Bermuda reinsurer PartnerRe Ltd has reported a $2.3 billion net profit for fiscal 2023, a return on equity of 32 per cent.

Operating income was nearly $1.5 billion as net premiums earned grew by 9 per cent reflecting 4 per cent growth in Non-life and 26 per cent growth in Life and Health.

PartnerRe president and chief executive officer Jacques Bonneau commented: "2023 has proven to be one of the strongest years in our recent history.

“Favourable market conditions, combined with a continued focus on disciplined execution, resulted in operating income of $1,447 million for an operating return on equity of 20 per cent.

“In P&C we have experienced a notable decrease in the impact to our earnings from catastrophic activity this year, while we continued to grow the premium base of our Specialty and Life and Health businesses.

“Our investment portfolio also performed well, demonstrated by 62 per cent growth in net investment income compared to 2022 as we continue to reinvest available cash at higher rates.

“Looking towards the future, PartnerRe remains committed to its core values and strategic priorities to bring value to our clients, capital partners and shareholders. We will continue to build upon the strong foundation we have established and focus on continuing to improve upon our relentless pursuit of execution.

“With my retirement announced to take effect at the end of March 2024, it has been a privilege for me to work alongside the talented individuals here at PartnerRe. I am confident we have the right leadership to continue leading the company forward in all facets of our business."

The company said that the non-life underwriting result was $1,071 million, with a combined ratio of 81.6 per cent. Life and health allocated underwriting result, including allocated net investment income, was $159 million.

Net investment return of $1,148 million included unrealised gains on fixed maturities and short-term investments of $391 million. Net investment income increased by $247 million to $646 million.

The company said: “On December 27, 2023, the Government of Bermuda enacted the Corporate Income Tax Act 2023, which will apply a 15 per cent corporate income tax to certain Bermuda businesses in fiscal years beginning on or after January 1, 2025.

“The company recognised a net deferred tax asset of $432 million related to the enactment of the CIT Act, including $487 million related to the Economic Transition Adjustment, which is intended to provide a fair and equitable transition into the tax regime, partially offset by a $55 million net deferred tax liability in relation to the future tax impact of temporary differences between book and tax value.

Cash flows from operating activities were $2,236 million, reflecting growth of 52 per cent.