PartnerRe Ltd., once again in line to be acquired by France’s Covéa, finished its 2021 third quarter with large catastrophic losses, double digit premium hikes and a big drop in net income.

The Bermuda-based reinsurer reported $70 million in net income for the 2021 third quarter, versus $206 million in net income over the same period in 2020. It’s a little better looking at the first nine months of 2021, which produced $317 million in net income versus just $2 million in the same, year-ago period.

Large catastrophe losses reached $297 million for Q3, and $417 million for the first nine months of 2021. Winter Storm Uri, Hurricane Ida ad European Floods and losses on aggregate covers related to these events were the primary culprits.

Net premiums written grew 12 percent for the quarter and 16 percent from Jan. 1 through Sept. 30, 2021. The numbers came from growth in the P/C segment from lines of business that experienced rate increases. Another factor: growth in the long-term protection business for the company’s Life and Health Segment.

PartnerRe’s non-life combined ratio reached 99.8 during Q3, with underwriting profit of $4 million.

For the first nine months of 2021 the reinsurer produced non-life underwriting profit of $194 million and a 95 combined ratio. A year ago, PartnerRe reported $20 million in non-life underwriting losses and a 101.6 combined ratio for the quarter, and a $327 million underwriting loss with a 109 combined ratio for the first nine months of 2020.

Net investment income during the 2021 third quarter reached $102 million, up 1.5 percent from the same period a year ago.

EXOR announced in October it would sell PartnerRe to Covéa for $9 billion, an agreement that revised an M&A deal that collapsed when the pandemic started in 2020.

Source: PartnerRe