) first-quarter 2013 operating earnings per share of $3.39
noticeably topped the Zacks Consensus Estimate of $2.47 and the
year-ago earnings of $2.76. Operating net income escalated 11.2%
year over year to $202.1 million.
Operating earnings were calculated after payment of preferred
dividends. This also excluded after-tax net realized and
unrealized investment gain of 20 cents per share and interest
income of 1 cent per share from equity investments in the
reported quarter, which was offset by net foreign exchange loss
of 1 cent per share and a loss on redemption of preferred shares
of 15 cents.
Including these items, GAAP net income for PartnerRe stood at
$210.5 million or $3.53 per share against $344.7 million or $5.24
per share in the year-ago quarter.
PartnerRe's total revenue inched down 2.6% to $1.3 billion
from $1.33 billion in the year-ago quarter. However, total
revenue edged past the Zacks Consensus Estimate of $1.29
This included net premiums earned of $1.15 billion (up 15.9%
year over year), net investment income of $123.7 million (down
15.8% year over year), pre-tax net realized and unrealized
investment gains of $22.9 million against $192.7 million in the
year-ago quarter and other income of $3.9 million, up from $2.7
million in the year-ago period. Meanwhile, net premiums written
increased 11.1% year over year to $1.64 billion.
During the reported quarter, total expense surged 13% year
over year to $1.03 billion. Non-life combined ratio also
recovered to 81.7% from 84.7% in the year-ago period. This
reflects 19.8 points or $183 million related to net favourable
development on prior accident years across most non-life
Moreover, technical ratio improved across most non-life
segments. The technical result for the reported quarter was a
positive of $251 million, improving 24.3% from the year-ago
As of Mar 31, 2013, PartnerRe's total assets were $23.14
billion, up from $22.98 billion at 2012-end. Total investments,
cash and funds held and directly managed stood at $17.7 billion,
down 1.7% from $18 billion at 2012-end. As of Mar 31, 2013, total
capital was $7.7 billion (in line with 2012-end) and total
shareholder equity was $6.95 billion, up from $6.93 billion at
However, PartnerRe's net non-life loss and loss expense
reserves reduced by 4% to $10 billion from 2012-end, primarily
due to the impact of catastrophic events during 2011 and 2012.
The company's book value per common share improved 2.1% to
$102.96, compared with $100.84 at the end of 2012.
Annualized operating ROE soared to 13.5% in the reported
quarter from 7.3% at the end of the prior quarter, while
annualized net income ROE stood at 14%, significantly higher than
7.4% in the prior quarter.
Share Repurchase Update
On Mar 6, 2013, the board approved a stock repurchase
authorization of up to 6.0 million shares, effective immediately.
This replaced the previous authorization of 6.0 million shares
that was approved in Aug 2012.
Accordingly, the company bought back about 1.8 million shares
for $160 million during the reported quarter. Moreover, an
additional 0.45 million shares have been repurchased for $41
million so far in the second quarter of 2013, until Apr 29, 2013,
leaving about 4.7 million shares available for repurchases under
the current authorization.
Concurrently, the board of PartneRe declared a regular
quarterly dividend of 64 cents per share, which is payable on May
31, 2013, to shareholders of record as on May 20, 2013.
On Feb 4, 2013, the board of PartneRe hiked its regular
dividend by 3% to 64 cents per share from the prior payout of 62
cents. The hiked dividend was paid on Mar 1, 2013, to the
shareholders of record as on Feb 19, 2013.
Along with PartnerRe, other strong performers in the insurance
Hilltop Holdings Inc.
). All these stocks carry a Zacks Rank #1 (Strong Buy).
CHUBB CORP (CB): Free Stock Analysis Report
HILLTOP HLDGS (HTH): Free Stock Analysis
MONTPELIER RE (MRH): Free Stock Analysis
PARTNERRE LTD (PRE): Free Stock Analysis
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