PartnerRe’s ramped up its non-cat non-life business in the fourth quarter of 2013, increasing net premiums written by 29 percent to $1.2 billion, as the company drives growth through new business segments.
PartnerRe attributed fourth quarter growth to new business in the global specialty and North American sub-segments, the inclusion of PartnerRe health’s business in the life and health segment, and new business in the global P&C sub-segment.
It was notable that PartnerRe did not see growth in its catastrophe division, which wrote $7 million less premium in the fourth quarter, with that sector of the market facing particular pressure from convergence capital.
PartnerRe’s North American book, which grew premiums written by 25 percent during the quarter, was buoyed by growth in its agriculture business. Its global P&C business increased premiums written by 52 percent during the period largely thanks to new motor business; while its specialty business grew by 32 percent during the quarter driven by its specialty casualty, agriculture and marine lines of business.
PartnerRe also ramped up its life and health segment, which saw premiums increase by 26 percent during the last quarter of 2013.
PartnerRe increased net premiums written by 18 percent for the full year, reaching $5.4 billion for 2013. The re/insurers achieved a non-life combined ratio of 88 percent for the fourth quarter, 85.3 percent for the full year. The figure includes 3.4 points (or $142 million) of losses related to the German hailstorms, the Alberta floods and the European floods and benefitted from favourable prior year development of 17 points (or $721 million).
Commenting on the results, PartnerRe president and CEO, Costas Miranthis said, “We had a strong fourth quarter to finish 2013. We generated an 11.5 percent operating ROE for the quarter, and close to 19 percent net income ROE, reflecting a gain in one of our insurance investments.
“Despite challenging market conditions, the strength of our global franchise allowed us to modestly grow our portfolio while we maintained our usual underwriting discipline. We also had good production in our life and health operations which continue to grow profitably. I am confident that the strength of our client relationships and our technical skills in evaluating a broad range of risk will continue to differentiate us in the years to come.”
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