PARTNERRE RETURNS DIP AS NET PREMIUMS FALL 9%

PartnerRe produced an operating return on equity of 6.9% for the first quarter, down from 11.6% in the first quarter of 2015, amid continued tough conditions in the insurance and reinsurance market. The Bermudian group, which saw its acquisition by Italian investment firm Exor complete in March this year, saw net premiums written fall 9% to $1.5bn. Decreases were recorded in all non-life sub-segments, with the exception of North America. Net income for the quarter totalled $201.4m, compared with $231.7m in last year’s first quarter. The group’s non-life combined ratio of 93.4% was boosted by a 21 percentage point contribution from favourable prior year development, drawn from all non-life sub-segments. The quarter’s expenses included $66m of pre-tax costs related to the Exor transaction, including the impact of accelerating all remaining share-based compensation expense. Net investment income of $103m was down 2%, although rose 1% on a constant exchange basis.