PartnerRe increases profit in 2007 Q2, but non-life net premiums written “flat”

PartnerRe Ltd. has reported a 2007 Q2 profit of US$105 million, up from a profit of US$77.5 million in 2006 Q2.
The global reinsurers 2007 Q2 combined operating ratio was 85.7%, down from the 90.3% it reported in 2006 Q2.
Net premiums written in 2007 Q2 amounted to US$898.7 million, up 10% from US$815.9 million in 2006 Q2. The company attributed this increase to the life insurance segment and a mix of business and timing issues in the non-life book.
Commenting on the second-quarter and half-year 2007 results, PartnerRe president and CEO Patrick Thiele said: “PartnerRe had another strong quarter with an operating return on beginning shareholders’ equity of 17%.”
He further noted the impact of rising interest rates had a negative effect on the market value of the companys bond portfolio, even though the GAAP book value per share grew by 1% during the quarter.
PartnerRe said its global (non-U.S.) property and casualty business, representing 14% of total net premiums written for the quarter, reported net premiums written of US$127 million for 2007 Q2, flat with the same period in 2006.
Net premiums earned during the quarter were US$173 million, down 5% from US$181 million in the second quarter 2006. The technical ratio for this sub-segment was 101.2% for the second quarter of 2007 compared to 79.2% for the same period in 2006, reflecting a higher-than-usual frequency of mid-sized loss events, the company reported.