PartnerRe profits soar after investment gains

PartnerRe’s profits rose by more than 800 percent in 2016, largely due to net realised and unrealised gains on investments over the year.

The company’s net income attributable to common shareholders for 2016 came to $387 million, a substantial rise from the $48 million it made in 2015. According to the company this rise was primarily due to net realised and unrealised gains on investments of $26 million in 2016 compared to losses of $297 million in 2015.

However, the company made a loss of $191 million for the fourth quarter of 2016 compared to a profit of $162 million for the same period of 2015.

In addition the company also saw its combined ratio deteriorate from 85.6 percent for full year 2015 to 93.6 percent for full year 2016.

The company blamed the quarterly loss and the weakening in its combined ratio on losses from Hurricane Matthew of $45 million in the fourth quarter of the year and lower favourable prior years' reserve development.

Its gross written premiums fell slightly to $5.35 in 2016 compared with $5.5 billion in 2015.

PartnerRe president and CEO Emmanuel Clarke said: “We delivered good operating results in the fourth quarter with an annualised adjusted operating return on equity of 9.8 percent. The non-life combined ratio of 89.6 percent, notwithstanding losses related to Hurricane Matthew, highlights our underwriting discipline while favourable prior year development continues to remain strong. In the current market conditions, we are undertaking the right underwriting actions to better serve our core clients while preserving our long-term capital strength.”