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PartnerRe Ltd. Reports Third Quarter and Nine Month 2013 Results



  PartnerRe Ltd. Reports Third Quarter and Nine Month 2013 Results

  * Third Quarter Operating Earnings per share of $5.70; Net Income per share
    of $5.84
  * Third Quarter Annualized Operating ROE of 22.6%; Annualized Net Income ROE
    of 23.2%
  * Nine Month Operating Earnings per share of $9.86; Net Income per share of
    $5.93
  * Nine Month Annualized Operating ROE of 13.0%; Annualized Net Income ROE of
    7.8%
  * Book Value of $105.53 per share, up 5.9% for the quarter and up 4.7%
    year-to-date
  * Tangible Book Value of $94.86 per share, up 6.5% for the quarter and up
    4.4% year-to-date

Business Wire

PEMBROKE, Bermuda -- October 28, 2013

PartnerRe Ltd. (NYSE:PRE) today reported a net income of $333.4 million, or
$5.84 per share for the third quarter of 2013. This includes net after-tax
realized and unrealized losses on investments of $1.3 million, or $0.03 per
share. Net income for the third quarter of 2012 was $486.7 million, or $7.53
per share, including net after-tax realized and unrealized gains on
investments of $221.8 million, or $3.55 per share. The Company reported
operating earnings of $311.2 million, or a quarterly record for PartnerRe of
$5.70 per share, for the third quarter of 2013. This compares to operating
earnings of $244.4 million, or $3.90 per share, for the third quarter of 2012.

Net income for the first nine months of 2013 was $392.2 million, or $5.93 per
share. This includes net after-tax realized and unrealized losses on
investments of $219.0 million, or $3.83 per share. Net income for the first
nine months of 2012 was $1,023.0 million, or $15.19 per share, including net
after-tax realized and unrealized gains on investments of $399.4 million, or
$6.21 per share. Operating earnings for the first nine months of 2013 were
$564.3 million, or $9.86 per share. This compares to operating earnings of
$568.1 million, or $8.84 per share, for the first nine months of 2012.

Operating earnings or loss excludes certain net after-tax realized and
unrealized investment gains and losses, net after-tax foreign exchange gains
and losses, certain net after-tax interest in results of equity investments
and the loss on redemption of preferred shares, 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, PartnerRe President & Chief Executive Officer Costas
Miranthis said, “We had very strong third quarter results reflecting a low
level of large loss activity and strong core performance for most of our
businesses, culminating in a 74.9% combined ratio and a 22.6% operating return
on equity. For the year to date, we have recorded a 13% operating return on
equity and an increase of 4.7% in book value per share. I would like to thank
our teams for their exceptional focus and determination over the last few
years, without which we would not be enjoying such excellent results.”

“We are encouraged by these strong results in the current economic reinsurance
pricing environment,” Mr. Miranthis added. “Against a backdrop of improved
underlying primary pricing, reinsurance remains a competitive market. The
market dynamics are similar to what we experienced in prior quarters but our
teams have demonstrated that we can leverage the strength of our worldwide
franchise to identify attractive business opportunities in all lines, and
particularly in diversifying lines, where we have had the most success.”

Highlights for the third quarter and first nine months of 2013 compared to the
same periods in 2012 include:

Results of operations:

  * For the third quarter, net premiums written of $1.3 billion were up 21%.
    The increase was reported across all Non-life sub-segments and the Life
    and Health segment. The increase was primarily related to new business in
    the North America sub-segment and, to a lesser extent, the inclusion of
    Presidio’s business in the Life and Health segment and new business in the
    Global (Non-U.S.) P&C and Global Specialty sub-segments. For the first
    nine months of 2013, net premiums written of $4.2 billion were up 15%. The
    increase was reported across all Non-life sub-segments and the Life and
    Health segment primarily due to the same factors discussed above for the
    third quarter.
  * For the third quarter, net premiums earned of $1.4 billion were up 15%, or
    14% on a constant foreign exchange basis. The increase was primarily
    driven by the same factors discussed above for net premiums written for
    the third quarter. For the first nine months of 2013, net premiums earned
    of $3.8 billion were up 14%, primarily due to the same factors discussed
    above for net premiums written for the third quarter.
  * For the third quarter, the Non-life combined ratio was 74.9%. The combined
    ratio included 4.7 points (or $55 million, net of reinstatement premiums
    and retrocession) related to the German hailstorms in July 2013, and
    benefited from favorable prior year development of 20.3 points (or $238
    million). All Non-life sub-segments experienced net favorable development
    on prior accident years during the third quarter of 2013. For the first
    nine months of 2013, the Non-life combined ratio was 84.2%. The combined
    ratio included 5.2 points (or $156 million, net of reinstatement premiums
    and retrocession) related to the German hailstorms, the European floods
    and the Alberta floods (the “2013 Catastrophe events”), and benefited from
    favorable prior year development of 17.9 points (or $548 million). All
    Non-life sub-segments experienced net favorable development on prior
    accident years during the first nine months of 2013.
  * For the third quarter and the first nine months of 2013, other operating
    expenses included a pre-tax charge of $2 million and $46 million,
    respectively, related to the restructuring of the Company’s business
    support and Global Non-life operations, which was announced in April 2013.
    After-tax, these charges decreased the third quarter and the first nine
    months annualized operating ROE by 0.1% and 0.7%, respectively.
  * For the third quarter and the first nine months of 2013, net investment
    income of $122 million and $370 million, respectively, was down 12% and
    16%, respectively, on a constant foreign exchange basis. The decrease in
    net investment income primarily reflects lower reinvestment rates.
  * For the third quarter, pre-tax net realized and unrealized investment
    gains were $16 million, which after-tax are losses of $1.3 million,
    primarily reflecting improvements in equity markets. For the first nine
    months of 2013, pre-tax net realized and unrealized investment losses were
    $260 million, which primarily reflects increases in risk-free rates.
  * For the third quarter, the effective tax rate on operating earnings and
    non-operating earnings was 15% and 61%, respectively. For the first nine
    months of 2013, the effective tax rate on operating earnings and
    non-operating earnings was 12% and 17%, respectively.

Balance sheet and capitalization:

  * Total investments, cash and funds held – directly managed were $17.5
    billion at September 30, 2013, down 3% compared to December 31, 2012.
  * Net Non-life loss and loss expense reserves were $10.3 billion at
    September 30, 2013, down 1% compared to December 31, 2012 primarily due to
    loss payments.
  * Net policy benefits for life and annuity contracts were $1.9 billion at
    September 30, 2013, up 6% compared to December 31, 2012.
  * Total capital was $7.4 billion at September 30, 2013, down 5% compared to
    December 31, 2012 primarily driven by share repurchases, the redemption of
    Series C preferred shares and common and preferred dividend payments,
    which were partially offset by net income for the first nine months of
    2013 and the issuance of Series F preferred shares.
  * The Company repurchased approximately 1.2 million common shares at a total
    cost of approximately $103 million during the third quarter of 2013. The
    average repurchase price represents a 10.7% discount to June 30, 2013
    diluted book value per share. Since October 1, 2013, the Company has
    repurchased 90 thousand common shares at a total cost of approximately $8
    million. At October 28, 2013, approximately 5.9 million common shares
    remained under the current repurchase authorization.
  * Total shareholders’ equity attributable to PartnerRe was $6.6 billion at
    September 30, 2013, down 5% compared to December 31, 2012. The decline was
    driven by the factors described above for total capital.
  * Book value per common share was $105.53 at September 30, 2013, a record
    high for PartnerRe, up 4.7% compared to $100.84 at December 31, 2012.
    Tangible book value per common share was $94.86 at September 30, 2013, up
    4.4% compared to $90.86 at December 31, 2012. The increases were primarily
    driven by net income and the accretive impact of share repurchases, which
    were partially offset by common and preferred dividend payments.

Segment and sub-segment highlights for the third quarter and the first nine
months of 2013 compared to the same period in 2012 include:

Non-life:

  * For the third quarter, the Non-life segment’s net premiums written were up
    20%. The increase was reported across all Non-life sub-segments and was
    primarily related to the North America sub-segment and, to a lesser
    extent, the Global (Non-U.S.) P&C and the Global Specialty sub-segments.
    For the first nine months of 2013, net premiums written were up 15%. The
    increase was reported across all Non-life sub-segments due to the same
    factors discussed above for the third quarter.
  * For the third quarter, the North America sub-segment’s net premiums
    written were up 31% primarily driven by new business in the agriculture
    line of business and, to a lesser extent, new business in the structured
    property and casualty lines of business. This sub-segment reported a
    technical ratio of 70.2%, which included 22.2 points (or $94 million) of
    net favorable prior year loss development. For the first nine months of
    2013, the North America sub-segment’s net premiums written were up 32% due
    to the same factors discussed above for the third quarter. This
    sub-segment reported a technical ratio of 83.8%, which included 13.9
    points (or $155 million) of net favorable prior year loss development and
    1.4 points (or $16 million) of losses related to the Alberta floods.
  * For the third quarter, the Global (Non-U.S.) P&C sub-segment’s net
    premiums written were up 28%, or 29% on a constant foreign exchange basis,
    primarily due to new business in the motor line of business and upward
    premium adjustments in the property line of business. This sub-segment
    reported a technical ratio of 71.7%, which included 19.2 points (or $37
    million) of net favorable prior year loss development and 1.5 points (or
    $3 million) of losses related to the German hailstorms. For the first nine
    months of 2013, the Global (Non-U.S.) P&C sub-segment’s net premiums
    written were up 15% primarily due to new motor business. This sub-segment
    reported a technical ratio of 74.9%, which included 24.8 points (or $131
    million) of net favorable prior year loss development and 2.6 points (or
    $14 million) of losses related to the German hailstorms and the European
    floods.
  * For the third quarter, the Global Specialty sub-segment’s net premiums
    written were up 10%, or 8% on a constant foreign exchange basis, primarily
    due to new business in the specialty casualty and multi-line lines of
    business, and were partially offset by cancellations in the marine line of
    business. This sub-segment reported a technical ratio of 83.8%, which
    included 20.4 points (or $78 million) of net favorable prior year loss
    development. For the first nine months of 2013, the Global Specialty
    sub-segment’s net premiums written were up 6%, or 5% on a constant foreign
    exchange basis, primarily due to new business in the multi-line and
    agriculture lines of business. This sub-segment reported a technical ratio
    of 87.5%, which included 15.2 points (or $166 million) of net favorable
    prior year loss development and 1.9 points (or $21 million) of losses
    related to the European floods and the Alberta floods.
  * For the third quarter, the Catastrophe sub-segment’s net premiums written
    were up 6%, or 10% on a constant foreign exchange basis. The increase in
    net premiums written was primarily due to new business. This sub-segment
    reported a technical ratio of 33.5%, which included 16.8 points (or $29
    million) of net favorable prior year loss development and 30.7 points (or
    $52 million) of losses, net of reinstatement premiums and retrocession,
    related to the German hailstorms. For the first nine months of 2013, the
    Catastrophe sub-segment’s net premiums written were up 1%, or up 3% on a
    constant foreign exchange basis. This sub-segment reported a technical
    ratio of 33.9%, which included 28.4 points (or $96 million) of net
    favorable prior year loss development and 35.1 points (or $105 million) of
    losses, net of reinstatement premiums and retrocession, related to the
    2013 Catastrophe events.

Life and Health:

  * For the third quarter, the Life and Health segment’s net premiums written
    were up 25%, or 23% on a constant foreign exchange basis, primarily due to
    the inclusion of Presidio’s net premiums written. For the first nine
    months of 2013, the Life and Health segment’s net premiums written were up
    19%, or 18% on a constant foreign exchange basis, primarily due to the
    same factor describing the third quarter.
  * For the third quarter, the Life and Health segment’s allocated
    underwriting result, which includes allocated investment income and
    operating expenses, increased to $25 million compared to $15 million in
    the same period of 2012. The increase was primarily due to a higher level
    of net favorable prior year loss development. For the first nine months of
    2013, the Life and Health segment’s allocated underwriting result
    increased to $60 million compared to $42 million in the same period of
    2012 primarily due to the same factor describing the third quarter.

Corporate and Other:

  * For the third quarter, investment and capital markets activities
    contributed income of $133 million to pre-tax net income, excluding
    investment income allocated to the Life and Health segment. Of this
    amount, income of $111 million was included in pre-tax operating earnings
    and income of $22 million related to net realized and unrealized gains on
    investments and earnings from equity investee companies was included in
    pre-tax non-operating earnings. For the first nine months of 2013,
    investment and capital markets activities contributed income of $78
    million to pre-tax net income, excluding investment income allocated to
    the Life and Health segment. Of this amount, income of $327 million was
    included in pre-tax operating earnings and losses of $249 million related
    to net realized and unrealized losses on investments and earnings from
    equity investee companies was included in pre-tax non-operating earnings.
  * For the third quarter and first nine months of 2013, other operating
    expenses included a pre-tax charge of $2 million and $46 million,
    respectively, related to the restructuring of the Company’s business
    support and Global Non-life operations, which was announced in April 2013.

Separately, as announced by the Company earlier today, the Board of Directors
declared a quarterly dividend of $0.64 per common share. The dividend will be
payable on November 29, 2013, to common shareholders of record on November 18,
2013.

The Company has posted its third quarter 2013 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, October 29.  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 888-277-7102 or, from
outside the United States, by dialing 913-312-1388. 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 attributable to
PartnerRe common shareholders divided by the weighted average number of fully
diluted shares outstanding for the period. Net income/loss attributable to
PartnerRe common shareholders is defined as net income/loss attributable to
PartnerRe less preferred dividends and loss on redemption of preferred shares.
Operating earnings/loss is defined as net income/loss available to PartnerRe
common shareholders excluding certain after-tax net realized and unrealized
gains/losses on investments, after-tax net foreign exchange gains/losses, the
loss on redemption of preferred shares 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
(except where the company has made a strategic investment in an insurance or
reinsurance related investee), after-tax net foreign exchange gains/losses,
and the after-tax interest in earnings/losses of equity investments (except
where the company has made a strategic investment in an insurance or
reinsurance related investee and where the Company does not control the
investees 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 and Health 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 attributable to PartnerRe, long-term debt, senior notes
and CENts, to manage the capital structure of the Company. The Company
calculates Tangible Book Value using common shareholders’ equity attributable
to PartnerRe less goodwill and intangible assets, net of tax. The Company
calculates Diluted Tangible Book Value per Common Share using Tangible Book
Value divided by the weighted average number of PartnerRe common shares and
common share equivalents outstanding. The Company uses these measures as the
basis for its prime measure of long-term financial performance (annualized
growth in Diluted Tangible Book Value per Common Share plus dividends).

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 in its Non-life operations, mortality,
longevity and accident and health in its Life and Health operations, and
alternative risk products. For the year ended December 31, 2012, total
revenues were $5.6 billion. At September 30, 2013, total assets were $23.1
billion, total capital was $7.4 billion and total shareholders’ equity
attributable to PartnerRe was $6.6 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
(Expressed in thousands of U.S. dollars, except share and per share data)
(Unaudited)
                                                                              
                    For the three      For the          For the nine       For the nine
                                       three
                    months ended       months ended     months ended       months ended
                    September 30,      September        September 30,      September 30,
                                       30,
                    2013               2012             2013               2012
                                                                              
Revenues
Gross
premiums            $ 1,281,477        $ 1,056,076      $ 4,378,944        $ 3,786,802   
written
                                                                              
Net premiums        $ 1,264,775        $ 1,043,240      $ 4,210,525        $ 3,652,571
written
Decrease
(increase) in         156,694            193,851          (433,740   )       (334,772   )
unearned
premiums
Net premiums          1,421,469          1,237,091        3,776,785          3,317,799
earned
Net
investment            121,811            135,266          370,017            435,669
income
Net realized
and unrealized        16,118             257,429          (260,154   )       488,296
investment
gains (losses)
Other                 5,399              2,744            13,205             8,143       
income
Total                 1,564,797          1,632,530        3,899,853          4,249,907   
revenues
                                                                              
Expenses
Losses and
loss expenses
and life              750,999            721,137          2,278,793          2,003,759
policy
benefits
Acquisition           282,948            247,058          758,890            691,388
costs
Other
operating             108,467            94,697           369,340            299,055
expenses
^(1)
Interest              12,233             12,224           36,694             36,668
expense
Amortization
of                    7,045              8,893            21,136             26,679
intangible
assets
Net foreign
exchange              1,279              2,015            9,822              (3,165     )
losses
(gains)
Total                 1,162,971          1,086,024        3,474,675          3,054,384   
expenses
                                                                              
Income before
taxes and
interest in           401,826            546,506          425,178            1,195,523
earnings of
equity
investments
Income tax            70,232             64,149           37,338             181,458
expense
Interest in
earnings of           5,941              4,349            9,677              8,929       
equity
investments
Net                   337,535            486,706          397,517            1,022,994
income
                                                                              
Net income
attributable
to                    (4,112     )       —                (5,296     )       —           
noncontrolling
interests
Net income
attributable          333,423            486,706          392,221            1,022,994
to PartnerRe
                                                                              
Preferred             14,184             15,405           43,678             46,216
dividends
Loss on
redemption of         —                  —                9,135              —           
preferred
shares
Net income
attributable
to PartnerRe        $ 319,239          $ 471,301        $ 339,408          $ 976,778     
common
shareholders
                                                                              
Operating
earnings
attributable to     $ 311,184          $ 244,406        $ 564,328          $ 568,119     
PartnerRe
common
shareholders
                                                                              
Comprehensive
income              $ 347,740          $ 518,871        $ 375,597          $ 1,053,153   
attributable
to PartnerRe
                                                                              
Per share data
attributable to
PartnerRe
common
shareholders:
Earnings per
common
share:
Basic
operating           $ 5.80             $ 3.95           $ 10.05            $ 8.92
earnings
Net realized
and unrealized
investment            (0.02      )       3.59             (3.90      )       6.27
(losses) gains,
net of tax
Net foreign
exchange gains        0.10               0.02             (0.03      )       0.02
(losses), net
of tax
Loss on
redemption of         —                  —                (0.16      )       —
preferred
shares
Interest in
earnings of
equity                0.07               0.06             0.08               0.13        
investments,
net of tax
Basic net           $ 5.95             $ 7.62           $ 6.04             $ 15.34       
income
                                                                              
Weighted
average number
of common             53,671,245         61,837,328       56,176,260         63,679,114
shares
outstanding
                                                                              
Diluted
operating           $ 5.70             $ 3.90           $ 9.86             $ 8.84
earnings
^(1)
Net realized
and unrealized
investment            (0.03      )       3.55             (3.83      )       6.21
(losses) gains,
net of tax
Net foreign
exchange gains        0.10               0.02             (0.02      )       0.01
(losses), net
of tax
Loss on
redemption of         —                  —                (0.16      )       —
preferred
shares
Interest in
earnings of
equity                0.07               0.06             0.08               0.13        
investments,
net of tax
Diluted net         $ 5.84             $ 7.53           $ 5.93             $ 15.19       
income
                                                                              
Weighted
average number
of common
shares and            54,625,151         62,606,761       57,217,561         64,284,125
common share
equivalents
outstanding
Dividends
declared per        $ 0.64             $ 0.62           $ 1.92             $ 1.86
common share
                                                                              

       Income before taxes and interest in earnings of equity investments
       include an expense related to the restructuring of the Company's
^(1)   business support operations and Global Non-life operations of $2.4
       million and $45.7 million, or $0.04 and $0.80 per diluted share,
       pre-tax, for the three months and nine months ended September 30, 2013,
       respectively.
        

                                                               
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                                       2013               2012
Investments:
Fixed maturities, trading securities, at     $ 13,680,838       $ 14,395,315
fair value
Short-term investments, trading                36,781             150,552
securities, at fair value
Equities, trading securities, at fair          1,122,084          1,094,002
value
Other invested assets                          268,097            333,361     
Total investments                              15,107,800         15,973,230
Funds held – directly managed                  813,497            930,741
Cash and cash equivalents, at fair             1,551,062          1,121,705
value, which approximates amortized cost
Accrued investment income                      175,164            184,315
Reinsurance balances receivable                2,564,015          1,991,991
Reinsurance recoverable on paid and            339,169            348,086
unpaid losses
Funds held by reinsured companies              831,704            805,489
Deferred acquisition costs                     680,972            568,391
Deposit assets                                 347,419            257,208
Net tax assets                                 13,688             25,098
Goodwill                                       456,380            456,380
Intangible assets                              193,134            214,270
Other assets                                   64,203             103,528     
Total assets                                 $ 23,138,207       $ 22,980,432  
                                                                   
Liabilities
Unpaid losses and loss expenses              $ 10,564,542       $ 10,709,371
Policy benefits for life and annuity           1,908,575          1,813,244
contracts
Unearned premiums                              1,997,853          1,534,625
Other reinsurance balances payable             232,711            238,578
Deposit liabilities                            330,233            252,217
Net tax liabilities                            293,797            387,647
Accounts payable, accrued expenses and         365,331            290,265
other
Debt related to senior notes                   750,000            750,000
Debt related to capital efficient notes        70,989             70,989      
Total liabilities                              16,514,031         16,046,936  
                                                                   
Shareholders’ Equity
Common shares (par value $1.00; issued:
2013, 86,425,676 shares; 2012,                 86,426             85,460
85,459,905 shares)
Preferred shares (par value $1.00;
issued and outstanding: 2013, 34,150,000
shares;
2012, 35,750,000 shares; aggregate
liquidation value: 2013, $853,750; 2012,       34,150             35,750
$893,750)
Additional paid-in capital                     3,880,412          3,861,844
Accumulated other comprehensive (loss)         (6,027     )       10,597
income
Retained earnings                              5,183,219          4,952,002
Common shares held in treasury, at cost
(2013, 33,197,911 shares; 2012,                (2,606,493 )       (2,012,157 )
26,550,530 shares)
Total shareholders’ equity attributable        6,571,687          6,933,496
to PartnerRe
Noncontrolling interests                       52,489             —           
Total shareholders’ equity                     6,624,176          6,933,496
                                                                   
Total liabilities and shareholders’          $ 23,138,207       $ 22,980,432  
equity
                                                                   
Diluted Book Value Per Common Share and
Common Share Equivalents Outstanding         $ 105.53           $ 100.84      
^(1) (2)
                                                                   
Diluted Tangible Book Value Per Common
Share and Common Share Equivalents           $ 94.86            $ 90.86       
Outstanding ^(1) (2)
                                                                   
Number of Common Share and Common Share        54,181,672         59,893,366  
Equivalents Outstanding ^(2)
                                                                   

       Excludes the aggregate liquidation value of preferred shares (2013,
^(1)   $853,750; 2012, $893,750) and noncontrolling interests (2013, $52,489;
       2012, $Nil).
^(2)   Common share and common share equivalents outstanding are calculated
       using the Treasury Method for all potentially dilutive shares.
        

                                                                                                                   
PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
 
For the three months ended September 30, 2013
                                                                                                                       
                              Global                                       Total         Life
                 North        (Non-U.S.)     Global                        Non-life      and          Corporate
                                                                                         Health
                 America      P&C            Specialty     Catastrophe     segment       segment      and Other     Total
                                                                                                                       
Gross
premiums         $ 409        $  157         $  396        $  79           $ 1,041       $ 235        $  5          $ 1,281
written
                                                                                                                       
Net premiums     $ 408        $  157         $  389        $  72           $ 1,026       $ 234        $  5          $ 1,265
written
Decrease
(increase)         17            38             (7   )        99             147           9             —            156    
in unearned
premiums
Net premiums     $ 425        $  195         $  382        $  171          $ 1,173       $ 243        $  5          $ 1,421
earned
Losses and
loss
expenses and
life policy        (197 )        (90   )        (228 )        (42   )        (557  )       (195 )        1            (751  )
benefits
Acquisition        (101 )        (50   )        (92  )        (16   )        (259  )       (24  )        —            (283  )
costs
Technical        $ 127        $  55          $  62         $  113          $ 357         $ 24         $  6          $ 387
result
                                                                                                                       
Other income                                                                 2             3             —            5
Other
operating                                                                    (62   )       (17  )        (29  )       (108  )
expenses
Underwriting                                                               $ 297         $ 10            n/a        $ 284
result
                                                                                                                       
Net
investment                                                                                 15            107          122    
income
Allocated
underwriting                                                                             $ 25            n/a          n/a
result ^(1)
                                                                                                                       
Net realized
and
unrealized                                                                                               16           16
investment
gains
Interest                                                                                                 (12  )       (12   )
expense
Amortization
of                                                                                                       (7   )       (7    )
intangible
assets
Net foreign
exchange                                                                                                 (1   )       (1    )
losses
Income tax                                                                                               (70  )       (70   )
expense
Interest in
earnings of                                                                                              6            6      
equity
investments
Net income                                                                                               n/a        $ 338    
                                                                                                                       
Loss ratio         46.3   %      46.0    %      59.8   %      24.5     %     47.5    %
^(2)
Acquisition        23.9          25.7           24.0          9.0            22.1   
ratio ^(3)
                                                                                                                       
Technical          70.2   %      71.7    %      83.8   %      33.5     %     69.6    %
ratio ^(4)
Other
operating                                                                    5.3    
expense
ratio ^ (5)
                                                                                                                       
Combined                                                                     74.9    %
ratio ^(6)
                                                                                                                       
For the three months ended September 30, 2012
                                                                                                                       
                              Global                                       Total         Life
                 North        (Non-U.S.)     Global                        Non-life      and          Corporate
                                                                                         Health
                 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
life policy        (251 )        (110  )        (161 )        (39   )        (561  )       (157 )        (3   )       (721  )
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)
                                                                                                                       

       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, 2013
                                                                                                                        
                               Global                                       Total          Life
                 North         (Non-U.S.)     Global                        Non-life       and          Corporate
                                                                                           Health
                 America       P&C            Specialty     Catastrophe     segment        segment      and Other    Total
                                                                                                                        
Gross
premiums         $ 1,228       $  690         $ 1,253       $  478          $ 3,649        $ 722        $  8         $ 4,379
written
                                                                                                                        
Net premiums     $ 1,215       $  682         $ 1,159       $  433          $ 3,489        $ 715        $  7         $ 4,211
written
Increase in
unearned           (99   )        (152  )       (68   )        (97   )        (416   )       (17  )        (1   )      (434   )
premiums
Net premiums     $ 1,116       $  530         $ 1,091       $  336          $ 3,073        $ 698        $  6         $ 3,777
earned
Losses and
loss
expenses and
life policy        (682  )        (263  )       (697  )        (81   )        (1,723 )       (558 )        2           (2,279 )
benefits
Acquisition        (253  )        (134  )       (257  )        (33   )        (677   )       (82  )        —           (759   )
costs
Technical        $ 181         $  133         $ 137         $  222          $ 673          $ 58         $  8         $ 739
result
                                                                                                                        
Other income                                                                  3              9             1           13
Other
operating                                                                     (189   )       (52  )        (128 )      (369   )
expenses
Underwriting                                                                $ 487          $ 15            n/a       $ 383
result
                                                                                                                        
Net
investment                                                                                   45            325         370     
income
Allocated
underwriting                                                                               $ 60            n/a         n/a
result ^(1)
                                                                                                                        
Net realized
and
unrealized                                                                                                 (260 )      (260   )
investment
losses
Interest                                                                                                   (37  )      (37    )
expense
Amortization
of                                                                                                         (21  )      (21    )
intangible
assets
Net foreign
exchange                                                                                                   (10  )      (10    )
losses
Income tax                                                                                                 (37  )      (37    )
expense
Interest in
earnings of                                                                                                10          10      
equity
investments
Net income                                                                                                 n/a       $ 398     
                                                                                                                        
Loss ratio         61.1    %      49.7    %     63.9    %      24.2     %     56.1     %
^(2)
Acquisition        22.7           25.2          23.6           9.7            22.0    
ratio ^(3)
                                                                                                                        
Technical          83.8    %      74.9    %     87.5    %      33.9     %     78.1     %
ratio ^(4)
Other
operating                                                                     6.1     
expense
ratio ^ (5)
                                                                                                                        
Combined                                                                      84.2     %
ratio ^(6)
                                                                                                                        
For the nine months ended September 30, 2012
                                                                                                                        
                               Global                                       Total          Life
                 North         (Non-U.S.)     Global                        Non-life       and          Corporate
                                                                                           Health
                 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
life policy        (568  )        (327  )       (569  )        (58   )        (1,522 )       (479 )        (3   )      (2,004 )
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)

Contact:

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