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) |
c | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
c | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
c | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
c | 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 October 26, 2015 | |
99.2 | Financial Supplement | |
99.3 | Press Release of PartnerRe Ltd., dated October 26, 2015 |
PartnerRe Ltd. | ||||||||
(Registrant) | ||||||||
Date: | October 26, 2015 | By: | /s/ Marc Wetherhill | |||||
Name: Marc Wetherhill | ||||||||
Title: Chief Legal Counsel |
Exhibit No. | Description | ||
99.1 | Press Release of PartnerRe Ltd., dated October 26, 2015 | ||
99.2 | Financial Supplement | ||
99.3 | Press Release of PartnerRe Ltd., dated October 26, 2015 |
• | Third Quarter Operating Earnings per share of $4.42; Net Loss per share of $5.08 |
• | Third Quarter Annualized Operating ROE of 14.0%; Annualized Net Loss ROE of 16.1% |
• | Nine Month Operating Earnings per share of $9.95; Net Loss per share of $2.40 |
• | Nine Month Annualized Operating ROE of 10.5%; Annualized Net Loss ROE of 2.5% |
• | Book Value of $120.67 per share, down 5.2% for the quarter and down 4.4% year-to-date |
• | Tangible Book Value of $109.46 per share, down 5.6% for the quarter and down 4.6% 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 third quarter, net premiums written of $1.2 billion were down 11%. On a constant foreign exchange basis, net premiums written were down 5% primarily driven by decreases reported in the Catastrophe and North America Non-life sub-segments. For the first nine months of 2015, net premiums written of $4.2 billion were down 7%. On a constant foreign exchange basis, net premiums written were down 1% primarily due to the Catastrophe and North America Non-Life sub-segments. These decreases were partially offset by an increase in the Life and Health segment. |
• | For the third quarter, net premiums earned of $1.4 billion were down 9%. On a constant foreign exchange basis, net premiums earned were down 3% primarily due to the Catastrophe and North America Non-life sub-segments. For the first nine months of 2015, net premiums earned of $4.0 billion were down 5%. On a constant foreign exchange basis, net premiums earned were up 2%, primarily due to the Life and Health segment, and, to a lesser extent, the Global Specialty and Global (Non-U.S.) P&C Non-life sub-segments. These increases were partially offset by decreases in the Catastrophe Non-life sub-segment. |
• | For the third quarter, the Non-life combined ratio was 82.8%. The combined ratio benefited from favorable prior year development of 22.2 points (or $246 million) and included 5.4 points (or $60 million) of large losses related to the Tianjin explosion. All Non-life sub-segments experienced net favorable development from prior accident years during the third quarter of 2015. For the first nine months of 2015, the Non-life combined ratio was 85.3%. The combined ratio benefited from favorable prior year development of 21.0 points (or $644 million) and included 2.0 points (or $60 |
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 third quarter, other expenses of $416 million include the termination fee and reimbursement of expenses paid to Axis Capital of $315 million, or $6.58 per diluted share. Additionally, other expenses include other Axis Capital and Exor transaction related expenses of $7 million, pre-tax, or $0.15 per diluted share, pre-tax. For the first nine months of 2015, other expenses of $670 million include the termination fee and reimbursement of expenses paid to Axis Capital of $315 million, or $6.60 per diluted share. Additionally, other expenses include other Axis Capital and Exor transaction related expenses of $47 million, pre-tax, or $0.98 per diluted share, pre-tax, and costs related to the negotiated earn-out consideration paid to the former shareholders of Presidio Reinsurance Group, Inc. of $25 million, or $0.53, per diluted share, pre-tax. |
• | For the third quarter, net investment income of $117 million was down 1%. On a constant foreign exchange basis, net investment income was up 3% reflecting additional income from higher yielding securities. For the first nine months of 2015, net investment income of $342 million was down 6%. On a constant foreign exchange basis, net investment income was down 3% primarily reflecting lower reinvestment rates. |
• | For the third quarter and first nine months of 2015, pre-tax net realized and unrealized investment losses were $133 million and $273 million, respectively, primarily reflecting widening U.S. and European credit spreads and decreases in worldwide equity markets. The losses in net realized and unrealized investment losses for the third quarter were partially offset by decreases in longer-term U.S. and European risk-free rates. |
• | For the third quarter, the effective tax rate on operating earnings and non-operating losses was 12.9% and 3.4%, respectively. For the first nine months of 2015, the effective tax rate on operating earnings and non-operating losses was 15.2% and 1.7%, respectively. |
• | Total investments, cash and funds held – directly managed were $16.3 billion at September 30, 2015, down 5% compared to December 31, 2014. The decrease was primarily due to cash flows out of the portfolio to fund the termination fee and reimbursement of expenses paid to Axis Capital, the impact of the strengthening U.S. dollar, and the widening of U.S. and European credit spreads. |
• | Net Non-life loss and loss expense reserves were $9.3 billion at September 30, 2015, down 2% compared to December 31, 2014, primarily reflecting the impacts of foreign exchange. |
• | Net policy benefits for life and annuity contracts were $2.1 billion at September 30, 2015, up 3% compared to December 31, 2014, primarily due to growth in the business, which was partially offset by the impacts of foreign exchange. |
• | Total capital was $7.6 billion at September 30, 2015, down 3% compared to December 31, 2014, primarily due to the net loss for the first nine months of 2015 and 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 |
• | Total shareholders’ equity attributable to PartnerRe was $6.8 billion at September 30, 2015, down 4% compared to December 31, 2014, due to the same factors described above for total capital. |
• | Book value per common share was $120.67 at September 30, 2015, down 4% compared to $126.21 at December 31, 2014. Tangible book value per common share was $109.46 at September 30, 2015, down 5% compared to $114.76 at December 31, 2014. The decreases were primarily driven by the net loss and common and preferred dividend payments. |
• | For the third quarter, the Non-life segment’s net premiums written were down 12%. On a constant foreign exchange basis, net premiums written were down 7%. For the first nine months of 2015, the Non-life segment’s net premiums written were down 10%. On a constant foreign exchange basis, net premiums written were down 4%. The decreases on a constant foreign exchange basis for both the third quarter and first nine months of 2015 were reported in all sub-segments, except for a modest increase in the Global (Non-U.S.) P&C sub-segment. |
• | For the third quarter, the North America sub-segment’s net premiums written were down 10%. On a constant foreign exchange basis, net premiums written were down 9% with the decrease driven by cancellations across multiple lines of business, downward premium adjustments in the agriculture line and higher premiums ceded in the credit/surety and agriculture lines of business. This sub-segment reported a technical ratio of 78.1%, which included 25.1 points (or $102 million) of net favorable prior year loss development. For the first nine months of 2015, the North America sub-segment’s net premiums written were down 6%, primarily due to the same factors describing the third quarter. This sub-segment reported a technical ratio of 83.8%, which included 19.3 points (or $229 million) of net favorable prior year loss development. |
• | For the third quarter, the Global (Non-U.S.) P&C sub-segment’s net premiums written were down 7%. On a constant foreign exchange basis, net premiums written were up 5% primarily due to new business written across all lines of business, which was partially offset by an increased participation on an existing motor treaty recorded in the same period of 2014. This sub-segment reported a technical ratio of 92.7%, which included 20.7 points (or $38 million) of net favorable prior year loss development, and included 12.1 points (or $22 million) of large losses related to the Tianjin explosion. For the first nine months of 2015, the Global (Non-U.S.) P&C sub-segment’s net premiums written were down 8%. On a constant foreign exchange basis, net premiums written were up 3% primarily due to new business written across all lines of business, which was partially offset by cancellations and downward premium adjustments in the property and motor lines of business. This sub-segment reported a technical ratio of 96.6%, which included 12.9 points (or $67 million) of net favorable prior year loss development, and included 4.3 points (or $22 million) of large losses related to the Tianjin explosion. |
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 third quarter, the Global Specialty sub-segment’s net premiums written were down 9%. On a constant foreign exchange basis, net premiums written were down 2% primarily due to downward premium adjustments in multiple lines of business and the impact of cancellations in prior periods across multiple lines of business. These decreases in net premiums written were partially offset by new business written in prior periods across multiple lines of business. This sub-segment reported a technical ratio of 83.2%, which included 25.6 points (or $104 million) of net favorable prior year loss development, and included 4.6 points (or $19 million) of large losses related to the Tianjin explosion. For the first nine months of 2015, the Global Specialty sub-segment’s net premiums written were down 8%. On a constant foreign exchange basis, net premiums written were down 1% primarily due to cancellations, reduced participations and downward prior year premium adjustments across multiple lines of business, which were partially offset by new business written across multiple lines of business in prior periods and lower premiums ceded under the Company's retrocessional programs. This sub-segment reported a technical ratio of 78.7%, which included 28.3 points (or $323 million) of net favorable prior year loss development, and included 1.6 points (or $19 million) of large losses related to the Tianjin explosion. |
• | For the third quarter, the Catastrophe sub-segment’s net premiums written were down 75%. On a constant foreign exchange basis, net premiums written were down 65% primarily due to higher premiums ceded under the Company's retrocessional programs and, to a lesser extent, cancellations and non-renewals. These decreases in net premiums written were partially offset by new business. This sub-segment reported a technical ratio of 33.6%, which included 1.3 points (or $2 million) of net favorable prior year loss development, and included 14.5 points (or $16 million) of large losses related to the Tianjin explosion. For the first nine months of 2015, the Catastrophe sub-segment’s net premiums written were down 29%. On a constant foreign exchange basis, net premiums written were down 23% primarily due to the same factors describing the third quarter. This sub-segment reported a technical ratio of 25.9%, which included 11.7 points (or $25 million) of net favorable prior year loss development, and included 7.6 points (or $16 million) of large losses related to the Tianjin explosion. |
• | For the third quarter, the Life and Health segment’s net premiums written were down 8%. On a constant foreign exchange basis, net premiums written were up 1% with the increase primarily driven by PartnerRe Health’s accident and health line of business, which was partially offset by decreases in the longevity and mortality lines of business. For the first nine months of 2015, the Life and Health segment’s net premiums written were up 1%. On a constant foreign exchange basis, net premiums written were up 9% primarily driven by PartnerRe Health’s accident and health line of business, an increase in our participation on a significant longevity treaty and new short-term business written in the mortality line. |
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 third quarter, the Life and Health segment’s allocated underwriting result, which includes allocated investment income and other expenses, decreased to $18 million compared to $20 million in the same period of 2014. This decrease was primarily due to adverse prior year loss development related to the GMDB line of business partially offset by increased favorable prior year loss development on PartnerRe Health's accident and health line of business. For the first nine months of 2015, the Life and Health segment’s allocated underwriting result, which includes allocated investment income and other expenses, increased to $69 million compared to $52 million in the same period of 2014 primarily due to an increase in net favorable prior year loss development. |
• | For the third quarter, investment activities contributed losses of $34 million to the pre-tax net loss, excluding investment income allocated to the Life and Health segment. Of this amount, income of $100 million was included in pre-tax operating earnings and a loss of $134 million related to net realized and unrealized losses on investments and losses from equity method investee companies was included in pre-tax non-operating losses. For the first nine months of 2015, investment activities contributed income of $29 million to the pre-tax net loss, excluding investment income allocated to the Life and Health segment. Of this amount, income of $298 million was included in pre-tax operating earnings and losses of $269 million related to net realized and unrealized losses on investments and earnings from equity method investee companies was included in pre-tax non-operating losses. |
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 September 30, 2015 | For the three months ended September 30, 2014 | For the nine months ended September 30, 2015 | For the nine months ended September 30, 2014 | ||||||||||||
Revenues | |||||||||||||||
Gross premiums written | $ | 1,267,961 | $ | 1,361,280 | $ | 4,448,907 | $ | 4,695,327 | |||||||
Net premiums written | $ | 1,190,393 | $ | 1,342,690 | $ | 4,165,912 | $ | 4,499,849 | |||||||
Decrease (increase) in unearned premiums | 221,737 | 213,924 | (191,235 | ) | (336,384 | ) | |||||||||
Net premiums earned | 1,412,130 | 1,556,614 | 3,974,677 | 4,163,465 | |||||||||||
Net investment income | 117,054 | 118,176 | 341,877 | 365,010 | |||||||||||
Net realized and unrealized investment (losses) gains | (133,017 | ) | (34,420 | ) | (273,107 | ) | 273,468 | ||||||||
Other income | 3,056 | 2,223 | 7,584 | 11,892 | |||||||||||
Total revenues | 1,399,223 | 1,642,593 | 4,051,031 | 4,813,835 | |||||||||||
Expenses | |||||||||||||||
Losses and loss expenses and life policy benefits | 804,196 | 959,543 | 2,390,394 | 2,592,847 | |||||||||||
Acquisition costs | 346,520 | 321,756 | 905,774 | 888,937 | |||||||||||
Other expenses (1) (2) | 415,818 | 108,615 | 670,334 | 327,149 | |||||||||||
Interest expense | 12,249 | 12,241 | 36,742 | 36,719 | |||||||||||
Amortization of intangible assets | 6,768 | 7,003 | 20,303 | 21,007 | |||||||||||
Net foreign exchange losses (gains) | 22,413 | (8,206 | ) | 15,657 | (10,900 | ) | |||||||||
Total expenses | 1,607,964 | 1,400,952 | 4,039,204 | 3,855,759 | |||||||||||
(Loss) income before taxes and interest in (losses) earnings of equity method investments | (208,741 | ) | 241,641 | 11,827 | 958,076 | ||||||||||
Income tax expense | 17,170 | 45,617 | 82,990 | 186,363 | |||||||||||
Interest in (losses) earnings of equity method investments | (3,231 | ) | 5,294 | 1,564 | 16,283 | ||||||||||
Net (loss) income | (229,142 | ) | 201,318 | (69,599 | ) | 787,996 | |||||||||
Net loss (income) attributable to noncontrolling interests | 5 | (4,920 | ) | (2,531 | ) | (9,914 | ) | ||||||||
Net (loss) income attributable to PartnerRe | (229,137 | ) | 196,398 | (72,130 | ) | 778,082 | |||||||||
Preferred dividends | 14,184 | 14,184 | 42,551 | 42,551 | |||||||||||
Net (loss) income attributable to PartnerRe common shareholders | $ | (243,321 | ) | $ | 182,214 | $ | (114,681 | ) | $ | 735,531 | |||||
Operating earnings attributable to PartnerRe common shareholders | $ | 211,583 | $ | 226,660 | $ | 474,614 | $ | 537,078 | |||||||
Comprehensive (loss) income attributable to PartnerRe | $ | (267,720 | ) | $ | 198,578 | $ | (106,874 | ) | $ | 781,602 | |||||
Earnings and dividends per share data attributable to PartnerRe common shareholders: | |||||||||||||||
Basic operating earnings | $ | 4.42 | $ | 4.58 | $ | 9.95 | $ | 10.64 | |||||||
Net realized and unrealized investment (losses) gains, net of tax | (2.54 | ) | (0.72 | ) | (5.00 | ) | 4.05 | ||||||||
Net foreign exchange losses, net of tax | (0.33 | ) | (0.24 | ) | (0.77 | ) | (0.32 | ) | |||||||
Interest in (losses) earnings of equity method investments, net of tax | (0.05 | ) | 0.06 | 0.02 | 0.21 | ||||||||||
Amalgamation termination fee and reimbursement of expenses (2) | (6.58 | ) | — | (6.60 | ) | — | |||||||||
Basic net (loss) income | $ | (5.08 | ) | $ | 3.68 | $ | (2.40 | ) | $ | 14.58 | |||||
Weighted average number of common shares outstanding | 47,866,040 | 49,514,980 | 47,722,833 | 50,461,749 | |||||||||||
Diluted operating earnings (1) | $ | 4.42 | $ | 4.47 | $ | 9.95 | $ | 10.42 | |||||||
Net realized and unrealized investment (losses) gains, net of tax | (2.54 | ) | (0.70 | ) | (5.00 | ) | 3.95 | ||||||||
Net foreign exchange losses, net of tax | (0.33 | ) | (0.23 | ) | (0.77 | ) | (0.31 | ) | |||||||
Interest in (losses) earnings of equity method investments, net of tax | (0.05 | ) | 0.06 | 0.02 | 0.20 | ||||||||||
Amalgamation termination fee and reimbursement of expenses (2) | (6.58 | ) | — | (6.60 | ) | — | |||||||||
Diluted net (loss) income | $ | (5.08 | ) | $ | 3.60 | $ | (2.40 | ) | $ | 14.26 | |||||
Weighted average number of common shares and common share equivalents outstanding | 47,866,040 | 50,681,325 | 47,722,833 | 51,566,134 | |||||||||||
Dividends declared per common share | $ | 0.70 | $ | 0.67 | $ | 2.10 | $ | 2.01 | |||||||
(1) Other expenses for the three months and nine months ended September 30, 2015 include $7 million and $47 million, respectively, of aggregate expenses related to the Axis and Exor transactions, pre-tax, or $0.15 and $0.98, respectively, per diluted share, pre-tax. In addition, other expenses for the nine months ended September 30, 2015 include $25 million, pre-tax, related to the negotiated earn-out consideration paid to the former shareholders of Presidio Reinsurance Group, Inc., or $0.53 per diluted share, pre-tax. | |||||||||||||||
(2) Other expenses for the three months and nine months ended September 30, 2015 include the amalgamation termination fee and reimbursement of expenses of $315 million, or $6.58 and $6.60, respectively, per diluted share. |
September 30, | December 31, | ||||||
2015 | 2014 | ||||||
Assets | |||||||
Investments: | |||||||
Fixed maturities, at fair value | $ | 13,026,249 | $ | 13,918,745 | |||
Short-term investments, at fair value | 100,365 | 25,678 | |||||
Equities, at fair value | 1,004,116 | 1,056,514 | |||||
Other invested assets | 344,720 | 298,827 | |||||
Total investments | 14,475,450 | 15,299,764 | |||||
Funds held – directly managed | 595,677 | 608,853 | |||||
Cash and cash equivalents | 1,256,304 | 1,313,468 | |||||
Accrued investment income | 142,892 | 158,737 | |||||
Reinsurance balances receivable | 3,079,002 | 2,454,850 | |||||
Reinsurance recoverable on paid and unpaid losses | 329,834 | 246,158 | |||||
Funds held by reinsured companies | 671,572 | 765,905 | |||||
Deferred acquisition costs | 684,380 | 661,186 | |||||
Deposit assets | 83,729 | 92,973 | |||||
Net tax assets | 72,257 | 6,876 | |||||
Goodwill | 456,380 | 456,380 | |||||
Intangible assets | 139,301 | 159,604 | |||||
Other assets | 38,450 | 45,603 | |||||
Total assets | $ | 22,025,228 | $ | 22,270,357 | |||
Liabilities | |||||||
Unpaid losses and loss expenses | $ | 9,522,225 | $ | 9,745,806 | |||
Policy benefits for life and annuity contracts | 2,123,028 | 2,050,107 | |||||
Unearned premiums | 1,934,360 | 1,750,607 | |||||
Other reinsurance balances payable | 288,402 | 182,395 | |||||
Deposit liabilities | 42,336 | 70,325 | |||||
Net tax liabilities | 231,223 | 240,989 | |||||
Accounts payable, accrued expenses and other | 285,316 | 304,728 | |||||
Debt related to senior notes | 750,000 | 750,000 | |||||
Debt related to capital efficient notes | 70,989 | 70,989 | |||||
Total liabilities | 15,247,879 | 15,165,946 | |||||
Shareholders’ Equity | |||||||
Common shares (par value $1.00; issued: 2015 and 2014, 87,237,220 shares) | 87,237 | 87,237 | |||||
Preferred shares (par value $1.00; issued and outstanding: 2015 and 2014, 34,150,000 shares; aggregate liquidation value: 2015 and 2014, $853,750) | 34,150 | 34,150 | |||||
Additional paid-in capital | 3,971,974 | 3,949,665 | |||||
Accumulated other comprehensive loss | (68,827 | ) | (34,083 | ) | |||
Retained earnings | 6,019,786 | 6,270,811 | |||||
Common shares held in treasury, at cost (2015, 39,335,464 shares; 2014, 39,400,936 shares) | (3,269,183 | ) | (3,258,870 | ) | |||
Total shareholders’ equity attributable to PartnerRe | 6,775,137 | 7,048,910 | |||||
Noncontrolling interests | 2,212 | 55,501 | |||||
Total shareholders’ equity | 6,777,349 | 7,104,411 | |||||
Total liabilities and shareholders’ equity | $ | 22,025,228 | $ | 22,270,357 | |||
Diluted Book Value Per Common Share and Common Share Equivalents Outstanding (1) (2) | $ | 120.67 | $ | 126.21 | |||
Diluted Tangible Book Value Per Common Share and Common Share Equivalents Outstanding (1) (2) | $ | 109.46 | $ | 114.76 | |||
Number of Common Shares and Common Share Equivalents Outstanding (2) | 49,070,138 | 49,087,412 |
(1) | Excludes the aggregate liquidation value of preferred shares (2015 and 2014, $853,750) and noncontrolling interests (2015, $2,212; 2014, $55,501). |
(2) | Common share and common share equivalents outstanding are calculated using the Treasury Method for all potentially dilutive shares. |
For the three months ended September 30, 2015 | |||||||||||||||||||||||||||||||
North America | Global (Non-U.S.) P&C | Global Specialty | Catastrophe | Total Non-life segment | Life and Health segment | Corporate and Other | Total | ||||||||||||||||||||||||
Gross premiums written | $ | 351 | $ | 153 | $ | 393 | $ | 57 | $ | 954 | $ | 314 | $ | — | $ | 1,268 | |||||||||||||||
Net premiums written | $ | 335 | $ | 153 | $ | 391 | $ | 13 | $ | 892 | $ | 298 | $ | — | $ | 1,190 | |||||||||||||||
Decrease in unearned premiums | 73 | 33 | 13 | 99 | 218 | 4 | — | 222 | |||||||||||||||||||||||
Net premiums earned | $ | 408 | $ | 186 | $ | 404 | $ | 112 | $ | 1,110 | $ | 302 | $ | — | $ | 1,412 | |||||||||||||||
Losses and loss expenses and life policy benefits | (182 | ) | (122 | ) | (224 | ) | (28 | ) | (556 | ) | (248 | ) | — | (804 | ) | ||||||||||||||||
Acquisition costs | (137 | ) | (50 | ) | (112 | ) | (10 | ) | (309 | ) | (38 | ) | — | (347 | ) | ||||||||||||||||
Technical result | $ | 89 | $ | 14 | $ | 68 | $ | 74 | $ | 245 | $ | 16 | $ | — | $ | 261 | |||||||||||||||
Other income | — | 3 | — | 3 | |||||||||||||||||||||||||||
Other expenses | (55 | ) | (16 | ) | (345 | ) | (416 | ) | |||||||||||||||||||||||
Underwriting result | $ | 190 | $ | 3 | n/a | $ | (152 | ) | |||||||||||||||||||||||
Net investment income | 15 | 102 | 117 | ||||||||||||||||||||||||||||
Allocated underwriting result (1) | $ | 18 | n/a | n/a | |||||||||||||||||||||||||||
Net realized and unrealized investment losses | (133 | ) | (133 | ) | |||||||||||||||||||||||||||
Interest expense | (12 | ) | (12 | ) | |||||||||||||||||||||||||||
Amortization of intangible assets | (7 | ) | (7 | ) | |||||||||||||||||||||||||||
Net foreign exchange losses | (22 | ) | (22 | ) | |||||||||||||||||||||||||||
Income tax expense | (17 | ) | (17 | ) | |||||||||||||||||||||||||||
Interest in losses of equity method investments | (3 | ) | (3 | ) | |||||||||||||||||||||||||||
Net loss | n/a | $ | (229 | ) | |||||||||||||||||||||||||||
Loss ratio (2) | 44.7 | % | 65.8 | % | 55.5 | % | 24.9 | % | 50.1 | % | |||||||||||||||||||||
Acquisition ratio (3) | 33.4 | 26.9 | 27.7 | 8.7 | 27.8 | ||||||||||||||||||||||||||
Technical ratio (4) | 78.1 | % | 92.7 | % | 83.2 | % | 33.6 | % | 77.9 | % | |||||||||||||||||||||
Other expense ratio (5) | 4.9 | ||||||||||||||||||||||||||||||
Combined ratio (6) | 82.8 | % | |||||||||||||||||||||||||||||
For the three months ended September 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 | $ | 372 | $ | 162 | $ | 432 | $ | 59 | $ | 1,025 | $ | 336 | $ | — | $ | 1,361 | |||||||||||||||
Net premiums written | $ | 372 | $ | 164 | $ | 428 | $ | 55 | $ | 1,019 | $ | 325 | $ | (1 | ) | $ | 1,343 | ||||||||||||||
Decrease in unearned premiums | 52 | 38 | 20 | 98 | 208 | 6 | — | 214 | |||||||||||||||||||||||
Net premiums earned | $ | 424 | $ | 202 | $ | 448 | $ | 153 | $ | 1,227 | $ | 331 | $ | (1 | ) | $ | 1,557 | ||||||||||||||
Losses and loss expenses and life policy benefits | (247 | ) | (123 | ) | (279 | ) | (39 | ) | (688 | ) | (272 | ) | — | (960 | ) | ||||||||||||||||
Acquisition costs | (106 | ) | (56 | ) | (105 | ) | (17 | ) | (284 | ) | (38 | ) | — | (322 | ) | ||||||||||||||||
Technical result | $ | 71 | $ | 23 | $ | 64 | $ | 97 | $ | 255 | $ | 21 | $ | (1 | ) | $ | 275 | ||||||||||||||
Other (loss) income | (1 | ) | 2 | 1 | 2 | ||||||||||||||||||||||||||
Other expenses | (62 | ) | (17 | ) | (29 | ) | (108 | ) | |||||||||||||||||||||||
Underwriting result | $ | 192 | $ | 6 | n/a | $ | 169 | ||||||||||||||||||||||||
Net investment income | 14 | 104 | 118 | ||||||||||||||||||||||||||||
Allocated underwriting result (1) | $ | 20 | n/a | n/a | |||||||||||||||||||||||||||
Net realized and unrealized investment losses | (34 | ) | (34 | ) | |||||||||||||||||||||||||||
Interest expense | (12 | ) | (12 | ) | |||||||||||||||||||||||||||
Amortization of intangible assets | (7 | ) | (7 | ) | |||||||||||||||||||||||||||
Net foreign exchange gains | 8 | 8 | |||||||||||||||||||||||||||||
Income tax expense | (46 | ) | (46 | ) | |||||||||||||||||||||||||||
Interest in earnings of equity method investments | 5 | 5 | |||||||||||||||||||||||||||||
Net income | n/a | $ | 201 | ||||||||||||||||||||||||||||
Loss ratio (2) | 58.2 | % | 61.1 | % | 62.3 | % | 25.2 | % | 56.1 | % | |||||||||||||||||||||
Acquisition ratio (3) | 24.9 | 27.6 | 23.5 | 11.7 | 23.1 | ||||||||||||||||||||||||||
Technical ratio (4) | 83.1 | % | 88.7 | % | 85.8 | % | 36.9 | % | 79.2 | % | |||||||||||||||||||||
Other expense ratio (5) | 5.0 | ||||||||||||||||||||||||||||||
Combined ratio (6) | 84.2 | % |
(1) | Allocated underwriting result is defined as net premiums earned, other income or loss and allocated net investment income less life policy benefits, acquisition costs and other expenses. |
(2) | Loss ratio is obtained by dividing losses and loss expenses by net premiums earned. |
(3) | Acquisition ratio is obtained by dividing acquisition costs by net premiums earned. |
(4) | Technical ratio is defined as the sum of the loss ratio and the acquisition ratio. |
(5) | Other expense ratio is obtained by dividing other expenses by net premiums earned. |
(6) | Combined ratio is defined as the sum of the technical ratio and the other expense ratio. |
For the nine months ended September 30, 2015 | |||||||||||||||||||||||||||||||
North America | Global (Non-U.S.) P&C | Global Specialty | Catastrophe | Total Non-life segment | Life and Health segment | Corporate and Other | Total | ||||||||||||||||||||||||
Gross premiums written | $ | 1,251 | $ | 630 | $ | 1,226 | $ | 370 | $ | 3,477 | $ | 972 | $ | — | $ | 4,449 | |||||||||||||||
Net premiums written | $ | 1,207 | $ | 621 | $ | 1,153 | $ | 261 | $ | 3,242 | $ | 924 | $ | — | $ | 4,166 | |||||||||||||||
Increase in unearned premiums | (25 | ) | (102 | ) | (10 | ) | (47 | ) | (184 | ) | (7 | ) | — | (191 | ) | ||||||||||||||||
Net premiums earned | $ | 1,182 | $ | 519 | $ | 1,143 | $ | 214 | $ | 3,058 | $ | 917 | $ | — | $ | 3,975 | |||||||||||||||
Losses and loss expenses and life policy benefits | (650 | ) | (362 | ) | (593 | ) | (38 | ) | (1,643 | ) | (748 | ) | 1 | (2,390 | ) | ||||||||||||||||
Acquisition costs | (341 | ) | (139 | ) | (307 | ) | (17 | ) | (804 | ) | (102 | ) | — | (906 | ) | ||||||||||||||||
Technical result | $ | 191 | $ | 18 | $ | 243 | $ | 159 | $ | 611 | $ | 67 | $ | 1 | $ | 679 | |||||||||||||||
Other income | — | 4 | 3 | 7 | |||||||||||||||||||||||||||
Other expenses | (162 | ) | (47 | ) | (461 | ) | (670 | ) | |||||||||||||||||||||||
Underwriting result | $ | 449 | $ | 24 | n/a | $ | 16 | ||||||||||||||||||||||||
Net investment income | 45 | 297 | 342 | ||||||||||||||||||||||||||||
Allocated underwriting result (1) | $ | 69 | n/a | n/a | |||||||||||||||||||||||||||
Net realized and unrealized investment losses | (273 | ) | (273 | ) | |||||||||||||||||||||||||||
Interest expense | (37 | ) | (37 | ) | |||||||||||||||||||||||||||
Amortization of intangible assets | (20 | ) | (20 | ) | |||||||||||||||||||||||||||
Net foreign exchange losses | (16 | ) | (16 | ) | |||||||||||||||||||||||||||
Income tax expense | (83 | ) | (83 | ) | |||||||||||||||||||||||||||
Interest in earnings of equity method investments | 1 | 1 | |||||||||||||||||||||||||||||
Net loss | n/a | $ | (70 | ) | |||||||||||||||||||||||||||
Loss ratio (2) | 55.0 | % | 69.8 | % | 51.9 | % | 17.8 | % | 53.7 | % | |||||||||||||||||||||
Acquisition ratio (3) | 28.8 | 26.8 | 26.8 | 8.1 | 26.3 | ||||||||||||||||||||||||||
Technical ratio (4) | 83.8 | % | 96.6 | % | 78.7 | % | 25.9 | % | 80.0 | % | |||||||||||||||||||||
Other expense ratio (5) | 5.3 | ||||||||||||||||||||||||||||||
Combined ratio (6) | 85.3 | % | |||||||||||||||||||||||||||||
For the nine months ended September 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 | $ | 1,302 | $ | 682 | $ | 1,348 | $ | 412 | $ | 3,744 | $ | 951 | $ | — | $ | 4,695 | |||||||||||||||
Net premiums written | $ | 1,291 | $ | 672 | $ | 1,250 | $ | 370 | $ | 3,583 | $ | 918 | $ | (1 | ) | $ | 4,500 | ||||||||||||||
Increase in unearned premiums | (99 | ) | (104 | ) | (42 | ) | (78 | ) | (323 | ) | (14 | ) | — | (337 | ) | ||||||||||||||||
Net premiums earned | $ | 1,192 | $ | 568 | $ | 1,208 | $ | 292 | $ | 3,260 | $ | 904 | $ | (1 | ) | $ | 4,163 | ||||||||||||||
Losses and loss expenses and life policy benefits | (747 | ) | (319 | ) | (749 | ) | (38 | ) | (1,853 | ) | (740 | ) | — | (2,593 | ) | ||||||||||||||||
Acquisition costs | (299 | ) | (162 | ) | (283 | ) | (34 | ) | (778 | ) | (111 | ) | — | (889 | ) | ||||||||||||||||
Technical result | $ | 146 | $ | 87 | $ | 176 | $ | 220 | $ | 629 | $ | 53 | $ | (1 | ) | $ | 681 | ||||||||||||||
Other income | 1 | 6 | 5 | 12 | |||||||||||||||||||||||||||
Other expenses | (187 | ) | (52 | ) | (88 | ) | (327 | ) | |||||||||||||||||||||||
Underwriting result | $ | 443 | $ | 7 | n/a | $ | 366 | ||||||||||||||||||||||||
Net investment income | 45 | 320 | 365 | ||||||||||||||||||||||||||||
Allocated underwriting result (1) | $ | 52 | n/a | n/a | |||||||||||||||||||||||||||
Net realized and unrealized investment gains | 273 | 273 | |||||||||||||||||||||||||||||
Interest expense | (36 | ) | (36 | ) | |||||||||||||||||||||||||||
Amortization of intangible assets | (21 | ) | (21 | ) | |||||||||||||||||||||||||||
Net foreign exchange gains | 11 | 11 | |||||||||||||||||||||||||||||
Income tax expense | (186 | ) | (186 | ) | |||||||||||||||||||||||||||
Interest in earnings of equity method investments | 16 | 16 | |||||||||||||||||||||||||||||
Net income | n/a | $ | 788 | ||||||||||||||||||||||||||||
Loss ratio (2) | 62.6 | % | 56.2 | % | 62.1 | % | 12.9 | % | 56.8 | % | |||||||||||||||||||||
Acquisition ratio (3) | 25.1 | 28.5 | 23.4 | 11.5 | 23.9 | ||||||||||||||||||||||||||
Technical ratio (4) | 87.7 | % | 84.7 | % | 85.5 | % | 24.4 | % | 80.7 | % | |||||||||||||||||||||
Other expense ratio (5) | 5.7 | ||||||||||||||||||||||||||||||
Combined ratio (6) | 86.4 | % |
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 (Loss) Income | |
Segment Information | |
For the three months ended September 30, 2015 and 2014 | |
For the nine months ended September 30, 2015 and 2014 | |
Non-life segment | |
North America sub-segment | |
Global (Non-U.S.) P&C sub-segment | |
Global Specialty sub-segment | |
Catastrophe sub-segment | |
Life and Health segment | |
Corporate and Other | |
Distribution of Premiums | |
Distribution of Premiums by line of business, geography and production source | |
Distribution of Premiums by reinsurance type for the Non-life sub-segment | |
Investments | |
Investment Portfolio | |
Distribution of Corporate Bonds | |
Distribution of Equities | |
Distribution of Mortgage/Asset-Backed Securities | |
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 (Losses) Gains | |
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) - Single Occurrence Estimated Net PML Exposure | |
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 | |||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | |||||||||||||||
Revenues | |||||||||||||||||||
Gross premiums written | $ | 1,267,961 | $ | 1,432,012 | $ | 1,748,933 | $ | 1,236,676 | $ | 1,361,280 | |||||||||
Net premiums written | $ | 1,190,393 | $ | 1,322,304 | $ | 1,653,215 | $ | 1,220,035 | $ | 1,342,690 | |||||||||
Decrease (increase) in unearned premiums | 221,737 | 5,522 | (418,493 | ) | 225,695 | 213,924 | |||||||||||||
Net premiums earned | 1,412,130 | 1,327,826 | 1,234,722 | 1,445,730 | 1,556,614 | ||||||||||||||
Net investment income | 117,054 | 120,192 | 104,631 | 114,686 | 118,176 | ||||||||||||||
Net realized and unrealized investment (losses) gains | (133,017 | ) | (255,734 | ) | 115,645 | 98,329 | (34,420 | ) | |||||||||||
Other income | 3,056 | 236 | 4,292 | 4,297 | 2,223 | ||||||||||||||
Total revenues | 1,399,223 | 1,192,520 | 1,459,290 | 1,663,042 | 1,642,593 | ||||||||||||||
Expenses | |||||||||||||||||||
Losses and loss expenses and life policy benefits | 804,196 | 864,917 | 721,281 | 869,923 | 959,543 | ||||||||||||||
Acquisition costs | 346,520 | 283,463 | 275,791 | 324,884 | 321,756 | ||||||||||||||
Other expenses (1) (2) (3) | 415,818 | 129,766 | 124,750 | 122,539 | 108,615 | ||||||||||||||
Interest expense | 12,249 | 12,248 | 12,245 | 12,244 | 12,241 | ||||||||||||||
Amortization of intangible assets | 6,768 | 6,767 | 6,768 | 6,479 | 7,003 | ||||||||||||||
Net foreign exchange losses (gains) | 22,413 | 6,391 | (13,147 | ) | (7,301 | ) | (8,206 | ) | |||||||||||
Total expenses | 1,607,964 | 1,303,552 | 1,127,688 | 1,328,768 | 1,400,952 | ||||||||||||||
(Loss) income before taxes and interest in (losses) earnings of equity method investments | (208,741 | ) | (111,032 | ) | 331,602 | 334,274 | 241,641 | ||||||||||||
Income tax expense (benefit) | 17,170 | (13,844 | ) | 79,665 | 53,143 | 45,617 | |||||||||||||
Interest in (losses) earnings of equity method investments | (3,231 | ) | 8,633 | (3,838 | ) | (1,013 | ) | 5,294 | |||||||||||
Net (loss) income | (229,142 | ) | (88,555 | ) | 248,099 | 280,118 | 201,318 | ||||||||||||
Net loss (income) attributable to noncontrolling interests | 5 | (354 | ) | (2,182 | ) | (3,225 | ) | (4,920 | ) | ||||||||||
Net (loss) income attributable to PartnerRe | (229,137 | ) | (88,909 | ) | 245,917 | 276,893 | 196,398 | ||||||||||||
Preferred dividends | 14,184 | 14,184 | 14,184 | 14,184 | 14,184 | ||||||||||||||
Net (loss) income attributable to PartnerRe common shareholders | $ | (243,321 | ) | $ | (103,093 | ) | $ | 231,733 | $ | 262,709 | $ | 182,214 | |||||||
Operating earnings attributable to PartnerRe common shareholders | $ | 211,583 | $ | 112,494 | $ | 150,536 | $ | 218,340 | $ | 226,660 | |||||||||
Comprehensive (loss) income attributable to PartnerRe | $ | (267,720 | ) | $ | (81,913 | ) | $ | 242,760 | $ | 251,528 | $ | 198,578 | |||||||
Earnings and dividends per share data attributable to PartnerRe common shareholders: | |||||||||||||||||||
Basic operating earnings | $ | 4.42 | $ | 2.35 | $ | 3.17 | $ | 4.48 | $ | 4.58 | |||||||||
Net realized and unrealized investment (losses) gains, net of tax | (2.54 | ) | (4.55 | ) | 2.11 | 1.69 | (0.72 | ) | |||||||||||
Net foreign exchange losses, net of tax | (0.33 | ) | (0.10 | ) | (0.33 | ) | (0.61 | ) | (0.24 | ) | |||||||||
Interest in (losses) earnings of equity method investments, net of tax | (0.05 | ) | 0.14 | (0.07 | ) | (0.04 | ) | 0.06 | |||||||||||
Withholding tax on inter-company dividends, net of tax (2) | — | — | — | (0.13 | ) | — | |||||||||||||
Amalgamation termination fee and reimbursement of expenses (2) | (6.58 | ) | — | — | — | — | |||||||||||||
Basic net (loss) income | $ | (5.08 | ) | $ | (2.16 | ) | $ | 4.88 | $ | 5.39 | $ | 3.68 | |||||||
Weighted average number of common shares outstanding | 47,866,040 | 47,773,371 | 47,525,344 | 48,707,096 | 49,514,980 | ||||||||||||||
Diluted operating earnings (1) (3) | $ | 4.42 | $ | 2.35 | $ | 3.09 | $ | 4.37 | $ | 4.47 | |||||||||
Net realized and unrealized investment (losses) gains, net of tax | (2.54 | ) | (4.55 | ) | 2.06 | 1.64 | (0.70 | ) | |||||||||||
Net foreign exchange losses, net of tax | (0.33 | ) | (0.10 | ) | (0.32 | ) | (0.60 | ) | (0.23 | ) | |||||||||
Interest in (losses) earnings of equity method investments, net of tax | (0.05 | ) | 0.14 | (0.07 | ) | (0.03 | ) | 0.06 | |||||||||||
Withholding tax on inter-company dividends, net of tax (2) | — | — | — | (0.12 | ) | — | |||||||||||||
Amalgamation termination fee and reimbursement of expenses (2) | (6.58 | ) | — | — | — | — | |||||||||||||
Diluted net (loss) income | $ | (5.08 | ) | $ | (2.16 | ) | $ | 4.76 | $ | 5.26 | $ | 3.60 | |||||||
Weighted average number of common shares and common share equivalents outstanding | 47,866,040 | 47,773,371 | 48,710,228 | 49,958,224 | 50,681,325 | ||||||||||||||
Dividends declared per common share | $ | 0.70 | $ | 0.70 | $ | 0.70 | $ | 0.67 | $ | 0.67 | |||||||||
(1) Includes costs related to the Axis and Exor transactions and the restructuring of the Company’s business support operations and Global Non-life operations. See page 23 for the expense and per share data. | |||||||||||||||||||
(2) Withholding taxes on certain inter-company dividends and the amalgamation termination fee and reimbursement of expenses are included in other expenses. | |||||||||||||||||||
(3) Other expenses for the three months ended June 30, 2015 include $25 million, pretax, related to the negotiated earn-out consideration paid to the former shareholders of Presidio Reinsurance Group, Inc, or $0.53 per diluted share. |
For the nine months ended | For the year ended | |||||||||||||||
September 30, | September 30, | December 31, | December 31, | |||||||||||||
2015 | 2014 | 2014 | 2013 | |||||||||||||
Revenues | ||||||||||||||||
Gross premiums written | $ | 4,448,907 | $ | 4,695,327 | $ | 5,932,003 | $ | 5,569,706 | ||||||||
Net premiums written | $ | 4,165,912 | $ | 4,499,849 | $ | 5,719,884 | $ | 5,396,526 | ||||||||
Increase in unearned premiums | (191,235 | ) | (336,384 | ) | (110,689 | ) | (198,316 | ) | ||||||||
Net premiums earned | 3,974,677 | 4,163,465 | 5,609,195 | 5,198,210 | ||||||||||||
Net investment income | 341,877 | 365,010 | 479,696 | 484,367 | ||||||||||||
Net realized and unrealized investment (losses) gains | (273,107 | ) | 273,468 | 371,796 | (160,735 | ) | ||||||||||
Other income | 7,584 | 11,892 | 16,190 | 16,565 | ||||||||||||
Total revenues | 4,051,031 | 4,813,835 | 6,476,877 | 5,538,407 | ||||||||||||
Expenses | ||||||||||||||||
Losses and loss expenses and life policy benefits | 2,390,394 | 2,592,847 | 3,462,770 | 3,157,808 | ||||||||||||
Acquisition costs | 905,774 | 888,937 | 1,213,822 | 1,077,628 | ||||||||||||
Other expenses (1) (2) (3) | 670,334 | 327,149 | 449,688 | 500,466 | ||||||||||||
Interest expense | 36,742 | 36,719 | 48,963 | 48,929 | ||||||||||||
Amortization of intangible assets | 20,303 | 21,007 | 27,486 | 27,180 | ||||||||||||
Net foreign exchange losses (gains) | 15,657 | (10,900 | ) | (18,201 | ) | 18,203 | ||||||||||
Total expenses | 4,039,204 | 3,855,759 | 5,184,528 | 4,830,214 | ||||||||||||
Income before taxes and interest in earnings of equity method investments | 11,827 | 958,076 | 1,292,349 | 708,193 | ||||||||||||
Income tax expense | 82,990 | 186,363 | 239,506 | 48,416 | ||||||||||||
Interest in earnings of equity method investments | 1,564 | 16,283 | 15,270 | 13,665 | ||||||||||||
Net (loss) income | (69,599 | ) | 787,996 | 1,068,113 | 673,442 | |||||||||||
Net income attributable to noncontrolling interests | (2,531 | ) | (9,914 | ) | (13,139 | ) | (9,434 | ) | ||||||||
Net (loss) income attributable to PartnerRe | (72,130 | ) | 778,082 | 1,054,974 | 664,008 | |||||||||||
Preferred dividends | 42,551 | 42,551 | 56,735 | 57,861 | ||||||||||||
Loss on redemption of preferred shares | — | — | — | 9,135 | ||||||||||||
Net (loss) income attributable to PartnerRe common shareholders | $ | (114,681 | ) | $ | 735,531 | $ | 998,239 | $ | 597,012 | |||||||
Operating earnings attributable to PartnerRe common shareholders | $ | 474,614 | $ | 537,078 | $ | 755,418 | $ | 721,733 | ||||||||
Comprehensive (loss) income attributable to PartnerRe | $ | (106,874 | ) | $ | 781,602 | $ | 1,033,129 | $ | 641,173 | |||||||
Earnings and dividends per share data attributable to PartnerRe common shareholders: | ||||||||||||||||
Basic operating earnings | $ | 9.95 | $ | 10.64 | $ | 15.10 | $ | 13.03 | ||||||||
Net realized and unrealized investment (losses) gains, net of tax | (5.00 | ) | 4.05 | 5.73 | (2.30 | ) | ||||||||||
Net foreign exchange (losses) gains, net of tax | (0.77 | ) | (0.32 | ) | (0.92 | ) | 0.05 | |||||||||
Loss on redemption of preferred shares | — | — | — | (0.16 | ) | |||||||||||
Interest in earnings of equity method investments, net of tax | 0.02 | 0.21 | 0.17 | 0.16 | ||||||||||||
Withholding tax on inter-company dividends, net of tax (2) | — | — | (0.12 | ) | — | |||||||||||
Amalgamation termination fee and reimbursement of expenses (2) | (6.60 | ) | — | — | — | |||||||||||
Basic net (loss) income | (2.40 | ) | 14.58 | 19.96 | 10.78 | |||||||||||
Weighted average number of common shares outstanding | 47,722,833 | 50,461,749 | 50,019,480 | 55,378,980 | ||||||||||||
Diluted operating earnings (1) (3) | 9.95 | 10.42 | 14.76 | 12.79 | ||||||||||||
Net realized and unrealized investment (losses) gains, net of tax | (5.00 | ) | 3.95 | 5.60 | (2.25 | ) | ||||||||||
Net foreign exchange (losses) gains, net of tax | (0.77 | ) | (0.31 | ) | (0.90 | ) | 0.04 | |||||||||
Loss on redemption of preferred shares | — | — | — | (0.16 | ) | |||||||||||
Interest in earnings of equity method investments, net of tax | 0.02 | 0.20 | 0.17 | 0.16 | ||||||||||||
Withholding tax on inter-company dividends, net of tax (2) | — | — | (0.12 | ) | — | |||||||||||
Amalgamation termination fee and reimbursement of expenses (2) | (6.60 | ) | — | — | — | |||||||||||
Diluted net (loss) income | $ | (2.40 | ) | $ | 14.26 | $ | 19.51 | $ | 10.58 | |||||||
Weighted average number of common shares and common share equivalents outstanding | 47,722,833 | 51,566,134 | 51,174,225 | 56,448,105 | ||||||||||||
Dividends declared per common share | $ | 2.10 | $ | 2.01 | $ | 2.68 | $ | 2.56 | ||||||||
(1) Includes costs related to the Axis and Exor transactions and the restructuring of the Company’s business support operations and Global Non-life operations. See page 24 for the expense and per share data. | ||||||||||||||||
(2) Withholding taxes on certain inter-company dividends and the amalgamation termination fee and reimbursement of expenses are included in other expenses. | ||||||||||||||||
(3) Other expenses for the nine months ended September 30, 2015 include $25 million, pretax, related to the negotiated earn-out consideration paid to the former shareholders of Presidio Reinsurance Group, Inc, or $0.53 per diluted share. |
September 30, | June 30, | March 31, | December 31, | September 30, | December 31, | ||||||||||||||||||||||||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | 2013 | ||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||
Total investments | $ | 14,475,450 | $ | 14,715,834 | $ | 15,038,946 | $ | 15,299,764 | $ | 15,288,212 | $ | 15,148,883 | |||||||||||||||||||||||||
Funds held - directly managed | 595,677 | 594,870 | 592,609 | 608,853 | 650,374 | 785,768 | |||||||||||||||||||||||||||||||
Cash and cash equivalents | 1,256,304 | 1,492,997 | 1,413,799 | 1,313,468 | 1,519,287 | 1,496,485 | |||||||||||||||||||||||||||||||
Accrued investment income | 142,892 | 139,772 | 150,255 | 158,737 | 171,050 | 185,717 | |||||||||||||||||||||||||||||||
Reinsurance balances receivable | 3,079,002 | 3,055,308 | 2,899,821 | 2,454,850 | 2,974,668 | 2,465,713 | |||||||||||||||||||||||||||||||
Reinsurance recoverable on paid and unpaid losses | 329,834 | 342,074 | 290,018 | 246,158 | 317,071 | 308,892 | |||||||||||||||||||||||||||||||
Funds held by reinsured companies | 671,572 | 688,358 | 659,058 | 765,905 | 808,686 | 843,081 | |||||||||||||||||||||||||||||||
Deferred acquisition costs | 684,380 | 733,184 | 706,779 | 661,186 | 707,481 | 644,952 | |||||||||||||||||||||||||||||||
Goodwill | 456,380 | 456,380 | 456,380 | 456,380 | 456,380 | 456,380 | |||||||||||||||||||||||||||||||
Intangible assets | 139,301 | 146,069 | 152,836 | 159,604 | 166,083 | 187,090 | |||||||||||||||||||||||||||||||
Other assets | 194,436 | 166,977 | 128,094 | 145,452 | 148,051 | 515,334 | |||||||||||||||||||||||||||||||
Total assets | $ | 22,025,228 | $ | 22,531,823 | $ | 22,488,595 | $ | 22,270,357 | $ | 23,207,343 | $ | 23,038,295 | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||
Unpaid losses and loss expenses | $ | 9,522,225 | $ | 9,549,398 | $ | 9,401,397 | $ | 9,745,806 | $ | 10,264,001 | $ | 10,646,318 | |||||||||||||||||||||||||
Policy benefits for life and annuity contracts | 2,123,028 | 2,087,369 | 1,996,519 | 2,050,107 | 2,113,463 | 1,974,133 | |||||||||||||||||||||||||||||||
Unearned premiums | 1,934,360 | 2,207,674 | 2,159,446 | 1,750,607 | 2,048,550 | 1,723,767 | |||||||||||||||||||||||||||||||
Other reinsurance balances payable | 288,402 | 234,175 | 188,941 | 182,395 | 237,175 | 202,549 | |||||||||||||||||||||||||||||||
Debt obligations | 820,989 | 820,989 | 820,989 | 820,989 | 820,989 | 820,989 | |||||||||||||||||||||||||||||||
Other liabilities | 558,875 | 550,075 | 666,475 | 616,042 | 656,909 | 904,380 | |||||||||||||||||||||||||||||||
Total liabilities | 15,247,879 | 15,449,680 | 15,233,767 | 15,165,946 | 16,141,087 | 16,272,136 | |||||||||||||||||||||||||||||||
Total shareholders’ equity attributable to PartnerRe | 6,775,137 | 7,079,926 | 7,197,145 | 7,048,910 | 7,013,980 | 6,709,532 | |||||||||||||||||||||||||||||||
Noncontrolling interests | 2,212 | 2,217 | 57,683 | 55,501 | 52,276 | 56,627 | |||||||||||||||||||||||||||||||
Total shareholders’ equity | 6,777,349 | 7,082,143 | 7,254,828 | 7,104,411 | 7,066,256 | 6,766,159 | |||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 22,025,228 | $ | 22,531,823 | $ | 22,488,595 | $ | 22,270,357 | $ | 23,207,343 | $ | 23,038,295 | |||||||||||||||||||||||||
Diluted Book Value Per Common Share | $ | 120.67 | $ | 127.24 | $ | 129.86 | $ | 126.21 | $ | 121.95 | $ | 109.26 | |||||||||||||||||||||||||
Diluted Tangible Book Value Per Common Share | $ | 109.46 | $ | 115.90 | $ | 118.40 | $ | 114.76 | $ | 110.75 | $ | 98.49 | |||||||||||||||||||||||||
Number of Common Shares and Common Share Equivalents Outstanding | 49,070,138 | 48,932,758 | 48,849,532 | 49,087,412 | 50,513,695 | 53,596,034 | |||||||||||||||||||||||||||||||
Capital Structure: | |||||||||||||||||||||||||||||||||||||
Senior notes (1) | $ | 750,000 | 10 | % | $ | 750,000 | 9 | % | $ | 750,000 | 9 | % | $ | 750,000 | 9 | % | $ | 750,000 | 9 | % | $ | 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 | 11 | 853,750 | 11 | 853,750 | 11 | |||||||||||||||||||||||||
Common shareholders’ equity attributable to PartnerRe | 5,921,387 | 78 | 6,226,176 | 79 | 6,343,395 | 79 | 6,195,160 | 79 | 6,160,230 | 79 | 5,855,782 | 78 | |||||||||||||||||||||||||
Total Capital | $ | 7,588,521 | 100 | % | $ | 7,893,310 | 100 | % | $ | 8,010,529 | 100 | % | $ | 7,862,294 | 100 | % | $ | 7,827,364 | 100 | % | $ | 7,522,916 | 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 | ||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | ||||||||||||||||
Net cash (used in) provided by operating activities: | ||||||||||||||||||||
Underwriting operations | $ | 77 | $ | 30 | $ | 44 | $ | 158 | $ | 240 | ||||||||||
Investment income | 132 | 154 | 137 | 147 | 140 | |||||||||||||||
Taxes, foreign exchange and other (1) | (358 | ) | (66 | ) | (42 | ) | (36 | ) | (18 | ) | ||||||||||
Net cash (used in) provided by operating activities | $ | (149 | ) | $ | 118 | $ | 139 | $ | 269 | $ | 362 | |||||||||
Net cash (used in) provided by operating activities | $ | (149 | ) | $ | 118 | $ | 139 | $ | 269 | $ | 362 | |||||||||
Net cash (used in) provided by investing activities | (33 | ) | 56 | 115 | (247 | ) | 84 | |||||||||||||
Net cash used in financing activities | (44 | ) | (100 | ) | (123 | ) | (215 | ) | (99 | ) | ||||||||||
Effect of foreign exchange rate changes on cash | (10 | ) | 5 | (30 | ) | (13 | ) | (36 | ) | |||||||||||
(Decrease) increase in cash and cash equivalents | (237 | ) | 79 | 101 | (206 | ) | 311 | |||||||||||||
Cash and cash equivalents - beginning of period | 1,493 | 1,414 | 1,313 | 1,519 | 1,208 | |||||||||||||||
Cash and cash equivalents - end of period | $ | 1,256 | $ | 1,493 | $ | 1,414 | $ | 1,313 | $ | 1,519 |
For the nine months ended | For the year ended | |||||||||||||||
September 30, | September 30, | December 31, | December 31, | |||||||||||||
2015 | 2014 | 2014 | 2013 | |||||||||||||
Net cash provided by operating activities: | ||||||||||||||||
Underwriting operations | $ | 151 | $ | 339 | $ | 497 | $ | 337 | ||||||||
Investment income | 423 | 458 | 606 | 637 | ||||||||||||
Taxes, foreign exchange and other (1) | (467 | ) | (214 | ) | (250 | ) | (147 | ) | ||||||||
Net cash provided by operating activities | $ | 107 | $ | 583 | $ | 853 | $ | 827 | ||||||||
Net cash provided by operating activities | $ | 107 | $ | 583 | $ | 853 | $ | 827 | ||||||||
Net cash provided by (used in) investing activities | 138 | (2 | ) | (250 | ) | 418 | ||||||||||
Net cash used in financing activities | (267 | ) | (520 | ) | (736 | ) | (866 | ) | ||||||||
Effect of foreign exchange rate changes on cash | (35 | ) | (38 | ) | (50 | ) | (5 | ) | ||||||||
(Decrease) increase in cash and cash equivalents | (57 | ) | 23 | (183 | ) | 374 | ||||||||||
Cash and cash equivalents - beginning of period | 1,313 | 1,496 | 1,496 | 1,122 | ||||||||||||
Cash and cash equivalents - end of period | $ | 1,256 | $ | 1,519 | $ | 1,313 | $ | 1,496 |
For the three months ended | |||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | |||||||||||||||
Net (loss) income attributable to PartnerRe | $ | (229,137 | ) | $ | (88,909 | ) | $ | 245,917 | $ | 276,893 | $ | 196,398 | |||||||
Change in currency translation adjustment | (39,533 | ) | 8,101 | (2,504 | ) | (12,101 | ) | 1,412 | |||||||||||
Change in net unrealized gains or losses on investments, net of tax | (213 | ) | (214 | ) | (217 | ) | (218 | ) | (221 | ) | |||||||||
Change in unfunded pension obligation, net of tax | 1,163 | (891 | ) | (436 | ) | (13,046 | ) | 989 | |||||||||||
Comprehensive (loss) income attributable to PartnerRe | $ | (267,720 | ) | $ | (81,913 | ) | $ | 242,760 | $ | 251,528 | $ | 198,578 |
For the nine months ended | For the year ended | |||||||||||||||
September 30, | September 30, | December 31, | December 31, | |||||||||||||
2015 | 2014 | 2014 | 2013 | |||||||||||||
Net (loss) income attributable to PartnerRe | $ | (72,130 | ) | $ | 778,082 | $ | 1,054,974 | $ | 664,008 | |||||||
Change in currency translation adjustment | (33,936 | ) | 3,209 | (8,892 | ) | (31,778 | ) | |||||||||
Change in net unrealized gains or losses on investments, net of tax | (644 | ) | (668 | ) | (886 | ) | (918 | ) | ||||||||
Change in unfunded pension obligation, net of tax | (164 | ) | 979 | (12,067 | ) | 9,861 | ||||||||||
Comprehensive (loss) income attributable to PartnerRe | $ | (106,874 | ) | $ | 781,602 | $ | 1,033,129 | $ | 641,173 |
For the three months ended September 30, 2015 | |||||||||||||||||||||||||||||||
North America | Global (Non-U.S.) P&C | Global Specialty | Catastrophe | Total Non-life segment | Life and Health segment | Corporate and Other | Total | ||||||||||||||||||||||||
Gross premiums written | $ | 351 | $ | 153 | $ | 393 | $ | 57 | $ | 954 | $ | 314 | $ | — | $ | 1,268 | |||||||||||||||
Net premiums written | $ | 335 | $ | 153 | $ | 391 | $ | 13 | $ | 892 | 298 | $ | — | $ | 1,190 | ||||||||||||||||
Decrease in unearned premiums | 73 | 33 | 13 | 99 | 218 | 4 | — | 222 | |||||||||||||||||||||||
Net premiums earned | $ | 408 | $ | 186 | $ | 404 | $ | 112 | $ | 1,110 | $ | 302 | $ | — | $ | 1,412 | |||||||||||||||
Losses and loss expenses and life policy benefits | (182 | ) | (122 | ) | (224 | ) | (28 | ) | (556 | ) | (248 | ) | — | (804 | ) | ||||||||||||||||
Acquisition costs | (137 | ) | (50 | ) | (112 | ) | (10 | ) | (309 | ) | (38 | ) | — | (347 | ) | ||||||||||||||||
Technical result | $ | 89 | $ | 14 | $ | 68 | $ | 74 | $ | 245 | $ | 16 | $ | — | $ | 261 | |||||||||||||||
Other income | — | 3 | — | 3 | |||||||||||||||||||||||||||
Other expenses | (55 | ) | (16 | ) | (345 | ) | (416 | ) | |||||||||||||||||||||||
Underwriting result | $ | 190 | $ | 3 | n/a | $ | (152 | ) | |||||||||||||||||||||||
Net investment income | 15 | 102 | 117 | ||||||||||||||||||||||||||||
Allocated underwriting result (1) | $ | 18 | n/a | n/a | |||||||||||||||||||||||||||
Net realized and unrealized investment losses | (133 | ) | (133 | ) | |||||||||||||||||||||||||||
Interest expense | (12 | ) | (12 | ) | |||||||||||||||||||||||||||
Amortization of intangible assets | (7 | ) | (7 | ) | |||||||||||||||||||||||||||
Net foreign exchange losses | (22 | ) | (22 | ) | |||||||||||||||||||||||||||
Income tax expense | (17 | ) | (17 | ) | |||||||||||||||||||||||||||
Interest in losses of equity method investments | (3 | ) | (3 | ) | |||||||||||||||||||||||||||
Net loss | n/a | $ | (229 | ) | |||||||||||||||||||||||||||
Loss ratio (2) | 44.7 | % | 65.8 | % | 55.5 | % | 24.9 | % | 50.1 | % | |||||||||||||||||||||
Acquisition ratio (3) | 33.4 | 26.9 | 27.7 | 8.7 | 27.8 | ||||||||||||||||||||||||||
Technical ratio (4) | 78.1 | % | 92.7 | % | 83.2 | % | 33.6 | % | 77.9 | % | |||||||||||||||||||||
Other expense ratio (5) | 4.9 | ||||||||||||||||||||||||||||||
Combined ratio (6) | 82.8 | % |
(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 expenses. |
(2) | Loss ratio is obtained by dividing losses and loss expenses by net premiums earned. |
(3) | Acquisition ratio is obtained by dividing acquisition costs by net premiums earned. |
(4) | Technical ratio is defined as the sum of the loss ratio and the acquisition ratio. |
(5) | Other expense ratio is obtained by dividing other expenses by net premiums earned. |
(6) | Combined ratio is defined as the sum of the technical ratio and the other expense ratio. |
For the three months ended September 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 | $ | 372 | $ | 162 | $ | 432 | $ | 59 | $ | 1,025 | $ | 336 | $ | — | $ | 1,361 | |||||||||||||||
Net premiums written | $ | 372 | $ | 164 | $ | 428 | $ | 55 | $ | 1,019 | $ | 325 | $ | (1 | ) | $ | 1,343 | ||||||||||||||
Decrease in unearned premiums | 52 | 38 | 20 | 98 | 208 | 6 | — | 214 | |||||||||||||||||||||||
Net premiums earned | $ | 424 | $ | 202 | $ | 448 | $ | 153 | $ | 1,227 | $ | 331 | $ | (1 | ) | $ | 1,557 | ||||||||||||||
Losses and loss expenses and life policy benefits | (247 | ) | (123 | ) | (279 | ) | (39 | ) | (688 | ) | (272 | ) | — | (960 | ) | ||||||||||||||||
Acquisition costs | (106 | ) | (56 | ) | (105 | ) | (17 | ) | (284 | ) | (38 | ) | — | (322 | ) | ||||||||||||||||
Technical result | $ | 71 | $ | 23 | $ | 64 | $ | 97 | $ | 255 | $ | 21 | $ | (1 | ) | $ | 275 | ||||||||||||||
Other (loss) income | (1 | ) | 2 | 1 | 2 | ||||||||||||||||||||||||||
Other expenses | (62 | ) | (17 | ) | (29 | ) | (108 | ) | |||||||||||||||||||||||
Underwriting result | $ | 192 | $ | 6 | n/a | $ | 169 | ||||||||||||||||||||||||
Net investment income | 14 | 104 | 118 | ||||||||||||||||||||||||||||
Allocated underwriting result (1) | $ | 20 | n/a | n/a | |||||||||||||||||||||||||||
Net realized and unrealized investment losses | (34 | ) | (34 | ) | |||||||||||||||||||||||||||
Interest expense | (12 | ) | (12 | ) | |||||||||||||||||||||||||||
Amortization of intangible assets | (7 | ) | (7 | ) | |||||||||||||||||||||||||||
Net foreign exchange gains | 8 | 8 | |||||||||||||||||||||||||||||
Income tax expense | (46 | ) | (46 | ) | |||||||||||||||||||||||||||
Interest in earnings of equity method investments | 5 | 5 | |||||||||||||||||||||||||||||
Net income | n/a | $ | 201 | ||||||||||||||||||||||||||||
Loss ratio (2) | 58.2 | % | 61.1 | % | 62.3 | % | 25.2 | % | 56.1 | % | |||||||||||||||||||||
Acquisition ratio (3) | 24.9 | 27.6 | 23.5 | 11.7 | 23.1 | ||||||||||||||||||||||||||
Technical ratio (4) | 83.1 | % | 88.7 | % | 85.8 | % | 36.9 | % | 79.2 | % | |||||||||||||||||||||
Other expense ratio (5) | 5.0 | ||||||||||||||||||||||||||||||
Combined ratio (6) | 84.2 | % |
For the nine months ended September 30, 2015 | |||||||||||||||||||||||||||||||
North America | Global (Non-U.S.) P&C | Global Specialty | Catastrophe | Total Non-life segment | Life and Health segment | Corporate and Other | Total | ||||||||||||||||||||||||
Gross premiums written | $ | 1,251 | $ | 630 | $ | 1,226 | $ | 370 | $ | 3,477 | $ | 972 | $ | — | $ | 4,449 | |||||||||||||||
Net premiums written | $ | 1,207 | $ | 621 | $ | 1,153 | $ | 261 | $ | 3,242 | $ | 924 | $ | — | $ | 4,166 | |||||||||||||||
Increase in unearned premiums | (25 | ) | (102 | ) | (10 | ) | (47 | ) | (184 | ) | (7 | ) | — | (191 | ) | ||||||||||||||||
Net premiums earned | $ | 1,182 | $ | 519 | $ | 1,143 | $ | 214 | $ | 3,058 | $ | 917 | $ | — | $ | 3,975 | |||||||||||||||
Losses and loss expenses and life policy benefits | (650 | ) | (362 | ) | (593 | ) | (38 | ) | (1,643 | ) | (748 | ) | 1 | (2,390 | ) | ||||||||||||||||
Acquisition costs | (341 | ) | (139 | ) | (307 | ) | (17 | ) | (804 | ) | (102 | ) | — | (906 | ) | ||||||||||||||||
Technical result | $ | 191 | $ | 18 | $ | 243 | $ | 159 | $ | 611 | $ | 67 | $ | 1 | $ | 679 | |||||||||||||||
Other income | — | 4 | 3 | 7 | |||||||||||||||||||||||||||
Other expenses | (162 | ) | (47 | ) | (461 | ) | (670 | ) | |||||||||||||||||||||||
Underwriting result | $ | 449 | $ | 24 | n/a | $ | 16 | ||||||||||||||||||||||||
Net investment income | 45 | 297 | 342 | ||||||||||||||||||||||||||||
Allocated underwriting result (1) | $ | 69 | n/a | n/a | |||||||||||||||||||||||||||
Net realized and unrealized investment losses | (273 | ) | (273 | ) | |||||||||||||||||||||||||||
Interest expense | (37 | ) | (37 | ) | |||||||||||||||||||||||||||
Amortization of intangible assets | (20 | ) | (20 | ) | |||||||||||||||||||||||||||
Net foreign exchange losses | (16 | ) | (16 | ) | |||||||||||||||||||||||||||
Income tax expense | (83 | ) | (83 | ) | |||||||||||||||||||||||||||
Interest in earnings of equity method investments | 1 | 1 | |||||||||||||||||||||||||||||
Net loss | n/a | $ | (70 | ) | |||||||||||||||||||||||||||
Loss ratio (2) | 55.0 | % | 69.8 | % | 51.9 | % | 17.8 | % | 53.7 | % | |||||||||||||||||||||
Acquisition ratio (3) | 28.8 | 26.8 | 26.8 | 8.1 | 26.3 | ||||||||||||||||||||||||||
Technical ratio (4) | 83.8 | % | 96.6 | % | 78.7 | % | 25.9 | % | 80.0 | % | |||||||||||||||||||||
Other expense ratio (5) | 5.3 | ||||||||||||||||||||||||||||||
Combined ratio (6) | 85.3 | % |
For the nine months ended September 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 | $ | 1,302 | $ | 682 | $ | 1,348 | $ | 412 | $ | 3,744 | $ | 951 | $ | — | $ | 4,695 | |||||||||||||||
Net premiums written | $ | 1,291 | $ | 672 | $ | 1,250 | $ | 370 | $ | 3,583 | $ | 918 | $ | (1 | ) | $ | 4,500 | ||||||||||||||
Increase in unearned premiums | (99 | ) | (104 | ) | (42 | ) | (78 | ) | (323 | ) | (14 | ) | — | (337 | ) | ||||||||||||||||
Net premiums earned | $ | 1,192 | $ | 568 | $ | 1,208 | $ | 292 | $ | 3,260 | $ | 904 | $ | (1 | ) | $ | 4,163 | ||||||||||||||
Losses and loss expenses and life policy benefits | (747 | ) | (319 | ) | (749 | ) | (38 | ) | (1,853 | ) | (740 | ) | — | (2,593 | ) | ||||||||||||||||
Acquisition costs | (299 | ) | (162 | ) | (283 | ) | (34 | ) | (778 | ) | (111 | ) | — | (889 | ) | ||||||||||||||||
Technical result | $ | 146 | $ | 87 | $ | 176 | $ | 220 | $ | 629 | $ | 53 | $ | (1 | ) | $ | 681 | ||||||||||||||
Other income | 1 | 6 | 5 | 12 | |||||||||||||||||||||||||||
Other expenses | (187 | ) | (52 | ) | (88 | ) | (327 | ) | |||||||||||||||||||||||
Underwriting result | $ | 443 | $ | 7 | n/a | $ | 366 | ||||||||||||||||||||||||
Net investment income | 45 | 320 | 365 | ||||||||||||||||||||||||||||
Allocated underwriting result (1) | $ | 52 | n/a | n/a | |||||||||||||||||||||||||||
Net realized and unrealized investment gains | 273 | 273 | |||||||||||||||||||||||||||||
Interest expense | (36 | ) | (36 | ) | |||||||||||||||||||||||||||
Amortization of intangible assets | (21 | ) | (21 | ) | |||||||||||||||||||||||||||
Net foreign exchange gains | 11 | 11 | |||||||||||||||||||||||||||||
Income tax expense | (186 | ) | (186 | ) | |||||||||||||||||||||||||||
Interest in earnings of equity method investments | 16 | 16 | |||||||||||||||||||||||||||||
Net income | n/a | $ | 788 | ||||||||||||||||||||||||||||
Loss ratio (2) | 62.6 | % | 56.2 | % | 62.1 | % | 12.9 | % | 56.8 | % | |||||||||||||||||||||
Acquisition ratio (3) | 25.1 | 28.5 | 23.4 | 11.5 | 23.9 | ||||||||||||||||||||||||||
Technical ratio (4) | 87.7 | % | 84.7 | % | 85.5 | % | 24.4 | % | 80.7 | % | |||||||||||||||||||||
Other expense ratio (5) | 5.7 | ||||||||||||||||||||||||||||||
Combined ratio (6) | 86.4 | % |
For the three months ended | |||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
2015 (A) | 2015 | 2015 | 2014 | 2014 | |||||||||||||||
Gross premiums written | $ | 954 | $ | 1,098 | $ | 1,425 | $ | 923 | $ | 1,025 | |||||||||
Net premiums written | $ | 892 | $ | 1,009 | $ | 1,340 | $ | 917 | $ | 1,019 | |||||||||
Net premiums earned | $ | 1,110 | $ | 1,012 | $ | 936 | $ | 1,127 | $ | 1,227 | |||||||||
Losses and loss expenses | (556 | ) | (605 | ) | (481 | ) | (609 | ) | (688 | ) | |||||||||
Acquisition costs | (309 | ) | (253 | ) | (242 | ) | (288 | ) | (284 | ) | |||||||||
Technical result | $ | 245 | $ | 154 | $ | 213 | $ | 230 | $ | 255 | |||||||||
Other income (loss) | — | — | — | 2 | (1 | ) | |||||||||||||
Other expenses | (55 | ) | (55 | ) | (52 | ) | (65 | ) | (62 | ) | |||||||||
Underwriting result | $ | 190 | $ | 99 | $ | 161 | $ | 167 | $ | 192 | |||||||||
Loss ratio (2) | 50.1 | % | 59.8 | % | 51.4 | % | 54.1 | % | 56.1 | % | |||||||||
Acquisition ratio (3) | 27.8 | 25.0 | 25.9 | 25.5 | 23.1 | ||||||||||||||
Technical ratio (4) | 77.9 | % | 84.8 | % | 77.3 | % | 79.6 | % | 79.2 | % | |||||||||
Other expense ratio (5) | 4.9 | 5.5 | 5.5 | 5.7 | 5.0 | ||||||||||||||
Combined ratio (6) | 82.8 | % | 90.3 | % | 82.8 | % | 85.3 | % | 84.2 | % |
(A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended September 30, 2015, net premiums written and net premiums earned include foreign exchange impacts of $(57.1) million and $(70.0) million, respectively, compared to the three months ended September 30, 2014. |
For the nine months ended | For the year ended | |||||||||||||||
September 30, | September 30, | December 31, | December 31, | |||||||||||||
2015 (A) | 2014 | 2014 | 2013 | |||||||||||||
Gross premiums written | $ | 3,477 | $ | 3,744 | $ | 4,667 | $ | 4,590 | ||||||||
Net premiums written | $ | 3,242 | $ | 3,583 | $ | 4,500 | $ | 4,427 | ||||||||
Net premiums earned | $ | 3,058 | $ | 3,260 | $ | 4,387 | $ | 4,235 | ||||||||
Losses and loss expenses | (1,643 | ) | (1,853 | ) | (2,463 | ) | (2,400 | ) | ||||||||
Acquisition costs | (804 | ) | (778 | ) | (1,065 | ) | (953 | ) | ||||||||
Technical result | $ | 611 | $ | 629 | $ | 859 | $ | 882 | ||||||||
Other income | — | 1 | 3 | 3 | ||||||||||||
Other expenses | (162 | ) | (187 | ) | (252 | ) | (259 | ) | ||||||||
Underwriting result | $ | 449 | $ | 443 | $ | 610 | $ | 626 | ||||||||
Loss ratio (2) | 53.7 | % | 56.8 | % | 56.1 | % | 56.7 | % | ||||||||
Acquisition ratio (3) | 26.3 | 23.9 | 24.3 | 22.5 | ||||||||||||
Technical ratio (4) | 80.0 | % | 80.7 | % | 80.4 | % | 79.2 | % | ||||||||
Other expense ratio (5) | 5.3 | 5.7 | 5.8 | 6.1 | ||||||||||||
Combined ratio (6) | 85.3 | % | 86.4 | % | 86.2 | % | 85.3 | % |
(A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the nine months ended September 30, 2015, net premiums written and net premiums earned include foreign exchange impacts of $(193.5) million and $(181.1) million, respectively, compared to the nine months ended September 30, 2014. |
For the three months ended | |||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
2015 (A) | 2015 | 2015 | 2014 | 2014 | |||||||||||||||
Gross premiums written | $ | 351 | $ | 427 | $ | 473 | $ | 340 | $ | 372 | |||||||||
Net premiums written | $ | 335 | $ | 401 | $ | 471 | $ | 338 | $ | 372 | |||||||||
Net premiums earned | $ | 408 | $ | 435 | $ | 339 | $ | 405 | $ | 424 | |||||||||
Losses and loss expenses | (182 | ) | (296 | ) | (172 | ) | (253 | ) | (247 | ) | |||||||||
Acquisition costs | (137 | ) | (111 | ) | (93 | ) | (102 | ) | (106 | ) | |||||||||
Technical result | $ | 89 | $ | 28 | $ | 74 | $ | 50 | $ | 71 | |||||||||
Loss ratio (2) | 44.7 | % | 68.1 | % | 50.7 | % | 62.5 | % | 58.2 | % | |||||||||
Acquisition ratio (3) | 33.4 | 25.4 | 27.5 | 25.1 | 24.9 | ||||||||||||||
Technical ratio (4) | 78.1 | % | 93.5 | % | 78.2 | % | 87.6 | % | 83.1 | % | |||||||||
Distribution of Net Premiums Written by Major Lines of Business: | |||||||||||||||||||
Agriculture | 21 | % | 31 | % | 30 | % | 26 | % | 22 | % | |||||||||
Casualty | 40 | 38 | 35 | 39 | 40 | ||||||||||||||
Credit/Surety | 3 | 6 | 7 | 7 | 7 | ||||||||||||||
Motor | 4 | 4 | 4 | 5 | 7 | ||||||||||||||
Multiline | 6 | 8 | 10 | 8 | 6 | ||||||||||||||
Other | 9 | 2 | 1 | — | 3 | ||||||||||||||
Property | 17 | 11 | 13 | 15 | 15 | ||||||||||||||
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 September 30, 2015, net premiums written and net premiums earned include foreign exchange impacts of $(2.8) million and $(4.1) million, respectively, compared to the three months ended September 30, 2014. |
For the nine months ended | For the year ended | |||||||||||||||
September 30, | September 30, | December 31, | December 31, | |||||||||||||
2015 (A) | 2014 | 2014 | 2013 | |||||||||||||
Gross premiums written | $ | 1,251 | $ | 1,302 | $ | 1,642 | $ | 1,601 | ||||||||
Net premiums written | $ | 1,207 | $ | 1,291 | $ | 1,630 | $ | 1,587 | ||||||||
Net premiums earned | $ | 1,182 | $ | 1,192 | $ | 1,597 | $ | 1,533 | ||||||||
Losses and loss expenses | (650 | ) | (747 | ) | (1,000 | ) | (975 | ) | ||||||||
Acquisition costs | (341 | ) | (299 | ) | (401 | ) | (351 | ) | ||||||||
Technical result | $ | 191 | $ | 146 | $ | 196 | $ | 207 | ||||||||
Loss ratio (2) | 55.0 | % | 62.6 | % | 62.6 | % | 63.6 | % | ||||||||
Acquisition ratio (3) | 28.8 | 25.1 | 25.1 | 22.9 | ||||||||||||
Technical ratio (4) | 83.8 | % | 87.7 | % | 87.7 | % | 86.5 | % | ||||||||
Distribution of Net Premiums Written by Major Lines of Business: | ||||||||||||||||
Agriculture | 28 | % | 28 | % | 28 | % | 30 | % | ||||||||
Casualty | 37 | 37 | 37 | 37 | ||||||||||||
Credit/Surety | 5 | 7 | 7 | 3 | ||||||||||||
Motor | 4 | 5 | 4 | 4 | ||||||||||||
Multiline | 8 | 8 | 8 | 6 | ||||||||||||
Other | 4 | 2 | 2 | 5 | ||||||||||||
Property | 14 | 13 | 14 | 15 | ||||||||||||
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 nine months ended September 30, 2015, net premiums written and net premiums earned include foreign exchange impacts of $(8.5) million and $(8.2) million, respectively, compared to the nine months ended September 30, 2014. |
For the three months ended | |||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||
2015 (A) | 2015 | 2015 | 2014 | 2014 | |||||||||||||
Gross premiums written | $ | 153 | $ | 143 | 334 | 122 | $ | 162 | |||||||||
Net premiums written | $ | 153 | $ | 137 | 331 | 122 | $ | 164 | |||||||||
Net premiums earned | $ | 186 | $ | 159 | 174 | 200 | $ | 202 | |||||||||
Losses and loss expenses | (122 | ) | (121 | ) | (119 | ) | (119 | ) | (123 | ) | |||||||
Acquisition costs | (50 | ) | (36 | ) | (52 | ) | (60 | ) | (56 | ) | |||||||
Technical result | $ | 14 | $ | 2 | 3 | 21 | $ | 23 | |||||||||
Loss ratio (2) | 65.8 | % | 75.9 | % | 68.4 | % | 59.4 | % | 61.1 | % | |||||||
Acquisition ratio (3) | 26.9 | 23.2 | 30.1 | 29.9 | 27.6 | ||||||||||||
Technical ratio (4) | 92.7 | % | 99.1 | % | 98.5 | % | 89.3 | % | 88.7 | % | |||||||
Distribution of Net Premiums Written by Major Lines of Business: | |||||||||||||||||
Casualty | 8 | % | 10 | % | 10 | % | 7 | % | 7 | % | |||||||
Motor | 42 | 34 | 36 | 48 | 43 | ||||||||||||
Property | 50 | 56 | 54 | 45 | 50 | ||||||||||||
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 September 30, 2015, net premiums written and net premiums earned include foreign exchange impacts of $(19.9) million and $(26.0) million, respectively, compared to the three months ended September 30, 2014. |
For the nine months ended | For the year ended | |||||||||||||||
September 30, | September 30, | December 31, | December 31, | |||||||||||||
2015 (A) | 2014 | 2014 | 2013 | |||||||||||||
Gross premiums written | $ | 630 | $ | 682 | $ | 803 | $ | 818 | ||||||||
Net premiums written | $ | 621 | $ | 672 | $ | 794 | $ | 811 | ||||||||
Net premiums earned | $ | 519 | $ | 568 | $ | 768 | $ | 743 | ||||||||
Losses and loss expenses | (362 | ) | (319 | ) | (438 | ) | (373 | ) | ||||||||
Acquisition costs | (139 | ) | (162 | ) | (222 | ) | (196 | ) | ||||||||
Technical result | $ | 18 | $ | 87 | $ | 108 | $ | 174 | ||||||||
Loss ratio (2) | 69.8 | % | 56.2 | % | 57.0 | % | 50.2 | % | ||||||||
Acquisition ratio (3) | 26.8 | 28.5 | 28.9 | 26.4 | ||||||||||||
Technical ratio (4) | 96.6 | % | 84.7 | % | 85.9 | % | 76.6 | % | ||||||||
Distribution of Net Premiums Written by Major Lines of Business: | ||||||||||||||||
Casualty | 10 | % | 9 | % | 8 | % | 9 | % | ||||||||
Motor | 37 | 38 | 40 | 37 | ||||||||||||
Property | 53 | 53 | 52 | 54 | ||||||||||||
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 nine months ended September 30, 2015, net premiums written and net premiums earned include foreign exchange impacts of $(73.0) million and $(66.7) million, respectively, compared to the nine months ended September 30, 2014. |
For the three months ended | |||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
2015 (A) | 2015 | 2015 | 2014 | 2014 | |||||||||||||||
Gross premiums written | $ | 393 | $ | 406 | $ | 427 | $ | 448 | $ | 432 | |||||||||
Net premiums written | $ | 391 | $ | 400 | $ | 362 | $ | 446 | $ | 428 | |||||||||
Net premiums earned | $ | 404 | $ | 374 | $ | 365 | $ | 430 | $ | 448 | |||||||||
Losses and loss expenses | (224 | ) | (198 | ) | (170 | ) | (213 | ) | (279 | ) | |||||||||
Acquisition costs | (112 | ) | (102 | ) | (93 | ) | (117 | ) | (105 | ) | |||||||||
Technical result | $ | 68 | $ | 74 | $ | 102 | $ | 100 | $ | 64 | |||||||||
Loss ratio (2) | 55.5 | % | 53.0 | % | 46.7 | % | 49.5 | % | 62.3 | % | |||||||||
Acquisition ratio (3) | 27.7 | 27.2 | 25.4 | 27.4 | 23.5 | ||||||||||||||
Technical ratio (4) | 83.2 | % | 80.2 | % | 72.1 | % | 76.9 | % | 85.8 | % | |||||||||
Distribution of Net Premiums Written by Major Lines of Business: | |||||||||||||||||||
Agriculture | 13 | % | 13 | % | 15 | % | 12 | % | 11 | % | |||||||||
Aviation/Space | 9 | 13 | 11 | 15 | 13 | ||||||||||||||
Credit/Surety | 15 | 13 | 14 | 14 | 16 | ||||||||||||||
Energy | 4 | 3 | 4 | 5 | 5 | ||||||||||||||
Engineering | 8 | 10 | 11 | 10 | 10 | ||||||||||||||
Marine | 16 | 14 | 11 | 18 | 18 | ||||||||||||||
Multiline | 12 | 11 | 12 | 8 | 8 | ||||||||||||||
Other | 1 | 1 | 2 | — | 1 | ||||||||||||||
Specialty casualty | 9 | 9 | 11 | 9 | 7 | ||||||||||||||
Specialty property | 13 | 13 | 9 | 9 | 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 September 30, 2015, net premiums written and net premiums earned include foreign exchange impacts of $(28.9) million and $(33.6) million, respectively, compared to the three months ended September 30, 2014. |
For the nine months ended | For the year ended | |||||||||||||||
September 30, | September 30, | December 31, | December 31, | |||||||||||||
2015 (A) | 2014 | 2014 | 2013 | |||||||||||||
Gross premiums written | $ | 1,226 | $ | 1,348 | $ | 1,797 | $ | 1,676 | ||||||||
Net premiums written | $ | 1,153 | $ | 1,250 | $ | 1,696 | $ | 1,579 | ||||||||
Net premiums earned | $ | 1,143 | $ | 1,208 | $ | 1,638 | $ | 1,506 | ||||||||
Losses and loss expenses | (593 | ) | (749 | ) | (963 | ) | (920 | ) | ||||||||
Acquisition costs | (307 | ) | (283 | ) | (400 | ) | (362 | ) | ||||||||
Technical result | $ | 243 | $ | 176 | $ | 275 | $ | 224 | ||||||||
Loss ratio (2) | 51.9 | % | 62.1 | % | 58.8 | % | 61.1 | % | ||||||||
Acquisition ratio (3) | 26.8 | 23.4 | 24.4 | 24.0 | ||||||||||||
Technical ratio (4) | 78.7 | % | 85.5 | % | 83.2 | % | 85.1 | % | ||||||||
Distribution of Net Premiums Written by Major Lines of Business: | ||||||||||||||||
Agriculture | 13 | % | 13 | % | 13 | % | 9 | % | ||||||||
Aviation/Space | 11 | 11 | 13 | 13 | ||||||||||||
Credit/Surety | 14 | 17 | 16 | 19 | ||||||||||||
Energy | 4 | 4 | 4 | 5 | ||||||||||||
Engineering | 10 | 10 | 10 | 14 | ||||||||||||
Marine | 14 | 16 | 17 | 19 | ||||||||||||
Multiline | 11 | 8 | 8 | 3 | ||||||||||||
Other | 1 | 1 | — | — | ||||||||||||
Specialty casualty | 10 | 10 | 10 | 9 | ||||||||||||
Specialty property | 12 | 10 | 9 | 9 | ||||||||||||
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 nine months ended September 30, 2015, net premiums written and net premiums earned include foreign exchange impacts of $(89.2) million and $(87.5) million, respectively, compared to the nine months ended September 30, 2014. |
For the three months ended | |||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||
2015 (A) | 2015 | 2015 | 2014 | 2014 | |||||||||||||
Gross premiums written | $ | 57 | $ | 122 | 191 | 13 | $ | 59 | |||||||||
Net premiums written | $ | 13 | $ | 71 | 176 | 11 | $ | 55 | |||||||||
Net premiums earned | $ | 112 | $ | 44 | 58 | 92 | $ | 153 | |||||||||
Losses and loss expenses | (28 | ) | 10 | (20 | ) | (24 | ) | (39 | ) | ||||||||
Acquisition costs | (10 | ) | (4 | ) | (4 | ) | (9 | ) | (17 | ) | |||||||
Technical result | $ | 74 | $ | 50 | 34 | 59 | $ | 97 | |||||||||
Loss ratio (2) | 24.9 | % | (21.5 | )% | 33.7 | % | 26.5 | % | 25.2 | % | |||||||
Acquisition ratio (3) | 8.7 | 8.2 | 7.0 | 9.1 | 11.7 | ||||||||||||
Technical ratio (4) | 33.6 | % | (13.3 | )% | 40.7 | % | 35.6 | % | 36.9 | % |
(A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended September 30, 2015, net premiums written and net premiums earned include foreign exchange impacts of $(5.5) million and $(6.4) million, respectively, compared to the three months ended September 30, 2014. |
For the nine months ended | For the year ended | |||||||||||||||
September 30, | September 30, | December 31, | December 31, | |||||||||||||
2015 (A) | 2014 | 2014 | 2013 | |||||||||||||
Gross premiums written | $ | 370 | $ | 412 | $ | 425 | $ | 495 | ||||||||
Net premiums written | $ | 261 | $ | 370 | $ | 380 | $ | 450 | ||||||||
Net premiums earned | $ | 214 | $ | 292 | $ | 384 | $ | 453 | ||||||||
Losses and loss expenses | (38 | ) | (38 | ) | (62 | ) | (132 | ) | ||||||||
Acquisition costs | (17 | ) | (34 | ) | (42 | ) | (44 | ) | ||||||||
Technical result | $ | 159 | $ | 220 | $ | 280 | $ | 277 | ||||||||
Loss ratio (2) | 17.8 | % | 12.9 | % | 16.1 | % | 29.0 | % | ||||||||
Acquisition ratio (3) | 8.1 | 11.5 | 11.0 | 9.7 | ||||||||||||
Technical ratio (4) | 25.9 | % | 24.4 | % | 27.1 | % | 38.7 | % |
(A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the nine months ended September 30, 2015, net premiums written and net premiums earned include foreign exchange impacts of $(22.8) million and $(18.7) million, respectively, compared to the nine months ended September 30, 2014. |
For the three months ended | |||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
2015 (A) | 2015 | 2015 | 2014 | 2014 | |||||||||||||||
Gross premiums written | $ | 314 | $ | 334 | $ | 324 | $ | 314 | $ | 336 | |||||||||
Net premiums written | $ | 298 | $ | 313 | $ | 313 | $ | 302 | $ | 325 | |||||||||
Net premiums earned | $ | 302 | $ | 316 | $ | 299 | $ | 318 | $ | 331 | |||||||||
Life policy benefits | (248 | ) | (260 | ) | (240 | ) | (261 | ) | (272 | ) | |||||||||
Acquisition costs | (38 | ) | (30 | ) | (34 | ) | (37 | ) | (38 | ) | |||||||||
Technical result | $ | 16 | $ | 26 | $ | 25 | $ | 20 | $ | 21 | |||||||||
Other income | 3 | — | 1 | 2 | 2 | ||||||||||||||
Other expenses | (16 | ) | (16 | ) | (15 | ) | (17 | ) | (17 | ) | |||||||||
Underwriting result | $ | 3 | $ | 10 | $ | 11 | $ | 5 | $ | 6 | |||||||||
Net investment income | 15 | 16 | 14 | 16 | 14 | ||||||||||||||
Allocated underwriting result (1) | $ | 18 | $ | 26 | $ | 25 | $ | 21 | $ | 20 | |||||||||
Distribution of Net Premiums Written by Major Lines of Business: | |||||||||||||||||||
Accident and Health | 30 | % | 26 | % | 27 | % | 25 | % | 24 | % | |||||||||
Longevity | 25 | 30 | 22 | 25 | 26 | ||||||||||||||
Mortality | 45 | 44 | 51 | 50 | 50 | ||||||||||||||
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 September 30, 2015, net premiums written and net premiums earned include foreign exchange impacts of $(30.2) million and $(30.9) million, respectively, compared to the three months ended September 30, 2014. |
For the nine months ended | For the year ended | |||||||||||||||
September 30, | September 30, | December 31, | December 31, | |||||||||||||
2015 (A) | 2014 | 2014 | 2013 | |||||||||||||
Gross premiums written | $ | 972 | $ | 951 | $ | 1,265 | $ | 972 | ||||||||
Net premiums written | $ | 924 | $ | 918 | $ | 1,220 | $ | 964 | ||||||||
Net premiums earned | $ | 917 | $ | 904 | $ | 1,222 | $ | 957 | ||||||||
Life policy benefits | (748 | ) | (740 | ) | (1,000 | ) | (760 | ) | ||||||||
Acquisition costs | (102 | ) | (111 | ) | (149 | ) | (125 | ) | ||||||||
Technical result | $ | 67 | $ | 53 | $ | 73 | $ | 72 | ||||||||
Other income | 4 | 6 | 8 | 11 | ||||||||||||
Other expenses | (47 | ) | (52 | ) | (68 | ) | (71 | ) | ||||||||
Underwriting result | $ | 24 | $ | 7 | $ | 13 | $ | 12 | ||||||||
Net investment income | 45 | 45 | 60 | 61 | ||||||||||||
Allocated underwriting result (1) | $ | 69 | $ | 52 | $ | 73 | $ | 73 | ||||||||
Distribution of Net Premiums Written by Major Lines of Business: | ||||||||||||||||
Accident and Health | 27 | % | 23 | % | 23 | % | 15 | % | ||||||||
Longevity | 26 | 24 | 25 | 26 | ||||||||||||
Mortality | 47 | 53 | 52 | 59 | ||||||||||||
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 nine months ended September 30, 2015, net premiums written and net premiums earned include foreign exchange impacts of $(80.7) million and $(79.9) million, respectively, compared to the nine months ended September 30, 2014. |
For the three months ended | |||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | |||||||||||||||
Technical result | $ | — | $ | — | $ | — | $ | 1 | $ | (1 | ) | ||||||||
Other income | — | — | 3 | — | 1 | ||||||||||||||
Corporate expenses - amalgamation termination fee and reimbursement of expenses | (315 | ) | — | — | — | — | |||||||||||||
Corporate expenses - amalgamation related costs (1) | (7 | ) | (9 | ) | (31 | ) | — | — | |||||||||||
Corporate expenses - costs of restructuring (2) | — | — | — | (6 | ) | (3 | ) | ||||||||||||
Corporate expenses (3) | (23 | ) | (50 | ) | (27 | ) | (35 | ) | (26 | ) | |||||||||
Net investment income | 102 | 104 | 91 | 99 | 104 | ||||||||||||||
Net realized and unrealized investment (losses) gains | (133 | ) | (256 | ) | 116 | 98 | (34 | ) | |||||||||||
Interest expense | (12 | ) | (12 | ) | (12 | ) | (12 | ) | (12 | ) | |||||||||
Amortization of intangible assets | (7 | ) | (7 | ) | (7 | ) | (6 | ) | (7 | ) | |||||||||
Net foreign exchange (losses) gains | (22 | ) | (6 | ) | 13 | 7 | 8 | ||||||||||||
Income tax (expense) benefit | (17 | ) | 14 | (80 | ) | (53 | ) | (46 | ) | ||||||||||
Interest in (losses) earnings of equity method investments | (3 | ) | 8 | (4 | ) | (1 | ) | 5 |
(1) | The amalgamation related costs relate to Axis and Exor transactions and consists of severance and transaction costs. During the three months ended September 30, 2015, June 30, 2015 and March 31, 2015, these costs had a per diluted share impact, pre-tax, of $0.15, $0.19 and $0.63, respectively. |
(2) | The costs of restructuring relate to the Company’s reorganization of its business support and Global Non-life operations. During the three months ended December 31, 2014 and the three months ended September 30, 2014, these costs predominantly comprised of facility exit costs. For the three months ended December 31, 2014 and the three months ended September 30, 2014, these costs had a per diluted share impact, pre-tax, of $0.11 and $0.07, respectively. |
(3) | Corporate expenses for three months ended June 30, 2015 include $25 million, pre-tax, related to the negotiated earn-out consideration paid to the former shareholders of Presidio Reinsurance Group, Inc, or $0.53 per diluted share, pre-tax. |
For the nine months ended | For the year ended | |||||||||||||||
September 30, | September 30, | December 31, | December 31, | |||||||||||||
2015 | 2014 | 2014 | 2013 | |||||||||||||
Technical result | $ | 1 | $ | (1 | ) | $ | — | $ | 8 | |||||||
Other income | 3 | 5 | 5 | 3 | ||||||||||||
Corporate expenses - amalgamation termination fee and reimbursement of expenses | (315 | ) | — | — | — | |||||||||||
Corporate expenses - amalgamation related costs (1) | (47 | ) | — | — | — | |||||||||||
Corporate expenses - costs of restructuring (2) | — | (5 | ) | (11 | ) | (58 | ) | |||||||||
Corporate expenses (3) | (99 | ) | (82 | ) | (118 | ) | (105 | ) | ||||||||
Other expenses | — | (1 | ) | (1 | ) | (7 | ) | |||||||||
Net investment income | 297 | 320 | 420 | 423 | ||||||||||||
Net realized and unrealized investment (losses) gains | (273 | ) | 273 | 372 | (161 | ) | ||||||||||
Interest expense | (37 | ) | (36 | ) | (49 | ) | (49 | ) | ||||||||
Amortization of intangible assets | (20 | ) | (21 | ) | (27 | ) | (27 | ) | ||||||||
Net foreign exchange (losses) gains | (16 | ) | 11 | 18 | (18 | ) | ||||||||||
Income tax expense | (83 | ) | (186 | ) | (239 | ) | (49 | ) | ||||||||
Interest in earnings of equity method investments | 1 | 16 | 15 | 14 |
(1) | The amalgamation related costs relate to with Axis and Exor transactions and consists of severance and transaction costs. During the nine months ended September 30, 2015, these costs had a per diluted share impact, pre-tax, of $0.98. |
(2) | The costs of restructuring relate to the Company’s reorganization of its business support and Global Non-life operations. During the nine months ended September 30, 2014 and the year ended December 31, 2014, these costs predominantly comprised of facility exit costs. During 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 nine months ended September 30, 2014, the year ended December 31, 2014 and the year ended December 31, 2013, these costs had a per diluted share impact, pre-tax, of $0.10, $0.21, and $1.03, respectively. |
(3) | Corporate expenses for nine months ended September 30, 2015 include $25 million, pre-tax, related to the negotiated earn-out consideration paid to the former shareholders of Presidio Reinsurance Group, Inc, or $0.53 per diluted share, pre-tax. |
For the three months ended | ||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | ||||||||||
Distribution of Net Premiums Written by Line of Business: | ||||||||||||||
Non-life | ||||||||||||||
Property and casualty | ||||||||||||||
Casualty | 12 | % | 13 | % | 12 | % | 11 | % | 12 | % | ||||
Motor | 7 | 5 | 8 | 6 | 7 | |||||||||
Multiline and other | 8 | 6 | 6 | 5 | 5 | |||||||||
Property | 11 | 9 | 15 | 9 | 10 | |||||||||
Specialty | ||||||||||||||
Agriculture | 10 | 13 | 12 | 12 | 10 | |||||||||
Aviation/Space | 3 | 4 | 2 | 6 | 4 | |||||||||
Catastrophe | 1 | 5 | 11 | 1 | 4 | |||||||||
Credit/Surety | 6 | 6 | 5 | 7 | 7 | |||||||||
Energy | 2 | 1 | 1 | 2 | 2 | |||||||||
Engineering | 3 | 3 | 2 | 4 | 3 | |||||||||
Marine | 5 | 4 | 2 | 6 | 6 | |||||||||
Specialty casualty | 3 | 3 | 3 | 3 | 2 | |||||||||
Specialty property | 4 | 4 | 2 | 3 | 4 | |||||||||
Life and Health | 25 | 24 | 19 | 25 | 24 | |||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||
Distribution of Gross Premiums Written by Geography: | ||||||||||||||
Asia, Australia and New Zealand | 14 | % | 13 | % | 10 | % | 10 | % | 13 | % | ||||
Europe | 35 | 33 | 43 | 38 | 39 | |||||||||
Latin America, Caribbean and Africa | 11 | 9 | 9 | 14 | 10 | |||||||||
North America | 40 | 45 | 38 | 38 | 38 | |||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||
Distribution of Gross Premiums Written by Production Source: | ||||||||||||||
Broker | 72 | % | 73 | % | 69 | % | 68 | % | 69 | % | ||||
Direct | 28 | 27 | 31 | 32 | 31 | |||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
For the nine months ended | For the year ended | |||||||||||
September 30, | September 30, | December 31, | December 31, | |||||||||
2015 | 2014 | 2014 | 2013 | |||||||||
Distribution of Net Premiums Written by Line of Business: | ||||||||||||
Non-life | ||||||||||||
Property and casualty | ||||||||||||
Casualty | 12 | % | 12 | % | 12 | % | 12 | % | ||||
Motor | 7 | 7 | 7 | 7 | ||||||||
Multiline and other | 7 | 5 | 5 | 4 | ||||||||
Property | 12 | 12 | 11 | 12 | ||||||||
Specialty | ||||||||||||
Agriculture | 12 | 12 | 12 | 11 | ||||||||
Aviation/Space | 3 | 3 | 4 | 4 | ||||||||
Catastrophe | 6 | 8 | 6 | 8 | ||||||||
Credit/Surety | 5 | 6 | 7 | 6 | ||||||||
Energy | 1 | 1 | 1 | 2 | ||||||||
Engineering | 3 | 3 | 3 | 4 | ||||||||
Marine | 4 | 5 | 5 | 6 | ||||||||
Specialty casualty | 3 | 3 | 3 | 3 | ||||||||
Specialty property | 3 | 3 | 3 | 3 | ||||||||
Life and Health | 22 | 20 | 21 | 18 | ||||||||
100 | % | 100 | % | 100 | % | 100 | % | |||||
Distribution of Gross Premiums Written by Geography: | ||||||||||||
Asia, Australia and New Zealand | 12 | % | 12 | % | 11 | % | 11 | % | ||||
Europe | 37 | 40 | 40 | 40 | ||||||||
Latin America, Caribbean and Africa | 10 | 9 | 10 | 10 | ||||||||
North America | 41 | 39 | 39 | 39 | ||||||||
100 | % | 100 | % | 100 | % | 100 | % | |||||
Distribution of Gross Premiums Written by Production Source: | ||||||||||||
Broker | 71 | % | 70 | % | 69 | % | 71 | % | ||||
Direct | 29 | 30 | 31 | 29 | ||||||||
100 | % | 100 | % | 100 | % | 100 | % |
For the three months ended | ||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | ||||||||||
Distribution of Gross Premiums Written by Reinsurance Type for the Non-life sub-segment: | ||||||||||||||
North America | ||||||||||||||
Non-Proportional | 15 | % | 14 | % | 25 | % | 11 | % | 16 | % | ||||
Proportional | 85 | 86 | 75 | 89 | 84 | |||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||
Global (Non-U.S.) P&C | ||||||||||||||
Non-Proportional | 10 | % | 11 | % | 34 | % | 4 | % | 12 | % | ||||
Proportional | 90 | 89 | 66 | 96 | 88 | |||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||
Global Specialty | ||||||||||||||
Non-Proportional | 12 | % | 15 | % | 24 | % | 10 | % | 13 | % | ||||
Proportional | 88 | 85 | 76 | 90 | 87 | |||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||
Catastrophe | ||||||||||||||
Non-Proportional | 96 | % | 97 | % | 97 | % | 113 | % | 97 | % | ||||
Proportional | 4 | 3 | 3 | (13 | ) | 3 | ||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||
Non-life total | ||||||||||||||
Non-Proportional | 18 | % | 23 | % | 36 | % | 11 | % | 19 | % | ||||
Proportional | 82 | 77 | 64 | 89 | 81 | |||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
For the nine months ended | For the year ended | |||||||||||
September 30, | September 30, | December 31, | December 31, | |||||||||
2015 | 2014 | 2014 | 2013 | |||||||||
Distribution of Gross Premiums Written by Reinsurance Type for the Non-life sub-segment: | ||||||||||||
North America | ||||||||||||
Non-Proportional | 18 | % | 18 | % | 16 | % | 18 | % | ||||
Proportional | 82 | 82 | 84 | 82 | ||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||
Global (Non-U.S.) P&C | ||||||||||||
Non-Proportional | 23 | % | 25 | % | 22 | % | 21 | % | ||||
Proportional | 77 | 75 | 78 | 79 | ||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||
Global Specialty | ||||||||||||
Non-Proportional | 17 | % | 19 | % | 17 | % | 19 | % | ||||
Proportional | 83 | 81 | 83 | 81 | ||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||
Catastrophe | ||||||||||||
Non-Proportional | 97 | % | 97 | % | 98 | % | 98 | % | ||||
Proportional | 3 | 3 | 2 | 2 | ||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||
Non-life total | ||||||||||||
Non-Proportional | 27 | % | 28 | % | 25 | % | 28 | % | ||||
Proportional | 73 | 72 | 75 | 72 | ||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % |
September 30, | June 30, | March 31, | December 31, | September 30, | December 31, | |||||||||||||||||||||||||||||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||||||||||||||||||
U.S. government | $ | 2,148 | 15 | % | $ | 2,282 | 16 | % | $ | 2,241 | 15 | % | $ | 2,277 | 15 | % | $ | 2,160 | 14 | % | $ | 1,599 | 11 | % | ||||||||||||||||||
U.S. government sponsored enterprises | 48 | — | 53 | — | 58 | — | 39 | — | 25 | — | 25 | — | ||||||||||||||||||||||||||||||
U.S. states, territories and municipalities | 760 | 5 | 682 | 5 | 621 | 4 | 531 | 3 | 321 | 2 | 124 | 1 | ||||||||||||||||||||||||||||||
Non-U.S. sovereign government, supranational and government related | 1,288 | 9 | 1,492 | 10 | 1,557 | 10 | 1,976 | 13 | 2,209 | 14 | 2,354 | 15 | ||||||||||||||||||||||||||||||
Corporates | 5,366 | 37 | 5,510 | 37 | 5,495 | 37 | 5,604 | 37 | 5,706 | 37 | 6,049 | 40 | ||||||||||||||||||||||||||||||
Mortgage/asset-backed securities | 3,416 | 24 | 3,331 | 23 | 3,440 | 23 | 3,492 | 23 | 3,530 | 24 | 3,442 | 23 | ||||||||||||||||||||||||||||||
Total fixed maturities | 13,026 | 90 | 13,350 | 91 | 13,412 | 89 | 13,919 | 91 | 13,951 | 91 | 13,593 | 90 | ||||||||||||||||||||||||||||||
Short-term investments | 101 | 1 | 19 | — | 20 | — | 25 | — | 37 | — | 14 | — | ||||||||||||||||||||||||||||||
Equities | 1,004 | 7 | 1,007 | 7 | 1,320 | 9 | 1,057 | 7 | 1,001 | 7 | 1,221 | 8 | ||||||||||||||||||||||||||||||
Other invested assets | 345 | 2 | 340 | 2 | 287 | 2 | 299 | 2 | 299 | 2 | 321 | 2 | ||||||||||||||||||||||||||||||
Total investments | $ | 14,476 | 100 | % | $ | 14,716 | 100 | % | $ | 15,039 | 100 | % | $ | 15,300 | 100 | % | $ | 15,288 | 100 | % | $ | 15,149 | 100 | % | ||||||||||||||||||
Cash and cash equivalents | 1,256 | 1,493 | 1,414 | 1,313 | 1,519 | 1,496 | ||||||||||||||||||||||||||||||||||||
Total investments and cash | $ | 15,732 | $ | 16,209 | $ | 16,453 | $ | 16,613 | $ | 16,807 | $ | 16,645 | ||||||||||||||||||||||||||||||
Maturity distribution: | ||||||||||||||||||||||||||||||||||||||||||
One year or less | $ | 548 | 4 | % | $ | 239 | 2 | % | $ | 257 | 2 | % | $ | 313 | 2 | % | $ | 401 | 3 | % | $ | 378 | 3 | |||||||||||||||||||
More than one year through five years | 4,152 | 32 | 4,703 | 35 | 4,694 | 35 | 5,169 | 37 | 5,279 | 38 | 5,057 | 37 | ||||||||||||||||||||||||||||||
More than five years through ten years | 3,433 | 26 | 3,642 | 27 | 3,669 | 27 | 3,719 | 27 | 3,747 | 27 | 3,962 | 29 | ||||||||||||||||||||||||||||||
More than ten years | 1,578 | 12 | 1,454 | 11 | 1,372 | 10 | 1,251 | 9 | 1,031 | 7 | 768 | 6 | ||||||||||||||||||||||||||||||
Subtotal | 9,711 | 74 | 10,038 | 75 | 9,992 | 74 | 10,452 | 75 | 10,458 | 75 | 10,165 | 75 | ||||||||||||||||||||||||||||||
Mortgage/asset-backed securities | 3,416 | 26 | 3,331 | 25 | 3,440 | 26 | 3,492 | 25 | 3,530 | 25 | 3,442 | 25 | ||||||||||||||||||||||||||||||
Total | $ | 13,127 | 100 | % | $ | 13,369 | 100 | % | $ | 13,432 | 100 | % | $ | 13,944 | 100 | % | $ | 13,988 | 100 | % | $ | 13,607 | 100 | % | ||||||||||||||||||
Credit quality by market value: | ||||||||||||||||||||||||||||||||||||||||||
AAA | 10 | % | 11 | % | 10 | % | 11 | % | 12 | % | 14 | % | ||||||||||||||||||||||||||||||
AA | 44 | 44 | 45 | 46 | 44 | 41 | ||||||||||||||||||||||||||||||||||||
A | 19 | 19 | 19 | 19 | 19 | 21 | ||||||||||||||||||||||||||||||||||||
BBB | 18 | 18 | 17 | 16 | 17 | 16 | ||||||||||||||||||||||||||||||||||||
Below Investment Grade/Unrated | 9 | 8 | 9 | 8 | 8 | 8 | ||||||||||||||||||||||||||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||||||||
Expected average duration (1) | 3.5 | Yrs | 3.6 | Yrs | 3.5 | Yrs | 3.7 | Yrs | 3.5 | Yrs | 3.0 | Yrs | ||||||||||||||||||||||||||||||
Average yield to maturity at market (1) | 2.8 | % | 2.7 | % | 2.3 | % | 2.4 | % | 2.3 | % | 2.5 | % | ||||||||||||||||||||||||||||||
Average credit quality | A | A | A | A | A | A |
September 30, 2015 | |||||||||||||||||||||||
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 | $ | 1,092,572 | 20.4 | % | 6.9 | % | 0.8 | % | |||||||||||||||
Consumer noncyclical | 797,984 | 14.9 | 5.1 | 0.2 | |||||||||||||||||||
Utilities | 618,919 | 11.5 | 3.9 | 0.3 | |||||||||||||||||||
Communications | 571,700 | 10.7 | 3.6 | 0.4 | |||||||||||||||||||
Industrials | 482,551 | 9.0 | 3.1 | 0.2 | |||||||||||||||||||
Consumer cyclical | 471,359 | 8.8 | 3.0 | 0.3 | |||||||||||||||||||
Energy | 412,739 | 7.7 | 2.6 | 0.2 | |||||||||||||||||||
Insurance | 307,611 | 5.7 | 2.0 | 0.2 | |||||||||||||||||||
Technology | 139,111 | 2.6 | 0.9 | 0.2 | |||||||||||||||||||
Basic materials | 132,480 | 2.5 | 0.8 | 0.1 | |||||||||||||||||||
Real estate investment trusts | 124,179 | 2.3 | 0.8 | 0.1 | |||||||||||||||||||
Catastrophe bonds | 93,505 | 1.7 | 0.6 | 0.1 | |||||||||||||||||||
Government guaranteed corporate debt | 66,328 | 1.2 | 0.4 | 0.4 | |||||||||||||||||||
Longevity and mortality bonds | 48,024 | 0.9 | 0.3 | 0.2 | |||||||||||||||||||
Diversified | 7,218 | 0.1 | 0.1 | — | |||||||||||||||||||
Total Corporate bonds | $ | 5,366,280 | 100.0 | % | 34.1 | % | |||||||||||||||||
Finance sector - Corporate bonds | |||||||||||||||||||||||
Banks | $ | 639,228 | 11.9 | % | 4.1 | % | |||||||||||||||||
Investment banking and brokerage | 283,304 | 5.3 | 1.8 | ||||||||||||||||||||
Financial services | 117,482 | 2.2 | 0.7 | ||||||||||||||||||||
Commercial and consumer finance | 28,652 | 0.5 | 0.2 | ||||||||||||||||||||
Other | 23,906 | 0.5 | 0.1 | ||||||||||||||||||||
Total finance sector - Corporate bonds | $ | 1,092,572 | 20.4 | % | 6.9 | % | |||||||||||||||||
AAA | AA | A | BBB | Non-Investment Grade/Unrated | Total | ||||||||||||||||||
Credit quality of finance sector - Corporate bonds | |||||||||||||||||||||||
Banks | $ | — | $ | 105,517 | $ | 333,563 | $ | 182,044 | $ | 18,104 | $ | 639,228 | |||||||||||
Investment banking and brokerage | — | — | 262,349 | 19,814 | 1,141 | 283,304 | |||||||||||||||||
Financial services | — | 99,451 | 11,630 | 4,908 | 1,493 | 117,482 | |||||||||||||||||
Commercial and consumer finance | — | — | — | 24,675 | 3,977 | 28,652 | |||||||||||||||||
Other | — | — | — | 23,906 | — | 23,906 | |||||||||||||||||
Total finance sector - Corporate bonds | $ | — | $ | 204,968 | $ | 607,542 | $ | 255,347 | $ | 24,715 | $ | 1,092,572 | |||||||||||
% of total | — | % | 19 | % | 56 | % | 23 | % | 2 | % | 100 | % |
September 30, 2015 | ||||||||||||
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 | $ | 180,387 | 22.1 | % | 1.2 | % | 0.2 | % | ||||
Consumer noncyclical | 115,462 | 14.1 | 0.7 | 0.1 | ||||||||
Finance | 101,111 | 12.4 | 0.6 | 0.1 | ||||||||
Insurance | 99,773 | 12.2 | 0.6 | 0.5 | ||||||||
Energy | 72,880 | 8.9 | 0.5 | 0.1 | ||||||||
Industrials | 64,073 | 7.8 | 0.4 | 0.1 | ||||||||
Technology | 53,780 | 6.6 | 0.3 | 0.1 | ||||||||
Communications | 45,592 | 5.6 | 0.3 | — | ||||||||
Consumer cyclical | 44,401 | 5.4 | 0.3 | — | ||||||||
Utilities | 24,616 | 3.0 | 0.2 | — | ||||||||
Basic materials | 15,881 | 1.9 | 0.1 | — | ||||||||
Diversified | 124 | — | — | — | ||||||||
Total | $ | 818,080 | 100.0 | % | 5.2 | % | ||||||
Mutual funds and exchange traded funds (ETFs) | ||||||||||||
Funds and ETFs holding equities | 179,195 | 1.1 | ||||||||||
Funds holding fixed income securities | 6,841 | 0.1 | ||||||||||
Total Equities | $ | 1,004,116 | 6.4 | % |
Rating at September 30, 2015 | |||||||||||||||||||||||||||||||
GNMA | GSEs | AAA | AA | A | BBB | Non-Investment Grade/Unrated | Total | ||||||||||||||||||||||||
U.S. Asset-Backed Securities | $ | — | $ | — | $ | 133,578 | $ | 120,069 | $ | 94,482 | $ | — | $ | 418,681 | $ | 766,810 | |||||||||||||||
U.S. Collaterized Mortgage Obligations | — | 2,301 | 2,775 | — | — | — | 1 | 5,077 | |||||||||||||||||||||||
U.S. Mortgage Backed Securities (MBS) | 411,516 | 1,389,485 | — | — | — | — | — | 1,801,001 | |||||||||||||||||||||||
U.S. Commercial Mortgage Backed Securities (CMBS) | 5,375 | — | 6,671 | 9,925 | 18,612 | 1,782 | 1,918 | 44,283 | |||||||||||||||||||||||
U.S. MBS Interest Only | 29,400 | 74,485 | 3,537 | — | — | — | 13,970 | 121,392 | |||||||||||||||||||||||
$ | 446,291 | $ | 1,466,271 | $ | 146,561 | $ | 129,994 | $ | 113,094 | $ | 1,782 | $ | 434,570 | $ | 2,738,563 | ||||||||||||||||
Non-U.S. Asset-Backed Securities | $ | — | $ | — | $ | 159,239 | $ | 57,880 | $ | 58,198 | $ | 3,240 | $ | 37,222 | $ | 315,779 | |||||||||||||||
Non-U.S. Collaterized Mortgage Obligations | — | — | 144,954 | 35,433 | 44,080 | — | — | 224,467 | |||||||||||||||||||||||
Non-U.S. Commercial Mortgage Backed Securities (CMBS) | — | — | 7,527 | — | — | — | — | 7,527 | |||||||||||||||||||||||
Non-U.S. Mortgage Backed Securities (MBS) | — | — | 129,338 | — | — | — | — | 129,338 | |||||||||||||||||||||||
$ | — | $ | — | $ | 441,058 | $ | 93,313 | $ | 102,278 | $ | 3,240 | $ | 37,222 | $ | 677,111 | ||||||||||||||||
Total mortgage/asset-backed securities | $ | 446,291 | $ | 1,466,271 | $ | 587,619 | $ | 223,307 | $ | 215,372 | $ | 5,022 | $ | 471,792 | $ | 3,415,674 | |||||||||||||||
Corporate Securities | — | 47,411 | — | — | — | — | — | 47,411 | |||||||||||||||||||||||
Total | $ | 446,291 | $ | 1,513,682 | $ | 587,619 | $ | 223,307 | $ | 215,372 | $ | 5,022 | $ | 471,792 | $ | 3,463,085 | |||||||||||||||
% of total | 13 | % | 44 | % | 17 | % | 6 | % | 6 | % | — | % | 14 | % | 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 $301.3 million and a carrying value of $2.2 million at September 30, 2015 within Other Invested Assets. |
September 30, 2015 | June 30, 2015 | March 31, 2015 | |||||||||||||||||||||||||||||||||||
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 | $ | 141,451 | $ | — | $ | 141,451 | $ | — | $ | 141,451 | $ | 116,963 | $ | 116,963 | $ | 100,058 | $ | 100,058 | |||||||||||||||||||
Principal Finance - Derivative Exposure Assumed (2) | — | (26,640 | ) | (26,640 | ) | 42,458 | 15,818 | (17,977 | ) | 24,507 | (22,131 | ) | 20,373 | ||||||||||||||||||||||||
Insurance-Linked Securities | — | 8,523 | 8,523 | 195,188 | 203,711 | (345 | ) | 205,630 | (320 | ) | 205,360 | ||||||||||||||||||||||||||
Strategic Investments | 221,661 | — | 221,661 | — | 221,661 | 231,654 | 231,654 | 210,562 | 210,562 | ||||||||||||||||||||||||||||
Total other invested assets - Private Markets Exposure Assumed | 363,112 | (18,117 | ) | 344,995 | 237,646 | 582,641 | 330,295 | 578,754 | 288,169 | 536,353 | |||||||||||||||||||||||||||
Other (3) | 8,621 | (8,896 | ) | (275 | ) | 9,972 | (1,573 | ) | |||||||||||||||||||||||||||||
Total other invested assets | $ | 371,733 | $ | (27,013 | ) | $ | 344,720 | $ | 340,267 | $ | 286,596 |
(1) | The total net exposures originated in Private Markets are $1,520 million at September 30, 2015 ($1,547 million and $1,548 million at June 30, 2015 and March 31, 2015, respectively). In addition to the net exposures listed above of $583 million at September 30, 2015 ($579 million and $536 million at June 30, 2015 and March 31, 2015, respectively), the Company has the following other net exposures originated in Private Markets: |
• | Principal Finance: $668 million of assets listed under Investments - Fixed Maturities and $9 million listed under Investments - Equities for a total exposure of $834 million at September 30, 2015 ($822 million and $853 million at June 30, 2015 and March 31, 2015, respectively). |
• | Insurance-Linked Securities: $146 million of bonds listed under Investments - Fixed Maturities and $5 million listed under Investment - Equities for a total exposure of $355 million at September 30, 2015 ($356 million and $348 million at June 30, 2015 and March 31, 2015, respectively). |
• | Strategic Investments: $107 million of assets listed under Investments - Equities and $2 million of assets listed under Other Assets for a total exposure of $331 million at September 30, 2015 ($369 million and $347 million at June 30, 2015 and March 31, 2015, 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. |
September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||||||||||||||||||
U.S. government | $ | 111 | 27 | % | $ | 110 | 26 | % | $ | 107 | 25 | % | $ | 105 | 22 | % | $ | 104 | 22 | % | $ | 108 | 19 | % | ||||||||||||||||||
U.S. government sponsored enterprises | 54 | 13 | 48 | 11 | 49 | 11 | 49 | 10 | 45 | 9 | 50 | 9 | ||||||||||||||||||||||||||||||
Non-U.S. sovereign government, supranational and government related | 124 | 30 | 110 | 26 | 111 | 26 | 128 | 27 | 123 | 26 | 137 | 25 | ||||||||||||||||||||||||||||||
Corporates | 108 | 26 | 137 | 32 | 145 | 33 | 177 | 38 | 192 | 40 | 249 | 44 | ||||||||||||||||||||||||||||||
Total fixed maturities | 397 | 96 | % | 405 | 95 | % | 412 | 95 | % | 459 | 97 | % | 464 | 97 | 544 | 97 | ||||||||||||||||||||||||||
Short-term investments | 6 | 1 | 7 | 2 | 11 | 2 | — | — | — | — | 2 | — | ||||||||||||||||||||||||||||||
Other invested assets | 12 | 3 | 13 | 3 | 12 | 3 | 14 | 3 | 15 | 3 | 15 | 3 | ||||||||||||||||||||||||||||||
Total investments | $ | 415 | 100 | % | $ | 425 | 100 | % | $ | 435 | 100 | % | $ | 473 | 100 | % | $ | 479 | 100 | % | $ | 561 | 100 | % | ||||||||||||||||||
Cash and cash equivalents | 64 | 58 | 54 | 42 | 53 | 85 | ||||||||||||||||||||||||||||||||||||
Total investments and cash | $ | 479 | $ | 483 | $ | 489 | $ | 515 | $ | 532 | $ | 646 | ||||||||||||||||||||||||||||||
Accrued investment income | 6 | 5 | 5 | 6 | 6 | 7 | ||||||||||||||||||||||||||||||||||||
Other funds held assets/liabilities | 111 | 107 | 99 | 88 | 112 | 133 | ||||||||||||||||||||||||||||||||||||
Total funds held - directly managed | $ | 596 | $ | 595 | $ | 593 | $ | 609 | $ | 650 | $ | 786 | ||||||||||||||||||||||||||||||
Maturity distribution: | ||||||||||||||||||||||||||||||||||||||||||
One year or less | $ | 64 | 16 | % | $ | 85 | 21 | % | $ | 71 | 17 | % | $ | 77 | 16 | % | $ | 87 | 19 | % | $ | 89 | 16 | % | ||||||||||||||||||
More than one year through five years | 210 | 52 | 204 | 49 | 210 | 50 | 241 | 53 | 258 | 56 | 331 | 61 | ||||||||||||||||||||||||||||||
More than five years through ten years | 108 | 27 | 123 | 30 | 142 | 33 | 141 | 31 | 117 | 25 | 109 | 20 | ||||||||||||||||||||||||||||||
More than ten years | 21 | 5 | — | — | — | — | — | — | 2 | — | 17 | 3 | ||||||||||||||||||||||||||||||
Total | $ | 403 | 100 | % | $ | 412 | 100 | % | $ | 423 | 100 | % | $ | 459 | 100 | % | $ | 464 | 100 | % | $ | 546 | 100 | % | ||||||||||||||||||
Credit quality by market value: | ||||||||||||||||||||||||||||||||||||||||||
AAA | 12 | % | 11 | % | 11 | % | 12 | % | 12 | % | 13 | % | ||||||||||||||||||||||||||||||
AA | 67 | 66 | 66 | 64 | 64 | 58 | ||||||||||||||||||||||||||||||||||||
A | 14 | 16 | 16 | 17 | 17 | 22 | ||||||||||||||||||||||||||||||||||||
BBB | 7 | 7 | 7 | 7 | 7 | 7 | ||||||||||||||||||||||||||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||||||||
Expected average duration | 3.7 | Yrs | 3.3 | Yrs | 3.3 | Yrs | 3.4 | Yrs | 3.1 | Yrs | 2.9 | Yrs | ||||||||||||||||||||||||||||||
Average yield to maturity at market | 1.0 | % | 1.1 | % | 0.8 | % | 1.0 | % | 0.9 | % | 1.2 | % | ||||||||||||||||||||||||||||||
Average credit quality | AA | AA | AA | AA | AA | AA |
September 30, 2015 | ||||||||||||||||||||
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 | $ | 33,437 | 31.0 | % | 7.0 | % | 1.1 | % | ||||||||||||
Consumer noncyclical | 16,907 | 15.7 | 3.5 | 1.0 | ||||||||||||||||
Utilities | 15,605 | 14.5 | 3.3 | 1.0 | ||||||||||||||||
Energy | 14,930 | 13.8 | 3.1 | 1.9 | ||||||||||||||||
Communications | 11,200 | 10.4 | 2.3 | 0.8 | ||||||||||||||||
Industrials | 4,067 | 3.8 | 0.8 | 0.7 | ||||||||||||||||
Technology | 3,851 | 3.6 | 0.8 | 0.8 | ||||||||||||||||
Real estate investment trusts | 3,206 | 3.0 | 0.7 | 0.7 | ||||||||||||||||
Government guaranteed corporate debt | 2,279 | 2.1 | 0.5 | 0.4 | ||||||||||||||||
Basic materials | 1,420 | 1.3 | 0.3 | 0.3 | ||||||||||||||||
Consumer cyclical | 924 | 0.8 | 0.2 | 0.2 | ||||||||||||||||
Total Corporate bonds | $ | 107,826 | 100.0 | % | 22.5 | % | ||||||||||||||
Finance sector - Corporate bonds | ||||||||||||||||||||
Banks | $ | 25,085 | 23.3 | % | 5.2 | % | ||||||||||||||
Financial services | 8,352 | 7.7 | 1.8 | |||||||||||||||||
Total finance sector - Corporate bonds | $ | 33,437 | 31.0 | % | 7.0 | % | ||||||||||||||
AAA | AA | A | BBB | Total | ||||||||||||||||
Credit quality of finance sector - Corporate bonds | ||||||||||||||||||||
Banks | $ | 16,087 | $ | — | $ | 8,998 | $ | — | $ | 25,085 | ||||||||||
Financial services | — | 4,224 | 4,128 | — | 8,352 | |||||||||||||||
Total finance sector - Corporate bonds | $ | 16,087 | $ | 4,224 | $ | 13,126 | $ | — | $ | 33,437 | ||||||||||
% of total | 48 | % | 13 | % | 39 | % | — | % | 100 | % |
For the three months ended | |||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | |||||||||||||||
Fixed maturities | $ | 108,554 | $ | 109,749 | $ | 102,619 | $ | 109,468 | $ | 108,290 | |||||||||
Short-term investments, cash and cash equivalents | 288 | 151 | 140 | 190 | 216 | ||||||||||||||
Equities | 8,818 | 10,385 | 5,915 | 6,720 | 11,999 | ||||||||||||||
Funds held and other | 7,648 | 9,227 | 4,623 | 8,996 | 7,493 | ||||||||||||||
Funds held - directly managed | 2,595 | 3,132 | 3,022 | 3,194 | 3,485 | ||||||||||||||
Investment expenses | (10,849 | ) | (12,452 | ) | (11,688 | ) | (13,882 | ) | (13,307 | ) | |||||||||
Net investment income (1) | $ | 117,054 | $ | 120,192 | $ | 104,631 | $ | 114,686 | $ | 118,176 | |||||||||
Net realized investment (losses) gains on fixed maturities and short-term investments | $ | (3,095 | ) | $ | 12,597 | $ | 51,858 | $ | 26,699 | $ | 37,809 | ||||||||
Net realized investment gains on equities | 20,440 | 31,852 | 20,365 | 30,334 | 33,894 | ||||||||||||||
Net realized (losses) gains on other invested assets | (25,785 | ) | (13,730 | ) | (7,749 | ) | (19,887 | ) | 7,019 | ||||||||||
Change in net unrealized (losses) gains on other invested assets | (12,473 | ) | 16,056 | (21,640 | ) | (11,843 | ) | (6,538 | ) | ||||||||||
Change in net unrealized investment (losses) gains on fixed maturities and short-term investments | (19,375 | ) | (253,918 | ) | 76,971 | 61,085 | (75,537 | ) | |||||||||||
Change in net unrealized investment (losses) gains on equities | (94,869 | ) | (45,523 | ) | (7,016 | ) | 17,052 | (31,093 | ) | ||||||||||
Net other realized and unrealized investment gains (losses) | — | 3,286 | — | (5,801 | ) | 575 | |||||||||||||
Net realized and unrealized investment gains (losses) on funds held - directly managed | 2,140 | (6,354 | ) | 2,856 | 690 | (549 | ) | ||||||||||||
Net realized and unrealized investment (losses) gains | $ | (133,017 | ) | $ | (255,734 | ) | $ | 115,645 | $ | 98,329 | $ | (34,420 | ) |
(1) | Comparisons of net investment income between periods include the impact of foreign exchange variances. For the three months ended September 30, 2015, net investment income includes foreign exchange impacts of $(4.9) million compared to the three months ended September 30, 2014. |
For the nine months ended | For the year ended | |||||||||||||||
September 30, | September 30, | December 31, | December 31, | |||||||||||||
2015 | 2014 | 2014 | 2013 | |||||||||||||
Fixed maturities | $ | 320,922 | $ | 333,946 | $ | 443,414 | $ | 446,299 | ||||||||
Short-term investments, cash and cash equivalents | 579 | 678 | 868 | 1,886 | ||||||||||||
Equities | 25,118 | 33,606 | 40,326 | 32,989 | ||||||||||||
Funds held and other | 21,498 | 24,196 | 33,192 | 34,215 | ||||||||||||
Funds held - directly managed | 8,749 | 10,647 | 13,841 | 20,502 | ||||||||||||
Investment expenses | (34,989 | ) | (38,063 | ) | (51,945 | ) | (51,524 | ) | ||||||||
Net investment income (1) | $ | 341,877 | $ | 365,010 | $ | 479,696 | $ | 484,367 | ||||||||
Net realized investment gains on fixed maturities and short-term investments | $ | 61,360 | $ | 94,036 | $ | 120,734 | $ | 118,575 | ||||||||
Net realized investment gains on equities | 72,657 | 68,399 | 98,733 | 75,217 | ||||||||||||
Net realized (losses) gains on other invested assets | (47,264 | ) | (799 | ) | (20,686 | ) | 20,497 | |||||||||
Change in net unrealized (losses) gains on other invested assets | (18,057 | ) | (46,337 | ) | (58,180 | ) | 56,652 | |||||||||
Change in net unrealized investment (losses) gains on fixed maturities and short-term investments | (196,322 | ) | 167,696 | 228,781 | (525,787 | ) | ||||||||||
Change in net unrealized investment (losses) gains on equities | (147,408 | ) | (14,447 | ) | 2,605 | 118,010 | ||||||||||
Net other realized and unrealized investment gains (losses) | 3,286 | 2,177 | (3,624 | ) | (2,107 | ) | ||||||||||
Net realized and unrealized investment (losses) gains on funds held - directly managed | (1,358 | ) | 2,743 | 3,433 | (21,792 | ) | ||||||||||
Net realized and unrealized investment (losses) gains | $ | (273,106 | ) | $ | 273,468 | $ | 371,796 | $ | (160,735 | ) |
(1) | Comparisons of net investment income between periods include the impact of foreign exchange variances. For the nine months ended September 30, 2015, net investment income includes foreign exchange impacts of $(13.6) million compared to the nine months ended September 30, 2014. |
For the three months ended | |||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | |||||||||||||||
Fixed maturities | $ | 2,622 | $ | 2,607 | $ | 2,809 | $ | 3,000 | $ | 3,128 | |||||||||
Short-term investments, cash and cash equivalents | 13 | 21 | 14 | 11 | 8 | ||||||||||||||
Other | 136 | 637 | 368 | 399 | 527 | ||||||||||||||
Investment expenses | (176 | ) | (133 | ) | (169 | ) | (216 | ) | (178 | ) | |||||||||
Net investment income | $ | 2,595 | $ | 3,132 | $ | 3,022 | $ | 3,194 | $ | 3,485 | |||||||||
Net realized investment gains (losses) on fixed maturities and short-term investments | $ | 57 | $ | (46 | ) | $ | 170 | $ | 194 | $ | (32 | ) | |||||||
Net realized investment gains (losses) on other invested assets | 243 | (10 | ) | 146 | 53 | — | |||||||||||||
Change in net unrealized investment gains (losses) on fixed maturities and short-term investments | 1,831 | (6,111 | ) | 2,358 | 946 | (209 | ) | ||||||||||||
Change in net unrealized investment gains (losses) on other invested assets | 9 | (187 | ) | 182 | (503 | ) | (308 | ) | |||||||||||
Net realized and unrealized investment gains (losses) on funds held - directly managed | $ | 2,140 | $ | (6,354 | ) | $ | 2,856 | $ | 690 | $ | (549 | ) |
For the nine months ended | For the year ended | |||||||||||||||
September 30, | September 30, | December 31, | December 31, | |||||||||||||
2015 | 2014 | 2014 | 2013 | |||||||||||||
Fixed maturities | $ | 8,038 | $ | 9,789 | $ | 12,789 | $ | 18,804 | ||||||||
Short-term investments, cash and cash equivalents | 48 | 48 | 59 | 1,246 | ||||||||||||
Other | 1,141 | 1,362 | 1,760 | 1,287 | ||||||||||||
Investment expenses | (478 | ) | (552 | ) | (767 | ) | (835 | ) | ||||||||
Net investment income | $ | 8,749 | $ | 10,647 | $ | 13,841 | $ | 20,502 | ||||||||
Net realized investment gains on fixed maturities and short-term investments | $ | 181 | $ | 1,766 | $ | 1,959 | $ | 6,021 | ||||||||
Net realized investment gains on other invested assets | 379 | — | 53 | 19 | ||||||||||||
Change in net unrealized investment (losses) gains on fixed maturities and short-term investments | (1,922 | ) | 991 | 1,938 | (24,176 | ) | ||||||||||
Change in net unrealized investment gains (losses) on other invested assets | 4 | (14 | ) | (517 | ) | (3,656 | ) | |||||||||
Net realized and unrealized investment (losses) gains on funds held - directly managed | $ | (1,358 | ) | $ | 2,743 | $ | 3,433 | $ | (21,792 | ) |
As at and for the three months ended | |||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | |||||||||||||||
Reconciliation of beginning and ending liability for unpaid losses and loss expenses: | |||||||||||||||||||
Gross liability at beginning of period | $ | 9,549,398 | $ | 9,401,397 | $ | 9,745,806 | $ | 10,264,001 | $ | 10,399,775 | |||||||||
Reinsurance recoverable at beginning of period | (202,839 | ) | (196,981 | ) | (214,349 | ) | (249,338 | ) | (244,543 | ) | |||||||||
Net liability at beginning of period | 9,346,559 | 9,204,416 | 9,531,457 | 10,014,663 | 10,155,232 | ||||||||||||||
Net incurred losses related to: | |||||||||||||||||||
Current year | 802,518 | 778,416 | 705,176 | 779,029 | 853,508 | ||||||||||||||
Prior years | (245,936 | ) | (173,368 | ) | (224,337 | ) | (169,443 | ) | (165,763 | ) | |||||||||
556,582 | 605,048 | 480,839 | 609,586 | 687,745 | |||||||||||||||
Change in reserve agreement (1) | — | — | 13,108 | (16,977 | ) | — | |||||||||||||
Net losses paid | (518,556 | ) | (533,577 | ) | (471,676 | ) | (882,812 | ) | (513,127 | ) | |||||||||
Effects of foreign exchange rate changes | (65,026 | ) | 70,672 | (349,312 | ) | (193,003 | ) | (315,187 | ) | ||||||||||
Net liability at end of period | 9,319,559 | 9,346,559 | 9,204,416 | 9,531,457 | 10,014,663 | ||||||||||||||
Reinsurance recoverable at end of period | 202,666 | 202,839 | 196,981 | 214,349 | 249,338 | ||||||||||||||
Gross liability at end of period | $ | 9,522,225 | $ | 9,549,398 | $ | 9,401,397 | $ | 9,745,806 | $ | 10,264,001 | |||||||||
Breakdown of gross liability at end of period: | |||||||||||||||||||
Case reserves | $ | 3,875,962 | $ | 3,960,022 | $ | 3,975,276 | $ | 4,236,038 | $ | 4,420,406 | |||||||||
Additional case reserves | 194,265 | 220,023 | 229,363 | 253,890 | 321,607 | ||||||||||||||
Incurred but not reported reserves | 5,451,998 | 5,369,353 | 5,196,758 | 5,255,878 | 5,521,988 | ||||||||||||||
Gross liability at end of period | $ | 9,522,225 | $ | 9,549,398 | $ | 9,401,397 | $ | 9,745,806 | $ | 10,264,001 | |||||||||
Breakdown of gross liability at end of period by Non-life sub-segment: | |||||||||||||||||||
North America | $ | 3,437,238 | $ | 3,439,780 | $ | 3,317,662 | $ | 3,307,948 | $ | 3,541,332 | |||||||||
Global (Non-U.S.) P&C | 2,044,735 | 2,053,451 | 2,021,090 | 2,175,965 | 2,261,968 | ||||||||||||||
Global Specialty | 3,685,691 | 3,676,958 | 3,620,345 | 3,769,758 | 3,924,377 | ||||||||||||||
Catastrophe | 354,561 | 379,209 | 442,300 | 492,135 | 536,324 | ||||||||||||||
Gross liability at end of period | $ | 9,522,225 | $ | 9,549,398 | $ | 9,401,397 | $ | 9,745,806 | $ | 10,264,001 | |||||||||
Unrecognized time value of non-life reserves (2) | $ | 430,596 | $ | 490,714 | $ | 369,059 | $ | 474,258 | $ | 603,499 | |||||||||
Non-life paid loss ratio data: | |||||||||||||||||||
Non-life paid losses to incurred losses ratio | 93.2 | % | 88.2 | % | 98.1 | % | 144.8 | % | 74.6 | % | |||||||||
Non-life paid losses to net premiums earned ratio | 46.7 | % | 52.7 | % | 50.4 | % | 78.3 | % | 41.9 | % |
As at and for the nine months ended | As at and for the year ended | |||||||||||||||
September 30, | September 30, | December 31, | December 31, | |||||||||||||
2015 | 2014 | 2014 | 2013 | |||||||||||||
Reconciliation of beginning and ending liability for unpaid losses and loss expenses: | ||||||||||||||||
Gross liability at beginning of period | $ | 9,745,806 | $ | 10,646,318 | $ | 10,646,318 | $ | 10,709,371 | ||||||||
Reinsurance recoverable at beginning of period | (214,349 | ) | (267,384 | ) | (267,384 | ) | (291,330 | ) | ||||||||
Net liability at beginning of period | 9,531,457 | 10,378,934 | 10,378,934 | 10,418,041 | ||||||||||||
Net incurred losses related to: | ||||||||||||||||
Current year | 2,286,111 | 2,343,953 | 3,122,981 | 3,118,755 | ||||||||||||
Prior years | (643,641 | ) | (490,970 | ) | (660,413 | ) | (721,499 | ) | ||||||||
1,642,470 | 1,852,983 | 2,462,568 | 2,397,256 | |||||||||||||
Change in reserve agreement (1) | 13,108 | (8,435 | ) | (25,412 | ) | (49,544 | ) | |||||||||
Net losses paid | (1,523,809 | ) | (1,915,738 | ) | (2,798,549 | ) | (2,401,559 | ) | ||||||||
Effects of foreign exchange rate changes | (343,667 | ) | (293,081 | ) | (486,084 | ) | 14,740 | |||||||||
Net liability at end of period | 9,319,559 | 10,014,663 | 9,531,457 | 10,378,934 | ||||||||||||
Reinsurance recoverable at end of period | 202,666 | 249,338 | 214,349 | 267,384 | ||||||||||||
Gross liability at end of period | $ | 9,522,225 | $ | 10,264,001 | $ | 9,745,806 | $ | 10,646,318 | ||||||||
Breakdown of gross liability at end of period: | ||||||||||||||||
Case reserves | $ | 3,875,962 | $ | 4,420,406 | $ | 4,236,038 | $ | 4,663,164 | ||||||||
Additional case reserves | 194,265 | 321,607 | 253,890 | 403,145 | ||||||||||||
Incurred but not reported reserves | 5,451,998 | 5,521,988 | 5,255,878 | 5,580,009 | ||||||||||||
Gross liability at end of period | $ | 9,522,225 | $ | 10,264,001 | $ | 9,745,806 | $ | 10,646,318 | ||||||||
Breakdown of gross liability at end of period by Non-life sub-segment: | ||||||||||||||||
North America | $ | 3,437,238 | $ | 3,541,332 | $ | 3,307,948 | $ | 3,535,946 | ||||||||
Global (Non-U.S.) P&C | 2,044,735 | 2,261,968 | 2,175,965 | 2,444,129 | ||||||||||||
Global Specialty | 3,685,691 | 3,924,377 | 3,769,758 | 3,951,543 | ||||||||||||
Catastrophe | 354,561 | 536,324 | 492,135 | 714,700 | ||||||||||||
Gross liability at end of period | $ | 9,522,225 | $ | 10,264,001 | $ | 9,745,806 | $ | 10,646,318 | ||||||||
Unrecognized time value of non-life reserves (2) | $ | 430,596 | $ | 603,499 | $ | 474,258 | $ | 733,528 | ||||||||
Non-life paid loss ratio data: | ||||||||||||||||
Non-life paid losses to incurred losses ratio | 92.8 | % | 103.4 | % | 113.6 | % | 100.2 | % | ||||||||
Non-life paid losses to net premiums earned ratio | 49.8 | % | 58.8 | % | 63.8 | % | 56.6 | % |
As at and for the three months ended | |||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | |||||||||||||||
Reconciliation of beginning and ending policy benefits for life and annuity contracts: | |||||||||||||||||||
Gross liability at beginning of period | $ | 2,087,369 | $ | 1,996,519 | $ | 2,050,107 | $ | 2,113,463 | $ | 2,127,412 | |||||||||
Reinsurance recoverable at beginning of period | (36,752 | ) | (29,247 | ) | (29,495 | ) | (25,433 | ) | (23,703 | ) | |||||||||
Net liability at beginning of period | 2,050,617 | 1,967,272 | 2,020,612 | 2,088,030 | 2,103,709 | ||||||||||||||
Net incurred losses related to: | |||||||||||||||||||
Current year | 254,401 | 272,752 | 254,450 | 269,438 | 273,394 | ||||||||||||||
Prior years | (6,787 | ) | (12,883 | ) | (14,008 | ) | (9,101 | ) | (1,596 | ) | |||||||||
247,614 | 259,869 | 240,442 | 260,337 | 271,798 | |||||||||||||||
Net losses paid | (182,255 | ) | (231,702 | ) | (166,408 | ) | (252,950 | ) | (178,847 | ) | |||||||||
Effects of foreign exchange rate changes | (31,692 | ) | 55,178 | (127,374 | ) | (74,805 | ) | (108,630 | ) | ||||||||||
Net liability at end of period | 2,084,284 | 2,050,617 | 1,967,272 | 2,020,612 | 2,088,030 | ||||||||||||||
Reinsurance recoverable at end of period | 38,744 | 36,752 | 29,247 | 29,495 | 25,433 | ||||||||||||||
Gross liability at end of period | $ | 2,123,028 | $ | 2,087,369 | $ | 1,996,519 | $ | 2,050,107 | $ | 2,113,463 | |||||||||
Life value in force | $ | 175,600 | $ | 146,100 | $ | 109,900 | $ | 145,100 | $ | 180,200 |
As at and for the nine months ended | As at and for the year ended | |||||||||||||||
September 30, | September 30, | December 31, | December 31, | |||||||||||||
2015 | 2014 | 2014 | 2013 | |||||||||||||
Reconciliation of beginning and ending policy benefits for life and annuity contracts: | ||||||||||||||||
Gross liability at beginning of period | $ | 2,050,107 | $ | 1,974,133 | $ | 1,974,133 | $ | 1,813,244 | ||||||||
Reinsurance recoverable at beginning of period | (29,495 | ) | (7,022 | ) | (7,022 | ) | (20,684 | ) | ||||||||
Net liability at beginning of period | 2,020,612 | 1,967,111 | 1,967,111 | 1,792,560 | ||||||||||||
Net incurred losses related to: | ||||||||||||||||
Current year | 781,601 | 749,802 | 1,019,240 | 799,596 | ||||||||||||
Prior years | (33,677 | ) | (9,938 | ) | (19,038 | ) | (39,044 | ) | ||||||||
747,924 | 739,864 | 1,000,202 | 760,552 | |||||||||||||
Net losses paid | (580,365 | ) | (527,954 | ) | (780,905 | ) | (625,546 | ) | ||||||||
Effects of foreign exchange rate changes | (103,887 | ) | (90,991 | ) | (165,796 | ) | 39,545 | |||||||||
Net liability at end of period | 2,084,284 | 2,088,030 | 2,020,612 | 1,967,111 | ||||||||||||
Reinsurance recoverable at end of period | 38,744 | 25,433 | 29,495 | 7,022 | ||||||||||||
Gross liability at end of period | $ | 2,123,028 | $ | 2,113,463 | $ | 2,050,107 | $ | 1,974,133 | ||||||||
Life value in force | $ | 175,600 | $ | 180,200 | $ | 145,100 | $ | 188,000 |
For the three months ended | ||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | ||||||||||||||||
Prior year net favorable (adverse) reserve development: | ||||||||||||||||||||
Non-life segment: | ||||||||||||||||||||
North America | $ | 102,428 | $ | 43,701 | $ | 82,536 | $ | 76,235 | $ | 82,788 | ||||||||||
Global (Non-U.S.) P&C | 38,457 | 10,224 | 18,031 | 27,999 | 29,404 | |||||||||||||||
Global Specialty | 103,584 | 110,045 | 109,675 | 78,278 | 50,959 | |||||||||||||||
Catastrophe | 1,467 | 9,398 | 14,095 | (13,069 | ) | 2,612 | ||||||||||||||
Total Non-life net prior year reserve development | $ | 245,936 | $ | 173,368 | $ | 224,337 | $ | 169,443 | $ | 165,763 | ||||||||||
Non-life segment: | ||||||||||||||||||||
Net prior year reserve development due to changes in premiums | $ | 13,759 | $ | (2,492 | ) | $ | (3,540 | ) | $ | (8,389 | ) | $ | (11,215 | ) | ||||||
Net prior year reserve development due to all other factors (2) | 232,177 | 175,860 | 227,877 | 177,832 | 176,978 | |||||||||||||||
Total Non-life net prior year reserve development | $ | 245,936 | $ | 173,368 | $ | 224,337 | $ | 169,443 | $ | 165,763 | ||||||||||
Life and Health segment: | ||||||||||||||||||||
Net prior year reserve development due to GMDB (1) | $ | (2,348 | ) | $ | 5,626 | $ | 4,977 | $ | 3,481 | $ | (329 | ) | ||||||||
Net prior year reserve development due to all other factors (2) | 9,135 | 7,257 | 9,031 | 5,620 | 1,925 | |||||||||||||||
Total Life and Health net prior year reserve development | $ | 6,787 | $ | 12,883 | $ | 14,008 | $ | 9,101 | $ | 1,596 |
(1) | The guaranteed minimum death benefit (GMDB) reserves are sensitive to volatility in certain referenced global equity markets. At September 30, 2015, a 10% increase in the referenced global equity market would have decreased reserves by approximately $2.0 million, while a 10% decrease in the referenced global equity market would have increased reserves by approximately $2.4 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 nine months ended | For the year ended | |||||||||||||||
September 30, | September 30, | December 31, | December 31, | |||||||||||||
2015 | 2014 | 2014 | 2013 | |||||||||||||
Prior year net favorable (adverse) reserve development: | ||||||||||||||||
Non-life segment: | ||||||||||||||||
North America | $ | 228,665 | $ | 174,707 | $ | 250,942 | $ | 222,839 | ||||||||
Global (Non-U.S.) P&C | 66,713 | 106,395 | 134,394 | 180,052 | ||||||||||||
Global Specialty | 323,304 | 179,418 | 257,696 | 227,383 | ||||||||||||
Catastrophe | 24,959 | 30,450 | 17,381 | 91,225 | ||||||||||||
Total Non-life net prior year reserve development | $ | 643,641 | $ | 490,970 | $ | 660,413 | $ | 721,499 | ||||||||
Non-life segment: | ||||||||||||||||
Net prior year reserve development due to changes in premiums | $ | 7,726 | $ | (29,516 | ) | $ | (37,940 | ) | $ | (70,810 | ) | |||||
Net prior year reserve development due to all other factors (2) | 635,915 | 520,486 | 698,353 | 792,309 | ||||||||||||
Total Non-life net prior year reserve development | $ | 643,641 | $ | 490,970 | $ | 660,413 | $ | 721,499 | ||||||||
Life and Health segment: | ||||||||||||||||
Net prior year reserve development due to GMDB (1) | $ | 8,255 | $ | 3,683 | $ | 7,163 | $ | 26,617 | ||||||||
Net prior year reserve development due to all other factors (2) | 25,422 | 6,255 | 11,875 | 12,427 | ||||||||||||
Total Life and Health net prior year reserve development | $ | 33,677 | $ | 9,938 | $ | 19,038 | $ | 39,044 |
(1) | The guaranteed minimum death benefit (GMDB) reserves are sensitive to volatility in certain referenced global equity markets. At September 30, 2015, a 10% increase in the referenced global equity market would have decreased reserves by approximately $2.0 million, while a 10% decrease in the referenced global equity market would have increased reserves by approximately $2.4 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. |
July 1, 2015 | April 1, 2015 | January 1, 2015 | October 1, 2014 | July 1, 2014 | ||||||||||||||||||||||||||||||||||||||
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 | $ | 533 | $ | 746 | $ | 765 | $ | 757 | $ | 757 | |||||||||||||||||||||||||||||||
U.S. Northeast | Hurricane | 708 | 925 | 963 | 909 | 909 | ||||||||||||||||||||||||||||||||||||
U.S. Gulf Coast | Hurricane | 577 | 787 | 850 | 870 | 870 | ||||||||||||||||||||||||||||||||||||
Caribbean | Hurricane | 174 | 177 | 179 | 189 | 189 | ||||||||||||||||||||||||||||||||||||
Europe | Windstorm | 544 | 561 | 606 | 722 | 722 | ||||||||||||||||||||||||||||||||||||
Japan | Typhoon | 195 | 201 | 145 | 145 | 145 | ||||||||||||||||||||||||||||||||||||
California | Earthquake | 469 | $ | 588 | 637 | $ | 775 | 609 | $ | 730 | 588 | $ | 675 | 588 | $ | 675 | ||||||||||||||||||||||||||
British Columbia | Earthquake | 199 | 379 | 214 | 390 | 223 | 414 | 204 | 391 | 204 | 391 | |||||||||||||||||||||||||||||||
Japan | Earthquake | 377 | 421 | 390 | 437 | 393 | 440 | 427 | 481 | 427 | 481 | |||||||||||||||||||||||||||||||
Australia | Earthquake | 236 | 350 | 246 | 357 | 305 | 415 | 367 | 495 | 367 | 495 | |||||||||||||||||||||||||||||||
New Zealand | Earthquake | 161 | 205 | 165 | 196 | 194 | 229 | 218 | 279 | 218 | 279 |
(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 | |||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
2015 (2) | 2015 (2) | 2015 (2) | 2014 | 2014 | |||||||||||||||
Reconciliation of GAAP and non-GAAP measures: | |||||||||||||||||||
Annualized return on beginning diluted book value per common share calculated with net (loss) income per share attributable to common shareholders (1) | (16.1 | )% | (6.8 | )% | 15.1 | % | 19.3 | % | 13.2 | % | |||||||||
Less: | |||||||||||||||||||
Annualized net realized and unrealized investment (losses) gains, net of tax, on beginning diluted book value per common share (1) | (8.1 | ) | (14.4 | ) | 6.5 | 6.0 | (2.5 | ) | |||||||||||
Annualized net foreign exchange losses, net of tax, on beginning diluted book value per common share (1) | (1.0 | ) | (0.3 | ) | (1.0 | ) | (2.2 | ) | (0.9 | ) | |||||||||
Annualized net interest in (losses) earnings of equity method investments, net of tax, on beginning diluted book value per common share (1) | (0.1 | ) | 0.4 | (0.2 | ) | (0.1 | ) | 0.2 | |||||||||||
Annualized withholding tax on inter-company dividends, net of tax, on beginning diluted book value per common share (1) | — | — | — | (0.4 | ) | — | |||||||||||||
Annualized amalgamation termination fee and reimbursement of expenses, on beginning diluted book value per common share (1) | (20.9 | ) | — | — | — | — | |||||||||||||
Annualized operating return on beginning diluted book value per common share (1) | 14.0 | % | 7.5 | % | 9.8 | % | 16.0 | % | 16.4 | % | |||||||||
Net (loss) income attributable to PartnerRe | $ | (229,137 | ) | $ | (88,909 | ) | $ | 245,917 | $ | 276,893 | $ | 196,398 | |||||||
Less: | |||||||||||||||||||
Net realized and unrealized investment (losses) gains, net of tax | (121,764 | ) | (217,224 | ) | 100,311 | 82,128 | (35,426 | ) | |||||||||||
Net foreign exchange losses, net of tax | (15,896 | ) | (5,094 | ) | (15,801 | ) | (29,824 | ) | (11,913 | ) | |||||||||
Interest in (losses) earnings of equity method investments, net of tax | (2,244 | ) | 6,731 | (3,313 | ) | (1,810 | ) | 2,893 | |||||||||||
Withholding tax on inter-company dividends, net of tax | — | — | — | (6,125 | ) | — | |||||||||||||
Amalgamation termination fee and reimbursement of expenses | (315,000 | ) | — | — | — | — | |||||||||||||
Dividends to preferred shareholders | 14,184 | 14,184 | 14,184 | 14,184 | 14,184 | ||||||||||||||
Operating earnings attributable to PartnerRe common shareholders | $ | 211,583 | $ | 112,494 | $ | 150,536 | $ | 218,340 | $ | 226,660 | |||||||||
Per diluted common share: | |||||||||||||||||||
Net (loss) income attributable to PartnerRe common shareholders | $ | (5.08 | ) | $ | (2.16 | ) | $ | 4.76 | $ | 5.26 | $ | 3.60 | |||||||
Less: | |||||||||||||||||||
Net realized and unrealized investment (losses) gains, net of tax | (2.54 | ) | (4.55 | ) | 2.06 | 1.64 | (0.70 | ) | |||||||||||
Net foreign exchange losses, net of tax | (0.33 | ) | (0.10 | ) | (0.32 | ) | (0.60 | ) | (0.23 | ) | |||||||||
Interest in earnings (losses) of equity method investments, net of tax | (0.05 | ) | 0.14 | (0.07 | ) | (0.03 | ) | 0.06 | |||||||||||
Amalgamation termination fee and reimbursement of expenses | (6.58 | ) | — | — | — | — | |||||||||||||
Withholding tax on inter-company dividends, net of tax | — | — | — | (0.12 | ) | — | |||||||||||||
Operating earnings attributable to PartnerRe common shareholders | $ | 4.42 | $ | 2.35 | $ | 3.09 | $ | 4.37 | $ | 4.47 | |||||||||
(1) Excluding preferred shares of $853,750 at January 1, 2015 and 2014. | |||||||||||||||||||
(2) For the three months ended September 30, 2015, June 30, 2015 and March 31, 2015, expenses related to the Axis and Exor transactions, pre-tax, (see page 23) are $6,944, $9,008 and $30,880, or $0.15, $0.19 and $0.63 per diluted share, or 0.5%, 0.6% and 2.0% points on the annualized operating return on beginning diluted book value per common share, respectively. For the three months ended June 30, 2015, expense related to the earn-out consideration paid to the former shareholders of Presidio Reinsurance Group, Inc. was $25,223, or $0.53 per diluted share, or 1.7% points on the annualized operating return on beginning dividend book value per share. After-tax, operating earnings attributable to PartnerRe common shareholders adjusted to be before the Axis and Exor transaction related costs and earn-out consideration paid are $218,527, $146,725 and $181,416, or $4.57, $3.07 and $3.72 per diluted share, or 14.5%, 9.8% and 11.8% points on the annualized operating return on beginning diluted book value per common share, respectively. |
For the nine months ended | For the year ended | |||||||||||||||
September 30, | September 30, | December 31, | December 31, | |||||||||||||
2015 | 2014 | 2014 | 2013 | |||||||||||||
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) | (2.5 | )% | 17.4 | % | 17.9 | % | 10.5 | % | ||||||||
Less: | ||||||||||||||||
Annualized net realized and unrealized investment (losses) gains, net of tax, on beginning diluted book value per common share (1) | (5.3 | ) | 4.8 | 5.1 | (2.2 | ) | ||||||||||
Annualized net foreign exchange losses, net of tax, on beginning diluted book value per common share (1) | (0.8 | ) | (0.4 | ) | (0.8 | ) | — | |||||||||
Annualized net interest in earnings of equity method investments, net of tax, on beginning diluted book value per common share (1) | 0.1 | 0.3 | 0.2 | 0.2 | ||||||||||||
Annualized loss on redemption of preferred shares, on beginning diluted book value per common share (1) | — | — | — | (0.2 | ) | |||||||||||
Annualized withholding tax on inter-company dividends, net of tax, on beginning diluted book value per common share (1) | — | — | (0.1 | ) | — | |||||||||||
Annualized amalgamation termination fee and reimbursement of expenses, on beginning diluted book value per common share (1) | (7.0 | ) | — | — | — | |||||||||||
Annualized operating return on beginning diluted book value per common share (1) | 10.5 | % | 12.7 | % | 13.5 | % | 12.7 | % | ||||||||
Net (loss) income attributable to PartnerRe | $ | (72,130 | ) | $ | 778,082 | $ | 1,054,974 | $ | 664,008 | |||||||
Less: | ||||||||||||||||
Net realized and unrealized investment (losses) gains, net of tax | (238,677 | ) | 204,125 | 286,252 | (127,182 | ) | ||||||||||
Net foreign exchange (losses) gains, net of tax | (36,792 | ) | (16,059 | ) | (45,883 | ) | 2,521 | |||||||||
Interest in earnings of equity method investments, net of tax | 1,174 | 10,387 | 8,577 | 9,075 | ||||||||||||
Withholding tax on inter-company dividends, net of tax | — | — | (6,125 | ) | — | |||||||||||
Amalgamation termination fee and reimbursement of expenses | (315,000 | ) | — | — | — | |||||||||||
Dividends to preferred shareholders | 42,551 | 42,551 | 56,735 | 57,861 | ||||||||||||
Operating earnings attributable to PartnerRe common shareholders | $ | 474,614 | $ | 537,078 | $ | 755,418 | $ | 721,733 | ||||||||
Per diluted common share: | ||||||||||||||||
Net (loss) income attributable to PartnerRe common shareholders | $ | (2.40 | ) | $ | 14.26 | $ | 19.51 | $ | 10.58 | |||||||
Less: | ||||||||||||||||
Net realized and unrealized investment (losses) gains, net of tax | (5.00 | ) | 3.95 | 5.60 | (2.25 | ) | ||||||||||
Net foreign exchange (losses) gains, net of tax | (0.77 | ) | (0.31 | ) | (0.90 | ) | 0.04 | |||||||||
Loss on redemption of preferred shares | — | — | — | (0.16 | ) | |||||||||||
Interest in earnings of equity method investments, net of tax | 0.02 | 0.20 | 0.17 | 0.16 | ||||||||||||
Amalgamation termination fee and reimbursement of expenses | (6.60 | ) | — | — | — | |||||||||||
Withholding tax on inter-company dividends, net of tax | — | — | (0.12 | ) | — | |||||||||||
Operating earnings attributable to PartnerRe common shareholders | $ | 9.95 | $ | 10.42 | $ | 14.76 | $ | 12.79 | ||||||||
(1) Excluding preferred shares of $853,750 at January 1, 2015 and 2014 and $893,750 at January 1, 2013. | ||||||||||||||||
(2) For the nine months ended September 30, 2015, expenses related to the Axis and Exor transactions, pre-tax, (see page 24) are $46,832 or $0.98 per diluted share, or 1.0% points on the annualized operating return on beginning diluted book value per common share, respectively. For the nine months ended September 2015, expense related to the earn-out consideration paid to the former shareholders of Presidio Reinsurance Group, Inc. was $25,223, or $0.53 per diluted share, or 0.6% points on the annualized operating return on beginning dividend book value per share. After-tax, operating earnings attributable to PartnerRe common shareholders adjusted to be before the amalgamation related costs and earn-out consideration paid are $546,669, or $11.46 per diluted share, or 12.1% points on the annualized operating return on beginning diluted book value per common share, respectively. |
September 30, | June 30, | March 31, | December 31, | September 30, | December 31, | |||||||||||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | 2013 | |||||||||||||||||||
Reconciliation of GAAP and non-GAAP measures: | ||||||||||||||||||||||||
Total shareholders’ equity | $ | 6,777,349 | $ | 7,082,143 | $ | 7,254,828 | $ | 7,104,411 | $ | 7,066,256 | $ | 6,766,159 | ||||||||||||
Less: | ||||||||||||||||||||||||
Preferred shares, aggregate liquidation value | 853,750 | 853,750 | 853,750 | 853,750 | 853,750 | 853,750 | ||||||||||||||||||
Noncontrolling interests | 2,212 | 2,217 | 57,683 | 55,501 | 52,276 | 56,627 | ||||||||||||||||||
Common shareholders’ equity attributable to PartnerRe | 5,921,387 | 6,226,176 | 6,343,395 | 6,195,160 | 6,160,230 | 5,855,782 | ||||||||||||||||||
Less: | ||||||||||||||||||||||||
Goodwill | 456,380 | 456,380 | 456,380 | 456,380 | 456,380 | 456,380 | ||||||||||||||||||
Intangible assets, net of tax | 93,869 | 98,499 | 103,276 | 105,652 | 109,327 | 120,900 | ||||||||||||||||||
Tangible book value | $ | 5,371,138 | $ | 5,671,297 | $ | 5,783,739 | $ | 5,633,128 | $ | 5,594,523 | $ | 5,278,502 | ||||||||||||
Common shares and common share equivalents outstanding | 49,070,138 | 48,932,758 | 48,849,532 | 49,087,412 | 50,513,695 | 53,596,034 | ||||||||||||||||||
Equals: | ||||||||||||||||||||||||
Diluted tangible book value per common share | $ | 109.46 | $ | 115.90 | $ | 118.40 | $ | 114.76 | $ | 110.75 | $ | 98.49 |
September 30, | June 30, | March 31, | December 31, | September 30, | December 31, | |||||||||||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | 2013 | |||||||||||||||||||
Reconciliation of GAAP and non-GAAP measures: | ||||||||||||||||||||||||
Total shareholders’ equity | $ | 6,777,349 | $ | 7,082,143 | $ | 7,254,828 | $ | 7,104,411 | $ | 7,066,256 | $ | 6,766,159 | ||||||||||||
Less: | ||||||||||||||||||||||||
Preferred shares, aggregate liquidation value | 853,750 | 853,750 | 853,750 | 853,750 | 853,750 | 853,750 | ||||||||||||||||||
Noncontrolling interests | 2,212 | 2,217 | 57,683 | 55,501 | 52,276 | 56,627 | ||||||||||||||||||
Common shareholders’ equity attributable to PartnerRe | 5,921,387 | 6,226,176 | 6,343,395 | 6,195,160 | 6,160,230 | 5,855,782 | ||||||||||||||||||
Less: | ||||||||||||||||||||||||
Goodwill | 456,380 | 456,380 | 456,380 | 456,380 | 456,380 | 456,380 | ||||||||||||||||||
Intangible assets, net of tax | 93,869 | 98,499 | 103,276 | 105,652 | 109,327 | 120,900 | ||||||||||||||||||
Tangible book value | 5,371,138 | 5,671,297 | 5,783,739 | 5,633,128 | 5,594,523 | 5,278,502 | ||||||||||||||||||
Net unrealized gains on fixed income securities and funds held - directly managed, net of tax (NURGL) | 143,208 | 190,602 | 391,377 | 355,028 | 316,706 | 223,995 | ||||||||||||||||||
Book value excluding NURGL | $ | 5,778,179 | $ | 6,035,574 | $ | 5,952,018 | $ | 5,840,132 | $ | 5,843,524 | $ | 5,631,787 | ||||||||||||
Tangible book value excluding NURGL | $ | 5,227,930 | $ | 5,480,695 | $ | 5,392,362 | $ | 5,278,100 | $ | 5,277,817 | $ | 5,054,507 | ||||||||||||
Divided by: | ||||||||||||||||||||||||
Number of common shares and common share equivalents outstanding | 49,070,138 | 48,932,758 | 48,849,532 | 49,087,412 | 50,513,695 | 53,596,034 | ||||||||||||||||||
Equals: | ||||||||||||||||||||||||
Diluted book value per common share excluding NURGL | $ | 117.75 | $ | 123.34 | $ | 121.84 | $ | 118.97 | $ | 115.68 | $ | 105.08 | ||||||||||||
Diluted tangible book value per common share excluding NURGL | $ | 106.54 | $ | 112.00 | $ | 110.39 | $ | 107.52 | $ | 104.48 | $ | 94.31 |
September 30, | June 30, | March 31, | December 31, | September 30, | December 31, | |||||||||||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | 2013 | |||||||||||||||||||
Basic book value per common share | ||||||||||||||||||||||||
Total shareholders’ equity | $ | 6,777,349 | $ | 7,082,143 | $ | 7,254,828 | $ | 7,104,411 | $ | 7,066,256 | $ | 6,766,159 | ||||||||||||
Less: | ||||||||||||||||||||||||
Preferred shares, aggregate liquidation value | 853,750 | 853,750 | 853,750 | 853,750 | 853,750 | 853,750 | ||||||||||||||||||
Noncontrolling interests | 2,212 | 2,217 | 57,683 | 55,501 | 52,276 | 56,627 | ||||||||||||||||||
Common shareholders’ equity attributable to PartnerRe | $ | 5,921,387 | $ | 6,226,176 | $ | 6,343,395 | $ | 6,195,160 | $ | 6,160,230 | $ | 5,855,782 | ||||||||||||
Basic common shares outstanding | 47,901,756 | 47,835,909 | 47,664,648 | 47,836,284 | 49,347,349 | 52,443,434 | ||||||||||||||||||
Basic book value per common share | $ | 123.62 | $ | 130.16 | $ | 133.08 | $ | 129.51 | $ | 124.83 | $ | 111.66 | ||||||||||||
Common shareholders’ equity attributable to PartnerRe | $ | 5,921,387 | $ | 6,226,176 | $ | 6,343,395 | $ | 6,195,160 | $ | 6,160,230 | $ | 5,855,782 | ||||||||||||
Basic common shares outstanding | 47,901,756 | 47,835,909 | 47,664,648 | 47,836,284 | 49,347,349 | 52,443,434 | ||||||||||||||||||
Add: | ||||||||||||||||||||||||
Stock options and other | 1,346,408 | 1,379,754 | 1,734,600 | 1,997,735 | 2,005,535 | 2,382,771 | ||||||||||||||||||
Restricted stock units | 877,628 | 881,929 | 881,806 | 931,283 | 895,359 | 870,054 | ||||||||||||||||||
Less: | ||||||||||||||||||||||||
Stock options and other bought back via treasury stock method | 1,055,653 | 1,164,834 | 1,431,522 | 1,677,890 | 1,734,548 | 2,100,225 | ||||||||||||||||||
Diluted common shares and common share equivalents outstanding | 49,070,139 | 48,932,758 | 48,849,532 | 49,087,412 | 50,513,695 | 53,596,034 | ||||||||||||||||||
Diluted book value per common share | $ | 120.67 | $ | 127.24 | $ | 129.86 | $ | 126.21 | $ | 121.95 | $ | 109.26 |
(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 September 30, 2015 | As at and for the three months ended September 30, 2014 | |||||||||||||||
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 | $ | 6,226 | $ | 127.24 | $ | 6,056 | $ | 118.96 | ||||||||
Technical result | 261 | 5.46 | 275 | 5.43 | ||||||||||||
Other expenses | (101 | ) | (2.11 | ) | (108 | ) | (2.12 | ) | ||||||||
Net investment income | 117 | 2.45 | 118 | 2.33 | ||||||||||||
Amortization of intangible assets | (7 | ) | (0.14 | ) | (7 | ) | (0.14 | ) | ||||||||
Other, net | (11 | ) | (0.24 | ) | (15 | ) | (0.32 | ) | ||||||||
Operating income tax expense | (33 | ) | (0.70 | ) | (22 | ) | (0.43 | ) | ||||||||
Preferred dividends | (14 | ) | (0.30 | ) | (14 | ) | (0.28 | ) | ||||||||
Operating earnings | 212 | 4.42 | 227 | 4.47 | ||||||||||||
Net realized and unrealized investment (losses) gains, net of tax | (122 | ) | (2.54 | ) | (35 | ) | (0.70 | ) | ||||||||
Net foreign exchange losses, net of tax | (16 | ) | (0.33 | ) | (12 | ) | (0.23 | ) | ||||||||
Interest in earnings of equity method investments, net of tax | (2 | ) | (0.05 | ) | 2 | 0.06 | ||||||||||
Amalgamation termination fee and reimbursement of expenses | (315 | ) | (6.58 | ) | — | — | ||||||||||
Net (loss) income attributable to PartnerRe common shareholders | (243 | ) | (5.08 | ) | 182 | 3.60 | ||||||||||
Common share dividends | (34 | ) | (0.70 | ) | (33 | ) | (0.67 | ) | ||||||||
Change in currency translation adjustment | (40 | ) | (0.83 | ) | 1 | 0.03 | ||||||||||
Issuance (repurchase) of common shares, net | 11 | 0.05 | (47 | ) | 0.18 | |||||||||||
Change in other accumulated comprehensive income or loss, net of tax | 1 | 0.02 | 1 | 0.02 | ||||||||||||
Impact of change in number of common and common share equivalents outstanding | n/a | (0.03 | ) | n/a | (0.17 | ) | ||||||||||
Common shareholders’ equity attributable to PartnerRe / diluted book value per common share at end of period | $ | 5,921 | $ | 120.67 | $ | 6,160 | $ | 121.95 | ||||||||
Goodwill | (456 | ) | (9.30 | ) | (456 | ) | (9.04 | ) | ||||||||
Intangible assets, net of tax | (94 | ) | (1.91 | ) | (109 | ) | (2.16 | ) | ||||||||
Tangible common shareholders’ equity attributable to PartnerRe / diluted tangible book value per common share at end of period | $ | 5,371 | 109.46 | $ | 5,595 | $ | 110.75 |
As at and for the nine months ended September 30, 2015 | As at and for the nine months ended September 30, 2014 | |||||||||||||||
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 | $ | 6,195 | $ | 126.21 | $ | 5,856 | $ | 109.26 | ||||||||
Technical result | 679 | 14.22 | 681 | 13.20 | ||||||||||||
Other expenses | (355 | ) | (7.45 | ) | (327 | ) | (6.34 | ) | ||||||||
Net investment income | 342 | 7.16 | 365 | 7.08 | ||||||||||||
Amortization of intangible assets | (20 | ) | (0.43 | ) | (21 | ) | (0.41 | ) | ||||||||
Other, net | (35 | ) | (0.72 | ) | (34 | ) | (0.66 | ) | ||||||||
Operating income tax expense | (93 | ) | (1.94 | ) | (84 | ) | (1.62 | ) | ||||||||
Preferred dividends | (43 | ) | (0.89 | ) | (43 | ) | (0.83 | ) | ||||||||
Operating earnings | 475 | 9.95 | 537 | 10.42 | ||||||||||||
Net realized and unrealized investment (losses) gains, net of tax | (239 | ) | (5.00 | ) | 204 | 3.95 | ||||||||||
Net foreign exchange losses, net of tax | (37 | ) | (0.77 | ) | (16 | ) | (0.31 | ) | ||||||||
Interest in earnings of equity method investments, net of tax | 1 | 0.02 | 11 | 0.20 | ||||||||||||
Amalgamation termination fee and reimbursement of expenses | (315 | ) | (6.60 | ) | — | — | ||||||||||
Net (loss) income attributable to PartnerRe common shareholders | (115 | ) | (2.40 | ) | 736 | 14.26 | ||||||||||
Common share dividends | (100 | ) | (2.10 | ) | (102 | ) | (2.01 | ) | ||||||||
Change in currency translation adjustment | (34 | ) | (0.71 | ) | 3 | 0.06 | ||||||||||
Repurchase of common shares, net | (24 | ) | (0.67 | ) | (333 | ) | 0.29 | |||||||||
Change in other accumulated comprehensive income or loss, net of tax | (1 | ) | (0.02 | ) | — | 0.01 | ||||||||||
Impact of change in number of common and common share equivalents outstanding | n/a | 0.36 | n/a | 0.08 | ||||||||||||
Common shareholders’ equity attributable to PartnerRe / diluted book value per common share at end of period | $ | 5,921 | $ | 120.67 | $ | 6,160 | $ | 121.95 | ||||||||
Goodwill | (456 | ) | (9.30 | ) | (456 | ) | (9.04 | ) | ||||||||
Intangible assets, net of tax | (94 | ) | (1.91 | ) | (109 | ) | (2.16 | ) | ||||||||
Tangible common shareholders’ equity attributable to PartnerRe / diluted tangible book value per common share at end of period | $ | 5,371 | 109.46 | $ | 5,595 | $ | 110.75 |
As at and for the year ended December 31, 2014 | As at and for the year ended December 31, 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 | 932 | 18.21 | 962 | 17.06 | ||||||||||||
Other expenses | (450 | ) | (8.79 | ) | (500 | ) | (8.87 | ) | ||||||||
Net investment income | 480 | 9.37 | 484 | 8.58 | ||||||||||||
Amortization of intangible assets | (27 | ) | (0.53 | ) | (27 | ) | (0.48 | ) | ||||||||
Other, net | (40 | ) | (0.77 | ) | (47 | ) | (0.85 | ) | ||||||||
Operating income tax expense | (83 | ) | (1.62 | ) | (92 | ) | (1.63 | ) | ||||||||
Preferred dividends | (57 | ) | (1.11 | ) | (58 | ) | (1.02 | ) | ||||||||
Operating earnings | 755 | 14.76 | 722 | 12.79 | ||||||||||||
Net realized and unrealized investment gains (losses), net of tax | 286 | 5.60 | (127 | ) | (2.25 | ) | ||||||||||
Net foreign exchange (losses) gains, net of tax | (46 | ) | (0.90 | ) | 2 | 0.04 | ||||||||||
Loss on redemption of preferred shares | — | — | (9 | ) | (0.16 | ) | ||||||||||
Interest in earnings of equity method investments, net of tax | 9 | 0.17 | 9 | 0.16 | ||||||||||||
Withholding tax on inter-company dividend, net of tax | (6 | ) | (0.12 | ) | — | — | ||||||||||
Net income attributable to PartnerRe common shareholders | 998 | 19.51 | 597 | 10.58 | ||||||||||||
Common share dividends | (134 | ) | (2.68 | ) | (142 | ) | (2.56 | ) | ||||||||
Change in currency translation adjustment | (9 | ) | (0.17 | ) | (32 | ) | (0.56 | ) | ||||||||
Repurchase of common shares, net | (503 | ) | 0.55 | (616 | ) | 0.84 | ||||||||||
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 | (13 | ) | (0.25 | ) | 9 | 0.16 | ||||||||||
Impact of change in number of common and common share equivalents outstanding | n/a | (0.01 | ) | n/a | (0.05 | ) | ||||||||||
Common shareholders’ equity attributable to PartnerRe / diluted book value per common share at end of period | $ | 6,195 | $ | 126.21 | $ | 5,856 | $ | 109.26 | ||||||||
Goodwill | (456 | ) | (9.30 | ) | (456 | ) | (8.51 | ) | ||||||||
Intangible assets, net of tax | (106 | ) | (2.15 | ) | (121 | ) | (2.26 | ) | ||||||||
Tangible common shareholders’ equity attributable to PartnerRe / diluted tangible book value per common share at end of period | $ | 5,633 | $ | 114.76 | $ | 5,279 | $ | 98.49 |
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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