Bermudian legacy reinsurance company Fortitude Re has reported a large drop in net income over 2020, partly due to much higher payment of policy holder benefits and losses incurred.
Income totalled just $864 million for the year, compared with $3.64 billion in 2019.
The decrease can largely be attributed to the change in policyholder benefits and losses incurred, which rose from $1.51 billion in 2019 to $3.50 billion last year.
Total benefits, losses and expenses similarly came to $3.87 billion, compared with $1.90 billion previously.
Fortitude Re’s premiums also shrank slightly last year, decreasing from $333 million to $295 million.
Likewise, net investment income fell from $1.96 billion to $1.38 billion, although investment gains increased substantially from $246 million to $717 million.
Fortitude Re was created in 2018 by American International Group (AIG) in collaboration with global alternative asset manager The Carlyle Group. However, Carlyle Group and Japanese insurer T&D Holdings bought out AIG’s stake in the reinsurer last year.
The aim of the launch had been to build AIG’s Bermudian legacy reinsurance platform, formerly called DSA Re, into a standalone provider of reinsurance.
