PartnerRe net loss of $1.1bn in 2022
The latest financial statements for Bermuda reinsurer PartnerRe report a net loss to common shareholders of $1.1 billion in 2022 due to unrealised losses on fixed maturities and short-term investments of $1.8 billion.
This was compared to income of $679 million in 2021.
But they also reported operating income of $809 million for 2022, providing an income on equity of 12.0 per cent, a 4.2 point improvement.
PartnerRe president and chief executive officer Jacques Bonneau called fourth-quarter results for 2022 “excellent”, with operating income of $370 million.
“Our annual operating performance also maintained its positive momentum, and operating income return on equity was 12.0 per cent for the year,” he said. “In addition to solid underwriting results, during 2022 we grew net investment income by almost 6 per cent as we continued to reinvest available cash at rates that are meaningfully higher than our existing book yield.”
He said looking to this year, they were able to capitalise on the attractive rate environment for the January 1 renewals.
Mr Bonneau said: “We grew our production premium base by 9 per cent over January 1, 2022 levels, while at the same time improving the portfolio through higher attachment points on our property catastrophe portfolio, tighter terms and conditions and increased rates above inflation trends over a meaningful portion of the portfolio.
“We continued to execute on responding to our clients and our distribution partners once we received the necessary data to complete our analysis of risk.”
Hurricane Ian, the Russian invasion of Ukraine and other natural disasters caused losses of $489 million for the firm last year, compared to $483 million in losses in 2021.
In the non-life arena, net premiums written were down by 5 per cent for the fourth quarter of 2022, but up 7 per cent for the year, driven by a 14 per cent increase in the property and casualty segment related primarily to premium growth in casualty lines.
There was a non-life underwriting profit of $368 million and combined ratio of 75.3 per cent for the fourth quarter, a 2.2 point improvement over the prior year, and $749 million and combined ratio of 86.6 per cent for the full year, a 3.9 point improvement over the prior year.
Gross premiums written and net premiums written increased 6 per cent for the year.
Partner Re reported a life and health allocated underwriting profit of $29 million for the fourth quarter and $121 million for the full year. The full-year allocated underwriting profit increased 25 per cent year-over-year.
Cashflow from operations was $571 million for the quarter and $1.4 billion for the full year, increases of 53 per cent and 19 per cent, respectively.
Stable expense ratio year-over-year reflected a continuous focus on disciplined expense management.
The Bermuda reinsurer, wholly purchased for $9 billion by French mutual insurer Covéa last year, indicated that starting from the 2023 financial year, the company’s results will be published only biannually at www.partnerre.com.
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