PartnerRe Reports Q2 & Half Year Results
Bermuda-based PartnerRe reported a net income available to common shareholder of $125 million for the second quarter of 2018, which includes net unrealized investment losses on fixed income securities of $79 million.
This compared to a net income of $191 million for the same period of 2017, which included net unrealized investment gains on fixed income securities of $95 million.
Net income available to common shareholder was $5 million for the half year 2018, which includes net unrealized investment losses on fixed income securities of $312 million. This compared to a net income of $229 million for the half year 2017, which included net unrealized investment gains on fixed income securities of $137 million.
The unrealized investment losses on fixed income securities in 2018 were driven by an increase in risk-free rates and credit spreads and the unrealized investment gains on fixed income securities in 2017 were driven by a narrowing of credit spreads.
The majority of the Company’s investments, including all standard fixed income investments such as government bonds and investment grade corporate debt, are accounted for at fair value with changes in the fair value recorded in the Consolidated Statements of Operations.
Underwriting profits, including both Non-life and Life and Health operations and corporate expenses, were $36 million for the second quarter of 2018 compared to $37 million for the same period of 2017, and $46 million for the half year 2018 compared to $11 million for the same period of 2017.
Commenting on the results, PartnerRe President and Chief Executive Officer Emmanuel Clarke said, “We delivered an annualized Net Income ROE of 8.4% in this quarter, driven by solid underwriting profits in both our Non-Life and Life and Health segments and a 20% increase in net premium written compared to last year’s second quarter. I am pleased to see our results reflect the efforts we have made, over the past two years, to gain relevance with our key clients and brokers, and to find new attractive business opportunities.
“Notwithstanding a competitive reinsurance market, we achieved a positive July 1 renewal where we continued to see increases in business margins. These results, in conjunction with continued improved efficiency in operating expenses, and the impact of higher reinvestment yields on our Investment portfolio, position our company well to deliver improved underwriting and financial results during the remainder of 2018.”
