Rise in cat claims and casualty reserves dents PartnerRe

An increase in catastrophe claims and reserve strengthening for US casualty lines more than halved PartnerRe's half year earnings, the reinsurer said. 

The Bermuda-based reinsurer said net income attributable to PartnerRe dropped to $358 million from $787 million in the first half of 2023.   

The company had a non-life underwriting result of $58 million and a non-life combined ratio of 97.9% while its life and health segment had an underwriting result of $108 million.  Net investment income jumped to $366 million from $285 million. 

"An increased frequency of mid-sized natural catastrophe events and a reserve strengthening in US Casualty lines impacted the first half of 2024," management said. "Despite this, our Non-life business was able to produce an underwriting result of $58 million."

PartnerRe chief executive officer Philippe Meyenhofer added: "Despite an active period marked by several mid-sized catastrophe losses and reserve strengthening in US Casualty, our Non-life business generated a positive underwriting result. 

"In combination with the strong performance of our Life and Health business and growth in our net investment income, PartnerRe delivered an operating return on equity of 8.9% in the first half of 2024. We remain focused on our disciplined approach to executing our strategic objectives and building our diversified business.”

PartnerRe said the company's life and health business "continues to be a strong source of diversified earnings to PartnerRe as premium volume grew by 19.6% compared to the first half of 2023, with an overall Life and Health allocated underwriting result of $108 million".

It added: "Our investment portfolio also performed well, resulting in a 28.0% growth in net investment income compared to the first half of 2023. We are continuing to see the benefits of shortening duration in prior years enabling us to reinvest and deploy our cash flow from operations at attractive rates."

Gross premiums written slipped from $5.338 billion to $5.33 4 billion while losses and loss expenses increases from $2.45 billion to $2.89 billion. The compoany was also hit by a turn in foreign exchange losses, which were $35 million compared to a gain of $20.7 million in 2023.

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