PartnerRe Reports Q2 Losses Due to Catastrophes and Investment Losses

PartnerRe Ltd. today reported net income of $124.2 million for the second quarter of 2011, down from the same time last year, which was $190.9 million. The Company recorded operating earnings of $67.2 million, compared to operating earnings of $141.8 million in second quarter 2010.

Published on August 2, 2011

Net loss for the first six months of 2011 was $682.8 million, compared with a profit of  $270.6 million for first half of 2010.

PartnerRe posted investment income of $309,962 vs. $347,576 for the first six months of 2010.

Commenting on results for the second quarter and half year 2011, PartnerRe President & Chief Executive Officer Costas Miranthis said, “The second quarter of 2011 was another active period in terms of catastrophe-related losses for the industry, with a series of severe weather events across the U.S. in April and May, along with a number of smaller losses, including another earthquake in New Zealand in June. Despite the impact of these losses on catastrophe-exposed short-tail lines, the remainder of our portfolio continues to perform well, and as a result our capital position remains strong as we head into the U.S. wind season.”

Mr. Miranthis added, “Through recent renewal periods, including the Japanese renewal which was delayed from April 1, we reduced certain catastrophe exposures to bring greater balance to our overall risk portfolio and ultimately maximize the risk-adjusted return potential of the total portfolio. As we expected, we saw some encouraging signs in the June and July renewals. We observed increases in catastrophe rates in most territories with significant increases in loss-affected lines and we selectively took advantage of these improvements. Longer-tail lines remain flat.”