Three Bermuda-based reinsurers—Everest Re, RenaissanceRe and PartnerRe—posted positive fourth-quarter and year-end results despite losses from Superstorm Sandy.
Of the three, PartnerRe Ltd. reported the strongest gains, turning a 2011 fourth-quarter $18 million net loss into net income of $112 million for the same period in 2012.
During the quarter, the Pembroke, Bermuda-based carrier suffered $225 million in Sandy losses, net of retrocession and reinstatement premiums, as well as $316 million in losses stemming from the U.S. drought. But President and CEO Costas Miranthis says in a statement that the company generated $660 million in operating income and achieved a combined ratio of 87.8.
"Our investment portfolio did well, and we recorded significant gains during the year," says Miranthis. "This, together with our strong operating performance, resulted in book value per share growth of close to 19 percent for 2012."
For the year, net income was $1.13 billion compared to a prior year net loss of $520 million. Revenues increased 4 percent, or $211 million, to $5.6 billion.
Hamilton, Bermuda-based Everest Re Group, Ltd. says its Q4 net income increased 43 percent, or by $18 million, to $59 million despite $287 million in pre-tax losses from Sandy.
The company's combined ratio improved 21.9 points to 108.4. Revenues were down by 1 percent, or $13 million, to $1.27 billion due to derivative losses and expenses.
For the year, net income jumped to $566 million compared to a $92 million net loss in 2011. Revenues increased 28 percent, or by $311 million, to $1.4 billion.
RenaissanceRe did not fare as well as its neighbors, reporting a 49 percent drop in Q4 net income to $42 million. Revenues, however, increased 67 percent, or by $140 million, to $348 million.
Sandy caused an estimated $127 million in losses, says Neill A. Currie, RenaissanceRe's CEO, driving the company's Q4 combined ratio up to 98.5, far above the 2011 fourth-quarter combined ratio of 36.2.
The full-year combined ratiowas 57.8, an improvement of 60.8 points thanks to favorable prior year development and significantly lower international losses from major catastrophe events.
"Our performance in 2012 reflected the value of our 'Three Superiors'—superior customer relationships, superior risk selection and superior capital management," Currie says in a statement. "As we enter our 20th year of operation, we remain focused on perpetuating these strengths along with the discipline that has served our clients, joint venture partners and shareholders so well over the long-term."
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