Exhibit 99.2
PartnerRe Ltd.
Financial Supplement
Financial Information
as at June 30, 2012
(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/A and Quarterly Reports on Form 10-Q.
PartnerRe Ltd.
Financial Supplement - June 30, 2012
Table of Contents
Page | ||||
Regulation G and Basis of Presentation | ||||
Consolidated Financial Statements | ||||
Consolidated Income Statements | 1-2 | |||
Condensed Consolidated Balance Sheets | 3 | |||
Condensed Consolidated Statements of Cash Flows | 4-5 | |||
Consolidated Statements of Comprehensive Income (Loss) | 6 | |||
Segment Information | ||||
For the three months ended June 30, 2012 and 2011 | 7-8 | |||
For the six months ended June 30, 2012 and 2011 | 9-10 | |||
Non-life segment | 11-12 | |||
North America sub-segment | 13-14 | |||
Global (Non-U.S.) P&C sub-segment | 15-16 | |||
Global (Non-U.S.) Specialty sub-segment | 17-18 | |||
Catastrophe sub-segment | 19-20 | |||
Life segment | 21-22 | |||
Corporate and Other | 23-24 | |||
Distribution of Premiums | ||||
Distribution of Premiums by line of business, geography and production source | 25-26 | |||
Distribution of Premiums by reinsurance type | 27-28 | |||
Investments | ||||
Investment Portfolio | 29 | |||
Distribution of Corporate Bonds | 30 | |||
Distribution of Equities | 31 | |||
Distribution of Mortgage/Asset-Backed Securities | 32 | |||
Other Invested Assets including Private Markets and Derivative Exposures | 33 | |||
Funds Held - Directly Managed Portfolio | 34 | |||
Distribution of Corporate Bonds - Funds Held - Directly Managed Portfolio | 35 | |||
Composition of Net Investment Income and Net Realized and Unrealized Investment Gains (Losses) | 36-37 | |||
Composition of Net Investment Income and Net Realized and Unrealized Investment Gains (Losses) on Funds Held - Directly Managed Portfolio | 38-39 | |||
Loss Reserves | ||||
Analysis of Unpaid Losses and Loss Expenses | 40-41 | |||
Analysis of Policy Benefits for Life and Annuity Contracts | 42-43 | |||
Reserve Development | 44-45 | |||
Natural Catastrophe Probable Maximum Losses (PMLs) | 46 | |||
Reconciliation of GAAP and non-GAAP measures | 47-49 | |||
Diluted Book Value per Common Share - Treasury Stock Method | 50 | |||
Diluted Book Value per Common Share - Rollforward | 51-53 |
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 Common Shareholders (Operating Earnings (Loss)), Diluted Operating Earnings (Loss) per Common Share and Annualized Operating Return on Beginning Diluted Book Value per Common Share and Common Share Equivalents Outstanding (Annualized Operating ROE):The Company uses Operating Earnings (Loss), Diluted Operating Earnings (Loss) per Common Share 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, net foreign exchange gains and losses, net of tax, and the interest in earnings (losses) of equity investments, net of tax, where the investee’s operations are not insurance or reinsurance related and where the Company does not control the investee companies’ activities, and are calculated after preferred dividends. The Company calculates Diluted Operating Earnings (Loss) per Common Share using Operating Earnings (Loss) for the period divided by the weighted average number of common shares and common share equivalents outstanding. The Company calculates Annualized Operating ROE using annualized Diluted Operating Earnings (Loss) per Common Share for the period divided by the Diluted Book Value per common share and common share equivalents outstanding as of the beginning of the year. Operating Earnings (Loss) and Diluted Operating Earnings (Loss) per Common Share should not be viewed as a substitute for Net Income (Loss) or Diluted Net Income (Loss) per Common Share prepared in accordance with GAAP. Annualized Operating ROE supplements GAAP information.
Book Value excluding Net Unrealized Gains and Losses on Fixed Income Securities and Funds Held - Directly Managed, Net of Tax (Book Value excluding NURGL) and Diluted Book Value per Common Share and Common Share Equivalents Outstanding (Diluted Book Value per Common Share) excluding Net Unrealized Gains and Losses on Fixed Income Securities and Funds Held - Directly Managed, Net of Tax (Diluted Book Value excluding NURGL):The Company calculates Book Value excluding NURGL using common shareholders’ equity less net unrealized gains and losses on fixed income securities and funds held - directly managed, net of tax. Book Value excluding NURGL focuses on the underlying fundamentals of the Company’s financial position without the impact of interest rates and credit spreads on the unrealized gains and losses on fixed income securities and funds held - directly managed, net of tax. The Company calculates Diluted Book Value excluding NURGL using Book Value excluding NURGL divided by the weighted average number of common shares and common share equivalents outstanding.
Total Capital: The Company calculates Total Capital as the sum of total shareholders’ equity, 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
Effective January 1, 2011, the Company redefined its Operating Earnings (Loss), Diluted Operating Earnings (Loss) per Common Share and Annualized Operating ROE calculations. Following the redefinition, Operating Earnings (Loss) exclude the impact of net foreign exchange gains and losses, net of tax, in addition to net realized and unrealized gains and losses on investments, net of tax, and certain of the interest in earnings (losses) of equity investments, net of tax, and are calculated after preferred dividends. In addition, following the redefinition, Annualized Operating ROE is calculated on a diluted per share basis. All periods presented have been recast to reflect the Company’s redefined non-GAAP measures. For a reconciliation of the previously published non-GAAP measures for the year ended December 31, 2010 to the redefined non-GAAP measures, see the Company’s financial supplement as of December 31, 2011.
The Company’s Non-life sub-segment information has been recast for all periods presented to reflect the redefined financial reporting segments, as announced by the Company on January 11, 2011. The new presentation continues to include three segments: Non-life, Life, and Corporate and Other. The Non-life segment now has four sub-segments: North America, Global (Non-U.S.) P&C, Global (Non-U.S.) Specialty, and Catastrophe. The Life segment remains unchanged. Paris Re is no longer presented as a separate Non-life sub-segment and its historical results have been recast into the Company’s other Non-life sub-segments. In addition, management responsibilities for certain lines of business and certain other treaties have been redefined, and accordingly, the historical Non-life sub-segment results have been recast to reflect these changes.
PartnerRe Ltd.
Consolidated Income Statements
(Expressed in thousands of U.S. dollars or shares, except per share data)
(Unaudited)
For the three months ended | ||||||||||||||||||||
June 30, 2012 | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | ||||||||||||||||
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Revenues | ||||||||||||||||||||
Gross premiums written | $ | 1,163,243 | $ | 1,567,483 | $ | 897,962 | $ | 1,095,326 | $ | 1,082,205 | ||||||||||
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Net premiums written | $ | 1,136,046 | $ | 1,473,286 | $ | 879,886 | $ | 1,079,557 | $ | 1,056,467 | ||||||||||
(Increase) decrease in unearned premiums | (45,168 | ) | (483,456 | ) | 301,515 | 214,762 | 50,978 | |||||||||||||
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Net premiums earned | 1,090,878 | 989,830 | 1,181,401 | 1,294,319 | 1,107,445 | |||||||||||||||
Net investment income | 153,506 | 146,896 | 155,540 | 163,647 | 158,328 | |||||||||||||||
Net realized and unrealized investment gains | 38,132 | 192,735 | 74,553 | 26,139 | 78,199 | |||||||||||||||
Other income | 2,654 | 2,746 | 3,072 | 1,434 | 1,596 | |||||||||||||||
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Total revenues | 1,285,170 | 1,332,207 | 1,414,566 | 1,485,539 | 1,345,568 | |||||||||||||||
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Expenses | ||||||||||||||||||||
Losses and loss expenses and life policy benefits | 706,137 | 576,486 | 1,069,204 | 881,626 | 814,523 | |||||||||||||||
Acquisition costs | 232,723 | 211,608 | 238,772 | 262,489 | 229,251 | |||||||||||||||
Other operating expenses | 106,184 | 98,174 | 113,033 | 103,822 | 113,694 | |||||||||||||||
Interest expense | 12,223 | 12,220 | 12,219 | 12,216 | 12,214 | |||||||||||||||
Amortization of intangible assets | 8,893 | 8,893 | 8,893 | 9,520 | 9,165 | |||||||||||||||
Net foreign exchange (gains) losses | (7,770 | ) | 2,589 | (14,655 | ) | (10,587 | ) | (8,737 | ) | |||||||||||
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Total expenses | 1,058,390 | 909,970 | 1,427,466 | 1,259,086 | 1,170,110 | |||||||||||||||
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Income (loss) before taxes and interest in (losses) earnings of equity investments | 226,780 | 422,237 | (12,900 | ) | 226,453 | 175,458 | ||||||||||||||
Income tax expense | 50,136 | 67,174 | 3,341 | 41,803 | 50,085 | |||||||||||||||
Interest in (losses) earnings of equity investments | (498 | ) | 5,078 | (1,402 | ) | (4,527 | ) | (1,188 | ) | |||||||||||
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Net income (loss) | $ | 176,146 | $ | 360,141 | $ | (17,643 | ) | $ | 180,123 | $ | 124,185 | |||||||||
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Preferred dividends | $ | 15,405 | $ | 15,405 | $ | 15,405 | $ | 14,352 | $ | 8,631 | ||||||||||
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Operating earnings (loss) available to common shareholders | $ | 142,018 | $ | 181,695 | $ | (137,688 | ) | $ | 164,498 | $ | 67,153 | |||||||||
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Comprehensive income (loss), net of tax | $ | 158,044 | $ | 376,237 | $ | (22,420 | ) | $ | 126,271 | $ | 128,568 | |||||||||
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Per Share Data: | ||||||||||||||||||||
Earnings (loss) per common share: | ||||||||||||||||||||
Basic operating earnings (loss) | $ | 2.22 | $ | 2.78 | $ | (2.06 | ) | $ | 2.43 | $ | 0.99 | |||||||||
Net realized and unrealized investment gains, net of tax | 0.29 | 2.43 | 0.85 | 0.09 | 0.61 | |||||||||||||||
Net foreign exchange gains (losses), net of tax | 0.02 | (0.02 | ) | 0.75 | — | 0.13 | ||||||||||||||
Interest in (losses) earnings of equity investments, net of tax | (0.01 | ) | 0.08 | (0.03 | ) | (0.07 | ) | (0.02 | ) | |||||||||||
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Basic net income (loss) | $ | 2.52 | $ | 5.27 | $ | (0.49 | ) | $ | 2.45 | $ | 1.71 | |||||||||
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Weighted average number of common shares outstanding | 63,816.0 | 65,404.2 | 66,877.1 | 67,743.3 | 67,628.1 | |||||||||||||||
Diluted operating earnings (loss) | $ | 2.20 | $ | 2.76 | $ | (2.06 | ) | $ | 2.41 | $ | 0.98 | |||||||||
Net realized and unrealized investment gains, net of tax | 0.29 | 2.42 | 0.85 | 0.09 | 0.60 | |||||||||||||||
Net foreign exchange gains (losses), net of tax | 0.02 | (0.02 | ) | 0.75 | — | 0.13 | ||||||||||||||
Interest in (losses) earnings of equity investments, net of tax | (0.01 | ) | 0.08 | (0.03 | ) | (0.07 | ) | (0.02 | ) | |||||||||||
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Diluted net income (loss) | $ | 2.50 | $ | 5.24 | $ | (0.49 | ) | $ | 2.43 | $ | 1.69 | |||||||||
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Weighted average number of common shares and common share equivalents outstanding | 64,423.0 | 65,842.8 | 66,877.1 | 68,182.0 | 68,442.3 | |||||||||||||||
Dividends declared per common share | $ | 0.62 | $ | 0.62 | $ | 0.60 | $ | 0.60 | $ | 0.60 |
1
PartnerRe Ltd.
Consolidated Income Statements
(Expressed in thousands of U.S. dollars or shares, except per share data)
(Unaudited)
For the six months ended | For the year ended | |||||||||||||||||
June 30, 2012 | June 30, 2011 | December 31, 2011 | December 31, 2010 | |||||||||||||||
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Revenues | ||||||||||||||||||
Gross premiums written | $ | 2,730,726 | $ | 2,639,766 | $ | 4,633,054 | $ | 4,885,266 | ||||||||||
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Net premiums written | $ | 2,609,331 | $ | 2,526,887 | $ | 4,486,329 | $ | 4,705,116 | ||||||||||
(Increase) decrease in unearned premiums | (528,623 | ) | (354,853 | ) | 161,425 | 71,355 | ||||||||||||
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Net premiums earned | 2,080,708 | 2,172,034 | 4,647,754 | 4,776,471 | ||||||||||||||
Net investment income | 300,402 | 309,962 | 629,148 | 672,782 | ||||||||||||||
Net realized and unrealized investment gains (losses) | 230,867 | (34,000 | ) | 66,692 | 401,482 | |||||||||||||
Other income | 5,400 | 3,408 | 7,915 | 10,470 | ||||||||||||||
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Total revenues | 2,617,377 | 2,451,404 | 5,351,509 | 5,861,205 | ||||||||||||||
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Expenses | ||||||||||||||||||
Losses and loss expenses and life policy benefits | 1,282,623 | 2,421,740 | 4,372,570 | 3,283,618 | ||||||||||||||
Acquisition costs | 444,330 | 437,100 | 938,361 | 972,537 | ||||||||||||||
Other operating expenses | 204,358 | 217,991 | 434,846 | 539,751 | ||||||||||||||
Interest expense | 24,443 | 24,514 | 48,949 | 44,413 | ||||||||||||||
Amortization of intangible assets | 17,786 | 17,992 | 36,405 | 31,461 | ||||||||||||||
Net foreign exchange (gains) losses | (5,181 | ) | (9,433 | ) | (34,675 | ) | 20,686 | |||||||||||
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Total expenses | 1,968,359 | 3,109,904 | 5,796,456 | 4,892,466 | ||||||||||||||
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Income (loss) before taxes and interest in earnings (losses) of equity investments | 649,018 | (658,500 | ) | (444,947 | ) | 968,739 | ||||||||||||
Income tax expense | 117,310 | 23,828 | 68,972 | 128,784 | ||||||||||||||
Interest in earnings (losses) of equity investments | 4,579 | (443 | ) | (6,372 | ) | 12,597 | ||||||||||||
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Net income (loss) | $ | 536,287 | $ | (682,771 | ) | $ | (520,291 | ) | $ | 852,552 | ||||||||
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Preferred dividends | $ | 30,811 | $ | 17,263 | $ | 47,020 | $ | 34,525 | ||||||||||
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Operating earnings (loss) available to common shareholders | $ | 323,713 | $ | (668,419 | ) | $ | (641,609 | ) | $ | 491,807 | ||||||||
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Comprehensive income (loss), net of tax | $ | 534,281 | $ | (640,842 | ) | $ | (536,991 | ) | $ | 771,681 | ||||||||
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Per Share Data: | ||||||||||||||||||
Earnings (loss) per common share: | ||||||||||||||||||
Basic operating earnings (loss) | $ | 5.01 | $ | (9.86 | ) | $ | (9.50 | ) | $ | 6.40 | ||||||||
Net realized and unrealized investment gains (losses), net of tax | 2.75 | (0.70 | ) | 0.23 | 3.92 | |||||||||||||
Net foreign exchange (losses) gains, net of tax | (0.01 | ) | 0.24 | 0.98 | 0.17 | |||||||||||||
Interest in earnings (losses) of equity investments, net of tax | 0.07 | — | (0.11 | ) | 0.16 | |||||||||||||
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Basic net income (loss) | $ | 7.82 | $ | (10.32 | ) | $ | (8.40 | ) | $ | 10.65 | ||||||||
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Weighted average number of common shares outstanding | 64,610.1 | 67,811.4 | 67,558.7 | 76,839.5 | ||||||||||||||
Diluted operating earnings (loss) | $ | 4.97 | $ | (9.86 | ) | $ | (9.50 | ) | $ | 6.29 | ||||||||
Net realized and unrealized investment gains (losses), net of tax | 2.73 | (0.70 | ) | 0.23 | 3.86 | |||||||||||||
Net foreign exchange (losses) gains, net of tax | (0.01 | ) | 0.24 | 0.98 | 0.16 | |||||||||||||
Interest in earnings (losses) of equity investments, net of tax | 0.07 | — | (0.11 | ) | 0.15 | |||||||||||||
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Diluted net income (loss) | $ | 7.76 | $ | (10.32 | ) | $ | (8.40 | ) | $ | 10.46 | ||||||||
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Weighted average number of common shares and common share equivalents outstanding | 65,132.9 | 67,811.4 | 67,558.7 | 78,234.3 | ||||||||||||||
Dividends declared per common share | $ | 1.24 | $ | 1.15 | $ | 2.35 | $ | 2.05 |
2
PartnerRe Ltd.
Condensed Consolidated Balance Sheets
(Expressed in thousands of U.S. dollars or shares, except per share data)
(Unaudited)
June 30, 2012 | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | December 31, 2010 | |||||||||||||||||||||||||||||||||||||||||||||
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Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total investments | $ | 15,031,945 | $ | 15,754,854 | $ | 15,287,245 | $ | 15,789,856 | $ | 15,955,923 | $ | 14,297,867 | ||||||||||||||||||||||||||||||||||||||
Funds held - directly managed | 1,233,008 | 1,264,383 | 1,268,010 | 1,322,761 | 1,379,513 | 1,772,118 | ||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 1,512,418 | 1,210,229 | 1,342,257 | 1,073,432 | 1,606,842 | 2,111,084 | ||||||||||||||||||||||||||||||||||||||||||||
Accrued investment income | 160,392 | 181,898 | 189,074 | 198,503 | 181,806 | 201,928 | ||||||||||||||||||||||||||||||||||||||||||||
Reinsurance balances receivable | 2,358,432 | 2,571,038 | 2,059,976 | 2,313,538 | 2,517,586 | 2,076,884 | ||||||||||||||||||||||||||||||||||||||||||||
Reinsurance recoverable on paid and unpaid losses | 434,083 | 432,059 | 397,788 | 447,015 | 489,415 | 382,878 | ||||||||||||||||||||||||||||||||||||||||||||
Funds held by reinsured companies | 783,311 | 799,988 | 796,290 | 814,950 | 846,466 | 937,032 | ||||||||||||||||||||||||||||||||||||||||||||
Deferred acquisition costs | 620,277 | 636,537 | 547,202 | 602,275 | 661,564 | 595,557 | ||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 455,533 | 455,533 | 455,533 | 455,533 | 455,533 | 455,533 | ||||||||||||||||||||||||||||||||||||||||||||
Intangible assets | 116,081 | 124,974 | 133,867 | 142,760 | 154,194 | 178,715 | ||||||||||||||||||||||||||||||||||||||||||||
Other assets | 366,483 | 364,163 | 378,131 | 458,490 | 351,080 | 354,775 | ||||||||||||||||||||||||||||||||||||||||||||
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Total assets | $ | 23,071,963 | $ | 23,795,656 | $ | 22,855,373 | $ | 23,619,113 | $ | 24,599,922 | $ | 23,364,371 | ||||||||||||||||||||||||||||||||||||||
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Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Unpaid losses and loss expenses | $ | 10,661,012 | �� | $ | 11,143,354 | $ | 11,273,091 | $ | 11,352,599 | $ | 12,016,271 | $ | 10,666,604 | |||||||||||||||||||||||||||||||||||||
Policy benefits for life and annuity contracts | 1,635,547 | 1,707,982 | 1,645,662 | 1,678,201 | 1,726,180 | 1,750,410 | ||||||||||||||||||||||||||||||||||||||||||||
Unearned premiums | 2,008,384 | 2,017,177 | 1,448,841 | 1,787,351 | 2,067,996 | 1,599,139 | ||||||||||||||||||||||||||||||||||||||||||||
Other reinsurance balances payable | 496,020 | 522,701 | 443,873 | 493,926 | 554,386 | 491,194 | ||||||||||||||||||||||||||||||||||||||||||||
Debt obligations | 820,989 | 820,989 | 820,989 | 820,989 | 820,989 | 820,989 | ||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 752,418 | 796,582 | 755,375 | 778,364 | 782,056 | 829,116 | ||||||||||||||||||||||||||||||||||||||||||||
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Total liabilities | 16,374,370 | 17,008,785 | 16,387,831 | 16,911,430 | 17,967,878 | 16,157,452 | ||||||||||||||||||||||||||||||||||||||||||||
Total shareholders’ equity | 6,697,593 | 6,786,871 | 6,467,542 | 6,707,683 | 6,632,044 | 7,206,919 | ||||||||||||||||||||||||||||||||||||||||||||
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Total liabilities and shareholders’ equity | $ | 23,071,963 | $ | 23,795,656 | $ | 22,855,373 | $ | 23,619,113 | $ | 24,599,922 | $ | 23,364,371 | ||||||||||||||||||||||||||||||||||||||
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Shareholders’ Equity Per Common Share (excluding preferred shares) | $ | 92.78 | $ | 90.23 | $ | 85.33 | $ | 85.82 | $ | 84.71 | $ | 95.55 | ||||||||||||||||||||||||||||||||||||||
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Diluted Book Value Per Common Share and Common Share Equivalents Outstanding (assuming exercise of all share-based awards) | $ | 91.88 | $ | 89.63 | $ | 84.82 | $ | 85.26 | $ | 83.71 | $ | 93.77 | ||||||||||||||||||||||||||||||||||||||
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Number of Common Shares and Common Share Equivalents Outstanding | 63,164.5 | 65,751.6 | 65,715.7 | 68,188.1 | 68,552.0 | 71,312.3 | ||||||||||||||||||||||||||||||||||||||||||||
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Capital Structure: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Senior notes(1) | $ | 750,000 | 10 | % | $ | 750,000 | 10 | % | $ | 750,000 | 10 | % | $ | 750,000 | 10 | % | $ | 750,000 | 10 | % | $ | 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 | 893,750 | 12 | 893,750 | 12 | 893,750 | 12 | 893,750 | 12 | 893,750 | 12 | 520,000 | 7 | ||||||||||||||||||||||||||||||||||||||
Common shareholders’ equity | 5,803,843 | 77 | 5,893,121 | 77 | 5,573,792 | 77 | 5,813,933 | 77 | 5,738,294 | 77 | 6,686,919 | 83 | ||||||||||||||||||||||||||||||||||||||
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Total Capital | $ | 7,510,977 | 100 | % | $ | 7,600,255 | 100 | % | $ | 7,280,926 | 100 | % | $ | 7,521,067 | 100 | % | $ | 7,445,428 | 100 | % | $ | 8,020,303 | 100 | % | ||||||||||||||||||||||||||
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(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 BalanceSheets. |
3
PartnerRe Ltd.
Condensed Consolidated Statements of Cash Flows
(Expressed in millions of U.S. dollars)
(Unaudited)
For the three months ended | ||||||||||||||||||||
June 30, 2012 | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | ||||||||||||||||
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Net cash provided by (used in) operating activities: | ||||||||||||||||||||
Underwriting operations(1) | $ | (75 | ) | $ | (68 | ) | $ | (140 | ) | $ | (314 | ) | $ | 84 | ||||||
Investment income | 204 | 188 | 189 | 167 | 186 | |||||||||||||||
Taxes and foreign exchange | (26 | ) | (41 | ) | (59 | ) | (12 | ) | (14 | ) | ||||||||||
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Net cash provided by (used in) operating activities | $ | 103 | $ | 79 | $ | (10 | ) | $ | (159 | ) | $ | 256 | ||||||||
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Net cash provided by (used in) operating activities | $ | 103 | $ | 79 | $ | (10 | ) | $ | (159 | ) | $ | 256 | ||||||||
Net cash provided by (used in) investing activities | 492 | (168 | ) | 519 | (292 | ) | (987 | ) | ||||||||||||
Net cash (used in) provided by financing activities | (266 | ) | (50 | ) | (223 | ) | (55 | ) | 322 | |||||||||||
Effect of foreign exchange rate changes on cash | (27 | ) | 7 | (17 | ) | (28 | ) | 6 | ||||||||||||
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Increase (decrease) in cash and cash equivalents | 302 | (132 | ) | 269 | (534 | ) | (403 | ) | ||||||||||||
Cash and cash equivalents - beginning of period | 1,210 | 1,342 | 1,073 | 1,607 | 2,010 | |||||||||||||||
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Cash and cash equivalents - end of period | $ | 1,512 | $ | 1,210 | $ | 1,342 | $ | 1,073 | $ | 1,607 | ||||||||||
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(1) | For the three months ended June 30, 2011 and the three months ended September 30, 2011, net cash provided by underwriting operations includes approximately $5 million and $58 million, respectively, of cash related to the release of assets from the Funds Held - Directly Managed Portfolio. |
4
PartnerRe Ltd.
Condensed Consolidated Statements of Cash Flows
(Expressed in millions of U.S. dollars)
(Unaudited)
For the six months ended | For the year ended | |||||||||||||||||
June 30, 2012 | June 30, 2011 | December 31, 2011 | December 31, 2010 | |||||||||||||||
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Net cash provided by operating activities: | ||||||||||||||||||
Underwriting operations(1) | $ | (142 | ) | $ | 424 | $ | (29 | ) | $ | 650 | ||||||||
Investment income | 392 | 374 | 731 | 762 | ||||||||||||||
Taxes and foreign exchange | (67 | ) | (56 | ) | (128 | ) | (185 | ) | ||||||||||
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Net cash provided by operating activities | $ | 183 | $ | 742 | $ | 574 | $ | 1,227 | ||||||||||
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Net cash provided by operating activities | $ | 183 | $ | 742 | $ | 574 | $ | 1,227 | ||||||||||
Net cash provided by (used in) investing activities | 324 | (1,307 | ) | (1,080 | ) | 1,102 | ||||||||||||
Net cash (used in) provided by financing activities | (317 | ) | 36 | (242 | ) | (922 | ) | |||||||||||
Effect of foreign exchange rate changes on cash | (20 | ) | 25 | (21 | ) | (34 | ) | |||||||||||
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Increase (decrease) in cash and cash equivalents | 170 | (504 | ) | (769 | ) | 1,373 | ||||||||||||
Cash and cash equivalents - beginning of period | 1,342 | 2,111 | 2,111 | 738 | ||||||||||||||
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Cash and cash equivalents - end of period | $ | 1,512 | $ | 1,607 | $ | 1,342 | $ | 2,111 | ||||||||||
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(1) | For the six months ended June 30, 2011 and for the year ended December 31, 2011, net cash provided by underwriting operations includes approximately $ 300 and $358 million, respectively, of cash related to the release of assets from the Funds Held - Directly Managed Portfolio. |
5
PartnerRe Ltd.
Consolidated Statements of Comprehensive Income (Loss)
(Expressed in thousands of U.S. dollars)
(Unaudited)
For the three months ended | ||||||||||||||||||||
June 30, 2012 | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | ||||||||||||||||
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Net income (loss) | $ | 176,146 | $ | 360,141 | $ | (17,643 | ) | $ | 180,123 | $ | 124,185 | |||||||||
Change in currency translation adjustment | (19,157 | ) | 17,207 | (960 | ) | (54,958 | ) | 6,303 | ||||||||||||
Change in net unrealized gains or losses on investments, net of tax | (239 | ) | (242 | ) | (204 | ) | (244 | ) | (249 | ) | ||||||||||
Change in unfunded pension obligation, net of tax | 1,294 | (869 | ) | (3,613 | ) | 1,350 | (1,671 | ) | ||||||||||||
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Comprehensive income (loss) | $ | 158,044 | $ | 376,237 | $ | (22,420 | ) | $ | 126,271 | $ | 128,568 | |||||||||
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For the six months ended | For the year ended | |||||||||||||||||
June 30, 2012 | June 30, 2011 | December 31, 2011 | December 31, 2010 | |||||||||||||||
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| |||||||||||||||
Net income (loss) | $ | 536,287 | $ | (682,771 | ) | $ | (520,291 | ) | $ | 852,552 | ||||||||
Change in currency translation adjustment | (1,950 | ) | 44,084 | (11,834 | ) | (66,742 | ) | |||||||||||
Change in net unrealized gains or losses on investments, net of tax | (481 | ) | (501 | ) | (949 | ) | (4,908 | ) | ||||||||||
Change in unfunded pension obligation, net of tax | 425 | (1,654 | ) | (3,917 | ) | (9,221 | ) | |||||||||||
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Comprehensive income (loss) | $ | 534,281 | $ | (640,842 | ) | $ | (536,991 | ) | $ | 771,681 | ||||||||
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6
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
For the three months ended June 30, 2012 | ||||||||||||||||||||||||||||||||
North America | Global (Non-U.S.) P&C | Global (Non-U.S.) Specialty | Catastrophe | Total Non- life segment | Life segment | Corporate and Other | Total | |||||||||||||||||||||||||
Gross premiums written | $ | 271 | $ | 130 | $ | 400 | $ | 159 | $ | 960 | $ | 200 | $ | 3 | $ | 1,163 | ||||||||||||||||
Net premiums written | $ | 270 | $ | 128 | $ | 391 | $ | 145 | $ | 934 | $ | 199 | $ | 3 | $ | 1,136 | ||||||||||||||||
Decrease (increase) in unearned premiums | 20 | 36 | (28 | ) | (72 | ) | (44 | ) | 1 | (2 | ) | (45 | ) | |||||||||||||||||||
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Net premiums earned | $ | 290 | $ | 164 | $ | 363 | $ | 73 | $ | 890 | $ | 200 | $ | 1 | $ | 1,091 | ||||||||||||||||
Losses and loss expenses and life policy benefits | (185 | ) | (119 | ) | (213 | ) | (16 | ) | (533 | ) | (173 | ) | — | (706 | ) | |||||||||||||||||
Acquisition costs | (69 | ) | (39 | ) | (93 | ) | (6 | ) | (207 | ) | (26 | ) | — | (233 | ) | |||||||||||||||||
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Technical result | $ | 36 | $ | 6 | $ | 57 | $ | 51 | $ | 150 | $ | 1 | $ | 1 | $ | 152 | ||||||||||||||||
Other income | — | 1 | 2 | 3 | ||||||||||||||||||||||||||||
Other operating expenses | (66 | ) | (13 | ) | (27 | ) | (106 | ) | ||||||||||||||||||||||||
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Underwriting result | $ | 84 | $ | (11 | ) | n/a | $ | 49 | ||||||||||||||||||||||||
Net investment income | 17 | 136 | 153 | |||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||
Allocated underwriting result(1) | $ | 6 | n/a | n/a | ||||||||||||||||||||||||||||
Net realized and unrealized investment gains | 38 | 38 | ||||||||||||||||||||||||||||||
Interest expense | (12 | ) | (12 | ) | ||||||||||||||||||||||||||||
Amortization of intangible assets | (9 | ) | (9 | ) | ||||||||||||||||||||||||||||
Net foreign exchange gains | 8 | 8 | ||||||||||||||||||||||||||||||
Income tax expense | (50 | ) | (50 | ) | ||||||||||||||||||||||||||||
Interest in losses of equity investments | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||
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Net income | n/a | $ | 176 | |||||||||||||||||||||||||||||
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Loss ratio(2) | 63.7 | % | 72.3 | % | 58.8 | % | 22.5 | % | 59.9 | % | ||||||||||||||||||||||
Acquisition ratio(3) | 23.8 | 23.9 | 25.5 | 8.3 | 23.2 | |||||||||||||||||||||||||||
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Technical ratio(4) | 87.5 | % | 96.2 | % | 84.3 | % | 30.8 | % | 83.1 | % | ||||||||||||||||||||||
Other operating expense ratio(5) | 7.5 | |||||||||||||||||||||||||||||||
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Combined ratio(6) | 90.6 | % | ||||||||||||||||||||||||||||||
|
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(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 operating 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 operating expense ratio is obtained by dividing other operating expenses by net premiums earned. |
(6) | Combined ratio is defined as the sum of the technical ratio and the other operating expense ratio. |
7
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
For the three months ended June 30, 2011 | ||||||||||||||||||||||||||||||||
North America | Global (Non-U.S.) P&C | Global (Non-U.S.) Specialty | Catastrophe | Total Non- life segment | Life segment | Corporate and Other | Total | |||||||||||||||||||||||||
Gross premiums written | $ | 242 | $ | 122 | $ | 350 | $ | 169 | $ | 883 | $ | 195 | $ | 4 | $ | 1,082 | ||||||||||||||||
Net premiums written | $ | 242 | $ | 121 | $ | 333 | $ | 161 | $ | 857 | $ | 195 | $ | 4 | $ | 1,056 | ||||||||||||||||
Decrease (increase) in unearned premiums | 19 | 72 | 8 | (51 | ) | 48 | 6 | (3 | ) | 51 | ||||||||||||||||||||||
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Net premiums earned | $ | 261 | $ | 193 | $ | 341 | $ | 110 | $ | 905 | $ | 201 | $ | 1 | $ | 1,107 | ||||||||||||||||
Losses and loss expenses and life policy benefits | (190 | ) | (127 | ) | (206 | ) | (123 | ) | (646 | ) | (166 | ) | (2 | ) | (814 | ) | ||||||||||||||||
Acquisition costs | (63 | ) | (53 | ) | (78 | ) | (9 | ) | (203 | ) | (26 | ) | — | (229 | ) | |||||||||||||||||
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Technical result | $ | 8 | $ | 13 | $ | 57 | $ | (22 | ) | $ | 56 | $ | 9 | $ | (1 | ) | $ | 64 | ||||||||||||||
Other income | — | — | 1 | 1 | ||||||||||||||||||||||||||||
Other operating expenses | (71 | ) | (13 | ) | (30 | ) | (114 | ) | ||||||||||||||||||||||||
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Underwriting result | $ | (15 | ) | $ | (4 | ) | n/a | $ | (49 | ) | ||||||||||||||||||||||
Net investment income | 16 | 142 | 158 | |||||||||||||||||||||||||||||
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Allocated underwriting result(1) | $ | 12 | n/a | n/a | ||||||||||||||||||||||||||||
Net realized and unrealized investment gains | 78 | 78 | ||||||||||||||||||||||||||||||
Interest expense | (12 | ) | (12 | ) | ||||||||||||||||||||||||||||
Amortization of intangible assets | (9 | ) | (9 | ) | ||||||||||||||||||||||||||||
Net foreign exchange gains | 9 | 9 | ||||||||||||||||||||||||||||||
Income tax expense | (50 | ) | (50 | ) | ||||||||||||||||||||||||||||
Interest in losses of equity investments | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||
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Net income | n/a | $ | 124 | |||||||||||||||||||||||||||||
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Loss ratio(2) | 72.8 | % | 65.9 | % | 60.3 | % | 111.7 | % | 71.4 | % | ||||||||||||||||||||||
Acquisition ratio(3) | 24.1 | 27.6 | 22.9 | 8.1 | 22.4 | |||||||||||||||||||||||||||
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Technical ratio(4) | 96.9 | % | 93.5 | % | 83.2 | % | 119.8 | % | 93.8 | % | ||||||||||||||||||||||
Other operating expense ratio(5) | 7.9 | |||||||||||||||||||||||||||||||
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Combined ratio(6) | 101.7 | % | ||||||||||||||||||||||||||||||
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8
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
For the six months ended June 30, 2012 | ||||||||||||||||||||||||||||||||
North America | Global (Non-U.S.) P&C | Global (Non-U.S.) Specialty | Catastrophe | Total Non- life segment | Life segment | Corporate and Other | Total | |||||||||||||||||||||||||
Gross premiums written | $ | 613 | $ | 477 | $ | 817 | $ | 401 | $ | 2,308 | $ | 417 | $ | 6 | $ | 2,731 | ||||||||||||||||
Net premiums written | $ | 611 | $ | 474 | $ | 744 | $ | 360 | $ | 2,189 | $ | 414 | $ | 6 | $ | 2,609 | ||||||||||||||||
Increase in unearned premiums | (84 | ) | (150 | ) | (73 | ) | (197 | ) | (504 | ) | (20 | ) | (4 | ) | (528 | ) | ||||||||||||||||
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Net premiums earned | $ | 527 | $ | 324 | $ | 671 | $ | 163 | $ | 1,685 | $ | 394 | $ | 2 | $ | 2,081 | ||||||||||||||||
Losses and loss expenses and life policy benefits | (317 | ) | (217 | ) | (408 | ) | (19 | ) | (961 | ) | (322 | ) | — | (1,283 | ) | |||||||||||||||||
Acquisition costs | (134 | ) | (78 | ) | (162 | ) | (15 | ) | (389 | ) | (55 | ) | — | (444 | ) | |||||||||||||||||
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Technical result | $ | 76 | $ | 29 | $ | 101 | $ | 129 | $ | 335 | $ | 17 | $ | 2 | $ | 354 | ||||||||||||||||
Other income | 1 | 2 | 2 | 5 | ||||||||||||||||||||||||||||
Other operating expenses | (129 | ) | (26 | ) | (49 | ) | (204 | ) | ||||||||||||||||||||||||
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Underwriting result | $ | 207 | $ | (7 | ) | n/a | $ | 155 | ||||||||||||||||||||||||
Net investment income | 33 | 267 | 300 | |||||||||||||||||||||||||||||
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Allocated underwriting result(1) | $ | 26 | n/a | n/a | ||||||||||||||||||||||||||||
Net realized and unrealized investment gains | 231 | 231 | ||||||||||||||||||||||||||||||
Interest expense | (24 | ) | (24 | ) | ||||||||||||||||||||||||||||
Amortization of intangible assets | (18 | ) | (18 | ) | ||||||||||||||||||||||||||||
Net foreign exchange gains | 5 | 5 | ||||||||||||||||||||||||||||||
Income tax expense | (117 | ) | (117 | ) | ||||||||||||||||||||||||||||
Interest in earnings of equity investments | 4 | 4 | ||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||
Net income | n/a | $ | 536 | |||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||
Loss ratio(2) | 60.1 | % | 67.0 | % | 60.8 | % | 11.3 | % | 57.0 | % | ||||||||||||||||||||||
Acquisition ratio(3) | 25.5 | 23.9 | 24.2 | 9.5 | 23.1 | |||||||||||||||||||||||||||
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| |||||||||||||||||||||||
Technical ratio(4) | 85.6 | % | 90.9 | % | 85.0 | % | 20.8 | % | 80.1 | % | ||||||||||||||||||||||
Other operating expense ratio(5) | 7.7 | |||||||||||||||||||||||||||||||
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Combined ratio(6) | 87.8 | % | ||||||||||||||||||||||||||||||
|
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9
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
For the six months ended June 30, 2011 | ||||||||||||||||||||||||||||||||
North America | Global (Non-U.S.) P&C | Global (Non-U.S.) Specialty | Catastrophe | Total Non- life segment | Life segment | Corporate and Other | Total | |||||||||||||||||||||||||
Gross premiums written | $ | 581 | $ | 440 | $ | 724 | $ | 486 | $ | 2,231 | $ | 403 | $ | 6 | $ | 2,640 | ||||||||||||||||
Net premiums written | $ | 581 | $ | 437 | $ | 648 | $ | 453 | $ | 2,119 | $ | 402 | $ | 6 | $ | 2,527 | ||||||||||||||||
(Increase) decrease in unearned premiums | (60 | ) | (63 | ) | 10 | (220 | ) | (333 | ) | (17 | ) | (5 | ) | (355 | ) | |||||||||||||||||
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| |||||||||||||||||
Net premiums earned | $ | 521 | $ | 374 | $ | 658 | $ | 233 | $ | 1,786 | $ | 385 | $ | 1 | $ | 2,172 | ||||||||||||||||
Losses and loss expenses and life policy benefits | (365 | ) | (277 | ) | (427 | ) | (1,040 | ) | (2,109 | ) | (311 | ) | (2 | ) | (2,422 | ) | ||||||||||||||||
Acquisition costs | (129 | ) | (93 | ) | (158 | ) | (1 | ) | (381 | ) | (56 | ) | — | (437 | ) | |||||||||||||||||
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|
| |||||||||||||||||
Technical result | $ | 27 | $ | 4 | $ | 73 | $ | (808 | ) | $ | (704 | ) | $ | 18 | $ | (1 | ) | $ | (687 | ) | ||||||||||||
Other income | 2 | — | 1 | 3 | ||||||||||||||||||||||||||||
Other operating expenses | (137 | ) | (25 | ) | (56 | ) | (218 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
Underwriting result | $ | (839 | ) | $ | (7 | ) | n/a | $ | (902 | ) | ||||||||||||||||||||||
Net investment income | 31 | 279 | 310 | |||||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||||
Allocated underwriting result(1) | $ | 24 | n/a | n/a | ||||||||||||||||||||||||||||
Net realized and unrealized investment losses | (34 | ) | (34 | ) | ||||||||||||||||||||||||||||
Interest expense | (24 | ) | (24 | ) | ||||||||||||||||||||||||||||
Amortization of intangible assets | (18 | ) | (18 | ) | ||||||||||||||||||||||||||||
Net foreign exchange gains | 9 | 9 | ||||||||||||||||||||||||||||||
Income tax expense | (24 | ) | (24 | ) | ||||||||||||||||||||||||||||
Interest in losses of equity investments | — | — | ||||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||
Net loss | n/a | $ | (683 | ) | ||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||
Loss ratio(2) | 70.0 | % | 74.0 | % | 64.9 | % | 446.3 | % | 118.0 | % | ||||||||||||||||||||||
Acquisition ratio(3) | 24.8 | 25.0 | 24.0 | 0.3 | 21.4 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
Technical ratio(4) | 94.8 | % | 99.0 | % | 88.9 | % | 446.6 | % | 139.4 | % | ||||||||||||||||||||||
Other operating expense ratio(5) | 7.7 | |||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Combined ratio(6) | 147.1 | % | ||||||||||||||||||||||||||||||
|
|
10
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Non-life segment
For the three months ended | ||||||||||||||||||||
June 30, 2012 (A) | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | ||||||||||||||||
|
| |||||||||||||||||||
Net premiums written | $ | 934 | $ | 1,255 | $ | 690 | $ | 880 | $ | 857 | ||||||||||
Net premiums earned | $ | 890 | $ | 795 | $ | 975 | $ | 1,083 | $ | 905 | ||||||||||
Losses and loss expenses | (533 | ) | (427 | ) | (898 | ) | (710 | ) | (646 | ) | ||||||||||
Acquisition costs | (207 | ) | (183 | ) | (211 | ) | (229 | ) | (203 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Technical result | $ | 150 | $ | 185 | $ | (134 | ) | $ | 144 | $ | 56 | |||||||||
Other income | — | 1 | 2 | 1 | — | |||||||||||||||
Other operating expenses | (66 | ) | (63 | ) | (78 | ) | (69 | ) | (71 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Underwriting result | $ | 84 | $ | 123 | $ | (210 | ) | $ | 76 | $ | (15 | ) | ||||||||
Loss ratio(2) | 59.9 | % | 53.8 | % | 92.1 | % | 65.6 | % | 71.4 | % | ||||||||||
Acquisition ratio(3) | 23.2 | 23.0 | 21.6 | 21.1 | 22.4 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Technical ratio(4) | 83.1 | % | 76.8 | % | 113.7 | % | 86.7 | % | 93.8 | % | ||||||||||
Other operating expense ratio(5) | 7.5 | 7.9 | 8.0 | 6.4 | 7.9 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Combined ratio(6) | 90.6 | % | 84.7 | % | 121.7 | % | 93.1 | % | 101.7 | % |
(A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended June 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($15.6) million and ($21.9) million, respectively, compared to the three months ended June 30, 2011. |
11
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Non-life segment
For the six months ended | For the year ended | |||||||||||||||||
June 30, 2012 (A) | June 30, 2011 | December 31, 2011 | December 31, 2010 | |||||||||||||||
|
|
|
| |||||||||||||||
Net premiums written | $ | 2,189 | $ | 2,119 | $ | 3,688 | $ | 3,961 | ||||||||||
Net premiums earned | $ | 1,685 | $ | 1,786 | $ | 3,844 | $ | 4,029 | ||||||||||
Losses and loss expenses | (961 | ) | (2,109 | ) | (3,717 | ) | (2,657 | ) | ||||||||||
Acquisition costs | (389 | ) | (381 | ) | (821 | ) | (856 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Technical result | $ | 335 | $ | (704 | ) | $ | (694 | ) | $ | 516 | ||||||||
Other income | 1 | 2 | 4 | 5 | ||||||||||||||
Other operating expenses | (129 | ) | (137 | ) | (283 | ) | (317 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Underwriting result | $ | 207 | $ | (839 | ) | $ | (973 | ) | $ | 204 | ||||||||
Loss ratio(2) | 57.0 | % | 118.0 | % | 96.7 | % | 65.9 | % | ||||||||||
Acquisition ratio(3) | 23.1 | 21.4 | 21.3 | 21.3 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Technical ratio(4) | 80.1 | % | 139.4 | % | 118.0 | % | 87.2 | % | ||||||||||
Other operating expense ratio(5) | 7.7 | 7.7 | 7.4 | 7.8 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Combined ratio(6) | 87.8 | % | 147.1 | % | 125.4 | % | 95.0 | % |
(A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the six months ended June 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($27.6) million and ($27.8) million, respectively, compared to the six months ended June 30, 2011. |
12
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
North America sub-segment
For the three months ended | ||||||||||||||||||||
June 30, 2012 (A) | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | ||||||||||||||||
|
| |||||||||||||||||||
Net premiums written | $ | 270 | $ | 341 | $ | 235 | $ | 287 | $ | 242 | ||||||||||
Net premiums earned | $ | 290 | $ | 238 | $ | 285 | $ | 329 | $ | 261 | ||||||||||
Losses and loss expenses | (185 | ) | (133 | ) | (184 | ) | (192 | ) | (190 | ) | ||||||||||
Acquisition costs | (69 | ) | (66 | ) | (67 | ) | (80 | ) | (63 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Technical result | $ | 36 | $ | 39 | $ | 34 | $ | 57 | $ | 8 | ||||||||||
Loss ratio(2) | 63.7 | % | 55.9 | % | 64.6 | % | 58.4 | % | 72.8 | % | ||||||||||
Acquisition ratio(3) | 23.8 | 27.5 | 23.6 | 24.3 | 24.1 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Technical ratio(4) | 87.5 | % | 83.4 | % | 88.2 | % | 82.7 | % | 96.9 | % | ||||||||||
Distribution of Net Premiums Written by Major Lines of Business: | ||||||||||||||||||||
Casualty | 37 | % | 47 | % | 40 | % | 37 | % | 40 | % | ||||||||||
Agriculture | 31 | 5 | 20 | 25 | 23 | |||||||||||||||
Property | 20 | 22 | 18 | 19 | 19 | |||||||||||||||
Credit/Surety | 5 | 5 | 4 | 5 | 5 | |||||||||||||||
Multiline | 4 | 12 | 6 | 5 | 5 | |||||||||||||||
Motor | 2 | 7 | 9 | 7 | 8 | |||||||||||||||
Other | 1 | 2 | 3 | 2 | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 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 June 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($1.0) million and ($0.9) million, respectively, compared to the three months ended June 30, 2011. |
13
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
North America sub-segment
For the six months ended | For the year ended | |||||||||||||||||
June 30, 2012(A) | June 30, 2011 | December 31, 2011 | December 31, 2010 | |||||||||||||||
|
|
|
| |||||||||||||||
Net premiums written | $ | 611 | $ | 581 | $ | 1,104 | $ | 1,026 | ||||||||||
Net premiums earned | $ | 527 | $ | 521 | $ | 1,135 | $ | 1,038 | ||||||||||
Losses and loss expenses | (317 | ) | (365 | ) | (741 | ) | (577 | ) | ||||||||||
Acquisition costs | (134 | ) | (129 | ) | (276 | ) | (288 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Technical result | $ | 76 | $ | 27 | $ | 118 | $ | 173 | ||||||||||
Loss ratio(2) | 60.1 | % | 70.0 | % | 65.3 | % | 55.6 | % | ||||||||||
Acquisition ratio(3) | 25.5 | 24.8 | 24.3 | 27.8 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Technical ratio(4) | 85.6 | % | 94.8 | % | 89.6 | % | 83.4 | % | ||||||||||
Distribution of Net Premiums Written by Major Lines of Business: | ||||||||||||||||||
Casualty | 43 | % | 41 | % | 40 | % | 42 | % | ||||||||||
Property | 21 | 18 | 18 | 26 | ||||||||||||||
Agriculture | 17 | 18 | 20 | 8 | ||||||||||||||
Multiline | 8 | 8 | 7 | 5 | ||||||||||||||
Credit/Surety | 5 | 5 | 5 | 6 | ||||||||||||||
Motor | 4 | 9 | 8 | 11 | ||||||||||||||
Other | 2 | 1 | 2 | 2 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | 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 six months ended June 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($1.9) million and ($1.5) million, respectively, compared to the six months ended June 30, 2011. |
14
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 | ||||||||||||||||||||
June 30, 2012 (A) | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | ||||||||||||||||
|
| |||||||||||||||||||
Net premiums written | $ | 128 | $ | 346 | $ | 97 | $ | 144 | $ | 121 | ||||||||||
Net premiums earned | $ | 164 | $ | 159 | $ | 192 | $ | 193 | $ | 193 | ||||||||||
Losses and loss expenses | (119 | ) | (98 | ) | (188 | ) | (102 | ) | (127 | ) | ||||||||||
Acquisition costs | (39 | ) | (38 | ) | (45 | ) | (52 | ) | (53 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Technical result | $ | 6 | $ | 23 | $ | (41 | ) | $ | 39 | $ | 13 | |||||||||
Loss ratio(2) | 72.3 | % | 61.6 | % | 97.8 | % | 52.9 | % | 65.9 | % | ||||||||||
Acquisition ratio(3) | 23.9 | 23.9 | 23.6 | 26.9 | 27.6 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Technical ratio(4) | 96.2 | % | 85.5 | % | 121.4 | % | 79.8 | % | 93.5 | % | ||||||||||
Distribution of Net Premiums Written by Major Lines of Business: | ||||||||||||||||||||
Property | 67 | % | 62 | % | 69 | % | 71 | % | 78 | % | ||||||||||
Motor | 23 | 27 | 18 | 21 | 14 | |||||||||||||||
Casualty | 10 | 11 | 13 | 8 | 8 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 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 June 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($5.0) million and ($7.7) million, respectively, compared to the three months ended June 30, 2011. |
15
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Global (Non-U.S.) P&C sub-segment
For the six months ended | For the year ended | |||||||||||||||||
June 30, 2012 (A) | June 30, 2011 | December 31, 2011 | December 31, 2010 | |||||||||||||||
|
|
|
| |||||||||||||||
Net premiums written | $ | 474 | $ | 437 | $ | 678 | $ | 898 | ||||||||||
Net premiums earned | $ | 324 | $ | 374 | $ | 759 | $ | 914 | ||||||||||
Losses and loss expenses | (217 | ) | (277 | ) | (567 | ) | (702 | ) | ||||||||||
Acquisition costs | (78 | ) | (93 | ) | (191 | ) | (227 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Technical result | $ | 29 | $ | 4 | $ | 1 | $ | (15 | ) | |||||||||
Loss ratio(2) | 67.0 | % | 74.0 | % | 74.7 | % | 76.8 | % | ||||||||||
Acquisition ratio(3) | 23.9 | 25.0 | 25.1 | 24.9 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Technical ratio(4) | 90.9 | % | 99.0 | % | 99.8 | % | 101.7 | % | ||||||||||
Distribution of Net Premiums Written by Major Lines of Business: | ||||||||||||||||||
Property | 63 | % | 70 | % | 70 | % | 66 | % | ||||||||||
Motor | 26 | 19 | 20 | 22 | ||||||||||||||
Casualty | 11 | 11 | 10 | 12 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | 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 six months ended June 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($11.1) million and ($10.7) million, respectively, compared to the six months ended June 30, 2011. |
16
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Global (Non-U.S.) Specialty sub-segment
For the three months ended | ||||||||||||||||||||
June 30, 2012 (A) | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | ||||||||||||||||
|
| |||||||||||||||||||
Net premiums written | $ | 391 | $ | 353 | $ | 337 | $ | 360 | $ | 333 | ||||||||||
Net premiums earned | $ | 363 | $ | 308 | $ | 356 | $ | 362 | $ | 341 | ||||||||||
Losses and loss expenses | (213 | ) | (194 | ) | (276 | ) | (247 | ) | (206 | ) | ||||||||||
Acquisition costs | (93 | ) | (70 | ) | (88 | ) | (82 | ) | (78 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Technical result | $ | 57 | $ | 44 | $ | (8 | ) | $ | 33 | $ | 57 | |||||||||
Loss ratio(2) | 58.8 | % | 63.2 | % | 77.5 | % | 68.3 | % | 60.3 | % | ||||||||||
Acquisition ratio(3) | 25.5 | 22.6 | 24.6 | 22.7 | 22.9 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Technical ratio(4) | 84.3 | % | 85.8 | % | 102.1 | % | 91.0 | % | 83.2 | % | ||||||||||
Distribution of Net Premiums Written by Major Lines of Business: | ||||||||||||||||||||
Aviation/Space | 14 | % | 14 | % | 20 | % | 16 | % | 14 | % | ||||||||||
Credit/Surety | 18 | 21 | 19 | 18 | 20 | |||||||||||||||
Energy | 7 | 4 | 8 | 11 | 7 | |||||||||||||||
Engineering | 10 | 11 | 15 | 13 | 12 | |||||||||||||||
Marine | 23 | 20 | 21 | 20 | 21 | |||||||||||||||
Specialty casualty | 9 | 14 | 2 | 4 | 7 | |||||||||||||||
Specialty property | 12 | 9 | 11 | 13 | 12 | |||||||||||||||
Other | 7 | 7 | 4 | 5 | 7 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 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 June 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($9.7) million and ($11.6) million, respectively, compared to the three months ended June 30, 2011. |
17
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Global (Non-U.S.) Specialty sub-segment
For the six months ended | For the year ended | |||||||||||||||||
June 30, 2012 (A) | June 30, 2011 | December 31, 2011 | December 31, 2010 | |||||||||||||||
|
|
|
| |||||||||||||||
Net premiums written | $ | 744 | $ | 648 | $ | 1,344 | $ | 1,391 | ||||||||||
Net premiums earned | $ | 671 | $ | 658 | $ | 1,376 | $ | 1,405 | ||||||||||
Losses and loss expenses | (408 | ) | (427 | ) | (950 | ) | (985 | ) | ||||||||||
Acquisition costs | (162 | ) | (158 | ) | (328 | ) | (292 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Technical result | $ | 101 | $ | 73 | $ | 98 | $ | 128 | ||||||||||
Loss ratio(2) | 60.8 | % | 64.9 | % | 69.1 | % | 70.0 | % | ||||||||||
Acquisition ratio(3) | 24.2 | 24.0 | 23.8 | 20.8 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Technical ratio(4) | 85.0 | % | 88.9 | % | 92.9 | % | 90.8 | % | ||||||||||
Distribution of Net Premiums Written by Major Lines of Business: | ||||||||||||||||||
Aviation/Space | 14 | % | 13 | % | 16 | % | 16 | % | ||||||||||
Credit/Surety | 19 | 22 | 20 | 16 | ||||||||||||||
Energy | 6 | 7 | 8 | 8 | ||||||||||||||
Engineering | 10 | 13 | 14 | 14 | ||||||||||||||
Marine | 22 | 20 | 20 | 20 | ||||||||||||||
Specialty casualty | 11 | 13 | 8 | 11 | ||||||||||||||
Specialty property | 11 | 8 | 10 | 8 | ||||||||||||||
Other | 7 | 4 | 4 | 7 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | 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 six months ended June 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($13.6) million and ($14.5) million, respectively, compared to the six months ended June 30, 2011. |
18
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Catastrophe sub-segment
For the three months ended | ||||||||||||||||||||
June 30, 2012(A) | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | ||||||||||||||||
|
| |||||||||||||||||||
Net premiums written | $ | 145 | $ | 215 | $ | 21 | $ | 89 | $ | 161 | ||||||||||
Net premiums earned | $ | 73 | $ | 90 | $ | 142 | $ | 199 | $ | 110 | ||||||||||
Losses and loss expenses | (16 | ) | (2 | ) | (250 | ) | (169 | ) | (123 | ) | ||||||||||
Acquisition costs | (6 | ) | (9 | ) | (11 | ) | (15 | ) | (9 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Technical result | $ | 51 | $ | 79 | $ | (119 | ) | $ | 15 | $ | (22 | ) | ||||||||
Loss ratio(2) | 22.5 | % | 2.1 | % | 175.9 | % | 85.0 | % | 111.7 | % | ||||||||||
Acquisition ratio(3) | 8.3 | 10.5 | 7.6 | 7.4 | 8.1 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Technical ratio(4) | 30.8 | % | 12.6 | % | 183.5 | % | 92.4 | % | 119.8 | % |
(A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended June 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of $nil million and ($1.7) million, respectively, compared to the three months ended June 30, 2011. |
19
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Catastrophe sub-segment
For the six months ended | For the year ended | |||||||||||||||||
June 30, 2012 (A) | June 30, 2011 | December 31, 2011 | December 31, 2010 | |||||||||||||||
|
|
|
| |||||||||||||||
Net premiums written | $ | 360 | $ | 453 | $ | 562 | $ | 646 | ||||||||||
Net premiums earned | $ | 163 | $ | 233 | $ | 574 | $ | 672 | ||||||||||
Losses and loss expenses | (19 | ) | (1,040 | ) | (1,459 | ) | (393 | ) | ||||||||||
Acquisition costs | (15 | ) | (1 | ) | (26 | ) | (49 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Technical result | $ | 129 | $ | (808 | ) | $ | (911 | ) | $ | 230 | ||||||||
Loss ratio(2) | 11.3 | % | 446.3 | % | 254.2 | % | 58.5 | % | ||||||||||
Acquisition ratio(3) | 9.5 | 0.3 | 4.5 | 7.2 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Technical ratio(4) | 20.8 | % | 446.6 | % | 258.7 | % | 65.7 | % |
(A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the six months ended June 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($1.0) million and ($1.0) million, respectively, compared to the six months ended June 30, 2011. |
20
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Life segment
For the three months ended | ||||||||||||||||||||
June 30, 2012 (A) | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | ||||||||||||||||
|
| |||||||||||||||||||
Net premiums written | $ | 199 | $ | 215 | $ | 190 | $ | 194 | $ | 195 | ||||||||||
Net premiums earned | $ | 200 | $ | 194 | $ | 203 | $ | 203 | $ | 201 | ||||||||||
Life policy benefits | (173 | ) | (149 | ) | (171 | ) | (168 | ) | (166 | ) | ||||||||||
Acquisition costs | (26 | ) | (29 | ) | (28 | ) | (33 | ) | (26 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Technical result | $ | 1 | $ | 16 | $ | 4 | $ | 2 | $ | 9 | ||||||||||
Other income | 1 | — | 1 | — | — | |||||||||||||||
Other operating expenses | (13 | ) | (12 | ) | (15 | ) | (12 | ) | (13 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Underwriting result | $ | (11 | ) | $ | 4 | $ | (10 | ) | $ | (10 | ) | $ | (4 | ) | ||||||
Net investment income | 17 | 17 | 16 | 19 | 16 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Allocated underwriting result(1) | $ | 6 | $ | 21 | $ | 6 | $ | 9 | $ | 12 | ||||||||||
Distribution of Net Premiums Written by Major Lines of Business: | ||||||||||||||||||||
Mortality | 65 | % | 71 | % | 66 | % | 71 | % | 72 | % | ||||||||||
Longevity | 32 | 27 | 31 | 26 | 25 | |||||||||||||||
Health | 3 | 2 | 3 | 3 | 3 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 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 June 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($8.8) million and ($9.4) million, respectively, compared to the three months ended June 30, 2011. |
21
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Life segment
For the six months ended | For the year ended | |||||||||||||||||
June 30, 2012 (A) | June 30, 2011 | December 31, 2011 | December 31, 2010 | |||||||||||||||
|
|
|
| |||||||||||||||
Net premiums written | $ | 414 | $ | 402 | $ | 786 | $ | 742 | ||||||||||
Net premiums earned | $ | 394 | $ | 385 | $ | 792 | $ | 744 | ||||||||||
Life policy benefits | (322 | ) | (311 | ) | (650 | ) | (624 | ) | ||||||||||
Acquisition costs | (55 | ) | (56 | ) | (117 | ) | (116 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Technical result | $ | 17 | $ | 18 | $ | 25 | $ | 4 | ||||||||||
Other income | 2 | — | 1 | 2 | ||||||||||||||
Other operating expenses | (26 | ) | (25 | ) | (53 | ) | (57 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Underwriting result | $ | (7 | ) | $ | (7 | ) | $ | (27 | ) | $ | (51 | ) | ||||||
Net investment income | 33 | 31 | 66 | 71 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Allocated underwriting result(1) | $ | 26 | $ | 24 | $ | 39 | $ | 20 | ||||||||||
Distribution of Net Premiums Written by Major Lines of Business: | ||||||||||||||||||
Mortality | 68 | % | 74 | % | 71 | % | 70 | % | ||||||||||
Longevity | 30 | 23 | 26 | 27 | ||||||||||||||
Health | 2 | 3 | 3 | 3 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | 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 six months ended June 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($13.1) million and ($13.1) million, respectively, compared to the six months ended June 30, 2011. |
22
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Corporate and Other
For the three months ended | ||||||||||||||||||||
June 30, 2012 | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | ||||||||||||||||
|
| |||||||||||||||||||
Technical result | $ | 1 | $ | 1 | $ | 3 | $ | 4 | $ | (1 | ) | |||||||||
Other income | 2 | 1 | — | — | 1 | |||||||||||||||
Corporate expenses - acquisition related | — | — | — | (1 | ) | (1 | ) | |||||||||||||
Corporate expenses | (22 | ) | (20 | ) | (16 | ) | (19 | ) | (25 | ) | ||||||||||
Other operating expenses | (5 | ) | (3 | ) | (4 | ) | (3 | ) | (4 | ) | ||||||||||
Net investment income | 136 | 130 | 140 | 145 | 142 | |||||||||||||||
Net realized and unrealized investment gains | 38 | 193 | 74 | 26 | 78 | |||||||||||||||
Interest expense | (12 | ) | (12 | ) | (12 | ) | (12 | ) | (12 | ) | ||||||||||
Amortization of intangible assets | (9 | ) | (9 | ) | (9 | ) | (9 | ) | (9 | ) | ||||||||||
Net foreign exchange gains (losses) | 8 | (3 | ) | 15 | 11 | 9 | ||||||||||||||
Income tax expense | (50 | ) | (67 | ) | (3 | ) | (42 | ) | (50 | ) | ||||||||||
Interest in (losses) earnings of equity investments | (1 | ) | 5 | (2 | ) | (5 | ) | (1 | ) |
23
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Corporate and Other
For the six months ended | For the year ended | |||||||||||||||||
June 30, 2012 | June 30, 2011 | December 31, 2011 | December 31, 2010 | |||||||||||||||
|
|
|
| |||||||||||||||
Technical result | $ | 2 | $ | (1 | ) | $ | 6 | $ | — | |||||||||
Other income | 2 | 1 | 3 | 3 | ||||||||||||||
Corporate expenses - acquisition related | — | (4 | ) | (4 | ) | (16 | ) | |||||||||||
Corporate expenses - voluntary termination plan | — | — | — | (41 | ) | |||||||||||||
Corporate expenses(1) | (41 | ) | (43 | ) | (79 | ) | (94 | ) | ||||||||||
Other operating expenses | (8 | ) | (9 | ) | (16 | ) | (15 | ) | ||||||||||
Net investment income | 267 | 279 | 563 | 602 | ||||||||||||||
Net realized and unrealized investment gains (losses) | 231 | (34 | ) | 67 | 402 | |||||||||||||
Interest expense | (24 | ) | (24 | ) | (49 | ) | (44 | ) | ||||||||||
Amortization of intangible assets | (18 | ) | (18 | ) | (36 | ) | (31 | ) | ||||||||||
Net foreign exchange gains (losses) | 5 | 9 | 34 | (21 | ) | |||||||||||||
Income tax expense | (117 | ) | (24 | ) | (69 | ) | (129 | ) | ||||||||||
Interest in earnings (losses) of equity investments | 4 | — | (6 | ) | 13 |
(1) | The Company’s corporate expenses for the year ended December 31, 2010 includes $13 million of corporate expenses related to Paris Re. |
24
PartnerRe Ltd.
Distribution of Premiums
(Unaudited)
For the three months ended | ||||||||||||||||||||
June 30, 2012 | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | ||||||||||||||||
|
| |||||||||||||||||||
Distribution of Net Premiums Written by Line of Business: | ||||||||||||||||||||
Non-life | ||||||||||||||||||||
Property and casualty | ||||||||||||||||||||
Property | 12 | % | 19 | % | 12 | % | 14 | % | 13 | % | ||||||||||
Casualty | 10 | 13 | 12 | 11 | 10 | |||||||||||||||
Motor | 3 | 8 | 4 | 5 | 3 | |||||||||||||||
Multiline and other | 1 | 3 | 2 | 3 | 2 | |||||||||||||||
Specialty | ||||||||||||||||||||
Agriculture | 10 | 3 | 7 | 8 | 7 | |||||||||||||||
Aviation/Space | 5 | 4 | 9 | 5 | 5 | |||||||||||||||
Catastrophe | 13 | 15 | 2 | 8 | 15 | |||||||||||||||
Credit/Surety | 8 | 6 | 8 | 7 | 8 | |||||||||||||||
Energy | 2 | 1 | 3 | 4 | 2 | |||||||||||||||
Engineering | 3 | 3 | 6 | 4 | 4 | |||||||||||||||
Marine | 8 | 5 | 8 | 7 | 7 | |||||||||||||||
Specialty casualty | 3 | 3 | 1 | 1 | 2 | |||||||||||||||
Specialty property | 4 | 2 | 4 | 5 | 4 | |||||||||||||||
Life | 18 | 15 | 22 | 18 | 18 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Distribution of Gross Premiums Written by Geography: | ||||||||||||||||||||
North America | 39 | % | 33 | % | 34 | % | 37 | % | 36 | % | ||||||||||
Europe | 36 | 48 | 45 | 38 | 40 | |||||||||||||||
Asia, Australia and New Zealand | 13 | 9 | 10 | 13 | 13 | |||||||||||||||
Latin America, Caribbean and Africa | 12 | 10 | 11 | 12 | 11 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Distribution of Gross Premiums Written by Production Source: | ||||||||||||||||||||
Broker | 77 | % | 72 | % | 68 | % | 74 | % | 75 | % | ||||||||||
Direct | 23 | 28 | 32 | 26 | 25 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|
25
PartnerRe Ltd.
Distribution of Premiums
(Unaudited)
For the six months ended | For the year ended | |||||||||||||||||
June 30, 2012 | June 30, 2011 | December 31, 2011 | December 31, 2010 | |||||||||||||||
|
|
|
| |||||||||||||||
Distribution of Net Premiums Written by Line of Business: | ||||||||||||||||||
Non-life | ||||||||||||||||||
Property and casualty | ||||||||||||||||||
Property | 16 | % | 16 | % | 15 | % | 18 | % | ||||||||||
Casualty | 12 | 11 | 11 | 11 | ||||||||||||||
Motor | 6 | 5 | 5 | 7 | ||||||||||||||
Multiline and other | 2 | 2 | 2 | 2 | ||||||||||||||
Specialty | ||||||||||||||||||
Agriculture | 6 | 6 | 7 | 4 | ||||||||||||||
Aviation/Space | 4 | 4 | 5 | 5 | ||||||||||||||
Catastrophe | 14 | 18 | 13 | 14 | ||||||||||||||
Credit/Surety | 7 | 7 | 7 | 6 | ||||||||||||||
Energy | 2 | 2 | 2 | 2 | ||||||||||||||
Engineering | 3 | 3 | 4 | 4 | ||||||||||||||
Marine | 6 | 5 | 6 | 6 | ||||||||||||||
Specialty casualty | 3 | 3 | 2 | 3 | ||||||||||||||
Specialty property | 3 | 2 | 3 | 2 | ||||||||||||||
Life | 16 | 16 | 18 | 16 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
100 | % | 100 | % | 100 | % | 100 | % | |||||||||||
|
|
|
|
|
|
|
| |||||||||||
Distribution of Gross Premiums Written by Geography: | ||||||||||||||||||
Europe | 43 | % | 42 | % | 41 | % | 43 | % | ||||||||||
North America | 35 | 36 | 36 | 36 | ||||||||||||||
Asia, Australia and New Zealand | 11 | 12 | 12 | 10 | ||||||||||||||
Latin America, Caribbean and Africa | 11 | 10 | 11 | 11 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
100 | % | 100 | % | 100 | % | 100 | % | |||||||||||
|
|
|
|
|
|
|
| |||||||||||
Distribution of Gross Premiums Written by Production Source: | ||||||||||||||||||
Broker | 74 | % | 73 | % | 72 | % | 73 | % | ||||||||||
Direct | 26 | 27 | 28 | 27 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
100 | % | 100 | % | 100 | % | 100 | % | |||||||||||
|
|
|
|
|
|
|
|
26
PartnerRe Ltd.
Distribution of Premiums
(Unaudited)
For the three months ended | ||||||||||||||||||||
June 30, 2012 | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | ||||||||||||||||
|
| |||||||||||||||||||
Distribution of Gross Premiums Written by Reinsurance Type for the Non-life sub-segment: | ||||||||||||||||||||
North America | ||||||||||||||||||||
Non-Proportional | 19 | % | 50 | % | 16 | % | 26 | % | 25 | % | ||||||||||
Proportional | 81 | 50 | 84 | 74 | 75 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Global (Non-U.S.) P&C | ||||||||||||||||||||
Non-Proportional | 13 | % | 34 | % | 11 | % | 19 | % | 10 | % | ||||||||||
Proportional | 87 | 66 | 89 | 81 | 90 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Global (Non-U.S.) Specialty | ||||||||||||||||||||
Non-Proportional | 24 | % | 31 | % | 7 | % | 17 | % | 20 | % | ||||||||||
Proportional | 76 | 69 | 93 | 83 | 80 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Catastrophe | ||||||||||||||||||||
Non-Proportional | 97 | % | 98 | % | 96 | % | 98 | % | 98 | % | ||||||||||
Proportional | 3 | 2 | 4 | 2 | 2 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Non-life total | ||||||||||||||||||||
Non-Proportional | 33 | % | 49 | % | 13 | % | 29 | % | 35 | % | ||||||||||
Proportional | 67 | 51 | 87 | 71 | 65 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
27
PartnerRe Ltd.
Distribution of Premiums
(Unaudited)
For the six months ended | For the year ended | |||||||||||||||||
June 30, 2012 | June 30, 2011 | December 31, 2011 | December 31, 2010 | |||||||||||||||
|
|
|
| |||||||||||||||
Distribution of Gross Premiums Written by Reinsurance Type Non-life sub-segment: | ||||||||||||||||||
North America | ||||||||||||||||||
Non-Proportional | 36 | % | 38 | % | 30 | % | 33 | % | ||||||||||
Proportional | 64 | 62 | 70 | 67 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Global (Non-U.S.) P&C | ||||||||||||||||||
Non-Proportional | 28 | % | 28 | % | 23 | % | 23 | % | ||||||||||
Proportional | 72 | 72 | 77 | 77 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Global (Non-U.S.) Specialty | ||||||||||||||||||
Non-Proportional | 28 | % | 27 | % | 19 | % | 22 | % | ||||||||||
Proportional | 72 | 73 | 81 | 78 | �� | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Catastrophe | ||||||||||||||||||
Non-Proportional | 98 | % | 98 | % | 98 | % | 99 | % | ||||||||||
Proportional | 2 | 2 | 2 | 1 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Non-life total | ||||||||||||||||||
Non-Proportional | 42 | % | 45 | % | 35 | % | 38 | % | ||||||||||
Proportional | 58 | 55 | 65 | 62 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
|
|
|
|
|
|
|
|
28
PartnerRe Ltd.
Investment Portfolio
(Expressed in millions of U.S. dollars)
(Unaudited)
June 30, 2012 | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | December 31, 2010 | |||||||||||||||||||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government | $ | 922 | 6 | % | $ | 1,066 | 7 | % | $ | 1,090 | 7 | % | $ | 1,162 | 7 | % | $ | 1,291 | 8 | % | $ | 673 | 5 | % | ||||||||||||||||||||||||||
Government Sponsored Enterprises (GSEs) | 22 | — | 23 | — | 26 | — | 26 | — | 184 | 1 | 233 | 2 | ||||||||||||||||||||||||||||||||||||||
U.S. states, territories and municipalities | 127 | 1 | 130 | 1 | 124 | 1 | 101 | 1 | 99 | 1 | 67 | — | ||||||||||||||||||||||||||||||||||||||
Non-U.S. sovereign government, supranational and government related | 2,651 | 18 | 3,070 | 19 | 2,964 | 19 | 3,230 | 20 | 3,258 | 20 | 2,819 | 20 | ||||||||||||||||||||||||||||||||||||||
Corporates | 5,813 | 39 | 6,067 | 39 | 5,747 | 38 | 6,120 | 39 | 5,830 | 37 | 6,144 | 43 | ||||||||||||||||||||||||||||||||||||||
Mortgage/asset-backed securities | 4,085 | 27 | 4,056 | 26 | 3,991 | 26 | 3,717 | 24 | 3,745 | 23 | 2,889 | 20 | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||
Total fixed maturities | 13,620 | 91 | 14,412 | 92 | 13,942 | 91 | 14,356 | 91 | 14,407 | 90 | 12,825 | 90 | ||||||||||||||||||||||||||||||||||||||
Short-term investments | 32 | — | 39 | — | 42 | — | 98 | 1 | 216 | 2 | 49 | — | ||||||||||||||||||||||||||||||||||||||
Equities | 1,050 | 7 | 943 | 6 | 945 | 6 | 1,001 | 6 | 995 | 6 | 1,072 | 8 | ||||||||||||||||||||||||||||||||||||||
Other invested assets | 330 | 2 | 361 | 2 | 358 | 3 | 335 | 2 | 338 | 2 | 352 | 2 | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||
Total investments | $ | 15,032 | 100 | % | $ | 15,755 | 100 | % | $ | 15,287 | 100 | % | $ | 15,790 | 100 | % | $ | 15,956 | 100 | % | $ | 14,298 | 100 | % | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||
Cash and cash equivalents | 1,512 | 1,210 | 1,343 | 1,073 | 1,607 | 2,111 | ||||||||||||||||||||||||||||||||||||||||||||
Total investments and cash | $ | 16,544 | $ | 16,965 | $ | 16,630 | $ | 16,863 | $ | 17,563 | $ | 16,409 | ||||||||||||||||||||||||||||||||||||||
Maturity distribution: | ||||||||||||||||||||||||||||||||||||||||||||||||||
One year or less | $ | 872 | 6 | % | $ | 597 | 4 | % | $ | 571 | 4 | % | $ | 576 | 4 | % | $ | 970 | 7 | % | $ | 930 | 7 | % | ||||||||||||||||||||||||||
More than one year through five years | 4,193 | 31 | 5,038 | 35 | 4,923 | 35 | 5,580 | 39 | 5,404 | 37 | 5,022 | 39 | ||||||||||||||||||||||||||||||||||||||
More than five years through ten years | 3,696 | 27 | 3,954 | 27 | 3,713 | 26 | 3,840 | 26 | 3,831 | 26 | 3,418 | 27 | ||||||||||||||||||||||||||||||||||||||
More than ten years | 806 | 6 | 806 | 6 | 786 | 6 | 741 | 5 | 673 | 4 | 615 | 5 | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||
Subtotal | 9,567 | 70 | 10,395 | 72 | 9,993 | 71 | 10,737 | 74 | 10,878 | 74 | 9,985 | 78 | ||||||||||||||||||||||||||||||||||||||
Mortgage/asset-backed securities | 4,085 | 30 | 4,056 | 28 | 3,991 | 29 | 3,717 | 26 | 3,745 | 26 | 2,889 | 22 | ||||||||||||||||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||
Total | $ | 13,652 | 100 | % | $ | 14,451 | 100 | % | $ | 13,984 | 100 | % | $ | 14,454 | 100 | % | $ | 14,623 | 100 | % | $ | 12,874 | 100 | % | ||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||
Credit quality by market value:(A) (B) | ||||||||||||||||||||||||||||||||||||||||||||||||||
AAA | 16 | % | 18 | % | 25 | % | 28 | % | 58 | % | 51 | % | ||||||||||||||||||||||||||||||||||||||
AA | 43 | 42 | 37 | 35 | 7 | 9 | ||||||||||||||||||||||||||||||||||||||||||||
A | 21 | 21 | 21 | 21 | 19 | 22 | ||||||||||||||||||||||||||||||||||||||||||||
BBB | 14 | 13 | 11 | 11 | 10 | 11 | ||||||||||||||||||||||||||||||||||||||||||||
Below Investment Grade/Unrated | 6 | 6 | 6 | 5 | 6 | 7 | ||||||||||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||||||||
Expected average duration | 3.0 | Yrs | 2.9 | Yrs | 2.9 | Yrs | 3.0 | Yrs | 3.0 | Yrs | 3.0 | Yrs | ||||||||||||||||||||||||||||||||||||||
Average yield to maturity at market | 2.3 | % | 2.3 | % | 2.4 | % | 2.5 | % | 2.9 | % | 2.9 | % | ||||||||||||||||||||||||||||||||||||||
Average credit quality | A | AA | AA | AA | AA | AA |
(A) | The decrease in AAA rated securities and the corresponding increase in AA rated securities at September 30, 2011 compared to June 30, 2011 largely reflects Standard & Poor’s decision in August 2011 to downgrade, from AAA to AA+, U.S. Government securities and other securities that carry either an explicit or an implicit guarantee of the U.S. Government. While other rating agencies did not take a similar rating action, it is the Company’s policy to use Standard & Poor’s ratings, when available, to rate its investments. |
(B) | The decrease in AAA rated securities and the corresponding increase in AA rated securities at March 31, 2012 compared to December 31, 2011 largely reflects Standard & Poor’s decision in January 2012 to downgrade 9 Eurozone sovereign governments. While other rating agencies did not take similar action, it is the Company’s policy to use Standard & Poor’s ratings, when available, to rate its investments. |
29
PartnerRe Ltd.
Distribution of Corporate Bonds
(Expressed in thousands of U.S. dollars)
(Unaudited)
June 30, 2012 | ||||||||||||||||||||||||
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 | $ | 1,222,844 | 21.0 | % | 7.4 | % | 0.7 | % | ||||||||||||||||
Consumer noncyclical | 843,395 | 14.5 | 5.1 | 0.3 | ||||||||||||||||||||
Communications | 588,133 | 10.1 | 3.6 | 0.4 | ||||||||||||||||||||
Utilities | 584,478 | 10.1 | 3.5 | 0.3 | ||||||||||||||||||||
Energy | 426,316 | 7.3 | 2.6 | 0.5 | ||||||||||||||||||||
Industrials | 396,662 | 6.8 | 2.4 | 0.2 | ||||||||||||||||||||
Government guaranteed corporate debt | 367,656 | 6.3 | 2.2 | 0.4 | ||||||||||||||||||||
Consumer cyclical | 350,530 | 6.0 | 2.1 | 0.3 | ||||||||||||||||||||
Insurance | 242,298 | 4.2 | 1.5 | 0.2 | ||||||||||||||||||||
Materials | 218,383 | 3.8 | 1.3 | 0.1 | ||||||||||||||||||||
Catastrophe bonds | 200,813 | 3.5 | 1.2 | 0.2 | ||||||||||||||||||||
Longevity and mortality bonds | 163,015 | 2.8 | 1.0 | 0.4 | ||||||||||||||||||||
Technology | 122,479 | 2.1 | 0.7 | 0.1 | ||||||||||||||||||||
Real estate investment trusts | 73,011 | 1.3 | 0.4 | 0.1 | ||||||||||||||||||||
Diversified | 12,547 | 0.2 | 0.1 | — | ||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Total Corporate bonds | $ | 5,812,560 | 100.0 | % | 35.1 | % | ||||||||||||||||||
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|
|
|
|
| |||||||||||||||||||
Finance sector - Corporate bonds | ||||||||||||||||||||||||
Banks | $ | 565,697 | 9.7 | % | 3.4 | % | ||||||||||||||||||
Investment banking and brokerage | 271,896 | 4.7 | 1.6 | |||||||||||||||||||||
Financial services | 160,702 | 2.8 | 1.0 | |||||||||||||||||||||
Commercial and consumer finance | 156,717 | 2.7 | 1.0 | |||||||||||||||||||||
Other | 67,832 | 1.1 | 0.4 | |||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Total finance sector - Corporate bonds | $ | 1,222,844 | 21.0 | % | 7.4 | % | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
AAA | AA | A | BBB | Non-Investment Grade/Unrated | Total | |||||||||||||||||||
Credit quality of finance sector - Corporate bonds | ||||||||||||||||||||||||
Banks | $ | 30,662 | $ | 47,728 | $ | 413,751 | $ | 71,618 | $ | 1,938 | $ | 565,697 | ||||||||||||
Investment banking and brokerage | — | — | 251,431 | 19,526 | 939 | 271,896 | ||||||||||||||||||
Financial services | — | 134,281 | 24,673 | 1,748 | — | 160,702 | ||||||||||||||||||
Commercial and consumer finance | — | — | 68,814 | 68,920 | 18,983 | 156,717 | ||||||||||||||||||
Other | — | 14,850 | 20,859 | 28,972 | 3,151 | 67,832 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total finance sector - Corporate bonds | $ | 30,662 | $ | 196,859 | $ | 779,528 | $ | 190,784 | $ | 25,011 | $ | 1,222,844 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
% of total | 2 | % | 16 | % | 64 | % | 16 | % | 2 | % | 100 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Concentration of investment risk
The top 10 Corporate bond issues account for 15% of the Company’s total corporate bonds. The single largest issue accounts for 1.9% of the Company’s total Corporate bonds.
30
PartnerRe Ltd.
Distribution of Equities
(Expressed in thousands of U.S. dollars)
(Unaudited)
June 30, 2012 | ||||||||||||||||
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 | ||||||||||||||||
Consumer noncyclical | $ | 130,545 | 18.3 | % | 0.8 | % | — | % | ||||||||
Finance | 97,864 | 13.7 | 0.6 | 0.1 | ||||||||||||
Technology | 86,571 | 12.1 | 0.5 | 0.1 | ||||||||||||
Energy | 76,620 | 10.8 | 0.5 | 0.1 | ||||||||||||
Communications | 62,599 | 8.8 | 0.4 | 0.1 | ||||||||||||
Insurance | 61,521 | 8.6 | 0.4 | 0.1 | ||||||||||||
Industrials | 59,565 | 8.4 | 0.3 | 0.1 | ||||||||||||
Consumer cyclical | 54,851 | 7.7 | 0.3 | — | ||||||||||||
Utilities | 29,437 | 4.1 | 0.2 | — | ||||||||||||
Materials | 27,559 | 3.9 | 0.2 | — | ||||||||||||
Real estate investment trusts | 23,636 | 3.3 | 0.1 | 0.1 | ||||||||||||
Diversified | 2,055 | 0.3 | — | — | ||||||||||||
|
|
|
|
|
| |||||||||||
Total equities | $ | 712,823 | 100.0 | % | 4.3 | % | ||||||||||
|
|
|
|
|
| |||||||||||
Mutual funds and exchange traded funds (ETFs) | ||||||||||||||||
Funds holding fixed income securities | 251,721 | 1.5 | ||||||||||||||
Funds and ETFs holding equities | 85,473 | 0.5 | ||||||||||||||
|
|
|
| |||||||||||||
Total equities | $ | 1,050,017 | 6.3 | % | ||||||||||||
|
|
|
|
Concentration of investment risk
The single largest fund in funds and ETFs holding equities is an emerging markets fixed income fund, which accounts for 16.4% 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 17.6% of the Company’s total equities. Excluding equity securities held in mutual funds and exchange traded funds, the single largest issuer accounts for 3.1% of the Company’s total equities.
31
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 June 30, 2012 | ||||||||||||||||||||||||||||||||
GNMA | GSEs | AAA | AA | A | BBB | Non-Investment Grade/Unrated | Total | |||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
U.S. Asset-Backed Securities | $ | — | $ | — | $ | 59,081 | $ | 65,323 | $ | 70,980 | $ | 12,840 | $ | 327,469 | $ | 535,693 | ||||||||||||||||
U.S. Collaterized Mortgage Obligations | — | 2,750 | — | — | — | — | 1 | 2,751 | ||||||||||||||||||||||||
U.S. Mortgage Backed Securities (MBS) | 773,385 | 2,044,667 | — | — | — | — | — | 2,818,052 | ||||||||||||||||||||||||
U.S. Commercial Mortgage Backed Securities (CMBS) | — | — | 38,895 | — | 8,232 | 2,029 | 2,107 | 51,263 | ||||||||||||||||||||||||
U.S. MBS Interest Only | 51,126 | 127,272 | 13,127 | — | — | — | 88,825 | 280,350 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
$ | 824,511 | $ | 2,174,689 | $ | 111,103 | $ | 65,323 | $ | 79,212 | $ | 14,869 | $ | 418,402 | $ | 3,688,109 | |||||||||||||||||
Non-U.S. Asset-Backed Securities | $ | — | $ | — | $ | 78,448 | $ | 18,422 | $ | 40,426 | $ | — | $ | — | $ | 137,296 | ||||||||||||||||
Non-U.S. Collaterized Mortgage Obligations | — | — | 156,589 | 40,678 | 39,301 | — | — | 236,568 | ||||||||||||||||||||||||
Non-U.S. Commercial Mortgage Backed Securities (CMBS) | — | — | 23,033 | — | — | — | — | 23,033 | ||||||||||||||||||||||||
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|
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|
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|
| |||||||||||||||||
$ | — | $ | — | $ | 258,070 | $ | 59,100 | $ | 79,727 | $ | — | $ | — | $ | 396,897 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total mortgage/asset-backed securities | $ | 824,511 | $ | 2,174,689 | $ | 369,173 | $ | 124,423 | $ | 158,939 | $ | 14,869 | $ | 418,402 | $ | 4,085,006 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Corporate Securities | — | 22,344 | — | — | — | — | — | 22,344 | ||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total | $ | 824,511 | $ | 2,197,033 | $ | 369,173 | $ | 124,423 | $ | 158,939 | $ | 14,869 | $ | 418,402 | $ | 4,107,350 | ||||||||||||||||
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|
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|
|
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|
|
|
|
|
| |||||||||||||||||
% of total | 20 | % | 54 | % | 9 | % | 3 | % | 4 | % | — | % | 10 | % | 100 | % | ||||||||||||||||
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|
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|
|
(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 $101.0 million and a carrying value of $0.7 million at June 30, 2012 within Other Invested Assets. |
32
PartnerRe Ltd.
Other Invested Assets including Private Markets and Derivative Exposures
(Expressed in thousands of U.S. dollars)
(Unaudited)
Carrying and Notional Values of Private Markets Investments and Other Invested Assets
June 30, 2012 | March 31, 2012 | December 31, 2011 | ||||||||||||||||||||||||||||||||||||||
Investments | Fair Value of Derivatives | Carrying Value | Net Notional Amount of Derivatives | Total Net Exposures (1) | Carrying Value | Total Net Exposures (1) | Carrying Value | Total Net Exposures (1) | ||||||||||||||||||||||||||||||||
Private Markets Investments | ||||||||||||||||||||||||||||||||||||||||
Principal Finance - Investments | $ | 149,462 | $ | — | $ | 149,462 | $ | — | $ | 149,462 | $ | 152,749 | $ | 152,749 | $ | 170,092 | $ | 170,092 | ||||||||||||||||||||||
Principal Finance - Derivative Exposure Assumed | — | (1,851 | ) | (1,851 | ) | 111,712 | 109,861 | (985 | ) | 119,401 | (2,174 | ) | 127,114 | |||||||||||||||||||||||||||
Insurance-Linked Securities | — | (5,162 | ) | (5,162 | ) | 155,964 | 150,802 | (3,528 | ) | 157,436 | (968 | ) | 135,407 | |||||||||||||||||||||||||||
Commodities Futures | — | 1,728 | 1,728 | 42,099 | 43,827 | (1,668 | ) | 47,271 | (1,756 | ) | 46,223 | |||||||||||||||||||||||||||||
Strategic Investments | 189,616 | — | 189,616 | — | 189,616 | 181,750 | 181,750 | 179,348 | 179,348 | |||||||||||||||||||||||||||||||
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|
|
|
|
|
|
| |||||||||||||||||||||||
Total other invested assets - Private Markets Exposure Assumed | 339,078 | (5,285 | ) | 333,793 | 309,775 | 643,568 | 328,318 | 658,607 | 344,542 | 658,184 | ||||||||||||||||||||||||||||||
Other Credit Derivatives - Exposure Assumed | — | 272 | 272 | 5,000 | 5,272 | 322 | 5,322 | 246 | 5,246 | |||||||||||||||||||||||||||||||
Other Credit Derivatives - Protection Purchased | — | (1,120 | ) | (1,120 | ) | (77,459 | ) | (78,579 | ) | (1,447 | ) | (96,748 | ) | (1,193 | ) | (96,154 | ) | |||||||||||||||||||||||
Other(2) | 9,475 | (12,424 | ) | (2,949 | ) | 33,701 | 14,559 | |||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||
Total other invested assets | $ | 348,553 | $ | (18,557 | ) | $ | 329,996 | $ | 360,894 | $ | 358,154 | |||||||||||||||||||||||||||||
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|
|
(1) | The total net exposures originated in Private Markets are $1,678 million at June 30, 2012 ($1,639 million and $1,629 million at March 31, 2012 and December 31, 2011, respectively). In addition to the net exposures listed above of $644 million ($659 million and $658 million at March 31, 2012 and December 31, 2011, respectively), the Company has the following other net exposures originated in Private Markets: |
• | Principal Finance: $583 million of assets listed under Investments - Fixed Maturities and $7 million listed under Investments - Equities for a total exposure of $849 million ($822 million and $824 million at March 31, 2012 and December 31, 2011, respectively). |
• | Insurance-Linked Securities: $371 million of bonds listed under Investments - Fixed Maturities and $38 million of limits on transactions that use reinsurance accounting for a total exposure of $560 million ($567 million and $562 million at March 31, 2012 and December 31, 2011, respectively). |
• | Strategic Investments: $7 million of assets listed under Investments - Fixed Maturities, $26 million under Investments - Equities, and $2 million of assets listed under Other Assets for a total exposure of $225 million ($203 million and $197 million at March 31, 2012 and December 31, 2011, respectively). |
(2) | Other includes foreign currency and fixed income hedging instruments used to manage currency and duration exposure, respectively, and other miscellaneous invested assets. |
33
PartnerRe Ltd.
Funds Held - Directly Managed Portfolio
(Expressed in millions of U.S. dollars)
(Unaudited)
June 30, 2012 | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | December 31, 2010 | |||||||||||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government | $ | 222 | 20 | % | $ | 218 | 19 | % | $ | 111 | 11 | % | $ | 111 | 10 | % | $ | 77 | 7 | % | $ | 95 | 6 | % | ||||||||||||||||||||||||||
Government Sponsored Enterprises (GSEs) | 146 | 14 | 157 | 14 | 158 | 15 | 156 | 13 | 154 | 13 | 193 | 12 | ||||||||||||||||||||||||||||||||||||||
Non-U.S. sovereign government, supranational and government related | 276 | 25 | 290 | 25 | 275 | 26 | 303 | 26 | 313 | 27 | 385 | 25 | ||||||||||||||||||||||||||||||||||||||
Corporates | 419 | 39 | 460 | 40 | 480 | 45 | 531 | 46 | 551 | 47 | 799 | 52 | ||||||||||||||||||||||||||||||||||||||
Mortgage/asset-backed securities | — | — | — | — | — | — | — | — | — | — | 12 | 1 | ||||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||
Total fixed maturities | 1,063 | 98 | 1,125 | 98 | 1,024 | 97 | 1,101 | 95 | 1,095 | 94 | 1,484 | 96 | ||||||||||||||||||||||||||||||||||||||
Short-term investments | 11 | 1 | 2 | — | 18 | 2 | 35 | 3 | 42 | 4 | 38 | 3 | ||||||||||||||||||||||||||||||||||||||
Other invested assets | 15 | 1 | 18 | 2 | 16 | 1 | 18 | 2 | 22 | 2 | 21 | 1 | ||||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||
Total investments | $ | 1,089 | 100 | % | $ | 1,145 | 100 | % | $ | 1,058 | 100 | % | $ | 1,154 | 100 | % | $ | 1,159 | 100 | % | $ | 1,543 | 100 | % | ||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||
Cash and cash equivalents | 64 | 47 | 176 | 135 | 149 | 129 | ||||||||||||||||||||||||||||||||||||||||||||
Total investments and cash | $ | 1,153 | $ | 1,192 | $ | 1,234 | $ | 1,289 | $ | 1,308 | $ | 1,672 | ||||||||||||||||||||||||||||||||||||||
Accrued investment income | 13 | 14 | 14 | 17 | 15 | 20 | ||||||||||||||||||||||||||||||||||||||||||||
Other funds held assets/liabilities | 67 | 58 | 20 | 17 | 57 | 80 | ||||||||||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||||||||
Total funds held - directly managed | $ | 1,233 | $ | 1,264 | $ | 1,268 | $ | 1,323 | $ | 1,380 | $ | 1,772 | ||||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||||||||
Maturity distribution: | ||||||||||||||||||||||||||||||||||||||||||||||||||
One year or less | $ | 216 | 20 | % | $ | 192 | 17 | % | $ | 227 | 22 | % | $ | 203 | 18 | % | $ | 223 | 20 | % | $ | 289 | 19 | % | ||||||||||||||||||||||||||
More than one year through five years | 642 | 60 | 705 | 63 | 573 | 55 | 646 | 57 | 621 | 55 | 814 | 53 | ||||||||||||||||||||||||||||||||||||||
More than five years through ten years | 188 | 17 | 203 | 18 | 215 | 20 | 260 | 23 | 266 | 23 | 376 | 25 | ||||||||||||||||||||||||||||||||||||||
More than ten years | 28 | 3 | 27 | 2 | 27 | 3 | 27 | 2 | 27 | 2 | 31 | 2 | ||||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||
Subtotal | 1,074 | 100 | 1,127 | 100 | 1,042 | 100 | 1,136 | 100 | 1,137 | 100 | 1,510 | 99 | ||||||||||||||||||||||||||||||||||||||
Mortgage/asset-backed securities | — | — | — | — | — | — | — | — | — | — | 12 | 1 | ||||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||
Total | $ | 1,074 | 100 | % | $ | 1,127 | 100 | % | $ | 1,042 | 100 | % | $ | 1,136 | 100 | % | $ | 1,137 | 100 | % | $ | 1,522 | 100 | % | ||||||||||||||||||||||||||
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|
| |||||||||||||||||||||||||||
Credit quality by market value:(A) (B) | ||||||||||||||||||||||||||||||||||||||||||||||||||
AAA | 14 | % | 15 | % | 22 | % | 23 | % | 43 | % | 45 | % | ||||||||||||||||||||||||||||||||||||||
AA | 59 | 59 | 50 | 50 | 30 | 27 | ||||||||||||||||||||||||||||||||||||||||||||
A | 23 | 21 | 24 | 23 | 23 | 24 | ||||||||||||||||||||||||||||||||||||||||||||
BBB | 4 | 5 | 4 | 4 | 4 | 4 | ||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||
Expected average duration | 2.9 | Yrs | 3.0 | Yrs | 2.7 | Yrs | 2.9 | Yrs | 3.1 | Yrs | 3.1 | Yrs | ||||||||||||||||||||||||||||||||||||||
Average yield to maturity at market | 1.3 | % | 1.4 | % | 1.7 | % | 1.8 | % | 2.1 | % | 2.4 | % | ||||||||||||||||||||||||||||||||||||||
Average credit quality | AA | AA | AA | AA | AA | AA |
(A) | The decrease in AAA rated securities and the correspondingincrease in AArated securitiesat September30, 2011comparedto June 30,2011 largelyreflects Standard& Poor’sdecision in August2011 to downgrade,from AAA to AA+, U.S. Government securities and other securities that carry either an explicit or an implicit guarantee of the U.S. Government. While other rating agencies did not take a similar rating action, it is the Company’s policy to use Standard & Poor’s ratings, when available, to rate its investments. |
(B) | The decrease in AAA rated securities and the corresponding increase in AA rated securities at March 31, 2012 compared to December 31, 2011 largely reflects Standard & Poor’s decision in January 2012 to downgrade 9 Eurozone sovereign governments. While other rating agencies did not take similar action, it is the Company’s policy to use Standard & Poor’s ratings, when available, to rate its investments. |
34
PartnerRe Ltd.
Distribution of Corporate Bonds
Funds Held - Directly Managed Portfolio
(Expressed in thousands of U.S. dollars)
(Unaudited)
June 30, 2012 | ||||||||||||||||||||
Fair Value | Percentage to Total Fair Value of Corporate Bonds | Percentage to Funds Held - Directly Managed Investments and cash | Largest Single issuer as a Percentage of Funds Held - Directly Managed Investments and cash | |||||||||||||||||
Distribution by sector - Corporate bonds | ||||||||||||||||||||
Finance | $ | 184,988 | 44.1 | % | 16.0 | % | 1.2 | % | ||||||||||||
Consumer noncyclical | 65,776 | 15.7 | 5.7 | 0.8 | ||||||||||||||||
Energy | 49,500 | 11.8 | 4.3 | 0.9 | ||||||||||||||||
Utilities | 25,532 | 6.1 | 2.2 | 0.4 | ||||||||||||||||
Materials | 20,187 | 4.8 | 1.7 | �� | 0.4 | |||||||||||||||
Communications | 18,133 | 4.3 | 1.6 | 0.4 | ||||||||||||||||
Government Guaranteed Corporate Debt | 16,318 | 3.9 | 1.4 | 1.1 | ||||||||||||||||
Consumer cyclical | 12,673 | 3.0 | 1.1 | 0.7 | ||||||||||||||||
Technology | 12,114 | 2.9 | 1.1 | 0.4 | ||||||||||||||||
Industrials | 9,051 | 2.2 | 0.8 | 0.3 | ||||||||||||||||
Real estate investment trusts | 3,505 | 0.9 | 0.3 | 0.3 | ||||||||||||||||
Insurance | 1,277 | 0.3 | 0.1 | 0.1 | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||
Total Corporate bonds | $ | 419,054 | 100.0 | % | 36.3 | % | ||||||||||||||
|
|
|
|
|
| |||||||||||||||
Finance sector - Corporate bonds | ||||||||||||||||||||
Banks | $ | 107,945 | 25.7 | % | 9.4 | % | ||||||||||||||
Investment Banking & Brokerage | 29,714 | 7.1 | 2.6 | |||||||||||||||||
Financial Services | 28,894 | 6.9 | 2.5 | |||||||||||||||||
Commercial & Consumer Finance | 14,415 | 3.4 | 1.2 | |||||||||||||||||
Other | 4,020 | 1.0 | 0.3 | |||||||||||||||||
|
|
|
|
|
| |||||||||||||||
Total finance sector - Corporate bonds | $ | 184,988 | 44.1 | % | 16.0 | % | ||||||||||||||
|
|
|
|
|
| |||||||||||||||
AAA | AA | A | BBB | Total | ||||||||||||||||
Credit quality of finance sector - Corporate bonds | ||||||||||||||||||||
Banks | $ | 18,832 | $ | 40,727 | $ | 43,665 | $ | 4,721 | $ | 107,945 | ||||||||||
Investment Banking & Brokerage | 14,988 | — | 14,726 | — | 29,714 | |||||||||||||||
Financial Services | 4,187 | 20,211 | 4,496 | — | 28,894 | |||||||||||||||
Commercial & Consumer Finance | 7,563 | — | 6,852 | — | 14,415 | |||||||||||||||
Other | — | — | 4,020 | — | 4,020 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total finance sector - Corporate bonds | $ | 45,570 | $ | 60,938 | $ | 73,759 | $ | 4,721 | $ | 184,988 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
% of total | 25 | % | 33 | % | 40 | % | 2 | % | 100 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
Concentration of investment risk
The Top 10 corporate bond issuers account for 24.4% of the Company’s total corporate bonds within the Funds Held - Directly Managed Portfolio. The single largest issuer accounts for 3.4% of the Company’s total corporate bonds within the Funds Held - Directly Managed portfolio.
35
PartnerRe Ltd.
Composition of Net Investment Income and Net Realized and Unrealized Investment Gains
(Expressed in thousands of U.S. dollars)
(Unaudited)
For the three months ended | ||||||||||||||||||||
June 30, 2012 | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||
Fixed maturities | $ | 129,900 | $ | 133,490 | $ | 138,233 | $ | 145,861 | $ | 141,535 | ||||||||||
Short-term investments, cash and cash equivalents | 628 | 596 | 571 | 887 | 1,142 | |||||||||||||||
Equities | 12,992 | 3,513 | 4,758 | 4,322 | 6,545 | |||||||||||||||
Funds held and other | 13,330 | 10,602 | 11,095 | 14,522 | 11,295 | |||||||||||||||
Funds held - directly managed | 7,577 | 8,593 | 11,936 | 9,180 | 8,635 | |||||||||||||||
Investment expenses | (10,921 | ) | (9,898 | ) | (11,053 | ) | (11,125 | ) | (10,824 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income(1) | $ | 153,506 | $ | 146,896 | $ | 155,540 | $ | 163,647 | $ | 158,328 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized investment gains on fixed maturities and short-term investments | $ | 62,202 | $ | 17,398 | $ | 73,155 | $ | 63,611 | $ | 13,007 | ||||||||||
Net realized investment gains on equities | 6,370 | 41,421 | 25,136 | 2,480 | 26,219 | |||||||||||||||
Net realized (losses) gains on other invested assets | (18,321 | ) | 5,205 | (27,529 | ) | (97,741 | ) | (63,269 | ) | |||||||||||
Change in net unrealized (losses) gains on other invested assets | (14,346 | ) | 20,428 | (1,360 | ) | (212 | ) | (7,253 | ) | |||||||||||
Change in net unrealized investment gains (losses) on fixed maturities and short-term investments | 32,995 | 47,821 | (51,964 | ) | 189,956 | 131,101 | ||||||||||||||
Change in net unrealized investment (losses) gains on equities | (32,963 | ) | 50,771 | 57,314 | (145,095 | ) | (30,197 | ) | ||||||||||||
Net other realized and unrealized investment gains | 406 | 2,961 | 2,400 | 1,193 | 23 | |||||||||||||||
Net realized and unrealized investment gains (losses) on funds held - directly managed | 1,789 | 6,730 | (2,599 | ) | 11,947 | 8,568 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized and unrealized investment gains | $ | 38,132 | $ | 192,735 | $ | 74,553 | $ | 26,139 | $ | 78,199 | ||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Comparisons of net investment income between periods include the impact of foreign exchange variances. For the three months ended June 30, 2012, net investment income includes foreign exchange impacts of ($2.1) million compared to the three months ended June 30, 2011. |
36
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 six months ended | For the year ended | |||||||||||||||||
June 30, 2012 | June 30, 2011 | December 31, 2011 | December 31, 2010 | |||||||||||||||
|
|
|
| |||||||||||||||
Fixed maturities | $ | 263,390 | $ | 277,482 | $ | 561,576 | $ | 580,258 | ||||||||||
Short-term investments, cash and cash equivalents | 1,224 | 2,385 | 3,843 | 8,541 | ||||||||||||||
Equities | 16,505 | 10,735 | 19,815 | 20,794 | ||||||||||||||
Funds held and other | 23,932 | 23,885 | 49,502 | 52,794 | ||||||||||||||
Funds held - directly managed | 16,170 | 16,804 | 37,919 | 51,775 | ||||||||||||||
Investment expenses | (20,819 | ) | (21,329 | ) | (43,507 | ) | (41,380 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Net investment income(1) | $ | 300,402 | $ | 309,962 | $ | 629,148 | $ | 672,782 | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Net realized investment gains on fixed maturities and short-term investments | $ | 79,600 | $ | 20,441 | $ | 157,207 | $ | 173,426 | ||||||||||
Net realized investment gains on equities | 47,792 | 63,250 | 90,866 | 44,736 | ||||||||||||||
Net realized losses on other invested assets | (13,116 | ) | (51,025 | ) | (176,295 | ) | (68,568 | ) | ||||||||||
Change in net unrealized gains (losses) on other invested assets | 6,082 | (44,707 | ) | (46,278 | ) | 3,742 | ||||||||||||
Change in net unrealized investment gains (losses) on fixed maturities and short-term investments | 80,815 | (9,767 | ) | 128,224 | 142,634 | |||||||||||||
Change in net unrealized investment gains (losses) on equities | 17,808 | (14,079 | ) | (101,860 | ) | 64,825 | ||||||||||||
Net other realized and unrealized investment gains | 3,367 | 24 | 3,617 | 13,335 | ||||||||||||||
Net realized and unrealized investment gains on funds held - directly managed | 8,519 | 1,863 | 11,211 | 27,352 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Net realized and unrealized investment gains (losses) | $ | 230,867 | $ | (34,000 | ) | $ | 66,692 | $ | 401,482 | |||||||||
|
|
|
|
|
|
|
|
(1) | Comparisons of net investment income between periods include the impact of foreign exchange variances. For the six months ended June 30, 2012, net investment income includes foreign exchange impacts of ($2.7) million compared to the six months ended June 30, 2011. |
37
PartnerRe Ltd.
Composition of Net Investment Income and Net Realized and Unrealized Investment Gains (Losses)
Funds Held - Directly Managed Portfolio
(Expressed in thousands of U.S. dollars)
(Unaudited)
For the three months ended | ||||||||||||||||||||
June 30, 2012 | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | ||||||||||||||||
|
| |||||||||||||||||||
Fixed maturities | $ | 7,087 | $ | 7,620 | $ | 7,684 | $ | 7,778 | $ | 8,130 | ||||||||||
Short-term investments, cash and cash equivalents | 167 | 171 | 681 | 667 | 380 | |||||||||||||||
Other | 305 | 716 | 3,779 | 968 | 326 | |||||||||||||||
Investment expenses | 18 | 86 | (208 | ) | (233 | ) | (201 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income | $ | 7,577 | $ | 8,593 | $ | 11,936 | $ | 9,180 | $ | 8,635 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized investment gains (losses) on fixed maturities and short-term investments | $ | 108 | $ | (386 | ) | $ | (496 | ) | $ | 121 | $ | 471 | ||||||||
Net realized investment gains (losses) on other invested assets | — | — | 49 | (93 | ) | 2 | ||||||||||||||
Change in net unrealized investment gains (losses) on fixed maturities and short-term investments | 3,029 | 5,883 | (868 | ) | 14,676 | 10,756 | ||||||||||||||
Change in net unrealized investment (losses) gains on other invested assets | (1,348 | ) | 1,233 | (1,284 | ) | (2,757 | ) | (2,661 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized and unrealized investment gains (losses) on funds held - directly managed | $ | 1,789 | $ | 6,730 | $ | (2,599 | ) | $ | 11,947 | $ | 8,568 | |||||||||
|
|
|
|
|
|
|
|
|
|
38
PartnerRe Ltd.
Composition of Net Investment Income and Net Realized and Unrealized Investment Gains
Funds Held - Directly Managed Portfolio
(Expressed in thousands of U.S. dollars)
(Unaudited)
For the six months ended | For the year ended | |||||||||||||||||
June 30, 2012 | June 30, 2011 | December 31, 2011 | December 31, 2010 | |||||||||||||||
|
|
|
|
|
| |||||||||||||
Fixed maturities | $ | 14,706 | $ | 16,081 | $ | 31,542 | $ | 46,200 | ||||||||||
Short-term investments, cash and cash equivalents | 338 | 558 | 1,906 | 1,607 | ||||||||||||||
Other | 1,022 | 655 | 5,402 | 6,078 | ||||||||||||||
Investment expenses | 104 | (490 | ) | (931 | ) | (2,110 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||||
Net investment income | $ | 16,170 | $ | 16,804 | $ | 37,919 | $ | 51,775 | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Net realized investment (losses) gains on fixed maturities and short-term investments | $ | (278 | ) | $ | 5,745 | $ | 5,369 | $ | 1,041 | |||||||||
Net realized investment gains (losses) of on other invested assets | — | 2 | (42 | ) | 1,635 | |||||||||||||
Change in net unrealized investment gains (losses) on fixed maturities and short-term investments | 8,913 | (1,494 | ) | 12,314 | 27,568 | |||||||||||||
Change in net unrealized investment losses on other invested assets | (116 | ) | (2,390 | ) | (6,430 | ) | (2,892 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Net realized and unrealized investment gains on funds held - directly managed | $ | 8,519 | $ | 1,863 | $ | 11,211 | $ | 27,352 | ||||||||||
|
|
|
|
|
|
|
|
39
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 | ||||||||||||||||||||
June 30, 2012 | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | ||||||||||||||||
|
| |||||||||||||||||||
Reconciliation of beginning and ending liability for unpaid losses and loss expenses: | ||||||||||||||||||||
Gross liability at beginning of period | $ | 11,143,354 | $ | 11,273,091 | $ | 11,352,599 | $ | 12,016,271 | $ | 11,887,316 | ||||||||||
Reinsurance recoverable at beginning of period | (335,613 | ) | (353,105 | ) | (359,203 | ) | (378,581 | ) | (383,446 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net liability at beginning of period | 10,807,741 | 10,919,986 | 10,993,396 | 11,637,690 | 11,503,870 | |||||||||||||||
Net incurred losses related to: | ||||||||||||||||||||
Current year | 648,522 | 590,814 | 949,645 | 889,469 | 809,445 | |||||||||||||||
Prior years | (115,140 | ) | (163,603 | ) | (51,573 | ) | (175,961 | ) | (161,022 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
533,382 | 427,211 | 898,072 | 713,508 | 648,423 | ||||||||||||||||
Change in reserve agreement(1) | 7,229 | (34,792 | ) | (18,682 | ) | (14,630 | ) | (27,705 | ) | |||||||||||
Net losses paid | (774,142 | ) | (648,377 | ) | (785,542 | ) | (1,062,917 | ) | (616,941 | ) | ||||||||||
Effects of foreign exchange rate changes | (244,544 | ) | 143,713 | (167,258 | ) | (280,255 | ) | 130,043 | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net liability at end of period | 10,329,666 | 10,807,741 | 10,919,986 | 10,993,396 | 11,637,690 | |||||||||||||||
Reinsurance recoverable at end of period | 331,346 | 335,613 | 353,105 | 359,203 | 378,581 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Gross liability at end of period | $ | 10,661,012 | $ | 11,143,354 | $ | 11,273,091 | $ | 11,352,599 | $ | 12,016,271 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Breakdown of gross liability at end of period: | ||||||||||||||||||||
Case reserves | $ | 5,000,584 | $ | 5,189,842 | $ | 5,187,761 | $ | 5,198,774 | $ | 5,093,142 | ||||||||||
Additional case reserves | 453,035 | 550,945 | 495,593 | 563,690 | 1,284,603 | |||||||||||||||
Incurred but not reported reserves | 5,207,393 | 5,402,567 | 5,589,737 | 5,590,135 | 5,638,526 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Gross liability at end of period | $ | 10,661,012 | $ | 11,143,354 | $ | 11,273,091 | $ | 11,352,599 | $ | 12,016,271 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Breakdown of gross liability at end of period by Non-life sub-segment: | ||||||||||||||||||||
North America | $ | 3,310,449 | $ | 3,292,254 | $ | 3,287,364 | $ | 3,294,447 | $ | 3,293,224 | ||||||||||
Global (Non-U.S.) P&C | 2,478,403 | 2,671,384 | 2,631,593 | 2,726,094 | 2,911,178 | |||||||||||||||
Global (Non-U.S.) Specialty | 3,781,955 | 3,930,158 | 3,922,404 | 3,902,088 | 3,970,089 | |||||||||||||||
Catastrophe | 1,090,205 | 1,249,558 | 1,431,730 | 1,429,970 | 1,841,780 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Gross liability at end of period | $ | 10,661,012 | $ | 11,143,354 | $ | 11,273,091 | $ | 11,352,599 | $ | 12,016,271 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Unrecognized time value of non-life reserves | $ | 493,597 | $ | 618,317 | $ | 560,860 | $ | 614,961 | $ | 968,950 | ||||||||||
Non-life paid loss ratio data: | ||||||||||||||||||||
Non-life paid losses to incurred losses ratio | 145.1 | % | 151.8 | % | 87.5 | % | 149.0 | % | 95.1 | % | ||||||||||
Non-life paid losses to net premiums earned ratio | 86.9 | % | 81.5 | % | 80.3 | % | 97.5 | % | 68.1 | % |
(1) | The change in the reserve agreement is due to unfavorable (favorable) development on Paris Re’s reserves which are guaranteed by Axa under the reserve agreement. |
40
PartnerRe Ltd.
Analysis of Unpaid Losses and Loss Expenses
(Expressed in thousands of U.S. dollars)
(Unaudited)
As at and for the six months ended | As at and for the year ended | |||||||||||||||||
June 30, 2012 | June 30, 2011 | December 31, 2011 | December 31, 2010 | |||||||||||||||
|
|
|
| |||||||||||||||
Reconciliation of beginning and ending liability for unpaid losses and loss expenses: | ||||||||||||||||||
Gross liability at beginning of period | $ | 11,273,091 | $ | 10,666,604 | $ | 10,666,604 | $ | 10,811,483 | ||||||||||
Reinsurance recoverable at beginning of period | (353,105 | ) | (348,747 | ) | (348,747 | ) | (336,352 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Net liability at beginning of period | 10,919,986 | 10,317,857 | 10,317,857 | 10,475,131 | ||||||||||||||
Net incurred losses related to: | ||||||||||||||||||
Current year | 1,239,336 | 2,413,653 | 4,252,766 | 3,137,874 | ||||||||||||||
Prior years | (278,743 | ) | (302,923 | ) | (530,457 | ) | (477,883 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
960,593 | 2,110,730 | 3,722,309 | 2,659,991 | |||||||||||||||
Change in reserve agreement(1) | (27,563 | ) | (28,072 | ) | (61,383 | ) | (66,783 | ) | ||||||||||
Net losses paid | (1,422,519 | ) | (1,142,100 | ) | (2,990,559 | ) | (2,579,018 | ) | ||||||||||
Effects of foreign exchange rate changes | (100,831 | ) | 379,275 | (68,238 | ) | (171,464 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||||
Net liability at end of period | 10,329,666 | 11,637,690 | 10,919,986 | 10,317,857 | ||||||||||||||
Reinsurance recoverable at end of period | 331,346 | 378,581 | 353,105 | 348,747 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Gross liability at end of period | $ | 10,661,012 | $ | 12,016,271 | $ | 11,273,091 | $ | 10,666,604 | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Breakdown of gross liability at end of period: | ||||||||||||||||||
Case reserves | $ | 5,000,584 | $ | 5,093,142 | $ | 5,187,761 | $ | 4,652,281 | ||||||||||
Additional case reserves | 453,035 | 1,284,603 | 495,593 | 326,721 | ||||||||||||||
Incurred but not reported reserves | 5,207,393 | 5,638,526 | 5,589,737 | 5,687,602 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Gross liability at end of period | $ | 10,661,012 | $ | 12,016,271 | $ | 11,273,091 | $ | 10,666,604 | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Breakdown of gross liability at end of period by Non-life sub-segment: | ||||||||||||||||||
North America | $ | 3,310,449 | $ | 3,293,224 | $ | 3,287,364 | $ | 3,211,622 | ||||||||||
Global (Non-U.S.) P&C | 2,478,403 | 2,911,178 | 2,631,593 | 2,804,937 | ||||||||||||||
Global (Non-U.S.) Specialty | 3,781,955 | 3,970,089 | 3,922,404 | 3,781,341 | ||||||||||||||
Catastrophe | 1,090,205 | 1,841,780 | 1,431,730 | 868,704 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Gross liability at end of period | $ | 10,661,012 | $ | 12,016,271 | $ | 11,273,091 | $ | 10,666,604 | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Unrecognized time value of non-life reserves | $ | 493,597 | $ | 968,950 | $ | 560,860 | $ | 949,210 | ||||||||||
Non-life paid loss ratio data: | ||||||||||||||||||
Non-life paid losses to incurred losses ratio | 148.1 | % | 54.1 | % | 80.3 | % | 97.0 | % | ||||||||||
Non-life paid losses to net premiums earned ratio | 84.3 | % | 63.9 | % | 77.6 | % | 63.9 | % |
(1) | The change in the reserve agreement is due to favorable development on Paris Re’s reserves which are guaranteed by Axa under the reserve agreement. |
41
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 | ||||||||||||||||||||
June 30, 2012 | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | ||||||||||||||||
|
| |||||||||||||||||||
Reconciliation of beginning and ending policy benefits for life and annuity contracts: | ||||||||||||||||||||
Gross liability at beginning of period | $ | 1,707,982 | $ | 1,645,662 | $ | 1,678,201 | $ | 1,726,180 | $ | 1,670,768 | ||||||||||
Reinsurance recoverable at beginning of period | (9,221 | ) | (9,874 | ) | (10,633 | ) | (11,624 | ) | (11,120 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net liability at beginning of period | 1,698,761 | 1,635,788 | 1,667,568 | 1,714,556 | 1,659,648 | |||||||||||||||
Net incurred losses related to: | ||||||||||||||||||||
Current year | 170,889 | 160,204 | 175,199 | 163,065 | 163,884 | |||||||||||||||
Prior years | 1,866 | (10,929 | ) | (4,067 | ) | 5,053 | 2,216 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
172,755 | 149,275 | 171,132 | 168,118 | 166,100 | ||||||||||||||||
Net losses paid | (174,862 | ) | (131,047 | ) | (154,225 | ) | (141,734 | ) | (130,994 | ) | ||||||||||
Effects of foreign exchange rate changes | (70,742 | ) | 44,745 | (48,687 | ) | (73,372 | ) | 19,802 | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net liability at end of period | 1,625,912 | 1,698,761 | 1,635,788 | 1,667,568 | 1,714,556 | |||||||||||||||
Reinsurance recoverable at end of period | 9,635 | 9,221 | 9,874 | 10,633 | 11,624 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Gross liability at end of period | $ | 1,635,547 | $ | 1,707,982 | $ | 1,645,662 | $ | 1,678,201 | $ | 1,726,180 | ||||||||||
|
|
|
|
|
|
|
|
|
|
42
PartnerRe Ltd.
Analysis of Policy Benefits for Life and Annuity Contracts
(Expressed in thousands of U.S. dollars)
(Unaudited)
As at and for the six months ended | As at and for the year ended | |||||||||||||||||
June 30, 2012 | June 30, 2011 | December 31, 2011 | December 31, 2010 | |||||||||||||||
|
|
|
| |||||||||||||||
Reconciliation of beginning and ending policy benefits for life and annuity contracts: | ||||||||||||||||||
Gross liability at beginning of period | $ | 1,645,662 | $ | 1,750,410 | $ | 1,750,410 | $ | 1,615,193 | ||||||||||
Reinsurance recoverable at beginning of period | (9,874 | ) | (14,739 | ) | (14,739 | ) | (20,465 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Net liability at beginning of period | 1,635,788 | 1,735,671 | 1,735,671 | 1,594,728 | ||||||||||||||
Net incurred losses related to: | ||||||||||||||||||
Current year | 331,093 | 312,507 | 650,771 | 611,795 | ||||||||||||||
Prior years | (9,063 | ) | (1,497 | ) | (510 | ) | 11,832 | |||||||||||
|
|
|
|
|
|
|
| |||||||||||
322,030 | 311,010 | 650,261 | 623,627 | |||||||||||||||
Net losses paid(1) | (305,909 | ) | (422,967 | ) | (718,926 | ) | (419,944 | ) | ||||||||||
Effects of foreign exchange rate changes | (25,997 | ) | 90,842 | (31,218 | ) | (62,740 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||||
Net liability at end of period | 1,625,912 | 1,714,556 | 1,635,788 | 1,735,671 | ||||||||||||||
Reinsurance recoverable at end of period | 9,635 | 11,624 | 9,874 | 14,739 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Gross liability at end of period | $ | 1,635,547 | $ | 1,726,180 | $ | 1,645,662 | $ | 1,750,410 | ||||||||||
|
|
|
|
|
|
|
|
(1) | Net losses paid for the six months ended June 30, 2011 and for the year ended December 31, 2011 include an approximate $131 million reduction in policy benefits for life and annuity contracts related to the recapture by the cedant of a large longevity treaty that was written on a funds held basis. Contemporaneously, the treaty was rewritten on a net settled mortality swap basis. |
43
PartnerRe Ltd.
Reserve Development
(Expressed in thousands of U.S. dollars)
(Unaudited)
For the three months ended | ||||||||||||||||||||
June 30, 2012 | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | ||||||||||||||||
|
| |||||||||||||||||||
Prior year net favorable (adverse) reserve development: | ||||||||||||||||||||
Non-life segment: | ||||||||||||||||||||
North America | $ | 38,764 | $ | 61,717 | $ | 20,178 | $ | 74,769 | $ | 54,513 | ||||||||||
Global (Non-U.S.) P&C | 17,981 | 27,683 | 26,369 | 34,945 | 22,228 | |||||||||||||||
Global (Non-U.S.) Specialty | 58,549 | 55,428 | 6,478 | 30,027 | 57,847 | |||||||||||||||
Catastrophe | (154 | ) | 18,775 | (1,452 | ) | 36,220 | 26,434 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Non-life net prior year reserve development | $ | 115,140 | $ | 163,603 | $ | 51,573 | $ | 175,961 | $ | 161,022 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Non-life segment: | ||||||||||||||||||||
Net prior year reserve development due to changes in premiums | $ | (35,011 | ) | $ | (26,333 | ) | $ | (24,150 | ) | $ | (8,461 | ) | $ | 2,424 | ||||||
Net prior year reserve development due to all other factors(2) | 150,151 | 189,936 | 75,723 | 184,422 | 158,598 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Non-life net prior year reserve development | $ | 115,140 | $ | 163,603 | $ | 51,573 | $ | 175,961 | $ | 161,022 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Life segment: | ||||||||||||||||||||
Net prior year reserve development due to GMDB(1) | $ | (4,784 | ) | $ | 9,569 | $ | (32 | ) | $ | (5,475 | ) | $ | (214 | ) | ||||||
Net prior year reserve development due to all other factors(2) | 2,918 | 1,360 | 4,099 | 422 | (2,002 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Life net prior year reserve development | $ | (1,866 | ) | $ | 10,929 | $ | 4,067 | $ | (5,053 | ) | $ | (2,216 | ) | |||||||
|
|
|
|
|
|
|
|
|
|
(1) | The guaranteed minimum death benefit (GMDB) reserves are sensitive to volatility in certain referenced global equity markets. At June 30, 2012, a 10% increase in the referenced global equity market would have decreased reserves by approximately $4.6 million, while a 10% decrease in the referenced global equity market would have increased reserves by approximately $5.8 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. |
44
PartnerRe Ltd.
Reserve Development
(Expressed in thousands of U.S. dollars)
(Unaudited)
For the six months ended | For the year ended | |||||||||||||||||
June 30, 2012 | June 30, 2011 | December 31, 2011 | December 31, 2010 | |||||||||||||||
|
|
|
| |||||||||||||||
Prior year net favorable (adverse) reserve development: | ||||||||||||||||||
Non-life segment: | ||||||||||||||||||
North America | $ | 100,481 | $ | 94,233 | $ | 189,180 | $ | 165,780 | ||||||||||
Global (Non-U.S.) P&C | 45,664 | 54,682 | 115,995 | 97,539 | ||||||||||||||
Global (Non-U.S.) Specialty | 113,977 | 92,470 | 128,975 | 170,931 | ||||||||||||||
Catastrophe | 18,621 | 61,538 | 96,307 | 43,633 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Non-life net prior year reserve development | $ | 278,743 | $ | 302,923 | $ | 530,457 | $ | 477,883 | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Non-life segment: | ||||||||||||||||||
Net prior year reserve development due to changes in premiums | $ | (61,343 | ) | $ | (25,890 | ) | $ | (58,501 | ) | $ | (7,509 | ) | ||||||
Net prior year reserve development due to all other factors(2) | 340,086 | 328,813 | 588,958 | 485,392 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Non-life net prior year reserve development | $ | 278,743 | $ | 302,923 | $ | 530,457 | $ | 477,883 | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Life segment: | ||||||||||||||||||
Net prior year reserve development due to GMDB(1) | $ | 4,785 | $ | 10,752 | $ | 5,245 | $ | 16,725 | ||||||||||
Net prior year reserve development due to all other factors(2) | 4,278 | (9,255 | ) | (4,735 | ) | (28,557 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total Life net prior year reserve development | $ | 9,063 | $ | 1,497 | $ | 510 | $ | (11,832 | ) | |||||||||
|
|
|
|
|
|
|
|
(1) | The guaranteed minimum death benefit (GMDB) reserves are sensitive to volatility in certain referenced global equity markets. At June 30, 2012, a 10% increase in the referenced global equity market would have decreased reserves by approximately $4.6 million, while a 10% decrease in the referenced global equity market would have increased reserves by approximately $5.8 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. |
45
PartnerRe Ltd.
Natural Catastrophe Probable Maximum Losses (PMLs)
(Expressed in millions of U.S. dollars)
(Unaudited)
Single occurrence estimated net PML exposure(1)
April 1, 2012 | January 1, 2012 | |||||||||||||||||
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) | |||||||||||||
| ||||||||||||||||||
U.S. Southeast | Hurricane | $ | 1,253 | 1,210 | ||||||||||||||
U.S. Northeast | Hurricane | 1,068 | 1,074 | |||||||||||||||
U.S. Gulf Coast | Hurricane | 997 | 977 | |||||||||||||||
Caribbean | Hurricane | 292 | 280 | |||||||||||||||
Europe | Windstorm | 884 | 922 | |||||||||||||||
Japan | Typhoon | 161 | 128 | |||||||||||||||
California | Earthquake | 856 | $ | 1,072 | 865 | $ | 1,086 | |||||||||||
British Columbia | Earthquake | 355 | 527 | 363 | 542 | |||||||||||||
Japan | Earthquake | 537 | 578 | 802 | 851 | |||||||||||||
Australia | Earthquake | 479 | 626 | 478 | 627 | |||||||||||||
New Zealand | Earthquake | 338 | 378 | 347 | 385 |
(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. |
The Company estimates that the incremental loss at the 1-in-250 year return period from a U.S. hurricane impacting more than one of the three hurricane risk zones in the United States would be 20% higher than the PML of the largest zone impacted. In addition, there is the potential for a hurricane to impact the Caribbean peril zone and one or more U.S. hurricane peril zones.
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 “PartnerRe’s Natural Catastrophe PMLs” document which is available on the Company’s website at www.partnerre.com in the Investor Relations section on the Financial Information page under Supplementary Financial Data.
46
PartnerRe Ltd.
Reconciliation of GAAP and non-GAAP measures
(in thousands of U.S. dollars, except per share data)
(Unaudited)
For the three months ended | ||||||||||||||||||||
June 30, 2012 | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | ||||||||||||||||
|
| |||||||||||||||||||
Reconciliation of GAAP and non-GAAP measures: | ||||||||||||||||||||
Annualized return on beginning diluted book value per common share calculated with net income (loss) per share available to common shareholders(1) | 11.8 | % | 24.7 | % | (2.1 | )% | 10.4 | % | 7.2 | % | ||||||||||
Less: | ||||||||||||||||||||
Annualized net realized and unrealized investment gains, net of tax, on beginning diluted book value per common share(1) | 1.3 | 11.4 | 3.6 | 0.4 | 2.5 | |||||||||||||||
Annualized net foreign exchange gains (losses), net of tax, on beginning diluted book value per common share(1) | 0.1 | (0.1 | ) | 3.2 | — | 0.6 | ||||||||||||||
Annualized net interest in (losses) earnings of equity investments, net of tax, on beginning diluted book value per common share(1) | — | 0.4 | (0.1 | ) | (0.3 | ) | (0.1 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Annualized operating return on beginning diluted book value per common share(1) | 10.4 | % | 13.0 | % | (8.8 | )% | 10.3 | % | 4.2 | % | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net income (loss) | $ | 176,146 | $ | 360,141 | $ | (17,643 | ) | $ | 180,123 | $ | 124,185 | |||||||||
Less: | ||||||||||||||||||||
Net realized and unrealized investment gains, net of tax | 18,325 | 159,221 | 56,384 | 6,167 | 40,954 | |||||||||||||||
Net foreign exchange gains (losses), net of tax | 1,277 | (1,630 | ) | 50,150 | (106 | ) | 9,069 | |||||||||||||
Interest in (losses) earnings of equity investments, net of tax | (879 | ) | 5,450 | (1,894 | ) | (4,788 | ) | (1,622 | ) | |||||||||||
Dividends to preferred shareholders | 15,405 | 15,405 | 15,405 | 14,352 | 8,631 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Operating earnings (loss) available to common shareholders | $ | 142,018 | $ | 181,695 | $ | (137,688 | ) | $ | 164,498 | $ | 67,153 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Per diluted share: | ||||||||||||||||||||
Net income (loss) | $ | 2.50 | $ | 5.24 | $ | (0.49 | ) | $ | 2.43 | $ | 1.69 | |||||||||
Less: | ||||||||||||||||||||
Net realized and unrealized investment gains, net of tax | 0.29 | 2.42 | 0.85 | 0.09 | 0.60 | |||||||||||||||
Net foreign exchange gains (losses), net of tax | 0.02 | (0.02 | ) | 0.75 | — | 0.13 | ||||||||||||||
Interest in (losses) earnings of equity investments, net of tax | (0.01 | ) | 0.08 | (0.03 | ) | (0.07 | ) | (0.02 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Operating earnings (loss) | $ | 2.20 | $ | 2.76 | $ | (2.06 | ) | $ | 2.41 | $ | 0.98 | |||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Excluding preferred shares of $893,750 at January 1, 2012 and $520,000 at January 1, 2011. |
47
PartnerRe Ltd.
Reconciliation of GAAP and non-GAAP measures
(in thousands of U.S. dollars, except per share data)
(Unaudited)
For the six months ended | For the year ended | |||||||||||||||||
June 30, 2012 | June 30, 2011 | December 31, 2011 | December 31, 2010(2) | |||||||||||||||
|
|
|
| |||||||||||||||
Reconciliation of GAAP and non-GAAP measures: | ||||||||||||||||||
Annualized return on beginning diluted book value per common share calculated with net income (loss) per share available to common shareholders(1) | 18.3 | % | (22.0 | )% | (9.0 | )% | 12.4 | % | ||||||||||
Less: | ||||||||||||||||||
Annualized net realized and unrealized investment gains (losses), net of tax, on beginning diluted book value per common share(1) | 6.4 | (1.5 | ) | 0.2 | 4.6 | |||||||||||||
Annualized net foreign exchange (losses) gains, net of tax, on beginning diluted book value per common share(1) | — | 0.5 | 1.0 | 0.2 | ||||||||||||||
Annualized net interest in earnings (losses) of equity investments, net of tax, on beginning diluted book value per common share(1) | 0.2 | — | (0.1 | ) | 0.2 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Annualized operating return on beginning diluted book value per common share(1) | 11.7 | % | (21.0 | )% | (10.1 | )% | 7.4 | % | ||||||||||
|
|
|
|
|
|
|
| |||||||||||
Net income (loss) | $ | 536,287 | $ | (682,771 | ) | $ | (520,291 | ) | $ | 852,552 | ||||||||
Less: | ||||||||||||||||||
Net realized and unrealized investment gains (losses), net of tax | 177,546 | (47,447 | ) | 15,104 | 301,462 | |||||||||||||
Net foreign exchange (losses) gains, net of tax | (354 | ) | 16,390 | 66,433 | 12,847 | |||||||||||||
Interest in earnings (losses) of equity investments, net of tax | 4,571 | (558 | ) | (7,239 | ) | 11,911 | ||||||||||||
Dividends to preferred shareholders | 30,811 | 17,263 | 47,020 | 34,525 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Operating earnings (loss) available to common shareholders | $ | 323,713 | $ | (668,419 | ) | $ | (641,609 | ) | $ | 491,807 | ||||||||
|
|
|
|
|
|
|
| |||||||||||
Per diluted share: | ||||||||||||||||||
Net income (loss) | $ | 7.76 | $ | (10.32 | ) | $ | (8.40 | ) | $ | 10.46 | ||||||||
Less: | ||||||||||||||||||
Net realized and unrealized investment gains (losses), net of tax | 2.73 | (0.70 | ) | 0.23 | 3.86 | |||||||||||||
Net foreign exchange (losses) gains, net of tax | (0.01 | ) | 0.24 | 0.98 | 0.16 | |||||||||||||
Interest in earnings (losses) of equity investments, net of tax | 0.07 | — | (0.11 | ) | 0.15 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Operating earnings (loss) | $ | 4.97 | $ | (9.86 | ) | $ | (9.50 | ) | $ | 6.29 | ||||||||
|
|
|
|
|
|
|
|
(1) | Excluding preferred shares of $893,750 at January 1, 2012 and $520,000 at January 1, 2011 and 2010. |
(2) | See basis of presentation for a discussion of the Company’s redefinition of its Operating Earnings (Loss), Operating Earnings (Loss) per diluted common share and Annualized Operating ROE non-GAAP measures. All periods presented reflect the redefined non-GAAP measures and are as previously published except for the year ended December 31, 2010. For a reconciliation of the previously published non-GAAP measures for the year ended December 31, 2010 to the redefined non-GAAP measures, see the Company’s financial supplement as of December 31, 2011. |
48
PartnerRe Ltd.
Reconciliation of GAAP and non-GAAP measures
(in thousands of U.S. dollars or shares, except per share data)
(Unaudited)
June 30, 2012 | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | December 31, 2010 | |||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Reconciliation of GAAP and non-GAAP measures: | ||||||||||||||||||||||||||
Shareholders’ equity | $ | 6,697,593 | $ | 6,786,871 | $ | 6,467,542 | $ | 6,707,683 | $ | 6,632,044 | $ | 7,206,919 | ||||||||||||||
Less: | ||||||||||||||||||||||||||
Preferred shares, aggregate liquidation value | 893,750 | 893,750 | 893,750 | 893,750 | 893,750 | 520,000 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Common shareholders’ equity | 5,803,843 | 5,893,121 | 5,573,792 | 5,813,933 | 5,738,294 | 6,686,919 | ||||||||||||||||||||
Less: | ||||||||||||||||||||||||||
Net unrealized gains on fixed income securities and funds held - directly managed, net of tax | 541,202 | 504,386 | 451,946 | 501,803 | 350,653 | 364,032 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Book value excluding net unrealized gains or losses on fixed income securities and funds held - directly managed, net of tax | $ | 5,262,641 | $ | 5,388,735 | $ | 5,121,846 | $ | 5,312,130 | $ | 5,387,641 | $ | 6,322,887 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Divided by: | ||||||||||||||||||||||||||
Number of common shares and common share equivalents outstanding | 63,164.5 | 65,751.6 | 65,715.7 | 68,188.1 | 68,552.0 | 71,312.3 | ||||||||||||||||||||
Equals: | ||||||||||||||||||||||||||
Diluted book value per common share and common share equivalents outstanding, excluding net unrealized gains or losses on fixed income securities and funds held - directly managed, net of tax | $ | 83.32 | $ | 81.96 | $ | 77.94 | $ | 77.90 | $ | 78.59 | $ | 88.66 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
49
PartnerRe Ltd.
Diluted Book Value per Common Share - Treasury Stock Method(1)
(in thousands of U.S. dollars or shares, except per share data)
(Unaudited)
June 30, 2012 | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | December 31, 2010 | |||||||||||||||||||||
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Basic book value per common share | ||||||||||||||||||||||||||
Total shareholders’ equity | $ | 6,697,593 | $ | 6,786,871 | $ | 6,467,542 | $ | 6,707,683 | $ | 6,632,044 | $ | 7,206,919 | ||||||||||||||
Less: preferred shares, aggregate liquidation value | (893,750 | ) | (893,750 | ) | (893,750 | ) | (893,750 | ) | (893,750 | ) | (520,000 | ) | ||||||||||||||
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Common shareholders’ equity | $ | 5,803,843 | $ | 5,893,121 | $ | 5,573,792 | $ | 5,813,933 | $ | 5,738,294 | $ | 6,686,919 | ||||||||||||||
Basic common shares outstanding | 62,557.5 | 65,313.0 | 65,322.3 | 67,749.4 | 67,737.8 | 69,986.2 | ||||||||||||||||||||
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Basic book value per common share | $ | 92.78 | $ | 90.23 | $ | 85.33 | $ | 85.82 | $ | 84.71 | $ | 95.55 | ||||||||||||||
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Diluted book value per common share | ||||||||||||||||||||||||||
Common shareholders’ equity | $ | 5,803,843 | $ | 5,893,121 | $ | 5,573,792 | $ | 5,813,933 | $ | 5,738,294 | $ | 6,686,919 | ||||||||||||||
Basic common shares outstanding | 62,557.5 | 65,313.0 | 65,322.3 | 67,749.4 | 67,737.8 | 69,986.2 | ||||||||||||||||||||
Add: Stock options and other | 1,968.6 | 1,099.2 | 809.4 | 688.6 | 2,329.0 | 3,293.4 | ||||||||||||||||||||
Add: Restricted stock units | 877.5 | 780.9 | 489.0 | 573.9 | 647.6 | 940.4 | ||||||||||||||||||||
Less: Stock options and other bought back via treasury stock method | (2,239.1 | ) | (1,441.5 | ) | (905.0 | ) | (823.8 | ) | (2,162.4 | ) | (2,907.7 | ) | ||||||||||||||
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Diluted common shares and common share equivalents outstanding | 63,164.5 | 65,751.6 | 65,715.7 | 68,188.1 | 68,552.0 | 71,312.3 | ||||||||||||||||||||
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Diluted book value per common share | $ | 91.88 | $ | 89.63 | $ | 84.82 | $ | 85.26 | $ | 83.71 | $ | 93.77 | ||||||||||||||
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(1) | This method assumes that proceeds received upon exercise of options will be used to repurchase the Company’s common shares at the average market price. Unvested restricted stock and the dilutive impact of the Company’s forward sale contracts, if any, are also added to determine the diluted common shares and common share equivalents outstanding. |
50
PartnerRe Ltd.
Diluted Book Value per Common Share - Rollforward
(in millions of U.S. dollars, except per share data)
(Unaudited)
As at and for the three months ended June 30, 2012 | As at and for the three months ended June 30, 2011 | |||||||||||||||||
Common shareholders’ equity | Diluted book value per common share | Common shareholders’ equity | Diluted book value per common share | |||||||||||||||
Common shareholders’ equity / diluted book value per common share at beginning of period | $ | 5,893 | $ | 89.63 | $ | 5,655 | $ | 82.5 | ||||||||||
Technical result | 152 | 2.36 | 64 | 0.93 | ||||||||||||||
Other operating expenses | (106 | ) | (1.65 | ) | (114 | ) | (1.66 | ) | ||||||||||
Net investment income | 153 | 2.38 | 158 | 2.31 | ||||||||||||||
Amortization of intangible assets | (9 | ) | (0.14 | ) | (9 | ) | (0.13 | ) | ||||||||||
Other, net | (9 | ) | (0.15 | ) | (10 | ) | (0.15 | ) | ||||||||||
Operating income tax expense | (24 | ) | (0.36 | ) | (13 | ) | (0.19 | ) | ||||||||||
Preferred dividends | (15 | ) | (0.24 | ) | (9 | ) | (0.13 | ) | ||||||||||
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Operating earnings | 142 | 2.20 | 67 | 0.98 | ||||||||||||||
Net realized and unrealized investment gains, net of tax | 18 | 0.29 | 41 | 0.60 | ||||||||||||||
Net foreign exchange gains, net of tax | 2 | 0.02 | 9 | 0.13 | ||||||||||||||
Interest in losses of equity investments, net of tax | (1 | ) | (0.01 | ) | (1 | ) | (0.02 | ) | ||||||||||
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Net income available to common shareholders | 161 | 2.50 | 116 | 1.69 | ||||||||||||||
Common share dividends | (39 | ) | (0.62 | ) | (41 | ) | (0.60 | ) | ||||||||||
Change in currency translation adjustment | (19 | ) | (0.30 | ) | 6 | 0.09 | ||||||||||||
Repurchase of common shares, net | (193 | ) | 0.86 | 16 | (0.13 | ) | ||||||||||||
Preferred shares issuance costs | — | — | (12 | ) | (0.18 | ) | ||||||||||||
Change in other accumulated comprehensive income or loss, net of tax | 1 | 0.02 | (2 | ) | (0.02 | ) | ||||||||||||
Impact of change in number of common and common share equivalents outstanding | n/a | (0.21 | ) | n/a | 0.36 | |||||||||||||
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Common shareholders’ equity / diluted book value per common share at end of period | $ | 5,804 | $ | 91.88 | $ | 5,738 | $ | 83.71 | ||||||||||
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51
PartnerRe Ltd.
Diluted Book Value per Common Share - Rollforward
(in millions of U.S. dollars, except per share data)
(Unaudited)
As of and for the six months ended June 30, 2012 | As of and for the six months ended June 30, 2011 | |||||||||||||||||
Common shareholders’ equity | Diluted book value per common share | Common shareholders’ equity | Diluted book value per common share | |||||||||||||||
Common shareholders’ equity / diluted book value per common share at beginning of period | $ | 5,574 | $ | 84.82 | $ | 6,687 | $ | 93.77 | ||||||||||
Technical result | 354 | 5.43 | (687 | ) | (10.13 | ) | ||||||||||||
Other operating expenses | (204 | ) | (3.14 | ) | (218 | ) | (3.21 | ) | ||||||||||
Net investment income | 300 | 4.61 | 310 | 4.57 | ||||||||||||||
Amortization of intangible assets | (18 | ) | (0.27 | ) | (18 | ) | (0.27 | ) | ||||||||||
Other, net | (19 | ) | (0.29 | ) | (21 | ) | (0.31 | ) | ||||||||||
Operating income tax expense | (58 | ) | (0.90 | ) | (17 | ) | (0.26 | )�� | ||||||||||
Preferred dividends | (31 | ) | (0.47 | ) | (17 | ) | (0.25 | ) | ||||||||||
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Operating earnings (loss) | 324 | 4.97 | (668 | ) | (9.86 | ) | ||||||||||||
Net realized and unrealized investment gains (losses), net of tax | 177 | 2.73 | (47 | ) | (0.70 | ) | ||||||||||||
Net foreign exchange (losses) gains, net of tax | — | (0.01 | ) | 16 | 0.24 | |||||||||||||
Interest in earnings (losses) of equity investments, net of tax | 4 | 0.07 | (1 | ) | — | |||||||||||||
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Net income (loss) available to common shareholders | 505 | 7.76 | (700 | ) | (10.32 | ) | ||||||||||||
Common share dividends | (80 | ) | (1.24 | ) | (78 | ) | (1.15 | ) | ||||||||||
Change in currency translation adjustment | (2 | ) | (0.03 | ) | 44 | 0.65 | ||||||||||||
Repurchase of common shares, net | (193 | ) | 0.86 | (201 | ) | 0.19 | ||||||||||||
Preferred shares issuance costs | — | — | (12 | ) | (0.18 | ) | ||||||||||||
Change in other accumulated comprehensive income or loss, net of tax | — | — | (2 | ) | (0.03 | ) | ||||||||||||
Impact of change in number of common and common share equivalents outstanding | n/a | (0.29 | ) | n/a | 0.78 | |||||||||||||
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Common shareholders’ equity / diluted book value per common share at end of period | $ | 5,804 | $ | 91.88 | $ | 5,738 | $ | 83.71 | ||||||||||
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52
PartnerRe Ltd.
Diluted Book Value per Common Share - Rollforward
(in millions of U.S. dollars, except per share data)
(Unaudited)
As at and for the year ended December 31, 2011 | As at and for the year ended December 31, 2010 | |||||||||||||||||
Common shareholders’ equity | Diluted book value per common share | Common shareholders’ equity | Diluted book value per common share | |||||||||||||||
Common shareholders’ equity / diluted book value per common share at beginning of period | $ | 6,687 | $ | 93.77 | $ | 7,126 | $ | 84.51 | ||||||||||
Technical result | (663 | ) | (9.82 | ) | 520 | 6.65 | ||||||||||||
Other operating expenses | (435 | ) | (6.44 | ) | (540 | ) | (6.90 | ) | ||||||||||
Net investment income | 629 | 9.31 | 673 | 8.60 | ||||||||||||||
Amortization of intangible assets | (36 | ) | (0.54 | ) | (31 | ) | (0.40 | ) | ||||||||||
Other, net | (42 | ) | (0.61 | ) | (33 | ) | (0.43 | ) | ||||||||||
Operating income tax expense | (48 | ) | (0.71 | ) | (62 | ) | (0.79 | ) | ||||||||||
Preferred dividends | (47 | ) | (0.69 | ) | (35 | ) | (0.44 | ) | ||||||||||
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Operating (loss) earnings | (642 | ) | (9.50 | ) | 492 | 6.29 | ||||||||||||
Net realized and unrealized investment gains, net of tax | 15 | 0.23 | 301 | 3.86 | ||||||||||||||
Net foreign exchange gains, net of tax | 67 | 0.98 | 13 | 0.16 | ||||||||||||||
Interest in (losses) earnings of equity investments, net of tax | (7 | ) | (0.11 | ) | 12 | 0.15 | ||||||||||||
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Net (loss) income available to common shareholders | (567 | ) | (8.40 | ) | 818 | 10.46 | ||||||||||||
Common share dividends | (159 | ) | (2.35 | ) | (158 | ) | (2.05 | ) | ||||||||||
Change in currency translation adjustment | (12 | ) | (0.17 | ) | (67 | ) | (0.85 | ) | ||||||||||
Repurchase of common shares, net | (358 | ) | 0.93 | (1,018 | ) | 1.15 | ||||||||||||
Preferred shares issuance costs | (12 | ) | (0.18 | ) | — | — | ||||||||||||
Change in other accumulated comprehensive income or loss, net of tax | (5 | ) | (0.07 | ) | (14 | ) | (0.18 | ) | ||||||||||
Impact of change in number of common and common share equivalents outstanding | n/a | 1.29 | n/a | 0.73 | ||||||||||||||
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Common shareholders’ equity / diluted book value per common share at end of period | $ | 5,574 | $ | 84.82 | $ | 6,687 | $ | 93.77 | ||||||||||
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