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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