PartnerRe loss softened by reserve releases

Make text smaller Make text larger

  • Disciplined underwriting: Emmanuel Clarke, PartnerRe's CEO

    Disciplined underwriting: Emmanuel Clarke, PartnerRe's CEO


Bermudian reinsurer PartnerRe Ltd today reported a third-quarter net loss of $84 million, driven by $472 million in pre-tax catastrophe losses.

The company, which is owned by Italian investment firm Exor, benefited from $187 million of favourable reserve development, which softened the impact of the quarter’s storm and earthquake claims on PartnerRe’s bottom line.

Emmanuel Clarke, PartnerRe’s chief executive officer, said: “Despite the impact of these losses on the catastrophe-exposed lines in our portfolio, PartnerRe book value declined by only 0.9 per cent during the quarter, thanks to discipline in deploying capital in catastrophe-exposed classes, solid performance in our specialty portfolio, an improvement in our P & C non-cat accident year technical ratio compared to the third quarter of 2016 and good investments performance.

“These results highlight our underwriting discipline and the quality and diversification of our underwriting portfolio. We are approaching the January 1 renewals season with a strong capital position which will allow us to benefit from improving pricing conditions in the market.”

The non-life combined ratio — the proportion of premium dollars spent on claims and expenses — was 109.8 per cent, with the catastrophes representing 44.7 points and the release of prior years’ reserves benefiting the ratio by 17.7 points.

The company posted a total net investment return of $168 million, or 1 per cent, for the quarter, including net realised and unrealised investment gains of $61 million, net investment income of $98 million and interest in earnings of equity method investments of $9 million.

Total capital was $8.2 billion at September 30, 2017, up 2.7 per cent compared to $8 billion at the end of last year, primarily due to net income of $180 million for the first nine months of this year.

You must be registered or signed-in to post comment or to vote.

Published Nov 16, 2017 at 2:40 pm (Updated Nov 16, 2017 at 2:40 pm)

PartnerRe loss softened by reserve releases

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon

  • Take Our Poll

    Today's Obituaries

    eMoo Posts