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Member, Beacon International Group, Ltd.
PEMBROKE, Bermuda—PartnerRe Ltd. reported a net loss of $807 million for the first quarter of this year vs. a profit of $79.7 million for the first quarter of last year.
Pembroke, Bermuda-based PartnerRe said the loss was caused largely by the frequency and severity of large catastrophe losses in the first few months of the year.
The reinsurer and insurer said its total, direct losses from the series of first-quarter catastrophes are estimated at $1.07 billion, pretax and net of reinstatements, reinsurance and commission adjustments.
Re-evaluating risk
“During the first quarter, we witnessed an exceptional frequency of catastrophic events in international markets. As PartnerRe underwrites a globally diversified portfolio, the losses in Japan, New Zealand and Australia together led to catastrophe losses significantly in excess of our quarterly expectations,” PartnerRe President and CEO Costas Miranthis said Monday in a statement.
He added that the frequency of losses, coupled with recent revisions to modeling tools, are leading many buyers to re-evaluate their view of risk.
“While the pricing reaction in loss-affected areas is predictable, the broader re-evaluation of catastrophe risk is beginning to change the pricing dynamics in all property catastrophe markets,” he said.
Other results
PartnerRe's net written premiums in the first quarter fell 18% to $1.5 billion. The company said this is related primarily to its decision to cancel and not renew certain business in order to restructure some of its portfolios after the integration of Paris Re, which it bought in 2009.
PartnerRe's net investment income for the first quarter of 2011 was $152 million, down 12% compared with the first quarter of 2010, it said.
The company's nonlife combined ratio for the first quarter of 2011 was 193.7% vs. 116.9% for the first quarter of 2010.
PEMBROKE, Bermuda—PartnerRe Ltd. says it expects damage in Australia from floods and Cyclone Yasi to result in net insurance claims of $80 million to $100 million for the first quarter of this year.