PartnerRe posts $120m Q1 loss driven by investments
Bermuda-based PartnerRe posted a first-quarter 2018 net loss attributable to common shareholder of $120 million after a net income of $38 million for the same period of 2017
The loss was driven by $222 million net realized and unrealized losses in the investment portfolio due to an increase in risk-free rates.
The non-life combined ratio improved to 94.7 percent from 96.4 percent over the period, driven by “continued solid performance” in the specialty segment, which registered an 86.9 percent combined ratio in first quarter of 2018 after 95.2 percent in the first quarter of 2017. Non-life net premiums written for the first quarter of 2018 were up 14 percent compared to the same period of 2017, primarily driven by the P&C segment.
The property/casualty (P&C) combined ratio was 100.4 percent for the first quarter of 2018 compared to 97.5 percent for the same period of 2017, primarily due to adverse prior year development related to a number of mid-sized losses, attritional losses in North America and a higher acquisition cost ratio, the company noted.
The specialty combined ratio improved to 86.9 percent for the first quarter of 2018 compared to 95.2 percent for the same period of 2017, due to the absence of mid-sized losses and a low level of attritional losses, partially offset by a higher acquisition cost ratio, according to the statement.
The allocated underwriting result in the life and health segment of $30 million represented a $22 million increase compared to the same period a year ago, and the highest recorded in PartnerRe history, according to the company.
“We had solid underwriting profits this quarter in both our non-life and life & health segments with improved pricing margins, a 14 percent increase in net premium earned to last year’s first quarter and improved combined ratio across various lines of business,” said CEO Emmanuel Clarke.
“These results, alongside positive April 1 renewals, where we continued to see increases in business margins, position the company well to deliver improved underwriting results during the course of 2018. Interest rate increases recorded during first quarter are positive news for our business longer-term, yet their accounting impact translated into a net loss,” Clarke noted.
Overall, the group’s gross premiums written grew to $1.80 billion in the first quarter of 2018 from $1.50 billion in the same period of 2017.
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