PartnerRe last night announced record operating earnings per share.

The news came in the firm’s earnings report for the fourth quarter, which also revealed net income of just shy of $1 billion for the year.

Operating earnings at PartnerRe — due to merge with Axis Capital later this year — for 2014 were $775.4 million, or $14.76 per share — $33.7 million up on the previous year’s $721.7 million.

PartnerRe interim CEO David Zwiener said: “We had an excellent year in 2014, posting an operating return on equity of 13.5 per cent, above our long-term average.

“While financial markets remained somewhat volatile during the year, we realised sizeable gains in our investment portfolio, which, when combined with the strong operating results, culminated in us delivering dividend-adjusted tangible book value growth in excess of 19 per cent.

“These results are particularly gratifying given the very difficult reinsurance operating environment.”

In the fourth quarter of last year, net premiums written totalled $1.2 billion, up three per cent, while the full year figure of $5.7 billion were up six per cent on 2013.

The PartnerRe report said the increases cane from the accident and health business and new mortality and longevity business in the life and health segment, as well as from increased business in global specialty and North America non-life sub-segments.

Mr Zwiener said that the merger with Axis, announced last week, would create a reinsurance and specialty insurance market leader.

He added: “While both PartnerRe and Axis are strong, well-positioned, successful companies in their own right, the combination of the two only enhances those strengths and accelerates our strategies.

“Together, we will have greater scale, with a more efficient global network, even stronger underwriting teams, an expanded underwriting platform and a greater ability to deliver the best service for our clients, while creating long-term value for our shareholders.”