Bermuda-based reinsurer PartnerRe Ltd. has reported a first-half 2023 combined ratio of 83.5%, with a non-life underwriting result of $466 million, contributing to a significant year-on-year rise in net income for the period.
All in all, PartnerRe has reported H1 2023 net income of more than $787 million, a stark improvement from the net loss of over $998 million seen a year earlier.
The improved net income was supported by investment income of $286 million, up from $183 million a year earlier, and a positive underwriting result in non-life and life and health business.
As well as the solid non-life underwriting profit of $466 million, the life and health segment produced an allocated underwriting result for H1 2023 of $78 million.
In terms of growth, the company’s gross premiums written (GPW) hit $5.3 billion for H1 2023, compared to $4.9 billion last year. Net premiums written (NPW) in H1 2023 stand at $4.54 billion, with a small increase from last year’s $4.25 billion.
Net premiums earned grew by 10% to $3.9 billion, reflecting 6% growth in P&C, 7% growth in specialty, and 21% growth in life and health.
Loss and loss adjustment expenses did increase year-on-year, from $2.1 billion to $2.5 billion in H1 2023.
Jacques Bonneau, President and Chief Executive Officer at PartnerRe, commented, “Favorable market conditions persist halfway through 2023, and we remain focused on our disciplined approach to capitalizing on these opportunities and making a meaningful contribution to the Covéa group. Our operating income of $636 million for the first half of 2023 continued its growth trend, up 24% compared to the first half of 2022.
“The fundamentals across operating segments are strong. For the non-life business, we saw an improvement in current underwriting year performance for both the P&C and Specialty segments as compared to the first half of 2022, though the non-life combined ratio increased marginally by 1.6 points, as the first half of 2022 benefited from favourable prior year reserve development. The contribution from the Life and Health business continues to be a positive source of earnings to the group as premium volume grows.”
Bonneau concluded: “Our investment portfolio also performed well, demonstrated by 57% growth in net investment income compared to the first half of 2022, and we expect this trend to continue as we deploy our increasing cash flows from operations at attractive reinvestment rates.”
