Investment losses hit PartnerRe but CEO eyes positives
Net realized and unrealized investment losses of $1.8 billion on fixed maturities and short-term investments hit PartnerRe’s full-year 2022 hard, meaning it posted a loss of more than $1 billion. But the company’s CEO highlighted the reinsurer’s strong operating performance, especially in Q4, and ability to capitalise on an attractive rate environment.
The reinsurer reported a net loss of $1.1 billion for the full year 2022, compared to income of $679 million for the same period of 2021. For the fourth quarter, it made a net income of $433 million, compared to income of $362 million for the same period of 2021, an increase of 20%.
Its operating income for the full year 2022 was $809 million compared to an operating income of $545 million for the same period of 2021, an increase of 48%. Its operating income was $370 million for the fourth quarter of 2022, compared to operating income of $300 million for the same period of 2021. It said this was a result of improvements in its underwriting results.
Its gross written premiums last year increased by 6% last year to reach $8.6 billion. Its P&C segment posted a combined ratio of 88.5% last year and its speciality unit 82.2%.
PartnerRe president and CEO Jacques Bonneau said: "Our operating performance for the fourth quarter of 2022 was excellent, with operating income of $370 million. Our annual operating performance also maintained its positive momentum, and operating income ROE was 12.0% for the year. In addition to solid underwriting results, during 2022 we grew net investment income by almost 6% as we continued to reinvest available cash at rates that are meaningfully higher than our existing book yield.
Looking to 2023, we were able to capitalize on the attractive rate environment for the January 1st renewals. We grew our production premium base by 9% over January 1st, 2022, levels while at the same time improving the portfolio through higher attachment points on our property catastrophe portfolio, tighter terms and conditions and increased rates above inflation trends over a meaningful portion of the portfolio. We continued to execute on responding to our clients and our distribution partners once we received the necessary data to complete our analysis of risk."
