Alberta, European floods contribute to PartnerRe’s combined ratio

PartnerRe Ltd. released Monday its financial results for the three months ending Sept. 30, recording a combined ratio in non-life of 74.9% and a 21% year-over-year increase in net premiums written for the third quarter.

Hamilton, Bermuda-based Partner reported net premiums written for the third quarter of 2013 were $1.265 billion, compared to $1.043 billion during the same period in 2012. All figures are in U.S. currency.

For the first 9 months of 2013, net written premiums were $4.211 billion, compared to $3.653 billion in 2012.

“We had very strong third quarter results reflecting a low level of large loss activity and strong core performance for most of our businesses, culminating in a 74.9% combined ratio and a 22.6% operating return on equity,” PartnerRe president and CEO Costas Miranthis stated in a press release.

The risks that PartnerRe reinsures include motor, agriculture, aviation/space, catastrophe, credit/surety, engineering, energy and marine. The firm’s combined ratio for the latest quarter in non-life was 74.9%, while the loss ratio for non-life was 47.5%.

“The combined ratio included 4.7 points (or $55 million, net of reinstatement premiums and retrocession) related to the German hailstorms in July 2013, and benefited from favorable prior year development of 20.3 points (or $238 million),” the firm stated in a pres release. “All Non-life sub-segments experienced net favorable development on prior accident years during the third quarter of 2013.”

During the first nine months of this year, the combined ratio in non-life was 84.2%, which included 5.2 points (or $156 million, net of reinstatement premiums and retrocession) related to the German hailstorms, the European floods and the floods last summer in Alberta. 

PartnerRe’s net income was $333 million during thet quarter ending Sept. 30, 2013, down from $486.7 million during the same period in 2012. Net income for the first nine months of the year was $397.51 million this year, down from $1.023 billion in 2012. 

“For the third quarter, the North America sub-segment’s net premiums written were up 31% primarily driven by new business in the agriculture line of business and, to a lesser extent, new business in the structured property and casualty lines of business,” PartnerRe stated. “This sub-segment reported a technical ratio of 70.2%, which included 22.2 points (or $94 million) of net favorable prior year loss development.”