Net income available to common shareholders of $314 million for the second quarter and $248 million for the half year
Operating income of $151 million for the second quarter and $192 million for the half year, which provided an operating income return on equity of 8.8% and 5.6%, respectively
Net premiums written were up 29% at $1,794 million for the quarter, with growth in lines of business that experienced strong rate increases, compared to the prior year premiums which were impacted by the COVID-19 economic downturn
Non-life underwriting result of $150 million or 32.7 points of improvement on the combined ratio of 88.6% year-over-year, and Life and Health underwriting profit, including allocated net investment income, of $23 million for the second quarter
In Q2 2021, the Company fully redeemed the Series G, H and I Preferred Shares at a redemption value of $637 million and finalized the refinancing of our balance sheet with a run-rate saving of $18 million per annum
PEMBROKE, Bermuda, July 26, 2021--(BUSINESS WIRE)--PartnerRe Ltd. ("the Company") today reported net income available to common shareholder of $314 million for the second quarter of 2021, compared to income of $229 million for the same period of 2020. Net income available to common shareholder was $248 million for the half year 2021, compared to a loss of $204 million for the same period of 2020.
Operating income was $151 million for the second quarter of 2021, compared to an operating loss of $256 million for the same period of 2020. Operating income for the half year 2021 was $192 million compared to an operating loss of $226 million for the same period of 2020. Operating income for the second quarter and half year 2021 improved over the same periods of 2020 as a result of improvements in current accident year attritional loss ratios and lower levels of adverse prior year development, and also the effects that COVID-19 reserves had on the second quarter of 2020.
Operating income (loss) is a non-GAAP financial measure defined by the Company as net income or loss available to common shareholder and excludes after-tax net realized and unrealized investment gains and losses, foreign exchange gains and losses, interest in results of equity method investments, and loss on redemption of preferred shares. The Company calculates annualized operating ROE using Operating income (loss) for the period divided by the average common shareholder's equity outstanding for the period. See "Non-GAAP Financial Measures - Regulation G" for a reconciliation of non-GAAP measures.
PartnerRe President and Chief Executive Officer Jacques Bonneau commented, "We delivered strong results in the second quarter with an annualized operating ROE of 8.8%, and I am pleased to see the positive impacts of our portfolio actions begin to show through our financial result. Our Non-life combined ratio of 88.6% includes improvements in the current accident year loss ratio from business mix changes and overall favorable pricing conditions across most lines of business, as well as improvements in prior years' reserve development as older underwriting years run off. Our Life and Health segment also significantly improved its underwriting profit compared to the prior year. Third party capital currently stands at $1.1b of assets under management and provided us the ability to increase underwriting capacity and line sizes. These underwriting results, combined with good investment performance, helped produce solid profitability for the second quarter of 2021." Please click here to access the PartnerRe News page for the full release.
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Media Contact: Celia Powell
Investor Contact: Ryan Lipschutz