Global reinsurer PartnerRe has reported a second quarter net income of $314 million, up from the $229 million achieved in the prior year period.
For the half year 2021, a $204 million net income has been announced, after registering a loss in the same period of 2020.
Operating income was $151 million for the second quarter, compared to last year’s operating loss of $256 million.
This improvement was a result of gains in current accident year attritional loss ratios and lower levels of adverse prior year development, and also the effects that COVID-19 reserves had on the second quarter of 2020.
Non-life net premiums written were up 37% for the second quarter, an increase driven by a 47% jump in the P&C segment.
The Non-life underwriting profit was $150 million, at a combined ratio of 88.6%, for the second quarter, this compares to a loss of $260 million for the prior year period.
The P&C segment reported an improved combined ratio of 93.5% for the second quarter, while the half year 2021 included catastrophic losses of $92 million for Winter Storm Uri, net of retrocession and reinstatement premiums.
The prior year included COVID-19 related losses, net of retrocession and reinstatement premiums, of $159 million for the second quarter and half year 2020.
Excluding the impacts of COVID-19 and large catastrophic losses, PartnerRe says there was an improvement in the current accident year loss ratio and prior year development for the second quarter and half year 2021, compared to the same periods of 2020.
The improvement in the current accident year loss ratio was driven primarily by business mix changes and rate improvements.
In Life and Health, net premiums written were up 8% for the second quarter, while on the underwriting side a profit of $23 million was hit.
Net investment return in the second quarter was $321 million, compared the the prior year period’s $627 million.
PartnerRe President and Chief Executive Officer Jacques Bonneau commented, “We delivered strong results in the second quarter with an annualized operating ROE of 8.8%, and I am pleased to see the positive impacts of our portfolio actions begin to show through our financial result.
“Our Non-life combined ratio of 88.6% includes improvements in the current accident year loss ratio from business mix changes and overall favorable pricing conditions across most lines of business, as well as improvements in prior years’ reserve development as older underwriting years run off.
“Our Life and Health segment also significantly improved its underwriting profit compared to the prior year.
“Third party capital currently stands at $1.1b of assets under management and provided us the ability to increase underwriting capacity and line sizes. These underwriting results, combined with good investment performance, helped produce solid profitability for the second quarter of 2021.”