PartnerRe enjoys solid growth in Q2 2019; CEO says market conditions are improving

Bermuda-based reinsurer PartnerRe enjoyed solid growth and improved non-life combined ratio in the second quarter of 2019. The results were driven by strong property/casualty performance and investment gains.

The company reported a net income of $285 million for the second quarter of 2019, which includes net realised and unrealised investments gains of $164 million on fixed maturities and short-term investments, and $21 million net foreign exchange losses.

This compared to net income of $125 million for the second quarter of 2018, which included net realised and unrealised investment losses on fixed maturities and short-term investments of $101 million, and $84 million net foreign exchange gains.

For the half year 2019, total net income available to common shareholder was $782 million. Last year for the same period, the net income was merely $5 million due to $334 million investment losses on fixed maturities and short-term investments.

The reinsurer's non-life combined ratio was 92.8 percent during the second quarter, compared with 94.7 percent in the prior year. The segment's underwriting profit increased to $95 million in Q2, up $33 million compared to the prior year. Non-Life net premiums written increased 15 percent to $1.45 billion.

Meanwhile, its life and health profitability saw a $9 million decline compared to the prior year. Including underwriting result and allocated net investment income, it was $14 million in Q2 2019. Net premiums written increased 28 percent in the same period, to $392 million.

Commenting on the results, PartnerRe president and chief executive Emmanuel Clarke said he is confident about the company's position to deliver a strong performance for the whole year, while highlighting improved market conditions and margin environment.

“We delivered solid second quarter results, driven by strong performance in our P&C segment and excellent investments results, more than offsetting loss activity in our Specialty and Life segments," said Clarke. "This demonstrates the value of our well-diversified book of business and the positive impact of actions we took in 2018 to improve performance of our P&C and Investments portfolios.”

He added: “I am encouraged by the better market conditions we are seeing in large portions of our Non-Life business. PartnerRe is well-positioned to benefit from this improved margin environment, as demonstrated by our 15% Non-Life premium growth over 2018. At the same time, we are pursuing our strategy to grow our Life and Health business, with 28% growth in premium over the past year. I am confident this positions us to deliver a strong performance for 2019 and beyond.”

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