Exhibit 99.2

 

PartnerRe Ltd.

Financial Supplement

Financial Information

as at March 31, 2012

(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/A and Quarterly Reports on Form 10-Q.

---

PartnerRe Ltd.

Financial Supplement - March 31, 2012

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 Income (Loss)			4
Segment Information
For the three months ended March 31, 2012 and 2011			5-6
Non-life segment			7
North America sub-segment			8
Global (Non-U.S.) P&C sub-segment			9
Global (Non-U.S.) Specialty sub-segment			10
Catastrophe sub-segment			11
Life segment			12
Corporate and Other			13
Distribution of Premiums
Distribution of Premiums by line of business, geography and production source			14
Distribution of Premiums by reinsurance type			15
Investments
Investment Portfolio			16
Distribution of Corporate Bonds			17
Distribution of Equities			18
Distribution of Mortgage/Asset-Backed Securities			19
Other Invested Assets including Private Markets and Derivative Exposures			20
Funds Held - Directly Managed Portfolio			21
Distribution of Corporate Bonds - Funds Held - Directly Managed Portfolio			22
Composition of Net Investment Income and Net Realized and Unrealized Investment Gains (Losses)			23
Composition of Net Investment Income and Net Realized and Unrealized Investment Gains (Losses) on Funds Held - Directly Managed Portfolio			24
Loss Reserves
Analysis of Unpaid Losses and Loss Expenses			25
Analysis of Policy Benefits for Life and Annuity Contracts			26
Reserve Development			27
Natural Catastrophe Probable Maximum Losses (PMLs)			28
Reconciliation of GAAP and non-GAAP measures			29-30
Diluted Book Value per Common Share - Treasury Stock Method			31
Diluted Book Value per Common Share - Rollforward			32-33

---

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 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, 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. For a reconciliation of the previously published non-GAAP measures for the year ended December 31, 2010 to the redefined non-GAAP measures, see the Company’s financial supplement as of December 31, 2011.

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.

---

PartnerRe Ltd.

Consolidated Income Statements

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

(Unaudited)

 

		For the three months ended																						For the year ended
		March 31, 2012				December 31, 2011				September 30, 2011				June 30, 2011				March 31, 2011						December 31, 2011				December 31, 2010
Revenues
Gross premiums written		$	1,567,483			$	897,962			$	1,095,326			$	1,082,205			$	1,557,561					$	4,633,054			$	4,885,266
Net premiums written		$	1,473,286			$	879,886			$	1,079,557			$	1,056,467			$	1,470,419					$	4,486,329			$	4,705,116
(Increase) decrease in unearned premiums			(483,456	)			301,515				214,762				50,978				(405,830	)					161,425				71,355
Net premiums earned			989,830				1,181,401				1,294,319				1,107,445				1,064,589						4,647,754				4,776,471
Net investment income			146,896				155,540				163,647				158,328				151,633						629,148				672,782
Net realized and unrealized investment gains (losses)			192,735				74,553				26,139				78,199				(112,199	)					66,692				401,482
Other income			2,746				3,072				1,434				1,596				1,813						7,915				10,470
Total revenues			1,332,207				1,414,566				1,485,539				1,345,568				1,105,836						5,351,509				5,861,205
Expenses
Losses and loss expenses and life policy benefits			576,486				1,069,204				881,626				814,523				1,607,217						4,372,570				3,283,618
Acquisition costs			211,608				238,772				262,489				229,251				207,849						938,361				972,537
Other operating expenses			98,174				113,033				103,822				113,694				104,297						434,846				539,751
Interest expense			12,220				12,219				12,216				12,214				12,300						48,949				44,413
Amortization of intangible assets			8,893				8,893				9,520				9,165				8,827						36,405				31,461
Net foreign exchange losses (gains)			2,589				(14,655	)			(10,587	)			(8,737	)			(695	)					(34,675	)			20,686
Total expenses			909,970				1,427,466				1,259,086				1,170,110				1,939,795						5,796,456				4,892,466
Income (loss) before taxes and interest in earnings (losses) of equity investments			422,237				(12,900	)			226,453				175,458				(833,959	)					(444,947	)			968,739
Income tax expense (benefit)			67,174				3,341				41,803				50,085				(26,258	)					68,972				128,784
Interest in earnings (losses) of equity investments			5,078				(1,402	)			(4,527	)			(1,188	)			745						(6,372	)			12,597
Net income (loss)		$	360,141			$	(17,643	)		$	180,123			$	124,185			$	(806,956	)				$	(520,291	)		$	852,552
Preferred dividends		$	15,405			$	15,405			$	14,352			$	8,631			$	8,631					$	47,020			$	34,525
Operating earnings (loss) available to common shareholders		$	181,695			$	(137,688	)		$	164,498			$	67,153			$	(735,572	)				$	(641,609	)		$	491,807
Comprehensive income (loss), net of tax		$	376,237			$	(22,420	)		$	126,271			$	128,568			$	(769,410	)				$	(536,991	)		$	771,681
Per Share Data:
Earnings (loss) per common share:
Basic operating earnings (loss)		$	2.78			$	(2.06	)		$	2.43			$	0.99			$	(10.82	)				$	(9.50	)		$	6.40
Net realized and unrealized investment gains (losses), net of tax			2.43				0.85				0.09				0.61				(1.30	)					0.23				3.92
Net foreign exchange (losses) gains, net of tax			(0.02	)			0.75				—				0.13				0.11						0.98				0.17
Interest in earnings (losses) of equity investments, net of tax			0.08				(0.03	)			(0.07	)			(0.02	)			0.02						(0.11	)			0.16
Basic net income (loss)		$	5.27			$	(0.49	)		$	2.45			$	1.71			$	(11.99	)				$	(8.40	)		$	10.65
Weighted average number of common shares outstanding			65,404.2				66,877.1				67,743.3				67,628.1				67,997.4						67,558.7				76,839.5
Diluted operating earnings (loss)		$	2.76			$	(2.06	)		$	2.41			$	0.98			$	(10.82	)				$	(9.50	)		$	6.29
Net realized and unrealized investment gains (losses), net of tax			2.42				0.85				0.09				0.60				(1.30	)					0.23				3.86
Net foreign exchange (losses) gains, net of tax			(0.02	)			0.75				—				0.13				0.11						0.98				0.16
Interest in earnings (losses) of equity investments, net of tax			0.08				(0.03	)			(0.07	)			(0.02	)			0.02						(0.11	)			0.15
Diluted net income (loss)		$	5.24			$	(0.49	)		$	2.43			$	1.69			$	(11.99	)				$	(8.40	)		$	10.46
Weighted average number of common shares and common share equivalents outstanding			65,842.8				66,877.1				68,182.0				68,442.3				67,997.4						67,558.7				78,234.3
Dividends declared per common share		$	0.62			$	0.60			$	0.60			$	0.60			$	0.55					$	2.35			$	2.05

 

1

---

PartnerRe Ltd.

Condensed Consolidated Balance Sheets

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

(Unaudited)

 

		March 31, 2012								December 31, 2011								September 30, 2011								June 30, 2011								March 31, 2011										December 31, 2010
Assets
Total investments		$	15,754,854							$	15,287,245							$	15,789,856							$	15,955,923							$	14,684,553									$	14,297,867
Funds held - directly managed			1,264,383								1,268,010								1,322,761								1,379,513								1,514,453										1,772,118
Cash and cash equivalents			1,210,229								1,342,257								1,073,432								1,606,842								2,009,737										2,111,084
Accrued investment income			181,898								189,074								198,503								181,806								187,718										201,928
Reinsurance balances receivable			2,571,038								2,059,976								2,313,538								2,517,586								2,515,845										2,076,884
Reinsurance recoverable on paid and unpaid losses			432,059								397,788								447,015								489,415								456,352										382,878
Funds held by reinsured companies			799,988								796,290								814,950								846,466								848,182										937,032
Deferred acquisition costs			636,537								547,202								602,275								661,564								671,417										595,557
Goodwill			455,533								455,533								455,533								455,533								455,533										455,533
Intangible assets			124,974								133,867								142,760								154,194								166,187										178,715
Other assets			364,163								378,131								458,490								351,080								392,798										354,775
Total assets		$	23,795,656							$	22,855,373							$	23,619,113							$	24,599,922							$	23,902,775									$	23,364,371
Liabilities
Unpaid losses and loss expenses		$	11,143,354							$	11,273,091							$	11,352,599							$	12,016,271							$	11,887,316									$	10,666,604
Policy benefits for life and annuity contracts			1,707,982								1,645,662								1,678,201								1,726,180								1,670,768										1,750,410
Unearned premiums			2,017,177								1,448,841								1,787,351								2,067,996								2,102,053										1,599,139
Other reinsurance balances payable			522,701								443,873								493,926								554,386								505,198										491,194
Debt obligations			820,989								820,989								820,989								820,989								820,989										820,989
Other liabilities			796,582								755,375								778,364								782,056								741,618										829,116
Total liabilities			17,008,785								16,387,831								16,911,430								17,967,878								17,727,942										16,157,452
Total shareholders’ equity			6,786,871								6,467,542								6,707,683								6,632,044								6,174,833										7,206,919
Total liabilities and shareholders’ equity		$	23,795,656							$	22,855,373							$	23,619,113							$	24,599,922							$	23,902,775									$	23,364,371
Shareholders’ Equity Per Common Share (excluding preferred shares)		$	90.23							$	85.33							$	85.82							$	84.71							$	83.85									$	95.55
Diluted Book Value Per Common Share and Common Share Equivalents Outstanding (assuming exercise of all share-based awards)		$	89.63							$	84.82							$	85.26							$	83.71							$	82.50									$	93.77
Number of Common Shares and Common Share Equivalents Outstanding			65,751.6								65,715.7								68,188.1								68,552.0								68,542.4										71,312.3
Capital Structure:
Senior notes (1)		$	750,000				10	%		$	750,000				10	%		$	750,000				10	%		$	750,000				10	%		$	750,000				11	%				$	750,000				9	%
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				893,750				12				520,000				7						520,000				7
Common shareholders’ equity			5,893,121				77				5,573,792				77				5,813,933				77				5,738,294				77				5,654,833				81						6,686,919				83
Total Capital		$	7,600,255				100	%		$	7,280,926				100	%		$	7,521,067				100	%		$	7,445,428				100	%		$	6,988,217				100	%				$	8,020,303				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.

 

2

---

PartnerRe Ltd.

Condensed Consolidated Statements of Cash Flows

(Expressed in millions of U.S. dollars)

(Unaudited)

 

						For the three months ended																		For the year ended
		March 31, 2012				December 31, 2011				September 30, 2011				June 30, 2011				March 31, 2011						December 31, 2011				December 31, 2010
Net cash provided by (used in) operating activities:
Underwriting operations (1)		$	(68	)		$	(140	)		$	(314	)		$	84			$	340					$	(29	)		$	650
Investment income			188				189				167				186				189						731				762
Taxes and foreign exchange			(41	)			(59	)			(12	)			(14	)			(43	)					(128	)			(185	)
Net cash provided by (used in) operating activities		$	79			$	(10	)		$	(159	)		$	256			$	486					$	574			$	1,227
Net cash provided by (used in) operating activities		$	79			$	(10	)		$	(159	)		$	256			$	486					$	574			$	1,227
Net cash (used in) provided by investing activities			(168	)			519				(292	)			(987	)			(320	)					(1,080	)			1,102
Net cash (used in) provided by financing activities			(50	)			(223	)			(55	)			322				(286	)					(242	)			(922	)
Effect of foreign exchange rate changes on cash			7				(17	)			(28	)			6				19						(21	)			(34	)
(Decrease) increase in cash and cash equivalents			(132	)			269				(534	)			(403	)			(101	)					(769	)			1,373
Cash and cash equivalents - beginning of period			1,342				1,073				1,607				2,010				2,111						2,111				738
Cash and cash equivalents - end of period		$	1,210			$	1,342			$	1,073			$	1,607			$	2,010					$	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.

 

3

---

PartnerRe Ltd.

Consolidated Statements of Comprehensive Income (Loss)

(Expressed in thousands of U.S. dollars)

(Unaudited)

 

						For the three months ended
		March 31, 2012				December 31, 2011				September 30, 2011				June 30, 2011				March 31, 2011
Net income (loss)		$	360,141			$	(17,643	)		$	180,123			$	124,185			$	(806,956	)
Change in currency translation adjustment			17,207				(960	)			(54,958	)			6,303				37,781
Change in net unrealized gains or losses on investments, net of tax			(242	)			(204	)			(244	)			(249	)			(252	)
Change in unfunded pension obligation, net of tax			(869	)			(3,613	)			1,350				(1,671	)			17
Comprehensive income (loss)		$	376,237			$	(22,420	)		$	126,271			$	128,568			$	(769,410	)

 

		For the year ended
		December 31, 2011				December 31, 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

 

4

---

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

 

						For the three months ended March 31, 2012
		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		$	341			$	347			$	417			$	242			$	1,347			$	217			$	3			$	1,567
Net premiums written		$	341			$	346			$	353			$	215			$	1,255			$	215			$	3			$	1,473
Increase in unearned premiums			(103	)			(187	)			(45	)			(125	)			(460	)			(21	)			(2	)			(483	)
Net premiums earned		$	238			$	159			$	308			$	90			$	795			$	194			$	1			$	990
Losses and loss expenses and life policy benefits			(133	)			(98	)			(194	)			(2	)			(427	)			(149	)			—				(576	)
Acquisition costs			(66	)			(38	)			(70	)			(9	)			(183	)			(29	)			—				(212	)
Technical result		$	39			$	23			$	44			$	79			$	185			$	16			$	1			$	202
Other income																			1				—				1				2
Other operating expenses																			(63	)			(12	)			(23	)			(98	)
Underwriting result																		$	123			$	4				n/a			$	106
Net investment income																							17				130				147
Allocated underwriting result (1)																						$	21				n/a				n/a
Net realized and unrealized investment gains																											193				193
Interest expense																											(12	)			(12	)
Amortization of intangible assets																											(9	)			(9	)
Net foreign exchange losses																											(3	)			(3	)
Income tax expense																											(67	)			(67	)
Interest in earnings of equity investments																											5				5
Net income																											n/a			$	360
Loss ratio (2)			55.9	%			61.6	%			63.2	%			2.1	%			53.8	%
Acquisition ratio (3)			27.5				23.9				22.6				10.5				23.0
Technical ratio (4)			83.4	%			85.5	%			85.8	%			12.6	%			76.8	%
Other operating expense ratio (5)																			7.9
Combined ratio (6)																			84.7	%

 

(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.

 

5

---

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

 

						For the three months ended March 31, 2011
		North America				Global (Non-U.S.) P&C				Global (Non-U.S.) Specialty				Catastrophe				Total Non- life Segment				Life Segment				Corporate and Other				Total
Gross premiums written		$	338			$	318			$	375			$	317			$	1,348			$	208			$	2			$	1,558
Net premiums written		$	338			$	317			$	315			$	292			$	1,262			$	206			$	2			$	1,470
(Increase) decrease in unearned premiums			(79	)			(136	)			2				(168	)			(381	)			(22	)			(2	)			(405	)
Net premiums earned		$	259			$	181			$	317			$	124			$	881			$	184			$	—			$	1,065
Losses and loss expenses and life policy benefits			(174	)			(150	)			(221	)			(918	)			(1,463	)			(145	)			—				(1,608	)
Acquisition costs			(66	)			(40	)			(80	)			8				(178	)			(30	)			—				(208	)
Technical result		$	19			$	(9	)		$	16			$	(786	)		$	(760	)		$	9			$	—			$	(751	)
Other income																			1				—				1				2
Other operating expenses																			(66	)			(12	)			(26	)			(104	)
Underwriting result																		$	(825	)		$	(3	)			n/a			$	(853	)
Net investment income																							15				137				152
Allocated underwriting result (1)																						$	12				n/a				n/a
Net realized and unrealized investment losses																											(112	)			(112	)
Interest expense																											(12	)			(12	)
Amortization of intangible assets																											(9	)			(9	)
Net foreign exchange gains																											—				—
Income tax benefit																											26				26
Interest in earnings of equity investments																											1				1
Net loss																											n/a			$	(807	)
Loss ratio (2)			67.0	%			82.8	%			69.7	%			743.0	%			166.0	%
Acquisition ratio (3)			25.6				22.1				25.3				(6.7	)			20.3
Technical ratio (4)			92.6	%			104.9	%			95.0	%			736.3	%			186.3	%
Other operating expense ratio (5)																			7.4
Combined ratio (6)																			193.7	%

 

6

---

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Non-life segment

 

		For the three months ended																						For the year ended
		March 31, 2012  (A)				December 31, 2011				September 30, 2011				June 30, 2011				March 31, 2011						December 31, 2011				December 31, 2010
Net premiums written		$	1,255			$	690			$	880			$	857			$	1,262					$	3,688			$	3,961
Net premiums earned		$	795			$	975			$	1,083			$	905			$	881					$	3,844			$	4,029
Losses and loss expenses			(427	)			(898	)			(710	)			(646	)			(1,463	)					(3,717	)			(2,657	)
Acquisition costs			(183	)			(211	)			(229	)			(203	)			(178	)					(821	)			(856	)
Technical result		$	185			$	(134	)		$	144			$	56			$	(760	)				$	(694	)		$	516
Other income			1				2				1				—				1						4				5
Other operating expenses			(63	)			(78	)			(69	)			(71	)			(66	)					(283	)			(317	)
Underwriting result		$	123			$	(210	)		$	76			$	(15	)		$	(825	)				$	(973	)		$	204
Loss ratio (2)			53.8	%			92.1	%			65.6	%			71.4	%			166.0	%					96.7	%			65.9	%
Acquisition ratio (3)			23.0				21.6				21.1				22.4				20.3						21.3				21.3
Technical ratio (4)			76.8	%			113.7	%			86.7	%			93.8	%			186.3	%					118.0	%			87.2	%
Other operating expense ratio (5)			7.9				8.0				6.4				7.9				7.4						7.4				7.8
Combined ratio (6)			84.7	%			121.7	%			93.1	%			101.7	%			193.7	%					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 March 31, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($12.0) million and ($5.9) million, respectively, compared to the three months ended March 31, 2011.

 

7

---

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

North America sub-segment

 

		For the three months ended																						For the year ended
		March 31, 2012  (A)				December 31, 2011				September 30, 2011				June 30, 2011				March 31, 2011						December 31, 2011				December 31, 2010
Net premiums written		$	341			$	235			$	287			$	242			$	338					$	1,104			$	1,026
Net premiums earned		$	238			$	285			$	329			$	261			$	259					$	1,135			$	1,038
Losses and loss expenses			(133	)			(184	)			(192	)			(190	)			(174	)					(741	)			(577	)
Acquisition costs			(66	)			(67	)			(80	)			(63	)			(66	)					(276	)			(288	)
Technical result		$	39			$	34			$	57			$	8			$	19					$	118			$	173
Loss ratio (2)			55.9	%			64.6	%			58.4	%			72.8	%			67.0	%					65.3	%			55.6	%
Acquisition ratio (3)			27.5				23.6				24.3				24.1				25.6						24.3				27.8
Technical ratio (4)			83.4	%			88.2	%			82.7	%			96.9	%			92.6	%					89.6	%			83.4	%
Distribution of Net Premiums Written by Major Lines of Business:
Casualty			47	%			40	%			37	%			40	%			42	%					40	%			42	%
Property			22				18				19				19				17						18				26
Multiline			12				6				5				5				11						7				5
Motor			7				9				7				8				10						8				11
Agriculture			5				20				25				23				14						20				8
Credit/Surety			5				4				5				5				5						5				6
Other			2				3				2				—				1						2				2
Total			100	%			100	%			100	%			100	%			100	%					100	%			100	%

 

(A)

Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended March 31, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($0.9) million and ($0.6) million, respectively, compared to the three months ended March 31, 2011.

 

8

---

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

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

 

		For the three months ended																						For the year ended
		March 31, 2012  (A)				December 31, 2011				September 30, 2011				June 30, 2011				March 31, 2011						December 31, 2011				December 31, 2010
Net premiums written		$	346			$	97			$	144			$	121			$	317					$	678			$	898
Net premiums earned		$	159			$	192			$	193			$	193			$	181					$	759			$	914
Losses and loss expenses			(98	)			(188	)			(102	)			(127	)			(150	)					(567	)			(702	)
Acquisition costs			(38	)			(45	)			(52	)			(53	)			(40	)					(191	)			(227	)
Technical result		$	23			$	(41	)		$	39			$	13			$	(9	)				$	1			$	(15	)
Loss ratio (2)			61.6	%			97.8	%			52.9	%			65.9	%			82.8	%					74.7	%			76.8	%
Acquisition ratio (3)			23.9				23.6				26.9				27.6				22.1						25.1				24.9
Technical ratio (4)			85.5	%			121.4	%			79.8	%			93.5	%			104.9	%					99.8	%			101.7	%
Distribution of Net Premiums Written by Major Lines of Business:
Property			62	%			69	%			71	%			78	%			67	%					70	%			66	%
Motor			27				18				21				14				21						20				22
Casualty			11				13				8				8				12						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 March 31, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($6.1) million and ($3.0) million, respectively, compared to the three months ended March 31, 2011.

 

9

---

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

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

 

		For the three months ended																						For the year ended
		March 31, 2012  (A)				December 31, 2011				September 30, 2011				June 30, 2011				March 31, 2011						December 31, 2011				December 31, 2010
Net premiums written		$	353			$	337			$	360			$	333			$	315					$	1,344			$	1,391
Net premiums earned		$	308			$	356			$	362			$	341			$	317					$	1,376			$	1,405
Losses and loss expenses			(194	)			(276	)			(247	)			(206	)			(221	)					(950	)			(985	)
Acquisition costs			(70	)			(88	)			(82	)			(78	)			(80	)					(328	)			(292	)
Technical result		$	44			$	(8	)		$	33			$	57			$	16					$	98			$	128
Loss ratio (2)			63.2	%			77.5	%			68.3	%			60.3	%			69.7	%					69.1	%			70.0	%
Acquisition ratio (3)			22.6				24.6				22.7				22.9				25.3						23.8				20.8
Technical ratio (4)			85.8	%			102.1	%			91.0	%			83.2	%			95.0	%					92.9	%			90.8	%
Distribution of Net Premiums Written by Major Lines of Business:
Aviation/Space			14	%			20	%			16	%			14	%			12	%					16	%			16	%
Credit/Surety			21				19				18				20				25						20				16
Energy			4				8				11				7				7						8				8
Engineering			11				15				13				12				14						14				14
Marine			20				21				20				21				18						20				20
Specialty casualty			14				2				4				7				19						8				11
Specialty property			9				11				13				12				4						10				8
Other			7				4				5				7				1						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 March 31, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($3.9) million and ($3.0) million, respectively, compared to the three months ended March 31, 2011.

 

10

---

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Catastrophe sub-segment

 

		For the three months ended																						For the year ended
		March 31, 2012  (A)				December 31, 2011				September 30, 2011				June 30, 2011				March 31, 2011						December 31, 2011				December 31, 2010
Net premiums written		$	215			$	21			$	89			$	161			$	292					$	562			$	646
Net premiums earned		$	90			$	142			$	199			$	110			$	124					$	574			$	672
Losses and loss expenses			(2	)			(250	)			(169	)			(123	)			(918	)					(1,459	)			(393	)
Acquisition costs			(9	)			(11	)			(15	)			(9	)			8						(26	)			(49	)
Technical result		$	79			$	(119	)		$	15			$	(22	)		$	(786	)				$	(911	)		$	230
Loss ratio (2)			2.1	%			175.9	%			85.0	%			111.7	%			743.0	%					254.2	%			58.5	%
Acquisition ratio (3)			10.5				7.6				7.4				8.1				(6.7	)					4.5				7.2
Technical ratio (4)			12.6	%			183.5	%			92.4	%			119.8	%			736.3	%					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 March 31, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($1.1) million and $0.7 million, respectively, compared to the three months ended March 31, 2011.

 

11

---

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Life segment

 

		For the three months ended																						For the year ended
		March 31, 2012  (A)				December 31, 2011				September 30, 2011				June 30, 2011				March 31, 2011						December 31, 2011				December 31, 2010
Net premiums written		$	215			$	190			$	194			$	195			$	206					$	786			$	742
Net premiums earned		$	194			$	203			$	203			$	201			$	184					$	792			$	744
Life policy benefits			(149	)			(171	)			(168	)			(166	)			(145	)					(650	)			(624	)
Acquisition costs			(29	)			(28	)			(33	)			(26	)			(30	)					(117	)			(116	)
Technical result		$	16			$	4			$	2			$	9			$	9					$	25			$	4
Other income			—				1				—				—				—						1				2
Other operating expenses			(12	)			(15	)			(12	)			(13	)			(12	)					(53	)			(57	)
Underwriting result		$	4			$	(10	)		$	(10	)		$	(4	)		$	(3	)				$	(27	)		$	(51	)
Net investment income			17				16				19				16				15						66				71
Allocated underwriting result (1)		$	21			$	6			$	9			$	12			$	12					$	39			$	20
Distribution of Net Premiums Written by Major Lines of Business:
Mortality			71	%			66	%			71	%			72	%			76	%					71	%			70	%
Longevity			27				31				26				25				21						26				27
Health			2				3				3				3				3						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 March 31, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($4.2) million and ($3.7) million, respectively, compared to the three months ended March 31, 2011.

 

12

---

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Corporate and Other

 

						For the three months ended																		For the year ended
		March 31, 2012				December 31, 2011				September 30, 2011				June 30, 2011				March 31, 2011						December 31, 2011				December 31, 2010
Technical result		$	1			$	3			$	4			$	(1	)		$	—					$	6			$	—
Other income			1				—				—				1				1						3				3
Corporate expenses - acquisition related			—				—				(1	)			(1	)			(2	)					(4	)			(16	)
Corporate expenses - voluntary termination plan			—				—				—				—				—						—				(41	)
Corporate expenses (1)			(20	)			(16	)			(19	)			(25	)			(19	)					(79	)			(94	)
Other operating expenses			(3	)			(4	)			(3	)			(4	)			(5	)					(16	)			(15	)
Net investment income			130				140				145				142				137						563				602
Net realized and unrealized investment gains (losses)			193				74				26				78				(112	)					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 (losses) gains			(3	)			15				11				9				—						34				(21	)
Income tax (expense) benefit			(67	)			(3	)			(42	)			(50	)			26						(69	)			(129	)
Interest in earnings (losses) of equity investments			5				(2	)			(5	)			(1	)			1						(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.

 

13

---

PartnerRe Ltd.

Distribution of Premiums

(Unaudited)

 

		For the three months ended																						For the year ended
		March 31, 2012				December 31, 2011				September 30, 2011				June 30, 2011				March 31, 2011						December 31, 2011				December 31, 2010
Distribution of Net Premiums Written by Line of Business:
Non-life
Property and casualty
Casualty			13	%			12	%			11	%			10	%			12	%					11	%			11	%
Property			19				12				14				13				18						15				18
Motor			8				4				5				3				7						5				7
Multiline and other			3				2				3				2				2						2				2
Specialty
Agriculture			3				7				8				7				4						7				4
Aviation/Space			4				9				5				5				3						5				5
Catastrophe			15				2				8				15				20						13				14
Credit/Surety			6				8				7				8				6						7				6
Energy			1				3				4				2				2						2				2
Engineering			3				6				4				4				3						4				4
Marine			5				8				7				7				4						6				6
Specialty casualty			3				1				1				2				4						2				3
Specialty property			2				4				5				4				1						3				2
Life			15				22				18				18				14						18				16
			100	%			100	%			100	%			100	%			100	%					100	%			100	%
Distribution of Gross Premiums Written by Geography:
Europe			48	%			45	%			38	%			40	%			43	%					41	%			43	%
North America			33				34				37				36				36						36				36
Latin America, Caribbean and Africa			10				11				12				11				10						11				11
Asia, Australia and New Zealand			9				10				13				13				11						12				10
			100	%			100	%			100	%			100	%			100	%					100	%			100	%
Distribution of Gross Premiums Written by Production Source:
Broker			72	%			68	%			74	%			75	%			72	%					72	%			73	%
Direct			28				32				26				25				28						28				27
			100	%			100	%			100	%			100	%			100	%					100	%			100	%

 

14

---

PartnerRe Ltd.

Distribution of Premiums

(Unaudited)

 

		For the three months ended																						For the year ended
		March 31, 2012				December 31, 2011				September 30, 2011				June 30, 2011				March 31, 2011						December 31, 2011				December 31, 2010
Distribution of Gross Premiums Written by Reinsurance Type for the Non-life sub-segment:
North America
Non-Proportional			50	%			16	%			26	%			25	%			47	%					30	%			33	%
Proportional			50				84				74				75				53						70				67
Total			100	%			100	%			100	%			100	%			100	%					100	%			100	%
Global (Non-U.S.) P&C
Non-Proportional			34	%			11	%			19	%			10	%			34	%					23	%			23	%
Proportional			66				89				81				90				66						77				77
Total			100	%			100	%			100	%			100	%			100	%					100	%			100	%
Global (Non-U.S.) Specialty
Non-Proportional			31	%			7	%			17	%			20	%			33	%					19	%			22	%
Proportional			69				93				83				80				67						81				78
Total			100	%			100	%			100	%			100	%			100	%					100	%			100	%
Catastrophe
Non-Proportional			98	%			96	%			98	%			98	%			98	%					98	%			99	%
Proportional			2				4				2				2				2						2				1
Total			100	%			100	%			100	%			100	%			100	%					100	%			100	%
Non-life total
Non-Proportional			49	%			13	%			29	%			35	%			52	%					35	%			38	%
Proportional			51				87				71				65				48						65				62
Total			100	%			100	%			100	%			100	%			100	%					100	%			100	%

 

15

---

PartnerRe Ltd.

Investment Portfolio

(Expressed in millions of U.S. dollars)

(Unaudited)

 

		March 31, 2012								December 31, 2011								September 30, 2011								June 30, 2011								March 31, 2011										December 31, 2010
Investments:
Fixed maturities
U.S. government		$	1,066				7	%		$	1,090				7	%		$	1,162				7	%		$	1,291				8	%		$	745				5	%				$	673				5	%
Government Sponsored Enterprises (GSEs)			23				—				26				—				26				—				184				1				216				2						233				2
U.S. states, territories and municipalities			130				1				124				1				101				1				99				1				68				—						67				—
Non-U.S. sovereign government, supranational and government related			3,070				19				2,964				19				3,230				20				3,258				20				3,068				21						2,819				20
Corporates			6,067				39				5,747				38				6,120				39				5,830				37				6,199				42						6,144				43
Mortgage/asset-backed securities			4,056				26				3,991				26				3,717				24				3,745				23				2,963				20						2,889				20
Total fixed maturities			14,412				92				13,942				91				14,356				91				14,407				90				13,259				90						12,825				90
Short-term investments			39				—				42				—				98				1				216				2				81				1						49				—
Equities			943				6				945				6				1,001				6				995				6				1,053				7						1,072				8
Other invested assets			361				2				358				3				335				2				338				2				292				2						352				2
Total investments		$	15,755				100	%		$	15,287				100	%		$	15,790				100	%		$	15,956				100	%		$	14,685				100	%				$	14,298				100	%
Cash and cash equivalents			1,210								1,343								1,073								1,607								2,010										2,111
Total investments and cash		$	16,965							$	16,630							$	16,863							$	17,563							$	16,695									$	16,409
Maturity distribution:
One year or less		$	597				4	%		$	571				4	%		$	576				4	%		$	970				7	%		$	1,004				8	%				$	930				7	%
More than one year through five years			5,038				35				4,923				35				5,580				39				5,404				37				5,113				38						5,022				39
More than five years through ten years			3,954				27				3,713				26				3,840				26				3,831				26				3,613				27						3,418				27
More than ten years			806				6				786				6				741				5				673				4				647				5						615				5
Subtotal			10,395				72				9,993				71				10,737				74				10,878				74				10,377				78						9,985				78
Mortgage/asset-backed securities			4,056				28				3,991				29				3,717				26				3,745				26				2,963				22						2,889				22
Total		$	14,451				100	%		$	13,984				100	%		$	14,454				100	%		$	14,623				100	%		$	13,340				100	%				$	12,874				100	%
Credit quality by market value: (A) (B)
AAA			18	%							25	%							28	%							58	%							52	%									51	%
AA			42								37								35								7								8										9
A			21								21								21								19								21										22
BBB			13								11								11								10								12										11
Below Investment Grade/Unrated			6								6								5								6								7										7
			100	%							100	%							100	%							100	%							100	%									100	%
Expected average duration			2.9	Yrs							2.9	Yrs							3.0	Yrs							3.0	Yrs							2.9	Yrs									3.0	Yrs
Average yield to maturity at market			2.3	%							2.4	%							2.5	%							2.9	%							3.1	%									2.9	%
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)

The decrease in AAA rated securities and the corresponding increase in AA rated securities at March 31, 2012 compared to December 31, 2011 largely reflects Standard & Poor’s decision in January 2012 to downgrade 9 Eurozone sovereign governments. 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.

 

16

---

PartnerRe Ltd.

Distribution of Corporate Bonds

(Expressed in thousands of U.S. dollars)

(Unaudited)

 

						March 31, 2012
		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		$	1,336,230				22.0	%			7.9	%			0.8	%
Consumer noncyclical			806,371				13.3				4.8				0.3
Communications			623,960				10.3				3.7				0.5
Utilities			617,603				10.2				3.6				0.3
Government guaranteed corporate debt			450,896				7.4				2.7				0.4
Energy			421,232				6.9				2.5				0.4
Industrials			390,359				6.4				2.3				0.2
Consumer cyclical			336,534				5.6				2.0				0.3
Insurance			264,533				4.4				1.5				0.2
Materials			226,872				3.7				1.3				0.1
Catastrophe bonds			204,606				3.4				1.2				0.2
Longevity and mortality bonds			164,137				2.7				1.0				0.4
Technology			136,471				2.2				0.8				0.2
Real estate investment trusts			70,129				1.2				0.4				0.1
Diversified			16,971				0.3				0.1				—
Total Corporate bonds		$	6,066,904				100.0	%			35.8	%
Finance sector - Corporate bonds
Banks		$	613,686				10.1	%			3.6	%
Investment banking and brokerage			325,179				5.4				1.9
Commercial and consumer finance			169,633				2.8				1.0
Financial services			164,570				2.7				1.0
Other			63,162				1.0				0.4
Total finance sector - Corporate bonds		$	1,336,230				22.0	%			7.9	%
		AAA				AA				A				BBB				Non-Investment Grade/Unrated				Total
Credit quality of finance sector - Corporate bonds
Banks		$	31,143			$	60,723			$	435,936			$	77,263			$	8,621			$	613,686
Investment banking and brokerage			—				—				304,398				19,848				933				325,179
Commercial and consumer finance			—				9,390				87,262				72,981				—				169,633
Financial services			—				136,764				25,984				1,822				—				164,570
Other			—				14,867				13,470				28,525				6,300				63,162
Total finance sector - Corporate bonds		$	31,143			$	221,744			$	867,050			$	200,439			$	15,854			$	1,336,230
% of total			2	%			17	%			65	%			15	%			1	%			100	%

Concentration of investment risk

The top 10 Corporate bond issues account for 16.1% of the Company’s total corporate bonds. The single largest issue accounts for 2.2% of the Company’s total Corporate bonds.

 

17

---

PartnerRe Ltd.

Distribution of Equities

(Expressed in thousands of U.S. dollars)

(Unaudited)

 

						March 31, 2012
		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		$	100,053				17.1	%			0.6	%			—	%
Finance			82,909				14.2				0.5				0.1
Technology			68,296				11.7				0.4				0.1
Energy			67,632				11.5				0.4				0.1
Insurance			57,743				9.9				0.4				0.1
Communications			53,219				9.1				0.3				—
Industrials			48,762				8.3				0.3				—
Consumer cyclical			46,014				7.8				0.3				—
Materials			23,564				4.0				0.1				—
Utilities			23,404				4.0				0.1				—
Real estate investment trusts			12,108				2.1				0.1				—
Diversified			1,790				0.3				—				—
Total equities		$	585,494				100.0	%			3.5	%
Mutual funds and exchange traded funds (ETFs)
Funds holding fixed income securities			262,461								1.5
Funds and ETFs holding equities			95,503								0.6
Total equities		$	943,458								5.6	%

Concentration of investment risk

The single largest fund in funds and ETFs holding equities is an emerging markets fixed income fund, which accounts for 19.2% 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 19.7% of the Company’s total equities. Excluding equity securities held in mutual funds and exchange traded funds, the single largest issuer accounts for 3.0% of the Company’s total equities.

 

18

---

PartnerRe Ltd.

Distribution of Mortgage/Asset-Backed Securities

(Expressed in thousands of U.S. dollars)

(Unaudited)

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

 

		Rating at March 31, 2012
		GNMA				GSEs				AAA				AA				A				BBB				Non-Investment Grade/Unrated				Total
U.S. Asset-Backed Securities		$	—			$	—			$	46,577			$	64,242			$	75,183			$	13,102			$	294,990			$	494,094
U.S. Collaterized Mortgage Obligations			—				3,394				—				—				—				—				1				3,395
U.S. Mortgage Backed Securities (MBS)			757,649				2,055,867				—				—				—				—				—				2,813,516
U.S. Commercial Mortgage Backed Securities (CMBS)			—				—				37,732				—				8,379				2,132				2,213				50,456
U.S. MBS Interest Only			53,251				126,672				13,387				—				—				—				79,278				272,588
		$	810,900			$	2,185,933			$	97,696			$	64,242			$	83,562			$	15,234			$	376,482			$	3,634,049
Non-U.S. Asset-Backed Securities		$	—			$	—			$	92,436			$	15,194			$	36,984			$	—			$	—			$	144,614
Non-U.S. Collaterized Mortgage Obligations			—				—				194,405				31,406				27,215				—								253,026
Non-U.S. Commercial Mortgage Backed Securities (CMBS)			—				—				23,800				—				—				—				—				23,800
		$	—			$	—			$	310,641			$	46,600			$	64,199			$	—			$	—			$	421,440
Total mortgage/asset-backed securities		$	810,900			$	2,185,933			$	408,337			$	110,842			$	147,761			$	15,234			$	376,482			$	4,055,489
Corporate Securities			—				23,424				—				—				—				—				—				23,424
Total		$	810,900			$	2,209,357			$	408,337			$	110,842			$	147,761			$	15,234			$	376,482			$	4,078,913
% of total			20	%			54	%			10	%			3	%			4	%			—	%			9	%			100	%

 

19

---

PartnerRe Ltd.

Other Invested Assets including Private Markets and Derivative Exposures

(Expressed in thousands of U.S. dollars)

(Unaudited)

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

 

		March 31, 2012																						December 31, 2011										September 30, 2011
		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		$	152,749			$	—			$	152,749			$	—			$	152,749					$	170,092			$	170,092					$	190,360			$	190,360
Principal Finance - Derivative Exposure Assumed			—				(985	)			(985	)			120,386				119,401						(2,174	)			127,114						(14,968	)			144,433
Insurance-Linked Securities			—				(3,528	)			(3,528	)			160,964				157,436						(968	)			135,407						(2,005	)			152,370
Commodities Futures			—				(1,668	)			(1,668	)			48,939				47,271						(1,756	)			46,223						(6,309	)			43,946
Strategic Investments			181,750				—				181,750				—				181,750						179,348				179,348						188,243				188,243
Total other invested assets - Private Markets Exposure Assumed			334,499				(6,181	)			328,318				330,289				658,607						344,542				658,184						355,321				719,352
Other Credit Derivatives - Exposure Assumed			—				322				322				5,000				5,322						246				5,246						181				5,181
Other Credit Derivatives - Protection Purchased			—				(1,447	)			(1,447	)			(95,301	)			(96,748	)					(1,193	)			(96,154	)					(1,005	)			(101,392	)
Other (2)			9,614				24,087				33,701														14,559										(19,506	)
Total other invested assets		$	344,113			$	16,781			$	360,894													$	358,154									$	334,991

 

(1)

The total net exposures originated in Private Markets are $1,639 million at March 31, 2012 ($1,629 million and $1,717 million at December 31, 2011 and September 30, 2011, respectively). In addition to the net exposures listed above of $659 million ($658 million and $719 million at December 30, 2011 and September 30, 2011, respectively), the Company has the following other net exposures originated in Private Markets:

 

•

Principal Finance: $543 million of assets listed under Investments - Fixed Maturities and $7 million listed under Investments - Equities for a total exposure of $822 million ($824 million and $835 million at December 31, 2011 and September 30, 2011, respectively).

 

•

Insurance -Linked Securities: $372 million of bonds listed under Investments - Fixed Maturities and $38 million of limits on transactions that use reinsurance accounting for a total exposure of $567 million ($562 million and $642 million at December 31, 2011 and September 30, 2011, respectively).

 

•

Strategic Investments: $7 million of assets listed under Investments - Fixed Maturities, $12 million under Investments - Equities, and $2 million of assets listed under Other Assets for a total exposure of $203 million ($197 million and $196 million at December 31, 2011 and September 30, 2011, respectively).

 

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

 

20

---

PartnerRe Ltd.

Funds Held - Directly Managed Portfolio

(Expressed in millions of U.S. dollars)

(Unaudited)

 

		March 31, 2012								December 31, 2011								September 30, 2011								June 30, 2011								March 31, 2011										December 31, 2010
Investments:
Fixed maturities
U.S. government		$	218				19	%		$	111				11	%		$	111				10	%		$	77				7	%		$	76				6	%				$	95				6	%
Government Sponsored Enterprises (GSEs)			157				14				158				15				156				13				154				13				155				13						193				12
Non-U.S. sovereign government, supranational and government related			290				25				275				26				303				26				313				27				360				29						385				25
Corporates			460				40				480				45				531				46				551				47				571				47						799				52
Mortgage/asset-backed securities			—				—				—				—				—				—				—				—				—				—						12				1
Total fixed maturities			1,125				98				1,024				97				1,101				95				1,095				94				1,162				95						1,484				96
Short-term investments			2				—				18				2				35				3				42				4				44				3						38				3
Other invested assets			18				2				16				1				18				2				22				2				23				2						21				1
Total investments		$	1,145				100	%		$	1,058				100	%		$	1,154				100	%		$	1,159				100	%		$	1,229				100	%				$	1,543				100	%
Cash and cash equivalents			47								176								135								149								111										129
Total investments and cash		$	1,192							$	1,234							$	1,289							$	1,308							$	1,340									$	1,672
Accrued investment income			14								14								17								15								18										20
Other funds held assets/liabilities			58								20								17								57								156										80
Total funds held - directly managed		$	1,264							$	1,268							$	1,323							$	1,380							$	1,514									$	1,772
Maturity distribution:
One year or less		$	192				17	%		$	227				22	%		$	203				18	%		$	223				20	%		$	241				20	%				$	289				19	%
More than one year through five years			705				63				573				55				646				57				621				55				647				54						814				53
More than five years through ten years			203				18				215				20				260				23				266				23				288				24						376				25
More than ten years			27				2				27				3				27				2				27				2				30				2						31				2
Subtotal			1,127				100				1,042				100				1,136				100				1,137				100				1,206				100						1,510				99
Mortgage/asset-backed securities			—				—				—				—				—				—				—				—				—				—						12				1
Total		$	1,127				100	%		$	1,042				100	%		$	1,136				100	%		$	1,137				100	%		$	1,206				100	%				$	1,522				100	%
Credit quality by market value: (A) (B)
AAA			15	%							22	%							23	%							43	%							42	%									45	%
AA			59								50								50								30								30										27
A			21								24								23								23								24										24
BBB			5								4								4								4								4										4
			100	%							100	%							100	%							100	%							100	%									100	%
Expected average duration			3.0	Yrs							2.7	Yrs							2.9	Yrs							3.1	Yrs							3.1	Yrs									3.1	Yrs
Average yield to maturity at market			1.4	%							1.7	%							1.8	%							2.1	%							2.4	%									2.4	%
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)

The decrease in AAA rated securities and the corresponding increase in AA rated securities at March 31, 2012 compared to December 31, 2011 largely reflects Standard & Poor’s decision in January 2012 to downgrade 9 Eurozone sovereign governments. 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.

 

21

---

PartnerRe Ltd.

Distribution of Corporate Bonds

Funds Held - Directly Managed Portfolio

(Expressed in thousands of U.S. dollars)

(Unaudited)

 

						March 31, 2012
		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		$	212,172				46.1	%			17.8	%			1.2	%
Consumer noncyclical			67,322				14.6				5.6				0.8
Energy			50,826				11.1				4.3				0.9
Utilities			30,465				6.6				2.6				0.5
Government guaranteed corporate debt			20,469				4.4				1.7				1.1
Materials			20,389				4.4				1.7				0.4
Communications			18,921				4.1				1.6				0.4
Consumer cyclical			13,124				2.9				1.1				0.7
Technology			12,196				2.7				1.0				0.4
Industrials			9,160				2.0				0.8				0.3
Real estate investment trusts			3,524				0.8				0.3				0.3
Insurance			1,532				0.3				0.1				0.1
Total Corporate bonds		$	460,100				100.0	%			38.6	%
Finance sector - Corporate bonds
Banks		$	124,117				27.0	%			10.4	%
Investment banking and brokerage			39,110				8.5				3.3
Financial services			29,727				6.4				2.5
Commercial and consumer finance			15,170				3.3				1.3
Other			4,048				0.9				0.3
Total finance sector - Corporate bonds		$	212,172				46.1	%			17.8	%
		AAA				AA				A				BBB				Total
Credit quality of finance sector - Corporate bonds
Banks		$	20,184			$	51,722			$	40,892			$	11,319			$	124,117
Investment banking and brokerage			24,247				—				14,863				—				39,110
Financial services			4,512				20,781				4,434				—				29,727
Commercial and consumer finance			8,240				—				2,929				4,001				15,170
Other			—				—				4,048				—				4,048
Total finance sector - Corporate bonds		$	57,183			$	72,503			$	67,166			$	15,320			$	212,172
% of total			27	%			34	%			32	%			7	%			100	%

Concentration of investment risk

The Top 10 corporate bond issuers account for 24.3% 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.

 

22

---

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
		March 31, 2012				December 31, 2011				September 30, 2011				June 30, 2011				March 31, 2011						December 31, 2011				December 31, 2010
Fixed maturities		$	133,490			$	138,233			$	145,861			$	141,535			$	135,947					$	561,576			$	580,258
Short-term investments, cash and cash equivalents			596				571				887				1,142				1,243						3,843				8,541
Equities			3,513				4,758				4,322				6,545				4,190						19,815				20,794
Funds held and other			10,602				11,095				14,522				11,295				12,590						49,502				52,794
Funds held - directly managed			8,593				11,936				9,180				8,635				8,168						37,919				51,775
Investment expenses			(9,898	)			(11,053	)			(11,125	)			(10,824	)			(10,505	)					(43,507	)			(41,380	)
Net investment income (1)		$	146,896			$	155,540			$	163,647			$	158,328			$	151,633					$	629,148			$	672,782
Net realized investment gains on fixed maturities and short-term investments		$	17,398			$	73,155			$	63,611			$	13,007			$	7,434					$	157,207			$	173,426
Net realized investment gains on equities			41,421				25,136				2,480				26,219				37,031						90,866				44,736
Net realized gains (losses) on other invested assets			3,527				(27,529	)			(97,741	)			(63,269	)			12,244						(176,295	)			(68,568	)
Change in net unrealized gains (losses) on other invested assets			20,428				(1,360	)			(212	)			(7,253	)			(37,453	)					(46,278	)			3,742
Change in net unrealized investment gains (losses) on fixed maturities and short-term investments			47,821				(51,964	)			189,956				131,101				(140,869	)					128,224				142,634
Change in net unrealized investment gains (losses) on equities			50,771				57,314				(145,095	)			(30,197	)			16,118						(101,860	)			64,825
Net other realized and unrealized investment gains			4,639				2,400				1,193				23				1						3,617				13,335
Net realized and unrealized investment gains (losses) on funds held - directly managed			6,730				(2,599	)			11,947				8,568				(6,705	)					11,211				27,352
Net realized and unrealized investment gains (losses)		$	192,735			$	74,553			$	26,139			$	78,199			$	(112,199	)				$	66,692			$	401,482

 

(1)	Comparisons of net investment income between periods include the impact of foreign exchange variances. For the three months ended March 31, 2012, net investment income includes foreign exchange impacts of ($0.6) million compared to the three months ended March 31, 2011.

 

23

---

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																		For the year ended
		March 31, 2012				December 31, 2011				September 30, 2011				June 30, 2011				March 31, 2011						December 31, 2011				December 31, 2010
Fixed maturities		$	7,620			$	7,684			$	7,778			$	8,130			$	7,950					$	31,542			$	46,200
Short-term investments, cash and cash equivalents			171				681				667				380				178						1,906				1,607
Other			716				3,779				968				326				329						5,402				6,078
Investment expenses			86				(208	)			(233	)			(201	)			(289	)					(931	)			(2,110	)
Net investment income		$	8,593			$	11,936			$	9,180			$	8,635			$	8,168					$	37,919			$	51,775
Net realized investment (losses) gains on fixed maturities and short-term investments		$	(386	)		$	(496	)		$	121			$	471			$	5,273					$	5,369			$	1,041
Net realized investment gains (losses) on other invested assets			—				49				(93	)			2				—						(42	)			1,635
Change in net unrealized investment gains (losses) on fixed maturities and short-term investments			5,883				(868	)			14,676				10,756				(12,250	)					12,314				27,568
Change in net unrealized investment gains (losses) on other invested assets			1,233				(1,284	)			(2,757	)			(2,661	)			272						(6,430	)			(2,892	)
Net realized and unrealized investment gains (losses) on funds held - directly managed		$	6,730			$	(2,599	)		$	11,947			$	8,568			$	(6,705	)				$	11,211			$	27,352

 

24

---

PartnerRe Ltd.

Analysis of Unpaid Losses and Loss Expenses

(Expressed in thousands of U.S. dollars)

(Unaudited)

 

		As at and for the three months ended																						As at and for the year ended
		March 31, 2012				December 31, 2011				September 30, 2011				June 30, 2011				March 31, 2011						December 31, 2011				December 31, 2010
Reconciliation of beginning and ending liability for unpaid losses and loss expenses:
Gross liability at beginning of period		$	11,273,091			$	11,352,599			$	12,016,271			$	11,887,316			$	10,666,604					$	10,666,604			$	10,811,483
Reinsurance recoverable at beginning of period			(353,105	)			(359,203	)			(378,581	)			(383,446	)			(348,747	)					(348,747	)			(336,352	)
Net liability at beginning of period			10,919,986				10,993,396				11,637,690				11,503,870				10,317,857						10,317,857				10,475,131
Net incurred losses related to:
Current year			590,814				949,645				889,469				809,445				1,604,208						4,252,766				3,137,874
Prior years			(163,603	)			(51,573	)			(175,961	)			(161,022	)			(141,901	)					(530,457	)			(477,883	)
			427,211				898,072				713,508				648,423				1,462,307						3,722,309				2,659,991
Change in reserve agreement (1)			(34,792	)			(18,682	)			(14,630	)			(27,705	)			(367	)					(61,383	)			(66,783	)
Net losses paid			(648,377	)			(785,542	)			(1,062,917	)			(616,941	)			(525,159	)					(2,990,559	)			(2,579,018	)
Effects of foreign exchange rate changes			143,713				(167,258	)			(280,255	)			130,043				249,232						(68,238	)			(171,464	)
Net liability at end of period			10,807,741				10,919,986				10,993,396				11,637,690				11,503,870						10,919,986				10,317,857
Reinsurance recoverable at end of period			335,613				353,105				359,203				378,581				383,446						353,105				348,747
Gross liability at end of period		$	11,143,354			$	11,273,091			$	11,352,599			$	12,016,271			$	11,887,316					$	11,273,091			$	10,666,604
Breakdown of gross liability at end of period:
Case reserves		$	5,189,842			$	5,187,761			$	5,198,774			$	5,093,142			$	4,971,016					$	5,187,761			$	4,652,281
Additional case reserves			550,945				495,593				563,690				1,284,603				477,079						495,593				326,721
Incurred but not reported reserves			5,402,567				5,589,737				5,590,135				5,638,526				6,439,221						5,589,737				5,687,602
Gross liability at end of period		$	11,143,354			$	11,273,091			$	11,352,599			$	12,016,271			$	11,887,316					$	11,273,091			$	10,666,604
Breakdown of gross liability at end of period by Non-life sub-segment:
North America		$	3,292,254			$	3,287,364			$	3,294,447			$	3,293,224			$	3,287,790					$	3,287,364			$	3,211,622
Global (Non-U.S.) P&C			2,671,384				2,631,593				2,726,094				2,911,178				2,970,488						2,631,593				2,804,937
Global (Non-U.S.) Specialty			3,930,158				3,922,404				3,902,088				3,970,089				3,907,487						3,922,404				3,781,341
Catastrophe			1,249,558				1,431,730				1,429,970				1,841,780				1,721,551						1,431,730				868,704
Gross liability at end of period		$	11,143,354			$	11,273,091			$	11,352,599			$	12,016,271			$	11,887,316					$	11,273,091			$	10,666,604
Unrecognized time value of non-life reserves		$	618,317			$	560,860			$	614,961			$	968,950			$	1,072,236					$	560,860			$	949,210
Non-life paid loss ratio data:
Non-life paid losses to incurred losses ratio			151.8	%			87.5	%			149.0	%			95.1	%			35.9	%					80.3	%			97.0	%
Non-life paid losses to net premiums earned ratio			81.5	%			80.3	%			97.5	%			68.1	%			59.6	%					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.

 

25

---

PartnerRe Ltd.

Analysis of Policy Benefits for Life and Annuity Contracts

(Expressed in thousands of U.S. dollars)

(Unaudited)

 

		As at and for the three months ended																						As at and for the year ended
		March 31, 2012				December 31, 2011				September 30, 2011				June 30, 2011				March 31, 2011						December 31, 2011				December 31, 2010
Reconciliation of beginning and ending policy benefits for life and annuity contracts:
Gross liability at beginning of period		$	1,645,662			$	1,678,201			$	1,726,180			$	1,670,768			$	1,750,410					$	1,750,410			$	1,615,193
Reinsurance recoverable at beginning of period			(9,874	)			(10,633	)			(11,624	)			(11,120	)			(14,739	)					(14,739	)			(20,465	)
Net liability at beginning of period			1,635,788				1,667,568				1,714,556				1,659,648				1,735,671						1,735,671				1,594,728
Net incurred losses related to:
Current year			160,204				175,199				163,065				163,884				148,623						650,771				611,795
Prior years			(10,929	)			(4,067	)			5,053				2,216				(3,713	)					(510	)			11,832
			149,275				171,132				168,118				166,100				144,910						650,261				623,627
Net losses paid (1)			(131,047	)			(154,225	)			(141,734	)			(130,994	)			(291,973	)					(718,926	)			(419,944	)
Effects of foreign exchange rate changes			44,745				(48,687	)			(73,372	)			19,802				71,040						(31,218	)			(62,740	)
Net liability at end of period			1,698,761				1,635,788				1,667,568				1,714,556				1,659,648						1,635,788				1,735,671
Reinsurance recoverable at end of period			9,221				9,874				10,633				11,624				11,120						9,874				14,739
Gross liability at end of period		$	1,707,982			$	1,645,662			$	1,678,201			$	1,726,180			$	1,670,768					$	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.

 

26

---

PartnerRe Ltd.

Reserve Development

(Expressed in thousands of U.S. dollars)

(Unaudited)

 

		For the three months ended																						For the year ended
		March 31, 2012				December 31, 2011				September 30, 2011				June 30, 2011				March 31, 2011						December 31, 2011				December 31, 2010
Prior year net favorable (adverse) reserve development:
Non-life segment:
North America		$	61,717			$	20,178			$	74,769			$	54,513			$	39,720					$	189,180			$	165,780
Global (Non-U.S.) P&C			27,683				26,369				34,945				22,228				32,454						115,995				97,539
Global (Non-U.S.) Specialty			55,428				6,478				30,027				57,847				34,623						128,975				170,931
Catastrophe			18,775				(1,452	)			36,220				26,434				35,104						96,307				43,633
Total Non-life net prior year reserve development		$	163,603			$	51,573			$	175,961			$	161,022			$	141,901					$	530,457			$	477,883
Non-life segment:
Net prior year reserve development due to changes in premiums		$	(26,333	)		$	(24,150	)		$	(8,461	)		$	2,424			$	(28,314	)				$	(58,501	)		$	(7,509	)
Net prior year reserve development due to all other factors (2)			189,936				75,723				184,422				158,598				170,215						588,958				485,392
Total Non-life net prior year reserve development		$	163,603			$	51,573			$	175,961			$	161,022			$	141,901					$	530,457			$	477,883
Life segment:
Net prior year reserve development due to GMDB (1)		$	9,569			$	(32	)		$	(5,475	)		$	(214	)		$	10,967					$	5,245			$	16,725
Net prior year reserve development due to all other factors (2)			1,360				4,099				422				(2,002	)			(7,254	)					(4,735	)			(28,557	)
Total Life net prior year reserve development		$	10,929			$	4,067			$	(5,053	)		$	(2,216	)		$	3,713					$	510			$	(11,832	)

 

(1)

The guaranteed minimum death benefit (GMDB) reserves are sensitive to volatility in certain referenced global equity markets. At March 31, 2012, a 10% increase in the referenced global equity market would have decreased reserves by approximately $3.8 million, while a 10% decrease in the referenced global equity market would have increased reserves by approximately $4.9 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.

 

27

---

PartnerRe Ltd.

Natural Catastrophe Probable Maximum Losses (PMLs)

(Expressed in millions of U.S. dollars)

(Unaudited)

Single occurrence estimated net PML exposure ⁽¹⁾

 

				January 1, 2012
Zone		Peril		1-in-250 year PML				1-in-500 year PML (Earthquake perils only)
U.S. Southeast		Hurricane		$	1,210
U.S. Northeast		Hurricane			1,074
U.S. Gulf Coast		Hurricane			977
Caribbean		Hurricane			280
Europe		Windstorm			922
Japan		Typhoon			128
California		Earthquake			865			$	1,086
British Columbia		Earthquake			363				542
Japan		Earthquake			802				851
Australia		Earthquake			478				627
New Zealand		Earthquake			347				385

 

(1)	The PML estimates are pre-tax and net of retrocession and reinstatement premiums. The peril zones in this disclosure are major peril zones for the industry. The Company has exposures in other peril zones that can potentially generate losses greater than the PML estimates in this disclosure.

The Company estimates that the incremental loss at the 1-in-250 year return period from a U.S. hurricane impacting more than one of the three hurricane risk zones in the United States would be 20% higher than the PML of the largest zone impacted. In addition, there is the potential for a hurricane to impact the Caribbean peril zone and one or more U.S. hurricane peril zones.

For more information regarding cautionary language related to the Natural Catastrophe PML disclosure and the forward-looking statements, as well as uncertainties and limitations associated with certain assumptions and the methodology used, you must refer to the “PartnerRe’s Natural Catastrophe PMLs” document which is available on the Company’s website at www.partnerre. com in the Investor Relations section on the Financial Information page under Supplementary Financial Data.

 

28

---

PartnerRe Ltd.

Reconciliation of GAAP and non-GAAP measures

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

(Unaudited)

 

		For the three months ended																						For the year ended
		March 31, 2012				December 31, 2011				September 30, 2011				June 30, 2011				March 31, 2011						December 31, 2011				December 31, 2010 (2)
Reconciliation of GAAP and non-GAAP measures:
Annualized return on beginning diluted book value per common share calculated with net income (loss) per share available to common shareholders (1)			24.7	%			(2.1	)%			10.4	%			7.2	%			(51.2	)%					(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)			11.4				3.6				0.4				2.5				(5.6	)					0.2				4.6
Annualized net foreign exchange (losses) gains, net of tax, on beginning diluted book value per common share (1)			(0.1	)			3.2				—				0.6				0.4						1.0				0.2
Annualized net interest in earnings (losses) of equity investments, net of tax, on beginning diluted book value per common share (1)			0.4				(0.1	)			(0.3	)			(0.1	)			0.1						(0.1	)			0.2
Annualized operating return on beginning diluted book value per common share (1)			13.0	%			(8.8	)%			10.3	%			4.2	%			(46.1	)%					(10.1	)%			7.4	%
Net income (loss)		$	360,141			$	(17,643	)		$	180,123			$	124,185			$	(806,956	)				$	(520,291	)		$	852,552
Less:
Net realized and unrealized investment gains (losses), net of tax			159,221				56,384				6,167				40,954				(88,401	)					15,104				301,462
Net foreign exchange (losses) gains, net of tax			(1,630	)			50,150				(106	)			9,069				7,321						66,433				12,847
Interest in earnings (losses) of equity investments, net of tax			5,450				(1,894	)			(4,788	)			(1,622	)			1,065						(7,239	)			11,911
Dividends to preferred shareholders			15,405				15,405				14,352				8,631				8,631						47,020				34,525
Operating earnings (loss) available to common shareholders		$	181,695			$	(137,688	)		$	164,498			$	67,153			$	(735,572	)				$	(641,609	)		$	491,807
Per diluted share:
Net income (loss)		$	5.24			$	(0.49	)		$	2.43			$	1.69			$	(11.99	)				$	(8.40	)		$	10.46
Less:
Net realized and unrealized investment gains (losses), net of tax			2.42				0.85				0.09				0.60				(1.30	)					0.23				3.86
Net foreign exchange (losses) gains, net of tax			(0.02	)			0.75				—				0.13				0.11						0.98				0.16
Interest in earnings (losses) of equity investments, net of tax			0.08				(0.03	)			(0.07	)			(0.02	)			0.02						(0.11	)			0.15
Operating earnings (loss)		$	2.76			$	(2.06	)		$	2.41			$	0.98			$	(10.82	)				$	(9.50	)		$	6.29

 

(1)	Excluding preferred shares of $893,750 at January 1, 2012 and $520,000 at January 1, 2011 and 2010.

(2)

See basis of presentation for a discussion of the Company’s redefinition of its Operating Earnings (Loss), Diluted Operating Earnings (Loss) per common share and Annualized Operating ROE non-GAAP measures. All periods presented reflect the redefined non-GAAP measures and are as previously published except for the year ended December 31, 2010. For a reconciliation of the previously published non-GAAP measures for the year ended December 31, 2010 to the redefined non-GAAP measures, see the Company’s financial supplement as of December 31, 2011.

 

29

---

PartnerRe Ltd.

Reconciliation of GAAP and non-GAAP measures

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

(Unaudited)

 

		March 31, 2012				December 31, 2011				September 30, 2011				June 30, 2011				March 31, 2011						December 31, 2010
Reconciliation of GAAP and non-GAAP measures:
Shareholders’ equity		$	6,786,871			$	6,467,542			$	6,707,683			$	6,632,044			$	6,174,833					$	7,206,919
Less:
Preferred shares, aggregate liquidation value			893,750				893,750				893,750				893,750				520,000						520,000
Common shareholders’ equity			5,893,121				5,573,792				5,813,933				5,738,294				5,654,833						6,686,919
Less:
Net unrealized gains on fixed income securities and funds held - directly managed, net of tax			504,386				451,946				501,803				350,653				242,193						364,032
Book value excluding net unrealized gains or losses on fixed income securities and funds held - directly managed, net of tax		$	5,388,735			$	5,121,846			$	5,312,130			$	5,387,641			$	5,412,640					$	6,322,887
Divided by:
Number of common shares and common share equivalents outstanding			65,751.6				65,715.7				68,188.1				68,552.0				68,542.4						71,312.3
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		$	81.96			$	77.94			$	77.90			$	78.59			$	78.97					$	88.66

 

30

---

PartnerRe Ltd.

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

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

(Unaudited)

 

		March 31, 2012				December 31, 2011				September 30, 2011				June 30, 2011				March 31, 2011						December 31, 2010
Basic book value per common share
Total shareholders’ equity		$	6,786,871			$	6,467,542			$	6,707,683			$	6,632,044			$	6,174,833					$	7,206,919
Less: preferred shares, aggregate liquidation value			(893,750	)			(893,750	)			(893,750	)			(893,750	)			(520,000	)					(520,000	)
Common shareholders’ equity		$	5,893,121			$	5,573,792			$	5,813,933			$	5,738,294			$	5,654,833					$	6,686,919
Basic common shares outstanding			65,313.0				65,322.3				67,749.4				67,737.8				67,439.6						69,986.2
Basic book value per common share		$	90.23			$	85.33			$	85.82			$	84.71			$	83.85					$	95.55
Diluted book value per common share
Common shareholders’ equity		$	5,893,121			$	5,573,792			$	5,813,933			$	5,738,294			$	5,654,833					$	6,686,919
Basic common shares outstanding			65,313.0				65,322.3				67,749.4				67,737.8				67,439.6						69,986.2
Add: Stock options and other			1,099.2				809.4				688.6				2,329.0				2,769.2						3,293.4
Add: Restricted stock units			780.9				489.0				573.9				647.6				825.6						940.4
Less: Stock options and other bought back via treasury stock method			(1,441.5	)			(905.0	)			(823.8	)			(2,162.4	)			(2,492.0	)					(2,907.7	)
Diluted common shares and common share equivalents outstanding			65,751.6				65,715.7				68,188.1				68,552.0				68,542.4						71,312.3
Diluted book value per common share		$	89.63			$	84.82			$	85.26			$	83.71			$	82.50					$	93.77

 

(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.

 

31

---

PartnerRe Ltd.

Diluted Book Value per Common Share - Rollforward

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

(Unaudited)

 

		As at and for the three months ended March 31, 2012										As at and for the three months ended March 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		$	5,574			$	84.82					$	6,687			$	93.77
Technical result			202				3.06						(751	)			(11.04	)
Other operating expenses			(98	)			(1.49	)					(104	)			(1.53	)
Net investment income			147				2.23						152				2.23
Amortization of intangible assets			(9	)			(0.14	)					(9	)			(0.13	)
Other, net			(10	)			(0.14	)					(10	)			(0.15	)
Operating income tax expense			(35	)			(0.53	)					(5	)			(0.07	)
Preferred dividends			(15	)			(0.23	)					(9	)			(0.13	)
Operating earnings (loss)			182				2.76						(736	)			(10.82	)
Net realized and unrealized investment gains (losses), net of tax			159				2.42						(88	)			(1.30	)
Net foreign exchange (losses) gains, net of tax			(2	)			(0.02	)					7				0.11
Interest in earnings of equity investments, net of tax			6				0.08						1				0.02
Net income (loss) available to common shareholders			345				5.24						(816	)			(11.99	)
Common share dividends			(41	)			(0.62	)					(37	)			(0.55	)
Change in currency translation adjustment			17				0.26						38				0.55
Repurchase of common shares, net			(1	)			—						(217	)			0.32
Change in other accumulated comprehensive income or loss, net of tax			(1	)			(0.02	)					—				—
Impact of change in number of common and common share equivalents outstanding			n/a				(0.05	)					n/a				0.40
Common shareholders’ equity / diluted book value per common share at end of period		$	5,893			$	89.63					$	5,655			$	82.50

 

32

---

PartnerRe Ltd.

Diluted Book Value per Common Share - Rollforward

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

(Unaudited)

 

		As at and for the year ended December 31, 2011										As at and for the year ended December 31, 2010
		Common shareholders’ equity				Diluted book value per common share						Common shareholders’ equity				Diluted book value per common share
Common shareholders’ equity / diluted book value per common share at beginning of period		$	6,687			$	93.77					$	7,126			$	84.51
Technical result			(663	)			(9.82	)					520				6.65
Other operating expenses			(435	)			(6.44	)					(540	)			(6.90	)
Net investment income			629				9.31						673				8.60
Amortization of intangible assets			(36	)			(0.54	)					(31	)			(0.40	)
Other, net			(42	)			(0.61	)					(33	)			(0.43	)
Operating income tax expense			(48	)			(0.71	)					(62	)			(0.79	)
Preferred dividends			(47	)			(0.69	)					(35	)			(0.44	)
Operating (loss) earnings			(642	)			(9.50	)					492				6.29
Net realized and unrealized investment gains, net of tax			15				0.23						301				3.86
Net foreign exchange gains, net of tax			67				0.98						13				0.16
Interest in (losses) earnings of equity investments, net of tax			(7	)			(0.11	)					12				0.15
Net (loss) income available to common shareholders			(567	)			(8.40	)					818				10.46
Common share dividends			(159	)			(2.35	)					(158	)			(2.05	)
Change in currency translation adjustment			(12	)			(0.17	)					(67	)			(0.85	)
Repurchase of common shares, net			(358	)			0.93						(1,018	)			1.15
Preferred shares issuance costs			(12	)			(0.18	)					—				—
Change in other accumulated comprehensive income or loss, net of tax			(5	)			(0.07	)					(14	)			(0.18	)
Impact of change in number of common and common share equivalents outstanding			n/a				1.29						n/a				0.73
Common shareholders’ equity / diluted book value per common share at end of period		$	5,574			$	84.82					$	6,687			$	93.77

 

33