PartnerRe 3Q EPS Above Estimates, J.P. Morgan Reports

PartnerRe PER reported 3Q EPS of $3.69 “versus our estimate of $2.78 and consensus of $3.05,” J.P. Morgan reports. The majority of the upside was from a combination of favorable development, accident-year margins (despite a larger than estimated New Zealand loss), and a lower tax rate, which more than offset an FX drag. “All other items essentially offset each other,” J.P. Morgan writes. “Written premium volume was lower than estimated, which we suspect reflects the non-renewal or attrition of more business from the Paris Re book than we were assuming.” Book value growth was in line with J.P. Morgan's estimates (+9.2% vs. +9.2%E), as upside from operations was partially offset by lower asset gains and a slightly bigger headwind from FX. PartnerRe currently trades at $79.99.