Bermuda-based PartnerRe Ltd. reported net income of $57.0 million, or $0.65 per share on a fully diluted basis for the fourth quarter of 2010, which includes net after-tax realized and unrealized losses on investments of $71.8 million, or $0.96 per share. Net income for the fourth quarter of 2009 was $354.4 million, or $4.25 per share, including net after-tax realized and unrealized gains on investments of $17.6 million, or $0.22 per share.
Operating earnings for the fourth quarter of 2010 were $113.0 million, or $1.52 per share on a fully diluted basis. This compares to operating earnings of $315.0 million, or $3.87 per share, for the fourth quarter of 2009.
Net income for the full year 2010 was $852.6 million, or $10.46 per share, which also includes net after-tax realized and unrealized gains on investments of $301.5 million, or $3.86 per share. Net income for the full year 2009 was $1.5 billion, or $23.51 per share, including net after-tax realized and unrealized gains on investments of $497.0 million, or $7.78 per share, as well as a net after-tax gain of $57.0 million, or $0.89 per share, from the purchase of approximately 75 percent of the Company’s outstanding Capital Efficient Notes (CENts) in the first quarter of 2009.
Operating earnings for the full year 2010 were $504.7 million, or $6.45 per share on a fully diluted basis. This compares to operating earnings of $932.1 million, or $14.59 per share, for the full year 2009.
PartnerRe’s non-life combined ratio for the fourth quarter rose to 94.6 percent from 80.3 percent during the same period in 2009. For the full year the combined ratio was 95 percent, compared to 81.8 percent in 2009.
President and CEO Costas Miranthis commented: “Despite a challenging quarter and year, both of which included a number of catastrophe and large loss events, our underlying portfolio continues to perform well. We are also pleased with the performance of our investment portfolio, although lower reinvestment rates continue to impact operating earnings. This performance, combined with the capital management activities we executed during 2010, resulted in our book value per share growing 11 percent year-over-year to close at a new high for PartnerRe.
“We saw a continuation of moderately declining pricing and terms in the January 1, 2011 renewals,” he added. As planned, we optimized the combined portfolio including the former PARIS RE business to improve balance and risk-adjusted returns. In the current market, this led to the non-renewal of some business and restructuring of other business. Although current market conditions remain challenging, our strong capital position, global franchise and broad capabilities position us well to take advantage of any opportunities as they arise.”
Source: Partner Re
Was this article valuable?
Here are more articles you may enjoy.
Jury Awards $80M to 3 Former Zurich NA Employees for Wrongful Termination 
Survey Shows Majority of Florida, California Homeowners Seeing Higher Insurance Costs 
Chubb to Acquire MGA Healthy Paws From Aon 
Dubai Floods Expose Weaknesses to a Rapidly Changing Climate 
