PartnerRe Ltd. Reports Second Quarter and Half Year 2014 Results

  PartnerRe Ltd. Reports Second Quarter and Half Year 2014 Results    *Second Quarter Operating Earnings per share of $2.60; Net Income per share     of $5.02   *Second Quarter Annualized Operating ROE of 9.5%; Annualized Net Income ROE     of 18.4%   *Half Year Operating Earnings per share of $5.97; Net Income per share of     $10.64   *Half Year Annualized Operating ROE of 10.9%; Annualized Net Income ROE of     19.5%   *Book Value of $118.96 per share, up 4.2% for the quarter and up 8.9%     year-to-date   *Tangible Book Value of $107.80 per share, up 4.6% for the quarter and up     9.5% year-to-date  Business Wire  PEMBROKE, Bermuda -- July 28, 2014  PartnerRe Ltd. (NYSE:PRE) today reported net income of $257.7 million, or $5.02 per share for the second quarter of 2014. This includes net after-tax realized and unrealized gains on investments of $123.7 million, or $2.41 per share. The net loss for the second quarter of 2013 was $190.4 million, or $3.37 per share, including net after-tax realized and unrealized losses on investments of $230.0 million, or $4.07 per share. The Company reported operating earnings of $133.5 million, or $2.60 per share, for the second quarter of 2014. This compares to operating earnings of $51.1 million, or $0.90 per share, for the second quarter of 2013.  Net income for the first six months of 2014 was $553.3 million, or $10.64 per share. This includes net after-tax realized and unrealized gains on investments of $239.6 million, or $4.61 per share. Net income for the first six months of 2013 was $20.2 million, or $0.34 per share, including net after-tax realized and unrealized losses on investments of $217.7 million, or $3.72 per share. Operating earnings for the first six months of 2014 were $310.4 million, or $5.97 per share. This compares to operating earnings of $253.1 million, or $4.32 per share, for the first six months of 2013.  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 method 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 good second quarter, on the back of the strong results we posted in the first quarter. Our seasonal earnings pattern for catastrophe premium resulted in lower cat premiums earned during the second quarter. In addition, we experienced a higher than average number of mid-sized individual non-catastrophe losses, an area where we expect some quarterly volatility. We are pleased however that the underlying loss ratio on attritional losses continues to be healthy. We also had very strong investment performance during the quarter. All together, this culminated in us growing our dividend-adjusted tangible book value per share by 10.8% for the first six months of 2014.”  Mr. Miranthis added, “Market conditions remain very competitive and excess reinsurance capacity is putting pressure on premium rates as well as on terms and conditions. While this is a difficult market, I am confident that our experienced teams coupled with the strength of our franchise will enable us to tackle the challenges ahead.”  Highlights for the second quarter and first six months of 2014 compared to the same periods in 2013 include:  Results of operations:    *For the second quarter,net premiums written of $1.4 billion were up 8%,     or 7% on a constant foreign exchange basis. The increase was driven by the     Life and Health segment and the North America and Global Specialty     Non-life sub-segments. The increase was primarily driven by PartnerRe     Health’s accident and health business in the Life and Health segment and     new business written at the January 1 renewals across multiple lines of     business in the North America and Global Specialty Non-life sub-segments.     These increases were partially offset by decreases in the Catastrophe and     Global (Non-U.S.) P&C Non-life sub-segments. For the first six months of     2014,net premiums written of $3.2 billion were up 7% primarily due to the     same factors describing the second quarter.   *For the second quarter,net premiums earned of $1.4 billion were up 12%,     or 11% on a constant foreign exchange basis. The increase was primarily     driven by PartnerRe Health’s business in the Life and Health segment and     the earning of new business written in 2013 and 2014 in the North America     and Global Specialty Non-life sub-segments. For the first six months of     2014,net premiums earned of $2.6 billion were up 11%, or 10% on a     constant foreign exchange basis, primarily due to the same factors     describing the second quarter.   *For the second quarter,the Non-life combined ratio was 91.5%. The     combined ratio benefited from favorable prior year development of 15.4     points (or $161 million). Except for the Catastrophe sub-segment, all     other Non-life sub-segments experienced net favorable development on prior     accident years during the second quarter. For the first six months of     2014,the Non-life combined ratio was 87.8%. The combined ratio benefited     from favorable prior year development of 16.0 points (or $325 million).     All Non-life sub-segments experienced net favorable development on prior     accident years during the first six months of 2014.   *For the second quarter, net investment income of $130 million was up 4%,     or 3% on a constant foreign exchange basis, primarily driven by the impact     of a rise in the U.S. Consumer Price Index on our Treasury Inflation     Protected Securities portfolio and certain other one-time favorable     adjustments, partially offset by lower reinvestment rates. For the first     six months of 2014, net investment income of $247 million was down 1%     primarily reflecting lower reinvestment rates, partially offset by various     factors.   *For the second quarter and first six months of 2014, pre-tax net realized     and unrealized investment gains were $166 million and $308 million,     respectively, primarily reflecting decreases in longer-term risk-free     interest rates, narrowing credit spreads, and improvements in worldwide     equity markets.   *For the second quarter, the effective tax rate on operating earnings and     non-operating earnings was 16% and 28%, respectively. For the first six     months of 2014, the effective tax rate on operating earnings and     non-operating earnings was 15% and 24%, respectively.  Balance sheet and capitalization:    *Total investments, cash and funds held – directly managed were $17.5     billion at June30, 2014, comparable to December31, 2013.   *Net Non-life loss and loss expense reserves were $10.2 billion at June30,     2014, down 2% compared to December31, 2013.   *Net policy benefits for life and annuity contracts were $2.1 billion at     June30, 2014, up 7% compared to December31, 2013.   *Total capital was $7.7 billion at June30, 2014, up 3% compared to     December31, 2013 primarily driven by net income for the first six months     of 2014, which was partially offset by share repurchases and common and     preferred dividend payments.   *The Company repurchased approximately 1.3million common shares at a total     cost of approximately $133 million during the second quarter of 2014. The     average repurchase price of $105.12 per share represents an 8% discount to     the diluted book value per share at March 31, 2014. Since July 1, 2014,     the Company has repurchased 150thousand common shares at a total cost of     approximately $16 million. As of July28, 2014, approximately 1.7million     common shares remained under the current repurchase authorization.   *Total shareholders’ equity attributable to PartnerRe was $6.9 billion at     June30, 2014, up 3% compared to December31, 2013. The increase was     driven by the same factors described above for total capital.   *Book value per common share was $118.96 at June30, 2014, a record high     for PartnerRe, up 8.9% compared to $109.26 at December31, 2013. Tangible     book value per common share was $107.80 at June30, 2014, up 9.5% compared     to $98.49 at December31, 2013. The increases were primarily driven by net     income and the accretive impact of share repurchases, which was partially     offset by common and preferred dividend payments.  Segment and sub-segment highlights for the second quarter and first six months of 2014 compared to the same periods in 2013 include:  Non-life:    *For the second quarter, the Non-life segment’s net premiums written were     up 3%. The increase was reported in the North America and Global Specialty     sub-segments and was partially offset by decreases in the Global     (Non-U.S.) P&C and Catastrophe sub-segments. For the first six months of     2014, the Non-life segment’s net premiums written were up 4% due to the     same factors describing the second quarter.   *For the second quarter, the North America sub-segment’s net premiums     written were up 9% primarily driven by new business written in the     agriculture, multi-line and credit/surety lines of business at the January     1, 2014 renewals. The increases were partially offset by cancellations and     renewal decreases in the property line of business. This sub-segment     reported a technical ratio of 87.6%, which included 17.3 points (or $68     million) of net favorable prior year loss development. For the first six     months of 2014, the North America sub-segment’s net premiums written were     up 14% primarily due to the same factors describing the second quarter and     due to the restructuring of a significant treaty in the agriculture line     of business. This sub-segment reported a technical ratio of 90.2%, which     included 12.0 points (or $92 million) of net favorable prior year loss     development.   *For the second quarter, the Global (Non-U.S.) P&C sub-segment’s net     premiums written were down 6%, or 7% on a constant foreign exchange basis,     primarily due to downward prior year premium adjustments in the motor line     of business and cancellations in the property line of business. These     decreases were partially offset by new business written in the motor line     of business. This sub-segment reported a technical ratio of 82.5%, which     included 16.2 points (or $30 million) of net favorable prior year loss     development. For the first six months of 2014, the Global (Non-U.S.) P&C     sub-segment’s net premiums written were down 3%, or 4% on a constant     foreign exchange basis, primarily driven by cancellations due to pricing,     increased retentions, and share decreases in the property line of     business. This sub-segment reported a technical ratio of 82.5%, which     included 21.0 points (or $77 million) of net favorable prior year loss     development.   *For the second quarter, the Global Specialty sub-segment’s net premiums     written were up 6%, or 4% on a constant foreign exchange basis, primarily     due to new business written in prior periods in the specialty casualty,     multi-line and agriculture lines of business. These increases were     partially offset by lower premium adjustments in the engineering line of     business and cancellations in the marine line of business. This     sub-segment reported a technical ratio of 90.7%, which included 17.1     points (or $69 million) of net favorable prior year loss development and     4.5 points (or $18 million) of net adverse prior quarter development. For     the first six months of 2014, the Global Specialty sub-segment’s net     premiums written were up 7%, or 6% on a constant foreign exchange basis,     primarily due to the same factors describing the second quarter. This     sub-segment reported a technical ratio of 85.3%, which included 16.9     points (or $128 million) of net favorable prior year loss development.   *For the second quarter, the Catastrophe sub-segment’s net premiums written     were down 9%, or 8% on a constant foreign exchange basis, primarily due to     the impact of reinstatement premiums related to the European and Canadian     floods in the second quarter of 2013. New business written during the     second quarter was offset by cancellations, non-renewals and the     restructuring of certain treaties. This sub-segment reported a technical     ratio of 46.4%, which included 10.2 points (or $6 million) of net adverse     prior year loss development. For the first six months of 2014, the     Catastrophe sub-segment’s net premiums written were down 13%, or 12% on a     constant foreign exchange basis, primarily due to the same factors     describing the second quarter. This sub-segment reported a technical ratio     of 10.5%, which included 20.2 points (or $28 million) of net favorable     prior year loss development.  Life and Health:    *For the second quarter, the Life and Health segment’s net premiums written     were up 34%, or 29% on a constant foreign exchange basis. The increase was     primarily driven by PartnerRe Health’s accident and health line of     business and, to a lesser extent, the mortality and longevity lines of     business. For the first six months of 2014, the Life and Health segment’s     net premiums written were up 23%, or 20% on a constant foreign exchange     basis, primarily due to the same factors describing the second quarter.   *For the second quarter, the Life and Health segment’s allocated     underwriting result, which includes allocated investment income and     operating expenses, decreased to $18 million compared to $19 million in     the same period of 2013 primarily due to a lower level of net favorable     prior year loss development, which was partially offset by increased     profitability from the PartnerRe Health business. For the first six months     of 2014, the Life and Health segment’s allocated underwriting result,     which includes allocated investment income and operating expenses,     decreased to $32 million compared to $35 million in the same period of     2013 primarily due to the same factors describing the second quarter.  Corporate and Other:    *For the second quarter, investment and capital markets activities     contributed income of $290 million to pre-tax net income, excluding     investment income allocated to the Life and Health segment. Of this     amount, income of $119 million was included in pre-tax operating earnings     and income of $171 million related to net realized and unrealized gains on     investments and earnings from equity method investee companies was     included in pre-tax non-operating earnings. For the first six months of     2014, investment and capital markets activities contributed income of $538     million to pre-tax net income, excluding investment income allocated to     the Life and Health segment. Of this amount, income of $219 million was     included in pre-tax operating earnings and income of $319 million related     to net realized and unrealized gains on investments and earnings from     equity method investee companies was included in pre-tax non-operating     earnings.  Separately, as announced by the Company earlier today, the Board of Directors declared a quarterly dividend of $0.67 per common share. The dividend will be payable on August29, 2014 to common shareholders of record on August18, 2014.  The Company has posted its second quarter 2014 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, July 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 (800)-533-7619 or, from outside the United States, by dialing (785)-830-1923. 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 method 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 method 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 December31, 2013, total revenues were $5.5 billion. At June30, 2014, total assets were $23.4 billion, total capital was $7.7 billion and total shareholders’ equity attributable to PartnerRe was $6.9 billion.  PartnerRe on the Internet: www.partnerre.com  Forward-looking statements contained in this press release are based on the Company’s assumptions and expectations concerning future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are subject to significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. PartnerRe’s forward-looking statements could be affected by numerous foreseeable and unforeseeable events and developments such as exposure to catastrophe, or other large property and casualty losses, credit, interest, currency and other risks associated with the Company’s investment portfolio, adequacy of reserves, levels and pricing of new and renewal business achieved, changes in accounting policies, risks associated with implementing business strategies, and other factors identified in the Company’s filings with the Securities and Exchange Commission. In light of the significant uncertainties inherent in the forward-looking information contained herein, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. The Company disclaims any obligation to publicly update or revise any forward-looking information or statements.  PartnerRe Ltd.  Consolidated Statements of Operations and Comprehensive Income (Loss)  (Expressed in thousands of U.S. dollars, except share and per share data)(Unaudited)                                                                               For the three   For the three   For the six     For the six                  months ended    months ended    months ended    months ended                  June 30, 2014   June 30, 2013   June 30, 2014   June 30, 2013 Revenues Gross premiums   $ 1,462,307    $ 1,340,582    $ 3,334,047    $ 3,097,467  written Net premiums     $ 1,418,665     $ 1,309,318     $ 3,157,159     $ 2,945,750 written Increase in unearned         (65,596     )   (100,682    )   (550,308    )   (590,434    ) premiums Net premiums     1,353,069       1,208,636       2,606,851       2,355,316 earned Net investment   129,967         124,503         246,834         248,207 income Net realized and unrealized   165,717         (299,215    )   307,888         (276,272    ) investment gains (losses) Other income     9,265          3,878          9,669          7,805        Total revenues   1,658,018      1,037,802      3,171,242      2,335,056    Expenses Losses and loss expenses and life         883,846         866,843         1,633,303       1,527,794 policy benefits Acquisition      302,573         241,743         567,181         475,942 costs Other operating        107,072         144,833         218,534         260,874 expenses ^(1) Interest         12,240          12,232          24,477          24,460 expense Amortization of intangible    7,003           7,045           14,005          14,091 assets Net foreign exchange         (2,023      )   10,584         (2,693      )   8,543        (gains) losses Total expenses   1,310,711      1,283,280      2,454,807      2,311,704    Income (loss) before taxes and interest in earnings      347,307         (245,478    )   716,435         23,352 (losses) of equity method investments Income tax expense          78,440          (74,569     )   140,746         (32,894     ) (benefit) Interest in earnings (losses) of      4,925          (3,479      )   10,989         3,736        equity method investments Net income       273,792         (174,388    )   586,678         59,982 (loss) Net income attributable to               (1,951      )   (1,183      )   (4,995      )   (1,183      ) noncontrolling interests Net income (loss)           271,841         (175,571    )   581,683         58,799 attributable to PartnerRe Preferred        14,184          14,796          28,367          29,494 dividends Loss on redemption of    —              —              —              9,135        preferred shares Net income (loss) attributable     $ 257,657      $ (190,367  )   $ 553,316      $ 20,170     to PartnerRe common shareholders Operating earnings attributable     $ 133,508      $ 51,055       $ 310,418      $ 253,144    to PartnerRe common shareholders Comprehensive income (loss)    $ 288,630      $ (187,445  )   $ 583,023      $ 27,858     attributable to PartnerRe Earnings and dividends per share data attributable to PartnerRe common shareholders: Basic operating        $ 2.66          $ 0.90          $ 6.09          $ 4.41 earnings Net realized and unrealized investment       2.46            (4.07       )   4.70            (3.79       ) gains (losses), net of tax Net foreign exchange         (0.06       )   (0.10       )   (0.08       )   (0.12       ) losses, net of tax Loss on redemption of    —               —               —               (0.16       ) preferred shares Interest in earnings (losses) of      0.07           (0.10       )   0.15           0.01         equity method investments, net of tax Basic net        $ 5.13         $ (3.37     )   $ 10.86        $ 0.35       income (loss) Weighted average number of common        50,241,216      56,485,882      50,942,980      57,449,528 shares outstanding Diluted operating        $ 2.60          $ 0.90          $ 5.97          $ 4.32 earnings ^(1) Net realized and unrealized investment       2.41            (4.07       )   4.61            (3.72       ) gains (losses), net of tax Net foreign exchange         (0.06       )   (0.10       )   (0.08       )   (0.11       ) losses, net of tax Loss on redemption of    —               —               —               (0.16       ) preferred shares Interest in earnings (losses) of      0.07           (0.10       )   0.14           0.01         equity method investments, net of tax Diluted net      $ 5.02         $ (3.37     )   $ 10.64        $ 0.34       income (loss) Weighted average number of common shares and       51,328,761      56,485,882      52,024,451      58,534,526 common share equivalents outstanding Dividends declared per     $ 0.67          $ 0.64          $ 1.34          $ 1.28 common share                                                                               ^(1) Expense and per share impacts, pre-tax, related to the restructuring of the Company's business support operations and Global Non-life operations: Expense related to       $ 2,482         $ 43,242        $ 1,655         $ 43,242 restructuring Per share impacts          $ 0.05          $ 0.77          $ 0.03          $ 0.74 related to restructuring  PartnerRe Ltd.  Consolidated Balance Sheets  (Expressed in thousands of U.S. dollars, except per share and parenthetical share and per share data)  (Unaudited)                                                                                                              June 30,         December 31,                                                2014             2013 Assets Investments: Fixed maturities, at fair value                $ 14,006,770     $ 13,593,303 Short-term investments, at fair value          31,849           13,546 Equities, at fair value                        1,253,082        1,221,053 Other invested assets                          293,127         320,981       Total investments                              15,584,828       15,148,883 Funds held – directly managed                  669,713          785,768 Cash and cash equivalents                      1,208,220        1,496,485 Accrued investment income                      170,508          185,717 Reinsurance balances receivable                3,015,727        2,465,713 Reinsurance recoverable on paid and unpaid     358,804          308,892 losses Funds held by reinsured companies              863,491          843,081 Deferred acquisition costs                     755,769          644,952 Deposit assets                                 95,133           351,905 Net tax assets                                 23,231           14,133 Goodwill                                       456,380          456,380 Intangible assets                              173,085          187,090 Other assets                                   71,584          149,296       Total assets                                   $ 23,446,473    $ 23,038,295  Liabilities Unpaid losses and loss expenses                $ 10,399,775     $ 10,646,318 Policy benefits for life and annuity           2,127,412        1,974,133 contracts Unearned premiums                              2,357,544        1,723,767 Other reinsurance balances payable             254,750          202,549 Deposit liabilities                            74,265           328,588 Net tax liabilities                            237,302          284,442 Accounts payable, accrued expenses and other   217,033          291,350 Debt related to senior notes                   750,000          750,000 Debt related to capital efficient notes        70,989          70,989        Total liabilities                              16,489,070      16,272,136    Shareholders’ Equity Common shares (par value $1.00; issued: 2014, 87,107,093 shares; 2013, 86,657,045      87,107           86,657 shares) Preferred shares (par value $1.00; issued and outstanding: 2014 and 2013, 34,150,000 shares;                                        34,150           34,150 aggregate liquidation value: 2014 and 2013, $853,750) Additional paid-in capital                     3,928,468        3,901,627 Accumulated other comprehensive loss           (10,898      )   (12,238      ) Retained earnings                              5,891,822        5,406,797 Common shares held in treasury, at cost (2014, 37,284,611 shares; 2013, 34,213,611     (3,020,602   )   (2,707,461   ) shares) Total shareholders’ equity attributable to     6,910,047        6,709,532 PartnerRe Noncontrolling interests                       47,356          56,627        Total shareholders’ equity                     6,957,403       6,766,159     Total liabilities and shareholders’ equity     $ 23,446,473    $ 23,038,295  Diluted Book Value Per Common Share and Common Share Equivalents Outstanding ^(1)      $ 118.96        $ 109.26      (2) Diluted Tangible Book Value Per Common Share and Common Share Equivalents Outstanding       $ 107.80        $ 98.49       ^(1) (2) Number of Common Shares and Common Share       50,910,028      53,596,034    Equivalents Outstanding ^(2)        Excludes the aggregate liquidation value of preferred shares (2014 and (1)  2013, $853,750) and noncontrolling interests (2014, $47,356; 2013,       $56,627). (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 June 30, 2014                          Global                                 Total       Life                North    (Non-U.S.)  Global     Catastrophe   Non-life    and       Corporate   Total                America   P&C          Specialty                 segment     Health    and Other                                                                             segment Gross premiums       $ 400     $  155       $  438      $   143       $ 1,136     $ 326     $   —       $ 1,462 written Net premiums   $ 392     $  148       $  432      $   136       $ 1,108     $ 311     $   —       $ 1,419 written (Increase) decrease in    (2    )   39          (26     )   (77      )    (66     )   —        —          (66     ) unearned premiums Net premiums   $ 390     $  187       $  406      $   59        $ 1,042     $ 311     $   —       $ 1,353 earned Losses and loss expenses and   (240  )   (103    )    (270    )   (19      )    (632    )   (252  )   —           (884    ) life policy benefits Acquisition    (102  )   (52     )    (98     )   (8       )    (260    )   (43   )   —          (303    ) costs Technical      $ 48      $  32        $  38       $   32        $ 150       $ 16      $   —       $ 166 result Other income                                                    1           3         5           9 Other operating                                                       (61     )   (16   )   (30    )    (107    ) expenses Underwriting                                                    $ 90        $ 3       n/a         $ 68 result Net investment                                                                  15       115        130      income Allocated underwriting                                                                $ 18      n/a         n/a result ^(1) Net realized and unrealized                                                                            166         166 investment gains Interest                                                                              (12    )    (12     ) expense Amortization of                                                                                    (7     )    (7      ) intangible assets Net foreign exchange                                                                              2           2 gains Income tax                                                                            (78    )    (78     ) expense Interest in earnings of equity                                                                                5          5        method investments Net income                                                                            n/a        $ 274    Loss ratio     61.5  %   54.6    %    66.5    %   33.4     %    60.6    % ^(2) Acquisition    26.1     27.9        24.2       13.0         25.0     ratio ^(3) Technical      87.6  %   82.5    %    90.7    %   46.4     %    85.6    % ratio ^(4) Other operating                                                       5.9      expense ratio ^(5) Combined                                                        91.5    % ratio ^(6)                                                                                                                           For the three months ended June 30, 2013                          Global                                 Total       Life                North     (Non-U.S.)   Global      Catastrophe   Non-life    and       Corporate   Total                America   P&C          Specialty                 segment     Health    and Other                                                                             segment Gross premiums       $ 372     $  160       $  413      $   161       $ 1,106     $ 233     $   2       $ 1,341 written Net premiums   $ 360     $  158       $  409      $   149       $ 1,076     $ 232     $   1       $ 1,309 written (Increase) decrease in    (3    )   11          (37     )   (70      )    (99     )   —        (1     )    (100    ) unearned premiums Net premiums   $ 357     $  169       $  372      $   79        $ 977       $ 232     $   —       $ 1,209 earned Losses and loss expenses and   (245  )   (106    )    (284    )   (51      )    (686    )   (181  )   —           (867    ) life policy benefits Acquisition    (79   )   (34     )    (90     )   (6       )    (209    )   (33   )   —          (242    ) costs Technical      $ 33      $  29        $  (2   )   $   22        $ 82        $ 18      $   —       $ 100 result Other income                                                    —           3         1           4 Other operating                                                       (60     )   (17   )   (68    )    (145    ) expenses Underwriting                                                    $ 22        $ 4       n/a         $ (41   ) result Net investment                                                                  15       110        125      income Allocated underwriting                                                                $ 19      n/a         n/a result ^(1) Net realized and unrealized                                                                            (299   )    (299    ) investment losses Interest                                                                              (12    )    (12     ) expense Amortization of                                                                                    (7     )    (7      ) intangible assets Net foreign exchange                                                                              (11    )    (11     ) losses Income tax                                                                            75          75 benefit Interest in losses of equity                                                                                (4     )    (4      ) method investments Net loss                                                                              n/a        $ (174  ) Loss ratio     68.6  %   62.9    %    76.6    %   64.1     %    70.3    % ^(2) Acquisition    22.1     19.9        24.1       8.5          21.4     ratio ^(3) Technical      90.7  %   82.8    %    100.7   %   72.6     %    91.7    % ratio ^(4) Other operating                                                       6.1      expense ratio ^(5) Combined                                                        97.8    % 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 six months ended June 30, 2014                          Global                                 Total       Life                North    (Non-U.S.)  Global     Catastrophe   Non-life    and       Corporate   Total                America   P&C          Specialty                 segment     Health    and Other                                                                             segment Gross premiums       $ 930     $  519       $  917      $  353        $ 2,719     $ 615     $   —       $ 3,334 written Net premiums   $ 919     $  508       $  822      $  315        $ 2,564     $ 593     $   —       $ 3,157 written Increase in unearned       (151  )   (141    )    (61     )   (177    )     (530    )   (20   )   —          (550    ) premiums Net premiums   $ 768     $  367       $  761      $  138        $ 2,034     $ 573     $   —       $ 2,607 earned Losses and loss expenses and   (499  )   (196    )    (471    )   1             (1,165  )   (468  )   —           (1,633  ) life policy benefits Acquisition    (194  )   (107    )    (178    )   (15     )     (494    )   (73   )   —          (567    ) costs Technical      $ 75      $  64        $  112      $  124        $ 375       $ 32      $   —       $ 407 result Other income                                                    2           4         4           10 Other operating                                                       (126    )   (34   )   (59    )    (219    ) expenses Underwriting                                                    $ 251       $ 2       n/a         $ 198 result Net investment                                                                  30       217        247      income Allocated underwriting                                                                $ 32      n/a         n/a result ^(1) Net realized and unrealized                                                                            308         308 investment gains Interest                                                                              (25    )    (25     ) expense Amortization of                                                                                    (14    )    (14     ) intangible assets Net foreign exchange                                                                              3           3 gains Income tax                                                                            (141   )    (141    ) expense Interest in earnings of equity                                                                                11         11       method investments Net income                                                                            n/a        $ 587    Loss ratio     65.0  %   53.5    %    61.9    %   (0.9    )%    57.3    % ^(2) Acquisition    25.2     29.0        23.4       11.4         24.3     ratio ^(3) Technical      90.2  %   82.5    %    85.3    %   10.5    %     81.6    % ratio ^(4) Other operating                                                       6.2      expense ratio ^(5) Combined                                                        87.8    % ratio ^(6)                                                                                                                           For the six months ended June 30, 2013                          Global                                 Total       Life                North     (Non-U.S.)   Global      Catastrophe   Non-life    and       Corporate   Total                America   P&C          Specialty                 segment     Health    and Other                                                                             segment Gross premiums       $ 819     $  532       $  857      $  399        $ 2,607     $ 486     $   4       $ 3,097 written Net premiums   $ 807     $  525       $  771      $  360        $ 2,463     $ 481     $   2       $ 2,946 written Increase in unearned       (117  )   (190    )    (62     )   (195    )     (564    )   (25   )   (2     )    (591    ) premiums Net premiums   $ 690     $  335       $  709      $  165        $ 1,899     $ 456     $   —       $ 2,355 earned Losses and loss expenses and   (485  )   (173    )    (469    )   (39     )     (1,166  )   (363  )   1           (1,528  ) life policy benefits Acquisition    (151  )   (84     )    (165    )   (17     )     (417    )   (59   )   —          (476    ) costs Technical      $ 54      $  78        $  75       $  109        $ 316       $ 34      $   1       $ 351 result Other income                                                    —           6         2           8 Other operating                                                       (126    )   (35   )   (100   )    (261    ) expenses Underwriting                                                    $ 190       $ 5       n/a         $ 98 result Net investment                                                                  30       218        248      income Allocated underwriting                                                                $ 35      n/a         n/a result ^(1) Net realized and unrealized                                                                            (276   )    (276    ) investment losses Interest                                                                              (24    )    (24     ) expense Amortization of                                                                                    (14    )    (14     ) intangible assets Net foreign exchange                                                                              (9     )    (9      ) losses Income tax                                                                            33          33 benefit Interest in earnings of equity                                                                                4          4        method investments Net income                                                                            n/a        $ 60     Loss ratio     70.2  %   51.8    %    66.1    %   23.8    %     61.4    % ^(2) Acquisition    21.9     24.9        23.3       10.5         22.0     ratio ^(3) Technical      92.1  %   76.7    %    89.4    %   34.3    %     83.4    % ratio ^(4) Other operating                                                       6.6      expense ratio ^(5) Combined                                                        90.0    % ratio ^(6)  Contact:  PartnerRe Ltd. Investor: Robin Sidders or Media: Celia Powell 441-292-0888 or Sard Verbinnen & Co Drew Brown/Daniel Goldstein 212-687-8080  
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