PartnerRe profit up despite competitive market
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PartnerRe Ltd. reported fourth-quarter net income of $262.7 million, an increase of 2.0% from the same period last year as the company stressed its gains despite competitive market conditions.
Net premiums written increased 2.9% from last year to $1.22 billion, while net investment income inched up 0.3% to $114.7 million, the Pembroke, Bermuda-based reinsurer said Wednesday.
Bill Babcock, PartnerRe’s executive vice president and chief financial officer, said during a call with analysts that the company’s life and health portfolio was the primary driver of the premium increase.
PartnerRe interim CEO David Zwiener said during the call that 70% of the company’s nonlife business renewed Jan. 1, with the most deterioration seen in catastrophe lines, which were off 5% to 20%
Fourth-quarter revenue rose 1.5% to $1.66 billion, and the company’s combined ratio improved to 85.3% from 88.0% in the fourth quarter of 2013.
During the call, Mr. Zwiener said the results were “particularly satisfying” as the reinsurance market continues to struggle with competitive and pricing pressures “greater than last year.”
Looking forward, he said, market conditions will get more challenging in 2015, one of the factors which lead PartnerRe to its recently announced $11 billion merger with Axis Capital Holdings Limited.
The deal is expected to close in the second half of this year.
For the full year, net income rose 67.2% to $998.2 million as the company benefited from net realized and unrealized investment gains, while investment income rose 0.9% to $479.7 million.
Net premiums written for the full year totaled $5.72 billion, up 6.0% from the year-ago period, while full-year revenues totaled $6.48 billion, up 16.9% from 2013.
The company’s combined ratio for 2014 deteriorated to 86.2% from 85.3% in 2013.
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