Bermuda-based PartnerRe Ltd. announced that during the January 1, 2011 treaty renewal season it “expects to write and bind approximately $1.8 billion of Non-Life treaty premium. On a constant foreign exchange basis, this represents a decline of 16 percent from the renewable premium base.”
The renewal information does not include U.S. agriculture which renews later in the first quarter. In addition, approximately $50 million of expected written premium is still in process.
The Company explained that it “renews approximately 55 percent of its total annual Non-Life treaty business on January 1. The remainder is comprised of treaty business that renews at other times during the year. In addition to treaty business, the Company writes approximately $430 million of facultative business which renews through the year.”
President & CEO Costas Miranthis commented: “Overall, this is an acceptable result for the January 1 renewal, in light of current market conditions, and reflects some repositioning of the portfolio on business that was previously written by PARIS RE. We are pleased that despite the price declines in the market, we were able to maintain the overall technical profitability of our portfolio by retaining the business with better risk adjusted returns.”
He added, “With our strong market position, access to a broad range of reinsurance markets, and active capital allocation, we are prepared for potentially persistent stagnant market conditions, and well-positioned to respond quickly when the environment improves.”
PartnerRe’s January 1, 2011 Non-Life treaty renewals and the distribution of risk capital were further broken down in a table, which was part of the announcement.
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