Non-life combined ratio climbs above 100% for the quarter as Hurricane Ian contributes to $381m in losses
PartnerRe has reported a net loss attributable to common shareholder of $387m for the third quarter of 2022, compared to income of $70 million for the same period of 2021.
PartnerRe president and chief executive officer Jacques Bonneau commented, “Hurricane Ian was a significant industry event, and the strength and resilience of our balance sheet allows us to remain a trusted business partner to our clients in times of need.
”Despite such a significant industry event, our continuous focus on portfolio optimisation enabled us to deliver strong operating income of $439m for the first nine months of the year, with an annualised operating return on equity that has nearly doubled to 9.1%.
“As we head into renewal season, our capital base remains strong, reinforced by the scale and capital strength of the Covéa group, and we are positioned to further increase the value that we provide to our clients, distribution partners, capital partners and other stakeholders.”
Hurricane Ian dents results
Non-life net premiums written were up 5% for the third quarter of 2022 and were up 11% for the first nine months of 2022 compared to the same periods of 2021, driven by the P&C segment, which increased by 10% and 17%, respectively due to growth in the current underwriting year and additional premiums from prior underwriting years.
The non-life underwriting loss was $100m (combined ratio of 106.9%) for the third quarter of 2022, while the non-life underwriting profit was $381m (combined ratio of 90.7%) for the first nine months of 2022.
Among the large losses in Q3 was Hurricane Ian, with the reinsurer expecting claims in the region of $300m for the period. For the nine months, PartnerRe expects large losses of $434m related to Hurricane Ian, the ongoing conflict between Russia and Ukraine, the Natal Floods and the Australian Floods.
The company also revealed a net investment loss of $339m in the third quarter, and included net realised and unrealised investment losses of $432m and interest in losses of equity method investments of $9m, which were partially offset by net investment income of $102m.
On 12 July 2022, Covéa completed the acquisition of PartnerRe Ltd. from EXOR Nederland. Preferred shares issued by PartnerRe Ltd were not included in the transaction.