PartnerRe First Quarter Net Income: $38 Million
Bermuda-based PartnerRe Ltd. reported a net income available to common shareholder of $38 million for the first quarter of 2017 compared to $201 million for the same period of 2016. Operating earnings were $44 million for both first quarters of 2017 and 2016.
Net income available to common shareholder includes net realized and unrealized gains on investments of $23 million in the first quarter of 2017, mainly driven by a slight narrowing of corporate spreads and a decrease in U.S. interest rates at the longer end of the curve. This compares to gains of $167 million in the first quarter of 2016, primarily reflecting decreases in U.S. and European risk-free interest rates.
Commenting on results, PartnerRe President and Chief Executive Officer Emmanuel Clarke said, “Our annualized adjusted Operating ROE of 3.4% in the first quarter of 2017 reflects prudent underwriting, de-risked investment portfolio, the impact of the change in the Ogden discount rate in the U.K., a decline in favorable prior year reserve development and lower profitability in our Health line of business.
“We reported a Non-Life combined ratio of 96.4% and an improved accident year combined ratio compared to the first quarter of 2016 driven by a lower level of mid-sized loss activity in P&C and reduced operating expenses.”
