Bermuda reinsurer PartnerRe Ltd. announced that it expects to post a 16 percent decline in premiums from renewals during the January 1, 2011 season.
The company anticipates writing and binding approximately $1.8 billion of non-life treaty premium, excluding US agriculture which renews later in the first quarter. In addition, approximately $50 million of expected written premium is still in process.
PartnerRe renews approximately 55 percent of its total annual non-life treaty business on January 1. The remainder is comprised of treaty business that renews at other times of the year. In addition to treaty business, the company writes approximately $430 million of facultative business which renews through the year.
PartnerRe president and CEO Costas Miranthis said: “Overall, this is an acceptable result for the January 1 renewal, in light of current market conditions, and reflects some repositioning of the portfolio on business that was previously written by Paris Re.
“We are pleased that despite the price declines in the market, we were able to maintain the overall technical profitability of our portfolio by retaining the business with better risk adjusted returns.”
He continued: “With our strong market position, access to a broad range of reinsurance markets, and active capital allocation, we are prepared for potentially persistent stagnant market conditions, and well-positioned to respond quickly when the environment improves.”
The amount of risk capital deployed in underwriting the non-life treaty renewals at January 1, 2011 decreased 12 percent compared to a year prior.