PartnerRe Reports Q2 & Half Year 2019 Results
Bermuda-based PartnerRe Ltd. today [July 26] reported a net income available to common shareholder of $285 million for the second quarter of 2019, which includes net realized and unrealized investments gains of $164 million on fixed maturities and short-term investments, primarily due to decreases in world-wide risk-free rates and credit spreads, and $21 million net foreign exchange losses.
This compared to net income available to common shareholder of $125 million for the second quarter of 2018, which included net realized and unrealized investment losses on fixed maturities and short-term investments of $101 million, and $84 million net foreign exchange gains.
Net income available to common shareholder was $782 million for the half year 2019, which includes net realized and unrealized investment gains on fixed maturities and short-term investments of $443 million, primarily due to decreases in world-wide risk-free rates and credit spreads, and net foreign exchange losses of $47 million. This compared to net income available to common shareholder of $5 million for the half year 2018, which included net realized and unrealized investment losses on fixed maturities and short-term investments of $334 million, and $70 million net foreign exchange gains.
The majority of the Company’s investments, including all fixed maturities, 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.
Commenting on results, PartnerRe President and Chief Executive Officer Emmanuel Clarke said, “We delivered solid second quarter results, driven by strong performance in our P&C segment and excellent investments results, more than offsetting loss activity in our Specialty and Life segments. This demonstrates the value of our well-diversified book of business and the positive impact of actions we took in 2018 to improve performance of our P&C and Investments portfolios.”
Mr. Clarke also added: “I am encouraged by the better market conditions we are seeing in large portions of our Non-Life business. PartnerRe is well-positioned to benefit from this improved margin environment, as demonstrated by our 15% Non-Life premium growth over 2018. At the same time, we are pursuing our strategy to grow our Life and Health business, with 28% growth in premium over the past year. I am confident this positions us to deliver a strong performance for 2019 and beyond.”
