PartnerRe’s Q3 2019 results highlight "improved year-on-year profitability"

PartnerRe’s Q3 2019 results highlight "improved year-on-year profitability" | Insurance Business

PartnerRe’s Q3 2019 results highlight "improved year-on-year profitability"

PartnerRe has posted its results for the third quarter of 2019, noting a marked improvement over the same period in the previous year.

For the third quarter of 2019, the company reported net income available to common shareholders of $216 million. The net income includes net realized and unrealized investments gains of $41 million on fixed maturities and short-term investments, mainly due to decreases in worldwide risk-free rates, as well as $39 million net foreign exchange plans.

This is an improvement compared to a net loss attributable to common shareholders of $106 million for the third quarter of 2018, which included net realized and unrealized investment losses on fixed maturities and short-term investments of $73 million, and $17 million net foreign exchange losses.

The company also reported that its non-life combined ratio for Q3 2019 was 96.4%, including $93 million pre-tax losses (6.9 points) from Hurricane Dorian and Typhoon Faxai. By comparison, the insurer posted a non-life combined ratio of 107.8% in Q3 2018. Additionally, for the third quarter of 2019, it saw non-life net premiums written increase 17% to $1.26 billion.

Life and health profitability for the quarter was at $31 million – a $13 million increase from the prior year. Similarly to the non-life segment, life and health segment net premiums written during the quarter increased 19% to $352 million.

“Our third quarter results were highlighted by improved year-on-year profitability in the non-life and life & health segments, increased investments contribution from both net investment income and realized gains and a lower expense ratio,” said PartnerRe president and CEO Emmanuel Clarke.

Clarke explained that PartnerRe managed to achieve double-digit growth in net premiums written for both the non-life and life & health segments thanks to an improved pricing and underwriting environment for non-life and the “continued execution” of the company’s life & health growth strategy for the latter.

“We are very focused on delivering further underwriting margin improvement in 2020, helped by a non-life pricing environment we expect to continue to firm,” Clarke added.