PartnerRe overcomes difficult final quarter to record full year profits in 2019
PartnerRe overcame a challenging Q4, and the memory of a difficult year in 2018, to record solid profits for the year in 2019.
The reinsurer generated a net profit of $936.7 million for the full year 2019, a remarkable turnaround given its net loss of $86.0 million recorded in 2018.
However, the final quarter of the year was more punishing for the reinsurer, which made a net loss of $96.2 million, compared to a more modest loss of $20.0 million in Q4 2018.
Across the business, gross written premiums were $7.28 billion for the full year 2019, compared to $6.3 billion the previous year. In Q4 2019 gross written premiums were $1.55 billion, up on the $1.31 billion written in Q4 2018.
In the non-life segment PartnerRe brought its combined ratio down to 100.3 percent in 2019, from 101.9 percent in 2018. But here again Q4 2019 was a difficult month for the reinsurer, with the combined ratio rising to 113.8 percent, compared to 108.7 percent in the same period of 2018.
Emmanuel Clarke, president and chief executive officer at PartnerRe, noted the Q4 combined ratio had been driven up by losses related to Typhoon Hagibis and the agriculture line of business. Despite this, group profits had been stabilised by strong investments results, as well as a solid contribution from the life and health segment.
Clarke added: “PartnerRe has taken actions to improve its non-life underwriting performance in 2020, leveraging improved non-life market conditions at the January renewal and ongoing portfolio optimisation actions. With further margin improvement expected in our non-life portfolio during the course of the year, and continued growth in life and health, I am confident we will be able to deliver in 2020 solid growth in book value for our shareholder.”