Reinsurance firm PartnerRe reported a drop in net income from $1.1 billion to $664 million, but increased operating income.

Figures for 2013 showed that operating earnings hit $721.7 million compared to nearly $664 million the year before.

And net premiums for the year totalled $5.4 billion — up 18 percent on 2012.

The company’s annual report on performance said: “This increase was reported across all non-life sub-segments, except for the catastrophe sub-segment and the life and health segments.”

The report added the increase was largely due to new business in the global speciality and North American areas. The firm also cited the inclusion of PartnerRe Health’s business in the life and health segment and new business in the global, non-US and property and casualty areas as contributing factors.

The report added: “For the full year 2013, net premiums earned of $5.2 billion were up 16 percent, primarily due to the same factors discussed above for net premiums written for the full year.”

PartnerRe President and CEO Costas Miranthis said: “We had a strong fourth quarter to finish 2013. We generated an 11.5 percent operating return on equity for the quarter and close to 19 percent net income return on equity, reflecting a gain in one of our insurance investments.”

Mr Miranthis added that last week’s announcement of non-life treaty renewal showed growth for the firm.

He said: “Despite challenging market conditions, the strength of our global franchise allowed us to modestly grow our portfolio while we maintained our usual underwriting discipline.”

And he said: “We also had good production in our life and health operations, which continue to grow profitably.

“I am confident that the strength of our client relationships and our technical skills in evaluating a broad range of risk will continue to differentiate us in the years to come.”

The figures showed full year operating earnings per share of $12.79 and net income per share of $10.79, compared to operating earnings per share of $16.87 in 2012.

The company earlier announced it had increased the annual common share dividend by five percent — the 21st consecutive year the company has bumped the figure up.

PartnerRe also reported total investments, cash and funds held and directly managed were $17.4 billion at the end of 2013, down three percent on the year before.

Total capital was also down year-on-year at $7.5 billion, falling three percent on 2012.

PartnerRe said this was “primarily driven by share repurchases and common and preferred dividend payments, which were partially offset by net income for the full year 2013”.