PartnerRe profits sink thanks to Axis fee and investment losses

PartnerRe has seen its profits for 2015 dramatically fall to $47.6 million, compared with $998.2 million in 2014.

The reinsurance group’s net income for last year includes the amalgamation termination fee and reimbursement of expenses paid to Axis Capital of $315 million and net after-tax realised and unrealised losses on investments of $261.4 million.

PartnerRe’s gross premiums written also decreased in 2015 to $5.55 billion, compared with $5.93 billion in the previous year. It’s combined ratio was also up to 86.5 percent last year, compared with 85.3 percent in 2014.

Despite the losses, Emmanuel Clarke, PartnerRe president, was still positive about PartnerRe’s results.

“I am very pleased with the strong financial results we achieved in 2015, particularly given very challenging reinsurance and financial market dynamics, as well as the transaction-related activity that occupied much of the year, concluding in PartnerRe beginning the transition to private ownership under EXOR,” he said.

“As we near the close of the transaction with EXOR, which we still expect to occur in the first quarter of 2016, the PartnerRe franchise is as strong as ever.”