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29th July 2020
PartnerRe reports net income of $229m for second quarter-investmest gains of $238m
PartnerRe has reported net income available to common shareholder of $229m for the second quarter of 2020, which included net realized and unrealized investment gains of $238m on fixed maturities and short-term investments, primarily due to decreases in worldwide credit spreads, and $35m of net foreign exchange losses. This compared to a net income available to common shareholder of $28m in the second quarter of 2019, which included net realized and unrealized investment gains on fixed maturities and short-term investments of $164m and $21m of net foreign exchange losses.
Net loss attributable to common shareholder was $204m for the half year 2020, which included net realized and unrealized investment gains on fixed maturities and short-term investments of $211m, primarily due to decreases in worldwide risk-free rates, and net foreign exchange gains of $95m. This compared to a net income available to common shareholder of $782m for the half year 2019, which included net realized and unrealized investment gains on fixed maturities and short-term investments of $443m and $47m of net foreign exchange losses.
The Company incurred $338m of pre-tax losses, net of retrocession and reinstatement premiums, as a direct result of COVID-19 and the related effects of the economic downturn in the first half of 2020. These losses reflect the company's estimates on claims incurred as of 30th June, 2020, with substantially all of the losses classified as incurred but not reported(IBNR) reserves. The company's estimates include $159m, $164m and $15m of pre-tax losses, net of retrocession and reinstatement premiums, attributable to its P&C, Specialty and Life and Health segments, respectively. The losses are attributable to business interruption and event cancellation related coverages, credit exposures in financial risks lines, and life and health business.
The Company has also been exposed to significant volatility in the financial markets throughout the first half of 2020. During the second quarter of 2020, the company recognized $588m of net unrealized gains, partially offset by $40m of net realized losses, on its investment portfolio, reflecting a significant recovery from March 31, 2020. The company's half year 2020 results reflect $31m of net realized investment losses and $22 million of net unrealized investment losses.
The COVID-19 pandemic is unprecedented and the related economic downturn is ongoing. There continues to be significant uncertainty surrounding the full extent of the impact. Despite the recent market conditions, the company's solvency position has remained strong and showed an improvement during the second quarter of 2020. The company also maintains ample liquidity, with cash and cash equivalents of $1.4bn.
PartnerRe Trends(212 articles)