PEMBROKE, Bermuda--(BUSINESS WIRE)--PartnerRe Ltd. (NYSE:PRE) today announced that during the January 1, 2016 treaty renewal season it expects to write and bind approximately $2.5 billion of Non-Life treaty premium. On a constant foreign exchange basis, this represents a decrease of 5% from the renewable premium base.
The Company renews approximately 65% percent of its total annual Non-Life treaty business on January 1. The remainder is comprised of treaty business that renews at other times during the year. In addition to treaty business, the Company writes approximately $400 million of facultative business which renews throughout the year.
PartnerRe President Emmanuel Clarke said, “As we expected, the January 1 renewal was characterized by further erosion of prices and terms, driven by an oversupply of capital. Given these persistent challenging operating conditions, we approached the renewal expecting a reduction in volume and capital deployed. Our teams did an excellent job of maintaining discipline throughout negotiations, while further strengthening our high quality client and broker relationships. The strength of the PartnerRe franchise resulted in us renewing a high quality portfolio, in some cases at superior market terms, and finding additional pockets of attractive new business.”
The table below outlines PartnerRe’s January 1, 2016 Non-Life treaty renewals.
|PartnerRe January 1, 2016 Non-Life Treaty Renewal|
|(amounts are in U.S. $ millions and are on a constant foreign exchange basis)|
|In Process / Extensions||—||8||18||73||—||99|
|Renewal Changes/New Business||103||(59||)||(27||)||(33)||10||(6)|
|Total Estimated Premium||508||387||514||780||182||2,371|
|In Process / Potential New||—||8||13||73||—||94|
Note: The January 1, 2016 Non-Life treaty renewal premium shown in the above table is not representative of the Company’s gross premium written for the first quarter of 2016 given most of this renewal business is written on a proportional basis with risks attaching to these treaties throughout 2016. The most significant exception to this is the renewal business written in the Catastrophe sub-segment, which is predominantly written on a non-proportional basis.
PartnerRe is scheduled to release fourth quarter and full year 2015 results after the close of trading on Monday, February 8, 2016. PartnerRe Management will conduct a conference call and webcast on Tuesday, February 9, 2016 at 10:00 a.m. Eastern to discuss results and provide additional information on the January 1, 2016 renewals.
PartnerRe Ltd. is a leading global reinsurer, providing multi-line reinsurance to insurance companies. The Company, through its wholly owned subsidiaries, also offers capital markets products that include weather and credit protection to financial, industrial and service companies. Risks reinsured include property, casualty, motor, agriculture, aviation/space, catastrophe, credit/surety, engineering, energy, marine, specialty property, specialty casualty, multi-line and other lines in its Non-life operations, mortality, longevity and accident and health in its Life and Health operations, and alternative risk products. For the year ended December 31, 2014, total revenues were $6.5 billion. At September 30, 2015, total assets were $22.0 billion, total capital was $7.6 billion and total shareholders’ equity attributable to PartnerRe was $6.8 billion.
PartnerRe on the Internet: www.partnerre.com
Forward-looking statements contained in this press release are based on the Company’s assumptions and expectations concerning future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are subject to significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. PartnerRe’s forward-looking statements could be affected by numerous foreseeable and unforeseeable events and developments such as exposure to catastrophe, or other large property and casualty losses, credit, interest, currency and other risks associated with the Company’s investment portfolio, adequacy of reserves, levels and pricing of new and renewal business achieved, changes in accounting policies, risks associated with implementing business strategies, and other factors identified in the Company’s filings with the Securities and Exchange Commission. In light of the significant uncertainties inherent in the forward-looking information contained herein, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. The Company disclaims any obligation to publicly update or revise any forward-looking information or statements.