PartnerRe reveals financials

"One of the strongest years," CEO says

PartnerRe reveals financials


By Kenneth Araullo

PartnerRe has released its financials for the entire year of 2023, highlighting achievements across various sectors of its operations.

The company reported a net income available to common shareholders of $2,308 million, achieving a return on equity of 20%. Operating income reached $1,447 million, reflecting a 20% return on equity and a 7.5% improvement from prior results.

The growth was fueled by a 9% increase in net premiums earned, attributed to 4% growth in the non-life sector and a 26% expansion in life and health insurance.

The non-life underwriting results noted earnings of $1,071 million and a combined ratio of 81.6%. The life and health sectors also performed well, presenting an allocated underwriting result of $159 million, which includes allocated net investment income.

Investment returns also posted growth, with a net total of $1,148 million, boosted by unrealized gains on fixed maturities and short-term investments of $391 million. Net investment income saw a rise, increasing by $247 million to reach $646 million.

The past year also came with legislative changes, most notably the government of Bermuda enacting the Corporate Income Tax Act 2023. The new law introduces a 15% corporate income tax for certain businesses in Bermuda, starting from fiscal years beginning on or after January 1, 2025.

In response, PartnerRe recognized a net deferred tax asset of $432 million, including $487 million related to the Economic Transition Adjustment (ETA), designed for a smooth transition to the tax regime, offset by a $55 million net deferred tax liability for the future tax impact of temporary differences between book and tax values.

Operating activities generated cash flows of $2,236 million, indicating 52% growth. Additionally, the company adopted the long duration targeted improvements (LDTI) accounting standard in the first quarter of 2023, with adjustments made to comparable periods for consistency.

PartnerRe’s president and chief executive officer, Jacques Bonneau, commented on the year’s performance, calling it “one of the strongest years in our recent history.”

“Our operating income of $1,447 million and an operating return on equity of 20.0% reflect our success. We’ve seen reduced impact from catastrophic events in our P&C sector and have grown our premium base in the specialty and life and health sectors. Our investment portfolio has also performed exceptionally well, with a 62% increase in net investment income compared to last year, as we continue to invest cash at higher rates,” Bonneau said.

Looking to the future, Bonneau emphasized the company’s commitment to its core values and strategic priorities, aiming to continue delivering value to clients, capital partners, and shareholders. The CEO also reflected on his upcoming retirement, which is set to take effect at the end of March 2024.

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