PartnerRe Ltd. Reports First Quarter 2020 Results

Business Wire

Net loss attributable to common shareholder of $433 million for the quarter, driven by $610 million of unrealized losses on investments. Since the quarter-end, the Company's investment portfolio significantly recovered.
Non-life combined ratio of 103.8% during the quarter, driven by P&C combined ratio of 94.3% and Specialty combined ratio of 121.1%. Life and Health profitability, including underwriting result and allocated net investment income, of $18 million for the quarter.
Strong solvency and liquidity at the end of the first quarter, with a solvency ratio estimated in excess of 250% and cash and cash equivalents of $1.9 billion.

PEMBROKE, Bermuda--(BUSINESS WIRE)-- PartnerRe Ltd. ("the Company") today reported a net loss attributable to common shareholder of $433 million for the first quarter of 2020, which included net realized and unrealized investment losses of $27 million on fixed maturities and short-term investments and $130 million of net foreign exchange gains. This compared to a net income available to common shareholder of $497 million in the first quarter of 2019, which included net realized and unrealized investment gains on fixed maturities and short-term investments of $280 million and $25 million of net foreign exchange losses.

The Company incurred $18 million of pre-tax losses from event cancellation claims associated with COVID-19 in the first quarter of 2020. PartnerRe is exposed to COVID-19 related claims across its Non-life and Life & Health segments, and the COVID-19 related losses recorded during the first quarter reflect estimates on claims incurred as of March 31, 2020. The COVID-19 crisis and its potential recessionary impacts is an ongoing event, and it is too early to quantify the full extent of its impact.

The Company is also exposed to investment risk and the first quarter results reflect $610 million of unrealized investment losses driven by the economic impacts of widening credit spreads and declines in equity markets. The Company's solvency and liquidity remained strong at the end of the first quarter of 2020, with a solvency ratio estimated in excess of 250% and cash and cash equivalents of $1.9 billion.

PartnerRe President and Chief Executive Officer Emmanuel Clarke commented, “The COVID-19 pandemic is a test for our industry and a reminder of the potential severity of systemic events, and the value of strong reinsurance partnerships. Our priorities in responding to the rapidly expanding COVID-19 pandemic through the first quarter have been the safety of our staff and the continuous, seamless servicing of all our business partners. I have been impressed by the speed and agility with which the PartnerRe organization worldwide has adapted to a full work from home mode, while maintaining highly responsive interaction with our business partners.”

Mr. Clarke continued: “In our first quarter, we delivered positive underwriting results in our P&C and Life & Health segments, which was offset by loss activity in our Specialty segment. I am confident that the actions we have taken throughout last year to improve our portfolio performance, combined with strong underlying rate increases in the loss affected classes, will start to show a positive impact. We continue to execute on our growth strategy for Life & Health to maintain a well-diversified and profitable book of business.”

Mr. Clarke added: “With the strength of our balance sheet and our high quality investment portfolio, we have the resilience to weather this pandemic and changed economic cycle, and we are well-positioned for the hardening of reinsurance pricing.”