Earnings Reports: PartnerRe, Greenlight Re

By | July 31, 2012

Selected earnings highlights from Bermuda-based PartnerRe for the second quarter and the first six months of 2012 are as follows:
Q2 2012 Q2 2011
Gross premiums written ———— $1.16324 bn $1.18205 bn
Net premiums written ————— $1.136046 bn $1.056467 bn
Net premiums earned ———– $1.090878 bn $1.107445 bn
Net income after tax —————- $176.146 mn $124.185 mn
Operating income after tax ——- $142.018 mn $158.329 mn
Net investment income ————- $153.506 mn $26.494 mn
Net investment gain/loss* ———- $38.132 mn $78.199 mn
Q2 combined ratio – 90.6 percent (101.7 percent in Q2 2011)

1st Half 2012 1st Half 2011
Gross premiums written ———— $2.73072 bn $2.639766 bn
Net premiums written ————— $2.609331 bn $2.526687 bn
Net premiums earned ———— $2.080708 bn $2.172034 bn
Net income (loss) after tax ——– $536.287 mn ($682.771 mn)
Operating income (loss) after tax — $323.713 mn ($668.419 mn)
Net investment income ————– $300.402 mn $309.962 mn
Net investment gain/loss* ———– $230.867 mn ($34.000 mn)
*realized and unrealized
1st half combined ratio – 87.8 percent (147.1 percent in 1st half 2011)

President & CEO Costas Miranthis commented: “We had a solid second quarter driven by strong underwriting results. This, together with our good first quarter results, led to a combined ratio of 87.8 percent for the first half of 2012, and a 11.7 percent operating return on beginning equity for the six month period.

“Despite a difficult investment environment, our portfolio did well, recording modest gains. Our year-to-date operating performance, as well as the significant portfolio gains in the first quarter, resulted in book value per share growth of approximately 8 percent year-to-date. We continue to be active on the capital management front, while maintaining a strong capital position as we head into the U.S. wind season.”

He also noted that the “renewal environment overall was positive, with risk-adjusted rate improvement in several lines, but it remains fragmented. Further, the pace of improvement, particularly in catastrophe-exposed lines, appears to have decelerated, and sustainability of current rates and trends in cat will be dependent on loss activity for the remainder of the year. I am pleased that we continue to find attractive opportunities to broaden our portfolio; and I am confident that our global footprint and line of business expertise position us well in this challenging operating environment.”

Source: PartnerRe

Selected earnings highlights from the Cayman Islands-based Greenlight Capital Re for the second quarter and the first half of 2012 are as follows:
Q2 2012 Q2 2011
Gross premiums written ————– $83.986 mn $113.266 mn
Net premiums written —————- $88.588 mn $96.083 mn
Net premiums earned ————— $130.014 mn $107.151 mn
Net income/loss ———————- ($36.069 mn ) ($15.961 mn)
Net investment income/loss ——— ($36.896 mn) ($19.469 mn)

1st Half 2012 1st Half 2011
Gross premiums written ————– $236.206 mn $214.005 mn
Net premiums written —————- $229.813 mn $193.346 mn
Net premiums earned ————— $231.602 mn $212.608 mn
Net income/loss ——————— $29.064 mn ($58.951 mn)
Net investment income/loss ——- $34.711 mn ($55.645 mn)
1st half combined ratio – 100.8 percent (102.1 percent in 1st half 2011)

CEO Bart Hedges commented: “There are signs that conditions are improving in the underlying insurance market, but we have yet to experience this in the reinsurance market, which remains quite competitive. We are maintaining our underwriting discipline as we continually assess new business opportunities in the U.S. and Europe.”

Greenlight Re’s Chairman David Einhorn added: “During the second quarter of 2012, our investment portfolio gave back some of the gains we generated in the first quarter of the year. The Company remains focused on its prudent, opportunistic underwriting approach in what remains a challenging reinsurance market.”

Source: Greenlight Capital Re

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