1H2019 main figures (vs. 1H2018)
- Gross written premiums (GWP): USD 4,026 million (+15.6%), of which:
- P&C GWP: USD 2,134 million (+22.9%)
- Specialty GWP: USD 1,138 million (+0.6%)
- L&H GWP: USD 754 million (+22.6%)
- Technical result: USD 205 million (+2.0%)
- Net investment income: USD 231 million (+11.1%)
- Net income: USD 805 million (1H2018: USD 28 million)
- Combined ratios:
- P&C: 86.9% (-11.6 pp.)
- Specialty: 107.1% (+17.1 pp.)
- L&H: 95.0% (+0.1 pp.)
Non-life net premiums written were up 20% for the half year 2019 compared to the same period of 2018, driven by a 27% increase in the Property and Casualty (P&C) segment and 8% increase in the Specialty segment.
The underwriting profit of non-life segment was USD 119 million (1H2018: USD 107 million) for a combined ratio of 95.0% (1H2018: 94.9%). The increase was driven by the P&C segment with a combined ratio of 86.9% for the half year 2019 (1H2018: 98.5%), which significantly decrease.
The Specialty segment combined ratio was 107.1% for the half year 2019 (1H2018: 90.0%), a considerable increase compared to the same period of previous year, driven by a large loss on Ethiopian Airlines and Boeing of USD 39 million (4.1 points), net of retrocession and reinstatement premiums, in the aviation line of business and higher frequency of losses in other lines of business.
Life and Health
For Life and Health (L&H) net premiums written went up 23% by the end of half year 2019, compared to the same periods of 2018. Allocated underwriting result was positive, amounting USD 44 million for the half year 2019 (1H2018: USD 52 million).
Net investment return for the half year 2019 was USD 917 million, or 5.3%, which included net investment income of USD 231 million, net realized and unrealized investment gains of USD 651 million, and interest in earnings of equity method investments of USD 35 million.
Net investment income increased by 11% for the half year 2019, compared to the same period of 2018, driven primarily by actions undertaken during the course of the fourth quarter of 2018 and the first quarter of 2019 to increase the yield within the investment grade fixed income portfolio.
Net realized and unrealized investment gains of USD 651 million in the half year 2019 were driven by USD 443 million of net realized and unrealized investment gains on fixed maturities and short-term investments due to decreases in world-wide risk free rates and credit spreads, and USD 208 million of net realized and unrealized investment gains on equities, investments in real estate and other invested assets.
Emmanuel CLARKE, PartnerRe President and Chief Executive Officer, said:
"We delivered solid second quarter results, driven by strong performance in our P&C segment and excellent investments results, more than offsetting loss activity in our Specialty and Life segments. This demonstrates the value of our well-diversified book of business and the positive impact of actions we took in 2018 to improve performance of our P&C and Investments portfolios."
More financial information about Partner Re second quarter/half-year of 2019 financial results can be found on the company's website.