PartnerRe Reports Q3 & Nine Month Results
PartnerRe Ltd reported a net income available to common shareholder of $206 million for the third quarter of 2020, which includes net realized and unrealized investments gains of $14 million on fixed maturities and short-term investments, primarily due to decreases in worldwide credit spreads, and $44 million of net foreign exchange losses.
A statement from the company said, “This compared to a net income available to common shareholder of $216 million in the third quarter of 2019, which included net realized and unrealized investment gains on fixed maturities and short-term investments of $41 million and $39 million of net foreign exchange gains.
“Net income available to common shareholder was $2 million for the first nine months of 2020, which included net realized and unrealized investment gains on fixed maturities and short-term investments of $225 million, primarily due to decreases in worldwide risk-free rates, partially offset by the widening of worldwide credit spreads, and net foreign exchange gains of $51 million.
“This compared to a net income available to common shareholder of $998 million for the first nine months of 2019, which included net realized and unrealized investment gains on fixed maturities and short-term investments of $484 million and $8 million of net foreign exchange losses.”
PartnerRe President and Chief Executive Officer Jacques Bonneau commented, “This year has brought many unprecedented challenges, with the ongoing COVID-19 crisis and significant financial market disruption. This has been compounded by exceptional levels of catastrophic events for the industry, with the most active Atlantic hurricane season on record.
“Despite this challenging operating environment, PartnerRe has emerged with an increased focus on providing valuable capacity and solutions to our clients and broker partners to assist them in growing their businesses. We are committed to being a strong and responsive reinsurance partner – at a time when it is needed more than ever.”
Mr. Bonneau continued: “During the third quarter, we secured a €750 million third party capital commitment for future investments in our special purpose reinsurance vehicles, and successfully raised $500 million of debt, which will allow us to reduce our ongoing financing costs. With our strong capital, liquidity and solvency positions, I am confident that PartnerRe is well positioned to take advantage of the improving reinsurance market conditions.”
