Exhibit | Description of Exhibit | ||
99.1 | Press Release and Supplementary Financial Information – PartnerRe Ltd. fourth quarter results, dated March 2, 2020 | ||
PartnerRe Ltd. | ||||||||
(Registrant) | ||||||||
Date: | March 2, 2020 | By: | /s/ Mario Bonaccorso | |||||
Name: Mario Bonaccorso | ||||||||
Title: Chief Financial Officer |
Exhibit | Description of Exhibit | ||
99.1 | Press Release and Supplementary Financial Information – PartnerRe Ltd. fourth quarter results, dated March 2, 2020 | ||
▪ | Net loss attributable to common shareholder of $108 million for the quarter (net income of $890 million for the full year 2019) and decline in book value to common shareholder of 1.1% in the quarter (16.4% increase for the full year, excluding dividends on common shares) |
▪ | Non-life combined ratio of 113.8% during the quarter (100.3% for the full year), including $133 million pre-tax losses (9.8 points) from Typhoon Hagibis and $82 million technical loss (5.3 points) in the agriculture line of business from higher attritional losses on the current accident year. Non-life net premiums written increased 16% to $1.14 billion for the quarter (18% increase for the year to $5.44 billion) |
▪ | Life and Health loss, including underwriting result and allocated net investment income, of $3 million for the quarter ($73 million profit for the year). Life and Health net premiums written increased 21% to $377 million (21% increase for the year to $1.47 billion) |
▪ | Total investment return of $208 million (1.2%) for the quarter, driven by $108 million net investment income (up 4% compared to the prior year) and $159 million net unrealized investment gains on equities |
PartnerRe Ltd. Wellesley House, 5th Floor 90 Pitts Bay Road Pembroke, Bermuda HM 08 | Telephone +1 441 292 0888 Fax +1 441 292 6080 www.partnerre.com | 1 |
PartnerRe Ltd. Wellesley House, 5th Floor 90 Pitts Bay Road Pembroke, Bermuda HM 08 | Telephone +1 441 292 0888 Fax +1 441 292 6080 www.partnerre.com | 2 |
▪ | Non-life net premiums written for the fourth quarter of 2019 were up 16% compared to the fourth quarter of 2018, driven by a 16% increase in the P&C segment and a 17% increase in the Specialty segment. |
▪ | Non-life net premiums written were up 18% for the full year 2019 compared to 2018, driven by a 21% increase in the P&C segment and a 14% increase in the Specialty segment. |
▪ | The Non-life underwriting loss was $188 million (combined ratio of 113.8%) for the fourth quarter of 2019 compared to a loss of $67 million (combined ratio of 108.7%) for the same period of 2018. The Specialty segment reported a combined ratio of 107.3% for the fourth quarter of 2019 compared to 90.5% for the fourth quarter of 2018, driven by higher attritional losses on the current accident year in the agriculture line of business (technical loss of $82 million or 18.9 points on Specialty combined ratio) and a lower level of favorable prior year development. The P&C segment reported a combined ratio of 117.7% for the fourth quarter of 2019 compared to 120.1% for the fourth quarter of 2018, with the improvement driven by a decrease in large catastrophic losses, partly offset by an increase in attritional losses. Catastrophic losses in the fourth quarter of 2019 included Typhoon Hagibis of $133 million (15.8 points on the P&C combined ratio) and adverse development on Typhoon Faxai of $39 million (4.6 points on the P&C combined ratio), net of retrocession and reinstatement premiums, compared to 40.6 points related to Hurricane Michael and California wildfires in the fourth quarter of 2018. |
▪ | The Non-life underwriting loss was $20 million (combined ratio of 100.3%) for the full year 2019 compared to a $47 million loss (combined ratio of 101.9%) for the same period of 2018. The improvement in combined ratio was driven by the P&C segment with a combined ratio of 98.7% for the full year 2019 compared to 108.7% for the same period of 2018, reflecting an improvement in the current accident year attritional loss ratio and a decrease in losses related to large catastrophic events. Catastrophic losses of $258 million, net of retrocession and reinstatement premiums, related to Typhoons Hagibis and Faxai and Hurricane Dorian contributed 8.4 points on the P&C combined ratio for the full year 2019, compared to 15.1 points in 2018 related to Typhoons Jebi and Trami, Hurricanes Florence and Michael, and California wildfires. This was offset by the Specialty segment, which recorded a combined ratio of 103.0% for the full year 2019 compared to 91.9% for the same period of 2018, driven by net adverse prior years' reserve development and a large loss on Ethiopian Airlines and Boeing of $42 million, net of retrocession and reinstatement premiums (2.1 points on the Specialty combined ratio). |
PartnerRe Ltd. Wellesley House, 5th Floor 90 Pitts Bay Road Pembroke, Bermuda HM 08 | Telephone +1 441 292 0888 Fax +1 441 292 6080 www.partnerre.com | 3 |
▪ | The Non-life combined ratio continues to reflect net favorable prior years' reserve development of $75 million (5.5 points) and $57 million (1.1 points) for the fourth quarter and full year 2019, respectively. This compared to net favorable development of $163 million (14.6 points) and $249 million (5.8 points) for the fourth quarter and full year 2018, respectively. |
▪ | Net premiums written were up 21% for both the fourth quarter and full year 2019, compared to the same periods of 2018. |
▪ | Allocated underwriting result was a loss of $3 million in the fourth quarter of 2019, and a profit of $73 million for the full year 2019, compared to a profit of $15 million and $86 million in the fourth quarter and full year 2018, respectively. The decrease for the quarter and full year 2019 was primarily driven by adverse experience in the Company's short term life business, higher expenses to support growth in the business and higher annual incentive bonus payment to employees. |
▪ | Net investment return in the fourth quarter of 2019 was $208 million, or 1.2%, and included net investment income of $108 million and net realized and unrealized investment gains of $122 million, which were partially offset by losses from equity method investments of $22 million. This compares to a net investment return of $34 million, or 0.2%, for the fourth quarter of 2018, which included net investment income of $104 million, partially offset by net realized and unrealized investment losses of $52 million and losses from equity method investments of $18 million. |
▪ | Net investment return for the full year 2019 was $1,352 million, or 7.7%, which included net investment income of $449 million, net realized and unrealized investment gains of $887 million, and interest in earnings of equity method investments of $16 million. This compares to a net investment return of $37 million, or 0.1%, for the full year 2018, which included net investment income of $416 million and interest in earnings of equity method investments of $11 million, offset by net realized and unrealized investment losses of $390 million. |
▪ | Net investment income was up $4 million, or 4%, for the fourth quarter of 2019 and up $33 million, or 8%, for the full year 2019, compared to the same periods of 2018, driven by decisions to re-balance certain assets into higher yield per duration unit strategies, partially offset by higher investment expenses. |
PartnerRe Ltd. Wellesley House, 5th Floor 90 Pitts Bay Road Pembroke, Bermuda HM 08 | Telephone +1 441 292 0888 Fax +1 441 292 6080 www.partnerre.com | 4 |
▪ | Net realized and unrealized investment gains of $122 million for the fourth quarter 2019 included net realized and unrealized investment losses of $50 million on fixed maturities and short-term investments, primarily due to increases in world-wide risk free rates, and $172 million of net realized and unrealized investment gains on equities, investments in real estate and other invested assets, driven by gains in public equity funds. This compared to net realized and unrealized investment losses of $52 million in the fourth quarter of 2018, which included net realized and unrealized investment gains of $31 million on fixed maturities and short-term investments, driven by decreases in risk free rates, partially offset by the widening of U.S. and European investment grade corporate spreads, and $83 million of net realized and unrealized investment losses on equities, investments in real estate and other invested assets, primarily due to a decline in world-wide equity markets. |
▪ | Net realized and unrealized investment gains of $887 million for the full year 2019 included net realized and unrealized investment gains of $434 million on fixed maturities and short-term investments, primarily due to decreases in world-wide risk free rates and credit spreads, and $453 million of net realized and unrealized investment gains on equities, investments in real estate and other invested assets, primarily due to gains in public equity funds. Included within the net realized and unrealized investment gains of $434 million on fixed maturities and short-term investments was $244 million of net realized gains, primarily due to the Company's decisions to rebalance certain portfolios, particularly in lower rated investment grade credit, and to reallocate the proceeds to other investment classes, particularly highly rated governments and mortgage backed securities, and to alternative credit. For the full year 2018, net realized and unrealized investment losses of $390 million included net realized and unrealized investment losses of $376 million on fixed maturities and short-term investments, driven by increases in U.S. risk free rates and the widening of U.S. and European investment grade corporate spreads, and $14 million of net realized and unrealized investment losses on equities, investments in real estate and other invested assets. |
▪ | Losses from equity method investments was $22 million in the fourth quarter of 2019, primarily driven by the depreciation in value of certain real estate investments held by an investee, Almacantar Group S.A. (Almacantar). The interest in earnings of equity method investments was $16 million for the full year 2019, primarily driven by gains on certain private equity and real estate funds, partially offset by the depreciation in value of Almacantar. This compared to losses of $18 million and earnings of $11 million for the same periods of 2018. |
▪ | As of December 31, 2019, reinvestment rates were 2.8% compared to the Company's fixed income investment portfolio yield of 3.0% for the fourth quarter of 2019. |
PartnerRe Ltd. Wellesley House, 5th Floor 90 Pitts Bay Road Pembroke, Bermuda HM 08 | Telephone +1 441 292 0888 Fax +1 441 292 6080 www.partnerre.com | 5 |
▪ | Other income was $4 million and $15 million for the fourth quarter and full year 2019, respectively, compared to $34 million and $50 million for the same periods of 2018. During the fourth quarter of 2018, the reserve and reinsurance agreement with Colisée Re was commuted and the associated guaranteed reserves and funds held – directly managed assets were released, and as a result the Company recognized a gain on commutation of $29 million in Other income. |
▪ | Amortization expense was $3 million and $12 million for the fourth quarter and full year 2019, respectively, compared to $18 million and $35 million for the same periods of 2018, primarily due to the reduction of a $14 million intangible asset upon commutation of the related guaranteed reserves referred to above. |
▪ | Expense ratio of 6.6% for the fourth quarter of 2019 (Other expenses of $115 million) was up 1.5 percentage points compared to expense ratio of 5.1% (Other expenses of $73 million) for the same period of 2018, with the increase primarily driven by (i) higher annual incentive and long term incentive payout for employees of $39 million compared to prior year due to the strong growth in book value reported by the Company in 2019 and (ii) an increase in Life and Health expenses compared to prior year to support the organic growth of the business. Expense ratio of 5.7% for the full year 2019 (Other expenses of $370 million) was up 0.2 percentage points compared to expense ratio of 5.5% (Other expenses of $306 million) for the same period of 2018. |
▪ | Net foreign exchange losses were $78 million and $87 million for the fourth quarter and full year 2019, respectively, driven by the depreciation of the U.S. dollar against certain major currencies and the cost of hedging, compared to gains of $66 million and $119 million for the fourth quarter and full year 2018, respectively, driven by the appreciation of the U.S. dollar against certain major currencies, partially offset by hedging costs. Net foreign exchange losses for the fourth quarter and full year 2019 were partially offset by positive change in currency translation adjustment of $42 million and $72 million, respectively. |
▪ | Interest expense was $8 million and $40 million for the fourth quarter and full year 2019, respectively, compared to $11 million and $43 million for the same periods of 2018. During the second quarter of 2019, the Company issued $500 million 3.70% Senior Notes due 2029 and used the proceeds to early redeem the $500 million 5.50% Senior Notes due 2020 in the third quarter of 2019. These transactions resulted in the lower interest expense across both comparative periods. Loss on redemption of debt was $15 million for the full year 2019, related to the redemption of the Company's 5.50% Senior Notes due 2020 at a make-whole redemption price. |
▪ | Preferred dividends of $12 million and $46 million for the fourth quarter and full year 2019, respectively, were comparable to the same periods of 2018. |
PartnerRe Ltd. Wellesley House, 5th Floor 90 Pitts Bay Road Pembroke, Bermuda HM 08 | Telephone +1 441 292 0888 Fax +1 441 292 6080 www.partnerre.com | 6 |
▪ | Income tax benefit was $51 million on pre-tax losses of $147 million in the fourth quarter of 2019 compared to a benefit of $14 million on pre-tax losses of $34 million for the same period of 2018. Income tax expense was $53 million on pre-tax income of $989 million for the full year 2019 compared to a benefit of $9 million on pre-tax losses of $95 million in 2018. These amounts were primarily driven by the geographical distribution of pre-tax profits and losses. |
▪ | Total investments and cash and cash equivalents were $17.8 billion at December 31, 2019, up 9.4% compared to December 31, 2018. The increase to December 31, 2019 was primarily driven by the $1,352 million net investment return for the full year 2019 and the increase in payable for securities purchased to $169 million as at December 31, 2019 from $80 million as at December 31, 2018. |
▪ | Cash and cash equivalents, fixed maturities, and short-term investments, which are government issued or investment grade fixed income securities, were $12.8 billion at December 31, 2019, representing 72% of the total investments and cash and cash equivalents. |
▪ | The average credit rating of the fixed income portfolio has increased to AA as of December 31, 2019 compared to A at December 31, 2018. The improvement in the average credit quality of the fixed income portfolio was due to actions taken during 2019 to reduce exposure to lower rated investment grade credit and reinvest certain proceeds in highly rated governments and mortgage backed securities. The expected average duration of the public fixed income portfolio at December 31, 2019 was 2.7 years, while the average duration of the Company’s liabilities was 4.3 years. |
▪ | There were no dividends declared and paid to common shareholders in the fourth quarter of 2019 and fourth quarter of 2018. Dividends declared and paid to common shareholders were $200 million for the full year 2019, compared to $48 million for the full year 2018. |
▪ | Total capital was $8.7 billion at December 31, 2019, up 9.2% compared to December 31, 2018, primarily due to net income for the full year 2019, partially offset by dividends on preferred and common shares. The Company issued $500 million 3.70% Senior Notes due 2029 during the second quarter of 2019 and used the proceeds to early redeem the $500 million 5.50% Senior Notes due 2020 in the third quarter of 2019. |
▪ | Common shareholder's equity (or book value) of $6.6 billion and tangible book value of $6.0 billion at December 31, 2019 increased by 13.0% and 14.6%, respectively, compared to December 31, 2018, primarily due to net income available to common shareholder for the full year 2019, partially offset by dividends on common shares. Book value, excluding dividends on common shares for 2019, was up 16.4% compared to December 31, 2018. |
PartnerRe Ltd. Wellesley House, 5th Floor 90 Pitts Bay Road Pembroke, Bermuda HM 08 | Telephone +1 441 292 0888 Fax +1 441 292 6080 www.partnerre.com | 7 |
▪ | Cash provided by operating activities was $295 million and $999 million for the fourth quarter and full year 2019, respectively, compared to $119 million and $447 million for the fourth quarter and full year 2018, respectively. The increases for the fourth quarter and full year 2019 over the same periods in 2018 were primarily driven by increases in cash flow from underwriting operations. |
PartnerRe Ltd. Wellesley House, 5th Floor 90 Pitts Bay Road Pembroke, Bermuda HM 08 | Telephone +1 441 292 0888 Fax +1 441 292 6080 www.partnerre.com | 8 |
Contacts: | PartnerRe Ltd. | |
(441) 292-0888 | ||
Investor Contact: Ryan Lipschutz | ||
Media Contact: Celia Powell |
PartnerRe Ltd. Wellesley House, 5th Floor 90 Pitts Bay Road Pembroke, Bermuda HM 08 | Telephone +1 441 292 0888 Fax +1 441 292 6080 www.partnerre.com | 9 |
For the three months ended | For the year ended | ||||||||||||||
December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | ||||||||||||
Revenues | |||||||||||||||
Gross premiums written | $ | 1,553,037 | $ | 1,313,785 | $ | 7,285,320 | $ | 6,299,929 | |||||||
Net premiums written | $ | 1,511,823 | $ | 1,286,492 | $ | 6,909,058 | $ | 5,803,364 | |||||||
Decrease (increase) in unearned premiums | 223,559 | 148,692 | (383,840 | ) | (289,554 | ) | |||||||||
Net premiums earned | 1,735,382 | 1,435,184 | 6,525,218 | 5,513,810 | |||||||||||
Net investment income | 108,220 | 103,885 | 448,538 | 415,921 | |||||||||||
Net realized and unrealized investment gains (losses) | 122,148 | (52,140 | ) | 886,670 | (389,632 | ) | |||||||||
Other income | 3,945 | 33,729 | 15,321 | 50,127 | |||||||||||
Total revenues | 1,969,695 | 1,520,658 | 7,875,747 | 5,590,226 | |||||||||||
Expenses | |||||||||||||||
Losses and loss expenses | 1,493,807 | 1,168,624 | 4,923,156 | 4,193,255 | |||||||||||
Acquisition costs | 395,988 | 331,918 | 1,455,462 | 1,237,464 | |||||||||||
Other expenses | 115,301 | 73,343 | 369,969 | 305,568 | |||||||||||
Interest expense | 8,293 | 10,768 | 40,150 | 43,152 | |||||||||||
Loss on redemption of debt (2) | — | — | 15,175 | — | |||||||||||
Amortization of intangible assets | 2,929 | 17,796 | 11,434 | 35,473 | |||||||||||
Net foreign exchange losses (gains) | 78,452 | (65,837 | ) | 86,760 | (119,151 | ) | |||||||||
Total expenses | 2,094,770 | 1,536,612 | 6,902,106 | 5,695,761 | |||||||||||
(Loss) income before taxes and interest in (losses) earnings of equity method investments | (125,075 | ) | (15,954 | ) | 973,641 | (105,535 | ) | ||||||||
Income tax (benefit) expense | (51,103 | ) | (13,525 | ) | 52,536 | (8,934 | ) | ||||||||
Interest in (losses) earnings of equity method investments | (22,209 | ) | (17,606 | ) | 15,643 | 10,607 | |||||||||
Net (loss) income | (96,181 | ) | (20,035 | ) | 936,748 | (85,994 | ) | ||||||||
Preferred dividends | 11,604 | 11,604 | 46,416 | 46,416 | |||||||||||
Net (loss) income attributable to common shareholder | $ | (107,785 | ) | $ | (31,639 | ) | $ | 890,332 | $ | (132,410 | ) | ||||
Comprehensive (loss) income | |||||||||||||||
Net (loss) income | $ | (96,181 | ) | $ | (20,035 | ) | $ | 936,748 | $ | (85,994 | ) | ||||
Change in currency translation adjustment | 42,113 | (42,486 | ) | 71,796 | (74,797 | ) | |||||||||
Change in net unrealized gains or losses on investments, net of tax | (319 | ) | 1,805 | (2,284 | ) | 1,585 | |||||||||
Change in unfunded pension obligation, net of tax | (6,848 | ) | 25,583 | (6,803 | ) | 24,859 | |||||||||
Comprehensive (loss) income | $ | (61,235 | ) | $ | (35,133 | ) | $ | 999,457 | $ | (134,347 | ) |
December 31, 2019 | December 31, 2018 | ||||||
Assets | |||||||
Investments: | |||||||
Fixed maturities, at fair value | $ | 10,680,714 | $ | 12,639,845 | |||
Short-term investments, at fair value | 1,003,421 | 493,726 | |||||
Equities, at fair value | 1,295,164 | 694,301 | |||||
Investments in real estate | 71,834 | 72,573 | |||||
Other invested assets | 3,266,009 | 1,488,995 | |||||
Total investments | 16,317,142 | 15,389,440 | |||||
Cash and cash equivalents | 1,484,463 | 877,907 | |||||
Accrued investment income | 109,673 | 115,735 | |||||
Reinsurance balances receivable | 3,400,070 | 2,976,644 | |||||
Reinsurance recoverable on paid and unpaid losses | 889,021 | 897,183 | |||||
Prepaid reinsurance premiums | 80,942 | 102,405 | |||||
Funds held by reinsured companies | 815,167 | 829,695 | |||||
Deferred acquisition costs | 874,608 | 743,046 | |||||
Deposit assets | 168,067 | 80,661 | |||||
Net tax assets | 179,813 | 157,690 | |||||
Goodwill | 456,380 | 456,380 | |||||
Intangible assets | 117,538 | 128,899 | |||||
Other assets (2) | 169,521 | 63,506 | |||||
Total assets | $ | 25,062,405 | $ | 22,819,191 | |||
Liabilities | |||||||
Non-life reserves | $ | 10,363,383 | $ | 9,895,376 | |||
Life and health reserves | 2,417,044 | 2,198,080 | |||||
Unearned premiums | 2,433,860 | 2,072,953 | |||||
Other reinsurance balances payable | 521,338 | 341,041 | |||||
Deposit liabilities | 5,507 | 7,172 | |||||
Net tax liabilities | 135,966 | 101,525 | |||||
Accounts payable, accrued expenses and other (2) (3) | 517,084 | 266,524 | |||||
Debt related to senior notes | 1,327,965 | 1,349,017 | |||||
Debt related to capital efficient notes | 70,089 | 70,989 | |||||
Total liabilities | 17,792,236 | 16,302,677 | |||||
Shareholders’ Equity | |||||||
Common shares (par value $0.00000001; issued and outstanding: 100,000,000 shares) | — | — | |||||
Preferred shares (par value $1.00; issued and outstanding: 28,169,062 shares; aggregate liquidation value: $704,227) | 28,169 | 28,169 | |||||
Additional paid-in capital | 2,396,530 | 2,396,530 | |||||
Accumulated other comprehensive loss | (75,925 | ) | (138,634 | ) | |||
Retained earnings | 4,921,395 | 4,230,449 | |||||
Total shareholders’ equity | 7,270,169 | 6,516,514 | |||||
Total liabilities and shareholders’ equity | $ | 25,062,405 | $ | 22,819,191 |
For the three months ended | For the year ended | |||||||||||||||
December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||
Net cash provided by operating activities | $ | 295,186 | $ | 118,911 | $ | 998,869 | $ | 447,493 | ||||||||
Net cash used in investing activities | (129,433 | ) | (96,732 | ) | (117,994 | ) | (1,260,911 | ) | ||||||||
Net cash used in financing activities | (11,604 | ) | (11,604 | ) | (267,868 | ) | (94,251 | ) | ||||||||
Effect of foreign exchange rate changes on cash | (885 | ) | (7,148 | ) | (6,451 | ) | 13,564 | |||||||||
Increase (decrease) in cash and cash equivalents | 153,264 | 3,427 | 606,556 | (894,105 | ) | |||||||||||
Cash and cash equivalents - beginning of period | 1,331,199 | 874,480 | 877,907 | 1,772,012 | ||||||||||||
Cash and cash equivalents - end of period | $ | 1,484,463 | $ | 877,907 | $ | 1,484,463 | $ | 877,907 |
For the three months ended December 31, 2019 | ||||||||||||||||||||||||
P&C segment | Specialty segment | Total Non-life | Life and Health segment | Corporate and Other | Total | |||||||||||||||||||
Gross premiums written | $ | 646 | $ | 523 | $ | 1,169 | $ | 384 | $ | — | $ | 1,553 | ||||||||||||
Net premiums written | $ | 631 | $ | 504 | $ | 1,135 | $ | 377 | $ | — | $ | 1,512 | ||||||||||||
Decrease in unearned premiums | 213 | 5 | 218 | 5 | — | 223 | ||||||||||||||||||
Net premiums earned | $ | 844 | $ | 509 | $ | 1,353 | $ | 382 | $ | — | $ | 1,735 | ||||||||||||
Losses and loss expenses | (746 | ) | (402 | ) | (1,148 | ) | (349 | ) | 3 | (1,494 | ) | |||||||||||||
Acquisition costs | (224 | ) | (136 | ) | (360 | ) | (36 | ) | — | (396 | ) | |||||||||||||
Technical result | $ | (126 | ) | $ | (29 | ) | $ | (155 | ) | $ | (3 | ) | $ | 3 | $ | (155 | ) | |||||||
Other (loss) income | (1 | ) | — | (1 | ) | 6 | (1 | ) | 4 | |||||||||||||||
Other expenses | (24 | ) | (8 | ) | (32 | ) | (24 | ) | (59 | ) | (115 | ) | ||||||||||||
Underwriting result | $ | (151 | ) | $ | (37 | ) | $ | (188 | ) | $ | (21 | ) | n/a | $ | (266 | ) | ||||||||
Net investment income | 18 | 90 | 108 | |||||||||||||||||||||
Allocated underwriting result | $ | (3 | ) | n/a | n/a | |||||||||||||||||||
Net realized and unrealized investment gains | 122 | 122 | ||||||||||||||||||||||
Interest expense | (8 | ) | (8 | ) | ||||||||||||||||||||
Amortization of intangible assets | (3 | ) | (3 | ) | ||||||||||||||||||||
Net foreign exchange losses | (78 | ) | (78 | ) | ||||||||||||||||||||
Income tax benefit | 51 | 51 | ||||||||||||||||||||||
Interest in losses of equity method investments | (22 | ) | (22 | ) | ||||||||||||||||||||
Net loss | n/a | $ | (96 | ) | ||||||||||||||||||||
Loss ratio (1) | 88.4 | % | 79.0 | % | 84.8 | % | ||||||||||||||||||
Acquisition ratio (2) | 26.5 | 26.7 | 26.6 | |||||||||||||||||||||
Technical ratio (3) | 114.9 | % | 105.7 | % | 111.4 | % | ||||||||||||||||||
Other expense ratio (4) | 2.8 | 1.6 | 2.4 | |||||||||||||||||||||
Combined ratio (5) | 117.7 | % | 107.3 | % | 113.8 | % | ||||||||||||||||||
For the three months ended December 31, 2018 | ||||||||||||||||||||||||
P&C segment | Specialty segment | Total Non-life | Life and Health segment | Corporate and Other | Total | |||||||||||||||||||
Gross premiums written | $ | 551 | $ | 443 | $ | 994 | $ | 320 | $ | — | $ | 1,314 | ||||||||||||
Net premiums written | $ | 543 | $ | 432 | $ | 975 | $ | 311 | $ | — | $ | 1,286 | ||||||||||||
Decrease (increase) in unearned premiums | 145 | (2 | ) | 143 | 6 | — | 149 | |||||||||||||||||
Net premiums earned | $ | 688 | $ | 430 | $ | 1,118 | $ | 317 | $ | — | $ | 1,435 | ||||||||||||
Losses and loss expenses | (645 | ) | (259 | ) | (904 | ) | (265 | ) | — | (1,169 | ) | |||||||||||||
Acquisition costs | (165 | ) | (125 | ) | (290 | ) | (42 | ) | — | (332 | ) | |||||||||||||
Technical result | $ | (122 | ) | $ | 46 | $ | (76 | ) | $ | 10 | $ | — | $ | (66 | ) | |||||||||
Other income | 30 | — | 30 | 3 | 1 | 34 | ||||||||||||||||||
Other expenses | (16 | ) | (5 | ) | (21 | ) | (15 | ) | (37 | ) | (73 | ) | ||||||||||||
Underwriting result | $ | (108 | ) | $ | 41 | $ | (67 | ) | $ | (2 | ) | n/a | $ | (105 | ) | |||||||||
Net investment income | 17 | 87 | 104 | |||||||||||||||||||||
Allocated underwriting result | $ | 15 | n/a | n/a | ||||||||||||||||||||
Net realized and unrealized investment losses | (52 | ) | (52 | ) | ||||||||||||||||||||
Interest expense | (11 | ) | (11 | ) | ||||||||||||||||||||
Amortization of intangible assets | (18 | ) | (18 | ) | ||||||||||||||||||||
Net foreign exchange gains | 66 | 66 | ||||||||||||||||||||||
Income tax benefit | 14 | 14 | ||||||||||||||||||||||
Interest in losses of equity method investments | (18 | ) | (18 | ) | ||||||||||||||||||||
Net loss | n/a | $ | (20 | ) | ||||||||||||||||||||
Loss ratio (1) | 93.7 | % | 60.2 | % | 80.9 | % | ||||||||||||||||||
Acquisition ratio (2) | 24.0 | 29.1 | 25.9 | |||||||||||||||||||||
Technical ratio (3) | 117.7 | % | 89.3 | % | 106.8 | % | ||||||||||||||||||
Other expense ratio (4) | 2.4 | 1.2 | 1.9 | |||||||||||||||||||||
Combined ratio (5) | 120.1 | % | 90.5 | % | 108.7 | % |
For the year ended December 31, 2019 | ||||||||||||||||||||||||
P&C segment | Specialty segment | Total Non-life | Life and Health segment | Corporate and Other | Total | |||||||||||||||||||
Gross premiums written | $ | 3,579 | $ | 2,213 | $ | 5,792 | $ | 1,493 | $ | — | $ | 7,285 | ||||||||||||
Net premiums written | $ | 3,302 | $ | 2,137 | $ | 5,439 | $ | 1,470 | $ | — | $ | 6,909 | ||||||||||||
Increase in unearned premiums | (231 | ) | (150 | ) | (381 | ) | (3 | ) | — | (384 | ) | |||||||||||||
Net premiums earned | $ | 3,071 | $ | 1,987 | $ | 5,058 | $ | 1,467 | $ | — | $ | 6,525 | ||||||||||||
Losses and loss expenses | (2,167 | ) | (1,496 | ) | (3,663 | ) | (1,263 | ) | 3 | (4,923 | ) | |||||||||||||
Acquisition costs | (783 | ) | (523 | ) | (1,306 | ) | (149 | ) | — | (1,455 | ) | |||||||||||||
Technical result | $ | 121 | $ | (32 | ) | $ | 89 | $ | 55 | $ | 3 | $ | 147 | |||||||||||
Other (loss) income | (1 | ) | — | (1 | ) | 15 | 1 | 15 | ||||||||||||||||
Other expenses | (80 | ) | (28 | ) | (108 | ) | (69 | ) | (193 | ) | (370 | ) | ||||||||||||
Underwriting result | $ | 40 | $ | (60 | ) | $ | (20 | ) | $ | 1 | n/a | $ | (208 | ) | ||||||||||
Net investment income | 72 | 377 | 449 | |||||||||||||||||||||
Allocated underwriting result | $ | 73 | n/a | n/a | ||||||||||||||||||||
Net realized and unrealized investment gains | 887 | 887 | ||||||||||||||||||||||
Interest expense | (40 | ) | (40 | ) | ||||||||||||||||||||
Loss on redemption of debt | (15 | ) | (15 | ) | ||||||||||||||||||||
Amortization of intangible assets | (12 | ) | (12 | ) | ||||||||||||||||||||
Net foreign exchange losses | (87 | ) | (87 | ) | ||||||||||||||||||||
Income tax expense | (53 | ) | (53 | ) | ||||||||||||||||||||
Interest in earnings of equity method investments | 16 | 16 | ||||||||||||||||||||||
Net income | n/a | $ | 937 | |||||||||||||||||||||
Loss ratio | 70.6 | % | 75.3 | % | 72.4 | % | ||||||||||||||||||
Acquisition ratio | 25.5 | 26.3 | 25.8 | |||||||||||||||||||||
Technical ratio | 96.1 | % | 101.6 | % | 98.2 | % | ||||||||||||||||||
Other expense ratio | 2.6 | 1.4 | 2.1 | |||||||||||||||||||||
Combined ratio | 98.7 | % | 103.0 | % | 100.3 | % | ||||||||||||||||||
For the year ended December 31, 2018 | ||||||||||||||||||||||||
P&C segment | Specialty segment | Total Non-life | Life and Health segment | Corporate and Other | Total | |||||||||||||||||||
Gross premiums written | $ | 3,015 | $ | 2,050 | $ | 5,065 | $ | 1,235 | $ | — | $ | 6,300 | ||||||||||||
Net premiums written | $ | 2,722 | $ | 1,870 | $ | 4,592 | $ | 1,211 | $ | — | $ | 5,803 | ||||||||||||
(Increase) decrease in unearned premiums | (187 | ) | (103 | ) | (290 | ) | 1 | — | (289 | ) | ||||||||||||||
Net premiums earned | $ | 2,535 | $ | 1,767 | $ | 4,302 | $ | 1,212 | $ | — | $ | 5,514 | ||||||||||||
Losses and loss expenses | (2,073 | ) | (1,096 | ) | (3,169 | ) | (1,025 | ) | — | (4,194 | ) | |||||||||||||
Acquisition costs | (606 | ) | (502 | ) | (1,108 | ) | (129 | ) | — | (1,237 | ) | |||||||||||||
Technical result | $ | (144 | ) | $ | 169 | $ | 25 | $ | 58 | $ | — | $ | 83 | |||||||||||
Other income | 30 | — | 30 | 13 | 7 | 50 | ||||||||||||||||||
Other expenses | (75 | ) | (27 | ) | (102 | ) | (51 | ) | (153 | ) | (306 | ) | ||||||||||||
Underwriting result | $ | (189 | ) | $ | 142 | $ | (47 | ) | $ | 20 | n/a | $ | (173 | ) | ||||||||||
Net investment income | 66 | 350 | 416 | |||||||||||||||||||||
Allocated underwriting result | $ | 86 | n/a | n/a | ||||||||||||||||||||
Net realized and unrealized investment losses | (390 | ) | (390 | ) | ||||||||||||||||||||
Interest expense | (43 | ) | (43 | ) | ||||||||||||||||||||
Amortization of intangible assets | (35 | ) | (35 | ) | ||||||||||||||||||||
Net foreign exchange gains | 119 | 119 | ||||||||||||||||||||||
Income tax benefit | 9 | 9 | ||||||||||||||||||||||
Interest in earnings of equity method investments | 11 | 11 | ||||||||||||||||||||||
Net loss | n/a | $ | (86 | ) | ||||||||||||||||||||
Loss ratio | 81.8 | % | 62.0 | % | 73.7 | % | ||||||||||||||||||
Acquisition ratio | 23.9 | 28.4 | 25.8 | |||||||||||||||||||||
Technical ratio | 105.7 | % | 90.4 | % | 99.5 | % | ||||||||||||||||||
Other expense ratio | 3.0 | 1.5 | 2.4 | |||||||||||||||||||||
Combined ratio | 108.7 | % | 91.9 | % | 101.9 | % |
December 31, 2019 | December 31, 2018 | |||||||||||||
Investments: | ||||||||||||||
Fixed maturities | ||||||||||||||
U.S. government | $ | 877,196 | 6 | % | $ | 2,343,278 | 15 | % | ||||||
U.S. government sponsored enterprises | 544,520 | 3 | 1,730 | — | ||||||||||
U.S. states, territories and municipalities | 157,234 | 1 | 134,593 | 1 | ||||||||||
Non-U.S. sovereign government, supranational and government related | 3,255,154 | 20 | 2,158,642 | 14 | ||||||||||
Corporate bonds | 2,662,089 | 16 | 5,611,678 | 36 | ||||||||||
Mortgage/asset-backed securities | 3,184,521 | 20 | 2,389,924 | 16 | ||||||||||
Total fixed maturities | 10,680,714 | 66 | 12,639,845 | 82 | ||||||||||
Short-term investments | 1,003,421 | 6 | 493,726 | 3 | ||||||||||
Equities | 1,295,164 | 8 | 694,301 | 5 | ||||||||||
Investments in real estate | 71,834 | — | 72,573 | — | ||||||||||
Other invested assets (1) | 3,266,009 | 20 | 1,488,995 | 10 | ||||||||||
Total investments | $ | 16,317,142 | 100 | % | $ | 15,389,440 | 100 | % | ||||||
Cash and cash equivalents | 1,484,463 | 877,907 | ||||||||||||
Total investments and cash and cash equivalents | 17,801,605 | 16,267,347 | ||||||||||||
Maturity distribution: | ||||||||||||||
One year or less | $ | 1,673,912 | 14 | % | $ | 898,455 | 7 | % | ||||||
More than one year through five years | 3,276,078 | 29 | 5,821,125 | 45 | ||||||||||
More than five years through ten years | 2,939,624 | 25 | 3,203,473 | 24 | ||||||||||
More than ten years | 610,000 | 5 | 820,594 | 6 | ||||||||||
Subtotal | 8,499,614 | 73 | 10,743,647 | 82 | ||||||||||
Mortgage/asset-backed securities | 3,184,521 | 27 | 2,389,924 | 18 | ||||||||||
Total fixed maturities and short-term investments | $ | 11,684,135 | 100 | % | $ | 13,133,571 | 100 | % | ||||||
Credit quality by market value (Total fixed maturities and short-term investments): | ||||||||||||||
AAA | $ | 2,986,519 | 26 | % | $ | 1,167,970 | 9 | % | ||||||
AA | 5,739,019 | 49 | 5,845,502 | 44 | ||||||||||
A | 1,706,119 | 14 | 2,653,345 | 20 | ||||||||||
BBB | 931,082 | 8 | 2,985,983 | 23 | ||||||||||
Below Investment Grade/Unrated | 321,396 | 3 | 480,771 | 4 | ||||||||||
$ | 11,684,135 | 100 | % | $ | 13,133,571 | 100 | % | |||||||
Expected average duration | 2.7 | Yrs | 3.9 | Yrs | ||||||||||
Average yield to maturity at market | 2.8 | % | 3.2 | % | ||||||||||
Average credit quality | AA | A |
December 31, 2019 | |||||||||||||||||||||||
Fair Value | Percentage of Fair Value of Corporate Bonds | Percentage to Invested Assets and cash | Largest single issuer as a percentage of Invested Assets and cash | ||||||||||||||||||||
Distribution by sector - Corporate bonds | |||||||||||||||||||||||
Financial | $ | 1,314,247 | 49.4 | % | 7.4 | % | 0.6 | % | |||||||||||||||
Consumer, Cyclical | 267,535 | 10.0 | 1.5 | 0.6 | |||||||||||||||||||
Energy | 243,764 | 9.2 | 1.4 | 0.3 | |||||||||||||||||||
Insurance | 214,427 | 8.1 | 1.2 | 0.5 | |||||||||||||||||||
Consumer, Non-cyclical | 166,075 | 6.2 | 0.9 | 0.2 | |||||||||||||||||||
Industrial | 124,799 | 4.7 | 0.7 | 0.2 | |||||||||||||||||||
Utilities | 106,306 | 4.0 | 0.6 | 0.1 | |||||||||||||||||||
Communications | 75,675 | 2.8 | 0.4 | 0.1 | |||||||||||||||||||
Real estate and real estate investment trusts | 68,843 | 2.6 | 0.4 | 0.1 | |||||||||||||||||||
Basic Materials | 31,200 | 1.2 | 0.2 | 0.1 | |||||||||||||||||||
Technology | 30,365 | 1.1 | 0.2 | 0.1 | |||||||||||||||||||
Longevity and Mortality Bonds | 18,688 | 0.7 | 0.1 | 0.1 | |||||||||||||||||||
Other | 165 | — | — | — | |||||||||||||||||||
Total Corporate bonds | $ | 2,662,089 | 100.0 | % | 15.0 | % | |||||||||||||||||
Finance sector - Corporate bonds | |||||||||||||||||||||||
Banks | $ | 882,467 | 33.1 | % | 5.0 | % | |||||||||||||||||
Investment banking and brokerage | 246,031 | 9.2 | 1.4 | ||||||||||||||||||||
Other | 185,749 | 7.1 | 1.0 | ||||||||||||||||||||
Total finance sector - Corporate bonds | $ | 1,314,247 | 49.4 | % | 7.4 | % | |||||||||||||||||
AAA | AA | A | BBB | Non-Investment Grade/Unrated | Total | ||||||||||||||||||
Credit quality of finance sector - Corporate bonds | |||||||||||||||||||||||
Banks | $ | — | $ | 126,649 | $ | 427,348 | $ | 292,399 | $ | 36,071 | $ | 882,467 | |||||||||||
Investment banking and brokerage | — | 1,600 | 60,629 | 183,801 | 1 | 246,031 | |||||||||||||||||
Other | 1,165 | 67,486 | 77,000 | 36,580 | 3,518 | 185,749 | |||||||||||||||||
Total finance sector - Corporate bonds | $ | 1,165 | $ | 195,735 | $ | 564,977 | $ | 512,780 | $ | 39,590 | $ | 1,314,247 | |||||||||||
% of total | 0.1 | % | 14.9 | % | 43.0 | % | 39.0 | % | 3.0 | % | 100.0 | % |
For the three months ended | For the year ended | ||||||||||||||
December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | ||||||||||||
Fixed maturities | $ | 81,880 | $ | 95,811 | $ | 379,939 | $ | 378,726 | |||||||
Short-term investments and cash and cash equivalents | 6,944 | 3,944 | 26,981 | 13,279 | |||||||||||
Equities, investments in real estate, funds held and other | 31,268 | 13,579 | 81,100 | 52,872 | |||||||||||
Investment expenses | (11,872 | ) | (9,449 | ) | (39,482 | ) | (28,956 | ) | |||||||
Net investment income | $ | 108,220 | $ | 103,885 | $ | 448,538 | $ | 415,921 | |||||||
Net realized investment gains (losses) on fixed maturities and short-term investments | $ | 21,849 | $ | (175,718 | ) | $ | 243,508 | $ | (224,887 | ) | |||||
Net realized investment gains (losses) on equities | 304 | (702 | ) | 6,545 | 14,601 | ||||||||||
Net realized investment (losses) gains on other invested assets | (8,642 | ) | (66 | ) | 830 | 7,136 | |||||||||
Net realized investment gains on funds held–directly managed | — | 1,670 | — | 1,200 | |||||||||||
Net realized investment gains (losses) | $ | 13,511 | $ | (174,816 | ) | $ | 250,883 | $ | (201,950 | ) | |||||
Change in net unrealized investment (losses) gains on fixed maturities and short-term investments | $ | (72,277 | ) | $ | 206,865 | $ | 190,343 | $ | (150,926 | ) | |||||
Change in net unrealized investment gains (losses) on equities | 158,908 | (40,727 | ) | 403,011 | 2,791 | ||||||||||
Change in net unrealized investment gains (losses) on other invested assets | 24,249 | (35,344 | ) | 44,441 | (25,607 | ) | |||||||||
Change in net unrealized investment (losses) on funds held–directly managed | — | (1,692 | ) | — | (6,484 | ) | |||||||||
Net other realized and unrealized investment gains (losses) | 734 | (304 | ) | 969 | (1,334 | ) | |||||||||
Change in net unrealized investment gains (losses) | $ | 111,614 | $ | 128,798 | $ | 638,764 | $ | (181,560 | ) | ||||||
Impairment loss on investments in real estate | (2,977 | ) | (6,122 | ) | (2,977 | ) | (6,122 | ) | |||||||
Net realized and unrealized investment gains (losses) | $ | 122,148 | $ | (52,140 | ) | $ | 886,670 | $ | (389,632 | ) |
As at and for the three months ended | As at and for the year ended | ||||||||||||||
December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | ||||||||||||
Reconciliation of beginning and ending non-life reserves: | |||||||||||||||
Gross liability at beginning of period | $ | 9,910,360 | $ | 10,065,441 | $ | 9,895,376 | $ | 10,102,172 | |||||||
Reinsurance recoverable at beginning of period | (681,458 | ) | (669,617 | ) | (850,946 | ) | (719,998 | ) | |||||||
Net liability at beginning of period | 9,228,902 | 9,395,824 | 9,044,430 | 9,382,174 | |||||||||||
Net incurred losses related to: (1) | |||||||||||||||
Current year | 1,219,970 | 1,066,549 | 3,716,988 | 3,417,366 | |||||||||||
Prior years | (74,605 | ) | (163,069 | ) | (56,848 | ) | (248,719 | ) | |||||||
1,145,365 | 903,480 | 3,660,140 | 3,168,647 | ||||||||||||
Net losses paid | (877,343 | ) | (775,000 | ) | (3,090,670 | ) | (2,921,987 | ) | |||||||
Retroactive reinsurance recoverable (2) | (81,013 | ) | — | (81,013 | ) | — | |||||||||
Change in reserve agreement (3) | — | (404,065 | ) | — | (397,493 | ) | |||||||||
Effects of foreign exchange rate changes | 192,677 | (75,809 | ) | 75,701 | (186,911 | ) | |||||||||
Net liability at end of period | 9,608,588 | 9,044,430 | 9,608,588 | 9,044,430 | |||||||||||
Reinsurance recoverable at end of period | 754,795 | 850,946 | 754,795 | 850,946 | |||||||||||
Gross liability at end of period | $ | 10,363,383 | $ | 9,895,376 | $ | 10,363,383 | $ | 9,895,376 | |||||||
Breakdown of gross liability at end of period: | |||||||||||||||
Case reserves | $ | 4,203,052 | $ | 4,217,068 | $ | 4,203,052 | $ | 4,217,068 | |||||||
Additional case reserves | 158,220 | 174,713 | 158,220 | 174,713 | |||||||||||
Incurred but not reported reserves | 6,002,111 | 5,503,595 | 6,002,111 | 5,503,595 | |||||||||||
Gross liability at end of period | $ | 10,363,383 | $ | 9,895,376 | $ | 10,363,383 | $ | 9,895,376 | |||||||
Gross liability at end of period by Non-life segment: | |||||||||||||||
P&C | 7,254,366 | 7,159,337 | 7,254,366 | 7,159,337 | |||||||||||
Specialty | 3,109,017 | 2,736,039 | 3,109,017 | 2,736,039 | |||||||||||
Gross liability at end of period | $ | 10,363,383 | $ | 9,895,376 | $ | 10,363,383 | $ | 9,895,376 | |||||||
Unrecognized time value of non-life reserves (4) | $ | 421,749 | $ | 602,332 | $ | 421,749 | $ | 602,332 |
As at and for the three months ended | As at and for the year ended | ||||||||||||||
December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | ||||||||||||
Reconciliation of beginning and ending life and health reserves: | |||||||||||||||
Gross liability at beginning of period | $ | 2,182,634 | $ | 2,207,592 | $ | 2,198,080 | $ | 2,098,759 | |||||||
Reinsurance recoverable at beginning of period | (9,943 | ) | (9,875 | ) | (11,829 | ) | (9,287 | ) | |||||||
Net liability at beginning of period | 2,172,691 | 2,197,717 | 2,186,251 | 2,089,472 | |||||||||||
Net incurred losses | 348,442 | 265,144 | 1,263,016 | 1,024,608 | |||||||||||
Net losses paid | (192,916 | ) | (220,183 | ) | (1,071,487 | ) | (818,916 | ) | |||||||
Effects of foreign exchange rate changes | 72,644 | (56,427 | ) | 23,081 | (108,913 | ) | |||||||||
Net liability at end of period | 2,400,861 | 2,186,251 | 2,400,861 | 2,186,251 | |||||||||||
Reinsurance recoverable at end of period | 16,183 | 11,829 | 16,183 | 11,829 | |||||||||||
Gross liability at end of period | $ | 2,417,044 | $ | 2,198,080 | $ | 2,417,044 | $ | 2,198,080 | |||||||
Life value in force (1) | $ | 290,900 | $ | 283,500 | $ | 290,900 | $ | 283,500 |
December 31, 2019 | ||||||||||
Zone | Peril | 1-in-250 year PML | 1-in-500 year PML (Earthquake perils only) | |||||||
U.S. Northeast | Hurricane | $ | 847 | |||||||
U.S. Gulf Coast | Hurricane | 802 | ||||||||
U.S. Southeast | Hurricane | 790 | ||||||||
Caribbean | Hurricane | 254 | ||||||||
Europe | Windstorm | 410 | ||||||||
Japan | Typhoon | 301 | ||||||||
California | Earthquake | 755 | $ | 1,107 | ||||||
Japan | Earthquake | 447 | 523 | |||||||
Australia | Earthquake | 289 | 366 | |||||||
New Zealand | Earthquake | 256 | 362 | |||||||
British Columbia | Earthquake | 164 | 328 |
For the three months ended | For the year ended | ||||||||||||||||||
December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | ||||||||||||||||
$ | ROE (1) | $ | ROE (1) | $ | ROE (1) | $ | ROE (1) | ||||||||||||
Net (loss) income attributable to common shareholder | (107,785 | ) | (6.5 | )% | (31,639 | ) | (2.2 | )% | 890,332 | 14.4 | % | (132,410 | ) | (2.2 | )% |
For the three months ended | For the year ended | ||||||||||||||
Calculation of average common shareholder's equity | December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||
Beginning of period common shareholder's equity | $ | 6,638,780 | $ | 5,859,026 | $ | 5,812,287 | $ | 6,040,885 | |||||||
End of period common shareholder's equity | $ | 6,565,942 | $ | 5,812,287 | $ | 6,565,942 | $ | 5,812,287 | |||||||
Average common shareholder's equity | $ | 6,602,361 | $ | 5,835,657 | $ | 6,189,115 | $ | 5,926,586 |
December 31, 2019 | December 31, 2018 | ||||||
Tangible book value: | |||||||
Total shareholders' equity | $ | 7,270,169 | $ | 6,516,514 | |||
Less: | |||||||
Preferred shares, aggregate liquidation value at $25 per share | 704,227 | 704,227 | |||||
Common shareholder’s equity or book value | 6,565,942 | 5,812,287 | |||||
Less: | |||||||
Goodwill | 456,380 | 456,380 | |||||
Intangible assets, net of tax (1) | 109,217 | 118,808 | |||||
Tangible book value | $ | 6,000,345 | $ | 5,237,099 | |||
Capital structure: | |||||||
Senior notes (2) | $ | 1,327,965 | $ | 1,349,017 | |||
Capital efficient notes (3) | 62,484 | 63,384 | |||||
Preferred shares, aggregate liquidation value | 704,227 | 704,227 | |||||
Common shareholder's equity | 6,565,942 | 5,812,287 | |||||
Total capital | $ | 8,660,618 | $ | 7,928,915 |
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