Bermuda-based reinsurer PartnerRe Ltd. has announced a non-life combined ratio of 81.6% for full year 2023, as the underwriting result hit $1.1 billion, while the life and health (L&H) allocated underwriting result amounted to $159 million.
On the back of a solid performance in both segments, PartnerRe has generated net income available to common shareholders of $2.3 billion for the year, a significant improvement on the loss of more than $900 million in 2022.
Group-wide, gross premiums written (GPW) rose to $9.1 billion from $8.7 billion, as net premiums written increased from $7.6 billion to $7.9 billion. Net premiums earned also increased year-on-year, by 9% to $7.9 billion, reflecting 4% growth in non-life and 26% growth in L&H.
On the asset side of the balance sheet, the firm has reported net investment income of $645.7 million, an improvement on 2022’s $398 million.
By segment, the non-life underwriting result was $1.1 billion with a combined ratio of 81.6%. The company highlights that during the year, P&C was less impacted by catastrophic activity, while PartnerRe continued to expand in its specialty and L&H businesses.
In L&H in 2023, the allocated underwriting result, including allocated net investment income, reached $159 million.
On December 27th, 2023, the Government of Bermuda enacted the Corporate Income Tax Act 2023, which will apply a 15% corporate income tax to certain Bermuda businesses in fiscal years beginning on or after January 1st, 2025. In light of this, PartnerRe recognized a net deferred tax asset of $432 million related to the enactment of the CIT Act.
Jacques Bonneau, President and Chief Executive Officer, PartnerRe, commented, “2023 has proven to be one of the strongest years in our recent history. Favorable market conditions, combined with a continued focus on disciplined execution, resulted in operating income of $1,447 million for an operating return on equity of 20.0%.
“In P&C we have experienced a notable decrease in the impact to our earnings from catastrophic activity this year, while we continued to grow the premium base of our Specialty and Life and Health businesses. Our investment portfolio also performed well, demonstrated by 62% growth in net investment income compared to 2022 as we continue to reinvest available cash at higher rates. Looking toward the future, PartnerRe remains committed to its core values and strategic priorities to bring value to our clients, capital partners and shareholders. We will continue to build upon the strong foundation we have established and focus on continuing to improve upon our relentless pursuit of execution.
“With my retirement announced to take effect at the end of March 2024, it has been a privilege for me to work alongside the talented individuals here at PartnerRe. I am confident we have the right leadership to continue leading the company forward in all facets of our business.”
