Paris Re

Following an underwriting loss of $11.0mn in 2008 (compared with an underwriting profit of $110.1mn the previous year), the combination of unfavourable exchange rate movements and the deterioration in ‘intangible assets’, which collectively represented a direct charge of around $225.0mn on Paris Re’s consolidated income statement, had quite a significant impact on the company’s net loss result of $34.2mn

Two thousand and eight was by far the toughest year in the short history of Paris Re, the company which, with a few exceptions, had acquired all of the business of Axa Re, the reinsurance division of the Axa Group, two years earlier. With the benefit of hindsight, it is clear that the company could not have chosen a better time to launch itself: 2006 was near the top end of the reinsurance pricing cycle in the wake of the record natural catastrophe losses caused by Hurricanes Katrina, Rita and Wilma the previous year. Significantly, 2006 was also free of major catastrophes.