PartnerRe Ltd. Reports Second Quarter and Half Year 2020 Results

Business Wire

Net income available to common shareholder of $229 million for the second quarter

Net unrealized investment gains of $588 million, reflecting a significant recovery since the first quarter

Non-life underwriting loss of $260 million and combined ratio of 121.3% for the second quarter, inclusive of $305 million from Non-life COVID-19 related impacts

Life and Health allocated underwriting profit of $5 million, inclusive of COVID-19 related losses recognized in the second quarter of $15 million attributable to Life and Health

Strengthened solvency position during the second quarter and observed improved reinsurance conditions at the latest renewal period, which position the Company well to deliver improved performance

PEMBROKE, Bermuda--(BUSINESS WIRE)-- PartnerRe Ltd. ("the Company") today reported net income available to common shareholder of $229 million for the second quarter of 2020, which included net realized and unrealized investment gains of $238 million on fixed maturities and short-term investments, primarily due to decreases in worldwide credit spreads, and $35 million of net foreign exchange losses. This compared to a net income available to common shareholder of $285 million in the second quarter of 2019, which included net realized and unrealized investment gains on fixed maturities and short-term investments of $164 million and $21 million of net foreign exchange losses.

Net loss attributable to common shareholder was $204 million for the half year 2020, which included net realized and unrealized investment gains on fixed maturities and short-term investments of $211 million, primarily due to decreases in worldwide risk-free rates, and net foreign exchange gains of $95 million. This compared to a net income available to common shareholder of $782 million for the half year 2019, which included net realized and unrealized investment gains on fixed maturities and short-term investments of $443 million and $47 million of net foreign exchange losses.

The Company incurred $338 million of pre-tax losses, net of retrocession and reinstatement premiums, as a direct result of COVID-19 and the related effects of the economic downturn in the first half of 2020. These losses reflect the Company's estimates on claims incurred as of June 30, 2020, with substantially all of the losses classified as incurred but not reported (IBNR) reserves. The Company's estimates include $159 million, $164 million and $15 million of pre-tax losses, net of retrocession and reinstatement premiums, attributable to its P&C, Specialty and Life and Health segments, respectively. The losses are attributable to business interruption and event cancellation related coverages, credit exposures in financial risks lines, and life and health business.

The Company has also been exposed to significant volatility in the financial markets throughout the first half of 2020. During the second quarter of 2020, the Company recognized $588 million of net unrealized gains, partially offset by $40 million of net realized losses, on its investment portfolio, reflecting a significant recovery from March 31, 2020. The Company's half year 2020 results reflect $31 million of net realized investment losses and $22 million of net unrealized investment losses.

The COVID-19 pandemic is unprecedented and the related economic downturn is ongoing. There continues to be significant uncertainty surrounding the full extent of the impact. Despite the recent market conditions, the Company's solvency position has remained strong and showed an improvement during the second quarter of 2020. The Company also maintains ample liquidity, with cash and cash equivalents of $1.4 billion at the end of the second quarter of 2020.

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