The chief executive officer of Bermuda-based reinsurer PartnerRe remains confident about the future despite the reinsurer having posted a fall in profits for the third quarter of 2014.
The reinsurer’s net profit fell to $182.2 million in the third quarter of 2014, compared with $319.2 million for the third quarter of 2013. For the first nine months of 2014, its profit hiked to $735.5 million, compared with $339.4 million for the first nine months of 2013.
Its gross written premiums increased to $1.4 billion in the quarter, compared with $1.3 billion in the same period of the prior year.
The reinsurer’s net premiums written increased by 6 percent to $1.3 billion. The increase was driven by the life and health segment and the global specialty non-life sub-segment.
In particular, the increase was primarily driven by PartnerRe’s accident and health business, new business in mortality and longevity lines and new business written at the January 1 renewals across multiple lines of business in the global specialty non-life sub-segment.
These increases were partially offset by decreases in the North America and catastrophe non-life sub-segments.
Its combined ratio deteriorated to 84.2 percent, compared with 74.9 percent in the third quarter of 2014.
Costas Miranthis, PartnerRe president & chief executive officer, said: “I am very pleased with our third quarter results. While the absence of major catastrophe losses and the continued favourable reserve development were important factors in our operating performance, the foundation of these results is our seasoned diversified portfolio. Our strong operating results allowed us to absorb some volatility in investment markets and continue on our path of compounding book value per share.
“There has been no change in our view of the current competitive environment. We continue to see current conditions as challenging, but we are confident in our ability to identify opportunities to create value for our shareholders over the long-term."
PartnerRe, Bermuda, Third Quarter 2014 Results