GWP are down 21% due to a “deliberate reduction in catastrophe exposures”
Paris Re has announced that it earned net operating income of $90m for the third quarter of 2007 and net operating income of $203.8m for the nine months ended 30 September 2007.
For the comparable three-month and nine month periods of 2006, PARIS RE earned net operating income of $59.7m and $178.9m, respectively.
Pro forma gross written premium3 for the 2007 third quarter and the nine months ended
was $165.2m and $1,284.2m, respectively, compared to $208.7m and $1,415.9m for the three month and the nine month periods of 2006. This represents a decrease of 21% and 9% from the comparable periods of 2006.
Net written premium for the three-month and the nine-month periods was $159.6m and $1,014.1m, respectively, compared to $186.2m and US $1,114.2m for the three month
and the nine month periods ended 30 September 2006.
The lower gross and net written premium in 2007 was due largely to a deliberate reduction in catastrophe exposures year-over-year, lower pricing affecting the industry, clients retaining more risk, and re-estimations of ultimate premiums on certain treaties based on information from ceding companies.
In addition, net written premium was down because the company changed its retrocession structure.
The company’s combined ratio was 88.7% for the 2007 third quarter, compared to 90.5%
for the 2006 third quarter, and 91.9% for the nine months, compared to 85.8% for the comparable period of 2006.
Hans-Peter Gerhardt, chief executive officer of Paris Re, commented: “With these results, we believe we are on track with our return targets for the full year. In addition, we are successfully transitioning from AXA RE to PARIS RE. Effective 1 October, all renewals and new business are written on Paris Re paper.
“We are continuing to focus on capital management strategies and are evaluating a number of ways to optimise our return on shareholders’ equity through a combination of adjustments to our retrocession programme, financial leverage and distributions to shareholders. Subject to capital market conditions, we expect to be in a position to announce our plans in this regard in early 2008.”