PartnerRe back to profit despite Hagibis; CEO eyes better 2020 market conditions

PartnerRe posted a healthy profit and solid growth in 2019 as well as an improved combined ratio, despite losses from Typhoon Hagibis. The company’s CEO said that actions have been taken to improve the company’s non-life performance in 2020 and he anticipates further growth in the coming year.

The company’s net income for 2019 was $890 million, compared with a net loss of $132 million for 2018. This 2019 figure included net realised and unrealised gains of $434 million. For the fourth quarter alone, it made a loss of $108 million compared with a $32 million loss in the same period a year earlier. Its Q4 result was hit by several catastrophe losses including $133 million as a result of Typhoon Hagibis.

Its combined ratio was 100.3 percent for the full year compared with 101.9 percent for 2018.

Gross premiums written for 2019 were $7.3 billion, up from $6.2 billion for 2018. Its net premiums written increased to $6.9 billion compared with $5.8 billion a year earlier. The majority of this growth was driven by its non-life sector were net written premiums increased by 18 percent in 2019 driven by a 21 percent increase in the P&C segment and a 14 percent increase in the speciality segment.

Emmanuel Clarke, PartnerRe’s president and chief executive officer, said: “In the fourth quarter of 2019, our non-life combined ratio was impacted by losses related to Typhoon Hagibis and in the agriculture line of business, whose impact on book value has been mitigated by strong investment performance. Notwithstanding challenging non-life performance in the fourth quarter, the company reported solid net income to common shareholder in 2019, driven by investments results and contribution from our life and health segment.”

Clarke added: “PartnerRe has taken actions to improve its non-life underwriting performance in 2020, leveraging improved non-life market conditions at the January renewal and ongoing portfolio optimisation actions. With further margin improvement expected in our non-life portfolio during the course of the year, and continued growth in life and health, I am confident we will be able to deliver in 2020 solid growth in book value for our shareholder.”