Bermuda-based PartnerRe Ltd. reported net income, which includes capital gains and losses on investments, of $104.5 million, or $1.84 per share on a fully diluted basis, for the quarter ended December 31, 2003. Net income for the fourth quarter of 2002, including a net after-tax realized gain on investments of $6.3 million or $0.12 per share, was $88.4 million or $1.58 per share.
Operating earnings, which are calculated after payment of preferred dividends, for the fourth quarter of 2003 were $90.3 million or $1.67 per share on a fully diluted basis, compared to operating earnings of $77.0 million, or $1.46 per share, for the fourth quarter of 2002.
For the year ended December 31, 2003, net income was $467.7 million, or $8.13 per share. This includes a net after-tax realized gain on investments of $80.0 million or $1.48 per share. Net income for the full year 2002, including a net after-tax realized loss on investments of $16.7 million or $0.32 per share, was $190.3 million or $3.28 per share. Operating earnings for the year ended December 31, 2003 were $358.3 million or $6.65 per share. This compares to operating earnings of $187.0 million, or $3.60 per share for the full year 2002.
Other highlights noted in the announcement included:
— Full Year Book Value Growth of 25 percent to $42.48
— Full Year Net Premium Written Growth of 35 percent
— Full year Net Income ROE of 24 percent; Operating ROE of 20 percent
— An Increase of 10 percent in the annual dividend to $1.36 per common share
Commenting on the 2003 results, PartnerRe President & CEO, Patrick Thiele, stated: “We had another strong quarter to finish 2003, our tenth anniversary year, well ahead of plan. We had very strong premium growth, excellent underwriting profitability, and generated in excess of $1.1 billion of operating cash flow. We had a full year operating return on equity of 20%, affirming our leadership position as one of the world’s most profitable reinsurers. We also grew book value by 25% to year-end shareholders’ equity of $2.6 billion, again underscoring the financial strength and stability of our Company.”
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