividends paid.
-
During the third quarter of 2016, the Company paid a dividend of $90
million to EXOR, its parent company.
Acquisition of Aurigen
On October 20, 2016, PartnerRe announced that it had entered into a
definitive agreement to acquire 100% of the outstanding ordinary shares
of Aurigen Capital Limited, a North American life reinsurance company
for CAD 375 million (approximately $286 million). This acquisition
enables PartnerRe to expand its life reinsurance footprint in Canada and
the U.S. with virtually no overlap in market coverage. The acquisition
is subject to customary closing conditions including the receipt of
required regulatory approvals and is expected to be completed by the
first quarter of 2017.
The Company has posted its third quarter of 2016 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.
_________________________________________
On March 18, 2016, EXOR acquired 100% ownership of the Company's
common shares. Pursuant to the terms of the Merger Agreement, each
PartnerRe common share issued and outstanding immediately prior to the
effective time of the Merger was cancelled and converted into $137.50 in
cash per share and entitled to receive a one-time special pre-closing
cash dividend in the amount of $3.00 per common share (special
dividend). One common share at $1.00 par value was issued to Exor N.V.,
representing 100% common share ownership of the Company. Accordingly,
all net income per share, operating earnings per share and book value
per share data for the current year and the prior year periods is no
longer considered meaningful and has been excluded. The Company also
redefined its calculation of Annualized Operating ROE to be based on
average common shareholders' equity, accordingly, all comparative data
has been recast.
The data and comments provided above are from, or have been derived
from, PartnerRe's US GAAP consolidated balance sheets as of September
30, 2016 and December 31, 2015 and related consolidated income
statements for the three months and nine months ended September 30, 2016
and 2015.
As a result of recent organizational changes during the third quarter
of 2016, the Company redefined its financial reporting segments into the
following three segments: Property & Casualty, Specialty, and Life and
Health. Data shown for all periods in the segment information tables has
been recast to conform to the new presentation.
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 and the amalgamation termination fee and
reimbursement of expenses paid to Axis Capital.
The Company uses operating earnings and annualized operating return
on average common shareholders' equity (Annualized Operating ROE) 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), and the amalgamation termination fee
and reimbursement of expenses paid to Axis Capital. Operating
earnings/loss, adjusted by transaction and severance costs, annualized
operating ROE, adjusted by transaction and severance costs, net
income/loss adjusted by transaction and severance costs, and annualized
net income/loss ROE, adjusted by transaction and severance costs,
exclude the impact of transaction costs, related to the Company's merger
and acquisition activity, and severance costs, related to the
reorganization of its business units, investment operations and certain
executive changes.
The Company calculates annualized operating return on average common
shareholders' equity using operating earnings/loss for the period
divided by the average common shareholders' equity outstanding for the
period.
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 P&C and Specialty segments. 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 segment. 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.
_____________________________________________
PartnerRe Ltd. is a leading global reinsurer that helps insurance
companies reduce their earnings volatility, strengthen their capital and
grow their businesses through reinsurance solutions. Risks are
underwritten on a worldwide basis through the Company's three segments:
P&C, Specialty Lines and Life and Health. For the year ended December
31, 2015, total revenues were $5.4 billion. At September 30, 2016, total
assets were $23.2 billion, total capital was $8.8 billion and total
shareholders' equity attributable to PartnerRe was $7.2 billion.
PartnerRe enjoys strong financial strength ratings as follows: A.M. Best
A / Moody's A1 / Standard & Poor's A+.
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.
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PartnerRe Ltd.
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Consolidated Statements of Operations and Comprehensive Income
(Loss)(1)
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(Expressed in thousands of U.S. dollars)
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(Unaudited)
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For the three months ended September
30, 2016
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For the three months ended September 30, 2015
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For the nine months ended September
30, 2016
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For the nine months ended September 30, 2015
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Revenues
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Gross premiums written
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$
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1,244,311
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$
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1,267,961
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$
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4,254,247
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$
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4,448,907
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Net premiums written
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$
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1,131,260
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$
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1,190,393
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$
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3,886,375
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$
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4,165,912
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Decrease (increase) in unearned premiums
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178,319
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221,737
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(180,833
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)
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(191,235
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)
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Net premiums earned
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1,309,579
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1,412,130
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3,705,542
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3,974,677
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Net investment income
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101,773
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117,054
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|
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305,943
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341,877
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Net realized and unrealized investment gains (losses)
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55,548
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(133,017
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)
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414,682
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|
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(273,107
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)
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Other income
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|
3,266
|
|
|
3,056
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|
|
11,572
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|
|
7,584
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Total revenues
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1,470,166
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1,399,223
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4,437,739
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4,051,031
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Expenses
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|
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Losses and loss expenses and life policy benefits
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772,960
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804,196
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2,470,083
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|
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2,390,394
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Acquisition costs
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298,653
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346,520
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865,161
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905,774
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Other expenses (2)
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91,257
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|
|
415,818
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|
|
367,439
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|
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670,334
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Interest expense
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|
12,251
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|
|
12,249
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|
|
36,766
|
|
|
36,742
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Amortization of intangible assets
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6,588
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|
|
6,768
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|
|
19,764
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|
|
20,303
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Net foreign exchange losses (gains)
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8,362
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|
22,413
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(29,378
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)
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|
15,657
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Total expenses
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|
1,190,071
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1,607,964
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3,729,835
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4,039,204
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Income (loss) before taxes and interest in earnings (losses) of
equity method investments
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|
280,095
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(208,741
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)
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707,904
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|
|
11,827
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|
Income tax expense
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|
29,027
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|
|
17,170
|
|
|
92,368
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|
|
82,990
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Interest in earnings (losses) of equity method investments
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3,396
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|
|
(3,231
|
)
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|
5,468
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|
|
1,564
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Net income (loss)
|
|
254,464
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|
|
(229,142
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)
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|
621,004
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|
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(69,599
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)
|
Net loss (income) attributable to noncontrolling interests
|
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-
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|
5
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-
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(2,531
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)
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Net income (loss) attributable to PartnerRe
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|
254,464
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|
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(229,137
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)
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|
621,004
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|
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(72,130
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)
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Preferred dividends
|
|
14,184
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|
|
14,184
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|
|
42,551
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|
|
42,551
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Net income (loss) attributable to PartnerRe common shareholders
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$
|
240,280
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|
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$
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(243,321
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)
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$
|
578,453
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|
|
$
|
(114,681
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)
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Operating earnings attributable to PartnerRe common shareholders
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$
|
184,984
|
|
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$
|
211,583
|
|
|
$
|
163,598
|
|
|
$
|
474,614
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Comprehensive income (loss) attributable to PartnerRe
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$
|
234,980
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|
|
$
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(267,720
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)
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|
$
|
599,728
|
|
|
$
|
(106,874
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)
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(1)
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On March 18, 2016, EXOR acquired 100% ownership of the Company;
as such, per share data is no longer meaningful and has been
excluded.
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(2)
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Other expenses for the three months ended September 30, 2016
include $13 million related to severance costs associated with the
restructuring of the Company's investment operations and certain
executive changes, pre-tax. For the nine months ended September
30, 2016, Other expenses include $66 million of transaction costs
and accelerated stock based compensation expense related to the
closing of the Exor transaction and $40 million of severance costs
related to the restructuring of the Company's business units,
investment operations and certain executive changes, pre-tax.
Other expenses for the three months and nine months ended
September 30, 2015 include $322 million and $362 million,
respectively, of costs related to the Exor transaction and
terminated amalgamation with Axis, pre-tax. In addition, other
expenses for the nine months ended September 30, 2015 include $25
million, pre-tax, related to the negotiated earn-out consideration
paid to the former shareholders of Presidio Reinsurance Group, Inc.
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PartnerRe Ltd.
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Consolidated Balance Sheets(1)
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(Expressed in thousands of U.S. dollars, except parenthetical
share data)
|
(Unaudited)
|
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September 30,
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December 31,
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2016
|
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2015
|
Assets
|
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Investments:
|
|
|
|
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Fixed maturities, at fair value
|
|
$
|
13,698,129
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|
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$
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13,448,262
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|
Short-term investments, at fair value
|
|
28,972
|
|
|
46,688
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|
Equities, at fair value
|
|
42,284
|
|
|
443,861
|
|
Other invested assets
|
|
1,141,825
|
|
|
399,204
|
|
Total investments
|
|
14,911,210
|
|
|
14,338,015
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|
Funds held - directly managed
|
|
538,579
|
|
|
539,743
|
|
Cash and cash equivalents
|
|
2,079,475
|
|
|
1,577,097
|
|
Accrued investment income
|
|
128,648
|
|
|
141,672
|
|
Reinsurance balances receivable
|
|
3,017,483
|
|
|
2,428,020
|
|
Reinsurance recoverable on paid and unpaid losses
|
|
382,341
|
|
|
282,916
|
|
Funds held by reinsured companies
|
|
741,825
|
|
|
657,815
|
|
Deferred acquisition costs
|
|
647,568
|
|
|
629,372
|
|
Deposit assets
|
|
72,047
|
|
|
88,152
|
|
Net tax assets
|
|
99,038
|
|
|
102,596
|
|
Goodwill
|
|
456,380
|
|
|
456,380
|
|
Intangible assets
|
|
113,248
|
|
|
133,011
|
|
Other assets
|
|
42,431
|
|
|
31,254
|
|
Total assets
|
|
$
|
23,230,273
|
|
|
$
|
21,406,043
|
|
Liabilities
|
|
|
|
|
Unpaid losses and loss expenses
|
|
$
|
9,566,472
|
|
|
$
|
9,064,711
|
|
Policy benefits for life and annuity contracts
|
|
2,050,970
|
|
|
2,051,935
|
|
Unearned premiums
|
|
1,922,633
|
|
|
1,644,757
|
|
Other reinsurance balances payable
|
|
319,391
|
|
|
246,089
|
|
Deposit liabilities
|
|
19,010
|
|
|
44,420
|
|
Net tax liabilities
|
|
195,944
|
|
|
218,652
|
|
Accounts payable, accrued expenses and other
|
|
346,783
|
|
|
411,539
|
|
Debt related to senior notes
|
|
1,584,445
|
|
|
750,000
|
|
Debt related to capital efficient notes
|
|
70,989
|
|
|
70,989
|
|
Total liabilities
|
|
16,076,637
|
|
|
14,503,092
|
|
Shareholders' Equity
|
|
|
|
|
Common shares (par value $1.00; issued: 2016, 1 share and 2015,
87,237,220 shares)
|
|
-
|
|
|
87,237
|
|
Preferred shares (par value $1.00; issued and outstanding: 2016 and
2015, 34,150,000 shares; aggregate liquidation value: 2016 and 2015,
$853,750)
|
|
34,150
|
|
|
34,150
|
|
Additional paid-in capital
|
|
2,535,166
|
|
|
3,982,147
|
|
Accumulated other comprehensive loss
|
|
(104,559
|
)
|
|
(83,283
|
)
|
Retained earnings
|
|
4,688,879
|
|
|
6,146,802
|
|
Common shares held in treasury, at cost (2016, nil shares; 2015,
39,303,068 shares)
|
|
-
|
|
|
(3,266,552
|
)
|
Total shareholders' equity attributable to PartnerRe
|
|
7,153,636
|
|
|
6,900,501
|
|
Noncontrolling interests
|
|
-
|
|
|
2,450
|
|
Total shareholders' equity
|
|
7,153,636
|
|
|
6,902,951
|
|
Total liabilities and shareholders' equity
|
|
$
|
23,230,273
|
|
|
$
|
21,406,043
|
|
(1)
|
|
|
On March 18, 2016, EXOR acquired 100% ownership of the Company;
as such, per share data is no longer meaningful and has been
excluded.
|
|
|
|
|
|
|
|
|
PartnerRe Ltd.
|
Segment Information
|
(Expressed in millions of U.S. dollars)
|
(Unaudited)
|
|
|
|
|
|
For the three months ended September 30, 2016
|
|
|
P&C segment
|
|
Specialty segment
|
|
Total Non-life
|
|
Life and Health segment
|
|
Corporate and Other
|
|
Total
|
Gross premiums written
|
|
$
|
497
|
|
|
$
|
466
|
|
|
$
|
963
|
|
|
$
|
281
|
|
|
$
|
-
|
|
|
$
|
1,244
|
|
Net premiums written
|
|
$
|
439
|
|
|
$
|
421
|
|
|
$
|
860
|
|
|
$
|
271
|
|
|
$
|
-
|
|
|
$
|
1,131
|
|
Decrease in unearned premiums
|
|
141
|
|
|
35
|
|
|
176
|
|
|
2
|
|
|
-
|
|
|
178
|
|
Net premiums earned
|
|
$
|
580
|
|
|
$
|
456
|
|
|
$
|
1,036
|
|
|
$
|
273
|
|
|
$
|
-
|
|
|
$
|
1,309
|
|
Losses and loss expenses and life policy benefits
|
|
(264
|
)
|
|
(279
|
)
|
|
(543
|
)
|
|
(230
|
)
|
|
-
|
|
|
(773
|
)
|
Acquisition costs
|
|
(140
|
)
|
|
(124
|
)
|
|
(264
|
)
|
|
(34
|
)
|
|
-
|
|
|
(298
|
)
|
Technical result
|
|
$
|
176
|
|
|
$
|
53
|
|
|
$
|
229
|
|
|
$
|
9
|
|
|
$
|
-
|
|
|
$
|
238
|
|
Other income
|
|
|
|
|
|
-
|
|
|
2
|
|
|
1
|
|
|
3
|
|
Other expenses
|
|
|
|
|
|
(50
|
)
|
|
(15
|
)
|
|
(26
|
)
|
|
(91
|
)
|
Underwriting result
|
|
|
|
|
|
$
|
179
|
|
|
$
|
(4
|
)
|
|
n/a
|
|
|
$
|
150
|
|
Net investment income
|
|
|
|
|
|
|
|
15
|
|
|
87
|
|
|
102
|
|
Allocated underwriting result (1)
|
|
|
|
|
|
|
|
$
|
11
|
|
|
n/a
|
|
|
n/a
|
|
Net realized and unrealized investment gains
|
|
|
|
|
|
|
|
|
|
56
|
|
|
56
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
(12
|
)
|
|
(12
|
)
|
Amortization of intangible assets
|
|
|
|
|
|
|
|
|
|
(7
|
)
|
|
(7
|
)
|
Net foreign exchange losses
|
|
|
|
|
|
|
|
|
|
(9
|
)
|
|
(9
|
)
|
Income tax expense
|
|
|
|
|
|
|
|
|
|
(29
|
)
|
|
(29
|
)
|
Interest in earnings of equity method investments
|
|
|
|
|
|
|
|
|
|
3
|
|
|
3
|
|
Net income
|
|
|
|
|
|
|
|
|
|
n/a
|
|
|
$
|
254
|
|
Loss ratio (2)
|
|
45.5
|
%
|
|
61.2
|
%
|
|
52.4
|
%
|
|
|
|
|
|
|
|
|
Acquisition ratio (3)
|
|
24.2
|
|
|
27.2
|
|
|
25.5
|
|
|
|
|
|
|
|
|
|
Technical ratio (4)
|
|
69.7
|
%
|
|
88.4
|
%
|
|
77.9
|
%
|
|
|
|
|
|
|
|
|
Other expense ratio (5)
|
|
|
|
|
|
4.8
|
|
|
|
|
|
|
|
|
|
Combined ratio (6)
|
|
|
|
|
|
82.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended September 30, 2015
|
|
|
P&C segment
|
|
Specialty segment
|
|
Total Non-life
|
|
Life and Health segment
|
|
Corporate and Other
|
|
Total
|
Gross premiums written
|
|
$
|
525
|
|
|
$
|
429
|
|
|
$
|
954
|
|
|
$
|
314
|
|
|
$
|
-
|
|
|
$
|
1,268
|
|
Net premiums written
|
|
$
|
481
|
|
|
$
|
411
|
|
|
$
|
892
|
|
|
$
|
298
|
|
|
$
|
-
|
|
|
$
|
1,190
|
|
Decrease in unearned premiums
|
|
153
|
|
|
65
|
|
|
218
|
|
|
4
|
|
|
-
|
|
|
222
|
|
Net premiums earned
|
|
$
|
634
|
|
|
$
|
476
|
|
|
$
|
1,110
|
|
|
$
|
302
|
|
|
$
|
-
|
|
|
$
|
1,412
|
|
Losses and loss expenses and life policy benefits
|
|
(300
|
)
|
|
(256
|
)
|
|
(556
|
)
|
|
(248
|
)
|
|
-
|
|
|
(804
|
)
|
Acquisition costs
|
|
(156
|
)
|
|
(153
|
)
|
|
(309
|
)
|
|
(38
|
)
|
|
-
|
|
|
(347
|
)
|
Technical result
|
|
$
|
178
|
|
|
$
|
67
|
|
|
$
|
245
|
|
|
$
|
16
|
|
|
$
|
-
|
|
|
$
|
261
|
|
Other income
|
|
|
|
|
|
-
|
|
|
3
|
|
|
-
|
|
|
3
|
|
Other expenses
|
|
|
|
|
|
(55
|
)
|
|
(16
|
)
|
|
(345
|
)
|
|
(416
|
)
|
Underwriting result
|
|
|
|
|
|
$
|
190
|
|
|
$
|
3
|
|
|
n/a
|
|
|
$
|
(152
|
)
|
Net investment income
|
|
|
|
|
|
|
|
15
|
|
|
102
|
|
|
117
|
|
Allocated underwriting result (1)
|
|
|
|
|
|
|
|
$
|
18
|
|
|
n/a
|
|
|
n/a
|
|
Net realized and unrealized investment losses
|
|
|
|
|
|
|
|
|
|
(133
|
)
|
|
(133
|
)
|
Interest expense
|
|
|
|
|
|
|
|
|
|
(12
|
)
|
|
(12
|
)
|
Amortization of intangible assets
|
|
|
|
|
|
|
|
|
|
(7
|
)
|
|
(7
|
)
|
Net foreign exchange losses
|
|
|
|
|
|
|
|
|
|
(22
|
)
|
|
(22
|
)
|
Income tax expense
|
|
|
|
|
|
|
|
|
|
(17
|
)
|
|
(17
|
)
|
Interest in losses of equity method investments
|
|
|
|
|
|
|
|
|
|
(3
|
)
|
|
(3
|
)
|
Net loss
|
|
|
|
|
|
|
|
|
|
n/a
|
|
|
$
|
(229
|
)
|
Loss ratio (2)
|
|
47.4
|
%
|
|
53.8
|
%
|
|
50.1
|
%
|
|
|
|
|
|
|
|
|
Acquisition ratio (3)
|
|
24.5
|
|
|
32.2
|
|
|
27.8
|
|
|
|
|
|
|
|
|
|
Technical ratio (4)
|
|
71.9
|
%
|
|
86.0
|
%
|
|
77.9
|
%
|
|
|
|
|
|
|
|
|
Other expense ratio (5)
|
|
|
|
|
|
4.9
|
|
|
|
|
|
|
|
|
|
Combined ratio (6)
|
|
|
|
|
|
82.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 nine months ended September 30, 2016
|
|
|
P&C segment
|
|
Specialty segment
|
|
Total Non-life
|
|
Life
and Health
segment
|
|
Corporate
and Other
|
|
Total
|
Gross premiums written
|
|
$
|
1,872
|
|
|
$
|
1,512
|
|
|
$
|
3,384
|
|
|
$
|
870
|
|
|
$
|
-
|
|
|
$
|
4,254
|
|
Net premiums written
|
|
$
|
1,667
|
|
|
$
|
1,387
|
|
|
$
|
3,054
|
|
|
$
|
832
|
|
|
$
|
-
|
|
|
$
|
3,886
|
|
Increase in unearned premiums
|
|
(120
|
)
|
|
(54
|
)
|
|
(174
|
)
|
|
(6
|
)
|
|
-
|
|
|
(180
|
)
|
Net premiums earned
|
|
$
|
1,547
|
|
|
$
|
1,333
|
|
|
$
|
2,880
|
|
|
$
|
826
|
|
|
$
|
-
|
|
|
$
|
3,706
|
|
Losses and loss expenses and life policy benefits
|
|
(933
|
)
|
|
(859
|
)
|
|
(1,792
|
)
|
|
(678
|
)
|
|
-
|
|
|
(2,470
|
)
|
Acquisition costs
|
|
(399
|
)
|
|
(367
|
)
|
|
(766
|
)
|
|
(99
|
)
|
|
-
|
|
|
(865
|
)
|
Technical result
|
|
$
|
215
|
|
|
$
|
107
|
|
|
$
|
322
|
|
|
$
|
49
|
|
|
$
|
-
|
|
|
$
|
371
|
|
Other income (loss)
|
|
|
|
|
|
2
|
|
|
7
|
|
|
2
|
|
|
11
|
|
Other expenses
|
|
|
|
|
|
(175
|
)
|
|
(49
|
)
|
|
(143
|
)
|
|
(367
|
)
|
Underwriting result
|
|
|
|
|
|
$
|
149
|
|
|
$
|
7
|
|
|
n/a
|
|
|
$
|
15
|
|
Net investment income
|
|
|
|
|
|
|
|
42
|
|
|
264
|
|
|
306
|
|
Allocated underwriting result (1)
|
|
|
|
|
|
|
|
$
|
49
|
|
|
n/a
|
|
|
n/a
|
|
Net realized and unrealized investment gains
|
|
|
|
|
|
|
|
|
|
415
|
|
|
415
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
(37
|
)
|
|
(37
|
)
|
Amortization of intangible assets
|
|
|
|
|
|
|
|
|
|
(20
|
)
|
|
(20
|
)
|
Net foreign exchange gains
|
|
|
|
|
|
|
|
|
|
29
|
|
|
29
|
|
Income tax expense
|
|
|
|
|
|
|
|
|
|
(92
|
)
|
|
(92
|
)
|
Interest in earnings of equity method investments
|
|
|
|
|
|
|
|
|
|
5
|
|
|
5
|
|
Net income
|
|
|
|
|
|
|
|
|
|
n/a
|
|
|
$
|
621
|
|
Loss ratio (2)
|
|
60.3
|
%
|
|
64.5
|
%
|
|
62.2
|
%
|
|
|
|
|
|
|
|
|
Acquisition ratio (3)
|
|
25.8
|
|
|
27.5
|
|
|
26.6
|
|
|
|
|
|
|
|
|
|
Technical ratio (4)
|
|
86.1
|
%
|
|
92.0
|
%
|
|
88.8
|
%
|
|
|
|
|
|
|
|
|
Other expense ratio (5)
|
|
|
|
|
|
6.1
|
|
|
|
|
|
|
|
|
|
Combined ratio (6)
|
|
|
|
|
|
94.9
|
%
|
|
|
|
|
|
|
|
|
|
|
For the nine months ended September 30, 2015
|
|
|
P&C segment
|
|
Specialty segment
|
|
Total Non-life
|
|
Life
and Health
segment
|
|
Corporate
and Other
|
|
Total
|
Gross premiums written
|
|
$
|
1,991
|
|
|
$
|
1,486
|
|
|
$
|
3,477
|
|
|
$
|
972
|
|
|
$
|
-
|
|
|
$
|
4,449
|
|
Net premiums written
|
|
$
|
1,858
|
|
|
$
|
1,384
|
|
|
$
|
3,242
|
|
|
$
|
924
|
|
|
$
|
-
|
|
|
$
|
4,166
|
|
Increase in unearned premiums
|
|
(171
|
)
|
|
(13
|
)
|
|
(184
|
)
|
|
(7
|
)
|
|
-
|
|
|
(191
|
)
|
Net premiums earned
|
|
$
|
1,687
|
|
|
$
|
1,371
|
|
|
$
|
3,058
|
|
|
$
|
917
|
|
|
$
|
-
|
|
|
$
|
3,975
|
|
Losses and loss expenses and life policy benefits
|
|
(842
|
)
|
|
(801
|
)
|
|
(1,643
|
)
|
|
(748
|
)
|
|
1
|
|
|
(2,390
|
)
|
Acquisition costs
|
|
(420
|
)
|
|
(384
|
)
|
|
(804
|
)
|
|
(102
|
)
|
|
-
|
|
|
(906
|
)
|
Technical result
|
|
$
|
425
|
|
|
$
|
186
|
|
|
$
|
611
|
|
|
$
|
67
|
|
|
$
|
1
|
|
|
$
|
679
|
|
Other income
|
|
|
|
|
|
-
|
|
|
4
|
|
|
3
|
|
|
7
|
|
Other expenses
|
|
|
|
|
|
(162
|
)
|
|
(47
|
)
|
|
(461
|
)
|
|
(670
|
)
|
Underwriting result
|
|
|
|
|
|
$
|
449
|
|
|
$
|
24
|
|
|
n/a
|
|
|
$
|
16
|
|
Net investment income
|
|
|
|
|
|
|
|
45
|
|
|
297
|
|
|
342
|
|
Allocated underwriting result (1)
|
|
|
|
|
|
|
|
$
|
69
|
|
|
n/a
|
|
|
n/a
|
|
Net realized and unrealized investment losses
|
|
|
|
|
|
|
|
|
|
(273
|
)
|
|
(273
|
)
|
Interest expense
|
|
|
|
|
|
|
|
|
|
(37
|
)
|
|
(37
|
)
|
Amortization of intangible assets
|
|
|
|
|
|
|
|
|
|
(20
|
)
|
|
(20
|
)
|
Net foreign exchange losses
|
|
|
|
|
|
|
|
|
|
(16
|
)
|
|
(16
|
)
|
Income tax expense
|
|
|
|
|
|
|
|
|
|
(83
|
)
|
|
(83
|
)
|
Interest in earnings of equity method investments
|
|
|
|
|
|
|
|
|
|
1
|
|
|
1
|
|
Net loss
|
|
|
|
|
|
|
|
|
|
n/a
|
|
|
$
|
(70
|
)
|
Loss ratio (2)
|
|
49.9
|
%
|
|
58.4
|
%
|
|
53.7
|
%
|
|
|
|
|
|
|
|
|
Acquisition ratio (3)
|
|
24.9
|
|
|
28.0
|
|
|
26.3
|
|
|
|
|
|
|
|
|
|
Technical ratio (4)
|
|
74.8
|
%
|
|
86.4
|
%
|
|
80.0
|
%
|
|
|
|
|
|
|
|
|
Other expense ratio (5)
|
|
|
|
|
|
5.3
|
|
|
|
|
|
|
|
|
|
Combined ratio (6)
|
|
|
|
|
|
85.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20161026006483/en/
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