PartnerRe bounces back from loss to $2.23bn profit in 2023
PartnerRe turned a $2.3 billion profit in 2023, bouncing back from a loss of $949 million a year earlier as the company produced a strong underwriting profit and turned around its investment returns.
The Bermuda-based re/insurer said its operating income rose 73% to $1.45 billion from $836 million while gross written premiums rose 4.7% to $9.1 billion.
Net premiums earned rose 9%, reflecting 4% growth in Non-life and 26% growth in Life and Health.
The non-life underwriting result was $1,071 million, with a combined ratio of 81.6% while the life and health allocated underwriting result, including allocated net investment income, was $159 million.
PartnerRe president and chief executive officer Jacques Bonneau said: “2023 has proven to be one of the strongest years in our recent history. Favourable 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%.
“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.”
He added: “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.”
Bonneau, who is retiring as CEO and being succeeded by Philippe Meyenhofer, currently its CEO for specialty lines, added: “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.”
The company reported a net investment return of $1.15 billion including unrealised gains on fixed maturities and short-term investments of $391 million. Net investment income increased by $247 million to $646 million.
In common with other Bermuda-based re/insurers, the company also said it had recognised a net deferred tax asset of $432 million related to the enactment of the Bermuda Corporate Income Tax.
This included $487 million related to the Economic Transition Adjustment, which is intended to provide a fair and equitable transition into the tax regime, partially offset by a $55 million net deferred tax liability in relation to the future tax impact of temporary differences between book and tax value.
The CIT is due to come into effect in 2025.
Losses and loss expenses increased from $4.72 billion to $4.99 billion.
Return on equity for the company's net income was 32% compared to -14.2% in 2022 while ROE on operating income rose from 12.5% to 20% for the same period.
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