PartnerRe shakes up P&C business
PartnerRe has announced that its third quarter results were impacted by losses from Typhoons Jebi and Trami and Hurricane Florence as well as losses from its investment portfolio.
The company reported a net loss of $106 million in the third quarter, which included net unrealised investment losses on fixed income securities of $53 million and net foreign exchange losses of $17 million.
This was down on the net loss of $84 million that the company reported for the same period of 2017, which included net unrealised investment losses on fixed income securities of $27 million and net foreign exchange losses of $41 million.
The quarter also included $120 million pre-tax losses from Typhoons Jebi and Trami and Hurricane Florence. It posted a non-life combined ratio of 107.8 percent during the quarter, driven by P&C combined ratio of 114.7 percent and specialty combined ratio of 97.4 percent.
Its gross written premiums for the third quarter of 2018 increased to $1.5 billion compared with $1.38 billion a year earlier. It said its non-life net premiums written were up 7 percent for the quarter driven by new business written in the P&C segment, partially offset by lower reinstatement premiums.
Non-life net premiums written were up 13 percent for the first nine months of 2018 compared to the same period of 2017 driven by a 15 percent increase in the P&C segment and 11 percent increase in the specialty segment.
For the first nine months, the non-life underwriting profit was $20 million (combined ratio of 99.4 percent) compared to a $21 million loss (combined ratio of 100.7 percent) for the same period of 2017.
“The third quarter of 2018 was an active period of catastrophic and man-made loss events which impacted the Company's Non-life combined ratio,” said Emmanuel Clarke, chief executive officer. “Despite these events, in the first nine months of 2018, the Company's Non-life segment reported an underwriting profit, while our Life and Health segment significantly improved its underwriting profit and margin compared to the prior year. This performance — excluding the net unrealised losses primarily driven by increases in risk free rates — has helped produce a solid profitability in the first nine months of 2018.
“Our enhanced market positions with clients and brokers led to a double digit increase in net premium written compared to the last year. This, coupled with our strong total capital position, positions our Company well for the upcoming January renewal season.”
PartnerRe, Q3 2018, results, losses