PARTNERRE LTD - FORM 8-K - EX-99.2 - FINANCIAL SUPPLEMENT

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8-K - FORM 8-K - PARTNERRE LTD	d8k.htm
EX-99.1 - PRESS RELEASE OF PARTNERRE LTD., DATED MAY 2, 2011 - PARTNERRE LTD	dex991.htm

Exhibit 99.2

LOGO

PartnerRe Ltd.

Financial Supplement

Financial Information

as of March 31, 2011

(unaudited)

The following financial supplement is provided to assist in your understanding of

PartnerRe Ltd.

This report is for information purposes only. It should be read in conjunction with

documents filed with the SEC by PartnerRe Ltd., including the Company’s Annual

Report on Form 10-K and Quarterly Reports on Form 10-Q.

PartnerRe Ltd.

Financial Supplement - March 31, 2011

Table of Contents


	Page
Regulation G and Basis of Presentation
Consolidated Financial Statements
Consolidated Income Statements		1
Condensed Consolidated Balance Sheets		2
Condensed Consolidated Statements of Cash Flows		3
Consolidated Statements of Comprehensive (Loss) Income		4
Segment Information
For the three months ended March 31, 2011 and 2010		5-6
Non-life segment		7
North America sub-segment		8
Global (Non-U.S.) P&C sub-segment		9
Global (Non-U.S.) Specialty sub-segment		10
Catastrophe sub-segment		11
Life segment		12
Corporate and Other		13
Distribution of Premiums
Distribution of Premiums by line of business, geography and production source		14
Distribution of Premiums by reinsurance type		15
Investments
Investment Portfolio		16
Distribution of Corporate Bonds		17
Distribution of Equities		18
Distribution of Mortgage/Asset-Backed Securities		19
Other Invested Assets including Private Markets and Derivative Exposures		20
Funds Held - Directly Managed Portfolio		21
Distribution of Corporate Bonds - Funds Held - Directly Managed Portfolio		22
Composition of Net Investment Income and Net Realized and Unrealized Investment (Losses) Gains		23
Composition of Net Investment Income and Net Realized and Unrealized Investment (Losses) Gains on Funds Held - Directly Managed Portfolio		24
Loss Reserves
Analysis of Unpaid Losses and Loss Expenses		25
Analysis of Policy Benefits for Life and Annuity Contracts		26
Reserve Development		27
Reconciliation of GAAP and non-GAAP measures		28-30
Diluted Book Value per Common Share - Treasury Stock Method		31
Diluted Book Value per Common Share - Rollforward		32-33
Paris Re Acquisition Related Expenses		34

PartnerRe Ltd.

Regulation G

In addition to the GAAP financial measures set forth in this Financial Supplement, the Company has also included certain non-GAAP financial measures within the meaning of Regulation G. Management believes that these non-GAAP financial measures are important to investors, analysts, rating agencies and others who use the Company’s financial information and will help provide a consistent basis for comparison between quarters and for comparison with other companies within the industry. However, investors should consider these non-GAAP measures in addition to, and not as a substitute for, measures of financial performance prepared in accordance with GAAP.

The reconciliation of non-GAAP financial measures to the most comparable GAAP financial measures in accordance with Regulation G is included within the relevant tables.

Operating Earnings (Loss) available to Common Shareholders (Operating Earnings (Loss)), Diluted Operating Earnings (Loss) per Common Share and Annualized Operating Return on Beginning Diluted Book Value per Common and Common Share Equivalents Outstanding (Annualized Operating ROE): The Company uses Operating Earnings (Loss), Diluted Operating Earnings (Loss) per Common Share and Annualized Operating ROE to measure performance, as these measures focus on the underlying fundamentals of the Company’s operations. Operating Earnings (Loss) exclude the impact of net realized and unrealized gains and losses on investments, net of tax, net realized gain on purchase of capital efficient notes, net of tax, net foreign exchange gains and losses, net of tax, and the interest in earnings (losses) of equity investments, net of tax, where the Company does not control the investee companies’ activities, and are calculated after preferred dividends. The Company calculates Diluted Operating Earnings (Loss) per Common Share using Operating Earnings (Loss) for the period divided by the weighted average number of common and common share equivalents outstanding. The Company calculates Annualized Operating ROE using annualized Diluted Operating Earnings (Loss) per Common Share for the period divided by the Diluted Book Value per common and common share equivalents outstanding as of the beginning of the year (adjusted for the period ended December 31, 2009 to include the equity issued related to the acquisition of Paris Re). Operating Earnings (Loss) and Diluted Operating Earnings (Loss) per Common Share should not be viewed as a substitute for Net Income (Loss) or Diluted Net Income (Loss) per Common Share prepared in accordance with GAAP. Annualized Operating ROE supplements GAAP information.

Book Value excluding Net Unrealized Gains and Losses on Fixed Income Securities and Funds Held - Directly Managed, Net of Tax (Book Value excluding NURGL) and Diluted Book Value per Common and Common Share Equivalents Outstanding (Diluted Book Value per Common Share) excluding Net Unrealized Gains and Losses on Fixed Income Securities and Funds Held - Directly Managed, Net of Tax (Diluted Book Value excluding NURGL): The Company calculates Book Value excluding NURGL using common shareholders’ equity less net unrealized gains and losses on fixed income securities and funds held - directly managed, net of tax. Book Value excluding NURGL focuses on the underlying fundamentals of the Company’s financial position without the impact of interest rates and credit spreads on the unrealized gains and losses on fixed income securities and funds held - directly managed, net of tax. The Company calculates Diluted Book Value excluding NURGL using Book Value excluding NURGL divided by the weighted average number of common and common share equivalents outstanding.

Total Capital: The Company calculates Total Capital as the sum of total shareholders’ equity, long-term debt, senior notes and capital efficient notes. The Company uses Total Capital as a measure to manage the capital structure of the Company.

Basis of Presentation

Effective January 1, 2011, the Company redefined its Operating Earnings (Loss), Diluted Operating Earnings (Loss) per Common Share and Annualized Operating ROE calculations. Following the redefinition, Operating Earnings (Loss) exclude the impact of net foreign exchange gains and losses, net of tax, in addition to net realized and unrealized gains and losses on investments, net of tax, net realized gain on purchase of capital efficient notes, net of tax and the interest in earnings (losses) of equity investments and are calculated after preferred dividends. In addition, following the redefinition, Annualized Operating ROE is calculated on a diluted per share basis. All periods presented have been recast to reflect the Company’s redefined non-GAAP measures. See page 29 for a reconciliation of the previously published non-GAAP measures to the redefined non-GAAP measures.

The Company’s Non-life sub-segment information has been recast for all periods presented to reflect the redefined financial reporting segments, as announced by the Company on January 11, 2011. The new presentation continues to include three segments: Non-life, Life, and Corporate and Other. The Non-life segment now has four sub-segments: North America, Global (Non-U.S.) P&C, Global (Non-U.S.) Specialty, and Catastrophe. The Life segment remains unchanged. Paris Re is no longer presented as a separate Non-life sub-segment and its historical results have been recast into the Company’s other Non-life sub-segments. In addition, management responsibilities for certain lines of business and certain other treaties have been redefined, and accordingly, the historical Non-life sub-segment results have been recast to reflect these changes.

The Company’s financial position and its results include Paris Re from the date of acquisition of October 2, 2009 and for all periods thereafter.

PartnerRe Ltd.

Consolidated Income Statements

(Expressed in thousands of U.S. dollars or shares, except per share data)

(Unaudited)


	For the three months ended															For the year ended
	March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010			December 31, 2010		December 31, 2009


Revenues
Gross premiums written	$	1,557,561		$	827,301		$	1,008,464		$	1,140,175		$	1,909,326		$	4,885,266	$	4,000,888


Net premiums written	$	1,470,419		$	820,605		$	987,612		$	1,112,735		$	1,784,165		$	4,705,116	$	3,948,704
(Increase) decrease in unearned premiums		(405,830	)		384,041			325,802			(8,104	)		(630,386	)		71,355		171,121

Net premiums earned		1,064,589			1,204,646			1,313,414			1,104,631			1,153,779			4,776,471		4,119,825
Net investment income		151,633			160,804			164,402			174,454			173,122			672,782		596,071
Net realized and unrealized investment (losses) gains		(112,199	)		(83,201	)		293,164			46,046			145,474			401,482		591,707
Net realized gain on purchase of capital efficient notes		—			—			—			—			—			—		88,427
Other income		1,813			5,079			3,363			753			1,274			10,470		22,312

Total revenues		1,105,836			1,287,328			1,774,343			1,325,884			1,473,649			5,861,205		5,418,342


Expenses
Losses and loss expenses and life policy benefits		1,607,217			817,772			748,879			704,631			1,012,337			3,283,618		2,295,296
Acquisition costs		207,849			246,617			261,668			244,144			220,107			972,537		885,214
Other operating expenses		104,297			133,245			118,221			160,151			128,134			539,751		430,808
Interest expense		12,300			12,181			12,297			12,803			7,132			44,413		28,301
Amortization of intangible assets		8,827			8,821			10,003			7,833			4,803			31,461		(6,133	)
Net foreign exchange (gains) losses		(695	)		8,260			27,074			(11,021	)		(3,627	)		20,686		1,464

Total expenses		1,939,795			1,226,896			1,178,142			1,118,541			1,368,886			4,892,466		3,634,950


(Loss) income before taxes and interest in earnings of equity investments		(833,959	)		60,432			596,201			207,343			104,763			968,739		1,783,392
Income tax (benefit) expense		(26,258	)		10,892			72,576			17,762			27,554			128,784		262,090
Interest in earnings of equity investments		745			7,495			1,312			1,346			2,445			12,597		15,552

Net (loss) income	$	(806,956	)	$	57,035		$	524,937		$	190,927		$	79,654		$	852,552	$	1,536,854

Preferred dividends	$	8,631		$	8,631		$	8,631		$	8,631		$	8,631		$	34,525	$	34,525

Operating (loss) earnings available to common shareholders	$	(735,572	)	$	98,782		$	301,608		$	141,825		$	(50,408	)	$	491,807	$	930,704

Comprehensive (loss) income, net of tax	$	(769,410	)	$	49,184		$	631,249		$	84,271		$	6,978		$	771,681	$	1,598,973

Per Share Data:

(Loss) earnings per common share:
Basic operating (loss) earnings	$	(10.82	)	$	1.35		$	4.01		$	1.83		$	(0.62	)	$	6.40	$	14.82
Net realized and unrealized investment (losses) gains, net of tax		(1.30	)		(0.98	)		3.09			0.38			1.35			3.92		7.92
Net realized gain on purchase of capital efficient notes, net of tax		—			—			—			—			—			—		0.91
Net foreign exchange gains (losses), net of tax		0.11			0.19			(0.26	)		0.13			0.11			0.17		0.02
Interest in earnings of equity investments, net of tax		0.02			0.10			0.02			0.02			0.03			0.16		0.26

Basic net (loss) income	$	(11.99	)	$	0.66		$	6.86		$	2.36		$	0.87		$	10.65	$	23.93


Weighted average number of common shares outstanding		67,997.4			73,168.6			75,238.3			77,365.4			81,696.9			76,839.5		62,786.2

Diluted operating (loss) earnings⁽¹⁾⁽²⁾	$	(10.82	)	$	1.33		$	3.95		$	1.80		$	(0.60	)	$	6.29	$	14.57
Net realized and unrealized investment (losses) gains, net of tax		(1.30	)		(0.96	)		3.05			0.38			1.33			3.86		7.78
Net realized gain on purchase of capital efficient notes, net of tax		—			—			—			—			—			—		0.89
Net foreign exchange gains (losses), net of tax		0.11			0.19			(0.26	)		0.12			0.10			0.16		0.02
Interest in earnings of equity investments, net of tax		0.02			0.09			0.02			0.01			0.02			0.15		0.25

Diluted net (loss) income	$	(11.99	)	$	0.65		$	6.76		$	2.31		$	0.85		$	10.46	$	23.51


Weighted average number of common and common share equivalents outstanding		67,997.4			74,494.7			76,428.5			78,796.4			83,328.8			78,234.3		63,890.6

(1)

See page 34 for further analysis of Paris Re acquisition related expenses.

(2)

Diluted operating loss per share for the three months ended March 31, 2010 was calculated using the weighted average number of common and common share equivalents outstanding as the denominator. While this results in diluted operating loss per share being anti-dilutive, it is the Company’s policy to use the net income or loss per share denominator for calculating operating earnings or loss per share.

PartnerRe Ltd.

Condensed Consolidated Balance Sheets

(Expressed in thousands of U.S. dollars or shares, except per share data)

(Unaudited)


	March 31, 2011				December 31, 2010				September 30, 2010				June 30, 2010				March 31, 2010				December 31, 2009

Assets
Total investments	$	14,684,553			$	14,297,867			$	15,182,110			$	14,796,197			$	15,228,997			$	15,301,510
Funds held - directly managed		1,514,453				1,772,118				1,919,325				1,875,305				1,981,665				2,124,826
Cash and cash equivalents		2,009,737				2,111,084				1,437,722				1,085,325				1,319,275				738,309
Accrued investment income		187,718				201,928				201,400				184,715				204,591				218,739
Reinsurance balances receivable		2,515,845				2,076,884				2,494,034				2,627,422				2,908,652				2,249,181
Funds held by reinsured companies		848,182				937,032				918,832				859,050				900,257				938,039
Deferred acquisition costs		671,417				595,557				664,058				672,694				709,745				614,857
Goodwill		455,533				455,533				455,533				455,533				455,533				455,533
Intangible assets		166,187				178,715				191,252				206,044				224,264				247,269
Other assets		849,150				737,653				807,557				873,849				884,197				844,281

Total assets	$	23,902,775			$	23,364,371			$	24,271,823			$	23,636,134			$	24,817,176			$	23,732,544


Liabilities
Unpaid losses and loss expenses	$	11,887,316			$	10,666,604			$	10,705,562			$	10,342,589			$	10,930,486			$	10,811,483
Policy benefits for life and annuity contracts		1,670,768				1,750,410				1,735,930				1,566,899				1,613,662				1,615,193
Unearned premiums		2,102,053				1,599,139				2,019,892				2,295,576				2,371,256				1,706,816
Other reinsurance balances payable		505,198				491,194				528,014				478,862				488,664				426,091
Debt obligations		820,989				820,989				820,989				1,020,989				1,020,989				520,989
Other liabilities		741,618				829,116				879,143				859,977				1,003,608				1,006,245

Total liabilities		17,727,942				16,157,452				16,689,530				16,564,892				17,428,665				16,086,817

Total shareholders’ equity		6,174,833				7,206,919				7,582,293				7,071,242				7,388,511				7,645,727


Total liabilities and shareholders’ equity	$	23,902,775			$	23,364,371			$	24,271,823			$	23,636,134			$	24,817,176			$	23,732,544


Shareholders’ Equity Per Common Share (excluding cumulative preferred shares)	$	83.85			$	95.55			$	94.69			$	86.94			$	85.84			$	86.29

Diluted Book Value Per Common and Common Share Equivalents Outstanding (assuming exercise of all share-based awards)	$	82.50			$	93.77			$	93.21			$	85.32			$	84.12			$	84.51


Number of Common and Common Share Equivalents Outstanding		68,542.4				71,312.3				75,771.5				76,780.8				81,647.4				84,319.7


Capital Structure:
Senior notes ⁽¹⁾	$	750,000	11	%	$	750,000	9	%	$	750,000	9	%	$	750,000	9	%	$	750,000	9	%	$	250,000	3	%
Capital efficient notes ⁽²⁾		63,384	1			63,384	1			63,384	1			63,384	1			63,384	1			63,384	1
6.75% Series C cumulative preferred shares, aggregate liquidation		290,000	4			290,000	4			290,000	3			290,000	4			290,000	3			290,000	4
6.5% Series D cumulative preferred shares, aggregate liquidation		230,000	3			230,000	3			230,000	3			230,000	3			230,000	3			230,000	3
Common shareholders’ equity		5,654,833	81			6,686,919	83			7,062,293	84			6,551,242	83			6,868,511	84			7,125,727	89

Total Capital	$	6,988,217	100	%	$	8,020,303	100	%	$	8,395,677	100	%	$	7,884,626	100	%	$	8,201,895	100	%	$	7,959,111	100	%

(1)

PartnerRe Finance A LLC and PartnerRe Finance B LLC, the issuers of the senior notes, do not meet U.S. GAAP consolidation requirements. Accordingly, the Company shows the related intercompany debt of $250.0 million and $500.0 million, respectively, on its Condensed Consolidated Balance Sheets.

(2)

PartnerRe Finance II, the issuer of the capital efficient notes, does not meet U.S. GAAP consolidation requirements. Accordingly, the Company shows the related intercompany debt of $71.0 million on its Condensed Consolidated Balance Sheets.

PartnerRe Ltd.

Condensed Consolidated Statements of Cash Flows

(Expressed in millions of U.S. dollars)

(Unaudited)


				For the three months ended												For the year ended
	March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010			December 31, 2010			December 31, 2009


Net cash provided by operating activities:

Underwriting operations ⁽³⁾	$	340		$	156		$	230		$	26		$	238		$	650		$	550

Investment income		189			176			179			208			199			762			603

Taxes and foreign exchange		(43	)		(17	)		(58	)		(86	)		(23	)		(185	)		(54	)


Net cash provided by operating activities	$	486		$	315		$	351		$	148		$	414		$	1,227		$	1,099


Net cash provided by operating activities	$	486		$	315		$	351		$	148		$	414		$	1,227		$	1,099

Net cash (used in) provided by investing activities ⁽¹⁾		(320	)		775			294			63			(31	)		1,102			(447	)

Net cash (used in) provided by financing activities ⁽²⁾		(286	)		(412	)		(326	)		(409	)		225			(922	)		(765	)

Effect of foreign exchange rate changes on cash		19			(5	)		34			(36	)		(27	)		(34	)		13


(Decrease) increase in cash and cash equivalents		(101	)		673			353			(234	)		581			1,373			(100	)

Cash and cash equivalents - beginning of period		2,111			1,438			1,085			1,319			738			738			838


Cash and cash equivalents - end of period	$	2,010		$	2,111		$	1,438		$	1,085		$	1,319		$	2,111		$	738

(1)

For the year ended December 31, 2009, net cash (used in) provided by investing activities included $492 million of cash acquired related to the acquisition of Paris Re.

(2)

For the year ended December 31, 2009, net cash (used in) provided by financing activities included $330 million related to the Paris Re share capital repayment.

(3)

For the three months ended March 31, 2011, net cash provided by underwriting operations includes approximately $265 million of cash related to the release of assets from the Funds Held - Directly Managed Portfolio.

PartnerRe Ltd.

Consolidated Statements of Comprehensive (Loss) Income

(Expressed in thousands of U.S. dollars)

(Unaudited)


	For the three months ended
	March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010


Net (loss) income	$	(806,956	)	$	57,035		$	524,937		$	190,927		$	79,654

Change in currency translation adjustment		37,781			(236	)		107,572			(105,335	)		(68,743	)
Change in net unrealized gains or losses on investments, net of tax		(252	)		(266	)		(256	)		(257	)		(4,129	)
Change in unfunded pension obligation, net of tax		17			(7,349	)		(1,004	)		(1,064	)		196


Comprehensive (loss) income	$	(769,410	)	$	49,184		$	631,249		$	84,271		$	6,978


	For the year ended
	December 31, 2010			December 31, 2009


Net income	$	852,552		$	1,536,854

Change in currency translation adjustment		(66,742	)		47,955
Change in net unrealized gains or losses on investments, net of tax		(4,908	)		8,079
Change in unfunded pension obligation, net of tax		(9,221	)		6,085


Comprehensive income	$	771,681		$	1,598,973

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)


	For the three months ended March 31, 2011
	North America			Global (Non-U.S.) P&C			Global (Non-U.S.) Specialty			Catastrophe			Total Non-life Segment			Life Segment			Corporate and Other			Total

Gross premiums written	$	338		$	318		$	375		$	317		$	1,348		$	208		$	2		$	1,558

Net premiums written	$	338		$	317		$	315		$	292		$	1,262		$	206		$	2		$	1,470
(Increase) decrease in unearned premiums		(79	)		(136	)		2			(168	)		(381	)		(22	)		(2	)		(405	)

Net premiums earned	$	259		$	181		$	317		$	124		$	881		$	184		$	—		$	1,065
Losses and loss expenses and life policy benefits		(174	)		(150	)		(221	)		(918	)		(1,463	)		(145	)		—			(1,608	)
Acquisition costs		(66	)		(40	)		(80	)		8			(178	)		(30	)		—			(208	)

Technical result	$	19		$	(9	)	$	16		$	(786	)	$	(760	)	$	9		$	—		$	(751	)

Other income														1			—			1			2
Other operating expenses														(66	)		(12	)		(26	)		(104	)

Underwriting result													$	(825	)	$	(3	)		n/a		$	(853	)

Net investment income																	15			137			152

Allocated underwriting result ⁽¹⁾																$	12			n/a			n/a

Net realized and unrealized investment losses																				(112	)		(112	)
Interest expense																				(12	)		(12	)
Amortization of intangible assets																				(9	)		(9	)
Net foreign exchange gains																				—			—
Income tax benefit																				26			26
Interest in earnings of equity investments																				1			1

Net loss																				n/a		$	(807	)


Loss ratio ⁽²⁾		67.0	%		82.8	%		69.7	%		743.0	%		166.0	%
Acquisition ratio ⁽³⁾		25.6			22.1			25.3			(6.7	)		20.3

Technical ratio ⁽⁴⁾		92.6	%		104.9	%		95.0	%		736.3	%		186.3	%
Other operating expense ratio ⁽⁵⁾														7.4

Combined ratio ⁽⁶⁾														193.7	%

(1)

Allocated underwriting result is defined as net premiums earned, other income or loss and allocated net investment income less life policy benefits, acquisition costs and other operating expenses.

(2)

Loss ratio is obtained by dividing losses and loss expenses by net premiums earned.

(3)

Acquisition ratio is obtained by dividing acquisition costs by net premiums earned.

(4)

Technical ratio is defined as the sum of the loss ratio and the acquisition ratio.

(5)

Other operating expense ratio is obtained by dividing other operating expenses by net premiums earned.

(6)

Combined ratio is defined as the sum of the technical ratio and the other operating expense ratio.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)


	For the three months ended March 31, 2010
	North America			Global (Non-U.S.) P&C			Global (Non-U.S.) Specialty			Catastrophe			Total Non-life Segment			Life Segment			Corporate and Other			Total

Gross premiums written	$	358		$	444		$	509		$	409		$	1,720		$	187		$	2		$	1,909

Net premiums written	$	357		$	436		$	456		$	358		$	1,607		$	183		$	(6	)	$	1,784
(Increase) decrease in unearned premiums		(89	)		(206	)		(119	)		(204	)		(618	)		(18	)		6			(630	)

Net premiums earned	$	268		$	230		$	337		$	154		$	989		$	165		$	—		$	1,154
Losses and loss expenses and life policy benefits		(179	)		(246	)		(303	)		(153	)		(881	)		(132	)		—			(1,013	)
Acquisition costs		(69	)		(52	)		(64	)		(12	)		(197	)		(23	)		—			(220	)

Technical result	$	20		$	(68	)	$	(30	)	$	(11	)	$	(89	)	$	10		$	—		$	(79	)

Other income														1			—			—			1
Other operating expenses														(78	)		(14	)		(36	)		(128	)

Underwriting result													$	(166	)	$	(4	)		n/a		$	(206	)

Net investment income																	16			157			173

Allocated underwriting result ⁽¹⁾																$	12			n/a			n/a

Net realized and unrealized investment gains																				146			146
Interest expense																				(7	)		(7	)
Amortization of intangible assets																				(5	)		(5	)
Net foreign exchange gains																				4			4
Income tax expense																				(27	)		(27	)
Interest in earnings of equity investments																				2			2

Net income																				n/a		$	80


Loss ratio ⁽²⁾		66.9	%		107.0	%		90.0	%		99.0	%		89.1	%
Acquisition ratio ⁽³⁾		25.7			22.8			18.9			7.9			19.9

Technical ratio ⁽⁴⁾		92.6	%		129.8	%		108.9	%		106.9	%		109.0	%
Other operating expense ratio ⁽⁵⁾														7.9

Combined ratio ⁽⁶⁾														116.9	%

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Non-life segment


	For the three months ended															For the year ended
	March 31, 2011 ^(A)			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010			December 31, 2010			December 31, 2009


Net premiums written	$	1,262		$	611		$	804		$	939		$	1,607		$	3,961		$	3,351

Net premiums earned	$	881		$	982		$	1,128		$	931		$	989		$	4,029		$	3,525

Losses and loss expenses		(1,463	)		(639	)		(601	)		(536	)		(881	)		(2,657	)		(1,858	)
Acquisition costs		(178	)		(213	)		(228	)		(219	)		(197	)		(856	)		(772	)

Technical result	$	(760	)	$	130		$	299		$	176		$	(89	)	$	516		$	895

Other income		1			2			2			1			1			5			13
Other operating expenses		(66	)		(78	)		(81	)		(82	)		(78	)		(317	)		(253	)

Underwriting result	$	(825	)	$	54		$	220		$	95		$	(166	)	$	204		$	655

Loss ratio ⁽²⁾		166.0	%		65.1	%		53.3	%		57.6	%		89.1	%		65.9	%		52.7	%
Acquisition ratio ⁽³⁾		20.3			21.6			20.2			23.4			19.9			21.3			21.9

Technical ratio ⁽⁴⁾		186.3	%		86.7	%		73.5	%		81.0	%		109.0	%		87.2	%		74.6	%
Other operating expense ratio ⁽⁵⁾		7.4			7.9			7.2			8.8			7.9			7.8			7.2

Combined ratio ⁽⁶⁾		193.7	%		94.6	%		80.7	%		89.8	%		116.9	%		95.0	%		81.8	%

(A)

Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended March 31, 2011, net premiums written and net premiums earned include foreign exchange impacts of ($25.5) million and ($8.9) million, respectively, compared to the three months ended March 31, 2010.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

North America sub-segment


	For the three months ended															For the year ended
	March 31, 2011 ^(A)			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010			December 31, 2010			December 31, 2009


Net premiums written	$	338		$	196		$	267		$	207		$	357		$	1,026		$	1,162

Net premiums earned	$	259		$	260		$	288		$	223		$	268		$	1,038		$	1,210

Losses and loss expenses		(174	)		(145	)		(137	)		(116	)		(179	)		(577	)		(728	)
Acquisition costs		(66	)		(71	)		(80	)		(69	)		(69	)		(288	)		(311	)

Technical result	$	19		$	44		$	71		$	38		$	20		$	173		$	171

Loss ratio ⁽²⁾		67.0	%		55.9	%		47.5	%		52.2	%		66.9	%		55.6	%		60.2	%
Acquisition ratio ⁽³⁾		25.6			27.2			27.8			30.7			25.7			27.8			25.7

Technical ratio ⁽⁴⁾		92.6	%		83.1	%		75.3	%		82.9	%		92.6	%		83.4	%		85.9	%

Distribution of Net Premiums Written by Major Lines of Business:
Casualty		42	%		47	%		42	%		41	%		40	%		42	%		37	%
Property		17			17			29			30			25			26			23
Agriculture		14			11			11			2			9			8			21
Motor		10			12			10			10			12			11			8
Multiline		11			5			2			3			9			5			4
Credit/Surety		5			8			5			6			5			6			5
Other		1			—			1			8			—			2			2

		100	%		100	%		100	%		100	%		100	%		100	%		100	%

(A)

Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended March 31, 2011, net premiums written and net premiums earned include foreign exchange impacts of $6.1 million and $2.9 million, respectively, compared to the three months ended March 31, 2010.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Global (Non-U.S.) P&C sub-segment


	For the three months ended															For the year ended
	March 31, 2011 ^(A)			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010			December 31, 2010			December 31, 2009


Net premiums written	$	317		$	118		$	158		$	186		$	436		$	898		$	679

Net premiums earned	$	181		$	228		$	225		$	231		$	230		$	914		$	729

Losses and loss expenses		(150	)		(141	)		(174	)		(141	)		(246	)		(702	)		(392	)
Acquisition costs		(40	)		(57	)		(56	)		(61	)		(52	)		(227	)		(174	)

Technical result	$	(9	)	$	30		$	(5	)	$	29		$	(68	)	$	(15	)	$	163

Loss ratio ⁽²⁾		82.8	%		61.9	%		77.1	%		61.1	%		107.0	%		76.8	%		53.7	%
Acquisition ratio ⁽³⁾		22.1			24.9			25.2			26.4			22.8			24.9			23.8

Technical ratio ⁽⁴⁾		104.9	%		86.8	%		102.3	%		87.5	%		129.8	%		101.7	%		77.5	%

Distribution of Net Premiums Written by Major Lines of Business:
Property		67	%		71	%		68	%		67	%		64	%		66	%		67	%
Motor		21			18			23			19			24			22			22
Casualty		12			11			9			14			12			12			11

Total		100	%		100	%		100	%		100	%		100	%		100	%		100	%

(A)

Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended March 31, 2011, net premiums written and net premiums earned include foreign exchange impacts of ($13.7) million and ($4.8) million, respectively, compared to the three months ended March 31, 2010.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Global (Non-U.S.) Specialty sub-segment


	For the three months ended															For the year ended
	March 31, 2011 ^(A)			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010			December 31, 2010			December 31, 2009


Net premiums written	$	315		$	287		$	292		$	355		$	456		$	1,391		$	1,113

Net premiums earned	$	317		$	329		$	364		$	376		$	337		$	1,405		$	1,116

Losses and loss expenses		(221	)		(191	)		(199	)		(292	)		(303	)		(985	)		(732	)
Acquisition costs		(80	)		(73	)		(74	)		(82	)		(64	)		(292	)		(254	)

Technical result	$	16		$	65		$	91		$	2		$	(30	)	$	128		$	130

Loss ratio ⁽²⁾		69.7	%		57.9	%		54.8	%		77.6	%		90.0	%		70.0	%		65.6	%
Acquisition ratio ⁽³⁾		25.3			22.2			20.2			21.9			18.9			20.8			22.7

Technical ratio ⁽⁴⁾		95.0	%		80.1	%		75.0	%		99.5	%		108.9	%		90.8	%		88.3	%

Distribution of Net Premiums Written by Major Lines of Business:
Aviation/Space		12	%		25	%		19	%		14	%		11	%		16	%		17	%
Credit/Surety		25			18			16			15			17			16			16
Energy		7			5			9			10			7			8			9
Engineering		14			15			17			14			10			14			19
Marine		18			21			18			21			20			20			16
Specialty casualty		19			(1	)		6			11			22			11			11
Specialty property		4			13			8			10			4			8			6
Other		1			4			7			5			9			7			6

Total		100	%		100	%		100	%		100	%		100	%		100	%		100	%

(A)

Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended March 31, 2011, net premiums written and net premiums earned include foreign exchange impacts of ($13.6) million and ($6.2) million, respectively, compared to the three months ended March 31, 2010.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Catastrophe sub-segment


	For the three months ended															For the year ended
	March 31			December 31,			September 30,			June 30,			March 31,			December 31,			December 31,
	2011 ^(A)			2010			2010			2010			2010			2010			2009


Net premiums written	$	292		$	10		$	87		$	191		$	358		$	646		$	397

Net premiums earned	$	124		$	165		$	251		$	101		$	154		$	672		$	470

Losses and loss expenses		(918	)		(162	)		(91	)		13			(153	)		(393	)		(6	)
Acquisition costs		8			(12	)		(18	)		(7	)		(12	)		(49	)		(33	)

Technical result	$	(786	)	$	(9	)	$	142		$	107		$	(11	)	$	230		$	431

Loss ratio ⁽²⁾		743.0	%		98.0	%		36.4	%		(12.8	)%		99.0	%		58.5	%		1.3	%
Acquisition ratio ⁽³⁾		(6.7	)		7.3			7.2			6.3			7.9			7.2			7.0

Technical ratio ⁽⁴⁾		736.3	%		105.3	%		43.6	%		(6.5	)%		106.9	%		65.7	%		8.3	%

(A)

Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended March 31, 2011, net premiums written and net premiums earned include foreign exchange impacts of ($4.3) million and ($0.7) million, respectively, compared to the three months ended March 31, 2010.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Life segment


	For the three months ended															For the year ended
	March 31,			December 31,			September 30,			June 30,			March 31,			December 31,			December 31,
	2011 ^(A)			2010			2010			2010			2010			2010			2009


Net premiums written	$	206		$	210		$	183		$	167		$	183		$	742		$	591

Net premiums earned	$	184		$	222		$	184		$	173		$	165		$	744		$	587

Life policy benefits		(145	)		(177	)		(147	)		(169	)		(132	)		(624	)		(440	)
Acquisition costs		(30	)		(34	)		(33	)		(25	)		(23	)		(116	)		(113	)

Technical result	$	9		$	11		$	4		$	(21	)	$	10		$	4		$	34

Other income		—			—			—			1			—			2			2
Other operating expenses		(12	)		(17	)		(11	)		(13	)		(14	)		(57	)		(47	)

Underwriting result	$	(3	)	$	(6	)	$	(7	)	$	(33	)	$	(4	)	$	(51	)	$	(11	)

Net investment income		15			18			17			20			16			71			62

Allocated underwriting result ⁽¹⁾	$	12		$	12		$	10		$	(13	)	$	12		$	20		$	51

Distribution of Net Premiums Written by Major Lines of Business:
Mortality		76	%		56	%		67	%		79	%		80	%		70	%		80	%
Longevity		21			42			30			18			17			27			16
Health		3			2			3			3			3			3			4

Total		100	%		100	%		100	%		100	%		100	%		100	%		100	%

(A)

Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended March 31, 2011, net premiums written and net premiums earned include foreign exchange impacts of ($5.5) million and ($4.7) million, respectively, compared to the three months ended March 31, 2010.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Corporate and Other


	For the three months ended															For the year ended
	March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010			December 31, 2010			December 31, 2010


Technical result	$	—		$	(1	)	$	—		$	1		$	—		$	—		$	10

Other income (loss)		1			3			1			(1	)		—			3			7
Corporate expenses - acquisition related		(2	)		(6	)		(6	)		(2	)		(3	)		(16	)		(36	)
Corporate expenses - voluntary termination plan		—			(6	)		1			(34	)		(1	)		(41	)		—
Corporate expenses ⁽¹⁾		(19	)		(22	)		(17	)		(26	)		(28	)		(94	)		(81	)
Other operating expenses		(5	)		(4	)		(4	)		(3	)		(4	)		(15	)		(14	)

Net investment income		137			143			147			154			157			602			534

Net realized and unrealized investment (losses) gains		(112	)		(83	)		293			46			146			402			591
Net realized gain on purchase of capital efficient notes		—			—			—			—			—			—			89
Interest expense		(12	)		(12	)		(12	)		(13	)		(7	)		(44	)		(28	)
Amortization of intangible assets		(9	)		(9	)		(10	)		(8	)		(5	)		(31	)		6
Net foreign exchange gains (losses)		—			(8	)		(27	)		11			4			(21	)		(1	)
Income tax benefit (expense)		26			(11	)		(72	)		(17	)		(27	)		(129	)		(262	)
Interest in earnings of equity investments		1			7			1			1			2			13			16

(1)

The Company’s corporate expenses for the three months ended June 30, 2010, March 31, 2010 and December 31, 2009 include $7 million, $6 million and $9 million, respectively, of corporate expenses related to Paris Re. The Company’s corporate expenses for the years ended December 31, 2010 and 2009 include $13 million and $9 million, respectively, of corporate expenses related to Paris Re.

PartnerRe Ltd.

Distribution of Premiums

(Unaudited)


	For the three months ended															For the year ended
	March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010			December 31, 2010			December 31, 2009


Distribution of Net Premiums Written by Line of Business:
Non-life
Property and casualty
Casualty		12	%		13	%		13	%		10	%		10	%		11	%		13	%
Property		18			14			19			17			21			18			18
Motor		7			5			6			5			8			7			6
Multiline and other		2			1			1			3			2			2			2
Specialty
Agriculture		4			4			5			2			4			4			8
Aviation/Space		3			9			5			4			3			5			5
Catastrophe		20			1			9			17			20			14			10
Credit/Surety		6			8			6			6			5			6			6
Energy		2			2			3			3			2			2			2
Engineering		3			5			5			4			3			4			5
Marine		4			7			5			7			5			6			5
Specialty casualty		4			—			2			4			6			3			3
Specialty property		1			5			2			3			1			2			2
Life		14			26			19			15			10			16			15

		100	%		100	%		100	%		100	%		100	%		100	%		100	%


Distribution of Gross Premiums Written by Geography:
Europe		43	%		47	%		38	%		36	%		48	%		43	%		41	%
North America		36			32			39			36			36			36			41
Latin America, Caribbean and Africa		10			11			13			12			8			11			10
Asia, Australia and New Zealand		11			10			10			16			8			10			8

		100	%		100	%		100	%		100	%		100	%		100	%		100	%


Distribution of Gross Premiums Written by Production Source:
Broker		72	%		64	%		73	%		76	%		74	%		73	%		72	%
Direct		28			36			27			24			26			27			28

		100	%		100	%		100	%		100	%		100	%		100	%		100	%

PartnerRe Ltd.

Distribution of Premiums

(Unaudited)


	For the three months ended															For the year ended
	March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010			December 31, 2010			December 31, 2009


Distribution of Gross Premiums Written by Reinsurance Type Non-life sub-segment:

North America
Non-Proportional		47	%		18	%		27	%		32	%		46	%		33	%		29	%
Proportional		53			82			73			68			54			67			71

Total		100	%		100	%		100	%		100	%		100	%		100	%		100	%


Global (Non-U.S.) P&C
Non-Proportional		34	%		4	%		15	%		17	%		35	%		23	%		21	%
Proportional		66			96			85			83			65			77			79

Total		100	%		100	%		100	%		100	%		100	%		100	%		100	%


Global (Non-U.S.) Specialty
Non-Proportional		33	%		5	%		15	%		27	%		41	%		22	%		18	%
Proportional		67			95			85			73			59			78			82

Total		100	%		100	%		100	%		100	%		100	%		100	%		100	%


Catastrophe
Non-Proportional		98	%		89	%		99	%		98	%		99	%		99	%		98	%
Proportional		2			11			1			2			1			1			2

Total		100	%		100	%		100	%		100	%		100	%		100	%		100	%


Non-life total
Non-Proportional		52	%		10	%		28	%		42	%		54	%		38	%		32	%
Proportional		48			90			72			58			46			62			68

Total		100	%		100	%		100	%		100	%		100	%		100	%		100	%

PartnerRe Ltd.

Investment Portfolio ^(A)

(Expressed in millions of U.S. dollars)

(Unaudited)


	March 31, 2011					December 31, 2010					September 30, 2010					June 30, 2010					March 31, 2010					December 31, 2009


Investments:
Fixed maturities
U.S. government	$	745		5	%	$	673		5	%	$	718		5	%	$	690		4	%	$	709		5	%	$	803		5	%
Government Sponsored Entities (GSEs)		216		2			233		2			352		2			399		3			416		3			453		3
U.S. municipalities		68		—			67		—			28		—			26		—			26		—			14		—
Non-U.S. sovereign government, supranational and government related		3,068		21			2,819		20			2,980		20			2,641		18			2,918		19			3,059		20
Corporates		6,199		42			6,144		43			6,617		44			6,787		46			6,851		45			6,631		43
Mortgage/asset-backed securities		2,963		20			2,889		20			3,075		20			3,014		20			3,170		21			3,183		21

Total fixed maturities		13,259		90			12,825		90			13,770		91			13,557		91			14,090		93			14,143		92
Short-term investments		81		1			49		—			89		—			107		1			72		—			137		1
Equities		1,053		7			1,072		8			1,027		7			886		6			879		6			796		5
Other invested assets		292		2			352		2			296		2			246		2			188		1			226		2

Total investments	$	14,685		100	%	$	14,298		100	%	$	15,182		100	%	$	14,796		100	%	$	15,229		100	%	$	15,302		100	%


Cash and cash equivalents		2,010					2,111					1,438					1,085					1,319					738
Total investments and cash	$	16,695				$	16,409				$	16,620				$	15,881				$	16,548				$	16,040

Maturity distribution:
One year or less	$	1,004		8	%	$	930		7	%	$	1,046		8	%	$	1,262		9	%	$	1,142		8	%	$	869		6	%
More than one year through five years		5,113		38			5,022		39			5,549		40			5,499		40			5,916		42			6,346		45
More than five years through ten years		3,613		27			3,418		27			3,624		26			3,346		25			3,391		24			3,343		23
More than ten years		647		5			615		5			565		4			543		4			543		4			539		4

Subtotal		10,377		78			9,985		78			10,784		78			10,650		78			10,992		78			11,097		78
Mortgage/asset-backed securities		2,963		22			2,889		22			3,075		22			3,014		22			3,170		22			3,183		22

Total	$	13,340		100	%	$	12,874		100	%	$	13,859		100	%	$	13,664		100	%	$	14,162		100	%	$	14,280		100	%


Credit quality by market value:
AAA		52	%				51	%				51	%				50	%				51	%				50	%
AA		8					9					9					9					10					10
A		21					22					23					24					23					24
BBB		12					11					11					11					11					12
Below Investment Grade/Unrated		7					7					6					6					5					4

		100	%				100	%				100	%				100	%				100	%				100	%

Expected average duration		2.9	Yrs				3.0	Yrs				3.1	Yrs				3.1	Yrs				3.1	Yrs				3.1	Yrs
Average yield to maturity at market		3.1	%				2.9	%				2.6	%				2.9	%				3.2	%				3.6	%
Average credit quality		AA					AA					AA					AA					AA					AA

(A)

The Funds Held - Directly Managed Portfolio is described separately on pages 21-22 and is not reflected here.

PartnerRe Ltd.

Distribution of Corporate Bonds

(Expressed in thousands of U.S. dollars)

(Unaudited)


	March 31, 2011
	Fair Value			Percentage to Total Fair Value of Corporate Bonds			Percentage to Invested Assets and Cash			Largest Single issuer as a Percentage of Invested Assets and Cash
Distribution by sector - Corporate bonds
Finance	$	1,559,838			25.2	%		9.3	%		0.9	%
Consumer noncyclical		757,090			12.2			4.5			0.2
Government guaranteed corporate debt		592,593			9.5			3.5			0.9
Communications		558,863			9.0			3.4			0.5
Utilities		451,362			7.3			2.7			0.1
Catastrophe bonds		431,021			7.0			2.6			0.3
Industrials		395,452			6.3			2.4			0.1
Energy		345,766			5.6			2.1			0.2
Consumer cyclical		276,578			4.5			1.7			0.2
Insurance		267,565			4.3			1.6			0.3
Longevity and mortality bonds		187,662			3.0			1.1			0.4
Materials		170,391			2.7			1.0			0.1
Technology		123,167			2.0			0.7			0.1
Real estate investment trusts		71,785			1.2			0.4			0.1
Diversified		10,066			0.2			0.1			—

Total Corporate bonds	$	6,199,199			100.0	%		37.1	%


Finance sector - Corporate bonds
Banks	$	647,452			10.5	%		3.9	%
Investment banking and brokerage		446,395			7.2			2.7
Financial services		225,039			3.6			1.3
Commercial and consumer finance		181,518			2.9			1.1
Other		59,434			1.0			0.3

Total finance sector - Corporate bonds	$	1,559,838			25.2	%		9.3	%


	AAA			AA			A			BBB			Non-Investment Grade/Unrated			Total
Credit quality of finance sector - Corporate bonds
Banks	$	54,952		$	173,207		$	361,184		$	46,937		$	11,172		$	647,452
Investment banking and brokerage		23,557			—			414,504			8,334			—			446,395
Financial services		39,316			145,019			38,754			1,950			—			225,039
Commercial and consumer finance		—			3,006			118,366			60,146			—			181,518
Other		—			13,234			19,898			18,011			8,291			59,434

Total finance sector - Corporate bonds	$	117,825		$	334,466		$	952,706		$	135,378		$	19,463		$	1,559,838


% of total		7.6	%		21.4	%		61.1	%		8.7	%		1.2	%		100.0	%

Concentration of investment risk

The top 10 Corporate bond issues account for 20.2% of the Company's total corporate bonds. The single largest issue accounts for 2.5% of the company’s total Corporate bonds.

PartnerRe Ltd.

Distribution of Equities

(Expressed in thousands of U.S. dollars)

(Unaudited)


	March 31, 2011
	Fair Value		Percentage to Total Fair Value of Equities			Percentage to Invested Assets and Cash			Largest Single Issuer as a Percentage of Invested Assets and Cash
Distribution by sector - Equities
Consumer noncyclical	$	154,410		19.0	%		0.9	%		0.1	%
Energy		109,134		13.5			0.6			0.1
Finance		95,386		11.8			0.6			0.1
Technology		92,596		11.4			0.6			0.1
Communications		90,548		11.2			0.5			0.1
Industrials		83,824		10.3			0.5			0.1
Consumer cyclical		62,618		7.7			0.4			—
Insurance		44,262		5.5			0.3			0.1
Materials		38,276		4.7			0.2			—
Utilities		25,946		3.2			0.2			—
Real estate investment trusts		10,829		1.3			0.1			—
Diversified		2,878		0.4			—			—


Total equities	$	810,707		100.0	%		4.9	%


Mutual funds and exchange traded funds (ETFs)
Funds holding fixed income securities		171,545					1.0
Funds and ETFs holding equities		70,831					0.4

Total equities	$	1,053,083					6.3	%

Concentration of investment risk

The single largest fund in funds and ETFs holding equities is an emerging market fixed income fund, which accounts for 12.4% of the Company’s total equities.

Excluding equity securities held in mutual funds and exchange traded funds, the top 10 common stock issuers account for 17.1% of the Company’s total equities.

Excluding equity securities held in mutual funds and exchange traded funds, the single largest issuer accounts for 3.0% of the Company’s total equities.

PartnerRe Ltd.

Distribution of Mortgage/Asset-Backed Securities

(Expressed in thousands of U.S. dollars)

(Unaudited)

Fixed Maturities - Mortgage/Asset-Backed Securities by type and by rating


	Rating at March 31, 2011
	GNMA			GSEs			AAA			AA			A			BBB			Non- Investment Grade/Unrated			Total


U.S. Asset-Backed Securities	$	—		$	4,143		$	107,015		$	4,665		$	69,520		$	28,048		$	280,514		$	493,905
U.S. Collaterized Mortgage Obligations		12,335			53,490			18,066			856			—			467			84,418			169,632
U.S. Mortgage Backed Securities (MBS)		289,795			1,532,654			—			—			—			—			—			1,822,449
U.S. Commercial Mortgage Backed Securities (CMBS)		—			—			16,245			—			17,526			1,785			4,004			39,560
U.S. MBS Interest Only		9,504			7,298			—			—			—			—			—			16,802

Subtotal U.S. mortgage/asset-backed securities	$	311,634		$	1,597,585		$	141,326		$	5,521		$	87,046		$	30,300		$	368,936		$	2,542,348

Non-U.S. Asset-Backed Securities	$	—		$	—		$	97,503		$	—		$	48,155		$	—		$	—		$	145,658
Non-U.S. Collaterized Mortgage Obligations		—			—			246,024			14,308			—			4,140			2,342			266,814
Non-U.S. Commercial Mortgage Backed Securities (CMBS)		—			—			7,801			—			—			—			—			7,801

Subtotal Non-U.S. mortgage/asset-backed securities	$	—		$	—		$	351,328		$	14,308		$	48,155		$	4,140		$	2,342		$	420,273


Total mortgage/asset-backed securities	$	311,634		$	1,597,585		$	492,654		$	19,829		$	135,201		$	34,440		$	371,278		$	2,962,621


Corporate Securities		—			216,039			—			—			—			—			—			216,039


Total	$	311,634		$	1,813,624		$	492,654		$	19,829		$	135,201		$	34,440		$	371,278		$	3,178,660


% of total		9.8	%		57.1	%		15.5	%		0.6	%		4.2	%		1.1	%		11.7	%		100.0	%

PartnerRe Ltd.

Other Invested Assets including Private Markets and Derivative Exposures

(Expressed in thousands of U.S. dollars)

(Unaudited)

Carrying and Notional Values of Private Markets Investments and Other Invested Assets


	March 31, 2011
	Investments		Fair Value of Derivatives			Carrying Value			Net Notional Amount of Derivatives			Total Net Exposures ⁽¹⁾
Private Markets Investments
Principal Finance - Investments	$	129,960	$	—		$	129,960		$	—		$	129,960
Principal Finance - Derivative Exposure Assumed		—		(11,700	)		(11,700	)		184,961			173,261
Insurance-Linked Securities		—		(10,969	)		(10,969	)		106,274			95,305
Commodities Futures		—		(458	)		(458	)		52,510			52,052
Strategic Investments		178,224		—			178,224			—			178,224

Total other invested assets - Private Markets Exposure Assumed		308,184		(23,127	)		285,057			343,745			628,802

Other Credit Derivatives - Exposure Assumed		—		484			484			5,000			5,484
Other Credit Derivatives - Protection Purchased		—		(2,225	)		(2,225	)		(109,598	)		(111,823	)

Other ⁽²⁾		10,433		(1,529	)		8,904


Total other invested assets	$	318,617	$	(26,397	)	$	292,220

(1)

The total net exposures originated in Private Markets are $1,777 million. In addition to the net exposures listed above of $629 million, the Company has the following other net exposures originated in Private Markets:

•

Principal Finance: $469 million of assets listed under Investments - Fixed Maturities and $7 million listed under Investments - Equities for a total exposure of $779 million.

•

Insurance-Linked Securities: $630 million of bonds listed under Investments - Fixed Maturities and $29 million of limits on transactions that use reinsurance accounting for a total exposure of $754 million.

•

Commodities futures: a total exposure of $52 million.

•

Strategic Investments: $12 million of assets listed under Investments - Fixed Maturities and $2 million of assets listed under Cash and Other Assets for a total exposure of $192 million.

(2)

Other includes foreign currency and fixed income hedging instruments used to manage currency and duration exposure, respectively, and other miscellaneous invested assets.

PartnerRe Ltd.

Funds Held - Directly Managed Portfolio

(Expressed in millions of U.S. dollars)

(Unaudited)


	March 31, 2011					December 31, 2010					September 30, 2010					June 30, 2010					March 31, 2010					December 31, 2009

Investments:
Fixed maturities
U.S. government	$	76		6	%	$	95		6	%	$	100		6	%	$	98		6	%	$	110		6	%	$	119		6	%
Government Sponsored Entities (GSEs)		155		13			193		12			202		11			215		13			221		12			180		10
U.S. municipalities		—		—			—		—			—		—			—		—			—		—			1		—
Non-U.S. sovereign government, supranational and government related		360		29			385		25			438		25			440		26			481		27			548		30
Corporates		571		47			799		52			929		54			864		51			932		51			900		49
Mortgage/asset-backed securities		—		—			12		1			12		1			13		1			13		1			18		1

Total fixed maturities		1,162		95			1,484		96			1,681		97			1,630		97			1,757		97			1,766		96
Short-term investments		44		3			38		3			18		1			29		2			23		1			28		2
Other invested assets		23		2			21		1			31		2			27		1			32		2			39		2

Total investments	$	1,229		100	%	$	1,543		100	%	$	1,730		100	%	$	1,686		100	%	$	1,812		100	%	$	1,833		100	%


Cash and cash equivalents		111					129					46					51					25					146
Total investments and cash	$	1,340				$	1,672				$	1,776				$	1,737				$	1,837				$	1,979

Accrued investment income		18					20					26					22					28					25
Other funds held assets/liabilities		156					80					117					116					117					121

Total funds held - directly managed	$	1,514				$	1,772				$	1,919				$	1,875				$	1,982				$	2,125


Maturity distribution:
One year or less	$	241		20	%	$	289		19	%	$	298		17	%	$	334		20	%	$	366		21	%	$	360		20	%
More than one year through five years		647		54			814		53			910		54			833		50			899		50			903		50
More than five years through ten years		288		24			376		25			427		25			422		26			421		24			423		24
More than ten years		30		2			31		2			52		3			57		3			81		4			90		5

Subtotal		1,206		100			1,510		99			1,687		99			1,646		99			1,767		99			1,776		99
Mortgage/asset-backed securities		—		—			12		1			12		1			13		1			13		1			18		1

Total	$	1,206		100	%	$	1,522		100	%	$	1,699		100	%	$	1,659		100	%	$	1,780		100	%	$	1,794		100	%


Credit quality by market value:
AAA		42	%				45	%				41	%				43	%				42	%				38	%
AA		30					27					27					26					27					26
A		24					24					27					26					26					29
BBB		4					4					4					4					4					5
Below Investment Grade/Unrated		—					—					1					1					1					2

		100	%				100	%				100	%				100	%				100	%				100	%


Expected average duration		3.1Yrs					3.1 Yrs					3.2 Yrs					3.2 Yrs					3.2 Yrs					3.0 Yrs
Average yield to maturity at market		2.4	%				2.4	%				2.1	%				2.3	%				2.5	%				2.6	%
Average credit quality		AA					AA					AA					AA					AA					AA

PartnerRe Ltd.

Distribution of Corporate Bonds

Funds Held - Directly Managed Portfolio

(Expressed in thousands of U.S. dollars)

(Unaudited)


	March 31, 2011
	Fair Value			Percentage to Total Fair Value of Corporate Bonds			Percentage to Funds Held - Directly Managed Investments and cash			Largest Single issuer as a Percentage of Funds Held - Directly Managed Investments and cash
Distribution by sector - Corporate bonds
Finance	$	281,575			49.3	%		21.0	%		1.3	%
Consumer noncyclical		77,969			13.7			5.8			0.7
Energy		47,919			8.4			3.6			1.2
Utilities		38,003			6.7			2.8			0.4
Government guaranteed corporate debt		33,931			5.9			2.5			0.9
Communications		28,632			5.0			2.1			0.6
Materials		20,102			3.5			1.5			0.4
Industrials		16,632			2.9			1.3			0.4
Consumer cyclical		12,303			2.2			0.9			0.6
Technology		8,258			1.5			0.6			0.3
Real estate investment trusts		3,381			0.6			0.3			0.3
Insurance		1,912			0.3			0.2			0.1

Total Corporate bonds	$	570,617			100.0	%		42.6	%


Finance sector - Corporate bonds
Banks	$	157,462			27.6	%		11.7	%
Investment banking and brokerage		40,427			7.1			3.0
Financial services		34,176			6.0			2.6
Commercial and consumer finance		28,315			4.9			2.1
Other		21,195			3.7			1.6

Total finance sector - Corporate bonds	$	281,575			49.3	%		21.0	%


	AAA			AA			A			BBB			Total
Credit quality of finance sector - Corporate bonds
Banks	$	39,700		$	77,283		$	40,479		$	—		$	157,462
Investment banking and brokerage		25,158			—			15,269			—			40,427
Financial services		7,284			18,662			8,230			—			34,176
Commercial and consumer finance		10,551			4,698			8,963			4,103			28,315
Other		16,450			—			4,062			683			21,195

Total finance sector - Corporate bonds	$	99,143		$	100,643		$	77,003		$	4,786		$	281,575


% of total		35.2	%		35.7	%		27.4	%		1.7	%		100.0	%

Concentration of investment risk

The Top 10 corporate bond issuers account for 21.6% of the Company’s total corporate bonds. The single largest issuer accounts for 3.0% of the Company’s total corporate bonds within the Funds Held - Directly Managed portfolio.

PartnerRe Ltd.

Composition of Net Investment Income and Net Realized and Unrealized Investment (Losses) Gains

(Expressed in thousands of U.S. dollars)

(Unaudited)


	For the three months ended															For the year ended
	March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010			December 31, 2010			December 31, 2009


Fixed maturities	$	135,947		$	136,724		$	142,056		$	147,871		$	153,607		$	580,258		$	559,330
Short-term investments, cash and cash equivalents		1,243			2,358			1,589			1,005			3,589			8,541			11,799
Equities		4,190			5,441			6,097			5,697			3,559			20,794			13,861
Funds held and other		12,590			14,535			11,971			15,506			10,782			52,794			32,793
Funds held - directly managed		8,168			13,596			11,463			14,565			12,151			51,775			17,766
Investment expenses		(10,505	)		(11,850	)		(8,774	)		(10,190	)		(10,566	)		(41,380	)		(39,478	)

Net investment income ⁽²⁾	$	151,633		$	160,804		$	164,402		$	174,454		$	173,122		$	672,782		$	596,071


Net realized investment gains on fixed maturities and short-term investments	$	7,434		$	66,432		$	56,290		$	34,622		$	16,082		$	173,426		$	105,249
Net realized investment gains (losses) on equities ⁽¹⁾		37,031			6,943			14,592			10,445			12,756			44,736			(45,258	)
Net realized gains (losses) on other invested assets		12,244			(6,259	)		(34,738	)		(29,285	)		1,714			(68,568	)		(35,426	)
Change in net unrealized (losses) gains on other invested assets		(37,453	)		46,092			5,392			(24,784	)		(22,958	)		3,742			58,196
Change in net unrealized investment (losses) gains on fixed maturities		(140,228	)		(254,361	)		134,467			165,665			99,097			144,868			320,934
Change in net unrealized investment (losses) gains on short-term investments		(641	)		(140	)		324			7			(2,425	)		(2,234	)		2,010
Change in net unrealized investment gains (losses) on equities		16,118			86,373			79,650			(126,610	)		25,412			64,825			185,925
Net other realized and unrealized investment gains (losses)		1			(3	)		10,852			(4,492	)		6,978			13,335			1,777
Net realized and unrealized investment (losses) gains on funds held - directly managed		(6,705	)		(28,278	)		26,335			20,478			8,818			27,352			(1,700	)

Net realized and unrealized investment (losses) gains	$	(112,199	)	$	(83,201	)	$	293,164		$	46,046		$	145,474		$	401,482		$	591,707

(1)

Net realized investment gains on equities include $18,275 for the year ended December 31, 2009 related to our equity holding in Paris Re prior to October 2, 2009, the date of acquisition.

(2)

Comparisons of net investment income between periods include the impact of foreign exchange variances. For the three months ended March 31, 2011, net investment income includes foreign exchange impacts of ($3.2) million compared to the three months ended March 31, 2010.

PartnerRe Ltd.

Composition of Net Investment Income and Net Realized and Unrealized Investment (Losses) Gains

Funds Held - Directly Managed Portfolio

(Expressed in thousands of U.S. dollars)

(Unaudited)


	For the three months ended															For the year ended			For the period
	March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010			December 31, 2010			from October 2, 2009 to December 31, 2009

Fixed maturities	$	7,950		$	11,099		$	11,477		$	12,281		$	11,343		$	46,200		$	10,956
Short-term investments, cash and cash equivalents		178			19			84			581			923			1,607			287
Other		329			3,055			666			2,134			223			6,078			6,934
Investment expenses		(289	)		(577	)		(764	)		(431	)		(338	)		(2,110	)		(411	)

Net investment income	$	8,168		$	13,596		$	11,463		$	14,565		$	12,151		$	51,775		$	17,766


Net realized investment gains (losses) on fixed maturities and short-term investments	$	5,273		$	1,517		$	1,575		$	(1,357	)	$	(694	)	$	1,041		$	(2,200	)

Net realized investment gains of equities		—			539			78			—			5			622			—
Change in net unrealized investment (losses) gains on fixed maturities and short-term investments		(12,250	)		(28,714	)		24,118			19,988			11,278			26,670			1,920
Change in net unrealized investment (losses) gains on equities		—			(534	)		64			—			(99	)		(569	)		(35	)
Net other realized and unrealized investment gains (losses)		272			(1,086	)		500			1,847			(1,672	)		(412	)		(1,385	)

Net realized and unrealized investment (losses) gains on funds held - directly managed	$	(6,705	)	$	(28,278	)	$	26,335		$	20,478		$	8,818		$	27,352		$	(1,700	)

PartnerRe Ltd.

Analysis of Unpaid Losses and Loss Expenses

(Expressed in thousands of U.S. dollars)

(Unaudited)


	As at and for the three months ended															As at and for the year ended
	March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010			December 31, 2010			December 31, 2009

Reconciliation of beginning and ending liability for unpaid losses and loss expenses:

Gross liability at beginning of period	$	10,666,604		$	10,705,562		$	10,342,589		$	10,930,486		$	10,811,483		$	10,811,483		$	7,510,666
Reinsurance recoverable at beginning of period		(348,747	)		(352,087	)		(356,883	)		(345,464	)		(336,352	)		(336,352	)		(125,215	)

Net liability at beginning of period		10,317,857			10,353,475			9,985,706			10,585,022			10,475,131			10,475,131			7,385,451

Net liability acquired related to the acquisition of Paris Re		—			—			—			—			—			—			3,176,255

Net incurred losses related to:
Current year		1,604,208			768,522			738,758			656,861			973,733			3,137,874			2,340,768
Prior years		(141,901	)		(127,929	)		(136,444	)		(120,680	)		(92,830	)		(477,883	)		(485,809	)

		1,462,307			640,593			602,314			536,181			880,903			2,659,991			1,854,959

Change in reserve agreement ⁽¹⁾		(367	)		(6,213	)		(34,803	)		(35,247	)		9,480			(66,783	)		(32,027	)

Net losses paid		(525,159	)		(621,330	)		(630,910	)		(761,549	)		(565,229	)		(2,579,018	)		(2,043,878	)

Effects of foreign exchange rate changes		249,232			(48,668	)		431,168			(338,701	)		(215,263	)		(171,464	)		134,371


Net liability at end of period		11,503,870			10,317,857			10,353,475			9,985,706			10,585,022			10,317,857			10,475,131
Reinsurance recoverable at end of period		383,446			348,747			352,087			356,883			345,464			348,747			336,352

Gross liability at end of period	$	11,887,316		$	10,666,604		$	10,705,562		$	10,342,589		$	10,930,486		$	10,666,604		$	10,811,483


Breakdown of gross liability at end of period:
Case reserves	$	4,971,016		$	4,652,281		$	4,667,556		$	4,371,226		$	4,616,968		$	4,652,281		$	4,817,765
Additional case reserves		477,079			326,721			331,446			325,670			241,919			326,721			274,360
Incurred but not reported reserves		6,439,221			5,687,602			5,706,560			5,645,693			6,071,599			5,687,602			5,719,358

Gross liability at end of period	$	11,887,316		$	10,666,604		$	10,705,562		$	10,342,589		$	10,930,486		$	10,666,604		$	10,811,483


Breakdown of gross liability at end of period by Non-life sub-segment:
North America	$	3,287,790		$	3,211,622		$	3,205,491		$	3,259,118		$	3,389,475		$	3,211,622		$	3,355,316
Global (Non-U.S.) P&C		2,970,488			2,804,937			2,917,114			2,682,126			2,923,596			2,804,937			2,937,078
Global (Non-U.S.) Specialty		3,907,487			3,781,341			3,820,469			3,681,610			3,802,077			3,781,341			3,798,025
Catastrophe		1,721,551			868,704			762,488			719,735			815,338			868,704			721,064

Gross liability at end of period	$	11,887,316		$	10,666,604		$	10,705,562		$	10,342,589		$	10,930,486		$	10,666,604		$	10,811,483


Unrecognized time value of non-life reserves	$	1,153,088		$	949,210		$	778,529		$	860,178		$	1,133,396		$	949,210		$	1,190,323

Non-life paid loss ratio data:
Non-life paid losses to incurred losses ratio		35.9	%		97.0	%		104.7	%		142.0	%		64.2	%		97.0	%		110.2	%
Non-life paid losses to net premiums earned ratio		59.6	%		63.3	%		55.8	%		81.8	%		57.1	%		63.9	%		57.9	%

(1)

The change in the reserve agreement is due to (favorable) unfavorable development on Paris Re’s reserves which are guaranteed by Axa under the reserve agreement.

PartnerRe Ltd.

Analysis of Policy Benefits for Life and Annuity Contracts

(Expressed in thousands of U.S. dollars)

(Unaudited)


	As at and for the three months ended															As at and for the year ended
	March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010			December 31, 2010			December 31, 2009


Reconciliation of beginning and ending policy benefits for life and annuity contracts:

Gross liability at beginning of period	$	1,750,410		$	1,735,930		$	1,566,899		$	1,613,662		$	1,615,193		$	1,615,193		$	1,432,015
Reinsurance recoverable at beginning of period		(14,739	)		(15,054	)		(13,597	)		(15,844	)		(20,465	)		(20,465	)		(24,102	)

Net liability at beginning of period		1,735,671			1,720,876			1,553,302			1,597,818			1,594,728			1,594,728			1,407,913

Net incurred losses related to:
Current year		148,623			186,646			142,599			139,989			142,561			611,795			455,770
Prior years		(3,713	)		(9,468	)		3,966			28,461			(11,127	)		11,832			(15,433	)

		144,910			177,178			146,565			168,450			131,434			623,627			440,337
Net losses paid ⁽¹⁾		(291,973	)		(133,299	)		(91,329	)		(139,295	)		(56,021	)		(419,944	)		(323,088	)

Effects of foreign exchange rate changes		71,040			(29,084	)		112,338			(73,671	)		(72,323	)		(62,740	)		69,566


Net liability at end of period		1,659,648			1,735,671			1,720,876			1,553,302			1,597,818			1,735,671			1,594,728
Reinsurance recoverable at end of period		11,120			14,739			15,054			13,597			15,844			14,739			20,465

Gross liability at end of period	$	1,670,768		$	1,750,410		$	1,735,930		$	1,566,899		$	1,613,662		$	1,750,410		$	1,615,193

(1)

Net losses paid for the three months ended March 31, 2011 includes an approximate $130 million reduction in policy benefits for life and annuity contracts related to the recapture by the cedant of a large longevity treaty that was written on a funds held basis. Contemporaneously, the treaty was rewritten on a net settled mortality swap basis.

PartnerRe Ltd.

Reserve Development

(Expressed in thousands of U.S. dollars)

(Unaudited)


	For the three months ended															For the year ended
	March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010			December 31, 2010			December 31, 2009


Prior year net favorable (adverse) reserve development:

Non-life segment:
North America	$	39,720		$	21,451		$	68,009		$	53,003		$	23,317		$	165,780		$	177,571
Global (Non-U.S.) P&C		32,454			34,867			3,877			25,310			33,485			97,539			151,456
Global (Non-U.S.) Specialty		34,623			56,760			66,741			31,845			15,585			170,931			107,632
Catastrophe		35,104			14,851			(2,183	)		10,522			20,443			43,633			49,150

Total Non-life net prior year reserve development	$	141,901		$	127,929		$	136,444		$	120,680		$	92,830		$	477,883		$	485,809


Non-life segment:
Net prior year reserve development due to changes in premiums	$	(28,314	)	$	7,470		$	(8,868	)	$	(113	)	$	(5,998	)	$	(7,509	)	$	8,925
Net prior year reserve development due to all other factors ⁽²⁾		170,215			120,459			145,312			120,793			98,828			485,392			476,884

Total Non-life net prior year reserve development	$	141,901		$	127,929		$	136,444		$	120,680		$	92,830		$	477,883		$	485,809


Life segment:
Net prior year reserve development due to GMDB ⁽¹⁾	$	10,967		$	15,767		$	(556	)	$	(8,677	)	$	10,191		$	16,725		$	16,488
Net prior year reserve development due to all other factors ⁽²⁾		(7,254	)		(6,299	)		(3,410	)		(19,784	)		936			(28,557	)		(1,055	)

Total Life net prior year reserve development	$	3,713		$	9,468		$	(3,966	)	$	(28,461	)	$	11,127		$	(11,832	)	$	15,433

(1)

The guaranteed minimum death benefit (GMDB) reserves are sensitive to volatility in certain referenced global equity markets. At March 31, 2011, a 10% increase in the referenced global equity market would have decreased reserves by approximately $2.5 million, while a 10% decrease in the referenced global equity market would have increased reserves by approximately $3.1 million.

(2)

Net prior year reserve development due to all other factors includes, but is not limited to loss experience, changes in assumptions and changes in methodology.

PartnerRe Ltd.

Reconciliation of GAAP and non-GAAP measures

(in thousands of U.S. dollars except per share data)

(Unaudited)


	For the three months ended															For the year ended
	March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010			December 31, 2010			December 31, 2009 ^(A)


Reconciliation of GAAP and non-GAAP measures:

Annualized return on beginning diluted book value per common share⁽¹⁾ calculated with net (loss) income per share available to common shareholders		(51.2	)%		3.1	%		32.0	%		11.0	%		4.0	%		12.4	%		37.4	%
Less:
Annualized net realized and unrealized investment (losses) gains, net of tax, on beginning diluted book value per common share ⁽¹⁾		(5.6	)		(4.6	)		14.4			1.8			6.3			4.6			13.3

Annualized net realized gain on purchase of capital efficient notes, net of tax, on beginning diluted book value per common share ⁽¹⁾		—			—			—			—			—			—			1.5

Annualized net foreign exchange gains (losses), net of tax, on beginning diluted book value per common share ⁽¹⁾		0.4			0.9			(1.2	)		0.6			0.5			0.2			—

Annualized net interest in earnings of equity investments, net of tax, on beginning diluted book value per common share ⁽¹⁾		0.1			0.5			0.1			0.1			0.1			0.2			0.3


Annualized operating return on beginning diluted book value per common share ⁽¹⁾		(46.1	)%		6.3	%		18.7	%		8.5	%		(2.9	)%		7.4	%		22.3	%


Net (loss) income	$	(806,956	)	$	57,035		$	524,937		$	190,927		$	79,654		$	852,552		$	1,536,854

Less:
Net realized and unrealized investment (losses) gains, net of tax		(88,401	)		(71,793	)		232,981			29,683			110,592			301,462			497,031
Net realized gain on purchase of capital efficient notes, net of tax		—			—			—			—			—			—			56,955
Net foreign exchange gains (losses), net of tax		7,321			14,260			(19,751	)		9,712			8,626			12,847			1,442
Interest in earnings of equity investments, net of tax		1,065			7,155			1,468			1,076			2,213			11,911			16,197
Dividends to preferred shareholders		8,631			8,631			8,631			8,631			8,631			34,525			34,525

Operating (loss) earnings available to common shareholders	$	(735,572	)	$	98,782		$	301,608		$	141,825		$	(50,408	)	$	491,807		$	930,704


Per diluted share:
Net (loss) income	$	(11.99	)	$	0.65		$	6.76		$	2.31		$	0.85		$	10.46		$	23.51
Less:
Net realized and unrealized investment (losses) gains, net of tax		(1.30	)		(0.96	)		3.05			0.38			1.33			3.86			7.78
Net realized gain on purchase of capital efficient notes, net of tax		—			—			—			—			—			—			0.89
Net foreign exchange gains (losses), net of tax		0.11			0.19			(0.26	)		0.12			0.10			0.16			0.02
Interest in earnings of equity investments, net of tax		0.02			0.09			0.02			0.01			0.02			0.15			0.25

Operating (loss) earnings ^{(B) (2)}	$	(10.82	)	$	1.33		$	3.95		$	1.80		$	(0.60	)	$	6.29		$	14.57

(1)

Excluding cumulative preferred shares of $520,000.

(2)

See page 34 for further analysis of Paris Re acquisition related expenses.

(A)

For the year ended December 31, 2009, return on beginning diluted book value per common share is the sum of the operating earnings per diluted share for the nine months ended September 30, 2009 divided by the beginning diluted book value per common share plus the operating earnings per diluted share for the three months ended December 31, 2009 divided by the beginning diluted book value per common share plus the per diluted share impact of equity issued related to the acquisition of Paris Re.

(B)

Diluted operating loss per share for the three months ended March 31, 2010 was calculated using the weighted average number of common and common share equivalents outstanding as the denominator. While this results in diluted operating loss per share being anti-dilutive, it is the Company's policy to use the net income or loss per share denominator for calculating operating earnings or loss per share.

PartnerRe Ltd.

Reconciliation of GAAP and non-GAAP Measures

(in thousands of U.S. dollars except per share data)

(Unaudited)


	For the three months ended												For the year ended
	December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010			December 31, 2010			December 31, 2009 ^(A)


Reconciliation of previously published and redefined non-GAAP measures ⁽¹⁾

Annualized operating return on beginning common shareholders’ equity - previously published		6.3	%		15.8	%		8.5	%		(2.3	)%		7.1	%		22.3	%
Less:
Impact of excluding net foreign exchange (losses) gains, net of tax		0.9			(1.2	)		0.6			0.5			0.2			—
Impact of redefining calculation to a per diluted share basis		(0.9	)		(1.7	)		(0.6	)		0.1			(0.5	)		—


Annualized operating return on beginning diluted book value per common share - redefined		6.3	%		18.7	%		8.5	%		(2.9	)%		7.4	%		22.3	%


Operating earnings (loss) available to common shareholders - previously published	$	113,042		$	281,857		$	151,537		$	(41,782	)	$	504,654		$	932,146
Less:
Net foreign exchange (losses) gains		(8,260	)		(27,074	)		11,021			3,627			(20,686	)		(1,464	)
Tax benefit (expense) on net foreign exchange losses (gains)		22,520			7,323			(1,309	)		4,999			33,533			2,906

Net foreign exchange gains (losses), net of tax		14,260			(19,751	)		9,712			8,626			12,847			1,442


Operating earnings (loss) available to common shareholders - redefined	$	98,782		$	301,608		$	141,825		$	(50,408	)	$	491,807		$	930,704


Per diluted share:
Operating earnings (loss) - previously published	$	1.52		$	3.69		$	1.92		$	(0.50	)	$	6.45		$	14.59
Less:
Net foreign exchange (losses) gains		(0.11	)		(0.35	)		0.14			0.04			(0.27	)		(0.02	)
Tax benefit (expense) on net foreign exchange (losses) gains		0.30			0.09			(0.02	)		0.06			0.43			0.04

Net foreign exchange gains (losses), net of tax		0.19			(0.26	)		0.12			0.10			0.16			0.02


Operating earnings (loss) - redefined	$	1.33		$	3.95		$	1.80		$	(0.60	)	$	6.29		$	14.57

(1)	See Basis of Presentation for an explanation of the redefined non-GAAP measures.

PartnerRe Ltd.

Reconciliation of GAAP and non-GAAP measures

(in thousands of U.S. dollars or shares, except per share data)

(Unaudited)


	March 31, 2011		December 31, 2010		September 30, 2010		June 30, 2010		March 31, 2010		December 31, 2009


Reconciliation of GAAP and non-GAAP measures:

Shareholders’ equity	$	6,174,833	$	7,206,919	$	7,582,293	$	7,071,242	$	7,388,511	$	7,645,727
Less:
6.75% Series C cumulative preferred shares, aggregate liquidation		290,000		290,000		290,000		290,000		290,000		290,000
6.5% Series D cumulative preferred shares, aggregate liquidation		230,000		230,000		230,000		230,000		230,000		230,000


Common shareholders’ equity		5,654,833		6,686,919		7,062,293		6,551,242		6,868,511		7,125,727

Less:
Net unrealized gains on fixed income securities and funds held - directly managed, net of tax		242,193		364,032		576,521		443,373		312,948		234,153


Book value excluding net unrealized gains or losses on fixed income securities and funds held - directly managed, net of tax	$	5,412,640	$	6,322,887	$	6,485,772	$	6,107,869	$	6,555,563	$	6,891,574


Divided by:
Number of common and common share equivalents outstanding		68,542.4		71,312.3		75,771.5		76,780.8		81,647.4		84,319.7

Equals:
Diluted book value per common and common share equivalents outstanding, excluding net unrealized gains or losses on fixed income securities and funds held - directly managed, net of tax	$	78.97	$	88.66	$	85.60	$	79.55	$	80.29	$	81.73

PartnerRe Ltd.

Diluted Book Value per Common Share - Treasury Stock Method ⁽¹⁾

(in thousands of U.S. dollars or shares, except per share data)

(Unaudited)


	March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010			December 31, 2009


Total shareholders’ equity	$	6,174,833		$	7,206,919		$	7,582,293		$	7,071,242		$	7,388,511		$	7,645,727
Less: preferred shares		(520,000	)		(520,000	)		(520,000	)		(520,000	)		(520,000	)		(520,000	)

Common shareholders’ equity	$	5,654,833		$	6,686,919		$	7,062,293		$	6,551,242		$	6,868,511		$	7,125,727

Basic common shares outstanding		67,439.6			69,986.2			74,581.4			75,349.9			80,015.4			82,580.7


Basic book value per common share	$	83.85		$	95.55		$	94.69		$	86.94		$	85.84		$	86.29


Diluted book value per common share

Common shareholders’ equity	$	5,654,833		$	6,686,919		$	7,062,293		$	6,551,242		$	6,868,511		$	7,125,727

Basic common shares outstanding		67,439.6			69,986.2			74,581.4			75,349.9			80,015.4			82,580.7
Add: Stock options and other		2,769.2			3,293.4			2,977.0			3,022.4			3,255.0			3,331.7
Add: Restricted stock units		825.6			940.4			977.2			1,215.6			1,096.9			1,189.1
Less: Stock options and other bought back via treasury stock method		(2,492.0	)		(2,907.7	)		(2,764.1	)		(2,807.1	)		(2,719.9	)		(2,781.8	)

Diluted common and common share equivalents outstanding		68,542.4			71,312.3			75,771.5			76,780.8			81,647.4			84,319.7


Diluted book value per common share	$	82.50		$	93.77		$	93.21		$	85.32		$	84.12		$	84.51

(1)

This method assumes that proceeds received upon exercise of options will be used to repurchase the Company’s common shares at the average market price. Unvested restricted stock and the dilutive impact of the Company’s forward sale contract, if any, are also added to determine the diluted common and common share equivalents outstanding.

PartnerRe Ltd.

Diluted Book Value per Common Share - Rollforward

(in millions of U.S. dollars, except per share data)

(Unaudited)


	As of and for the three months ended March 31, 2011						As of and for the three months ended March 31, 2010
	Common shareholders’ equity			Diluted book value per common share			Common shareholders’ equity			Diluted book value per common share

Common shareholders’ equity / diluted book value per common share at beginning of period	$	6,687		$	93.77		$	7,126		$	84.51

Technical result		(751	)		(11.04	)		(79	)		(0.94	)
Other operating expenses		(104	)		(1.53	)		(128	)		(1.54	)
Net investment income		152			2.23			173			2.08
Amortization of intangible assets		(9	)		(0.13	)		(5	)		(0.06	)
Other, net		(10	)		(0.15	)		(10	)		(0.13	)
Operating income tax (expense) benefit		(5	)		(0.07	)		8			0.09
Preferred dividends		(9	)		(0.13	)		(9	)		(0.10	)

Operating loss		(736	)		(10.82	)		(50	)		(0.60	)

Net realized and unrealized investment (losses) gains, net of tax		(88	)		(1.30	)		111			1.33
Net foreign exchange gains, net of tax		7			0.11			8			0.10
Interest in earnings of equity investments, net of tax		1			0.02			2			0.02

Net (loss) income available to common shareholders		(816	)		(11.99	)		71			0.85

Common share dividends		(37	)		(0.55	)		(41	)		(0.50	)
Change in currency translation adjustment		38			0.55			(69	)		(0.82	)
Repurchase of common shares, net		(217	)		0.32			(214	)		0.02
Change in other accumulated comprehensive income or loss, net of tax		—			—			(4	)		(0.05	)

Impact of change in number of common and common share equivalents outstanding		n/a			0.40			n/a			0.11


Common shareholders’ equity / diluted book value per common share at end of period	$	5,655		$	82.50		$	6,869		$	84.12

PartnerRe Ltd.

Diluted Book Value per Common Share - Rollforward

(in millions of U.S. dollars, except per share data)

(Unaudited)


	As of and for the year ended December 31, 2010						As of and for the year ended December 31, 2009
	Common shareholders’ equity			Diluted book value per common share			Common shareholders’ equity			Diluted book value per common share

Common shareholders’ equity / diluted book value per common share at beginning of period	$	7,126		$	84.51		$	3,679		$	63.95

Technical result		520			6.65			939			14.70
Other operating expenses		(540	)		(6.90	)		(431	)		(6.74	)
Net investment income		673			8.60			596			9.33
Amortization of intangible assets		(31	)		(0.40	)		6			0.10
Other, net		(67	)		(0.86	)		(8	)		(0.14	)
Operating income tax expense		(28	)		(0.36	)		(136	)		(2.14	)
Preferred dividends		(35	)		(0.44	)		(35	)		(0.54	)

Operating earnings		492			6.29			931			14.57

Net realized and unrealized investment gains (losses), net of tax		301			3.86			497			7.78
Net realized gain on purchase of capital efficient notes, net of tax		—			—			57			0.89
Net foreign exchange gains, net of tax		13			0.16			1			0.02
Interest in earnings (losses) of equity investments, net of tax		12			0.15			16			0.25

Net income available to common shareholders		818			10.46			1,502			23.51

Common share dividends		(158	)		(2.05	)		(117	)		(1.88	)
Change in currency translation adjustment		(67	)		(0.85	)		48			0.75
Issuance of common shares		(1,018	)		1.15			2,000			(1.59	)
Change in other accumulated comprehensive income or loss, net of tax		(14	)		(0.18	)		14			0.23

Impact of change in number of common and common share equivalents outstanding		n/a			0.73			n/a			(0.46	)


Common shareholders’ equity / diluted book value per common share at end of period	$	6,687		$	93.77		$	7,126		$	84.51

PartnerRe Ltd.

Paris Re Acquisition Related Expenses

(in thousands of U.S. dollars or shares, except per share data)

(Unaudited)


	For the three months ended															For the year ended
	March 31, 2011			December 31, 2010			September 31, 2010			June 31, 2010			March 31, 2010			December 31, 2010			December 31, 2009


Acquisition related expenses:
Corporate expenses - acquisition related	$	2,335		$	6,155		$	5,654		$	1,798		$	2,468		$	16,075		$	36,521
Corporate expenses - voluntary termination plan		—			6,323			(803	)		33,755			1,409			40,684			—
Amortization of intangible assets		8,827			8,821			10,003			7,833			4,803			31,461			(6,133	)
Amortization of intangible assets included in acquisition costs ⁽¹⁾		3,700			3,715			4,789			10,388			18,202			37,094			46,410


Total acquisition related expenses	$	14,862		$	25,014		$	19,643		$	53,774		$	26,882		$	125,314		$	76,798

Less: Amortization of intangible assets included in acquisition costs		(3,700	)		(3,715	)		(4,789	)		(10,388	)		(18,202	)		(37,094	)		(46,410	)


Total acquisition related expenses, excluding those included in acquisition costs	$	11,162		$	21,299		$	14,854		$	43,386		$	8,680		$	88,220		$	30,388

Divided by:
Weighted average number of common and common share equivalents outstanding		67,997.4			74,494.7			76,428.5			78,796.4			83,328.8			78,234.3			63,890.6

Impact of acquisition related expenses on diluted operating loss or earnings per share, pre-tax	$	0.16		$	0.29		$	0.19		$	0.55		$	0.10		$	1.13		$	0.48


													Amortization of intangible assets			Amortization of intangible assets included in acquisition costs⁽¹⁾			Total amortization of intangible assets⁽³⁾⁽⁴⁾

Estimated remaining amortization of intangible assets, pre-tax ^(2):

For the three months ended June 30, 2011														9,165			2,829			11,994
For the three months ended September 30, 2011														9,520			1,914			11,434
For the three months ended December 31, 2011														8,893			—			8,893

Total for the year ended December 31, 2011														27,578			4,743			32,321
For the year ended December 31, 2012														31,799			—			31,799
For the year ended December 31, 2013														19,479			—			19,479
For the year ended December 31, 2014 and thereafter														75,239			—			75,239

Total													$	154,095		$	4,743		$	158,838

(1)

A portion of the amortization of intangible assets is included in acquisition costs. Such amount approximates the amount of acquisition costs that would be included for Paris Re had purchase accounting not been applied.

(2)

The estimated amortization of intangible assets is based on estimates of future loss payout and premium earnings patterns. These estimates are continually reviewed and actual results could materially differ from these estimates. Any adjustments will be reflected in the periods in which they are determined.

(3)

Total intangible assets of $166.2 million and $178.7 million at March 31, 2011 and December 31, 2010, respectively, are recorded gross of a deferred tax benefit of $50.4 million and $46.9 million, respectively.

(4)

Total intangible assets of $166.2 million and $178.7 million at March 31, 2011 and December 31, 2010, respectively, includes a $7.4 million intangible asset related to U.S. licenses that is not being amortized.

PARTNERRE LTD - FORM 8-K - EX-99.2 - FINANCIAL SUPPLEMENT - May 3, 2011

Attached files

PARTNERRE LTD Reports