Bermuda reinsurer PartnerRe had a profitable first quarter in 2019, driven by solid performance in its property catastrophe book and in Europe, partially offset by its specialty unit’s performance which was impacted by mid-size loss activity and adverse prior year reserve development.
PartnerRe made a net profit of $497 million for the quarter, up from $120 million for the same quarter in 2018. This figure included net unrealised investment gains of $257 million on fixed maturities and short-term investments, primarily due to decreases in world-wide risk-free rates and credit spreads.
The combined ratio fo PartnerRe’s property/casualty operations in the first quarter was 87.7 percent, a year-on-year improvement from 100.2 year. The reinsurer suggested this was driven by an improvement in the current accident year technical ratio and higher prior year favourable reserve development.
PartnerRe’s combined ratio for its specialty unit, however, worsened to 116 percent this quarter, compared with a combined ratio of 86.9 percent for the first quarter of 2018. Overall, PartnerRe’s non-life combined ratio was 97.7 percent.
The Bermuda reinsurer’s life and health business was profitable, including underwriting result and allocated net investment income of $30 million, driven by a 17 percent growth in net premiums earned and 30 percent growth in technical result compared to Q1 2018, partially offset by an increase in other expenses to support future business growth
“In the first quarter of 2019, we delivered strong results in our P&C and life and health segments, and in our investments portfolio, while reporting an underwriting loss in our Specialty segment, driven by a combination of mid-sized losses and negative reserve development, and where we are undertaking portfolio actions to improve future underwriting performance."
Clarke added: “Positive momentum continued in our April 1 non-life renewals with business production up double-digits on the back of continued improvements in the overall pricing environment, further solidifying the Company's improved underwriting performance outlook for the remainder of the year.”
PartnerRe, Results, Bermuda