Even with US$120 million (around £86.3 million) in losses from the California wildfires in the fourth quarter, and pretty much a whole year badly hit by catastrophes, PartnerRe stands on solid ground as it reports positive returns for shareholders.
Here are the numbers for the Bermuda-based reinsurer:
Fourth quarter 2017
- Net income available to common shareholder – US$72 million; net loss of US$191 million, 2016
- Operating losses – US$28 million; operating earnings of US$125 million, 2016
- Non-life net premiums written – up 9%, primarily driven by the specialty segment
- Life & health net premiums written – up 30%
- Net investment return – US$188 million, or 1.1%
Full year 2017
- Net income – US$218 million; US$387 million, 2016
- Operating losses – US$1 million; gains of US$289 million, 2016
- Non-life net premiums written – down 2%, driven by a decrease in the P&C segment
- Life & health net premiums written – up 20%
- Net investment return – US$720 million, or 4.2%
“In 2017, in the face of industry insured losses in excess of US$100 billion, we delivered solid financial results with adjusted net income of US$250 million and an adjusted ROE of 4.2%,” said PartnerRe president and chief executive Emmanuel Clarke. “This remarkable performance demonstrates the value of our underwriting discipline, our portfolio construction with highly diversified and profitable business segments, and our gross-to-net strategy.
“Together these have enabled us to deliver positive returns to our shareholders in a year marked by high frequency of severe catastrophes.”
Citing double-digit year-on-year growth in non-life renewable treaty premium, Clarke added that PartnerRe has leveraged opportunities for business relationships expansion – both in terms of clients and brokers – and further portfolio enhancement. The CEO expects “great results” in 2018.