PartnerRe announces board changes
PartnerRe reports Q1 2018 loss
PartnerRe has reported that it made a profit of $125 million for the second quarter of 2018, a 35 percent fall from the $191 million it made over the same period of 2017.
However, the quarter’s results takes PartnerRe to a first half 2018 net profit of $5 million, down 98 percent from the $229 million it made in the same period of 2017. The company reported first half 2018 net unrealised investment losses on fixed income securities of $312 million. In the same period of 2017 PartnerRe announced net unrealised investment gains on fixed income securities of $137 million.
According to the company the unrealised investment losses on fixed income securities in 2018 were driven by an increase in risk-free rates and credit spreads and the unrealised investment gains on fixed income securities in 2017 were driven by a narrowing of credit spreads. The majority of the Company's investments, including all standard fixed income investments such as government bonds and investment grade corporate debt, are accounted for at fair value with changes in the fair value recorded in the Consolidated Statements of Operations.
PartnerRe said that underwriting profits, including both non-life and life and health operations and corporate expenses, were $36 million for the second quarter of 2018 compared to $37 million for the same period of 2017, and $46 million for the half year 2018 compared to $11 million for the same period of 2017.
“We delivered an annualised net income ROE of 8.4 percent in this quarter, driven by solid underwriting profits in both our non-life and life and health segments and a 20 percent increase in net premium written compared to last year’s second quarter,” said PartnerRe president and chief executive officer Emmanuel Clarke. “I am pleased to see our results reflect the efforts we have made, over the past two years, to gain relevance with our key clients and brokers, and to find new attractive business opportunities.
“Notwithstanding a competitive reinsurance market, we achieved a positive July 1 renewal where we continued to see increases in business margins. These results, in conjunction with continued improved efficiency in operating expenses, and the impact of higher reinvestment yields on our Investment portfolio, position our company well to deliver improved underwriting and financial results during the remainder of 2018.”
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