PartnerRe discloses financial data | Insurance Business United Kingdom

PartnerRe publishes its financial statements for the full year 2023, highlighting achievements in various sectors of its activity.

The company reported net income available to common stockholders of $2,308 million, achieving a return on equity of 20%. Operating income reached $1,447 million, reflecting a 20% return on equity and a 7.5% improvement over prior results.

The growth was fueled by a 9% increase in net premiums earned, driven by 4% growth in the non-life sector and a 26% increase in life and health.

Non-life results saw earnings of $1,071 million and a combined ratio of 81.6%. The life and health sectors also performed well, delivering an allocated underwriting result of $159 million, which includes allocated net investment income.

Investment returns also saw growth, with a net amount of $1,148 million, boosted by unrealized gains on fixed maturity and short-term investments of $391 million. Net investment income rose, increasing $247 million to $646 million.

The past year has also brought legislative changes, most notably the Bermuda Government passing the Corporate Income Tax Act 2023. The new law imposes a 15% corporate income tax on certain businesses in Bermuda, starting with fiscal years beginning on or after January 1, 2025

In response, PartnerRe recognized a net deferred tax asset of US$432 million, including US$487 million related to the Economic Transition Adjustment (ETA) designed to smooth the transition to the tax regime, offset by a net deferred tax liability of US$55 million for future tax the impact of temporary differences between accounting and tax values.

Operating activities generated cash flow of $2,236 million, representing 52% growth. Additionally, the company adopted the long-term target improvements (LDTI) accounting standard in the first quarter of 2023, with adjustments made for comparable periods for consistency.

PartnerRe President and CEO Jacques Bono commented on the year’s performance, calling it “one of the strongest years in our recent history.”

“Our operating income of $1,447 million and operating return on equity of 20.0% reflect our success. We saw reduced impact from catastrophic events in our P&C sector and expanded our premium base in the specialty and life & health sectors. Our investment portfolio has also performed exceptionally well, with a 62% increase in net investment income compared to last year as we continue to invest money at higher rates,” Bono said.

Looking to the future, Bonneau emphasized the company’s commitment to its core values ​​and strategic priorities as it strives to continue to deliver value to customers, capital partners and shareholders. The CEO also reflected on his impending retirement, which is due to take effect at the end of March 2024.

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