Bermuda-based reinsurer PartnerRe reported losses and a decrease in operating earnings for the second quarter of 2015, driven by mark-to-market losses.
In line with its predictions, the reinsurer reported a net loss of $103.1 million in the second quarter of 2015, compared with a profit of $257.7 million in the second quarter of 2014.
Its operating earnings were also within the range previously mentioned, between $100 million and $120 million. PartnerRe reported operating earnings of $112.5 million in the second quarter of 2015, compared with $133.5 million in the prior year quarter.
PartnerRe’s combined ratio improved 90.3 percent in the second quarter of 2015, compared with 91.5 percent in the second quarter of 2014, while its gross written premiums shrank slightly to $1.4 billion.
David Zwiener, PartnerRe interim chief executive officer, said: “We continued to see challenging market conditions during the second quarter, both in terms of persistent competitive reinsurance pressures and difficult financial markets.
“Nevertheless, we posted strong technical results in the quarter, which when combined with our first quarter performance, resulted in an operating return on equity (ROE) of 8.5 percent. As you saw from our press release earlier this month, our tangible book value per share was impacted by increases in longer term risk-free rates both in the US and Europe, resulting in a significant mark-to-market loss on our investment portfolio. For the year to date, however, our tangible book value is up 1 percent.”
He added: “As we look ahead to the important fall renewal season, we are encouraged by the success of the current June/July renewals, which accounts for approximately 10 percent of our non-life treaty business.
“Despite continued competitive pressures, we saw some initial signs that markets are beginning to stabilise, and we wrote a number of profitable new treaties. This speaks to our strong market presence, the quality of our client relationships, and underscores the strength of the PartnerRe franchise.”
PartnerRe, David Zwiener, Bermuda, Second Quarter 2015 Results