Results boosted by investment income

While most of its peers benefited handsomely from the volatility in the financial markets, PartnerRe’s feeble investment performance was the main reason for its relatively mediocre results

There were few surprises in reinsurers’ second quarter results with annualised pre-tax returns on equity of 20% or more almost the norm, fuelled by exceptional growth in investment income due to higher bond yields. Even though underwriting results were very good in the absence of major catastrophe losses, investment income contributed on average nearly 60% of US and Bermudian reinsurers’ pre-tax profits in the first half of the year.