PartnerRe has announced that its net income for the first six months of 2017 came to $243 million, down substantially from the first half 2016 figure of $420 million.
At the same time second quarter 2017 income came to $191 million, a substantial increase on the $137 million it made over the same period of 2016.
The company said that its results included adjustments of $7 million and $13 million for the three and six months ended June 30, 2017, respectively, primarily represented transaction costs related to the Aurigen acquisition and reorganisation related severance costs.
PartnerRe finalised its takeover of North American life reinsurance company Aurigen Capital in April 2017.
“We delivered good results in the second quarter with an annualised adjusted net income ROE of 13.0 percent driven by strong non-life underwriting results and investments contribution,” said PartnerRe president and CEO Emmanuel Clarke. “The non-life combined ratio of 87.7 percent was driven by a strong performance in our Specialty segment, with a technical ratio of 77.9 percent, highlighting the quality and diversification of our specialty portfolio, but also by an improvement in our P&C non-CAT accident year technical ratio compared to the second quarter of 2016.
“Having successfully completed the acquisition of Aurigen in the quarter, we will now work on leveraging this platform to expand our footprint in North America, consistent with our strategy to increase our revenues and profitability in the broader life and health segment.”According to PartnerRe, non-life net premiums written were down 2 percent compared to the same period of 2016, primarily as a result of cancellations and non-renewals, higher premiums ceded and foreign exchange movements.
PartnerRe said that the non-life combined ratio of 87.7 percent was 20.6 points lower than the ratio reported in the second quarter of 2016, due to the absence of catastrophic or large loss events in 2017 compared to a high level of catastrophe and weather-related activity and a significant energy loss impacting the second quarter of 2016; and improvements in attritional accident year technical ratio in both its specialty and P&C segments.
In its life and health segment PartnerRe said that net premiums written were up 21 percent in the second quarter of 2017 compared to the same period of 2016, primarily driven by the inclusion of the Aurigen premiums, growth in health business and new longevity business, partially offset by the impact of foreign exchange.
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PartnerRe, Second quarter 2017 results, Bermuda, Emmanuel Clarke