EXO Exor NV

Reinsurer PartnerRe Ltd. on Monday reported a 16% drop in operating profit in the fourth quarter driven by lower premiums.

Operating profit is a closely watched performance metric in the insurance industry that excludes certain items that aren't considered recurring on a quarterly basis, such as capital gains and losses from investment portfolios.

The Bermuda-based company is merging with Italian investment firm Exor SpA in a deal expected to close in the current quarter.

Reinsurers take on some or all of the risk of policies sold by primary insurers to individuals and businesses.

Over all, PartnerRe reported a profit of $176.5 million, or $3.30 a share, compared with $276.9 million, or $5.26 a share, a year earlier. On an operating basis, profit was $3.74 a share, down from $4.37 a share.

Revenue fell 17% to $1.38 billion as net premiums written fell 13% to $1.06 billion.

Analysts surveyed by Thomson Reuters had projected a profit of $2.64 a share on $1.22 billion in net premiums written.

The latest period included net realized and unrealized investment losses of $22.8 million, while the year-earlier period included net realized and unrealized investment gains of $82.1 million.

The combined ratio, or losses and expenses as a percentage of premiums collected, was 86.5%, compared with 82.8% in the previous quarter and 85.3% in the year-ago period.

Shares, inactive in after-hours trading, closed Monday at $140.32, up 16% over the past 12 months.

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

February 08, 2016 17:25 ET (22:25 GMT)

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