PEMBROKE, Bermuda–(BUSINESS WIRE)– PartnerRe Ltd. today reported net income of $201.4 million for the first quarter of 2016, or an annualized net income ROE of 13.3%. This includes net after-tax realized and unrealized gains on investments of $148.1 million. Net income for the first quarter of 2015 was $231.7 million, or an annualized net income ROE of 14.8%, including net after-tax realized and unrealized gains on investments of $100.3 million. The Company reported operating earnings of $44.2 million for the first quarter of 2016, or an annualized operating ROE of 2.9%. This compares to operating earnings of $150.5 million for the first quarter of 2015, or an annualized operating ROE of 9.6%.
Operating earnings and net income for the first quarters of 2016 and 2015 include certain after-tax transaction related costs of $60.0 million and $30.9 million, respectively. Adjusting for these after-tax transaction related costs, the annualized operating ROE for the first quarters of 2016 and 2015 was 6.9% and 11.6%, respectively, and the annualized net income ROE for the first quarters of 2016 and 2015 was 17.3% and 16.8%, respectively.
Operating earnings or loss 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, and is calculated after the payment of preferred dividends.
Commenting on results, PartnerRe Chief Executive Officer Emmanuel Clarke 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%, which reflects continuing difficult conditions across nearly all reinsurance markets, an absence of major catastrophes and continued favorable 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.”