PartnerRe reports a loss for Q1 but remains bullish going forward
PartnerRe reported a loss for Q1, with volatility in the markets creating a challenging backdrop for the business, but stressed its balance sheet strength and high quality investment portfolio position it well going forward.
The re/insurer reported a net loss of $433 million for Q1 2020, having recorded a net profit of $497 million in the corresponding period of 2019.
PartnerRe’s non-life combined ratio came in at 103.8 percent for the quarter, up from 97.7 percent in Q1 2019. The combined ratio for the P&C business was up to 94.3 percent, from 87.7 percent the previous year, while in specialty the combined ratio was up to 121.1 percent, from 116 percent.
It reported gross written premiums of $2.04 billion for Q1 2020, down from $2.12 billion in the same period of 2019.
PartnerRe noted it had made $610 million of unrealised losses on investments in Q1, although it stressed its investment portfolio had “significantly recovered” since the end of the quarter.
Emmanuel Clarke, PartnerRe’s president and chief executive officer, said: “I am confident that the actions we have taken throughout last year to improve our portfolio performance, combined with strong underlying rate increases in the loss affected classes, will start to show a positive impact. We continue to execute on our growth strategy for life and health to maintain a well-diversified and profitable book of business.”
He added: “With the strength of our balance sheet and our high quality investment portfolio, we have the resilience to weather this pandemic and changed economic cycle, and we are well-positioned for the hardening of reinsurance pricing.”
Clarke also praised the “speed and agility with which the PartnerRe organisation worldwide has adapted to a full work from home mode, while maintaining highly responsive interaction with our business partners.”
