PartnerRe grows as diversification strategy kicks-in
PartnerRe has reported strong first quarter results posting solid growth and higher profits compared with the same period last year as it starts to enjoy the fruits of its recent strategic diversification, its CEO said.
The reinsurer’s gross written premiums hit $1.87 billion, a 6.5 percent increase on the $1.75 billion it wrote the year before. Its net premiums increased by 6 percent to $1.7 billion. The company said the increase was largely driven by its North America and global specialty non-life sub-segments, and its life and health segment. Growth in these lines was partially offset by decreases in its catastrophe and global (non-US) P&C non-life sub-segments.
PartnerRe posted a net profit of $295.7 million for the quarter, a 40 percent increase on the first quarter of 2013 when it made $210.5 million. Its operating earnings were $176.9 million for the first quarter of 2014 compared with operating earnings of $202.1 million for the first quarter of 2013.
The company’s non-life combined ratio was 83.9 percent. It benefited from favourable prior year development of 16.6 points (or $164 million). All non-life sub-segments experienced net favourable development on prior accident years during the first quarter of 2014.
“I am pleased to report a strong start to 2014, with first quarter results reflecting solid underwriting performance and improved financial markets,” said Costas Miranthis, chief executive of PartnerRe. “On a dividend adjusted basis, we grew tangible book value per share by 5.4 percent. We are beginning to see the effect of our efforts to profitably diversify our portfolio into new lines such as health and mortgage business. I am confident that our ability to find new, attractive businesses coupled with our excellent franchise, strong client relationships and superior balance sheet position us to compete effectively in an otherwise challenging operating environment.”
