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PartnerRe Ltd. (NYSE, Euronext: PRE) today reported net income of $486.7 million, or $7.53 per share for the third quarter of 2012. This net income includes net after-tax realized and unrealized gains on investments of $221.8 million, or $3.55 per share. Net income for the third quarter of 2011 was $180.1 million, or $2.43 per share, including net after-tax realized and unrealized gains on investments of $6.2 million, or $0.09 per share. The Company recorded operating earnings of $244.4 million, or $3.90 per share, for the third quarter of 2012. This compares to operating earnings of $164.5 million, or $2.41 per share, for the third quarter of 2011.
Net income for the first nine months of 2012 was $1,023.0 million, or $15.19 per share. This net income includes net after-tax realized and unrealized gains on investments of $399.4 million, or $6.21 per share. Net loss for the first nine months of 2011 was $502.6 million, or $7.88 per share, including net after-tax realized and unrealized losses on investments of $41.3 million, or $0.61 per share. Operating earnings for the first nine months of 2012 were $568.1 million, or $8.84 per share. This compares to an operating loss of $503.9 million, or $7.43 per share, for the first nine months of 2011.
Operating earnings or loss excludes net after-tax realized and unrealized investment gains and losses, net after-tax foreign exchange gains and losses, and certain net after-tax interest in results of equity investments, 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 for the third quarter of 2012, PartnerRe President & Chief Executive Officer Costas Miranthis said, “We had an excellent third quarter, generating an operating return on equity of 18%, driven by strong underwriting results and below average large loss experience. All in for the first nine months of 2012, our solid underwriting performance resulted in a Non-life combined ratio of 85.1% and an operating return on equity of 14%. While net investment income reflects the continued difficult investment environment, we recorded significant gains in our investment portfolio due to tightening credit spreads, improved equity markets and lower risk free rates. As a result we grew our book value per share over 8% in the quarter and 17% year-to-date.”