Net premiums dip at PartnerRe as it buys more retro
PartnerRe enjoyed a return to profitability in its third quarter results having been hit by hefty termination fees relating to its abandoned merger with Axis Capital in this period last year. But its net premiums fell due to cancellations and non-renewals of business in tough market conditions.
The company made a profit of $240.3 million in the third quarter, which included net after-tax realized and unrealized gains on investments of $56.4 million, compared with a $$243.3 million loss in the same period of 2015 thanks mainly to the amalgamation termination fee and reimbursement of expenses paid to Axis Capital of $315 million.
Its combined ratio for the period was 83.7 percent, almost the same as the year before.
Its non-life net premiums written were down 4 percent to $1.13 billion, however, driven by the its property & casualty segment which reported decreases due to cancellations and non-renewals across all lines of business, higher premiums ceded under retrocessional contracts in the catastrophe line of business and the impact of foreign exchange.
It also said, however, these decreases were partially offset by new business across all lines of business. The ratio between net premiums written to gross premiums written was 89 percent in the third quarter of 2016, compared to 94 percent in the third quarter of 2015, reflecting the higher use of retrocessional coverage to protect capital.
Emmanuel Clarke, president and chief executive of PartnerRe, said: “We delivered strong results in the third quarter, with Operating ROE and Net Income ROE of 11.9 percent and 15.4 percent, respectively.
“The Non-life combined ratio of 82.7 percent highlights our underwriting discipline in a challenging environment, while continued strong favorable prior year development of $173 million reflects the quality and solidity of our balance sheet."