Disasters take toll on PartnerRe’s profits

On Monday PartnerRe Ltd., the international reinsurer, announced that its second quarter earnings fell 35 percent as a result of the devastating natural disasters that struck around the world.

PartnerRe’s first quarter earnings also fell in large part due to the earthquakes in Japan and New Zealand as well as the particularly destructive tornado season in the United States.

Costas Miranthis, the company’s CEO, remained optimistic and said that PartnerRe’s other businesses “[continue] to perform well and its capital position is strong, despite the heavy costs from this year’s natural disasters.

In June, PartnerRe was downgraded slightly by Fitch Ratings due to its catastrophic losses that hurt shareholder equity more than most other reinsurers. Fitch Ratings added that while PartnerRe has had a strong record of profits over an extended period of time, the company’s earnings have fluctuated more than a higher rating merits. The ratings company also does not forecast a net profit for PartnerRe this year.

In the second quarter, PartnerRe generated $124.2 million in profits, compared to $190.9 million for the same period last year.

The company’s revenues increased slightly to $1.35 billion, up 1.5 percent, but net premiums fell 5.1 percent to $1.06 billion.