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PartnerRe Ltd. Reports Fourth Quarter and Full Year 2016 Results

PEMBROKE, Bermuda--(BUSINESS WIRE)--

PartnerRe Ltd. ("the Company") today reported a net loss attributable to PartnerRe common shareholders of $191 million for the fourth quarter of 2016 compared to a net income for the fourth quarter of 2015 of $162 million. Operating earnings was $125 million for the fourth quarter of 2016, compared to operating earnings of $184 million for the fourth quarter of 2015.

Net income attributable to PartnerRe common shareholders includes net realized and unrealized losses on investments of $388 million in the fourth quarter of 2016, which were largely driven by significant increases in treasury yields, partially offset by narrowing of credit spreads. This compares to a $24 million loss in the fourth quarter of 2015, primarily driven by increases in U.S. risk-free interest rates, partially offset by the narrowing credit spreads and increases in worldwide equity markets.

Net income attributable to PartnerRe common shareholders for the full year 2016 was $387 million compared to $48 million in 2015 primarily due to net realized and unrealized gains on investments in 2016 of $26 million compared to losses of $297 million in 2015.

Operating earnings for the full year 2016 were $289 million, compared to operating earnings of $658 million for 2015 primarily due to a lower Non-life technical result, higher transaction and severance costs and loss on redemption of senior notes. The lower Non-life technical result was primarily driven by lower favorable prior year loss development, higher mid-sized loss activity and increased losses from catastrophes.

Operating earnings is a non-GAAP financial measure which excludes certain net after-tax realized and unrealized investment gains and losses, net after-tax foreign exchange gains and losses, certain net after-tax interest in results of equity method investments, the amalgamation termination fee and reimbursement of expenses paid to Axis Capital in 2015 and net loss on redemption of preferred shares in 2016, and is calculated after the payment of preferred dividends.

Net income or loss and operating earnings attributable to PartnerRe common shareholders, and the associated annualized ROEs, for the fourth quarters and the full years 2016 and 2015 include various non-recurring transaction and severance related costs, which impact period over period comparability as follows:

     

 

 

(In US$ millions, except for percentages)

Non-GAAP measures adjusted for transaction(1)

and severance costs(2), net of tax

  Q4     Full Year
    2016   2015 2016   2015
Operating earnings 151   206 413   749
Annualized operating ROE 9.8 % 13.7 % 6.9 % 12.2 %
Net (loss) income attributable to PartnerRe common shareholders (161 ) 184 517 453
Annualized net (loss) income attributable to PartnerRe common shareholders ROE     (10.5 )%   12.3 %     8.6 %   7.4 %
   

(1)

 

Transaction costs include costs incurred related to the Exor acquisition in 2016; the terminated amalgamation with Axis Capital in 2015; the losses on redemption of senior notes and preferred shares in the fourth quarter of 2016; and the negotiated earn-out consideration paid to the former shareholders of Presidio Reinsurance Group, Inc. in 2015.

(2)

Severance costs include costs incurred associated with the reorganization of the Company's operations and costs related to certain executive changes.

 

Commenting on results, PartnerRe President and Chief Executive Officer Emmanuel Clarke said, “We delivered good operating results in the fourth quarter with an annualized adjusted Operating ROE of 9.8%. The Non-life combined ratio of 89.6%, notwithstanding losses related to Hurricane Matthew, highlights our underwriting discipline while favorable prior year development continues to remain strong. In the current market conditions, we are undertaking the right underwriting actions to better serve our core clients while preserving our long-term capital strength."

Highlights for the fourth quarter of 2016 compared to the same period in 2015 include the following:

Non-Life:

  • Non-Life net premiums written were flat compared to the fourth quarter of 2015 and increased by 2% on a constant currency basis.
  • The Non-Life combined ratio of 89.6% was 3.1 points higher than the ratio reported in the fourth quarter of 2015, of 86.5%, primarily due to losses from Hurricane Matthew in Q4 2016 of $45 million (4.6 points) and lower favorable prior years' reserve development. The decreases were partially offset by lower mid-sized loss activity.
  • The Non-Life combined ratio continued to benefit from strong net favorable development from prior accident years of $172 million (17.6 points) in the P&C and Specialty segments as actual reported losses were below expectations. The combined ratio for the fourth quarter of 2015 included favorable prior year development of $187 million (18.7 points).

Life and Health:

  • Net premiums written were flat, but were up 6% on a constant currency basis primarily driven by new business in the mortality line of business and, to a lessor extent, the health line of business, which saw a marginal increase despite increasing competition.
  • Allocated underwriting result, which includes allocated investment income and other expenses, was $12 million compared to $24 million in the fourth quarter of 2015. This decrease primarily reflects a lower technical result in the health line of business due to an increase in loss ratio in a small number of accounts, mainly related to 2015 and 2016 underwriting years.

Investments:

  • Total net investment return in the fourth quarter of 2016 was negative 1.9%, based on a total net loss of $312 million, which was largely driven by the realized and unrealized investment losses of $388 million, partially offset by net investment income of $105 million. This compares to a positive total net investment return of $88 million, or 0.5%, for the fourth quarter of 2015.
  • The negative total net investment return in the fourth quarter of 2016 was primarily generated by fixed income securities, driven by the significant increase in U.S. risk-free rates (85 basis points on the 10-year US Treasury in the quarter), partially offset by narrowing credit spreads.
  • Net investment income of $105 million was down $3 million, or 3%, compared to the fourth quarter of 2015 mainly reflecting the reduction in risk within the investment portfolio, including the increased allocation to U.S. government fixed income securities and the change in asset mix with a lower amount of higher yielding fixed income securities and dividend yielding equity securities, and lower reinvestment rates. These decreases were partially offset by lower investment expenses following the reorganization of the Company's investment operations.
  • Reinvestment rates are currently 2.7%, which compares to our existing fixed income yield of 2.6%.

Other Income Statement Items:

  • Other expenses of $105 million in the fourth quarter of 2016 and $120 million for same period of 2015, included transaction and severance related costs associated with the reorganization of the Company's operations. Excluding these one-time costs, other expenses were $91 million in the fourth quarter of 2016, compared to $97 million in the same period of 2015.
  • Net foreign exchange gains in the quarter were $48 million ($81 million including the change in currency translation adjustment of $33 million), mainly driven by the strengthening of the U.S. dollar, and acted as a hedge to the mark-to-market losses linked to the increase in risk-free rates.
  • Interest expense was $12 million, in line with the fourth quarter of 2015.
  • On November 1, 2016 the Company redeemed $250 million of senior notes and incurred a $22 million loss on redemption as a result of a make whole payment to the note holders representing the present value of the remaining scheduled payments on the notes following their early redemption.
  • On November 1, 2016, the Company also redeemed $150 million of its Series D and E preferred shares and incurred a $5 million loss on redemption. The preferred dividends of $12 million, excluding the loss on redemption of $5 million, were down $2 million compared to the same period of 2015 as a result of this redemption during the quarter.
  • For the fourth quarter of 2016, the effective tax rate on operating earnings was negative 8.9% (a tax benefit on earnings) mainly due to the geographical split of pretax income and losses recorded in tax jurisdictions with high income tax rates and earnings recorded in jurisdictions with low or nil tax rates. The effective tax rate on non-operating earnings was 15.1% (a tax benefit on losses) for the fourth quarter of 2016 as a result of losses recorded in taxable jurisdictions.

Balance Sheet and Capitalization:

  • Total investments, cash and cash equivalents and funds held – directly managed were $16.9 billion at December 31, 2016, up 2.4% compared to December 31, 2015.
  • The balance sheet continued to be de-risked during the quarter through a partial sale of the principal finance portfolio. Cash and cash equivalents and fixed maturities, which are government issued or investment grade fixed income securities, were $14.8 billion at December 31, 2016, representing 91% of the total cash and cash equivalents and total investments.
  • The average rating and the average duration of the fixed income portfolio at December 31, 2016 was A and 4.9 years respectively, while the average duration of the Company’s liabilities was 5.2 years.
  • Exposure to Euro government bonds ($595 million) and Euro corporate credit ($313 million) remains low, representing 5.3% of the Investment portfolio.
  • Total capital was $8.0 billion at December 31, 2016, up 4.0% compared to December 31, 2015, primarily due to the issuance of Euro 750 million senior debt in September 2016 and net income for the year, partially offset by common dividends paid (including a special dividend paid to former shareholders on the closing of the Exor transaction) and the redemption of $250 million of senior notes and $150 million of preferred shares.
  • Common shareholders' equity attributable to PartnerRe (or book value) and tangible book value were $6.0 billion and $5.5 billion, respectively, at December 31, 2016, down 1.0% and 0.8%, respectively, compared to December 31, 2015 primarily due to common dividends paid, partially offset by net income for the year.
  • During the fourth quarter of 2016, the Company paid a dividend of $160 million to Exor, its parent company.

Cash Flows:

  • Cash provided by operating activities was $129 million in the fourth quarter of 2016 compared to $211 million in the fourth quarter of 2015, which included cash provided by underwriting operations of $29 million in the fourth quarter of 2016, compared to $114 million in the fourth quarter of 2015. This decrease in underwriting cash flow was largely driven by a lower Non-life technical result. The operating cash flow in the fourth quarter of 2016, generated by investment income, was $151 million compared to $131 million for the same period in 2015.
  • Cash provided by investing activities was $207 million in the fourth quarter of 2016, compared to $158 million in the same period in 2015 primary due to proceeds from sales and redemptions exceeding purchases of fixed maturities during the quarter.
  • Cash used in financing activities was $598 million in the fourth quarter of 2016, compared to $43 million in the same period in 2015, largely driven by the redemption of the senior notes and preferred shares and higher dividends paid in the fourth quarter of 2016 compared to 2015.

The data and comments provided above are from, or have been derived from, PartnerRe’s U.S. GAAP consolidated balance sheets as of December 31, 2016 and 2015 and the related consolidated statements of operations for the three months and years ended December 31, 2016 and 2015. The Company has included Supplementary Financial Information below, which includes a reconciliation of GAAP and non-GAAP measures.

_______________________________________

PartnerRe Ltd. is a leading global reinsurer that helps insurance companies reduce their earnings volatility, strengthen their capital and grow their businesses through reinsurance solutions. Risks are underwritten on a worldwide basis through the Company’s three segments: P&C, Specialty, and Life and Health. For the year ended December 31, 2016, total revenues were $5.4 billion. At December 31, 2016, total assets were $21.9 billion, total capital was $8.0 billion and total shareholders’ equity was $6.7 billion. PartnerRe enjoys strong financial strength ratings as follows: A.M. Best A / Moody’s A1 / Standard & Poor’s A+.

PartnerRe on the Internet: www.partnerre.com

Forward-looking statements contained in this press release are based on the Company’s assumptions and expectations concerning future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are subject to significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. PartnerRe’s forward-looking statements could be affected by numerous foreseeable and unforeseeable events and developments such as exposure to catastrophe, or other large property and casualty losses, credit, interest, currency and other risks associated with the Company’s investment portfolio, adequacy of reserves, levels and pricing of new and renewal business achieved, changes in accounting policies, risks associated with implementing business strategies, and other factors identified in the Company’s reports filed or furnished with the Securities and Exchange Commission. In light of the significant uncertainties inherent in the forward-looking information contained herein, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. The Company disclaims any obligation to publicly update or revise any forward-looking information or statements.

 
 

PartnerRe Ltd.

Consolidated Statements of Operations and Comprehensive (Loss) Income (1)

(Expressed in thousands of U.S. dollars)  
(Unaudited)

         

For the three

months ended

December 31,

2016

For the three

months ended

December 31,

2015

For the year

ended

December 31,

2016

For the year

ended

December 31,

2015

Revenues
Gross premiums written $ 1,102,695   $ 1,098,618   $ 5,356,942   $ 5,547,525  
Net premiums written $ 1,067,095 $ 1,063,636 $ 4,953,470 $ 5,229,548
Decrease in unearned premiums 196,958   230,865   16,126   39,630  
Net premiums earned 1,264,053 1,294,501 4,969,596 5,269,178
Net investment income 104,922 107,908 410,864 449,784
Net realized and unrealized investment (losses) gains (388,416 ) (24,373 ) 26,266 (297,479 )
Other income 3,660   1,560   15,232   9,144  
Total revenues 984,219   1,379,596   5,421,958   5,430,627  
Expenses
Losses and loss expenses 778,008 767,026 3,248,091 3,157,420
Acquisition costs 321,441 311,228 1,186,602 1,217,003
Other expenses (2) 104,465 120,389 471,905 790,723
Interest expense 11,837 12,246 48,603 48,988
Loss on redemption of senior notes (3) 22,203 22,203
Amortization of intangible assets 6,156 6,290 25,919 26,593
Net foreign exchange (gains) losses (48,137 ) (6,195 ) (77,515 ) 9,461  
Total expenses 1,195,973   1,210,984   4,925,808   5,250,188  
(Loss) income before taxes and interest in (losses) earnings of equity method investments (211,754 ) 168,612 496,150 180,439
Income tax (benefit) expense (66,445 ) (3,326 ) 25,923 79,664
Interest in (losses) earnings of equity method investments (28,388 ) 4,811   (22,919 ) 6,375  
Net (loss) income (173,697 ) 176,749 447,308 107,150
Net income attributable to noncontrolling interests   (238 )   (2,769 )
Net (loss) income attributable to PartnerRe (173,697 ) 176,511 447,308 104,381
Preferred dividends 12,492 14,184 55,043 56,735
Loss on redemption of preferred shares 4,908     4,908    
Net (loss) income attributable to PartnerRe common shareholders $ (191,097 ) $ 162,327   $ 387,357   $ 47,646  
Comprehensive (loss) income attributable to PartnerRe $ (143,707 ) $ 162,055   $ 456,022   $ 55,181  
 

(1)

 

On March 18, 2016, Exor N.V. acquired 100% of the Company's common shares. As such, per share data is no longer meaningful and has been excluded. PartnerRe common shares are no longer traded on the NYSE.

(2)

Other expenses for the three months ended December 31, 2016 and 2015 include $14 million and $24 million, respectively, of transaction and severance related costs associated with the Exor acquisition, the terminated amalgamation with Axis, the reorganization of the Company's operations, and certain executive changes. Other expenses for the year ended December 31, 2016 include $128 million of transaction and severance related costs associated with the reorganization of the Company's business units, investment operations and certain executive changes. Other expenses for the year ended December 31, 2015 include $386 million of costs related to the Exor transaction and terminated amalgamation with Axis, in addition to $25 million related to the negotiated earn-out consideration paid to the former shareholders of Presidio Reinsurance Group, Inc.

(3)

Loss on redemption of senior notes for the three months and year ended December 31, 2016 of $22 million relates to a make-whole payment paid to the note holders, representing the present value of the remaining scheduled payments on the notes following their early redemption.

 
 

PartnerRe Ltd.

Consolidated Balance Sheets

(Expressed in thousands of U.S. dollars, except parenthetical share data)

(Unaudited)

     
December 31, December 31,
2016 2015
Assets
Investments:
Fixed maturities, at fair value $ 13,432,501 $ 13,448,262
Short-term investments, at fair value 21,697 46,688
Equities, at fair value 38,626 443,861
Other invested assets 1,075,637   399,204  
Total investments 14,568,461 14,338,015
Funds held – directly managed 511,324 539,743
Cash and cash equivalents 1,773,328 1,577,097
Accrued investment income 112,580 141,672
Reinsurance balances receivable 2,492,069 2,428,020
Reinsurance recoverable on paid and unpaid losses 331,704 282,916
Funds held by reinsured companies 685,069 657,815
Deferred acquisition costs 597,239 629,372
Deposit assets 74,273 88,152
Net tax assets 194,170 102,596
Goodwill 456,380 456,380
Intangible assets 107,092 133,011
Other assets 35,105   31,254  
Total assets $ 21,938,794   $ 21,406,043  
Liabilities
Non-life reserves $ 8,985,434 $ 9,064,711
Life and health reserves 1,984,096 2,051,935
Unearned premiums 1,623,796 1,644,757
Other reinsurance balances payable 281,973 246,089
Deposit liabilities 15,026 44,420
Net tax liabilities 166,113 218,652
Accounts payable, accrued expenses and other 849,572 411,539
Debt related to senior notes 1,273,883 750,000
Debt related to capital efficient notes 70,989   70,989  
Total liabilities 15,250,882   14,503,092  
Shareholders’ Equity
Common shares (2016, par value $0.00000001; issued: 100,000,000 shares; 2015, par value $1.00; issued: 87,237,220 shares) 87,237
Preferred shares (par value $1.00; issued and outstanding: 2016, 28,169,062 shares; 2015, 34,150,000 shares; aggregate liquidation value: 2016, $704,227; 2015, $853,750) 28,169 34,150
Additional paid-in capital 2,396,530 3,982,147
Accumulated other comprehensive loss (74,569 ) (83,283 )
Retained earnings 4,337,782 6,146,802
Common shares held in treasury, at cost (2016, nil shares; 2015, 39,303,068 shares)   (3,266,552 )
Total shareholders’ equity attributable to PartnerRe 6,687,912 6,900,501
Noncontrolling interests   2,450  
Total shareholders’ equity 6,687,912   6,902,951  
Total liabilities and shareholders’ equity $ 21,938,794   $ 21,406,043  
 
 

PartnerRe Ltd.

Condensed Consolidated Statements of Cash Flows

(Expressed in millions of U.S. dollars)

(Unaudited)

       
For the three months ended For the year ended
December 31,   September 30,   June 30,   March 31,   December 31, December 31,   December 31,
2016 2016 2016 2016 2015 2016 2015
Net cash provided by operating activities:
Underwriting operations $ 29 $ 95 $ (43 ) $ (5 ) $ 114 $ 75 $ 265
Investment income 151 119 130 132 131 531 554
Taxes and foreign exchange and other (1) (51 ) (17 ) (59 ) (35 ) (34 ) (161 ) (500 )
Net cash provided by operating activities $ 129   $ 197   $ 28   $ 92   $ 211   $ 445   $ 319  
Net cash provided by (used in) investing activities 207 (811 ) 232 338 158 (34 ) 295
Net cash (used in) provided by financing activities (598 ) 723 (16 ) (263 ) (43 ) (153 ) (309 )
Effect of foreign exchange rate changes on cash (44 ) 13   (37 ) 6   (5 ) (62 ) (41 )
(Decrease) increase in cash and cash equivalents (306 ) 122 207 173 321 196 264
Cash and cash equivalents - beginning of period 2,079   1,957   1,750   1,577   1,256   1,577   1,313  
Cash and cash equivalents - end of period $ 1,773   $ 2,079   $ 1,957   $ 1,750   $ 1,577   $ 1,773   $ 1,577  
 

(1)

Taxes and foreign exchange and other for the year ended December 31, 2015 include the amalgamation termination fee and reimbursement of expenses paid to Axis Capital of $315 million.

 
 

PartnerRe Ltd.

Consolidated Statements of Comprehensive (Loss) Income

(Expressed in thousands of U.S. dollars)

(Unaudited)

       
For the three months ended For the year ended
December 31,   December 31, December 31,   December 31,
2016 2015 2016 2015
Net (loss) income attributable to PartnerRe $ (173,697 ) $ 176,511 $ 447,308 $ 104,381
Change in currency translation adjustment 33,022 (12,119 ) 12,202 (46,055 )
Change in net unrealized gains or losses on investments, net of tax (959 ) (216 ) (1,579 ) (860 )
Change in unfunded pension obligation, net of tax (2,073 ) (2,121 ) (1,909 ) (2,285 )
Comprehensive (loss) income attributable to PartnerRe $ (143,707 ) $ 162,055   $ 456,022   $ 55,181  
 
 

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

   
For the three months ended December 31, 2016
         

P&C

segment

Specialty

segment

Total

Non-life

Life

and Health

segment

Corporate

and Other

Total
Gross premiums written $ 397 $ 407 $ 804 $ 299 $ $ 1,103
Net premiums written $ 394 $ 389 $ 783 $ 284 $ $ 1,067
Decrease in unearned premiums 144   45   189   8     197  
Net premiums earned $ 538 $ 434 $ 972 $ 292 $ $ 1,264
Losses and loss expenses (315 ) (214 ) (529 ) (249 ) (778 )
Acquisition costs (156 ) (133 ) (289 ) (32 )   (321 )
Technical result $ 67 $ 87 $ 154 $ 11 $ $ 165
Other income 3 3
Other expenses (54 ) (17 ) (34 ) (105 )
Underwriting result $ 100 $ (3 ) n/a $ 63
Net investment income 15   90   105  
Allocated underwriting result (1) $ 12 n/a n/a
Net realized and unrealized investment losses (388 ) (388 )
Interest expense (12 ) (12 )
Loss on redemption of senior notes (22 ) (22 )
Amortization of intangible assets (6 ) (6 )
Net foreign exchange gains 48 48
Income tax benefit 66 66
Interest in losses of equity method investments (28 ) (28 )
Net loss n/a $ (174 )
Loss ratio (2) 58.4 % 49.4 % 54.4 %
Acquisition ratio (3) 29.1   30.6   29.7  
Technical ratio (4) 87.5 % 80.0 % 84.1 %
Other expense ratio (5) 5.5  
Combined ratio (6) 89.6 %
 
 
For the three months ended December 31, 2015
 

P&C

segment

Specialty

segment

Total

Non-life

Life

and Health

segment

Corporate

and Other

Total
Gross premiums written $ 380 $ 421 $ 801 $ 298 $ $ 1,099
Net premiums written $ 377 $ 403 $ 780 $ 284 $ $ 1,064
Decrease in unearned premiums 176   46   222   8     230  
Net premiums earned $ 553 $ 449 $ 1,002 $ 292 $ $ 1,294
Losses and loss expenses (287 ) (264 ) (551 ) (216 ) (767 )
Acquisition costs (150 ) (110 ) (260 ) (51 )   (311 )
Technical result $ 116 $ 75 $ 191 $ 25 $ $ 216
Other income (loss) 2 (1 ) 1
Other expenses (56 ) (17 ) (47 ) (120 )
Underwriting result $ 135 $ 10 n/a $ 97
Net investment income 14   94   108  
Allocated underwriting result (1) $ 24 n/a n/a
Net realized and unrealized investment losses (24 ) (24 )
Interest expense (12 ) (12 )
Amortization of intangible assets (6 ) (6 )
Net foreign exchange gains 6 6
Income tax benefit 3 3
Interest in earnings of equity method investments 5   5  
Net income n/a $ 177  
Loss ratio (2) 51.9 % 58.7 % 54.9 %
Acquisition ratio (3) 27.2   24.5   26.0  
Technical ratio (4) 79.1 % 83.2 % 80.9 %
Other expense ratio (5) 5.6  
Combined ratio (6) 86.5 %
 

(1)

Allocated underwriting result is defined as net premiums earned, other income or loss and allocated net investment income less life policy benefits, acquisition costs and other expenses.

(2)

Loss ratio is obtained by dividing losses and loss expenses by net premiums earned.

(3)

Acquisition ratio is obtained by dividing acquisition costs by net premiums earned.

(4)

Technical ratio is defined as the sum of the loss ratio and the acquisition ratio.

(5)

Other expense ratio is obtained by dividing other expenses by net premiums earned.

(6)

Combined ratio is defined as the sum of the technical ratio and the other expense ratio.

 
 

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

   
For the year ended December 31, 2016
         

P&C

segment

Specialty

segment

Total

Non-life

Life

and Health

segment

Corporate

and Other

Total
Gross premiums written $ 2,269 $ 1,920 $ 4,189 $ 1,168 $ $ 5,357
Net premiums written $ 2,061 $ 1,776 $ 3,837 $ 1,117 $ $ 4,954
Decrease (increase) in unearned premiums 25   (9 ) 16       16  
Net premiums earned $ 2,086 $ 1,767 $ 3,853 $ 1,117 $ $ 4,970
Losses and loss expenses (1,248 ) (1,073 ) (2,321 ) (927 ) (3,248 )
Acquisition costs (556 ) (500 ) (1,056 ) (131 )   (1,187 )
Technical result $ 282 $ 194 $ 476 $ 59 $ $ 535
Other income 2 10 3 15
Other expenses (229 ) (66 ) (177 ) (472 )
Underwriting result $ 249 $ 3 n/a $ 78
Net investment income 58   353   411  
Allocated underwriting result (1) $ 61 n/a n/a
Net realized and unrealized investment gains 26 26
Interest expense (49 ) (49 )
Loss on redemption of senior notes (22 ) (22 )
Amortization of intangible assets (26 ) (26 )
Net foreign exchange gains 78 78
Income tax expense (26 ) (26 )
Interest in losses of equity method investments (23 ) (23 )
Net income n/a $ 447  
Loss ratio (2) 59.8 % 60.8 % 60.3 %
Acquisition ratio (3) 26.7   28.3   27.4  
Technical ratio (4) 86.5 % 89.1 % 87.7 %
Other expense ratio (5) 5.9  
Combined ratio (6) 93.6 %
 
 
For the year ended December 31, 2015
 

P&C

segment

Specialty

segment

Total

Non-life

Life

and Health

segment

Corporate

and Other

Total
Gross premiums written $ 2,371 $ 1,906 $ 4,277 $ 1,271 $ $ 5,548
Net premiums written $ 2,236 $ 1,786 $ 4,022 $ 1,208 $ $ 5,230
Decrease in unearned premiums 4   34   38   1     39  
Net premiums earned $ 2,240 $ 1,820 $ 4,060 $ 1,209 $ $ 5,269
Losses and loss expenses (1,129 ) (1,064 ) (2,193 ) (964 ) (3,157 )
Acquisition costs (570 ) (494 ) (1,064 ) (153 )   (1,217 )
Technical result $ 541 $ 262 $ 803 $ 92 $ $ 895
Other income 6 3 9
Other expenses (219 ) (63 ) (509 ) (791 )
Underwriting result $ 584 $ 35 n/a $ 113
Net investment income 59   391   450  
Allocated underwriting result (1) $ 94 n/a n/a
Net realized and unrealized investment losses (297 ) (297 )
Interest expense (49 ) (49 )
Amortization of intangible assets (27 ) (27 )
Net foreign exchange losses (9 ) (9 )
Income tax expense (80 ) (80 )
Interest in earnings of equity method investments 6   6  
Net income n/a $ 107  
Loss ratio (2) 50.4 % 58.5 % 54.0 %
Acquisition ratio (3) 25.4   27.1   26.2  
Technical ratio (4) 75.8 % 85.6 % 80.2 %
Other expense ratio (5) 5.4  
Combined ratio (6) 85.6 %
 
 

PartnerRe Ltd.

Investment Portfolio

(Expressed in millions of U.S. dollars)

(Unaudited)

                       
December 31, September 30, June 30, March 31, December 31, December 31,
2016 2016 2016 2016 2015 2014
Investments:
Fixed maturities
U.S. government $ 3,489 24 % $ 2,924 19 % $ 3,408 24 % $ 2,690 19 % $ 2,810 20 % $ 2,277 15 %
U.S. government sponsored enterprises 52 104 1 104 1 105 1 63 39
U.S. states, territories and municipalities 685 5 785 5 801 6 780 5 778 5 531 3
Non-U.S. sovereign government, supranational and government related 1,136 8 1,185 8 1,307 9 1,197 9 1,333 9 1,976 13
Corporates 5,705 39 5,900 40 4,887 34 4,978 36 5,086 36 5,604 37
Mortgage/asset-backed securities 2,365   16   2,800   19   2,536   18   3,270   24   3,378   24   3,492   23  
Total fixed maturities 13,432 92 13,698 92 13,043 92 13,020 94 13,448 94 13,919 91
Short-term investments 22 29 16 34 47 25
Equities 39 42 39 324 2 444 3 1,057 7
Other invested assets 1,076   8   1,142   8   1,138   8   459 ...