PartnerRe Ltd. Reports Fourth Quarter and Full Year 2013 Results

  PartnerRe Ltd. Reports Fourth Quarter and Full Year 2013 Results

  *Fourth Quarter Operating Earnings per share of $2.91; Net Income per share
    of $4.76
  *Fourth Quarter Annualized Operating ROE of 11.5%; Annualized Net Income
    ROE of 18.9%
  *Full Year Operating Earnings per share of $12.79; Net Income per share of
    $10.58
  *Full Year Annualized Operating ROE of 12.7%; Annualized Net Income ROE of
    10.5%
  *Book Value of $109.26 per share, up 3.5% for the quarter and up 8.3%
    year-to-date
  *Tangible Book Value of $98.49 per share, up 3.8% for the quarter and up
    8.4% year-to-date

Business Wire

PEMBROKE, Bermuda -- February 3, 2014

PartnerRe Ltd. (NYSE:PRE) today reported a net income of $271.8 million, or
$4.76 per share for the fourth quarter of 2013. This includes net after-tax
realized and unrealized gains on investments of $91.8 million, or $1.70 per
share. Net income for the fourth quarter of 2012 was $111.5 million, or $1.56
per share, including net after-tax realized and unrealized losses on
investments of $7.4 million, or $0.12 per share. The Company reported
operating earnings of $157.4 million, or $2.91 per share, for the fourth
quarter of 2013. This compares to operating earnings of $95.7 million, or
$1.55 per share, for the fourth quarter of 2012.

Net income for the full year 2013 was $664.0 million, or $10.58 per share.
This includes net after-tax realized and unrealized losses on investments of
$127.2 million, or $2.25 per share. Net income for the full year 2012 was
$1,134.5 million, or $16.87 per share, including net after-tax realized and
unrealized gains on investments of $392.0 million, or $6.17 per share.
Operating earnings for the full year 2013 were $721.7 million, or $12.79 per
share. This compares to operating earnings of $663.8 million, or $10.43 per
share, for the full year 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 a strong fourth quarter to finish 2013. We generated
an 11.5% operating ROE for the quarter, and close to 19% net income ROE,
reflecting a gain in one of our insurance investments. For the year, despite
significant mark to market losses on our fixed income portfolio resulting from
higher risk free rates, we increased our tangible book value per share by 8.4%
while maintaining an attractive dividend yield.”

“Last week, we announced the results of our Non-life treaty renewal,” Mr.
Miranthis added. “Despite challenging market conditions, the strength of our
global franchise allowed us to modestly grow our portfolio while we maintained
our usual underwriting discipline. We also had good production in our Life &
Health operations which continue to grow profitably. I am confident that the
strength of our client relationships and our technical skills in evaluating a
broad range of risk will continue to differentiate us in the years to come.”

Highlights for the fourth quarter and full year 2013 compared to the same
periods in 2012 include:

Results of operations:

  *For the fourth quarter, net premiums written of $1.2 billion were up 29%.
    The increase was reported across all Non-life sub-segments, except the
    Catastrophe sub-segment, and the Life and Health segment. The increase was
    primarily related to new business in the Global Specialty and North
    America sub-segments, the inclusion of PartnerRe Health’s (previously
    referred to as Presidio) business in the Life and Health segment and new
    business in the Global (Non-U.S.) P&C sub-segment. For the full year 2013,
    net premiums written of $5.4 billion were up 18%. The increase was
    reported across all Non-life sub-segments, except for the Catastrophe
    sub-segment, and the Life and Health segment primarily due to the same
    factors discussed above for the fourth quarter.
  *For the fourth quarter, net premiums earned of $1.4 billion were up 22%.
    The increase was primarily driven by the same factors discussed above for
    net premiums written for the fourth quarter. For the full year 2013, net
    premiums earned of $5.2 billion were up 16%, primarily due to the same
    factors discussed above for net premiums written for the full year.
  *For the fourth quarter, the Non-life combined ratio was 88.0%. The
    combined ratio includes 3.5 points (or $41 million, net of premium and
    commission adjustments) of gross charges related to the 2013 underwriting
    year U.S. agricultural portfolio, which largely reflects reversing profits
    recognized in prior quarters. The combined ratio also benefited from
    favorable prior year development of 14.9 points (or $173 million). All
    Non-life sub-segments, except the Catastrophe sub-segment, experienced net
    favorable development on prior accident years during the fourth quarter of
    2013. For the full year 2013, the Non-life combined ratio was 85.3%. The
    combined ratio included 3.4 points (or $142 million, net of premium,
    retrocession and commission adjustments) of losses related to the German
    hailstorms, the Alberta floods and the European floods (the “2013
    Catastrophe Events") and benefited from favorable prior year development
    of 17.0 points (or $721 million). All Non-life sub-segments experienced
    net favorable development on prior accident years during the full year
    2013.
  *For the fourth quarter and the full year 2013, other operating expenses
    included a pre-tax charge of $12 million and $58 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 fourth quarter and the full year annualized
    operating ROE by 0.6% and 0.7%, respectively. Additionally, operating
    expenses for the fourth quarter and full year 2013 reflect higher bonus
    accruals as a result of favorable 2013 financial performance.
  *For the fourth quarter and the full year 2013, net investment income of
    $114 million and $484 million, respectively, was down 16%, on a constant
    foreign exchange basis. The decrease in net investment income primarily
    reflects lower reinvestment rates.
  *For the fourth quarter, pre-tax net realized and unrealized investment
    gains were $99 million primarily reflecting an unrealized gain on an
    investment in an insurance company that completed an initial public
    offering in the fourth quarter, improvements in worldwide equity markets
    and narrower credit spreads, which were partially offset by increases in
    risk-free interest rates. For the full year 2013, pre-tax net realized and
    unrealized investment losses were $161 million primarily reflecting
    increases in risk-free rates, which was partially offset by improvements
    in equity markets, narrower credit spreads and the unrealized gain
    described in the fourth quarter result.
  *For the fourth quarter, the effective tax rate on operating earnings and
    non-operating earnings was 6% and (1%), respectively. For the full year
    2013, the effective tax rate on operating earnings and non-operating
    earnings was 11% and 27%, respectively.

Balance sheet and capitalization:

  *Total investments, cash and funds held – directly managed were $17.4
    billion at December 31, 2013, down 3% compared to December 31, 2012.
  *Net Non-life loss and loss expense reserves were $10.4 billion at December
    31, 2013, comparable to December 31, 2012.
  *Net policy benefits for life and annuity contracts were $2.0 billion at
    December 31, 2013, up 10% compared to December 31, 2012.
  *Total capital was $7.5 billion at December 31, 2013, down 3% compared to
    December 31, 2012 primarily driven by share repurchases and common and
    preferred dividend payments, which were partially offset by net income for
    the full year 2013.
  *The Company repurchased approximately 1.0 million common shares at a total
    cost of approximately $101 million during the fourth quarter of 2013. The
    average repurchase price of $99.41 per share represents a 5.8% discount to
    September 30, 2013 diluted book value per share. Since January 1, 2014,
    the Company has repurchased 615 thousand common shares at a total cost of
    approximately $61 million. At January 31, 2014, approximately 4.3 million
    common shares remained under the current repurchase authorization.
  *Total shareholders’ equity attributable to PartnerRe was $6.7 billion at
    December 31, 2013, down 3% compared to December 31, 2012. The decrease was
    driven by the factors described above for total capital.
  *Book value per common share was $109.26 at December 31, 2013, a record
    high for PartnerRe, up 8.3% compared to $100.84 at December 31, 2012.
    Tangible book value per common share was $98.49 at December 31, 2013, up
    8.4% 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 fourth quarter and the full year
2013 compared to the same periods in 2012 include:

Non-life:

  *For the fourth quarter, the Non-life segment’s net premiums written were
    up 30%. The increase was reported across all Non-life sub-segments, except
    the Catastrophe sub-segment, which reported a modest decrease of $7
    million. For the full year 2013, net premiums written were up 18%. The
    increase was reported across all Non-life sub-segments.
  *For the fourth quarter, the North America sub-segment’s net premiums
    written were up 25% primarily driven by new business in the agriculture
    line of business and, to a lesser extent, an upward premium adjustment in
    the agriculture line of business related to the 2013 U.S. crop year
    losses. This sub-segment reported a technical ratio of 93.7%, which
    included 16.1 points (or $67 million) of net favorable prior year loss
    development and 9.8 points (or $41 million, net of premium and commission
    adjustments), of gross charges related to the 2013 underwriting year U.S.
    agricultural book. For the full year 2013, the North America sub-segment’s
    net premiums written were up 30% due to new business written in the
    agriculture, casualty and structured property lines of business. This
    sub-segment reported a technical ratio of 86.5%, which included 14.5
    points (or $223 million) of net favorable prior year loss development, 0.8
    points (or $12 million) of gross charges, net of premium and commission
    adjustments, related to the 2013 underwriting year U.S. agricultural
    portfolio, and 0.9 points (or $14 million) of losses related to the
    Alberta floods.
  *For the fourth quarter, the Global (Non-U.S.) P&C sub-segment’s net
    premiums written were up 52%, or 54% on a constant foreign exchange basis,
    primarily due to new business in the motor line of business. This
    sub-segment reported a technical ratio of 80.9%, which included 22.9
    points (or $49 million) of net favorable prior year loss development. For
    the full year 2013, the Global (Non-U.S.) P&C sub-segment’s net premiums
    written were up 19% primarily due to new motor business. This sub-segment
    reported a technical ratio of 76.6%, which included 24.2 points (or $180
    million) of net favorable prior year loss development and 1.5 points (or
    $11 million) of losses related to the European floods and the German
    hailstorms.
  *For the fourth quarter, the Global Specialty sub-segment’s net premiums
    written were up 33% or 32% on a constant foreign exchange basis, primarily
    due to new business in the specialty casualty, agriculture and marine
    lines of business and upward premium adjustments in the engineering line
    of business. This sub-segment reported a technical ratio of 79.0%, which
    included 14.8 points (or $61 million) of net favorable prior year loss
    development. For the full year 2013, the Global Specialty sub-segment’s
    net premiums written were up 12% or 11% on a constant foreign exchange
    basis, primarily due to new business in the agriculture, multi-line and
    specialty casualty lines of business. This sub-segment reported a
    technical ratio of 85.1%, which included 15.1 points (or $227 million) of
    net favorable prior year loss development and 1.0 points (or $15 million)
    of losses related to the Alberta floods and the European floods.
  *For the fourth quarter, which is traditionally a quiet catastrophe renewal
    period, the Catastrophe sub-segment’s net premiums written were down $7
    million, on a constant foreign exchange basis, to $17 million. This
    sub-segment reported a technical ratio of 52.7%, which included 3.7 points
    (or $4 million) of net adverse prior year loss development. For the full
    year 2013, the Catastrophe sub-segment’s net premiums written were down
    1%, or up 1% on a constant foreign exchange basis. This sub-segment
    reported a technical ratio of 38.7%, which included 20.1 points (or $91
    million) of net favorable prior year loss development and 25.0 points (or
    $102 million) of losses, net of reinstatement premiums and retrocession,
    related to the 2013 Catastrophe events.

Life and Health:

  *For the fourth quarter, the Life and Health segment’s net premiums written
    were up 26%, or 25% on a constant foreign exchange basis, primarily due to
    the inclusion of PartnerRe Health’s net premiums written and, to a lesser
    extent, growth in the short-term mortality line of business. For the full
    year 2013, the Life and Health segment’s net premiums written were up 20%
    on a constant foreign exchange basis, primarily due to the same factors
    describing the fourth quarter.
  *For the fourth quarter, the Life and Health segment’s allocated
    underwriting result, which includes allocated investment income and
    operating expenses, increased to $13 million compared to $5 million in the
    same period of 2012. The increase was primarily due to a higher level of
    net favorable prior year loss development and the inclusion of PartnerRe
    Health. For the full year 2013, the Life and Health segment’s allocated
    underwriting result increased to $73 million compared to $48 million in
    the same period of 2012 primarily due to the same factors describing the
    fourth quarter.

Corporate and Other:

  *For the fourth quarter, investment and capital markets activities
    contributed income of $201 million to pre-tax net income, excluding
    investment income allocated to the Life and Health segment. Of this
    amount, income of $93 million was included in pre-tax operating earnings
    and income of $108 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 full year 2013, investment and
    capital markets activities contributed income of $280 million to pre-tax
    net income, excluding investment income allocated to the Life and Health
    segment. Of this amount, income of $421 million was included in pre-tax
    operating earnings and losses of $141 million related to net realized and
    unrealized losses on investments and earnings from equity investee
    companies was included in pre-tax non-operating losses.
  *For the fourth quarter and full year 2013, other operating expenses
    included a pre-tax charge of $12 million and $58 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 on January 29, 2014, the Board of
Directors increased the annual common share dividend by 5%, marking the
twenty-first consecutive year that the Company has increased the common share
dividend since its inception in 1993. The Board declared a quarterly dividend
of $0.67 per common share. The dividend will be payable on February 28, 2014
to common shareholders of record on February 18, 2014.

The Company has posted its fourth 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, February 4.  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 (866)-249-5224 or, from
outside the United States, by dialing (480)-293-0646. 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, 2013, total
revenues were $5.5 billion. At December 31, 2013, total assets were $23.0
billion, total capital was $7.5 billion and total shareholders’ equity
attributable to PartnerRe was $6.7 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 three     For the year    For the year
                   months ended        months ended        ended             ended
                   December 31,        December 31,        December 31,      December 31,
                   2013                2012                2013              2012
                                                                               
Revenues
Gross premiums     $ 1,190,761        $ 931,434          $ 5,569,706       $ 4,718,235
written
                                                                               
Net premiums       $ 1,186,002         $ 920,288           $ 5,396,526       $ 4,572,860
written
Decrease
(increase) in       235,422           247,852           (198,316)        (86,921)
unearned
premiums
Net premiums         1,421,424           1,168,140           5,198,210         4,485,939
earned
Net investment       114,351             135,669             484,367           571,338
income
Net realized
and unrealized       99,419              5,113               (160,735)         493,409
investment
gains (losses)
Other income        3,361             3,777             16,565           11,920
Total revenues      1,638,555         1,312,699         5,538,407        5,562,606
                                                                               
Expenses
Losses and
loss expenses
and life             879,014             800,851             3,157,808         2,804,610
policy
benefits
Acquisition          318,738             245,520             1,077,628         936,909
costs
Other
operating            131,125             112,319             500,466           411,374
expenses ^(1)
Interest             12,236              12,227              48,929            48,895
expense
Amortization
of intangible        6,044               5,120               27,180            31,799
assets
Net foreign
exchange            8,382             3,341             18,203           175
losses
Total expenses      1,355,539         1,179,378         4,830,214        4,233,762
                                                                               
Income before
taxes and
interest in          283,016             133,321             708,193           1,328,844
earnings of
equity
investments
Income tax           11,078              22,826              48,416            204,284
expense
Interest in
earnings of         3,988             1,026             13,665           9,954
equity
investments
Net income           275,926             111,521             673,442           1,134,514
                                                                               
Net income
attributable
to                  (4,138)           —                  (9,434)          —
noncontrolling
interests
Net income
attributable         271,788             111,521             664,008           1,134,514
to PartnerRe
                                                                               
Preferred            14,184              15,405              57,861            61,622
dividends
Loss on
redemption of       —                 —                 9,135            —
preferred
shares
Net income
attributable
to PartnerRe       $ 257,604          $ 96,116           $ 597,012         $ 1,072,892
common
shareholders
                                                                               
Operating
earnings
attributable       $ 157,405          $ 95,671           $ 721,733         $ 663,791
to PartnerRe
common
shareholders
                                                                               
Comprehensive
income             $ 265,577          $ 104,603          $ 641,173         $ 1,157,755
attributable
to PartnerRe
                                                                               
Per share data
attributable
to PartnerRe
common
shareholders:
Earnings per
common share:
Basic
operating          $ 2.97              $ 1.58              $ 13.03           $ 10.55
earnings
Net realized
and unrealized
investment           1.73                (0.13)              (2.30)            6.23
gains
(losses), net
of tax
Net foreign
exchange             0.07                0.12                0.05              0.13
gains, net of
tax
Loss on
redemption of        —                   —                   (0.16)            —
preferred
shares
Interest in
earnings of
equity              0.09              0.01              0.16             0.14
investments,
net of tax
Basic net          $ 4.86             $ 1.58             $ 10.78           $ 17.05
income
                                                                               
Weighted
average number
of common            53,013,136          60,643,216          55,378,980        62,915,992
shares
outstanding
                                                                               
Diluted
operating          $ 2.91              $ 1.55              $ 12.79           $ 10.43
earnings ^(1)
Net realized
and unrealized
investment           1.70                (0.12)              (2.25)            6.17
gains
(losses), net
of tax
Net foreign
exchange             0.07                0.12                0.04              0.13
gains, net of
tax
Loss on
redemption of        —                   —                   (0.16)            —
preferred
shares
Interest in
earnings of
equity              0.08              0.01              0.16             0.14
investments,
net of tax
Diluted net        $ 4.76             $ 1.56             $ 10.58           $ 16.87
income
                                                                               
Weighted
average number
of common
shares and           54,165,736          61,627,207          56,448,105        63,615,748
common share
equivalents
outstanding
Dividends
declared per       $ 0.64              $ 0.62              $ 2.56            $ 2.48
common share


         Income before taxes and interest in earnings of equity investments
         includes an expense related to the restructuring of the Company's
^(1)   business support operations and Global Non-life operations of $12.2
         million and $57.9 million, or $0.22 and $1.03 per diluted share,
         pre-tax, for the three months and the year ended December 31, 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)
                                                            
                                             December 31,        December 31,
Assets                                       2013                2012
                                                                   
Investments:
Fixed maturities, trading securities, at     $ 13,593,303        $ 14,395,315
fair value
Short-term investments, trading                13,546              150,552
securities, at fair value
Equities, trading securities, at fair          1,221,053           1,094,002
value
Other invested assets                         320,981           333,361
Total investments                              15,148,883          15,973,230
Funds held – directly managed                  785,768             930,741
Cash and cash equivalents, at fair             1,496,485           1,121,705
value, which approximates amortized cost
Accrued investment income                      185,717             184,315
Reinsurance balances receivable                2,465,713           1,991,991
Reinsurance recoverable on paid and            308,892             348,086
unpaid losses
Funds held by reinsured companies              843,081             805,489
Deferred acquisition costs                     644,952             568,391
Deposit assets                                 351,905             257,208
Net tax assets                                 14,133              25,098
Goodwill                                       456,380             456,380
Intangible assets                              187,090             214,270
Other assets                                  149,296           103,528
Total assets                                 $ 23,038,295       $ 22,980,432
                                                                   
Liabilities
Unpaid losses and loss expenses              $ 10,646,318        $ 10,709,371
Policy benefits for life and annuity           1,974,133           1,813,244
contracts
Unearned premiums                              1,723,767           1,534,625
Other reinsurance balances payable             202,549             238,578
Deposit liabilities                            328,588             252,217
Net tax liabilities                            284,442             387,647
Accounts payable, accrued expenses and         291,350             290,265
other
Debt related to senior notes                   750,000             750,000
Debt related to capital efficient notes       70,989            70,989
Total liabilities                             16,272,136        16,046,936
                                                                   
Shareholders’ Equity
Common shares (par value $1.00; issued:
2013, 86,657,045 shares; 2012,                 86,657              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                     3,901,627           3,861,844
Accumulated other comprehensive (loss)         (12,238)            10,597
income
Retained earnings                              5,406,797           4,952,002
Common shares held in treasury, at cost
(2013, 34,213,611 shares; 2012,                (2,707,461)       (2,012,157)
26,550,530 shares)
Total shareholders’ equity attributable        6,709,532           6,933,496
to PartnerRe
Noncontrolling interests                      56,627            —
Total shareholders’ equity                     6,766,159           6,933,496
                                                               
Total liabilities and shareholders’          $ 23,038,295       $ 22,980,432
equity
                                                                   
Diluted Book Value Per Common Share and
Common Share Equivalents Outstanding ^       $ 109.26           $ 100.84
(1) (2)
                                                                   
Diluted Tangible Book Value Per Common
Share and Common Share Equivalents           $ 98.49            $ 90.86
Outstanding ^(1) (2)
                                                                   
Number of Common Share and Common Share       53,596,034        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,
         $56,627; 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 December 31, 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       $ 372         $  128         $  423        $  18           $ 941         $ 250        $  —          $ 1,191
written
                                                                                                                     
Net premiums   $ 372         $  128         $  419        $  18           $ 937         $ 249        $  —          $ 1,186
written
Decrease
(increase)       45          85          (4   )       99           225         9          1          235   
in unearned
premiums
Net premiums   $ 417         $  213         $  415        $  117          $ 1,162       $ 258        $  1          $ 1,421
earned
Losses and
loss
expenses and
life policy      (293  )        (110  )        (223 )        (51   )        (677  )       (202 )        —            (879  )
benefits
Acquisition     (98   )      (62   )      (105 )       (11   )       (276  )      (42  )      —          (318  )
costs
Technical      $ 26          $  41          $  87         $  55           $ 209         $ 14         $  1          $ 224
result
                                                                                                                     
Other income                                                                —             3             —            3
Other
operating                                                                  (70   )      (19  )      (42  )      (131  )
expenses
Underwriting                                                              $ 139         $ (2   )        n/a        $ 96
result
                                                                                                                     
Net
investment                                                                               15         99         114   
income
Allocated
underwriting                                                                            $ 13            n/a          n/a
result ^(1)
                                                                                                                     
Net realized
and
unrealized                                                                                              99           99
investment
gains
Interest                                                                                                (12  )       (12   )
expense
Amortization
of                                                                                                      (6   )       (6    )
intangible
assets
Net foreign
exchange                                                                                                (8   )       (8    )
losses
Income tax                                                                                              (11  )       (11   )
expense
Interest in
earnings of                                                                                            4          4     
equity
investments
Net income                                                                                             n/a       $ 276   
                                                                                                                     
Loss ratio       70.2    %      51.5    %      53.8   %      43.2     %     58.2    %
^(2)
Acquisition      23.5          29.4          25.2         9.5           23.8  
ratio ^(3)
                                                                                                                     
Technical        93.7    %      80.9    %      79.0   %      52.7     %     82.0    %
ratio ^(4)
Other
operating                                                                   6.0   
expense
ratio ^(5)
                                                                                                                     
Combined                                                                    88.0   %
ratio ^(6)
                                                                                                                     
For the three months ended December 31, 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       $ 297         $  85          $  327        $  24           $ 733         $ 198        $  —          $ 931
written
                                                                                                                     
Net premiums   $ 297         $  85          $  316        $  25           $ 723         $ 197        $  —          $ 920
written
Decrease in
unearned         16          98          23          101          238         8          2          248   
premiums
Net premiums   $ 313         $  183         $  339        $  126          $ 961         $ 205        $  2          $ 1,168
earned
Losses and
loss
expenses and
life policy      (248  )        (88   )        (252 )        (45   )        (633  )       (168 )        —            (801  )
benefits
Acquisition     (73   )      (47   )      (80  )       (12   )       (212  )      (33  )      —          (245  )
costs
Technical      $ (8    )     $  48          $  7          $  69           $ 116         $ 4          $  2          $ 122
result
                                                                                                                     
Other income                                                                2             1             —            3
Other
operating                                                                  (70   )      (15  )      (27  )      (112  )
expenses
Underwriting                                                              $ 48          $ (10  )        n/a        $ 13
result
                                                                                                                     
Net
investment                                                                               15         121        136   
income
Allocated
underwriting                                                                            $ 5             n/a          n/a
result ^(1)
                                                                                                                     
Net realized
and
unrealized                                                                                              5            5
investment
gains
Interest                                                                                                (12  )       (12   )
expense
Amortization
of                                                                                                      (5   )       (5    )
intangible
assets
Net foreign
exchange                                                                                                (3   )       (3    )
losses
Income tax                                                                                              (23  )       (23   )
expense
Interest in
earnings of                                                                                            1          1     
equity
investments
Net income                                                                                             n/a       $ 112   
                                                                                                                     
Loss ratio       79.2    %      48.5    %      74.3   %      35.6     %     65.9    %
^(2)
Acquisition      23.2          25.6          23.5         9.8           22.0  
ratio ^(3)
                                                                                                                     
Technical        102.4   %      74.1    %      97.8   %      45.4     %     87.9    %
ratio ^(4)
Other
operating                                                                   7.4   
expense
ratio ^(5)
                                                                                                                     
Combined                                                                    95.3   %
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 year ended December 31, 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       $ 1,601       $  818         $ 1,676       $  495          $ 4,590        $ 972        $  8          $ 5,570
written
                                                                                                                      
Net premiums   $ 1,587       $  811         $ 1,579       $  450          $ 4,427        $ 964        $  6          $ 5,397
written
(Increase)
decrease in      (54   )      (68   )      (73   )       3           (192   )      (7   )       —         (199   )
unearned
premiums
Net premiums   $ 1,533       $  743         $ 1,506       $  453          $ 4,235        $ 957        $  6          $ 5,198
earned
Losses and
loss
expenses and
life policy      (975  )        (373  )       (920  )        (132  )        (2,400 )       (760 )        2            (3,158 )
benefits
Acquisition     (351  )      (196  )      (362  )       (44   )      (953   )      (125 )       —         (1,078 )
costs
Technical      $ 207         $  174         $ 224         $  277          $ 882          $ 72         $  8          $ 962
result
                                                                                                                      
Other income                                                                3              11            3            17
Other
operating                                                                  (259   )      (71  )       (170 )     (500   )
expenses
Underwriting                                                              $ 626          $ 12            n/a        $ 479
result
                                                                                                                      
Net
investment                                                                                61          423       484    
income
Allocated
underwriting                                                                             $ 73            n/a          n/a
result ^(1)
                                                                                                                      
Net realized
and
unrealized                                                                                               (161 )       (161   )
investment
losses
Interest                                                                                                 (49  )       (49    )
expense
Amortization
of                                                                                                       (27  )       (27    )
intangible
assets
Net foreign
exchange                                                                                                 (18  )       (18    )
losses
Income tax                                                                                               (49  )       (49    )
expense
Interest in
earnings of                                                                                             14        14     
equity
investments
Net income                                                                                              n/a      $ 673    
                                                                                                                      
Loss ratio       63.6    %      50.2    %     61.1    %      29.0     %     56.7     %
^(2)
Acquisition      22.9          26.4         24.0          9.7           22.5   
ratio ^(3)
                                                                                                                      
Technical        86.5    %      76.6    %     85.1    %      38.7     %     79.2     %
ratio ^(4)
Other
operating                                                                   6.1    
expense
ratio ^ (5)
                                                                                                                      
Combined                                                                    85.3    %
ratio ^(6)
                                                                                                                      
For the year ended December 31, 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       $ 1,221       $  684         $ 1,505       $  500          $ 3,910        $ 802        $  6          $ 4,718
written
                                                                                                                      
Net premiums   $ 1,219       $  681         $ 1,415       $  453          $ 3,768        $ 799        $  6          $ 4,573
written
(Increase)
decrease in      (43   )      (3    )      (42   )       4           (84    )      (4   )       1         (87    )
unearned
premiums
Net premiums   $ 1,176       $  678         $ 1,373       $  457          $ 3,684        $ 795        $  7          $ 4,486
earned
Losses and
loss
expenses and
life policy      (816  )        (415  )       (821  )        (103  )        (2,155 )       (647 )        (3   )       (2,805 )
benefits
Acquisition     (291  )      (167  )      (321  )       (42   )      (821   )      (116 )       —         (937   )
costs
Technical      $ 69          $  96          $ 231         $  312          $ 708          $ 32         $  4          $ 744
result
                                                                                                                      
Other income                                                                5              4             3            12
Other
operating                                                                  (257   )      (52  )       (102 )     (411   )
expenses
Underwriting                                                              $ 456          $ (16  )        n/a        $ 345
result
                                                                                                                      
Net
investment                                                                                64          507       571    
income
Allocated
underwriting                                                                             $ 48            n/a          n/a
result ^(1)
                                                                                                                      
Net realized
and
unrealized                                                                                               494          494
investment
gains
Interest                                                                                                 (49  )       (49    )
expense
Amortization
of                                                                                                       (32  )       (32    )
intangible
assets
Net foreign
exchange                                                                                                 —            —
losses
Income tax                                                                                               (204 )       (204   )
expense
Interest in
earnings of                                                                                             10        10     
equity
investments
Net income                                                                                              n/a      $ 1,135  
                                                                                                                      
Loss ratio       69.4    %      61.3    %     59.8    %      22.4     %     58.5     %
^(2)
Acquisition      24.7          24.6         23.4          9.3           22.3   
ratio ^(3)
                                                                                                                      
Technical        94.1    %      85.9    %     83.2    %      31.7     %     80.8     %
ratio ^(4)
Other
operating                                                                   7.0    
expense
ratio ^ (5)
                                                                                                                      
Combined                                                                    87.8    %
ratio ^(6)

Contact:

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