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The Pembroke, Bermuda-headquartered company's third quarter net income was $566.7 million or $9.44 per share, compared with a net loss of $151.7 million or a loss of $3.01 per share during the year-ago period.
Net income for the quarter included after-tax net realized and unrealized gains on investments of $274.4 million, or $4.64 per share, while net loss for the third quarter of 2008 included after-tax net realized and unrealized losses on investments of $281.1 million or $5.27 per share.
Operating earnings for the third quarter of 2009 were $282.1 million or $4.77 per share, compared with operating earnings of $121.3 million or $2.27 per share in the third quarter of 2008.
On average, thirteen analysts polled by Thomson Reuters estimated earnings of $3.20 per share for the quarter. Analysts' estimates typically exclude special items.
PartnerRe's total revenues for the quarter increased to $1.57 billion from $896.57 billion year-ago. Four analysts had revenue estimates of $838.08 million for the quarter.
Net premiums written for the third quarter was $891.54 million, compared with $869.19 million in the similar quarter last year. Net premiums earned for the quarter increased slightly to $1.1 billion from $1.07 billion in the year-ago period. The company's net investment income declined to $145.35 million from $146.13 million during the comparable period year-ago.
Business segment-wise, the non-life segment reported net premiums written of $733 million for the third quarter of 2009, compared with $723 million year-ago. The combined ratio was 78.1% for the current year's third quarter, compared with 95.5% for the same period a year-ago.
The U.S. business, which represented 32% of total net premiums written for the third quarter, reported net premiums written of $279 million, compared to $264 million in the third quarter last year. Net premiums earned were $312 million in the third quarter of 2009, compared to $276 million for the same period in 2008. The global P&C business, which represents 14% of total net premiums written for the quarter, reported net premiums written of $124 million, compared with $137 million in 2008. Net premiums earned during the quarter were $160 million, compared with $195 million a year-ago.
The company's global Specialty business, which represents 32% of total net premiums written for the quarter, reported net premiums written of $283 million, compared with $274 million in the third quarter a year-ago. Net premiums earned were $295 million, compared to $290 million in the same period in 2008.
The Catastrophe business, which represented 5% of total net premiums written for the quarter, reported net premiums written of $47 million for the third quarter, compared with $48 million in the prior year period. Net premiums earned remained flat year-over-year at $159 million.
The Life segment, which represented 17% of total net premiums written for the third quarter, reported net premiums written of $157 million for the third quarter, compared to $141 million in the third quarter year-ago. The allocated underwriting result for the quarter was $20 million, compared to $9 million in the same period of 2008.
The company's non-life combined ratio for the third quarter of 2009 was 78.1%, compared with 95.5% year-ago.
According to Patrick Thiele, PartnerRe's president & chief executive officer, "PartnerRe had another excellent quarter and first nine months of 2009, with both its reinsurance and capital markets activities performing well.
"As we move toward the end of 2009, the non-life market overall remains unchanged - stable to gradually deteriorating; and without any precipitating events, there will likely be a continuation of those trends in 2010," said Thiele. "Despite that trend, PartnerRe continues to perform well, and we expect that to continue through the remainder of the year and into 2010, barring any unusually large loss events," he added.
Referring to the acquisition of Paris Re of which the company now owns 83% stake and which it expects to completely acquire by year-end 2009, Thiele said, "The integration of Paris Re into the PartnerRe group will provide us with both increased diversification of reinsurance and capital markets risk, and, with expanded capital and resources, significant growth opportunities at a time when industry demand is likely to remain stagnant."
The company declared a quarterly dividend of $0.47 per common share, payable on December 1, 2009, to common shareholders of record on November 20, with the stock trading ex-dividend commencing November 18.
Net income for the first nine months of 2009 was $1.2 billion or a profit of $19.95 per share, compared with a net loss of $48.7 million or a loss of $1.38 per share in the year-ago period. Year-to-date total revenues increased to $3.87 billion from $2.78 billion year-ago.
PRE closed Monday on the New York Stock Exchange at $78.18, down $0.38 or 0.48%. In after hours, the stock gained $2.82 or 3.61%.
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