Bermuda-based re/insurers PartnerRe and Axis released preliminary second quarter results yesterday, June 13, 2015.
PartnerRe expects second quarter net losses of between $95 million and $115 million, driven by mark-to-market losses. It added that driven by increases in risk-free rates, net after-tax realised and unrealised losses on investments hit $217 million.
It also expects operating earnings between $100 million and $120 million, with $34 million of expenses related to the negotiated earn-out consideration paid to the former shareholders of Presidio Reinsurance Group and expenses related to the amalgamation with Axis Capital.
Axis expects operating income to reach between $91 million and $97 million, despite being hit with catastrophe and marine insurance losses in the second quarter. It expects catastrophe and weather-related pre-tax net losses of approximately $39 million, primarily related to weather loss events in the US and Australia.
Axis also experienced large losses in its marine insurance segment which contributed approximately $40 million in pre-tax net losses.
The losses were approximately $33 million above Axis’ historical annual average for this line of business, and related to energy offshore events which are expected to result in insured industry losses in excess of $1.5 billion.
“Notwithstanding the volatility inherent in this line of business, the marine line has delivered a combined ratio below 80 percent over the past five years and is one of our most profitable lines,” said Axis.
PartnerRe, Axis, Second Quarter 2015 Results, Bermuda