February 8, 2016
PEMBROKE, Bermuda–(BUSINESS WIRE)– 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.”