Partner Re reported first-quarter net income declined 14 percent to $169 million compared with $193 million recorded for the same year-ago period.
The company pointed to operating earnings of $157 million, which represented a 17 percent increase from 2006.
The Bermuda-based reinsurer posted a combined ratio of 85.4, a two-point improvement from the first quarter of last year.
Net premiums written declined in the quarter to $1.27 million from $1.34 from the same year-ago period.
Chief Executive Officer Patrick Thiele noted the $44 million negative impact of Windstorm Kyrill but said the carrier was still able to generate a 19 percent annualized operating return.
Morgan Stanley analyst William Wilt said that reserve releases helped to fuel earnings that beat his estimate by .91 cents. "Demand-premium growth was weak, but the stock should trade better than its peer Everest Re, as we see it," he wrote.
Bank of America Securities analyst Kevin O'Donoghue noted the combined ratio beat his estimates by 12 points with 6.2 points of catastrophe losses, slightly less than the 7.8 points he expected.
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