PartnerRe slumps to $1.1bn+ H1 loss on investments as it enters new chapter

Bermuda-based global reinsurer  PartnerRe slumped to a massive half-year loss despite improvements in the underwriting results for all three business segments. The company’s chief executive officer, however, expressed a bullish view of the company’s future under its new owner Covéa.

PartnerRe reported a net loss of $1.146 billion for the half year 2022, compared with the profit of $248 million for the same period of 2021. Net loss for the second quarter 2022 was $606 million, compared with the profit of $314 million a year ago.

The reinsurer attributed the steeper loss to unrealised losses on fixed maturities of $591 million and $1.413 billion for the second quarter and half year, respectively, due to increasing interest rates.

Gross written premium increased 5% for the quarter and 10% for the half year. The company’s non-life combined ratio improved 9.2 percentage points to 79.3% in the second quarter and 10.5 point to 81.9% in the half year.

PartnerRe's net investment return was a loss of $891 million in the second quarter and a loss of $1.53 billion for the half year 2022. Net investment income decreased $3 million, or 2.8%, for the second quarter of 2022 and increased $1 million, or 0.4%, for the half year 2022, compared to the same periods of 2021.

Commenting on the results,  PartnerRe president and chief executive officer Jacques Bonneau, said: “With the completion of Covéa’s acquisition of  PartnerRe in early July, we are excited to join a group with such an established history, strong brand and robust financial strength. As our financial results for the half year demonstrate, with an annualized operating return on equity of 15.0%, an improvement in our non-life combined ratio of 10.5 points year-over-year, and our growing life operations and third party capital management, we believe we can make an immediate contribution to the Covéa group.

“I am thankful for our relationship with Exor, which we will continue through their meaningful contribution to our third-party capital platform. We look forward to our future with Covéa and to further increasing the value that we provide to all of our clients, distribution partners, capital partners and other stakeholders.”

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