Reinsurance News

PartnerRe posts Q1 income of $497mn, boosted by P&C results

16th May 2019 - Author: Matt Sheehan

Bermudian reinsurer PartnerRe has posted net income of $497 million for the first quarter of 2019, boosted by the strong performance of its property and casualty (P&C) segment, which had a combined ratio of 87.7%.

partner-re-logo-smallerThe results represent an improvement on Q1 2018, when PartnerRe posted a net loss of $210 million, which contributed to an overall loss of $132 million for the full-year.

The reinsurer grew its non-life net premiums written by 24% compared to the first quarter of 2018, driven by a 30% increase in the P&C segment and a 13% increase in the specialty segment.

Non-life underwriting profit, however, was $24 million for the quarter with a combined ratio of 97.7%, compared to $44 million with a combined ratio of 95.2% for the same period last year.

The combined ratio continued to benefit from net favourable prior years’ reserve development of $11 million (1.1 points) for the quarter, compared to $34 million (3.7 points) in Q1 2018, with favourable development in the P&C segment in the quarter offset by negative development in the specialty segment.

For the P&C segment, the combined ratio was 87.7% for the quarter, compared to 100.2% last year, driven by an improvement in the current accident year technical ratio and higher prior year favourable reserve development.

The ratio included $49 million (7.3 points) of favourable prior year reserve development, including the 2018 catastrophic events where an increase in Jebi losses was offset by retro recoveries.

This compares with $11 million (1.9 points) favourable prior year reserve development in the first quarter of 2018.

In terms of life and health, PartnerRe’s net premiums written were up 18% in Q1, primarily driven by growth in life business.

The allocated underwriting was a gain of $30 million, supported by 17% growth in net premium earned and 30% growth in technical result, but partially offset by a $4 million other expense increase.

PartnerRe’s net investment return for the quarter was $600 million, or 3.6%, and included net investment income of $110 million, net realized and unrealized investment gains of $469 million and interest in earnings of equity method investments of $21 million.

This compares with a net investment loss of $102 million in the first quarter of 2018.

Emmanuel Clarke, President and CEO of PartnerRe, commented on the company’s results: “In the first quarter of 2019, we delivered strong results in our P&C and Life and Health segments, and in our Investments portfolio, while reporting an underwriting loss in our Specialty segment, driven by a combination of mid-sized losses and negative reserve development, and where we are undertaking portfolio actions to improve future underwriting performance.”

He continued: “Positive momentum continued in our April 1 Non-life renewals with business production up double-digits on the back of continued improvements in the overall pricing environment, further solidifying the Company’s improved underwriting performance outlook for the remainder of the year.”

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous article:
AXA unveils rebranding of parametric insurance unit to AXA Climate

Global re/insurer AXA has rebranded its specialist parametric risk transfer division from AXA Global Parametrics to AXA Climate, and has...