July 27, 2015
PEMBROKE, Bermuda–(BUSINESS WIRE)– PartnerRe Ltd. (NYSE:PRE) today reported a net loss of $103.1 million, or $2.16 per share for the second quarter of 2015. This includes net after-tax realized and unrealized losses on investments of $217.2 million, or $4.55 per share. Net income for the second quarter of 2014 was $257.7 million, or $5.02 per share, including net after-tax realized and unrealized gains on investments of $123.7 million, or $2.41 per share. The Company reported operating earnings of $112.5 million, or $2.35 per share, for the second quarter of 2015. This compares to operating earnings of $133.5 million, or $2.60 per share, for the second quarter of 2014.
Net income for the first six months of 2015 was $128.6 million, or $2.64 per share. This includes net after-tax realized and unrealized losses on investments of $116.9 million, or $2.39 per share. Net income for the first six months of 2014 was $553.3 million, or $10.64 per share. This includes net after-tax realized and unrealized gains on investments of $239.6 million, or $4.61 per share. Operating earnings for the first six months of 2015 were $263.0 million, or $5.39 per share. This compares to operating earnings of $310.4 million, or $5.97 per share, for the first six 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 and certain net after-tax withholding tax on inter-company dividends (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 Interim Chief Executive Officer David Zwiener said, “We continued to see challenging market conditions during the second quarter, both in terms of persistent competitive reinsurance pressures and difficult financial markets. Nevertheless, we posted strong technical results in the quarter, which when combined with our first quarter performance, resulted in an operating ROE of 8.5%. As you saw from our press release earlier this month, our tangible book value per share was impacted by increases in longer term risk-free rates both in the U.S. and Europe, resulting in a significant mark-to-market loss on our investment portfolio. For the year to date, however, our tangible book value is up 1%.”
Mr. Zwiener added, “As we look ahead to the important fall renewal season, we are encouraged by the success of the current June/July renewals, which accounts for approximately 10% of our Non-Life treaty business. Despite continued competitive pressures, we saw some initial signs that markets are beginning to stabilize, and we wrote a number of profitable new treaties. This speaks to our strong market presence, the quality of our client relationships, and underscores the strength of the PartnerRe franchise.”