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Member, Beacon International Group, Ltd.
PEMBROKE, Bermuda—PartnerRe Ltd. posted a loss of $502.6 million during the first nine months of the year compared with a $795.5 million profit during the same period of 2010, as the Bermuda reinsurer took hits from catastrophes and investments.
Meanwhile PartnerRe's gross premiums written fell 8.6% year over year to $3.74 billion during the nine months that ended Sept. 30.
The reinsurer's net investment income fell 7.5% year over year to $473.6 million in the first three quarters of 2011.
The company estimated that its losses related to catastrophes such as the earthquake in Japan soared 423.8% to $1.21 billion in the first nine months of 2011 compared with the same period last year.
Net income in the third quarter sank 65.7% from the year-ago period to $180.1 million. Third-quarter gross premiums written climbed 8.6% year over year to nearly $1.10 billion.
Net investment income slipped 0.5% year over year to $163.6 million in the third quarter.
“The third quarter benefitted from the absence of large catastrophic losses, and also from the fact that reported losses were considerably lower than expectations, resulting in favorable reserve development,” PartnerRe President and CEO Costas Miranthis said in a statement. “Results were negatively impacted, however, by an increase in our provisions for the earthquake events of the first quarter.”
But as the Jan. 1, 2012, renewals approach, “we are cautiously optimistic about market trends,” he said. “We are beginning to see price increases in many lines, particularly short-tail lines, as well as increased demand for reinsurance.”