Bermuda-based PartnerRe Ltd. reported a net loss of $175.6 million, or $3.37 per share for the second quarter of 2013. The earnings announcement said the figure “includes net after-tax realized and unrealized losses on investments of $230.0 million, or $4.07 per share.”
Net income for the second quarter of 2012, however, was $176.1 million, or $2.50 per share, including net after-tax realized and unrealized gains on investments of $18.3 million, or $0.29 per share.
PartnerRe reported operating earnings for Q2 2013 of $51.1 million, or $0.90 per share, compared with operating earnings of $142.0 million, or $2.20 per share, for the second quarter of 2012.
Net income for the first six months of 2013 was $58.8 million, or $0.34 per share. The bulletin explained that “this includes net after-tax realized and unrealized losses on investments of $217.7 million, or $3.72 per share. Net income for the first six months of 2012 was $536.3 million, or $7.76 per share, including net after-tax realized and unrealized gains on investments of $177.5 million, or $2.73 per share. Operating earnings for the first six months of 2013 were $253.1 million, or $4.32 per share. This compares to operating earnings of $323.7 million, or $4.97 per share, for the first six months of 2012.”
PartnerRe’s combined ratio for the period was 87.8 percent.
President and CEO Costas Miranthis commented: “I am pleased that despite above average catastrophe and other large loss activity, as well as a meaningful expense charge related to the organizational restructuring we announced earlier in the quarter, we had a profitable operating quarter.
“Our book value was impacted by mark-to-market losses on our fixed income portfolio as a result of the recent increase in interest rates. Despite the negative impact on book value during the quarter, we believe a higher interest rate environment is beneficial to our business over the longer term.”
“The reinsurance market environment for the June and July renewals was competitive, but broadly in line with our expectations. Our scale, globally diversified portfolio, and experienced teams position us well to deal with the challenges of the current environment.”
Source: PartnerRe
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