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PartnerRe Ltd. (PRE) filed Quarterly Report for the period ended 2011-09-30.
Partnerre Ltd. has a market cap of $4.47 billion; its shares were traded at around $65.97 with and P/S ratio of 0.7. The dividend yield of Partnerre Ltd. stocks is 3.6%.
This is the annual revenues and earnings per share of PRE over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of PRE.
Highlight of Business Operations:
Effective January 1, 2011, Management redefined its operating earnings or loss available to common shareholders (operating earnings or loss) calculation to additionally exclude net foreign exchange gains or losses. Management believes that net foreign exchange gains or losses are not indicative of the performance of, and distort trends in, the Company’s business as they predominantly result from general economic and foreign exchange market conditions. In addition, Management redefined its Annualized operating return on beginning diluted book value per common share and common share equivalents outstanding (Operating ROE, previously referred to as operating return on beginning common shareholders’ equity) calculation to measure Operating ROE on a diluted per share basis. Management believes that the redefined Operating ROE incorporates capital management activities while remaining based on the concept of deploying available capital on an annual basis. Operating earnings or loss and Operating ROE for the three months and nine months ended September 30, 2010 have been recast to reflect the Company’s redefined non-GAAP measures.Operating earnings decreased by $138 million from $302 million in the three months ended September 30, 2010 to $164 million in the same period of 2011 primarily due to a decrease in the Non-life underwriting result of $144 million. The decrease in the Non-life underwriting result was driven by net adverse loss development on prior quarters, primarily related to the Japan earthquake and resulting tsunami (Japan Earthquake), a higher level of mid-sized loss activity and lower profitability driven by declines in pricing in certain lines of business. These decreases were partially offset by an increase in net favorable prior year loss development and a decrease in large catastrophic losses that occurred during the three months ended September 30, 2011 compared to 2010.
Operating earnings decreased by $897 million from $393 million in the nine months ended September 30, 2010 to a loss of $504 million in the same period of 2011 mainly due to a decrease in the Non-life underwriting result, driven primarily by large catastrophic losses, and a decrease in net investment income. These decreases were partially offset by an increase in the Life underwriting result and lower charges related to the Company’s voluntary termination plan (see Results of Operations - Overview in Item 7 of Part II of the Company’s Annual Report on Form 10-K for the year ended December 31, 2010 for a discussion of the voluntary termination plan). The factors contributing to the increases or decreases in operating earnings or loss in the three months and nine months ended September 30, 2011 compared to the same periods in 2010 are further described in Overview and Review of Net Income (Loss) below.
Annualized Operating ROE decreased from 18.7% in the three months ended September 30, 2010 to 10.3% in the same period of 2011 and from 7.8% in the nine months ended September 30, 2010 to a loss of 10.6% in the same period of 2011. The decreases in Operating ROE were primarily due to the decreases in operating earnings (loss), which were driven by net adverse development on prior quarters’ catastrophe losses in the three months ended September 30, 2011 and by large catastrophic losses in the nine months ended September 30, 2011. Operating earnings (loss) is described further in Operating earnings or loss available to common shareholders above and in Overview and Review of Net Income (Loss).
The Non-life combined ratio increased from 80.7% and 95.2% in the three months and nine months ended September 30, 2010, respectively, to 93.1% and 126.7% in the same periods of 2011, respectively. The increase in the Non-life combined ratio of 12.4 points during the three months ended September 30, 2011 compared to the same period in 2010 was mainly due to net adverse loss development on prior quarters, primarily related to the Japan Earthquake, a higher level of mid-sized loss activity and lower profitability driven by declines in pricing in certain lines of business. These increases were partially offset by an increase in net favorable prior year loss development and a decrease in large catastrophic losses that occurred during the three months ended September 30, 2011 compared to 2010.
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