PartnerRe and AXIS Capital Holdings Ltd. won’t be holding their merger shareholder vote until August 7. In the meanwhile, they’ve released preliminary 2015 second-quarter results, underscoring the benefits of forming a stronger, combined entity to withstand market challenges.
PartnerRe, for example, disclosed a Q2 net loss of between $95 million and $115 million, impacted by “mark-to-market” losses on investments. The net loss per diluted share will be between $2.01 and $2.41, it said. This was impacted, in part, by expenses relating to the AXIS merger deal, which has been delayed by an unsolicited $6.8 billion bid for PartnerRe from Italian investment firm EXOR SpA.
AXIS, meanwhile, has not not yet disclosed net income/losses. It booked Q2 operating income of between $91 million and $97 million, impacted, in part by catastrophe and weather-related pre-tax net losses of $39 million stemming from weather events in the U.S.A. and Australia.
AXIS added that large losses in its insurance marine business also contributed about $40 million in pre-tax net losses, about $33 million above its historical annual average for this particular line of business. AXIS blamed “energy offshore events” which will likely result in insured industry losses above $1.5 billion. At the same time, AXIS said that the marine line remains “one of our most profitable lines” and has delivered a combined ration below 80 over the last 5 years.
PartnerRe plans to report its final unaudited second quarter results after the market closes on July 27. AXIS plans to do the same thing a day later, on July 28.
For now, here are other highlights of their preliminary Q2 results:
PartnerRe
AXIS Capital Holdings
Sources: PartnerRe, AXIS Capital Holdings