Bermuda-based PartnerRe Ltd. reported net income of $474.3 million, or $8.10 per share on a fully diluted basis for the second quarter of 2009. The bulletin said the figure “includes net after-tax realized and unrealized gains on investments of $279.6 million, or $4.86 per share. Net loss for the second quarter of 2008 was $26.0 million, or $0.64 per share, including net after-tax realized and unrealized losses on investments of $219.1 million, or $4.04 per share.”
Operating earnings (which excluded capital gains/losses) for the second quarter of 2009 were $179.3 million, or $3.12 per share on a fully diluted basis, compared to $183.8 million, or $3.39 per share, for the second quarter of 2008.
Net income for the first six months of 2009 was $615.8 million, or $10.43 per share, which also includes “net after-tax realized and unrealized gains on investments of $205.1 million, or $3.57 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) in the first quarter of 2009.”
Net income for the first six months of 2008 was $103.0 million, or $1.54 per share, including net after-tax realized and unrealized losses on investments of $210.1 million, or $3.77 per share. Operating earnings for the first six months of 2009 were $335.0 million, or $5.84 per share on a fully diluted basis. This compares to operating earnings of $294.0 million, or $5.28 per share, for the first six months of 2008.
Commenting on the second quarter and half year 2009 results, PartnerRe President & CEO Patrick Thiele stated: “PartnerRe had an excellent second quarter and first half of 2009, with both its reinsurance and capital markets activities performing well. For the first six months of 2009, we achieved an operating return on beginning equity of 18 percent, and a 15 percent growth in GAAP book value per share. Our reinsurance results benefited from a low level of large losses while our investment operations participated fully in the improvement shown by the global capital markets.”
Net premiums written for the second quarter of 2009 were $844.7 million, compared to $956.3 million in the second quarter of 2008. Total revenues for the second quarter of 2009 were $1.3 billion, compared to $809.4 million in the second quarter of 2008, and included $826.1 million of net premiums earned, compared to $955.5 million in the second quarter of 2008; net investment income of $135.6 million, which compares to $145.5 million in the second quarter of 2008; and pre-tax net realized and unrealized investment gains of $306.5 million as compared to pre-tax net realized and unrealized investment losses of $296.3 million for the second quarter of 2008.
Partner Re said that as of June 30, 2009, “total capital was $5.3 billion, and total shareholders’ equity was $4.8 billion. This compares to total capital of $4.9 billion and total shareholders’ equity of $4.2 billion at December 31, 2008. Book value per common share at June 30, 2009 was $73.85 on a fully diluted basis compared to $63.95 per diluted share at December 31, 2008.
Thiele added: “Non-life market conditions at July 1 were mixed, with only selected specialty lines and Global P&C lines showing improvement. Within that environment, we grew our renewal book by approximately 11 percent (on a constant exchange basis) with expected profitability that is in-line with our long-term targets.
“We remain focused on maintaining a well-balanced portfolio of attractively priced risks under any and all market conditions. Our planned acquisition of PARIS RE is consistent with that objective, and will provide us with both increased diversification of risk and significant growth opportunities at a time when industry demand is likely to remain stagnant. This acquisition will also enhance our financial strength and flexibility through the addition of approximately $1.7 billion in incremental shareholders’ equity. We are confident that the larger and stronger PartnerRe will be better able to achieve its financial goals, with reduced risk, in the uncertain environment we are facing.”
The full report and additional information may be obtained on the Company’s web site at: www.partnerre.com in the Investor Relations section.
Source: PartnerRe
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