Cat Losses Drive Down PartnerRe’s 4Q, Year End Results

NU Online News Service, Feb. 8, 2:31 p.m. EST

Catastrophe losses helped drive an 84 percent decline in Pembroke, Bermuda-based PartnerRe Ltd.’s 2010 fourth quarter net income, and the company reported that upward revisions for New Zealand earthquake and Australia flood losses added 12 points to the combined ratio.

PartnerRe said 2010 fourth quarter net income was $57 million, compared to $354.4 million for the same period a year ago. The global reinsurer said its non-life combined ratio climbed to 94.6 in the quarter compared to 80.3 in the 2009 fourth quarter.

In December, PartnerRe raised its expected losses from the New Zealand quake to $140 million to $160 million, up from an initial estimate of $64 million.

Earlier this year, PartnerRe said the Australia flooding in December is expected to cost the company between $25 million and $35 million.

The company also reported net realized and unrealized investment losses of $83.2 million in the quarter compared to a gain of $25 million in the 2009 fourth quarter.

For the year, PartnerRe reported net income of $852.6 million, down from $1.5 billion in 2009. The combined ratio in 2010 was 95, compared to 81.8 in 2009.

The company also saw net realized and unrealized investment gains of $401.5 million for the year, down from gains of $591.7 million in 2009.

PartnerRe President and Chief Exective Officer Costas Miranthis said, “Despite a challenging quarter and year, both of which included a number of catastrophe and large loss events, our underlying portfolio continues to perform well.”