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

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8-K - FORM 8-K - PARTNERRE LTD	d293736d8k.htm
EX-99.3 - PRESS RELEASE OF PARTNERRE LTD., DATED FEBRUARY 2, 2012 - PARTNERRE LTD	d293736dex993.htm
EX-99.1 - PRESS RELEASE OF PARTNERRE LTD., DATED FEBRUARY 6, 2012 - PARTNERRE LTD	d293736dex991.htm

Exhibit 99.2

PartnerRe Ltd.

Financial Supplement

Financial Information

as of December 31, 2011

(unaudited)

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

PartnerRe Ltd.

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

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

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

PartnerRe Ltd.

Financial Supplement - December 31, 2011

Table of Contents


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

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 Share 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 shares 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 share and common share equivalents outstanding as of the beginning of the year. 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 Share 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 shares 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 31 for a reconciliation of the previously published non-GAAP measures to the redefined non-GAAP measures.

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

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

PartnerRe Ltd.

Consolidated Income Statements

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

(Unaudited)


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

Revenues
Gross premiums written	$	897,962		$	1,095,326		$	1,082,205		$	1,557,561		$	827,301		$	4,633,054		$	4,885,266


Net premiums written	$	879,886		$	1,079,557		$	1,056,467		$	1,470,419		$	820,605		$	4,486,329		$	4,705,116
Decrease (increase) in unearned premiums		301,515			214,762			50,978			(405,830	)		384,041			161,425			71,355

Net premiums earned		1,181,401			1,294,319			1,107,445			1,064,589			1,204,646			4,647,754			4,776,471
Net investment income		155,540			163,647			158,328			151,633			160,804			629,148			672,782
Net realized and unrealized investment gains (losses)		74,553			26,139			78,199			(112,199	)		(83,201	)		66,692			401,482
Other income		3,072			1,434			1,596			1,813			5,079			7,915			10,470

Total revenues		1,414,566			1,485,539			1,345,568			1,105,836			1,287,328			5,351,509			5,861,205


Expenses
Losses and loss expenses and life policy benefits		1,069,204			881,626			814,523			1,607,217			817,772			4,372,570			3,283,618
Acquisition costs		238,772			262,489			229,251			207,849			246,617			938,361			972,537
Other operating expenses		113,033			103,822			113,694			104,297			133,245			434,846			539,751
Interest expense		12,219			12,216			12,214			12,300			12,181			48,949			44,413
Amortization of intangible assets		8,893			9,520			9,165			8,827			8,821			36,405			31,461
Net foreign exchange (gains) losses		(14,655	)		(10,587	)		(8,737	)		(695	)		8,260			(34,675	)		20,686

Total expenses		1,427,466			1,259,086			1,170,110			1,939,795			1,226,896			5,796,456			4,892,466


(Loss) income before taxes and interest in (losses) earnings of equity investments		(12,900	)		226,453			175,458			(833,959	)		60,432			(444,947	)		968,739
Income tax expense (benefit)		3,341			41,803			50,085			(26,258	)		10,892			68,972			128,784
Interest in (losses) earnings of equity investments		(1,402	)		(4,527	)		(1,188	)		745			7,495			(6,372	)		12,597

Net (loss) income	$	(17,643	)	$	180,123		$	124,185		$	(806,956	)	$	57,035		$	(520,291	)	$	852,552

Preferred dividends	$	15,405		$	14,352		$	8,631		$	8,631		$	8,631		$	47,020		$	34,525

Operating (loss) earnings available to common shareholders	$	(137,688	)	$	164,498		$	67,153		$	(735,572	)	$	98,782		$	(641,609	)	$	491,807

Comprehensive (loss) income, net of tax	$	(22,420	)	$	126,271		$	128,568		$	(769,410	)	$	49,184		$	(536,991	)	$	771,681

Per Share Data:
(Loss) earnings per common share:
Basic operating (loss) earnings	$	(2.06	)	$	2.43		$	0.99		$	(10.82	)	$	1.35		$	(9.50	)	$	6.40
Net realized and unrealized investment gains (losses), net of tax		0.85			0.09			0.61			(1.30	)		(0.98	)		0.23			3.92
Net foreign exchange gains (losses), net of tax		0.75			—			0.13			0.11			0.19			0.98			0.17
Interest in (losses) earnings of equity investments, net of tax		(0.03	)		(0.07	)		(0.02	)		0.02			0.10			(0.11	)		0.16

Basic net (loss) income	$	(0.49	)	$	2.45		$	1.71		$	(11.99	)	$	0.66		$	(8.40	)	$	10.65

Weighted average number of common shares outstanding		66,877.1			67,743.3			67,628.1			67,997.4			73,168.6			67,558.7			76,839.5
Diluted operating (loss) earnings ⁽¹⁾	$	(2.06	)	$	2.41		$	0.98		$	(10.82	)	$	1.33		$	(9.50	)	$	6.29
Net realized and unrealized investment gains (losses), net of tax		0.85			0.09			0.60			(1.30	)		(0.96	)		0.23			3.86
Net foreign exchange gains (losses), net of tax		0.75			—			0.13			0.11			0.19			0.98			0.16
Interest in (losses) earnings of equity investments, net of tax		(0.03	)		(0.07	)		(0.02	)		0.02			0.09			(0.11	)		0.15

Diluted net (loss) income	$	(0.49	)	$	2.43		$	1.69		$	(11.99	)	$	0.65		$	(8.40	)	$	10.46

Weighted average number of common shares and common share equivalents outstanding		66,877.1			68,182.0			68,442.3			67,997.4			74,494.7			67,558.7			78,234.3
Dividends declared per common share	$	0.60		$	0.60		$	0.60		$	0.55		$	0.55		$	2.35		$	2.05
(1) See page 36 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)


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

Assets
Total investments	$	15,287,245			$	15,789,856			$	15,955,923			$	14,684,553			$	14,297,867			$	15,301,510
Funds held - directly managed		1,268,010				1,322,761				1,379,513				1,514,453				1,772,118				2,124,826
Cash and cash equivalents		1,342,257				1,073,432				1,606,842				2,009,737				2,111,084				738,309
Accrued investment income		189,074				198,503				181,806				187,718				201,928				218,739
Reinsurance balances receivable		2,059,976				2,313,538				2,517,586				2,515,845				2,076,884				2,249,181
Funds held by reinsured companies		796,290				814,950				846,466				848,182				937,032				938,039
Deferred acquisition costs		547,202				602,275				661,564				671,417				595,557				614,857
Goodwill		455,533				455,533				455,533				455,533				455,533				455,533
Intangible assets		133,867				142,760				154,194				166,187				178,715				247,269
Other assets		775,919				905,505				840,495				849,150				737,653				844,281

Total assets	$	22,855,373			$	23,619,113			$	24,599,922			$	23,902,775			$	23,364,371			$	23,732,544

Liabilities
Unpaid losses and loss expenses	$	11,273,091			$	11,352,599			$	12,016,271			$	11,887,316			$	10,666,604			$	10,811,483
Policy benefits for life and annuity contracts		1,645,662				1,678,201				1,726,180				1,670,768				1,750,410				1,615,193
Unearned premiums		1,448,841				1,787,351				2,067,996				2,102,053				1,599,139				1,706,816
Other reinsurance balances payable		443,873				493,926				554,386				505,198				491,194				426,091
Debt obligations		820,989				820,989				820,989				820,989				820,989				520,989
Other liabilities		755,375				778,364				782,056				741,618				829,116				1,006,245

Total liabilities		16,387,831				16,911,430				17,967,878				17,727,942				16,157,452				16,086,817
Total shareholders’ equity		6,467,542				6,707,683				6,632,044				6,174,833				7,206,919				7,645,727

Total liabilities and shareholders’ equity	$	22,855,373			$	23,619,113			$	24,599,922			$	23,902,775			$	23,364,371			$	23,732,544

Shareholders’ Equity Per Common Share (excluding preferred shares)	$	85.33			$	85.82			$	84.71			$	83.85			$	95.55			$	86.29

Diluted Book Value Per Common Share and Common Share Equivalents Outstanding (assuming exercise of all share-based awards)	$	84.82			$	85.26			$	83.71			$	82.50			$	93.77			$	84.51

Number of Common Shares and Common Share Equivalents Outstanding		65,715.7				68,188.1				68,552.0				68,542.4				71,312.3				84,319.7

Capital Structure:
Senior notes ⁽¹⁾	$	750,000	10	%	$	750,000	10	%	$	750,000	10	%	$	750,000	11	%	$	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 value		893,750	12			893,750	12			893,750	12			520,000	7			520,000	7			520,000	7
Common shareholders’ equity		5,573,792	77			5,813,933	77			5,738,294	77			5,654,833	81			6,686,919	83			7,125,727	89

Total Capital	$	7,280,926	100	%	$	7,521,067	100	%	$	7,445,428	100	%	$	6,988,217	100	%	$	8,020,303	100	%	$	7,959,111	100	%

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

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

PartnerRe Ltd.

Condensed Consolidated Statements of Cash Flows

(Expressed in millions of U.S. dollars)

(Unaudited)


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


Net cash (used in) provided by operating activities:

Underwriting operations ⁽¹⁾	$	(140	)	$	(314	)	$	84		$	340		$	156		$	(29	)	$	650

Investment income		189			167			186			189			176			731			762

Taxes and foreign exchange		(59	)		(12	)		(14	)		(43	)		(17	)		(128	)		(185	)


Net cash (used in) provided by operating activities	$	(10	)	$	(159	)	$	256		$	486		$	315		$	574		$	1,227


Net cash (used in) provided by operating activities	$	(10	)	$	(159	)	$	256		$	486		$	315		$	574		$	1,227

Net cash provided by (used in) investing activities		519			(292	)		(987	)		(320	)		775			(1,080	)		1,102

Net cash (used in) provided by financing activities		(223	)		(55	)		322			(286	)		(412	)		(242	)		(922	)

Effect of foreign exchange rate changes on cash		(17	)		(28	)		6			19			(5	)		(21	)		(34	)


Increase (decrease) in cash and cash equivalents		269			(534	)		(403	)		(101	)		673			(769	)		1,373

Cash and cash equivalents - beginning of period		1,073			1,607			2,010			2,111			1,438			2,111			738


Cash and cash equivalents - end of period	$	1,342		$	1,073		$	1,607		$	2,010		$	2,111		$	1,342		$	2,111

(1) For the three months ended March 31, 2011, the three months ended June 30, 2011, the three months ended September 30, 2011 and the year ended December 31, 2011, net cash provided by underwriting operations includes approximately $295 million, $5 million, $58 million and $358 million, respectively, 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
	December 31,			September 30,			June 30,			March 31,			December 31,
	2011			2011			2011			2011			2010


Net (loss) income	$	(17,643	)	$	180,123		$	124,185		$	(806,956	)	$	57,035

Change in currency translation adjustment		(960	)		(54,958	)		6,303			37,781			(236	)
Change in net unrealized gains or losses on investments, net of tax		(204	)		(244	)		(249	)		(252	)		(266	)
Change in unfunded pension obligation, net of tax		(3,613	)		1,350			(1,671	)		17			(7,349	)

Comprehensive (loss) income	$	(22,420	)	$	126,271		$	128,568		$	(769,410	)	$	49,184


							For the year ended
							December 31,			December 31,
							2011			2010


Net (loss) income							$	(520,291	)	$	852,552

Change in currency translation adjustment								(11,834	)		(66,742	)
Change in net unrealized gains or losses on investments, net of tax								(949	)		(4,908	)
Change in unfunded pension obligation, net of tax								(3,917	)		(9,221	)

Comprehensive (loss) income							$	(536,991	)	$	771,681

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

For the three months ended December 31, 2011


	North America			Global (Non-U.S.) P&C			Global (Non-U.S.) Specialty			Catastrophe			Total Non- life Segment			Life Segment			Corporate and Other			Total

Gross premiums written	$	235		$	97		$	354		$	19		$	705		$	193		$	—		$	898

Net premiums written	$	235		$	97		$	337		$	21		$	690		$	190		$	—		$	880
Decrease in unearned premiums		50			95			19			121			285			13			3			301

Net premiums earned	$	285		$	192		$	356		$	142		$	975		$	203		$	3		$	1,181
Losses and loss expenses and life policy benefits		(184	)		(188	)		(276	)		(250	)		(898	)		(171	)		—			(1,069	)
Acquisition costs		(67	)		(45	)		(88	)		(11	)		(211	)		(28	)		—			(239	)

Technical result	$	34		$	(41	)	$	(8	)	$	(119	)	$	(134	)	$	4		$	3		$	(127	)

Other income														2			1			—			3
Other operating expenses														(78	)		(15	)		(20	)		(113	)

Underwriting result													$	(210	)	$	(10	)		n/a		$	(237	)

Net investment income																	16			140			156

Allocated underwriting result ⁽¹⁾																$	6			n/a			n/a

Net realized and unrealized investment gains																				74			74
Interest expense																				(12	)		(12	)
Amortization of intangible assets																				(9	)		(9	)
Net foreign exchange gains																				15			15
Income tax expense																				(3	)		(3	)
Interest in losses of equity investments																				(2	)		(2	)

Net loss																				n/a		$	(18	)


Loss ratio ⁽²⁾		64.6	%		97.8	%		77.5	%		175.9	%		92.1	%
Acquisition ratio⁽³⁾		23.6			23.6			24.6			7.6			21.6

Technical ratio ⁽⁴⁾		88.2	%		121.4	%		102.1	%		183.5	%		113.7	%
Other operating expense ratio ⁽⁵⁾														8.0
Combined ratio ⁽⁶⁾														121.7	%

(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 December 31, 2010


	North America			Global (Non-U.S.) P&C			Global (Non-U.S.) Specialty			Catastrophe			Total Non- life Segment			Life Segment			Corporate and Other			Total

Gross premiums written	$	196		$	118		$	296		$	5		$	615		$	212		$	—		$	827

Net premiums written	$	196		$	118		$	287		$	10		$	611		$	210		$	—		$	821
Decrease in unearned premiums		64			110			42			155			371			12			1			384

Net premiums earned	$	260		$	228		$	329		$	165		$	982		$	222		$	1		$	1,205
Losses and loss expenses and life policy benefits		(145	)		(141	)		(191	)		(162	)		(639	)		(177	)		(2	)		(818	)
Acquisition costs		(71	)		(57	)		(73	)		(12	)		(213	)		(34	)		—			(247	)

Technical result	$	44		$	30		$	65		$	(9	)	$	130		$	11		$	(1	)	$	140

Other income														2			—			3			5
Other operating expenses														(78	)		(17	)		(38	)		(133	)

Underwriting result													$	54		$	(6	)		n/a		$	12

Net investment income																	18			143			161

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

Net realized and unrealized investment losses																				(83	)		(83	)
Interest expense																				(12	)		(12	)
Amortization of intangible assets																				(9	)		(9	)
Net foreign exchange losses																				(8	)		(8	)
Income tax expense																				(11	)		(11	)
Interest in earnings of equity investments																				7			7

Net income																				n/a		$	57

Loss ratio ⁽²⁾		55.9	%		61.9	%		57.9	%		98.0	%		65.1	%
Acquisition ratio ⁽³⁾		27.2			24.9			22.2			7.3			21.6

Technical ratio ⁽⁴⁾		83.1	%		86.8	%		80.1	%		105.3	%		86.7	%
Other operating expense ratio ⁽⁵⁾														7.9

Combined ratio ⁽⁶⁾														94.6	%

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)


				For the year ended December 31, 2011

	North America			Global (Non-U.S.) P&C			Global (Non-U.S.) Specialty			Catastrophe			Total Non- life Segment			Life Segment			Corporate and Other			Total

Gross premiums written	$	1,104		$	682		$	1,446		$	599		$	3,831		$	790		$	12		$	4,633

Net premiums written	$	1,104		$	678		$	1,344		$	562		$	3,688		$	786		$	12		$	4,486
Decrease in unearned premiums		31			81			32			12			156			6			—			162

Net premiums earned	$	1,135		$	759		$	1,376		$	574		$	3,844		$	792		$	12		$	4,648
Losses and loss expenses and life policy benefits		(741	)		(567	)		(950	)		(1,459	)		(3,717	)		(650	)		(6	)		(4,373	)
Acquisition costs		(276	)		(191	)		(328	)		(26	)		(821	)		(117	)		—			(938	)

Technical result	$	118		$	1		$	98		$	(911	)	$	(694	)	$	25		$	6		$	(663	)

Other income														4			1			3			8
Other operating expenses														(283	)		(53	)		(99	)		(435	)

Underwriting result													$	(973	)	$	(27	)		n/a		$	(1,090	)

Net investment income																	66			563			629

Allocated underwriting result ⁽¹⁾																$	39			n/a			n/a

Net realized and unrealized investment gains																				67			67
Interest expense																				(49	)		(49	)
Amortization of intangible assets																				(36	)		(36	)
Net foreign exchange gains																				34			34
Income tax expense																				(69	)		(69	)
Interest in losses of equity investments																				(6	)		(6	)

Net loss																				n/a		$	(520	)


Loss ratio ⁽²⁾		65.3	%		74.7	%		69.1	%		254.2	%		96.7	%
Acquisition ratio⁽³⁾		24.3			25.1			23.8			4.5			21.3

Technical ratio ⁽⁴⁾		89.6	%		99.8	%		92.9	%		258.7	%		118.0	%
Other operating expense ratio⁽⁵⁾														7.4

Combined ratio ⁽⁶⁾														125.4	%

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)


				For the year ended December 31, 2010

	North America			Global (Non-U.S.) P&C			Global (Non-U.S.) Specialty			Catastrophe			Total Non- life Segment			Life Segment			Corporate and Other			Total

Gross premiums written	$	1,028		$	909		$	1,479		$	716		$	4,132		$	749		$	4		$	4,885

Net premiums written	$	1,026		$	898		$	1,391		$	646		$	3,961		$	742		$	2		$	4,705
Decrease in unearned premiums		12			16			14			26			68			2			1			71

Net premiums earned	$	1,038		$	914		$	1,405		$	672		$	4,029		$	744		$	3		$	4,776
Losses and loss expenses and life policy benefits		(577	)		(702	)		(985	)		(393	)		(2,657	)		(624	)		(3	)		(3,284	)
Acquisition costs		(288	)		(227	)		(292	)		(49	)		(856	)		(116	)		—			(972	)

Technical result	$	173		$	(15	)	$	128		$	230		$	516		$	4		$	—		$	520

Other income														5			2			3			10
Other operating expenses														(317	)		(57	)		(166	)		(540	)

Underwriting result													$	204		$	(51	)		n/a		$	(10	)

Net investment income																	71			602			673

Allocated underwriting result⁽¹⁾																$	20			n/a			n/a

Net realized and unrealized investment gains																				402			402
Interest expense																				(44	)		(44	)
Amortization of intangible assets																				(31	)		(31	)
Net foreign exchange losses																				(21	)		(21	)
Income tax expense																				(129	)		(129	)
Interest in earnings of equity investments																				13			13

Net income																				n/a		$	853


Loss ratio ⁽²⁾		55.6	%		76.8	%		70.0	%		58.5	%		65.9	%
Acquisition ratio ⁽³⁾		27.8			24.9			20.8			7.2			21.3

Technical ratio ⁽⁴⁾		83.4	%		101.7	%		90.8	%		65.7	%		87.2	%
Other operating expense ratio ⁽⁵⁾														7.8

Combined ratio ⁽⁶⁾														95.0	%

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Non-life segment


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


Net premiums written	$	690		$	880		$	857		$	1,262		$	611		$	3,688		$	3,961

Net premiums earned	$	975		$	1,083		$	905		$	881		$	982		$	3,844		$	4,029

Losses and loss expenses		(898	)		(710	)		(646	)		(1,463	)		(639	)		(3,717	)		(2,657	)
Acquisition costs		(211	)		(229	)		(203	)		(178	)		(213	)		(821	)		(856	)

Technical result	$	(134	)	$	144		$	56		$	(760	)	$	130		$	(694	)	$	516

Other income		2			1			—			1			2			4			5
Other operating expenses		(78	)		(69	)		(71	)		(66	)		(78	)		(283	)		(317	)

Underwriting result	$	(210	)	$	76		$	(15	)	$	(825	)	$	54		$	(973	)	$	204

Loss ratio ⁽²⁾		92.1	%		65.6	%		71.4	%		166.0	%		65.1	%		96.7	%		65.9	%
Acquisition ratio ⁽³⁾		21.6			21.1			22.4			20.3			21.6			21.3			21.3

Technical ratio ⁽⁴⁾		113.7	%		86.7	%		93.8	%		186.3	%		86.7	%		118.0	%		87.2	%
Other operating expense ratio ⁽⁵⁾		8.0			6.4			7.9			7.4			7.9			7.4			7.8

Combined ratio ⁽⁶⁾		121.7	%		93.1	%		101.7	%		193.7	%		94.6	%		125.4	%		95.0	%

(A) Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended December 31, 2011, net premiums written and net premiums earned include foreign exchange impacts of $6.1 million and $15.7 million, respectively, compared to the three months ended December 31, 2010. For the year ended December 31, 2011, net premiums written and net premiums earned include foreign exchange impacts of $67.2 million and $119.7 million, respectively, compared to the year ended December 31, 2010.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)


North America sub-segment
	For the three months ended															For the year ended
	December 31, 2011^(A)			September 30, 2011			June 30, 2011			March 31, 2011			December 31, 2010			December 31, 2011^(A)			December 31, 2010


Net premiums written	$	235		$	287		$	242		$	338		$	196		$	1,104		$	1,026

Net premiums earned	$	285		$	329		$	261		$	259		$	260		$	1,135		$	1,038

Losses and loss expenses		(184	)		(192	)		(190	)		(174	)		(145	)		(741	)		(577	)
Acquisition costs		(67	)		(80	)		(63	)		(66	)		(71	)		(276	)		(288	)

Technical result	$	34		$	57		$	8		$	19		$	44		$	118		$	173

Loss ratio⁽²⁾		64.6	%		58.4	%		72.8	%		67.0	%		55.9	%		65.3	%		55.6	%
Acquisition ratio ⁽³⁾		23.6			24.3			24.1			25.6			27.2			24.3			27.8

Technical ratio ⁽⁴⁾		88.2	%		82.7	%		96.9	%		92.6	%		83.1	%		89.6	%		83.4	%

Distribution of Net Premiums Written by Major Lines of Business:
Casualty		40	%		37	%		40	%		42	%		47	%		40	%		42	%
Agriculture		20			25			23			14			11			20			8
Property		18			19			19			17			17			18			26
Motor		9			7			8			10			12			8			11
Multiline		6			5			5			11			5			7			5
Credit/Surety		4			5			5			5			8			5			6
Other		3			2			—			1			—			2			2

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

(A) Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended December 31, 2011, net premiums written and net premiums earned include foreign exchange impacts of $0.4 million and $1.0 million, respectively, compared to the three months ended December 31, 2010. For the year ended December 31, 2011, net premiums written and net premiums earned include foreign exchange impacts of $12.1 million and $12.4 million, respectively, compared to the year ended December 31, 2010.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)


Global (Non-U.S.) P&C sub-segment
	For the three months ended															For the year ended
	December 31, 2011^(A)			September 30, 2011			June 30, 2011			March 31, 2011			December 31, 2010			December 31, 2011^(A)			December 31, 2010


Net premiums written	$	97		$	144		$	121		$	317		$	118		$	678		$	898

Net premiums earned	$	192		$	193		$	193		$	181		$	228		$	759		$	914

Losses and loss expenses		(188	)		(102	)		(127	)		(150	)		(141	)		(567	)		(702	)
Acquisition costs		(45	)		(52	)		(53	)		(40	)		(57	)		(191	)		(227	)

Technical result	$	(41	)	$	39		$	13		$	(9	)	$	30		$	1		$	(15	)

Loss ratio ⁽²⁾		97.8	%		52.9	%		65.9	%		82.8	%		61.9	%		74.7	%		76.8	%
Acquisition ratio ⁽³⁾		23.6			26.9			27.6			22.1			24.9			25.1			24.9

Technical ratio⁽⁴⁾		121.4	%		79.8	%		93.5	%		104.9	%		86.8	%		99.8	%		101.7	%

Distribution of Net Premiums Written by Major Lines of Business:
Property		69	%		71	%		78	%		67	%		71	%		70	%		66	%
Motor		18			21			14			21			18			20			22
Casualty		13			8			8			12			11			10			12

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

(A) Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended December 31, 2011, net premiums written and net premiums earned include foreign exchange impacts of $2.7 million and $1.6 million, respectively, compared to the three months ended December 31, 2010. For the year ended December 31, 2011, net premiums written and net premiums earned include foreign exchange impacts of $18.5 million and $34.4 million, respectively, compared to the year ended December 31, 2010.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

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


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


Net premiums written	$	337		$	360		$	333		$	315		$	287		$	1,344		$	1,391

Net premiums earned	$	356		$	362		$	341		$	317		$	329		$	1,376		$	1,405

Losses and loss expenses		(276	)		(247	)		(206	)		(221	)		(191	)		(950	)		(985	)
Acquisition costs		(88	)		(82	)		(78	)		(80	)		(73	)		(328	)		(292	)

Technical result	$	(8	)	$	33		$	57		$	16		$	65		$	98		$	128

Loss ratio ⁽²⁾		77.5	%		68.3	%		60.3	%		69.7	%		57.9	%		69.1	%		70.0	%
Acquisition ratio ⁽³⁾		24.6			22.7			22.9			25.3			22.2			23.8			20.8

Technical ratio ⁽⁴⁾		102.1	%		91.0	%		83.2	%		95.0	%		80.1	%		92.9	%		90.8	%

Distribution of Net Premiums Written by Major Lines of Business:
Aviation/Space		20	%		16	%		14	%		12	%		25	%		16	%		16	%
Credit/Surety		19			18			20			25			18			20			16
Energy		8			11			7			7			5			8			8
Engineering		15			13			12			14			15			14			14
Marine		21			20			21			18			21			20			20
Specialty casualty		2			4			7			19			(1	)		8			11
Specialty property		11			13			12			4			13			10			8
Other		4			5			7			1			4			4			7

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

(A) Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended December 31, 2011, net premiums written and net premiums earned include foreign exchange impacts of $2.9 million and $8.2 million, respectively, compared to the three months ended December 31, 2010. For the year ended December 31, 2011, net premiums written and net premiums earned include foreign exchange impacts of $25.1 million and $49.3 million, respectively, compared to the year ended December 31, 2010.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Catastrophe sub-segment


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


Net premiums written	$	21		$	89		$	161		$	292		$	10		$	562		$	646

Net premiums earned	$	142		$	199		$	110		$	124		$	165		$	574		$	672

Losses and loss expenses		(250	)		(169	)		(123	)		(918	)		(162	)		(1,459	)		(393	)
Acquisition costs		(11	)		(15	)		(9	)		8			(12	)		(26	)		(49	)

Technical result	$	(119	)	$	15		$	(22	)	$	(786	)	$	(9	)	$	(911	)	$	230

Loss ratio ⁽²⁾		175.9	%		85.0	%		111.7	%		743.0	%		98.0	%		254.2	%		58.5	%
Acquisition ratio ⁽³⁾		7.6			7.4			8.1			(6.7	)		7.3			4.5			7.2

Technical ratio ⁽⁴⁾		183.5	%		92.4	%		119.8	%		736.3	%		105.3	%		258.7	%		65.7	%

(A) Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended December 31, 2011, net premiums written and net premiums earned include foreign exchange impacts of $0.1 million and $4.9 million, respectively, compared to the three months ended December 31, 2010. For the year ended December 31, 2011, net premiums written and net premiums earned include foreign exchange impacts of $11.4 million and $23.7 million, respectively, compared to the year ended December 31, 2010.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Life segment


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


Net premiums written	$	190		$	194		$	195		$	206		$	210		$	786		$	742

Net premiums earned	$	203		$	203		$	201		$	184		$	222		$	792		$	744

Life policy benefits		(171	)		(168	)		(166	)		(145	)		(177	)		(650	)		(624	)
Acquisition costs		(28	)		(33	)		(26	)		(30	)		(34	)		(117	)		(116	)

Technical result	$	4		$	2		$	9		$	9		$	11		$	25		$	4

Other income		1			—			—			—			—			1			2
Other operating expenses		(15	)		(12	)		(13	)		(12	)		(17	)		(53	)		(57	)

Underwriting result	$	(10	)	$	(10	)	$	(4	)	$	(3	)	$	(6	)	$	(27	)	$	(51	)

Net investment income		16			19			16			15			18			66			71

Allocated underwriting result ⁽¹⁾	$	6		$	9		$	12		$	12		$	12		$	39		$	20

Distribution of Net Premiums Written by Major Lines of Business:
Mortality		66	%		71	%		72	%		76	%		56	%		71	%		70	%
Longevity		31			26			25			21			42			26			27
Health		3			3			3			3			2			3			3


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

(A) Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended December 31, 2011, net premiums written and net premiums earned include foreign exchange impacts of $3.0 million and $3.4 million, respectively, compared to the three months ended December 31, 2010. For the year ended December 31, 2011, net premiums written and net premiums earned include foreign exchange impacts of $27.8 million and $29.6 million, respectively, compared to the year ended December 31, 2010.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Corporate and Other


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


Technical result	$	3		$	4		$	(1	)	$	—		$	(1	)	$	6		$	—

Other income		—			—			1			1			3			3			3
Corporate expenses - acquisition related		—			(1	)		(1	)		(2	)		(6	)		(4	)		(16	)
Corporate expenses - voluntary termination plan		—			—			—			—			(6	)		—			(41	)
Corporate expenses ⁽¹⁾		(16	)		(19	)		(25	)		(19	)		(22	)		(79	)		(94	)
Other operating expenses		(4	)		(3	)		(4	)		(5	)		(4	)		(16	)		(15	)

Net investment income		140			145			142			137			143			563			602

Net realized and unrealized investment gains (losses)		74			26			78			(112	)		(83	)		67			402
Interest expense		(12	)		(12	)		(12	)		(12	)		(12	)		(49	)		(44	)
Amortization of intangible assets		(9	)		(9	)		(9	)		(9	)		(9	)		(36	)		(31	)
Net foreign exchange gains (losses)		15			11			9			—			(8	)		34			(21	)
Income tax (expense) benefit		(3	)		(42	)		(50	)		26			(11	)		(69	)		(129	)
Interest in (losses) earnings of equity investments		(2	)		(5	)		(1	)		1			7			(6	)		13

(1) The Company’s corporate expenses for the year ended December 31, 2010 includes $13 million of corporate expenses related to Paris Re.

PartnerRe Ltd.

Distribution of Premiums

(Unaudited)


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


Distribution of Net Premiums Written by Line of Business:
Non-life
Property and casualty
Casualty		12	%		11	%		10	%		12	%		13	%		11	%		11	%
Property		12			14			13			18			14			15			18
Motor		4			5			3			7			5			5			7
Multiline and other		2			3			2			2			1			2			2
Specialty
Agriculture		7			8			7			4			4			7			4
Aviation/Space		9			5			5			3			9			5			5
Catastrophe		2			8			15			20			1			13			14
Credit/Surety		8			7			8			6			8			7			6
Energy		3			4			2			2			2			2			2
Engineering		6			4			4			3			5			4			4
Marine		8			7			7			4			7			6			6
Specialty casualty		1			1			2			4			—			2			3
Specialty property		4			5			4			1			5			3			2
Life		22			18			18			14			26			18			16

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


Distribution of Gross Premiums Written by Geography:
Europe		45	%		38	%		40	%		43	%		47	%		41	%		43	%
North America		34			37			36			36			32			36			36
Latin America, Caribbean and Africa		11			12			11			10			11			11			11
Asia, Australia and New Zealand		10			13			13			11			10			12			10

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


Distribution of Gross Premiums Written by Production Source:
Broker		68	%		74	%		75	%		72	%		64	%		72	%		73	%
Direct		32			26			25			28			36			28			27

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

PartnerRe Ltd.

Distribution of Premiums

(Unaudited)


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


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

North America
Non-Proportional		16	%		26	%		25	%		47	%		18	%		30	%		33	%
Proportional		84			74			75			53			82			70			67

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


Global (Non-U.S.) P&C
Non-Proportional		11	%		19	%		10	%		34	%		4	%		23	%		23	%
Proportional		89			81			90			66			96			77			77

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


Global (Non-U.S.) Specialty
Non-Proportional		7	%		17	%		20	%		33	%		5	%		19	%		22	%
Proportional		93			83			80			67			95			81			78

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


Catastrophe
Non-Proportional		96	%		98	%		98	%		98	%		89	%		98	%		99	%
Proportional		4			2			2			2			11			2			1

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


Non-life total
Non-Proportional		13	%		29	%		35	%		52	%		10	%		35	%		38	%
Proportional		87			71			65			48			90			65			62

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

PartnerRe Ltd.

Investment Portfolio

(Expressed in millions of U.S. dollars)

(Unaudited)


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

Investments:
Fixed maturities
U.S. government	$	1,090	7	%	$	1,162	7	%	$	1,291	8	%	$	745	5	%	$	673	5	%	$	803	5	%
Government Sponsored Enterprises (GSEs)		26	—			26	—			184	1			216	2			233	2			453	3
U.S. states, territories and municipalities		124	1			101	1			99	1			68	—			67	—			14	—
Non-U.S. sovereign government, supranational and government related		2,964	19			3,230	20			3,258	20			3,068	21			2,819	20			3,059	20
Corporates		5,747	38			6,120	39			5,830	37			6,199	42			6,144	43			6,631	43
Mortgage/asset-backed securities		3,991	26			3,717	24			3,745	23			2,963	20			2,889	20			3,183	21

Total fixed maturities		13,942	91			14,356	91			14,407	90			13,259	90			12,825	90			14,143	92
Short-term investments		42	—			98	1			216	2			81	1			49	—			137	1
Equities		945	6			1,001	6			995	6			1,053	7			1,072	8			796	5
Other invested assets		358	3			335	2			338	2			292	2			352	2			226	2

Total investments	$	15,287	100	%	$	15,790	100	%	$	15,956	100	%	$	14,685	100	%	$	14,298	100	%	$	15,302	100	%

Cash and cash equivalents		1,343				1,073				1,607				2,010				2,111				738
Total investments and cash	$	16,630			$	16,863			$	17,563			$	16,695			$	16,409			$	16,040
Maturity distribution:
One year or less	$	571	4	%		576	4	%	$	970	7	%	$	1,004	8	%	$	930	7	%	$	869	6	%
More than one year through five years		4,923	35			5,580	39			5,404	37			5,113	38			5,022	39			6,346	45
More than five years through ten years		3,713	26			3,840	26			3,831	26			3,613	27			3,418	27			3,343	23
More than ten years		786	6			741	5			673	4			647	5			615	5			539	4

Subtotal		9,993	71			10,737	74			10,878	74			10,377	78			9,985	78			11,097	78
Mortgage/asset-backed securities		3,991	29			3,717	26			3,745	26			2,963	22			2,889	22			3,183	22

Total	$	13,984	100	%	$	14,454	100	%	$	14,623	100	%	$	13,340	100	%	$	12,874	100	%	$	14,280	100	%

Credit quality by market value: ^(A) (B)
AAA		25	%			28	%			58	%			52	%			51	%			50	%
AA		37				35				7				8				9				10
A		21				21				19				21				22				24
BBB		11				11				10				12				11				12
Below Investment Grade/Unrated		6				5				6				7				7				4

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

Expected average duration		2.9	Yrs			3.0	Yrs			3.0	Yrs			2.9	Yrs			3.0	Yrs			3.1	Yrs
Average yield to maturity at market		2.4	%			2.5	%			2.9	%			3.1	%			2.9	%			3.6	%
Average credit quality		AA				AA				AA				AA				AA				AA

(A)

The decrease in AAA rated securities and the corresponding increase in AA rated securities at September 30, 2011 compared to June 30, 2011 largely reflects Standard & Poor’s decision in August 2011 to downgrade, from AAA to AA+, U.S. Government securities and other securities that carry either an explicit or an implicit guarantee of the U.S. Government. While other rating agencies did not take a similar rating action, it is the Company’s policy to use Standard & Poor’s ratings, when available, to rate its investments.

(B)

On January 13, 2012, Standard & Poor’s announced credit downgrades on 9 Eurozone sovereign governments. The impact of these rating actions, had they occurred at December 31, 2011, on the credit quality of the Company’s investment portfolio would have been to decrease the AAA credit quality from 25% to 20%, and increase the AA credit quality from 37% to 42%. The average credit quality of the Company’s investment portfolio would have remained at AA. While other rating agencies did not take similar action, it is the Company’s policy to use Standard & Poor’s ratings, when available, to rate its investments.

PartnerRe Ltd.

Distribution of Corporate Bonds

(Expressed in thousands of U.S. dollars)

(Unaudited)

		Largest Single issuer			Largest Single issuer			Largest Single issuer			Largest Single issuer			Largest Single issuer			Largest Single issuer
	December 31, 2011

	Fair Value			Percentage to Total Fair Value of Corporate Bonds			Percentage to Invested Assets and Cash			Largest Single issuer as a Percentage of Invested Assets and Cash
Distribution by sector - Corporate bonds
Finance	$	1,321,583			23.0	%		8.0	%		0.7	%
Consumer noncyclical		808,227			14.1			4.9			0.3
Communications		585,067			10.2			3.5			0.5
Utilities		552,569			9.6			3.3			0.2
Government guaranteed corporate debt		393,101			6.8			2.4			0.7
Industrials		369,336			6.4			2.2			0.1
Energy		358,418			6.2			2.2			0.3
Consumer cyclical		288,345			5.0			1.7			0.3
Insurance		255,583			4.5			1.5			0.2
Catastrophe bonds		220,271			3.8			1.3			0.2
Materials		206,860			3.6			1.2			0.1
Longevity and mortality bonds		181,188			3.2			1.1			0.4
Technology		129,206			2.2			0.8			0.1
Real estate investment trusts		60,618			1.1			0.4			0.1
Diversified		16,625			0.3			0.1			—

Total Corporate bonds	$	5,746,997			100.0	%		34.6	%

Finance sector - Corporate bonds
Banks	$	639,140			11.1	%		3.9	%
Investment banking and brokerage		314,690			5.5			1.9
Financial services		149,666			2.6			0.9
Commercial and consumer finance		155,639			2.7			0.9
Other		62,448			1.1			0.4

Total finance sector - Corporate bonds	$	1,321,583			23.0	%		8.0	%

Credit quality of finance sector - Corporate bonds	AAA			AA			A			BBB			Non-Investment Grade/Unrated			Total
Banks	$	106,713		$	57,689		$	394,799		$	70,662		$	9,277		$	639,140
Investment banking and brokerage		—			—			295,679			18,151			860			314,690
Financial services		—			128,546			19,445			1,675			—			149,666
Commercial and consumer finance		—			5,350			86,913			63,376			—			155,639
Other		—			14,823			13,240			28,429			5,956			62,448

Total finance sector - Corporate bonds	$	106,713		$	206,408		$	810,076		$	182,293		$	16,093		$	1,321,583

% of total		8	%		16	%		61	%		14	%		1	%		100	%

Concentration of investment risk

The top 10 Corporate bond issues account for 16.9% of the Company’s total corporate bonds. The single largest issue accounts for 2.1% of the Company’s total Corporate bonds.

PartnerRe Ltd.

Distribution of Equities

(Expressed in thousands of U.S. dollars)

(Unaudited)

		Largest Single Issuer as a		Largest Single Issuer as a			Largest Single Issuer as a			Largest Single Issuer as a
	December 31, 2011

	Fair Value		Percentage to Total Fair Value of Equities			Percentage to Invested Assets and Cash			Largest Single Issuer as a Percentage of Invested Assets and Cash
Distribution by sector - Equities
Consumer noncyclical	$	124,851		18.7	%		0.8	%		0.1	%
Energy		84,261		12.7			0.5			0.1
Finance		79,583		12.0			0.5			0.1
Technology		74,729		11.2			0.4			0.1
Communications		64,080		9.6			0.4			—
Industrials		58,254		8.7			0.3			0.1
Insurance		58,017		8.7			0.3			0.1
Consumer cyclical		52,413		7.9			0.3			—
Utilities		28,415		4.3			0.2			—
Materials		28,390		4.3			0.2			—
Real estate investment trusts		10,496		1.6			0.1			—
Diversified		2,395		0.3			—			—

Total equities	$	665,884		100.0	%		4.0	%


Mutual funds and exchange traded funds (ETFs)
Funds holding fixed income securities		243,522					1.5
Funds and ETFs holding equities		35,285					0.2

Total equities	$	944,691					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 17.7% 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 17.2% 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 December 31, 2011
	GNMA			GSEs			AAA			AA			A			BBB			Non-Investment Grade/Unrated			Total

U.S. Asset-Backed Securities	$	—		$	—		$	56,787		$	28,006		$	66,362		$	2,925		$	286,636		$	440,716
U.S. Collaterized Mortgage Obligations		11,499			108,724			13,761			—			—			—			77,878			211,862
U.S. Mortgage Backed Securities (MBS)		757,494			2,052,054			—			—			—			—			—			2,809,548
U.S. Commercial Mortgage Backed Securities (CMBS)		—			—			44,687			—			9,539			2,205			2,273			58,704
U.S. MBS Interest Only		29,561			8,500			—			—			—			—			—			38,061

	$	798,554		$	2,169,278		$	115,235		$	28,006		$	75,901		$	5,130		$	366,787		$	3,558,891

Non-U.S. Asset-Backed Securities	$	—		$	—		$	132,421		$	12,403		$	48,259		$	—		$	—		$	193,083
Non-U.S. Collaterized Mortgage Obligations		—			—			191,698			—			31,339			—			393			223,430
Non-U.S. Commercial Mortgage Backed Securities (CMBS)		—			—			15,876			—			—			—			—			15,876


	$	—		$	—		$	339,995		$	12,403		$	79,598		$	—		$	393		$	432,389


Total mortgage/asset-backed securities	$	798,554		$	2,169,278		$	455,230		$	40,409		$	155,499		$	5,130		$	367,180		$	3,991,280


Corporate Securities		—			26,035			—			—			—			—			—			26,035


Total	$	798,554		$	2,195,313		$	455,230		$	40,409		$	155,499		$	5,130		$	367,180		$	4,017,315


% of total		20	%		55	%		11	%		1	%		4	%		—	%		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


	December 31, 2011														September 30, 2011						December 31, 2010
	Investments		Fair Value of Derivatives			Carrying Value			Net Notional Amount of Derivatives			Total Net Exposures ⁽¹⁾			Carrying Value			Total Net Exposures ⁽¹⁾			Carrying Value			Total Net Exposures ⁽¹⁾
Private Markets Investments
Principal Finance - Investments	$	170,092	$	—		$	170,092		$	—		$	170,092		$	190,360		$	190,360		$	137,882		$	137,882
Principal Finance - Derivative Exposure Assumed		—		(2,174	)		(2,174	)		129,288			127,114			(14,968	)		144,433			(13,444	)		165,364
Insurance-Linked Securities		—		(968	)		(968	)		136,375			135,407			(2,005	)		152,370			(73	)		88,692
Commodities Futures		—		(1,756	)		(1,756	)		47,979			46,223			(6,309	)		43,946			—			—
Strategic Investments		179,348		—			179,348			—			179,348			188,243			188,243			179,589			179,589

Total other invested assets - Private Markets Exposure Assumed		349,440		(4,898	)		344,542			313,642			658,184			355,321			719,352			303,954			571,527

Other Credit Derivatives - Exposure Assumed		—		246			246			5,000			5,246			181			5,181			533			5,533
Other Credit Derivatives - Protection Purchased		—		(1,193	)		(1,193	)		(94,961	)		(96,154	)		(1,005	)		(101,392	)		(2,314	)		(116,066	)
Other ⁽²⁾		9,470		5,089			14,559									(19,506	)					50,232


Total other invested assets	$	358,910	$	(756	)	$	358,154								$	334,991					$	352,405

(1) The total net exposures originated in Private Markets are $1,629 million at December 31, 2011($1,717 million and $1,644 million at September 30, 2011 and December 31, 2010, respectively). In addition to the net exposures listed above of $658 million ($719 million and $572 million at September 30, 2011 and December 31, 2010, respectively), the Company has the following other net exposures originated in Private Markets:

- Principal Finance: $521 million of assets listed under Investments - Fixed Maturities and $6 million listed under Investments - Equities for a total exposure of $824 million ($835 million and $661 million at September 30, 2011 and December 31, 2010, respectively).

- Insurance-Linked Securities: $402 million of bonds listed under Investments - Fixed Maturities and $25 million of limits on transactions that use reinsurance accounting for a total exposure of $562 million ($642 million and $788 million at September 30, 2011 and December 31, 2010, respectively).

- Strategic Investments: $7 million of assets listed under Investments - Fixed Maturities, $10 million under Investments - Equities, and $1 million of assets listed under Other Assets for a total exposure of $197 million ($196 million and $195 million at September 30, 2011 and December 31, 2010, respectively).

(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)


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

Investments:
Fixed maturities
U.S. government	$	111		11	%	$	111		10	%	$	77		7	%	$	76		6	%	$	95		6	%	$	119		6	%
Government Sponsored Enterprises (GSEs)		158		15			156		13			154		13			155		13			193		12			180		10
U.S. states, territories and municipalities		—		—			—		—			—		—			—		—			—		—			1		—
Non-U.S. sovereign government, supranational and government related		275		26			303		26			313		27			360		29			385		25			548		30
Corporates		480		45			531		46			551		47			571		47			799		52			900		49
Mortgage/asset-backed securities		—		—			—		—			—		—			—		—			12		1			18		1

Total fixed maturities		1,024		97			1,101		95			1,095		94			1,162		95			1,484		96			1,766		96
Short-term investments		18		2			35		3			42		4			44		3			38		3			28		2
Other invested assets		16		1			18		2			22		2			23		2			21		1			39		2

Total investments	$	1,058		100	%	$	1,154		100	%	$	1,159		100	%	$	1,229		100	%	$	1,543		100	%	$	1,833		100	%

Cash and cash equivalents		176					135					149					111					129					146
Total investments and cash	$	1,234				$	1,289				$	1,308				$	1,340				$	1,672				$	1,979

Accrued investment income		14					17					15					18					20					25
Other funds held assets/liabilities		20					17					57					156					80					121

Total funds held—directly managed	$	1,268				$	1,323				$	1,380				$	1,514				$	1,772				$	2,125

Maturity distribution:
One year or less	$	227		22	%	$	203		18	%	$	223		20	%	$	241		20	%	$	289		19	%	$	360		20	%
More than one year through five years		573		55			646		57			621		55			647		54			814		53			903		50
More than five years through ten years		215		20			260		23			266		23			288		24			376		25			423		24
More than ten years		27		3			27		2			27		2			30		2			31		2			90		5

Subtotal		1,042		100			1,136		100			1,137		100			1,206		100			1,510		99			1,776		99
Mortgage/asset-backed securities		—		—			—		—			—		—			—		—			12		1			18		1

Total	$	1,042		100	%	$	1,136		100	%	$	1,137		100	%	$	1,206		100	%	$	1,522		100	%	$	1,794		100	%

Credit quality by market value: ^(A) (B)
AAA		22	%				23	%				43	%				42	%				45	%				38	%
AA		50					50					30					30					27					26
A		24					23					23					24					24					29
BBB		4					4					4					4					4					5
Below Investment Grade/Unrated		—					—					—					—					—					2

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

Expected average duration		2.7	Yrs				2.9	Yrs				3.1	Yrs				3.1	Yrs				3.1	Yrs				3.0	Yrs
Average yield to maturity at market		1.7	%				1.8	%				2.1	%				2.4	%				2.4	%				2.6	%
Average credit quality		AA					AA					AA					AA					AA					AA

(A)

(B)

On January 13, 2012, Standard & Poor’s announced credit downgrades on 9 Eurozone sovereign governments. The impact of these rating actions, had they occurred at December 31, 2011, on the credit quality of the Company’s investment portfolio would have been to decrease the AAA credit quality from 22% to 16% and increase the AA credit quality from 50% to 56%. The average credit quality of the Company’s investment portfolio would have remained at AA. While other rating agencies did not take similar action, it is the Company’s policy to use Standard & Poor’s ratings, when available, to rate its investments.

PartnerRe Ltd.

Distribution of Corporate Bonds

Funds Held - Directly Managed Portfolio

(Expressed in thousands of U.S. dollars)

(Unaudited)


	December 31, 2011

	Fair Value			Percentage to Total Fair Value of Corporate Bonds			Percentage to Funds Held - Directly Managed Investments and cash			Largest Single issuer as a Percentage of Funds Held - Directly Managed Investments and cash
Distribution by sector - Corporate bonds
Finance	$	230,388			48.0	%		18.7	%		1.2	%
Consumer noncyclical		73,631			15.3			6.0			0.8
Energy		40,619			8.5			3.3			0.8
Government guaranteed corporate debt		30,019			6.3			2.4			0.9
Utilities		29,023			6.0			2.3			0.4
Materials		20,284			4.2			1.6			0.4
Communications		18,345			3.8			1.5			0.4
Technology		12,235			2.6			1.0			0.4
Consumer cyclical		12,117			2.5			1.0			0.6
Industrials		9,222			1.9			0.7			0.3
Real estate investment trusts		3,453			0.7			0.3			0.3
Insurance		1,149			0.2			0.1			0.1

Total Corporate bonds	$	480,485			100.0	%		38.9	%

Finance sector - Corporate bonds
Banks	$	123,573			25.7	%		10.0	%
Investment banking and brokerage		37,931			7.9			3.1
Financial services		29,820			6.2			2.4
Commercial and consumer finance		24,608			5.2			2.0
Other		14,456			3.0			1.2

Total finance sector - Corporate bonds	$	230,388			48.0	%		18.7	%


Credit quality of finance sector - Corporate bonds	AAA			AA			A			BBB			Total
Banks	$	19,273		$	53,951		$	42,836		$	7,513		$	123,573
Investment banking and brokerage		23,208			—			14,723			—			37,931
Financial services		4,395			20,384			4,412			629			29,820
Commercial and consumer finance		7,765			4,213			8,631			3,999			24,608
Other		10,475			—			3,981			—			14,456

Total finance sector - Corporate bonds	$	65,116		$	78,548		$	74,583		$	12,141		$	230,388


% of total		28	%		34	%		33	%		5	%		100	%

Concentration of investment risk

The Top 10 corporate bond issuers account for 23.2% of the Company’s total corporate bonds within the Funds Held - Directly Managed Portfolio. The single largest issuer accounts for 3.2% 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															For the year ended
	December 31, 2011			September 30, 2011			June 30, 2011			March 31, 2011			December 31, 2010			December 31, 2011			December 31, 2010


Fixed maturities	$	138,233		$	145,861		$	141,535		$	135,947		$	136,724		$	561,576		$	580,258
Short-term investments, cash and cash equivalents		571			887			1,142			1,243			2,358			3,843			8,541
Equities		4,758			4,322			6,545			4,190			5,441			19,815			20,794
Funds held and other		11,095			14,522			11,295			12,590			14,535			49,502			52,794
Funds held - directly managed		11,936			9,180			8,635			8,168			13,596			37,919			51,775
Investment expenses		(11,053	)		(11,125	)		(10,824	)		(10,505	)		(11,850	)		(43,507	)		(41,380	)

Net investment income ⁽¹⁾	$	155,540		$	163,647		$	158,328		$	151,633		$	160,804		$	629,148		$	672,782


Net realized investment gains on fixed maturities and short-term investments	$	73,155		$	63,611		$	13,007		$	7,434		$	66,432		$	157,207		$	173,426
Net realized investment gains on equities		25,136			2,480			26,219			37,031			6,943			90,866			44,736
Net realized (losses) gains on other invested assets		(27,529	)		(97,741	)		(63,269	)		12,244			(6,259	)		(176,295	)		(68,568	)
Change in net unrealized (losses) gains on other invested assets		(1,360	)		(212	)		(7,253	)		(37,453	)		46,092			(46,278	)		3,742
Change in net unrealized investment (losses) gains on fixed maturities and short-term investments		(51,964	)		189,956			131,101			(140,869	)		(254,501	)		128,224			142,634
Change in net unrealized investment gains (losses) on equities		57,314			(145,095	)		(30,197	)		16,118			86,373			(101,860	)		64,825
Net other realized and unrealized investment gains (losses)		2,400			1,193			23			1			(3	)		3,617			13,335
Net realized and unrealized investment (losses) gains on funds held - directly managed		(2,599	)		11,947			8,568			(6,705	)		(28,278	)		11,211			27,352

Net realized and unrealized investment gains (losses)	$	74,553		$	26,139		$	78,199		$	(112,199	)	$	(83,201	)	$	66,692		$	401,482

(1) Comparisons of net investment income between periods include the impact of foreign exchange variances. For the three months ended December 31, 2011, net investment income includes foreign exchange impacts of $1.6 million compared to the three months ended December 31, 2010. For the year ended December 31, 2011, net investment income includes foreign exchange impacts of $6.2 million compared to the year ended December 31, 2010.

PartnerRe Ltd.

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

Funds Held - Directly Managed Portfolio

(Expressed in thousands of U.S. dollars)

(Unaudited)


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

Fixed maturities	$	7,684		$	7,778		$	8,130		$	7,950		$	11,099		$	31,542		$	46,200
Short-term investments, cash and cash equivalents		681			667			380			178			19			1,906			1,607
Other		3,779			968			326			329			3,055			5,402			6,078
Investment expenses		(208	)		(233	)		(201	)		(289	)		(577	)		(931	)		(2,110	)

Net investment income	$	11,936		$	9,180		$	8,635		$	8,168		$	13,596		$	37,919		$	51,775


Net realized investment (losses) gains on fixed maturities and short-term investments	$	(496	)	$	121		$	471		$	5,273		$	1,517		$	5,369		$	1,041
Net realized investment gains (losses) on other invested assets		49			(93	)		2			—			539			(42	)		1,635
Change in net unrealized investment (losses) gains on fixed maturities and short-term investments		(868	)		14,676			10,756			(12,250	)		(28,714	)		12,314			27,568
Change in net unrealized investment (losses) gains on other invested assets		(1,284	)		(2,757	)		(2,661	)		272			(1,620	)		(6,430	)		(2,892	)

Net realized and unrealized investment (losses) gains on funds held - directly managed	$	(2,599	)	$	11,947		$	8,568		$	(6,705	)	$	(28,278	)	$	11,211		$	27,352

PartnerRe Ltd.

Analysis of Unpaid Losses and Loss Expenses

(Expressed in thousands of U.S. dollars)

(Unaudited)


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

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

Gross liability at beginning of period	$	11,352,599		$	12,016,271		$	11,887,316		$	10,666,604		$	10,705,562		$	10,666,604		$	10,811,483
Reinsurance recoverable at beginning of period		(359,203	)		(378,581	)		(383,446	)		(348,747	)		(352,087	)		(348,747	)		(336,352	)

Net liability at beginning of period		10,993,396			11,637,690			11,503,870			10,317,857			10,353,475			10,317,857			10,475,131

Net incurred losses related to:
Current year		949,645			889,469			809,445			1,604,208			768,522			4,252,766			3,137,874
Prior years		(51,573	)		(175,961	)		(161,022	)		(141,901	)		(127,929	)		(530,457	)		(477,883	)

		898,072			713,508			648,423			1,462,307			640,593			3,722,309			2,659,991

Change in reserve agreement ⁽¹⁾		(18,682	)		(14,630	)		(27,705	)		(367	)		(6,213	)		(61,383	)		(66,783	)

Net losses paid		(785,542	)		(1,062,917	)		(616,941	)		(525,159	)		(621,330	)		(2,990,559	)		(2,579,018	)

Effects of foreign exchange rate changes		(167,258	)		(280,255	)		130,043			249,232			(48,668	)		(68,238	)		(171,464	)


Net liability at end of period		10,919,986			10,993,396			11,637,690			11,503,870			10,317,857			10,919,986			10,317,857
Reinsurance recoverable at end of period		353,105			359,203			378,581			383,446			348,747			353,105			348,747

Gross liability at end of period	$	11,273,091		$	11,352,599		$	12,016,271		$	11,887,316		$	10,666,604		$	11,273,091		$	10,666,604


Breakdown of gross liability at end of period:
Case reserves	$	5,187,761		$	5,198,774		$	5,093,142		$	4,971,016		$	4,652,281		$	5,187,761		$	4,652,281
Additional case reserves		495,593			563,690			1,284,603			477,079			326,721			495,593			326,721
Incurred but not reported reserves		5,589,737			5,590,135			5,638,526			6,439,221			5,687,602			5,589,737			5,687,602

Gross liability at end of period	$	11,273,091		$	11,352,599		$	12,016,271		$	11,887,316		$	10,666,604		$	11,273,091		$	10,666,604


Breakdown of gross liability at end of period by Non-life sub-segment:
North America	$	3,287,364		$	3,294,447		$	3,293,224		$	3,287,790		$	3,211,622		$	3,287,364		$	3,211,622
Global (Non-U.S.) P&C		2,631,593			2,726,094			2,911,178			2,970,488			2,804,937			2,631,593			2,804,937
Global (Non-U.S.) Specialty		3,922,404			3,902,088			3,970,089			3,907,487			3,781,341			3,922,404			3,781,341
Catastrophe		1,431,730			1,429,970			1,841,780			1,721,551			868,704			1,431,730			868,704

Gross liability at end of period	$	11,273,091		$	11,352,599		$	12,016,271		$	11,887,316		$	10,666,604		$	11,273,091		$	10,666,604


Unrecognized time value of non-life reserves	$	560,860		$	614,961		$	968,950		$	1,072,236		$	949,210		$	560,860		$	949,210

Non-life paid loss ratio data:
Non-life paid losses to incurred losses ratio		87.5	%		149.0	%		95.1	%		35.9	%		97.0	%		80.3	%		97.0	%
Non-life paid losses to net premiums earned ratio		80.3	%		97.5	%		68.1	%		59.6	%		63.3	%		77.6	%		63.9	%

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


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

Gross liability at beginning of period	$	1,678,201		$	1,726,180		$	1,670,768		$	1,750,410		$	1,735,930		$	1,750,410		$	1,615,193
Reinsurance recoverable at beginning of period		(10,633	)		(11,624	)		(11,120	)		(14,739	)		(15,054	)		(14,739	)		(20,465	)

Net liability at beginning of period		1,667,568			1,714,556			1,659,648			1,735,671			1,720,876			1,735,671			1,594,728

Net incurred losses related to:
Current year		175,199			163,065			163,884			148,623			186,646			650,771			611,795
Prior years		(4,067	)		5,053			2,216			(3,713	)		(9,468	)		(510	)		11,832

		171,132			168,118			166,100			144,910			177,178			650,261			623,627

Net losses paid ⁽¹⁾		(154,225	)		(141,734	)		(130,994	)		(291,973	)		(133,299	)		(718,926	)		(419,944	)

Effects of foreign exchange rate changes		(48,687	)		(73,372	)		19,802			71,040			(29,084	)		(31,218	)		(62,740	)


Net liability at end of period		1,635,788			1,667,568			1,714,556			1,659,648			1,735,671			1,635,788			1,735,671
Reinsurance recoverable at end of period		9,874			10,633			11,624			11,120			14,739			9,874			14,739

Gross liability at end of period	$	1,645,662		$	1,678,201		$	1,726,180		$	1,670,768		$	1,750,410		$	1,645,662		$	1,750,410

(1) Net losses paid for the three months ended March 31, 2011 and for the year ended December 31, 2011 include 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															For the year ended
	December 31, 2011			September 30, 2011			June 30, 2011			March 31, 2011			December 31, 2010			December 31, 2011			December 31, 2010


Prior year net favorable (adverse) reserve development:

Non-life segment:
North America	$	20,178		$	74,769		$	54,513		$	39,720		$	21,451		$	189,180		$	165,780
Global (Non-U.S.) P&C		26,369			34,945			22,228			32,454			34,867			115,995			97,539
Global (Non-U.S.) Specialty		6,478			30,027			57,847			34,623			56,760			128,975			170,931
Catastrophe		(1,452	)		36,220			26,434			35,104			14,851			96,307			43,633

Total Non-life net prior year reserve development	$	51,573		$	175,961		$	161,022		$	141,901		$	127,929		$	530,457		$	477,883


Non-life segment:
Net prior year reserve development due to changes in premiums	$	(24,150	)	$	(8,461	)	$	2,424		$	(28,314	)	$	7,470		$	(58,501	)	$	(7,509	)
Net prior year reserve development due to all other factors ⁽²⁾		75,723			184,422			158,598			170,215			120,459			588,958			485,392

Total Non-life net prior year reserve development	$	51,573		$	175,961		$	161,022		$	141,901		$	127,929		$	530,457		$	477,883


Life segment:
Net prior year reserve development due to GMDB ⁽¹⁾	$	(32	)	$	(5,475	)	$	(214	)	$	10,967		$	15,767		$	5,245		$	16,725
Net prior year reserve development due to all other factors ⁽²⁾		4,099			422			(2,002	)		(7,254	)		(6,299	)		(4,735	)		(28,557	)

Total Life net prior year reserve development	$	4,067		$	(5,053	)	$	(2,216	)	$	3,713		$	9,468		$	510		$	(11,832	)

(1) The guaranteed minimum death benefit (GMDB) reserves are sensitive to volatility in certain referenced global equity markets. At December 31, 2011, a 10% increase in the referenced global equity market would have decreased reserves by approximately $4.8 million, while a 10% decrease in the referenced global equity market would have increased reserves by approximately $6.1 million.

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

PartnerRe Ltd.

Reconciliation of GAAP and non-GAAP measures

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

(Unaudited)


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

Reconciliation of GAAP and non-GAAP measures:
Annualized return on beginning diluted book value per common share calculated with net (loss) income per share available to common shareholders ⁽¹⁾		(2.1	) %		10.4	%		7.2	%		(51.2	) %		3.1	%		(9.0	) %		12.4	%
Less:
Annualized net realized and unrealized investment gains (losses), net of tax, on beginning diluted book value per common share ⁽¹⁾		3.6			0.4			2.5			(5.6	)		(4.6	)		0.2			4.6
Annualized net foreign exchange gains (losses), net of tax, on beginning diluted book value per common share ⁽¹⁾		3.2			—			0.6			0.4			0.9			1.0			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	)		(0.3	)		(0.1	)		0.1			0.5			(0.1	)		0.2

Annualized operating return on beginning diluted book value per common share ⁽¹⁾		(8.8	) %		10.3	%		4.2	%		(46.1	) %		6.3	%		(10.1	) %		7.4	%


Net (loss) income	$	(17,643	)	$	180,123		$	124,185		$	(806,956	)	$	57,035		$	(520,291	)	$	852,552
Less:
Net realized and unrealized investment gains (losses), net of tax		56,384			6,167			40,954			(88,401	)		(71,793	)		15,104			301,462
Net foreign exchange gains (losses), net of tax		50,150			(106	)		9,069			7,321			14,260			66,433			12,847
Interest in (losses) earnings of equity investments, net of tax		(1,894	)		(4,788	)		(1,622	)		1,065			7,155			(7,239	)		11,911
Dividends to preferred shareholders		15,405			14,352			8,631			8,631			8,631			47,020			34,525

Operating (loss) earnings available to common shareholders	$	(137,688	)	$	164,498		$	67,153		$	(735,572	)	$	98,782		$	(641,609	)	$	491,807


Per diluted share:
Net (loss) income	$	(0.49	)	$	2.43		$	1.69		$	(11.99	)	$	0.65		$	(8.40	)	$	10.46
Less:
Net realized and unrealized investment gains (losses), net of tax		0.85			0.09			0.60			(1.30	)		(0.96	)		0.23			3.86
Net foreign exchange gains (losses), net of tax		0.75			—			0.13			0.11			0.19			0.98			0.16
Interest in (losses) earnings of equity investments, net of tax		(0.03	)		(0.07	)		(0.02	)		0.02			0.09			(0.11	)		0.15

Operating (loss) earnings ⁽²⁾	$	(2.06	)	$	2.41		$	0.98		$	(10.82	)	$	1.33		$	(9.50	)	$	6.29

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

(2) See page 36 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 three months ended			For the year ended
	December 31, 2010			December 31, 2010


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

Annualized operating return on beginning common shareholders’ equity - previously published		6.3	%		7.1	%
Less:
Impact of excluding net foreign exchange gains, net of tax		0.9			0.2
Impact of redefining calculation to a per diluted share basis		(0.9	)		(0.5	)


Annualized operating return on beginning diluted book value per common share - redefined		6.3	%		7.4	%


Operating earnings available to common shareholders - previously published	$	113,042		$	504,654
Less:
Net foreign exchange losses		(8,260	)		(20,686	)
Tax benefit on net foreign exchange losses		22,520			33,533

Net foreign exchange gains, net of tax		14,260			12,847


Operating earnings available to common shareholders - redefined	$	98,782		$	491,807


Per diluted share:
Operating earnings - previously published	$	1.52		$	6.45
Less:
Net foreign exchange losses		(0.11	)		(0.27	)
Tax benefit on net foreign exchange losses		0.30			0.43

Net foreign exchange gains, net of tax		0.19			0.16


Operating earnings - redefined	$	1.33		$	6.29

(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)


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


Reconciliation of GAAP and non-GAAP measures:

Shareholders’ equity	$	6,467,542	$	6,707,683	$	6,632,044	$	6,174,833	$	7,206,919	$	7,645,727
Less:
Preferred shares, aggregate liquidation value		893,750		893,750		893,750		520,000		520,000		520,000


Common shareholders’ equity		5,573,792		5,813,933		5,738,294		5,654,833		6,686,919		7,125,727

Less:
Net unrealized gains on fixed income securities and funds held - directly managed, net of tax		451,946		501,803		350,653		242,193		364,032		234,153


Book value excluding net unrealized gains or losses on fixed income securities and funds held - directly managed, net of tax	$	5,121,846	$	5,312,130	$	5,387,641	$	5,412,640	$	6,322,887	$	6,891,574


Divided by:
Number of common shares and common share equivalents outstanding		65,715.7		68,188.1		68,552.0		68,542.4		71,312.3		84,319.7

Equals:
Diluted book value per common share and common share equivalents outstanding, excluding net unrealized gains or losses on fixed income securities and funds held - directly managed, net of tax	$	77.94	$	77.90	$	78.59	$	78.97	$	88.66	$	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)


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

Total shareholders’ equity	$	6,467,542		$	6,707,683		$	6,632,044		$	6,174,833		$	7,206,919		$	7,645,727
Less: preferred shares		(893,750	)		(893,750	)		(893,750	)		(520,000	)		(520,000	)		(520,000	)

Common shareholders’ equity	$	5,573,792		$	5,813,933		$	5,738,294		$	5,654,833		$	6,686,919		$	7,125,727

Basic common shares outstanding		65,322.3			67,749.4			67,737.8			67,439.6			69,986.2			82,580.7


Basic book value per common share	$	85.33		$	85.82		$	84.71		$	83.85		$	95.55		$	86.29


Diluted book value per common share

Common shareholders’ equity	$	5,573,792		$	5,813,933		$	5,738,294		$	5,654,833		$	6,686,919		$	7,125,727

Basic common shares outstanding		65,322.3			67,749.4			67,737.8			67,439.6			69,986.2			82,580.7
Add: Stock options and other		809.4			688.6			2,329.0			2,769.2			3,293.4			3,331.7
Add: Restricted stock units		489.0			573.9			647.6			825.6			940.4			1,189.1
Less: Stock options and other bought back via treasury stock method		(905.0	)		(823.8	)		(2,162.4	)		(2,492.0	)		(2,907.7	)		(2,781.8	)

Diluted common shares and common share equivalents outstanding		65,715.7			68,188.1			68,552.0			68,542.4			71,312.3			84,319.7


Diluted book value per common share	$	84.82		$	85.26		$	83.71		$	82.50		$	93.77		$	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 shares 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 December 31, 2011						As of and for the year ended December 31, 2011

	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	$	5,814		$	85.26		$	6,687		$	93.77

Technical result		(127	)		(1.89	)		(663	)		(9.82	)
Other operating expenses		(113	)		(1.69	)		(435	)		(6.44	)
Net investment income		156			2.32			629			9.31
Amortization of intangible assets		(9	)		(0.13	)		(36	)		(0.54	)
Other, net		(10	)		(0.14	)		(42	)		(0.61	)
Operating income tax expense		(20	)		(0.30	)		(48	)		(0.71	)
Preferred dividends		(15	)		(0.23	)		(47	)		(0.69	)

Operating loss		(138	)		(2.06	)		(642	)		(9.50	)

Net realized and unrealized investment gains, net of tax		56			0.85			15			0.23
Net foreign exchange gains, net of tax		50			0.75			67			0.98
Interest in losses of equity investments, net of tax		(1	)		(0.03	)		(7	)		(0.11	)

Net loss available to common shareholders		(33	)		(0.49	)		(567	)		(8.40	)

Common share dividends		(40	)		(0.60	)		(159	)		(2.35	)
Change in currency translation adjustment		(1	)		(0.02	)		(12	)		(0.17	)
Repurchase of common shares, net		(162	)		0.68			(358	)		0.93
Preferred shares issuance cost		—			—			(12	)		(0.18	)
Change in other accumulated comprehensive income or loss, net of tax		(4	)		(0.06	)		(5	)		(0.07	)

Impact of change in number of common and common share equivalents outstanding		n/a			0.05			n/a			1.29

Common shareholders’ equity / diluted book value per common

share at end of period	$	5,574		$	84.82		$	5,574		$	84.82

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		(33	)		(0.43	)		(5	)		(0.10	)
Operating income tax expense		(62	)		(0.79	)		(139	)		(2.18	)
Preferred dividends		(35	)		(0.44	)		(35	)		(0.54	)

Operating earnings		492			6.29			931			14.57

Net realized and unrealized investment gains, 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 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
(Repurchase) 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														For the year ended
	December 31, 2011		September 30, 2011			June 30, 2011			March 31, 2011			December 31, 2010			December 31, 2011			December 31, 2010
Acquisition related expenses:
Corporate expenses - acquisition related	$	368	$	518		$	1,168		$	2,335		$	6,155		$	4,389		$	16,075
Corporate expenses - voluntary termination plan		—		—			—			—			6,323			—			40,684
Amortization of intangible assets		8,893		9,520			9,165			8,827			8,821			36,405			31,461
Amortization of intangible assets included in acquisition costs ⁽¹⁾		—		1,914			2,829			3,700			3,715			8,443			37,094


Total acquisition related expenses	$	9,261	$	11,952		$	13,162		$	14,862		$	25,014		$	49,237		$	125,314

Less: Amortization of intangible assets included in acquisition costs		—		(1,914	)		(2,829	)		(3,700	)		(3,715	)		(8,443	)		(37,094	)


Total acquisition related expenses, excluding those included in acquisition costs	$	9,261	$	10,038		$	10,333		$	11,162		$	21,299		$	40,794		$	88,220

Divided by:
Weighted average number of common shares and common share equivalents outstanding		66,877.1		68,182.0			68,442.3			67,997.4			74,494.7			67,558.7			78,234.3

Impact of acquisition related expenses on diluted operating earnings or loss per share, pre-tax	$	0.14	$	0.15		$	0.15		$	0.16		$	0.29		$	0.60		$	1.13


												Total amortization of intangible assets ⁽³⁾
Estimated remaining amortization of intangible assets, pre-tax ⁽²⁾:
For the three months ended March 31, 2012												$	8,893
For the three months ended June 30, 2012													8,893
For the three months ended September 30, 2012													8,893
For the three months ended December 31, 2012													5,120

Total for the year ended December 31, 2012													31,799
For the year ended December 31, 2013													19,479
For the year ended December 31, 2014													15,950
For the year ended December 31, 2015													13,900
For the year ended December 31, 2016 and thereafter													45,389

Total												$	126,517

(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 $133.9 million and $178.7 million at December 31, 2011 and December 31, 2010, respectively, are recorded gross of a deferred tax benefit of $40.6 million and $46.9 million, respectively, and includes a $7.4 million intangible asset related to U.S. licenses that is not being amortized.

Attached files

PARTNERRE LTD Reports

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