Bermuda-based PartnerRe Ltd. posted net income of $141.5 million, or $2.32 per share on a fully diluted basis for the first quarter of 2009, compared to $129 million in the same period of 2008.
“Net income includes net after-tax realized and unrealized losses on investments of $74.5 million, or $1.30 per share, as well as a net after-tax gain of $57.0 million, or $0.99 per share, from the purchase of approximately 75 percent of the Company’s outstanding Capital Efficient Notes (CENts),” the bulletin explained.
Operating earnings for the first quarter of 2009 were $155.7 million, or $2.72 per share on a fully diluted basis. This compares to operating earnings of $110.2 million, or $1.98 per share, for the first quarter of 2008. “Operating earnings exclude net after-tax realized and unrealized investment gains and losses, net after-tax realized gain on the purchase of the CENts, and net after-tax interest in results of equity investments, and is calculated after payment of preferred dividends.”
Net premiums written during the first quarter 2009 declined slightly to $1.308 billion from $1.4115 billion in Q1 2008.However, PartnerRe’s non-life combined ratio declined to 87 percent for the quarter from 92.3 percent in Q1 2008.
President and CEO Patrick Thiele commented: “PartnerRe posted solid results for the first quarter 2009, with a 16.9 percent operating return on beginning equity and 2.5 percent growth in GAAP book value per share. The quarter was relatively uneventful in terms of large losses, resulting in a Non-Life combined ratio of 87.0 percent.
“The strengthening of the U.S. dollar impacted written and earned premium and net investment income growth, which would all have been positive if not for the impact of currency changes. In addition, in a difficult capital markets environment, our invested assets posted a positive return of 0.5 percent in the quarter, in local currencies.”
He added: “We are seeing competing trends impacting profitability in the non-life reinsurance market. Pricing and profitability are improving in catastrophe-exposed property lines in the U.S. and Japan, but elsewhere, especially in casualty lines, the impact of stagnant pricing and interest rates near historic lows means there is continued pressure on returns on capital.
“In this environment, PartnerRe, with its diversified book and geographic spread, is well-positioned to take advantage of the best opportunities wherever they may be. We are large enough and secure enough to be meaningful to our clients, have the required scale to efficiently deliver our products and services across the globe, yet still nimble and responsive to attractive opportunities.”
The full report, additional information and details concerning the access to today’s earnings conference call – to be held at 10:00 a.m. EDT – may be obtained on the Company’s web site at: www.partnerre.com.
Source: PartnerRe
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