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

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8-K - FORM 8-K - PARTNERRE LTD	d428348d8k.htm

Exhibit 99.2

LOGO

PartnerRe Ltd.

Financial Supplement

Financial Information

as at September 30, 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 - September 30, 2012

Table of Contents


	Page

Regulation G and Basis of Presentation
Consolidated Financial Statements
Consolidated Income Statements		1-2
Condensed Consolidated Balance Sheets		3
Condensed Consolidated Statements of Cash Flows		4-5
Consolidated Statements of Comprehensive Income (Loss)		6
Segment Information
For the three months ended September 30, 2012 and 2011		7-8
For the nine months ended September 30, 2012 and 2011		9-10
Non-life segment		11-12
North America sub-segment		13-14
Global (Non-U.S.) P&C sub-segment		15-16
Global (Non-U.S.) Specialty sub-segment		17-18
Catastrophe sub-segment		19-20
Life segment		21-22
Corporate and Other		23-24
Distribution of Premiums
Distribution of Premiums by line of business, geography and production source		25-26
Distribution of Premiums by reinsurance type		27-28
Investments
Investment Portfolio		29
Distribution of Corporate Bonds		30
Distribution of Equities		31
Distribution of Mortgage/Asset-Backed Securities		32
Other Invested Assets including Private Markets and Derivative Exposures		33
Funds Held - Directly Managed Portfolio		34
Distribution of Corporate Bonds - Funds Held - Directly Managed Portfolio		35
Composition of Net Investment Income and Net Realized and Unrealized Investment Gains (Losses)		36-37
Composition of Net Investment Income and Net Realized and Unrealized Investment Gains (Losses) on Funds Held - Directly Managed Portfolio		38-39
Loss Reserves
Analysis of Unpaid Losses and Loss Expenses		40-41
Analysis of Policy Benefits for Life and Annuity Contracts		42-43
Reserve Development		44-45
Natural Catastrophe Probable Maximum Losses (PMLs)		46
Reconciliation of GAAP and non-GAAP measures		47-49
Diluted Book Value per Common Share - Treasury Stock Method		50
Diluted Book Value per Common Share - Rollforward		51-53

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 investee’s operations are not insurance or reinsurance related and 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 certain of 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
	September 30, 2012		June 30, 2012			March 31, 2012			December 31, 2011			September 30, 2011


Revenues
Gross premiums written	$	1,056,076	$	1,163,243		$	1,567,483		$	897,962		$	1,095,326


Net premiums written	$	1,043,240	$	1,136,046		$	1,473,286		$	879,886		$	1,079,557
Decrease (increase) in unearned premiums		193,851		(45,168	)		(483,456	)		301,515			214,762

Net premiums earned		1,237,091		1,090,878			989,830			1,181,401			1,294,319
Net investment income		135,266		153,506			146,896			155,540			163,647
Net realized and unrealized investment gains		257,429		38,132			192,735			74,553			26,139
Other income		2,744		2,654			2,746			3,072			1,434

Total revenues		1,632,530		1,285,170			1,332,207			1,414,566			1,485,539

Expenses
Losses and loss expenses and life policy benefits		721,137		706,137			576,486			1,069,204			881,626
Acquisition costs		247,058		232,723			211,608			238,772			262,489
Other operating expenses		94,697		106,184			98,174			113,033			103,822
Interest expense		12,224		12,223			12,220			12,219			12,216
Amortization of intangible assets		8,893		8,893			8,893			8,893			9,520
Net foreign exchange losses (gains)		2,015		(7,770	)		2,589			(14,655	)		(10,587	)

Total expenses		1,086,024		1,058,390			909,970			1,427,466			1,259,086

Income (loss) before taxes and interest in earnings (losses) of equity investments		546,506		226,780			422,237			(12,900	)		226,453
Income tax expense		64,149		50,136			67,174			3,341			41,803
Interest in earnings (losses) of equity investments		4,349		(498	)		5,078			(1,402	)		(4,527	)

Net income (loss)	$	486,706	$	176,146		$	360,141		$	(17,643	)	$	180,123

Preferred dividends	$	15,405	$	15,405		$	15,405		$	15,405		$	14,352

Operating earnings (loss) available to common shareholders	$	244,406	$	142,018		$	181,695		$	(137,688	)	$	164,498

Comprehensive income (loss), net of tax	$	518,871	$	158,044		$	376,237		$	(22,420	)	$	126,271


Per Share Data:
Earnings (loss) per common share:
Basic operating earnings (loss)	$	3.95	$	2.22		$	2.78		$	(2.06	)	$	2.43
Net realized and unrealized investment gains, net of tax		3.59		0.29			2.43			0.85			0.09
Net foreign exchange gains (losses), net of tax		0.02		0.02			(0.02	)		0.75			—
Interest in earnings (losses) of equity investments, net of tax		0.06		(0.01	)		0.08			(0.03	)		(0.07	)

Basic net income (loss)	$	7.62	$	2.52		$	5.27		$	(0.49	)	$	2.45

Weighted average number of common shares outstanding		61,837.3		63,816.0			65,404.2			66,877.1			67,743.3

Diluted operating earnings (loss)	$	3.90	$	2.20		$	2.76		$	(2.06	)	$	2.41
Net realized and unrealized investment gains, net of tax		3.55		0.29			2.42			0.85			0.09
Net foreign exchange gains (losses), net of tax		0.02		0.02			(0.02	)		0.75			—
Interest in earnings (losses) of equity investments, net of tax		0.06		(0.01	)		0.08			(0.03	)		(0.07	)

Diluted net income (loss)	$	7.53	$	2.50		$	5.24		$	(0.49	)	$	2.43

Weighted average number of common shares and common share equivalents outstanding		62,606.8		64,423.0			65,842.8			66,877.1			68,182.0

Dividends declared per common share	$	0.62	$	0.62		$	0.62		$	0.60		$	0.60

PartnerRe Ltd.

Consolidated Income Statements

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

(Unaudited)


	For the nine months ended						For the year ended
	September 30, 2012			September 30, 2011			December 31, 2011			December 31, 2010


Revenues
Gross premiums written	$	3,786,802		$	3,735,091		$	4,633,054		$	4,885,266


Net premiums written	$	3,652,571		$	3,606,444		$	4,486,329		$	4,705,116
(Increase) decrease in unearned premiums		(334,772	)		(140,091	)		161,425			71,355

Net premiums earned		3,317,799			3,466,353			4,647,754			4,776,471
Net investment income		435,669			473,608			629,148			672,782
Net realized and unrealized investment gains (losses)		488,296			(7,860	)		66,692			401,482
Other income		8,143			4,843			7,915			10,470

Total revenues		4,249,907			3,936,944			5,351,509			5,861,205

Expenses
Losses and loss expenses and life policy benefits		2,003,759			3,303,366			4,372,570			3,283,618
Acquisition costs		691,388			699,589			938,361			972,537
Other operating expenses		299,055			321,813			434,846			539,751
Interest expense		36,668			36,730			48,949			44,413
Amortization of intangible assets		26,679			27,512			36,405			31,461
Net foreign exchange (gains) losses		(3,165	)		(20,020	)		(34,675	)		20,686

Total expenses		3,054,384			4,368,990			5,796,456			4,892,466

Income (loss) before taxes and interest in earnings (losses) of equity investments		1,195,523			(432,046	)		(444,947	)		968,739
Income tax expense		181,458			65,632			68,972			128,784
Interest in earnings (losses) of equity investments		8,929			(4,970	)		(6,372	)		12,597

Net income (loss)	$	1,022,994		$	(502,648	)	$	(520,291	)	$	852,552

Preferred dividends	$	46,216		$	31,614		$	47,020		$	34,525

Operating earnings (loss) available to common shareholders	$	568,119		$	(503,921	)	$	(641,609	)	$	491,807

Comprehensive income (loss), net of tax	$	1,053,153		$	(514,571	)	$	(536,991	)	$	771,681


Per Share Data:
Earnings (loss) per common share:
Basic operating earnings (loss)	$	8.92		$	(7.43	)	$	(9.50	)	$	6.40
Net realized and unrealized investment gains (losses), net of tax		6.27			(0.61	)		0.23			3.92
Net foreign exchange gains, net of tax		0.02			0.24			0.98			0.17
Interest in earnings (losses) of equity investments, net of tax		0.13			(0.08	)		(0.11	)		0.16

Basic net income (loss)	$	15.34		$	(7.88	)	$	(8.40	)	$	10.65

Weighted average number of common shares outstanding		63,679.1			67,788.4			67,558.7			76,839.5

Diluted operating earnings (loss)	$	8.84		$	(7.43	)	$	(9.50	)	$	6.29
Net realized and unrealized investment gains (losses), net of tax		6.21			(0.61	)		0.23			3.86
Net foreign exchange gains, net of tax		0.01			0.24			0.98			0.16
Interest in earnings (losses) of equity investments, net of tax		0.13			(0.08	)		(0.11	)		0.15

Diluted net income (loss)	$	15.19		$	(7.88	)	$	(8.40	)	$	10.46

Weighted average number of common shares and common share equivalents outstanding		64,284.1			67,788.4			67,558.7			78,234.3

Dividends declared per common share	$	1.86		$	1.75		$	2.35		$	2.05

PartnerRe Ltd.

Condensed Consolidated Balance Sheets

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

(Unaudited)


	September 30, 2012				June 30, 2012				March 31, 2012				December 31, 2011				September 30, 2011				December 31, 2010


Assets
Total investments	$	15,912,719			$	15,031,945			$	15,754,854			$	15,287,245			$	15,789,856			$	14,297,867
Funds held - directly managed		1,188,186				1,233,008				1,264,383				1,268,010				1,322,761				1,772,118
Cash and cash equivalents		1,336,362				1,512,418				1,210,229				1,342,257				1,073,432				2,111,084
Accrued investment income		175,066				160,392				181,898				189,074				198,503				201,928
Reinsurance balances receivable		2,329,907				2,358,432				2,571,038				2,059,976				2,313,538				2,076,884
Reinsurance recoverable on paid and unpaid losses		369,960				434,083				432,059				397,788				447,015				382,878
Funds held by reinsured companies		805,178				783,311				799,988				796,290				814,950				937,032
Deferred acquisition costs		602,660				620,277				636,537				547,202				602,275				595,557
Goodwill		455,533				455,533				455,533				455,533				455,533				455,533
Intangible assets		107,188				116,081				124,974				133,867				142,760				178,715
Other assets		357,371				366,483				364,163				378,131				458,490				354,775

Total assets	$	23,640,130			$	23,071,963			$	23,795,656			$	22,855,373			$	23,619,113			$	23,364,371


Liabilities
Unpaid losses and loss expenses	$	10,761,302			$	10,661,012			$	11,143,354			$	11,273,091			$	11,352,599			$	10,666,604
Policy benefits for life and annuity contracts		1,703,147				1,635,547				1,707,982				1,645,662				1,678,201				1,750,410
Unearned premiums		1,810,881				2,008,384				2,017,177				1,448,841				1,787,351				1,599,139
Other reinsurance balances payable		504,820				496,020				522,701				443,873				493,926				491,194
Debt obligations		820,989				820,989				820,989				820,989				820,989				820,989
Other liabilities		959,989				752,418				796,582				755,375				778,364				829,116

Total liabilities		16,561,128				16,374,370				17,008,785				16,387,831				16,911,430				16,157,452

Total shareholders’ equity		7,079,002				6,697,593				6,786,871				6,467,542				6,707,683				7,206,919

Total liabilities and shareholders’ equity	$	23,640,130			$	23,071,963			$	23,795,656			$	22,855,373			$	23,619,113			$	23,364,371


Shareholders’ Equity Per Common Share (excluding preferred shares)	$	100.79			$	92.78			$	90.23			$	85.33			$	85.82			$	95.55


Diluted Book Value Per Common Share and Common Share Equivalents Outstanding (assuming exercise of all share-based awards)	$	99.54			$	91.88			$	89.63			$	84.82			$	85.26			$	93.77


Number of Common Shares and Common Share Equivalents Outstanding		62,136.1				63,164.5				65,751.6				65,715.7				68,188.1				71,312.3


Capital Structure:
Senior notes ⁽¹⁾	$	750,000	10	%	$	750,000	10	%	$	750,000	10	%	$	750,000	10	%	$	750,000	10	%	$	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	11			893,750	12			893,750	12			893,750	12			893,750	12			520,000	7
Common shareholders’ equity		6,185,252	78			5,803,843	77			5,893,121	77			5,573,792	77			5,813,933	77			6,686,919	83

Total Capital	$	7,892,386	100	%	$	7,510,977	100	%	$	7,600,255	100	%	$	7,280,926	100	%	$	7,521,067	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.

PartnerRe Ltd.

Condensed Consolidated Statements of Cash Flows

(Expressed in millions of U.S. dollars)

(Unaudited)


				For the three months ended
	September 30, 2012			June 30, 2012			March 31, 2012			December 31, 2011			September 30, 2011


Net cash provided by (used in) operating activities:

Underwriting operations ⁽¹⁾	$	152		$	(75	)	$	(68	)	$	(140	)	$	(314	)

Investment income		160			204			188			189			167

Taxes and foreign exchange		(25	)		(26	)		(41	)		(59	)		(12	)


Net cash provided by (used in) operating activities	$	287		$	103		$	79		$	(10	)	$	(159	)


Net cash provided by (used in) operating activities	$	287		$	103		$	79		$	(10	)	$	(159	)

Net cash (used in) provided by investing activities		(335	)		492			(168	)		519			(292	)

Net cash used in financing activities		(141	)		(266	)		(50	)		(223	)		(55	)

Effect of foreign exchange rate changes on cash		13			(27	)		7			(17	)		(28	)


(Decrease) increase in cash and cash equivalents		(176	)		302			(132	)		269			(534	)

Cash and cash equivalents - beginning of period		1,512			1,210			1,342			1,073			1,607


Cash and cash equivalents - end of period	$	1,336		$	1,512		$	1,210		$	1,342		$	1,073

(1)

For the three months ended September 30, 2011, net cash provided by underwriting operations includes approximately $58 million of cash related to the release of assets from the Funds Held - Directly Managed Portfolio.

PartnerRe Ltd.

Condensed Consolidated Statements of Cash Flows

(Expressed in millions of U.S. dollars)

(Unaudited)


	For the nine months ended						For the year ended
	September 30, 2012			September 30, 2011			December 31, 2011			December 31, 2010


Net cash provided by operating activities:

Underwriting operations ⁽¹⁾	$	10		$	111		$	(29	)	$	650

Investment income		551			542			731			762

Taxes and foreign exchange		(92	)		(69	)		(128	)		(185	)


Net cash provided by operating activities	$	469		$	584		$	574		$	1,227


Net cash provided by operating activities	$	469		$	584		$	574		$	1,227

Net cash (used in) provided by investing activities		(11	)		(1,599	)		(1,080	)		1,102

Net cash used in financing activities		(458	)		(19	)		(242	)		(922	)

Effect of foreign exchange rate changes on cash		(6	)		(4	)		(21	)		(34	)


(Decrease) increase in cash and cash equivalents		(6	)		(1,038	)		(769	)		1,373

Cash and cash equivalents - beginning of period		1,342			2,111			2,111			738


Cash and cash equivalents - end of period	$	1,336		$	1,073		$	1,342		$	2,111

(1)

For the nine months ended September 30, 2011 and for the year ended December 31, 2011, net cash provided by underwriting operations includes approximately $358 million of cash related to the release of assets from the Funds Held - Directly Managed Portfolio.

PartnerRe Ltd.

Consolidated Statements of Comprehensive Income (Loss)

(Expressed in thousands of U.S. dollars)

(Unaudited)


				For the three months ended
	September 30, 2012			June 30, 2012			March 31, 2012			December 31, 2011			September 30, 2011


Net income (loss)	$	486,706		$	176,146		$	360,141		$	(17,643	)	$	180,123

Change in currency translation adjustment		32,992			(19,157	)		17,207			(960	)		(54,958	)
Change in net unrealized gains or losses on investments, net of tax		(237	)		(239	)		(242	)		(204	)		(244	)
Change in unfunded pension obligation, net of tax		(590	)		1,294			(869	)		(3,613	)		1,350


Comprehensive income (loss)	$	518,871		$	158,044		$	376,237		$	(22,420	)	$	126,271


	For the nine months ended						For the year ended
	September 30, 2012			September 30, 2011			December 31, 2011			December 31, 2010


Net income (loss)	$	1,022,994		$	(502,648	)	$	(520,291	)	$	852,552

Change in currency translation adjustment		31,042			(10,874	)		(11,834	)		(66,742	)
Change in net unrealized gains or losses on investments, net of tax		(718	)		(745	)		(949	)		(4,908	)
Change in unfunded pension obligation, net of tax		(165	)		(304	)		(3,917	)		(9,221	)


Comprehensive income (loss)	$	1,053,153		$	(514,571	)	$	(536,991	)	$	771,681

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)


				For the three months ended September 30, 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	$	311		$	123		$	360		$	75		$	869		$	187		$	—		$	1,056

Net premiums written	$	311		$	122		$	354		$	69		$	856		$	187		$	—		$	1,043
Decrease in unearned premiums		24			50			9			99			182			8			4			194

Net premiums earned	$	335		$	172		$	363		$	168		$	1,038		$	195		$	4		$	1,237
Losses and loss expenses and life policy benefits		(251	)		(110	)		(161	)		(39	)		(561	)		(157	)		(3	)		(721	)
Acquisition costs		(83	)		(42	)		(79	)		(15	)		(219	)		(27	)		(1	)		(247	)

Technical result	$	1		$	20		$	123		$	114		$	258		$	11		$	—		$	269

Other income														1			1			1			3
Other operating expenses														(58	)		(12	)		(25	)		(95	)

Underwriting result													$	201		$	—			n/a		$	177

Net investment income																	15			120			135

Allocated underwriting result ⁽¹⁾																$	15			n/a			n/a

Net realized and unrealized investment gains																				257			257
Interest expense																				(12	)		(12	)
Amortization of intangible assets																				(9	)		(9	)
Net foreign exchange losses																				(2	)		(2	)
Income tax expense																				(64	)		(64	)
Interest in earnings of equity investments																				5			5

Net income																				n/a		$	487


Loss ratio ⁽²⁾		74.9	%		63.9	%		44.4	%		23.3	%		54.1	%
Acquisition ratio ⁽³⁾		24.8			24.9			21.7			8.8			21.1

Technical ratio ⁽⁴⁾		99.7	%		88.8	%		66.1	%		32.1	%		75.2	%
Other operating expense ratio ⁽⁵⁾														5.5

Combined ratio ⁽⁶⁾														80.7	%

(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 September 30, 2011
	North America			Global (Non-U.S.) P&C			Global (Non-U.S.) Specialty			Catastrophe			Total Non- life segment			Life segment			Corporate and Other			Total

Gross premiums written	$	288		$	144		$	368		$	95		$	895		$	194		$	6		$	1,095

Net premiums written	$	287		$	144		$	360		$	89		$	880		$	194		$	6		$	1,080
Decrease in unearned premiums		42			49			2			110			203			9			2			214

Net premiums earned	$	329		$	193		$	362		$	199		$	1,083		$	203		$	8		$	1,294
Losses and loss expenses and life policy benefits		(192	)		(102	)		(247	)		(169	)		(710	)		(168	)		(4	)		(882	)
Acquisition costs		(80	)		(52	)		(82	)		(15	)		(229	)		(33	)		—			(262	)

Technical result	$	57		$	39		$	33		$	15		$	144		$	2		$	4		$	150

Other income														1			—			—			1
Other operating expenses														(69	)		(12	)		(23	)		(104	)

Underwriting result													$	76		$	(10	)		n/a		$	47

Net investment income																	19			145			164

Allocated underwriting result ⁽¹⁾																$	9			n/a			n/a

Net realized and unrealized investment gains																				26			26
Interest expense																				(12	)		(12	)
Amortization of intangible assets																				(9	)		(9	)
Net foreign exchange gains																				11			11
Income tax expense																				(42	)		(42	)
Interest in losses of equity investments																				(5	)		(5	)

Net income																				n/a		$	180


Loss ratio ⁽²⁾		58.4	%		52.9	%		68.3	%		85.0	%		65.6	%
Acquisition ratio ⁽³⁾		24.3			26.9			22.7			7.4			21.1

Technical ratio ⁽⁴⁾		82.7	%		79.8	%		91.0	%		92.4	%		86.7	%
Other operating expense ratio ⁽⁵⁾														6.4

Combined ratio ⁽⁶⁾														93.1	%

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)


				For the nine months ended September 30, 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	$	924		$	600		$	1,178		$	475		$	3,177		$	604		$	6		$	3,787

Net premiums written	$	922		$	596		$	1,098		$	429		$	3,045		$	601		$	6		$	3,652
Increase in unearned premiums		(59	)		(100	)		(64	)		(98	)		(321	)		(12	)		(1	)		(334	)

Net premiums earned	$	863		$	496		$	1,034		$	331		$	2,724		$	589		$	5		$	3,318
Losses and loss expenses and life policy benefits		(568	)		(327	)		(569	)		(58	)		(1,522	)		(479	)		(3	)		(2,004	)
Acquisition costs		(218	)		(120	)		(241	)		(30	)		(609	)		(82	)		—			(691	)

Technical result	$	77		$	49		$	224		$	243		$	593		$	28		$	2		$	623

Other income														2			3			3			8
Other operating expenses														(187	)		(38	)		(74	)		(299	)

Underwriting result													$	408		$	(7	)		n/a		$	332

Net investment income																	49			387			436

Allocated underwriting result ⁽¹⁾																$	42			n/a			n/a

Net realized and unrealized investment gains																				488			488
Interest expense																				(37	)		(37	)
Amortization of intangible assets																				(27	)		(27	)
Net foreign exchange gains																				3			3
Income tax expense																				(181	)		(181	)
Interest in earnings of equity investments																				9			9

Net income																				n/a		$	1,023


Loss ratio ⁽²⁾		65.9	%		65.9	%		55.1	%		17.4	%		55.9	%
Acquisition ratio ⁽³⁾		25.2			24.3			23.3			9.1			22.3

Technical ratio ⁽⁴⁾		91.1	%		90.2	%		78.4	%		26.5	%		78.2	%
Other operating expense ratio ⁽⁵⁾														6.9

Combined ratio ⁽⁶⁾														85.1	%

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)


				For the nine months ended September 30, 2011
	North America			Global (Non-U.S.) P&C			Global (Non-U.S.) Specialty			Catastrophe			Total Non- life segment			Life segment			Corporate and Other			Total

Gross premiums written	$	868		$	585		$	1,092		$	581		$	3,126		$	597		$	12		$	3,735

Net premiums written	$	868		$	581		$	1,007		$	542		$	2,998		$	596		$	12		$	3,606
(Increase) decrease in unearned premiums		(18	)		(14	)		14			(110	)		(128	)		(8	)		(4	)		(140	)

Net premiums earned	$	850		$	567		$	1,021		$	432		$	2,870		$	588		$	8		$	3,466
Losses and loss expenses and life policy benefits		(556	)		(379	)		(675	)		(1,209	)		(2,819	)		(479	)		(5	)		(3,303	)
Acquisition costs		(210	)		(145	)		(240	)		(16	)		(611	)		(89	)		—			(700	)

Technical result	$	84		$	43		$	106		$	(793	)	$	(560	)	$	20		$	3		$	(537	)

Other income														4			—			1			5
Other operating expenses														(206	)		(38	)		(78	)		(322	)

Underwriting result													$	(762	)	$	(18	)		n/a		$	(854	)

Net investment income																	50			424			474

Allocated underwriting result ⁽¹⁾																$	32			n/a			n/a

Net realized and unrealized investment losses																				(8	)		(8	)
Interest expense																				(37	)		(37	)
Amortization of intangible assets																				(27	)		(27	)
Net foreign exchange gains																				20			20
Income tax expense																				(66	)		(66	)
Interest in losses of equity investments																				(5	)		(5	)

Net loss																				n/a		$	(503	)


Loss ratio ⁽²⁾		65.5	%		66.8	%		66.1	%		279.9	%		98.2	%
Acquisition ratio ⁽³⁾		24.6			25.7			23.5			3.5			21.3

Technical ratio ⁽⁴⁾		90.1	%		92.5	%		89.6	%		283.4	%		119.5	%
Other operating expense ratio ⁽⁵⁾														7.2

Combined ratio ⁽⁶⁾														126.7	%

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Non-life segment


	For the three months ended
	September 30, 2012 ^(A)			June 30, 2012			March 31, 2012			December 31, 2011			September 30, 2011


Net premiums written	$	856		$	934		$	1,255		$	690		$	880

Net premiums earned	$	1,038		$	890		$	795		$	975		$	1,083

Losses and loss expenses		(561	)		(533	)		(427	)		(898	)		(710	)
Acquisition costs		(219	)		(207	)		(183	)		(211	)		(229	)

Technical result	$	258		$	150		$	185		$	(134	)	$	144

Other income		1			—			1			2			1
Other operating expenses		(58	)		(66	)		(63	)		(78	)		(69	)

Underwriting result	$	201		$	84		$	123		$	(210	)	$	76

Loss ratio ⁽²⁾		54.1	%		59.9	%		53.8	%		92.1	%		65.6	%
Acquisition ratio ⁽³⁾		21.1			23.2			23.0			21.6			21.1

Technical ratio ⁽⁴⁾		75.2	%		83.1	%		76.8	%		113.7	%		86.7	%
Other operating expense ratio ⁽⁵⁾		5.5			7.5			7.9			8.0			6.4

Combined ratio ⁽⁶⁾		80.7	%		90.6	%		84.7	%		121.7	%		93.1	%

(A)

Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended September 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($34.6) million and ($48.6) million, respectively, compared to the three months ended September 30, 2011.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Non-life segment


	For the nine months ended						For the year ended
	September 30, 2012 ^(A)			September 30, 2011			December 31, 2011			December 31, 2010


Net premiums written	$	3,045		$	2,998		$	3,688		$	3,961

Net premiums earned	$	2,724		$	2,870		$	3,844		$	4,029

Losses and loss expenses		(1,522	)		(2,819	)		(3,717	)		(2,657	)
Acquisition costs		(609	)		(611	)		(821	)		(856	)

Technical result	$	593		$	(560	)	$	(694	)	$	516

Other income		2			4			4			5
Other operating expenses		(187	)		(206	)		(283	)		(317	)

Underwriting result	$	408		$	(762	)	$	(973	)	$	204

Loss ratio ⁽²⁾		55.9	%		98.2	%		96.7	%		65.9	%
Acquisition ratio ⁽³⁾		22.3			21.3			21.3			21.3

Technical ratio ⁽⁴⁾		78.2	%		119.5	%		118.0	%		87.2	%
Other operating expense ratio ⁽⁵⁾		6.9			7.2			7.4			7.8

Combined ratio ⁽⁶⁾		85.1	%		126.7	%		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 nine months ended September 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($62.2) million and ($76.3) million, respectively, compared to the nine months ended September 30, 2011.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

North America sub-segment


	For the three months ended
	September 30, 2012 ^(A)			June 30, 2012			March 31, 2012			December 31, 2011			September 30, 2011


Net premiums written	$	311		$	270		$	341		$	235		$	287

Net premiums earned	$	335		$	290		$	238		$	285		$	329

Losses and loss expenses		(251	)		(185	)		(133	)		(184	)		(192	)
Acquisition costs		(83	)		(69	)		(66	)		(67	)		(80	)

Technical result	$	1		$	36		$	39		$	34		$	57

Loss ratio ⁽²⁾		74.9	%		63.7	%		55.9	%		64.6	%		58.4	%
Acquisition ratio ⁽³⁾		24.8			23.8			27.5			23.6			24.3

Technical ratio ⁽⁴⁾		99.7	%		87.5	%		83.4	%		88.2	%		82.7	%

Distribution of Net Premiums Written by Major Lines of Business:
Casualty		42	%		37	%		47	%		40	%		37	%
Property		22			20			22			18			19
Agriculture		18			31			5			20			25
Credit/Surety		5			5			5			4			5
Multiline		5			4			12			6			5
Motor		4			2			7			9			7
Other		4			1			2			3			2

Total		100	%		100	%		100	%		100	%		100	%

(A)

Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended September 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($0.8) million and ($1.7) million, respectively, compared to the three months ended September 30, 2011.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

North America sub-segment


	For the nine months ended						For the year ended
	September 30, 2012 ^(A)			September 30, 2011			December 31, 2011			December 31, 2010


Net premiums written	$	922		$	868		$	1,104		$	1,026

Net premiums earned	$	863		$	850		$	1,135		$	1,038

Losses and loss expenses		(568	)		(556	)		(741	)		(577	)
Acquisition costs		(218	)		(210	)		(276	)		(288	)

Technical result	$	77		$	84		$	118		$	173

Loss ratio ⁽²⁾		65.9	%		65.5	%		65.3	%		55.6	%
Acquisition ratio ⁽³⁾		25.2			24.6			24.3			27.8

Technical ratio ⁽⁴⁾		91.1	%		90.1	%		89.6	%		83.4	%

Distribution of Net Premiums Written by Major Lines of Business:
Casualty		43	%		40	%		40	%		42	%
Property		21			18			18			26
Agriculture		17			20			20			8
Multiline		7			7			7			5
Credit/Surety		5			5			5			6
Motor		4			9			8			11
Other		3			1			2			2

Total		100	%		100	%		100	%		100	%

(A)

Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the nine months ended September 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($2.7) million and ($3.2) million, respectively, compared to the nine months ended September 30, 2011.

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
	September 30, 2012 ^(A)			June 30, 2012			March 31, 2012			December 31, 2011			September 30, 2011


Net premiums written	$	122		$	128		$	346		$	97		$	144

Net premiums earned	$	172		$	164		$	159		$	192		$	193

Losses and loss expenses		(110	)		(119	)		(98	)		(188	)		(102	)
Acquisition costs		(42	)		(39	)		(38	)		(45	)		(52	)

Technical result	$	20		$	6		$	23		$	(41	)	$	39

Loss ratio ⁽²⁾		63.9	%		72.3	%		61.6	%		97.8	%		52.9	%
Acquisition ratio ⁽³⁾		24.9			23.9			23.9			23.6			26.9

Technical ratio ⁽⁴⁾		88.8	%		96.2	%		85.5	%		121.4	%		79.8	%

Distribution of Net Premiums Written by Major Lines of Business:
Property		60	%		67	%		62	%		69	%		71	%
Motor		30			23			27			18			21
Casualty		10			10			11			13			8

Total		100	%		100	%		100	%		100	%		100	%

(A)

Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended September 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($13.6) million and ($19.5) million, respectively, compared to the three months ended September 30, 2011.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

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


	For the nine months ended						For the year ended
	September 30, 2012 ^(A)			September 30, 2011			December 31, 2011			December 31, 2010


Net premiums written	$	596		$	581		$	678		$	898

Net premiums earned	$	496		$	567		$	759		$	914

Losses and loss expenses		(327	)		(379	)		(567	)		(702	)
Acquisition costs		(120	)		(145	)		(191	)		(227	)

Technical result	$	49		$	43		$	1		$	(15	)

Loss ratio ⁽²⁾		65.9	%		66.8	%		74.7	%		76.8	%
Acquisition ratio ⁽³⁾		24.3			25.7			25.1			24.9

Technical ratio ⁽⁴⁾		90.2	%		92.5	%		99.8	%		101.7	%

Distribution of Net Premiums Written by Major Lines of Business:
Property		62	%		70	%		70	%		66	%
Motor		27			20			20			22
Casualty		11			10			10			12

Total		100	%		100	%		100	%		100	%

(A)

Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the nine months ended September 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($24.7) million and ($30.2) million, respectively, compared to the nine months ended September 30, 2011.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

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


	For the three months ended
	September 30, 2012 ^(A)			June 30, 2012			March 31, 2012			December 31, 2011			September 30, 2011


Net premiums written	$	354		$	391		$	353		$	337		$	360

Net premiums earned	$	363		$	363		$	308		$	356		$	362

Losses and loss expenses		(161	)		(213	)		(194	)		(276	)		(247	)
Acquisition costs		(79	)		(93	)		(70	)		(88	)		(82	)

Technical result	$	123		$	57		$	44		$	(8	)	$	33

Loss ratio ⁽²⁾		44.4	%		58.8	%		63.2	%		77.5	%		68.3	%
Acquisition ratio ⁽³⁾		21.7			25.5			22.6			24.6			22.7

Technical ratio ⁽⁴⁾		66.1	%		84.3	%		85.8	%		102.1	%		91.0	%

Distribution of Net Premiums Written by Major Lines of Business:
Aviation/Space		13	%		14	%		14	%		20	%		16	%
Credit/Surety		18			18			21			19			18
Energy		9			7			4			8			11
Engineering		14			10			11			15			13
Marine		25			23			20			21			20
Specialty casualty		4			9			14			2			4
Specialty property		12			12			9			11			13
Other		5			7			7			4			5

Total		100	%		100	%		100	%		100	%		100	%

(A)

Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended September 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($19.5) million and ($22.2) million, respectively, compared to the three months ended September 30, 2011.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

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


	For the nine months ended						For the year ended
	September 30, 2012 ^(A)			September 30, 2011			December 31, 2011			December 31, 2010


Net premiums written	$	1,098		$	1,007		$	1,344		$	1,391

Net premiums earned	$	1,034		$	1,021		$	1,376		$	1,405

Losses and loss expenses		(569	)		(675	)		(950	)		(985	)
Acquisition costs		(241	)		(240	)		(328	)		(292	)

Technical result	$	224		$	106		$	98		$	128

Loss ratio ⁽²⁾		55.1	%		66.1	%		69.1	%		70.0	%
Acquisition ratio ⁽³⁾		23.3			23.5			23.8			20.8

Technical ratio ⁽⁴⁾		78.4	%		89.6	%		92.9	%		90.8	%

Distribution of Net Premiums Written by Major Lines of Business:
Aviation/Space		14	%		14	%		16	%		16	%
Credit/Surety		19			21			20			16
Energy		7			8			8			8
Engineering		11			13			14			14
Marine		23			20			20			20
Specialty casualty		9			10			8			11
Specialty property		11			10			10			8
Other		6			4			4			7

Total		100	%		100	%		100	%		100	%

(A)

Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the nine months ended September 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($33.1) million and ($36.8) million, respectively, compared to the nine months ended September 30, 2011.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Catastrophe sub-segment


	For the three months ended
	September 30, 2012 ^(A)			June 30, 2012			March 31, 2012			December 31, 2011			September 30, 2011


Net premiums written	$	69		$	145		$	215		$	21		$	89

Net premiums earned	$	168		$	73		$	90		$	142		$	199

Losses and loss expenses		(39	)		(16	)		(2	)		(250	)		(169	)
Acquisition costs		(15	)		(6	)		(9	)		(11	)		(15	)


Technical result	$	114		$	51		$	79		$	(119	)	$	15

Loss ratio ⁽²⁾		23.3	%		22.5	%		2.1	%		175.9	%		85.0	%
Acquisition ratio ⁽³⁾		8.8			8.3			10.5			7.6			7.4

Technical ratio ⁽⁴⁾		32.1	%		30.8	%		12.6	%		183.5	%		92.4	%

(A)

Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended September 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($0.7) million and ($5.1) million, respectively, compared to the three months ended September 30, 2011.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Catastrophe sub-segment


	For the nine months ended						For the year ended
	September 30, 2012 ^(A)			September 30, 2011			December 31, 2011			December 31, 2010


Net premiums written	$	429		$	542		$	562		$	646

Net premiums earned	$	331		$	432		$	574		$	672

Losses and loss expenses		(58	)		(1,209	)		(1,459	)		(393	)
Acquisition costs		(30	)		(16	)		(26	)		(49	)


Technical result	$	243		$	(793	)	$	(911	)	$	230

Loss ratio ⁽²⁾		17.4	%		279.9	%		254.2	%		58.5	%
Acquisition ratio ⁽³⁾		9.1			3.5			4.5			7.2

Technical ratio ⁽⁴⁾		26.5	%		283.4	%		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 nine months ended September 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($1.7) million and ($6.1) million, respectively, compared to the nine months ended September 30, 2011.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Life segment


	For the three months ended
	September 30, 2012 ^(A)			June 30, 2012			March 31, 2012			December 31, 2011			September 30, 2011


Net premiums written	$	187		$	199		$	215		$	190		$	194

Net premiums earned	$	195		$	200		$	194		$	203		$	203

Life policy benefits		(157	)		(173	)		(149	)		(171	)		(168	)
Acquisition costs		(27	)		(26	)		(29	)		(28	)		(33	)

Technical result	$	11		$	1		$	16		$	4		$	2

Other income		1			1			—			1			—
Other operating expenses		(12	)		(13	)		(12	)		(15	)		(12	)

Underwriting result	$	—		$	(11	)	$	4		$	(10	)	$	(10	)

Net investment income		15			17			17			16			19

Allocated underwriting result ⁽¹⁾	$	15		$	6		$	21		$	6		$	9

Distribution of Net Premiums Written by Major Lines of Business:
Mortality		64	%		65	%		71	%		66	%		71	%
Longevity		33			32			27			31			26
Health		3			3			2			3			3

Total		100	%		100	%		100	%		100	%		100	%

(A)

Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended September 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($16.7) million and ($18.1) million, respectively, compared to the three months ended September 30, 2011.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Life segment


	For the nine months ended						For the year ended
	September 30, 2012 ^(A)			September 30, 2011			December 31, 2011			December 31, 2010


Net premiums written	$	601		$	596		$	786		$	742

Net premiums earned	$	589		$	588		$	792		$	744

Life policy benefits		(479	)		(479	)		(650	)		(624	)
Acquisition costs		(82	)		(89	)		(117	)		(116	)

Technical result	$	28		$	20		$	25		$	4

Other income		3			—			1			2
Other operating expenses		(38	)		(38	)		(53	)		(57	)

Underwriting result	$	(7	)	$	(18	)	$	(27	)	$	(51	)

Net investment income		49			50			66			71

Allocated underwriting result ⁽¹⁾	$	42		$	32		$	39		$	20

Distribution of Net Premiums Written by Major Lines of Business:
Mortality		67	%		73	%		71	%		70	%
Longevity		31			24			26			27
Health		2			3			3			3

Total		100	%		100	%		100	%		100	%

(A)

Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the nine months ended September 30, 2012, net premiums written and net premiums earned include foreign exchange impacts of ($29.8) million and ($31.2) million, respectively, compared to the nine months ended September 30, 2011.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Corporate and Other


				For the three months ended
	September 30, 2012			June 30, 2012			March 31, 2012			December 31, 2011			September 30, 2011


Technical result	$	—		$	1		$	1		$	3		$	4

Other income		1			2			1			—			—
Corporate expenses - acquisition related		—			—			—			—			(1	)
Corporate expenses		(23	)		(22	)		(20	)		(16	)		(19	)
Other operating expenses		(2	)		(5	)		(3	)		(4	)		(3	)

Net investment income		120			136			130			140			145

Net realized and unrealized investment gains		257			38			193			74			26
Interest expense		(12	)		(12	)		(12	)		(12	)		(12	)
Amortization of intangible assets		(9	)		(9	)		(9	)		(9	)		(9	)
Net foreign exchange (losses) gains		(2	)		8			(3	)		15			11
Income tax expense		(64	)		(50	)		(67	)		(3	)		(42	)
Interest in earnings (losses) of equity investments		5			(1	)		5			(2	)		(5	)

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Corporate and Other


	For the nine months ended						For the year ended
	September 30, 2012			September 30, 2011			December 31, 2011			December 31, 2010


Technical result	$	2		$	3		$	6		$	—

Other income		3			1			3			3
Corporate expenses - acquisition related		—			(4	)		(4	)		(16	)
Corporate expenses - voluntary termination plan		—			—			—			(41	)
Corporate expenses ⁽¹⁾		(64	)		(62	)		(79	)		(94	)
Other operating expenses		(10	)		(12	)		(16	)		(15	)

Net investment income		387			424			563			602

Net realized and unrealized investment gains (losses)		488			(8	)		67			402
Interest expense		(37	)		(37	)		(49	)		(44	)
Amortization of intangible assets		(27	)		(27	)		(36	)		(31	)
Net foreign exchange gains (losses)		3			20			34			(21	)
Income tax expense		(181	)		(66	)		(69	)		(129	)
Interest in earnings (losses) of equity investments		9			(5	)		(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
	September 30, 2012			June 30, 2012			March 31, 2012			December 31, 2011			September 30, 2011


Distribution of Net Premiums Written by Line of Business:
Non-life
Property and casualty
Property		14	%		12	%		19	%		12	%		14	%
Casualty		14			10			13			12			11
Motor		5			3			8			4			5
Multiline and other		2			1			3			2			3
Specialty
Agriculture		7			10			3			7			8
Aviation/Space		5			5			4			9			5
Catastrophe		6			13			15			2			8
Credit/Surety		7			8			6			8			7
Energy		3			2			1			3			4
Engineering		5			3			3			6			4
Marine		9			8			5			8			7
Specialty casualty		1			3			3			1			1
Specialty property		4			4			2			4			5
Life		18			18			15			22			18

		100	%		100	%		100	%		100	%		100	%


Distribution of Gross Premiums Written by Geography:
North America		38	%		39	%		33	%		34	%		37	%
Europe		37			36			48			45			38
Asia, Australia and New Zealand		12			13			9			10			13
Latin America, Caribbean and Africa		13			12			10			11			12

		100	%		100	%		100	%		100	%		100	%


Distribution of Gross Premiums Written by Production Source:
Broker		73	%		77	%		72	%		68	%		74	%
Direct		27			23			28			32			26

		100	%		100	%		100	%		100	%		100	%

PartnerRe Ltd.

Distribution of Premiums

(Unaudited)


	For the nine months ended						For the year ended
	September 30, 2012			September 30, 2011			December 31, 2011			December 31, 2010


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

		100	%		100	%		100	%		100	%


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

		100	%		100	%		100	%		100	%


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

		100	%		100	%		100	%		100	%

PartnerRe Ltd.

Distribution of Premiums

(Unaudited)


				For the three months ended
	September 30, 2012			June 30, 2012			March 31, 2012			December 31, 2011			September 30, 2011


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

North America
Non-Proportional		22	%		19	%		50	%		16	%		26	%
Proportional		78			81			50			84			74

Total		100	%		100	%		100	%		100	%		100	%


Global (Non-U.S.) P&C
Non-Proportional		20	%		13	%		34	%		11	%		19	%
Proportional		80			87			66			89			81

Total		100	%		100	%		100	%		100	%		100	%


Global (Non-U.S.) Specialty
Non-Proportional		14	%		24	%		31	%		7	%		17	%
Proportional		86			76			69			93			83

Total		100	%		100	%		100	%		100	%		100	%


Catastrophe
Non-Proportional		98	%		97	%		98	%		96	%		98	%
Proportional		2			3			2			4			2

Total		100	%		100	%		100	%		100	%		100	%


Non-life total
Non-Proportional		25	%		33	%		49	%		13	%		29	%
Proportional		75			67			51			87			71

Total		100	%		100	%		100	%		100	%		100	%

PartnerRe Ltd.

Distribution of Premiums

(Unaudited)


	For the nine months ended						For the year ended
	September 30, 2012			September 30, 2011			December 31, 2011			December 31, 2010


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

North America
Non-Proportional		31	%		34	%		30	%		33	%
Proportional		69			66			70			67

Total		100	%		100	%		100	%		100	%


Global (Non-U.S.) P&C
Non-Proportional		26	%		25	%		23	%		23	%
Proportional		74			75			77			77

Total		100	%		100	%		100	%		100	%


Global (Non-U.S.) Specialty
Non-Proportional		24	%		23	%		19	%		22	%
Proportional		76			77			81			78

Total		100	%		100	%		100	%		100	%


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

Total		100	%		100	%		100	%		100	%


Non-life total
Non-Proportional		37	%		41	%		35	%		38	%
Proportional		63			59			65			62

Total		100	%		100	%		100	%		100	%

PartnerRe Ltd.

Investment Portfolio

(Expressed in millions of U.S. dollars)

(Unaudited)


	September 30, 2012					June 30, 2012					March 31, 2012					December 31, 2011					September 30, 2011					December 31, 2010

Investments:
Fixed maturities
U.S. government	$	958		6	%	$	922		6	%	$	1,066		7	%	$	1,090		7	%	$	1,162		7	%	$	673		5	%
Government Sponsored Enterprises (GSEs)		25		—			22		—			23		—			26		—			26		—			233		2
U.S. states, territories and municipalities		219		1			127		1			130		1			124		1			101		1			67		—
Non-U.S. sovereign government,supranational and government related		2,638		17			2,651		18			3,070		19			2,964		19			3,230		20			2,819		20
Corporates		6,378		40			5,813		39			6,067		39			5,747		38			6,120		39			6,144		43
Mortgage/asset-backed securities		4,121		26			4,085		27			4,056		26			3,991		26			3,717		24			2,889		20

Total fixed maturities		14,339		90			13,620		91			14,412		92			13,942		91			14,356		91			12,825		90
Short-term investments		161		1			32		—			39		—			42		—			98		1			49		—
Equities		1,072		7			1,050		7			943		6			945		6			1,001		6			1,072		8
Other invested assets		341		2			330		2			361		2			358		3			335		2			352		2


Total investments	$	15,913		100	%	$	15,032		100	%	$	15,755		100	%	$	15,287		100	%	$	15,790		100	%	$	14,298		100	%

Cash and cash equivalents		1,336					1,512					1,210					1,343					1,073					2,111
Total investments and cash	$	17,249				$	16,544				$	16,965				$	16,630				$	16,863				$	16,409

Maturity distribution:
One year or less	$	1,175		8	%	$	872		6	%	$	597		4	%	$	571		4	%	$	576		4	%	$	930		7	%
More than one year through five years		4,071		28			4,193		31			5,038		35			4,923		35			5,580		39			5,022		39
More than five years through ten years		4,232		29			3,696		27			3,954		27			3,713		26			3,840		26			3,418		27
More than ten years		901		7			806		6			806		6			786		6			741		5			615		5

Subtotal		10,379		72			9,567		70			10,395		72			9,993		71			10,737		74			9,985		78
Mortgage/asset-backed securities		4,121		28			4,085		30			4,056		28			3,991		29			3,717		26			2,889		22


Total	$	14,500		100	%	$	13,652		100	%	$	14,451		100	%	$	13,984		100	%	$	14,454		100	%	$	12,874		100	%

Credit quality by market value: ^(A)
AAA		15	%				16	%				18	%				25	%				28	%				51	%
AA		42					43					42					37					35					9
A		21					21					21					21					21					22
BBB		14					14					13					11					11					11
Below Investment Grade/Unrated		8					6					6					6					5					7

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

Expected average duration		3.0	Yrs				3.0	Yrs				2.9	Yrs				2.9	Yrs				3.0	Yrs				3.0	Yrs
Average yield to maturity at market		1.9	%				2.3	%				2.3	%				2.4	%				2.5	%				2.9	%
Average credit quality		A					A					AA					AA					AA					AA

(A)

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.

PartnerRe Ltd.

Distribution of Corporate Bonds

(Expressed in thousands of U.S. dollars)

(Unaudited)


				September 30, 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	$	1,374,406			21.6	%		8.0	%		0.7	%
Consumer noncyclical		934,521			14.7			5.4			0.3
Communications		698,074			10.9			4.0			0.4
Utilities		634,086			9.9			3.7			0.3
Energy		461,760			7.2			2.7			0.5
Industrials		422,237			6.6			2.4			0.2
Consumer cyclical		381,541			6.0			2.2			0.3
Government guaranteed corporate debt		379,809			6.0			2.2			0.4
Insurance		254,016			4.0			1.5			0.2
Materials		234,532			3.7			1.4			0.1
Catastrophe bonds		203,168			3.2			1.2			0.2
Longevity and mortality bonds		164,255			2.6			1.0			0.3
Technology		129,931			2.0			0.7			0.1
Real estate investment trusts		96,913			1.5			0.6			0.1
Diversified		8,606			0.1			—			—

Total Corporate bonds	$	6,377,855			100.0	%		37.0	%


Finance sector - Corporate bonds
Banks	$	646,233			10.1	%		3.7	%
Investment banking and brokerage		308,712			4.8			1.8
Financial services		188,029			3.0			1.1
Commercial and consumer finance		187,489			3.0			1.1
Other		43,943			0.7			0.3

Total finance sector - Corporate bonds	$	1,374,406			21.6	%		8.0	%


	AAA			AA			A			BBB			Non-Investment Grade/Unrated			Total
Credit quality of finance sector - Corporate bonds
Banks	$	57,579		$	70,943		$	444,964		$	71,113		$	1,634		$	646,233
Investment banking and brokerage		—			—			284,962			22,740			1,010			308,712
Financial services		—			159,363			22,313			5,361			992			188,029
Commercial and consumer finance		—			11,636			79,245			77,231			19,377			187,489
Other		—			12,996			16,360			13,027			1,560			43,943

Total finance sector - Corporate bonds	$	57,579		$	254,938		$	847,844		$	189,472		$	24,573		$	1,374,406


% of total		4	%		18	%		62	%		14	%		2	%		100	%

Concentration of investment risk

The top 10 Corporate bond issues account for 14.6% of the Company’s total corporate bonds. The single largest issue accounts for 1.9% of the Company’s total Corporate bonds.

PartnerRe Ltd.

Distribution of Equities

(Expressed in thousands of U.S. dollars)

(Unaudited)


			September 30, 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 non-cyclical	$	127,963		16.8	%		0.7	%		—	%
Energy		118,502		15.5			0.7			0.1
Finance		102,057		13.4			0.6			0.1
Technology		84,125		11.0			0.5			0.1
Communications		69,182		9.1			0.4			—
Insurance		64,983		8.5			0.4			0.1
Industrial		56,220		7.4			0.3			0.1
Consumer cyclical		55,453		7.3			0.3			—
Utilities		28,500		3.7			0.2			—
Basic Materials		28,094		3.7			0.2			—
Real estate investment trusts		26,023		3.4			0.1			0.1
Diversified		1,875		0.2			—			—

Total equities	$	762,977		100.0	%		4.4	%


Mutual funds and exchange traded funds (ETFs)
Funds holding fixed income securities		265,844					1.6
Funds and ETFs holding equities		42,707					0.2

Total equities	$	1,071,528					6.2	%

Concentration of investment risk

The single largest fund in funds and ETFs holding equities is an emerging markets fixed income fund, which accounts for 17.0% 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 18.7% of the Company’s total equities. Excluding equity securities held in mutual funds and exchange traded funds, the single largest issuer accounts for 3.1% of the Company’s total equities.

PartnerRe Ltd.

Distribution of Mortgage/Asset-Backed Securities ⁽¹⁾

(Expressed in thousands of U.S. dollars)

(Unaudited)

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


	Rating at September 30, 2012
	GNMA			GSEs			AAA			AA			A			BBB			Non-Investment Grade/Unrated			Total


U.S. Asset-Backed Securities	$	—		$	—		$	59,772		$	72,647		$	80,705		$	13,343		$	366,749		$	593,216
U.S. Collaterized Mortgage Obligations		—			2,615			—			5,745			—			—			—			8,360
U.S. Mortgage Backed Securities (MBS)		667,775			2,003,414			—			—			—			—			—			2,671,189
U.S. Commercial Mortgage Backed Securities (CMBS)		—			—			38,203			—			12,194			2,027			2,098			54,522
U.S. MBS Interest Only		52,405			126,703			12,744			—			—			—			92,883			284,735

	$	720,180		$	2,132,732		$	110,719		$	78,392		$	92,899		$	15,370		$	461,730		$	3,612,022

Non-U.S. Asset-Backed Securities	$	—		$	—		$	68,311		$	33,042		$	28,119		$	—		$	—		$	129,472
Non-U.S. Collaterized Mortgage Obligations		—			—			179,607			39,290			51,449			—			—			270,346
Non-U.S. Commercial Mortgage Backed Securities (CMBS)		—			—			23,741			—			—			—			—			23,741
Non-U.S. Mortgage Backed Securities (MBS)		—			—			85,299			—			—			—			—			85,299

	$	—		$	—		$	356,958		$	72,332		$	79,568		$	—		$	—		$	508,858


Total mortgage/asset-backed securities	$	720,180		$	2,132,732		$	467,677		$	150,724		$	172,467		$	15,370		$	461,730		$	4,120,880


Corporate Securities		—			24,327			—			—			—			—			—			24,327


Total	$	720,180		$	2,157,059		$	467,677		$	150,724		$	172,467		$	15,370		$	461,730		$	4,145,207


% of total		18	%		52	%		11	%		4	%		4	%		—	%		11	%		100	%

(1)

In addition to the mortgage/asset-backed securities above, the Company has derivatives exposure to to-be-announced mortgage-backed securities with a notional value of $123.4 million and a carrying value of $1.4 million at September 30, 2012 within Other Invested Assets.

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


	September 30, 2012														June 30, 2012						December 31, 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	$	133,603	$	—		$	133,603		$	—		$	133,603		$	149,462		$	149,462		$	170,092		$	170,092
Principal Finance - Derivative Exposure Assumed		—		(2,603	)		(2,603	)		81,380			78,777			(1,851	)		109,861			(2,174	)		127,114
Insurance-Linked Securities		—		(1,234	)		(1,234	)		155,964			154,730			(5,162	)		150,802			(968	)		135,407
Commodities Futures		—		—			—			—			—			1,728			43,827			(1,756	)		46,223
Strategic Investments		204,653		—			204,653			—			204,653			189,616			189,616			179,348			179,348

Total other invested assets - Private Markets Exposure Assumed		338,256		(3,837	)		334,419			237,344			571,763			333,793			643,568			344,542			658,184

Other Credit Derivatives - Exposure Assumed		—		253			253			5,000			5,253			272			5,272			246			5,246
Other Credit Derivatives - Protection Purchased		—		(1,055	)		(1,055	)		(60,000	)		(61,055	)		(1,120	)		(78,579	)		(1,193	)		(96,154	)

Other ⁽²⁾		9,486		(1,548	)		7,938									(2,949	)					14,559


Total other invested assets	$	347,742	$	(6,187	)	$	341,555								$	329,996					$	358,154

(1)

The total net exposures originated in Private Markets are $1,748 million at September 30, 2012 ($1,678 million and $1,629 million at June 30, 2012 and December 31, 2011, respectively) . In addition to the net exposures listed above of $572 million ($644 million and $658 million at June 30, 2012 and December 31, 2011, respectively), the Company has the following other net exposures originated in Private Markets:

•

Principal Finance: $720 million of assets listed under Investments - Fixed Maturities and $7 million listed under ‘Investments - Equities for a total exposure of $939 million ($849 million and $824 million at June 30, 2012 and December 31, 2011, respectively) .

•

Insurance -Linked Securities: $374 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 ($560 million and $562 million at June 30, 2012 and December 31, 2011, respectively) .

•

Strategic Investments: $7 million of assets listed under Investments - Fixed Maturities, $28 million under Investments - Equities, and $2 million of assets listed under Other Assets for a total exposure of $242 million ($225 million and $197 million at June 30, 2012 and December 31, 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.

PartnerRe Ltd.

Funds Held - Directly Managed Portfolio

(Expressed in millions of U.S. dollars)

(Unaudited)


	September 30, 2012					June 30, 2012					March 31, 2012					December 31, 2011					September 30, 2011					December 31, 2010

Investments:
Fixed maturities
U.S. government	$	221		21	%	$	222		20	%	$	218		19	%	$	111		11	%	$	111		10	%	$	95		6	%
Government Sponsored Enterprises (GSEs)		136		13			146		14			157		14			158		15			156		13			193		12
Non-U.S. sovereign government, supranational and government related		273		25			276		25			290		25			275		26			303		26			385		25
Corporates		414		39			419		39			460		40			480		45			531		46			799		52
Mortgage/asset-backed securities		—		—			—		—			—		—			—		—			—		—			12		1

Total fixed maturities		1,044		98			1,063		98			1,125		98			1,024		97			1,101		95			1,484		96
Short-term investments		—		—			11		1			2		—			18		2			35		3			38		3
Other invested assets		17		2			15		1			18		2			16		1			18		2			21		1

Total investments	$	1,061		100	%	$	1,089		100	%	$	1,145		100	%	$	1,058		100	%	$	1,154		100	%	$	1,543		100	%

Cash and cash equivalents		90					64					47					176					135					129
Total investments and cash	$	1,151				$	1,153				$	1,192				$	1,234				$	1,289				$	1,672

Accrued investment income		15					13					14					14					17					20
Other funds held assets/liabilities		22					67					58					20					17					80

Total funds held - directly managed	$	1,188				$	1,233				$	1,264				$	1,268				$	1,323				$	1,772


Maturity distribution:
One year or less	$	213		20	%	$	216		20	%	$	192		17	%	$	227		22	%	$	203		18	%	$	289		19	%
More than one year through five years		622		60			642		60			705		63			573		55			646		57			814		53
More than five years through ten years		182		17			188		17			203		18			215		20			260		23			376		25
More than ten years		27		3			28		3			27		2			27		3			27		2			31		2

Subtotal		1,044		100			1,074		100			1,127		100			1,042		100			1,136		100			1,510		99
Mortgage/asset-backed securities		—		—			—		—			—		—			—		—			—		—			12		1

Total	$	1,044		100	%	$	1,074		100	%	$	1,127		100	%	$	1,042		100	%	$	1,136		100	%	$	1,522		100	%

Credit quality by market value: ^(A)
AAA		12	%				14	%				15	%				22	%				23	%				45	%
AA		61					59					59					50					50					27
A		22					23					21					24					23					24
BBB		5					4					5					4					4					4

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

Expected average duration		2.9	Yrs				2.9	Yrs				3.0	Yrs				2.7	Yrs				2.9	Yrs				3.1	Yrs
Average yield to maturity at market		1.0	%				1.3	%				1.4	%				1.7	%				1.8	%				2.4	%
Average credit quality		AA					AA					AA					AA					AA					AA

(A)

PartnerRe Ltd.

Distribution of Corporate Bonds

Funds Held - Directly Managed Portfolio

(Expressed in thousands of U.S. dollars)

(Unaudited)


				September 30, 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
Financial	$	179,192			43.2	%		15.5	%		1.2	%
Consumer noncyclical		64,416			15.5			5.6			0.8
Energy		50,715			12.2			4.4			0.9
Utilities		27,136			6.5			2.4			0.5
Basic Materials		20,252			4.9			1.8			0.4
Government Guaranteed Corporate Debt		16,835			4.1			1.5			1.1
Communications		16,806			4.1			1.5			0.4
Consumer cyclical		12,815			3.1			1.1			0.7
Technology		12,036			2.9			1.0			0.4
Industrial		9,089			2.2			0.8			0.3
Real estate investment trusts		3,598			0.9			0.3			0.3
Insurance		1,565			0.4			0.1			0.1

Total Corporate bonds	$	414,455			100.0	%		36.0	%


Finance sector - Corporate bonds
Banks	$	105,007			25.3	%		9.1	%
Investment Banking & Brokerage		30,222			7.3			2.6
Financial Services		25,119			6.1			2.2
Commercial & Consumer Finance		14,741			3.5			1.3
Other		4,103			1.0			0.3

Total finance sector - Corporate bonds	$	179,192			43.2	%		15.5	%


	AAA			AA			A			BBB			Total
Credit quality of finance sector - Corporate bonds
Banks	$	13,290		$	41,455		$	44,819		$	5,443			105,007
Investment Banking & Brokerage		15,614			—			14,608			—			30,222
Financial Services		142			20,444			4,533			—			25,119
Commercial & Consumer Finance		—			7,952			6,789			—			14,741
Other		—			—			4,103			—			4,103

Total finance sector - Corporate bonds	$	29,046		$	69,851		$	74,852		$	5,443		$	179,192


% of total		16	%		39	%		42	%		3	%		100	%

Concentration of investment risk

The Top 10 corporate bond issuers account for 25.2% of the Company’s total corporate bonds within the Funds Held - Directly Managed Portfolio. The single largest issuer accounts for 3.5% 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

(Expressed in thousands of U.S. dollars)

(Unaudited)


	For the three months ended
	September 30, 2012			June 30, 2012			March 31, 2012			December 31, 2011			September 30, 2011


Fixed maturities	$	123,540		$	129,900		$	133,490		$	138,233		$	145,861
Short-term investments, cash and cash equivalents		537			628			596			571			887
Equities		4,684			12,992			3,513			4,758			4,322
Funds held and other		10,741			13,330			10,602			11,095			14,522
Funds held - directly managed		6,586			7,577			8,593			11,936			9,180
Investment expenses		(10,822	)		(10,921	)		(9,898	)		(11,053	)		(11,125	)

Net investment income ⁽¹⁾	$	135,266		$	153,506		$	146,896		$	155,540		$	163,647


Net realized investment gains on fixed maturities and short-term investments	$	43,626		$	62,202		$	17,398		$	73,155		$	63,611
Net realized investment gains on equities		5,495			6,370			41,421			25,136			2,480
Net realized (losses) gains on other invested assets		(2,604	)		(18,321	)		5,205			(27,529	)		(97,741	)
Change in net unrealized (losses) gains on other invested assets		(1,747	)		(14,346	)		20,428			(1,360	)		(212	)
Change in net unrealized investment gains (losses) on fixed maturities and short-term investments		150,046			32,995			47,821			(51,964	)		189,956
Change in net unrealized investment gains (losses) on equities		51,260			(32,963	)		50,771			57,314			(145,095	)
Net other realized and unrealized investment gains		1,899			406			2,961			2,400			1,193
Net realized and unrealized investment gains (losses) on funds held - directly managed		9,454			1,789			6,730			(2,599	)		11,947

Net realized and unrealized investment gains	$	257,429		$	38,132		$	192,735		$	74,553		$	26,139

(1)

Comparisons of net investment income between periods include the impact of foreign exchange variances. For the three months ended September 30, 2012, net investment income includes foreign exchange impacts of ($4.0) million compared to the three months ended September 30, 2011.

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 nine months ended						For the year ended
	September 30, 2012			September 30, 2011			December 31, 2011			December 31, 2010


Fixed maturities	$	386,931		$	423,343		$	561,576		$	580,258
Short-term investments, cash and cash equivalents		1,761			3,271			3,843			8,541
Equities		21,189			15,056			19,815			20,794
Funds held and other		34,673			38,407			49,502			52,794
Funds held - directly managed		22,756			25,984			37,919			51,775
Investment expenses		(31,641	)		(32,453	)		(43,507	)		(41,380	)

Net investment income ⁽¹⁾	$	435,669		$	473,608		$	629,148		$	672,782


Net realized investment gains on fixed maturities and short-term investments	$	123,226		$	84,052		$	157,207		$	173,426
Net realized investment gains on equities		53,287			65,730			90,866			44,736
Net realized losses on other invested assets		(15,719	)		(148,766	)		(176,295	)		(68,568	)
Change in net unrealized gains (losses) on other invested assets		4,335			(44,918	)		(46,278	)		3,742
Change in net unrealized investment gains on fixed maturities and short-term investments		230,862			180,189			128,224			142,634
Change in net unrealized investment gains (losses) on equities		69,068			(159,174	)		(101,860	)		64,825
Net other realized and unrealized investment gains		5,265			1,217			3,617			13,335
Net realized and unrealized investment gains on funds held - directly managed		17,972			13,810			11,211			27,352

Net realized and unrealized investment gains (losses)	$	488,296		$	(7,860	)	$	66,692		$	401,482

(1)

Comparisons of net investment income between periods include the impact of foreign exchange variances. For the nine months ended September 30, 2012, net investment income includes foreign exchange impacts of ($6.7) million compared to the nine months ended September 30, 2011.

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
	September 30, 2012			June 30, 2012			March 31, 2012			December 31, 2011			September 30, 2011


Fixed maturities	$	6,746		$	7,087		$	7,620		$	7,684		$	7,778
Short-term investments, cash and cash equivalents		375			167			171			681			667
Other		262			305			716			3,779			968
Investment expenses		(797	)		18			86			(208	)		(233	)

Net investment income	$	6,586		$	7,577		$	8,593		$	11,936		$	9,180


Net realized investment gains (losses) on fixed maturities and short-term investments	$	41		$	108		$	(386	)	$	(496	)	$	121
Net realized investment gains (losses) on other invested assets		—			—			—			49			(93	)
Change in net unrealized investment gains (losses) on fixed maturities and short-term investments		7,690			3,029			5,883			(868	)		14,676
Change in net unrealized investment gains (losses) on other invested assets		1,723			(1,348	)		1,233			(1,284	)		(2,757	)

Net realized and unrealized investment gains (losses) on funds held - directly managed	$	9,454		$	1,789		$	6,730		$	(2,599	)	$	11,947

PartnerRe Ltd.

Composition of Net Investment Income and Net Realized and Unrealized Investment Gains

Funds Held - Directly Managed Portfolio

(Expressed in thousands of U.S. dollars)

(Unaudited)


	For the nine months ended						For the year ended
	September 30, 2012			September 30, 2011			December 31, 2011			December 31, 2010


Fixed maturities	$	21,452		$	23,859		$	31,542		$	46,200
Short-term investments, cash and cash equivalents		713			1,224			1,906			1,607
Other		1,284			1,624			5,402			6,078
Investment expenses		(693	)		(723	)		(931	)		(2,110	)

Net investment income	$	22,756		$	25,984		$	37,919		$	51,775


Net realized investment (losses) gains on fixed maturities and short-term investments	$	(238	)	$	5,866		$	5,369		$	1,041
Net realized investment (losses) gains of on other invested assets		—			(91	)		(42	)		1,635
Change in net unrealized investment gains on fixed maturities and short-term investments		16,602			13,182			12,314			27,568
Change in net unrealized investment gains (losses) on other invested assets		1,608			(5,147	)		(6,430	)		(2,892	)

Net realized and unrealized investment gains on funds held - directly managed	$	17,972		$	13,810		$	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
	September 30, 2012			June 30, 2012			March 31, 2012			December 31, 2011			September 30, 2011


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

Gross liability at beginning of period	$	10,661,012		$	11,143,354		$	11,273,091		$	11,352,599		$	12,016,271
Reinsurance recoverable at beginning of period		(331,346	)		(335,613	)		(353,105	)		(359,203	)		(378,581	)

Net liability at beginning of period		10,329,666			10,807,741			10,919,986			10,993,396			11,637,690

Net incurred losses related to:
Current year		753,068			648,522			590,814			949,645			889,469
Prior years		(188,758	)		(115,140	)		(163,603	)		(51,573	)		(175,961	)

		564,310			533,382			427,211			898,072			713,508

Change in reserve agreement ⁽¹⁾		(39,739	)		7,229			(34,792	)		(18,682	)		(14,630	)

Net losses paid		(575,508	)		(774,142	)		(648,377	)		(785,542	)		(1,062,917	)

Effects of foreign exchange rate changes		174,419			(244,544	)		143,713			(167,258	)		(280,255	)


Net liability at end of period		10,453,148			10,329,666			10,807,741			10,919,986			10,993,396
Reinsurance recoverable at end of period		308,154			331,346			335,613			353,105			359,203

Gross liability at end of period	$	10,761,302		$	10,661,012		$	11,143,354		$	11,273,091		$	11,352,599


Breakdown of gross liability at end of period:
Case reserves	$	5,000,805		$	5,000,584		$	5,189,842		$	5,187,761		$	5,198,774
Additional case reserves		411,063			453,035			550,945			495,593			563,690
Incurred but not reported reserves		5,349,434			5,207,393			5,402,567			5,589,737			5,590,135

Gross liability at end of period	$	10,761,302		$	10,661,012		$	11,143,354		$	11,273,091		$	11,352,599


Breakdown of gross liability at end of period by Non-life sub-segment:
North America	$	3,402,697		$	3,310,449		$	3,292,254		$	3,287,364		$	3,294,447
Global (Non-U.S.) P&C		2,511,342			2,478,403			2,671,384			2,631,593			2,726,094
Global (Non-U.S.) Specialty		3,773,521			3,781,955			3,930,158			3,922,404			3,902,088
Catastrophe		1,073,742			1,090,205			1,249,558			1,431,730			1,429,970

Gross liability at end of period	$	10,761,302		$	10,661,012		$	11,143,354		$	11,273,091		$	11,352,599


Unrecognized time value of non-life reserves	$	465,899		$	493,597		$	618,317		$	560,860		$	614,961

Non-life paid loss ratio data:
Non-life paid losses to incurred losses ratio		102.0	%		145.1	%		151.8	%		87.5	%		149.0	%
Non-life paid losses to net premiums earned ratio		55.2	%		86.9	%		81.5	%		80.3	%		97.5	%

(1)

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

PartnerRe Ltd.

Analysis of Unpaid Losses and Loss Expenses

(Expressed in thousands of U.S. dollars)

(Unaudited)


	As at and for the nine months ended						As at and for the year ended
	September 30, 2012			September 30, 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		$	10,666,604		$	10,666,604		$	10,811,483
Reinsurance recoverable at beginning of period		(353,105	)		(348,747	)		(348,747	)		(336,352	)

Net liability at beginning of period		10,919,986			10,317,857			10,317,857			10,475,131

Net incurred losses related to:
Current year		1,992,404			3,303,122			4,252,766			3,137,874
Prior years		(467,501	)		(478,884	)		(530,457	)		(477,883	)

		1,524,903			2,824,238			3,722,309			2,659,991

Change in reserve agreement ⁽¹⁾		(67,302	)		(42,702	)		(61,383	)		(66,783	)

Net losses paid		(1,998,027	)		(2,205,017	)		(2,990,559	)		(2,579,018	)

Effects of foreign exchange rate changes		73,588			99,020			(68,238	)		(171,464	)


Net liability at end of period		10,453,148			10,993,396			10,919,986			10,317,857
Reinsurance recoverable at end of period		308,154			359,203			353,105			348,747

Gross liability at end of period	$	10,761,302		$	11,352,599		$	11,273,091		$	10,666,604


Breakdown of gross liability at end of period:
Case reserves	$	5,000,805		$	5,198,774		$	5,187,761		$	4,652,281
Additional case reserves		411,063			563,690			495,593			326,721
Incurred but not reported reserves		5,349,434			5,590,135			5,589,737			5,687,602

Gross liability at end of period	$	10,761,302		$	11,352,599		$	11,273,091		$	10,666,604


Breakdown of gross liability at end of period by Non-life sub-segment:
North America	$	3,402,697		$	3,294,447		$	3,287,364		$	3,211,622
Global (Non-U.S.) P&C		2,511,342			2,726,094			2,631,593			2,804,937
Global (Non-U.S.) Specialty		3,773,521			3,902,088			3,922,404			3,781,341
Catastrophe		1,073,742			1,429,970			1,431,730			868,704

Gross liability at end of period	$	10,761,302		$	11,352,599		$	11,273,091		$	10,666,604


Unrecognized time value of non-life reserves	$	465,899		$	614,961		$	560,860		$	949,210

Non-life paid loss ratio data:
Non-life paid losses to incurred losses ratio		131.0	%		78.1	%		80.3	%		97.0	%
Non-life paid losses to net premiums earned ratio		73.2	%		76.6	%		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.

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
	September 30, 2012			June 30, 2012			March 31, 2012			December 31, 2011			September 30, 2011


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

Gross liability at beginning of period	$	1,635,547		$	1,707,982		$	1,645,662		$	1,678,201		$	1,726,180
Reinsurance recoverable at beginning of period		(9,635	)		(9,221	)		(9,874	)		(10,633	)		(11,624	)

Net liability at beginning of period		1,625,912			1,698,761			1,635,788			1,667,568			1,714,556

Net incurred losses related to:
Current year		162,638			170,889			160,204			175,199			163,065
Prior years		(5,811	)		1,866			(10,929	)		(4,067	)		5,053

		156,827			172,755			149,275			171,132			168,118

Net losses paid		(142,721	)		(174,862	)		(131,047	)		(154,225	)		(141,734	)

Effects of foreign exchange rate changes		53,293			(70,742	)		44,745			(48,687	)		(73,372	)


Net liability at end of period		1,693,311			1,625,912			1,698,761			1,635,788			1,667,568
Reinsurance recoverable at end of period		9,836			9,635			9,221			9,874			10,633

Gross liability at end of period	$	1,703,147		$	1,635,547		$	1,707,982		$	1,645,662		$	1,678,201

PartnerRe Ltd.

Analysis of Policy Benefits for Life and Annuity Contracts

(Expressed in thousands of U.S. dollars)

(Unaudited)


	As at and for the nine months ended						As at and for the year ended
	September 30, 2012			September 30, 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		$	1,750,410		$	1,750,410		$	1,615,193
Reinsurance recoverable at beginning of period		(9,874	)		(14,739	)		(14,739	)		(20,465	)

Net liability at beginning of period		1,635,788			1,735,671			1,735,671			1,594,728

Net incurred losses related to:
Current year		493,730			475,572			650,771			611,795
Prior years		(14,874	)		3,556			(510	)		11,832

		478,856			479,128			650,261			623,627

Net losses paid ⁽¹⁾		(448,629	)		(564,701	)		(718,926	)		(419,944	)

Effects of foreign exchange rate changes		27,296			17,470			(31,218	)		(62,740	)


Net liability at end of period		1,693,311			1,667,568			1,635,788			1,735,671
Reinsurance recoverable at end of period		9,836			10,633			9,874			14,739

Gross liability at end of period	$	1,703,147		$	1,678,201		$	1,645,662		$	1,750,410

(1)

Net losses paid for the nine months ended September 30, 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
	September 30, 2012			June 30, 2012			March 31, 2012			December 31, 2011			September 30, 2011


Prior year net favorable (adverse) reserve development:

Non-life segment:
North America	$	66,621		$	38,764		$	61,717		$	20,178		$	74,769
Global (Non-U.S.) P&C		28,686			17,981			27,683			26,369			34,945
Global (Non-U.S.) Specialty		90,602			58,549			55,428			6,478			30,027
Catastrophe		2,849			(154	)		18,775			(1,452	)		36,220

Total Non-life net prior year reserve development	$	188,758		$	115,140		$	163,603		$	51,573		$	175,961


Non-life segment:
Net prior year reserve development due to changes in premiums	$	(13,761	)	$	(35,011	)	$	(26,333	)	$	(24,150	)	$	(8,461	)
Net prior year reserve development due to all other factors ⁽²⁾		202,519			150,151			189,936			75,723			184,422

Total Non-life net prior year reserve development	$	188,758		$	115,140		$	163,603		$	51,573		$	175,961


Life segment:
Net prior year reserve development due to GMDB ⁽¹⁾	$	5,227		$	(4,784	)	$	9,569		$	(32	)	$	(5,475	)
Net prior year reserve development due to all other factors ⁽²⁾		584			2,918			1,360			4,099			422

Total Life net prior year reserve development	$	5,811		$	(1,866	)	$	10,929		$	4,067		$	(5,053	)

(1)

The guaranteed minimum death benefit (GMDB) reserves are sensitive to volatility in certain referenced global equity markets. At September 30, 2012, a 10% increase in the referenced global equity market would have decreased reserves by approximately $4.1 million, while a 10% decrease in the referenced global equity market would have increased reserves by approximately $5.2 million.

(2)

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

PartnerRe Ltd.

Reserve Development

(Expressed in thousands of U.S. dollars)

(Unaudited)


	For the nine months ended						For the year ended
	September 30, 2012			September 30, 2011			December 31, 2011			December 31, 2010


Prior year net favorable (adverse) reserve development:

Non-life segment:
North America	$	167,102		$	169,002		$	189,180		$	165,780
Global (Non-U.S.) P&C		74,350			89,626			115,995			97,539
Global (Non-U.S.) Specialty		204,579			122,497			128,975			170,931
Catastrophe		21,470			97,759			96,307			43,633

Total Non-life net prior year reserve development	$	467,501		$	478,884		$	530,457		$	477,883


Non-life segment:
Net prior year reserve development due to changes in premiums	$	(75,104	)	$	(34,351	)	$	(58,501	)	$	(7,509	)
Net prior year reserve development due to all other factors ⁽²⁾		542,605			513,235			588,958			485,392

Total Non-life net prior year reserve development	$	467,501		$	478,884		$	530,457		$	477,883


Life segment:
Net prior year reserve development due to GMDB ⁽¹⁾	$	10,012		$	5,277		$	5,245		$	16,725
Net prior year reserve development due to all other factors ⁽²⁾		4,862			(8,833	)		(4,735	)		(28,557	)

Total Life net prior year reserve development	$	14,874		$	(3,556	)	$	510		$	(11,832	)

(1)

(2)

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

PartnerRe Ltd.

Natural Catastrophe Probable Maximum Losses (PMLs)

(Expressed in millions of U.S. dollars)

(Unaudited)

Single occurrence estimated net PML exposure ⁽¹⁾


		July 1, 2012				April 1, 2012				January 1, 2012
Zone	Peril	1-in-250 year PML		1-in-500 year PML (Earthquake perils only)		1-in-250 year PML		1-in-500 year PML (Earthquake perils only)		1-in-250 year PML		1-in-500 year PML (Earthquake perils only)


U.S. Southeast	Hurricane	$	1,173			$	1,253			$	1,210
U.S. Northeast	Hurricane		1,000				1,068				1,074
U.S. Gulf Coast	Hurricane		1,069				997				977
Caribbean	Hurricane		272				292				280
Europe	Windstorm		927				884				922
Japan	Typhoon		164				161				128
California	Earthquake		734	$	923		856	$	1,072		865	$	1,086
British Columbia	Earthquake		350		526		355		527		363		542
Japan	Earthquake		502		543		537		578		802		851
Australia	Earthquake		468		582		479		626		478		627
New Zealand	Earthquake		320		339		338		378		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.

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
	September 30, 2012			June 30, 2012			March 31, 2012			December 31, 2011			September 30, 2011


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⁾		35.5	%		11.8	%		24.7	%		(2.1	)%		10.4	%
Less:
Annualized net realized and unrealized investment gains, net of tax, on beginning diluted book value per common share ⁽¹⁾		16.7			1.3			11.4			3.6			0.4

Annualized net foreign exchange gains (losses), net of tax, on beginning diluted book value per common share ⁽¹⁾		0.1			0.1			(0.1	)		3.2			—

Annualized net interest in earnings (losses) of equity investments, net of tax, on beginning diluted book value per common share ⁽¹⁾		0.3			—			0.4			(0.1	)		(0.3	)


Annualized operating return on beginning diluted book value per common share ⁽¹⁾		18.4	%		10.4	%		13.0	%		(8.8	)%		10.3	%


Net income (loss)	$	486,706		$	176,146		$	360,141		$	(17,643	)	$	180,123
Less:
Net realized and unrealized investment gains, net of tax		221,825			18,325			159,221			56,384			6,167
Net foreign exchange gains (losses), net of tax		1,418			1,277			(1,630	)		50,150			(106	)
Interest in earnings (losses) of equity investments, net of tax		3,652			(879	)		5,450			(1,894	)		(4,788	)
Dividends to preferred shareholders		15,405			15,405			15,405			15,405			14,352

Operating earnings (loss) available to common shareholders	$	244,406		$	142,018		$	181,695		$	(137,688	)	$	164,498


Per diluted share:
Net income (loss)	$	7.53		$	2.50		$	5.24		$	(0.49	)	$	2.43
Less:
Net realized and unrealized investment gains, net of tax		3.55			0.29			2.42			0.85			0.09
Net foreign exchange gains (losses), net of tax		0.02			0.02			(0.02	)		0.75			—
Interest in earnings (losses) of equity investments, net of tax		0.06			(0.01	)		0.08			(0.03	)		(0.07	)

Operating earnings (loss)	$	3.90		$	2.20		$	2.76		$	(2.06	)	$	2.41

(1)

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

PartnerRe Ltd.

Reconciliation of GAAP and non-GAAP measures

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

(Unaudited)


	For the nine months ended						For the year ended
	September 30, 2012			September 30, 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⁾		23.9	%		(11.2	)%		(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⁾		9.8			(0.9	)		0.2			4.6

Annualized net foreign exchange gains, net of tax, on beginning diluted book value per common share ⁽¹⁾		—			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⁾		0.2			(0.1	)		(0.1	)		0.2


Annualized operating return on beginning diluted book value per common share ⁽¹⁾		13.9	%		(10.6	)%		(10.1	)%		7.4	%


Net income (loss)	$	1,022,994		$	(502,648	)	$	(520,291	)	$	852,552
Less:
Net realized and unrealized investment gains (losses), net of tax		399,371			(41,280	)		15,104			301,462
Net foreign exchange gains, net of tax		1,065			16,284			66,433			12,847
Interest in earnings (losses) of equity investments, net of tax		8,223			(5,345	)		(7,239	)		11,911
Dividends to preferred shareholders		46,216			31,614			47,020			34,525

Operating earnings (loss) available to common shareholders	$	568,119		$	(503,921	)	$	(641,609	)	$	491,807


Per diluted share:
Net income (loss)	$	15.19		$	(7.88	)	$	(8.40	)	$	10.46
Less:
Net realized and unrealized investment gains (losses), net of tax		6.21			(0.61	)		0.23			3.86
Net foreign exchange gains, net of tax		0.01			0.24			0.98			0.16
Interest in earnings (losses) of equity investments, net of tax		0.13			(0.08	)		(0.11	)		0.15

Operating earnings (loss)	$	8.84		$	(7.43	)	$	(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), Operating Earnings (Loss) per diluted 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.

PartnerRe Ltd.

Reconciliation of GAAP and non-GAAP measures

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

(Unaudited)


	September 30, 2012		June 30, 2012		March 31, 2012		December 31, 2011		September 30, 2011		December 31, 2010


Reconciliation of GAAP and non-GAAP measures:

Shareholders’ equity	$	7,079,002	$	6,697,593	$	6,786,871	$	6,467,542	$	6,707,683	$	7,206,919
Less:
Preferred shares, aggregate liquidation value		893,750		893,750		893,750		893,750		893,750		520,000


Common shareholders’ equity		6,185,252		5,803,843		5,893,121		5,573,792		5,813,933		6,686,919

Less:
Net unrealized gains on fixed income securities and funds held - directly managed, net of tax		682,956		541,202		504,386		451,946		501,803		364,032


Book value excluding net unrealized gains or losses on fixed income securities and funds held - directly managed, net of tax	$	5,502,296	$	5,262,641	$	5,388,735	$	5,121,846	$	5,312,130	$	6,322,887


Divided by:
Number of common shares and common share equivalents outstanding		62,136.1		63,164.5		65,751.6		65,715.7		68,188.1		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	$	88.55	$	83.32	$	81.96	$	77.94	$	77.90	$	88.66

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)


	September 30, 2012			June 30, 2012			March 31, 2012			December 31, 2011			September 30, 2011			December 31, 2010

Basic book value per common share
Total shareholders’ equity	$	7,079,002		$	6,697,593		$	6,786,871		$	6,467,542		$	6,707,683		$	7,206,919
Less: preferred shares, aggregate liquidation value		(893,750	)		(893,750	)		(893,750	)		(893,750	)		(893,750	)		(520,000	)

Common shareholders’ equity	$	6,185,252		$	5,803,843		$	5,893,121		$	5,573,792		$	5,813,933		$	6,686,919

Basic common shares outstanding		61,366.7			62,557.5			65,313.0			65,322.3			67,749.4			69,986.2


Basic book value per common share	$	100.79		$	92.78		$	90.23		$	85.33		$	85.82		$	95.55


Diluted book value per common share

Common shareholders’ equity	$	6,185,252		$	5,803,843		$	5,893,121		$	5,573,792		$	5,813,933		$	6,686,919

Basic common shares outstanding		61,366.7			62,557.5			65,313.0			65,322.3			67,749.4			69,986.2
Add: Stock options and other		2,297.4			1,968.6			1,099.2			809.4			688.6			3,293.4
Add: Restricted stock units		877.6			877.5			780.9			489.0			573.9			940.4
Less: Stock options and other bought back via treasury stock method		(2,405.6	)		(2,239.1	)		(1,441.5	)		(905.0	)		(823.8	)		(2,907.7	)

Diluted common shares and common share equivalents outstanding		62,136.1			63,164.5			65,751.6			65,715.7			68,188.1			71,312.3


Diluted book value per common share	$	99.54		$	91.88		$	89.63		$	84.82		$	85.26		$	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.

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 September 30, 2012						As at and for the three months ended September 30, 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	$	5,804		$	91.88		$	5,738		$	83.71

Technical result		269			4.29			150			2.20
Other operating expenses		(95	)		(1.51	)		(104	)		(1.52	)
Net investment income		135			2.16			164			2.40
Amortization of intangible assets		(9	)		(0.14	)		(9	)		(0.14	)
Other, net		(10	)		(0.15	)		(12	)		(0.16	)
Operating income tax expense		(31	)		(0.50	)		(11	)		(0.16	)
Preferred dividends		(15	)		(0.25	)		(14	)		(0.21	)

Operating earnings		244			3.90			164			2.41

Net realized and unrealized investment gains, net of tax		222			3.55			6			0.09
Net foreign exchange gains (losses), net of tax		2			0.02			—			—
Interest in earnings (losses) of equity investments, net of tax		4			0.06			(4	)		(0.07	)

Net income available to common shareholders		472			7.53			166			2.43

Common share dividends		(38	)		(0.62	)		(41	)		(0.60	)
Change in currency translation adjustment		33			0.53			(55	)		(0.81	)
(Repurchase) issuance of common shares, net		(85	)		0.41			5			0.05
Change in other accumulated comprehensive income or loss, net of tax		(1	)		(0.01	)		1			0.02

Impact of change in number of common and common share equivalents outstanding		n/a			(0.18	)		n/a			0.46


Common shareholders’ equity / diluted book value per common share at end of period	$	6,185		$	99.54		$	5,814		$	85.26

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 nine months ended September 30, 2012						As of and for the nine months ended September 30, 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		623			9.69			(537	)		(7.91	)
Other operating expenses		(299	)		(4.65	)		(322	)		(4.75	)
Net investment income		436			6.78			474			6.99
Amortization of intangible assets		(27	)		(0.42	)		(27	)		(0.41	)
Other, net		(29	)		(0.44	)		(32	)		(0.47	)
Operating income tax expense		(90	)		(1.40	)		(28	)		(0.41	)
Preferred dividends		(46	)		(0.72	)		(32	)		(0.47	)

Operating earnings (loss)		568			8.84			(504	)		(7.43	)

Net realized and unrealized investment gains (losses), net of tax		400			6.21			(41	)		(0.61	)
Net foreign exchange gains, net of tax		1			0.01			16			0.24
Interest in earnings (losses) of equity investments, net of tax		8			0.13			(5	)		(0.08	)

Net income (loss) available to common shareholders		977			15.19			(534	)		(7.88	)

Common share dividends		(118	)		(1.86	)		(118	)		(1.75	)
Change in currency translation adjustment		31			0.48			(11	)		(0.16	)
Repurchase of common shares, net		(278	)		1.27			(197	)		0.24
Preferred shares issuance costs		—			—			(12	)		(0.18	)
Change in other accumulated comprehensive income or loss, net of tax		(1	)		0.01			(1	)		(0.01	)

Impact of change in number of common and common share equivalents outstanding		n/a			(0.37	)		n/a			1.23


Common shareholders’ equity / diluted book value per common share at end of period	$	6,185		$	99.54		$	5,814		$	85.26

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

Attached files

PARTNERRE LTD Reports

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