PartnerRe Ltd. Reports Third Quarter and Nine Month 2012 Results

  PartnerRe Ltd. Reports Third Quarter and Nine Month 2012 Results

  *Third Quarter Operating Earnings per share of $3.90; Net Income per share
    of $7.53
  *Third Quarter Annualized Operating ROE of 18.4%; Annualized Net Income ROE
    of 35.5%
  *Nine Month Operating Earnings per share of $8.84; Net Income per share of
    $15.19
  *Nine Month Annualized Operating ROE of 13.9%; Annualized Net Income ROE of
    23.9%
  *Book Value of $99.54 per share, up 8.3% for the quarter and up 17.4%
    year-to-date.

Business Wire

PEMBROKE, Bermuda -- October 31, 2012

Regulatory News:

PartnerRe Ltd. (NYSE, Euronext: PRE) today reported net income of $486.7
million, or $7.53 per share for the third quarter of 2012. This net income
includes net after-tax realized and unrealized gains on investments of $221.8
million, or $3.55 per share. Net income for the third quarter of 2011 was
$180.1 million, or $2.43 per share, including net after-tax realized and
unrealized gains on investments of $6.2 million, or $0.09 per share. The
Company recorded operating earnings of $244.4 million, or $3.90 per share, for
the third quarter of 2012. This compares to operating earnings of $164.5
million, or $2.41 per share, for the third quarter of 2011.

Net income for the first nine months of 2012 was $1,023.0 million, or $15.19
per share. This net income includes net after-tax realized and unrealized
gains on investments of $399.4 million, or $6.21 per share. Net loss for the
first nine months of 2011 was $502.6 million, or $7.88 per share, including
net after-tax realized and unrealized losses on investments of $41.3 million,
or $0.61 per share. Operating earnings for the first nine months of 2012 were
$568.1 million, or $8.84 per share. This compares to an operating loss of
$503.9 million, or $7.43 per share, for the first nine months of 2011.

Operating earnings or loss excludes net after-tax realized and unrealized
investment gains and losses, net after-tax foreign exchange gains and losses,
and certain net after-tax interest in results of equity investments, and is
calculated after the payment of preferred dividends. All references to per
share amounts in the text of this press release are on a fully diluted basis.

Commenting on results for the third quarter of 2012, PartnerRe President &
Chief Executive Officer Costas Miranthis said, “We had an excellent third
quarter, generating an operating return on equity of 18%, driven by strong
underwriting results and below average large loss experience. All in for the
first nine months of 2012, our solid underwriting performance resulted in a
Non-life combined ratio of 85.1% and an operating return on equity of 14%.
While net investment income reflects the continued difficult investment
environment, we recorded significant gains in our investment portfolio due to
tightening credit spreads, improved equity markets and lower risk free rates.
As a result we grew our book value per share over 8% in the quarter and 17%
year-to-date.”

Highlights for the third quarter and first nine months of 2012 compared to the
same periods in 2011 include:

Results of operations:

  *For the third quarter, net premiums written of $1.0 billion were down 3%,
    or up 1% on a constant foreign exchange basis, primarily related to
    positive prior year estimated premium adjustments in the North America
    sub-segment and new business in the Global (Non-U.S.) Specialty
    sub-segment. These increases were partially offset by a decrease in the
    Catastrophe sub-segment’s net premiums written due to the reductions in
    certain exposures and differences in the timing of renewals compared to
    the third quarter of 2011. For the first nine months of 2012, net premiums
    written were up 1%, or up 4% on a constant foreign exchange basis, due to
    new business across all sub-segments, except for the Catastrophe
    sub-segment which declined due to reductions in certain exposures.
  *For the third quarter, net premiums earned of $1.2 billion were down 4%,
    or up 1% on a constant foreign exchange basis. On a constant foreign
    exchange basis, net premiums earned increased primarily in the Global
    (Non-U.S.) Specialty sub-segment and the Life segment due to new business.
    These increases were partially offset by decreases in the Catastrophe
    sub-segment as described for net premiums written above. For the first
    nine months of 2012, net premiums earned were down 4%, or 1% on a constant
    foreign exchange basis, primarily due to the impact of cancelled and
    non-renewed business in the Global (Non-U.S.) P&C and Catastrophe
    sub-segments. These decreases were partially offset by new business
    primarily in the Global (Non-U.S.) Specialty sub-segment and the Life
    segment.
  *For the third quarter, the Non-life combined ratio was 80.7% and included
    18.2 points (or $189 million) of net favorable loss development on prior
    accident years. For the first nine months of 2012, the Non-life combined
    ratio was 85.1% and included 17.2 points (or $468 million) of net
    favorable loss development on prior accident years. All Non-life
    sub-segments experienced net favorable development on prior accident years
    during the third quarter and first nine months of 2012, with the Global
    (Non-U.S.) Specialty and North America sub-segments contributing the most
    significantly.
  *For the third quarter and first nine months of 2012, net investment income
    of $135 million and $436 million, respectively, were down 15% and 7%,
    respectively, on a constant foreign exchange basis compared to the
    applicable prior year periods, primarily reflecting lower reinvestment
    rates.
  *For the third quarter and first nine months of 2012, pre-tax net realized
    and unrealized investment gains were $257 million and $488 million,
    respectively, and primarily related to the tightening of credit spreads
    and increases in the market value of equities.
  *For the third quarter, the effective tax rate on operating earnings and
    non-operating earnings was 11% and 13%, respectively. For the first nine
    months of 2012, the effective tax rate on operating earnings and
    non-operating earnings was 13% and 18%, respectively.

Balance sheet and capitalization:

  *Total investments, cash and funds held – directly managed were $18.4
    billion at September 30, 2012, up 3% compared to December 31, 2011.
  *Net Non-life loss and loss expense reserves were $10.5 billion at
    September 30, 2012, down 4% compared to December 31, 2011 primarily due to
    loss payments associated with the 2011 catastrophe events.
  *Net policy benefits for life and annuity contracts were $1.7 billion at
    September 30, 2012, up 4% when compared to December 31, 2011.
  *Total capital was $7.9 billion at September 30, 2012, up 8% from $7.3
    billion at December 31, 2011. The increase was primarily driven by net
    income for the first nine months of 2012, partially offset by share
    repurchases and common and preferred dividend payments.
  *During the third quarter of 2012, the Company repurchased approximately
    1.3 million common shares at a total cost of approximately $93 million.
    During the period October 1, 2012 through October 26, 2012, the Company
    repurchased approximately 153 thousand common shares at a total cost of
    approximately $12 million. During the third quarter of 2012, the Company’s
    Board of Directors approved a share repurchase authorization of up to 6
    million common shares. At October 31, 2012, approximately 5.7 million
    common shares remained under the current repurchase authorization.
  *Total shareholders’ equity was $7.1 billion at September 30, 2012, up 9%
    compared to $6.5 billion at December 31, 2011. The increase was driven by
    the factors described for total capital.
  *Book value per common share was $99.54 on a fully diluted basis at
    September 30, 2012, up 17% compared to $84.82 per diluted share at
    December 31, 2011. The increase was driven by the factors described for
    total capital and the accretive impact of share repurchases.

Segment and sub-segment highlights for the third quarter and first nine months
of 2012 compared to the same periods in 2011 include:

Non-life:

  *For the third quarter, the North America and Global (Non-U.S.) Specialty
    sub-segments reported an increase in net premiums written compared to the
    third quarter of 2011 on a constant foreign exchange basis. These
    increases were partially offset by decreases in net premiums written
    compared to the third quarter of 2011 in the Catastrophe and Global
    (Non-U.S.) P&C sub-segments, on a constant foreign exchange basis. For the
    first nine months of 2012, all Non-life sub-segments, except for the
    Catastrophe sub-segment, reported an increase in net premiums written
    compared to the same period in 2011.
  *For the third quarter, the North America sub-segment’s net premiums
    written were up 8%, or 9% on a constant foreign exchange basis, primarily
    due to a higher level of positive prior year premium estimate adjustments
    in the casualty line and new business in the property line, which were
    partially offset by a lower level of agricultural premiums. This
    sub-segment reported a technical ratio of 99.7%, which included a charge
    of 25.4 points (or $85 million) related to the U.S. drought which was
    partially offset by 19.9 points (or $67 million) of net favorable prior
    year loss development. For the first nine months of 2012, the North
    America sub-segment’s net premiums written were up 6%, or 7% on a constant
    foreign exchange basis, primarily due to the same factors describing the
    third quarter. This sub-segment reported a technical ratio of 91.1%, which
    included a charge of 9.8 points (or $85 million) related to the U.S.
    drought which was partially offset by 19.4 points (or $167 million) of net
    favorable prior year loss development.
  *For the third quarter, the Global (Non-U.S.) P&C sub-segment’s net
    premiums written were down 15%, or 6% on a constant foreign exchange
    basis, due to the impact of cancellations and reduced treaty
    participations in prior periods in the property line of business. This
    sub-segment reported a technical ratio of 88.8%, which included 16.7
    points (or $28 million) of net favorable prior year loss development. For
    the first nine months of 2012, the Global (Non-U.S.) P&C sub-segment’s net
    premiums written were up 3%, or 7% on a constant foreign exchange basis,
    primarily due to new business written in the motor line of business, which
    was partially offset by cancellations and reduced treaty participation in
    the property line of business. This sub-segment reported a technical ratio
    of 90.2%, which included 15.0 points (or $74 million) of net favorable
    prior year loss development.
  *For the third quarter, the Global (Non-U.S.) Specialty sub-segment’s net
    premiums written were down 1%, or up 4% on a constant foreign exchange
    basis primarily due to new business in the marine line of business which
    was partially offset by non-renewals and increased retentions in the
    energy and aviation/space lines of business. This sub-segment reported a
    technical ratio of 66.1%, which included 25.0 points (or $91 million) of
    net favorable prior year loss development. For the first nine months of
    2012, the Global (Non-U.S.) Specialty sub-segment’s net premiums written
    were up 9%, or 12% on a constant foreign exchange basis, primarily due to
    new business in the marine, specialty property, and agriculture lines of
    business. This sub-segment reported a technical ratio of 78.4%, which
    included 19.8 points (or $205 million) of net favorable prior year loss
    development.
  *For the third quarter, the Catastrophe sub-segment’s net premiums written
    were down 23% primarily due to reductions in certain exposures and
    differences in the timing of renewals compared to the third quarter of
    2011, which was partially offset by new business written in non-peak
    catastrophe zones. This sub-segment reported a technical ratio of 32.1%,
    which included 1.7 points (or $3 million) of net favorable prior year loss
    development. For the first nine months of 2012, the Catastrophe
    sub-segment’s net premiums written were down 21%, primarily due to the
    non-renewal of certain business at January 1 and April 1 and a reduction
    in reinstatement premiums, which were partially offset by new business.
    This sub-segment reported a technical ratio of 26.5%, which included 6.5
    points (or $22 million) of net favorable prior year loss development.

Life:

  *For the third quarter, the Life segment’s net premiums written were down
    4%, or up 5% on a constant foreign exchange basis primarily due to new
    longevity business written in the fourth quarter of 2011. This increase in
    net premiums written, on a constant foreign exchange basis, was partially
    offset by decreases in mortality business. For the first nine months of
    2012, the Life segment’s net premiums written were up 1%, or 6% on a
    constant foreign exchange basis, primarily due to the same factors
    describing the third quarter.
  *The Life allocated underwriting result, which includes allocated
    investment income and operating expenses, increased to $15 million in the
    third quarter of 2012 compared to $9 million in the same period of 2011.
    The increase was primarily due to favorable development, which was
    partially offset by a decrease in allocated investment income. The Life
    allocated underwriting result increased to $42 million for the first nine
    months of 2012, compared to $32 million in the same period of 2011. The
    increase was primarily due to favorable development, which was partially
    offset by an increased level of claims activity related to certain
    mortality business.

Corporate and Other:

  *For the third quarter, investment and capital markets activities
    contributed income of $381 million to pre-tax net income, excluding
    investment income allocated to the Life segment. Of this amount, income of
    $119 million was included in pre-tax operating earnings and an additional
    $262 million in net realized and unrealized gains on investments and
    earnings from equity investee companies was included in pre-tax
    non-operating income. For the first nine months of 2012, investment and
    capital markets activities contributed income of $879 million to pre-tax
    net income, excluding investment income allocated to the Life segment. Of
    this amount, income of $382 million was included in pre-tax operating
    earnings and an additional $497 million in net realized and unrealized
    gains on investments and earnings from equity investee companies was
    included in pre-tax non-operating income.

Separately, as announced by the Company today, the Board of Directors declared
a quarterly dividend of $0.62 per common share. The dividend will be payable
on November 30, 2012, to common shareholders of record on November 19, 2012,
with the stock trading ex-dividend commencing November 15, 2012.

The Company has posted its third quarter 2012 financial supplement on its
website www.partnerre.com in the Investor Relations section on the Financial
Reports page under Supplementary Financial Data, which includes a
reconciliation of GAAP and non-GAAP measures.

The Company will hold a dial-in conference call and question and answer
session with investors at 10 a.m. Eastern tomorrow, November 1.  Investors and
analysts are encouraged to call in 15 minutes prior to the commencement of the
call. The conference call can be accessed by dialing 800-344-6698 or, from
outside the United States, by dialing 785-830-7979. The media are invited to
listen to the call live over the Internet on the Investor Relations section of
PartnerRe’s web site, www.partnerre.com. To listen to the webcast, please log
on to the broadcast at least five minutes prior to the start.

                  _________________________________________

Net income/loss per share is defined as net income/loss available to common
shareholders divided by the weighted average number of fully diluted shares
outstanding for the period. Net income/loss available to common shareholders
is defined as net income/loss less preferred dividends. Operating
earnings/loss is defined as net income/loss available to common shareholders
excluding after-tax net realized and unrealized gains/losses on investments,
after-tax net foreign exchange gains/losses and certain after-tax interest in
earnings/losses of equity investments. Operating earnings/loss per share is
defined as operating earnings/loss divided by the weighted average number of
fully diluted shares outstanding for the period.

The Company uses operating earnings, diluted operating earnings per share and
annualized operating return on beginning diluted book value per common and
common share equivalents outstanding  to measure performance, as these
measures focus on the underlying fundamentals of our operations without the
impact of after-tax net realized and unrealized gains/losses on investments,
after-tax net foreign exchange gains/losses, and the after-tax interest in
earnings/losses of equity investments, where the investee’s operations are not
insurance or reinsurance related and where the Company does not control the
investee companies’ activities. The Company uses technical ratio and technical
result as measures of underwriting performance. The technical ratio is defined
as the sum of the loss and acquisition ratios. These metrics exclude other
operating expenses. The Company also uses combined ratio to measure results
for the Non-life segment. The combined ratio is the sum of the technical and
other operating expense ratios. The Company uses allocated underwriting result
as a measure of underwriting performance for its Life operations. This metric
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. The Company uses total capital, which is defined as total
shareholders’ equity, long-term debt, senior notes and CENts, to manage the
capital structure of the Company.

                _____________________________________________

PartnerRe Ltd. is a leading global reinsurer, providing multi-line reinsurance
to insurance companies. The Company, through its wholly owned subsidiaries,
also offers capital markets products that include weather and credit
protection to financial, industrial and service companies. Risks reinsured
include property, casualty, motor, agriculture, aviation/space, catastrophe,
credit/surety, engineering, energy, marine, specialty property, specialty
casualty, multiline and other lines, mortality, longevity and health, and
alternative risk products. For the year ended December 31, 2011, total
revenues were $5.4 billion. At September 30, 2012, total assets were $23.6
billion, total capital was $7.9 billion and total shareholders’ equity was
$7.1 billion.

PartnerRe on the Internet: www.partnerre.com

Forward-looking statements contained in this press release are based on the
Company’s assumptions and expectations concerning future events and financial
performance and are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Such statements are subject to
significant business, economic and competitive risks and uncertainties that
could cause actual results to differ materially from those reflected in the
forward-looking statements. PartnerRe’s forward-looking statements could be
affected by numerous foreseeable and unforeseeable events and developments
such as exposure to catastrophe, or other large property and casualty losses,
credit, interest, currency and other risks associated with the Company’s
investment portfolio, adequacy of reserves, levels and pricing of new and
renewal business achieved, changes in accounting policies, risks associated
with implementing business strategies, and other factors identified in the
Company’s filings with the Securities and Exchange Commission. In light of the
significant uncertainties inherent in the forward-looking information
contained herein, readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the dates on which they are
made. The Company disclaims any obligation to publicly update or revise any
forward-looking information or statements.

PartnerRe Ltd.
Consolidated Statements of Operations and Comprehensive Income (Loss)
(Expressed in thousands of U.S. dollars, except share and per share data)
(Unaudited)
                                                            
                For the        For the three    For the nine     For the nine
                three
                months ended   months ended     months ended     months ended
                September      September 30,    September 30,    September 30,
                30,
                2012           2011             2012             2011
                                                                   
Revenues
Gross
premiums        $ 1,056,076    $ 1,095,326     $ 3,786,802     $ 3,735,091  
written
                                                                   
Net premiums    $ 1,043,240    $ 1,079,557      $ 3,652,571      $ 3,606,444
written
Decrease
(increase)       193,851       214,762        (334,772   )    (140,091   )
unearned
premiums
Net premiums      1,237,091      1,294,319        3,317,799        3,466,353
earned
Net
investment        135,266        163,647          435,669          473,608
income
Net realized
and
unrealized        257,429        26,139           488,296          (7,860     )
investment
gains
(losses)
Other income     2,744         1,434          8,143          4,843      
Total            1,632,530     1,485,539      4,249,907      3,936,944  
revenues
                                                                   
Expenses
Losses and
loss expenses
and life          721,137        881,626          2,003,759        3,303,366
policy
benefits
Acquisition       247,058        262,489          691,388          699,589
costs
Other
operating         94,697         103,822          299,055          321,813
expenses
Interest          12,224         12,216           36,668           36,730
expense
Amortization
of intangible     8,893          9,520            26,679           27,512
assets
Net foreign
exchange         2,015         (10,587    )    (3,165     )    (20,020    )
losses
(gains)
Total            1,086,024     1,259,086      3,054,384      4,368,990  
expenses
                                                                   
Income (loss)
before taxes
and interest
in earnings       546,506        226,453          1,195,523        (432,046   )
(losses) of
equity
investments
Income tax        64,149         41,803           181,458          65,632
expense
Interest in
earnings
(losses) of      4,349         (4,527     )    8,929          (4,970     )
equity
investments
Net income      $ 486,706      $ 180,123       $ 1,022,994     $ (502,648   )
(loss)
                                                                   
Preferred       $ 15,405       $ 14,352        $ 46,216        $ 31,614     
dividends
                                                                   
Operating
earnings
(loss)          $ 244,406      $ 164,498       $ 568,119       $ (503,921   )
available to
common
shareholders
                                                                   
Comprehensive
income          $ 518,871      $ 126,271       $ 1,053,153     $ (514,571   )
(loss), net
of tax
                                                                   
Per share
data:
Earnings
(loss) per
common share:
Basic
operating       $ 3.95         $ 2.43           $ 8.92           $ (7.43      )
earnings
(loss)
Net realized
and
unrealized
investment        3.59           0.09             6.27             (0.61      )
gains
(losses), net
of tax
Net foreign
exchange          0.02           —                0.02             0.24
gains, net of
tax
Interest in
earnings
(losses) of       0.06          (0.07      )    0.13           (0.08      )
equity
investments,
net of tax
Basic net       $ 7.62         $ 2.45          $ 15.34         $ (7.88      )
income (loss)
                                                                   
Weighted
average
number of         61,837,328     67,743,296       63,679,114       67,788,427
common shares
outstanding
                                                                   
Diluted
operating       $ 3.90         $ 2.41           $ 8.84           $ (7.43      )
earnings
(loss)
Net realized
and
unrealized
investment        3.55           0.09             6.21             (0.61      )
gains
(losses), net
of tax
Net foreign
exchange          0.02           —                0.01             0.24
gains, net of
tax
Interest in
earnings
(losses) of       0.06          (0.07      )    0.13           (0.08      )
equity
investments,
net of tax
Diluted net     $ 7.53         $ 2.43          $ 15.19         $ (7.88      )
income (loss)
                                                                   
Weighted
average
number of
common shares     62,606,761     68,181,982       64,284,125       67,788,427
and common
share
equivalents
outstanding
Dividends
declared per    $ 0.62         $ 0.60           $ 1.86           $ 1.75
common share
                                                                              

PartnerRe Ltd.
Consolidated Balance Sheets
(Expressed in thousands of U.S. dollars, except per share and parenthetical
share and per share data)
(Unaudited)
                                                             
                                               September 30,    December 31,
Assets                                         2012             2011
                                                                  
Investments:
Fixed maturities, trading securities, at       $ 14,338,499     $ 13,941,829
fair value
Short-term investments, trading securities,      161,137          42,571
at fair value
Equities, trading securities, at fair value      1,071,528        944,691
Other invested assets                           341,555        358,154    
Total investments                                15,912,719       15,287,245
Funds held – directly managed                    1,188,186        1,268,010
Cash and cash equivalents, at fair value,        1,336,362        1,342,257
which approximates amortized cost
Accrued investment income                        175,066          189,074
Reinsurance balances receivable                  2,329,907        2,059,976
Reinsurance recoverable on paid and unpaid       369,960          397,788
losses
Funds held by reinsured companies                805,178          796,290
Deferred acquisition costs                       602,660          547,202
Deposit assets                                   256,587          241,513
Net tax assets                                   34,547           66,574
Goodwill                                         455,533          455,533
Intangible assets                                107,188          133,867
Other assets                                    66,237         70,044     
Total assets                                   $ 23,640,130    $ 22,855,373 
                                                                  
Liabilities
Unpaid losses and loss expenses                $ 10,761,302     $ 11,273,091
Policy benefits for life and annuity             1,703,147        1,645,662
contracts
Unearned premiums                                1,810,881        1,448,841
Other reinsurance balances payable               504,820          443,873
Deposit liabilities                              255,986          249,382
Net tax liabilities                              356,851          297,153
Accounts payable, accrued expenses and other     347,152          208,840
Debt related to senior notes                     750,000          750,000
Debt related to capital efficient notes         70,989         70,989     
Total liabilities                               16,561,128     16,387,831 
                                                                  
Shareholders’ Equity
Common shares (par value $1.00; issued:
2012, 85,204,067 shares; 2011, 84,766,693        85,204           84,767
shares)
Preferred shares (par value $1.00; issued
and outstanding: 2012 and 2011, 35,750,000       35,750           35,750
shares; aggregate liquidation value: 2012
and 2011, $893,750)
Additional paid-in capital                       3,840,641        3,803,796
Accumulated other comprehensive income
(loss):
Currency translation adjustment                  35,309           4,267
Other accumulated comprehensive loss             (17,794    )     (16,911    )
Retained earnings                                4,893,729        4,035,103
Common shares held in treasury, at cost
(2012, 23,837,410 shares; 2011, 19,444,365       (1,793,837 )    (1,479,230 )
shares)
Total shareholders’ equity                       7,079,002        6,467,542
                                                               
Total liabilities and shareholders’ equity     $ 23,640,130    $ 22,855,373 
                                                                  
Shareholders’ Equity Per Common Share
(excluding preferred shares: 2012 and 2011,    $ 100.79        $ 85.33      
$893,750)
                                                                  
Diluted Book Value Per Common Share and
Common Share Equivalents Outstanding           $ 99.54         $ 84.82      
(assuming exercise of all share-based
awards)
                                                                  
Number of Common Share and Common Share         62,136,090     65,715,708 
Equivalents Outstanding
                                                                  

PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
                                                                                                
For the three months ended September 30, 2012
                                                                                                           
                            Global       Global                     Total
               North        (Non-U.S.)   (Non-U.S.)                 Non-life      Life       Corporate
               America      P&C          Specialty    Catastrophe   segment       segment    and Other   Total
                                                                                                           
Gross
premiums       $ 311        $ 123        $ 360        $  75         $ 869         $ 187      $  —        $ 1,056
written
                                                                                                           
Net premiums   $ 311        $ 122        $ 354        $  69         $ 856         $ 187      $  —        $ 1,043
written
Decrease in
unearned        24         50         9          99         182         8         4        194   
premiums
Net premiums   $ 335        $ 172        $ 363        $  168        $ 1,038       $ 195      $  4        $ 1,237
earned
Losses and
loss
expenses and     (251 )       (110 )       (161 )        (39  )       (561  )       (157 )      (3   )     (721  )
life policy
benefits
Acquisition     (83  )      (42  )      (79  )      (15  )      (219  )      (27  )     (1   )    (247  )
costs
Technical      $ 1          $ 20         $ 123        $  114        $ 258         $ 11       $  —        $ 269
result
                                                                                                           
Other income                                                          1             1           1          3
Other
operating                                                            (58   )      (12  )     (25  )    (95   )
expenses
Underwriting                                                        $ 201         $ —           n/a      $ 177
result
                                                                                                           
Net
investment                                                                         15        120      135   
income
Allocated
underwriting                                                                      $ 15          n/a        n/a
result ^ (1)
                                                                                                           
Net realized
and
unrealized                                                                                      257        257
investment
gains
Interest                                                                                        (12  )     (12   )
expense
Amortization
of                                                                                              (9   )     (9    )
intangible
assets
Net foreign
exchange                                                                                        (2   )     (2    )
losses
Income tax                                                                                      (64  )     (64   )
expense
Interest in
earnings of                                                                                    5        5     
equity
investments
Net income                                                                                     n/a     $ 487   
                                                                                                           
Loss ratio ^     74.9   %     63.9   %     44.4   %      23.3   %     54.1    %
(2)
Acquisition      24.8        24.9        21.7         8.8         21.1  
ratio ^ (3)
Technical        99.7   %     88.8   %     66.1   %      32.1   %     75.2    %
ratio ^ (4)
Other
operating                                                             5.5   
expense
ratio ^ (5)
Combined                                                              80.7   %
ratio ^ (6)
                                                                                                           
For the three months ended September 30, 2011
                                                                                                           
                            Global       Global                     Total
               North        (Non-U.S.)   (Non-U.S.)                 Non-life      Life       Corporate
               America      P&C          Specialty    Catastrophe   segment       segment    and Other   Total
                                                                                                           
Gross
premiums       $ 288        $ 144        $ 368        $  95         $ 895         $ 194      $  6        $ 1,095
written
                                                                                                           
Net premiums   $ 287        $ 144        $ 360        $  89         $ 880         $ 194      $  6        $ 1,080
written
Decrease in
unearned        42         49         2          110        203         9         2        214   
premiums
Net premiums   $ 329        $ 193        $ 362        $  199        $ 1,083       $ 203      $  8        $ 1,294
earned
Losses and
loss
expenses and     (192 )       (102 )       (247 )        (169 )       (710  )       (168 )      (4   )     (882  )
life policy
benefits
Acquisition     (80  )      (52  )      (82  )      (15  )      (229  )      (33  )     —        (262  )
costs
Technical      $ 57         $ 39         $ 33         $  15         $ 144         $ 2        $  4        $ 150
result
                                                                                                           
Other income                                                          1             —           —          1
Other
operating                                                            (69   )      (12  )     (23  )    (104  )
expenses
Underwriting                                                        $ 76          $ (10  )      n/a      $ 47
result
                                                                                                           
Net
investment                                                                         19        145      164   
income
Allocated
underwriting                                                                      $ 9           n/a        n/a
result ^ (1)
                                                                                                           
Net realized
and
unrealized                                                                                      26         26
investment
gains
Interest                                                                                        (12  )     (12   )
expense
Amortization
of                                                                                              (9   )     (9    )
intangible
assets
Net foreign
exchange                                                                                        11         11
gains
Income tax                                                                                      (42  )     (42   )
expense
Interest in
losses of                                                                                      (5   )    (5    )
equity
investments
Net income                                                                                     n/a     $ 180   
                                                                                                           
Loss ratio ^     58.4   %     52.9   %     68.3   %      85.0   %     65.6    %
(2)
Acquisition      24.3        26.9        22.7         7.4         21.1  
ratio ^ (3)
Technical        82.7   %     79.8   %     91.0   %      92.4   %     86.7    %
ratio ^ (4)
Other
operating                                                             6.4   
expense
ratio ^ (5)
Combined                                                              93.1   %
ratio ^ (6)
                                                                                                           

      Allocated underwriting result is defined as net premiums earned, other
(1)  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 nine months ended September 30, 2012
                                                                                                                 
                            Global       Global                       Total
               North        (Non-U.S.)   (Non-U.S.)                   Non-life       Life         Corporate
               America      P&C          Specialty     Catastrophe    segment        segment      and Other    Total
                                                                                                                 
Gross
premiums       $ 924        $ 600        $ 1,178       $ 475          $ 3,177        $ 604        $ 6          $ 3,787
written
                                                                                                                 
Net premiums   $ 922        $ 596        $ 1,098       $ 429          $ 3,045        $ 601        $ 6          $ 3,652
written
Increase in
unearned        (59  )     (100 )     (64   )     (98    )     (321   )     (12  )     (1   )     (334   )
premiums
Net premiums   $ 863        $ 496        $ 1,034       $ 331          $ 2,724        $ 589        $ 5          $ 3,318
earned
Losses and
loss
expenses and     (568 )       (327 )       (569  )       (58    )       (1,522 )       (479 )       (3   )       (2,004 )
life policy
benefits
Acquisition     (218 )     (120 )     (241  )     (30    )     (609   )     (82  )     —         (691   )
costs
Technical      $ 77         $ 49         $ 224         $ 243          $ 593          $ 28         $ 2          $ 623
result
                                                                                                                 
Other income                                                            2              3            3            8
Other
operating                                                              (187   )     (38  )     (74  )     (299   )
expenses
Underwriting                                                          $ 408          $ (7   )       n/a        $ 332
result
                                                                                                                 
Net
investment                                                                            49        387       436    
income
Allocated
underwriting                                                                         $ 42           n/a          n/a
result ^ (1)
                                                                                                                 
Net realized
and
unrealized                                                                                          488          488
investment
gains
Interest                                                                                            (37  )       (37    )
expense
Amortization
of                                                                                                  (27  )       (27    )
intangible
assets
Net foreign
exchange                                                                                            3            3
gains
Income tax                                                                                          (181 )       (181   )
expense
Interest in
earnings of                                                                                        9         9      
equity
investments
Net income                                                                                         n/a      $ 1,023  
                                                                                                                 
Loss ratio ^     65.9   %     65.9   %     55.1    %     17.4     %     55.9     %
(2)
Acquisition      25.2        24.3        23.3         9.1           22.3   
ratio ^ (3)
Technical        91.1   %     90.2   %     78.4    %     26.5     %     78.2     %
ratio ^ (4)
Other
operating                                                               6.9    
expense
ratio ^ (5)
Combined                                                                85.1    %
ratio ^ (6)
                                                                                                                 
For the nine months ended September 30, 2011
                                                                                                                 
                            Global       Global                       Total
               North        (Non-U.S.)   (Non-U.S.)                   Non-life       Life         Corporate
               America      P&C          Specialty     Catastrophe    segment        segment      and Other    Total
                                                                                                                 
Gross
premiums       $ 868        $ 585        $ 1,092       $ 581          $ 3,126        $ 597        $ 12         $ 3,735
written
                                                                                                                 
Net premiums   $ 868        $ 581        $ 1,007       $ 542          $ 2,998        $ 596        $ 12         $ 3,606
written
(Increase)
decrease in      (18  )     (14  )     14         (110   )     (128   )     (8   )     (4   )     (140   )
unearned
premiums
Net premiums   $ 850        $ 567        $ 1,021       $ 432          $ 2,870        $ 588        $ 8          $ 3,466
earned
Losses and
loss
expenses and     (556 )       (379 )       (675  )       (1,209 )       (2,819 )       (479 )       (5   )       (3,303 )
life policy
benefits
Acquisition     (210 )     (145 )     (240  )     (16    )     (611   )     (89  )     —         (700   )
costs
Technical      $ 84         $ 43         $ 106         $ (793   )     $ (560   )     $ 20         $ 3          $ (537   )
result
                                                                                                                 
Other income                                                            4              —            1            5
Other
operating                                                              (206   )     (38  )     (78  )     (322   )
expenses
Underwriting                                                          $ (762   )     $ (18  )       n/a        $ (854   )
result
                                                                                                                 
Net
investment                                                                            50        424       474    
income
Allocated
underwriting                                                                         $ 32           n/a          n/a
result ^ (1)
                                                                                                                 
Net realized
and
unrealized                                                                                          (8   )       (8     )
investment
losses
Interest                                                                                            (37  )       (37    )
expense
Amortization
of                                                                                                  (27  )       (27    )
intangible
assets
Net foreign
exchange                                                                                            20           20
gains
Income tax                                                                                          (66  )       (66    )
expense
Interest in
losses of                                                                                          (5   )     (5     )
equity
investments
Net loss                                                                                           n/a      $ (503   )
                                                                                                                 
Loss ratio ^     65.5   %     66.8   %     66.1    %     279.9    %     98.2     %
(2)
Acquisition      24.6        25.7        23.5         3.5           21.3   
ratio ^ (3)
Technical        90.1   %     92.5   %     89.6    %     283.4    %     119.5    %
ratio ^ (4)
Other
operating                                                               7.2    
expense
ratio ^ (5)
Combined                                                                126.7   %
ratio ^ (6)
                                                                                                                 

Contact:

PartnerRe Ltd.
(441) 292-0888
Investor Contact: Robin Sidders
Media Contact: Celia Powell
or
Sard Verbinnen & Co
(212) 687-8080
Drew Brown/Daniel Goldstein
 
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