Jacques Bonneau, CEO, PartnerRe
Along with the improved profit and combined ratio, PartnerRe's gross written premiums were up 31 percent in the second quarter of 2021. Chief executive Jacques Bonneau highlighted that the positive impacts of its portfolio actions have started to show through its financial results.
The Bermuda-based reinsurer increased its net profit to $314 million for the second quarter of 2021, compared with $229 million for the same period of 2020. For the half year, net profit was $248 million, slightly up from $204 million reported a year ago.
Gross premiums written were up almost 31 percent at $2.04 billion for the quarter, with growth in lines of business that experienced strong rate increases, compared to the prior year premiums (GWP Q2 2020 $1.56 billion) which were impacted by the COVID-19 economic downturn. For the six months, the GWP rose to $4.5 billion, compared with $3.6 billion in H1 2020.
Its property and casualty segment reported a combined ratio of 93.5 percent and 95.5 percent for the second quarter and half year 2021, respectively, compared with 113.5 percent and 103.5 percent for the second quarter and half year 2020, respectively.
The specialty segment reported a combined ratio of 79.5 percent and 86.9 percent for the second quarter and half year 2021, respectively, compared to 132.8% and 127.5% for the second quarter and half year 2020, respectively.
For both the second quarter and half year 2021, the company’s P&C segment incurred an increase in COVID-19 related losses, related primarily to refinements of estimates for business interruption exposures as more information has been received from cedants. This was offset by a decrease in estimated losses for specialty financial risk lines for credit related exposures.
PartnerRe president and CEO Bonneau commented: “We delivered strong results in the second quarter with an annualized operating ROE of 8.8%, and I am pleased to see the positive impacts of our portfolio actions begin to show through our financial result.
"Our Non-life combined ratio of 88.6% includes improvements in the current accident year loss ratio from business mix changes and overall favorable pricing conditions across most lines of business, as well as improvements in prior years' reserve development as older underwriting years run off. Our Life and Health segment also significantly improved its underwriting profit compared to the prior year. Third party capital currently stands at $1.1b of assets under management and provided us the ability to increase underwriting capacity and line sizes.
"These underwriting results, combined with good investment performance, helped produce solid profitability for the second quarter of 2021.”
PartnerRe, Profits, Q2, Combined Ratio, Insurance, Reinsurance, Jacques Bonneau, Bermuda