PartnerRe reports improved non-life combined ratio for Q3
Bermuda-headquartered insurer PartnerRe has reported a non-life combined ratio of 96.4 percent during the third quarter of 2019, including $93 million pre-tax losses (6.9 points) from Hurricane Dorian and Typhoon Faxai, compared with a combined ratio of 107.8 percent in the prior year. Non-life net premiums written increased 17 percent to $1.26 billion from $1.07 billion for the same three months in 2018.
Net income available to common shareholder was $216 million for the third quarter of 2019, including net realised and unrealised investments gains of $41 million on fixed maturities and short-term investments, primarily due to decreases in world-wide risk-free rates, and $39 million net foreign exchange gains.
This compared to a net loss attributable to common shareholder of $106 million for the third quarter of 2018, which included net realised and unrealised investment losses on fixed maturities and short-term investments of $73 million, and $17 million net foreign exchange losses.
Net income available to common shareholder was $998 million for the first nine months of 2019, which includes net realised and unrealised investment gains on fixed maturities and short-term investments of $484 million, primarily due to decreases in world-wide risk-free rates and credit spreads, and net foreign exchange losses of $8 million. This compared to a net loss attributable to common shareholder of $101 million for the first nine months of 2018, which included net realised and unrealised investment losses on fixed maturities and short-term investments of $407 million, and $53 million net foreign exchange gains.
Life and health profitability, including underwriting result and allocated net investment income, was $31 million for the third quarter, a $13 million increase compared to the prior year. Life and health net premiums written increased 19 percent to $352 million.
The company reported a total investment return of $225 million (1.3 percent) for the third quarter, driven by $109 million net investment income (up 5 percent compared to the prior year) and $114 million net realised and unrealised gains.
The majority of the company's investments, including all fixed maturities, such as government bonds and investment grade corporate debt, are accounted for at fair value with changes in the fair value recorded in the consolidated statements of operations.
Commenting on the results, PartnerRe president and chief executive officer Emmanuel Clarke said: “Our third quarter results were highlighted by improved year-on-year profitability in the non-life and life and health segments, increased Investments contribution from both net investment income and realised gains and a lower expense ratio. We achieved double digit growth in net premium written in both the non-life and life and health segments, benefiting from an improved pricing and underwriting environment in non-life and from the continued execution of our life and health growth strategy.
“We are very focused on delivering further underwriting margin improvement in 2020, helped by a non-life pricing environment we expect to continue to firm. With our capital and book value up 9.9 percent and 14.2 percent respectively for the year, we are well positioned to capitalize on selective growth opportunities with improved margins and attractive returns, while reducing our exposure to underperforming segments.”
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