PartnerRe Names Bonneau as President and CEO as Clarke Exits

Bermuda-based PartnerRe Ltd. announced it has appointed industry veteran Jacques Bonneau as its president and chief executive officer effective immediately.

Bonneau, who will be based in the company’s headquarter in Bermuda, succeeds Emmanuel Clarke, who is leaving the company after four years as CEO by “mutual agreement to pursue other opportunities outside the group,” the company said.

The company also reported its second quarter results.

Bonneau has been a member of the PartnerRe board of directors since February 2019, having served on the company’s audit committee and as the chairman of its underwriting and risk committee. He is a former CEO of Ace/Chubb Tempest Re Group and former group chief underwriting officer of Chubb.

PartnerRe is owned by Exor, the holding firm of Italy’s Agnelli family.

The change in leadership comes following the collapse of the sale of PartneRe. In May, French insurer Covéa walked away from its planned $9 billion purchase of PartnerRe, saying it could no longer buy due to the “current unprecedented conditions and significant uncertainties threatening the global economic outlook.”

However, Exor said that Covéa, while trying to renegotiate the deal’s agreed terms, never indicated there were any material adverse changes, including any related to pandemic risk, that would explain its pulling out the deal. Exor said it believes that no such basis existed and that PartnerRe is not expected to be significantly affected by the COVID-19 outbreak.

Bonnrau Career

Bonneau began his reinsurance career at General Reinsurance Corp. in casualty facultative operations in 1981. Since then, he has worked as the senior vice president at Trenwick America Group and was the chief underwriting officer and a member of the board of directors at Chartwell Re Corp. from 1990 to 1999. Bonneau held various roles with Chubb (previously ACE Group). He was the CEO of Chubb Tempest Re USA from 1999 to 2005 followed by the CEO of the Chubb Tempest Re Group from 2005 to 2014. Most recently, he was the group chief underwriting officer at Chubb from 2015 to 2017, when he retired.

Brian Dowd, independent chairman of the PartnerRe board of directors, praised Bonneau’s “strong track record in reinsurance underwriting and deep knowledge of our clients and brokers.”

Clarke was named president of PartnerRe in 2015 as its acquisition by Exor was in progress. He added CEO to his responsibilities in 2016. Clarke first joined PartnerRe as an underwriter in 1997 with the acquisition of SAFR, and was appointed head of Credit and Surety, Global in 2001, becoming deputy head of Specialty Lines, Global in 2002, head of Property and Casualty, Global in 2006 and head of Specialty Lines, Global in 2008.

Dowd expressed the company’s gratitude and appreciation to Clarke for his leadership that enabled PartnerRe to “smoothly transition under EXOR ownership” and strengthen the company’s business and strategic positioning.

In prepared remarks, Clarke said he is proud of advancing the company’s strategic goals. He cited progress with the non-life portfolio, building the life and health platform, and the organization’s talent base.

Q2 Results

On the same day, PartnerRe reported its second quarter results that showed $229 million in net income, versus $285 million in the 2019 second quarter. Investments helped, with the company booking $588 million in net investment gains during the quarter, a large improvement over Q1 when the fast-growing coronavirus pandemic rattled the financial markets.

P/C net premiums written dropped 30 percent in Q2 and in the 2020 first half compared to the same periods in 2019 due to the economic downturn and ongoing efforts to optimize the underwriting portfolio, the company said.

Non-life underwriting losses reached $260 million in Q2 with a 121.3 combined ratio, along with a $306 million underwriting loss and 112.6 combined ratio in the 2020 first half. In 2019, non-life underwriting profit hit $95 million, with a 92.8 combined ratio for the 2019 first quarter. The 2019 first half produced a $119 million underwriting profit and 95 combined ratio.

PartnerRe reported $338 million in pre-tax catastrophe losses, net of retrocession and reinsurance premiums, for the 2020 first half due to COVID-19. Losses stemmed from business interruption and event cancellation coverages, financial risk lines credit exposures and life and health business claims.

Topics Mergers & Acquisitions Underwriting Reinsurance Chubb