Bermuda reinsurer PartnerRe last night announced a 2009 profit of $1.5 billion in what chief executive officer Patrick Thiele called an "exceptional" year.

The full-year profit broke down to $23.51 per share and compared with net income of $46.6 million for 2008.

Fourth-quarter net income also surged to $354.4 million, or $4.25 per share, compared to $95.3 million, or $1.53 per share, in the same period in 2008.

Operating earnings for the fourth quarter were $315 million, or $3.87 per share, compared to $53.9 million in the prior-year period, while full-year operating earnings were $932.1 million, or $14.59 per share, compared to $469.3 million, or $8.43 per share, in 2008.

The results were boosted by the acquisition of Switzerland-based Paris Re, completed on October 2 last year, which gave PartnerRe a place in the world's top five biggest reinsurers.

"We had an exceptional year in 2009, achieving an operating return on beginning equity of 22 percent and GAAP book value per share growth of 32 percent," Mr. Thiele said in last night's statement.

"The company also recently announced a six percent increase in the annual common dividend per share, marking the 17th consecutive year the company has increased its dividend since inception.

"These results form part of PartnerRe's long track record of success, which has seen the Company grow its GAAP book value per share plus dividends at a compounded rate of 13 percent over the last five years."

Mr. Thiele said PartnerRe's performance during January 2010 renewals "confirmed an environment of stability for reinsurance market in total, and we expect that environment to continue for the remainder of the year".

He added: "The acquisition of Paris Re means we are a larger and stronger company with an attractively priced, balanced portfolio of risks. This, together with our strong market position and active capital allocation, will hold us in good stead through 2010. Barring any unusually large loss events in the year, we expect to achieve our financial goals."

Non-life net premiums written totalled $747 million for the fourth quarter, up 20 percent from the same period in 2008, primarily due to the contribution from Paris Re.

Underwriting profitability was boosted by a lack of major catastrophes. The combined ratio — or proportion of premium dollars spent on claims and expenses — was 80.3 percent, compared to the previous year's fourth quarter combined ratio of 102.2 percent.

Full-year after-tax realised and unrealised gains on investments of $497 million, or $7.78 per share, and $17.6 million, or 22 cents per share, for the quarter, were included in the net income figure.

Paris Re contributed $178 million of net written premiums in the fourth quarter and also boosted PartnerRe's balance sheet.

At December 31, 2009, total capital was $8 billion and total shareholders' equity was $7.6 billion, both of which include approximately $2 billion of new shares issued as part of the acquisition of Paris Re. This compares to total capital of $4.9 billion, and total shareholders' equity of $4.2 billion a year earlier.

Total assets grew $23.7 billion, compared to $16.3 billion at the end of 2008, with the increases in most line items primarily due to the inclusion of Paris Re.

Over the 12-month period, total investments, cash and funds held, directly managed, increased 55 percent to $18.2 billion at December 31, 2009.

Book value per common share at the end of last year was $84.51 on a fully diluted basis compared to $63.95 at the end of 2008.