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

Attached files

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8-K - FORM 8-K - PARTNERRE LTD	d8k.htm
EX-99.1 - PRESS RELEASE OF PARTNERRE LTD. DATED AUGUST 1, 2001 - PARTNERRE LTD	dex991.htm

Exhibit 99.2

LOGO

PartnerRe Ltd.

Financial Supplement

Financial Information

as of June 30, 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 - June 30, 2011

Table of Contents


	Page
Regulation G and Basis of Presentation
Consolidated Financial Statements
Consolidated Income Statements		1-2
Condensed Consolidated Balance Sheets		3
Condensed Consolidated Statements of Cash Flows		4-5
Consolidated Statements of Comprehensive (Loss) Income		6
Segment Information
For the three months ended June 30, 2011 and 2010		7-8
For the six months ended June 30, 2011 and 2010		9-10
Non-life segment		11-12
North America sub-segment		13-14
Global (Non-U.S.) P&C sub-segment		15-16
Global (Non-U.S.) Specialty sub-segment		17-18
Catastrophe sub-segment		19-20
Life segment		21-22
Corporate and Other		23-24
Distribution of Premiums
Distribution of Premiums by line of business, geography and production source		25-26
Distribution of Premiums by reinsurance type		27-28
Investments
Investment Portfolio		29
Distribution of Corporate Bonds		30
Distribution of Equities		31
Distribution of Mortgage/Asset-Backed Securities		32
Other Invested Assets including Private Markets and Derivative Exposures		33
Funds Held - Directly Managed Portfolio		34
Distribution of Corporate Bonds - Funds Held - Directly Managed Portfolio		35
Composition of Net Investment Income and Net Realized and Unrealized Investment Gains (Losses)		36-37
Composition of Net Investment Income and Net Realized and Unrealized Investment Gains (Losses) on Funds Held - Directly Managed Portfolio		38-39
Loss Reserves
Analysis of Unpaid Losses and Loss Expenses		40-41
Analysis of Policy Benefits for Life and Annuity Contracts		42-43
Reserve Development		44-45
Reconciliation of GAAP and non-GAAP measures		46-49
Diluted Book Value per Common Share - Treasury Stock Method		50
Diluted Book Value per Common Share - Rollforward		51-53
Paris Re Acquisition Related Expenses		54-55

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, net of tax, 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 48 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
	June 30, 2011			March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010


Revenues
Gross premiums written	$	1,082,205		$	1,557,561		$	827,301		$	1,008,464		$	1,140,175


Net premiums written	$	1,056,467		$	1,470,419		$	820,605		$	987,612		$	1,112,735
Decrease (increase) in unearned premiums		50,978			(405,830	)		384,041			325,802			(8,104	)

Net premiums earned		1,107,445			1,064,589			1,204,646			1,313,414			1,104,631
Net investment income		158,328			151,633			160,804			164,402			174,454
Net realized and unrealized investment gains (losses)		78,199			(112,199	)		(83,201	)		293,164			46,046
Other income		1,596			1,813			5,079			3,363			753

Total revenues		1,345,568			1,105,836			1,287,328			1,774,343			1,325,884


Expenses
Losses and loss expenses and life policy benefits		814,523			1,607,217			817,772			748,879			704,631
Acquisition costs		229,251			207,849			246,617			261,668			244,144
Other operating expenses		113,694			104,297			133,245			118,221			160,151
Interest expense		12,214			12,300			12,181			12,297			12,803
Amortization of intangible assets		9,165			8,827			8,821			10,003			7,833
Net foreign exchange (gains) losses		(8,737	)		(695	)		8,260			27,074			(11,021	)

Total expenses		1,170,110			1,939,795			1,226,896			1,178,142			1,118,541


Income (loss) before taxes and interest in (losses) earnings of equity investments		175,458			(833,959	)		60,432			596,201			207,343
Income tax expense (benefit)		50,085			(26,258	)		10,892			72,576			17,762
Interest in (losses) earnings of equity investments		(1,188	)		745			7,495			1,312			1,346

Net income (loss)	$	124,185		$	(806,956	)	$	57,035		$	524,937		$	190,927

Preferred dividends	$	8,631		$	8,631		$	8,631		$	8,631		$	8,631

Operating earnings (loss) available to common shareholders	$	67,153		$	(735,572	)	$	98,782		$	301,608		$	141,825

Comprehensive income (loss), net of tax	$	128,568		$	(769,410	)	$	49,184		$	631,249		$	84,271

Per Share Data:

Earnings (loss) per common share:
Basic operating earnings (loss)	$	0.99		$	(10.82	)	$	1.35		$	4.01		$	1.83
Net realized and unrealized investment gains (losses), net of tax		0.61			(1.30	)		(0.98	)		3.09			0.38
Net foreign exchange gains (losses), net of tax		0.13			0.11			0.19			(0.26	)		0.13
Interest in (losses) earnings of equity investments, net of tax		(0.02	)		0.02			0.10			0.02			0.02

Basic net income (loss)	$	1.71		$	(11.99	)	$	0.66		$	6.86		$	2.36


Weighted average number of common shares outstanding		67,628.1			67,997.4			73,168.6			75,238.3			77,365.4

Diluted operating earnings (loss) ⁽¹⁾	$	0.98		$	(10.82	)	$	1.33		$	3.95		$	1.80
Net realized and unrealized investment gains (losses), net of tax		0.60			(1.30	)		(0.96	)		3.05			0.38
Net foreign exchange gains (losses), net of tax		0.13			0.11			0.19			(0.26	)		0.12
Interest in (losses) earnings of equity investments, net of tax		(0.02	)		0.02			0.09			0.02			0.01

Diluted net income (loss)	$	1.69		$	(11.99	)	$	0.65		$	6.76		$	2.31


Weighted average number of common and common share equivalents outstanding		68,442.3			67,997.4			74,494.7			76,428.5			78,796.4

Dividends declared per common share	$	0.60		$	0.55		$	0.55		$	0.50		$	0.50

(1)

See page 54 for further analysis of Paris Re acquisition related expenses.

PartnerRe Ltd.

Consolidated Income Statements

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

(Unaudited)


	For the six months ended						For the year ended
	June 30, 2011			June 30, 2010			December 31, 2010		December 31, 2009

Revenues
Gross premiums written	$	2,639,766		$	3,049,501		$	4,885,266	$	4,000,888

Net premiums written	$	2,526,887		$	2,896,899		$	4,705,116	$	3,948,704
(Increase) decrease in unearned premiums		(354,853	)		(638,489	)		71,355		171,121

Net premiums earned		2,172,034			2,258,410			4,776,471		4,119,825
Net investment income		309,962			347,576			672,782		596,071
Net realized and unrealized investment (losses) gains		(34,000	)		191,519			401,482		591,707
Net realized gain on purchase of capital efficient notes		—			—			—		88,427
Other income		3,408			2,028			10,470		22,312

Total revenues		2,451,404			2,799,533			5,861,205		5,418,342

Expenses
Losses and loss expenses and life policy benefits		2,421,740			1,716,967			3,283,618		2,295,296
Acquisition costs		437,100			464,251			972,537		885,214
Other operating expenses		217,991			288,286			539,751		430,808
Interest expense		24,514			19,935			44,413		28,301
Amortization of intangible assets		17,992			12,636			31,461		(6,133	)
Net foreign exchange (gains) losses		(9,433	)		(14,648	)		20,686		1,464

Total expenses		3,109,904			2,487,427			4,892,466		3,634,950

(Loss) income before taxes and interest in (losses) earnings of equity investments		(658,500	)		312,106			968,739		1,783,392
Income tax expense		23,828			45,316			128,784		262,090
Interest in (losses) earnings of equity investments		(443	)		3,791			12,597		15,552

Net (loss) income	$	(682,771	)	$	270,581		$	852,552	$	1,536,854

Preferred dividends	$	17,263		$	17,263		$	34,525	$	34,525

Operating (loss) earnings available to common shareholders	$	(668,419	)	$	91,417		$	491,807	$	930,704

Comprehensive (loss) income, net of tax	$	(640,842	)	$	91,249		$	771,681	$	1,598,973

Per Share Data:
(Loss) earnings per common share:
Basic operating (loss) earnings	$	(9.86	)	$	1.15		$	6.40	$	14.82
Net realized and unrealized investment (losses) gains, net of tax		(0.70	)		1.77			3.92		7.92
Net realized gain on purchase of capital efficient notes, net of tax		—			—			—		0.91
Net foreign exchange gains, net of tax		0.24			0.23			0.17		0.02
Interest in (losses) earnings of equity investments, net of tax		—			0.04			0.16		0.26

Basic net (loss) income	$	(10.32	)	$	3.19		$	10.65	$	23.93

Weighted average number of common shares outstanding		67,811.4			79,519.2			76,839.5		62,786.2
Diluted operating (loss) earnings ⁽¹⁾	$	(9.86	)	$	1.13		$	6.29	$	14.57
Net realized and unrealized investment (losses) gains, net of tax		(0.70	)		1.73			3.86		7.78
Net realized gain on purchase of capital efficient notes, net of tax		—			—			—		0.89
Net foreign exchange gains, net of tax		0.24			0.23			0.16		0.02
Interest in (losses) earnings of equity investments, net of tax		—			0.04			0.15		0.25

Diluted net (loss) income	$	(10.32	)	$	3.13		$	10.46	$	23.51

Weighted average number of common and common share equivalents outstanding		67,811.4			81,050.7			78,234.3		63,890.6
Dividends declared per common share	$	1.15		$	1.00		$	2.05	$	1.88

(1)

See page 55 for further analysis of Paris Re acquisition related expenses.

PartnerRe Ltd.

Condensed Consolidated Balance Sheets

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

(Unaudited)


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

Assets
Total investments	$	15,955,923			$	14,684,553			$	14,297,867			$	15,182,110			$	14,796,197			$	15,301,510
Funds held - directly managed		1,379,513				1,514,453				1,772,118				1,919,325				1,875,305				2,124,826
Cash and cash equivalents		1,606,842				2,009,737				2,111,084				1,437,722				1,085,325				738,309
Accrued investment income		181,806				187,718				201,928				201,400				184,715				218,739
Reinsurance balances receivable		2,517,586				2,515,845				2,076,884				2,494,034				2,627,422				2,249,181
Funds held by reinsured companies		846,466				848,182				937,032				918,832				859,050				938,039
Deferred acquisition costs		661,564				671,417				595,557				664,058				672,694				614,857
Goodwill		455,533				455,533				455,533				455,533				455,533				455,533
Intangible assets		154,194				166,187				178,715				191,252				206,044				247,269
Other assets		840,495				849,150				737,653				807,557				873,849				844,281

Total assets	$	24,599,922			$	23,902,775			$	23,364,371			$	24,271,823			$	23,636,134			$	23,732,544


Liabilities
Unpaid losses and loss expenses	$	12,016,271			$	11,887,316			$	10,666,604			$	10,705,562			$	10,342,589			$	10,811,483
Policy benefits for life and annuity contracts		1,726,180				1,670,768				1,750,410				1,735,930				1,566,899				1,615,193
Unearned premiums		2,067,996				2,102,053				1,599,139				2,019,892				2,295,576				1,706,816
Other reinsurance balances payable		554,386				505,198				491,194				528,014				478,862				426,091
Debt obligations		820,989				820,989				820,989				820,989				1,020,989				520,989
Other liabilities		782,056				741,618				829,116				879,143				859,977				1,006,245

Total liabilities		17,967,878				17,727,942				16,157,452				16,689,530				16,564,892				16,086,817

Total shareholders’ equity		6,632,044				6,174,833				7,206,919				7,582,293				7,071,242				7,645,727


Total liabilities and shareholders’ equity	$	24,599,922			$	23,902,775			$	23,364,371			$	24,271,823			$	23,636,134			$	23,732,544


Shareholders’ Equity Per Common Share (excluding preferred shares)	$	84.71			$	83.85			$	95.55			$	94.69			$	86.94			$	86.29

Diluted Book Value Per Common and Common Share Equivalents Outstanding (assuming exercise of all share-based awards)	$	83.71			$	82.50			$	93.77			$	93.21			$	85.32			$	84.51


Number of Common and Common Share Equivalents Outstanding		68,552.0				68,542.4				71,312.3				75,771.5				76,780.8				84,319.7


Capital Structure:
Senior notes ⁽¹⁾	$	750,000	10	%	$	750,000	11	%	$	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
Preferred shares, aggregate liquidation		893,750	12			520,000	7			520,000	7			520,000	6			520,000	7			520,000	7
Common shareholders’ equity		5,738,294	77			5,654,833	81			6,686,919	83			7,062,293	84			6,551,242	83			7,125,727	89

Total Capital	$	7,445,428	100	%	$	6,988,217	100	%	$	8,020,303	100	%	$	8,395,677	100	%	$	7,884,626	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
	June 30, 2011			March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010


Net cash provided by operating activities:

Underwriting operations ⁽¹⁾	$	84		$	340		$	156		$	230		$	26

Investment income		186			189			176			179			208

Taxes and foreign exchange		(14	)		(43	)		(17	)		(58	)		(86	)


Net cash provided by operating activities	$	256		$	486		$	315		$	351		$	148


Net cash provided by operating activities	$	256		$	486		$	315		$	351		$	148

Net cash (used in) provided by investing activities		(987	)		(320	)		775			294			63

Net cash provided by (used in) financing activities		322			(286	)		(412	)		(326	)		(409	)

Effect of foreign exchange rate changes on cash		6			19			(5	)		34			(36	)


(Decrease) increase in cash and cash equivalents		(403	)		(101	)		673			353			(234	)

Cash and cash equivalents - beginning of period		2,010			2,111			1,438			1,085			1,319


Cash and cash equivalents - end of period	$	1,607		$	2,010		$	2,111		$	1,438		$	1,085

(1)

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.

Condensed Consolidated Statements of Cash Flows

(Expressed in millions of U.S. dollars)

(Unaudited)


	For the six months ended						For the year ended
	June 30, 2011			June 30, 2010			December 31, 2010			December 31, 2009


Net cash provided by operating activities:

Underwriting operations ⁽³⁾	$	424		$	264		$	650		$	550

Investment income		374			407			762			603

Taxes and foreign exchange		(56	)		(110	)		(185	)		(54	)


Net cash provided by operating activities	$	742		$	561		$	1,227		$	1,099


Net cash provided by operating activities	$	742		$	561		$	1,227		$	1,099

Net cash (used in) provided by investing activities ⁽¹⁾		(1,307	)		33			1,102			(447	)

Net cash provided by (used in) financing activities ⁽²⁾		36			(184	)		(922	)		(765	)

Effect of foreign exchange rate changes on cash		25			(63	)		(34	)		13


(Decrease) increase in cash and cash equivalents		(504	)		347			1,373			(100	)

Cash and cash equivalents - beginning of period		2,111			738			738			838


Cash and cash equivalents - end of period	$	1,607		$	1,085		$	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 provided by (used in) financing activities included $330 million related to the Paris Re share capital repayment.

(3)

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


Net income (loss)	$	124,185		$	(806,956	)	$	57,035		$	524,937		$	190,927

Change in currency translation adjustment		6,303			37,781			(236	)		107,572			(105,335	)
Change in net unrealized gains or losses on investments, net of tax		(249	)		(252	)		(266	)		(256	)		(257	)
Change in unfunded pension obligation, net of tax		(1,671	)		17			(7,349	)		(1,004	)		(1,064	)


Comprehensive income (loss)	$	128,568		$	(769,410	)	$	49,184		$	631,249		$	84,271


	For the six months ended						For the year ended
	June 30, 2011			June 30, 2010			December 31, 2010			December 31, 2009


Net (loss) income	$	(682,771	)	$	270,581		$	852,552		$	1,536,854

Change in currency translation adjustment		44,084			(174,078	)		(66,742	)		47,955
Change in net unrealized gains or losses on investments, net of tax		(501	)		(4,386	)		(4,908	)		8,079
Change in unfunded pension obligation, net of tax		(1,654	)		(868	)		(9,221	)		6,085


Comprehensive (loss) income	$	(640,842	)	$	91,249		$	771,681		$	1,598,973

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)


	For the three months ended June 30, 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	$	242		$	122		$	350		$	169		$	883		$	195		$	4		$	1,082

Net premiums written	$	242		$	121		$	333		$	161		$	857		$	195		$	4		$	1,056
Decrease (increase) in unearned premiums		19			72			8			(51	)		48			6			(3	)		51

Net premiums earned	$	261		$	193		$	341		$	110		$	905		$	201		$	1		$	1,107
Losses and loss expenses and life policy benefits		(190	)		(127	)		(206	)		(123	)		(646	)		(166	)		(2	)		(814	)
Acquisition costs		(63	)		(53	)		(78	)		(9	)		(203	)		(26	)		—			(229	)

Technical result	$	8		$	13		$	57		$	(22	)	$	56		$	9		$	(1	)	$	64

Other income														—			—			1			1
Other operating expenses														(71	)		(13	)		(30	)		(114	)

Underwriting result													$	(15	)	$	(4	)		n/a		$	(49	)

Net investment income																	16			142			158

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

Net realized and unrealized investment gains																				78			78
Interest expense																				(12	)		(12	)
Amortization of intangible assets																				(9	)		(9	)
Net foreign exchange gains																				9			9
Income tax expense																				(50	)		(50	)
Interest in losses of equity investments																				(1	)		(1	)

Net income																				n/a		$	124


Loss ratio ⁽²⁾		72.8	%		65.9	%		60.3	%		111.7	%		71.4	%
Acquisition ratio ⁽³⁾		24.1			27.6			22.9			8.1			22.4

Technical ratio ⁽⁴⁾		96.9	%		93.5	%		83.2	%		119.8	%		93.8	%
Other operating expense ratio ⁽⁵⁾														7.9

Combined ratio ⁽⁶⁾														101.7	%

(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 June 30, 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	$	207		$	189		$	371		$	206		$	973		$	167		$	—		$	1,140

Net premiums written	$	207		$	186		$	355		$	191		$	939		$	167		$	7		$	1,113
Decrease (increase) in unearned premiums		16			45			21			(90	)		(8	)		6			(6	)		(8	)

Net premiums earned	$	223		$	231		$	376		$	101		$	931		$	173		$	1		$	1,105
Losses and loss expenses and life policy benefits		(116	)		(141	)		(292	)		13			(536	)		(169	)		—			(705	)
Acquisition costs		(69	)		(61	)		(82	)		(7	)		(219	)		(25	)		—			(244	)

Technical result	$	38		$	29		$	2		$	107		$	176		$	(21	)	$	1		$	156

Other income (loss)														1			1			(1	)		1
Other operating expenses														(82	)		(13	)		(65	)		(160	)

Underwriting result													$	95		$	(33	)		n/a		$	(3	)

Net investment income																	20			154			174

Allocated underwriting result ⁽¹⁾																$	(13	)		n/a			n/a

Net realized and unrealized investment gains																				46			46
Interest expense																				(13	)		(13	)
Amortization of intangible assets																				(8	)		(8	)
Net foreign exchange gains																				11			11
Income tax expense																				(17	)		(17	)
Interest in earnings of equity investments																				1			1

Net income																				n/a		$	191


Loss ratio ⁽²⁾		52.2	%		61.1	%		77.6	%		(12.8	)%		57.6	%
Acquisition ratio ⁽³⁾		30.7			26.4			21.9			6.3			23.4

Technical ratio ⁽⁴⁾		82.9	%		87.5	%		99.5	%		(6.5	)%		81.0	%
Other operating expense ratio ⁽⁵⁾														8.8

Combined ratio ⁽⁶⁾														89.8	%

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)


	For the six months ended June 30, 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	$	581		$	440		$	724		$	486		$	2,231		$	403		$	6		$	2,640

Net premiums written	$	581		$	437		$	648		$	453		$	2,119		$	402		$	6		$	2,527
(Increase) decrease in unearned premiums		(60	)		(63	)		10			(220	)		(333	)		(17	)		(5	)		(355	)

Net premiums earned	$	521		$	374		$	658		$	233		$	1,786		$	385		$	1		$	2,172
Losses and loss expenses and life policy benefits		(365	)		(277	)		(427	)		(1,040	)		(2,109	)		(311	)		(2	)		(2,422	)
Acquisition costs		(129	)		(93	)		(158	)		(1	)		(381	)		(56	)		—			(437	)

Technical result	$	27		$	4		$	73		$	(808	)	$	(704	)	$	18		$	(1	)	$	(687	)

Other income														2			—			1			3
Other operating expenses														(137	)		(25	)		(56	)		(218	)

Underwriting result													$	(839	)	$	(7	)		n/a		$	(902	)

Net investment income																	31			279			310

Allocated underwriting result ⁽¹⁾																$	24			n/a			n/a

Net realized and unrealized investment losses																				(34	)		(34	)
Interest expense																				(24	)		(24	)
Amortization of intangible assets																				(18	)		(18	)
Net foreign exchange gains																				9			9
Income tax expense																				(24	)		(24	)
Interest in losses of equity investments																				—			—

Net loss																				n/a		$	(683	)


Loss ratio ⁽²⁾		70.0	%		74.0	%		64.9	%		446.3	%		118.0	%
Acquisition ratio ⁽³⁾		24.8			25.0			24.0			0.3			21.4

Technical ratio ⁽⁴⁾		94.8	%		99.0	%		88.9	%		446.6	%		139.4	%
Other operating expense ratio ⁽⁵⁾														7.7

Combined ratio ⁽⁶⁾														147.1	%

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)


	For the six months ended June 30, 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	$	564		$	633		$	880		$	615		$	2,692		$	354		$	3		$	3,049

Net premiums written	$	564		$	621		$	811		$	550		$	2,546		$	349		$	2		$	2,897
Increase in unearned premiums		(73	)		(160	)		(98	)		(295	)		(626	)		(12	)		(1	)		(639	)

Net premiums earned	$	491		$	461		$	713		$	255		$	1,920		$	337		$	1		$	2,258
Losses and loss expenses and life policy benefits		(296	)		(387	)		(595	)		(140	)		(1,418	)		(299	)		—			(1,717	)
Acquisition costs		(137	)		(114	)		(146	)		(18	)		(415	)		(49	)		—			(464	)

Technical result	$	58		$	(40	)	$	(28	)	$	97		$	87		$	(11	)	$	1		$	77

Other income (loss)														2			1			(1	)		2
Other operating expenses														(160	)		(27	)		(101	)		(288	)

Underwriting result													$	(71	)	$	(37	)		n/a		$	(209	)

Net investment income																	37			311			348

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

Net realized and unrealized investment gains																				191			191
Interest expense																				(20	)		(20	)
Amortization of intangible assets																				(13	)		(13	)
Net foreign exchange gains																				15			15
Income tax expense																				(45	)		(45	)
Interest in earnings of equity investments																				4			4

Net income																				n/a		$	271


Loss ratio ⁽²⁾		60.2	%		84.0	%		83.4	%		54.6	%		73.9	%
Acquisition ratio ⁽³⁾		28.0			24.6			20.5			7.3			21.6

Technical ratio ⁽⁴⁾		88.2	%		108.6	%		103.9	%		61.9	%		95.5	%
Other operating expense ratio ⁽⁵⁾														8.3

Combined ratio ⁽⁶⁾														103.8	%

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Non-life segment


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


Net premiums written	$	857		$	1,262		$	611		$	804		$	939

Net premiums earned	$	905		$	881		$	982		$	1,128		$	931

Losses and loss expenses		(646	)		(1,463	)		(639	)		(601	)		(536	)
Acquisition costs		(203	)		(178	)		(213	)		(228	)		(219	)

Technical result	$	56		$	(760	)	$	130		$	299		$	176

Other income		—			1			2			2			1
Other operating expenses		(71	)		(66	)		(78	)		(81	)		(82	)

Underwriting result	$	(15	)	$	(825	)	$	54		$	220		$	95

Loss ratio ⁽²⁾		71.4	%		166.0	%		65.1	%		53.3	%		57.6	%
Acquisition ratio ⁽³⁾		22.4			20.3			21.6			20.2			23.4

Technical ratio ⁽⁴⁾		93.8	%		186.3	%		86.7	%		73.5	%		81.0	%
Other operating expense ratio ⁽⁵⁾		7.9			7.4			7.9			7.2			8.8

Combined ratio ⁽⁶⁾		101.7	%		193.7	%		94.6	%		80.7	%		89.8	%

(A)

Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended June 30, 2011, net premiums written and net premiums earned include foreign exchange impacts of $40.7 million and $41.5 million, respectively, compared to the three months ended June 30, 2010.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Non-life segment


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


Net premiums written	$	2,119		$	2,546		$	3,961		$	3,351

Net premiums earned	$	1,786		$	1,920		$	4,029		$	3,525

Losses and loss expenses		(2,109	)		(1,418	)		(2,657	)		(1,858	)
Acquisition costs		(381	)		(415	)		(856	)		(772	)

Technical result	$	(704	)	$	87		$	516		$	895

Other income		2			2			5			13
Other operating expenses		(137	)		(160	)		(317	)		(253	)

Underwriting result	$	(839	)	$	(71	)	$	204		$	655

Loss ratio ⁽²⁾		118.0	%		73.9	%		65.9	%		52.7	%
Acquisition ratio ⁽³⁾		21.4			21.6			21.3			21.9

Technical ratio ⁽⁴⁾		139.4	%		95.5	%		87.2	%		74.6	%
Other operating expense ratio ⁽⁵⁾		7.7			8.3			7.8			7.2

Combined ratio ⁽⁶⁾		147.1	%		103.8	%		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 six months ended June 30, 2011, net premiums written and net premiums earned include foreign exchange impacts of $15.3 million and $32.7 million, respectively, compared to the six months ended June 30, 2010.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

North America sub-segment


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


Net premiums written	$	242		$	338		$	196		$	267		$	207

Net premiums earned	$	261		$	259		$	260		$	288		$	223

Losses and loss expenses		(190	)		(174	)		(145	)		(137	)		(116	)
Acquisition costs		(63	)		(66	)		(71	)		(80	)		(69	)

Technical result	$	8		$	19		$	44		$	71		$	38

Loss ratio ⁽²⁾		72.8	%		67.0	%		55.9	%		47.5	%		52.2	%
Acquisition ratio ⁽³⁾		24.1			25.6			27.2			27.8			30.7

Technical ratio ⁽⁴⁾		96.9	%		92.6	%		83.1	%		75.3	%		82.9	%

Distribution of Net Premiums Written by Major Lines of Business:
Casualty		40	%		42	%		47	%		42	%		41	%
Property		19			17			17			29			30
Agriculture		23			14			11			11			2
Motor		8			10			12			10			10
Multiline		5			11			5			2			3
Credit/Surety		5			5			8			5			6
Other		—			1			—			1			8

		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 June 30, 2011, net premiums written and net premiums earned include foreign exchange impacts of $3.3 million and $3.4 million, respectively, compared to the three months ended June 30, 2010.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

North America sub-segment


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


Net premiums written	$	581		$	564		$	1,026		$	1,162

Net premiums earned	$	521		$	491		$	1,038		$	1,210

Losses and loss expenses		(365	)		(296	)		(577	)		(728	)
Acquisition costs		(129	)		(137	)		(288	)		(311	)

Technical result	$	27		$	58		$	173		$	171

Loss ratio ⁽²⁾		70.0	%		60.2	%		55.6	%		60.2	%
Acquisition ratio ⁽³⁾		24.8			28.0			27.8			25.7

Technical ratio ⁽⁴⁾		94.8	%		88.2	%		83.4	%		85.9	%

Distribution of Net Premiums Written by Major Lines of Business:
Casualty		41	%		40	%		42	%		37	%
Property		18			27			26			23
Agriculture		18			6			8			21
Motor		9			11			11			8
Multiline		8			7			5			4
Credit/Surety		5			6			6			5
Other		1			3			2			2

		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 six months ended June 30, 2011, net premiums written and net premiums earned include foreign exchange impacts of $9.4 million and $6.3 million, respectively, compared to the six months ended June 30, 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
	June 30, 2011 ^(A)			March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010


Net premiums written	$	121		$	317		$	118		$	158		$	186

Net premiums earned	$	193		$	181		$	228		$	225		$	231

Losses and loss expenses		(127	)		(150	)		(141	)		(174	)		(141	)
Acquisition costs		(53	)		(40	)		(57	)		(56	)		(61	)

Technical result	$	13		$	(9	)	$	30		$	(5	)	$	29

Loss ratio ⁽²⁾		65.9	%		82.8	%		61.9	%		77.1	%		61.1	%
Acquisition ratio ⁽³⁾		27.6			22.1			24.9			25.2			26.4

Technical ratio ⁽⁴⁾		93.5	%		104.9	%		86.8	%		102.3	%		87.5	%

Distribution of Net Premiums Written by Major Lines of Business:
Property		78	%		67	%		71	%		68	%		67	%
Motor		14			21			18			23			19
Casualty		8			12			11			9			14

Total		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 June 30, 2011, net premiums written and net premiums earned include foreign exchange impacts of $11.3 million and $12.7 million, respectively, compared to the three months ended June 30, 2010.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

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


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


Net premiums written	$	437		$	621		$	898		$	679

Net premiums earned	$	374		$	461		$	914		$	729

Losses and loss expenses		(277	)		(387	)		(702	)		(392	)
Acquisition costs		(93	)		(114	)		(227	)		(174	)

Technical result	$	4		$	(40	)	$	(15	)	$	163

Loss ratio ⁽²⁾		74.0	%		84.0	%		76.8	%		53.7	%
Acquisition ratio ⁽³⁾		25.0			24.6			24.9			23.8

Technical ratio ⁽⁴⁾		99.0	%		108.6	%		101.7	%		77.5	%

Distribution of Net Premiums Written by Major Lines of Business:
Property		70	%		65	%		66	%		67	%
Motor		19			22			22			22
Casualty		11			13			12			11

Total		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 six months ended June 30, 2011, net premiums written and net premiums earned include foreign exchange impacts of ($2.4) million and $7.9 million, respectively, compared to the six months ended June 30, 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
	June 30, 2011 ^(A)			March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010


Net premiums written	$	333		$	315		$	287		$	292		$	355

Net premiums earned	$	341		$	317		$	329		$	364		$	376

Losses and loss expenses		(206	)		(221	)		(191	)		(199	)		(292	)
Acquisition costs		(78	)		(80	)		(73	)		(74	)		(82	)

Technical result	$	57		$	16		$	65		$	91		$	2

Loss ratio ⁽²⁾		60.3	%		69.7	%		57.9	%		54.8	%		77.6	%
Acquisition ratio ⁽³⁾		22.9			25.3			22.2			20.2			21.9

Technical ratio ⁽⁴⁾		83.2	%		95.0	%		80.1	%		75.0	%		99.5	%

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

Total		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 June 30, 2011, net premiums written and net premiums earned include foreign exchange impacts of $16.3 million and $17.8 million, respectively, compared to the three months ended June 30, 2010.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

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


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


Net premiums written	$	648		$	811		$	1,391		$	1,113

Net premiums earned	$	658		$	713		$	1,405		$	1,116

Losses and loss expenses		(427	)		(595	)		(985	)		(732	)
Acquisition costs		(158	)		(146	)		(292	)		(254	)

Technical result	$	73		$	(28	)	$	128		$	130

Loss ratio ⁽²⁾		64.9	%		83.4	%		70.0	%		65.6	%
Acquisition ratio ⁽³⁾		24.0			20.5			20.8			22.7

Technical ratio ⁽⁴⁾		88.9	%		103.9	%		90.8	%		88.3	%

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

Total		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 six months ended June 30, 2011, net premiums written and net premiums earned include foreign exchange impacts of $2.7 million and $11.5 million, respectively, compared to the six months ended June 30, 2010.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Catastrophe sub-segment


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


Net premiums written	$	161		$	292		$	10		$	87		$	191

Net premiums earned	$	110		$	124		$	165		$	251		$	101

Losses and loss expenses		(123	)		(918	)		(162	)		(91	)		13
Acquisition costs		(9	)		8			(12	)		(18	)		(7	)

Technical result	$	(22	)	$	(786	)	$	(9	)	$	142		$	107

Loss ratio ⁽²⁾		111.7	%		743.0	%		98.0	%		36.4	%		(12.8	)%
Acquisition ratio ⁽³⁾		8.1			(6.7	)		7.3			7.2			6.3

Technical ratio ⁽⁴⁾		119.8	%		736.3	%		105.3	%		43.6	%		(6.5	)%

(A)

Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended June 30, 2011, net premiums written and net premiums earned include foreign exchange impacts of $9.8 million and $7.7 million, respectively, compared to the three months ended June 30, 2010.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Catastrophe sub-segment


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


Net premiums written	$	453		$	550		$	646		$	397

Net premiums earned	$	233		$	255		$	672		$	470

Losses and loss expenses		(1,040	)		(140	)		(393	)		(6	)
Acquisition costs		(1	)		(18	)		(49	)		(33	)

Technical result	$	(808	)	$	97		$	230		$	431

Loss ratio ⁽²⁾		446.3	%		54.6	%		58.5	%		1.3	%
Acquisition ratio ⁽³⁾		0.3			7.3			7.2			7.0

Technical ratio ⁽⁴⁾		446.6	%		61.9	%		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 six months ended June 30, 2011, net premiums written and net premiums earned include foreign exchange impacts of $5.5 million and $7.0 million, respectively, compared to the six months ended June 30, 2010.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Life segment


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


Net premiums written	$	195		$	206		$	210		$	183		$	167

Net premiums earned	$	201		$	184		$	222		$	184		$	173

Life policy benefits		(166	)		(145	)		(177	)		(147	)		(169	)
Acquisition costs		(26	)		(30	)		(34	)		(33	)		(25	)

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

Other income		—			—			—			—			1
Other operating expenses		(13	)		(12	)		(17	)		(11	)		(13	)

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

Net investment income		16			15			18			17			20

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

Distribution of Net Premiums Written by Major Lines of Business:
Mortality		72	%		76	%		56	%		67	%		79	%
Longevity		25			21			42			30			18
Health		3			3			2			3			3

Total		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 June 30, 2011, net premiums written and net premiums earned include foreign exchange impacts of $11.4 million and $11.8 million, respectively, compared to the three months ended June 30, 2010.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Life segment


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


Net premiums written	$	402		$	349		$	742		$	591

Net premiums earned	$	385		$	337		$	744		$	587

Life policy benefits		(311	)		(299	)		(624	)		(440	)
Acquisition costs		(56	)		(49	)		(116	)		(113	)

Technical result	$	18		$	(11	)	$	4		$	34

Other income		—			1			2			2
Other operating expenses		(25	)		(27	)		(57	)		(47	)

Underwriting result	$	(7	)	$	(37	)	$	(51	)	$	(11	)

Net investment income		31			37			71			62

Allocated underwriting result ⁽¹⁾	$	24		$	—		$	20		$	51

Distribution of Net Premiums Written by Major Lines of Business:
Mortality		74	%		80	%		70	%		80	%
Longevity		23			17			27			16
Health		3			3			3			4

Total		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 six months ended June 30, 2011, net premiums written and net premiums earned include foreign exchange impacts of $5.8 million and $7.2 million, respectively, compared to the six months ended June 30, 2010.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Corporate and Other


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


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

Other income (loss)		1			1			3			1			(1	)
Corporate expenses - acquisition related		(1	)		(2	)		(6	)		(6	)		(2	)
Corporate expenses - voluntary termination plan		—			—			(6	)		1			(34	)
Corporate expenses ⁽¹⁾		(25	)		(19	)		(22	)		(17	)		(26	)
Other operating expenses		(4	)		(5	)		(4	)		(4	)		(3	)

Net investment income		142			137			143			147			154

Net realized and unrealized investment gains (losses)		78			(112	)		(83	)		293			46
Interest expense		(12	)		(12	)		(12	)		(12	)		(13	)
Amortization of intangible assets		(9	)		(9	)		(9	)		(10	)		(8	)
Net foreign exchange gains (losses)		9			—			(8	)		(27	)		11
Income tax (expense) benefit		(50	)		26			(11	)		(72	)		(17	)
Interest in (losses) earnings of equity investments		(1	)		1			7			1			1

(1)

The Company’s corporate expenses for the three months ended June 30, 2010 include $7 million of corporate expenses related to Paris Re.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Corporate and Other


	For the six months ended						For the year ended
	June 30, 2011			June 30, 2010			December 31, 2010			December 31, 2009


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

Other income (loss)		1			(1	)		3			7
Corporate expenses - acquisition related		(4	)		(4	)		(16	)		(36	)
Corporate expenses - voluntary termination plan		—			(35	)		(41	)		—
Corporate expenses ⁽¹⁾		(43	)		(55	)		(94	)		(81	)
Other operating expenses		(9	)		(7	)		(15	)		(14	)

Net investment income		279			311			602			534

Net realized and unrealized investment (losses) gains		(34	)		191			402			591
Net realized gain on purchase of capital efficient notes		—			—			—			89
Interest expense		(24	)		(20	)		(44	)		(28	)
Amortization of intangible assets		(18	)		(13	)		(31	)		6
Net foreign exchange gains (losses)		9			15			(21	)		(1	)
Income tax expense		(24	)		(45	)		(129	)		(262	)
Interest in (losses) earnings of equity investments		—			4			13			16

(1)

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

PartnerRe Ltd.

Distribution of Premiums

(Unaudited)


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

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

		100	%		100	%		100	%		100	%		100	%


Distribution of Gross Premiums Written by Geography:
Europe		40	%		43	%		47	%		38	%		36	%
North America		36			36			32			39			36
Latin America, Caribbean and Africa		11			10			11			13			12
Asia, Australia and New Zealand		13			11			10			10			16

		100	%		100	%		100	%		100	%		100	%


Distribution of Gross Premiums Written by Production Source:
Broker		75	%		72	%		64	%		73	%		76	%
Direct		25			28			36			27			24

		100	%		100	%		100	%		100	%		100	%

PartnerRe Ltd.

Distribution of Premiums

(Unaudited)


	For the six months ended						For the year ended
	June 30, 2011			June 30, 2010			December 31, 2010			December 31, 2009


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

		100	%		100	%		100	%		100	%


Distribution of Gross Premiums Written by Geography:
Europe		42	%		44	%		43	%		41	%
North America		36			36			36			41
Latin America, Caribbean and Africa		10			9			11			10
Asia, Australia and New Zealand		12			11			10			8

		100	%		100	%		100	%		100	%


Distribution of Gross Premiums Written by Production Source:
Broker		73	%		75	%		73	%		72	%
Direct		27			25			27			28

		100	%		100	%		100	%		100	%

PartnerRe Ltd.

Distribution of Premiums

(Unaudited)


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


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

North America
Non-Proportional		25	%		47	%		18	%		27	%		32	%
Proportional		75			53			82			73			68

Total		100	%		100	%		100	%		100	%		100	%


Global (Non-U.S.) P&C
Non-Proportional		10	%		34	%		4	%		15	%		17	%
Proportional		90			66			96			85			83

Total		100	%		100	%		100	%		100	%		100	%


Global (Non-U.S.) Specialty
Non-Proportional		20	%		33	%		5	%		15	%		27	%
Proportional		80			67			95			85			73

Total		100	%		100	%		100	%		100	%		100	%


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

Total		100	%		100	%		100	%		100	%		100	%


Non-life total
Non-Proportional		35	%		52	%		10	%		28	%		42	%
Proportional		65			48			90			72			58

Total		100	%		100	%		100	%		100	%		100	%

PartnerRe Ltd.

Distribution of Premiums

(Unaudited)


	For the six months ended						For the year ended
	June 30, 2011			June 30, 2010			December 31, 2010			December 31, 2009


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

North America
Non-Proportional		38	%		41	%		33	%		29	%
Proportional		62			59			67			71

Total		100	%		100	%		100	%		100	%


Global (Non-U.S.) P&C
Non-Proportional		28	%		30	%		23	%		21	%
Proportional		72			70			77			79

Total		100	%		100	%		100	%		100	%


Global (Non-U.S.) Specialty
Non-Proportional		27	%		35	%		22	%		18	%
Proportional		73			65			78			82

Total		100	%		100	%		100	%		100	%


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

Total		100	%		100	%		100	%		100	%


Non-life total
Non-Proportional		45	%		50	%		38	%		32	%
Proportional		55			50			62			68

Total		100	%		100	%		100	%		100	%

PartnerRe Ltd.

Investment Portfolio ^(A)

(Expressed in millions of U.S. dollars)

(Unaudited)


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


Investments:
Fixed maturities
U.S. government	$	1,291		8	%	$	745		5	%	$	673		5	%	$	718		5	%	$	690		4	%	$	803		5	%
Government Sponsored Entities (GSEs)		184		1			216		2			233		2			352		2			399		3			453		3
U.S. municipalities		99		1			68		—			67		—			28		—			26		—			14		—
Non-U.S. sovereign government, supranational and government related		3,258		20			3,068		21			2,819		20			2,980		20			2,641		18			3,059		20
Corporates		5,830		37			6,199		42			6,144		43			6,617		44			6,787		46			6,631		43
Mortgage/asset-backed securities		3,745		23			2,963		20			2,889		20			3,075		20			3,014		20			3,183		21

Total fixed maturities		14,407		90			13,259		90			12,825		90			13,770		91			13,557		91			14,143		92
Short-term investments		216		2			81		1			49		—			89		—			107		1			137		1
Equities		995		6			1,053		7			1,072		8			1,027		7			886		6			796		5
Other invested assets		338		2			292		2			352		2			296		2			246		2			226		2

Total investments	$	15,956		100	%	$	14,685		100	%	$	14,298		100	%	$	15,182		100	%	$	14,796		100	%	$	15,302		100	%


Cash and cash equivalents		1,607					2,010					2,111					1,438					1,085					738
Total investments and cash	$	17,563				$	16,695				$	16,409				$	16,620				$	15,881				$	16,040

Maturity distribution:
One year or less	$	970		7	%	$	1,004		8	%	$	930		7	%	$	1,046		8	%	$	1,262		9	%	$	869		6	%
More than one year through five years		5,404		37			5,113		38			5,022		39			5,549		40			5,499		40			6,346		45
More than five years through ten years		3,831		26			3,613		27			3,418		27			3,624		26			3,346		25			3,343		23
More than ten years		673		4			647		5			615		5			565		4			543		4			539		4

Subtotal		10,878		74			10,377		78			9,985		78			10,784		78			10,650		78			11,097		78
Mortgage/asset-backed securities		3,745		26			2,963		22			2,889		22			3,075		22			3,014		22			3,183		22

Total	$	14,623		100	%	$	13,340		100	%	$	12,874		100	%	$	13,859		100	%	$	13,664		100	%	$	14,280		100	%


Credit quality by market value:
AAA		58	%				52	%				51	%				51	%				50	%				50	%
AA		7					8					9					9					9					10
A		19					21					22					23					24					24
BBB		10					12					11					11					11					12
Below Investment Grade/Unrated		6					7					7					6					6					4

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

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

(A)

The Funds Held - Directly Managed Portfolio is described separately on pages 34-35 and is not reflected here.

PartnerRe Ltd.

Distribution of Corporate Bonds

(Expressed in thousands of U.S. dollars)

(Unaudited)


	June 30, 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	$	1,402,302			24.1	%		8.0	%		0.8	%
Consumer noncyclical		739,075			12.7			4.2			0.2
Government guaranteed corporate debt		589,633			10.1			3.4			0.8
Communications		562,620			9.6			3.2			0.5
Utilities		445,147			7.6			2.5			0.1
Industrials		373,008			6.4			2.1			0.1
Energy		322,625			5.5			1.8			0.2
Catastrophe bonds		289,805			5.0			1.7			0.3
Consumer cyclical		283,438			4.9			1.6			0.2
Insurance		262,766			4.5			1.5			0.3
Longevity and mortality bonds		190,082			3.3			1.1			0.4
Materials		168,452			2.9			1.0			0.1
Technology		128,401			2.2			0.7			0.1
Real estate investment trusts		60,517			1.0			0.3			0.1
Diversified		12,542			0.2			0.1			—

Total Corporate bonds	$	5,830,413			100.0	%		33.2	%


Finance sector - Corporate bonds
Banks	$	608,230			10.4	%		3.5	%
Investment banking and brokerage		392,702			6.8			2.2
Financial services		186,718			3.2			1.1
Commercial and consumer finance		150,983			2.6			0.9
Other		63,669			1.1			0.3

Total finance sector - Corporate bonds	$	1,402,302			24.1	%		8.0	%


	AAA			AA			A			BBB			Non-Investment Grade/Unrated			Total
Credit quality of finance sector - Corporate bonds
Banks	$	52,256		$	148,494		$	350,524		$	46,098		$	10,858		$	608,230
Investment banking and brokerage		—			—			384,753			7,949			—			392,702
Financial services		19,187			127,264			36,512			3,755			—			186,718
Commercial and consumer finance		—			—			88,955			62,028			—			150,983
Other		—			14,920			14,050			26,999			7,700			63,669

Total finance sector - Corporate bonds	$	71,443		$	290,678		$	874,794		$	146,829		$	18,558		$	1,402,302


% of total		5	%		21	%		62	%		11	%		1	%		100	%

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)


	June 30, 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	$	138,816		19.3	%		0.8	%		0.1	%
Energy		97,833		13.6			0.6			0.1
Finance		89,834		12.5			0.5			0.1
Technology		78,939		11.0			0.5			0.1
Communications		76,221		10.6			0.4			0.1
Industrials		71,405		9.9			0.4			0.1
Consumer cyclical		57,173		8.0			0.3			—
Insurance		38,447		5.3			0.2			0.1
Materials		34,059		4.7			0.2			—
Utilities		23,977		3.3			0.1			—
Real estate investment trusts		9,899		1.4			0.1			—
Diversified		2,816		0.4			—			—


Total equities	$	719,419		100	%		4.1	%


Mutual funds and exchange traded funds (ETFs)
Funds holding fixed income securities		216,757					1.2
Funds and ETFs holding equities		58,737					0.4

Total equities	$	994,913					5.7	%

Concentration of investment risk

The single largest fund in funds and ETFs holding equities is an emerging markets fixed income fund, which accounts for 13.6% 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 17.3% of the Company’s total equities.

Excluding equity securities held in mutual funds and exchange traded funds, the single largest issuer accounts for 2.8% 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 June 30, 2011
	GNMA			GSEs			AAA			AA			A			BBB			Non- Investment Grade/Unrated			Total


U.S. Asset-Backed Securities	$	—		$	—		$	97,666		$	4,450		$	69,631		$	25,453		$	291,312		$	488,512
U.S. Collaterized Mortgage Obligations		12,187			93,063			16,824			—			—			—			79,847			201,921
U.S. Mortgage Backed Securities (MBS)		387,426			2,136,484			—			—			—			—			—			2,523,910
U.S. Commercial Mortgage Backed Securities (CMBS)		—			—			47,008			—			16,391			2,513			3,334			69,246
U.S. MBS Interest Only		19,241			6,965			—			—			—			—			—			26,206

	$	418,854		$	2,236,512		$	161,498		$	4,450		$	86,022		$	27,966		$	374,493		$	3,309,795

Non-U.S. Asset-Backed Securities	$	—		$	—		$	118,022		$	13,776		$	35,579		$	—		$	—		$	167,377
Non-U.S. Collaterized Mortgage Obligations		—			—			226,465			14,478			—			4,322			1,702			246,967
Non-U.S. Commercial Mortgage Backed Securities (CMBS)		—			—			20,465			—			—			—			—			20,465

	$	—		$	—		$	364,952		$	28,254		$	35,579		$	4,322		$	1,702		$	434,809


Total mortgage/asset-backed securities	$	418,854		$	2,236,512		$	526,450		$	32,704		$	121,601		$	32,288		$	376,195		$	3,744,604


Corporate Securities		—			183,675			—			—			—			—			—			183,675


Total	$	418,854		$	2,420,187		$	526,450		$	32,704		$	121,601		$	32,288		$	376,195		$	3,928,279


% of total		11	%		62	%		13	%		1	%		3	%		1	%		9	%		100	%

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


	June 30, 2011
	Investments		Fair Value of Derivatives			Carrying Value			Net Notional Amount of Derivatives			Total Net Exposures ⁽¹⁾
Private Markets Investments
Principal Finance - Investments	$	173,948	$	—		$	173,948		$	—		$	173,948
Principal Finance - Derivative Exposure Assumed		—		(11,858	)		(11,858	)		176,044			164,186
Insurance-Linked Securities		—		(14,852	)		(14,852	)		95,848			80,996
Commodities Futures		—		(1,516	)		(1,516	)		50,884			49,368
Strategic Investments		188,019		—			188,019			—			188,019

Total other invested assets - Private Markets Exposure Assumed		361,967		(28,226	)		333,741			322,776			656,517

Other Credit Derivatives - Exposure Assumed		—		462			462			5,000			5,462
Other Credit Derivatives - Protection Purchased		—		(2,158	)		(2,158	)		(109,890	)		(112,048	)

Other ⁽²⁾		8,077		(1,749	)		6,328


Total other invested assets	$	370,044	$	(31,671	)	$	338,373

(1)

The total net exposures originated in Private Markets are $1,746 million. In addition to the net exposures listed above of $656 million, the Company has the following other net exposures originated in Private Markets:

•

Principal Finance: $511 million of assets listed under Investments - Fixed Maturities and $7 million listed under Investments - Equities for a total exposure of $856 million.

•

Insurance-Linked Securities: $480 million of bonds listed under Investments - Fixed Maturities and $79 million of limits on transactions that use reinsurance accounting for a total exposure of $640 million.

•

Strategic Investments: $12 million of assets listed under Investments - Fixed Maturities and $1 million of assets listed under Cash and Other Assets for a total exposure of $201 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)


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

Investments:
Fixed maturities
U.S. government	$	77		7	%	$	76		6	%	$	95		6	%	$	100		6	%	$	98		6	%	$	119		6	%
Government Sponsored Entities (GSEs)		154		13			155		13			193		12			202		11			215		13			180		10
U.S. municipalities		—		—			—		—			—		—			—		—			—		—			1		—
Non-U.S. sovereign government, supranational and government related		313		27			360		29			385		25			438		25			440		26			548		30
Corporates		551		47			571		47			799		52			929		54			864		51			900		49
Mortgage/asset-backed securities		—		—			—		—			12		1			12		1			13		1			18		1

Total fixed maturities		1,095		94			1,162		95			1,484		96			1,681		97			1,630		97			1,766		96
Short-term investments		42		4			44		3			38		3			18		1			29		2			28		2
Other invested assets		22		2			23		2			21		1			31		2			27		1			39		2

Total investments	$	1,159		100	%	$	1,229		100	%	$	1,543		100	%	$	1,730		100	%	$	1,686		100	%	$	1,833		100	%


Cash and cash equivalents		149					111					129					46					51					146
Total investments and cash	$	1,308				$	1,340				$	1,672				$	1,776				$	1,737				$	1,979

Accrued investment income		15					18					20					26					22					25
Other funds held assets/liabilities		57					156					80					117					116					121

Total funds held - directly managed	$	1,380				$	1,514				$	1,772				$	1,919				$	1,875				$	2,125


Maturity distribution:
One year or less	$	223		20	%	$	241		20	%	$	289		19	%	$	298		17	%	$	334		20	%	$	360		20	%
More than one year through five years		621		55			647		54			814		53			910		54			833		50			903		50
More than five years through ten years		266		23			288		24			376		25			427		25			422		26			423		24
More than ten years		27		2			30		2			31		2			52		3			57		3			90		5

Subtotal		1,137		100			1,206		100			1,510		99			1,687		99			1,646		99			1,776		99
Mortgage/asset-backed securities		—		—			—		—			12		1			12		1			13		1			18		1

Total	$	1,137		100	%	$	1,206		100	%	$	1,522		100	%	$	1,699		100	%	$	1,659		100	%	$	1,794		100	%


Credit quality by market value:
AAA		43	%				42	%				45	%				41	%				43	%				38	%
AA		30					30					27					27					26					26
A		23					24					24					27					26					29
BBB		4					4					4					4					4					5
Below Investment Grade/Unrated		—					—					—					1					1					2

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


Expected average duration		3.1 Yrs					3.1 Yrs					3.1 Yrs					3.2 Yrs					3.2 Yrs					3.0 Yrs
Average yield to maturity at market		2.1	%				2.4	%				2.4	%				2.1	%				2.3	%				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)


	June 30, 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	$	275,474			50.0	%		21.1	%		1.3	%
Consumer noncyclical		72,057			13.1			5.5			0.7
Energy		41,029			7.4			3.1			0.7
Utilities		38,926			7.1			3.0			0.4
Government guaranteed corporate debt		32,780			6.0			2.5			0.9
Communications		27,930			5.1			2.1			0.6
Materials		20,365			3.7			1.6			0.4
Industrials		15,948			2.9			1.2			0.4
Consumer cyclical		12,538			2.3			1.0			0.6
Technology		8,319			1.5			0.6			0.3
Real estate investment trusts		3,398			0.6			0.3			0.3
Insurance		1,880			0.3			0.2			0.1

Total Corporate bonds	$	550,644			100.0	%		42.2	%


Finance sector - Corporate bonds
Banks	$	155,055			28.2	%		11.9	%
Investment banking and brokerage		41,032			7.4			3.1
Financial services		34,489			6.3			2.6
Commercial and consumer finance		28,622			5.2			2.2
Other		16,276			2.9			1.3

Total finance sector - Corporate bonds	$	275,474			50.0	%		21.1	%


	AAA			AA			A			BBB			Total
Credit quality of finance sector - Corporate bonds
Banks	$	40,676		$	78,030		$	34,951		$	1,398		$	155,055
Investment banking and brokerage		25,811			—			15,221			—			41,032
Financial services		7,347			18,879			8,263			—			34,489
Commercial and consumer finance		10,852			4,760			8,916			4,094			28,622
Other		11,437			—			4,140			699			16,276

Total finance sector - Corporate bonds	$	96,123		$	101,669		$	71,491		$	6,191		$	275,474


% of total		35	%		37	%		26	%		2	%		100	%

Concentration of investment risk

The Top 10 corporate bond issuers account for 21.6% of the Company’s total corporate bonds within the Funds Held - Directly Managed Portfolio. The single largest issuer accounts for 3.1% 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 Gains (Losses)

(Expressed in thousands of U.S. dollars)

(Unaudited)


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


Fixed maturities	$	141,535		$	135,947		$	136,724		$	142,056		$	147,871
Short-term investments, cash and cash equivalents		1,142			1,243			2,358			1,589			1,005
Equities		6,545			4,190			5,441			6,097			5,697
Funds held and other		11,295			12,590			14,535			11,971			15,506
Funds held - directly managed		8,635			8,168			13,596			11,463			14,565
Investment expenses		(10,824	)		(10,505	)		(11,850	)		(8,774	)		(10,190	)

Net investment income ⁽¹⁾	$	158,328		$	151,633		$	160,804		$	164,402		$	174,454


Net realized investment gains on fixed maturities and short-term investments	$	13,007		$	7,434		$	66,432		$	56,290		$	34,622
Net realized investment gains on equities		26,219			37,031			6,943			14,592			10,445
Net realized (losses) gains on other invested assets		(63,269	)		12,244			(6,259	)		(34,738	)		(29,285	)
Change in net unrealized (losses) gains on other invested assets		(7,253	)		(37,453	)		46,092			5,392			(24,784	)
Change in net unrealized investment gains (losses) on fixed maturities		130,907			(140,228	)		(254,361	)		134,467			165,665
Change in net unrealized investment gains (losses) on short-term investments		194			(641	)		(140	)		324			7
Change in net unrealized investment (losses) gains on equities		(30,197	)		16,118			86,373			79,650			(126,610	)
Net other realized and unrealized investment gains (losses)		23			1			(3	)		10,852			(4,492	)
Net realized and unrealized investment gains (losses) on funds held - directly managed		8,568			(6,705	)		(28,278	)		26,335			20,478

Net realized and unrealized investment gains (losses)	$	78,199		$	(112,199	)	$	(83,201	)	$	293,164		$	46,046

(1)

Comparisons of net investment income between periods include the impact of foreign exchange variances. For the three months ended June 30, 2011, net investment income includes foreign exchange impacts of $3.6 million compared to the three months ended June 30, 2010.

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 six months ended						For the year ended
	June 30, 2011			June 30, 2010			December 31, 2010			December 31, 2009


Fixed maturities	$	277,482		$	301,478		$	580,258		$	559,330
Short-term investments, cash and cash equivalents		2,385			4,594			8,541			11,799
Equities		10,735			9,256			20,794			13,861
Funds held and other		23,885			26,288			52,794			32,793
Funds held - directly managed		16,804			26,716			51,775			17,766
Investment expenses		(21,329	)		(20,756	)		(41,380	)		(39,478	)

Net investment income ⁽²⁾	$	309,962		$	347,576		$	672,782		$	596,071


Net realized investment gains on fixed maturities and short-term investments	$	20,441		$	50,704		$	173,426		$	105,249
Net realized investment gains (losses) on equities ⁽¹⁾		63,250			23,201			44,736			(45,258	)
Net realized losses on other invested assets		(51,025	)		(27,571	)		(68,568	)		(35,426	)
Change in net unrealized (losses) gains on other invested assets		(44,707	)		(47,742	)		3,742			58,196
Change in net unrealized investment (losses) gains on fixed maturities		(9,321	)		264,762			144,868			320,934
Change in net unrealized investment (losses) gains on short-term investments		(446	)		(2,418	)		(2,234	)		2,010
Change in net unrealized investment (losses) gains on equities		(14,079	)		(101,198	)		64,825			185,925
Net other realized and unrealized investment gains		24			2,485			13,335			1,777
Net realized and unrealized investment gains (losses) on funds held - directly managed		1,863			29,296			27,352			(1,700	)

Net realized and unrealized investment (losses) gains	$	(34,000	)	$	191,519		$	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 six months ended June 30, 2011, net investment income includes foreign exchange impacts of $0.4 million compared to the six months ended June 30, 2010.

PartnerRe Ltd.

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

Funds Held - Directly Managed Portfolio

(Expressed in thousands of U.S. dollars)

(Unaudited)


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


Fixed maturities	$	8,130		$	7,950		$	11,099		$	11,477		$	12,281
Short-term investments, cash and cash equivalents		380			178			19			84			581
Other		326			329			3,055			666			2,134
Investment expenses		(201	)		(289	)		(577	)		(764	)		(431	)

Net investment income	$	8,635		$	8,168		$	13,596		$	11,463		$	14,565


Net realized investment gains (losses) on fixed maturities and short-term investments	$	471		$	5,273		$	1,517		$	1,575		$	(1,357	)

Net realized investment gains of equities		2			—			539			78			—
Change in net unrealized investment gains (losses) on fixed maturities and short-term investments		10,756			(12,250	)		(28,714	)		24,118			19,988
Change in net unrealized investment (losses) gains on equities		—			—			(534	)		64			—
Net other realized and unrealized investment (losses) gains		(2,661	)		272			(1,086	)		500			1,847

Net realized and unrealized investment gains (losses) on funds held - directly managed	$	8,568		$	(6,705	)	$	(28,278	)	$	26,335		$	20,478

PartnerRe Ltd.

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

Funds Held - Directly Managed Portfolio

(Expressed in thousands of U.S. dollars)

(Unaudited)


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


Fixed maturities	$	16,081		$	23,624		$	46,200		$	10,956
Short-term investments, cash and cash equivalents		558			1,504			1,607			287
Other		655			2,357			6,078			6,934
Investment expenses		(490	)		(769	)		(2,110	)		(411	)

Net investment income	$	16,804		$	26,716		$	51,775		$	17,766


Net realized investment gains (losses) on fixed maturities and short-term investments	$	5,745		$	(2,051	)	$	1,041		$	(2,200	)

Net realized investment gains of equities		2			5			622			—
Change in net unrealized investment (losses) gains on fixed maturities and short-term investments		(1,494	)		31,266			26,670			1,920
Change in net unrealized investment losses on equities		—			(99	)		(569	)		(35	)
Net other realized and unrealized investment (losses) gains		(2,390	)		175			(412	)		(1,385	)

Net realized and unrealized investment gains (losses) on funds held - directly managed	$	1,863		$	29,296		$	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
	June 30, 2011			March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010


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

Gross liability at beginning of period	$	11,887,316		$	10,666,604		$	10,705,562		$	10,342,589		$	10,930,486
Reinsurance recoverable at beginning of period		(383,446	)		(348,747	)		(352,087	)		(356,883	)		(345,464	)

Net liability at beginning of period		11,503,870			10,317,857			10,353,475			9,985,706			10,585,022

Net incurred losses related to:
Current year		809,445			1,604,208			768,522			738,758			656,861
Prior years		(161,022	)		(141,901	)		(127,929	)		(136,444	)		(120,680	)

		648,423			1,462,307			640,593			602,314			536,181

Change in reserve agreement ⁽¹⁾		(27,705	)		(367	)		(6,213	)		(34,803	)		(35,247	)

Net losses paid		(616,941	)		(525,159	)		(621,330	)		(630,910	)		(761,549	)

Effects of foreign exchange rate changes		130,043			249,232			(48,668	)		431,168			(338,701	)


Net liability at end of period		11,637,690			11,503,870			10,317,857			10,353,475			9,985,706
Reinsurance recoverable at end of period		378,581			383,446			348,747			352,087			356,883

Gross liability at end of period	$	12,016,271		$	11,887,316		$	10,666,604		$	10,705,562		$	10,342,589


Breakdown of gross liability at end of period:
Case reserves	$	5,093,142		$	4,971,016		$	4,652,281		$	4,667,556		$	4,371,226
Additional case reserves		1,284,603			477,079			326,721			331,446			325,670
Incurred but not reported reserves		5,638,526			6,439,221			5,687,602			5,706,560			5,645,693

Gross liability at end of period	$	12,016,271		$	11,887,316		$	10,666,604		$	10,705,562		$	10,342,589


Breakdown of gross liability at end of period by Non-life sub-segment:
North America	$	3,293,224		$	3,287,790		$	3,211,622		$	3,205,491		$	3,259,118
Global (Non-U.S.) P&C		2,911,178			2,970,488			2,804,937			2,917,114			2,682,126
Global (Non-U.S.) Specialty		3,970,089			3,907,487			3,781,341			3,820,469			3,681,610
Catastrophe		1,841,780			1,721,551			868,704			762,488			719,735

Gross liability at end of period	$	12,016,271		$	11,887,316		$	10,666,604		$	10,705,562		$	10,342,589


Unrecognized time value of non-life reserves	$	968,950		$	1,072,236		$	949,210		$	778,529		$	860,178

Non-life paid loss ratio data:
Non-life paid losses to incurred losses ratio		95.1	%		35.9	%		97.0	%		104.7	%		142.0	%
Non-life paid losses to net premiums earned ratio		68.1	%		59.6	%		63.3	%		55.8	%		81.8	%

(1)

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

PartnerRe Ltd.

Analysis of Unpaid Losses and Loss Expenses

(Expressed in thousands of U.S. dollars)

(Unaudited)


	As at and for the six months ended						As at and for the year ended
	June 30, 2011			June 30, 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		$	10,811,483		$	10,811,483		$	7,510,666
Reinsurance recoverable at beginning of period		(348,747	)		(336,352	)		(336,352	)		(125,215	)

Net liability at beginning of period		10,317,857			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		2,413,653			1,630,594			3,137,874			2,340,768
Prior years		(302,923	)		(213,510	)		(477,883	)		(485,809	)

		2,110,730			1,417,084			2,659,991			1,854,959

Change in reserve agreement ⁽¹⁾		(28,072	)		(25,767	)		(66,783	)		(32,027	)

Net losses paid		(1,142,100	)		(1,326,778	)		(2,579,018	)		(2,043,878	)

Effects of foreign exchange rate changes		379,275			(553,964	)		(171,464	)		134,371


Net liability at end of period		11,637,690			9,985,706			10,317,857			10,475,131
Reinsurance recoverable at end of period		378,581			356,883			348,747			336,352

Gross liability at end of period	$	12,016,271		$	10,342,589		$	10,666,604		$	10,811,483


Breakdown of gross liability at end of period:
Case reserves	$	5,093,142		$	4,371,226		$	4,652,281		$	4,817,765
Additional case reserves		1,284,603			325,670			326,721			274,360
Incurred but not reported reserves		5,638,526			5,645,693			5,687,602			5,719,358

Gross liability at end of period	$	12,016,271		$	10,342,589		$	10,666,604		$	10,811,483


Breakdown of gross liability at end of period by Non-life sub-segment:
North America	$	3,293,224		$	3,259,118		$	3,211,622		$	3,355,316
Global (Non-U.S.) P&C		2,911,178			2,682,126			2,804,937			2,937,078
Global (Non-U.S.) Specialty		3,970,089			3,681,610			3,781,341			3,798,025
Catastrophe		1,841,780			719,735			868,704			721,064

Gross liability at end of period	$	12,016,271		$	10,342,589		$	10,666,604		$	10,811,483


Unrecognized time value of non-life reserves	$	968,950		$	860,178		$	949,210		$	1,190,323

Non-life paid loss ratio data:
Non-life paid losses to incurred losses ratio		54.1	%		93.6	%		97.0	%		110.2	%
Non-life paid losses to net premiums earned ratio		63.9	%		69.1	%		63.9	%		57.9	%

(1)

The change in the reserve agreement is due to favorable 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
	June 30, 2011			March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010


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

Gross liability at beginning of period	$	1,670,768		$	1,750,410		$	1,735,930		$	1,566,899		$	1,613,662
Reinsurance recoverable at beginning of period		(11,120	)		(14,739	)		(15,054	)		(13,597	)		(15,844	)

Net liability at beginning of period		1,659,648			1,735,671			1,720,876			1,553,302			1,597,818

Net incurred losses related to:
Current year		163,884			148,623			186,646			142,599			139,989
Prior years		2,216			(3,713	)		(9,468	)		3,966			28,461

		166,100			144,910			177,178			146,565			168,450

Net losses paid ⁽¹⁾		(130,994	)		(291,973	)		(133,299	)		(91,329	)		(139,295	)

Effects of foreign exchange rate changes		19,802			71,040			(29,084	)		112,338			(73,671	)


Net liability at end of period		1,714,556			1,659,648			1,735,671			1,720,876			1,553,302
Reinsurance recoverable at end of period		11,624			11,120			14,739			15,054			13,597

Gross liability at end of period	$	1,726,180		$	1,670,768		$	1,750,410		$	1,735,930		$	1,566,899

(1)

Net losses paid for the three months ended March 31, 2011 includes an approximate $131 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.

Analysis of Policy Benefits for Life and Annuity Contracts

(Expressed in thousands of U.S. dollars)

(Unaudited)


	As at and for the six months ended						As at and for the year ended
	June 30, 2011			June 30, 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		$	1,615,193		$	1,615,193		$	1,432,015
Reinsurance recoverable at beginning of period		(14,739	)		(20,465	)		(20,465	)		(24,102	)

Net liability at beginning of period		1,735,671			1,594,728			1,594,728			1,407,913

Net incurred losses related to:
Current year		312,507			282,550			611,795			455,770
Prior years		(1,497	)		17,334			11,832			(15,433	)

		311,010			299,884			623,627			440,337
Net losses paid ⁽¹⁾		(422,967	)		(195,316	)		(419,944	)		(323,088	)

Effects of foreign exchange rate changes		90,842			(145,994	)		(62,740	)		69,566


Net liability at end of period		1,714,556			1,553,302			1,735,671			1,594,728
Reinsurance recoverable at end of period		11,624			13,597			14,739			20,465

Gross liability at end of period	$	1,726,180		$	1,566,899		$	1,750,410		$	1,615,193

(1)

Net losses paid for the six months ended June 30, 2011 includes an approximate $131 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
	June 30, 2011			March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010


Prior year net favorable (adverse) reserve development:

Non-life segment:
North America	$	54,513		$	39,720		$	21,451		$	68,009		$	53,003
Global (Non-U.S.) P&C		22,228			32,454			34,867			3,877			25,310
Global (Non-U.S.) Specialty		57,847			34,623			56,760			66,741			31,845
Catastrophe		26,434			35,104			14,851			(2,183	)		10,522

Total Non-life net prior year reserve development	$	161,022		$	141,901		$	127,929		$	136,444		$	120,680


Non-life segment:
Net prior year reserve development due to changes in premiums	$	2,424		$	(28,314	)	$	7,470		$	(8,868	)	$	(113	)
Net prior year reserve development due to all other factors ⁽²⁾		158,598			170,215			120,459			145,312			120,793

Total Non-life net prior year reserve development	$	161,022		$	141,901		$	127,929		$	136,444		$	120,680


Life segment:
Net prior year reserve development due to GMDB ⁽¹⁾	$	(214	)	$	10,967		$	15,767		$	(556	)	$	(8,677	)
Net prior year reserve development due to all other factors ⁽²⁾		(2,002	)		(7,254	)		(6,299	)		(3,410	)		(19,784	)

Total Life net prior year reserve development	$	(2,216	)	$	3,713		$	9,468		$	(3,966	)	$	(28,461	)

(1)

The guaranteed minimum death benefit (GMDB) reserves are sensitive to volatility in certain referenced global equity markets. At June 30, 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 $3.3 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.

Reserve Development

(Expressed in thousands of U.S. dollars)

(Unaudited)


	For the six months ended						For the year ended
	June 30, 2011			June 30, 2010			December 31, 2010			December 31, 2009


Prior year net favorable (adverse) reserve development:

Non-life segment:
North America	$	94,233		$	76,320		$	165,780		$	177,571
Global (Non-U.S.) P&C		54,682			58,795			97,539			151,456
Global (Non-U.S.) Specialty		92,470			47,431			170,931			107,632
Catastrophe		61,538			30,964			43,633			49,150

Total Non-life net prior year reserve development	$	302,923		$	213,510		$	477,883		$	485,809


Non-life segment:
Net prior year reserve development due to changes in premiums	$	(25,890	)	$	(6,111	)	$	(7,509	)	$	8,925
Net prior year reserve development due to all other factors ⁽²⁾		328,813			219,621			485,392			476,884

Total Non-life net prior year reserve development	$	302,923		$	213,510		$	477,883		$	485,809


Life segment:
Net prior year reserve development due to GMDB ⁽¹⁾	$	10,752		$	1,514		$	16,725		$	16,488
Net prior year reserve development due to all other factors ⁽²⁾		(9,255	)		(18,848	)		(28,557	)		(1,055	)

Total Life net prior year reserve development	$	1,497		$	(17,334	)	$	(11,832	)	$	15,433

(1)

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


Reconciliation of GAAP and non-GAAP measures:

Annualized return on beginning diluted book value per common share ⁽¹⁾ calculated with net income (loss) per share available to common shareholders		7.2	%		(51.2	)%		3.1	%		32.0	%		11.0	%
Less:
Annualized net realized and unrealized investment gains (losses), net of tax, on beginning diluted book value per common share ⁽¹⁾		2.5			(5.6	)		(4.6	)		14.4			1.8

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

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


Annualized operating return on beginning diluted book value per common share ⁽¹⁾		4.2	%		(46.1	)%		6.3	%		18.7	%		8.5	%


Net income (loss)	$	124,185		$	(806,956	)	$	57,035		$	524,937		$	190,927

Less:
Net realized and unrealized investment gains (losses), net of tax		40,954			(88,401	)		(71,793	)		232,981			29,683
Net foreign exchange gains (losses), net of tax		9,069			7,321			14,260			(19,751	)		9,712
Interest in (losses) earnings of equity investments, net of tax		(1,622	)		1,065			7,155			1,468			1,076
Dividends to preferred shareholders		8,631			8,631			8,631			8,631			8,631

Operating earnings (loss) available to common shareholders	$	67,153		$	(735,572	)	$	98,782		$	301,608		$	141,825


Per diluted share:
Net income (loss)	$	1.69		$	(11.99	)	$	0.65		$	6.76		$	2.31
Less:
Net realized and unrealized investment gains (losses), net of tax		0.60			(1.30	)		(0.96	)		3.05			0.38
Net foreign exchange gains (losses), net of tax		0.13			0.11			0.19			(0.26	)		0.12
Interest in (losses) earnings of equity investments, net of tax		(0.02	)		0.02			0.09			0.02			0.01

Operating earnings (loss)⁽²⁾	$	0.98		$	(10.82	)	$	1.33		$	3.95		$	1.80

(1)

Excluding preferred shares of $520,000 as at January 1, 2011 and 2010.

(2)

See page 54 for further analysis of Paris Re acquisition related expenses.

PartnerRe Ltd.

Reconciliation of GAAP and non-GAAP measures

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

(Unaudited)


	For the six months ended						For the year ended
	June 30, 2011			June 30, 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 calculated with net (loss) income⁽¹⁾ per share available to common shareholders		(22.0	)%		7.4	%		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⁾		(1.5	)		4.1			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, net of tax, on beginning diluted book value per common share ⁽¹⁾		0.5			0.5			0.2			—

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


Annualized operating return on beginning diluted book value per common share ⁽¹⁾		(21.0	)%		2.7	%		7.4	%		22.3	%


Net (loss) income	$	(682,771	)	$	270,581		$	852,552		$	1,536,854

Less:
Net realized and unrealized investment (losses) gains, net of tax		(47,447	)		140,274			301,462			497,031
Net realized gain on purchase of capital efficient notes, net of tax		—			—			—			56,955
Net foreign exchange gains, net of tax		16,390			18,338			12,847			1,442
Interest in (losses) earnings of equity investments, net of tax		(558	)		3,289			11,911			16,197
Dividends to preferred shareholders		17,263			17,263			34,525			34,525

Operating (loss) earnings available to common shareholders	$	(668,419	)	$	91,417		$	491,807		$	930,704


Per diluted share:
Net (loss) income	$	(10.32	)	$	3.13		$	10.46		$	23.51
Less:
Net realized and unrealized investment (losses) gains, net of tax		(0.70	)		1.73			3.86			7.78
Net realized gain on purchase of capital efficient notes, net of tax		—			—			—			0.89
Net foreign exchange gains, net of tax		0.24			0.23			0.16			0.02
Interest in (losses) earnings of equity investments, net of tax		—			0.04			0.15			0.25

Operating (loss) earnings ^(A) (2)	$	(9.86	)	$	1.13		$	6.29		$	14.57

(1)

Excluding preferred shares of $520,000 as at January 1, 2011, 2010 and 2009.

(2)

See page 55 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.

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 six months ended			For the year ended
	December 31, 2010			September 30, 2010			June 30, 2010			June 30, 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	%		3.1	%		7.1	%		22.3	%
Less:
Impact of excluding net foreign exchange gains (losses), 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	%		2.7	%		7.4	%		22.3	%


Operating earnings available to common shareholders - previously published	$	113,042		$	281,857		$	151,537		$	109,755		$	504,654		$	932,146
Less:
Net foreign exchange (losses) gains		(8,260	)		(27,074	)		11,021			14,648			(20,686	)		(1,464	)
Tax benefit (expense) on net foreign exchange losses (gains)		22,520			7,323			(1,309	)		3,690			33,533			2,906

Net foreign exchange gains (losses), net of tax		14,260			(19,751	)		9,712			18,338			12,847			1,442


Operating earnings available to common shareholders - redefined	$	98,782		$	301,608		$	141,825		$	91,417		$	491,807		$	930,704


Per diluted share:
Operating earnings - previously published	$	1.52		$	3.69		$	1.92		$	1.35		$	6.45		$	14.59
Less:
Net foreign exchange (losses) gains		(0.11	)		(0.35	)		0.14			0.18			(0.27	)		(0.02	)
Tax benefit (expense) on net foreign exchange (losses) gains		0.30			0.09			(0.02	)		0.04			0.43			0.04

Net foreign exchange gains (losses), net of tax		0.19			(0.26	)		0.12			0.22			0.16			0.02


Operating earnings - redefined	$	1.33		$	3.95		$	1.80		$	1.13		$	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)


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


Reconciliation of GAAP and non-GAAP measures:

Shareholders’ equity	$	6,632,044	$	6,174,833	$	7,206,919	$	7,582,293	$	7,071,242	$	7,645,727
Less:
Preferred shares, aggregate liquidation		893,750		520,000		520,000		520,000		520,000		520,000


Common shareholders’ equity		5,738,294		5,654,833		6,686,919		7,062,293		6,551,242		7,125,727

Less:
Net unrealized gains on fixed income securities and funds held - directly managed, net of tax		350,653		242,193		364,032		576,521		443,373		234,153


Book value excluding net unrealized gains or losses on fixed income securities and funds held - directly managed, net of tax	$	5,387,641	$	5,412,640	$	6,322,887	$	6,485,772	$	6,107,869	$	6,891,574


Divided by:
Number of common and common share equivalents outstanding		68,552.0		68,542.4		71,312.3		75,771.5		76,780.8		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	$	78.59	$	78.97	$	88.66	$	85.60	$	79.55	$	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)


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


Total shareholders’ equity	$	6,632,044		$	6,174,833		$	7,206,919		$	7,582,293		$	7,071,242		$	7,645,727
Less: preferred shares		(893,750	)		(520,000	)		(520,000	)		(520,000	)		(520,000	)		(520,000	)

Common shareholders’ equity	$	5,738,294		$	5,654,833		$	6,686,919		$	7,062,293		$	6,551,242		$	7,125,727

Basic common shares outstanding		67,737.8			67,439.6			69,986.2			74,581.4			75,349.9			82,580.7


Basic book value per common share	$	84.71		$	83.85		$	95.55		$	94.69		$	86.94		$	86.29


Diluted book value per common share

Common shareholders’ equity	$	5,738,294		$	5,654,833		$	6,686,919		$	7,062,293		$	6,551,242		$	7,125,727

Basic common shares outstanding		67,737.8			67,439.6			69,986.2			74,581.4			75,349.9			82,580.7
Add: Stock options and other		2,329.0			2,769.2			3,293.4			2,977.0			3,022.4			3,331.7
Add: Restricted stock units		647.6			825.6			940.4			977.2			1,215.6			1,189.1
Less: Stock options and other bought back via treasury stock method		(2,162.4	)		(2,492.0	)		(2,907.7	)		(2,764.1	)		(2,807.1	)		(2,781.8	)

Diluted common and common share equivalents outstanding		68,552.0			68,542.4			71,312.3			75,771.5			76,780.8			84,319.7


Diluted book value per common share	$	83.71		$	82.50		$	93.77		$	93.21		$	85.32		$	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 contracts, 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 June 30, 2011						As of and for the three months ended June 30, 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	$	5,655		$	82.50		$	6,869		$	84.12

Technical result		64			0.93			156			1.98
Other operating expenses		(114	)		(1.66	)		(160	)		(2.03	)
Net investment income		158			2.31			174			2.21
Amortization of intangible assets		(9	)		(0.13	)		(8	)		(0.10	)
Other, net		(10	)		(0.15	)		(10	)		(0.13	)
Operating income tax expense		(13	)		(0.19	)		(1	)		(0.02	)
Preferred dividends		(9	)		(0.13	)		(9	)		(0.11	)

Operating earnings		67			0.98			142			1.80

Net realized and unrealized investment gains, net of tax		41			0.60			29			0.38
Net foreign exchange gains, net of tax		9			0.13			10			0.12
Interest in (losses) earnings of equity investments, net of tax		(1	)		(0.02	)		1			0.01

Net income available to common shareholders		116			1.69			182			2.31

Common share dividends		(41	)		(0.60	)		(39	)		(0.50	)
Change in currency translation adjustment		6			0.09			(105	)		(1.34	)
Issuance (repurchase) of common shares, net		16			(0.13	)		(354	)		0.50
Preferred shares issuance costs		(12	)		(0.18	)		—			—
Change in other accumulated comprehensive income or loss, net of tax		(2	)		(0.02	)		(2	)		(0.01	)

Impact of change in number of common and common share equivalents outstanding		n/a			0.36			n/a			0.24


Common shareholders’ equity / diluted book value per common share at end of period	$	5,738		$	83.71		$	6,551		$	85.32

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 six months ended June 30, 2011						As of and for the six months ended June 30, 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		(687	)		(10.13	)		77			0.95
Other operating expenses		(218	)		(3.21	)		(288	)		(3.56	)
Net investment income		310			4.57			348			4.29
Amortization of intangible assets		(18	)		(0.27	)		(13	)		(0.16	)
Other, net		(21	)		(0.31	)		(22	)		(0.26	)
Operating income tax (expense) benefit		(17	)		(0.26	)		6			0.08
Preferred dividends		(17	)		(0.25	)		(17	)		(0.21	)

Operating (loss) earnings		(668	)		(9.86	)		91			1.13

Net realized and unrealized investment (losses) gains, net of tax		(47	)		(0.70	)		140			1.74
Net foreign exchange gains, net of tax		16			0.24			19			0.22
Interest in (losses) earnings of equity investments, net of tax		(1	)		—			3			0.04

Net (loss) income available to common shareholders		(700	)		(10.32	)		253			3.13

Common share dividends		(78	)		(1.15	)		(79	)		(1.00	)
Change in currency translation adjustment		44			0.65			(174	)		(2.15	)
Repurchase of common shares, net		(201	)		0.19			(6	)		(0.07	)
Preferred shares issuance costs		(12	)		(0.18	)		—			—
Change in other accumulated comprehensive income or loss, net of tax		(2	)		(0.03	)		(569	)		0.52

Impact of change in number of common and common share equivalents outstanding		n/a			0.78			n/a			0.38


Common shareholders’ equity / diluted book value per common share at end of period	$	5,738		$	83.71		$	6,551		$	85.32

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, net		(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
	June 30, 2011			March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010


Acquisition related expenses:
Corporate expenses - acquisition related	$	1,168		$	2,335		$	6,155		$	5,654		$	1,798
Corporate expenses - voluntary termination plan		—			—			6,323			(803	)		33,755
Amortization of intangible assets		9,165			8,827			8,821			10,003			7,833
Amortization of intangible assets included in acquisition costs ⁽¹⁾		2,829			3,700			3,715			4,789			10,388


Total acquisition related expenses	$	13,162		$	14,862		$	25,014		$	19,643		$	53,774

Less: Amortization of intangible assets included in acquisition costs		(2,829	)		(3,700	)		(3,715	)		(4,789	)		(10,388	)


Total acquisition related expenses, excluding those included in acquisition costs	$	10,333		$	11,162		$	21,299		$	14,854		$	43,386

Divided by:
Weighted average number of common and common share equivalents outstanding		68,442.3			67,997.4			74,494.7			76,428.5			78,796.4

Impact of acquisition related expenses on diluted operating earnings or loss per share, pre-tax	$	0.15		$	0.16		$	0.29		$	0.19		$	0.55


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

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

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		18,413		1,914		20,327
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	$	144,930	$	1,914	$	146,844

(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 $154.2 million and $178.7 million at June 30, 2011 and December 31, 2010, respectively, are recorded gross of a deferred tax benefit of $48.1 million and $46.9 million, respectively.

(4)

Total intangible assets of $154.2 million and $178.7 million at June 30, 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.

Paris Re Acquisition Related Expenses

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

(Unaudited)


	For the six months ended						For the year ended
	June 30, 2011			June 30, 2010			December 31, 2010			December 31, 2009


Acquisition related expenses:
Corporate expenses - acquisition related	$	3,503		$	4,266		$	16,075		$	36,521
Corporate expenses - voluntary termination plan		—			35,164			40,684			—
Amortization of intangible assets		17,992			12,636			31,461			(6,133	)
Amortization of intangible assets included in acquisition costs ⁽¹⁾		6,529			28,590			37,094			46,410


Total acquisition related expenses	$	28,024		$	80,656		$	125,314		$	76,798

Less: Amortization of intangible assets included in acquisition costs		(6,529	)		(28,590	)		(37,094	)		(46,410	)


Total acquisition related expenses, excluding those included in acquisition costs	$	21,495		$	52,066		$	88,220		$	30,388

Divided by:
Weighted average number of common and common share equivalents outstanding		67,811.4			81,050.7			78,234.3			63,890.6

Impact of acquisition related expenses on diluted operating loss or earnings per share, pre-tax	$	0.32		$	0.64		$	1.13		$	0.48

(1)

PARTNERRE LTD - FORM 8-K - EX-99.2 - FINANCIAL SUPPLEMENT - August 2, 2011

Attached files

PARTNERRE LTD Reports