PARTNERRE LTD - FORM 8-K - EX-99.2 - EXHIBIT 99.2

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EX-99.1 - EXHIBIT 99.1 - PARTNERRE LTD	q12016exhibit991-pressrele.htm
8-K - 8-K - PARTNERRE LTD	q12016form8-k.htm



		Exhibit 99.2

PartnerRe Ltd.

Financial Supplement

Financial Information

as at March 31, 2016

(unaudited)

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

PartnerRe Ltd.

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

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

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

PartnerRe Ltd.

Financial Supplement - March 31, 2016

Table of Contents



	Page

Regulation G
Life Value in Force
Consolidated Financial Statements
Consolidated Statements of Operations	1
Condensed Consolidated Balance Sheets	2
Condensed Consolidated Statements of Cash Flows	3
Consolidated Statements of Comprehensive Income (Loss)	4
Segment Information
For the three months ended March 31, 2016 and 2015	5-6
Non-life segment	7
North America sub-segment	8
Global (Non-U.S.) P&C sub-segment	9
Global Specialty sub-segment	10
Catastrophe sub-segment	11
Life and Health segment	12
Corporate and Other	13
Distribution of Premiums
Distribution of Premiums by line of business, geography and production source	14
Distribution of Premiums by reinsurance type for the Non-life sub-segment	15
Investments
Investment Portfolio	16
Distribution of Corporate Bonds	17
Distribution of Equities	18
Distribution of Mortgage/Asset-Backed Securities	19
Funds Held - Directly Managed Portfolio	20
Composition of Net Investment Income and Net Realized and Unrealized Investment Gains (Losses)	21
Loss Reserves
Analysis of Unpaid Losses and Loss Expenses	22
Analysis of Policy Benefits for Life and Annuity Contracts	23
Reserve Development	24
Natural Catastrophe Probable Maximum Losses (PMLs)	25
Reconciliation of GAAP and non-GAAP measures	26 - 27

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 PartnerRe Common Shareholders (Operating Earnings (Loss)) and Annualized Operating Return on Average Common Shareholders' Equity (Annualized Operating ROE): The Company uses Operating Earnings (Loss) 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 (except where the Company has made a strategic investment in an insurance or reinsurance related investee), net foreign exchange gains and losses, net of tax, loss on redemption of preferred shares and the interest in earnings (losses) of equity method investments, net of tax (except where the Company has made a strategic investment in an insurance or reinsurance related investee and where the Company does not control the investee’s activities), certain withholding taxes on intercompany dividends (included in other expenses) and the amalgamation termination fee and reimbursement of expenses paid to Axis Capital (included in other expenses) and are calculated after preferred dividends. The Company calculates Annualized Operating ROE using Operating Earnings (Loss) for the period divided by the average common shareholders' equity outstanding for the period. Operating Earnings (Loss) should not be viewed as a substitute for Net Income (Loss) prepared in accordance with GAAP. Annualized Operating ROE supplements GAAP information.

Tangible Book Value : The Company calculates Tangible Book Value using common shareholders' equity attributable to PartnerRe less goodwill and intangible assets, net of tax.

Total Capital: The Company calculates Total Capital as the sum of common shareholders' equity attributable to PartnerRe, preferred shares, 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: On March 18, 2016 EXOR acquired 100% ownership of the Company's common shares. Accordingly, all net income per share, operating earning per share and book value per share data for the current year and the prior year periods is no longer meaningful and has been excluded.. The Company also redefined its calculation of Annualized Operating ROE to be based on average common shareholders' equity, accordingly, all comparative data in this Financial Supplement have been recast.

PartnerRe Ltd.

Life Value In Force

The Company calculates Value in Force (VIF) for its Life portfolio, which represents the value of the Life portfolio that is not recognized in the Consolidated Balance Sheets prepared under generally accepted accounting principles in the United States (U.S. GAAP). Accordingly, there is no corresponding measure that is prepared in accordance with U.S. GAAP. Management believes that this is useful information for investors, analysts, rating agencies and others. The Life VIF calculation includes the business written in the Company’s Life and Health segment, except for the PartnerRe Health business.

The Company’s Life VIF calculation uses market consistent techniques, but primarily differs from a full Market Consistent Embedded Value (MCEV) calculation, as defined in the European Insurance CFO Forum MCEV principles, due to: (i) different methodologies used; and ii) the Life VIF is only a component of MCEV and, specifically, the tangible assets backing the liabilities are not considered in the Company’s calculation.

The Company’s Life VIF, which is calculated on a going concern basis, is the sum of:

•

present value of future profits - which is defined as the net present value of shareholders' projected after-tax cash flows from the in-force business on a best-estimate assumption basis. The discount rates used reflect currency-specific market yields on zero coupon government bonds at given durations and are applied to projected deterministic cash flows and to calculate risk-free investment returns. The best-estimate is defined as median biometric assumptions and does not include any provision for adverse deviation. The Company attributes no value to future new business or renewals of short-term business. Allocated inflated-adjusted expenses are projected on a best estimate basis;


•	cost of non-hedgeable risks - which is defined as the cost of holding capital for non-hedgeable financial and non-hedgeable non-financial risks, such as a mortality deviation from shocks or changes in trends. The non-hedgeable risk capital has been determined using an internal economic capital model calibrated to a 99.6% Value at Risk (VaR) corresponding to a 1 in 250 year event;


•	frictional costs - which is defined as the cost of double taxation or investment management charges on assets backing required capital;

•

time value of options and guarantees (TVOG) - which is defined as the difference between the market value and the intrinsic value of the option calculated using stochastic techniques. The TVOG is significant to the guaranteed minimum death benefit (GMDB) portfolio where the Company covers death claims on savings plans, where the sum reinsured is the difference between the invested premium amount and the current fund value; and


•	cost of non-economic excess encumbered capital - which is defined as the cost of any encumbered capital in excess of economic capital required by local regulations.

Actuarial non-economic assumptions, such as current and future mortality, are based on the most recent experience available, combined with internal and industry benchmarks, including trend expectation where appropriate.

The Life VIF is sensitive to changes in assumptions. In particular, the Life VIF is sensitive to changes in yield curves that are used for discounting, changes in equity market value assumptions and implied volatilities.

The Company performs a detailed Life VIF calculation on an annual basis and performs a roll-forward approach on an interim quarterly basis.

PartnerRe Ltd.

Consolidated Statements of Operations

(Expressed in thousands of U.S. dollars)

(Unaudited)



	For the three months ended															For the year ended
	March 31,			December 31,			September 30,			June 30,			March 31,			December 31,			December 31,
	2016			2015			2015			2015			2015			2015			2014
Revenues
Gross premiums written	$	1,629,009		$	1,098,618		$	1,267,961		$	1,432,012		$	1,748,933		$	5,547,525		$	5,932,003
Net premiums written	$	1,500,718		$	1,063,636		$	1,190,393		$	1,322,304		$	1,653,215		$	5,229,548		$	5,719,884
(Increase) decrease in unearned premiums	(359,002		)	230,865			221,737			5,522			(418,493		)	39,630			(110,689		)
Net premiums earned	1,141,716			1,294,501			1,412,130			1,327,826			1,234,722			5,269,178			5,609,195
Net investment income	102,987			107,908			117,054			120,192			104,631			449,784			479,696
Net realized and unrealized investment gains (losses)	167,193			(24,373		)	(133,017		)	(255,734		)	115,645			(297,479		)	371,796
Other income	4,840			1,560			3,056			236			4,292			9,144			16,190
Total revenues	1,416,736			1,379,596			1,399,223			1,192,520			1,459,290			5,430,627			6,476,877
Expenses
Losses and loss expenses and life policy benefits	714,268			767,026			804,196			864,917			721,281			3,157,420			3,462,770
Acquisition costs	282,974			311,228			346,520			283,463			275,791			1,217,003			1,213,822
Other expenses ^{(1) (2) (3)}	152,674			120,389			415,818			129,766			124,750			790,723			449,688
Interest expense	12,259			12,246			12,249			12,248			12,245			48,988			48,963
Amortization of intangible assets	6,588			6,290			6,768			6,767			6,768			26,593			27,486
Net foreign exchange (gains) losses	(2,074		)	(6,195		)	22,413			6,391			(13,147		)	9,461			(18,201		)
Total expenses	1,166,689			1,210,984			1,607,964			1,303,552			1,127,688			5,250,188			5,184,528
Income (loss) before taxes and interest in (losses) earnings of equity method investments	250,047			168,612			(208,741		)	(111,032		)	331,602			180,439			1,292,349
Income tax expense (benefit)	30,954			(3,326		)	17,170			(13,844		)	79,665			79,664			239,506
Interest in (losses) earnings of equity method investments	(3,467		)	4,811			(3,231		)	8,633			(3,838		)	6,375			15,270
Net income (loss)	215,626			176,749			(229,142		)	(88,555		)	248,099			107,150			1,068,113
Net (income) loss attributable to noncontrolling interests	—			(238		)	5			(354		)	(2,182		)	(2,769		)	(13,139		)
Net income (loss) attributable to PartnerRe	215,626			176,511			(229,137		)	(88,909		)	245,917			104,381			1,054,974
Preferred dividends	14,184			14,184			14,184			14,184			14,184			56,735			56,735
Net income (loss) attributable to PartnerRe common shareholders	$	201,442		$	162,327		$	(243,321	)	$	(103,093	)	$	231,733		$	47,646		$	998,239
Operating earnings attributable to PartnerRe common shareholders	$	44,238		$	183,858		$	211,583		$	112,494		$	150,536		$	658,472		$	755,418
Comprehensive income (loss) attributable to PartnerRe	$	235,717		$	162,055		$	(267,720	)	$	(81,913	)	$	242,760		$	55,181		$	1,033,129
(1) Includes costs related to the Axis and Exor transactions and the restructuring of the Company’s business support operations and Global Non-life operations. See page 13 for the expense data.
(2) Withholding taxes on certain inter-company dividends are included in other expenses.
(3) Other expenses for the three months ended June 30,2015 and the year ended December 31, 2015 include $25 million, pretax, respectively, related to the negotiated earn-out consideration paid to the former shareholders of Presidio Reinsurance Group, Inc.

PartnerRe Ltd.

Condensed Consolidated Balance Sheets

(Expressed in thousands of U.S. dollars)

(Unaudited)



	March 31,				December 31,				September 30,				June 30,				March 31,				December 31,
	2016				2015				2015				2015				2015				2014
Assets
Total investments	$	13,836,705			$	14,338,015			$	14,475,450			$	14,715,834			$	15,038,946			$	15,299,764
Funds held - directly managed	579,571				539,743				595,677				594,870				592,609				608,853
Cash and cash equivalents	1,749,851				1,577,097				1,256,304				1,492,997				1,413,799				1,313,468
Accrued investment income	134,735				141,672				142,892				139,772				150,255				158,737
Reinsurance balances receivable	2,964,950				2,428,020				3,079,002				3,055,308				2,899,821				2,454,850
Reinsurance recoverable on paid and unpaid losses	300,731				282,916				329,834				342,074				290,018				246,158
Funds held by reinsured companies	685,564				657,815				671,572				688,358				659,058				765,905
Deferred acquisition costs	691,117				629,372				684,380				733,184				706,779				661,186
Goodwill	456,380				456,380				456,380				456,380				456,380				456,380
Intangible assets	126,423				133,011				139,301				146,069				152,836				159,604
Other assets	429,436				222,002				194,436				166,977				128,094				145,452
Total assets	$	21,955,463			$	21,406,043			$	22,025,228			$	22,531,823			$	22,488,595			$	22,270,357
Liabilities
Unpaid losses and loss expenses	$	9,331,087			$	9,064,711			$	9,522,225			$	9,549,398			$	9,401,397			$	9,745,806
Policy benefits for life and annuity contracts	2,089,055				2,051,935				2,123,028				2,087,369				1,996,519				2,050,107
Unearned premiums	2,086,332				1,644,757				1,934,360				2,207,674				2,159,446				1,750,607
Other reinsurance balances payable	293,342				246,089				288,402				234,175				188,941				182,395
Debt obligations	820,989				820,989				820,989				820,989				820,989				820,989
Other liabilities	424,473				674,611				558,875				550,075				666,475				616,042
Total liabilities	15,045,278				14,503,092				15,247,879				15,449,680				15,233,767				15,165,946
Total shareholders' equity attributable to PartnerRe	6,910,185				6,900,501				6,775,137				7,079,926				7,197,145				7,048,910
Noncontrolling interests	—				2,450				2,212				2,217				57,683				55,501
Total shareholders' equity	6,910,185				6,902,951				6,777,349				7,082,143				7,254,828				7,104,411
Total liabilities and shareholders' equity	$	21,955,463			$	21,406,043			$	22,025,228			$	22,531,823			$	22,488,595			$	22,270,357
Capital Structure:
Senior notes ⁽¹⁾	$	750,000	10	%	$	750,000	10	%	$	750,000	10	%	$	750,000	9	%	$	750,000	9	%	$	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	853,750		11		853,750		11		853,750		11		853,750		11		853,750		11		853,750		11
Common shareholders' equity attributable to PartnerRe	6,056,435		78		6,046,751		78		5,921,387		78		6,226,176		79		6,343,395		79		6,195,160		79
Total Capital	$	7,723,569	100	%	$	7,713,885	100	%	$	7,588,521	100	%	$	7,893,310	100	%	$	8,010,529	100	%	$	7,862,294	100	%


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


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

PartnerRe Ltd.

Condensed Consolidated Statements of Cash Flows

(Expressed in millions of U.S. dollars)

(Unaudited)



	For the three months ended															For the year ended
	March 31,			December 31,			September 30,			June 30,			March 31,			December 31,			December 31,
	2016			2015			2015			2015			2015			2015			2014
Net cash provided by (used in) operating activities:
Underwriting operations	$	(5	)	$	114		$	77		$	30		$	44		$	265		$	497
Investment income	132			131			132			154			137			554			606
Taxes and foreign exchange and other⁽¹⁾	(35		)	(34		)	(358		)	(66		)	(42		)	(500		)	(250		)
Net cash provided by (used in) operating activities	$	92		$	211		$	(149	)	$	118		$	139		$	319		$	853
Net cash provided by (used in) operating activities	$	92		$	211		$	(149	)	$	118		$	139		$	319		$	853
Net cash provided by (used in) investing activities	338			158			(33		)	56			115			295			(250		)
Net cash used in financing activities	(263		)	(43		)	(44		)	(100		)	(123		)	(309		)	(736		)
Effect of foreign exchange rate changes on cash	6			(5		)	(10		)	5			(30		)	(41		)	(50		)
Increase (decrease) in cash and cash equivalents	173			321			(237		)	79			101			264			(183		)
Cash and cash equivalents - beginning of period	1,577			1,256			1,493			1,414			1,313			1,313			1,496
Cash and cash equivalents - end of period	$	1,750		$	1,577		$	1,256		$	1,493		$	1,414		$	1,577		$	1,313

⁽¹⁾Taxes, foreign exchange and other for the three months ended September 30, 2015 and the year ended December 31, 2015 include the amalgamation termination fee and reimbursement of expenses paid to Axis Capital of $315 million, respectively.

PartnerRe Ltd.

Consolidated Statements of Comprehensive Income (Loss)

(Expressed in thousands of U.S. dollars)

(Unaudited)



	For the three months ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2016			2015			2015			2015			2015
Net income (loss) attributable to PartnerRe	$	215,626		$	176,511		$	(229,137	)	$	(88,909	)	$	245,917
Change in currency translation adjustment	21,123			(12,119		)	(39,533		)	8,101			(2,504		)
Change in net unrealized gains or losses on investments, net of tax	(203		)	(216		)	(213		)	(214		)	(217		)
Change in unfunded pension obligation, net of tax	(829		)	(2,121		)	1,163			(891		)	(436		)
Comprehensive income (loss) attributable to PartnerRe	$	235,717		$	162,055		$	(267,720	)	$	(81,913	)	$	242,760



	For the year ended
	December 31,			December 31,
	2015			2014
Net income attributable to PartnerRe	$	104,381		$	1,054,974
Change in currency translation adjustment	(46,055		)	(8,892		)
Change in net unrealized gains or losses on investments, net of tax	(860		)	(886		)
Change in unfunded pension obligation, net of tax	(2,285		)	(12,067		)
Comprehensive income attributable to PartnerRe	$	55,181		$	1,033,129

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)



For the three months ended March 31, 2016
	North America			Global (Non-U.S.) P&C			Global Specialty			Catastrophe			Total Non-life segment			Life and Health segment			Corporate and Other			Total
Gross premiums written	$	494		$	274		$	398		$	170		$	1,336		$	293		$	—		$	1,629
Net premiums written	$	481		$	269		$	333		$	141		$	1,224		277			$	—		$	1,501
Increase in unearned premiums	(129		)	(119		)	(11		)	(93		)	(352		)	(7		)	—			(359		)
Net premiums earned	$	352		$	150		$	322		$	48		$	872		$	270		$	—		$	1,142
Losses and loss expenses and life policy benefits	(199		)	(123		)	(184		)	(3		)	(509		)	(205		)	—			(714		)
Acquisition costs	(107		)	(47		)	(90		)	(1		)	(245		)	(38		)	—			(283		)
Technical result	$	46		$	(20	)	$	48		$	44		$	118		$	27		$	—		$	145
Other income													2			2			1			5
Other expenses													(68		)	(18		)	(67		)	(153		)
Underwriting result													$	52		$	11		n/a			$	(3	)
Net investment income																13			90			103
Allocated underwriting result ⁽¹⁾																$	24		n/a			n/a
Net realized and unrealized investment gains																			167			167
Interest expense																			(12		)	(12		)
Amortization of intangible assets																			(7		)	(7		)
Net foreign exchange gains																			2			2
Income tax expense																			(31		)	(31		)
Interest in losses of equity method investments																			(3		)	(3		)
Net income																			n/a			$	216
Loss ratio ⁽²⁾	56.5		%	82.1		%	57.2		%	7.2		%	58.5		%
Acquisition ratio ⁽³⁾	30.4			31.1			27.8			3.1			28.0
Technical ratio ⁽⁴⁾	86.9		%	113.2		%	85.0		%	10.3		%	86.5		%
Other expense ratio ⁽⁵⁾													7.8
Combined ratio ⁽⁶⁾													94.3		%


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


(6)	Combined ratio is defined as the sum of the technical ratio and the other expense ratio.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)



For the three months ended March 31, 2015
	North America			Global (Non-U.S.) P&C			Global Specialty			Catastrophe			Total Non-life segment			Life and Health segment			Corporate and Other			Total
Gross premiums written	$	473		$	334		$	427		$	191		$	1,425		$	324		$	—		$	1,749
Net premiums written	$	471		$	331		$	362		$	176		$	1,340		$	313		$	—		$	1,653
(Increase) decrease in unearned premiums	(132		)	(157		)	3			(118		)	(404		)	(14		)	—			(418		)
Net premiums earned	$	339		$	174		$	365		$	58		$	936		$	299		$	—		$	1,235
Losses and loss expenses and life policy benefits	(172		)	(119		)	(170		)	(20		)	(481		)	(240		)	—			(721		)
Acquisition costs	(93		)	(52		)	(93		)	(4		)	(242		)	(34		)	—			(276		)
Technical result	$	74		$	3		$	102		$	34		$	213		$	25		$	—		$	238
Other income													—			1			3			4
Other expenses													(52		)	(15		)	(58		)	(125		)
Underwriting result													$	161		$	11		n/a			$	117
Net investment income																14			91			105
Allocated underwriting result ⁽¹⁾																$	25		n/a			n/a
Net realized and unrealized investment gains																			116			116
Interest expense																			(12		)	(12		)
Amortization of intangible assets																			(7		)	(7		)
Net foreign exchange gains																			13			13
Income tax expense																			(80		)	(80		)
Interest in losses of equity method investments																			(4		)	(4		)
Net income																			n/a			$	248
Loss ratio ⁽²⁾	50.7		%	68.4		%	46.7		%	33.7		%	51.4		%
Acquisition ratio ⁽³⁾	27.5			30.1			25.4			7.0			25.9
Technical ratio ⁽⁴⁾	78.2		%	98.5		%	72.1		%	40.7		%	77.3		%
Other expense ratio ⁽⁵⁾													5.5
Combined ratio ⁽⁶⁾													82.8		%

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Non-life segment



	For the three months ended															For the year ended
	March 31,			December 31,			September 30,			June 30,			March 31,			December 31,			December 31,
	2016 ^(A)			2015			2015			2015			2015			2015			2014
Gross premiums written	$	1,336		$	801		$	954		$	1,098		$	1,425		$	4,277		$	4,667
Net premiums written	$	1,224		$	780		$	892		$	1,009		$	1,340		$	4,022		$	4,500
Net premiums earned	$	872		$	1,002		$	1,110		$	1,012		$	936		$	4,060		$	4,387
Losses and loss expenses	(509		)	(551		)	(556		)	(605		)	(481		)	(2,193		)	(2,463		)
Acquisition costs	(245		)	(260		)	(309		)	(253		)	(242		)	(1,064		)	(1,065		)
Technical result	$	118		$	191		$	245		$	154		$	213		$	803		$	859
Other income	2			—			—			—			—			—			3
Other expenses	(68		)	(56		)	(55		)	(55		)	(52		)	(219		)	(252		)
Underwriting result	$	52		$	135		$	190		$	99		$	161		$	584		$	610
Loss ratio ⁽²⁾	58.5		%	54.9		%	50.1		%	59.8		%	51.4		%	54.0		%	56.1		%
Acquisition ratio ⁽³⁾	28.0			26.0			27.8			25.0			25.9			26.2			24.3
Technical ratio ⁽⁴⁾	86.5		%	80.9		%	77.9		%	84.8		%	77.3		%	80.2		%	80.4		%
Other expense ratio ⁽⁵⁾	7.8			5.6			4.9			5.5			5.5			5.4			5.8
Combined ratio ⁽⁶⁾	94.3		%	86.5		%	82.8		%	90.3		%	82.8		%	85.6		%	86.2		%


(A)	Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended March 31, 2016, net premiums written and net premiums earned include foreign exchange impacts of $(54.0) million and $(32.8) million, respectively, compared to the three months ended March 31, 2015.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

North America sub-segment



	For the three months ended															For the year ended
	March 31,			December 31,			September 30,			June 30,			March 31,			December 31,			December 31,
	2016 ^(A)			2015			2015			2015			2015			2015			2014
Gross premiums written	$	494		$	352		$	351		$	427		$	473		$	1,604		$	1,642
Net premiums written	$	481		$	335		$	335		$	401		$	471		$	1,542		$	1,630
Net premiums earned	$	352		$	390		$	408		$	435		$	339		$	1,572		$	1,597
Losses and loss expenses	(199		)	(231		)	(182		)	(296		)	(172		)	(881		)	(1,000		)
Acquisition costs	(107		)	(103		)	(137		)	(111		)	(93		)	(443		)	(401		)
Technical result	$	46		$	56		$	89		$	28		$	74		$	248		$	196
Loss ratio ⁽²⁾	56.5		%	59.2		%	44.7		%	68.1		%	50.7		%	56.0		%	62.6		%
Acquisition ratio ⁽³⁾	30.4			26.4			33.4			25.4			27.5			28.2			25.1
Technical ratio ⁽⁴⁾	86.9		%	85.6		%	78.1		%	93.5		%	78.2		%	84.2		%	87.7		%
Distribution of Net Premiums Written by Major Lines of Business:
Agriculture	35		%	26		%	21		%	31		%	30		%	28		%	28		%
Casualty	34			35			40			38			35			37			37
Credit/Surety	5			7			3			6			7			6			7
Motor	3			6			4			4			4			4			4
Multiline	10			9			6			8			10			8			8
Other	3			6			9			2			1			4			2
Property	10			11			17			11			13			13			14
Total	100		%	100		%	100		%	100		%	100		%	100		%	100		%


(A)	Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended March 31, 2016, net premiums written and net premiums earned include foreign exchange impacts of $(3.6) million and $(2.0) million, respectively, compared to the three months ended March 31, 2015.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

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



	For the three months ended												For the year ended
	March 31,			December 31,			September 30,		June 30,		March 31,		December 31,			December 31,
	2016 ^(A)			2015			2015		2015		2015		2015			2014
Gross premiums written	$	274		$	106		153		143		334		$	735		803
Net premiums written	$	269		$	105		153		137		331		$	726		794
Net premiums earned	$	150		$	174		186		159		174		$	693		768
Losses and loss expenses	(123		)	(111		)	(122	)	(121	)	(119	)	(473		)	(438	)
Acquisition costs	(47		)	(50		)	(50	)	(36	)	(52	)	(189		)	(222	)
Technical result	$	(20	)	$	13		14		2		3		$	31		108
Loss ratio ⁽²⁾	82.1		%	63.7		%	65.8	%	75.9	%	68.4	%	68.3		%	57.0	%
Acquisition ratio ⁽³⁾	31.1			28.8			26.9		23.2		30.1		27.3			28.9
Technical ratio ⁽⁴⁾	113.2		%	92.5		%	92.7	%	99.1	%	98.5	%	95.6		%	85.9	%
Distribution of Net Premiums Written by Major Lines of Business:
Casualty	9		%	9		%	8	%	10	%	10	%	10		%	8	%
Motor	33			50			42		34		36		39			40
Property	58			41			50		56		54		51			52
Total	100		%	100		%	100	%	100	%	100	%	100		%	100	%


(A)	Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended March 31, 2016, net premiums written and net premiums earned include foreign exchange impacts of $(24.3) million and $(12.3) million, respectively, compared to the three months ended March 31, 2015.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Global Specialty sub-segment



	For the three months ended															For the year ended
	March 31,			December 31,			September 30,			June 30,			March 31,			December 31,			December 31,
	2016 ^(A)			2015			2015			2015			2015			2015			2014
Gross premiums written	$	398		$	330		$	393		$	406		$	427		$	1,556		$	1,797
Net premiums written	$	333		$	329		$	391		$	400		$	362		$	1,482		$	1,696
Net premiums earned	$	322		$	368		$	404		$	374		$	365		$	1,511		$	1,638
Losses and loss expenses	(184		)	(193		)	(224		)	(198		)	(170		)	(785		)	(963		)
Acquisition costs	(90		)	(100		)	(112		)	(102		)	(93		)	(407		)	(400		)
Technical result	$	48		$	75		$	68		$	74		$	102		$	319		$	275
Loss ratio ⁽²⁾	57.2		%	52.3		%	55.5		%	53.0		%	46.7		%	52.0		%	58.8		%
Acquisition ratio ⁽³⁾	27.8			27.2			27.7			27.2			25.4			26.9			24.4
Technical ratio ⁽⁴⁾	85.0		%	79.5		%	83.2		%	80.2		%	72.1		%	78.9		%	83.2		%
Distribution of Net Premiums Written by Major Lines of Business:
Agriculture	10		%	5		%	13		%	13		%	15		%	12		%	13		%
Aviation/Space	10			15			9			13			11			12			13
Credit/Surety	20			18			15			13			14			15			16
Energy	5			4			4			3			4			4			4
Engineering	11			12			8			10			11			10			10
Marine	12			12			16			14			11			13			17
Multiline	11			16			12			11			12			13			8
Other	—			—			1			1			2			—			—
Specialty casualty	14			9			9			9			11			10			10
Specialty property	7			9			13			13			9			11			9
Total	100		%	100		%	100		%	100		%	100		%	100		%	100		%


(A)	Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended March 31, 2016, net premiums written and net premiums earned include foreign exchange impacts of $(19.0) million and $(14.8) million, respectively, compared to the three months ended March 31, 2015.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Catastrophe sub-segment



	For the three months ended													For the year ended
	March 31,			December 31,			September 30,		June 30,		March 31,			December 31,			December 31,
	2016 ^(A)			2015			2015		2015		2015			2015			2014
Gross premiums written	$	170		$	13		57		122		$	191		$	382		$	425
Net premiums written	$	141		$	11		13		71		$	176		$	272		$	380
Net premiums earned	$	48		$	70		112		44		$	58		$	284		$	384
Losses and loss expenses	(3		)	(16		)	(28	)	10		(20		)	(54		)	(62		)
Acquisition costs	(1		)	(7		)	(10	)	(4	)	(4		)	(25		)	(42		)
Technical result	$	44		$	47		74		50		$	34		$	205		$	280
Loss ratio ⁽²⁾	7.2		%	23.2		%	24.9	%	(21.5	)%	33.7		%	19.1		%	16.1		%
Acquisition ratio ⁽³⁾	3.1			9.9			8.7		8.2		7.0			8.6			11.0
Technical ratio ⁽⁴⁾	10.3		%	33.1		%	33.6	%	(13.3	)%	40.7		%	27.7		%	27.1		%


(A)	Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended March 31, 2016, net premiums written and net premiums earned include foreign exchange impacts of $(7.1) million and $(3.7) million, respectively, compared to the three months ended March 31, 2015.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Life and Health segment



	For the three months ended															For the year ended
	March 31,			December 31,			September 30,			June 30,			March 31,			December 31,			December 31,
	2016 ^(A)			2015			2015			2015			2015			2015			2014
Gross premiums written	$	293		$	298		$	314		$	334		$	324		$	1,271		$	1,265
Net premiums written	$	277		$	284		$	298		$	313		$	313		$	1,208		$	1,220
Net premiums earned	$	270		$	292		$	302		$	316		$	299		$	1,209		$	1,222
Life policy benefits	(205		)	(216		)	(248		)	(260		)	(240		)	(964		)	(1,000		)
Acquisition costs	(38		)	(51		)	(38		)	(30		)	(34		)	(153		)	(149		)
Technical result	$	27		$	25		$	16		$	26		$	25		$	92		$	73
Other income	2			2			3			—			1			6			8
Other expenses	(18		)	(17		)	(16		)	(16		)	(15		)	(63		)	(68		)
Underwriting result	$	11		$	10		$	3		$	10		$	11		$	35		$	13
Net investment income	13			14			15			16			14			59			60
Allocated underwriting result ⁽¹⁾	$	24		$	24		$	18		$	26		$	25		$	94		$	73
Distribution of Net Premiums Written by Major Lines of Business:
Accident and Health	28		%	30		%	30		%	26		%	27		%	28		%	23		%
Longevity	25			25			25			30			22			25			25
Mortality	47			45			45			44			51			47			52
Total	100		%	100		%	100		%	100		%	100		%	100		%	100		%


(A)	Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended March 31, 2016, net premiums written and net premiums earned include foreign exchange impacts of $(15.4) million and $(14.3) million, respectively, compared to the three months ended March 31, 2015.

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Corporate and Other



	For the three months ended															For the year ended
	March 31,			December 31,			September 30,			June 30,			March 31,			December 31,			December 31,
	2016			2015			2015			2015			2015			2015			2014
Other income (loss)	$	1		$	(1	)	$	—		$	—		$	3		$	3		$	5
Corporate expenses - amalgamation termination fee and reimbursement of expenses	—			—			(315		)	—			—			(315		)	—
Corporate expenses - Axis and Exor related costs^{(1) (4)}	(46		)	(16		)	(7		)	(9		)	(31		)	(63		)	—
Corporate expenses - costs of restructuring⁽²⁾	—			—			—			—			—			—			(11		)
Corporate expenses ⁽³⁾	(21		)	(31		)	(23		)	(50		)	(27		)	(131		)	(119		)
Net investment income	90			94			102			104			91			391			420
Net realized and unrealized investment gains (losses)	167			(24		)	(133		)	(256		)	116			(297		)	372
Interest expense	(12		)	(12		)	(12		)	(12		)	(12		)	(49		)	(49		)
Amortization of intangible assets	(7		)	(6		)	(7		)	(7		)	(7		)	(27		)	(27		)
Net foreign exchange gains (losses)	2			6			(22		)	(6		)	13			(9		)	18
Income tax (expense) benefit	(31		)	3			(17		)	14			(80		)	(80		)	(239		)
Interest in earnings (losses) of equity method investments	(3		)	5			(3		)	8			(4		)	6			15

(1)

For the three months ended March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015, costs related to the Axis and Exor transactions, pre-tax, are $65.8 million, $16.3 million, $6.9 million $9.0 million and $30.9 million, or 4.4%, 1.1%, 0.5%, 0.6% and 2.0% points on the Annualized Operating ROE, respectively. For the year ended December 31, 2015, costs related to the Axis and Exor transactions, pre-tax, are $63.1 million or 1.0% points on the Annualized Operating ROE. For the three months ended June 30, 2015 and for the year ended December 2015, expense related to the earn-out consideration paid to the former shareholders of Presidio Reinsurance Group, Inc. was $25.2 million, or 1.6% and 0.4% points, respectively, on the Annualized Operating ROE. After-tax, for the three months ended March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015, operating earnings attributable to PartnerRe common shareholders adjusted to be before the Axis and Exor transaction related costs and earn-out consideration paid are $104.2 million, $200.2 million, $218.5 million, $146.7 million and $181.4 million, or 6.9%, 13.4%, 14.4%, 9.4% and 11.6% points on the Annualized Operating ROE, respectively. After-tax, for the three months ended March 31, 2016 and March 31, 2015, net income attributable to PartnerRe common shareholders adjusted to be before the Axis and Exor transaction related costs are $261.4 million and $262.6 million, or 17.3% and 16.8% points on the Annualized Net Income ROE, respectively. For the year ended December 31, 2015, operating earnings attributable to PartnerRe common shareholders adjusted to be before the amalgamation related costs and earn-out consideration paid are $746.8 million, or 12.2% points on the annualized operating ROE. See page 26 for the comparable unadjusted annualized operating return on average common shareholders' equity (Annualized Operating ROE).


(2)	The costs of restructuring relate to the Company’s reorganization of its business support and Global Non-life operations. During the year ended December 31, 2014, these costs predominantly comprised of facility exit costs.


(3)	Corporate expenses for the three months ended June 30,2015 and the year ended December 31, 2015 include $25 million, pretax, respectively, related to the negotiated earn-out consideration paid to the former shareholders of Presidio Reinsurance Group, Inc.


(4)	Corporate expenses - Axis and Exor related for the three months ended March 31, 2016, include $11 million of accelerated stock compensation expense. The remaining accelerated stock compensation expense of $20 million is included within other expenses of the Non-life and Life segments.

PartnerRe Ltd.

Distribution of Premiums

(Unaudited)



	For the three months ended										For the year ended
	March 31,		December 31,		September 30,		June 30,		March 31,		December 31,		December 31,
	2016		2015		2015		2015		2015		2015		2014
Distribution of Net Premiums Written by Line of Business:
Non-life
Property and casualty
Casualty	13	%	12	%	12	%	13	%	12	%	12	%	12	%
Motor	7		7		7		5		8		7		7
Multiline and other	6		9		8		6		6		7		5
Property	14		8		11		9		15		11		11
Specialty
Agriculture	13		10		10		13		12		11		12
Aviation/Space	2		5		3		4		2		4		4
Catastrophe	10		1		1		5		11		5		6
Credit/Surety	6		8		6		6		5		6		7
Energy	1		1		2		1		1		1		1
Engineering	2		4		3		3		2		3		3
Marine	3		4		5		4		2		4		5
Specialty casualty	3		3		3		3		3		3		3
Specialty property	2		2		4		4		2		3		3
Life and Health	18		26		25		24		19		23		21
	100	%	100	%	100	%	100	%	100	%	100	%	100	%
Distribution of Gross Premiums Written by Geography:
Asia, Australia and New Zealand	9	%	10	%	14	%	13	%	10	%	12	%	11	%
Europe	40		36		35		33		43		37		40
Latin America, Caribbean and Africa	9		11		11		9		9		10		10
North America	42		43		40		45		38		41		39
	100	%	100	%	100	%	100	%	100	%	100	%	100	%
Distribution of Gross Premiums Written by Production Source:
Broker	72	%	71	%	72	%	73	%	69	%	71	%	69	%
Direct	28		29		28		27		31		29		31
	100	%	100	%	100	%	100	%	100	%	100	%	100	%

PartnerRe Ltd.

Distribution of Premiums

(Unaudited)



	For the three months ended										For the year ended
	March 31,		December 31,		September 30,		June 30,		March 31,		December 31,		December 31,
	2016		2015		2015		2015		2015		2015		2014
Distribution of Gross Premiums Written by Reinsurance Type for the Non-life sub-segment:
North America
Non-Proportional	23	%	7	%	15	%	14	%	25	%	16	%	16	%
Proportional	77		93		85		86		75		84		84
Total	100	%	100	%	100	%	100	%	100	%	100	%	100	%
Global (Non-U.S.) P&C
Non-Proportional	35	%	3	%	10	%	11	%	34	%	20	%	22	%
Proportional	65		97		90		89		66		80		78
Total	100	%	100	%	100	%	100	%	100	%	100	%	100	%
Global Specialty
Non-Proportional	25	%	7	%	12	%	15	%	24	%	15	%	17	%
Proportional	75		93		88		85		76		85		83
Total	100	%	100	%	100	%	100	%	100	%	100	%	100	%
Catastrophe
Non-Proportional	97	%	90	%	96	%	97	%	97	%	97	%	98	%
Proportional	3		10		4		3		3		3		2
Total	100	%	100	%	100	%	100	%	100	%	100	%	100	%
Non-life total
Non-Proportional	35	%	8	%	18	%	23	%	36	%	23	%	25	%
Proportional	65		92		82		77		64		77		75
Total	100	%	100	%	100	%	100	%	100	%	100	%	100	%

PartnerRe Ltd.

Investment Portfolio

(Expressed in millions of U.S. dollars)

(Unaudited)



	March 31,					December 31,					September 30,					June 30,					March 31,					December 31,
	2016					2015					2015					2015					2015					2014
Investments:
Fixed maturities
U.S. government	$	2,690		19	%	$	2,810		20	%	$	2,148		15	%	$	2,282		16	%	$	2,241		15	%	$	2,277		15	%
U.S. government sponsored enterprises	105			1		63			—		48			—		53			—		58			—		39			—
U.S. states, territories and municipalities	780			5		778			5		760			5		682			5		621			4		531			3
Non-U.S. sovereign government, supranational and government related	1,197			9		1,333			9		1,288			9		1,492			10		1,557			10		1,976			13
Corporates	4,978			36		5,086			36		5,366			37		5,510			37		5,495			37		5,604			37
Mortgage/asset-backed securities	3,270			24		3,378			24		3,416			24		3,331			23		3,440			23		3,492			23
Total fixed maturities	13,020			94		13,448			94		13,026			90		13,350			91		13,412			89		13,919			91
Short-term investments	34			—		47			—		101			1		19			—		20			—		25			—
Equities	324			2		444			3		1,004			7		1,007			7		1,320			9		1,057			7
Other invested assets	459			4		399			3		345			2		340			2		287			2		299			2
Total investments	$	13,837		100	%	$	14,338		100	%	$	14,476		100	%	$	14,716		100	%	$	15,039		100	%	$	15,300		100	%
Cash and cash equivalents	1,750					1,577					1,256					1,493					1,414					1,313
Total investments and cash	$	15,587				$	15,915				$	15,732				$	16,209				$	16,453				$	16,613
Maturity distribution:
One year or less	$	431		3	%	$	556		4	%	$	548		4	%	$	239		2	%	$	257		2	%	$	313		2
More than one year through five years	4,521			35		4,609			34		4,152			32		4,703			35		4,694			35		5,169			37
More than five years through ten years	3,224			25		3,342			25		3,433			26		3,642			27		3,669			27		3,719			27
More than ten years	1,608			12		1,610			12		1,578			12		1,454			11		1,372			10		1,251			9
Subtotal	9,784			75		10,117			75		9,711			74		10,038			75		9,992			74		10,452			75
Mortgage/asset-backed securities	3,270			25		3,378			25		3,416			26		3,331			25		3,440			26		3,492			25
Total	$	13,054		100	%	$	13,495		100	%	$	13,127		100	%	$	13,369		100	%	$	13,432		100	%	$	13,944		100	%
Credit quality by market value:
AAA	11		%			11		%			10		%			11		%			10		%			11		%
AA	47					47					44					44					45					46
A	15					15					19					19					19					19
BBB	20					20					18					18					17					16
Below Investment Grade/Unrated	7					7					9					8					9					8
	100		%			100		%			100		%			100		%			100		%			100		%
Expected average duration ⁽¹⁾	4.0		Yrs			3.6		Yrs			3.5		Yrs			3.6		Yrs			3.5		Yrs			3.7		Yrs
Average yield to maturity at market ⁽¹⁾	2.4		%			2.9		%			2.8		%			2.7		%			2.3		%			2.4		%
Average credit quality	A					A					A					A					A					A

(1) Includes funds holding fixed income securities that are classified with equities under generally accepted accounting principles in the United States.

PartnerRe Ltd.

Distribution of Corporate Bonds

(Expressed in thousands of U.S. dollars)

(Unaudited)



March 31, 2016
	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	$	998,313		20.1		%	6.4		%	0.8		%
Consumer noncyclical	735,641			14.8			4.7			0.5
Utilities	612,139			12.3			3.9			0.3
Communications	511,487			10.3			3.3			0.4
Industrials	456,006			9.2			2.9			0.2
Consumer cyclical	428,605			8.6			2.8			0.3
Energy	367,425			7.4			2.4			0.2
Insurance	306,369			6.1			2.0			0.2
Technology	125,441			2.5			0.8			0.2
Basic materials	120,735			2.4			0.8			0.1
Real estate investment trusts	115,782			2.3			0.7			0.1
Catastrophe bonds	100,032			2.0			0.6			0.1
Government guaranteed corporate debt	49,517			1.0			0.3			0.3
Longevity and mortality bonds	47,424			1.0			0.3			0.2
Diversified	2,879			—			—			—
Total Corporate bonds	$	4,977,795		100.0		%	31.9		%
Finance sector - Corporate bonds
Banks	$	628,679		12.6		%	4.1		%
Investment banking and brokerage	251,434			5.1			1.6
Financial services	66,049			1.3			0.4
Commercial and consumer finance	33,769			0.7			0.2
Other	18,382			0.4			0.1
Total finance sector - Corporate bonds	$	998,313		20.1		%	6.4		%
	AAA			AA			A			BBB			Non-Investment Grade/Unrated			Total
Credit quality of finance sector - Corporate bonds
Banks	$	34,244		$	32,381		$	245,313		$	295,933		$	20,808		$	628,679
Investment banking and brokerage	—			—			19,822			230,442			1,170			251,434
Financial services	—			44,400			16,671			4,978			—			66,049
Commercial and consumer finance	—			—			8,313			25,456			—			33,769
Other	—			—			—			18,382			—			18,382
Total finance sector - Corporate bonds	$	34,244		$	76,781		$	290,119		$	575,191		$	21,978		$	998,313
% of total	3		%	8		%	29		%	58		%	2		%	100		%

Concentration of investment risk

The top 10 Corporate bond issuers account for 14.8% of the Company’s total corporate bonds. The single largest issuer accounts for 2.4% of the Company’s total Corporate bonds.

PartnerRe Ltd.

Distribution of Equities

(Expressed in thousands of U.S. dollars)

(Unaudited)



	March 31, 2016
	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
Finance	$	44,201	17.5	%	0.3	%	0.1	%
Consumer noncyclical	41,544		16.5		0.3		—
Insurance	30,033		11.9		0.2		0.1
Technology	28,350		11.3		0.2		—
Industrials	25,390		10.1		0.2		—
Consumer cyclical	25,191		10.0		0.1		—
Communications	23,146		9.2		0.1		—
Basic materials	11,155		4.4		0.1		—
Real estate investment trusts	9,013		3.6		0.1		—
Energy	8,245		3.3		—		—
Utilities	5,644		2.2		—		—
Diversified	37		—		—		—
Total	$	251,949	100.0	%	1.6	%

Mutual funds and exchange traded funds (ETFs)
Funds and ETFs holding equities	70,142				0.5
Funds holding fixed income securities	2,336				—
Total Equities	$	324,427			2.1	%

Concentration of investment risk

The single largest fund in funds and ETFs holding equities is Vanguard Group Inc, which accounts for 19.5% 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 29.3% of the Company’s total equities. Excluding equity securities held in mutual funds and exchange traded funds, the single largest issuer accounts for 6.2% 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 March 31, 2016
	GNMA			GSEs			AAA			AA			A			BBB			Non-Investment Grade/Unrated			Total
U.S. Asset-Backed Securities	$	—		$	—		$	138,452		$	109,078		$	85,376		$	—		$	390,126		$	723,032
U.S. Collaterized Mortgage Obligations	—			1,914			2,474			—			—			—			—			4,388
U.S. Mortgage Backed Securities (MBS)	375,156			1,326,515			—			—			—			—			—			1,701,671
U.S. Commercial Mortgage Backed Securities (CMBS)	5,287			—			5,616			9,657			18,189			126			1,850			40,725
U.S. MBS Interest Only	29,063			84,259			3,194			—			—			—			12,171			128,687
	$	409,506		$	1,412,688		$	149,736		$	118,735		$	103,565		$	126		$	404,147		$	2,598,503
Non-U.S. Asset-Backed Securities	$	—		$	—		$	188,279		$	44,307		$	38,497		$	—		$	38,201		$	309,284
Non-U.S. Collaterized Mortgage Obligations	—			—			166,953			35,846			18,435			1,470			—			222,704
Non-U.S. Commercial Mortgage Backed Securities (CMBS)	—			—			7,190			—			—			—			—			7,190
Non-U.S. Mortgage Backed Securities (MBS)	—			—			132,393			—			—			—			—			132,393
	$	—		$	—		$	494,815		$	80,153		$	56,932		$	1,470		$	38,201		$	671,571
Total mortgage/asset-backed securities	$	409,506		$	1,412,688		$	644,551		$	198,888		$	160,497		$	1,596		$	442,348		$	3,270,074
Corporate Securities	—			105,017			—			—			—			—			—			105,017
Total	$	409,506		$	1,517,705		$	644,551		$	198,888		$	160,497		$	1,596		$	442,348		$	3,375,091
% of total	12		%	45		%	19		%	6		%	5		%	—		%	13		%	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 $439.1 million and a carrying value of $1.6 million at March 31, 2016 within Other Invested Assets.

PartnerRe Ltd.

Funds Held - Directly Managed Portfolio

(Expressed in millions of U.S. dollars)

(Unaudited)



	March 31, 2016					December 31, 2015					September 30, 2015					June 30, 2015					March 31, 2015					December 31, 2014
Investments:
Fixed maturities
U.S. government	$	145		34	%	$	117		29	%	$	111		27	%	$	110		26	%	$	107		25	%	$	105		22	%
U.S. government sponsored enterprises	54			13		53			13		54			13		48			11		49			11		49			10
Non-U.S. sovereign government, supranational and government related	126			29		120			30		124			30		110			26		111			26		128			27
Corporates	91			21		99			25		108			26		137			32		145			33		177			38
Total fixed maturities	416			97	%	389			97		397			96		405			95		412			95		459			97
Short-term investments	—			—		1			—		6			1		7			2		11			2		—			—
Other invested assets	11			3		10			3		12			3		13			3		12			3		14			3
Total investments	$	427		100	%	$	400		100	%	$	415		100	%	$	425		100	%	$	435		100	%	$	473		100	%
Cash and cash equivalents	39					65					64					58					54					42
Total investments and cash	$	466				$	465				$	479				$	483				$	489				$	515
Accrued investment income	4					4					6					5					5					6
Other funds held assets/liabilities	110					71					111					107					99					88
Total funds held - directly managed	$	580				$	540				$	596				$	595				$	593				$	609
Maturity distribution:
One year or less	$	86		21	%	$	73		19	%	$	64		16	%	$	85		21	%	$	71		17	%	$	77		16	%
More than one year through five years	195			47		196			50		210			52		204			49		210			50		241			53
More than five years through ten years	116			28		101			26		108			27		123			30		142			33		141			31
More than ten years	19			4		20			5		21			5		—			—		—			—		—			—
Total	$	416		100	%	$	390		100	%	$	403		100	%	$	412		100	%	$	423		100	%	$	459		100	%
Credit quality by market value:
AAA	11		%			12		%			12		%			11		%			11		%			12		%
AA	68					68					67					66					66					64
A	15					14					14					16					16					17
BBB	6					6					7					7					7					7
	100		%			100		%			100		%			100		%			100		%			100		%
Expected average duration	3.7		Yrs			3.6		Yrs			3.7		Yrs			3.3		Yrs			3.3		Yrs			3.4		Yrs
Average yield to maturity at market	0.8		%			1.2		%			1.0		%			1.1		%			0.8		%			1.0		%
Average credit quality	AA					AA					AA					AA					AA					AA

PartnerRe Ltd.

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

(Expressed in thousands of U.S. dollars)

(Unaudited)



	For the three months ended															For the year ended
	March 31,			December 31,			September 30,			June 30,			March 31,			December 31,			December 31,
	2016			2015			2015			2015			2015			2015			2014
Fixed maturities	$	103,817		$	104,619		$	108,554		$	109,749		$	102,619		$	425,541		$	443,414
Short-term investments, cash and cash equivalents	337			275			288			151			140			854			868
Equities	2,205			5,621			8,818			10,385			5,915			30,739			40,326
Funds held and other	6,417			5,908			7,648			9,227			4,623			27,406			33,192
Funds held - directly managed	2,827			2,927			2,595			3,132			3,022			11,676			13,841
Investment expenses	(12,616		)	(11,442		)	(10,849		)	(12,452		)	(11,688		)	(46,432		)	(51,945		)
Net investment income ⁽¹⁾	$	102,987		$	107,908		$	117,054		$	120,192		$	104,631		$	449,784		$	479,696
Net realized investment (losses) gains on fixed maturities and short-term investments	$	(3,513	)	$	4,936		$	(3,095	)	$	12,597		$	51,858		$	66,296		$	120,734
Net realized investment gains on equities	10,239			64,952			20,440			31,852			20,365			137,609			98,733
Net realized (losses) gains on other invested assets	(32,599		)	13,947			(25,785		)	(13,730		)	(7,749		)	(33,317		)	(20,686		)
Change in net unrealized gains (losses) on other invested assets	3,112			18,901			(12,473		)	16,056			(21,640		)	844			(58,180		)
Change in net unrealized investment gains (losses) on fixed maturities and short-term investments	211,916			(80,454		)	(19,375		)	(253,918		)	76,971			(276,776		)	228,781
Change in net unrealized investment (losses) gains on equities	(27,483		)	(40,153		)	(94,869		)	(45,523		)	(7,016		)	(187,561		)	2,605
Net other realized and unrealized investment (losses) gains	—			(2,233		)	—			3,286			—			1,053			(3,624		)
Net realized and unrealized investment gains (losses) on funds held - directly managed	5,521			(4,269		)	2,140			(6,354		)	2,856			(5,627		)	3,433
Net realized and unrealized investment gains (losses)	$	167,193		$	(24,373	)	$	(133,017	)	$	(255,734	)	$	115,645		$	(297,479	)	$	371,796


(1)	Comparisons of net investment income between periods include the impact of foreign exchange variances. For the three months ended March 31, 2016, net investment income includes foreign exchange impacts of $(2.9) million compared to the three months ended March 31, 2015.

PartnerRe Ltd.

Analysis of Unpaid Losses and Loss Expenses

(Expressed in thousands of U.S. dollars)

(Unaudited)



	As at and for the three months ended															As at and for the year ended
	March 31,			December 31,			September 30,			June 30,			March 31,			December 31,			December 31,
	2016			2015			2015			2015			2015			2015			2014
Reconciliation of beginning and ending liability for unpaid losses and loss expenses:
Gross liability at beginning of period	$	9,064,711		$	9,522,225		$	9,549,398		$	9,401,397		$	9,745,806		$	9,745,806		$	10,646,318
Reinsurance recoverable at beginning of period	(189,234		)	(202,666		)	(202,839		)	(196,981		)	(214,349		)	(214,349		)	(267,384		)
Net liability at beginning of period	8,875,477			9,319,559			9,346,559			9,204,416			9,531,457			9,531,457			10,378,934
Net incurred losses related to:
Current year	693,069			737,594			802,518			778,416			705,176			3,023,704			3,122,981
Prior years	(183,437		)	(187,064		)	(245,936		)	(173,368		)	(224,337		)	(830,705		)	(660,413		)
	509,632			550,530			556,582			605,048			480,839			2,192,999			2,462,568
Change in reserve agreement ⁽¹⁾	28,224			(21,879		)	—			—			13,108			(8,771		)	(25,412		)
Net losses paid	(370,469		)	(898,794		)	(518,556		)	(533,577		)	(471,676		)	(2,422,603		)	(2,798,549		)
Effects of foreign exchange rate changes	95,346			(73,939		)	(65,026		)	70,672			(349,312		)	(417,605		)	(486,084		)
Net liability at end of period	9,138,210			8,875,477			9,319,559			9,346,559			9,204,416			8,875,477			9,531,457
Reinsurance recoverable at end of period	192,877			189,234			202,666			202,839			196,981			189,234			214,349
Gross liability at end of period	$	9,331,087		$	9,064,711		$	9,522,225		$	9,549,398		$	9,401,397		$	9,064,711		$	9,745,806
Breakdown of gross liability at end of period:
Case reserves	$	3,780,317		$	3,716,195		$	3,875,962		$	3,960,022		$	3,975,276		$	3,716,195		$	4,236,038
Additional case reserves	215,238			190,183			194,265			220,023			229,363			190,183			253,890
Incurred but not reported reserves	5,335,532			5,158,333			5,451,998			5,369,353			5,196,758			5,158,333			5,255,878
Gross liability at end of period	$	9,331,087		$	9,064,711		$	9,522,225		$	9,549,398		$	9,401,397		$	9,064,711		$	9,745,806
Breakdown of gross liability at end of period by Non-life sub-segment:
North America	$	3,229,569		$	3,147,079		$	3,437,238		$	3,439,780		$	3,317,662		$	3,147,079		$	3,307,948
Global (Non-U.S.) P&C	2,101,538			2,009,523			2,044,735			2,053,451			2,021,090			2,009,523			2,175,965
Global Specialty	3,691,729			3,575,387			3,685,691			3,676,958			3,620,345			3,575,387			3,769,758
Catastrophe	308,251			332,722			354,561			379,209			442,300			332,722			492,135
Gross liability at end of period	$	9,331,087		$	9,064,711		$	9,522,225		$	9,549,398		$	9,401,397		$	9,064,711		$	9,745,806
Unrecognized time value of non-life reserves⁽²⁾	$	372,792		$	508,269		$	430,596		$	490,714		$	369,059		$	508,269		$	474,258
Non-life paid loss ratio data:
Non-life paid losses to incurred losses ratio	72.7		%	163.3		%	93.2		%	88.2		%	98.1		%	110.5		%	113.6		%
Non-life paid losses to net premiums earned ratio	42.5		%	89.7		%	46.7		%	52.7		%	50.4		%	59.7		%	63.8		%

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

(2) The unrecognized time value of non-life reserves represents the difference between the recorded gross/net liability for unpaid losses and loss expenses and the amount of gross/net liability for unpaid losses and loss expenses that would be recorded if the underlying unpaid losses and loss expenses were discounted. The unrecognized time value, or discount, in the non-life reserves is calculated by applying appropriate risk-free rates by currency and duration to the underlying unpaid losses and loss expenses.

PartnerRe Ltd.

Analysis of Policy Benefits for Life and Annuity Contracts

(Expressed in thousands of U.S. dollars)

(Unaudited)



	As at and for the three months ended															As at and for the year ended
	March 31,			December 31,			September 30,			June 30,			March 31,			December 31,			December 31,
	2016			2015			2015			2015			2015			2015			2014
Reconciliation of beginning and ending policy benefits for life and annuity contracts:
Gross liability at beginning of period	$	2,051,935		$	2,123,028		$	2,087,369		$	1,996,519		$	2,050,107		$	2,050,107		$	1,974,133
Reinsurance recoverable at beginning of period	(42,773		)	(38,744		)	(36,752		)	(29,247		)	(29,495		)	(29,495		)	(7,022		)
Net liability at beginning of period	2,009,162			2,084,284			2,050,617			1,967,272			2,020,612			2,020,612			1,967,111
Net incurred losses related to:
Current year	219,450			229,334			254,401			272,752			254,450			1,010,937			1,019,240
Prior years	(14,814		)	(12,838		)	(6,787		)	(12,883		)	(14,008		)	(46,516		)	(19,038		)
	204,636			216,496			247,614			259,869			240,442			964,421			1,000,202
Net losses paid	(187,881		)	(254,824		)	(182,255		)	(231,702		)	(166,408		)	(835,190		)	(780,905		)
Effects of foreign exchange rate changes	19,902			(36,794		)	(31,692		)	55,178			(127,374		)	(140,681		)	(165,796		)
Net liability at end of period	2,045,819			2,009,162			2,084,284			2,050,617			1,967,272			2,009,162			2,020,612
Reinsurance recoverable at end of period	43,236			42,773			38,744			36,752			29,247			42,773			29,495
Gross liability at end of period	$	2,089,055		$	2,051,935		$	2,123,028		$	2,087,369		$	1,996,519		$	2,051,935		$	2,050,107
Life value in force	$	191,800		$	204,300		$	175,600		$	146,100		$	109,900		$	204,300		$	145,100

PartnerRe Ltd.

Reserve Development

(Expressed in thousands of U.S. dollars)

(Unaudited)



	For the three months ended														For the year ended
	March 31,		December 31,			September 30,			June 30,			March 31,			December 31,		December 31,
	2016		2015			2015			2015			2015			2015		2014
Prior year net favorable (adverse) reserve development:
Non-life segment:
North America	$	80,733	$	55,741		$	102,428		$	43,701		$	82,536		$	284,406	$	250,942
Global (Non-U.S.) P&C	23,282		29,726			38,457			10,224			18,031			96,438		134,394
Global Specialty	68,827		110,940			103,584			110,045			109,675			434,244		257,696
Catastrophe	10,595		(9,343		)	1,467			9,398			14,095			15,617		17,381
Total Non-life net prior year reserve development	$	183,437	$	187,064		$	245,936		$	173,368		$	224,337		$	830,705	$	660,413
Non-life segment:
Net prior year reserve development due to changes in premiums	$	19,323	$	16,233		$	13,759		$	(2,492	)	$	(3,540	)	$	23,960	$	(37,940	)
Net prior year reserve development due to all other factors ⁽²⁾	164,114		170,831			232,177			175,860			227,877			806,745		698,353
Total Non-life net prior year reserve development	$	183,437	$	187,064		$	245,936		$	173,368		$	224,337		$	830,705	$	660,413
Non-life segment:
Short tail lines of business	$	67,056	$	53,967		$	67,357		$	39,295		$	34,749		$	195,367	$	221,171
Medium tail lines of business	$	36,180	$	60,137		$	86,076		$	68,997		$	76,969		$	292,180	$	159,753
Long tail lines of business	$	80,201	$	72,960		$	92,503		$	65,076		$	112,619		$	343,158	$	279,489
Total Non-life net prior year reserve development by tail ⁽³⁾	$	183,437	$	187,064		$	245,936		$	173,368		$	224,337		$	830,705	$	660,413
Life and Health segment:
Net prior year reserve development due to GMDB⁽¹⁾	$	3,536	$	3,354		$	(2,348	)	$	5,626		$	4,977		$	11,610	$	7,163
Net prior year reserve development due to all other factors ⁽²⁾	11,278		9,484			9,135			7,257			9,031			34,906		11,875
Total Life and Health net prior year reserve development	$	14,814	$	12,838		$	6,787		$	12,883		$	14,008		$	46,516	$	19,038


(1)	The guaranteed minimum death benefit (GMDB) reserves are sensitive to volatility in certain referenced global equity markets. At March 31, 2016, a 10% increase in the referenced global equity market would have decreased reserves by approximately $1.5 million, while a 10% decrease in the referenced global equity market would have increased reserves by approximately $2.2 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.


(3)	Short tail lines of business include Agriculture, Proportional Motor, Property, Energy and Catastrophe. Medium tail lines of business include Aviation, Credit/Surety, Marine, Engineering and Multiline. Long tail lines of business include Casualty and Non Proportional Motor.

PartnerRe Ltd.

Natural Catastrophe Probable Maximum Losses (PMLs)

(Expressed in millions of U.S. dollars)

(Unaudited)

Single occurrence estimated net PML exposure ⁽¹⁾



		January 1, 2016				October 1, 2015				July 1, 2015				April 1, 2015				January 1, 2015
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)		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	$	580			$	533			$	533			$	746			$	765
U.S. Northeast	Hurricane	701				708				708				925				963
U.S. Gulf Coast	Hurricane	596				577				577				787				850
Caribbean	Hurricane	180				174				174				177				179
Europe	Windstorm	461				544				544				561				606
Japan	Typhoon	195				195				195				201				145
California	Earthquake	553		$	699	469		$	588	469		$	588	637		$	775	609		$	730
British Columbia	Earthquake	196		358		199		379		199		379		214		390		223		414
Japan	Earthquake	335		383		377		421		377		421		390		437		393		440
Australia	Earthquake	241		325		236		350		236		350		246		357		305		415
New Zealand	Earthquake	133		197		161		205		161		205		165		196		194		229


(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.

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 Company’s natural catastrophe PML information and definitions, see Business - Natural Catastrophe Probable Maximum Loss (PML) in Item 1 of Part 1 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.

PartnerRe Ltd.

Reconciliation of GAAP and non-GAAP measures

(in thousands of U.S. dollars)

(Unaudited)



	For the three months ended															For the year ended
	March 31,			December 31,			September 30,			June 30,			March 31,			December 31,			December 31,
	2016			2015			2015			2015			2015			2015			2014
Reconciliation of GAAP and non-GAAP measures:
Beginning of period common shareholders' equity	6,046,751			5,921,387			6,226,176			6,343,395			6,195,160			6,195,160			5,855,782
End of period common shareholders' equity	6,056,435			6,046,751			5,921,387			6,226,176			6,343,395			6,046,751			6,195,160
Average common shareholders' equity⁽²⁾	6,051,593			5,984,069			6,073,781			6,284,786			6,269,278			6,120,956			6,025,471

Annualized return on average common shareholders' equity calculated with net income attributable to common shareholders	13.3		%	10.9		%	(16.0		)%	(6.6		)%	14.8		%	0.8		%	16.6		%
Less:
Annualized net realized and unrealized investment gains (losses), net of tax, on average common shareholders' equity	9.8			(1.5		)	(8.0		)	(13.9		)	6.4			(4.3		)	4.8
Annualized net foreign exchange gains (losses), net of tax, on average common shareholders' equity	0.6			(0.2		)	(1.0		)	(0.3		)	(1.0		)	(0.7		)	(0.8		)
Annualized net interest in (losses) earnings of equity method investments, net of tax, on average common shareholders' equity	—			0.3			(0.2		)	0.4			(0.2		)	0.1			0.2
Annualized amalgamation termination fee and reimbursement of expenses, on average common shareholders' equity	—			—			(20.7		)	—			—			(5.1		)	—
Withholding tax on inter-company dividends, net of tax, on average common shareholders' equity	—			—			—			—			—			—			(0.1		)
Annualized operating return on average common shareholders' equity	2.9		%	12.3		%	13.9		%	7.2		%	9.6		%	10.8		%	12.5		%
Net income attributable to PartnerRe	$	215,626		$	176,511		$	(229,137	)	$	(88,909	)	$	245,917		$	104,381		$	1,054,974
Less:
Net realized and unrealized investment gains (losses), net of tax	148,060			(22,757		)	(121,764		)	(217,224		)	100,311			(261,434		)	286,252
Net foreign exchange gains (losses), net of tax	9,643			(3,406		)	(15,896		)	(5,094		)	(15,801		)	(40,198		)	(45,883		)
Interest in (losses) earnings of equity method investments, net of tax	(499		)	4,632			(2,244		)	6,731			(3,313		)	5,806			8,577
Amalgamation termination fee and reimbursement of expenses				—			(315,000		)	—			—			(315,000		)	—
Withholding tax on inter-company dividends, net of tax	—			—			—			—			—			—			(6,125		)
Dividends to preferred shareholders	14,184			14,184			14,184			14,184			14,184			56,735			56,735
Operating earnings attributable to PartnerRe common shareholders ⁽¹⁾	$	44,238		$	183,858		$	211,583		$	112,494		$	150,536		$	658,472		$	755,418
(1) See page 13 for the impact of expenses related to the Axis and Exor transactions and the impact of the negotiated earn-out consideration paid to the former shareholders of Presidio Reinsurance Group, Inc on the annualized operating return on average common shareholders' equity.
(2) Average common shareholders' equity is calculated by using the sum of the beginning of period and end of period common shareholders' equity divided by two.

PartnerRe Ltd.

Reconciliation of GAAP and non-GAAP measures

(in thousands of U.S. dollars)

(Unaudited)



	March 31,		December 31,		September 30,		June 30,		March 31,		December 31,
	2016		2015		2015		2015		2015		2014
Reconciliation of GAAP and non-GAAP measures:
Total shareholders' equity	$	6,910,185	$	6,902,951	$	6,777,349	$	7,082,143	$	7,254,828	$	7,104,411
Less:
Preferred shares, aggregate liquidation value	853,750		853,750		853,750		853,750		853,750		853,750
Noncontrolling interests	—		2,450		2,212		2,217		57,683		55,501
Common shareholders' equity attributable to PartnerRe	6,056,435		6,046,751		5,921,387		6,226,176		6,343,395		6,195,160
Less:
Goodwill	456,380		456,380		456,380		456,380		456,380		456,380
Intangible assets, net of tax	86,846		90,326		93,869		98,499		103,276		105,652
Tangible book value	$	5,513,209	$	5,500,045	$	5,371,138	$	5,671,297	$	5,783,739	$	5,633,128

PARTNERRE LTD - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - May 2, 2016

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