PartnerRe, the Bermuda-based reinsurance company, has retained significant investment in its major third-party vehicles from former owner Exor and reported that its P&C reinsurance business is growing at a profitable rate.
French insurance provider Covéa completed the acquisition of PartnerRe from Italian company EXOR in July.
In reporting its results yesterday, PartnerRe confirmed that the insurance-related partnership between the companies will continue, while Exor is expected to continue investing in its third-party vehicles, after being replaced by its new owner Covéa.
PartnerRe President and Chief Executive Officer Jacques Bonneau commented, “With the completion of Covéa’s acquisition of PartnerRe at the beginning of July, we are delighted to join a team with a strong reputation, strong brand and financial strength. As shown by our financial results of half of the year shows, with an annual return of 15.0%, an improvement in our non-life combined rate of 10.5 points year-on-year, and the growth of our life services and third-party investment management, we believe that we will be able to act quickly for the Covéa group.
“I am grateful for our relationship with Exor, which we will continue through their support of our third platform. We look forward to our future with Covéa and increasing the value we provide to all our customers, partners, key partners and other stakeholders.”
Covéa initially invested EUR 750 million in reinsurance vehicles managed by PartnerRe, which contained reinsurance sidecar equipment.
As part of the completed acquisition, Exor acquired the interests in the special control vehicles operated by PartnerRe for approximately $725 million from Covéa.
After completing the change of ownership, the costs associated with the insurance in the PartnerRe entities continue and the company said yesterday, “the third-party payments managed by the company will not change as a result of the transaction, since Exor acquired the interest of Covéa Motors of the third company.”
That contributed to PartnerRe’s third-party assets under management of somewhere around US$1.1 billion, we understand.
PartnerRe has announced a strong quarter of record, showing operating income of $328 million in the second quarter and $502 million for the first half of the year.
However, the financial losses led to the company’s bankruptcy, as PartnerRe faced a serious financial crisis.
But the unrecorded results of life give a profit of $ 282 million against a combined ratio of 79.3%, which was a change of 9.3 for the second quarter and $ 481 million against a combined ratio of 81.9%, which was a change of 10.5 for the half of the year.
At the same time, PartnerRe has been growing, growing non-life premiums recorded by 8% in the second quarter of 2022 and 13% for the first half of 2022, compared to the same periods in 2021, led by the growth of the P&C segment.
The main loss, after refunds and refunds, came out at $ 45 million for the second quarter of 2022, with $ 41 million related to the Natal Flood and only $ 4 million related to the Australian Flood.
For the first half, the main losses, after accounting for recovery and recovery costs, were $131 million for the half of 2022, with $50 million related to the war between Russia and Ukraine, $41 million for the Natal Flood and $40 million for the Australia. Flood water.
The positive past development supported the combined P&C ratio, with reserves growing well to 9 points on CR for Q2 2022 and 6.4 points for H1.