Paris Re reports first quarterly loss in company’s history

Paris Re Holdings Limited reported a net operating loss of US$53.7 million for 2008 Q3, compared to a net operating income of US$90.0 million in 2007 Q3.The combined ratio was 135.1% for 2008 Q3, compared to 88.8% quarter-over-quarter.The combined ratio for the first nine months of 2008 is 106.7%, compared to 92.2% for the same period of last year.”The quarterly results were adversely impacted by US$130 million in estimated losses, net of reinsurance and reinstatement premiums from Hurricane Ike, representing 15.1 points of combined ratio in the nine month results,” a release says. “Storm Emma and Hurricane Gustav contributed an additional US$21.1 million in estimated losses, net of reinsurance and reinstatement premiums, representing 2.4 shares of combined ratio in the nine month results.”The company was adversely impacted by the continued credit turmoil with US$10.8 million and US$20.6 million in impairments for the quarter and nine months, respectively, the release continues. The deterioration in the company’s unrealized loss position, net of tax, contributed to a 1.0% decline in tangible shareholders’ equity during the quarter.