PartnerRe has reported a net income of $201.4 million for the first quarter of 2016, down from $231.7 million for the same period of 2015.
The reinsurance group reported operating earnings of $44.2 million for the first quarter of 2016, again down from operating earnings of $150.5 million for the first quarter of 2015.
However, PartnerRe also reported expenses of $153 million, including $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) for the quarter.
Gross written premiums (GWP) were down to $1.6 billion for the first quarter of 2016, compared with $1.7 billion for the same period of last year.
The non-life combined ratio was 94.3 percent. The company said that the combined ratio benefited from favourable prior year development of 21.0 points (or $183 million) and that all non-life sub-segments experienced net favourable development from prior accident years during the first quarter of 2016.
Net premiums written of $1.5 billion were down 9 percent in the quarter, compared to the previous year quarter. On a constant foreign exchange basis, net premiums written were down 5 percent, with decreases recorded in all non-life sub-segments, with the exception of the North America sub-segment, and the life and health segment.
PartnerRe's annualised operating return on equity (ROE) for the first quarters of 2016 and 2015 was 6.9 percent and 11.6 percent, respectively, and the annualised net income ROE for the first quarters of 2016 and 2015 was 17.3 percent and 16.8 percent, respectively.
Net investment income of $103 million was down 2 percent in the quarter. On a constant foreign exchange basis, net investment income was up 1 percent.
Emmanuel Clarke, chief executive officer, PartnerRe, said: “We had a solid start to 2016 that culminated with the closing of the EXOR acquisition, which lands us on solid ground and enables us to move forward with our usual focus and determination.
“Our performance for the quarter resulted in an operating ROE of 6.9 percent, which reflects continuing difficult conditions across nearly all reinsurance markets, an absence of major catastrophes and continued favourable reserve development. With our new ownership now set, we look forward to leveraging our strong franchise and serving as a preferred reinsurer to our clients.”
PartnerRe, First Quarter 2016 Results, Insurance, Reinsurance, Bermuda