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 May 2, 2016 | |
99.2 | Financial Supplement |
PartnerRe Ltd. | ||||||||
(Registrant) | ||||||||
Date: | May 2, 2016 | By: | /s/ Marc Wetherhill | |||||
Name: Marc Wetherhill | ||||||||
Title: Chief Legal Counsel |
Exhibit No. | Description | ||
99.1 | Press Release of PartnerRe Ltd., dated May 2, 2016 | ||
99.2 | Financial Supplement |
• | First Quarter Operating Earnings of $44.2 million ($104.2 million excluding transaction costs), resulting in an Annualized Operating ROE of 2.9% (6.9% excluding transaction costs) |
• | Net Income of $201.4 million ($261.4 million excluding transaction costs), resulting in an Annualized Net Income ROE of 13.3% (17.3% excluding transaction costs) |
• | Total Capital of $7.7 billion, Book Value of $6.1 billion, and Tangible Book Value of $5.5 billion |
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 |
• | Net premiums written of $1.5 billion were down 9%. On a constant foreign exchange basis, net premiums written were down 5% with decreases recorded in all Non-life sub-segments, with the exception of the North America sub-segment, and the Life and Health segment. |
• | Net premiums earned of $1.1 billion were down 8%. On a constant foreign exchange basis, net premiums earned were down 4% due to the same factors described above for net premiums written. |
• | The Non-life combined ratio was 94.3%. The combined ratio benefited from favorable prior year development of 21.0 points (or $183 million). All Non-life sub-segments experienced net favorable development from prior accident years during the first quarter of 2016. |
• | For the first quarter of 2016, other expenses of $153 million include $66 million, pre-tax, of costs related to the closing of the Exor transaction (including the impact of accelerating all remaining share based compensation expense as a result of all awards vesting upon closing). Other expenses of $125 million for the same period in 2015 included $31 million, pre-tax, of costs related to the terminated amalgamation with Axis. |
• | Net investment income of $103 million was down 2%. On a constant foreign exchange basis, net investment income was up 1%. |
• | Pre-tax net realized and unrealized investment gains were $167 million, primarily reflecting decreases in U.S. and European risk-free interest rates. |
• | The effective tax rate on operating earnings and non-operating earnings was 23.6% and 7.6%, respectively. |
• | Total investments, cash and funds held – directly managed were $16.2 billion at March 31, 2016, down 2% compared to December 31, 2015, primarily due to cash outflows to fund the special dividend (as defined below) and the settlement of certain share based awards upon the closing of the Exor transaction. |
• | Net Non-life loss and loss expense reserves were $9.1 billion at March 31, 2016, up 3% compared to December 31, 2015, primarily reflecting lower losses paid and the impact of foreign exchange. |
• | Net policy benefits for life and annuity contracts were $2.0 billion at March 31, 2016, up 2% compared to December 31, 2015, primarily reflecting lower losses paid and the impact of foreign exchange. |
• | Total capital was $7.7 billion at March 31, 2016, which was flat compared to December 31, 2015, with net income for the quarter being offset by common and preferred share dividend payments (including the special dividend (as defined below) paid on the closing of the Exor transaction). |
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 |
• | Common shareholders' equity attributable to PartnerRe (or book value) and tangible book value were $6.1 billion and $5.5 billion, respectively, at March 31, 2016, which were flat compared to December 31, 2015 due to the same factors as for total capital. |
• | The Non-life segment’s net premiums written were down 9%, or 5% on a constant foreign exchange basis. The decrease was driven by the Global (Non-U.S.) P&C and Catastrophe sub-segments and, to a lesser extent, the Global Specialty sub-segment. These decreases were partially offset by an increase in the net premiums written reported by the North America sub-segment. |
• | The North America sub-segment’s net premiums written were up 2%, or 3% on a constant foreign exchange basis. The increase was primarily driven by the timing of renewals in the agriculture and casualty lines of business, and new business in the casualty and structured property lines of business. These increases were partially offset by cancellations, downward prior year premium adjustments and renewal changes in the casualty, property and agriculture lines of business, and the impact of increased retrocessional coverage in the mortgage line of business. This sub-segment reported a technical ratio of 86.9%, which included 22.9 points (or $81 million) of net favorable prior year loss development. |
• | The Global (Non-U.S.) P&C sub-segment’s net premiums written were down 19%, or 11% on a constant foreign exchange basis. The decrease was primarily driven by downward prior year premium adjustments and cancellations, and reduced participations in the motor line of business. This sub-segment reported a technical ratio of 113.2%, which included 15.5 points (or $23 million) of net favorable prior year loss development. |
• | The Global Specialty sub-segment’s net premiums written were down 8%, or 3% on a constant foreign exchange basis. The decrease was driven by cancellations, reduced participations, and higher downward prior year premium adjustments across multiple lines of business. These decreases were partially offset by new business written across all lines of business and the positive impact of a timing difference related to the renewal of a significant specialty casualty treaty. This sub-segment reported a technical ratio of 85.0%, which included 21.4 points (or $69 million) of net favorable prior year loss development. |
• | The Catastrophe sub-segment’s net premiums written were down 20%, or 16% on a constant foreign exchange basis. The decrease was primarily driven by increased retrocessional coverage, timing of renewals, cancellations and non-renewals. These decreases were partially offset by new business. This sub-segment reported a technical ratio of 10.3%, which included 22.0 points (or $10 million) of net favorable prior year loss development. |
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 |
• | The Life and Health segment’s net premiums written were down 12%, or 7% on a constant foreign exchange basis. The decrease was driven by downward prior year premium adjustments and non-renewals in the mortality line of business and increased client retentions in the Health line of business. |
• | The Life and Health segment’s allocated underwriting result, which includes allocated investment income and other expenses, was $24 million compared to $25 million in the same period of 2015, and includes $15 million of favorable prior year loss development compared to $14 million in the same period of 2015. |
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 March 31, 2016 | For the three months ended March 31, 2015 | ||||||
Revenues | |||||||
Gross premiums written | $ | 1,629,009 | $ | 1,748,933 | |||
Net premiums written | $ | 1,500,718 | $ | 1,653,215 | |||
Increase in unearned premiums | (359,002 | ) | (418,493 | ) | |||
Net premiums earned | 1,141,716 | 1,234,722 | |||||
Net investment income | 102,987 | 104,631 | |||||
Net realized and unrealized investment gains | 167,193 | 115,645 | |||||
Other income | 4,840 | 4,292 | |||||
Total revenues | 1,416,736 | 1,459,290 | |||||
Expenses | |||||||
Losses and loss expenses and life policy benefits | 714,268 | 721,281 | |||||
Acquisition costs | 282,974 | 275,791 | |||||
Other expenses (2) | 152,674 | 124,750 | |||||
Interest expense | 12,259 | 12,245 | |||||
Amortization of intangible assets | 6,588 | 6,768 | |||||
Net foreign exchange gains | (2,074 | ) | (13,147 | ) | |||
Total expenses | 1,166,689 | 1,127,688 | |||||
Income before taxes and interest in losses of equity method investments | 250,047 | 331,602 | |||||
Income tax expense | 30,954 | 79,665 | |||||
Interest in losses of equity method investments | (3,467 | ) | (3,838 | ) | |||
Net income | 215,626 | 248,099 | |||||
Net income attributable to noncontrolling interests | — | (2,182 | ) | ||||
Net income attributable to PartnerRe | 215,626 | 245,917 | |||||
Preferred dividends | 14,184 | 14,184 | |||||
Net income attributable to PartnerRe common shareholders | $ | 201,442 | $ | 231,733 | |||
Operating earnings attributable to PartnerRe common shareholders (2) | $ | 44,238 | $ | 150,536 | |||
Comprehensive income attributable to PartnerRe | $ | 235,717 | $ | 242,760 | |||
(1) On March 18, 2016 EXOR acquired 100% ownership of the Company; as such, per share data is no longer meaningful and has been excluded. | |||||||
(2) Other expenses and operating earnings for the three months ended March 31, 2016 include $35 million and $31 million of transaction costs and accelerated stock based compensation expense, respectively, related to the closing of the Exor transaction, pre-tax. Other expenses and operating earnings for the three months ended March 31, 2015 include $31 million of costs related to the proposed amalgamation with Axis, pre-tax. |
March 31, | December 31, | ||||||
2016 | 2015 | ||||||
Assets | |||||||
Investments: | |||||||
Fixed maturities, at fair value | $ | 13,020,014 | $ | 13,448,262 | |||
Short-term investments, at fair value | 33,555 | 46,688 | |||||
Equities, at fair value | 324,427 | 443,861 | |||||
Other invested assets | 458,709 | 399,204 | |||||
Total investments | 13,836,705 | 14,338,015 | |||||
Funds held – directly managed | 579,571 | 539,743 | |||||
Cash and cash equivalents | 1,749,851 | 1,577,097 | |||||
Accrued investment income | 134,735 | 141,672 | |||||
Reinsurance balances receivable | 2,964,950 | 2,428,020 | |||||
Reinsurance recoverable on paid and unpaid losses | 300,731 | 282,916 | |||||
Funds held by reinsured companies | 685,564 | 657,815 | |||||
Deferred acquisition costs | 691,117 | 629,372 | |||||
Deposit assets | 82,018 | 88,152 | |||||
Net tax assets | 82,405 | 102,596 | |||||
Goodwill | 456,380 | 456,380 | |||||
Intangible assets | 126,423 | 133,011 | |||||
Other assets | 265,013 | 31,254 | |||||
Total assets | $ | 21,955,463 | $ | 21,406,043 | |||
Liabilities | |||||||
Unpaid losses and loss expenses | $ | 9,331,087 | $ | 9,064,711 | |||
Policy benefits for life and annuity contracts | 2,089,055 | 2,051,935 | |||||
Unearned premiums | 2,086,332 | 1,644,757 | |||||
Other reinsurance balances payable | 293,342 | 246,089 | |||||
Deposit liabilities | 33,506 | 44,420 | |||||
Net tax liabilities | 197,973 | 218,652 | |||||
Accounts payable, accrued expenses and other | 192,994 | 411,539 | |||||
Debt related to senior notes | 750,000 | 750,000 | |||||
Debt related to capital efficient notes | 70,989 | 70,989 | |||||
Total liabilities | 15,045,278 | 14,503,092 | |||||
Shareholders’ Equity | |||||||
Common shares (par value $1.00; issued: 2016, 1 share and 2015, 87,237,220 shares) | — | 87,237 | |||||
Preferred shares (par value $1.00; issued and outstanding: 2016 and 2015, 34,150,000 shares; aggregate liquidation value: 2016 and 2015, $853,750) | 34,150 | 34,150 | |||||
Additional paid-in capital | 2,537,359 | 3,982,147 | |||||
Accumulated other comprehensive loss | (63,192 | ) | (83,283 | ) | |||
Retained earnings | 4,401,868 | 6,146,802 | |||||
Common shares held in treasury, at cost (2016, nil shares; 2015, 39,303,068 shares) | — | (3,266,552 | ) | ||||
Total shareholders’ equity attributable to PartnerRe | 6,910,185 | 6,900,501 | |||||
Noncontrolling interests | — | 2,450 | |||||
Total shareholders’ equity | 6,910,185 | 6,902,951 | |||||
Total liabilities and shareholders’ equity | $ | 21,955,463 | $ | 21,406,043 |
(1) | On March 18, 2016 EXOR acquired 100% ownership of the Company; as such, per share data is no longer meaningful and has been excluded. |
For the three months ended March 31, 2016 | |||||||||||||||||||||||||||||||
North America | Global (Non-U.S.) P&C | Global Specialty | Catastrophe | Total Non-life segment | Life and Health segment | Corporate and Other | Total | ||||||||||||||||||||||||
Gross premiums written | $ | 494 | $ | 274 | $ | 398 | $ | 170 | $ | 1,336 | $ | 293 | $ | — | $ | 1,629 | |||||||||||||||
Net premiums written | $ | 481 | $ | 269 | $ | 333 | $ | 141 | $ | 1,224 | $ | 277 | $ | — | $ | 1,501 | |||||||||||||||
Increase in unearned premiums | (129 | ) | (119 | ) | (11 | ) | (93 | ) | (352 | ) | (7 | ) | — | (359 | ) | ||||||||||||||||
Net premiums earned | $ | 352 | $ | 150 | $ | 322 | $ | 48 | $ | 872 | $ | 270 | $ | — | $ | 1,142 | |||||||||||||||
Losses and loss expenses and life policy benefits | (199 | ) | (123 | ) | (184 | ) | (3 | ) | (509 | ) | (205 | ) | — | (714 | ) | ||||||||||||||||
Acquisition costs | (107 | ) | (47 | ) | (90 | ) | (1 | ) | (245 | ) | (38 | ) | — | (283 | ) | ||||||||||||||||
Technical result | $ | 46 | $ | (20 | ) | $ | 48 | $ | 44 | $ | 118 | $ | 27 | $ | — | $ | 145 | ||||||||||||||
Other income | 2 | 2 | 1 | 5 | |||||||||||||||||||||||||||
Other expenses | (68 | ) | (18 | ) | (67 | ) | (153 | ) | |||||||||||||||||||||||
Underwriting result | $ | 52 | $ | 11 | n/a | $ | (3 | ) | |||||||||||||||||||||||
Net investment income | 13 | 90 | 103 | ||||||||||||||||||||||||||||
Allocated underwriting result (1) | $ | 24 | n/a | n/a | |||||||||||||||||||||||||||
Net realized and unrealized investment gains | 167 | 167 | |||||||||||||||||||||||||||||
Interest expense | (12 | ) | (12 | ) | |||||||||||||||||||||||||||
Amortization of intangible assets | (7 | ) | (7 | ) | |||||||||||||||||||||||||||
Net foreign exchange gains | 2 | 2 | |||||||||||||||||||||||||||||
Income tax expense | (31 | ) | (31 | ) | |||||||||||||||||||||||||||
Interest in losses of equity method investments | (3 | ) | (3 | ) | |||||||||||||||||||||||||||
Net income | n/a | $ | 216 | ||||||||||||||||||||||||||||
Loss ratio (2) | 56.5 | % | 82.1 | % | 57.2 | % | 7.2 | % | 58.5 | % | |||||||||||||||||||||
Acquisition ratio (3) | 30.4 | 31.1 | 27.8 | 3.1 | 28.0 | ||||||||||||||||||||||||||
Technical ratio (4) | 86.9 | % | 113.2 | % | 85.0 | % | 10.3 | % | 86.5 | % | |||||||||||||||||||||
Other expense ratio (5) | 7.8 | ||||||||||||||||||||||||||||||
Combined ratio (6) | 94.3 | % | |||||||||||||||||||||||||||||
For the three months ended March 31, 2015 | |||||||||||||||||||||||||||||||
North America | Global (Non-U.S.) P&C | Global Specialty | Catastrophe | Total Non-life segment | Life and Health segment | Corporate and Other | Total | ||||||||||||||||||||||||
Gross premiums written | $ | 473 | $ | 334 | $ | 427 | $ | 191 | $ | 1,425 | $ | 324 | $ | — | $ | 1,749 | |||||||||||||||
Net premiums written | $ | 471 | $ | 331 | $ | 362 | $ | 176 | $ | 1,340 | $ | 313 | $ | — | $ | 1,653 | |||||||||||||||
(Increase) decrease in unearned premiums | (132 | ) | (157 | ) | 3 | (118 | ) | (404 | ) | (14 | ) | — | (418 | ) | |||||||||||||||||
Net premiums earned | $ | 339 | $ | 174 | $ | 365 | $ | 58 | $ | 936 | $ | 299 | $ | — | $ | 1,235 | |||||||||||||||
Losses and loss expenses and life policy benefits | (172 | ) | (119 | ) | (170 | ) | (20 | ) | (481 | ) | (240 | ) | — | (721 | ) | ||||||||||||||||
Acquisition costs | (93 | ) | (52 | ) | (93 | ) | (4 | ) | (242 | ) | (34 | ) | — | (276 | ) | ||||||||||||||||
Technical result | $ | 74 | $ | 3 | $ | 102 | $ | 34 | $ | 213 | $ | 25 | $ | — | $ | 238 | |||||||||||||||
Other income | — | 1 | 3 | 4 | |||||||||||||||||||||||||||
Other expenses | (52 | ) | (15 | ) | (58 | ) | (125 | ) | |||||||||||||||||||||||
Underwriting result | $ | 161 | $ | 11 | n/a | $ | 117 | ||||||||||||||||||||||||
Net investment income | 14 | 91 | 105 | ||||||||||||||||||||||||||||
Allocated underwriting result (1) | $ | 25 | n/a | n/a | |||||||||||||||||||||||||||
Net realized and unrealized investment gains | 116 | 116 | |||||||||||||||||||||||||||||
Interest expense | (12 | ) | (12 | ) | |||||||||||||||||||||||||||
Amortization of intangible assets | (7 | ) | (7 | ) | |||||||||||||||||||||||||||
Net foreign exchange gains | 13 | 13 | |||||||||||||||||||||||||||||
Income tax expense | (80 | ) | (80 | ) | |||||||||||||||||||||||||||
Interest in losses of equity method investments | (4 | ) | (4 | ) | |||||||||||||||||||||||||||
Net income | n/a | $ | 248 | ||||||||||||||||||||||||||||
Loss ratio (2) | 50.7 | % | 68.4 | % | 46.7 | % | 33.7 | % | 51.4 | % | |||||||||||||||||||||
Acquisition ratio (3) | 27.5 | 30.1 | 25.4 | 7.0 | 25.9 | ||||||||||||||||||||||||||
Technical ratio (4) | 78.2 | % | 98.5 | % | 72.1 | % | 40.7 | % | 77.3 | % | |||||||||||||||||||||
Other expense ratio (5) | 5.5 | ||||||||||||||||||||||||||||||
Combined ratio (6) | 82.8 | % |
(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. |
Exhibit 99.2 | ||
Page | ||
Regulation G | ||
Life Value in Force | ||
Consolidated Financial Statements | ||
Consolidated Statements of Operations | ||
Condensed Consolidated Balance Sheets | 2 | |
Condensed Consolidated Statements of Cash Flows | ||
Consolidated Statements of Comprehensive Income (Loss) | ||
Segment Information | ||
For the three months ended March 31, 2016 and 2015 | ||
Non-life segment | ||
North America sub-segment | ||
Global (Non-U.S.) P&C sub-segment | ||
Global Specialty sub-segment | ||
Catastrophe sub-segment | ||
Life and Health segment | ||
Corporate and Other | ||
Distribution of Premiums | ||
Distribution of Premiums by line of business, geography and production source | ||
Distribution of Premiums by reinsurance type for the Non-life sub-segment | ||
Investments | ||
Investment Portfolio | ||
Distribution of Corporate Bonds | ||
Distribution of Equities | ||
Distribution of Mortgage/Asset-Backed Securities | ||
Funds Held - Directly Managed Portfolio | ||
Composition of Net Investment Income and Net Realized and Unrealized Investment Gains (Losses) | ||
Loss Reserves | ||
Analysis of Unpaid Losses and Loss Expenses | ||
Analysis of Policy Benefits for Life and Annuity Contracts | ||
Reserve Development | ||
Natural Catastrophe Probable Maximum Losses (PMLs) | ||
Reconciliation of GAAP and non-GAAP measures |
PartnerRe Ltd. |
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 | For the year ended | |||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | ||||||||||||||||||||||
2016 | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Gross premiums written | $ | 1,629,009 | $ | 1,098,618 | $ | 1,267,961 | $ | 1,432,012 | $ | 1,748,933 | $ | 5,547,525 | $ | 5,932,003 | ||||||||||||||
Net premiums written | $ | 1,500,718 | $ | 1,063,636 | $ | 1,190,393 | $ | 1,322,304 | $ | 1,653,215 | $ | 5,229,548 | $ | 5,719,884 | ||||||||||||||
(Increase) decrease in unearned premiums | (359,002 | ) | 230,865 | 221,737 | 5,522 | (418,493 | ) | 39,630 | (110,689 | ) | ||||||||||||||||||
Net premiums earned | 1,141,716 | 1,294,501 | 1,412,130 | 1,327,826 | 1,234,722 | 5,269,178 | 5,609,195 | |||||||||||||||||||||
Net investment income | 102,987 | 107,908 | 117,054 | 120,192 | 104,631 | 449,784 | 479,696 | |||||||||||||||||||||
Net realized and unrealized investment gains (losses) | 167,193 | (24,373 | ) | (133,017 | ) | (255,734 | ) | 115,645 | (297,479 | ) | 371,796 | |||||||||||||||||
Other income | 4,840 | 1,560 | 3,056 | 236 | 4,292 | 9,144 | 16,190 | |||||||||||||||||||||
Total revenues | 1,416,736 | 1,379,596 | 1,399,223 | 1,192,520 | 1,459,290 | 5,430,627 | 6,476,877 | |||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||
Losses and loss expenses and life policy benefits | 714,268 | 767,026 | 804,196 | 864,917 | 721,281 | 3,157,420 | 3,462,770 | |||||||||||||||||||||
Acquisition costs | 282,974 | 311,228 | 346,520 | 283,463 | 275,791 | 1,217,003 | 1,213,822 | |||||||||||||||||||||
Other expenses (1) (2) (3) | 152,674 | 120,389 | 415,818 | 129,766 | 124,750 | 790,723 | 449,688 | |||||||||||||||||||||
Interest expense | 12,259 | 12,246 | 12,249 | 12,248 | 12,245 | 48,988 | 48,963 | |||||||||||||||||||||
Amortization of intangible assets | 6,588 | 6,290 | 6,768 | 6,767 | 6,768 | 26,593 | 27,486 | |||||||||||||||||||||
Net foreign exchange (gains) losses | (2,074 | ) | (6,195 | ) | 22,413 | 6,391 | (13,147 | ) | 9,461 | (18,201 | ) | |||||||||||||||||
Total expenses | 1,166,689 | 1,210,984 | 1,607,964 | 1,303,552 | 1,127,688 | 5,250,188 | 5,184,528 | |||||||||||||||||||||
Income (loss) before taxes and interest in (losses) earnings of equity method investments | 250,047 | 168,612 | (208,741 | ) | (111,032 | ) | 331,602 | 180,439 | 1,292,349 | |||||||||||||||||||
Income tax expense (benefit) | 30,954 | (3,326 | ) | 17,170 | (13,844 | ) | 79,665 | 79,664 | 239,506 | |||||||||||||||||||
Interest in (losses) earnings of equity method investments | (3,467 | ) | 4,811 | (3,231 | ) | 8,633 | (3,838 | ) | 6,375 | 15,270 | ||||||||||||||||||
Net income (loss) | 215,626 | 176,749 | (229,142 | ) | (88,555 | ) | 248,099 | 107,150 | 1,068,113 | |||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | — | (238 | ) | 5 | (354 | ) | (2,182 | ) | (2,769 | ) | (13,139 | ) | ||||||||||||||||
Net income (loss) attributable to PartnerRe | 215,626 | 176,511 | (229,137 | ) | (88,909 | ) | 245,917 | 104,381 | 1,054,974 | |||||||||||||||||||
Preferred dividends | 14,184 | 14,184 | 14,184 | 14,184 | 14,184 | 56,735 | 56,735 | |||||||||||||||||||||
Net income (loss) attributable to PartnerRe common shareholders | $ | 201,442 | $ | 162,327 | $ | (243,321 | ) | $ | (103,093 | ) | $ | 231,733 | $ | 47,646 | $ | 998,239 | ||||||||||||
Operating earnings attributable to PartnerRe common shareholders | $ | 44,238 | $ | 183,858 | $ | 211,583 | $ | 112,494 | $ | 150,536 | $ | 658,472 | $ | 755,418 | ||||||||||||||
Comprehensive income (loss) attributable to PartnerRe | $ | 235,717 | $ | 162,055 | $ | (267,720 | ) | $ | (81,913 | ) | $ | 242,760 | $ | 55,181 | $ | 1,033,129 | ||||||||||||
(1) Includes costs related to the Axis and Exor transactions and the restructuring of the Company’s business support operations and Global Non-life operations. See page 13 for the expense data. | ||||||||||||||||||||||||||||
(2) Withholding taxes on certain inter-company dividends are included in other expenses. | ||||||||||||||||||||||||||||
(3) Other expenses for the three months ended June 30,2015 and the year ended December 31, 2015 include $25 million, pretax, respectively, related to the negotiated earn-out consideration paid to the former shareholders of Presidio Reinsurance Group, Inc. |
March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||||||||||||||||||
2016 | 2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||
Total investments | $ | 13,836,705 | $ | 14,338,015 | $ | 14,475,450 | $ | 14,715,834 | $ | 15,038,946 | $ | 15,299,764 | |||||||||||||||||||||||||
Funds held - directly managed | 579,571 | 539,743 | 595,677 | 594,870 | 592,609 | 608,853 | |||||||||||||||||||||||||||||||
Cash and cash equivalents | 1,749,851 | 1,577,097 | 1,256,304 | 1,492,997 | 1,413,799 | 1,313,468 | |||||||||||||||||||||||||||||||
Accrued investment income | 134,735 | 141,672 | 142,892 | 139,772 | 150,255 | 158,737 | |||||||||||||||||||||||||||||||
Reinsurance balances receivable | 2,964,950 | 2,428,020 | 3,079,002 | 3,055,308 | 2,899,821 | 2,454,850 | |||||||||||||||||||||||||||||||
Reinsurance recoverable on paid and unpaid losses | 300,731 | 282,916 | 329,834 | 342,074 | 290,018 | 246,158 | |||||||||||||||||||||||||||||||
Funds held by reinsured companies | 685,564 | 657,815 | 671,572 | 688,358 | 659,058 | 765,905 | |||||||||||||||||||||||||||||||
Deferred acquisition costs | 691,117 | 629,372 | 684,380 | 733,184 | 706,779 | 661,186 | |||||||||||||||||||||||||||||||
Goodwill | 456,380 | 456,380 | 456,380 | 456,380 | 456,380 | 456,380 | |||||||||||||||||||||||||||||||
Intangible assets | 126,423 | 133,011 | 139,301 | 146,069 | 152,836 | 159,604 | |||||||||||||||||||||||||||||||
Other assets | 429,436 | 222,002 | 194,436 | 166,977 | 128,094 | 145,452 | |||||||||||||||||||||||||||||||
Total assets | $ | 21,955,463 | $ | 21,406,043 | $ | 22,025,228 | $ | 22,531,823 | $ | 22,488,595 | $ | 22,270,357 | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||
Unpaid losses and loss expenses | $ | 9,331,087 | $ | 9,064,711 | $ | 9,522,225 | $ | 9,549,398 | $ | 9,401,397 | $ | 9,745,806 | |||||||||||||||||||||||||
Policy benefits for life and annuity contracts | 2,089,055 | 2,051,935 | 2,123,028 | 2,087,369 | 1,996,519 | 2,050,107 | |||||||||||||||||||||||||||||||
Unearned premiums | 2,086,332 | 1,644,757 | 1,934,360 | 2,207,674 | 2,159,446 | 1,750,607 | |||||||||||||||||||||||||||||||
Other reinsurance balances payable | 293,342 | 246,089 | 288,402 | 234,175 | 188,941 | 182,395 | |||||||||||||||||||||||||||||||
Debt obligations | 820,989 | 820,989 | 820,989 | 820,989 | 820,989 | 820,989 | |||||||||||||||||||||||||||||||
Other liabilities | 424,473 | 674,611 | 558,875 | 550,075 | 666,475 | 616,042 | |||||||||||||||||||||||||||||||
Total liabilities | 15,045,278 | 14,503,092 | 15,247,879 | 15,449,680 | 15,233,767 | 15,165,946 | |||||||||||||||||||||||||||||||
Total shareholders' equity attributable to PartnerRe | 6,910,185 | 6,900,501 | 6,775,137 | 7,079,926 | 7,197,145 | 7,048,910 | |||||||||||||||||||||||||||||||
Noncontrolling interests | — | 2,450 | 2,212 | 2,217 | 57,683 | 55,501 | |||||||||||||||||||||||||||||||
Total shareholders' equity | 6,910,185 | 6,902,951 | 6,777,349 | 7,082,143 | 7,254,828 | 7,104,411 | |||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 21,955,463 | $ | 21,406,043 | $ | 22,025,228 | $ | 22,531,823 | $ | 22,488,595 | $ | 22,270,357 | |||||||||||||||||||||||||
Capital Structure: | |||||||||||||||||||||||||||||||||||||
Senior notes (1) | $ | 750,000 | 10 | % | $ | 750,000 | 10 | % | $ | 750,000 | 10 | % | $ | 750,000 | 9 | % | $ | 750,000 | 9 | % | $ | 750,000 | 9 | % | |||||||||||||
Capital efficient notes (2) | 63,384 | 1 | 63,384 | 1 | 63,384 | 1 | 63,384 | 1 | 63,384 | 1 | 63,384 | 1 | |||||||||||||||||||||||||
Preferred shares, aggregate liquidation value | 853,750 | 11 | 853,750 | 11 | 853,750 | 11 | 853,750 | 11 | 853,750 | 11 | 853,750 | 11 | |||||||||||||||||||||||||
Common shareholders' equity attributable to PartnerRe | 6,056,435 | 78 | 6,046,751 | 78 | 5,921,387 | 78 | 6,226,176 | 79 | 6,343,395 | 79 | 6,195,160 | 79 | |||||||||||||||||||||||||
Total Capital | $ | 7,723,569 | 100 | % | $ | 7,713,885 | 100 | % | $ | 7,588,521 | 100 | % | $ | 7,893,310 | 100 | % | $ | 8,010,529 | 100 | % | $ | 7,862,294 | 100 | % |
(1) | PartnerRe Finance A LLC and PartnerRe Finance B LLC, the issuers of the senior notes, do not meet U.S. GAAP consolidation requirements. Accordingly, the Company shows the related intercompany debt of $250.0 million and $500.0 million, respectively, on its Condensed Consolidated Balance Sheets. |
(2) | PartnerRe Finance II, the issuer of the capital efficient notes, does not meet U.S. GAAP consolidation requirements. Accordingly, the Company shows the related intercompany debt of $71.0 million on its Condensed Consolidated Balance Sheets. |
For the three months ended | For the year ended | ||||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | |||||||||||||||||||||||
2016 | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | |||||||||||||||||||||||
Net cash provided by (used in) operating activities: | |||||||||||||||||||||||||||||
Underwriting operations | $ | (5 | ) | $ | 114 | $ | 77 | $ | 30 | $ | 44 | $ | 265 | $ | 497 | ||||||||||||||
Investment income | 132 | 131 | 132 | 154 | 137 | 554 | 606 | ||||||||||||||||||||||
Taxes and foreign exchange and other (1) | (35 | ) | (34 | ) | (358 | ) | (66 | ) | (42 | ) | (500 | ) | (250 | ) | |||||||||||||||
Net cash provided by (used in) operating activities | $ | 92 | $ | 211 | $ | (149 | ) | $ | 118 | $ | 139 | $ | 319 | $ | 853 | ||||||||||||||
Net cash provided by (used in) operating activities | $ | 92 | $ | 211 | $ | (149 | ) | $ | 118 | $ | 139 | $ | 319 | $ | 853 | ||||||||||||||
Net cash provided by (used in) investing activities | 338 | 158 | (33 | ) | 56 | 115 | 295 | (250 | ) | ||||||||||||||||||||
Net cash used in financing activities | (263 | ) | (43 | ) | (44 | ) | (100 | ) | (123 | ) | (309 | ) | (736 | ) | |||||||||||||||
Effect of foreign exchange rate changes on cash | 6 | (5 | ) | (10 | ) | 5 | (30 | ) | (41 | ) | (50 | ) | |||||||||||||||||
Increase (decrease) in cash and cash equivalents | 173 | 321 | (237 | ) | 79 | 101 | 264 | (183 | ) | ||||||||||||||||||||
Cash and cash equivalents - beginning of period | 1,577 | 1,256 | 1,493 | 1,414 | 1,313 | 1,313 | 1,496 | ||||||||||||||||||||||
Cash and cash equivalents - end of period | $ | 1,750 | $ | 1,577 | $ | 1,256 | $ | 1,493 | $ | 1,414 | $ | 1,577 | $ | 1,313 |
For the three months ended | |||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
2016 | 2015 | 2015 | 2015 | 2015 | |||||||||||||||
Net income (loss) attributable to PartnerRe | $ | 215,626 | $ | 176,511 | $ | (229,137 | ) | $ | (88,909 | ) | $ | 245,917 | |||||||
Change in currency translation adjustment | 21,123 | (12,119 | ) | (39,533 | ) | 8,101 | (2,504 | ) | |||||||||||
Change in net unrealized gains or losses on investments, net of tax | (203 | ) | (216 | ) | (213 | ) | (214 | ) | (217 | ) | |||||||||
Change in unfunded pension obligation, net of tax | (829 | ) | (2,121 | ) | 1,163 | (891 | ) | (436 | ) | ||||||||||
Comprehensive income (loss) attributable to PartnerRe | $ | 235,717 | $ | 162,055 | $ | (267,720 | ) | $ | (81,913 | ) | $ | 242,760 |
For the year ended | |||||||
December 31, | December 31, | ||||||
2015 | 2014 | ||||||
Net income attributable to PartnerRe | $ | 104,381 | $ | 1,054,974 | |||
Change in currency translation adjustment | (46,055 | ) | (8,892 | ) | |||
Change in net unrealized gains or losses on investments, net of tax | (860 | ) | (886 | ) | |||
Change in unfunded pension obligation, net of tax | (2,285 | ) | (12,067 | ) | |||
Comprehensive income attributable to PartnerRe | $ | 55,181 | $ | 1,033,129 |
For the three months ended March 31, 2016 | |||||||||||||||||||||||||||||||
North America | Global (Non-U.S.) P&C | Global Specialty | Catastrophe | Total Non-life segment | Life and Health segment | Corporate and Other | Total | ||||||||||||||||||||||||
Gross premiums written | $ | 494 | $ | 274 | $ | 398 | $ | 170 | $ | 1,336 | $ | 293 | $ | — | $ | 1,629 | |||||||||||||||
Net premiums written | $ | 481 | $ | 269 | $ | 333 | $ | 141 | $ | 1,224 | 277 | $ | — | $ | 1,501 | ||||||||||||||||
Increase in unearned premiums | (129 | ) | (119 | ) | (11 | ) | (93 | ) | (352 | ) | (7 | ) | — | (359 | ) | ||||||||||||||||
Net premiums earned | $ | 352 | $ | 150 | $ | 322 | $ | 48 | $ | 872 | $ | 270 | $ | — | $ | 1,142 | |||||||||||||||
Losses and loss expenses and life policy benefits | (199 | ) | (123 | ) | (184 | ) | (3 | ) | (509 | ) | (205 | ) | — | (714 | ) | ||||||||||||||||
Acquisition costs | (107 | ) | (47 | ) | (90 | ) | (1 | ) | (245 | ) | (38 | ) | — | (283 | ) | ||||||||||||||||
Technical result | $ | 46 | $ | (20 | ) | $ | 48 | $ | 44 | $ | 118 | $ | 27 | $ | — | $ | 145 | ||||||||||||||
Other income | 2 | 2 | 1 | 5 | |||||||||||||||||||||||||||
Other expenses | (68 | ) | (18 | ) | (67 | ) | (153 | ) | |||||||||||||||||||||||
Underwriting result | $ | 52 | $ | 11 | n/a | $ | (3 | ) | |||||||||||||||||||||||
Net investment income | 13 | 90 | 103 | ||||||||||||||||||||||||||||
Allocated underwriting result (1) | $ | 24 | n/a | n/a | |||||||||||||||||||||||||||
Net realized and unrealized investment gains | 167 | 167 | |||||||||||||||||||||||||||||
Interest expense | (12 | ) | (12 | ) | |||||||||||||||||||||||||||
Amortization of intangible assets | (7 | ) | (7 | ) | |||||||||||||||||||||||||||
Net foreign exchange gains | 2 | 2 | |||||||||||||||||||||||||||||
Income tax expense | (31 | ) | (31 | ) | |||||||||||||||||||||||||||
Interest in losses of equity method investments | (3 | ) | (3 | ) | |||||||||||||||||||||||||||
Net income | n/a | $ | 216 | ||||||||||||||||||||||||||||
Loss ratio (2) | 56.5 | % | 82.1 | % | 57.2 | % | 7.2 | % | 58.5 | % | |||||||||||||||||||||
Acquisition ratio (3) | 30.4 | 31.1 | 27.8 | 3.1 | 28.0 | ||||||||||||||||||||||||||
Technical ratio (4) | 86.9 | % | 113.2 | % | 85.0 | % | 10.3 | % | 86.5 | % | |||||||||||||||||||||
Other expense ratio (5) | 7.8 | ||||||||||||||||||||||||||||||
Combined ratio (6) | 94.3 | % |
(1) | Allocated underwriting result is defined as net premiums earned, other income or loss and allocated net investment income less life policy benefits, acquisition costs and other expenses. |
(2) | Loss ratio is obtained by dividing losses and loss expenses by net premiums earned. |
(3) | Acquisition ratio is obtained by dividing acquisition costs by net premiums earned. |
(4) | Technical ratio is defined as the sum of the loss ratio and the acquisition ratio. |
(5) | Other expense ratio is obtained by dividing other expenses by net premiums earned. |
(6) | Combined ratio is defined as the sum of the technical ratio and the other expense ratio. |
For the three months ended March 31, 2015 | |||||||||||||||||||||||||||||||
North America | Global (Non-U.S.) P&C | Global Specialty | Catastrophe | Total Non-life segment | Life and Health segment | Corporate and Other | Total | ||||||||||||||||||||||||
Gross premiums written | $ | 473 | $ | 334 | $ | 427 | $ | 191 | $ | 1,425 | $ | 324 | $ | — | $ | 1,749 | |||||||||||||||
Net premiums written | $ | 471 | $ | 331 | $ | 362 | $ | 176 | $ | 1,340 | $ | 313 | $ | — | $ | 1,653 | |||||||||||||||
(Increase) decrease in unearned premiums | (132 | ) | (157 | ) | 3 | (118 | ) | (404 | ) | (14 | ) | — | (418 | ) | |||||||||||||||||
Net premiums earned | $ | 339 | $ | 174 | $ | 365 | $ | 58 | $ | 936 | $ | 299 | $ | — | $ | 1,235 | |||||||||||||||
Losses and loss expenses and life policy benefits | (172 | ) | (119 | ) | (170 | ) | (20 | ) | (481 | ) | (240 | ) | — | (721 | ) | ||||||||||||||||
Acquisition costs | (93 | ) | (52 | ) | (93 | ) | (4 | ) | (242 | ) | (34 | ) | — | (276 | ) | ||||||||||||||||
Technical result | $ | 74 | $ | 3 | $ | 102 | $ | 34 | $ | 213 | $ | 25 | $ | — | $ | 238 | |||||||||||||||
Other income | — | 1 | 3 | 4 | |||||||||||||||||||||||||||
Other expenses | (52 | ) | (15 | ) | (58 | ) | (125 | ) | |||||||||||||||||||||||
Underwriting result | $ | 161 | $ | 11 | n/a | $ | 117 | ||||||||||||||||||||||||
Net investment income | 14 | 91 | 105 | ||||||||||||||||||||||||||||
Allocated underwriting result (1) | $ | 25 | n/a | n/a | |||||||||||||||||||||||||||
Net realized and unrealized investment gains | 116 | 116 | |||||||||||||||||||||||||||||
Interest expense | (12 | ) | (12 | ) | |||||||||||||||||||||||||||
Amortization of intangible assets | (7 | ) | (7 | ) | |||||||||||||||||||||||||||
Net foreign exchange gains | 13 | 13 | |||||||||||||||||||||||||||||
Income tax expense | (80 | ) | (80 | ) | |||||||||||||||||||||||||||
Interest in losses of equity method investments | (4 | ) | (4 | ) | |||||||||||||||||||||||||||
Net income | n/a | $ | 248 | ||||||||||||||||||||||||||||
Loss ratio (2) | 50.7 | % | 68.4 | % | 46.7 | % | 33.7 | % | 51.4 | % | |||||||||||||||||||||
Acquisition ratio (3) | 27.5 | 30.1 | 25.4 | 7.0 | 25.9 | ||||||||||||||||||||||||||
Technical ratio (4) | 78.2 | % | 98.5 | % | 72.1 | % | 40.7 | % | 77.3 | % | |||||||||||||||||||||
Other expense ratio (5) | 5.5 | ||||||||||||||||||||||||||||||
Combined ratio (6) | 82.8 | % |
For the three months ended | For the year ended | |||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | ||||||||||||||||||||||
2016 (A) | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||||||||||||||
Gross premiums written | $ | 1,336 | $ | 801 | $ | 954 | $ | 1,098 | $ | 1,425 | $ | 4,277 | $ | 4,667 | ||||||||||||||
Net premiums written | $ | 1,224 | $ | 780 | $ | 892 | $ | 1,009 | $ | 1,340 | $ | 4,022 | $ | 4,500 | ||||||||||||||
Net premiums earned | $ | 872 | $ | 1,002 | $ | 1,110 | $ | 1,012 | $ | 936 | $ | 4,060 | $ | 4,387 | ||||||||||||||
Losses and loss expenses | (509 | ) | (551 | ) | (556 | ) | (605 | ) | (481 | ) | (2,193 | ) | (2,463 | ) | ||||||||||||||
Acquisition costs | (245 | ) | (260 | ) | (309 | ) | (253 | ) | (242 | ) | (1,064 | ) | (1,065 | ) | ||||||||||||||
Technical result | $ | 118 | $ | 191 | $ | 245 | $ | 154 | $ | 213 | $ | 803 | $ | 859 | ||||||||||||||
Other income | 2 | — | — | — | — | — | 3 | |||||||||||||||||||||
Other expenses | (68 | ) | (56 | ) | (55 | ) | (55 | ) | (52 | ) | (219 | ) | (252 | ) | ||||||||||||||
Underwriting result | $ | 52 | $ | 135 | $ | 190 | $ | 99 | $ | 161 | $ | 584 | $ | 610 | ||||||||||||||
Loss ratio (2) | 58.5 | % | 54.9 | % | 50.1 | % | 59.8 | % | 51.4 | % | 54.0 | % | 56.1 | % | ||||||||||||||
Acquisition ratio (3) | 28.0 | 26.0 | 27.8 | 25.0 | 25.9 | 26.2 | 24.3 | |||||||||||||||||||||
Technical ratio (4) | 86.5 | % | 80.9 | % | 77.9 | % | 84.8 | % | 77.3 | % | 80.2 | % | 80.4 | % | ||||||||||||||
Other expense ratio (5) | 7.8 | 5.6 | 4.9 | 5.5 | 5.5 | 5.4 | 5.8 | |||||||||||||||||||||
Combined ratio (6) | 94.3 | % | 86.5 | % | 82.8 | % | 90.3 | % | 82.8 | % | 85.6 | % | 86.2 | % |
(A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended March 31, 2016, net premiums written and net premiums earned include foreign exchange impacts of $(54.0) million and $(32.8) million, respectively, compared to the three months ended March 31, 2015. |
For the three months ended | For the year ended | |||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | ||||||||||||||||||||||
2016 (A) | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||||||||||||||
Gross premiums written | $ | 494 | $ | 352 | $ | 351 | $ | 427 | $ | 473 | $ | 1,604 | $ | 1,642 | ||||||||||||||
Net premiums written | $ | 481 | $ | 335 | $ | 335 | $ | 401 | $ | 471 | $ | 1,542 | $ | 1,630 | ||||||||||||||
Net premiums earned | $ | 352 | $ | 390 | $ | 408 | $ | 435 | $ | 339 | $ | 1,572 | $ | 1,597 | ||||||||||||||
Losses and loss expenses | (199 | ) | (231 | ) | (182 | ) | (296 | ) | (172 | ) | (881 | ) | (1,000 | ) | ||||||||||||||
Acquisition costs | (107 | ) | (103 | ) | (137 | ) | (111 | ) | (93 | ) | (443 | ) | (401 | ) | ||||||||||||||
Technical result | $ | 46 | $ | 56 | $ | 89 | $ | 28 | $ | 74 | $ | 248 | $ | 196 | ||||||||||||||
Loss ratio (2) | 56.5 | % | 59.2 | % | 44.7 | % | 68.1 | % | 50.7 | % | 56.0 | % | 62.6 | % | ||||||||||||||
Acquisition ratio (3) | 30.4 | 26.4 | 33.4 | 25.4 | 27.5 | 28.2 | 25.1 | |||||||||||||||||||||
Technical ratio (4) | 86.9 | % | 85.6 | % | 78.1 | % | 93.5 | % | 78.2 | % | 84.2 | % | 87.7 | % | ||||||||||||||
Distribution of Net Premiums Written by Major Lines of Business: | ||||||||||||||||||||||||||||
Agriculture | 35 | % | 26 | % | 21 | % | 31 | % | 30 | % | 28 | % | 28 | % | ||||||||||||||
Casualty | 34 | 35 | 40 | 38 | 35 | 37 | 37 | |||||||||||||||||||||
Credit/Surety | 5 | 7 | 3 | 6 | 7 | 6 | 7 | |||||||||||||||||||||
Motor | 3 | 6 | 4 | 4 | 4 | 4 | 4 | |||||||||||||||||||||
Multiline | 10 | 9 | 6 | 8 | 10 | 8 | 8 | |||||||||||||||||||||
Other | 3 | 6 | 9 | 2 | 1 | 4 | 2 | |||||||||||||||||||||
Property | 10 | 11 | 17 | 11 | 13 | 13 | 14 | |||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
(A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended March 31, 2016, net premiums written and net premiums earned include foreign exchange impacts of $(3.6) million and $(2.0) million, respectively, compared to the three months ended March 31, 2015. |
For the three months ended | For the year ended | |||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | ||||||||||||||||||
2016 (A) | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||||||||||
Gross premiums written | $ | 274 | $ | 106 | 153 | 143 | 334 | $ | 735 | 803 | ||||||||||||||
Net premiums written | $ | 269 | $ | 105 | 153 | 137 | 331 | $ | 726 | 794 | ||||||||||||||
Net premiums earned | $ | 150 | $ | 174 | 186 | 159 | 174 | $ | 693 | 768 | ||||||||||||||
Losses and loss expenses | (123 | ) | (111 | ) | (122 | ) | (121 | ) | (119 | ) | (473 | ) | (438 | ) | ||||||||||
Acquisition costs | (47 | ) | (50 | ) | (50 | ) | (36 | ) | (52 | ) | (189 | ) | (222 | ) | ||||||||||
Technical result | $ | (20 | ) | $ | 13 | 14 | 2 | 3 | $ | 31 | 108 | |||||||||||||
Loss ratio (2) | 82.1 | % | 63.7 | % | 65.8 | % | 75.9 | % | 68.4 | % | 68.3 | % | 57.0 | % | ||||||||||
Acquisition ratio (3) | 31.1 | 28.8 | 26.9 | 23.2 | 30.1 | 27.3 | 28.9 | |||||||||||||||||
Technical ratio (4) | 113.2 | % | 92.5 | % | 92.7 | % | 99.1 | % | 98.5 | % | 95.6 | % | 85.9 | % | ||||||||||
Distribution of Net Premiums Written by Major Lines of Business: | ||||||||||||||||||||||||
Casualty | 9 | % | 9 | % | 8 | % | 10 | % | 10 | % | 10 | % | 8 | % | ||||||||||
Motor | 33 | 50 | 42 | 34 | 36 | 39 | 40 | |||||||||||||||||
Property | 58 | 41 | 50 | 56 | 54 | 51 | 52 | |||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
(A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended March 31, 2016, net premiums written and net premiums earned include foreign exchange impacts of $(24.3) million and $(12.3) million, respectively, compared to the three months ended March 31, 2015. |
For the three months ended | For the year ended | |||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | ||||||||||||||||||||||
2016 (A) | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||||||||||||||
Gross premiums written | $ | 398 | $ | 330 | $ | 393 | $ | 406 | $ | 427 | $ | 1,556 | $ | 1,797 | ||||||||||||||
Net premiums written | $ | 333 | $ | 329 | $ | 391 | $ | 400 | $ | 362 | $ | 1,482 | $ | 1,696 | ||||||||||||||
Net premiums earned | $ | 322 | $ | 368 | $ | 404 | $ | 374 | $ | 365 | $ | 1,511 | $ | 1,638 | ||||||||||||||
Losses and loss expenses | (184 | ) | (193 | ) | (224 | ) | (198 | ) | (170 | ) | (785 | ) | (963 | ) | ||||||||||||||
Acquisition costs | (90 | ) | (100 | ) | (112 | ) | (102 | ) | (93 | ) | (407 | ) | (400 | ) | ||||||||||||||
Technical result | $ | 48 | $ | 75 | $ | 68 | $ | 74 | $ | 102 | $ | 319 | $ | 275 | ||||||||||||||
Loss ratio (2) | 57.2 | % | 52.3 | % | 55.5 | % | 53.0 | % | 46.7 | % | 52.0 | % | 58.8 | % | ||||||||||||||
Acquisition ratio (3) | 27.8 | 27.2 | 27.7 | 27.2 | 25.4 | 26.9 | 24.4 | |||||||||||||||||||||
Technical ratio (4) | 85.0 | % | 79.5 | % | 83.2 | % | 80.2 | % | 72.1 | % | 78.9 | % | 83.2 | % | ||||||||||||||
Distribution of Net Premiums Written by Major Lines of Business: | ||||||||||||||||||||||||||||
Agriculture | 10 | % | 5 | % | 13 | % | 13 | % | 15 | % | 12 | % | 13 | % | ||||||||||||||
Aviation/Space | 10 | 15 | 9 | 13 | 11 | 12 | 13 | |||||||||||||||||||||
Credit/Surety | 20 | 18 | 15 | 13 | 14 | 15 | 16 | |||||||||||||||||||||
Energy | 5 | 4 | 4 | 3 | 4 | 4 | 4 | |||||||||||||||||||||
Engineering | 11 | 12 | 8 | 10 | 11 | 10 | 10 | |||||||||||||||||||||
Marine | 12 | 12 | 16 | 14 | 11 | 13 | 17 | |||||||||||||||||||||
Multiline | 11 | 16 | 12 | 11 | 12 | 13 | 8 | |||||||||||||||||||||
Other | — | — | 1 | 1 | 2 | — | — | |||||||||||||||||||||
Specialty casualty | 14 | 9 | 9 | 9 | 11 | 10 | 10 | |||||||||||||||||||||
Specialty property | 7 | 9 | 13 | 13 | 9 | 11 | 9 | |||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
(A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended March 31, 2016, net premiums written and net premiums earned include foreign exchange impacts of $(19.0) million and $(14.8) million, respectively, compared to the three months ended March 31, 2015. |
For the three months ended | For the year ended | |||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | ||||||||||||||||||||
2016 (A) | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||||||||||||
Gross premiums written | $ | 170 | $ | 13 | 57 | 122 | $ | 191 | $ | 382 | $ | 425 | ||||||||||||||
Net premiums written | $ | 141 | $ | 11 | 13 | 71 | $ | 176 | $ | 272 | $ | 380 | ||||||||||||||
Net premiums earned | $ | 48 | $ | 70 | 112 | 44 | $ | 58 | $ | 284 | $ | 384 | ||||||||||||||
Losses and loss expenses | (3 | ) | (16 | ) | (28 | ) | 10 | (20 | ) | (54 | ) | (62 | ) | |||||||||||||
Acquisition costs | (1 | ) | (7 | ) | (10 | ) | (4 | ) | (4 | ) | (25 | ) | (42 | ) | ||||||||||||
Technical result | $ | 44 | $ | 47 | 74 | 50 | $ | 34 | $ | 205 | $ | 280 | ||||||||||||||
Loss ratio (2) | 7.2 | % | 23.2 | % | 24.9 | % | (21.5 | )% | 33.7 | % | 19.1 | % | 16.1 | % | ||||||||||||
Acquisition ratio (3) | 3.1 | 9.9 | 8.7 | 8.2 | 7.0 | 8.6 | 11.0 | |||||||||||||||||||
Technical ratio (4) | 10.3 | % | 33.1 | % | 33.6 | % | (13.3 | )% | 40.7 | % | 27.7 | % | 27.1 | % |
(A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended March 31, 2016, net premiums written and net premiums earned include foreign exchange impacts of $(7.1) million and $(3.7) million, respectively, compared to the three months ended March 31, 2015. |
For the three months ended | For the year ended | |||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | ||||||||||||||||||||||
2016 (A) | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||||||||||||||
Gross premiums written | $ | 293 | $ | 298 | $ | 314 | $ | 334 | $ | 324 | $ | 1,271 | $ | 1,265 | ||||||||||||||
Net premiums written | $ | 277 | $ | 284 | $ | 298 | $ | 313 | $ | 313 | $ | 1,208 | $ | 1,220 | ||||||||||||||
Net premiums earned | $ | 270 | $ | 292 | $ | 302 | $ | 316 | $ | 299 | $ | 1,209 | $ | 1,222 | ||||||||||||||
Life policy benefits | (205 | ) | (216 | ) | (248 | ) | (260 | ) | (240 | ) | (964 | ) | (1,000 | ) | ||||||||||||||
Acquisition costs | (38 | ) | (51 | ) | (38 | ) | (30 | ) | (34 | ) | (153 | ) | (149 | ) | ||||||||||||||
Technical result | $ | 27 | $ | 25 | $ | 16 | $ | 26 | $ | 25 | $ | 92 | $ | 73 | ||||||||||||||
Other income | 2 | 2 | 3 | — | 1 | 6 | 8 | |||||||||||||||||||||
Other expenses | (18 | ) | (17 | ) | (16 | ) | (16 | ) | (15 | ) | (63 | ) | (68 | ) | ||||||||||||||
Underwriting result | $ | 11 | $ | 10 | $ | 3 | $ | 10 | $ | 11 | $ | 35 | $ | 13 | ||||||||||||||
Net investment income | 13 | 14 | 15 | 16 | 14 | 59 | 60 | |||||||||||||||||||||
Allocated underwriting result (1) | $ | 24 | $ | 24 | $ | 18 | $ | 26 | $ | 25 | $ | 94 | $ | 73 | ||||||||||||||
Distribution of Net Premiums Written by Major Lines of Business: | ||||||||||||||||||||||||||||
Accident and Health | 28 | % | 30 | % | 30 | % | 26 | % | 27 | % | 28 | % | 23 | % | ||||||||||||||
Longevity | 25 | 25 | 25 | 30 | 22 | 25 | 25 | |||||||||||||||||||||
Mortality | 47 | 45 | 45 | 44 | 51 | 47 | 52 | |||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
(A) | Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended March 31, 2016, net premiums written and net premiums earned include foreign exchange impacts of $(15.4) million and $(14.3) million, respectively, compared to the three months ended March 31, 2015. |
For the three months ended | For the year ended | |||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | ||||||||||||||||||||||
2016 | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||||||||||||||
Other income (loss) | $ | 1 | $ | (1 | ) | $ | — | $ | — | $ | 3 | $ | 3 | $ | 5 | |||||||||||||
Corporate expenses - amalgamation termination fee and reimbursement of expenses | — | — | (315 | ) | — | — | (315 | ) | — | |||||||||||||||||||
Corporate expenses - Axis and Exor related costs (1) (4) | (46 | ) | (16 | ) | (7 | ) | (9 | ) | (31 | ) | (63 | ) | — | |||||||||||||||
Corporate expenses - costs of restructuring (2) | — | — | — | — | — | — | (11 | ) | ||||||||||||||||||||
Corporate expenses (3) | (21 | ) | (31 | ) | (23 | ) | (50 | ) | (27 | ) | (131 | ) | (119 | ) | ||||||||||||||
Net investment income | 90 | 94 | 102 | 104 | 91 | 391 | 420 | |||||||||||||||||||||
Net realized and unrealized investment gains (losses) | 167 | (24 | ) | (133 | ) | (256 | ) | 116 | (297 | ) | 372 | |||||||||||||||||
Interest expense | (12 | ) | (12 | ) | (12 | ) | (12 | ) | (12 | ) | (49 | ) | (49 | ) | ||||||||||||||
Amortization of intangible assets | (7 | ) | (6 | ) | (7 | ) | (7 | ) | (7 | ) | (27 | ) | (27 | ) | ||||||||||||||
Net foreign exchange gains (losses) | 2 | 6 | (22 | ) | (6 | ) | 13 | (9 | ) | 18 | ||||||||||||||||||
Income tax (expense) benefit | (31 | ) | 3 | (17 | ) | 14 | (80 | ) | (80 | ) | (239 | ) | ||||||||||||||||
Interest in earnings (losses) of equity method investments | (3 | ) | 5 | (3 | ) | 8 | (4 | ) | 6 | 15 |
(1) | For the three months ended March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015, costs related to the Axis and Exor transactions, pre-tax, are $65.8 million, $16.3 million, $6.9 million $9.0 million and $30.9 million, or 4.4%, 1.1%, 0.5%, 0.6% and 2.0% points on the Annualized Operating ROE, respectively. For the year ended December 31, 2015, costs related to the Axis and Exor transactions, pre-tax, are $63.1 million or 1.0% points on the Annualized Operating ROE. For the three months ended June 30, 2015 and for the year ended December 2015, expense related to the earn-out consideration paid to the former shareholders of Presidio Reinsurance Group, Inc. was $25.2 million, or 1.6% and 0.4% points, respectively, on the Annualized Operating ROE. After-tax, for the three months ended March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015, operating earnings attributable to PartnerRe common shareholders adjusted to be before the Axis and Exor transaction related costs and earn-out consideration paid are $104.2 million, $200.2 million, $218.5 million, $146.7 million and $181.4 million, or 6.9%, 13.4%, 14.4%, 9.4% and 11.6% points on the Annualized Operating ROE, respectively. After-tax, for the three months ended March 31, 2016 and March 31, 2015, net income attributable to PartnerRe common shareholders adjusted to be before the Axis and Exor transaction related costs are $261.4 million and $262.6 million, or 17.3% and 16.8% points on the Annualized Net Income ROE, respectively. For the year ended December 31, 2015, operating earnings attributable to PartnerRe common shareholders adjusted to be before the amalgamation related costs and earn-out consideration paid are $746.8 million, or 12.2% points on the annualized operating ROE. See page 26 for the comparable unadjusted annualized operating return on average common shareholders' equity (Annualized Operating ROE). |
(2) | The costs of restructuring relate to the Company’s reorganization of its business support and Global Non-life operations. During the year ended December 31, 2014, these costs predominantly comprised of facility exit costs. |
(3) | Corporate expenses for the three months ended June 30,2015 and the year ended December 31, 2015 include $25 million, pretax, respectively, related to the negotiated earn-out consideration paid to the former shareholders of Presidio Reinsurance Group, Inc. |
(4) | Corporate expenses - Axis and Exor related for the three months ended March 31, 2016, include $11 million of accelerated stock compensation expense. The remaining accelerated stock compensation expense of $20 million is included within other expenses of the Non-life and Life segments. |
For the three months ended | For the year ended | ||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | |||||||||||||||
2016 | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | |||||||||||||||
Distribution of Net Premiums Written by Line of Business: | |||||||||||||||||||||
Non-life | |||||||||||||||||||||
Property and casualty | |||||||||||||||||||||
Casualty | 13 | % | 12 | % | 12 | % | 13 | % | 12 | % | 12 | % | 12 | % | |||||||
Motor | 7 | 7 | 7 | 5 | 8 | 7 | 7 | ||||||||||||||
Multiline and other | 6 | 9 | 8 | 6 | 6 | 7 | 5 | ||||||||||||||
Property | 14 | 8 | 11 | 9 | 15 | 11 | 11 | ||||||||||||||
Specialty | |||||||||||||||||||||
Agriculture | 13 | 10 | 10 | 13 | 12 | 11 | 12 | ||||||||||||||
Aviation/Space | 2 | 5 | 3 | 4 | 2 | 4 | 4 | ||||||||||||||
Catastrophe | 10 | 1 | 1 | 5 | 11 | 5 | 6 | ||||||||||||||
Credit/Surety | 6 | 8 | 6 | 6 | 5 | 6 | 7 | ||||||||||||||
Energy | 1 | 1 | 2 | 1 | 1 | 1 | 1 | ||||||||||||||
Engineering | 2 | 4 | 3 | 3 | 2 | 3 | 3 | ||||||||||||||
Marine | 3 | 4 | 5 | 4 | 2 | 4 | 5 | ||||||||||||||
Specialty casualty | 3 | 3 | 3 | 3 | 3 | 3 | 3 | ||||||||||||||
Specialty property | 2 | 2 | 4 | 4 | 2 | 3 | 3 | ||||||||||||||
Life and Health | 18 | 26 | 25 | 24 | 19 | 23 | 21 | ||||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Distribution of Gross Premiums Written by Geography: | |||||||||||||||||||||
Asia, Australia and New Zealand | 9 | % | 10 | % | 14 | % | 13 | % | 10 | % | 12 | % | 11 | % | |||||||
Europe | 40 | 36 | 35 | 33 | 43 | 37 | 40 | ||||||||||||||
Latin America, Caribbean and Africa | 9 | 11 | 11 | 9 | 9 | 10 | 10 | ||||||||||||||
North America | 42 | 43 | 40 | 45 | 38 | 41 | 39 | ||||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Distribution of Gross Premiums Written by Production Source: | |||||||||||||||||||||
Broker | 72 | % | 71 | % | 72 | % | 73 | % | 69 | % | 71 | % | 69 | % | |||||||
Direct | 28 | 29 | 28 | 27 | 31 | 29 | 31 | ||||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
For the three months ended | For the year ended | ||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | |||||||||||||||
2016 | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | |||||||||||||||
Distribution of Gross Premiums Written by Reinsurance Type for the Non-life sub-segment: | |||||||||||||||||||||
North America | |||||||||||||||||||||
Non-Proportional | 23 | % | 7 | % | 15 | % | 14 | % | 25 | % | 16 | % | 16 | % | |||||||
Proportional | 77 | 93 | 85 | 86 | 75 | 84 | 84 | ||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||
Global (Non-U.S.) P&C | |||||||||||||||||||||
Non-Proportional | 35 | % | 3 | % | 10 | % | 11 | % | 34 | % | 20 | % | 22 | % | |||||||
Proportional | 65 | 97 | 90 | 89 | 66 | 80 | 78 | ||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||
Global Specialty | |||||||||||||||||||||
Non-Proportional | 25 | % | 7 | % | 12 | % | 15 | % | 24 | % | 15 | % | 17 | % | |||||||
Proportional | 75 | 93 | 88 | 85 | 76 | 85 | 83 | ||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||
Catastrophe | |||||||||||||||||||||
Non-Proportional | 97 | % | 90 | % | 96 | % | 97 | % | 97 | % | 97 | % | 98 | % | |||||||
Proportional | 3 | 10 | 4 | 3 | 3 | 3 | 2 | ||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||
Non-life total | |||||||||||||||||||||
Non-Proportional | 35 | % | 8 | % | 18 | % | 23 | % | 36 | % | 23 | % | 25 | % | |||||||
Proportional | 65 | 92 | 82 | 77 | 64 | 77 | 75 | ||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||||||||||||||||||||
2016 | 2015 | 2015 | 2015 | 2015 | 2014 | |||||||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||||||||||||||||||
U.S. government | $ | 2,690 | 19 | % | $ | 2,810 | 20 | % | $ | 2,148 | 15 | % | $ | 2,282 | 16 | % | $ | 2,241 | 15 | % | $ | 2,277 | 15 | % | ||||||||||||||||||
U.S. government sponsored enterprises | 105 | 1 | 63 | — | 48 | — | 53 | — | 58 | — | 39 | — | ||||||||||||||||||||||||||||||
U.S. states, territories and municipalities | 780 | 5 | 778 | 5 | 760 | 5 | 682 | 5 | 621 | 4 | 531 | 3 | ||||||||||||||||||||||||||||||
Non-U.S. sovereign government, supranational and government related | 1,197 | 9 | 1,333 | 9 | 1,288 | 9 | 1,492 | 10 | 1,557 | 10 | 1,976 | 13 | ||||||||||||||||||||||||||||||
Corporates | 4,978 | 36 | 5,086 | 36 | 5,366 | 37 | 5,510 | 37 | 5,495 | 37 | 5,604 | 37 | ||||||||||||||||||||||||||||||
Mortgage/asset-backed securities | 3,270 | 24 | 3,378 | 24 | 3,416 | 24 | 3,331 | 23 | 3,440 | 23 | 3,492 | 23 | ||||||||||||||||||||||||||||||
Total fixed maturities | 13,020 | 94 | 13,448 | 94 | 13,026 | 90 | 13,350 | 91 | 13,412 | 89 | 13,919 | 91 | ||||||||||||||||||||||||||||||
Short-term investments | 34 | — | 47 | — | 101 | 1 | 19 | — | 20 | — | 25 | — | ||||||||||||||||||||||||||||||
Equities | 324 | 2 | 444 | 3 | 1,004 | 7 | 1,007 | 7 | 1,320 | 9 | 1,057 | 7 | ||||||||||||||||||||||||||||||
Other invested assets | 459 | 4 | 399 | 3 | 345 | 2 | 340 | 2 | 287 | 2 | 299 | 2 | ||||||||||||||||||||||||||||||
Total investments | $ | 13,837 | 100 | % | $ | 14,338 | 100 | % | $ | 14,476 | 100 | % | $ | 14,716 | 100 | % | $ | 15,039 | 100 | % | $ | 15,300 | 100 | % | ||||||||||||||||||
Cash and cash equivalents | 1,750 | 1,577 | 1,256 | 1,493 | 1,414 | 1,313 | ||||||||||||||||||||||||||||||||||||
Total investments and cash | $ | 15,587 | $ | 15,915 | $ | 15,732 | $ | 16,209 | $ | 16,453 | $ | 16,613 | ||||||||||||||||||||||||||||||
Maturity distribution: | ||||||||||||||||||||||||||||||||||||||||||
One year or less | $ | 431 | 3 | % | $ | 556 | 4 | % | $ | 548 | 4 | % | $ | 239 | 2 | % | $ | 257 | 2 | % | $ | 313 | 2 | |||||||||||||||||||
More than one year through five years | 4,521 | 35 | 4,609 | 34 | 4,152 | 32 | 4,703 | 35 | 4,694 | 35 | 5,169 | 37 | ||||||||||||||||||||||||||||||
More than five years through ten years | 3,224 | 25 | 3,342 | 25 | 3,433 | 26 | 3,642 | 27 | 3,669 | 27 | 3,719 | 27 | ||||||||||||||||||||||||||||||
More than ten years | 1,608 | 12 | 1,610 | 12 | 1,578 | 12 | 1,454 | 11 | 1,372 | 10 | 1,251 | 9 | ||||||||||||||||||||||||||||||
Subtotal | 9,784 | 75 | 10,117 | 75 | 9,711 | 74 | 10,038 | 75 | 9,992 | 74 | 10,452 | 75 | ||||||||||||||||||||||||||||||
Mortgage/asset-backed securities | 3,270 | 25 | 3,378 | 25 | 3,416 | 26 | 3,331 | 25 | 3,440 | 26 | 3,492 | 25 | ||||||||||||||||||||||||||||||
Total | $ | 13,054 | 100 | % | $ | 13,495 | 100 | % | $ | 13,127 | 100 | % | $ | 13,369 | 100 | % | $ | 13,432 | 100 | % | $ | 13,944 | 100 | % | ||||||||||||||||||
Credit quality by market value: | ||||||||||||||||||||||||||||||||||||||||||
AAA | 11 | % | 11 | % | 10 | % | 11 | % | 10 | % | 11 | % | ||||||||||||||||||||||||||||||
AA | 47 | 47 | 44 | 44 | 45 | 46 | ||||||||||||||||||||||||||||||||||||
A | 15 | 15 | 19 | 19 | 19 | 19 | ||||||||||||||||||||||||||||||||||||
BBB | 20 | 20 | 18 | 18 | 17 | 16 | ||||||||||||||||||||||||||||||||||||
Below Investment Grade/Unrated | 7 | 7 | 9 | 8 | 9 | 8 | ||||||||||||||||||||||||||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||||||||
Expected average duration (1) | 4.0 | Yrs | 3.6 | Yrs | 3.5 | Yrs | 3.6 | Yrs | 3.5 | Yrs | 3.7 | Yrs | ||||||||||||||||||||||||||||||
Average yield to maturity at market (1) | 2.4 | % | 2.9 | % | 2.8 | % | 2.7 | % | 2.3 | % | 2.4 | % | ||||||||||||||||||||||||||||||
Average credit quality | A | A | A | A | A | A |
March 31, 2016 | |||||||||||||||||||||||
Fair Value | Percentage to Total Fair Value of Corporate Bonds | Percentage to Invested Assets and cash | Largest single issuer as a percentage of Invested Assets and cash | ||||||||||||||||||||
Distribution by sector - Corporate bonds | |||||||||||||||||||||||
Finance | $ | 998,313 | 20.1 | % | 6.4 | % | 0.8 | % | |||||||||||||||
Consumer noncyclical | 735,641 | 14.8 | 4.7 | 0.5 | |||||||||||||||||||
Utilities | 612,139 | 12.3 | 3.9 | 0.3 | |||||||||||||||||||
Communications | 511,487 | 10.3 | 3.3 | 0.4 | |||||||||||||||||||
Industrials | 456,006 | 9.2 | 2.9 | 0.2 | |||||||||||||||||||
Consumer cyclical | 428,605 | 8.6 | 2.8 | 0.3 | |||||||||||||||||||
Energy | 367,425 | 7.4 | 2.4 | 0.2 | |||||||||||||||||||
Insurance | 306,369 | 6.1 | 2.0 | 0.2 | |||||||||||||||||||
Technology | 125,441 | 2.5 | 0.8 | 0.2 | |||||||||||||||||||
Basic materials | 120,735 | 2.4 | 0.8 | 0.1 | |||||||||||||||||||
Real estate investment trusts | 115,782 | 2.3 | 0.7 | 0.1 | |||||||||||||||||||
Catastrophe bonds | 100,032 | 2.0 | 0.6 | 0.1 | |||||||||||||||||||
Government guaranteed corporate debt | 49,517 | 1.0 | 0.3 | 0.3 | |||||||||||||||||||
Longevity and mortality bonds | 47,424 | 1.0 | 0.3 | 0.2 | |||||||||||||||||||
Diversified | 2,879 | — | — | — | |||||||||||||||||||
Total Corporate bonds | $ | 4,977,795 | 100.0 | % | 31.9 | % | |||||||||||||||||
Finance sector - Corporate bonds | |||||||||||||||||||||||
Banks | $ | 628,679 | 12.6 | % | 4.1 | % | |||||||||||||||||
Investment banking and brokerage | 251,434 | 5.1 | 1.6 | ||||||||||||||||||||
Financial services | 66,049 | 1.3 | 0.4 | ||||||||||||||||||||
Commercial and consumer finance | 33,769 | 0.7 | 0.2 | ||||||||||||||||||||
Other | 18,382 | 0.4 | 0.1 | ||||||||||||||||||||
Total finance sector - Corporate bonds | $ | 998,313 | 20.1 | % | 6.4 | % | |||||||||||||||||
AAA | AA | A | BBB | Non-Investment Grade/Unrated | Total | ||||||||||||||||||
Credit quality of finance sector - Corporate bonds | |||||||||||||||||||||||
Banks | $ | 34,244 | $ | 32,381 | $ | 245,313 | $ | 295,933 | $ | 20,808 | $ | 628,679 | |||||||||||
Investment banking and brokerage | — | — | 19,822 | 230,442 | 1,170 | 251,434 | |||||||||||||||||
Financial services | — | 44,400 | 16,671 | 4,978 | — | 66,049 | |||||||||||||||||
Commercial and consumer finance | — | — | 8,313 | 25,456 | — | 33,769 | |||||||||||||||||
Other | — | — | — | 18,382 | — | 18,382 | |||||||||||||||||
Total finance sector - Corporate bonds | $ | 34,244 | $ | 76,781 | $ | 290,119 | $ | 575,191 | $ | 21,978 | $ | 998,313 | |||||||||||
% of total | 3 | % | 8 | % | 29 | % | 58 | % | 2 | % | 100 | % |
March 31, 2016 | ||||||||||||
Fair Value | Percentage to Total Fair Value of Equities | Percentage to Invested Assets and cash | Largest single issuer as a percentage of Invested Assets and cash | |||||||||
Distribution by sector - Equities | ||||||||||||
Finance | $ | 44,201 | 17.5 | % | 0.3 | % | 0.1 | % | ||||
Consumer noncyclical | 41,544 | 16.5 | 0.3 | — | ||||||||
Insurance | 30,033 | 11.9 | 0.2 | 0.1 | ||||||||
Technology | 28,350 | 11.3 | 0.2 | — | ||||||||
Industrials | 25,390 | 10.1 | 0.2 | — | ||||||||
Consumer cyclical | 25,191 | 10.0 | 0.1 | — | ||||||||
Communications | 23,146 | 9.2 | 0.1 | — | ||||||||
Basic materials | 11,155 | 4.4 | 0.1 | — | ||||||||
Real estate investment trusts | 9,013 | 3.6 | 0.1 | — | ||||||||
Energy | 8,245 | 3.3 | — | — | ||||||||
Utilities | 5,644 | 2.2 | — | — | ||||||||
Diversified | 37 | — | — | — | ||||||||
Total | $ | 251,949 | 100.0 | % | 1.6 | % | ||||||
Mutual funds and exchange traded funds (ETFs) | ||||||||||||
Funds and ETFs holding equities | 70,142 | 0.5 | ||||||||||
Funds holding fixed income securities | 2,336 | — | ||||||||||
Total Equities | $ | 324,427 | 2.1 | % |
Rating at March 31, 2016 | |||||||||||||||||||||||||||||||
GNMA | GSEs | AAA | AA | A | BBB | Non-Investment Grade/Unrated | Total | ||||||||||||||||||||||||
U.S. Asset-Backed Securities | $ | — | $ | — | $ | 138,452 | $ | 109,078 | $ | 85,376 | $ | — | $ | 390,126 | $ | 723,032 | |||||||||||||||
U.S. Collaterized Mortgage Obligations | — | 1,914 | 2,474 | — | — | — | — | 4,388 | |||||||||||||||||||||||
U.S. Mortgage Backed Securities (MBS) | 375,156 | 1,326,515 | — | — | — | — | — | 1,701,671 | |||||||||||||||||||||||
U.S. Commercial Mortgage Backed Securities (CMBS) | 5,287 | — | 5,616 | 9,657 | 18,189 | 126 | 1,850 | 40,725 | |||||||||||||||||||||||
U.S. MBS Interest Only | 29,063 | 84,259 | 3,194 | — | — | — | 12,171 | 128,687 | |||||||||||||||||||||||
$ | 409,506 | $ | 1,412,688 | $ | 149,736 | $ | 118,735 | $ | 103,565 | $ | 126 | $ | 404,147 | $ | 2,598,503 | ||||||||||||||||
Non-U.S. Asset-Backed Securities | $ | — | $ | — | $ | 188,279 | $ | 44,307 | $ | 38,497 | $ | — | $ | 38,201 | $ | 309,284 | |||||||||||||||
Non-U.S. Collaterized Mortgage Obligations | — | — | 166,953 | 35,846 | 18,435 | 1,470 | — | 222,704 | |||||||||||||||||||||||
Non-U.S. Commercial Mortgage Backed Securities (CMBS) | — | — | 7,190 | — | — | — | — | 7,190 | |||||||||||||||||||||||
Non-U.S. Mortgage Backed Securities (MBS) | — | — | 132,393 | — | — | — | — | 132,393 | |||||||||||||||||||||||
$ | — | $ | — | $ | 494,815 | $ | 80,153 | $ | 56,932 | $ | 1,470 | $ | 38,201 | $ | 671,571 | ||||||||||||||||
Total mortgage/asset-backed securities | $ | 409,506 | $ | 1,412,688 | $ | 644,551 | $ | 198,888 | $ | 160,497 | $ | 1,596 | $ | 442,348 | $ | 3,270,074 | |||||||||||||||
Corporate Securities | — | 105,017 | — | — | — | — | — | 105,017 | |||||||||||||||||||||||
Total | $ | 409,506 | $ | 1,517,705 | $ | 644,551 | $ | 198,888 | $ | 160,497 | $ | 1,596 | $ | 442,348 | $ | 3,375,091 | |||||||||||||||
% of total | 12 | % | 45 | % | 19 | % | 6 | % | 5 | % | — | % | 13 | % | 100 | % |
(1) | In addition to the mortgage/asset-backed securities above, the Company has derivatives exposure to to-be-announced mortgage-backed securities with a notional value of $439.1 million and a carrying value of $1.6 million at March 31, 2016 within Other Invested Assets. |
March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||||||||||||||||||
U.S. government | $ | 145 | 34 | % | $ | 117 | 29 | % | $ | 111 | 27 | % | $ | 110 | 26 | % | $ | 107 | 25 | % | $ | 105 | 22 | % | ||||||||||||||||||
U.S. government sponsored enterprises | 54 | 13 | 53 | 13 | 54 | 13 | 48 | 11 | 49 | 11 | 49 | 10 | ||||||||||||||||||||||||||||||
Non-U.S. sovereign government, supranational and government related | 126 | 29 | 120 | 30 | 124 | 30 | 110 | 26 | 111 | 26 | 128 | 27 | ||||||||||||||||||||||||||||||
Corporates | 91 | 21 | 99 | 25 | 108 | 26 | 137 | 32 | 145 | 33 | 177 | 38 | ||||||||||||||||||||||||||||||
Total fixed maturities | 416 | 97 | % | 389 | 97 | 397 | 96 | 405 | 95 | 412 | 95 | 459 | 97 | |||||||||||||||||||||||||||||
Short-term investments | — | — | 1 | — | 6 | 1 | 7 | 2 | 11 | 2 | — | — | ||||||||||||||||||||||||||||||
Other invested assets | 11 | 3 | 10 | 3 | 12 | 3 | 13 | 3 | 12 | 3 | 14 | 3 | ||||||||||||||||||||||||||||||
Total investments | $ | 427 | 100 | % | $ | 400 | 100 | % | $ | 415 | 100 | % | $ | 425 | 100 | % | $ | 435 | 100 | % | $ | 473 | 100 | % | ||||||||||||||||||
Cash and cash equivalents | 39 | 65 | 64 | 58 | 54 | 42 | ||||||||||||||||||||||||||||||||||||
Total investments and cash | $ | 466 | $ | 465 | $ | 479 | $ | 483 | $ | 489 | $ | 515 | ||||||||||||||||||||||||||||||
Accrued investment income | 4 | 4 | 6 | 5 | 5 | 6 | ||||||||||||||||||||||||||||||||||||
Other funds held assets/liabilities | 110 | 71 | 111 | 107 | 99 | 88 | ||||||||||||||||||||||||||||||||||||
Total funds held - directly managed | $ | 580 | $ | 540 | $ | 596 | $ | 595 | $ | 593 | $ | 609 | ||||||||||||||||||||||||||||||
Maturity distribution: | ||||||||||||||||||||||||||||||||||||||||||
One year or less | $ | 86 | 21 | % | $ | 73 | 19 | % | $ | 64 | 16 | % | $ | 85 | 21 | % | $ | 71 | 17 | % | $ | 77 | 16 | % | ||||||||||||||||||
More than one year through five years | 195 | 47 | 196 | 50 | 210 | 52 | 204 | 49 | 210 | 50 | 241 | 53 | ||||||||||||||||||||||||||||||
More than five years through ten years | 116 | 28 | 101 | 26 | 108 | 27 | 123 | 30 | 142 | 33 | 141 | 31 | ||||||||||||||||||||||||||||||
More than ten years | 19 | 4 | 20 | 5 | 21 | 5 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Total | $ | 416 | 100 | % | $ | 390 | 100 | % | $ | 403 | 100 | % | $ | 412 | 100 | % | $ | 423 | 100 | % | $ | 459 | 100 | % | ||||||||||||||||||
Credit quality by market value: | ||||||||||||||||||||||||||||||||||||||||||
AAA | 11 | % | 12 | % | 12 | % | 11 | % | 11 | % | 12 | % | ||||||||||||||||||||||||||||||
AA | 68 | 68 | 67 | 66 | 66 | 64 | ||||||||||||||||||||||||||||||||||||
A | 15 | 14 | 14 | 16 | 16 | 17 | ||||||||||||||||||||||||||||||||||||
BBB | 6 | 6 | 7 | 7 | 7 | 7 | ||||||||||||||||||||||||||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||||||||
Expected average duration | 3.7 | Yrs | 3.6 | Yrs | 3.7 | Yrs | 3.3 | Yrs | 3.3 | Yrs | 3.4 | Yrs | ||||||||||||||||||||||||||||||
Average yield to maturity at market | 0.8 | % | 1.2 | % | 1.0 | % | 1.1 | % | 0.8 | % | 1.0 | % | ||||||||||||||||||||||||||||||
Average credit quality | AA | AA | AA | AA | AA | AA |
For the three months ended | For the year ended | |||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | ||||||||||||||||||||||
2016 | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||||||||||||||
Fixed maturities | $ | 103,817 | $ | 104,619 | $ | 108,554 | $ | 109,749 | $ | 102,619 | $ | 425,541 | $ | 443,414 | ||||||||||||||
Short-term investments, cash and cash equivalents | 337 | 275 | 288 | 151 | 140 | 854 | 868 | |||||||||||||||||||||
Equities | 2,205 | 5,621 | 8,818 | 10,385 | 5,915 | 30,739 | 40,326 | |||||||||||||||||||||
Funds held and other | 6,417 | 5,908 | 7,648 | 9,227 | 4,623 | 27,406 | 33,192 | |||||||||||||||||||||
Funds held - directly managed | 2,827 | 2,927 | 2,595 | 3,132 | 3,022 | 11,676 | 13,841 | |||||||||||||||||||||
Investment expenses | (12,616 | ) | (11,442 | ) | (10,849 | ) | (12,452 | ) | (11,688 | ) | (46,432 | ) | (51,945 | ) | ||||||||||||||
Net investment income (1) | $ | 102,987 | $ | 107,908 | $ | 117,054 | $ | 120,192 | $ | 104,631 | $ | 449,784 | $ | 479,696 | ||||||||||||||
Net realized investment (losses) gains on fixed maturities and short-term investments | $ | (3,513 | ) | $ | 4,936 | $ | (3,095 | ) | $ | 12,597 | $ | 51,858 | $ | 66,296 | $ | 120,734 | ||||||||||||
Net realized investment gains on equities | 10,239 | 64,952 | 20,440 | 31,852 | 20,365 | 137,609 | 98,733 | |||||||||||||||||||||
Net realized (losses) gains on other invested assets | (32,599 | ) | 13,947 | (25,785 | ) | (13,730 | ) | (7,749 | ) | (33,317 | ) | (20,686 | ) | |||||||||||||||
Change in net unrealized gains (losses) on other invested assets | 3,112 | 18,901 | (12,473 | ) | 16,056 | (21,640 | ) | 844 | (58,180 | ) | ||||||||||||||||||
Change in net unrealized investment gains (losses) on fixed maturities and short-term investments | 211,916 | (80,454 | ) | (19,375 | ) | (253,918 | ) | 76,971 | (276,776 | ) | 228,781 | |||||||||||||||||
Change in net unrealized investment (losses) gains on equities | (27,483 | ) | (40,153 | ) | (94,869 | ) | (45,523 | ) | (7,016 | ) | (187,561 | ) | 2,605 | |||||||||||||||
Net other realized and unrealized investment (losses) gains | — | (2,233 | ) | — | 3,286 | — | 1,053 | (3,624 | ) | |||||||||||||||||||
Net realized and unrealized investment gains (losses) on funds held - directly managed | 5,521 | (4,269 | ) | 2,140 | (6,354 | ) | 2,856 | (5,627 | ) | 3,433 | ||||||||||||||||||
Net realized and unrealized investment gains (losses) | $ | 167,193 | $ | (24,373 | ) | $ | (133,017 | ) | $ | (255,734 | ) | $ | 115,645 | $ | (297,479 | ) | $ | 371,796 |
(1) | Comparisons of net investment income between periods include the impact of foreign exchange variances. For the three months ended March 31, 2016, net investment income includes foreign exchange impacts of $(2.9) million compared to the three months ended March 31, 2015. |
As at and for the three months ended | As at and for the year ended | |||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | ||||||||||||||||||||||
2016 | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||||||||||||||
Reconciliation of beginning and ending liability for unpaid losses and loss expenses: | ||||||||||||||||||||||||||||
Gross liability at beginning of period | $ | 9,064,711 | $ | 9,522,225 | $ | 9,549,398 | $ | 9,401,397 | $ | 9,745,806 | $ | 9,745,806 | $ | 10,646,318 | ||||||||||||||
Reinsurance recoverable at beginning of period | (189,234 | ) | (202,666 | ) | (202,839 | ) | (196,981 | ) | (214,349 | ) | (214,349 | ) | (267,384 | ) | ||||||||||||||
Net liability at beginning of period | 8,875,477 | 9,319,559 | 9,346,559 | 9,204,416 | 9,531,457 | 9,531,457 | 10,378,934 | |||||||||||||||||||||
Net incurred losses related to: | ||||||||||||||||||||||||||||
Current year | 693,069 | 737,594 | 802,518 | 778,416 | 705,176 | 3,023,704 | 3,122,981 | |||||||||||||||||||||
Prior years | (183,437 | ) | (187,064 | ) | (245,936 | ) | (173,368 | ) | (224,337 | ) | (830,705 | ) | (660,413 | ) | ||||||||||||||
509,632 | 550,530 | 556,582 | 605,048 | 480,839 | 2,192,999 | 2,462,568 | ||||||||||||||||||||||
Change in reserve agreement (1) | 28,224 | (21,879 | ) | — | — | 13,108 | (8,771 | ) | (25,412 | ) | ||||||||||||||||||
Net losses paid | (370,469 | ) | (898,794 | ) | (518,556 | ) | (533,577 | ) | (471,676 | ) | (2,422,603 | ) | (2,798,549 | ) | ||||||||||||||
Effects of foreign exchange rate changes | 95,346 | (73,939 | ) | (65,026 | ) | 70,672 | (349,312 | ) | (417,605 | ) | (486,084 | ) | ||||||||||||||||
Net liability at end of period | 9,138,210 | 8,875,477 | 9,319,559 | 9,346,559 | 9,204,416 | 8,875,477 | 9,531,457 | |||||||||||||||||||||
Reinsurance recoverable at end of period | 192,877 | 189,234 | 202,666 | 202,839 | 196,981 | 189,234 | 214,349 | |||||||||||||||||||||
Gross liability at end of period | $ | 9,331,087 | $ | 9,064,711 | $ | 9,522,225 | $ | 9,549,398 | $ | 9,401,397 | $ | 9,064,711 | $ | 9,745,806 | ||||||||||||||
Breakdown of gross liability at end of period: | ||||||||||||||||||||||||||||
Case reserves | $ | 3,780,317 | $ | 3,716,195 | $ | 3,875,962 | $ | 3,960,022 | $ | 3,975,276 | $ | 3,716,195 | $ | 4,236,038 | ||||||||||||||
Additional case reserves | 215,238 | 190,183 | 194,265 | 220,023 | 229,363 | 190,183 | 253,890 | |||||||||||||||||||||
Incurred but not reported reserves | 5,335,532 | 5,158,333 | 5,451,998 | 5,369,353 | 5,196,758 | 5,158,333 | 5,255,878 | |||||||||||||||||||||
Gross liability at end of period | $ | 9,331,087 | $ | 9,064,711 | $ | 9,522,225 | $ | 9,549,398 | $ | 9,401,397 | $ | 9,064,711 | $ | 9,745,806 | ||||||||||||||
Breakdown of gross liability at end of period by Non-life sub-segment: | ||||||||||||||||||||||||||||
North America | $ | 3,229,569 | $ | 3,147,079 | $ | 3,437,238 | $ | 3,439,780 | $ | 3,317,662 | $ | 3,147,079 | $ | 3,307,948 | ||||||||||||||
Global (Non-U.S.) P&C | 2,101,538 | 2,009,523 | 2,044,735 | 2,053,451 | 2,021,090 | 2,009,523 | 2,175,965 | |||||||||||||||||||||
Global Specialty | 3,691,729 | 3,575,387 | 3,685,691 | 3,676,958 | 3,620,345 | 3,575,387 | 3,769,758 | |||||||||||||||||||||
Catastrophe | 308,251 | 332,722 | 354,561 | 379,209 | 442,300 | 332,722 | 492,135 | |||||||||||||||||||||
Gross liability at end of period | $ | 9,331,087 | $ | 9,064,711 | $ | 9,522,225 | $ | 9,549,398 | $ | 9,401,397 | $ | 9,064,711 | $ | 9,745,806 | ||||||||||||||
Unrecognized time value of non-life reserves (2) | $ | 372,792 | $ | 508,269 | $ | 430,596 | $ | 490,714 | $ | 369,059 | $ | 508,269 | $ | 474,258 | ||||||||||||||
Non-life paid loss ratio data: | ||||||||||||||||||||||||||||
Non-life paid losses to incurred losses ratio | 72.7 | % | 163.3 | % | 93.2 | % | 88.2 | % | 98.1 | % | 110.5 | % | 113.6 | % | ||||||||||||||
Non-life paid losses to net premiums earned ratio | 42.5 | % | 89.7 | % | 46.7 | % | 52.7 | % | 50.4 | % | 59.7 | % | 63.8 | % |
As at and for the three months ended | As at and for the year ended | |||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | ||||||||||||||||||||||
2016 | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||||||||||||||
Reconciliation of beginning and ending policy benefits for life and annuity contracts: | ||||||||||||||||||||||||||||
Gross liability at beginning of period | $ | 2,051,935 | $ | 2,123,028 | $ | 2,087,369 | $ | 1,996,519 | $ | 2,050,107 | $ | 2,050,107 | $ | 1,974,133 | ||||||||||||||
Reinsurance recoverable at beginning of period | (42,773 | ) | (38,744 | ) | (36,752 | ) | (29,247 | ) | (29,495 | ) | (29,495 | ) | (7,022 | ) | ||||||||||||||
Net liability at beginning of period | 2,009,162 | 2,084,284 | 2,050,617 | 1,967,272 | 2,020,612 | 2,020,612 | 1,967,111 | |||||||||||||||||||||
Net incurred losses related to: | ||||||||||||||||||||||||||||
Current year | 219,450 | 229,334 | 254,401 | 272,752 | 254,450 | 1,010,937 | 1,019,240 | |||||||||||||||||||||
Prior years | (14,814 | ) | (12,838 | ) | (6,787 | ) | (12,883 | ) | (14,008 | ) | (46,516 | ) | (19,038 | ) | ||||||||||||||
204,636 | 216,496 | 247,614 | 259,869 | 240,442 | 964,421 | 1,000,202 | ||||||||||||||||||||||
Net losses paid | (187,881 | ) | (254,824 | ) | (182,255 | ) | (231,702 | ) | (166,408 | ) | (835,190 | ) | (780,905 | ) | ||||||||||||||
Effects of foreign exchange rate changes | 19,902 | (36,794 | ) | (31,692 | ) | 55,178 | (127,374 | ) | (140,681 | ) | (165,796 | ) | ||||||||||||||||
Net liability at end of period | 2,045,819 | 2,009,162 | 2,084,284 | 2,050,617 | 1,967,272 | 2,009,162 | 2,020,612 | |||||||||||||||||||||
Reinsurance recoverable at end of period | 43,236 | 42,773 | 38,744 | 36,752 | 29,247 | 42,773 | 29,495 | |||||||||||||||||||||
Gross liability at end of period | $ | 2,089,055 | $ | 2,051,935 | $ | 2,123,028 | $ | 2,087,369 | $ | 1,996,519 | $ | 2,051,935 | $ | 2,050,107 | ||||||||||||||
Life value in force | $ | 191,800 | $ | 204,300 | $ | 175,600 | $ | 146,100 | $ | 109,900 | $ | 204,300 | $ | 145,100 |
For the three months ended | For the year ended | ||||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | |||||||||||||||||||||||
2016 | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | |||||||||||||||||||||||
Prior year net favorable (adverse) reserve development: | |||||||||||||||||||||||||||||
Non-life segment: | |||||||||||||||||||||||||||||
North America | $ | 80,733 | $ | 55,741 | $ | 102,428 | $ | 43,701 | $ | 82,536 | $ | 284,406 | $ | 250,942 | |||||||||||||||
Global (Non-U.S.) P&C | 23,282 | 29,726 | 38,457 | 10,224 | 18,031 | 96,438 | 134,394 | ||||||||||||||||||||||
Global Specialty | 68,827 | 110,940 | 103,584 | 110,045 | 109,675 | 434,244 | 257,696 | ||||||||||||||||||||||
Catastrophe | 10,595 | (9,343 | ) | 1,467 | 9,398 | 14,095 | 15,617 | 17,381 | |||||||||||||||||||||
Total Non-life net prior year reserve development | $ | 183,437 | $ | 187,064 | $ | 245,936 | $ | 173,368 | $ | 224,337 | $ | 830,705 | $ | 660,413 | |||||||||||||||
Non-life segment: | |||||||||||||||||||||||||||||
Net prior year reserve development due to changes in premiums | $ | 19,323 | $ | 16,233 | $ | 13,759 | $ | (2,492 | ) | $ | (3,540 | ) | $ | 23,960 | $ | (37,940 | ) | ||||||||||||
Net prior year reserve development due to all other factors (2) | 164,114 | 170,831 | 232,177 | 175,860 | 227,877 | 806,745 | 698,353 | ||||||||||||||||||||||
Total Non-life net prior year reserve development | $ | 183,437 | $ | 187,064 | $ | 245,936 | $ | 173,368 | $ | 224,337 | $ | 830,705 | $ | 660,413 | |||||||||||||||
Non-life segment: | |||||||||||||||||||||||||||||
Short tail lines of business | $ | 67,056 | $ | 53,967 | $ | 67,357 | $ | 39,295 | $ | 34,749 | $ | 195,367 | $ | 221,171 | |||||||||||||||
Medium tail lines of business | $ | 36,180 | $ | 60,137 | $ | 86,076 | $ | 68,997 | $ | 76,969 | $ | 292,180 | $ | 159,753 | |||||||||||||||
Long tail lines of business | $ | 80,201 | $ | 72,960 | $ | 92,503 | $ | 65,076 | $ | 112,619 | $ | 343,158 | $ | 279,489 | |||||||||||||||
Total Non-life net prior year reserve development by tail (3) | $ | 183,437 | $ | 187,064 | $ | 245,936 | $ | 173,368 | $ | 224,337 | $ | 830,705 | $ | 660,413 | |||||||||||||||
Life and Health segment: | |||||||||||||||||||||||||||||
Net prior year reserve development due to GMDB (1) | $ | 3,536 | $ | 3,354 | $ | (2,348 | ) | $ | 5,626 | $ | 4,977 | $ | 11,610 | $ | 7,163 | ||||||||||||||
Net prior year reserve development due to all other factors (2) | 11,278 | 9,484 | 9,135 | 7,257 | 9,031 | 34,906 | 11,875 | ||||||||||||||||||||||
Total Life and Health net prior year reserve development | $ | 14,814 | $ | 12,838 | $ | 6,787 | $ | 12,883 | $ | 14,008 | $ | 46,516 | $ | 19,038 |
(1) | The guaranteed minimum death benefit (GMDB) reserves are sensitive to volatility in certain referenced global equity markets. At March 31, 2016, a 10% increase in the referenced global equity market would have decreased reserves by approximately $1.5 million, while a 10% decrease in the referenced global equity market would have increased reserves by approximately $2.2 million. |
(2) | Net prior year reserve development due to all other factors includes, but is not limited to loss experience, changes in assumptions and changes in methodology. |
(3) | Short tail lines of business include Agriculture, Proportional Motor, Property, Energy and Catastrophe. Medium tail lines of business include Aviation, Credit/Surety, Marine, Engineering and Multiline. Long tail lines of business include Casualty and Non Proportional Motor. |
January 1, 2016 | October 1, 2015 | July 1, 2015 | April 1, 2015 | January 1, 2015 | ||||||||||||||||||||||||||||||||||||||
Zone | Peril | 1-in-250 year PML | 1-in-500 year PML (Earthquake perils only) | 1-in-250 year PML | 1-in-500 year PML (Earthquake perils only) | 1-in-250 year PML | 1-in-500 year PML (Earthquake perils only) | 1-in-250 year PML | 1-in-500 year PML (Earthquake perils only) | 1-in-250 year PML | 1-in-500 year PML (Earthquake perils only) | |||||||||||||||||||||||||||||||
U.S. Southeast | Hurricane | $ | 580 | $ | 533 | $ | 533 | $ | 746 | $ | 765 | |||||||||||||||||||||||||||||||
U.S. Northeast | Hurricane | 701 | 708 | 708 | 925 | 963 | ||||||||||||||||||||||||||||||||||||
U.S. Gulf Coast | Hurricane | 596 | 577 | 577 | 787 | 850 | ||||||||||||||||||||||||||||||||||||
Caribbean | Hurricane | 180 | 174 | 174 | 177 | 179 | ||||||||||||||||||||||||||||||||||||
Europe | Windstorm | 461 | 544 | 544 | 561 | 606 | ||||||||||||||||||||||||||||||||||||
Japan | Typhoon | 195 | 195 | 195 | 201 | 145 | ||||||||||||||||||||||||||||||||||||
California | Earthquake | 553 | $ | 699 | 469 | $ | 588 | 469 | $ | 588 | 637 | $ | 775 | 609 | $ | 730 | ||||||||||||||||||||||||||
British Columbia | Earthquake | 196 | 358 | 199 | 379 | 199 | 379 | 214 | 390 | 223 | 414 | |||||||||||||||||||||||||||||||
Japan | Earthquake | 335 | 383 | 377 | 421 | 377 | 421 | 390 | 437 | 393 | 440 | |||||||||||||||||||||||||||||||
Australia | Earthquake | 241 | 325 | 236 | 350 | 236 | 350 | 246 | 357 | 305 | 415 | |||||||||||||||||||||||||||||||
New Zealand | Earthquake | 133 | 197 | 161 | 205 | 161 | 205 | 165 | 196 | 194 | 229 |
(1) | The PML estimates are pre-tax and net of retrocession and reinstatement premiums. The peril zones in this disclosure are major peril zones for the industry. The Company has exposures in other peril zones that can potentially generate losses greater than the PML estimates in this disclosure. |
For the three months ended | For the year ended | |||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | ||||||||||||||||||||||
2016 | 2015 | 2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||||||||||||||
Reconciliation of GAAP and non-GAAP measures: | ||||||||||||||||||||||||||||
Beginning of period common shareholders' equity | 6,046,751 | 5,921,387 | 6,226,176 | 6,343,395 | 6,195,160 | 6,195,160 | 5,855,782 | |||||||||||||||||||||
End of period common shareholders' equity | 6,056,435 | 6,046,751 | 5,921,387 | 6,226,176 | 6,343,395 | 6,046,751 | 6,195,160 | |||||||||||||||||||||
Average common shareholders' equity(2) | 6,051,593 | 5,984,069 | 6,073,781 | 6,284,786 | 6,269,278 | 6,120,956 | 6,025,471 | |||||||||||||||||||||
Annualized return on average common shareholders' equity calculated with net income attributable to common shareholders | 13.3 | % | 10.9 | % | (16.0 | )% | (6.6 | )% | 14.8 | % | 0.8 | % | 16.6 | % | ||||||||||||||
Less: | ||||||||||||||||||||||||||||
Annualized net realized and unrealized investment gains (losses), net of tax, on average common shareholders' equity | 9.8 | (1.5 | ) | (8.0 | ) | (13.9 | ) | 6.4 | (4.3 | ) | 4.8 | |||||||||||||||||
Annualized net foreign exchange gains (losses), net of tax, on average common shareholders' equity | 0.6 | (0.2 | ) | (1.0 | ) | (0.3 | ) | (1.0 | ) | (0.7 | ) | (0.8 | ) | |||||||||||||||
Annualized net interest in (losses) earnings of equity method investments, net of tax, on average common shareholders' equity | — | 0.3 | (0.2 | ) | 0.4 | (0.2 | ) | 0.1 | 0.2 | |||||||||||||||||||
Annualized amalgamation termination fee and reimbursement of expenses, on average common shareholders' equity | — | — | (20.7 | ) | — | — | (5.1 | ) | — | |||||||||||||||||||
Withholding tax on inter-company dividends, net of tax, on average common shareholders' equity | — | — | — | — | — | — | (0.1 | ) | ||||||||||||||||||||
Annualized operating return on average common shareholders' equity | 2.9 | % | 12.3 | % | 13.9 | % | 7.2 | % | 9.6 | % | 10.8 | % | 12.5 | % | ||||||||||||||
Net income attributable to PartnerRe | $ | 215,626 | $ | 176,511 | $ | (229,137 | ) | $ | (88,909 | ) | $ | 245,917 | $ | 104,381 | $ | 1,054,974 | ||||||||||||
Less: | ||||||||||||||||||||||||||||
Net realized and unrealized investment gains (losses), net of tax | 148,060 | (22,757 | ) | (121,764 | ) | (217,224 | ) | 100,311 | (261,434 | ) | 286,252 | |||||||||||||||||
Net foreign exchange gains (losses), net of tax | 9,643 | (3,406 | ) | (15,896 | ) | (5,094 | ) | (15,801 | ) | (40,198 | ) | (45,883 | ) | |||||||||||||||
Interest in (losses) earnings of equity method investments, net of tax | (499 | ) | 4,632 | (2,244 | ) | 6,731 | (3,313 | ) | 5,806 | 8,577 | ||||||||||||||||||
Amalgamation termination fee and reimbursement of expenses | — | (315,000 | ) | — | — | (315,000 | ) | — | ||||||||||||||||||||
Withholding tax on inter-company dividends, net of tax | — | — | — | — | — | — | (6,125 | ) | ||||||||||||||||||||
Dividends to preferred shareholders | 14,184 | 14,184 | 14,184 | 14,184 | 14,184 | 56,735 | 56,735 | |||||||||||||||||||||
Operating earnings attributable to PartnerRe common shareholders (1) | $ | 44,238 | $ | 183,858 | $ | 211,583 | $ | 112,494 | $ | 150,536 | $ | 658,472 | $ | 755,418 | ||||||||||||||
(1) See page 13 for the impact of expenses related to the Axis and Exor transactions and the impact of the negotiated earn-out consideration paid to the former shareholders of Presidio Reinsurance Group, Inc on the annualized operating return on average common shareholders' equity. | ||||||||||||||||||||||||||||
(2) Average common shareholders' equity is calculated by using the sum of the beginning of period and end of period common shareholders' equity divided by two. |
March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||
2016 | 2015 | 2015 | 2015 | 2015 | 2014 | |||||||||||||||||||
Reconciliation of GAAP and non-GAAP measures: | ||||||||||||||||||||||||
Total shareholders' equity | $ | 6,910,185 | $ | 6,902,951 | $ | 6,777,349 | $ | 7,082,143 | $ | 7,254,828 | $ | 7,104,411 | ||||||||||||
Less: | ||||||||||||||||||||||||
Preferred shares, aggregate liquidation value | 853,750 | 853,750 | 853,750 | 853,750 | 853,750 | 853,750 | ||||||||||||||||||
Noncontrolling interests | — | 2,450 | 2,212 | 2,217 | 57,683 | 55,501 | ||||||||||||||||||
Common shareholders' equity attributable to PartnerRe | 6,056,435 | 6,046,751 | 5,921,387 | 6,226,176 | 6,343,395 | 6,195,160 | ||||||||||||||||||
Less: | ||||||||||||||||||||||||
Goodwill | 456,380 | 456,380 | 456,380 | 456,380 | 456,380 | 456,380 | ||||||||||||||||||
Intangible assets, net of tax | 86,846 | 90,326 | 93,869 | 98,499 | 103,276 | 105,652 | ||||||||||||||||||
Tangible book value | $ | 5,513,209 | $ | 5,500,045 | $ | 5,371,138 | $ | 5,671,297 | $ | 5,783,739 | $ | 5,633,128 |
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