Storm losses drive PartnerRe to $106m loss
Claims relating to major storms drove PartnerRe Ltd to a net loss of $106 million for the third quarter.
The Bermudian reinsurer said it had racked up $120 million in pre-tax losses from typhoons Jebi and Trami and Hurricane Florence.
The net loss compared to a net loss of $84 million for the same period of 2017.
The quarter also brought net unrealised investment losses on fixed-income securities of $53 million and net foreign exchange losses of $17 million.
Net loss attributable to common shareholders for the first nine months of 2018 was $101 million, which includes net unrealised investment losses on fixed-income securities of $358 million and net foreign exchange gains of $53 million.
Emmanuel Clarke, PartnerRe’s chief executive officer, said: “The third quarter of 2018 was an active period of catastrophic and man-made loss events which impacted the company’s non-life combined ratio.
“Despite these events, in the first nine months of 2018, the company’s non-life segment reported an underwriting profit, while our life and health segment significantly improved its underwriting profit and margin compared to the prior year.
“This performance — excluding the net unrealised losses primarily driven by increases in risk-free rates — has helped produce a solid profitability in the first nine months of 2018.”
PartnerRe’s non-life combined ratio was 107.8 per cent for the quarter, driven by property and casualty combined ratio of 114.7 per cent and specialty combined ratio of 97.4 per cent.
The unrealised investment losses on fixed income securities in 2018 were driven by an increase in “risk-free” interest rates and credit spreads as the company’s fixed income securities are accounted for at fair value.
Mr Clarke added: “Our enhanced market positions with clients and brokers led to a double-digit increase in net premium written compared to the last year.
“This, coupled with our strong total capital position, positions our company well for the upcoming January renewal season.”