NU Online News Service, Aug. 2, 1:18 p.m. EDT
PartnerRe says 2011 second-quarter net income dropped 35 percent due to the impact of catastrophe losses on its business.
The Pembroke, Bermuda-based reinsurer reports that second-quarter net income dropped $67 million to $124 million compared to the same period a year ago. Total revenues increased more than 1 percent, or $20 million, to $1.35 billion. Net premiums written were down 5 percent, or $56 million, to $1.06 billion.
For the 2011 first half, the company reports a net loss of $683 million compared to net income of $271 million for the same period last year.
"Once again, the main influence on the quarter was the level of catastrophe activity," says Costas Miranthis, president and CEO, during a conference call with financial analysts.
While reserves were not impacted significantly, losses were impacted by frequency. Miranthis notes that tornado activity in the United States produced $89 million in net losses alone for the carrier.
There was also a major fire in Canada and the aftershocks in Christchurch, New Zealand that contributed to overall losses.
PartnerRe's second-quarter catastrophe losses are estimated to be $181 million pre-tax, net of reinstatement, reinsurance and commission adjustments. The company's combined ratio for the quarter was 101.7.
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