PartnerRe Bans Earnings Call Questions on EXOR’s $6.4B Bid

PartnerRe Ltd., the reinsurer that agreed to combine with Axis Capital Holdings Ltd., said it would refuse to answer questions on its first-quarter earnings call about the unsolicited $6.4 billion buyout offer from EXOR SpA.

PartnerRe’s board is evaluating the cash offer and will complete its review in “due course,” Robin Sidders of the investor-relations operation, said in the call Tuesday. “Given that the review process is ongoing, and the purpose of today’s call is to discuss our financial results, we will not be taking any questions at the conclusion of the prepared remarks as we cannot comment further on this matter at this time.”

The Bermuda-based reinsurer reported net income of $231.7 million, or $4.76 per share for the first quarter of 2015. The figure includes net after-tax realized and unrealized gains on investments of $100.3 million, or $2.06 per share.

By comparison net income for the first quarter of 2014 was $295.7 million, or $5.61 per share, including net after-tax realized and unrealized gains on investments of $115.8 million, or $2.20 per share.

PartnerRe said its 2015 first quarter results versus the same period in 2014 came in as follows:

• Net premiums written of $1.7 billion were down 5 percent. On a constant foreign exchange basis, net premiums written were up 1 percent driven by the Life and Health segment and modest increases in the Catastrophe and Global (Non-U.S.) P&C Non-life sub-segments. These increases were almost entirely offset by a decrease in the North America Non-life sub-segment.
• Net premiums earned of $1.2 billion were down 2 percent. On a constant foreign exchange basis, net premiums earned were up 3 percent primarily due to the Life and Health segment and the earning of business written in prior periods in the Global Specialty Non-life sub-segment. These increases were partially offset by a decrease in the North America Non-life sub-segment.
• The Non-life combined ratio was 82.8 percent. The combined ratio benefited from favorable prior year development of 24.0 points (or $224 million). All Non-life sub-segments experienced net favorable development from prior accident years during the first quarter of 2015.
• Net investment income of $105 million was down 10 percent, or 8 percent on a constant foreign exchange basis, primarily driven by lower reinvestment rates.

PartnerRe reported other expenses of $125 million include pre-tax costs of $31 million related to its Axis merger agreement, or $0.63 per diluted share, pre-tax.

*Financial results issued by PartnerRe were added to this report.