Partnerre Ltd. · OTC:PREJF
Partnerre — Debt Investor Presentation (June 2019)
23 slides from Partnerre's debt investor presentation, Jun 12, 2019
Slide 1: Disclaimer: Forward-Looking Statements
2 Disclaimer Forward-Looking Statements This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and which are made pursuant to the safe harbor provisions
Slide 2: Disclaimer (continued)
3 Disclaimer (continued) Nothing in this presentation should be construed as legal, tax, accounting, investment or other advice or as a recommendation regarding the notes to which this communication relates (the “notes”) by the issuer, the guarantor or their subsidiaries or by Citigroup Global Marke
Slide 3: Speaker: Mario Bonaccorso
4 Speaker Mario Bonaccorso EVP and Chief Financial Officer, PartnerRe Ltd. Mario Bonaccorso is the Chief Financial Officer of PartnerRe Ltd., and a member of PartnerRe’s Executive Leadership Team and is responsible for the Company’s financial operations and third party capital initiatives. Prior to
Slide 4: Offering Summary
Offering Summary Issuer PartnerRe Finance B LLC Guarantor PartnerRe Ltd. Principal Amount [$500,000,000] Format SEC Registered Security Type 10-year senior unsecured notes (the “Notes”) Maturity July 2, 2029 Redemption The Notes may be redeemed at the option of the issuer but will not be redeemable
Slide 5: Offering Summary
Offering Summary PartnerRe Issuer Guarantor Principal Amount Format Security Type ‘Maturity Redemption Principal Repayment at Maturity Ranking Use of Proceeds Expected Ratings Expected BMA Capital Treatment Joint Bookrunners. PartnerRe Finance 8 LLC PartnerRe Lid, [$500,000,000} SEC Registered 10-ye
Slide 6: Overview of PartnerRe
7 Overview of PartnerRe Leading global, diversified and pure-play reinsurer operating in over 150 markets with 2,000+ clients Founded in 1993, headquartered in Bermuda with 20 offices worldwide Privately owned by EXOR N.V. since 2016 Strong, diversified franchise built on successful organic growth a
Slide 7: Business Segments
8 Business Segments Business Segments Specialty Lines Property & Casualty Life and Health Clients Global insurers, Lloyd’s syndicates and monoline insurers Global, regional/local multiline insurers and health insurers in the U.S. Life insurers, self-funded employers and hospitals Risk Profile Specia
Slide 8: PartnerRe Value Proposition
9 PartnerRe Value Proposition Top 10 Global Reinsurer with Long Term Focus and Lack of Conflicts 9th largest global and 6th largest composite reinsurer Strict focus on reinsurance to avoid competing with clients EXOR private ownership promotes stability, allows PartnerRe to take a long-term view and
Slide 9: Top 10 Global Reinsurer with Long Term Focus and Lack of Conflicts
Source: Company filings, FactSet. Euro and GBP figures translated at 1.18 and 1.33 for income statement figures and 1.14 and 1.27 for balance sheet figures, respectively Financial information for FY 2018 1 Calculated as a 16% increase in P&C reinsurance from 2017 based on AXA SA company filings 10 T
Slide 10: EXOR ownership of PartnerRe
11 Ranked 19th in the Fortune Global 500 list (2018) Focused on global businesses primarily based in Europe and the U.S. Actively participates in building its companies for the long term Strong performance track record; NAV per share (USD) compounded annual growth rate of ~18% since March 2009 BBB+
Slide 11: Global Footprint and Broad Underwriting Diversification
1 For the year ended December 31, 2018 12 Global Footprint and Broad Underwriting Diversification, with Low Exposure to Property Catastrophe Risk Net Premiums Written by Line of Business1 Gross Premiums Written by Geography1 Active portfolio management leads to attractive business mix with only 5% o
Slide 12: Life and Health Reinsurance Complements Non-Life Reinsurance Well
13 Life and Health Reinsurance Complements Non-Life Reinsurance Well 2 Attractive returns with high barriers to entry1 Highly concentrated market (top 5 reinsurers control ~80% of the market2) presents an opportunity for PartnerRe to grow profitably Focus on biometric risks (mortality, longevity and
Slide 13: Strong Underwriting Performance Coupled with Low Volatility
14 Strong Underwriting Performance Coupled with Low Volatility Source: Swiss Re Sigma, Respective company filings, period 2014 through 2018. Note: Past performance is not a guarantee of future performance 1 Combined ratios do not reflect the re-segmentation of U.S. Health for all periods presented.
Slide 14: Disciplined Capital Deployment Through the Underwriting Cycle
15 Disciplined Capital Deployment Through the Underwriting Cycle Probable Maximum Loss (PML) Wind (1-in-250 years) PML Earthquake (1-in-250 years) U.S. Northeast Hurricane Europe Windstorm U.S. California Earthquake Japan Earthquake 4 ($ in millions) PartnerRe optimizes its net exposure to catastrop
Slide 15: Improved 2019 Industry Pricing and Operating Environment
16 Improved 2019 Industry Pricing Has Led to an Improved Operating Environment for PartnerRe April 2019 Reinsurance Renewal Rate Movements January 2019 Reinsurance Renewal Rate Movements 4 Sources: Willis Re 1st View, January 2019 and April 2019 Ryan: Would not include in non-deal roadshow, only in
Slide 16: Robust Financial Strength and Strong Capitalization
Debt to Total Capital3 16.7% 17.7% 17.8% 16.7% 17 Robust Financial Strength and Strong Capitalization Total Capital2 Net Non-Life Loss Reserves1 Consistent history of favorable Non-Life reserve development, coupled with low capital volatility despite heavy catastrophe events in 2017 and 2018. 5 Cred
Slide 17: Sound Capital Structure and Financial Leverage
18 Sound Capital Structure and Financial Leverage 5 Optionality to access both USD and EUR capital markets. PartnerRe is the only Bermuda (re)insurer that has ever accessed the EUR capital markets; having issued 10 year EUR 750M Senior Notes at Mid-Swap + 105 in September 2016 Additional details on
Slide 18: Conservative Investment Portfolio, Duration-Matched with Liabilities
The Company’s investment policy distinguishes between liquid, high quality (investment grade) assets that support the Company’s liabilities, and the more diversified, higher risk asset classes that are allowed within the Company’s capital funds As of March 31, 2019, 82% of the Investment portfolio i
Slide 19: Recap of PartnerRe Value Proposition
Conservative Investment Portfolio, Duration-Matched with Liabilities Robust Financial Strength and Strong Capitalization Disciplined Capital Deployment Through the Underwriting Cycle Strong Underwriting Performance Coupled with Low Volatility Global Footprint and Broad Underwriting Diversification,
Slide 20: Recap of PartnerRe Value Proposition
Top 10 Global Reinsurer with Long Term Focus and Lack of Conflicts Global Footprint and Broad Underwriting Diversification, with Low Exposure to Property Catastrophe Risk Strong Underwriting Performance Coupled with Low Volatility Disciplined Capital Deployment Through the Underwriting Cycle Robust
Slide 21: PartnerRe Management Team
PartnerRe Management Team Emmanuel Clarke President & CEO PartnerRe Ltd. Nikhil Srinivasan Chief Investment Officer Greg Haft CEO, Specialty Marc Archambault CEO, Life and Health Scott Altstadt Chief Underwriting Officer Turab Hussain Chief Risk and Actuarial Officer Dorothée Burkel Chief Corporate
Slide 22: L&H: An Attractive Market for PartnerRe
L&H: An Attractive Market for PartnerRe 24 Life and Health is highly complementary to Non-Life reinsurance. Complementary characteristics: The business is uncorrelated with macroeconomic, equity market and most insurance events. Most products, especially those that are long term, and markets are not
Slide 23: L&H: An Attractive Market for PartnerRe
L&H: An Attractive Market for PartnerRe =" Life and Health is highly complementary to Non-Life reinsurance. a = Complementary characteristics: The business is uncorrelated with macroeconomic, equity market and most insurance events. Most products, especially those that are long term, and markets are