PartnerRe reported a net loss of US$108 million (around SG$149.8 million) for the fourth quarter of 2019, worsening from a net loss of US$32 million (around SG$44.3 million) in the fourth quarter of 2018.
According to the international reinsurer, the latest loss figure includes net realised and unrealised investment losses of US$50 million on fixed maturities and short-term investments, primarily due to increases in world-wide risk free rates, and US$78 million net foreign exchange losses.
For the full year 2019, net income was US$890 million, which includes net realised and unrealised investment gains on fixed maturities and short-term investments of US$434 million, primarily due to decreases in world-wide risk free rates and credit spreads, and net foreign exchange losses of US$87 million, the reinsurer said in a statement.
For the non-life segment, net premiums written for the fourth quarter of 2019 were up 16% compared to the fourth quarter of 2018, driven by a 16% increase in the P&C segment and a 17% increase in the specialty segment. For the full year 2019, non-life net premiums written were up 18% compared to 2018, driven by a 21% increase in the P&C segment and a 14% increase in the specialty segment.
Meanwhile, for the life & health segment, net premiums written were up 21% for both the fourth quarter and full year 2019, compared to the same periods of 2018.
“In the fourth quarter of 2019, our non-life combined ratio was impacted by losses related to Typhoon Hagibis and in the agriculture line of business, whose impact on book value has been mitigated by strong investment performance,” said Emmanuel Clarke, president and CEO of PartnerRe. “Notwithstanding challenging non-life performance in the fourth quarter, the company reported solid net income to common shareholder in 2019, driven by investments results and contribution from our life and health segment.”
Clarke added that the company has taken actions to improve its non-life underwriting performance in 2020, taking advantage of improved non-life market conditions at the January renewal as well as ongoing portfolio optimisation actions.
“With further margin improvement expected in our non-life portfolio during the course of the year, and continued growth in life and health, I am confident we will be able to deliver in 2020 solid growth in book value for our shareholder,” he said.
