PEMBROKE, Bermuda, October 27, 2014 — PartnerRe Ltd. (NYSE: PRE) today reported net income of $182.2 million, or $3.60 per share for the third quarter of 2014. This includes net after-tax realized and unrealized losses on investments of $35.4 million, or $0.70 per share. Net income for the third quarter of 2013 was $319.2 million, or $5.84 per share, including net after-tax realized and unrealized losses on investments of $1.3 million, or $0.03 per share. The Company reported operating earnings of $226.7 million, or $4.47 per share, for the third quarter of 2014. This compares to operating earnings of $311.2 million, or $5.70 per share, for the third quarter of 2013.
Net income for the first nine months of 2014 was $735.5 million, or $14.26 per share. This includes net after-tax realized and unrealized gains on investments of $204.1 million, or $3.95 per share. Net income for the first nine months of 2013 was $339.4 million, or $5.93 per share, including net after-tax realized and unrealized losses on investments of $219.0 million, or $3.83 per share. Operating earnings for the first nine months of 2014 were $537.1 million, or $10.42 per share. This compares to operating earnings of $564.3 million, or $9.86 per share, for the first nine months of 2013.
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 the loss on redemption of preferred shares, and is calculated after the payment of preferred dividends. All references to per share amounts in the text of this press release are on a fully diluted basis.
Commenting on results, PartnerRe President & Chief Executive Officer Costas Miranthis said, “I am very pleased with our third quarter results. While the absence of major catastrophe losses and the continued favorable reserve development were important factors in our operating performance, the foundation of these results is our seasoned diversified portfolio. Our strong operating results allowed us to absorb some volatility in investment markets and continue on our path of compounding book value per share.”
Mr. Miranthis added, “There has been no change in our view of the current competitive environment. We continue to see current conditions as challenging, but we are confident in our ability to identify opportunities to create value for our shareholders over the long-term.”