001-14536 | Not Applicable | |
(Commission File Number) | (IRS Employer Identification No.) | |
Wellesley House, 90 Pitts Bay Road, Pembroke, Bermuda | HM 08 | |
(Address of Principal Executive Offices) | (Zip Code) |
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition |
Item 8.01 | Other Events |
Item 9.01 | Financial Statements and Exhibits |
(d) | Exhibits. |
Exhibit No. | Description | |
99.1 | Press Release of PartnerRe Ltd., dated July 28, 2014 | |
99.2 | Financial Supplement | |
99.3 | Press Release of PartnerRe Ltd., dated July 28, 2014 |
PartnerRe Ltd. | ||||||||
(Registrant) | ||||||||
Date: | July 28, 2014 | By: | /s/ Marc Wetherhill | |||||
Name: Marc Wetherhill | ||||||||
Title: Chief Legal Counsel |
Exhibit No. | Description | ||
99.1 | Press Release of PartnerRe Ltd., dated July 28, 2014 | ||
99.2 | Financial Supplement | ||
99.3 | Press Release of PartnerRe Ltd., dated July 28, 2014 |
• | Second Quarter Operating Earnings per share of $2.60; Net Income per share of $5.02 |
• | Second Quarter Annualized Operating ROE of 9.5%; Annualized Net Income ROE of 18.4% |
• | Half Year Operating Earnings per share of $5.97; Net Income per share of $10.64 |
• | Half Year Annualized Operating ROE of 10.9%; Annualized Net Income ROE of 19.5% |
• | Book Value of $118.96 per share, up 4.2% for the quarter and up 8.9% year-to-date |
• | Tangible Book Value of $107.80 per share, up 4.6% for the quarter and up 9.5% year-to-date |
PartnerRe Ltd. Wellesley House, 5th Floor 90 Pitts Bay Road Pembroke, Bermuda HM 08 | Telephone +1 441 292 0888 Fax +1 441 292 6080 www.partnerre.com |
• | For the second quarter, net premiums written of $1.4 billion were up 8%, or 7% on a constant foreign exchange basis. The increase was driven by the Life and Health segment and the North America and Global Specialty Non-life sub-segments. The increase was primarily driven by PartnerRe Health's accident and health business in the Life and Health segment and new business written at the January 1 renewals across multiple lines of business in the North America and Global Specialty Non-life sub-segments. These increases were partially offset by decreases in the Catastrophe and Global (Non-U.S.) P&C Non-life sub-segments. For the first six months of 2014, net premiums written of $3.2 billion were up 7% primarily due to the same factors describing the second quarter. |
• | For the second quarter, net premiums earned of $1.4 billion were up 12%, or 11% on a constant foreign exchange basis. The increase was primarily driven by PartnerRe Health's business in the Life and Health segment and the earning of new business written in 2013 and 2014 in the North America and Global Specialty Non-life sub-segments. For the first six months of 2014, net premiums earned of $2.6 billion were up 11%, or 10% on a constant foreign exchange basis, primarily due to the same factors describing the second quarter. |
• | For the second quarter, the Non-life combined ratio was 91.5%. The combined ratio benefited from favorable prior year development of 15.4 points (or $161 million). Except for the Catastrophe sub-segment, all other Non-life sub-segments experienced net favorable development on prior accident years during the second quarter. For the first six months of 2014, the Non-life combined ratio was 87.8%. The combined ratio benefited from favorable prior year development of 16.0 points (or $325 million). All Non-life sub-segments experienced net favorable development on prior accident years during the first six months of 2014. |
• | For the second quarter, net investment income of $130 million was up 4%, or 3% on a constant foreign exchange basis, primarily driven by the impact of a rise in the U.S. Consumer Price Index on our Treasury Inflation Protected Securities portfolio and certain other one-time favorable adjustments, partially offset by lower reinvestment rates. For the first six months of 2014, net |
PartnerRe Ltd. Wellesley House, 5th Floor 90 Pitts Bay Road Pembroke, Bermuda HM 08 | Telephone +1 441 292 0888 Fax +1 441 292 6080 www.partnerre.com |
• | For the second quarter and first six months of 2014, pre-tax net realized and unrealized investment gains were $166 million and $308 million, respectively, primarily reflecting decreases in longer-term risk-free interest rates, narrowing credit spreads, and improvements in worldwide equity markets. |
• | For the second quarter, the effective tax rate on operating earnings and non-operating earnings was 16% and 28%, respectively. For the first six months of 2014, the effective tax rate on operating earnings and non-operating earnings was 15% and 24%, respectively. |
• | Total investments, cash and funds held – directly managed were $17.5 billion at June 30, 2014, comparable to December 31, 2013. |
• | Net Non-life loss and loss expense reserves were $10.2 billion at June 30, 2014, down 2% compared to December 31, 2013. |
• | Net policy benefits for life and annuity contracts were $2.1 billion at June 30, 2014, up 7% compared to December 31, 2013. |
• | Total capital was $7.7 billion at June 30, 2014, up 3% compared to December 31, 2013 primarily driven by net income for the first six months of 2014, which was partially offset by share repurchases and common and preferred dividend payments. |
• | The Company repurchased approximately 1.3 million common shares at a total cost of approximately $133 million during the second quarter of 2014. The average repurchase price of $105.12 per share represents an 8% discount to the diluted book value per share at March 31, 2014. Since July 1, 2014, the Company has repurchased 150 thousand common shares at a total cost of approximately $16 million. As of July 28, 2014, approximately 1.7 million common shares remained under the current repurchase authorization. |
• | Total shareholders’ equity attributable to PartnerRe was $6.9 billion at June 30, 2014, up 3% compared to December 31, 2013. The increase was driven by the same factors described above for total capital. |
• | Book value per common share was $118.96 at June 30, 2014, a record high for PartnerRe, up 8.9% compared to $109.26 at December 31, 2013. Tangible book value per common share was $107.80 at June 30, 2014, up 9.5% compared to $98.49 at December 31, 2013. The increases were primarily driven by net income and the accretive impact of share repurchases, which was partially offset by common and preferred dividend payments. |
PartnerRe Ltd. Wellesley House, 5th Floor 90 Pitts Bay Road Pembroke, Bermuda HM 08 | Telephone +1 441 292 0888 Fax +1 441 292 6080 www.partnerre.com |
• | For the second quarter, the Non-life segment’s net premiums written were up 3%. The increase was reported in the North America and Global Specialty sub-segments and was partially offset by decreases in the Global (Non-U.S.) P&C and Catastrophe sub-segments. For the first six months of 2014, the Non-life segment’s net premiums written were up 4% due to the same factors describing the second quarter. |
• | For the second quarter, the North America sub-segment’s net premiums written were up 9% primarily driven by new business written in the agriculture, multi-line and credit/surety lines of business at the January 1, 2014 renewals. The increases were partially offset by cancellations and renewal decreases in the property line of business. This sub-segment reported a technical ratio of 87.6%, which included 17.3 points (or $68 million) of net favorable prior year loss development. For the first six months of 2014, the North America sub-segment’s net premiums written were up 14% primarily due to the same factors describing the second quarter and due to the restructuring of a significant treaty in the agriculture line of business. This sub-segment reported a technical ratio of 90.2%, which included 12.0 points (or $92 million) of net favorable prior year loss development. |
• | For the second quarter, the Global (Non-U.S.) P&C sub-segment’s net premiums written were down 6%, or 7% on a constant foreign exchange basis, primarily due to downward prior year premium adjustments in the motor line of business and cancellations in the property line of business. These decreases were partially offset by new business written in the motor line of business. This sub-segment reported a technical ratio of 82.5%, which included 16.2 points (or $30 million) of net favorable prior year loss development. For the first six months of 2014, the Global (Non-U.S.) P&C sub-segment’s net premiums written were down 3%, or 4% on a constant foreign exchange basis, primarily driven by cancellations due to pricing, increased retentions, and share decreases in the property line of business. This sub-segment reported a technical ratio of 82.5%, which included 21.0 points (or $77 million) of net favorable prior year loss development. |
• | For the second quarter, the Global Specialty sub-segment’s net premiums written were up 6%, or 4% on a constant foreign exchange basis, primarily due to new business written in prior periods in the specialty casualty, multi-line and agriculture lines of business. These increases were partially offset by lower premium adjustments in the engineering line of business and cancellations in the marine line of business. This sub-segment reported a technical ratio of 90.7%, which included 17.1 points (or $69 million) of net favorable prior year loss development and 4.5 points (or $18 million) of net adverse prior quarter development. For the first six months of 2014, the Global Specialty sub-segment’s net premiums written were up 7%, or 6% on a constant foreign exchange basis, primarily due to the same factors describing the second quarter. This sub-segment reported a technical ratio of 85.3%, which included 16.9 points (or $128 million) of net favorable prior year loss development. |
• | For the second quarter, the Catastrophe sub-segment’s net premiums written were down 9%, or 8% on a constant foreign exchange basis, primarily due to the impact of reinstatement premiums |
PartnerRe Ltd. Wellesley House, 5th Floor 90 Pitts Bay Road Pembroke, Bermuda HM 08 | Telephone +1 441 292 0888 Fax +1 441 292 6080 www.partnerre.com |
• | For the second quarter, the Life and Health segment’s net premiums written were up 34%, or 29% on a constant foreign exchange basis. The increase was primarily driven by PartnerRe Health’s accident and health line of business and, to a lesser extent, the mortality and longevity lines of business. For the first six months of 2014, the Life and Health segment’s net premiums written were up 23%, or 20% on a constant foreign exchange basis, primarily due to the same factors describing the second quarter. |
• | For the second quarter, the Life and Health segment’s allocated underwriting result, which includes allocated investment income and operating expenses, decreased to $18 million compared to $19 million in the same period of 2013 primarily due to a lower level of net favorable prior year loss development, which was partially offset by increased profitability from the PartnerRe Health business. For the first six months of 2014, the Life and Health segment’s allocated underwriting result, which includes allocated investment income and operating expenses, decreased to $32 million compared to $35 million in the same period of 2013 primarily due to the same factors describing the second quarter. |
• | For the second quarter, investment and capital markets activities contributed income of $290 million to pre-tax net income, excluding investment income allocated to the Life and Health segment. Of this amount, income of $119 million was included in pre-tax operating earnings and income of $171 million related to net realized and unrealized gains on investments and earnings from equity method investee companies was included in pre-tax non-operating earnings. For the first six months of 2014, investment and capital markets activities contributed income of $538 million to pre-tax net income, excluding investment income allocated to the Life and Health segment. Of this amount, income of $219 million was included in pre-tax operating earnings and income of $319 million related to net realized and unrealized gains on investments and earnings from equity method investee companies was included in pre-tax non-operating earnings. |
PartnerRe Ltd. Wellesley House, 5th Floor 90 Pitts Bay Road Pembroke, Bermuda HM 08 | Telephone +1 441 292 0888 Fax +1 441 292 6080 www.partnerre.com |
PartnerRe Ltd. Wellesley House, 5th Floor 90 Pitts Bay Road Pembroke, Bermuda HM 08 | Telephone +1 441 292 0888 Fax +1 441 292 6080 www.partnerre.com |
PartnerRe Ltd. Wellesley House, 5th Floor 90 Pitts Bay Road Pembroke, Bermuda HM 08 | Telephone +1 441 292 0888 Fax +1 441 292 6080 www.partnerre.com |
Contacts: | PartnerRe Ltd. | Sard Verbinnen & Co. | ||
(441) 292-0888 | (212) 687-8080 | |||
Investor Contact: Robin Sidders | Drew Brown/Daniel Goldstein | |||
Media Contact: Celia Powell |
PartnerRe Ltd. Wellesley House, 5th Floor 90 Pitts Bay Road Pembroke, Bermuda HM 08 | Telephone +1 441 292 0888 Fax +1 441 292 6080 www.partnerre.com |
For the three months ended June 30, 2014 | For the three months ended June 30, 2013 | For the six months ended June 30, 2014 | For the six months ended June 30, 2013 | ||||||||||||
Revenues | |||||||||||||||
Gross premiums written | $ | 1,462,307 | $ | 1,340,582 | $ | 3,334,047 | $ | 3,097,467 | |||||||
Net premiums written | $ | 1,418,665 | $ | 1,309,318 | $ | 3,157,159 | $ | 2,945,750 | |||||||
Increase in unearned premiums | (65,596 | ) | (100,682 | ) | (550,308 | ) | (590,434 | ) | |||||||
Net premiums earned | 1,353,069 | 1,208,636 | 2,606,851 | 2,355,316 | |||||||||||
Net investment income | 129,967 | 124,503 | 246,834 | 248,207 | |||||||||||
Net realized and unrealized investment gains (losses) | 165,717 | (299,215 | ) | 307,888 | (276,272 | ) | |||||||||
Other income | 9,265 | 3,878 | 9,669 | 7,805 | |||||||||||
Total revenues | 1,658,018 | 1,037,802 | 3,171,242 | 2,335,056 | |||||||||||
Expenses | |||||||||||||||
Losses and loss expenses and life policy benefits | 883,846 | 866,843 | 1,633,303 | 1,527,794 | |||||||||||
Acquisition costs | 302,573 | 241,743 | 567,181 | 475,942 | |||||||||||
Other operating expenses (1) | 107,072 | 144,833 | 218,534 | 260,874 | |||||||||||
Interest expense | 12,240 | 12,232 | 24,477 | 24,460 | |||||||||||
Amortization of intangible assets | 7,003 | 7,045 | 14,005 | 14,091 | |||||||||||
Net foreign exchange (gains) losses | (2,023 | ) | 10,584 | (2,693 | ) | 8,543 | |||||||||
Total expenses | 1,310,711 | 1,283,280 | 2,454,807 | 2,311,704 | |||||||||||
Income (loss) before taxes and interest in earnings (losses) of equity method investments | 347,307 | (245,478 | ) | 716,435 | 23,352 | ||||||||||
Income tax expense (benefit) | 78,440 | (74,569 | ) | 140,746 | (32,894 | ) | |||||||||
Interest in earnings (losses) of equity method investments | 4,925 | (3,479 | ) | 10,989 | 3,736 | ||||||||||
Net income (loss) | 273,792 | (174,388 | ) | 586,678 | 59,982 | ||||||||||
Net income attributable to noncontrolling interests | (1,951 | ) | (1,183 | ) | (4,995 | ) | (1,183 | ) | |||||||
Net income (loss) attributable to PartnerRe | 271,841 | (175,571 | ) | 581,683 | 58,799 | ||||||||||
Preferred dividends | 14,184 | 14,796 | 28,367 | 29,494 | |||||||||||
Loss on redemption of preferred shares | — | — | — | 9,135 | |||||||||||
Net income (loss) attributable to PartnerRe common shareholders | $ | 257,657 | $ | (190,367 | ) | $ | 553,316 | $ | 20,170 | ||||||
Operating earnings attributable to PartnerRe common shareholders | $ | 133,508 | $ | 51,055 | $ | 310,418 | $ | 253,144 | |||||||
Comprehensive income (loss) attributable to PartnerRe | $ | 288,630 | $ | (187,445 | ) | $ | 583,023 | $ | 27,858 | ||||||
Earnings and dividends per share data attributable to PartnerRe common shareholders: | |||||||||||||||
Basic operating earnings | $ | 2.66 | $ | 0.90 | $ | 6.09 | $ | 4.41 | |||||||
Net realized and unrealized investment gains (losses), net of tax | 2.46 | (4.07 | ) | 4.70 | (3.79 | ) | |||||||||
Net foreign exchange losses, net of tax | (0.06 | ) | (0.10 | ) | (0.08 | ) | (0.12 | ) | |||||||
Loss on redemption of preferred shares | — | — | — | (0.16 | ) | ||||||||||
Interest in earnings (losses) of equity method investments, net of tax | 0.07 | (0.10 | ) | 0.15 | 0.01 | ||||||||||
Basic net income (loss) | $ | 5.13 | $ | (3.37 | ) | $ | 10.86 | $ | 0.35 | ||||||
Weighted average number of common shares outstanding | 50,241,216 | 56,485,882 | 50,942,980 | 57,449,528 | |||||||||||
Diluted operating earnings (1) | $ | 2.60 | $ | 0.90 | $ | 5.97 | $ | 4.32 | |||||||
Net realized and unrealized investment gains (losses), net of tax | 2.41 | (4.07 | ) | 4.61 | (3.72 | ) | |||||||||
Net foreign exchange losses, net of tax | (0.06 | ) | (0.10 | ) | (0.08 | ) | (0.11 | ) | |||||||
Loss on redemption of preferred shares | — | — | — | (0.16 | ) | ||||||||||
Interest in earnings (losses) of equity method investments, net of tax | 0.07 | (0.10 | ) | 0.14 | 0.01 | ||||||||||
Diluted net income (loss) | $ | 5.02 | $ | (3.37 | ) | $ | 10.64 | $ | 0.34 | ||||||
Weighted average number of common shares and common share equivalents outstanding | 51,328,761 | 56,485,882 | 52,024,451 | 58,534,526 | |||||||||||
Dividends declared per common share | $ | 0.67 | $ | 0.64 | $ | 1.34 | $ | 1.28 | |||||||
(1) Expense and per share impacts, pre-tax, related to the restructuring of the Company's business support operations and Global Non-life operations: | |||||||||||||||
Expense related to restructuring | $ | 2,482 | $ | 43,242 | $ | 1,655 | $ | 43,242 | |||||||
Per share impacts related to restructuring | $ | 0.05 | $ | 0.77 | $ | 0.03 | $ | 0.74 |
June 30, | December 31, | ||||||
2014 | 2013 | ||||||
Assets | |||||||
Investments: | |||||||
Fixed maturities, at fair value | $ | 14,006,770 | $ | 13,593,303 | |||
Short-term investments, at fair value | 31,849 | 13,546 | |||||
Equities, at fair value | 1,253,082 | 1,221,053 | |||||
Other invested assets | 293,127 | 320,981 | |||||
Total investments | 15,584,828 | 15,148,883 | |||||
Funds held – directly managed | 669,713 | 785,768 | |||||
Cash and cash equivalents | 1,208,220 | 1,496,485 | |||||
Accrued investment income | 170,508 | 185,717 | |||||
Reinsurance balances receivable | 3,015,727 | 2,465,713 | |||||
Reinsurance recoverable on paid and unpaid losses | 358,804 | 308,892 | |||||
Funds held by reinsured companies | 863,491 | 843,081 | |||||
Deferred acquisition costs | 755,769 | 644,952 | |||||
Deposit assets | 95,133 | 351,905 | |||||
Net tax assets | 23,231 | 14,133 | |||||
Goodwill | 456,380 | 456,380 | |||||
Intangible assets | 173,085 | 187,090 | |||||
Other assets | 71,584 | 149,296 | |||||
Total assets | $ | 23,446,473 | $ | 23,038,295 | |||
Liabilities | |||||||
Unpaid losses and loss expenses | $ | 10,399,775 | $ | 10,646,318 | |||
Policy benefits for life and annuity contracts | 2,127,412 | 1,974,133 | |||||
Unearned premiums | 2,357,544 | 1,723,767 | |||||
Other reinsurance balances payable | 254,750 | 202,549 | |||||
Deposit liabilities | 74,265 | 328,588 | |||||
Net tax liabilities | 237,302 | 284,442 | |||||
Accounts payable, accrued expenses and other | 217,033 | 291,350 | |||||
Debt related to senior notes | 750,000 | 750,000 | |||||
Debt related to capital efficient notes | 70,989 | 70,989 | |||||
Total liabilities | 16,489,070 | 16,272,136 | |||||
Shareholders’ Equity | |||||||
Common shares (par value $1.00; issued: 2014, 87,107,093 shares; 2013, 86,657,045 shares) | 87,107 | 86,657 | |||||
Preferred shares (par value $1.00; issued and outstanding: 2014 and 2013, 34,150,000 shares; aggregate liquidation value: 2014 and 2013, $853,750) | 34,150 | 34,150 | |||||
Additional paid-in capital | 3,928,468 | 3,901,627 | |||||
Accumulated other comprehensive loss | (10,898 | ) | (12,238 | ) | |||
Retained earnings | 5,891,822 | 5,406,797 | |||||
Common shares held in treasury, at cost (2014, 37,284,611 shares; 2013, 34,213,611 shares) | (3,020,602 | ) | (2,707,461 | ) | |||
Total shareholders’ equity attributable to PartnerRe | 6,910,047 | 6,709,532 | |||||
Noncontrolling interests | 47,356 | 56,627 | |||||
Total shareholders’ equity | 6,957,403 | 6,766,159 | |||||
Total liabilities and shareholders’ equity | $ | 23,446,473 | $ | 23,038,295 | |||
Diluted Book Value Per Common Share and Common Share Equivalents Outstanding (1) (2) | $ | 118.96 | $ | 109.26 | |||
Diluted Tangible Book Value Per Common Share and Common Share Equivalents Outstanding (1) (2) | $ | 107.80 | $ | 98.49 | |||
Number of Common Shares and Common Share Equivalents Outstanding (2) | 50,910,028 | 53,596,034 |
(1) | Excludes the aggregate liquidation value of preferred shares (2014 and 2013, $853,750) and noncontrolling interests (2014, $47,356; 2013, $56,627). |
(2) | Common share and common share equivalents outstanding are calculated using the Treasury Method for all potentially dilutive shares. |
For the three months ended June 30, 2014 | |||||||||||||||||||||||||||||||
North America | Global (Non-U.S.) P&C | Global Specialty | Catastrophe | Total Non-life segment | Life and Health segment | Corporate and Other | Total | ||||||||||||||||||||||||
Gross premiums written | $ | 400 | $ | 155 | $ | 438 | $ | 143 | $ | 1,136 | $ | 326 | $ | — | $ | 1,462 | |||||||||||||||
Net premiums written | $ | 392 | $ | 148 | $ | 432 | $ | 136 | $ | 1,108 | $ | 311 | $ | — | $ | 1,419 | |||||||||||||||
(Increase) decrease in unearned premiums | (2 | ) | 39 | (26 | ) | (77 | ) | (66 | ) | — | — | (66 | ) | ||||||||||||||||||
Net premiums earned | $ | 390 | $ | 187 | $ | 406 | $ | 59 | $ | 1,042 | $ | 311 | $ | — | $ | 1,353 | |||||||||||||||
Losses and loss expenses and life policy benefits | (240 | ) | (103 | ) | (270 | ) | (19 | ) | (632 | ) | (252 | ) | — | (884 | ) | ||||||||||||||||
Acquisition costs | (102 | ) | (52 | ) | (98 | ) | (8 | ) | (260 | ) | (43 | ) | — | (303 | ) | ||||||||||||||||
Technical result | $ | 48 | $ | 32 | $ | 38 | $ | 32 | $ | 150 | $ | 16 | $ | — | $ | 166 | |||||||||||||||
Other income | 1 | 3 | 5 | 9 | |||||||||||||||||||||||||||
Other operating expenses | (61 | ) | (16 | ) | (30 | ) | (107 | ) | |||||||||||||||||||||||
Underwriting result | $ | 90 | $ | 3 | n/a | $ | 68 | ||||||||||||||||||||||||
Net investment income | 15 | 115 | 130 | ||||||||||||||||||||||||||||
Allocated underwriting result (1) | $ | 18 | n/a | n/a | |||||||||||||||||||||||||||
Net realized and unrealized investment gains | 166 | 166 | |||||||||||||||||||||||||||||
Interest expense | (12 | ) | (12 | ) | |||||||||||||||||||||||||||
Amortization of intangible assets | (7 | ) | (7 | ) | |||||||||||||||||||||||||||
Net foreign exchange gains | 2 | 2 | |||||||||||||||||||||||||||||
Income tax expense | (78 | ) | (78 | ) | |||||||||||||||||||||||||||
Interest in earnings of equity method investments | 5 | 5 | |||||||||||||||||||||||||||||
Net income | n/a | $ | 274 | ||||||||||||||||||||||||||||
Loss ratio (2) | 61.5 | % | 54.6 | % | 66.5 | % | 33.4 | % | 60.6 | % | |||||||||||||||||||||
Acquisition ratio (3) | 26.1 | 27.9 | 24.2 | 13.0 | 25.0 | ||||||||||||||||||||||||||
Technical ratio (4) | 87.6 | % | 82.5 | % | 90.7 | % | 46.4 | % | 85.6 | % | |||||||||||||||||||||
Other operating expense ratio (5) | 5.9 | ||||||||||||||||||||||||||||||
Combined ratio (6) | 91.5 | % | |||||||||||||||||||||||||||||
For the three months ended June 30, 2013 | |||||||||||||||||||||||||||||||
North America | Global (Non-U.S.) P&C | Global Specialty | Catastrophe | Total Non-life segment | Life and Health segment | Corporate and Other | Total | ||||||||||||||||||||||||
Gross premiums written | $ | 372 | $ | 160 | $ | 413 | $ | 161 | $ | 1,106 | $ | 233 | $ | 2 | $ | 1,341 | |||||||||||||||
Net premiums written | $ | 360 | $ | 158 | $ | 409 | $ | 149 | $ | 1,076 | $ | 232 | $ | 1 | $ | 1,309 | |||||||||||||||
(Increase) decrease in unearned premiums | (3 | ) | 11 | (37 | ) | (70 | ) | (99 | ) | — | (1 | ) | (100 | ) | |||||||||||||||||
Net premiums earned | $ | 357 | $ | 169 | $ | 372 | $ | 79 | $ | 977 | $ | 232 | $ | — | $ | 1,209 | |||||||||||||||
Losses and loss expenses and life policy benefits | (245 | ) | (106 | ) | (284 | ) | (51 | ) | (686 | ) | (181 | ) | — | (867 | ) | ||||||||||||||||
Acquisition costs | (79 | ) | (34 | ) | (90 | ) | (6 | ) | (209 | ) | (33 | ) | — | (242 | ) | ||||||||||||||||
Technical result | $ | 33 | $ | 29 | $ | (2 | ) | $ | 22 | $ | 82 | $ | 18 | $ | — | $ | 100 | ||||||||||||||
Other income | — | 3 | 1 | 4 | |||||||||||||||||||||||||||
Other operating expenses | (60 | ) | (17 | ) | (68 | ) | (145 | ) | |||||||||||||||||||||||
Underwriting result | $ | 22 | $ | 4 | n/a | $ | (41 | ) | |||||||||||||||||||||||
Net investment income | 15 | 110 | 125 | ||||||||||||||||||||||||||||
Allocated underwriting result (1) | $ | 19 | n/a | n/a | |||||||||||||||||||||||||||
Net realized and unrealized investment losses | (299 | ) | (299 | ) | |||||||||||||||||||||||||||
Interest expense | (12 | ) | (12 | ) | |||||||||||||||||||||||||||
Amortization of intangible assets | (7 | ) | (7 | ) | |||||||||||||||||||||||||||
Net foreign exchange losses | (11 | ) | (11 | ) | |||||||||||||||||||||||||||
Income tax benefit | 75 | 75 | |||||||||||||||||||||||||||||
Interest in losses of equity method investments | (4 | ) | (4 | ) | |||||||||||||||||||||||||||
Net loss | n/a | $ | (174 | ) | |||||||||||||||||||||||||||
Loss ratio (2) | 68.6 | % | 62.9 | % | 76.6 | % | 64.1 | % | 70.3 | % | |||||||||||||||||||||
Acquisition ratio (3) | 22.1 | 19.9 | 24.1 | 8.5 | 21.4 | ||||||||||||||||||||||||||
Technical ratio (4) | 90.7 | % | 82.8 | % | 100.7 | % | 72.6 | % | 91.7 | % | |||||||||||||||||||||
Other operating expense ratio (5) | 6.1 | ||||||||||||||||||||||||||||||
Combined ratio (6) | 97.8 | % |
(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. |
For the six months ended June 30, 2014 | |||||||||||||||||||||||||||||||
North America | Global (Non-U.S.) P&C | Global Specialty | Catastrophe | Total Non-life segment | Life and Health segment | Corporate and Other | Total | ||||||||||||||||||||||||
Gross premiums written | $ | 930 | $ | 519 | $ | 917 | $ | 353 | $ | 2,719 | $ | 615 | $ | — | $ | 3,334 | |||||||||||||||
Net premiums written | $ | 919 | $ | 508 | $ | 822 | $ | 315 | $ | 2,564 | $ | 593 | $ | — | $ | 3,157 | |||||||||||||||
Increase in unearned premiums | (151 | ) | (141 | ) | (61 | ) | (177 | ) | (530 | ) | (20 | ) | — | (550 | ) | ||||||||||||||||
Net premiums earned | $ | 768 | $ | 367 | $ | 761 | $ | 138 | $ | 2,034 | $ | 573 | $ | — | $ | 2,607 | |||||||||||||||
Losses and loss expenses and life policy benefits | (499 | ) | (196 | ) | (471 | ) | 1 | (1,165 | ) | (468 | ) | — | (1,633 | ) | |||||||||||||||||
Acquisition costs | (194 | ) | (107 | ) | (178 | ) | (15 | ) | (494 | ) | (73 | ) | — | (567 | ) | ||||||||||||||||
Technical result | $ | 75 | $ | 64 | $ | 112 | $ | 124 | $ | 375 | $ | 32 | $ | — | $ | 407 | |||||||||||||||
Other income | 2 | 4 | 4 | 10 | |||||||||||||||||||||||||||
Other operating expenses | (126 | ) | (34 | ) | (59 | ) | (219 | ) | |||||||||||||||||||||||
Underwriting result | $ | 251 | $ | 2 | n/a | $ | 198 | ||||||||||||||||||||||||
Net investment income | 30 | 217 | 247 | ||||||||||||||||||||||||||||
Allocated underwriting result (1) | $ | 32 | n/a | n/a | |||||||||||||||||||||||||||
Net realized and unrealized investment gains | 308 | 308 | |||||||||||||||||||||||||||||
Interest expense | (25 | ) | (25 | ) | |||||||||||||||||||||||||||
Amortization of intangible assets | (14 | ) | (14 | ) | |||||||||||||||||||||||||||
Net foreign exchange gains | 3 | 3 | |||||||||||||||||||||||||||||
Income tax expense | (141 | ) | (141 | ) | |||||||||||||||||||||||||||
Interest in earnings of equity method investments | 11 | 11 | |||||||||||||||||||||||||||||
Net income | n/a | $ | 587 | ||||||||||||||||||||||||||||
Loss ratio (2) | 65.0 | % | 53.5 | % | 61.9 | % | (0.9 | )% | 57.3 | % | |||||||||||||||||||||
Acquisition ratio (3) | 25.2 | 29.0 | 23.4 | 11.4 | 24.3 | ||||||||||||||||||||||||||
Technical ratio (4) | 90.2 | % | 82.5 | % | 85.3 | % | 10.5 | % | 81.6 | % | |||||||||||||||||||||
Other operating expense ratio (5) | 6.2 | ||||||||||||||||||||||||||||||
Combined ratio (6) | 87.8 | % | |||||||||||||||||||||||||||||
For the six months ended June 30, 2013 | |||||||||||||||||||||||||||||||
North America | Global (Non-U.S.) P&C | Global Specialty | Catastrophe | Total Non-life segment | Life and Health segment | Corporate and Other | Total | ||||||||||||||||||||||||
Gross premiums written | $ | 819 | $ | 532 | $ | 857 | $ | 399 | $ | 2,607 | $ | 486 | $ | 4 | $ | 3,097 | |||||||||||||||
Net premiums written | $ | 807 | $ | 525 | $ | 771 | $ | 360 | $ | 2,463 | $ | 481 | $ | 2 | $ | 2,946 | |||||||||||||||
Increase in unearned premiums | (117 | ) | (190 | ) | (62 | ) | (195 | ) | (564 | ) | (25 | ) | (2 | ) | (591 | ) | |||||||||||||||
Net premiums earned | $ | 690 | $ | 335 | $ | 709 | $ | 165 | $ | 1,899 | $ | 456 | $ | — | $ | 2,355 | |||||||||||||||
Losses and loss expenses and life policy benefits | (485 | ) | (173 | ) | (469 | ) | (39 | ) | (1,166 | ) | (363 | ) | 1 | (1,528 | ) | ||||||||||||||||
Acquisition costs | (151 | ) | (84 | ) | (165 | ) | (17 | ) | (417 | ) | (59 | ) | — | (476 | ) | ||||||||||||||||
Technical result | $ | 54 | $ | 78 | $ | 75 | $ | 109 | $ | 316 | $ | 34 | $ | 1 | $ | 351 | |||||||||||||||
Other income | — | 6 | 2 | 8 | |||||||||||||||||||||||||||
Other operating expenses | (126 | ) | (35 | ) | (100 | ) | (261 | ) | |||||||||||||||||||||||
Underwriting result | $ | 190 | $ | 5 | n/a | $ | 98 | ||||||||||||||||||||||||
Net investment income | 30 | 218 | 248 | ||||||||||||||||||||||||||||
Allocated underwriting result (1) | $ | 35 | n/a | n/a | |||||||||||||||||||||||||||
Net realized and unrealized investment losses | (276 | ) | (276 | ) | |||||||||||||||||||||||||||
Interest expense | (24 | ) | (24 | ) | |||||||||||||||||||||||||||
Amortization of intangible assets | (14 | ) | (14 | ) | |||||||||||||||||||||||||||
Net foreign exchange losses | (9 | ) | (9 | ) | |||||||||||||||||||||||||||
Income tax benefit | 33 | 33 | |||||||||||||||||||||||||||||
Interest in earnings of equity method investments | 4 | 4 | |||||||||||||||||||||||||||||
Net income | n/a | $ | 60 | ||||||||||||||||||||||||||||
Loss ratio (2) | 70.2 | % | 51.8 | % | 66.1 | % | 23.8 | % | 61.4 | % | |||||||||||||||||||||
Acquisition ratio (3) | 21.9 | 24.9 | 23.3 | 10.5 | 22.0 | ||||||||||||||||||||||||||
Technical ratio (4) | 92.1 | % | 76.7 | % | 89.4 | % | 34.3 | % | 83.4 | % | |||||||||||||||||||||
Other operating expense ratio (5) | 6.6 | ||||||||||||||||||||||||||||||
Combined ratio (6) | 90.0 | % |
Exhibit 99.2 | ||
Page | |
Regulation G | |
Life Value in Force | |
Consolidated Financial Statements | |
Consolidated Statements of Operations | |
Condensed Consolidated Balance Sheets | |
Condensed Consolidated Statements of Cash Flows | |
Consolidated Statements of Comprehensive Income (Loss) | |
Segment Information | |
For the three months ended June 30, 2014 and 2013 | |
For the six months ended June 30, 2014 and 2013 | |
Non-life segment | |
North America sub-segment | |
Global (Non-U.S.) P&C sub-segment | |
Global Specialty sub-segment | |
Catastrophe sub-segment | |
Life and Health segment | |
Corporate and Other | |
Distribution of Premiums | |
Distribution of Premiums by line of business, geography and production source | |
Distribution of Premiums by reinsurance type | |
Investments | |
Investment Portfolio | |
Distribution of Corporate Bonds | |
Distribution of Equities | |
Distribution of Mortgage/Asset-Backed Securities | |
Other Invested Assets including Private Markets and Derivative Exposures | |
Funds Held - Directly Managed Portfolio | |
Distribution of Corporate Bonds - Funds Held - Directly Managed Portfolio | |
Composition of Net Investment Income and Net Realized and Unrealized Investment Gains (Losses) | |
Composition of Net Investment Income and Net Realized and Unrealized Investment Gains (Losses) on Funds Held - Directly Managed Portfolio | |
Loss Reserves | |
Analysis of Unpaid Losses and Loss Expenses | |
Analysis of Policy Benefits for Life and Annuity Contracts | |
Reserve Development | |
Natural Catastrophe Probable Maximum Losses (PMLs) | |
Reconciliation of GAAP and non-GAAP measures | |
Diluted Book Value per Common Share - Treasury Stock Method | |
Diluted Book Value and Diluted Tangible Book Value per Common Share - Rollforward |
PartnerRe Ltd. |
PartnerRe Ltd. |
• | present value of future profits - which is defined as the net present value of shareholders’ projected after-tax cash flows from the in-force business on a best-estimate assumption basis. The discount rates used reflect currency-specific market yields on zero coupon government bonds at given durations and are applied to projected deterministic cash flows and to calculate risk-free investment returns. The best-estimate is defined as median biometric assumptions and does not include any provision for adverse deviation. The Company attributes no value to future new business or renewals of short-term business. Allocated inflated-adjusted expenses are projected on a best estimate basis; |
• | cost of non-hedgeable risks - which is defined as the cost of holding capital for non-hedgeable financial and non-hedgeable non-financial risks, such as a mortality deviation from shocks or changes in trends. The non-hedgeable risk capital has been determined using an internal economic capital model calibrated to a 99.6% Value at Risk (VaR) corresponding to a 1 in 250 year event; |
• | frictional costs - which is defined as the cost of double taxation or investment management charges on assets backing required capital; |
• | time value of options and guarantees (TVOG) - which is defined as the difference between the market value and the intrinsic value of the option calculated using stochastic techniques. The TVOG is significant to the guaranteed minimum death benefit (GMDB) portfolio where the Company covers death claims on savings plans, where the sum reinsured is the difference between the invested premium amount and the current fund value; and |
• | cost of non-economic excess encumbered capital - which is defined as the cost of any encumbered capital in excess of economic capital required by local regulations. |
For the three months ended | |||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
2014 | 2014 | 2013 | 2013 | 2013 | |||||||||||||||
Revenues | |||||||||||||||||||
Gross premiums written | $ | 1,462,307 | $ | 1,871,740 | $ | 1,190,761 | $ | 1,281,477 | $ | 1,340,582 | |||||||||
Net premiums written | $ | 1,418,665 | $ | 1,738,494 | $ | 1,186,002 | $ | 1,264,775 | $ | 1,309,318 | |||||||||
(Increase) decrease in unearned premiums | (65,596 | ) | (484,712 | ) | 235,422 | 156,694 | (100,682 | ) | |||||||||||
Net premiums earned | 1,353,069 | 1,253,782 | 1,421,424 | 1,421,469 | 1,208,636 | ||||||||||||||
Net investment income | 129,967 | 116,867 | 114,351 | 121,811 | 124,503 | ||||||||||||||
Net realized and unrealized investment gains (losses) | 165,717 | 142,172 | 99,419 | 16,118 | (299,215 | ) | |||||||||||||
Other income | 9,265 | 404 | 3,361 | 5,399 | 3,878 | ||||||||||||||
Total revenues | 1,658,018 | 1,513,225 | 1,638,555 | 1,564,797 | 1,037,802 | ||||||||||||||
Expenses | |||||||||||||||||||
Losses and loss expenses and life policy benefits | 883,846 | 749,457 | 879,014 | 750,999 | 866,843 | ||||||||||||||
Acquisition costs | 302,573 | 264,608 | 318,738 | 282,948 | 241,743 | ||||||||||||||
Other operating expenses (1) | 107,072 | 111,462 | 131,125 | 108,467 | 144,833 | ||||||||||||||
Interest expense | 12,240 | 12,238 | 12,236 | 12,233 | 12,232 | ||||||||||||||
Amortization of intangible assets | 7,003 | 7,002 | 6,044 | 7,045 | 7,045 | ||||||||||||||
Net foreign exchange (gains) losses | (2,023 | ) | (670 | ) | 8,382 | 1,279 | 10,584 | ||||||||||||
Total expenses | 1,310,711 | 1,144,097 | 1,355,539 | 1,162,971 | 1,283,280 | ||||||||||||||
Income (loss) before taxes and interest in earnings (losses) of equity method investments | 347,307 | 369,128 | 283,016 | 401,826 | (245,478 | ) | |||||||||||||
Income tax expense (benefit) | 78,440 | 62,305 | 11,078 | 70,232 | (74,569 | ) | |||||||||||||
Interest in earnings (losses) of equity method investments | 4,925 | 6,064 | 3,988 | 5,941 | (3,479 | ) | |||||||||||||
Net income (loss) | 273,792 | 312,887 | 275,926 | 337,535 | (174,388 | ) | |||||||||||||
Net income attributable to noncontrolling interests | (1,951 | ) | (3,044 | ) | (4,138 | ) | (4,112 | ) | (1,183 | ) | |||||||||
Net income (loss) attributable to PartnerRe | 271,841 | 309,843 | 271,788 | 333,423 | (175,571 | ) | |||||||||||||
Preferred dividends | 14,184 | 14,184 | 14,184 | 14,184 | 14,796 | ||||||||||||||
Net income (loss) attributable to PartnerRe common shareholders | $ | 257,657 | $ | 295,659 | $ | 257,604 | $ | 319,239 | $ | (190,367 | ) | ||||||||
Operating earnings attributable to PartnerRe common shareholders | $ | 133,508 | $ | 176,910 | $ | 157,405 | $ | 311,184 | $ | 51,055 | |||||||||
Comprehensive income (loss) attributable to PartnerRe | $ | 288,630 | $ | 294,394 | $ | 265,577 | $ | 347,740 | $ | (187,445 | ) | ||||||||
Earnings and dividends per share data attributable to PartnerRe common shareholders: | |||||||||||||||||||
Basic operating earnings | $ | 2.66 | $ | 3.43 | $ | 2.97 | $ | 5.80 | $ | 0.90 | |||||||||
Net realized and unrealized investment gains (losses), net of tax | 2.46 | 2.24 | 1.73 | (0.02 | ) | (4.07 | ) | ||||||||||||
Net foreign exchange (losses) gains, net of tax | (0.06 | ) | (0.02 | ) | 0.07 | 0.10 | (0.10 | ) | |||||||||||
Interest in earnings (losses) of equity method investments, net of tax | 0.07 | 0.07 | 0.09 | 0.07 | (0.10 | ) | |||||||||||||
Basic net income (loss) | $ | 5.13 | $ | 5.72 | $ | 4.86 | $ | 5.95 | $ | (3.37 | ) | ||||||||
Weighted average number of common shares outstanding | 50,241,216 | 51,652,177 | 53,013,136 | 53,671,245 | 56,485,882 | ||||||||||||||
Diluted operating earnings (1) | $ | 2.60 | $ | 3.36 | $ | 2.91 | $ | 5.70 | $ | 0.90 | |||||||||
Net realized and unrealized investment gains (losses), net of tax | 2.41 | 2.20 | 1.70 | (0.03 | ) | (4.07 | ) | ||||||||||||
Net foreign exchange (losses) gains, net of tax | (0.06 | ) | (0.02 | ) | 0.07 | 0.10 | (0.10 | ) | |||||||||||
Interest in earnings (losses) of equity method investments, net of tax | 0.07 | 0.07 | 0.08 | 0.07 | (0.10 | ) | |||||||||||||
Diluted net income (loss) | $ | 5.02 | $ | 5.61 | $ | 4.76 | $ | 5.84 | $ | (3.37 | ) | ||||||||
Weighted average number of common shares and common share equivalents outstanding | 51,328,761 | 52,727,573 | 54,165,736 | 54,625,151 | 56,485,882 | ||||||||||||||
Dividends declared per common share | $ | 0.67 | $ | 0.67 | $ | 0.64 | $ | 0.64 | $ | 0.64 |
(1) Includes an expense related to the restructuring of the Company’s business support operations and Global Non-life operations. See page 23 for the expense and per share impacts. |
For the six months ended | For the year ended | |||||||||||||||
June 30, | June 30, | December 31, | December 31, | |||||||||||||
2014 | 2013 | 2013 | 2012 | |||||||||||||
Revenues | ||||||||||||||||
Gross premiums written | $ | 3,334,047 | $ | 3,097,467 | $ | 5,569,706 | $ | 4,718,235 | ||||||||
Net premiums written | $ | 3,157,159 | $ | 2,945,750 | $ | 5,396,526 | $ | 4,572,860 | ||||||||
Increase in unearned premiums | (550,308 | ) | (590,434 | ) | (198,316 | ) | (86,921 | ) | ||||||||
Net premiums earned | 2,606,851 | 2,355,316 | 5,198,210 | 4,485,939 | ||||||||||||
Net investment income | 246,834 | 248,207 | 484,367 | 571,338 | ||||||||||||
Net realized and unrealized investment gains (losses) | 307,888 | (276,272 | ) | (160,735 | ) | 493,409 | ||||||||||
Other income | 9,669 | 7,805 | 16,565 | 11,920 | ||||||||||||
Total revenues | 3,171,242 | 2,335,056 | 5,538,407 | 5,562,606 | ||||||||||||
Expenses | ||||||||||||||||
Losses and loss expenses and life policy benefits | 1,633,303 | 1,527,794 | 3,157,808 | 2,804,610 | ||||||||||||
Acquisition costs | 567,181 | 475,942 | 1,077,628 | 936,909 | ||||||||||||
Other operating expenses (1) | 218,534 | 260,874 | 500,466 | 411,374 | ||||||||||||
Interest expense | 24,477 | 24,460 | 48,929 | 48,895 | ||||||||||||
Amortization of intangible assets | 14,005 | 14,091 | 27,180 | 31,799 | ||||||||||||
Net foreign exchange (gains) losses | (2,693 | ) | 8,543 | 18,203 | 175 | |||||||||||
Total expenses | 2,454,807 | 2,311,704 | 4,830,214 | 4,233,762 | ||||||||||||
Income before taxes and interest in earnings of equity method investments | 716,435 | 23,352 | 708,193 | 1,328,844 | ||||||||||||
Income tax expense (benefit) | 140,746 | (32,894 | ) | 48,416 | 204,284 | |||||||||||
Interest in earnings of equity method investments | 10,989 | 3,736 | 13,665 | 9,954 | ||||||||||||
Net income | 586,678 | 59,982 | 673,442 | 1,134,514 | ||||||||||||
Net income attributable to noncontrolling interests | (4,995 | ) | (1,183 | ) | (9,434 | ) | — | |||||||||
Net income attributable to PartnerRe | 581,683 | 58,799 | 664,008 | 1,134,514 | ||||||||||||
Preferred dividends | 28,367 | 29,494 | 57,861 | 61,622 | ||||||||||||
Loss on redemption of preferred shares | — | 9,135 | 9,135 | — | ||||||||||||
Net income attributable to PartnerRe common shareholders | $ | 553,316 | $ | 20,170 | $ | 597,012 | $ | 1,072,892 | ||||||||
Operating earnings attributable to PartnerRe common shareholders | $ | 310,418 | $ | 253,144 | $ | 721,733 | $ | 663,791 | ||||||||
Comprehensive income attributable to PartnerRe | $ | 583,023 | $ | 27,858 | $ | 641,173 | $ | 1,157,755 | ||||||||
Earnings and dividends per share data attributable to PartnerRe common shareholders: | ||||||||||||||||
Basic operating earnings | $ | 6.09 | $ | 4.41 | $ | 13.03 | $ | 10.55 | ||||||||
Net realized and unrealized investment gains (losses), net of tax | 4.70 | (3.79 | ) | (2.30 | ) | 6.23 | ||||||||||
Net foreign exchange (losses) gains, net of tax | (0.08 | ) | (0.12 | ) | 0.05 | 0.13 | ||||||||||
Loss on redemption of preferred shares | — | (0.16 | ) | (0.16 | ) | — | ||||||||||
Interest in earnings of equity method investments, net of tax | 0.15 | 0.01 | 0.16 | 0.14 | ||||||||||||
Basic net income | $ | 10.86 | $ | 0.35 | $ | 10.78 | $ | 17.05 | ||||||||
Weighted average number of common shares outstanding | 50,942,980 | 57,449,528 | 55,378,980 | 62,915,992 | ||||||||||||
Diluted operating earnings (1) | $ | 5.97 | $ | 4.32 | $ | 12.79 | $ | 10.43 | ||||||||
Net realized and unrealized investment gains (losses), net of tax | 4.61 | (3.72 | ) | (2.25 | ) | 6.17 | ||||||||||
Net foreign exchange (losses) gains, net of tax | (0.08 | ) | (0.11 | ) | 0.04 | 0.13 | ||||||||||
Loss on redemption of preferred shares | — | (0.16 | ) | (0.16 | ) | — | ||||||||||
Interest in earnings of equity method investments, net of tax | 0.14 | 0.01 | 0.16 | 0.14 | ||||||||||||
Diluted net income | $ | 10.64 | $ | 0.34 | $ | 10.58 | $ | 16.87 | ||||||||
Weighted average number of common shares and common share equivalents outstanding | 52,024,451 | 58,534,526 | 56,448,105 | 63,615,748 | ||||||||||||
Dividends declared per common share | $ | 1.34 | $ | 1.28 | $ | 2.56 | $ | 2.48 |
(1) Includes an expense related to the restructuring of the Company’s business support operations and Global Non-life operations. See page 24 for the expense and per share impacts. |
June 30, | March 31, | December 31, | September 30, | June 30, | December 31, | ||||||||||||||||||||||||||||||||
2014 | 2014 | 2013 | 2013 | 2013 | 2012 | ||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||
Total investments | $ | 15,584,828 | $ | 15,479,461 | $ | 15,148,883 | $ | 15,107,800 | $ | 14,968,652 | $ | 15,973,230 | |||||||||||||||||||||||||
Funds held - directly managed | 669,713 | 764,386 | 785,768 | 813,497 | 842,415 | 930,741 | |||||||||||||||||||||||||||||||
Cash and cash equivalents | 1,208,220 | 1,269,037 | 1,496,485 | 1,551,062 | 1,261,540 | 1,121,705 | |||||||||||||||||||||||||||||||
Accrued investment income | 170,508 | 190,169 | 185,717 | 175,164 | 172,794 | 184,315 | |||||||||||||||||||||||||||||||
Reinsurance balances receivable | 3,015,727 | 3,064,301 | 2,465,713 | 2,564,015 | 2,477,340 | 1,991,991 | |||||||||||||||||||||||||||||||
Reinsurance recoverable on paid and unpaid losses | 358,804 | 362,149 | 308,892 | 339,169 | 356,011 | 348,086 | |||||||||||||||||||||||||||||||
Funds held by reinsured companies | 863,491 | 849,256 | 843,081 | 831,704 | 782,992 | 805,489 | |||||||||||||||||||||||||||||||
Deferred acquisition costs | 755,769 | 725,584 | 644,952 | 680,972 | 676,084 | 568,391 | |||||||||||||||||||||||||||||||
Goodwill | 456,380 | 456,380 | 456,380 | 456,380 | 456,380 | 456,380 | |||||||||||||||||||||||||||||||
Intangible assets | 173,085 | 180,088 | 187,090 | 193,134 | 200,179 | 214,270 | |||||||||||||||||||||||||||||||
Other assets | 189,948 | 176,692 | 515,334 | 425,310 | 376,193 | 385,834 | |||||||||||||||||||||||||||||||
Total Assets | $ | 23,446,473 | $ | 23,517,503 | $ | 23,038,295 | $ | 23,138,207 | $ | 22,570,580 | $ | 22,980,432 | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||
Unpaid losses and loss expenses | $ | 10,399,775 | $ | 10,529,717 | $ | 10,646,318 | $ | 10,564,542 | $ | 10,336,368 | $ | 10,709,371 | |||||||||||||||||||||||||
Policy benefits for life and annuity contracts | 2,127,412 | 2,118,479 | 1,974,133 | 1,908,575 | 1,799,332 | 1,813,244 | |||||||||||||||||||||||||||||||
Unearned premiums | 2,357,544 | 2,299,250 | 1,723,767 | 1,997,853 | 2,162,112 | 1,534,625 | |||||||||||||||||||||||||||||||
Other reinsurance balances payable | 254,750 | 269,487 | 202,549 | 232,711 | 244,583 | 238,578 | |||||||||||||||||||||||||||||||
Debt obligations | 820,989 | 820,989 | 820,989 | 820,989 | 820,989 | 820,989 | |||||||||||||||||||||||||||||||
Other liabilities | 528,600 | 638,982 | 904,380 | 989,361 | 791,920 | 930,129 | |||||||||||||||||||||||||||||||
Total liabilities | 16,489,070 | 16,676,904 | 16,272,136 | 16,514,031 | 16,155,304 | 16,046,936 | |||||||||||||||||||||||||||||||
Total shareholders’ equity attributable to PartnerRe | 6,910,047 | 6,780,928 | 6,709,532 | 6,571,687 | 6,366,957 | 6,933,496 | |||||||||||||||||||||||||||||||
Noncontrolling interests | 47,356 | 59,671 | 56,627 | 52,489 | 48,319 | — | |||||||||||||||||||||||||||||||
Total shareholders’ equity | 6,957,403 | 6,840,599 | 6,766,159 | 6,624,176 | 6,415,276 | 6,933,496 | |||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 23,446,473 | $ | 23,517,503 | $ | 23,038,295 | $ | 23,138,207 | $ | 22,570,580 | $ | 22,980,432 | |||||||||||||||||||||||||
Diluted Book Value Per Common Share | $ | 118.96 | $ | 114.13 | $ | 109.26 | $ | 105.53 | $ | 99.65 | $ | 100.84 | |||||||||||||||||||||||||
Diluted Tangible Book Value Per Common Share | $ | 107.80 | $ | 103.10 | $ | 98.49 | $ | 94.86 | $ | 89.09 | $ | 90.86 | |||||||||||||||||||||||||
Number of Common Shares and Common Share Equivalents Outstanding | 50,910,028 | 51,935,217 | 53,596,034 | 54,181,672 | 55,325,581 | 59,893,366 | |||||||||||||||||||||||||||||||
Capital Structure: | |||||||||||||||||||||||||||||||||||||
Senior notes (1) | $ | 750,000 | 10 | % | $ | 750,000 | 10 | % | $ | 750,000 | 10 | % | $ | 750,000 | 10 | % | $ | 750,000 | 10 | % | $ | 750,000 | 10 | % | |||||||||||||
Capital efficient notes (2) | 63,384 | 1 | 63,384 | 1 | 63,384 | 1 | 63,384 | 1 | 63,384 | 1 | 63,384 | 1 | |||||||||||||||||||||||||
Preferred shares, aggregate liquidation value | 853,750 | 11 | 853,750 | 11 | 853,750 | 11 | 853,750 | 12 | 853,750 | 12 | 893,750 | 11 | |||||||||||||||||||||||||
Common shareholders’ equity attributable to PartnerRe | 6,056,297 | 78 | 5,927,178 | 78 | 5,855,782 | 78 | 5,717,937 | 77 | 5,513,207 | 77 | 6,039,746 | 78 | |||||||||||||||||||||||||
Total Capital | $ | 7,723,431 | 100 | % | $ | 7,594,312 | 100 | % | $ | 7,522,916 | 100 | % | $ | 7,385,071 | 100 | % | $ | 7,180,341 | 100 | % | $ | 7,746,880 | 100 | % |
(1) | PartnerRe Finance A LLC and PartnerRe Finance B LLC, the issuers of the senior notes, do not meet U.S. GAAP consolidation requirements. Accordingly, the Company shows the related intercompany debt of $250.0 million and $500.0 million, respectively, on its Condensed Consolidated Balance Sheets. |
(2) | PartnerRe Finance II, the issuer of the capital efficient notes, does not meet U.S. GAAP consolidation requirements. Accordingly, the Company shows the related intercompany debt of $71.0 million on its Condensed Consolidated Balance Sheets. |
For the three months ended | ||||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
2014 | 2014 | 2013 | 2013 | 2013 | ||||||||||||||||
Net cash provided by operating activities: | ||||||||||||||||||||
Underwriting operations | $ | 66 | $ | 33 | $ | 133 | $ | 201 | $ | 8 | ||||||||||
Investment income | 176 | 142 | 138 | 161 | 173 | |||||||||||||||
Taxes and foreign exchange | (100 | ) | (96 | ) | (27 | ) | (9 | ) | (65 | ) | ||||||||||
Net cash provided by operating activities | $ | 142 | $ | 79 | $ | 244 | $ | 353 | $ | 116 | ||||||||||
Net cash provided by operating activities | $ | 142 | $ | 79 | $ | 244 | $ | 353 | $ | 116 | ||||||||||
Net cash (used in) provided by investing activities | (15 | ) | (71 | ) | (167 | ) | 95 | 200 | ||||||||||||
Net cash used in financing activities | (189 | ) | (232 | ) | (130 | ) | (169 | ) | (342 | ) | ||||||||||
Effect of foreign exchange rate changes on cash | 1 | (3 | ) | (2 | ) | 10 | 1 | |||||||||||||
(Decrease) increase in cash and cash equivalents | (61 | ) | (227 | ) | (55 | ) | 289 | (25 | ) | |||||||||||
Cash and cash equivalents - beginning of period | 1,269 | 1,496 | 1,551 | 1,262 | 1,287 | |||||||||||||||
Cash and cash equivalents - end of period | $ | 1,208 | $ | 1,269 | $ | 1,496 | $ | 1,551 | $ | 1,262 |
For the six months ended | For the year ended | |||||||||||||||
June 30, | June 30, | December 31, | December 31, | |||||||||||||
2014 | 2013 | 2013 | 2012 | |||||||||||||
Net cash provided by operating activities: | ||||||||||||||||
Underwriting operations | $ | 99 | $ | 3 | $ | 337 | $ | 100 | ||||||||
Investment income | 319 | 339 | 637 | 717 | ||||||||||||
Taxes and foreign exchange | (197 | ) | (111 | ) | (147 | ) | (124 | ) | ||||||||
Net cash provided by operating activities | $ | 221 | $ | 231 | $ | 827 | $ | 693 | ||||||||
Net cash provided by operating activities | $ | 221 | $ | 231 | $ | 827 | $ | 693 | ||||||||
Net cash (used in) provided by investing activities | (86 | ) | 489 | 418 | (219 | ) | ||||||||||
Net cash used in financing activities | (421 | ) | (567 | ) | (866 | ) | (688 | ) | ||||||||
Effect of foreign exchange rate changes on cash | (2 | ) | (13 | ) | (5 | ) | (6 | ) | ||||||||
(Decrease) increase in cash and cash equivalents | (288 | ) | 140 | 374 | (220 | ) | ||||||||||
Cash and cash equivalents - beginning of period | 1,496 | 1,122 | 1,122 | 1,342 | ||||||||||||
Cash and cash equivalents - end of period | $ | 1,208 | $ | 1,262 | $ | 1,496 | $ | 1,122 |
For the three months ended | |||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
2014 | 2014 | 2013 | 2013 | 2013 | |||||||||||||||
Net income (loss) attributable to PartnerRe | $ | 271,841 | $ | 309,843 | $ | 271,788 | $ | 333,423 | $ | (175,571 | ) | ||||||||
Change in currency translation adjustment | 17,020 | (15,223 | ) | (14,866 | ) | 14,432 | (11,514 | ) | |||||||||||
Change in net unrealized gains or losses on investments, net of tax | (222 | ) | (225 | ) | (226 | ) | (229 | ) | (230 | ) | |||||||||
Change in unfunded pension obligation, net of tax | (9 | ) | (1 | ) | 8,881 | 114 | (130 | ) | |||||||||||
Comprehensive income (loss) attributable to PartnerRe | $ | 288,630 | $ | 294,394 | $ | 265,577 | $ | 347,740 | $ | (187,445 | ) |
For the six months ended | For the year ended | |||||||||||||||
June 30, | June 30, | December 31, | December 31, | |||||||||||||
2014 | 2013 | 2013 | 2012 | |||||||||||||
Net income attributable to PartnerRe | $ | 581,683 | $ | 58,799 | $ | 664,008 | $ | 1,134,514 | ||||||||
Change in currency translation adjustment | 1,797 | (31,344 | ) | (31,778 | ) | 28,488 | ||||||||||
Change in net unrealized gains or losses on investments, net of tax | (447 | ) | (463 | ) | (918 | ) | (953 | ) | ||||||||
Change in unfunded pension obligation, net of tax | (10 | ) | 866 | 9,861 | (4,294 | ) | ||||||||||
Comprehensive income attributable to PartnerRe | $ | 583,023 | $ | 27,858 | $ | 641,173 | $ | 1,157,755 |
For the three months ended June 30, 2014 | |||||||||||||||||||||||||||||||
North America | Global (Non-U.S.) P&C | Global Specialty | Catastrophe | Total Non- life segment | Life and Health segment | Corporate and Other | Total | ||||||||||||||||||||||||
Gross premiums written | $ | 400 | $ | 155 | $ | 438 | $ | 143 | $ | 1,136 | $ | 326 | $ | — | $ | 1,462 | |||||||||||||||
Net premiums written | $ | 392 | $ | 148 | $ | 432 | $ | 136 | $ | 1,108 | 311 | $ | — | $ | 1,419 | ||||||||||||||||
(Increase) decrease in unearned premiums | (2 | ) | 39 | (26 | ) | (77 | ) | (66 | ) | — | — | (66 | ) | ||||||||||||||||||
Net premiums earned | $ | 390 | $ | 187 | $ | 406 | $ | 59 | $ | 1,042 | $ | 311 | $ | — | $ | 1,353 | |||||||||||||||
Losses and loss expenses and life policy benefits | (240 | ) | (103 | ) | (270 | ) | (19 | ) | (632 | ) | (252 | ) | — | (884 | ) | ||||||||||||||||
Acquisition costs | (102 | ) | (52 | ) | (98 | ) | (8 | ) | (260 | ) | (43 | ) | — | (303 | ) | ||||||||||||||||
Technical result | $ | 48 | $ | 32 | $ | 38 | $ | 32 | $ | 150 | $ | 16 | $ | — | $ | 166 | |||||||||||||||
Other income | 1 | 3 | 5 | 9 | |||||||||||||||||||||||||||
Other operating expenses | (61 | ) | (16 | ) | (30 | ) | (107 | ) | |||||||||||||||||||||||
Underwriting result | $ | 90 | $ | 3 | n/a | $ | 68 | ||||||||||||||||||||||||
Net investment income | 15 | 115 | 130 | ||||||||||||||||||||||||||||
Allocated underwriting result (1) | $ | 18 | n/a | n/a | |||||||||||||||||||||||||||
Net realized and unrealized investment gains | 166 | 166 | |||||||||||||||||||||||||||||
Interest expense | (12 | ) | (12 | ) | |||||||||||||||||||||||||||
Amortization of intangible assets | (7 | ) | (7 | ) | |||||||||||||||||||||||||||
Net foreign exchange gains | 2 | 2 | |||||||||||||||||||||||||||||
Income tax expense | (78 | ) | (78 | ) | |||||||||||||||||||||||||||
Interest in earnings of equity method investments | 5 | 5 | |||||||||||||||||||||||||||||
Net income | n/a | $ | 274 | ||||||||||||||||||||||||||||
Loss ratio (2) | 61.5 | % | 54.6 | % | 66.5 | % | 33.4 | % | 60.6 | % | |||||||||||||||||||||
Acquisition ratio (3) | 26.1 | 27.9 | 24.2 | 13.0 | 25.0 | ||||||||||||||||||||||||||
Technical ratio (4) | 87.6 | % | 82.5 | % | 90.7 | % | 46.4 | % | 85.6 | % | |||||||||||||||||||||
Other operating expense ratio (5) | 5.9 | ||||||||||||||||||||||||||||||
Combined ratio (6) | 91.5 | % |
(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. |
For the three months ended June 30, 2013 | |||||||||||||||||||||||||||||||
North America | Global (Non-U.S.) P&C | Global Specialty | Catastrophe | Total Non- life segment | Life and Health segment | Corporate and Other | Total | ||||||||||||||||||||||||
Gross premiums written | $ | 372 | $ | 160 | $ | 413 | $ | 161 | $ | 1,106 | $ | 233 | $ | 2 | $ | 1,341 | |||||||||||||||
Net premiums written | $ | 360 | $ | 158 | $ | 409 | $ | 149 | $ | 1,076 | $ | 232 | $ | 1 | $ | 1,309 | |||||||||||||||
(Increase) decrease in unearned premiums | (3 | ) | 11 | (37 | ) | (70 | ) | (99 | ) | — | (1 | ) | (100 | ) | |||||||||||||||||
Net premiums earned | $ | 357 | $ | 169 | $ | 372 | $ | 79 | $ | 977 | $ | 232 | $ | — | $ | 1,209 | |||||||||||||||
Losses and loss expenses and life policy benefits | (245 | ) | (106 | ) | (284 | ) | (51 | ) | (686 | ) | (181 | ) | — | (867 | ) | ||||||||||||||||
Acquisition costs | (79 | ) | (34 | ) | (90 | ) | (6 | ) | (209 | ) | (33 | ) | — | (242 | ) | ||||||||||||||||
Technical result | $ | 33 | $ | 29 | $ | (2 | ) | $ | 22 | $ | 82 | $ | 18 | $ | — | $ | 100 | ||||||||||||||
Other income | — | 3 | 1 | 4 | |||||||||||||||||||||||||||
Other operating expenses | (60 | ) | (17 | ) | (68 | ) | (145 | ) | |||||||||||||||||||||||
Underwriting result | $ | 22 | $ | 4 | n/a | $ | (41 | ) | |||||||||||||||||||||||
Net investment income | 15 | 110 | 125 | ||||||||||||||||||||||||||||
Allocated underwriting result (1) | $ | 19 | n/a | n/a | |||||||||||||||||||||||||||
Net realized and unrealized investment losses | (299 | ) | (299 | ) | |||||||||||||||||||||||||||
Interest expense | (12 | ) | (12 | ) | |||||||||||||||||||||||||||
Amortization of intangible assets | (7 | ) | (7 | ) | |||||||||||||||||||||||||||
Net foreign exchange losses | (11 | ) | (11 | ) | |||||||||||||||||||||||||||
Income tax benefit | 75 | 75 | |||||||||||||||||||||||||||||
Interest in losses of equity method investments | (4 | ) | (4 | ) | |||||||||||||||||||||||||||
Net loss | n/a | $ | (174 | ) | |||||||||||||||||||||||||||
Loss ratio (2) | 68.6 | % | 62.9 | % | 76.6 | % | 64.1 | % | 70.3 | % | |||||||||||||||||||||
Acquisition ratio (3) | 22.1 | 19.9 | 24.1 | 8.5 | 21.4 | ||||||||||||||||||||||||||
Technical ratio (4) | 90.7 | % | 82.8 | % | 100.7 | % | 72.6 | % | 91.7 | % | |||||||||||||||||||||
Other operating expense ratio (5) | 6.1 | ||||||||||||||||||||||||||||||
Combined ratio (6) | 97.8 | % |
For the six months ended June 30, 2014 | |||||||||||||||||||||||||||||||
North America | Global (Non-U.S.) P&C | Global Specialty | Catastrophe | Total Non- life segment | Life and Health segment | Corporate and Other | Total | ||||||||||||||||||||||||
Gross premiums written | $ | 930 | $ | 519 | $ | 917 | $ | 353 | $ | 2,719 | $ | 615 | $ | — | $ | 3,334 | |||||||||||||||
Net premiums written | $ | 919 | $ | 508 | $ | 822 | $ | 315 | $ | 2,564 | $ | 593 | $ | — | $ | 3,157 | |||||||||||||||
Increase in unearned premiums | (151 | ) | (141 | ) | (61 | ) | (177 | ) | (530 | ) | (20 | ) | — | (550 | ) | ||||||||||||||||
Net premiums earned | $ | 768 | $ | 367 | $ | 761 | $ | 138 | $ | 2,034 | $ | 573 | $ | — | $ | 2,607 | |||||||||||||||
Losses and loss expenses and life policy benefits | (499 | ) | (196 | ) | (471 | ) | 1 | (1,165 | ) | (468 | ) | — | (1,633 | ) | |||||||||||||||||
Acquisition costs | (194 | ) | (107 | ) | (178 | ) | (15 | ) | (494 | ) | (73 | ) | — | (567 | ) | ||||||||||||||||
Technical result | $ | 75 | $ | 64 | $ | 112 | $ | 124 | $ | 375 | $ | 32 | $ | — | $ | 407 | |||||||||||||||
Other income | 2 | 4 | 4 | 10 | |||||||||||||||||||||||||||
Other operating expenses | (126 | ) | (34 | ) | (59 | ) | (219 | ) | |||||||||||||||||||||||
Underwriting result | $ | 251 | $ | 2 | n/a | $ | 198 | ||||||||||||||||||||||||
Net investment income | 30 | 217 | 247 | ||||||||||||||||||||||||||||
Allocated underwriting result (1) | $ | 32 | n/a | n/a | |||||||||||||||||||||||||||
Net realized and unrealized investment gains | 308 | 308 | |||||||||||||||||||||||||||||
Interest expense | (25 | ) | (25 | ) | |||||||||||||||||||||||||||
Amortization of intangible assets | (14 | ) | (14 | ) | |||||||||||||||||||||||||||
Net foreign exchange gains | 3 | 3 | |||||||||||||||||||||||||||||
Income tax expense | (141 | ) | (141 | ) | |||||||||||||||||||||||||||
Interest in earnings of equity method investments | 11 | 11 | |||||||||||||||||||||||||||||
Net income | n/a | $ | 587 | ||||||||||||||||||||||||||||
Loss ratio (2) | 65.0 | % | 53.5 | % | 61.9 | % | (0.9 | )% | 57.3 | % | |||||||||||||||||||||
Acquisition ratio (3) | 25.2 | 29.0 | 23.4 | 11.4 | 24.3 | ||||||||||||||||||||||||||
Technical ratio (4) | 90.2 | % | 82.5 | % | 85.3 | % | 10.5 | % | 81.6 | % | |||||||||||||||||||||
Other operating expense ratio (5) | 6.2 | ||||||||||||||||||||||||||||||
Combined ratio (6) | 87.8 | % |
For the six months ended June 30, 2013 | |||||||||||||||||||||||||||||||
North America | Global (Non-U.S.) P&C | Global Specialty | Catastrophe | Total Non- life segment | Life and Health segment | Corporate and Other | Total | ||||||||||||||||||||||||
Gross premiums written | $ | 819 | $ | 532 | $ | 857 | $ | 399 | $ | 2,607 | $ | 486 | $ | 4 | $ | 3,097 | |||||||||||||||
Net premiums written | $ | 807 | $ | 525 | $ | 771 | $ | 360 | $ | 2,463 | $ | 481 | $ | 2 | $ | 2,946 | |||||||||||||||
Increase in unearned premiums | (117 | ) | (190 | ) | (62 | ) | (195 | ) | (564 | ) | (25 | ) | (2 | ) | (591 | ) | |||||||||||||||
Net premiums earned | $ | 690 | $ | 335 | $ | 709 | $ | 165 | $ | 1,899 | $ | 456 | $ | — | $ | 2,355 | |||||||||||||||
Losses and loss expenses and life policy benefits | (485 | ) | (173 | ) | (469 | ) | (39 | ) | (1,166 | ) | (363 | ) | 1 | (1,528 | ) | ||||||||||||||||
Acquisition costs | (151 | ) | (84 | ) | (165 | ) | (17 | ) | (417 | ) | (59 | ) | — | (476 | ) | ||||||||||||||||
Technical result | $ | 54 | $ | 78 | $ | 75 | $ | 109 | $ | 316 | $ | 34 | $ | 1 | $ | 351 | |||||||||||||||
Other income | — | 6 | 2 | 8 | |||||||||||||||||||||||||||
Other operating expenses | (126 | ) | (35 | ) | (100 | ) | (261 | ) | |||||||||||||||||||||||
Underwriting result | $ | 190 | $ | 5 | n/a | $ | 98 | ||||||||||||||||||||||||
Net investment income | 30 | 218 | 248 | ||||||||||||||||||||||||||||
Allocated underwriting result (1) | $ | 35 | n/a | n/a | |||||||||||||||||||||||||||
Net realized and unrealized investment losses | (276 | ) | (276 | ) | |||||||||||||||||||||||||||
Interest expense | (24 | ) | (24 | ) | |||||||||||||||||||||||||||
Amortization of intangible assets | (14 | ) | (14 | ) | |||||||||||||||||||||||||||
Net foreign exchange losses | (9 | ) | (9 | ) | |||||||||||||||||||||||||||
Income tax benefit | 33 | 33 | |||||||||||||||||||||||||||||
Interest in earnings of equity method investments | 4 | 4 | |||||||||||||||||||||||||||||
Net income | n/a | $ | 60 | ||||||||||||||||||||||||||||
Loss ratio (2) | 70.2 | % | 51.8 | % | 66.1 | % | 23.8 | % | 61.4 | % | |||||||||||||||||||||
Acquisition ratio (3) | 21.9 | 24.9 | 23.3 | 10.5 | 22.0 | ||||||||||||||||||||||||||
Technical ratio (4) | 92.1 | % | 76.7 | % | 89.4 | % | 34.3 | % | 83.4 | % | |||||||||||||||||||||
Other operating expense ratio (5) | 6.6 | ||||||||||||||||||||||||||||||
Combined ratio (6) | 90.0 | % |
For the three months ended | |||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
2014 (A) | 2014 | 2013 | 2013 | 2013 | |||||||||||||||
Gross premiums written | $ | 1,136 | $ | 1,583 | $ | 941 | $ | 1,041 | $ | 1,106 | |||||||||
Net premiums written | $ | 1,108 | $ | 1,456 | $ | 937 | $ | 1,026 | $ | 1,076 | |||||||||
Net premiums earned | $ | 1,042 | $ | 992 | $ | 1,162 | $ | 1,173 | $ | 977 | |||||||||
Losses and loss expenses | (632 | ) | (534 | ) | (677 | ) | (557 | ) | (686 | ) | |||||||||
Acquisition costs | (260 | ) | (233 | ) | (276 | ) | (259 | ) | (209 | ) | |||||||||
Technical result | $ | 150 | $ | 225 | $ | 209 | $ | 357 | $ | 82 | |||||||||
Other income | 1 | 1 | — | 2 | — | ||||||||||||||
Other operating expenses | (61 | ) | (65 | ) | (70 | ) | (62 | ) | (60 | ) | |||||||||
Underwriting result | $ | 90 | $ | 161 | $ | 139 | $ | 297 | $ | 22 | |||||||||
Loss ratio (2) | 60.6 | % | 53.8 | % | 58.2 | % | 47.5 | % | 70.3 | % | |||||||||
Acquisition ratio (3) | 25.0 | 23.6 | 23.8 | 22.1 | 21.4 | ||||||||||||||
Technical ratio (4) | 85.6 | % | 77.4 | % | 82.0 | % | 69.6 | % | 91.7 | % | |||||||||
Other operating expense ratio (5) | 5.9 | 6.5 | 6.0 | 5.3 | 6.1 | ||||||||||||||
Combined ratio (6) | 91.5 | % | 83.9 | % | 88.0 | % | 74.9 | % | 97.8 | % |
(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, 2014, net premiums written and net premiums earned include foreign exchange impacts of $2.7 million and $4.7 million, respectively, compared to the three months ended June 30, 2013. |
For the six months ended | For the year ended | |||||||||||||||
June 30, | June 30, | December 31, | December 31, | |||||||||||||
2014 (A) | 2013 | 2013 | 2012 | |||||||||||||
Gross premiums written | $ | 2,719 | $ | 2,607 | $ | 4,590 | $ | 3,910 | ||||||||
Net premiums written | $ | 2,564 | $ | 2,463 | $ | 4,427 | $ | 3,768 | ||||||||
Net premiums earned | $ | 2,034 | $ | 1,899 | $ | 4,235 | $ | 3,684 | ||||||||
Losses and loss expenses | (1,165 | ) | (1,166 | ) | (2,400 | ) | (2,155 | ) | ||||||||
Acquisition costs | (494 | ) | (417 | ) | (953 | ) | (821 | ) | ||||||||
Technical result | $ | 375 | $ | 316 | $ | 882 | $ | 708 | ||||||||
Other income | 2 | — | 3 | 5 | ||||||||||||
Other operating expenses | (126 | ) | (126 | ) | (259 | ) | (257 | ) | ||||||||
Underwriting result | $ | 251 | $ | 190 | $ | 626 | $ | 456 | ||||||||
Loss ratio (2) | 57.3 | % | 61.4 | % | 56.7 | % | 58.5 | % | ||||||||
Acquisition ratio (3) | 24.3 | 22.0 | 22.5 | 22.3 | ||||||||||||
Technical ratio (4) | 81.6 | % | 83.4 | % | 79.2 | % | 80.8 | % | ||||||||
Other operating expense ratio (5) | 6.2 | 6.6 | 6.1 | 7.0 | ||||||||||||
Combined ratio (6) | 87.8 | % | 90.0 | % | 85.3 | % | 87.8 | % |
(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, 2014, net premiums written and net premiums earned include foreign exchange impacts of $0.7 million and $(2.8) million, respectively, compared to the six months ended June 30, 2013. |
For the three months ended | |||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
2014 (A) | 2014 | 2013 | 2013 | 2013 | |||||||||||||||
Gross premiums written | $ | 400 | $ | 530 | $ | 372 | $ | 409 | $ | 372 | |||||||||
Net premiums written | $ | 392 | $ | 527 | $ | 372 | $ | 408 | $ | 360 | |||||||||
Net premiums earned | $ | 390 | $ | 379 | $ | 417 | $ | 425 | $ | 357 | |||||||||
Losses and loss expenses | (240 | ) | (260 | ) | (293 | ) | (197 | ) | (245 | ) | |||||||||
Acquisition costs | (102 | ) | (92 | ) | (98 | ) | (101 | ) | (79 | ) | |||||||||
Technical result | $ | 48 | $ | 27 | $ | 26 | $ | 127 | $ | 33 | |||||||||
Loss ratio (2) | 61.5 | % | 68.6 | % | 70.2 | % | 46.3 | % | 68.6 | % | |||||||||
Acquisition ratio (3) | 26.1 | 24.3 | 23.5 | 23.9 | 22.1 | ||||||||||||||
Technical ratio (4) | 87.6 | % | 92.9 | % | 93.7 | % | 70.2 | % | 90.7 | % | |||||||||
Distribution of Net Premiums Written by Major Lines of Business: | |||||||||||||||||||
Agriculture | 31 | % | 31 | % | 40 | % | 31 | % | 28 | % | |||||||||
Casualty | 38 | 33 | 33 | 37 | 38 | ||||||||||||||
Credit/Surety | 6 | 8 | 4 | 3 | 5 | ||||||||||||||
Motor | 3 | 4 | 4 | 3 | 4 | ||||||||||||||
Multiline | 8 | 9 | 5 | 4 | 5 | ||||||||||||||
Other | 3 | 1 | 1 | 8 | 3 | ||||||||||||||
Property | 11 | 14 | 13 | 14 | 17 | ||||||||||||||
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, 2014, net premiums written and net premiums earned include foreign exchange impacts of $(1.6) million and $(1.3) million, respectively, compared to the three months ended June 30, 2013. |
For the six months ended | For the year ended | |||||||||||||||
June 30, | June 30, | December 31, | December 31, | |||||||||||||
2014 (A) | 2013 | 2013 | 2012 | |||||||||||||
Gross premiums written | $ | 930 | $ | 819 | $ | 1,601 | $ | 1,221 | ||||||||
Net premiums written | $ | 919 | $ | 807 | $ | 1,587 | $ | 1,219 | ||||||||
Net premiums earned | $ | 768 | $ | 690 | $ | 1,533 | $ | 1,176 | ||||||||
Losses and loss expenses | (499 | ) | (485 | ) | (975 | ) | (816 | ) | ||||||||
Acquisition costs | (194 | ) | (151 | ) | (351 | ) | (291 | ) | ||||||||
Technical result | $ | 75 | $ | 54 | $ | 207 | $ | 69 | ||||||||
Loss ratio (2) | 65.0 | % | 70.2 | % | 63.6 | % | 69.4 | % | ||||||||
Acquisition ratio (3) | 25.2 | 21.9 | 22.9 | 24.7 | ||||||||||||
Technical ratio (4) | 90.2 | % | 92.1 | % | 86.5 | % | 94.1 | % | ||||||||
Distribution of Net Premiums Written by Major Lines of Business: | ||||||||||||||||
Agriculture | 31 | % | 25 | % | 30 | % | 19 | % | ||||||||
Casualty | 35 | 39 | 37 | 43 | ||||||||||||
Credit/Surety | 7 | 3 | 3 | 4 | ||||||||||||
Motor | 4 | 4 | 4 | 4 | ||||||||||||
Multiline | 8 | 8 | 6 | 7 | ||||||||||||
Other | 2 | 5 | 5 | 3 | ||||||||||||
Property | 13 | 16 | 15 | 20 | ||||||||||||
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, 2014, net premiums written and net premiums earned include foreign exchange impacts of $(4.3) million and $(3.1) million, respectively, compared to the six months ended June 30, 2013. |
For the three months ended | |||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
2014 (A) | 2014 | 2013 | 2013 | 2013 | |||||||||||||||
Gross premiums written | $ | 155 | $ | 364 | $ | 128 | $ | 157 | $ | 160 | |||||||||
Net premiums written | $ | 148 | $ | 361 | $ | 128 | $ | 157 | $ | 158 | |||||||||
Net premiums earned | $ | 187 | $ | 179 | $ | 213 | $ | 195 | $ | 169 | |||||||||
Losses and loss expenses | (103 | ) | (94 | ) | (110 | ) | (90 | ) | (106 | ) | |||||||||
Acquisition costs | (52 | ) | (54 | ) | (62 | ) | (50 | ) | (34 | ) | |||||||||
Technical result | $ | 32 | $ | 31 | $ | 41 | $ | 55 | $ | 29 | |||||||||
Loss ratio (2) | 54.6 | % | 52.4 | % | 51.5 | % | 46.0 | % | 62.9 | % | |||||||||
Acquisition ratio (3) | 27.9 | % | 30.1 | 29.4 | 25.7 | 19.9 | |||||||||||||
Technical ratio (4) | 82.5 | % | 82.5 | % | 80.9 | % | 71.7 | % | 82.8 | % | |||||||||
Distribution of Net Premiums Written by Major Lines of Business: | |||||||||||||||||||
Casualty | 8 | % | 10 | % | 5 | % | 9 | % | 10 | % | |||||||||
Motor | 37 | 37 | 54 | 35 | 34 | ||||||||||||||
Property | 55 | 53 | 41 | 56 | 56 | ||||||||||||||
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, 2014, net premiums written and net premiums earned include foreign exchange impacts of $1.2 million and $2.8 million, respectively, compared to the three months ended June 30, 2013. |
For the six months ended | For the year ended | |||||||||||||||
June 30, | June 30, | December 31, | December 31, | |||||||||||||
2014 (A) | 2013 | 2013 | 2012 | |||||||||||||
Gross premiums written | $ | 519 | $ | 532 | $ | 818 | $ | 684 | ||||||||
Net premiums written | $ | 508 | $ | 525 | $ | 811 | $ | 681 | ||||||||
Net premiums earned | $ | 367 | $ | 335 | $ | 743 | $ | 678 | ||||||||
Losses and loss expenses | (196 | ) | (173 | ) | (373 | ) | (415 | ) | ||||||||
Acquisition costs | (107 | ) | (84 | ) | (196 | ) | (167 | ) | ||||||||
Technical result | $ | 64 | $ | 78 | $ | 174 | $ | 96 | ||||||||
Loss ratio (2) | 53.5 | % | 51.8 | % | 50.2 | % | 61.3 | % | ||||||||
Acquisition ratio (3) | 29.0 | 24.9 | 26.4 | 24.6 | ||||||||||||
Technical ratio (4) | 82.5 | % | 76.7 | % | 76.6 | % | 85.9 | % | ||||||||
Distribution of Net Premiums Written by Major Lines of Business: | ||||||||||||||||
Casualty | 9 | % | 10 | % | 9 | % | 11 | % | ||||||||
Motor | 37 | 34 | 37 | 28 | ||||||||||||
Property | 54 | 56 | 54 | 61 | ||||||||||||
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, 2014, net premiums written and net premiums earned include foreign exchange impacts of $3.5 million and $0.7 million, respectively, compared to the six months ended June 30, 2013. |
For the three months ended | |||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
2014 (A) | 2014 | 2013 | 2013 | 2013 | |||||||||||||||
Gross premiums written | $ | 438 | $ | 479 | $ | 423 | $ | 396 | $ | 413 | |||||||||
Net premiums written | $ | 432 | $ | 389 | $ | 419 | $ | 389 | $ | 409 | |||||||||
Net premiums earned | $ | 406 | $ | 355 | $ | 415 | $ | 382 | $ | 372 | |||||||||
Losses and loss expenses | (270 | ) | (201 | ) | (223 | ) | (228 | ) | (284 | ) | |||||||||
Acquisition costs | (98 | ) | (79 | ) | (105 | ) | (92 | ) | (90 | ) | |||||||||
Technical result | $ | 38 | $ | 75 | $ | 87 | $ | 62 | $ | (2 | ) | ||||||||
Loss ratio (2) | 66.5 | % | 56.6 | % | 53.8 | % | 59.8 | % | 76.6 | % | |||||||||
Acquisition ratio (3) | 24.2 | 22.4 | 25.2 | 24.0 | 24.1 | ||||||||||||||
Technical ratio (4) | 90.7 | % | 79.0 | % | 79.0 | % | 83.8 | % | 100.7 | % | |||||||||
Distribution of Net Premiums Written by Major Lines of Business: | |||||||||||||||||||
Agriculture | 14 | % | 13 | % | 8 | % | 6 | % | 11 | % | |||||||||
Aviation/Space | 13 | 8 | 16 | 13 | 12 | ||||||||||||||
Credit/Surety | 15 | 19 | 17 | 19 | 18 | ||||||||||||||
Energy | 5 | 3 | 5 | 6 | 6 | ||||||||||||||
Engineering | 9 | 10 | 16 | 14 | 14 | ||||||||||||||
Marine | 15 | 16 | 19 | 19 | 19 | ||||||||||||||
Multiline | 6 | 10 | 3 | 3 | 3 | ||||||||||||||
Other | 1 | 1 | — | — | — | ||||||||||||||
Specialty casualty | 10 | 14 | 8 | 8 | 6 | ||||||||||||||
Specialty property | 12 | 6 | 8 | 12 | 11 | ||||||||||||||
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, 2014, net premiums written and net premiums earned include foreign exchange impacts of $5.1 million and $4.9 million, respectively, compared to the three months ended June 30, 2013. |
For the six months ended | For the year ended | |||||||||||||||
June 30, | June 30, | December 31, | December 31, | |||||||||||||
2014 (A) | 2013 | 2013 | 2012 | |||||||||||||
Gross premiums written | $ | 917 | $ | 857 | $ | 1,676 | $ | 1,505 | ||||||||
Net premiums written | $ | 822 | $ | 771 | $ | 1,579 | $ | 1,415 | ||||||||
Net premiums earned | $ | 761 | $ | 709 | $ | 1,506 | $ | 1,373 | ||||||||
Losses and loss expenses | (471 | ) | (469 | ) | (920 | ) | (821 | ) | ||||||||
Acquisition costs | (178 | ) | (165 | ) | (362 | ) | (321 | ) | ||||||||
Technical result | $ | 112 | $ | 75 | $ | 224 | $ | 231 | ||||||||
Loss ratio (2) | 61.9 | % | 66.1 | % | 61.1 | % | 59.8 | % | ||||||||
Acquisition ratio (3) | 23.4 | 23.3 | 24.0 | 23.4 | ||||||||||||
Technical ratio (4) | 85.3 | % | 89.4 | % | 85.1 | % | 83.2 | % | ||||||||
Distribution of Net Premiums Written by Major Lines of Business: | ||||||||||||||||
Agriculture | 13 | % | 10 | % | 9 | % | 6 | % | ||||||||
Aviation/Space | 11 | 11 | 13 | 15 | ||||||||||||
Credit/Surety | 17 | 19 | 19 | 19 | ||||||||||||
Energy | 4 | 5 | 5 | 7 | ||||||||||||
Engineering | 9 | 13 | 14 | 12 | ||||||||||||
Marine | 16 | 20 | 19 | 22 | ||||||||||||
Multiline | 8 | 3 | 3 | — | ||||||||||||
Other | 1 | — | — | — | ||||||||||||
Specialty casualty | 12 | 10 | 9 | 7 | ||||||||||||
Specialty property | 9 | 9 | 9 | 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, 2014, net premiums written and net premiums earned include foreign exchange impacts of $5.4 million and $4.2 million, respectively, compared to the six months ended June 30, 2013. |
For the three months ended | |||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
2014 (A) | 2014 | 2013 | 2013 | 2013 | |||||||||||||||
Gross premiums written | $ | 143 | $ | 210 | $ | 18 | $ | 79 | $ | 161 | |||||||||
Net premiums written | $ | 136 | $ | 179 | $ | 18 | $ | 72 | $ | 149 | |||||||||
Net premiums earned | $ | 59 | $ | 79 | $ | 117 | $ | 171 | $ | 79 | |||||||||
Losses and loss expenses | (19 | ) | 21 | (51 | ) | (42 | ) | (51 | ) | ||||||||||
Acquisition costs | (8 | ) | (8 | ) | (11 | ) | (16 | ) | (6 | ) | |||||||||
Technical result | $ | 32 | $ | 92 | $ | 55 | $ | 113 | $ | 22 | |||||||||
Loss ratio (2) | 33.4 | % | (26.5 | )% | 43.2 | % | 24.5 | % | 64.1 | % | |||||||||
Acquisition ratio (3) | 13.0 | 10.1 | 9.5 | 9.0 | 8.5 | ||||||||||||||
Technical ratio (4) | 46.4 | % | (16.4 | )% | 52.7 | % | 33.5 | % | 72.6 | % |
(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, 2014, net premiums written and net premiums earned include foreign exchange impacts of $(1.9) million and $(1.6) million, respectively, compared to the three months ended June 30, 2013. |
For the six months ended | For the year ended | |||||||||||||||
June 30, | June 30, | December 31, | December 31, | |||||||||||||
2014 (A) | 2013 | 2013 | 2012 | |||||||||||||
Gross premiums written | $ | 353 | $ | 399 | $ | 495 | $ | 500 | ||||||||
Net premiums written | $ | 315 | $ | 360 | $ | 450 | $ | 453 | ||||||||
Net premiums earned | $ | 138 | $ | 165 | $ | 453 | $ | 457 | ||||||||
Losses and loss expenses | 1 | (39 | ) | (132 | ) | (103 | ) | |||||||||
Acquisition costs | (15 | ) | (17 | ) | (44 | ) | (42 | ) | ||||||||
Technical result | $ | 124 | $ | 109 | $ | 277 | $ | 312 | ||||||||
Loss ratio (2) | (0.9 | )% | 23.8 | % | 29.0 | % | 22.4 | % | ||||||||
Acquisition ratio (3) | 11.4 | 10.5 | 9.7 | 9.3 | ||||||||||||
Technical ratio (4) | 10.5 | % | 34.3 | % | 38.7 | % | 31.7 | % |
(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, 2014, net premiums written and net premiums earned include foreign exchange impacts of $(4.0) million and $(4.7) million, respectively, compared to the six months ended June 30, 2013. |
For the three months ended | |||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
2014 (A) | 2014 | 2013 | 2013 | 2013 | |||||||||||||||
Gross premiums written | $ | 326 | $ | 289 | $ | 250 | $ | 235 | $ | 233 | |||||||||
Net premiums written | $ | 311 | $ | 282 | $ | 249 | $ | 234 | $ | 232 | |||||||||
Net premiums earned | $ | 311 | $ | 262 | $ | 258 | $ | 243 | $ | 232 | |||||||||
Life policy benefits | (252 | ) | (215 | ) | (202 | ) | (195 | ) | (181 | ) | |||||||||
Acquisition costs | (43 | ) | (32 | ) | (42 | ) | (24 | ) | (33 | ) | |||||||||
Technical result | $ | 16 | $ | 15 | $ | 14 | $ | 24 | $ | 18 | |||||||||
Other income | 3 | 1 | 3 | 3 | 3 | ||||||||||||||
Other operating expenses | (16 | ) | (17 | ) | (19 | ) | (17 | ) | (17 | ) | |||||||||
Underwriting result | $ | 3 | $ | (1 | ) | $ | (2 | ) | $ | 10 | $ | 4 | |||||||
Net investment income | 15 | 15 | 15 | 15 | 15 | ||||||||||||||
Allocated underwriting result (1) | $ | 18 | $ | 14 | $ | 13 | $ | 25 | $ | 19 | |||||||||
Distribution of Net Premiums Written by Major Lines of Business: | |||||||||||||||||||
Accident and Health | 27 | % | 16 | % | 15 | % | 17 | % | 14 | % | |||||||||
Longevity | 22 | 25 | 27 | 26 | 26 | ||||||||||||||
Mortality | 51 | 59 | 58 | 57 | 60 | ||||||||||||||
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, 2014, net premiums written and net premiums earned include foreign exchange impacts of $11.7 million and $11.4 million, respectively, compared to the three months ended June 30, 2013. |
For the six months ended | For the year ended | |||||||||||||||
June 30, | June 30, | December 31, | December 31, | |||||||||||||
2014 (A) | 2013 | 2013 | 2012 | |||||||||||||
Gross premiums written | $ | 615 | $ | 486 | $ | 972 | $ | 802 | ||||||||
Net premiums written | $ | 593 | $ | 481 | $ | 964 | $ | 799 | ||||||||
Net premiums earned | $ | 573 | $ | 456 | $ | 957 | $ | 795 | ||||||||
Life policy benefits | (468 | ) | (363 | ) | (760 | ) | (647 | ) | ||||||||
Acquisition costs | (73 | ) | (59 | ) | (125 | ) | (116 | ) | ||||||||
Technical result | $ | 32 | $ | 34 | $ | 72 | $ | 32 | ||||||||
Other income | 4 | 6 | 11 | 4 | ||||||||||||
Other operating expenses | (34 | ) | (35 | ) | (71 | ) | (52 | ) | ||||||||
Underwriting result | $ | 2 | $ | 5 | $ | 12 | $ | (16 | ) | |||||||
Net investment income | 30 | 30 | 61 | 64 | ||||||||||||
Allocated underwriting result (1) | $ | 32 | $ | 35 | $ | 73 | $ | 48 | ||||||||
Distribution of Net Premiums Written by Major Lines of Business: | ||||||||||||||||
Accident and Health | 22 | % | 13 | % | 15 | % | 3 | % | ||||||||
Longevity | 23 | 25 | 26 | 31 | ||||||||||||
Mortality | 55 | 62 | 59 | 66 | ||||||||||||
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, 2014, net premiums written and net premiums earned include foreign exchange impacts of $16.1 million and $15.4 million, respectively, compared to the six months ended June 30, 2013. |
For the three months ended | |||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
2014 (A) | 2014 | 2013 | 2013 | 2013 | |||||||||||||||
Technical result | $ | — | $ | — | $ | 1 | $ | 6 | $ | — | |||||||||
Other income | 5 | (2 | ) | — | — | 1 | |||||||||||||
Corporate expenses - costs of restructuring (1) | (2 | ) | — | (12 | ) | (2 | ) | (43 | ) | ||||||||||
Corporate expenses | (27 | ) | (28 | ) | (28 | ) | (25 | ) | (23 | ) | |||||||||
Other operating expenses | (1 | ) | (1 | ) | (2 | ) | (2 | ) | (2 | ) | |||||||||
Net investment income | 115 | 102 | 99 | 107 | 110 | ||||||||||||||
Net realized and unrealized investment gains (losses) | 166 | 142 | 99 | 16 | (299 | ) | |||||||||||||
Interest expense | (12 | ) | (12 | ) | (12 | ) | (12 | ) | (12 | ) | |||||||||
Amortization of intangible assets | (7 | ) | (7 | ) | (6 | ) | (7 | ) | (7 | ) | |||||||||
Net foreign exchange gains (losses) | 2 | — | (8 | ) | (1 | ) | (11 | ) | |||||||||||
Income tax (expense) benefit | (78 | ) | (62 | ) | (11 | ) | (70 | ) | 75 | ||||||||||
Interest in earnings (losses) of equity method investments | 5 | 6 | 4 | 6 | (4 | ) |
(1) | The costs of restructuring relate to the Company’s reorganization of its business support and Global Non-life operations. During the three months ended June 30, 2014 and the three months ended December 31, 2013, these costs predominantly comprised of facility exit costs, while during the three months ended September 30, 2013 and the three months ended June 30, 2013, these costs predominantly comprised of severance costs related to the Company’s voluntary and involuntary termination plans. For the three months ended June 30, 2014, three months ended December 31, 2013, three months ended September 30, 2013 and three months ended June 30, 2013, these costs had a per diluted share impact, pre-tax, of $0.05, $0.22, $0.04 and $0.77, respectively. |
For the six months ended | For the year ended | |||||||||||||||
June 30, | June 30, | December 31, | December 31, | |||||||||||||
2014 | 2013 | 2013 | 2012 | |||||||||||||
Technical result | $ | — | $ | 1 | $ | 8 | $ | 4 | ||||||||
Other income | 4 | 2 | 3 | 3 | ||||||||||||
Corporate expenses - costs of restructuring (1) | (2 | ) | (43 | ) | (58 | ) | — | |||||||||
Corporate expenses | (55 | ) | (53 | ) | (105 | ) | (88 | ) | ||||||||
Other operating expenses | (2 | ) | (4 | ) | (7 | ) | (14 | ) | ||||||||
Net investment income | 217 | 218 | 423 | 507 | ||||||||||||
Net realized and unrealized investment gains (losses) | 308 | (276 | ) | (161 | ) | 494 | ||||||||||
Interest expense | (25 | ) | (24 | ) | (49 | ) | (49 | ) | ||||||||
Amortization of intangible assets | (14 | ) | (14 | ) | (27 | ) | (32 | ) | ||||||||
Net foreign exchange gains (losses) | 3 | (9 | ) | (18 | ) | — | ||||||||||
Income tax (expense) benefit | (141 | ) | 33 | (49 | ) | (204 | ) | |||||||||
Interest in earnings (losses) of equity method investments | 11 | 4 | 14 | 10 |
(1) | The costs of restructuring relate to the Company’s reorganization of its business support and Global Non-life operations. During the six months ended June 30, 2014, these costs predominantly comprised of facility exit costs. During the six months ended June 30, 2013 and the year ended December 31, 2013, these costs predominantly comprised of severance costs related to the Company's voluntary and involuntary termination plans, and to a lesser extent, facility exit costs. For the six months ended June 30, 2014 and 2013 and the year ended December 31, 2013, these costs had a per diluted share impact, pre-tax, of $0.03, $0.74, and $1.03, respectively. |
For the three months ended | ||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||
2014 | 2014 | 2013 | 2013 | 2013 | ||||||||||
Distribution of Net Premiums Written by Line of Business: | ||||||||||||||
Non-life | ||||||||||||||
Property and casualty | ||||||||||||||
Casualty | 11 | % | 12 | % | 11 | % | 13 | % | 12 | % | ||||
Motor | 5 | 9 | 7 | 5 | 5 | |||||||||
Multiline and other | 5 | 5 | 3 | 5 | 3 | |||||||||
Property | 9 | 15 | 8 | 12 | 11 | |||||||||
Specialty | ||||||||||||||
Agriculture | 13 | 12 | 15 | 12 | 11 | |||||||||
Aviation/Space | 4 | 2 | 6 | 4 | 4 | |||||||||
Catastrophe | 9 | 10 | 1 | 6 | 11 | |||||||||
Credit/Surety | 6 | 7 | 7 | 7 | 7 | |||||||||
Energy | 1 | 1 | 2 | 2 | 2 | |||||||||
Engineering | 3 | 2 | 6 | 4 | 4 | |||||||||
Marine | 5 | 4 | 7 | 6 | 6 | |||||||||
Specialty casualty | 3 | 3 | 3 | 2 | 2 | |||||||||
Specialty property | 4 | 2 | 3 | 4 | 4 | |||||||||
Life and Health | 22 | 16 | 21 | 18 | 18 | |||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||
Distribution of Gross Premiums Written by Geography: | ||||||||||||||
Asia, Australia and New Zealand | 13 | % | 9 | % | 11 | % | 11 | % | 13 | % | ||||
Europe | 35 | 45 | 39 | 35 | 36 | |||||||||
Latin America, Caribbean and Africa | 9 | 8 | 11 | 12 | 10 | |||||||||
North America | 43 | 38 | 39 | 42 | 41 | |||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||
Distribution of Gross Premiums Written by Production Source: | ||||||||||||||
Broker | 69 | % | 71 | % | 67 | % | 72 | % | 72 | % | ||||
Direct | 31 | 29 | 33 | 28 | 28 | |||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
For the six months ended | For the year ended | |||||||||||
June 30, | June 30, | December 31, | December 31, | |||||||||
2014 | 2013 | 2013 | 2012 | |||||||||
Distribution of Net Premiums Written by Line of Business: | ||||||||||||
Non-life | ||||||||||||
Property and casualty | ||||||||||||
Casualty | 12 | % | 13 | % | 12 | % | 13 | % | ||||
Motor | 7 | 7 | 7 | 5 | ||||||||
Multiline and other | 5 | 4 | 4 | 3 | ||||||||
Property | 12 | 15 | 12 | 14 | ||||||||
Specialty | ||||||||||||
Agriculture | 13 | 10 | 11 | 7 | ||||||||
Aviation/Space | 3 | 3 | 4 | 5 | ||||||||
Catastrophe | 10 | 12 | 8 | 10 | ||||||||
Credit/Surety | 6 | 6 | 6 | 7 | ||||||||
Energy | 1 | 1 | 2 | 2 | ||||||||
Engineering | 3 | 3 | 4 | 4 | ||||||||
Marine | 4 | 5 | 6 | 7 | ||||||||
Specialty casualty | 3 | 3 | 3 | 2 | ||||||||
Specialty property | 2 | 2 | 3 | 4 | ||||||||
Life and Health | 19 | 16 | 18 | 17 | ||||||||
100 | % | 100 | % | 100 | % | 100 | % | |||||
Distribution of Gross Premiums Written by Geography: | ||||||||||||
Asia, Australia and New Zealand | 11 | % | 10 | % | 11 | % | 11 | % | ||||
Europe | 41 | 42 | 40 | 41 | ||||||||
Latin America, Caribbean and Africa | 8 | 10 | 10 | 11 | ||||||||
North America | 40 | 38 | 39 | 37 | ||||||||
100 | % | 100 | % | 100 | % | 100 | % | |||||
Distribution of Gross Premiums Written by Production Source: | ||||||||||||
Broker | 70 | % | 71 | % | 71 | % | 69 | % | ||||
Direct | 30 | 29 | 29 | 31 | ||||||||
100 | % | 100 | % | 100 | % | 100 | % |
For the three months ended | ||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||
2014 | 2014 | 2013 | 2013 | 2013 | ||||||||||
Distribution of Gross Premiums Written by Reinsurance Type for the Non-life sub-segment: | ||||||||||||||
North America | ||||||||||||||
Non-Proportional | 11 | % | 24 | % | 7 | % | 14 | % | 17 | % | ||||
Proportional | 89 | 76 | 93 | 86 | 83 | |||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||
Global (Non-U.S.) P&C | ||||||||||||||
Non-Proportional | 8 | % | 37 | % | 4 | % | 10 | % | 10 | % | ||||
Proportional | 92 | 63 | 96 | 90 | 90 | |||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||
Global Specialty | ||||||||||||||
Non-Proportional | 16 | % | 26 | % | 11 | % | 16 | % | 18 | % | ||||
Proportional | 84 | 74 | 89 | 84 | 82 | |||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||
Catastrophe | ||||||||||||||
Non-Proportional | 96 | % | 98 | % | 97 | % | 96 | % | 97 | % | ||||
Proportional | 4 | 2 | 3 | 4 | 3 | |||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||
Non-life total | ||||||||||||||
Non-Proportional | 23 | % | 38 | % | 10 | % | 20 | % | 28 | % | ||||
Proportional | 77 | 62 | 90 | 80 | 72 | |||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
For the six months ended | For the year ended | |||||||||||
June 30, | June 30, | December 31, | December 31, | |||||||||
2014 | 2013 | 2013 | 2012 | |||||||||
Distribution of Gross Premiums Written by Reinsurance Type for the Non-life sub-segment: | ||||||||||||
North America | ||||||||||||
Non-Proportional | 19 | % | 25 | % | 18 | % | 26 | % | ||||
Proportional | 81 | 75 | 82 | 74 | ||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||
Global (Non-U.S.) P&C | ||||||||||||
Non-Proportional | 28 | % | 28 | % | 21 | % | 24 | % | ||||
Proportional | 72 | 72 | 79 | 76 | ||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||
Global Specialty | ||||||||||||
Non-Proportional | 21 | % | 25 | % | 19 | % | 20 | % | ||||
Proportional | 79 | 75 | 81 | 80 | ||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||
Catastrophe | ||||||||||||
Non-Proportional | 97 | % | 98 | % | 98 | % | 98 | % | ||||
Proportional | 3 | 2 | 2 | 2 | ||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||
Non-life total | ||||||||||||
Non-Proportional | 32 | % | 37 | % | 28 | % | 33 | % | ||||
Proportional | 68 | 63 | 72 | 67 | ||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % |
June 30, | March 31, | December 31, | September 30, | June 30, | December 31, | |||||||||||||||||||||||||||||||||||||
2014 | 2014 | 2013 | 2013 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||||||||||||||||||
U.S. government | $ | 1,827 | 12 | % | $ | 1,850 | 12 | % | $ | 1,599 | 11 | % | $ | 1,459 | 10 | % | $ | 960 | 6 | % | $ | 1,113 | 7 | % | ||||||||||||||||||
U.S. government sponsored enterprises | 29 | — | 16 | — | 25 | — | 36 | — | 31 | — | 18 | — | ||||||||||||||||||||||||||||||
U.S. states, territories and municipalities | 221 | 1 | 130 | 1 | 124 | 1 | 306 | 2 | 237 | 2 | 243 | 1 | ||||||||||||||||||||||||||||||
Non-U.S. sovereign government, supranational and government related | 2,289 | 15 | 2,332 | 15 | 2,354 | 15 | 2,344 | 16 | 2,140 | 14 | 2,376 | 15 | ||||||||||||||||||||||||||||||
Corporates | 5,981 | 38 | 5,989 | 39 | 6,049 | 40 | 6,042 | 40 | 6,246 | 42 | 6,656 | 42 | ||||||||||||||||||||||||||||||
Mortgage/asset-backed securities | 3,660 | 24 | 3,581 | 23 | 3,442 | 23 | 3,494 | 23 | 3,766 | 25 | 3,989 | 25 | ||||||||||||||||||||||||||||||
Total fixed maturities | 14,007 | 90 | 13,898 | 90 | 13,593 | 90 | 13,681 | 91 | 13,380 | 89 | 14,395 | 90 | ||||||||||||||||||||||||||||||
Short-term investments | 32 | — | 29 | — | 14 | — | 37 | — | 29 | — | 151 | 1 | ||||||||||||||||||||||||||||||
Equities | 1,253 | 8 | 1,250 | 8 | 1,221 | 8 | 1,122 | 7 | 1,173 | 8 | 1,094 | 7 | ||||||||||||||||||||||||||||||
Other invested assets | 293 | 2 | 302 | 2 | 321 | 2 | 268 | 2 | 387 | 3 | 333 | 2 | ||||||||||||||||||||||||||||||
Total investments | $ | 15,585 | 100 | % | $ | 15,479 | 100 | % | $ | 15,149 | 100 | % | $ | 15,108 | 100 | % | $ | 14,969 | 100 | % | $ | 15,973 | 100 | % | ||||||||||||||||||
Cash and cash equivalents | 1,208 | 1,269 | 1,496 | 1,551 | 1,262 | 1,122 | ||||||||||||||||||||||||||||||||||||
Total investments and cash | $ | 16,793 | $ | 16,748 | $ | 16,645 | $ | 16,659 | $ | 16,231 | $ | 17,095 | ||||||||||||||||||||||||||||||
Maturity distribution: | ||||||||||||||||||||||||||||||||||||||||||
One year or less | $ | 428 | 3 | % | $ | 383 | 3 | % | $ | 378 | 3 | % | $ | 492 | 4 | % | $ | 654 | 5 | $ | 1,081 | 7 | % | |||||||||||||||||||
More than one year through five years | 5,212 | 37 | 5,359 | 38 | 5,057 | 37 | 4,790 | 35 | 4,377 | 33 | 4,198 | 29 | ||||||||||||||||||||||||||||||
More than five years through ten years | 3,790 | 27 | 3,806 | 27 | 3,962 | 29 | 3,883 | 28 | 3,705 | 27 | 4,337 | 30 | ||||||||||||||||||||||||||||||
More than ten years | 949 | 7 | 798 | 6 | 768 | 6 | 1,059 | 8 | 907 | 7 | 941 | 7 | ||||||||||||||||||||||||||||||
Subtotal | 10,379 | 74 | 10,346 | 74 | 10,165 | 75 | 10,224 | 75 | 9,643 | 72 | 10,557 | 73 | ||||||||||||||||||||||||||||||
Mortgage/asset-backed securities | 3,660 | 26 | 3,581 | 26 | 3,442 | 25 | 3,494 | 25 | 3,766 | 28 | 3,989 | 27 | ||||||||||||||||||||||||||||||
Total | $ | 14,039 | 100 | % | $ | 13,927 | 100 | % | $ | 13,607 | 100 | % | $ | 13,718 | 100 | % | $ | 13,409 | 100 | % | $ | 14,546 | 100 | % | ||||||||||||||||||
Credit quality by market value: | ||||||||||||||||||||||||||||||||||||||||||
AAA | 12 | % | 13 | % | 14 | % | 14 | % | 13 | % | 13 | % | ||||||||||||||||||||||||||||||
AA | 43 | 42 | 41 | 39 | 40 | 42 | ||||||||||||||||||||||||||||||||||||
A | 20 | 21 | 21 | 22 | 24 | 23 | ||||||||||||||||||||||||||||||||||||
BBB | 17 | 16 | 16 | 16 | 15 | 15 | ||||||||||||||||||||||||||||||||||||
Below Investment Grade/Unrated | 8 | 8 | 8 | 9 | 8 | 7 | ||||||||||||||||||||||||||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||||||||
Expected average duration (1) | 3.4 | Yrs | 3.2 | Yrs | 3.0 | Yrs | 2.7 | Yrs | 2.6 | Yrs | 2.7 | Yrs | ||||||||||||||||||||||||||||||
Average yield to maturity at market (1) | 2.2 | % | 2.5 | % | 2.5 | % | 2.5 | % | 2.6 | % | 2.0 | % | ||||||||||||||||||||||||||||||
Average credit quality | A | A | A | A | A | A |
June 30, 2014 | |||||||||||||||||||||||
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 | $ | 1,492,225 | 25.0 | % | 8.9 | % | 0.9 | % | |||||||||||||||
Consumer noncyclical | 801,180 | 13.4 | 4.8 | 0.3 | |||||||||||||||||||
Communications | 751,564 | 12.6 | 4.5 | 0.5 | |||||||||||||||||||
Utilities | 575,258 | 9.6 | 3.4 | 0.3 | |||||||||||||||||||
Energy | 511,259 | 8.5 | 3.0 | 0.2 | |||||||||||||||||||
Industrials | 467,203 | 7.8 | 2.8 | 0.2 | |||||||||||||||||||
Consumer cyclical | 353,337 | 5.9 | 2.1 | 0.2 | |||||||||||||||||||
Insurance | 292,811 | 4.9 | 1.7 | 0.2 | |||||||||||||||||||
Basic materials | 183,269 | 3.1 | 1.1 | 0.2 | |||||||||||||||||||
Technology | 156,363 | 2.6 | 0.9 | 0.2 | |||||||||||||||||||
Real estate investment trusts | 142,792 | 2.4 | 0.9 | 0.1 | |||||||||||||||||||
Government guaranteed corporate debt | 118,946 | 2.0 | 0.7 | 0.7 | |||||||||||||||||||
Catastrophe bonds | 95,998 | 1.6 | 0.6 | 0.1 | |||||||||||||||||||
Longevity and mortality bonds | 24,617 | 0.4 | 0.1 | 0.1 | |||||||||||||||||||
Diversified | 13,830 | 0.2 | 0.1 | 0.1 | |||||||||||||||||||
Total Corporate bonds | $ | 5,980,652 | 100.0 | % | 35.6 | % | |||||||||||||||||
Finance sector - Corporate bonds | |||||||||||||||||||||||
Banks | $ | 831,871 | 13.9 | % | 5.0 | % | |||||||||||||||||
Investment banking and brokerage | 326,399 | 5.5 | 2.0 | ||||||||||||||||||||
Financial services | 188,991 | 3.2 | 1.1 | ||||||||||||||||||||
Commercial and consumer finance | 122,717 | 2.0 | 0.7 | ||||||||||||||||||||
Other | 22,247 | 0.4 | 0.1 | ||||||||||||||||||||
Total finance sector - Corporate bonds | $ | 1,492,225 | 25.0 | % | 8.9 | % | |||||||||||||||||
AAA | AA | A | BBB | Non-Investment Grade/Unrated | Total | ||||||||||||||||||
Credit quality of finance sector - Corporate bonds | |||||||||||||||||||||||
Banks | $ | 8,090 | $ | 105,447 | $ | 530,687 | $ | 187,647 | $ | — | $ | 831,871 | |||||||||||
Investment banking and brokerage | — | — | 285,123 | 40,143 | 1,133 | 326,399 | |||||||||||||||||
Financial services | — | 144,256 | 37,461 | 4,193 | 3,081 | 188,991 | |||||||||||||||||
Commercial and consumer finance | — | 514 | 20,276 | 101,927 | — | 122,717 | |||||||||||||||||
Other | — | 5,210 | 13,080 | 3,957 | — | 22,247 | |||||||||||||||||
Total finance sector - Corporate bonds | $ | 8,090 | $ | 255,427 | $ | 886,627 | $ | 337,867 | $ | 4,214 | $ | 1,492,225 | |||||||||||
% of total | 1 | % | 17 | % | 59 | % | 23 | % | — | 100 | % |
June 30, 2014 | ||||||||||||
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 | ||||||||||||
Real estate investment trusts | $ | 224,501 | 22.1 | % | 1.3 | % | 0.2 | % | ||||
Energy | 154,368 | 15.2 | 0.9 | 0.1 | ||||||||
Finance | 127,536 | 12.5 | 0.8 | 0.2 | ||||||||
Insurance | 122,864 | 12.1 | 0.7 | 0.6 | ||||||||
Consumer noncyclical | 100,022 | 9.8 | 0.6 | — | ||||||||
Communications | 80,623 | 7.9 | 0.5 | 0.1 | ||||||||
Technology | 60,074 | 5.9 | 0.4 | 0.1 | ||||||||
Industrials | 49,759 | 4.9 | 0.3 | — | ||||||||
Consumer cyclical | 41,279 | 4.1 | 0.3 | — | ||||||||
Utilities | 35,141 | 3.5 | 0.2 | 0.1 | ||||||||
Basic materials | 17,773 | 1.8 | 0.1 | — | ||||||||
Diversified | 2,079 | 0.2 | — | — | ||||||||
Total | $ | 1,016,019 | 100.0 | % | 6.1 | % | ||||||
Mutual funds and exchange traded funds (ETFs) | ||||||||||||
Funds holding fixed income securities | 190,060 | 1.1 | ||||||||||
Funds and ETFs holding equities | 47,003 | 0.3 | ||||||||||
Total Equities | $ | 1,253,082 | 7.5 | % |
Rating at June 30, 2014 | |||||||||||||||||||||||||||||||
GNMA | GSEs | AAA | AA | A | BBB | Non-Investment Grade/Unrated | Total | ||||||||||||||||||||||||
U.S. Asset-Backed Securities | $ | — | $ | — | $ | 133,189 | $ | 139,043 | $ | 103,803 | $ | 376 | $ | 505,840 | $ | 882,251 | |||||||||||||||
U.S. Collaterized Mortgage Obligations | — | 2,879 | 3,635 | — | — | — | — | 6,514 | |||||||||||||||||||||||
U.S. Mortgage Backed Securities (MBS) | 417,424 | 1,400,138 | — | — | — | — | — | 1,817,562 | |||||||||||||||||||||||
U.S. Commercial Mortgage Backed Securities (CMBS) | 5,609 | — | 8,264 | 12,734 | 14,059 | — | 1,878 | 42,544 | |||||||||||||||||||||||
U.S. MBS Interest Only | 33,907 | 63,767 | 4,129 | — | — | — | 15,964 | 117,767 | |||||||||||||||||||||||
$ | 456,940 | $ | 1,466,784 | $ | 149,217 | $ | 151,777 | $ | 117,862 | $ | 376 | $ | 523,682 | $ | 2,866,638 | ||||||||||||||||
Non-U.S. Asset-Backed Securities | $ | — | $ | — | $ | 161,019 | $ | 78,098 | $ | 56,649 | $ | 15,755 | $ | 20,800 | $ | 332,321 | |||||||||||||||
Non-U.S. Collaterized Mortgage Obligations | — | — | 167,741 | 69,164 | 54,338 | — | — | 291,243 | |||||||||||||||||||||||
Non-U.S. Commercial Mortgage Backed Securities (CMBS) | — | — | 8,544 | — | — | — | — | 8,544 | |||||||||||||||||||||||
Non-U.S. Mortgage Backed Securities (MBS) | — | — | 161,855 | — | — | — | — | 161,855 | |||||||||||||||||||||||
$ | — | $ | — | $ | 499,159 | $ | 147,262 | $ | 110,987 | $ | 15,755 | $ | 20,800 | $ | 793,963 | ||||||||||||||||
Total mortgage/asset-backed securities | $ | 456,940 | $ | 1,466,784 | $ | 648,376 | $ | 299,039 | $ | 228,849 | $ | 16,131 | $ | 544,482 | $ | 3,660,601 | |||||||||||||||
Corporate Securities | — | 28,728 | — | — | — | — | — | 28,728 | |||||||||||||||||||||||
Total | $ | 456,940 | $ | 1,495,512 | $ | 648,376 | $ | 299,039 | $ | 228,849 | $ | 16,131 | $ | 544,482 | $ | 3,689,329 | |||||||||||||||
% of total | 12 | % | 41 | % | 18 | % | 8 | % | 6 | % | — | 15 | % | 100 | % |
(1) | In addition to the mortgage/asset-backed securities above, the Company has derivatives exposure to to-be-announced mortgage-backed securities with a notional value of $154.2 million and a carrying value of $1.7 million at June 30, 2014 within Other Invested Assets. |
June 30, 2014 | March 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||||||
Investments | Fair Value of Derivatives | Carrying Value | Net Notional Amount of Derivatives / Other | Total Net Exposures (1) | Carrying Value | Total Net Exposures (1) | Carrying Value | Total Net Exposures (1) | |||||||||||||||||||||||||||||
Private Markets Investments | |||||||||||||||||||||||||||||||||||||
Principal Finance - Investments | $ | 102,848 | $ | — | $ | 102,848 | $ | — | $ | 102,848 | $ | 102,916 | $ | 102,916 | $ | 112,636 | $ | 112,636 | |||||||||||||||||||
Principal Finance - Derivative Exposure Assumed (2) | — | (9,047 | ) | (9,047 | ) | 42,605 | 33,558 | (6,099 | ) | 36,637 | (931 | ) | 30,809 | ||||||||||||||||||||||||
Insurance-Linked Securities | — | (950 | ) | (950 | ) | 270,969 | 270,019 | (740 | ) | 269,512 | (268 | ) | 268,456 | ||||||||||||||||||||||||
Strategic Investments | 188,373 | — | 188,373 | — | 188,373 | 181,079 | 181,079 | 168,854 | 168,854 | ||||||||||||||||||||||||||||
Total other invested assets - Private Markets Exposure Assumed | 291,221 | (9,997 | ) | 281,224 | 313,574 | 594,798 | 277,156 | 590,144 | 280,291 | 580,755 | |||||||||||||||||||||||||||
Other Credit Derivatives - Exposure Assumed | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Other Credit Derivatives - Protection Purchased | — | — | — | — | — | — | — | (71 | ) | (14,071 | ) | ||||||||||||||||||||||||||
Other (3) | 8,891 | 3,012 | 11,903 | 25,339 | 40,761 | ||||||||||||||||||||||||||||||||
Total other invested assets | $ | 300,112 | $ | (6,985 | ) | $ | 293,127 | $ | 302,495 | $ | 320,981 |
(1) | The total net exposures originated in Private Markets are $1,576 million at June 30, 2014 ($1,474 million and $1,484 million at March 31, 2014 and December 31, 2013, respectively). In addition to the net exposures listed above of $595 million at June 30, 2014 ($590 million and $581 million at March 31, 2014 and December 31, 2013, respectively), the Company has the following other net exposures originated in Private Markets: |
• | Principal Finance: $711 million of assets listed under Investments - Fixed Maturities and $10 million listed under Investments - Equities for a total exposure of $857 million at June 30, 2014 ($794 million and $793 million at March 31, 2014 and December 31, 2013, respectively). |
• | Insurance-Linked Securities: $121 million of bonds listed under Investments - Fixed Maturities for a total exposure of $391 million at June 30, 2014 ($347 million and $361 million at March 31, 2014 and December 31, 2013, respectively). |
• | Strategic Investments: $138 million of assets listed under Investments - Equities and $2 million of assets listed under Other Assets for a total exposure of $328 million at June 30, 2014 ($333 million and $330 million at March 31, 2014 and December 31, 2013, respectively). |
(2) | The Company enters into interest rate swaps to mitigate notional exposure on certain fixed maturities and total return swaps. Accordingly, the notional value of these interest rate swaps is not presented in the table. |
(3) | Other includes foreign currency and fixed income hedging instruments used to manage currency and duration exposure, respectively, and other miscellaneous invested assets. |
June 30, 2014 | March 31, 2014 | December 31, 2013 | September 30, 2013 | June 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||||||||||||||||||
U.S. government | $ | 105 | 20 | % | $ | 104 | 17 | % | $ | 108 | 19 | % | $ | 111 | 17 | % | $ | 107 | 16 | % | $ | 129 | 15 | % | ||||||||||||||||||
U.S. government sponsored enterprises | 50 | 10 | 50 | 8 | 50 | 9 | 57 | 9 | 65 | 10 | 90 | 11 | ||||||||||||||||||||||||||||||
Non-U.S. sovereign government, supranational and government related | 128 | 25 | 179 | 30 | 137 | 25 | 193 | 30 | 196 | 29 | 234 | 28 | ||||||||||||||||||||||||||||||
Corporates | 215 | 42 | 245 | 41 | 249 | 44 | 259 | 41 | 287 | 43 | 362 | 44 | ||||||||||||||||||||||||||||||
Total fixed maturities | 498 | 97 | % | 578 | 96 | 544 | 97 | 620 | 97 | 655 | 98 | 815 | 98 | |||||||||||||||||||||||||||||
Short-term investments | — | — | 3 | 1 | 2 | — | 2 | 1 | — | — | — | — | ||||||||||||||||||||||||||||||
Other invested assets | 16 | 3 | % | 15 | 3 | 15 | 3 | 16 | 2 | 15 | 2 | 18 | 2 | |||||||||||||||||||||||||||||
Total investments | $ | 514 | 100 | % | $ | 596 | 100 | % | $ | 561 | 100 | % | $ | 638 | 100 | % | $ | 670 | 100 | % | $ | 833 | 100 | % | ||||||||||||||||||
Cash and cash equivalents | 41 | 37 | 85 | 34 | 20 | 54 | ||||||||||||||||||||||||||||||||||||
Total investments and cash | $ | 555 | $ | 633 | $ | 646 | $ | 672 | $ | 690 | $ | 887 | ||||||||||||||||||||||||||||||
Accrued investment income | 6 | 7 | 7 | 9 | 8 | 10 | ||||||||||||||||||||||||||||||||||||
Other funds held assets/liabilities | 109 | 124 | 133 | 133 | 144 | 34 | ||||||||||||||||||||||||||||||||||||
Total funds held - directly managed | $ | 670 | $ | 764 | $ | 786 | $ | 814 | $ | 842 | $ | 931 | ||||||||||||||||||||||||||||||
Maturity distribution: | ||||||||||||||||||||||||||||||||||||||||||
One year or less | $ | 72 | 15 | % | $ | 99 | 17 | % | $ | 89 | 16 | % | $ | 97 | 16 | % | $ | 114 | 17 | % | $ | 133 | 17 | % | ||||||||||||||||||
More than one year through five years | 261 | 52 | 298 | 51 | 331 | 61 | 377 | 60 | 403 | 62 | 515 | 63 | ||||||||||||||||||||||||||||||
More than five years through ten years | 165 | 33 | 157 | 27 | 109 | 20 | 122 | 20 | 108 | 16 | 141 | 17 | ||||||||||||||||||||||||||||||
More than ten years | — | — | 27 | 5 | 17 | 3 | 26 | 4 | 30 | 5 | 26 | 3 | ||||||||||||||||||||||||||||||
Total | $ | 498 | 100 | % | $ | 581 | 100 | % | $ | 546 | 100 | % | $ | 622 | 100 | % | $ | 655 | 100 | % | $ | 815 | 100 | % | ||||||||||||||||||
Credit quality by market value: | ||||||||||||||||||||||||||||||||||||||||||
AAA | 12 | % | 15 | % | 13 | % | 12 | % | 12 | % | 12 | % | ||||||||||||||||||||||||||||||
AA | 62 | 58 | 58 | 56 | 56 | 58 | ||||||||||||||||||||||||||||||||||||
A | 18 | 21 | 22 | 26 | 26 | 24 | ||||||||||||||||||||||||||||||||||||
BBB | 8 | 6 | 7 | 6 | 6 | 6 | ||||||||||||||||||||||||||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||||||||
Expected average duration | 3.4 | Yrs | 3.3 | Yrs | 2.9 | Yrs | 3.1 | Yrs | 3.1 | Yrs | 3.0 | Yrs | ||||||||||||||||||||||||||||||
Average yield to maturity at market | 1.1 | % | 1.2 | % | 1.2 | % | 1.2 | % | 1.3 | % | 1.0 | % | ||||||||||||||||||||||||||||||
Average credit quality | AA | AA | AA | AA | AA | AA |
June 30, 2014 | ||||||||||||||||||||
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 | $ | 72,758 | 33.9 | % | 13.1 | % | 1.9 | % | ||||||||||||
Consumer noncyclical | 34,384 | 16.0 | 6.2 | 1.6 | ||||||||||||||||
Energy | 31,300 | 14.6 | 5.7 | 1.7 | ||||||||||||||||
Utilities | 21,710 | 10.1 | 3.9 | 1.1 | ||||||||||||||||
Communications | 13,465 | 6.3 | 2.4 | 0.7 | ||||||||||||||||
Basic materials | 12,314 | 5.7 | 2.2 | 0.9 | ||||||||||||||||
Consumer cyclical | 8,492 | 4.0 | 1.5 | 1.3 | ||||||||||||||||
Government guaranteed corporate debt | 8,187 | 3.8 | 1.5 | 1.4 | ||||||||||||||||
Industrials | 4,392 | 2.1 | 0.8 | 0.6 | ||||||||||||||||
Technology | 4,077 | 1.9 | 0.8 | 0.7 | ||||||||||||||||
Real estate investment trusts | 3,403 | 1.6 | 0.6 | 0.6 | ||||||||||||||||
Total Corporate bonds | $ | 214,482 | 100.0 | % | 38.7 | % | ||||||||||||||
Finance sector - Corporate bonds | ||||||||||||||||||||
Banks | $ | 57,772 | 26.9 | % | 10.4 | % | ||||||||||||||
Financial services | 9,659 | 4.5 | 1.7 | |||||||||||||||||
Investment banking and brokerage | 5,327 | 2.5 | 1.0 | |||||||||||||||||
Total finance sector - Corporate bonds | $ | 72,758 | 33.9 | % | 13.1 | % | ||||||||||||||
AAA | AA | A | BBB | Total | ||||||||||||||||
Credit quality of finance sector - Corporate bonds | ||||||||||||||||||||
Banks | $ | 13,578 | $ | 23,139 | $ | 19,357 | $ | 1,698 | $ | 57,772 | ||||||||||
Financial services | — | 5,347 | 4,312 | — | 9,659 | |||||||||||||||
Investment banking and brokerage | 5,327 | — | — | — | 5,327 | |||||||||||||||
Total finance sector - Corporate bonds | $ | 18,905 | $ | 28,486 | $ | 23,669 | $ | 1,698 | $ | 72,758 | ||||||||||
% of total | 26 | % | 39 | % | 33 | % | 2 | % | 100 | % |
For the three months ended | |||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
2014 | 2014 | 2013 | 2013 | 2013 | |||||||||||||||
Fixed maturities | $ | 114,637 | $ | 111,019 | $ | 108,580 | $ | 110,911 | $ | 110,727 | |||||||||
Short-term investments, cash and cash equivalents | 193 | 269 | 421 | 266 | 320 | ||||||||||||||
Equities | 14,473 | 7,134 | 6,278 | 9,140 | 12,799 | ||||||||||||||
Funds held and other | 8,963 | 7,740 | 8,252 | 8,824 | 8,536 | ||||||||||||||
Funds held - directly managed | 3,229 | 3,933 | 4,785 | 4,902 | 5,010 | ||||||||||||||
Investment expenses | (11,528 | ) | (13,228 | ) | (13,965 | ) | (12,232 | ) | (12,889 | ) | |||||||||
Net investment income (1) | $ | 129,967 | $ | 116,867 | $ | 114,351 | $ | 121,811 | $ | 124,503 | |||||||||
Net realized investment gains on fixed maturities and short-term investments | $ | 31,205 | $ | 25,022 | $ | 18,363 | $ | 18,642 | $ | 40,026 | |||||||||
Net realized investment gains on equities | 33,678 | 827 | 6,049 | 15,057 | 34,790 | ||||||||||||||
Net realized (losses) gains on other invested assets | (17,753 | ) | 9,935 | (78,098 | ) | 80,065 | 7,378 | ||||||||||||
Change in net unrealized (losses) gains on other invested assets | (14,121 | ) | (25,678 | ) | 98,809 | (103,406 | ) | 83,285 | |||||||||||
Change in net unrealized investment gains (losses) on fixed maturities and short-term investments | 123,434 | 119,799 | (68,619 | ) | 10,259 | (395,757 | ) | ||||||||||||
Change in net unrealized investment gains (losses) on equities | 6,322 | 10,325 | 126,551 | (891 | ) | (57,715 | ) | ||||||||||||
Net other realized and unrealized investment gains (losses) | 611 | 991 | 198 | (2,192 | ) | 696 | |||||||||||||
Net realized and unrealized investment gains (losses) on funds held - directly managed | 2,341 | 951 | (3,834 | ) | (1,416 | ) | (11,918 | ) | |||||||||||
Net realized and unrealized investment gains (losses) | $ | 165,717 | $ | 142,172 | $ | 99,419 | $ | 16,118 | $ | (299,215 | ) |
(1) | Comparisons of net investment income between periods include the impact of foreign exchange variances. For the three months ended June 30, 2014, net investment income includes foreign exchange impacts of $1.4 million compared to the three months ended June 30, 2013. |
For the six months ended | For the year ended | |||||||||||||||
June 30, | June 30, | December 31, | December 31, | |||||||||||||
2014 | 2013 | 2013 | 2012 | |||||||||||||
Fixed maturities | $ | 225,656 | $ | 226,809 | $ | 446,299 | $ | 512,833 | ||||||||
Short-term investments, cash and cash equivalents | 462 | 1,199 | 1,886 | 2,905 | ||||||||||||
Equities | 21,607 | 17,571 | 32,989 | 26,207 | ||||||||||||
Funds held and other | 16,703 | 17,140 | 34,215 | 44,109 | ||||||||||||
Funds held - directly managed | 7,162 | 10,815 | 20,502 | 29,031 | ||||||||||||
Investment expenses | (24,756 | ) | (25,327 | ) | (51,524 | ) | (43,747 | ) | ||||||||
Net investment income (1) | $ | 246,834 | $ | 248,207 | $ | 484,367 | $ | 571,338 | ||||||||
Net realized investment gains on fixed maturities and short-term investments | $ | 56,227 | $ | 81,570 | $ | 118,575 | $ | 172,987 | ||||||||
Net realized investment gains on equities | 34,504 | 54,110 | 75,217 | 72,155 | ||||||||||||
Net realized (losses) gains on other invested assets | (7,818 | ) | 18,530 | 20,497 | (16,691 | ) | ||||||||||
Change in net unrealized (losses) gains on other invested assets | (39,799 | ) | 61,249 | 56,652 | (9,568 | ) | ||||||||||
Change in net unrealized investment gains (losses) on fixed maturities and short-term investments | 243,233 | (467,427 | ) | (525,787 | ) | 186,063 | ||||||||||
Change in net unrealized investment gains (losses) on equities | 16,647 | (7,649 | ) | 118,010 | 66,253 | |||||||||||
Net other realized and unrealized investment gains (losses) | 1,602 | (113 | ) | (2,107 | ) | 5,843 | ||||||||||
Net realized and unrealized investment gains (losses) on funds held - directly managed | 3,292 | (16,542 | ) | (21,792 | ) | 16,367 | ||||||||||
Net realized and unrealized investment gains (losses) | $ | 307,888 | $ | (276,272 | ) | $ | (160,735 | ) | $ | 493,409 |
(1) | Comparisons of net investment income between periods include the impact of foreign exchange variances. For the six months ended June 30, 2014, net investment income includes foreign exchange impacts of $1.5 million compared to the six months ended June 30, 2013. |
For the three months ended | |||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
2014 | 2014 | 2013 | 2013 | 2013 | |||||||||||||||
Fixed maturities | $ | 2,936 | $ | 3,725 | $ | 4,054 | $ | 4,697 | $ | 4,717 | |||||||||
Short-term investments, cash and cash equivalents | 9 | 31 | 343 | 299 | 227 | ||||||||||||||
Other | 456 | 378 | 285 | 316 | 364 | ||||||||||||||
Investment expenses | (172 | ) | (201 | ) | 103 | (410 | ) | (298 | ) | ||||||||||
Net investment income | $ | 3,229 | $ | 3,933 | $ | 4,785 | $ | 4,902 | $ | 5,010 | |||||||||
Net realized investment gains (losses) on fixed maturities and short-term investments | $ | 1,601 | $ | 197 | $ | 1,695 | $ | (618 | ) | $ | 3,495 | ||||||||
Net realized investment gains (losses) on other invested assets | — | — | — | 81 | (62 | ) | |||||||||||||
Change in net unrealized investment gains (losses) on fixed maturities and short-term investments | 259 | 942 | (4,618 | ) | (969 | ) | (14,621 | ) | |||||||||||
Change in net unrealized investment gains (losses) on other invested assets | 481 | (188 | ) | (911 | ) | 90 | (730 | ) | |||||||||||
Net realized and unrealized investment gains (losses) on funds held - directly managed | $ | 2,341 | $ | 951 | $ | (3,834 | ) | $ | (1,416 | ) | $ | (11,918 | ) |
For the six months ended | For the year ended | |||||||||||||||
June 30, | June 30, | December 31, | December 31, | |||||||||||||
2014 | 2013 | 2013 | 2012 | |||||||||||||
Fixed maturities | $ | 6,660 | $ | 10,053 | $ | 18,804 | $ | 27,760 | ||||||||
Short-term investments, cash and cash equivalents | 40 | 604 | 1,246 | 1,046 | ||||||||||||
Other | 835 | 686 | 1,287 | 1,647 | ||||||||||||
Investment expenses | (373 | ) | (528 | ) | (835 | ) | (1,422 | ) | ||||||||
Net investment income | $ | 7,162 | $ | 10,815 | $ | 20,502 | $ | 29,031 | ||||||||
Net realized investment gains on fixed maturities and short-term investments | $ | 1,799 | $ | 4,944 | $ | 6,021 | $ | 8,405 | ||||||||
Net realized investment (losses) gains on other invested assets | — | (62 | ) | 19 | — | |||||||||||
Change in net unrealized investment gains (losses) on fixed maturities and short-term investments | 1,200 | (18,589 | ) | (24,176 | ) | 6,583 | ||||||||||
Change in net unrealized investment gains (losses) on other invested assets | 293 | (2,835 | ) | (3,656 | ) | 1,379 | ||||||||||
Net realized and unrealized investment gains (losses) on funds held - directly managed | $ | 3,292 | $ | (16,542 | ) | $ | (21,792 | ) | $ | 16,367 |
As at and for the three months ended | |||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
2014 | 2014 | 2013 | 2013 | 2013 | |||||||||||||||
Reconciliation of beginning and ending liability for unpaid losses and loss expenses: | |||||||||||||||||||
Gross liability at beginning of period | $ | 10,529,717 | $ | 10,646,318 | $ | 10,564,542 | $ | 10,336,368 | $ | 10,323,786 | |||||||||
Reinsurance recoverable at beginning of period | (251,666 | ) | (267,384 | ) | (285,206 | ) | (276,295 | ) | (292,711 | ) | |||||||||
Net liability at beginning of period | 10,278,051 | 10,378,934 | 10,279,336 | 10,060,073 | 10,031,075 | ||||||||||||||
Net incurred losses related to: | |||||||||||||||||||
Current year | 792,275 | 698,170 | 849,706 | 793,894 | 813,492 | ||||||||||||||
Prior years | (160,880 | ) | (164,327 | ) | (173,000 | ) | (238,354 | ) | (127,350 | ) | |||||||||
631,395 | 533,843 | 676,706 | 555,540 | 686,142 | |||||||||||||||
Change in reserve agreement (1) | 2,324 | (10,760 | ) | (3,607 | ) | (19,967 | ) | (7 | ) | ||||||||||
Net losses paid | (767,435 | ) | (635,175 | ) | (589,413 | ) | (474,012 | ) | (632,011 | ) | |||||||||
Effects of foreign exchange rate changes | 10,897 | 11,209 | 15,912 | 157,702 | (25,126 | ) | |||||||||||||
Net liability at end of period | 10,155,232 | 10,278,051 | 10,378,934 | 10,279,336 | 10,060,073 | ||||||||||||||
Reinsurance recoverable at end of period | 244,543 | 251,666 | 267,384 | 285,206 | 276,295 | ||||||||||||||
Gross liability at end of period | $ | 10,399,775 | $ | 10,529,717 | $ | 10,646,318 | $ | 10,564,542 | $ | 10,336,368 | |||||||||
Breakdown of gross liability at end of period: | |||||||||||||||||||
Case reserves | $ | 4,425,723 | $ | 4,552,142 | $ | 4,663,164 | $ | 4,711,580 | $ | 4,645,378 | |||||||||
Additional case reserves | 380,582 | 332,758 | 403,145 | 401,752 | 346,553 | ||||||||||||||
Incurred but not reported reserves | 5,593,470 | 5,644,817 | 5,580,009 | 5,451,210 | 5,344,437 | ||||||||||||||
Gross liability at end of period | $ | 10,399,775 | $ | 10,529,717 | $ | 10,646,318 | $ | 10,564,542 | $ | 10,336,368 | |||||||||
Breakdown of gross liability at end of period by Non-life sub-segment: | |||||||||||||||||||
North America | $ | 3,468,159 | $ | 3,550,399 | $ | 3,535,946 | $ | 3,397,875 | $ | 3,332,288 | |||||||||
Global (Non-U.S.) P&C | 2,364,579 | 2,428,416 | 2,444,129 | 2,424,923 | 2,388,789 | ||||||||||||||
Global Specialty | 3,975,834 | 3,920,012 | 3,951,543 | 3,978,436 | 3,817,570 | ||||||||||||||
Catastrophe | 591,203 | 630,890 | 714,700 | 763,308 | 797,721 | ||||||||||||||
Gross liability at end of period | $ | 10,399,775 | $ | 10,529,717 | $ | 10,646,318 | $ | 10,564,542 | $ | 10,336,368 | |||||||||
Unrecognized time value of non-life reserves (2) | $ | 621,803 | $ | 665,021 | $ | 733,528 | $ | 688,734 | $ | 658,929 | |||||||||
Non-life paid loss ratio data: | |||||||||||||||||||
Non-life paid losses to incurred losses ratio | 121.6 | % | 119.0 | % | 87.1 | % | 85.3 | % | 92.1 | % | |||||||||
Non-life paid losses to net premiums earned ratio | 73.7 | % | 64.0 | % | 50.7 | % | 40.2 | % | 64.7 | % |
As at and for the six months ended | As at and for the year ended | |||||||||||||||
June 30, | June 30, | December 31, | December 31, | |||||||||||||
2014 | 2013 | 2013 | 2012 | |||||||||||||
Reconciliation of beginning and ending liability for unpaid losses and loss expenses: | ||||||||||||||||
Gross liability at beginning of period | $ | 10,646,318 | $ | 10,709,371 | $ | 10,709,371 | $ | 11,273,091 | ||||||||
Reinsurance recoverable at beginning of period | (267,384 | ) | (291,330 | ) | (291,330 | ) | (353,105 | ) | ||||||||
Net liability at beginning of period | 10,378,934 | 10,418,041 | 10,418,041 | 10,919,986 | ||||||||||||
Net incurred losses related to: | ||||||||||||||||
Current year | 1,490,445 | 1,475,156 | 3,118,755 | 2,785,694 | ||||||||||||
Prior years | (325,208 | ) | (310,145 | ) | (721,499 | ) | (628,065 | ) | ||||||||
1,165,237 | 1,165,011 | 2,397,256 | 2,157,629 | |||||||||||||
Change in reserve agreement (1) | (8,435 | ) | (25,970 | ) | (49,544 | ) | (86,163 | ) | ||||||||
Net losses paid | (1,402,610 | ) | (1,338,134 | ) | (2,401,559 | ) | (2,705,062 | ) | ||||||||
Effects of foreign exchange rate changes | 22,106 | (158,875 | ) | 14,740 | 131,651 | |||||||||||
Net liability at end of period | 10,155,232 | 10,060,073 | 10,378,934 | 10,418,041 | ||||||||||||
Reinsurance recoverable at end of period | 244,543 | 276,295 | 267,384 | 291,330 | ||||||||||||
Gross liability at end of period | $ | 10,399,775 | $ | 10,336,368 | $ | 10,646,318 | $ | 10,709,371 | ||||||||
Breakdown of gross liability at end of period: | ||||||||||||||||
Case reserves | $ | 4,425,723 | $ | 4,645,378 | $ | 4,663,164 | $ | 4,872,591 | ||||||||
Additional case reserves | 380,582 | 346,553 | 403,145 | 343,549 | ||||||||||||
Incurred but not reported reserves | 5,593,470 | 5,344,437 | 5,580,009 | 5,493,231 | ||||||||||||
Gross liability at end of period | $ | 10,399,775 | $ | 10,336,368 | $ | 10,646,318 | $ | 10,709,371 | ||||||||
Breakdown of gross liability at end of period by Non-life sub-segment: | ||||||||||||||||
North America | $ | 3,468,159 | $ | 3,332,288 | $ | 3,535,946 | $ | 3,373,852 | ||||||||
Global (Non-U.S.) P&C | 2,364,579 | 2,388,789 | 2,444,129 | 2,507,761 | ||||||||||||
Global Specialty | 3,975,834 | 3,817,570 | 3,951,543 | 3,868,700 | ||||||||||||
Catastrophe | 591,203 | 797,721 | 714,700 | 959,058 | ||||||||||||
Gross liability at end of period | $ | 10,399,775 | $ | 10,336,368 | $ | 10,646,318 | $ | 10,709,371 | ||||||||
Unrecognized time value of non-life reserves (2) | $ | 621,803 | $ | 658,929 | $ | 733,528 | $ | 465,625 | ||||||||
Non-life paid loss ratio data: | ||||||||||||||||
Non-life paid losses to incurred losses ratio | 120.4 | % | 114.9 | % | 100.2 | % | 125.4 | % | ||||||||
Non-life paid losses to net premiums earned ratio | 69.0 | % | 70.4 | % | 56.6 | % | 73.3 | % |
As at and for the three months ended | |||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
2014 | 2014 | 2013 | 2013 | 2013 | |||||||||||||||
Reconciliation of beginning and ending policy benefits for life and annuity contracts: | |||||||||||||||||||
Gross liability at beginning of period | $ | 2,118,479 | $ | 1,974,133 | $ | 1,908,575 | $ | 1,799,332 | $ | 1,763,413 | |||||||||
Reinsurance recoverable at beginning of period | (7,691 | ) | (7,022 | ) | (6,978 | ) | (6,432 | ) | (9,798 | ) | |||||||||
Net liability at beginning of period | 2,110,788 | 1,967,111 | 1,901,597 | 1,792,900 | 1,753,615 | ||||||||||||||
Liability acquired related to the acquisition of Presidio | — | — | — | — | — | ||||||||||||||
Net incurred losses related to: | |||||||||||||||||||
Current year | 258,100 | 218,307 | 207,998 | 208,839 | 192,285 | ||||||||||||||
Prior years | (5,649 | ) | (2,693 | ) | (5,690 | ) | (13,380 | ) | (11,584 | ) | |||||||||
252,451 | 215,614 | 202,308 | 195,459 | 180,701 | |||||||||||||||
Net losses paid | (274,295 | ) | (74,812 | ) | (160,309 | ) | (149,895 | ) | (153,770 | ) | |||||||||
Effects of foreign exchange rate changes | 14,765 | 2,875 | 23,515 | 63,133 | 12,354 | ||||||||||||||
Net liability at end of period | 2,103,709 | 2,110,788 | 1,967,111 | 1,901,597 | 1,792,900 | ||||||||||||||
Reinsurance recoverable at end of period | 23,703 | 7,691 | 7,022 | 6,978 | 6,432 | ||||||||||||||
Gross liability at end of period | $ | 2,127,412 | $ | 2,118,479 | $ | 1,974,133 | $ | 1,908,575 | $ | 1,799,332 | |||||||||
Life value in force | $ | 197,000 | $ | 208,300 | $ | 188,000 | $ | 171,000 | $ | 100,000 |
As at and for the six months ended | As at and for the year ended | |||||||||||||||
June 30, | June 30, | December 31, | December 31, | |||||||||||||
2014 | 2013 | 2013 | 2012 | |||||||||||||
Reconciliation of beginning and ending policy benefits for life and annuity contracts: | ||||||||||||||||
Gross liability at beginning of period | $ | 1,974,133 | $ | 1,813,244 | $ | 1,813,244 | $ | 1,645,662 | ||||||||
Reinsurance recoverable at beginning of period | (7,022 | ) | (20,684 | ) | (20,684 | ) | (9,874 | ) | ||||||||
Net liability at beginning of period | 1,967,111 | 1,792,560 | 1,792,560 | 1,635,788 | ||||||||||||
Liability acquired related to the acquisition of Presidio | — | — | — | 54,071 | ||||||||||||
Net incurred losses related to: | ||||||||||||||||
Current year | 476,408 | 382,758 | 799,596 | 661,343 | ||||||||||||
Prior years | (8,342 | ) | (19,975 | ) | (39,044 | ) | (14,362 | ) | ||||||||
468,066 | 362,783 | 760,552 | 646,981 | |||||||||||||
Net losses paid | (349,107 | ) | (315,341 | ) | (625,546 | ) | (593,690 | ) | ||||||||
Effects of foreign exchange rate changes | 17,639 | (47,102 | ) | 39,545 | 49,410 | |||||||||||
Net liability at end of period | 2,103,709 | 1,792,900 | 1,967,111 | 1,792,560 | ||||||||||||
Reinsurance recoverable at end of period | 23,703 | 6,432 | 7,022 | 20,684 | ||||||||||||
Gross liability at end of period | $ | 2,127,412 | $ | 1,799,332 | $ | 1,974,133 | $ | 1,813,244 | ||||||||
Life value in force | $ | 197,000 | $ | 100,000 | $ | 188,000 | $ | 110,000 |
For the three months ended | ||||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
2014 | 2014 | 2013 | 2013 | 2013 | ||||||||||||||||
Prior year net favorable (adverse) reserve development: | ||||||||||||||||||||
Non-life segment: | ||||||||||||||||||||
North America | $ | 67,404 | $ | 24,515 | $ | 67,202 | $ | 94,466 | $ | 31,226 | ||||||||||
Global (Non-U.S.) P&C | 30,278 | 46,713 | 48,793 | 37,493 | 36,149 | |||||||||||||||
Global Specialty | 69,244 | 59,214 | 61,379 | 77,760 | 27,780 | |||||||||||||||
Catastrophe | (6,046 | ) | 33,885 | (4,374 | ) | 28,635 | 32,195 | |||||||||||||
Total Non-life net prior year reserve development | $ | 160,880 | $ | 164,327 | $ | 173,000 | $ | 238,354 | $ | 127,350 | ||||||||||
Non-life segment: | ||||||||||||||||||||
Net prior year reserve development due to changes in premiums | $ | (8,631 | ) | $ | (9,669 | ) | $ | (23,458 | ) | $ | (23,508 | ) | $ | (12,714 | ) | |||||
Net prior year reserve development due to all other factors (2) | 169,511 | 173,996 | 196,458 | 261,862 | 140,064 | |||||||||||||||
Total Non-life net prior year reserve development | $ | 160,880 | $ | 164,327 | $ | 173,000 | $ | 238,354 | $ | 127,350 | ||||||||||
Life and Health segment: | ||||||||||||||||||||
Net prior year reserve development due to GMDB (1) | $ | 980 | $ | 3,031 | $ | 6,388 | $ | 11,087 | $ | 3,493 | ||||||||||
Net prior year reserve development due to all other factors (2) | 4,669 | (338 | ) | (698 | ) | 2,293 | 8,091 | |||||||||||||
Total Life and Health net prior year reserve development | $ | 5,649 | $ | 2,693 | $ | 5,690 | $ | 13,380 | $ | 11,584 |
(1) | The guaranteed minimum death benefit (GMDB) reserves are sensitive to volatility in certain referenced global equity markets. At June 30, 2014, a 10% increase in the referenced global equity market would have decreased reserves by approximately $2.7 million, while a 10% decrease in the referenced global equity market would have increased reserves by approximately $3.3 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. |
For the six months ended | For the year ended | |||||||||||||||
June 30, | June 30, | December 31, | December 31, | |||||||||||||
2014 | 2013 | 2013 | 2012 | |||||||||||||
Prior year net favorable (adverse) reserve development: | ||||||||||||||||
Non-life segment: | ||||||||||||||||
North America | $ | 91,919 | $ | 61,171 | $ | 222,839 | $ | 218,483 | ||||||||
Global (Non-U.S.) P&C | 76,991 | 93,766 | 180,052 | 114,279 | ||||||||||||
Global Specialty | 128,459 | 88,244 | 227,383 | 250,523 | ||||||||||||
Catastrophe | 27,839 | 66,964 | 91,225 | 44,780 | ||||||||||||
Total Non-life net prior year reserve development | $ | 325,208 | $ | 310,145 | $ | 721,499 | $ | 628,065 | ||||||||
Non-life segment: | ||||||||||||||||
Net prior year reserve development due to changes in premiums | $ | (18,300 | ) | $ | (23,844 | ) | $ | (70,810 | ) | $ | (93,971 | ) | ||||
Net prior year reserve development due to all other factors (2) | 343,508 | 333,989 | 792,309 | 722,036 | ||||||||||||
Total Non-life net prior year reserve development | $ | 325,208 | $ | 310,145 | $ | 721,499 | $ | 628,065 | ||||||||
Life and Health segment: | ||||||||||||||||
Net prior year reserve development due to GMDB (1) | $ | 4,012 | $ | 9,142 | $ | 26,617 | $ | 10,009 | ||||||||
Net prior year reserve development due to all other factors (2) | 4,330 | 10,833 | 12,427 | 4,353 | ||||||||||||
Total Life and Health net prior year reserve development | $ | 8,342 | $ | 19,975 | $ | 39,044 | $ | 14,362 |
(1) | The guaranteed minimum death benefit (GMDB) reserves are sensitive to volatility in certain referenced global equity markets. At June 30, 2014, a 10% increase in the referenced global equity market would have decreased reserves by approximately $2.7 million, while a 10% decrease in the referenced global equity market would have increased reserves by approximately $3.3 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. |
April 1, 2014 | January 1, 2014 | October 1, 2013 | July 1, 2013 | April 1, 2013 | ||||||||||||||||||||||||||||||||||||||
Zone | Peril | 1-in-250 year PML | 1-in-500 year PML (Earthquake perils only) | 1-in-250 year PML | 1-in-500 year PML (Earthquake perils only) | 1-in-250 year PML | 1-in-500 year PML (Earthquake perils only) | 1-in-250 year PML | 1-in-500 year PML (Earthquake perils only) | 1-in-250 year PML | 1-in-500 year PML (Earthquake perils only) | |||||||||||||||||||||||||||||||
U.S. Southeast | Hurricane | $ | 966 | $ | 908 | $ | 1,054 | $ | 1,054 | $ | 1,115 | |||||||||||||||||||||||||||||||
U.S. Northeast | Hurricane | 1,014 | 1,008 | 1,121 | 1,121 | 1,019 | ||||||||||||||||||||||||||||||||||||
U.S. Gulf Coast | Hurricane | 978 | 960 | 1,025 | 1,025 | 1,001 | ||||||||||||||||||||||||||||||||||||
Caribbean | Hurricane | 183 | 192 | 276 | 276 | 270 | ||||||||||||||||||||||||||||||||||||
Europe | Windstorm | 630 | 626 | 872 | 872 | 850 | ||||||||||||||||||||||||||||||||||||
Japan | Typhoon | 147 | 128 | 124 | 124 | 169 | ||||||||||||||||||||||||||||||||||||
California | Earthquake | 587 | $ | 689 | 589 | $ | 668 | 575 | $ | 679 | 575 | $ | 679 | 574 | $ | 685 | ||||||||||||||||||||||||||
British Columbia | Earthquake | 209 | 431 | 214 | 378 | 305 | 513 | 305 | 513 | 310 | 559 | |||||||||||||||||||||||||||||||
Japan | Earthquake | 433 | 465 | 432 | 466 | 435 | 457 | 435 | 457 | 463 | 488 | |||||||||||||||||||||||||||||||
Australia | Earthquake | 348 | 449 | 332 | 426 | 418 | 552 | 418 | 552 | 439 | 557 | |||||||||||||||||||||||||||||||
New Zealand | Earthquake | 193 | 222 | 203 | 223 | 250 | 272 | 250 | 272 | 261 | 282 |
(1) | The PML estimates are pre-tax and net of retrocession and reinstatement premiums. The peril zones in this disclosure are major peril zones for the industry. The Company has exposures in other peril zones that can potentially generate losses greater than the PML estimates in this disclosure. |
For the three months ended | |||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
2014 | 2014 | 2013 | 2013 | 2013 | |||||||||||||||
Reconciliation of GAAP and non-GAAP measures: | |||||||||||||||||||
Annualized return on beginning diluted book value per common share calculated with net income (loss) per share attributable to common shareholders (1) | 18.4 | % | 20.5 | % | 18.9 | % | 23.2 | % | (13.4 | )% | |||||||||
Less: | |||||||||||||||||||
Annualized net realized and unrealized investment gains (losses), net of tax, on beginning diluted book value per common share (1) | 8.8 | 8.0 | 6.7 | (0.1 | ) | (16.2 | ) | ||||||||||||
Annualized net foreign exchange (losses) gains, net of tax, on beginning diluted book value per common share (1) | (0.2 | ) | (0.1 | ) | 0.3 | 0.4 | (0.4 | ) | |||||||||||
Annualized net interest in earnings (losses) of equity method investments, net of tax, on beginning diluted book value per common share (1) | 0.3 | 0.3 | 0.4 | 0.3 | (0.4 | ) | |||||||||||||
Annualized operating return on beginning diluted book value per common share (1) | 9.5 | % | 12.3 | % | 11.5 | % | 22.6 | % | 3.6 | % | |||||||||
Net income (loss) attributable to PartnerRe | $ | 271,841 | $ | 309,843 | $ | 271,788 | $ | 333,423 | $ | (175,571 | ) | ||||||||
Less: | |||||||||||||||||||
Net realized and unrealized investment gains (losses), net of tax | 123,734 | 115,817 | 91,781 | (1,272 | ) | (229,966 | ) | ||||||||||||
Net foreign exchange (losses) gains, net of tax | (3,175 | ) | (971 | ) | 3,869 | 5,338 | (5,898 | ) | |||||||||||
Interest in earnings (losses) of equity method investments, net of tax | 3,590 | 3,903 | 4,549 | 3,989 | (5,558 | ) | |||||||||||||
Dividends to preferred shareholders | 14,184 | 14,184 | 14,184 | 14,184 | 14,796 | ||||||||||||||
Operating earnings attributable to PartnerRe common shareholders | $ | 133,508 | $ | 176,910 | $ | 157,405 | $ | 311,184 | $ | 51,055 | |||||||||
Per diluted common share: | |||||||||||||||||||
Net income (loss) attributable to PartnerRe common shareholders | $ | 5.02 | $ | 5.61 | $ | 4.76 | $ | 5.84 | $ | (3.37 | ) | ||||||||
Less: | |||||||||||||||||||
Net realized and unrealized investment gains (losses), net of tax | 2.41 | 2.20 | 1.70 | (0.03 | ) | (4.07 | ) | ||||||||||||
Net foreign exchange (losses) gains, net of tax | (0.06 | ) | (0.02 | ) | 0.07 | 0.10 | (0.10 | ) | |||||||||||
Interest in earnings (losses) of equity method investments, net of tax | 0.07 | 0.07 | 0.08 | 0.07 | (0.10 | ) | |||||||||||||
Operating earnings attributable to PartnerRe common shareholders | $ | 2.60 | $ | 3.36 | $ | 2.91 | $ | 5.70 | $ | 0.90 |
(1) | Excluding preferred shares of $853,750 at January 1, 2014 and $893,750 at January 1, 2013 and 2012. |
For the six months ended | For the year ended | |||||||||||||||
June 30, | June 30, | December 31, | December 31, | |||||||||||||
2014 | 2013 | 2013 | 2012 | |||||||||||||
Reconciliation of GAAP and non-GAAP measures: | ||||||||||||||||
Annualized return on beginning diluted book value per common share calculated with net income per share attributable to common shareholders (1) | 19.5 | % | 0.7 | % | 10.5 | % | 19.9 | % | ||||||||
Less: | ||||||||||||||||
Annualized net realized and unrealized investment gains (losses), net of tax, on beginning diluted book value per common share (1) | 8.4 | (7.4 | ) | (2.2 | ) | 7.3 | ||||||||||
Annualized net foreign exchange (losses) gains, net of tax, on beginning diluted book value per common share (1) | (0.1 | ) | (0.2 | ) | — | 0.1 | ||||||||||
Annualized net interest in earnings of equity method investments, net of tax, on beginning diluted book value per common share (1) | 0.3 | — | 0.2 | 0.2 | ||||||||||||
Annualized loss on redemption of preferred shares, on beginning diluted book value per common share (1) | — | (0.3 | ) | (0.2 | ) | — | ||||||||||
Annualized operating return on beginning diluted book value per common share (1) | 10.9 | % | 8.6 | % | 12.7 | % | 12.3 | % | ||||||||
Net income attributable to PartnerRe | $ | 581,683 | $ | 58,799 | $ | 664,008 | $ | 1,134,514 | ||||||||
Less: | ||||||||||||||||
Net realized and unrealized investment gains (losses), net of tax | 239,551 | (217,691 | ) | (127,182 | ) | 392,014 | ||||||||||
Net foreign exchange (losses) gains, net of tax | (4,146 | ) | (6,685 | ) | 2,521 | 8,345 | ||||||||||
Interest in earnings of equity method investments, net of tax | 7,493 | 537 | 9,075 | 8,742 | ||||||||||||
Dividends to preferred shareholders | 28,367 | 29,494 | 57,861 | 61,622 | ||||||||||||
Operating earnings attributable to PartnerRe common shareholders | $ | 310,418 | $ | 253,144 | $ | 721,733 | $ | 663,791 | ||||||||
Per diluted common share: | ||||||||||||||||
Net income attributable to PartnerRe common shareholders | $ | 10.64 | $ | 0.34 | $ | 10.58 | $ | 16.87 | ||||||||
Less: | ||||||||||||||||
Net realized and unrealized investment gains (losses), net of tax | 4.61 | (3.72 | ) | (2.25 | ) | 6.17 | ||||||||||
Net foreign exchange (losses) gains, net of tax | (0.08 | ) | (0.11 | ) | 0.04 | 0.13 | ||||||||||
Loss on redemption of preferred shares | — | (0.16 | ) | (0.16 | ) | — | ||||||||||
Interest in earnings of equity method investments, net of tax | 0.14 | 0.01 | 0.16 | 0.14 | ||||||||||||
Operating earnings attributable to PartnerRe common shareholders | $ | 5.97 | $ | 4.32 | $ | 12.79 | $ | 10.43 |
(1) | Excluding preferred shares of $853,750 at January 1, 2014 and $893,750 at January 1, 2013 and 2012. |
June 30, | March 31, | December 31, | September 30, | June 30, | December 31, | |||||||||||||||||||
2014 | 2014 | 2013 | 2013 | 2013 | 2012 | |||||||||||||||||||
Reconciliation of GAAP and non-GAAP measures: | ||||||||||||||||||||||||
Total shareholders’ equity | $ | 6,957,403 | $ | 6,840,599 | $ | 6,766,159 | $ | 6,624,176 | $ | 6,415,276 | $ | 6,933,496 | ||||||||||||
Less: | ||||||||||||||||||||||||
Preferred shares, aggregate liquidation value | 853,750 | 853,750 | 853,750 | 853,750 | 853,750 | 893,750 | ||||||||||||||||||
Noncontrolling interests | 47,356 | 59,671 | 56,627 | 52,489 | 48,319 | — | ||||||||||||||||||
Common shareholders’ equity attributable to PartnerRe | 6,056,297 | 5,927,178 | 5,855,782 | 5,717,937 | 5,513,207 | 6,039,746 | ||||||||||||||||||
Less: | ||||||||||||||||||||||||
Goodwill | 456,380 | 456,380 | 456,380 | 456,380 | 456,380 | 456,380 | ||||||||||||||||||
Intangible assets, net of tax | 111,990 | 116,331 | 120,900 | 121,922 | 127,662 | 141,249 | ||||||||||||||||||
Tangible book value | $ | 5,487,927 | $ | 5,354,467 | $ | 5,278,502 | $ | 5,139,635 | $ | 4,929,165 | $ | 5,442,117 | ||||||||||||
Common shares and common share equivalents outstanding | 50,910,028 | 51,935,217 | 53,596,034 | 54,181,672 | 55,325,581 | 59,893,366 | ||||||||||||||||||
Equals: | ||||||||||||||||||||||||
Diluted tangible book value per common share | $ | 107.80 | $ | 103.10 | $ | 98.49 | $ | 94.86 | $ | 89.09 | $ | 90.86 |
June 30, | March 31, | December 31, | September 30, | June 30, | December 31, | |||||||||||||||||||
2014 | 2014 | 2013 | 2013 | 2013 | 2012 | |||||||||||||||||||
Reconciliation of GAAP and non-GAAP measures: | ||||||||||||||||||||||||
Total shareholders’ equity | $ | 6,957,403 | $ | 6,840,599 | $ | 6,766,159 | $ | 6,624,176 | $ | 6,415,276 | $ | 6,933,496 | ||||||||||||
Less: | ||||||||||||||||||||||||
Preferred shares, aggregate liquidation value | 853,750 | 853,750 | 853,750 | 853,750 | 853,750 | 893,750 | ||||||||||||||||||
Noncontrolling interests | 47,356 | 59,671 | 56,627 | 52,489 | 48,319 | — | ||||||||||||||||||
Common shareholders’ equity attributable to PartnerRe | 6,056,297 | 5,927,178 | 5,855,782 | 5,717,937 | 5,513,207 | 6,039,746 | ||||||||||||||||||
Less: | ||||||||||||||||||||||||
Goodwill | 456,380 | 456,380 | 456,380 | 456,380 | 456,380 | 456,380 | ||||||||||||||||||
Intangible assets, net of tax | 111,990 | 116,331 | 120,900 | 121,922 | 127,662 | 141,249 | ||||||||||||||||||
Tangible book value | 5,487,927 | 5,354,467 | 5,278,502 | 5,139,635 | 4,929,165 | 5,442,117 | ||||||||||||||||||
Net unrealized gains on fixed income securities and funds held - directly managed, net of tax (NURGL) | 388,648 | 299,871 | 223,995 | 194,144 | 291,987 | 657,604 | ||||||||||||||||||
Book value excluding NURGL | $ | 5,667,649 | $ | 5,627,307 | $ | 5,631,787 | $ | 5,523,793 | $ | 5,221,220 | $ | 5,382,142 | ||||||||||||
Tangible book value excluding NURGL | $ | 5,099,279 | $ | 5,054,596 | $ | 5,054,507 | $ | 4,945,491 | $ | 4,637,178 | $ | 4,784,513 | ||||||||||||
Divided by: | ||||||||||||||||||||||||
Number of common shares and common share equivalents outstanding | 50,910,028 | 51,935,217 | 53,596,034 | 54,181,672 | 55,325,581 | 59,893,366 | ||||||||||||||||||
Equals: | ||||||||||||||||||||||||
Diluted book value per common share excluding NURGL | $ | 111.33 | $ | 108.35 | $ | 105.08 | $ | 101.95 | $ | 94.37 | $ | 89.86 | ||||||||||||
Diluted tangible book value per common share excluding NURGL | $ | 100.16 | $ | 97.33 | $ | 94.31 | $ | 91.28 | $ | 83.82 | $ | 79.88 |
June 30, | March 31, | December 31, | September 30, | June 30, | December 31, | |||||||||||||||||||
2014 | 2014 | 2013 | 2013 | 2013 | 2012 | |||||||||||||||||||
Basic book value per common share | ||||||||||||||||||||||||
Total shareholders’ equity | $ | 6,957,403 | $ | 6,840,599 | $ | 6,766,159 | $ | 6,624,176 | $ | 6,415,276 | $ | 6,933,496 | ||||||||||||
Less: | ||||||||||||||||||||||||
Preferred shares, aggregate liquidation value | 853,750 | 853,750 | 853,750 | 853,750 | 853,750 | 893,750 | ||||||||||||||||||
Noncontrolling interests | 47,356 | 59,671 | 56,627 | 52,489 | 48,319 | — | ||||||||||||||||||
Common shareholders’ equity attributable to PartnerRe | $ | 6,056,297 | $ | 5,927,178 | $ | 5,855,782 | $ | 5,717,937 | $ | 5,513,207 | $ | 6,039,746 | ||||||||||||
Basic common shares outstanding | 49,822,482 | 50,859,821 | 52,443,434 | 53,227,765 | 54,321,732 | 58,909,375 | ||||||||||||||||||
Basic book value per common share | $ | 121.56 | $ | 116.54 | $ | 111.66 | $ | 107.42 | $ | 101.49 | $ | 102.53 | ||||||||||||
Common shareholders’ equity attributable to PartnerRe | $ | 6,056,297 | $ | 5,927,178 | $ | 5,855,782 | $ | 5,717,937 | $ | 5,513,207 | $ | 6,039,746 | ||||||||||||
Basic common shares outstanding | 49,822,482 | 50,859,821 | 52,443,434 | 53,227,765 | 54,321,732 | 58,909,375 | ||||||||||||||||||
Add: | ||||||||||||||||||||||||
Stock options and other | 2,121,937 | 2,230,335 | 2,382,771 | 2,438,798 | 2,614,443 | 2,892,514 | ||||||||||||||||||
Restricted stock units | 893,521 | 848,006 | 870,054 | 887,442 | 900,577 | 864,269 | ||||||||||||||||||
Less: | ||||||||||||||||||||||||
Stock options and other bought back via treasury stock method | 1,927,912 | 2,002,945 | 2,100,225 | 2,372,333 | 2,511,171 | 2,772,792 | ||||||||||||||||||
Diluted common shares and common share equivalents outstanding | 50,910,028 | 51,935,217 | 53,596,034 | 54,181,672 | 55,325,581 | 59,893,366 | ||||||||||||||||||
Diluted book value per common share | $ | 118.96 | $ | 114.13 | $ | 109.26 | $ | 105.53 | $ | 99.65 | $ | 100.84 |
(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. |
As at and for the three months ended June 30, 2014 | As at and for the three months ended June 30, 2013 | |||||||||||||||
Common shareholders’ equity | Diluted book value per common share | Common shareholders’ equity | Diluted book value per common share | |||||||||||||
Common shareholders’ equity attributable to PartnerRe / diluted book value per common share at beginning of period | $ | 5,927 | $ | 114.13 | $ | 6,057 | $ | 102.96 | ||||||||
Technical result | 166 | 3.23 | 100 | 1.77 | ||||||||||||
Other operating expenses | (107 | ) | (2.09 | ) | (145 | ) | (2.56 | ) | ||||||||
Net investment income | 130 | 2.53 | 125 | 2.20 | ||||||||||||
Amortization of intangible assets | (7 | ) | (0.14 | ) | (7 | ) | (0.13 | ) | ||||||||
Other, net | (5 | ) | (0.08 | ) | (9 | ) | (0.15 | ) | ||||||||
Operating income tax (expense) benefit | (29 | ) | (0.57 | ) | 2 | 0.03 | ||||||||||
Preferred dividends | (14 | ) | (0.28 | ) | (15 | ) | (0.26 | ) | ||||||||
Operating earnings | 134 | 2.60 | 51 | 0.90 | ||||||||||||
Net realized and unrealized investment gains (losses), net of tax | 124 | 2.41 | (230 | ) | (4.07 | ) | ||||||||||
Net foreign exchange losses, net of tax | (3 | ) | (0.06 | ) | (6 | ) | (0.10 | ) | ||||||||
Interest in earnings (losses) of equity method investments, net of tax | 3 | 0.07 | (5 | ) | (0.10 | ) | ||||||||||
Net income (loss) attributable to PartnerRe common shareholders | 258 | 5.02 | (190 | ) | (3.37 | ) | ||||||||||
Common share dividends | (34 | ) | (0.67 | ) | (37 | ) | (0.64 | ) | ||||||||
Change in currency translation adjustment | 17 | 0.33 | (12 | ) | (0.20 | ) | ||||||||||
Repurchase of common shares, net | (112 | ) | 0.13 | (305 | ) | 0.70 | ||||||||||
Change in other accumulated comprehensive income or loss, net of tax | — | — | — | (0.01 | ) | |||||||||||
Impact of change in number of common and common share equivalents outstanding | n/a | 0.02 | n/a | 0.21 | ||||||||||||
Common shareholders’ equity attributable to PartnerRe / diluted book value per common share at end of period | $ | 6,056 | $ | 118.96 | $ | 5,513 | $ | 99.65 | ||||||||
Goodwill | (456 | ) | (8.96 | ) | (456 | ) | (8.25 | ) | ||||||||
Intangible assets, net of tax | (112 | ) | (2.20 | ) | (128 | ) | (2.31 | ) | ||||||||
Tangible common shareholders’ equity attributable to PartnerRe / diluted tangible book value per common share at end of period | $ | 5,488 | 107.80 | $ | 4,929 | $ | 89.09 |
As at and for the six months ended June 30, 2014 | As at and for the six months ended June 30, 2013 | |||||||||||||||
Common shareholders’ equity | Diluted book value per common share | Common shareholders’ equity | Diluted book value per common share | |||||||||||||
Common shareholders’ equity attributable to PartnerRe / diluted book value per common share at beginning of period | $ | 5,856 | $ | 109.26 | $ | 6,040 | $ | 100.84 | ||||||||
Technical result | 407 | 7.83 | 351 | 6.01 | ||||||||||||
Other operating expenses | (219 | ) | (4.20 | ) | (261 | ) | (4.46 | ) | ||||||||
Net investment income | 247 | 4.74 | 248 | 4.24 | ||||||||||||
Amortization of intangible assets | (14 | ) | (0.27 | ) | (14 | ) | (0.24 | ) | ||||||||
Other, net | (21 | ) | (0.39 | ) | (19 | ) | (0.34 | ) | ||||||||
Operating income tax expense | (62 | ) | (1.19 | ) | (23 | ) | (0.39 | ) | ||||||||
Preferred dividends | (28 | ) | (0.55 | ) | (29 | ) | (0.50 | ) | ||||||||
Operating earnings | 310 | 5.97 | 253 | 4.32 | ||||||||||||
Net realized and unrealized investment gains (losses), net of tax | 240 | 4.61 | (218 | ) | (3.72 | ) | ||||||||||
Net foreign exchange losses, net of tax | (4 | ) | (0.08 | ) | (7 | ) | (0.11 | ) | ||||||||
Loss on redemption of preferred shares | — | — | (9 | ) | (0.16 | ) | ||||||||||
Interest in earnings of equity method investments, net of tax | 7 | 0.14 | 1 | 0.01 | ||||||||||||
Net income attributable to PartnerRe common shareholders | 553 | 10.64 | 20 | 0.34 | ||||||||||||
Common share dividends | (68 | ) | (1.34 | ) | (74 | ) | (1.28 | ) | ||||||||
Change in currency translation adjustment | 2 | 0.03 | (31 | ) | (0.54 | ) | ||||||||||
Repurchase of common shares, net | (286 | ) | 0.11 | (442 | ) | 0.51 | ||||||||||
Preferred share issuance costs | — | — | (9 | ) | (0.15 | ) | ||||||||||
Recognition of loss on redemption of preferred shares | — | — | 9 | 0.16 | ||||||||||||
Change in other accumulated comprehensive income or loss, net of tax | (1 | ) | (0.01 | ) | — | 0.01 | ||||||||||
Impact of change in number of common and common share equivalents outstanding | n/a | 0.27 | n/a | (0.24 | ) | |||||||||||
Common shareholders’ equity attributable to PartnerRe / diluted book value per common share at end of period | $ | 6,056 | $ | 118.96 | $ | 5,513 | $ | 99.65 | ||||||||
Goodwill | (456 | ) | (8.96 | ) | (456 | ) | (8.25 | ) | ||||||||
Intangible assets, net of tax | (112 | ) | (2.20 | ) | (128 | ) | (2.31 | ) | ||||||||
Tangible common shareholders’ equity attributable to PartnerRe / diluted tangible book value per common share at end of period | $ | 5,488 | 107.80 | $ | 4,929 | $ | 89.09 |
As at and for the year ended December 31, 2013 | As at and for the year ended December 31, 2012 | |||||||||||||||
Common shareholders’ equity | Diluted book value per common share | Common shareholders’ equity | Diluted book value per common share | |||||||||||||
Common shareholders’ equity attributable to PartnerRe / diluted book value per common share at beginning of period | $ | 6,040 | $ | 100.84 | $ | 5,574 | $ | 84.82 | ||||||||
Technical result | 962 | 17.06 | 744 | 11.70 | ||||||||||||
Other operating expenses | (500 | ) | (8.87 | ) | (411 | ) | (6.47 | ) | ||||||||
Net investment income | 484 | 8.58 | 571 | 8.98 | ||||||||||||
Amortization of intangible assets | (27 | ) | (0.48 | ) | (32 | ) | (0.50 | ) | ||||||||
Other, net | (47 | ) | (0.85 | ) | (36 | ) | (0.58 | ) | ||||||||
Operating income tax expense | (92 | ) | (1.63 | ) | (110 | ) | (1.73 | ) | ||||||||
Preferred dividends | (58 | ) | (1.02 | ) | (62 | ) | (0.97 | ) | ||||||||
Operating earnings | 722 | 12.79 | 664 | 10.43 | ||||||||||||
Net realized and unrealized investment (losses) gains, net of tax | (127 | ) | (2.25 | ) | 392 | 6.17 | ||||||||||
Net foreign exchange gains, net of tax | 2 | 0.04 | 8 | 0.13 | ||||||||||||
Loss on redemption of preferred shares | (9 | ) | (0.16 | ) | — | — | ||||||||||
Interest in earnings of equity method investments, net of tax | 9 | 0.16 | 9 | 0.14 | ||||||||||||
Net income attributable to PartnerRe common shareholders | 597 | 10.58 | 1,073 | 16.87 | ||||||||||||
Common share dividends | (142 | ) | (2.56 | ) | (156 | ) | (2.48 | ) | ||||||||
Change in currency translation adjustment | (32 | ) | (0.56 | ) | 28 | 0.45 | ||||||||||
Repurchase of common shares, net | (616 | ) | 0.84 | (474 | ) | 2.07 | ||||||||||
Preferred shares issuance costs | (9 | ) | (0.15 | ) | — | — | ||||||||||
Recognition of loss on redemption of preferred shares | 9 | 0.16 | — | — | ||||||||||||
Change in other accumulated comprehensive income or loss, net of tax | 9 | 0.16 | (5 | ) | (0.08 | ) | ||||||||||
Impact of change in number of common and common share equivalents outstanding | n/a | (0.05 | ) | n/a | (0.81 | ) | ||||||||||
Common shareholders’ equity attributable to PartnerRe / diluted book value per common share at end of period | $ | 5,856 | $ | 109.26 | $ | 6,040 | $ | 100.84 | ||||||||
Goodwill | (456 | ) | (8.51 | ) | (456 | ) | (7.62 | ) | ||||||||
Intangibles, net of tax | (121 | ) | (2.26 | ) | (142 | ) | (2.36 | ) | ||||||||
Tangible common shareholders’ equity attributable to PartnerRe / diluted tangible book value per common share at end of period | $ | 5,279 | $ | 98.49 | $ | 5,442 | $ | 90.86 |
Contacts: | PartnerRe Ltd. | Sard Verbinnen & Co. | ||
(441) 292-0888 | (212) 687-8080 | |||
Investor Contact: Robin Sidders | Drew Brown/Daniel Goldstein | |||
Media Contact: Celia Powell |
PartnerRe Ltd. Wellesley House, 5th Floor 90 Pitts Bay Road Pembroke, Bermuda HM 08 | Telephone +1 441 292 0888 Fax +1 441 292 6080 www.partnerre.com |
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