Despite profitable fourth quarter PartnerRe slumps 77% in 2020; CEO bullish on improving market
Bermuda-based reinsurer PartnerRe enjoyed growth and improved non-life combined ratio in the fourth quarter of 2020 but saw its full-year profits decline significantly due to the impact of COVID-19 and record-breaking mid-sized weather events. The company's chief executive Jacques Bonneau, however, insisted that PartnerRe is well positioned, both geographically and by product line, to capitalise on the improving market conditions.
PartnerRe made a net profit of $206 million for the year, and $204 million for the fourth quarter of 2020. The annual profit was down 76.8 percent from the $890.3 million it earned in 2019. However, its Q4 profit was a turn around from the $105 million loss in the same period of 2019.
The reinsurer reported gross written premiums of $6.88 billion in the full year in 2020, down on the 2019 figure of $7.29 billion. In Q4, the picture was again reversed, with the Q4 2020 figure of $1.67 billion representing an increase of the $1.55 billion figure reported in the same period of the previous year.
Its combined ratio for the property and commercial (P&C) segment increased to 102.2 percent in 2020, from 98.7 percent in 2019. It also increased in the specialty segment, to 112.2 percent, from 103 percent. The combined ratio for the total non-life business was 106 percent in 2020, compared with 100.3 percent in 2019.
In the fourth quarter 2020, however, PartnerRe saw its combined ratio fall in all three areas. The P&C segment combined ratio fell to 97.6 percent in Q4 2020, from 117.7 percent in Q4 2019, while in specialty it fell to 100.2 percent from 107.3 percent. The combined ratio for the total non-life business fell to 98.6 percent in Q4 2020 from 113.8 percent in Q4 2019.
Bonneau, president and chief executive officer of PartnerRe, said that despite the “exceptional challenges” the business had faced in 2020 due to COVID-19 and record-breaking mid-sized weather events, it remained resilient and delivered value to its clients.
“The 2021 underwriting year has started on a very positive note, and we have remained focused on the continued execution of our strategies to improve profitability in our January renewals,” Bonneau added. “We are seeing positive rate movement in most, if not all of our lines of business and have also achieved significant growth in our third party capital vehicles, with total assets over $1 billion.
“We are positioned well by geographic and product line to capitalize on the improving underwriting environment and deliver value to our clients, capital partners and shareholder in the year ahead.”
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