Net income for PartnerRe rose 73 percent in the first quarter to $193.2 million, with the jump attributable to the absence of large losses which had dampened first-quarter results in 2005.
Last year, first-quarter net income was $111.4 million, when results included the impacts of $63 million in losses from winter storm Erwin and a large energy loss in Canada.
On a per share basis, net income was $3.21 for the first quarter of 2006, compared with $1.21 in first-quarter 2005.
During a conference call this morning, PartnerRe President Patrick Thiele said that in addition to low large-loss activity in the quarter, good investment performance contributed to the results for the Pembroke, Bermuda-based firm.
Chief Financial Officer Albert Benchimol noted that investment income came in at roughly $100 million, up from $86.7 million last year.
Turning to underwriting results, Mr. Benchimol added, "This may be our lowest combined ratio since we became a diversified reinsurer in 1999," referring to a nonlife combined ratio of 87.8 for the quarter.
Last year, the combined ratio was 97 and included 8 points related to winter storm Erwin losses.
Offering some market commentary during this morning's conference call, Mr. Thiele described "a mixed reinsurance market with a wide variation in expected returns."
"It reminds much more of a post- [Hurricane] Andrew pricing cycle in 1993-1994 than the 2001-2003 market," he said, noting that pricing and profitability gains are primarily in the property market.
Mr. Thiele also predicted that the pricing environment in these property areas would "stay robust at least through the January 1, 2007 renewals, even in the absence of a significant catastrophe event."
For the first quarter, PartnerRe reported declines in net written premiums in all of its property-casualty operating segments, with an overall dip of 5 percent to $1.3 billion.
Mr. Benchimol, going over the premium declines for each of the p-c segments–U.S. p-c, global p-c and worldwide specialty–said the reported declines were misleading, attributing them to foreign exchange and late-reporting adjustments.
The biggest premium decline–a 15 percent dip–was reported in the global p-c segment, which represents about 27 percent of total premiums for the quarter at $364 million.
The company reported a 5 percent drop in premium for U.S. p-c business, which amounted to $296 million for the quarter, and a 4 percent drop for its largest nonlife segment, worldwide specialty, with premiums of $527 million.
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