PartnerRe, 9M2019: net income close to USD 1 billion

Net income available to common shareholder was USD 998 million for the first nine months of 2019, showing a solid result compared to the USD (101) million net income registered in the first nine months of 2018.


PartnerRe nine months figures (vs. 9M2018) - unaudited


  • Gross written premiums: USD 5,732 million (+15.0%), of which:
    • Property & Casualty: US 2,933 million (+19.0%)
    • Specialty: USD 1,690 million (+5.2%)
    • Life & Health: USD 1,109 million (+21.2%)
  • Net premiums written: USD 5,397 million (+19.5%)
  • Total revenues:USD 5,906 million (+45.1%)
  • Total expenses: USD 4,807 million (+15.6%)
  • Net income: USD 998 million (9M2018: USD (101) million)

The net income at nine months includes net realized and unrealized investment gains on fixed maturities and short-term investments of USD 484 million, primarily due to decreases in world-wide risk-free rates and credit spreads, and net foreign exchange losses of USD 8 million. This compared to a net loss attributable to common shareholder of USD 101 million for the first nine months of 2018, which included net realized and unrealized investment losses on fixed maturities and short-term investments of USD 407 million, and USD 53 million net foreign exchange gains.


Non-Life

Non-life net premiums written were up 19% for the first nine months of 2019 compared to the same period of 2018, driven by a 23% increase in the P&C segment and 14% increase in the Specialty segment.

The Non-life underwriting profit was USD 168 million (combined ratio of 95.5%) for the first nine months of 2019 compared to USD 20 million (combined ratio of 99.4%) for the same period of 2018. The increase was driven by the P&C segment with a combined ratio of 91.4% for the first nine months of 2019 compared to 104.4% for the same period of 2018, reflecting an improvement in the current accident year attritional loss ratio and a decrease in losses related to large catastrophic events. This was partially offset by the Specialty segment, which recorded a combined ratio of 101.6% for the first nine months of 2019 compared to 92.4% for the same period of 2018, driven by net adverse prior years' reserve development and a large aviation loss related to Ethiopian Airlines and Boeing of USD 43 million (2.9 points on the Specialty combined ratio), net of retrocession and reinstatement premiums

The Non-life combined ratio was impacted by net adverse prior year development of USD 3 million (0.2 points) and USD 18 million (0.5 points) for the third quarter and first nine months of 2019, respectively. This compared to net favorable prior year development of USD 32 million (2.9 points) and USD 102 million (3.2 points) for the third quarter and first nine months of 2018, respectively.


Life & Health

Net premiums written were up 19% in the third quarter of 2019, and up 21% for the first nine months of 2019 compared to the same period of 2018.

Allocated underwriting result was a profit of USD 31 million and USD 75 million for the third quarter and first nine months of 2019, respectively, compared to USD 18 million and USD 69 million for the third quarter and first nine months of 2018, respectively.


Investments

Net investment return for the first nine months of 2019 was USD 1,143 million, or 6.6%, which included net investment income of USD 340 million, net realized and unrealized investment gains of USD 765 million, and interest in earnings of equity method investments of USD 38 million.


Emmanuel CLARKE, PartnerRe President and Chief Executive Officer,

"Our third quarter results were highlighted by improved year-on-year profitability in the Non-Life and Life & Health segments, increased Investments contribution from both net investment income and realized gains and a lower expense ratio. (...) 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% and 14.2% 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."



More financial information about PartnerRe can be found at partnerre.com/financial-information.


Source: partnerre.com

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