PartnerRe saw its profits increase in the third quarter of this year, after figures for the same period of last year were hit by termination fees relating to its failed merger with Axis Capital. However, its net premiums dropped due to cancellations and non-renewals of business in tough market conditions.
The company reported a net income of $240.3 million in the third quarter of 2016, which included net after-tax realized and unrealised gains on investments of $56.4 million, compared with a $243.3 million loss in the same period of 2015 mainly due to the amalgamation termination fee and reimbursement of expenses paid to Axis Capital of $315 million.
Its combined ratio for the period was 83.7 percent, almost similar to the year before.
Its non-life net premiums written were down 4 percent to $1.13 billion, however, driven by its property/casualty segment which reported decreases due to cancellations and non-renewals across all lines of business, higher premiums ceded under retrocessional contracts in the catastrophe line of business and the impact of foreign exchange.
It also said, however, these decreases were partially offset by new business across all lines of business. The ratio between net premiums written to gross premiums written was 89 percent in the third quarter of 2016, compared with 94 percent in the third quarter of 2015, reflecting the higher use of retrocessional coverage to protect capital.
“We delivered strong results in the third quarter, with operating ROE and net income ROE of 11.9 percent and 15.4 percent, respectively,” said Emmanuel Clarke, president and chief executive of PartnerRe.
“The non-life combined ratio of 82.7 percent highlights our underwriting discipline in a challenging environment, while continued strong favorable prior year development of $173 million reflects the quality and solidity of our balance sheet."
PartnerRe, Bermuda, Axis Capital, Insurance, Reinsurance, Results, Emmanuel Clarke, M&A