PartnerRe expects to write and bind approximately $2.5 billion of non-life treaty premium during the January 1, 2016 treaty renewal season.
On a constant foreign exchange basis, this represents a decrease of 5 percent from the renewable premium base.
The Bermuda-based reinsurer renews approximately 65 percent of its total annual non-life treaty business on January 1. The remainder is made up of of treaty business that renews at other times during the year.
As well as treaty business, the company writes approximately $400 million of facultative business which renews throughout the year.
“As we expected, the January 1 renewal was characterised by further erosion of prices and terms, driven by an oversupply of capital,” said Emmanuel Clarke, president of PartnerRe.
“Given these persistent challenging operating conditions, we approached the renewal expecting a reduction in volume and capital deployed.
“Our teams did an excellent job of maintaining discipline throughout negotiations, while further strengthening our high quality client and broker relationships. The strength of the PartnerRe franchise resulted in us renewing a high quality portfolio, in some cases at superior market terms, and finding additional pockets of attractive new business.”
Partner Re, Treaty Renewal Season, Emmanuel Clarke, Bermuda