PartnerRe takes P&C business interruption hit from Covid-19

Bermuda headquartered reinsurance firm PartnerRe has reported a loss for the second-quarter of 2020 in its non-life underwriting business, as the majority of a $320 million hit from the Covid-19 pandemic fell to that side, some of which was in P&C business interruption.

Overall, PartnerRe reported $338 million of Covid-19 pandemic related impacts across its business, with $305 million falling to the non-life side and only $15 million to its life and health underwriting business, plus another

These losses from the pandemic are PartnerRe’s estimates on claims incurred as of June 30th 2020, largely being classified as incurred but not reported (IBNR) reserves and reported net of retrocession and reinstatement premiums.

$159 million of the losses fell to PartnerRe’s property and casualty reinsurance side, with $164 million falling to its specialty underwriting unit.

Within the property segment, PartnerRe said that it has suffered losses attributable to business interruption, while additional claims came from event cancellation related coverages, credit exposures in financial risks lines, and its life and health business.

It’s not clear how much of the impact was under business interruption claims that impacted PartnerRe’s property insurance or reinsurance portfolio, but this is where some leakage of Covid-19 losses to any third-party capital structure investors could have been possible.

In addition, it’s not clear how much in the way of retrocessional recoveries PartnerRe could have made for these claims, which again could have fallen in part to third-party capital investors in PartnerRe managed structures, or any ILS funds that provide the reinsurer with retro capacity.

Overall, PartnerRe reported a net loss of $204 million for the first-half of the year. Our sister site has more on the firms results in an article published earlier today.

Also read: PartnerRe appoints Jacques Bonneau to CEO role, as Clarke departs.