TransRe sees steady growth but posts underwriting loss in Q3
Reinsurer TransRe, which is owned by Alleghany Corporation, enjoyed some growth in the third quarter of 2018 but made an underwriting loss as a result of exposure to various catastrophes in the third quarter.
The company’s net written premiums increased by 0.7 percent to reach $985.2 million in the third quarter; for the first nine months of the year its net written premiums have increased by 1.8 percent to reach $2.95 billion.
TransRe’s 2018 third quarter combined ratio was 117.9 percent, compared with 149.8 percent for the 2017 third quarter, and TransRe’s combined ratio for the first nine months of 2018 was 100.1 percent, compared with 112.6 percent for the first nine months of 2017.
Alleghany said the increase in net premiums written in the third quarter of 2018 was primarily due to TransRe’s purchase during the period of certain renewal rights associated with a block of US treaty reinsurance business focused on regional property and casualty, accident and health and personal auto lines of business, and an increase in premiums written by the Asia-Pacific operations.
But it said these increases were largely offset by a decrease in reinstatement premiums written due to significantly lower catastrophe losses in the third quarter of 2018 compared with the third quarter of 2017, the impact of changes in foreign currency exchange rates and higher ceded premiums written due to an increase in retrocessional coverage purchased in 2018.
It also explained that the increase in net premiums written in the first nine months of 2018 primarily reflects increases in casualty premiums written by TransRe’s European and Asia-Pacific operations, the impact of the Renewal Rights Purchase and the impact of changes in foreign currency exchange rates, partially offset by a decrease in reinstatement premiums written and an increase in retrocessional coverage purchased in 2018.
Gross premiums written related to a certain large whole-account quota share treaty were approximately flat in both the third quarter of 2018 and in the first nine months of the year.
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