Partnerre Ltd. · OTC:PREJF

Partnerre — Investor Day (October 2017)

26 slides from Partnerre's investor day presentation, Oct 5, 2017

  1. Slide 1: EXOR Analyst and Investor Presentation

    EXOR Analyst and Investor Presentation October 5, 2017

  2. Slide 2: Safe Harbor

    Safe Harbor This presentation may contain, and PartnerRe may from time to time make statements, whether written or oral, that may be considered forward-looking statements. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expects,” “

  3. Slide 3: Agenda

    Agenda October 5, 2017 EXOR Analyst and Investor Presentation 3 Industry overview and PartnerRe positioning Achievements of the past 12 months 2017 Financial outlook

  4. Slide 4: PartnerRe is strategically well positioned to benefit from current market characteristics and trends

    October 5, 2017 EXOR Analyst and Investor Presentation 4 PartnerRe is strategically well positioned to benefit from current market characteristics and trends Market cha- racteristics and trends 1  Continued demand for global and relevant reinsurers ̵ We expect to see a continued demand for reinsura

  5. Slide 5: There will continue to be a need for well-diversified, relevant reinsurers

     More complex environment: Traditional forms of risk increasingly exposed to globalization and urbanization, and new forms of risk develop (e.g,. cyber risk, supply chain risk)  High protection gap in Non-Life (e.g. Harvey low percentage of insured losses), in Life reinsurance markets (eg. mortali

  6. Slide 6: Reinsurance will broadly remain an inefficient market with cycles, albeit of less amplitude

    October 5, 2017 6 Reinsurance will broadly remain an inefficient market with cycles, albeit of less amplitude 1  Many classes have substantial efficiency within a segment – even for these, negative risk selection remains an important factor (avoiding large mistakes)  Significant inefficiencies bet

  7. Slide 7: PartnerRe is a global, diversified, relevant and agile reinsurer

    Global: Global reach to access risks where they are. Broad access to business enabled by its own expertise and strong client & broker relationships Diversified: Highly diversified book of Life and Non-Life risks Relevant: Impactful capacity (line size) coupled with insightful solutions (focused spec

  8. Slide 8: PartnerRe is well positioned to achieve its strategic goals and differentiate from its peers

    8 PartnerRe is well positioned to achieve its strategic goals and differentiate from its peers 2 October 5, 2017 EXOR Analyst and Investor Presentation  Positioned to be core reinsurance partner to clients and brokers: ̵ Strength: $8B total capital and commitment to “AAA” level of capitalization –

  9. Slide 9: Geographic distribution and business line mix of premiums

    9 12% 36% 8% 44% Asia, Australia and New Zealand Europe Latin America, Caribbean and Africa North America Geographic Distribution of Gross Premiums Written (FY16) Net Premiums Written by Line of Business (FY16)  PartnerRe differentiates from its Bermudian and US peers because of (i) its more global

  10. Slide 10: Life & Health provides sizeable and profitable diversification and growth opportunities

    10 Life & Health provides sizeable and profitable diversification and growth opportunities 2 October 5, 2017 EXOR Analyst and Investor Presentation  Diversification: Different reinsurance cycle and low correlation of losses vs. Property & Casualty reinsurance  Profitability: Double digit ROE busin

  11. Slide 11: PartnerRe strategic priorities

    October 5, 2017 EXOR Analyst and Investor Presentation 11 Business Access  Increase footprint with key clients and brokers for sustained access to better business and readiness to participate with potential market opportunities  Grow selectively Life & Health book PartnerRe strategic priorities3 

  12. Slide 12: PartnerRe Group objectives

    12 PartnerRe Group objectives ROC > 8% over any 3-5 year period on Underwriting Operations ROE of 8-10% over the next 3-5 years period, taking into account current market conditions, by leveraging all the components of reinsurance balance sheet October 5, 2017 4  Return from underwriting capital (R

  13. Slide 13: Agenda

    Agenda October 5, 2017 EXOR Analyst and Investor Presentation 13 Industry overview and PartnerRe positioning Achievements of the past 12 months 2017 Financial outlook

  14. Slide 14: Key accomplishments of the past months

    14 Key accomplishments of the past 12 months October 5, 2017 Underwriting Operations  New worldwide organizational structure, aligned with how our clients buy reinsurance; strengthened Global Accounts function  Added and promoted new talent in Underwriting areas (e.g., new heads for Life & Health,

  15. Slide 15: Designed an effective organizational structure, aligned with client needs

    15 Designed an effective organizational structure, aligned with client needs A October 5, 2017 EXOR Analyst and Investor Presentation  Reorganized business operations with new worldwide organizational structure designed by products and client segments (P&C, Specialty, Life and Health) – better leve

  16. Slide 16: Strengthened Life & Health platform through Aurigen acquisition

    October 5, 2017 EXOR Analyst and Investor Presentation 16 Strengthened Life & Health platform through Aurigen acquisition A  Acquisition of a life reinsurer serving Canada (9% market share) and the US (5% market share), the largest regional market in the world where PartnerRe had virtually no prese

  17. Slide 17: Dynamically managed capital deployment to Cat through use of retro

    2010 2011 2012 20132014 2015 2016 0% 20% 40% 60% 80% 100% 17 1 Illustrative schematic to show management approach to risk 2 The expected profitability is an internal measure to PartnerRe for profitability measurement of risk 3 Minor regions are excluded PartnerRe Internal Estimated Expected Profitab

  18. Slide 18: Reduced operating costs and financing costs; optimized capital structure

    18  Achieved > $60m of savings compared to the 2015 cost baseline  H1 2017 operating costs 4% below budget  Implementing additional cost actions during the course of 2017  Reinvested > $10m of savings in growth initiatives Reduced operating costs  Issued a 10-years EUR 750 million senior bond (

  19. Slide 19: Investment portfolio allocation

    $bn 30-Sep-15 31-Dec-16 30-Jun-17 $bn % $bn % $bn % Standard Fixed Income 13.2 82.3% 15.2 89.5% 14.8 86.6% - Cash & Cash Equivalents 0.7 4.4% 1.5 8.6% 0.8 4.7% - Government Subtotal 3.4 21.2% 5.0 29.3% 4.5 26.4% - Corporate Subtotal 5.0 31.2% 5.6 32.9% 6.3 36.8% - MBS Subtotal 3.5 21.7% 2.6 15.4% 2.

  20. Slide 20: Prepared to deploy capital in selected investment strategies

    20October 5, 2017 Max Limit ($bn) 1.5 0.9 0.8 1.2 Alternative Credit Real Estate Equities Third Party Private Equity Funds Financial Investments and Real Estate 3.4 Normal Allocation Bands and Current Investment ($bn) Allocation Trend  Current total allocation to Financial Assets and Real Estate at

  21. Slide 21: Agenda

    Agenda October 5, 2017 EXOR Analyst and Investor Presentation 21 Industry overview and PartnerRe positioning Achievements of the past 12 months 2017 Financial outlook

  22. Slide 22: Outlook for Financial Year 2017

    22 Outlook for Financial Year 2017 October 5, 2017 EXOR Analyst and Investor Presentation  H1 2017 Net Income ROE of 8.0%1 ($243m net profits) driven by ̵ Non-life combined ratio of 91.7% ̵ Investments net total return of $363m (2.1% on average assets)  Expected Q3 pre-tax loss in the $60-90m rang

  23. Slide 23: Appendix

    October 5, 2017 EXOR Analyst and Investor Presentation 23 APPENDIX

  24. Slide 24: PartnerRe Business Profile

    PartnerRe Business Profile Company History  Founded in 1993  Strong, diversified franchise built on successful organic growth and 3 strategic acquisitions: ̵ SAFR in 1997 ̵ WinterthurRe in 1998 ̵ Paris Re in 2009  Approximately 1,000 employees Business Units3  Three business units (2016 figures)

  25. Slide 25: PartnerRe Business Mix: Edge in Specialty Lines, Low Exposure to Property Catastrophe

    PartnerRe Business Mix: Edge in Specialty Lines, Low Exposure to Property Catastrophe  Our clients are global insurers, Lloyds syndicates, or monoliners  Requires dedicated underwriting expertise (low modelling capabilities). PartnerRe is a recognized leader  High barriers to entry  Our clients

  26. Slide 26: Historical Financial Performance

    Historical Financial Performance 4,718 5,570 5,932 5,548 5,357 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 2012 2013 2014 2015 2016 Gross Written Premiums 664 722 755 749 413 1,073 597 998 453 517 87.8% 85.3% 86.2% 85.6% 93.6% 70% 75% 80% 85% 90% 95% 100% 0 200 400 600 800 1,000 1,200 2012 2013 2014

PartnerRe — Investor Day (October 2017) on 6ix