PartnerRe profits hike; benefits from investment gains
Bermuda-based PartnerRe has posted a strong set of results for 2014, as its profits benefited from investment gains.
Its net profits hit $998.2 million compared with $597.0 million in 2013, largely boosted by net after-tax realised and unrealised gains on investments of $286.3 million.
The company’s gross written premiums increased to $5.9 billion compared with $5.5 billion a year earlier. Its operating earnings for the full year 2014 were also strong, however, hitting $755.4 million compared with $721.7 million a year earlier – a result that translates into $14.76 per share and represents a record annual high for PartnerRe.
David Zwiener, the interim CEO of PartnerRe, said: “We had an excellent year in 2014, posting an operating return on equity of 13.5 percent, above our long-term average. While financial markets remained somewhat volatile during the year, we realised sizeable gains in our investment portfolio, which when combined with the strong operating results, culminated in us delivering dividend-adjusted tangible book value growth in excess of 19 percent. These results are particularly gratifying given the very difficult reinsurance operating environment.
“Last week we announced a deal with AXIS Capital to combine the two companies as a reinsurance and specialty insurance market leader. We are very excited about this transaction. While both PartnerRe and AXIS are strong, well-positioned, successful companies in their own right, the combination of the two only enhances those strengths and accelerates our strategies.
“Together, we will have greater scale, with a more efficient global network, even stronger underwriting teams, an expanded underwriting platform, and a greater ability to deliver the best service to our clients, while creating long-term value for our shareholders.”