| Exhibit 99.2 | ||
 | ||
PartnerRe Ltd.
Financial Supplement
Financial Information
as at March 31, 2016
(unaudited)
The following financial supplement is provided to assist in your understanding of
PartnerRe Ltd.
This report is for information purposes only. It should be read in conjunction with
documents filed with the SEC by PartnerRe Ltd., including the Company’s Annual
Report on Form 10-K and Quarterly Reports on Form 10-Q.
PartnerRe Ltd.
Financial Supplement - March 31, 2016
Table of Contents
| Page | ||
| Regulation G | ||
| Life Value in Force | ||
| Consolidated Financial Statements | ||
| Consolidated Statements of Operations | ||
| Condensed Consolidated Balance Sheets | 2 | |
| Condensed Consolidated Statements of Cash Flows | ||
| Consolidated Statements of Comprehensive Income (Loss) | ||
| Segment Information | ||
| For the three months ended March 31, 2016 and 2015 | ||
| Non-life segment | ||
| North America sub-segment | ||
| Global (Non-U.S.) P&C sub-segment | ||
| Global Specialty sub-segment | ||
| Catastrophe sub-segment | ||
| Life and Health segment | ||
| Corporate and Other | ||
| Distribution of Premiums | ||
| Distribution of Premiums by line of business, geography and production source | ||
| Distribution of Premiums by reinsurance type for the Non-life sub-segment | ||
| Investments | ||
| Investment Portfolio | ||
| Distribution of Corporate Bonds | ||
| Distribution of Equities | ||
| Distribution of Mortgage/Asset-Backed Securities | ||
| Funds Held - Directly Managed Portfolio | ||
| Composition of Net Investment Income and Net Realized and Unrealized Investment Gains (Losses) | ||
| Loss Reserves | ||
| Analysis of Unpaid Losses and Loss Expenses | ||
| Analysis of Policy Benefits for Life and Annuity Contracts | ||
| Reserve Development | ||
| Natural Catastrophe Probable Maximum Losses (PMLs) | ||
| Reconciliation of GAAP and non-GAAP measures | ||
| PartnerRe Ltd. |
Regulation G
In addition to the GAAP financial measures set forth in this Financial Supplement, the Company has also included certain non-GAAP financial measures within the meaning of Regulation G. Management believes that these non-GAAP financial measures are important to investors, analysts, rating agencies and others who use the Company’s financial information and will help provide a consistent basis for comparison between quarters and for comparison with other companies within the industry. However, investors should consider these non-GAAP measures in addition to, and not as a substitute for, measures of financial performance prepared in accordance with GAAP.
The reconciliation of non-GAAP financial measures to the most comparable GAAP financial measures in accordance with Regulation G is included within the relevant tables.
Operating Earnings (Loss) available to PartnerRe Common Shareholders (Operating Earnings (Loss)) and Annualized Operating Return on Average Common Shareholders' Equity (Annualized Operating ROE): The Company uses Operating Earnings (Loss) and Annualized Operating ROE to measure performance, as these measures focus on the underlying fundamentals of the Company’s operations. Operating Earnings (Loss) exclude the impact of net realized and unrealized gains and losses on investments, net of tax (except where the Company has made a strategic investment in an insurance or reinsurance related investee), net foreign exchange gains and losses, net of tax, loss on redemption of preferred shares and the interest in earnings (losses) of equity method investments, net of tax (except where the Company has made a strategic investment in an insurance or reinsurance related investee and where the Company does not control the investee’s activities), certain withholding taxes on intercompany dividends (included in other expenses) and the amalgamation termination fee and reimbursement of expenses paid to Axis Capital (included in other expenses) and are calculated after preferred dividends. The Company calculates Annualized Operating ROE using Operating Earnings (Loss) for the period divided by the average common shareholders' equity outstanding for the period. Operating Earnings (Loss) should not be viewed as a substitute for Net Income (Loss) prepared in accordance with GAAP. Annualized Operating ROE supplements GAAP information.
Tangible Book Value : The Company calculates Tangible Book Value using common shareholders' equity attributable to PartnerRe less goodwill and intangible assets, net of tax.
Total Capital: The Company calculates Total Capital as the sum of common shareholders' equity attributable to PartnerRe, preferred shares, long-term debt, senior notes and capital efficient notes. The Company uses Total Capital as a measure to manage the capital structure of the Company.
Basis of presentation: On March 18, 2016 EXOR acquired 100% ownership of the Company's common shares. Accordingly, all net income per share, operating earning per share and book value per share data for the current year and the prior year periods is no longer meaningful and has been excluded.. The Company also redefined its calculation of Annualized Operating ROE to be based on average common shareholders' equity, accordingly, all comparative data in this Financial Supplement have been recast.
| PartnerRe Ltd. |
Life Value In Force
The Company calculates Value in Force (VIF) for its Life portfolio, which represents the value of the Life portfolio that is not recognized in the Consolidated Balance Sheets prepared under generally accepted accounting principles in the United States (U.S. GAAP). Accordingly, there is no corresponding measure that is prepared in accordance with U.S. GAAP. Management believes that this is useful information for investors, analysts, rating agencies and others. The Life VIF calculation includes the business written in the Company’s Life and Health segment, except for the PartnerRe Health business.
The Company’s Life VIF calculation uses market consistent techniques, but primarily differs from a full Market Consistent Embedded Value (MCEV) calculation, as defined in the European Insurance CFO Forum MCEV principles, due to: (i) different methodologies used; and ii) the Life VIF is only a component of MCEV and, specifically, the tangible assets backing the liabilities are not considered in the Company’s calculation.
The Company’s Life VIF, which is calculated on a going concern basis, is the sum of:
| • | present value of future profits - which is defined as the net present value of shareholders' projected after-tax cash flows from the in-force business on a best-estimate assumption basis. The discount rates used reflect currency-specific market yields on zero coupon government bonds at given durations and are applied to projected deterministic cash flows and to calculate risk-free investment returns. The best-estimate is defined as median biometric assumptions and does not include any provision for adverse deviation. The Company attributes no value to future new business or renewals of short-term business. Allocated inflated-adjusted expenses are projected on a best estimate basis; |
| • | cost of non-hedgeable risks - which is defined as the cost of holding capital for non-hedgeable financial and non-hedgeable non-financial risks, such as a mortality deviation from shocks or changes in trends. The non-hedgeable risk capital has been determined using an internal economic capital model calibrated to a 99.6% Value at Risk (VaR) corresponding to a 1 in 250 year event; |
| • | frictional costs - which is defined as the cost of double taxation or investment management charges on assets backing required capital; |
| • | time value of options and guarantees (TVOG) - which is defined as the difference between the market value and the intrinsic value of the option calculated using stochastic techniques. The TVOG is significant to the guaranteed minimum death benefit (GMDB) portfolio where the Company covers death claims on savings plans, where the sum reinsured is the difference between the invested premium amount and the current fund value; and |
| • | cost of non-economic excess encumbered capital - which is defined as the cost of any encumbered capital in excess of economic capital required by local regulations. |
Actuarial non-economic assumptions, such as current and future mortality, are based on the most recent experience available, combined with internal and industry benchmarks, including trend expectation where appropriate.
The Life VIF is sensitive to changes in assumptions. In particular, the Life VIF is sensitive to changes in yield curves that are used for discounting, changes in equity market value assumptions and implied volatilities.
The Company performs a detailed Life VIF calculation on an annual basis and performs a roll-forward approach on an interim quarterly basis.
PartnerRe Ltd.
Consolidated Statements of Operations
(Expressed in thousands of U.S. dollars)
(Unaudited)
| For the three months ended | For the year ended | |||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | ||||||||||||||||||||||
| 2016 | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||||
| Gross premiums written | $ | 1,629,009 | $ | 1,098,618 | $ | 1,267,961 | $ | 1,432,012 | $ | 1,748,933 | $ | 5,547,525 | $ | 5,932,003 | ||||||||||||||
| Net premiums written | $ | 1,500,718 | $ | 1,063,636 | $ | 1,190,393 | $ | 1,322,304 | $ | 1,653,215 | $ | 5,229,548 | $ | 5,719,884 | ||||||||||||||
| (Increase) decrease in unearned premiums | (359,002 | ) | 230,865 | 221,737 | 5,522 | (418,493 | ) | 39,630 | (110,689 | ) | ||||||||||||||||||
| Net premiums earned | 1,141,716 | 1,294,501 | 1,412,130 | 1,327,826 | 1,234,722 | 5,269,178 | 5,609,195 | |||||||||||||||||||||
| Net investment income | 102,987 | 107,908 | 117,054 | 120,192 | 104,631 | 449,784 | 479,696 | |||||||||||||||||||||
| Net realized and unrealized investment gains (losses) | 167,193 | (24,373 | ) | (133,017 | ) | (255,734 | ) | 115,645 | (297,479 | ) | 371,796 | |||||||||||||||||
| Other income | 4,840 | 1,560 | 3,056 | 236 | 4,292 | 9,144 | 16,190 | |||||||||||||||||||||
| Total revenues | 1,416,736 | 1,379,596 | 1,399,223 | 1,192,520 | 1,459,290 | 5,430,627 | 6,476,877 | |||||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||||
| Losses and loss expenses and life policy benefits | 714,268 | 767,026 | 804,196 | 864,917 | 721,281 | 3,157,420 | 3,462,770 | |||||||||||||||||||||
| Acquisition costs | 282,974 | 311,228 | 346,520 | 283,463 | 275,791 | 1,217,003 | 1,213,822 | |||||||||||||||||||||
Other expenses (1) (2) (3) | 152,674 | 120,389 | 415,818 | 129,766 | 124,750 | 790,723 | 449,688 | |||||||||||||||||||||
| Interest expense | 12,259 | 12,246 | 12,249 | 12,248 | 12,245 | 48,988 | 48,963 | |||||||||||||||||||||
| Amortization of intangible assets | 6,588 | 6,290 | 6,768 | 6,767 | 6,768 | 26,593 | 27,486 | |||||||||||||||||||||
| Net foreign exchange (gains) losses | (2,074 | ) | (6,195 | ) | 22,413 | 6,391 | (13,147 | ) | 9,461 | (18,201 | ) | |||||||||||||||||
| Total expenses | 1,166,689 | 1,210,984 | 1,607,964 | 1,303,552 | 1,127,688 | 5,250,188 | 5,184,528 | |||||||||||||||||||||
| Income (loss) before taxes and interest in (losses) earnings of equity method investments | 250,047 | 168,612 | (208,741 | ) | (111,032 | ) | 331,602 | 180,439 | 1,292,349 | |||||||||||||||||||
| Income tax expense (benefit) | 30,954 | (3,326 | ) | 17,170 | (13,844 | ) | 79,665 | 79,664 | 239,506 | |||||||||||||||||||
| Interest in (losses) earnings of equity method investments | (3,467 | ) | 4,811 | (3,231 | ) | 8,633 | (3,838 | ) | 6,375 | 15,270 | ||||||||||||||||||
| Net income (loss) | 215,626 | 176,749 | (229,142 | ) | (88,555 | ) | 248,099 | 107,150 | 1,068,113 | |||||||||||||||||||
| Net (income) loss attributable to noncontrolling interests | — | (238 | ) | 5 | (354 | ) | (2,182 | ) | (2,769 | ) | (13,139 | ) | ||||||||||||||||
| Net income (loss) attributable to PartnerRe | 215,626 | 176,511 | (229,137 | ) | (88,909 | ) | 245,917 | 104,381 | 1,054,974 | |||||||||||||||||||
| Preferred dividends | 14,184 | 14,184 | 14,184 | 14,184 | 14,184 | 56,735 | 56,735 | |||||||||||||||||||||
| Net income (loss) attributable to PartnerRe common shareholders | $ | 201,442 | $ | 162,327 | $ | (243,321 | ) | $ | (103,093 | ) | $ | 231,733 | $ | 47,646 | $ | 998,239 | ||||||||||||
| Operating earnings attributable to PartnerRe common shareholders | $ | 44,238 | $ | 183,858 | $ | 211,583 | $ | 112,494 | $ | 150,536 | $ | 658,472 | $ | 755,418 | ||||||||||||||
| Comprehensive income (loss) attributable to PartnerRe | $ | 235,717 | $ | 162,055 | $ | (267,720 | ) | $ | (81,913 | ) | $ | 242,760 | $ | 55,181 | $ | 1,033,129 | ||||||||||||
(1) Includes costs related to the Axis and Exor transactions and the restructuring of the Company’s business support operations and Global Non-life operations. See page 13 for the expense data. | ||||||||||||||||||||||||||||
| (2) Withholding taxes on certain inter-company dividends are included in other expenses. | ||||||||||||||||||||||||||||
| (3) Other expenses for the three months ended June 30,2015 and the year ended December 31, 2015 include $25 million, pretax, respectively, related to the negotiated earn-out consideration paid to the former shareholders of Presidio Reinsurance Group, Inc. | ||||||||||||||||||||||||||||
1
PartnerRe Ltd.
Condensed Consolidated Balance Sheets
(Expressed in thousands of U.S. dollars)
(Unaudited)
| March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||||||||||||||||||
| 2016 | 2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||||
| Total investments | $ | 13,836,705 | $ | 14,338,015 | $ | 14,475,450 | $ | 14,715,834 | $ | 15,038,946 | $ | 15,299,764 | |||||||||||||||||||||||||
| Funds held - directly managed | 579,571 | 539,743 | 595,677 | 594,870 | 592,609 | 608,853 | |||||||||||||||||||||||||||||||
| Cash and cash equivalents | 1,749,851 | 1,577,097 | 1,256,304 | 1,492,997 | 1,413,799 | 1,313,468 | |||||||||||||||||||||||||||||||
| Accrued investment income | 134,735 | 141,672 | 142,892 | 139,772 | 150,255 | 158,737 | |||||||||||||||||||||||||||||||
| Reinsurance balances receivable | 2,964,950 | 2,428,020 | 3,079,002 | 3,055,308 | 2,899,821 | 2,454,850 | |||||||||||||||||||||||||||||||
| Reinsurance recoverable on paid and unpaid losses | 300,731 | 282,916 | 329,834 | 342,074 | 290,018 | 246,158 | |||||||||||||||||||||||||||||||
| Funds held by reinsured companies | 685,564 | 657,815 | 671,572 | 688,358 | 659,058 | 765,905 | |||||||||||||||||||||||||||||||
| Deferred acquisition costs | 691,117 | 629,372 | 684,380 | 733,184 | 706,779 | 661,186 | |||||||||||||||||||||||||||||||
| Goodwill | 456,380 | 456,380 | 456,380 | 456,380 | 456,380 | 456,380 | |||||||||||||||||||||||||||||||
| Intangible assets | 126,423 | 133,011 | 139,301 | 146,069 | 152,836 | 159,604 | |||||||||||||||||||||||||||||||
| Other assets | 429,436 | 222,002 | 194,436 | 166,977 | 128,094 | 145,452 | |||||||||||||||||||||||||||||||
| Total assets | $ | 21,955,463 | $ | 21,406,043 | $ | 22,025,228 | $ | 22,531,823 | $ | 22,488,595 | $ | 22,270,357 | |||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||||
| Unpaid losses and loss expenses | $ | 9,331,087 | $ | 9,064,711 | $ | 9,522,225 | $ | 9,549,398 | $ | 9,401,397 | $ | 9,745,806 | |||||||||||||||||||||||||
| Policy benefits for life and annuity contracts | 2,089,055 | 2,051,935 | 2,123,028 | 2,087,369 | 1,996,519 | 2,050,107 | |||||||||||||||||||||||||||||||
| Unearned premiums | 2,086,332 | 1,644,757 | 1,934,360 | 2,207,674 | 2,159,446 | 1,750,607 | |||||||||||||||||||||||||||||||
| Other reinsurance balances payable | 293,342 | 246,089 | 288,402 | 234,175 | 188,941 | 182,395 | |||||||||||||||||||||||||||||||
| Debt obligations | 820,989 | 820,989 | 820,989 | 820,989 | 820,989 | 820,989 | |||||||||||||||||||||||||||||||
| Other liabilities | 424,473 | 674,611 | 558,875 | 550,075 | 666,475 | 616,042 | |||||||||||||||||||||||||||||||
| Total liabilities | 15,045,278 | 14,503,092 | 15,247,879 | 15,449,680 | 15,233,767 | 15,165,946 | |||||||||||||||||||||||||||||||
| Total shareholders' equity attributable to PartnerRe | 6,910,185 | 6,900,501 | 6,775,137 | 7,079,926 | 7,197,145 | 7,048,910 | |||||||||||||||||||||||||||||||
| Noncontrolling interests | — | 2,450 | 2,212 | 2,217 | 57,683 | 55,501 | |||||||||||||||||||||||||||||||
| Total shareholders' equity | 6,910,185 | 6,902,951 | 6,777,349 | 7,082,143 | 7,254,828 | 7,104,411 | |||||||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 21,955,463 | $ | 21,406,043 | $ | 22,025,228 | $ | 22,531,823 | $ | 22,488,595 | $ | 22,270,357 | |||||||||||||||||||||||||
| Capital Structure: | |||||||||||||||||||||||||||||||||||||
Senior notes (1) | $ | 750,000 | 10 | % | $ | 750,000 | 10 | % | $ | 750,000 | 10 | % | $ | 750,000 | 9 | % | $ | 750,000 | 9 | % | $ | 750,000 | 9 | % | |||||||||||||
Capital efficient notes (2) | 63,384 | 1 | 63,384 | 1 | 63,384 | 1 | 63,384 | 1 | 63,384 | 1 | 63,384 | 1 | |||||||||||||||||||||||||
| Preferred shares, aggregate liquidation value | 853,750 | 11 | 853,750 | 11 | 853,750 | 11 | 853,750 | 11 | 853,750 | 11 | 853,750 | 11 | |||||||||||||||||||||||||
| Common shareholders' equity attributable to PartnerRe | 6,056,435 | 78 | 6,046,751 | 78 | 5,921,387 | 78 | 6,226,176 | 79 | 6,343,395 | 79 | 6,195,160 | 79 | |||||||||||||||||||||||||
| Total Capital | $ | 7,723,569 | 100 | % | $ | 7,713,885 | 100 | % | $ | 7,588,521 | 100 | % | $ | 7,893,310 | 100 | % | $ | 8,010,529 | 100 | % | $ | 7,862,294 | 100 | % | |||||||||||||
| (1) | PartnerRe Finance A LLC and PartnerRe Finance B LLC, the issuers of the senior notes, do not meet U.S. GAAP consolidation requirements. Accordingly, the Company shows the related intercompany debt of $250.0 million and $500.0 million, respectively, on its Condensed Consolidated Balance Sheets. |
| (2) | PartnerRe Finance II, the issuer of the capital efficient notes, does not meet U.S. GAAP consolidation requirements. Accordingly, the Company shows the related intercompany debt of $71.0 million on its Condensed Consolidated Balance Sheets. |
2
PartnerRe Ltd.
Condensed Consolidated Statements of Cash Flows
(Expressed in millions of U.S. dollars)
(Unaudited)
| For the three months ended | For the year ended | ||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | |||||||||||||||||||||||
| 2016 | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | |||||||||||||||||||||||
| Net cash provided by (used in) operating activities: | |||||||||||||||||||||||||||||
| Underwriting operations | $ | (5 | ) | $ | 114 | $ | 77 | $ | 30 | $ | 44 | $ | 265 | $ | 497 | ||||||||||||||
| Investment income | 132 | 131 | 132 | 154 | 137 | 554 | 606 | ||||||||||||||||||||||
Taxes and foreign exchange and other (1) | (35 | ) | (34 | ) | (358 | ) | (66 | ) | (42 | ) | (500 | ) | (250 | ) | |||||||||||||||
| Net cash provided by (used in) operating activities | $ | 92 | $ | 211 | $ | (149 | ) | $ | 118 | $ | 139 | $ | 319 | $ | 853 | ||||||||||||||
| Net cash provided by (used in) operating activities | $ | 92 | $ | 211 | $ | (149 | ) | $ | 118 | $ | 139 | $ | 319 | $ | 853 | ||||||||||||||
| Net cash provided by (used in) investing activities | 338 | 158 | (33 | ) | 56 | 115 | 295 | (250 | ) | ||||||||||||||||||||
| Net cash used in financing activities | (263 | ) | (43 | ) | (44 | ) | (100 | ) | (123 | ) | (309 | ) | (736 | ) | |||||||||||||||
| Effect of foreign exchange rate changes on cash | 6 | (5 | ) | (10 | ) | 5 | (30 | ) | (41 | ) | (50 | ) | |||||||||||||||||
| Increase (decrease) in cash and cash equivalents | 173 | 321 | (237 | ) | 79 | 101 | 264 | (183 | ) | ||||||||||||||||||||
| Cash and cash equivalents - beginning of period | 1,577 | 1,256 | 1,493 | 1,414 | 1,313 | 1,313 | 1,496 | ||||||||||||||||||||||
| Cash and cash equivalents - end of period | $ | 1,750 | $ | 1,577 | $ | 1,256 | $ | 1,493 | $ | 1,414 | $ | 1,577 | $ | 1,313 | |||||||||||||||
(1) Taxes, foreign exchange and other for the three months ended September 30, 2015 and the year ended December 31, 2015 include the amalgamation termination fee and reimbursement of expenses paid to Axis Capital of $315 million, respectively.
3
PartnerRe Ltd.
Consolidated Statements of Comprehensive Income (Loss)
(Expressed in thousands of U.S. dollars)
(Unaudited)
| For the three months ended | |||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
| 2016 | 2015 | 2015 | 2015 | 2015 | |||||||||||||||
| Net income (loss) attributable to PartnerRe | $ | 215,626 | $ | 176,511 | $ | (229,137 | ) | $ | (88,909 | ) | $ | 245,917 | |||||||
| Change in currency translation adjustment | 21,123 | (12,119 | ) | (39,533 | ) | 8,101 | (2,504 | ) | |||||||||||
| Change in net unrealized gains or losses on investments, net of tax | (203 | ) | (216 | ) | (213 | ) | (214 | ) | (217 | ) | |||||||||
| Change in unfunded pension obligation, net of tax | (829 | ) | (2,121 | ) | 1,163 | (891 | ) | (436 | ) | ||||||||||
| Comprehensive income (loss) attributable to PartnerRe | $ | 235,717 | $ | 162,055 | $ | (267,720 | ) | $ | (81,913 | ) | $ | 242,760 | |||||||
| For the year ended | |||||||
| December 31, | December 31, | ||||||
| 2015 | 2014 | ||||||
| Net income attributable to PartnerRe | $ | 104,381 | $ | 1,054,974 | |||
| Change in currency translation adjustment | (46,055 | ) | (8,892 | ) | |||
| Change in net unrealized gains or losses on investments, net of tax | (860 | ) | (886 | ) | |||
| Change in unfunded pension obligation, net of tax | (2,285 | ) | (12,067 | ) | |||
| Comprehensive income attributable to PartnerRe | $ | 55,181 | $ | 1,033,129 | |||
4
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
| For the three months ended March 31, 2016 | |||||||||||||||||||||||||||||||
| North America | Global (Non-U.S.) P&C | Global Specialty | Catastrophe | Total Non-life segment | Life and Health segment | Corporate and Other | Total | ||||||||||||||||||||||||
| Gross premiums written | $ | 494 | $ | 274 | $ | 398 | $ | 170 | $ | 1,336 | $ | 293 | $ | — | $ | 1,629 | |||||||||||||||
| Net premiums written | $ | 481 | $ | 269 | $ | 333 | $ | 141 | $ | 1,224 | 277 | $ | — | $ | 1,501 | ||||||||||||||||
| Increase in unearned premiums | (129 | ) | (119 | ) | (11 | ) | (93 | ) | (352 | ) | (7 | ) | — | (359 | ) | ||||||||||||||||
| Net premiums earned | $ | 352 | $ | 150 | $ | 322 | $ | 48 | $ | 872 | $ | 270 | $ | — | $ | 1,142 | |||||||||||||||
| Losses and loss expenses and life policy benefits | (199 | ) | (123 | ) | (184 | ) | (3 | ) | (509 | ) | (205 | ) | — | (714 | ) | ||||||||||||||||
| Acquisition costs | (107 | ) | (47 | ) | (90 | ) | (1 | ) | (245 | ) | (38 | ) | — | (283 | ) | ||||||||||||||||
| Technical result | $ | 46 | $ | (20 | ) | $ | 48 | $ | 44 | $ | 118 | $ | 27 | $ | — | $ | 145 | ||||||||||||||
| Other income | 2 | 2 | 1 | 5 | |||||||||||||||||||||||||||
| Other expenses | (68 | ) | (18 | ) | (67 | ) | (153 | ) | |||||||||||||||||||||||
| Underwriting result | $ | 52 | $ | 11 | n/a | $ | (3 | ) | |||||||||||||||||||||||
| Net investment income | 13 | 90 | 103 | ||||||||||||||||||||||||||||
Allocated underwriting result (1) | $ | 24 | n/a | n/a | |||||||||||||||||||||||||||
| Net realized and unrealized investment gains | 167 | 167 | |||||||||||||||||||||||||||||
| Interest expense | (12 | ) | (12 | ) | |||||||||||||||||||||||||||
| Amortization of intangible assets | (7 | ) | (7 | ) | |||||||||||||||||||||||||||
| Net foreign exchange gains | 2 | 2 | |||||||||||||||||||||||||||||
| Income tax expense | (31 | ) | (31 | ) | |||||||||||||||||||||||||||
| Interest in losses of equity method investments | (3 | ) | (3 | ) | |||||||||||||||||||||||||||
| Net income | n/a | $ | 216 | ||||||||||||||||||||||||||||
Loss ratio (2) | 56.5 | % | 82.1 | % | 57.2 | % | 7.2 | % | 58.5 | % | |||||||||||||||||||||
Acquisition ratio (3) | 30.4 | 31.1 | 27.8 | 3.1 | 28.0 | ||||||||||||||||||||||||||
Technical ratio (4) | 86.9 | % | 113.2 | % | 85.0 | % | 10.3 | % | 86.5 | % | |||||||||||||||||||||
Other expense ratio (5) | 7.8 | ||||||||||||||||||||||||||||||
Combined ratio (6) | 94.3 | % | |||||||||||||||||||||||||||||
| (1) | Allocated underwriting result is defined as net premiums earned, other income or loss and allocated net investment income less life policy benefits, acquisition costs and other expenses. |
| (2) | Loss ratio is obtained by dividing losses and loss expenses by net premiums earned. |
| (3) | Acquisition ratio is obtained by dividing acquisition costs by net premiums earned. |
| (4) | Technical ratio is defined as the sum of the loss ratio and the acquisition ratio. |
| (5) | Other expense ratio is obtained by dividing other expenses by net premiums earned. |
| (6) | Combined ratio is defined as the sum of the technical ratio and the other expense ratio. |
5
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
| For the three months ended March 31, 2015 | |||||||||||||||||||||||||||||||
North America | Global (Non-U.S.) P&C | Global Specialty | Catastrophe | Total Non-life segment | Life and Health segment | Corporate and Other | Total | ||||||||||||||||||||||||
| Gross premiums written | $ | 473 | $ | 334 | $ | 427 | $ | 191 | $ | 1,425 | $ | 324 | $ | — | $ | 1,749 | |||||||||||||||
| Net premiums written | $ | 471 | $ | 331 | $ | 362 | $ | 176 | $ | 1,340 | $ | 313 | $ | — | $ | 1,653 | |||||||||||||||
| (Increase) decrease in unearned premiums | (132 | ) | (157 | ) | 3 | (118 | ) | (404 | ) | (14 | ) | — | (418 | ) | |||||||||||||||||
| Net premiums earned | $ | 339 | $ | 174 | $ | 365 | $ | 58 | $ | 936 | $ | 299 | $ | — | $ | 1,235 | |||||||||||||||
| Losses and loss expenses and life policy benefits | (172 | ) | (119 | ) | (170 | ) | (20 | ) | (481 | ) | (240 | ) | — | (721 | ) | ||||||||||||||||
| Acquisition costs | (93 | ) | (52 | ) | (93 | ) | (4 | ) | (242 | ) | (34 | ) | — | (276 | ) | ||||||||||||||||
| Technical result | $ | 74 | $ | 3 | $ | 102 | $ | 34 | $ | 213 | $ | 25 | $ | — | $ | 238 | |||||||||||||||
| Other income | — | 1 | 3 | 4 | |||||||||||||||||||||||||||
| Other expenses | (52 | ) | (15 | ) | (58 | ) | (125 | ) | |||||||||||||||||||||||
| Underwriting result | $ | 161 | $ | 11 | n/a | $ | 117 | ||||||||||||||||||||||||
| Net investment income | 14 | 91 | 105 | ||||||||||||||||||||||||||||
Allocated underwriting result (1) | $ | 25 | n/a | n/a | |||||||||||||||||||||||||||
| Net realized and unrealized investment gains | 116 | 116 | |||||||||||||||||||||||||||||
| Interest expense | (12 | ) | (12 | ) | |||||||||||||||||||||||||||
| Amortization of intangible assets | (7 | ) | (7 | ) | |||||||||||||||||||||||||||
| Net foreign exchange gains | 13 | 13 | |||||||||||||||||||||||||||||
| Income tax expense | (80 | ) | (80 | ) | |||||||||||||||||||||||||||
| Interest in losses of equity method investments | (4 | ) | (4 | ) | |||||||||||||||||||||||||||
| Net income | n/a | $ | 248 | ||||||||||||||||||||||||||||
Loss ratio (2) | 50.7 | % | 68.4 | % | 46.7 | % | 33.7 | % | 51.4 | % | |||||||||||||||||||||
Acquisition ratio (3) | 27.5 | 30.1 | 25.4 | 7.0 | 25.9 | ||||||||||||||||||||||||||
Technical ratio (4) | 78.2 | % | 98.5 | % | 72.1 | % | 40.7 | % | 77.3 | % | |||||||||||||||||||||
Other expense ratio (5) | 5.5 | ||||||||||||||||||||||||||||||
Combined ratio (6) | 82.8 | % | |||||||||||||||||||||||||||||
6
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Non-life segment
| For the three months ended | For the year ended | |||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | ||||||||||||||||||||||
2016 (A) | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||||||||||||||
| Gross premiums written | $ | 1,336 | $ | 801 | $ | 954 | $ | 1,098 | $ | 1,425 | $ | 4,277 | $ | 4,667 | ||||||||||||||
| Net premiums written | $ | 1,224 | $ | 780 | $ | 892 | $ | 1,009 | $ | 1,340 | $ | 4,022 | $ | 4,500 | ||||||||||||||
| Net premiums earned | $ | 872 | $ | 1,002 | $ | 1,110 | $ | 1,012 | $ | 936 | $ | 4,060 | $ | 4,387 | ||||||||||||||
| Losses and loss expenses | (509 | ) | (551 | ) | (556 | ) | (605 | ) | (481 | ) | (2,193 | ) | (2,463 | ) | ||||||||||||||
| Acquisition costs | (245 | ) | (260 | ) | (309 | ) | (253 | ) | (242 | ) | (1,064 | ) | (1,065 | ) | ||||||||||||||
| Technical result | $ | 118 | $ | 191 | $ | 245 | $ | 154 | $ | 213 | $ | 803 | $ | 859 | ||||||||||||||
| Other income | 2 | — | — | — | — | — | 3 | |||||||||||||||||||||
| Other expenses | (68 | ) | (56 | ) | (55 | ) | (55 | ) | (52 | ) | (219 | ) | (252 | ) | ||||||||||||||
| Underwriting result | $ | 52 | $ | 135 | $ | 190 | $ | 99 | $ | 161 | $ | 584 | $ | 610 | ||||||||||||||
Loss ratio (2) | 58.5 | % | 54.9 | % | 50.1 | % | 59.8 | % | 51.4 | % | 54.0 | % | 56.1 | % | ||||||||||||||
Acquisition ratio (3) | 28.0 | 26.0 | 27.8 | 25.0 | 25.9 | 26.2 | 24.3 | |||||||||||||||||||||
Technical ratio (4) | 86.5 | % | 80.9 | % | 77.9 | % | 84.8 | % | 77.3 | % | 80.2 | % | 80.4 | % | ||||||||||||||
Other expense ratio (5) | 7.8 | 5.6 | 4.9 | 5.5 | 5.5 | 5.4 | 5.8 | |||||||||||||||||||||
Combined ratio (6) | 94.3 | % | 86.5 | % | 82.8 | % | 90.3 | % | 82.8 | % | 85.6 | % | 86.2 | % | ||||||||||||||
| (A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended March 31, 2016, net premiums written and net premiums earned include foreign exchange impacts of $(54.0) million and $(32.8) million, respectively, compared to the three months ended March 31, 2015. |
7
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
North America sub-segment
| For the three months ended | For the year ended | |||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | ||||||||||||||||||||||
2016 (A) | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||||||||||||||
| Gross premiums written | $ | 494 | $ | 352 | $ | 351 | $ | 427 | $ | 473 | $ | 1,604 | $ | 1,642 | ||||||||||||||
| Net premiums written | $ | 481 | $ | 335 | $ | 335 | $ | 401 | $ | 471 | $ | 1,542 | $ | 1,630 | ||||||||||||||
| Net premiums earned | $ | 352 | $ | 390 | $ | 408 | $ | 435 | $ | 339 | $ | 1,572 | $ | 1,597 | ||||||||||||||
| Losses and loss expenses | (199 | ) | (231 | ) | (182 | ) | (296 | ) | (172 | ) | (881 | ) | (1,000 | ) | ||||||||||||||
| Acquisition costs | (107 | ) | (103 | ) | (137 | ) | (111 | ) | (93 | ) | (443 | ) | (401 | ) | ||||||||||||||
| Technical result | $ | 46 | $ | 56 | $ | 89 | $ | 28 | $ | 74 | $ | 248 | $ | 196 | ||||||||||||||
Loss ratio (2) | 56.5 | % | 59.2 | % | 44.7 | % | 68.1 | % | 50.7 | % | 56.0 | % | 62.6 | % | ||||||||||||||
Acquisition ratio (3) | 30.4 | 26.4 | 33.4 | 25.4 | 27.5 | 28.2 | 25.1 | |||||||||||||||||||||
Technical ratio (4) | 86.9 | % | 85.6 | % | 78.1 | % | 93.5 | % | 78.2 | % | 84.2 | % | 87.7 | % | ||||||||||||||
| Distribution of Net Premiums Written by Major Lines of Business: | ||||||||||||||||||||||||||||
| Agriculture | 35 | % | 26 | % | 21 | % | 31 | % | 30 | % | 28 | % | 28 | % | ||||||||||||||
| Casualty | 34 | 35 | 40 | 38 | 35 | 37 | 37 | |||||||||||||||||||||
| Credit/Surety | 5 | 7 | 3 | 6 | 7 | 6 | 7 | |||||||||||||||||||||
| Motor | 3 | 6 | 4 | 4 | 4 | 4 | 4 | |||||||||||||||||||||
| Multiline | 10 | 9 | 6 | 8 | 10 | 8 | 8 | |||||||||||||||||||||
| Other | 3 | 6 | 9 | 2 | 1 | 4 | 2 | |||||||||||||||||||||
| Property | 10 | 11 | 17 | 11 | 13 | 13 | 14 | |||||||||||||||||||||
| Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||
| (A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended March 31, 2016, net premiums written and net premiums earned include foreign exchange impacts of $(3.6) million and $(2.0) million, respectively, compared to the three months ended March 31, 2015. |
8
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Global (Non-U.S.) P&C sub-segment
| For the three months ended | For the year ended | |||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | ||||||||||||||||||
2016 (A) | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||||||||||
| Gross premiums written | $ | 274 | $ | 106 | 153 | 143 | 334 | $ | 735 | 803 | ||||||||||||||
| Net premiums written | $ | 269 | $ | 105 | 153 | 137 | 331 | $ | 726 | 794 | ||||||||||||||
| Net premiums earned | $ | 150 | $ | 174 | 186 | 159 | 174 | $ | 693 | 768 | ||||||||||||||
| Losses and loss expenses | (123 | ) | (111 | ) | (122 | ) | (121 | ) | (119 | ) | (473 | ) | (438 | ) | ||||||||||
| Acquisition costs | (47 | ) | (50 | ) | (50 | ) | (36 | ) | (52 | ) | (189 | ) | (222 | ) | ||||||||||
| Technical result | $ | (20 | ) | $ | 13 | 14 | 2 | 3 | $ | 31 | 108 | |||||||||||||
Loss ratio (2) | 82.1 | % | 63.7 | % | 65.8 | % | 75.9 | % | 68.4 | % | 68.3 | % | 57.0 | % | ||||||||||
Acquisition ratio (3) | 31.1 | 28.8 | 26.9 | 23.2 | 30.1 | 27.3 | 28.9 | |||||||||||||||||
Technical ratio (4) | 113.2 | % | 92.5 | % | 92.7 | % | 99.1 | % | 98.5 | % | 95.6 | % | 85.9 | % | ||||||||||
| Distribution of Net Premiums Written by Major Lines of Business: | ||||||||||||||||||||||||
| Casualty | 9 | % | 9 | % | 8 | % | 10 | % | 10 | % | 10 | % | 8 | % | ||||||||||
| Motor | 33 | 50 | 42 | 34 | 36 | 39 | 40 | |||||||||||||||||
| Property | 58 | 41 | 50 | 56 | 54 | 51 | 52 | |||||||||||||||||
| Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
| (A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended March 31, 2016, net premiums written and net premiums earned include foreign exchange impacts of $(24.3) million and $(12.3) million, respectively, compared to the three months ended March 31, 2015. |
9
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Global Specialty sub-segment
| For the three months ended | For the year ended | |||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | ||||||||||||||||||||||
2016 (A) | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||||||||||||||
| Gross premiums written | $ | 398 | $ | 330 | $ | 393 | $ | 406 | $ | 427 | $ | 1,556 | $ | 1,797 | ||||||||||||||
| Net premiums written | $ | 333 | $ | 329 | $ | 391 | $ | 400 | $ | 362 | $ | 1,482 | $ | 1,696 | ||||||||||||||
| Net premiums earned | $ | 322 | $ | 368 | $ | 404 | $ | 374 | $ | 365 | $ | 1,511 | $ | 1,638 | ||||||||||||||
| Losses and loss expenses | (184 | ) | (193 | ) | (224 | ) | (198 | ) | (170 | ) | (785 | ) | (963 | ) | ||||||||||||||
| Acquisition costs | (90 | ) | (100 | ) | (112 | ) | (102 | ) | (93 | ) | (407 | ) | (400 | ) | ||||||||||||||
| Technical result | $ | 48 | $ | 75 | $ | 68 | $ | 74 | $ | 102 | $ | 319 | $ | 275 | ||||||||||||||
Loss ratio (2) | 57.2 | % | 52.3 | % | 55.5 | % | 53.0 | % | 46.7 | % | 52.0 | % | 58.8 | % | ||||||||||||||
Acquisition ratio (3) | 27.8 | 27.2 | 27.7 | 27.2 | 25.4 | 26.9 | 24.4 | |||||||||||||||||||||
Technical ratio (4) | 85.0 | % | 79.5 | % | 83.2 | % | 80.2 | % | 72.1 | % | 78.9 | % | 83.2 | % | ||||||||||||||
| Distribution of Net Premiums Written by Major Lines of Business: | ||||||||||||||||||||||||||||
| Agriculture | 10 | % | 5 | % | 13 | % | 13 | % | 15 | % | 12 | % | 13 | % | ||||||||||||||
| Aviation/Space | 10 | 15 | 9 | 13 | 11 | 12 | 13 | |||||||||||||||||||||
| Credit/Surety | 20 | 18 | 15 | 13 | 14 | 15 | 16 | |||||||||||||||||||||
| Energy | 5 | 4 | 4 | 3 | 4 | 4 | 4 | |||||||||||||||||||||
| Engineering | 11 | 12 | 8 | 10 | 11 | 10 | 10 | |||||||||||||||||||||
| Marine | 12 | 12 | 16 | 14 | 11 | 13 | 17 | |||||||||||||||||||||
| Multiline | 11 | 16 | 12 | 11 | 12 | 13 | 8 | |||||||||||||||||||||
| Other | — | — | 1 | 1 | 2 | — | — | |||||||||||||||||||||
| Specialty casualty | 14 | 9 | 9 | 9 | 11 | 10 | 10 | |||||||||||||||||||||
| Specialty property | 7 | 9 | 13 | 13 | 9 | 11 | 9 | |||||||||||||||||||||
| Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||
| (A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended March 31, 2016, net premiums written and net premiums earned include foreign exchange impacts of $(19.0) million and $(14.8) million, respectively, compared to the three months ended March 31, 2015. |
10
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Catastrophe sub-segment
| For the three months ended | For the year ended | |||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | ||||||||||||||||||||
2016 (A) | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||||||||||||
| Gross premiums written | $ | 170 | $ | 13 | 57 | 122 | $ | 191 | $ | 382 | $ | 425 | ||||||||||||||
| Net premiums written | $ | 141 | $ | 11 | 13 | 71 | $ | 176 | $ | 272 | $ | 380 | ||||||||||||||
| Net premiums earned | $ | 48 | $ | 70 | 112 | 44 | $ | 58 | $ | 284 | $ | 384 | ||||||||||||||
| Losses and loss expenses | (3 | ) | (16 | ) | (28 | ) | 10 | (20 | ) | (54 | ) | (62 | ) | |||||||||||||
| Acquisition costs | (1 | ) | (7 | ) | (10 | ) | (4 | ) | (4 | ) | (25 | ) | (42 | ) | ||||||||||||
| Technical result | $ | 44 | $ | 47 | 74 | 50 | $ | 34 | $ | 205 | $ | 280 | ||||||||||||||
Loss ratio (2) | 7.2 | % | 23.2 | % | 24.9 | % | (21.5 | )% | 33.7 | % | 19.1 | % | 16.1 | % | ||||||||||||
Acquisition ratio (3) | 3.1 | 9.9 | 8.7 | 8.2 | 7.0 | 8.6 | 11.0 | |||||||||||||||||||
Technical ratio (4) | 10.3 | % | 33.1 | % | 33.6 | % | (13.3 | )% | 40.7 | % | 27.7 | % | 27.1 | % | ||||||||||||
| (A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended March 31, 2016, net premiums written and net premiums earned include foreign exchange impacts of $(7.1) million and $(3.7) million, respectively, compared to the three months ended March 31, 2015. |
11
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Life and Health segment
| For the three months ended | For the year ended | |||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | ||||||||||||||||||||||
2016 (A) | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||||||||||||||
| Gross premiums written | $ | 293 | $ | 298 | $ | 314 | $ | 334 | $ | 324 | $ | 1,271 | $ | 1,265 | ||||||||||||||
| Net premiums written | $ | 277 | $ | 284 | $ | 298 | $ | 313 | $ | 313 | $ | 1,208 | $ | 1,220 | ||||||||||||||
| Net premiums earned | $ | 270 | $ | 292 | $ | 302 | $ | 316 | $ | 299 | $ | 1,209 | $ | 1,222 | ||||||||||||||
| Life policy benefits | (205 | ) | (216 | ) | (248 | ) | (260 | ) | (240 | ) | (964 | ) | (1,000 | ) | ||||||||||||||
| Acquisition costs | (38 | ) | (51 | ) | (38 | ) | (30 | ) | (34 | ) | (153 | ) | (149 | ) | ||||||||||||||
| Technical result | $ | 27 | $ | 25 | $ | 16 | $ | 26 | $ | 25 | $ | 92 | $ | 73 | ||||||||||||||
| Other income | 2 | 2 | 3 | — | 1 | 6 | 8 | |||||||||||||||||||||
| Other expenses | (18 | ) | (17 | ) | (16 | ) | (16 | ) | (15 | ) | (63 | ) | (68 | ) | ||||||||||||||
| Underwriting result | $ | 11 | $ | 10 | $ | 3 | $ | 10 | $ | 11 | $ | 35 | $ | 13 | ||||||||||||||
| Net investment income | 13 | 14 | 15 | 16 | 14 | 59 | 60 | |||||||||||||||||||||
Allocated underwriting result (1) | $ | 24 | $ | 24 | $ | 18 | $ | 26 | $ | 25 | $ | 94 | $ | 73 | ||||||||||||||
| Distribution of Net Premiums Written by Major Lines of Business: | ||||||||||||||||||||||||||||
| Accident and Health | 28 | % | 30 | % | 30 | % | 26 | % | 27 | % | 28 | % | 23 | % | ||||||||||||||
| Longevity | 25 | 25 | 25 | 30 | 22 | 25 | 25 | |||||||||||||||||||||
| Mortality | 47 | 45 | 45 | 44 | 51 | 47 | 52 | |||||||||||||||||||||
| Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||
| (A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended March 31, 2016, net premiums written and net premiums earned include foreign exchange impacts of $(15.4) million and $(14.3) million, respectively, compared to the three months ended March 31, 2015. |
12
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Corporate and Other
| For the three months ended | For the year ended | |||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | ||||||||||||||||||||||
| 2016 | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||||||||||||||
| Other income (loss) | $ | 1 | $ | (1 | ) | $ | — | $ | — | $ | 3 | $ | 3 | $ | 5 | |||||||||||||
| Corporate expenses - amalgamation termination fee and reimbursement of expenses | — | — | (315 | ) | — | — | (315 | ) | — | |||||||||||||||||||
Corporate expenses - Axis and Exor related costs (1) (4) | (46 | ) | (16 | ) | (7 | ) | (9 | ) | (31 | ) | (63 | ) | — | |||||||||||||||
Corporate expenses - costs of restructuring (2) | — | — | — | — | — | — | (11 | ) | ||||||||||||||||||||
Corporate expenses (3) | (21 | ) | (31 | ) | (23 | ) | (50 | ) | (27 | ) | (131 | ) | (119 | ) | ||||||||||||||
| Net investment income | 90 | 94 | 102 | 104 | 91 | 391 | 420 | |||||||||||||||||||||
| Net realized and unrealized investment gains (losses) | 167 | (24 | ) | (133 | ) | (256 | ) | 116 | (297 | ) | 372 | |||||||||||||||||
| Interest expense | (12 | ) | (12 | ) | (12 | ) | (12 | ) | (12 | ) | (49 | ) | (49 | ) | ||||||||||||||
| Amortization of intangible assets | (7 | ) | (6 | ) | (7 | ) | (7 | ) | (7 | ) | (27 | ) | (27 | ) | ||||||||||||||
| Net foreign exchange gains (losses) | 2 | 6 | (22 | ) | (6 | ) | 13 | (9 | ) | 18 | ||||||||||||||||||
| Income tax (expense) benefit | (31 | ) | 3 | (17 | ) | 14 | (80 | ) | (80 | ) | (239 | ) | ||||||||||||||||
| Interest in earnings (losses) of equity method investments | (3 | ) | 5 | (3 | ) | 8 | (4 | ) | 6 | 15 | ||||||||||||||||||
| (1) | For the three months ended March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015, costs related to the Axis and Exor transactions, pre-tax, are $65.8 million, $16.3 million, $6.9 million $9.0 million and $30.9 million, or 4.4%, 1.1%, 0.5%, 0.6% and 2.0% points on the Annualized Operating ROE, respectively. For the year ended December 31, 2015, costs related to the Axis and Exor transactions, pre-tax, are $63.1 million or 1.0% points on the Annualized Operating ROE. For the three months ended June 30, 2015 and for the year ended December 2015, expense related to the earn-out consideration paid to the former shareholders of Presidio Reinsurance Group, Inc. was $25.2 million, or 1.6% and 0.4% points, respectively, on the Annualized Operating ROE. After-tax, for the three months ended March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015, operating earnings attributable to PartnerRe common shareholders adjusted to be before the Axis and Exor transaction related costs and earn-out consideration paid are $104.2 million, $200.2 million, $218.5 million, $146.7 million and $181.4 million, or 6.9%, 13.4%, 14.4%, 9.4% and 11.6% points on the Annualized Operating ROE, respectively. After-tax, for the three months ended March 31, 2016 and March 31, 2015, net income attributable to PartnerRe common shareholders adjusted to be before the Axis and Exor transaction related costs are $261.4 million and $262.6 million, or 17.3% and 16.8% points on the Annualized Net Income ROE, respectively. For the year ended December 31, 2015, operating earnings attributable to PartnerRe common shareholders adjusted to be before the amalgamation related costs and earn-out consideration paid are $746.8 million, or 12.2% points on the annualized operating ROE. See page 26 for the comparable unadjusted annualized operating return on average common shareholders' equity (Annualized Operating ROE). |
| (2) | The costs of restructuring relate to the Company’s reorganization of its business support and Global Non-life operations. During the year ended December 31, 2014, these costs predominantly comprised of facility exit costs. |
| (3) | Corporate expenses for the three months ended June 30,2015 and the year ended December 31, 2015 include $25 million, pretax, respectively, related to the negotiated earn-out consideration paid to the former shareholders of Presidio Reinsurance Group, Inc. |
| (4) | Corporate expenses - Axis and Exor related for the three months ended March 31, 2016, include $11 million of accelerated stock compensation expense. The remaining accelerated stock compensation expense of $20 million is included within other expenses of the Non-life and Life segments. |
13
PartnerRe Ltd.
Distribution of Premiums
(Unaudited)
| For the three months ended | For the year ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | |||||||||||||||
| 2016 | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | |||||||||||||||
| Distribution of Net Premiums Written by Line of Business: | |||||||||||||||||||||
| Non-life | |||||||||||||||||||||
| Property and casualty | |||||||||||||||||||||
| Casualty | 13 | % | 12 | % | 12 | % | 13 | % | 12 | % | 12 | % | 12 | % | |||||||
| Motor | 7 | 7 | 7 | 5 | 8 | 7 | 7 | ||||||||||||||
| Multiline and other | 6 | 9 | 8 | 6 | 6 | 7 | 5 | ||||||||||||||
| Property | 14 | 8 | 11 | 9 | 15 | 11 | 11 | ||||||||||||||
| Specialty | |||||||||||||||||||||
| Agriculture | 13 | 10 | 10 | 13 | 12 | 11 | 12 | ||||||||||||||
| Aviation/Space | 2 | 5 | 3 | 4 | 2 | 4 | 4 | ||||||||||||||
| Catastrophe | 10 | 1 | 1 | 5 | 11 | 5 | 6 | ||||||||||||||
| Credit/Surety | 6 | 8 | 6 | 6 | 5 | 6 | 7 | ||||||||||||||
| Energy | 1 | 1 | 2 | 1 | 1 | 1 | 1 | ||||||||||||||
| Engineering | 2 | 4 | 3 | 3 | 2 | 3 | 3 | ||||||||||||||
| Marine | 3 | 4 | 5 | 4 | 2 | 4 | 5 | ||||||||||||||
| Specialty casualty | 3 | 3 | 3 | 3 | 3 | 3 | 3 | ||||||||||||||
| Specialty property | 2 | 2 | 4 | 4 | 2 | 3 | 3 | ||||||||||||||
| Life and Health | 18 | 26 | 25 | 24 | 19 | 23 | 21 | ||||||||||||||
| 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
| Distribution of Gross Premiums Written by Geography: | |||||||||||||||||||||
| Asia, Australia and New Zealand | 9 | % | 10 | % | 14 | % | 13 | % | 10 | % | 12 | % | 11 | % | |||||||
| Europe | 40 | 36 | 35 | 33 | 43 | 37 | 40 | ||||||||||||||
| Latin America, Caribbean and Africa | 9 | 11 | 11 | 9 | 9 | 10 | 10 | ||||||||||||||
| North America | 42 | 43 | 40 | 45 | 38 | 41 | 39 | ||||||||||||||
| 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
| Distribution of Gross Premiums Written by Production Source: | |||||||||||||||||||||
| Broker | 72 | % | 71 | % | 72 | % | 73 | % | 69 | % | 71 | % | 69 | % | |||||||
| Direct | 28 | 29 | 28 | 27 | 31 | 29 | 31 | ||||||||||||||
| 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
14
PartnerRe Ltd.
Distribution of Premiums
(Unaudited)
| For the three months ended | For the year ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | |||||||||||||||
| 2016 | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | |||||||||||||||
| Distribution of Gross Premiums Written by Reinsurance Type for the Non-life sub-segment: | |||||||||||||||||||||
| North America | |||||||||||||||||||||
| Non-Proportional | 23 | % | 7 | % | 15 | % | 14 | % | 25 | % | 16 | % | 16 | % | |||||||
| Proportional | 77 | 93 | 85 | 86 | 75 | 84 | 84 | ||||||||||||||
| Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||
| Global (Non-U.S.) P&C | |||||||||||||||||||||
| Non-Proportional | 35 | % | 3 | % | 10 | % | 11 | % | 34 | % | 20 | % | 22 | % | |||||||
| Proportional | 65 | 97 | 90 | 89 | 66 | 80 | 78 | ||||||||||||||
| Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||
| Global Specialty | |||||||||||||||||||||
| Non-Proportional | 25 | % | 7 | % | 12 | % | 15 | % | 24 | % | 15 | % | 17 | % | |||||||
| Proportional | 75 | 93 | 88 | 85 | 76 | 85 | 83 | ||||||||||||||
| Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||
| Catastrophe | |||||||||||||||||||||
| Non-Proportional | 97 | % | 90 | % | 96 | % | 97 | % | 97 | % | 97 | % | 98 | % | |||||||
| Proportional | 3 | 10 | 4 | 3 | 3 | 3 | 2 | ||||||||||||||
| Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||
| Non-life total | |||||||||||||||||||||
| Non-Proportional | 35 | % | 8 | % | 18 | % | 23 | % | 36 | % | 23 | % | 25 | % | |||||||
| Proportional | 65 | 92 | 82 | 77 | 64 | 77 | 75 | ||||||||||||||
| Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||
15
PartnerRe Ltd.
Investment Portfolio
(Expressed in millions of U.S. dollars)
(Unaudited)
| March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||||||||||||||||||||
| 2016 | 2015 | 2015 | 2015 | 2015 | 2014 | |||||||||||||||||||||||||||||||||||||
| Investments: | ||||||||||||||||||||||||||||||||||||||||||
| Fixed maturities | ||||||||||||||||||||||||||||||||||||||||||
| U.S. government | $ | 2,690 | 19 | % | $ | 2,810 | 20 | % | $ | 2,148 | 15 | % | $ | 2,282 | 16 | % | $ | 2,241 | 15 | % | $ | 2,277 | 15 | % | ||||||||||||||||||
| U.S. government sponsored enterprises | 105 | 1 | 63 | — | 48 | — | 53 | — | 58 | — | 39 | — | ||||||||||||||||||||||||||||||
| U.S. states, territories and municipalities | 780 | 5 | 778 | 5 | 760 | 5 | 682 | 5 | 621 | 4 | 531 | 3 | ||||||||||||||||||||||||||||||
| Non-U.S. sovereign government, supranational and government related | 1,197 | 9 | 1,333 | 9 | 1,288 | 9 | 1,492 | 10 | 1,557 | 10 | 1,976 | 13 | ||||||||||||||||||||||||||||||
| Corporates | 4,978 | 36 | 5,086 | 36 | 5,366 | 37 | 5,510 | 37 | 5,495 | 37 | 5,604 | 37 | ||||||||||||||||||||||||||||||
| Mortgage/asset-backed securities | 3,270 | 24 | 3,378 | 24 | 3,416 | 24 | 3,331 | 23 | 3,440 | 23 | 3,492 | 23 | ||||||||||||||||||||||||||||||
| Total fixed maturities | 13,020 | 94 | 13,448 | 94 | 13,026 | 90 | 13,350 | 91 | 13,412 | 89 | 13,919 | 91 | ||||||||||||||||||||||||||||||
| Short-term investments | 34 | — | 47 | — | 101 | 1 | 19 | — | 20 | — | 25 | — | ||||||||||||||||||||||||||||||
| Equities | 324 | 2 | 444 | 3 | 1,004 | 7 | 1,007 | 7 | 1,320 | 9 | 1,057 | 7 | ||||||||||||||||||||||||||||||
| Other invested assets | 459 | 4 | 399 | 3 | 345 | 2 | 340 | 2 | 287 | 2 | 299 | 2 | ||||||||||||||||||||||||||||||
| Total investments | $ | 13,837 | 100 | % | $ | 14,338 | 100 | % | $ | 14,476 | 100 | % | $ | 14,716 | 100 | % | $ | 15,039 | 100 | % | $ | 15,300 | 100 | % | ||||||||||||||||||
| Cash and cash equivalents | 1,750 | 1,577 | 1,256 | 1,493 | 1,414 | 1,313 | ||||||||||||||||||||||||||||||||||||
| Total investments and cash | $ | 15,587 | $ | 15,915 | $ | 15,732 | $ | 16,209 | $ | 16,453 | $ | 16,613 | ||||||||||||||||||||||||||||||
| Maturity distribution: | ||||||||||||||||||||||||||||||||||||||||||
| One year or less | $ | 431 | 3 | % | $ | 556 | 4 | % | $ | 548 | 4 | % | $ | 239 | 2 | % | $ | 257 | 2 | % | $ | 313 | 2 | |||||||||||||||||||
| More than one year through five years | 4,521 | 35 | 4,609 | 34 | 4,152 | 32 | 4,703 | 35 | 4,694 | 35 | 5,169 | 37 | ||||||||||||||||||||||||||||||
| More than five years through ten years | 3,224 | 25 | 3,342 | 25 | 3,433 | 26 | 3,642 | 27 | 3,669 | 27 | 3,719 | 27 | ||||||||||||||||||||||||||||||
| More than ten years | 1,608 | 12 | 1,610 | 12 | 1,578 | 12 | 1,454 | 11 | 1,372 | 10 | 1,251 | 9 | ||||||||||||||||||||||||||||||
| Subtotal | 9,784 | 75 | 10,117 | 75 | 9,711 | 74 | 10,038 | 75 | 9,992 | 74 | 10,452 | 75 | ||||||||||||||||||||||||||||||
| Mortgage/asset-backed securities | 3,270 | 25 | 3,378 | 25 | 3,416 | 26 | 3,331 | 25 | 3,440 | 26 | 3,492 | 25 | ||||||||||||||||||||||||||||||
| Total | $ | 13,054 | 100 | % | $ | 13,495 | 100 | % | $ | 13,127 | 100 | % | $ | 13,369 | 100 | % | $ | 13,432 | 100 | % | $ | 13,944 | 100 | % | ||||||||||||||||||
| Credit quality by market value: | ||||||||||||||||||||||||||||||||||||||||||
| AAA | 11 | % | 11 | % | 10 | % | 11 | % | 10 | % | 11 | % | ||||||||||||||||||||||||||||||
| AA | 47 | 47 | 44 | 44 | 45 | 46 | ||||||||||||||||||||||||||||||||||||
| A | 15 | 15 | 19 | 19 | 19 | 19 | ||||||||||||||||||||||||||||||||||||
| BBB | 20 | 20 | 18 | 18 | 17 | 16 | ||||||||||||||||||||||||||||||||||||
| Below Investment Grade/Unrated | 7 | 7 | 9 | 8 | 9 | 8 | ||||||||||||||||||||||||||||||||||||
| 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||||||||
Expected average duration (1) | 4.0 | Yrs | 3.6 | Yrs | 3.5 | Yrs | 3.6 | Yrs | 3.5 | Yrs | 3.7 | Yrs | ||||||||||||||||||||||||||||||
Average yield to maturity at market (1) | 2.4 | % | 2.9 | % | 2.8 | % | 2.7 | % | 2.3 | % | 2.4 | % | ||||||||||||||||||||||||||||||
| Average credit quality | A | A | A | A | A | A | ||||||||||||||||||||||||||||||||||||
(1) Includes funds holding fixed income securities that are classified with equities under generally accepted accounting principles in the United States.
16
PartnerRe Ltd.
Distribution of Corporate Bonds
(Expressed in thousands of U.S. dollars)
(Unaudited)
| March 31, 2016 | |||||||||||||||||||||||
| Fair Value | Percentage to Total Fair Value of Corporate Bonds | Percentage to Invested Assets and cash | Largest single issuer as a percentage of Invested Assets and cash | ||||||||||||||||||||
| Distribution by sector - Corporate bonds | |||||||||||||||||||||||
| Finance | $ | 998,313 | 20.1 | % | 6.4 | % | 0.8 | % | |||||||||||||||
| Consumer noncyclical | 735,641 | 14.8 | 4.7 | 0.5 | |||||||||||||||||||
| Utilities | 612,139 | 12.3 | 3.9 | 0.3 | |||||||||||||||||||
| Communications | 511,487 | 10.3 | 3.3 | 0.4 | |||||||||||||||||||
| Industrials | 456,006 | 9.2 | 2.9 | 0.2 | |||||||||||||||||||
| Consumer cyclical | 428,605 | 8.6 | 2.8 | 0.3 | |||||||||||||||||||
| Energy | 367,425 | 7.4 | 2.4 | 0.2 | |||||||||||||||||||
| Insurance | 306,369 | 6.1 | 2.0 | 0.2 | |||||||||||||||||||
| Technology | 125,441 | 2.5 | 0.8 | 0.2 | |||||||||||||||||||
| Basic materials | 120,735 | 2.4 | 0.8 | 0.1 | |||||||||||||||||||
| Real estate investment trusts | 115,782 | 2.3 | 0.7 | 0.1 | |||||||||||||||||||
| Catastrophe bonds | 100,032 | 2.0 | 0.6 | 0.1 | |||||||||||||||||||
| Government guaranteed corporate debt | 49,517 | 1.0 | 0.3 | 0.3 | |||||||||||||||||||
| Longevity and mortality bonds | 47,424 | 1.0 | 0.3 | 0.2 | |||||||||||||||||||
| Diversified | 2,879 | — | — | — | |||||||||||||||||||
| Total Corporate bonds | $ | 4,977,795 | 100.0 | % | 31.9 | % | |||||||||||||||||
| Finance sector - Corporate bonds | |||||||||||||||||||||||
| Banks | $ | 628,679 | 12.6 | % | 4.1 | % | |||||||||||||||||
| Investment banking and brokerage | 251,434 | 5.1 | 1.6 | ||||||||||||||||||||
| Financial services | 66,049 | 1.3 | 0.4 | ||||||||||||||||||||
| Commercial and consumer finance | 33,769 | 0.7 | 0.2 | ||||||||||||||||||||
| Other | 18,382 | 0.4 | 0.1 | ||||||||||||||||||||
| Total finance sector - Corporate bonds | $ | 998,313 | 20.1 | % | 6.4 | % | |||||||||||||||||
| AAA | AA | A | BBB | Non-Investment Grade/Unrated | Total | ||||||||||||||||||
| Credit quality of finance sector - Corporate bonds | |||||||||||||||||||||||
| Banks | $ | 34,244 | $ | 32,381 | $ | 245,313 | $ | 295,933 | $ | 20,808 | $ | 628,679 | |||||||||||
| Investment banking and brokerage | — | — | 19,822 | 230,442 | 1,170 | 251,434 | |||||||||||||||||
| Financial services | — | 44,400 | 16,671 | 4,978 | — | 66,049 | |||||||||||||||||
| Commercial and consumer finance | — | — | 8,313 | 25,456 | — | 33,769 | |||||||||||||||||
| Other | — | — | — | 18,382 | — | 18,382 | |||||||||||||||||
| Total finance sector - Corporate bonds | $ | 34,244 | $ | 76,781 | $ | 290,119 | $ | 575,191 | $ | 21,978 | $ | 998,313 | |||||||||||
| % of total | 3 | % | 8 | % | 29 | % | 58 | % | 2 | % | 100 | % | |||||||||||
Concentration of investment risk
The top 10 Corporate bond issuers account for 14.8% of the Company’s total corporate bonds. The single largest issuer accounts for 2.4% of the Company’s total Corporate bonds.
17
PartnerRe Ltd.
Distribution of Equities
(Expressed in thousands of U.S. dollars)
(Unaudited)
| March 31, 2016 | ||||||||||||
| Fair Value | Percentage to Total Fair Value of Equities | Percentage to Invested Assets and cash | Largest single issuer as a percentage of Invested Assets and cash | |||||||||
| Distribution by sector - Equities | ||||||||||||
| Finance | $ | 44,201 | 17.5 | % | 0.3 | % | 0.1 | % | ||||
| Consumer noncyclical | 41,544 | 16.5 | 0.3 | — | ||||||||
| Insurance | 30,033 | 11.9 | 0.2 | 0.1 | ||||||||
| Technology | 28,350 | 11.3 | 0.2 | — | ||||||||
| Industrials | 25,390 | 10.1 | 0.2 | — | ||||||||
| Consumer cyclical | 25,191 | 10.0 | 0.1 | — | ||||||||
| Communications | 23,146 | 9.2 | 0.1 | — | ||||||||
| Basic materials | 11,155 | 4.4 | 0.1 | — | ||||||||
| Real estate investment trusts | 9,013 | 3.6 | 0.1 | — | ||||||||
| Energy | 8,245 | 3.3 | — | — | ||||||||
| Utilities | 5,644 | 2.2 | — | — | ||||||||
| Diversified | 37 | — | — | — | ||||||||
| Total | $ | 251,949 | 100.0 | % | 1.6 | % | ||||||
| Mutual funds and exchange traded funds (ETFs) | ||||||||||||
| Funds and ETFs holding equities | 70,142 | 0.5 | ||||||||||
| Funds holding fixed income securities | 2,336 | — | ||||||||||
| Total Equities | $ | 324,427 | 2.1 | % | ||||||||
Concentration of investment risk
The single largest fund in funds and ETFs holding equities is Vanguard Group Inc, which accounts for 19.5% of the Company’s total equities. Excluding equity securities held in mutual funds and exchange traded funds, the top 10 common stock issuers account for 29.3% of the Company’s total equities. Excluding equity securities held in mutual funds and exchange traded funds, the single largest issuer accounts for 6.2% of the Company’s total equities.
18
PartnerRe Ltd.
Distribution of Mortgage/Asset-Backed Securities (1)
(Expressed in thousands of U.S. dollars)
(Unaudited)
Fixed Maturities - Mortgage/Asset-Backed Securities by type and by rating
| Rating at March 31, 2016 | |||||||||||||||||||||||||||||||
| GNMA | GSEs | AAA | AA | A | BBB | Non-Investment Grade/Unrated | Total | ||||||||||||||||||||||||
| U.S. Asset-Backed Securities | $ | — | $ | — | $ | 138,452 | $ | 109,078 | $ | 85,376 | $ | — | $ | 390,126 | $ | 723,032 | |||||||||||||||
| U.S. Collaterized Mortgage Obligations | — | 1,914 | 2,474 | — | — | — | — | 4,388 | |||||||||||||||||||||||
| U.S. Mortgage Backed Securities (MBS) | 375,156 | 1,326,515 | — | — | — | — | — | 1,701,671 | |||||||||||||||||||||||
| U.S. Commercial Mortgage Backed Securities (CMBS) | 5,287 | — | 5,616 | 9,657 | 18,189 | 126 | 1,850 | 40,725 | |||||||||||||||||||||||
| U.S. MBS Interest Only | 29,063 | 84,259 | 3,194 | — | — | — | 12,171 | 128,687 | |||||||||||||||||||||||
| $ | 409,506 | $ | 1,412,688 | $ | 149,736 | $ | 118,735 | $ | 103,565 | $ | 126 | $ | 404,147 | $ | 2,598,503 | ||||||||||||||||
| Non-U.S. Asset-Backed Securities | $ | — | $ | — | $ | 188,279 | $ | 44,307 | $ | 38,497 | $ | — | $ | 38,201 | $ | 309,284 | |||||||||||||||
| Non-U.S. Collaterized Mortgage Obligations | — | — | 166,953 | 35,846 | 18,435 | 1,470 | — | 222,704 | |||||||||||||||||||||||
| Non-U.S. Commercial Mortgage Backed Securities (CMBS) | — | — | 7,190 | — | — | — | — | 7,190 | |||||||||||||||||||||||
| Non-U.S. Mortgage Backed Securities (MBS) | — | — | 132,393 | — | — | — | — | 132,393 | |||||||||||||||||||||||
| $ | — | $ | — | $ | 494,815 | $ | 80,153 | $ | 56,932 | $ | 1,470 | $ | 38,201 | $ | 671,571 | ||||||||||||||||
| Total mortgage/asset-backed securities | $ | 409,506 | $ | 1,412,688 | $ | 644,551 | $ | 198,888 | $ | 160,497 | $ | 1,596 | $ | 442,348 | $ | 3,270,074 | |||||||||||||||
| Corporate Securities | — | 105,017 | — | — | — | — | — | 105,017 | |||||||||||||||||||||||
| Total | $ | 409,506 | $ | 1,517,705 | $ | 644,551 | $ | 198,888 | $ | 160,497 | $ | 1,596 | $ | 442,348 | $ | 3,375,091 | |||||||||||||||
| % of total | 12 | % | 45 | % | 19 | % | 6 | % | 5 | % | — | % | 13 | % | 100 | % | |||||||||||||||
| (1) | In addition to the mortgage/asset-backed securities above, the Company has derivatives exposure to to-be-announced mortgage-backed securities with a notional value of $439.1 million and a carrying value of $1.6 million at March 31, 2016 within Other Invested Assets. |
19
PartnerRe Ltd.
Funds Held - Directly Managed Portfolio
(Expressed in millions of U.S. dollars)
(Unaudited)
| March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||||||||||
| Investments: | ||||||||||||||||||||||||||||||||||||||||||
| Fixed maturities | ||||||||||||||||||||||||||||||||||||||||||
| U.S. government | $ | 145 | 34 | % | $ | 117 | 29 | % | $ | 111 | 27 | % | $ | 110 | 26 | % | $ | 107 | 25 | % | $ | 105 | 22 | % | ||||||||||||||||||
| U.S. government sponsored enterprises | 54 | 13 | 53 | 13 | 54 | 13 | 48 | 11 | 49 | 11 | 49 | 10 | ||||||||||||||||||||||||||||||
| Non-U.S. sovereign government, supranational and government related | 126 | 29 | 120 | 30 | 124 | 30 | 110 | 26 | 111 | 26 | 128 | 27 | ||||||||||||||||||||||||||||||
| Corporates | 91 | 21 | 99 | 25 | 108 | 26 | 137 | 32 | 145 | 33 | 177 | 38 | ||||||||||||||||||||||||||||||
| Total fixed maturities | 416 | 97 | % | 389 | 97 | 397 | 96 | 405 | 95 | 412 | 95 | 459 | 97 | |||||||||||||||||||||||||||||
| Short-term investments | — | — | 1 | — | 6 | 1 | 7 | 2 | 11 | 2 | — | — | ||||||||||||||||||||||||||||||
| Other invested assets | 11 | 3 | 10 | 3 | 12 | 3 | 13 | 3 | 12 | 3 | 14 | 3 | ||||||||||||||||||||||||||||||
| Total investments | $ | 427 | 100 | % | $ | 400 | 100 | % | $ | 415 | 100 | % | $ | 425 | 100 | % | $ | 435 | 100 | % | $ | 473 | 100 | % | ||||||||||||||||||
| Cash and cash equivalents | 39 | 65 | 64 | 58 | 54 | 42 | ||||||||||||||||||||||||||||||||||||
| Total investments and cash | $ | 466 | $ | 465 | $ | 479 | $ | 483 | $ | 489 | $ | 515 | ||||||||||||||||||||||||||||||
| Accrued investment income | 4 | 4 | 6 | 5 | 5 | 6 | ||||||||||||||||||||||||||||||||||||
| Other funds held assets/liabilities | 110 | 71 | 111 | 107 | 99 | 88 | ||||||||||||||||||||||||||||||||||||
| Total funds held - directly managed | $ | 580 | $ | 540 | $ | 596 | $ | 595 | $ | 593 | $ | 609 | ||||||||||||||||||||||||||||||
| Maturity distribution: | ||||||||||||||||||||||||||||||||||||||||||
| One year or less | $ | 86 | 21 | % | $ | 73 | 19 | % | $ | 64 | 16 | % | $ | 85 | 21 | % | $ | 71 | 17 | % | $ | 77 | 16 | % | ||||||||||||||||||
| More than one year through five years | 195 | 47 | 196 | 50 | 210 | 52 | 204 | 49 | 210 | 50 | 241 | 53 | ||||||||||||||||||||||||||||||
| More than five years through ten years | 116 | 28 | 101 | 26 | 108 | 27 | 123 | 30 | 142 | 33 | 141 | 31 | ||||||||||||||||||||||||||||||
| More than ten years | 19 | 4 | 20 | 5 | 21 | 5 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
| Total | $ | 416 | 100 | % | $ | 390 | 100 | % | $ | 403 | 100 | % | $ | 412 | 100 | % | $ | 423 | 100 | % | $ | 459 | 100 | % | ||||||||||||||||||
| Credit quality by market value: | ||||||||||||||||||||||||||||||||||||||||||
| AAA | 11 | % | 12 | % | 12 | % | 11 | % | 11 | % | 12 | % | ||||||||||||||||||||||||||||||
| AA | 68 | 68 | 67 | 66 | 66 | 64 | ||||||||||||||||||||||||||||||||||||
| A | 15 | 14 | 14 | 16 | 16 | 17 | ||||||||||||||||||||||||||||||||||||
| BBB | 6 | 6 | 7 | 7 | 7 | 7 | ||||||||||||||||||||||||||||||||||||
| 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||||||||
| Expected average duration | 3.7 | Yrs | 3.6 | Yrs | 3.7 | Yrs | 3.3 | Yrs | 3.3 | Yrs | 3.4 | Yrs | ||||||||||||||||||||||||||||||
| Average yield to maturity at market | 0.8 | % | 1.2 | % | 1.0 | % | 1.1 | % | 0.8 | % | 1.0 | % | ||||||||||||||||||||||||||||||
| Average credit quality | AA | AA | AA | AA | AA | AA | ||||||||||||||||||||||||||||||||||||
20
PartnerRe Ltd.
Composition of Net Investment Income and Net Realized and Unrealized Investment Gains (Losses)
(Expressed in thousands of U.S. dollars)
(Unaudited)
| For the three months ended | For the year ended | |||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | ||||||||||||||||||||||
| 2016 | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||||||||||||||
| Fixed maturities | $ | 103,817 | $ | 104,619 | $ | 108,554 | $ | 109,749 | $ | 102,619 | $ | 425,541 | $ | 443,414 | ||||||||||||||
| Short-term investments, cash and cash equivalents | 337 | 275 | 288 | 151 | 140 | 854 | 868 | |||||||||||||||||||||
| Equities | 2,205 | 5,621 | 8,818 | 10,385 | 5,915 | 30,739 | 40,326 | |||||||||||||||||||||
| Funds held and other | 6,417 | 5,908 | 7,648 | 9,227 | 4,623 | 27,406 | 33,192 | |||||||||||||||||||||
| Funds held - directly managed | 2,827 | 2,927 | 2,595 | 3,132 | 3,022 | 11,676 | 13,841 | |||||||||||||||||||||
| Investment expenses | (12,616 | ) | (11,442 | ) | (10,849 | ) | (12,452 | ) | (11,688 | ) | (46,432 | ) | (51,945 | ) | ||||||||||||||
Net investment income (1) | $ | 102,987 | $ | 107,908 | $ | 117,054 | $ | 120,192 | $ | 104,631 | $ | 449,784 | $ | 479,696 | ||||||||||||||
| Net realized investment (losses) gains on fixed maturities and short-term investments | $ | (3,513 | ) | $ | 4,936 | $ | (3,095 | ) | $ | 12,597 | $ | 51,858 | $ | 66,296 | $ | 120,734 | ||||||||||||
| Net realized investment gains on equities | 10,239 | 64,952 | 20,440 | 31,852 | 20,365 | 137,609 | 98,733 | |||||||||||||||||||||
| Net realized (losses) gains on other invested assets | (32,599 | ) | 13,947 | (25,785 | ) | (13,730 | ) | (7,749 | ) | (33,317 | ) | (20,686 | ) | |||||||||||||||
| Change in net unrealized gains (losses) on other invested assets | 3,112 | 18,901 | (12,473 | ) | 16,056 | (21,640 | ) | 844 | (58,180 | ) | ||||||||||||||||||
| Change in net unrealized investment gains (losses) on fixed maturities and short-term investments | 211,916 | (80,454 | ) | (19,375 | ) | (253,918 | ) | 76,971 | (276,776 | ) | 228,781 | |||||||||||||||||
| Change in net unrealized investment (losses) gains on equities | (27,483 | ) | (40,153 | ) | (94,869 | ) | (45,523 | ) | (7,016 | ) | (187,561 | ) | 2,605 | |||||||||||||||
| Net other realized and unrealized investment (losses) gains | — | (2,233 | ) | — | 3,286 | — | 1,053 | (3,624 | ) | |||||||||||||||||||
| Net realized and unrealized investment gains (losses) on funds held - directly managed | 5,521 | (4,269 | ) | 2,140 | (6,354 | ) | 2,856 | (5,627 | ) | 3,433 | ||||||||||||||||||
Net realized and unrealized investment gains (losses) | $ | 167,193 | $ | (24,373 | ) | $ | (133,017 | ) | $ | (255,734 | ) | $ | 115,645 | $ | (297,479 | ) | $ | 371,796 | ||||||||||
| (1) | Comparisons of net investment income between periods include the impact of foreign exchange variances. For the three months ended March 31, 2016, net investment income includes foreign exchange impacts of $(2.9) million compared to the three months ended March 31, 2015. |
21
PartnerRe Ltd.
Analysis of Unpaid Losses and Loss Expenses
(Expressed in thousands of U.S. dollars)
(Unaudited)
| As at and for the three months ended | As at and for the year ended | |||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | ||||||||||||||||||||||
| 2016 | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||||||||||||||
| Reconciliation of beginning and ending liability for unpaid losses and loss expenses: | ||||||||||||||||||||||||||||
| Gross liability at beginning of period | $ | 9,064,711 | $ | 9,522,225 | $ | 9,549,398 | $ | 9,401,397 | $ | 9,745,806 | $ | 9,745,806 | $ | 10,646,318 | ||||||||||||||
| Reinsurance recoverable at beginning of period | (189,234 | ) | (202,666 | ) | (202,839 | ) | (196,981 | ) | (214,349 | ) | (214,349 | ) | (267,384 | ) | ||||||||||||||
| Net liability at beginning of period | 8,875,477 | 9,319,559 | 9,346,559 | 9,204,416 | 9,531,457 | 9,531,457 | 10,378,934 | |||||||||||||||||||||
| Net incurred losses related to: | ||||||||||||||||||||||||||||
| Current year | 693,069 | 737,594 | 802,518 | 778,416 | 705,176 | 3,023,704 | 3,122,981 | |||||||||||||||||||||
| Prior years | (183,437 | ) | (187,064 | ) | (245,936 | ) | (173,368 | ) | (224,337 | ) | (830,705 | ) | (660,413 | ) | ||||||||||||||
| 509,632 | 550,530 | 556,582 | 605,048 | 480,839 | 2,192,999 | 2,462,568 | ||||||||||||||||||||||
Change in reserve agreement (1) | 28,224 | (21,879 | ) | — | — | 13,108 | (8,771 | ) | (25,412 | ) | ||||||||||||||||||
| Net losses paid | (370,469 | ) | (898,794 | ) | (518,556 | ) | (533,577 | ) | (471,676 | ) | (2,422,603 | ) | (2,798,549 | ) | ||||||||||||||
| Effects of foreign exchange rate changes | 95,346 | (73,939 | ) | (65,026 | ) | 70,672 | (349,312 | ) | (417,605 | ) | (486,084 | ) | ||||||||||||||||
| Net liability at end of period | 9,138,210 | 8,875,477 | 9,319,559 | 9,346,559 | 9,204,416 | 8,875,477 | 9,531,457 | |||||||||||||||||||||
| Reinsurance recoverable at end of period | 192,877 | 189,234 | 202,666 | 202,839 | 196,981 | 189,234 | 214,349 | |||||||||||||||||||||
| Gross liability at end of period | $ | 9,331,087 | $ | 9,064,711 | $ | 9,522,225 | $ | 9,549,398 | $ | 9,401,397 | $ | 9,064,711 | $ | 9,745,806 | ||||||||||||||
| Breakdown of gross liability at end of period: | ||||||||||||||||||||||||||||
| Case reserves | $ | 3,780,317 | $ | 3,716,195 | $ | 3,875,962 | $ | 3,960,022 | $ | 3,975,276 | $ | 3,716,195 | $ | 4,236,038 | ||||||||||||||
| Additional case reserves | 215,238 | 190,183 | 194,265 | 220,023 | 229,363 | 190,183 | 253,890 | |||||||||||||||||||||
| Incurred but not reported reserves | 5,335,532 | 5,158,333 | 5,451,998 | 5,369,353 | 5,196,758 | 5,158,333 | 5,255,878 | |||||||||||||||||||||
| Gross liability at end of period | $ | 9,331,087 | $ | 9,064,711 | $ | 9,522,225 | $ | 9,549,398 | $ | 9,401,397 | $ | 9,064,711 | $ | 9,745,806 | ||||||||||||||
| Breakdown of gross liability at end of period by Non-life sub-segment: | ||||||||||||||||||||||||||||
| North America | $ | 3,229,569 | $ | 3,147,079 | $ | 3,437,238 | $ | 3,439,780 | $ | 3,317,662 | $ | 3,147,079 | $ | 3,307,948 | ||||||||||||||
| Global (Non-U.S.) P&C | 2,101,538 | 2,009,523 | 2,044,735 | 2,053,451 | 2,021,090 | 2,009,523 | 2,175,965 | |||||||||||||||||||||
| Global Specialty | 3,691,729 | 3,575,387 | 3,685,691 | 3,676,958 | 3,620,345 | 3,575,387 | 3,769,758 | |||||||||||||||||||||
| Catastrophe | 308,251 | 332,722 | 354,561 | 379,209 | 442,300 | 332,722 | 492,135 | |||||||||||||||||||||
| Gross liability at end of period | $ | 9,331,087 | $ | 9,064,711 | $ | 9,522,225 | $ | 9,549,398 | $ | 9,401,397 | $ | 9,064,711 | $ | 9,745,806 | ||||||||||||||
Unrecognized time value of non-life reserves (2) | $ | 372,792 | $ | 508,269 | $ | 430,596 | $ | 490,714 | $ | 369,059 | $ | 508,269 | $ | 474,258 | ||||||||||||||
| Non-life paid loss ratio data: | ||||||||||||||||||||||||||||
| Non-life paid losses to incurred losses ratio | 72.7 | % | 163.3 | % | 93.2 | % | 88.2 | % | 98.1 | % | 110.5 | % | 113.6 | % | ||||||||||||||
| Non-life paid losses to net premiums earned ratio | 42.5 | % | 89.7 | % | 46.7 | % | 52.7 | % | 50.4 | % | 59.7 | % | 63.8 | % | ||||||||||||||
(1) The change in the reserve agreement is due to adverse (favorable) development on Paris Re’s reserves which are guaranteed by Axa under the reserve agreement.
(2) The unrecognized time value of non-life reserves represents the difference between the recorded gross/net liability for unpaid losses and loss expenses and the amount of gross/net liability for unpaid losses and loss expenses that would be recorded if the underlying unpaid losses and loss expenses were discounted. The unrecognized time value, or discount, in the non-life reserves is calculated by applying appropriate risk-free rates by currency and duration to the underlying unpaid losses and loss expenses.
22
PartnerRe Ltd.
Analysis of Policy Benefits for Life and Annuity Contracts
(Expressed in thousands of U.S. dollars)
(Unaudited)
| As at and for the three months ended | As at and for the year ended | |||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | ||||||||||||||||||||||
| 2016 | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||||||||||||||
| Reconciliation of beginning and ending policy benefits for life and annuity contracts: | ||||||||||||||||||||||||||||
| Gross liability at beginning of period | $ | 2,051,935 | $ | 2,123,028 | $ | 2,087,369 | $ | 1,996,519 | $ | 2,050,107 | $ | 2,050,107 | $ | 1,974,133 | ||||||||||||||
| Reinsurance recoverable at beginning of period | (42,773 | ) | (38,744 | ) | (36,752 | ) | (29,247 | ) | (29,495 | ) | (29,495 | ) | (7,022 | ) | ||||||||||||||
| Net liability at beginning of period | 2,009,162 | 2,084,284 | 2,050,617 | 1,967,272 | 2,020,612 | 2,020,612 | 1,967,111 | |||||||||||||||||||||
| Net incurred losses related to: | ||||||||||||||||||||||||||||
| Current year | 219,450 | 229,334 | 254,401 | 272,752 | 254,450 | 1,010,937 | 1,019,240 | |||||||||||||||||||||
| Prior years | (14,814 | ) | (12,838 | ) | (6,787 | ) | (12,883 | ) | (14,008 | ) | (46,516 | ) | (19,038 | ) | ||||||||||||||
| 204,636 | 216,496 | 247,614 | 259,869 | 240,442 | 964,421 | 1,000,202 | ||||||||||||||||||||||
| Net losses paid | (187,881 | ) | (254,824 | ) | (182,255 | ) | (231,702 | ) | (166,408 | ) | (835,190 | ) | (780,905 | ) | ||||||||||||||
| Effects of foreign exchange rate changes | 19,902 | (36,794 | ) | (31,692 | ) | 55,178 | (127,374 | ) | (140,681 | ) | (165,796 | ) | ||||||||||||||||
| Net liability at end of period | 2,045,819 | 2,009,162 | 2,084,284 | 2,050,617 | 1,967,272 | 2,009,162 | 2,020,612 | |||||||||||||||||||||
| Reinsurance recoverable at end of period | 43,236 | 42,773 | 38,744 | 36,752 | 29,247 | 42,773 | 29,495 | |||||||||||||||||||||
| Gross liability at end of period | $ | 2,089,055 | $ | 2,051,935 | $ | 2,123,028 | $ | 2,087,369 | $ | 1,996,519 | $ | 2,051,935 | $ | 2,050,107 | ||||||||||||||
| Life value in force | $ | 191,800 | $ | 204,300 | $ | 175,600 | $ | 146,100 | $ | 109,900 | $ | 204,300 | $ | 145,100 | ||||||||||||||
23
PartnerRe Ltd.
Reserve Development
(Expressed in thousands of U.S. dollars)
(Unaudited)
| For the three months ended | For the year ended | ||||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | |||||||||||||||||||||||
| 2016 | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | |||||||||||||||||||||||
| Prior year net favorable (adverse) reserve development: | |||||||||||||||||||||||||||||
| Non-life segment: | |||||||||||||||||||||||||||||
| North America | $ | 80,733 | $ | 55,741 | $ | 102,428 | $ | 43,701 | $ | 82,536 | $ | 284,406 | $ | 250,942 | |||||||||||||||
| Global (Non-U.S.) P&C | 23,282 | 29,726 | 38,457 | 10,224 | 18,031 | 96,438 | 134,394 | ||||||||||||||||||||||
| Global Specialty | 68,827 | 110,940 | 103,584 | 110,045 | 109,675 | 434,244 | 257,696 | ||||||||||||||||||||||
| Catastrophe | 10,595 | (9,343 | ) | 1,467 | 9,398 | 14,095 | 15,617 | 17,381 | |||||||||||||||||||||
| Total Non-life net prior year reserve development | $ | 183,437 | $ | 187,064 | $ | 245,936 | $ | 173,368 | $ | 224,337 | $ | 830,705 | $ | 660,413 | |||||||||||||||
| Non-life segment: | |||||||||||||||||||||||||||||
| Net prior year reserve development due to changes in premiums | $ | 19,323 | $ | 16,233 | $ | 13,759 | $ | (2,492 | ) | $ | (3,540 | ) | $ | 23,960 | $ | (37,940 | ) | ||||||||||||
Net prior year reserve development due to all other factors (2) | 164,114 | 170,831 | 232,177 | 175,860 | 227,877 | 806,745 | 698,353 | ||||||||||||||||||||||
| Total Non-life net prior year reserve development | $ | 183,437 | $ | 187,064 | $ | 245,936 | $ | 173,368 | $ | 224,337 | $ | 830,705 | $ | 660,413 | |||||||||||||||
| Non-life segment: | |||||||||||||||||||||||||||||
| Short tail lines of business | $ | 67,056 | $ | 53,967 | $ | 67,357 | $ | 39,295 | $ | 34,749 | $ | 195,367 | $ | 221,171 | |||||||||||||||
| Medium tail lines of business | $ | 36,180 | $ | 60,137 | $ | 86,076 | $ | 68,997 | $ | 76,969 | $ | 292,180 | $ | 159,753 | |||||||||||||||
| Long tail lines of business | $ | 80,201 | $ | 72,960 | $ | 92,503 | $ | 65,076 | $ | 112,619 | $ | 343,158 | $ | 279,489 | |||||||||||||||
Total Non-life net prior year reserve development by tail (3) | $ | 183,437 | $ | 187,064 | $ | 245,936 | $ | 173,368 | $ | 224,337 | $ | 830,705 | $ | 660,413 | |||||||||||||||
| Life and Health segment: | |||||||||||||||||||||||||||||
Net prior year reserve development due to GMDB (1) | $ | 3,536 | $ | 3,354 | $ | (2,348 | ) | $ | 5,626 | $ | 4,977 | $ | 11,610 | $ | 7,163 | ||||||||||||||
Net prior year reserve development due to all other factors (2) | 11,278 | 9,484 | 9,135 | 7,257 | 9,031 | 34,906 | 11,875 | ||||||||||||||||||||||
| Total Life and Health net prior year reserve development | $ | 14,814 | $ | 12,838 | $ | 6,787 | $ | 12,883 | $ | 14,008 | $ | 46,516 | $ | 19,038 | |||||||||||||||
| (1) | The guaranteed minimum death benefit (GMDB) reserves are sensitive to volatility in certain referenced global equity markets. At March 31, 2016, a 10% increase in the referenced global equity market would have decreased reserves by approximately $1.5 million, while a 10% decrease in the referenced global equity market would have increased reserves by approximately $2.2 million. |
| (2) | Net prior year reserve development due to all other factors includes, but is not limited to loss experience, changes in assumptions and changes in methodology. |
| (3) | Short tail lines of business include Agriculture, Proportional Motor, Property, Energy and Catastrophe. Medium tail lines of business include Aviation, Credit/Surety, Marine, Engineering and Multiline. Long tail lines of business include Casualty and Non Proportional Motor. |
24
PartnerRe Ltd.
Natural Catastrophe Probable Maximum Losses (PMLs)
(Expressed in millions of U.S. dollars)
(Unaudited)
Single occurrence estimated net PML exposure (1)
| January 1, 2016 | October 1, 2015 | July 1, 2015 | April 1, 2015 | January 1, 2015 | ||||||||||||||||||||||||||||||||||||||
| Zone | Peril | 1-in-250 year PML | 1-in-500 year PML (Earthquake perils only) | 1-in-250 year PML | 1-in-500 year PML (Earthquake perils only) | 1-in-250 year PML | 1-in-500 year PML (Earthquake perils only) | 1-in-250 year PML | 1-in-500 year PML (Earthquake perils only) | 1-in-250 year PML | 1-in-500 year PML (Earthquake perils only) | |||||||||||||||||||||||||||||||
| U.S. Southeast | Hurricane | $ | 580 | $ | 533 | $ | 533 | $ | 746 | $ | 765 | |||||||||||||||||||||||||||||||
| U.S. Northeast | Hurricane | 701 | 708 | 708 | 925 | 963 | ||||||||||||||||||||||||||||||||||||
| U.S. Gulf Coast | Hurricane | 596 | 577 | 577 | 787 | 850 | ||||||||||||||||||||||||||||||||||||
| Caribbean | Hurricane | 180 | 174 | 174 | 177 | 179 | ||||||||||||||||||||||||||||||||||||
| Europe | Windstorm | 461 | 544 | 544 | 561 | 606 | ||||||||||||||||||||||||||||||||||||
| Japan | Typhoon | 195 | 195 | 195 | 201 | 145 | ||||||||||||||||||||||||||||||||||||
| California | Earthquake | 553 | $ | 699 | 469 | $ | 588 | 469 | $ | 588 | 637 | $ | 775 | 609 | $ | 730 | ||||||||||||||||||||||||||
| British Columbia | Earthquake | 196 | 358 | 199 | 379 | 199 | 379 | 214 | 390 | 223 | 414 | |||||||||||||||||||||||||||||||
| Japan | Earthquake | 335 | 383 | 377 | 421 | 377 | 421 | 390 | 437 | 393 | 440 | |||||||||||||||||||||||||||||||
| Australia | Earthquake | 241 | 325 | 236 | 350 | 236 | 350 | 246 | 357 | 305 | 415 | |||||||||||||||||||||||||||||||
| New Zealand | Earthquake | 133 | 197 | 161 | 205 | 161 | 205 | 165 | 196 | 194 | 229 | |||||||||||||||||||||||||||||||
| (1) | The PML estimates are pre-tax and net of retrocession and reinstatement premiums. The peril zones in this disclosure are major peril zones for the industry. The Company has exposures in other peril zones that can potentially generate losses greater than the PML estimates in this disclosure. |
For more information regarding cautionary language related to the Natural Catastrophe PML disclosure and the forward-looking statements, as well as uncertainties and limitations associated with certain assumptions and the methodology used, you must refer to the Company’s natural catastrophe PML information and definitions, see Business - Natural Catastrophe Probable Maximum Loss (PML) in Item 1 of Part 1 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.
25
PartnerRe Ltd.
Reconciliation of GAAP and non-GAAP measures
(in thousands of U.S. dollars)
(Unaudited)
| For the three months ended | For the year ended | |||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | ||||||||||||||||||||||
| 2016 | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||||||||||||||
| Reconciliation of GAAP and non-GAAP measures: | ||||||||||||||||||||||||||||
| Beginning of period common shareholders' equity | 6,046,751 | 5,921,387 | 6,226,176 | 6,343,395 | 6,195,160 | 6,195,160 | 5,855,782 | |||||||||||||||||||||
| End of period common shareholders' equity | 6,056,435 | 6,046,751 | 5,921,387 | 6,226,176 | 6,343,395 | 6,046,751 | 6,195,160 | |||||||||||||||||||||
Average common shareholders' equity(2) | 6,051,593 | 5,984,069 | 6,073,781 | 6,284,786 | 6,269,278 | 6,120,956 | 6,025,471 | |||||||||||||||||||||
| Annualized return on average common shareholders' equity calculated with net income attributable to common shareholders | 13.3 | % | 10.9 | % | (16.0 | )% | (6.6 | )% | 14.8 | % | 0.8 | % | 16.6 | % | ||||||||||||||
| Less: | ||||||||||||||||||||||||||||
| Annualized net realized and unrealized investment gains (losses), net of tax, on average common shareholders' equity | 9.8 | (1.5 | ) | (8.0 | ) | (13.9 | ) | 6.4 | (4.3 | ) | 4.8 | |||||||||||||||||
| Annualized net foreign exchange gains (losses), net of tax, on average common shareholders' equity | 0.6 | (0.2 | ) | (1.0 | ) | (0.3 | ) | (1.0 | ) | (0.7 | ) | (0.8 | ) | |||||||||||||||
| Annualized net interest in (losses) earnings of equity method investments, net of tax, on average common shareholders' equity | — | 0.3 | (0.2 | ) | 0.4 | (0.2 | ) | 0.1 | 0.2 | |||||||||||||||||||
| Annualized amalgamation termination fee and reimbursement of expenses, on average common shareholders' equity | — | — | (20.7 | ) | — | — | (5.1 | ) | — | |||||||||||||||||||
| Withholding tax on inter-company dividends, net of tax, on average common shareholders' equity | — | — | — | — | — | — | (0.1 | ) | ||||||||||||||||||||
| Annualized operating return on average common shareholders' equity | 2.9 | % | 12.3 | % | 13.9 | % | 7.2 | % | 9.6 | % | 10.8 | % | 12.5 | % | ||||||||||||||
| Net income attributable to PartnerRe | $ | 215,626 | $ | 176,511 | $ | (229,137 | ) | $ | (88,909 | ) | $ | 245,917 | $ | 104,381 | $ | 1,054,974 | ||||||||||||
| Less: | ||||||||||||||||||||||||||||
| Net realized and unrealized investment gains (losses), net of tax | 148,060 | (22,757 | ) | (121,764 | ) | (217,224 | ) | 100,311 | (261,434 | ) | 286,252 | |||||||||||||||||
| Net foreign exchange gains (losses), net of tax | 9,643 | (3,406 | ) | (15,896 | ) | (5,094 | ) | (15,801 | ) | (40,198 | ) | (45,883 | ) | |||||||||||||||
| Interest in (losses) earnings of equity method investments, net of tax | (499 | ) | 4,632 | (2,244 | ) | 6,731 | (3,313 | ) | 5,806 | 8,577 | ||||||||||||||||||
| Amalgamation termination fee and reimbursement of expenses | — | (315,000 | ) | — | — | (315,000 | ) | — | ||||||||||||||||||||
| Withholding tax on inter-company dividends, net of tax | — | — | — | — | — | — | (6,125 | ) | ||||||||||||||||||||
| Dividends to preferred shareholders | 14,184 | 14,184 | 14,184 | 14,184 | 14,184 | 56,735 | 56,735 | |||||||||||||||||||||
Operating earnings attributable to PartnerRe common shareholders (1) | $ | 44,238 | $ | 183,858 | $ | 211,583 | $ | 112,494 | $ | 150,536 | $ | 658,472 | $ | 755,418 | ||||||||||||||
| (1) See page 13 for the impact of expenses related to the Axis and Exor transactions and the impact of the negotiated earn-out consideration paid to the former shareholders of Presidio Reinsurance Group, Inc on the annualized operating return on average common shareholders' equity. | ||||||||||||||||||||||||||||
| (2) Average common shareholders' equity is calculated by using the sum of the beginning of period and end of period common shareholders' equity divided by two. | ||||||||||||||||||||||||||||
26
PartnerRe Ltd.
Reconciliation of GAAP and non-GAAP measures
(in thousands of U.S. dollars)
(Unaudited)
| March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||
| 2016 | 2015 | 2015 | 2015 | 2015 | 2014 | |||||||||||||||||||
| Reconciliation of GAAP and non-GAAP measures: | ||||||||||||||||||||||||
| Total shareholders' equity | $ | 6,910,185 | $ | 6,902,951 | $ | 6,777,349 | $ | 7,082,143 | $ | 7,254,828 | $ | 7,104,411 | ||||||||||||
| Less: | ||||||||||||||||||||||||
| Preferred shares, aggregate liquidation value | 853,750 | 853,750 | 853,750 | 853,750 | 853,750 | 853,750 | ||||||||||||||||||
| Noncontrolling interests | — | 2,450 | 2,212 | 2,217 | 57,683 | 55,501 | ||||||||||||||||||
| Common shareholders' equity attributable to PartnerRe | 6,056,435 | 6,046,751 | 5,921,387 | 6,226,176 | 6,343,395 | 6,195,160 | ||||||||||||||||||
| Less: | ||||||||||||||||||||||||
| Goodwill | 456,380 | 456,380 | 456,380 | 456,380 | 456,380 | 456,380 | ||||||||||||||||||
| Intangible assets, net of tax | 86,846 | 90,326 | 93,869 | 98,499 | 103,276 | 105,652 | ||||||||||||||||||
| Tangible book value | $ | 5,513,209 | $ | 5,500,045 | $ | 5,371,138 | $ | 5,671,297 | $ | 5,783,739 | $ | 5,633,128 | ||||||||||||
27