Catastrophes Put PartnerRe in the Red for Q4, Year

Catastrophes headlined 2011 and PartnerRe President and Chief Executive Officer Costas Miranthis says PartnerRe was affected, yet remains well-positioned to take advantages of opportunities as the reinsurance market improves.  

"During the January 1 renewals, we saw encouraging signs in most of our business lines," Miranthis says in a statement. "Chronic premium rate erosion appears to have been halted nearly everywhere and risk-adjusted premium rates increased in several areas—some significantly and some more modestly."

"In this environment," he adds, "we are pleased with the outcome of the January renewal. We achieved a better balanced risk profile to optimize risk adjusted returns and we added a number of new client relationships."

PartnerRe recorded $1.79 billion (net of reinstatements, reinsurance and commission adjustments) in losses for the full year 2011, due to catastrophic events, including additional catastrophe loss estimates from events throughout the year.

For the fourth quarter, the company's non-life combined ratio was 121.7, which included 12.4 points from $120 million worth of fourth-quarter catastrophe losses related to the Thailand floods. PartnerRe previously announced it expected a $120 million fourth-quarter charge from the flooding in Thailand.

The quarter's combined ratio also included 21.6 points from $210 million in net losses on prior quarter events and 5.3 points from $52 million of net favorable loss development on prior accident years, says PartnerRe.

For the year the PartnerRe's combined ratio was 125.4. The year catastrophe events included earthquakes in Japan and New Zealand, flooding in Thailand, tornadoes in the U.S., an Australian cyclone, as well as an losses related to an aggregate contract covering events in Australia and New Zealand. Plus, there was a higher frequency of mid-size losses in the fourth quarter, PartnerRe says.