PartnerRe reports Q1 loss as Uri masks underwriting improvements

PartnerRe reported a loss in the first quarter of 2021 but reduced the scale of its losses compared to the same period in 2020. Jacques Bonneau, PartnerRe’s president and chief executive officer, insisted severe winter storms in Q1 masked the extent of the underwriting improvements it has made.

PartnerRe reported a net loss of $65.9 million in Q1, which included $104 million of net losses related to Winter Storm Uri. In the first three months of 2020 PartnerRe made a loss of $433.4 million.

The re/insurer reported gross written premiums of $2.47 billion in the first three months of 2021, up from $2.04 billion the previous year. Its combined ratio was 96.7 percent, or 97.7 percent for the property and casualty segment and 94.8 percent for specialty.

Bonneau observed positive rate movement across “most, if not all” of the lines of business it writes. PartnerRe achieved price improvements in new and renewal business of approximately 9 percent for its non-life portfolio through April 1, he added.

“We were also able to reduce our exposures on poorly performing lines and programmes as we continue to drive for increased margins,” Bonneau said. “The underwriting improvements in the first quarter were masked by Winter Storm Uri. The favorable pricing conditions, combined with the benefits we are seeing from our re-underwriting actions and significant growth in third party capital, position us well to deliver improvements in our underwriting and financial results during the remainder of 2021.”