EX-99.2 3 q42014exhibit992-supplement.htm EXHIBIT 99.2 Q42014Exhibit 99.2 - Supplement


 
 
Exhibit 99.2
 
 
                                    
 
  
PartnerRe Ltd.
Financial Supplement
Financial Information
as at December 31, 2014
(unaudited)
The following financial supplement is provided to assist in your understanding of
PartnerRe Ltd.
This report is for information purposes only. It should be read in conjunction with
documents filed with the SEC by PartnerRe Ltd., including the Company’s Annual
Report on Form 10-K and Quarterly Reports on Form 10-Q.
 





PartnerRe Ltd.
Financial Supplement - December 31, 2014
Table of Contents
 
Page
 
 
Regulation G
 
Life Value in Force
 
Consolidated Financial Statements
 
Consolidated Statements of Operations
Condensed Consolidated Balance Sheets
Condensed Consolidated Statements of Cash Flows
Consolidated Statements of Comprehensive Income
Segment Information
 
For the three months ended December 31, 2014 and 2013
For the years ended December 31, 2014 and 2013
Non-life segment
North America sub-segment
Global (Non-U.S.) P&C sub-segment
Global Specialty sub-segment
Catastrophe sub-segment
Life and Health segment
Corporate and Other
Distribution of Premiums
 
Distribution of Premiums by line of business, geography and production source
Distribution of Premiums by reinsurance type for the Non-life sub-segment
Investments
 
Investment Portfolio
Distribution of Corporate Bonds
Distribution of Equities
Distribution of Mortgage/Asset-Backed Securities
Other Invested Assets including Private Markets and Derivative Exposures
Funds Held - Directly Managed Portfolio
Distribution of Corporate Bonds - Funds Held - Directly Managed Portfolio
Composition of Net Investment Income and Net Realized and Unrealized Investment Gains (Losses)
Composition of Net Investment Income and Net Realized and Unrealized Investment Gains (Losses) on Funds Held - Directly Managed Portfolio
Loss Reserves
 
Analysis of Unpaid Losses and Loss Expenses
Analysis of Policy Benefits for Life and Annuity Contracts
Reserve Development
Natural Catastrophe Probable Maximum Losses (PMLs)
 
Single Occurrence Estimated Net PML Exposure
Impact of new methodology on Estimated Gross PML Exposure (April 1, 2014 only)
Reconciliation of GAAP and non-GAAP measures
Diluted Book Value per Common Share - Treasury Stock Method
Diluted Book Value and Diluted Tangible Book Value per Common Share - Rollforward




 
PartnerRe Ltd.
Regulation G
In addition to the GAAP financial measures set forth in this Financial Supplement, the Company has also included certain non-GAAP financial measures within the meaning of Regulation G. Management believes that these non-GAAP financial measures are important to investors, analysts, rating agencies and others who use the Company’s financial information and will help provide a consistent basis for comparison between quarters and for comparison with other companies within the industry. However, investors should consider these non-GAAP measures in addition to, and not as a substitute for, measures of financial performance prepared in accordance with GAAP.
The reconciliation of non-GAAP financial measures to the most comparable GAAP financial measures in accordance with Regulation G is included within the relevant tables.
Operating Earnings (Loss) attributable to PartnerRe Common Shareholders (Operating Earnings (Loss)), Diluted Operating Earnings (Loss) per Common Share and Annualized Operating Return on Beginning Diluted Book Value per Common Share and Common Share Equivalents Outstanding (Annualized Operating ROE): The Company uses Operating Earnings (Loss), Diluted Operating Earnings (Loss) per Common Share and Annualized Operating ROE to measure performance, as these measures focus on the underlying fundamentals of the Company’s operations. Operating Earnings (Loss) exclude the impact of net realized and unrealized gains and losses on investments, net of tax (except where the Company has made a strategic investment in an insurance or reinsurance related investee), net foreign exchange gains and losses, net of tax, loss on redemption of preferred shares, the interest in earnings (losses) of equity method investments, net of tax (except where the Company has made a strategic investment in an insurance or reinsurance related investee and where the Company does not control the investee’s activities) and certain withholding taxes on inter-company dividends (included in other expenses), net of tax, and are calculated after preferred dividends. The Company calculates Diluted Operating Earnings (Loss) per Common Share using Operating Earnings (Loss) for the period divided by the weighted average number of PartnerRe common shares and common share equivalents outstanding. The Company calculates Annualized Operating ROE using annualized Diluted Operating Earnings (Loss) per Common Share for the period divided by the Diluted Book Value per PartnerRe common share and common share equivalents outstanding as of the beginning of the year. Operating Earnings (Loss) and Diluted Operating Earnings (Loss) per Common Share should not be viewed as a substitute for Net Income (Loss) or Diluted Net Income (Loss) per Common Share prepared in accordance with GAAP. Annualized Operating ROE supplements GAAP information.
Tangible Book Value and Diluted Tangible Book Value per PartnerRe Common Share and Common Share Equivalents Outstanding: 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). Management believes annualized growth in Diluted Tangible Book Value per Common Share plus dividends aligns the Company’s stated long-term objectives with the measure most investors use to evaluate total shareholder value creation given that it focuses on the tangible value of total shareholder returns, excluding the impact of goodwill and intangibles.
Book Value and Tangible Book Value excluding Net Unrealized Gains and Losses on Fixed Income Securities and Funds Held - Directly Managed, Net of Tax (Book Value and Tangible Book Value excluding NURGL) and Diluted Book Value and Diluted Tangible Book Value per PartnerRe Common Share and Common Share Equivalents Outstanding (Diluted Book Value and Diluted Tangible Book Value per Common Share) excluding Net Unrealized Gains and Losses on Fixed Income Securities and Funds Held - Directly Managed, Net of Tax (Diluted Book Value and Diluted Tangible Book Value per Common Share excluding NURGL): The Company calculates Book Value and Tangible Book Value excluding NURGL using common shareholders’ equity attributable to PartnerRe and Tangible Book Value, respectively, less net unrealized gains and losses on fixed income securities and funds held - directly managed, net of tax. Book Value and Tangible Book Value excluding NURGL focuses on the underlying fundamentals of the Company’s financial position without the impact of interest rates and credit spreads on the unrealized gains and losses on fixed income securities and funds held - directly managed, net of tax. The Company calculates Diluted Book Value and Diluted Tangible Book Value per Common Share excluding NURGL divided by the number of common shares and common share equivalents outstanding.
Total Capital: The Company calculates Total Capital as the sum of common shareholders’ equity attributable to PartnerRe, preferred shares, long-term debt, senior notes and capital efficient notes. The Company uses Total Capital as a measure to manage the capital structure of the Company.
All references to per share data, per common share data, common shares and common share equivalent data, and common shareholders’ equity data throughout this Financial Supplement relates to PartnerRe Ltd.’s (PartnerRe) common shareholders.




 
PartnerRe Ltd.
Life Value In Force
The Company calculates Value in Force (VIF) for its Life portfolio, which represents the value of the Life portfolio that is not recognized in the Consolidated Balance Sheets prepared under generally accepted accounting principles in the United States (U.S. GAAP). Accordingly, there is no corresponding measure that is prepared in accordance with U.S. GAAP. Management believes that this is useful information for investors, analysts, rating agencies and others. The Life VIF calculation includes the business written in the Company’s Life and Health segment, except for the PartnerRe Health business.
The Company’s Life VIF calculation uses market consistent techniques, but primarily differs from a full Market Consistent Embedded Value (MCEV) calculation, as defined in the European Insurance CFO Forum MCEV principles, due to: (i) different methodologies used; and ii) the Life VIF is only a component of MCEV and, specifically, the tangible assets backing the liabilities are not considered in the Company’s calculation.
The Company’s Life VIF, which is calculated on a going concern basis, is the sum of:
•
present value of future profits - which is defined as the net present value of shareholders’ projected after-tax cash flows from the in-force business on a best-estimate assumption basis. The discount rates used reflect currency-specific market yields on zero coupon government bonds at given durations and are applied to projected deterministic cash flows and to calculate risk-free investment returns. The best-estimate is defined as median biometric assumptions and does not include any provision for adverse deviation. The Company attributes no value to future new business or renewals of short-term business. Allocated inflated-adjusted expenses are projected on a best estimate basis;
•
cost of non-hedgeable risks - which is defined as the cost of holding capital for non-hedgeable financial and non-hedgeable non-financial risks, such as a mortality deviation from shocks or changes in trends. The non-hedgeable risk capital has been determined using an internal economic capital model calibrated to a 99.6% Value at Risk (VaR) corresponding to a 1 in 250 year event;
•
frictional costs - which is defined as the cost of double taxation or investment management charges on assets backing required capital;
•
time value of options and guarantees (TVOG) - which is defined as the difference between the market value and the intrinsic value of the option calculated using stochastic techniques. The TVOG is significant to the guaranteed minimum death benefit (GMDB) portfolio where the Company covers death claims on savings plans, where the sum reinsured is the difference between the invested premium amount and the current fund value; and
•
cost of non-economic excess encumbered capital - which is defined as the cost of any encumbered capital in excess of economic capital required by local regulations.
Actuarial non-economic assumptions, such as current and future mortality, are based on the most recent experience available, combined with internal and industry benchmarks, including trend expectation where appropriate.
The Life VIF is sensitive to changes in assumptions. In particular, the Life VIF is sensitive to changes in yield curves that are used for discounting, changes in equity market value assumptions and implied volatilities.
The Company performs a detailed Life VIF calculation on an annual basis and performs a roll-forward approach on an interim quarterly basis.





PartnerRe Ltd.
Consolidated Statements of Operations
(Expressed in thousands of U.S. dollars, except share and per share data)
(Unaudited)
 
For the three months ended
 
 
For the year ended
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
 
December 31,
 
December 31,
 
2014
 
2014
 
2014
 
2014
 
2013
 
 
2014
 
2013
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross premiums written
$
1,236,676

 
$
1,361,280

 
$
1,462,307

 
$
1,871,740

 
$
1,190,761

 
 
$
5,932,003

 
$
5,569,706

Net premiums written
$
1,220,035

 
$
1,342,690

 
$
1,418,665

 
$
1,738,494

 
$
1,186,002

 
 
$
5,719,884

 
$
5,396,526

Decrease (increase) in unearned premiums
225,695

 
213,924

 
(65,596
)
 
(484,712
)
 
235,422

 
 
(110,689
)
 
(198,316
)
Net premiums earned
1,445,730

 
1,556,614

 
1,353,069

 
1,253,782

 
1,421,424

 
 
5,609,195

 
5,198,210

Net investment income
114,686

 
118,176

 
129,967

 
116,867

 
114,351

 
 
479,696

 
484,367

Net realized and unrealized investment gains (losses)
98,329

 
(34,420
)
 
165,717

 
142,172

 
99,419

 
 
371,796

 
(160,735
)
Other income
4,297

 
2,223

 
9,265

 
404

 
3,361

 
 
16,190

 
16,565

Total revenues
1,663,042

 
1,642,593

 
1,658,018

 
1,513,225

 
1,638,555

 
 
6,476,877

 
5,538,407

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Losses and loss expenses and life policy benefits
869,923

 
959,543

 
883,846

 
749,457

 
879,014

 
 
3,462,770

 
3,157,808

Acquisition costs
324,884

 
321,756

 
302,573

 
264,608

 
318,738

 
 
1,213,822

 
1,077,628

Other expenses (1) (2)
122,539

 
108,615

 
107,072

 
111,462

 
131,125

 
 
449,688

 
500,466

Interest expense
12,244

 
12,241

 
12,240

 
12,238

 
12,236

 
 
48,963

 
48,929

Amortization of intangible assets
6,479

 
7,003

 
7,003

 
7,002

 
6,044

 
 
27,486

 
27,180

Net foreign exchange (gains) losses
(7,301
)
 
(8,206
)
 
(2,023
)
 
(670
)
 
8,382

 
 
(18,201
)
 
18,203

Total expenses
1,328,768

 
1,400,952

 
1,310,711

 
1,144,097

 
1,355,539

 
 
5,184,528

 
4,830,214

Income before taxes and interest in (losses) earnings of equity method investments
334,274

 
241,641

 
347,307

 
369,128

 
283,016

 
 
1,292,349

 
708,193

Income tax expense
53,143

 
45,617

 
78,440

 
62,305

 
11,078

 
 
239,506

 
48,416

Interest in (losses) earnings of equity method investments
(1,013
)
 
5,294

 
4,925

 
6,064

 
3,988

 
 
15,270

 
13,665

Net income
280,118

 
201,318

 
273,792

 
312,887

 
275,926

 
 
1,068,113

 
673,442

Net income attributable to noncontrolling interests
(3,225
)
 
(4,920
)
 
(1,951
)
 
(3,044
)
 
(4,138
)
 
 
(13,139
)
 
(9,434
)
Net income attributable to PartnerRe
276,893

 
196,398

 
271,841

 
309,843

 
271,788

 
 
1,054,974

 
664,008

Preferred dividends
14,184

 
14,184

 
14,184

 
14,184

 
14,184

 
 
56,735

 
57,861

Loss on redemption of preferred shares
—

 
—

 
—

 
—

 
—

 
 
—

 
9,135

Net income attributable to PartnerRe common shareholders
$
262,709

 
$
182,214

 
$
257,657

 
$
295,659

 
$
257,604

 
 
$
998,239

 
$
597,012

Operating earnings attributable to PartnerRe common shareholders
$
218,340

 
$
226,660

 
$
133,508

 
$
176,910

 
$
157,405

 
 
$
755,418

 
$
721,733

Comprehensive income attributable to PartnerRe
$
251,528

 
$
198,578

 
$
288,630

 
$
294,394

 
$
265,577

 
 
$
1,033,129

 
$
641,173

Earnings and dividends per share data attributable to PartnerRe common shareholders:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic operating earnings
$
4.48

 
$
4.58

 
$
2.66

 
$
3.43

 
$
2.97

 
 
$
15.10

 
$
13.03

Net realized and unrealized investment gains (losses), net of tax
1.69

 
(0.72
)
 
2.46

 
2.24

 
1.73

 
 
5.73

 
(2.30
)
Net foreign exchange (losses) gains, net of tax
(0.61
)
 
(0.24
)
 
(0.06
)
 
(0.02
)
 
0.07

 
 
(0.92
)
 
0.05

Loss on redemption of preferred shares
—

 
—

 
—

 
—

 
—

 
 
—

 
(0.16
)
Interest in (losses) earnings of equity method investments, net of tax
(0.04
)
 
0.06

 
0.07

 
0.07

 
0.09

 
 
0.17

 
0.16

Withholding tax on inter-company dividends, net of tax (2)
(0.13
)
 
—

 
—

 
—

 
—

 
 
(0.12
)
 
—

Basic net income
$
5.39

 
$
3.68

 
$
5.13

 
$
5.72

 
$
4.86

 
 
$
19.96

 
$
10.78

Weighted average number of common shares outstanding
48,707,096

 
49,514,980

 
50,241,216

 
51,652,177

 
53,013,136

 
 
50,019,480

 
55,378,980

Diluted operating earnings (1)
$
4.37

 
$
4.47

 
$
2.60

 
$
3.36

 
$
2.91

 
 
$
14.76

 
$
12.79

Net realized and unrealized investment gains (losses), net of tax
1.64

 
(0.70
)
 
2.41

 
2.20

 
1.70

 
 
5.60

 
(2.25
)
Net foreign exchange (losses) gains, net of tax
(0.60
)
 
(0.23
)
 
(0.06
)
 
(0.02
)
 
0.07

 
 
(0.90
)
 
0.04

Loss on redemption of preferred shares
—

 
—

 
—

 
—

 
—

 
 
—

 
(0.16
)
Interest in (losses) earnings of equity method investments, net of tax
(0.03
)
 
0.06

 
0.07

 
0.07

 
0.08

 
 
0.17

 
0.16

Withholding tax on inter-company dividends, net of tax (2)
(0.12
)
 
—

 
—

 
—

 
—

 
 
(0.12
)
 
—

Diluted net income
$
5.26

 
$
3.60

 
$
5.02

 
$
5.61

 
$
4.76

 
 
$
19.51

 
$
10.58

Weighted average number of common shares and common share equivalents outstanding
49,958,224

 
50,681,325

 
51,328,761

 
52,727,573

 
54,165,736

 
 
51,174,225

 
56,448,105

Dividends declared per common share
$
0.67

 
$
0.67

 
$
0.67

 
$
0.67

 
$
0.64

 
 
$
2.68

 
$
2.56

(1) Includes an expense related to the restructuring of the Company’s business support operations and Global Non-life operations. See page 15 for the expense and per share data.
(2) Withholding taxes on certain inter-company dividends are included in other expenses.

1


PartnerRe Ltd.
Condensed Consolidated Balance Sheets
(Expressed in thousands of U.S. dollars, except share and per share data)
(Unaudited)
 
 
December 31,
 
 
September 30,
 
 
June 30,
 
 
March 31,
 
 
December 31,
 
 
 
December 31,
 
 
 
2014
 
 
2014
 
 
2014
 
 
2014
 
 
2013
 
 
 
2012
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total investments
 
$
15,299,764

 
 
$
15,288,212

 
 
$
15,584,828

 
 
$
15,479,461

 
 
$
15,148,883

 
 
 
$
15,973,230

 
Funds held - directly managed
 
608,853

 
 
650,374

 
 
669,713

 
 
764,386

 
 
785,768

 
 
 
930,741

 
Cash and cash equivalents
 
1,313,468

 
 
1,519,287

 
 
1,208,220

 
 
1,269,037

 
 
1,496,485

 
 
 
1,121,705

 
Accrued investment income
 
158,737

 
 
171,050

 
 
170,508

 
 
190,169

 
 
185,717

 
 
 
184,315

 
Reinsurance balances receivable
 
2,454,850

 
 
2,974,668

 
 
3,015,727

 
 
3,064,301

 
 
2,465,713

 
 
 
1,991,991

 
Reinsurance recoverable on paid and unpaid losses
 
246,158

 
 
317,071

 
 
358,804

 
 
362,149

 
 
308,892

 
 
 
348,086

 
Funds held by reinsured companies
 
765,905

 
 
808,686

 
 
863,491

 
 
849,256

 
 
843,081

 
 
 
805,489

 
Deferred acquisition costs
 
661,186

 
 
707,481

 
 
755,769

 
 
725,584

 
 
644,952

 
 
 
568,391

 
Goodwill
 
456,380

 
 
456,380

 
 
456,380

 
 
456,380

 
 
456,380

 
 
 
456,380

 
Intangible assets
 
159,604

 
 
166,083

 
 
173,085

 
 
180,088

 
 
187,090

 
 
 
214,270

 
Other assets
 
145,452

 
 
148,051

 
 
189,948

 
 
176,692

 
 
515,334

 
 
 
385,834

 
Total assets
 
$
22,270,357

 
 
$
23,207,343

 
 
$
23,446,473

 
 
$
23,517,503

 
 
$
23,038,295

 
 
 
$
22,980,432

 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unpaid losses and loss expenses
 
$
9,745,806

 
 
$
10,264,001

 
 
$
10,399,775

 
 
$
10,529,717

 
 
$
10,646,318

 
 
 
$
10,709,371

 
Policy benefits for life and annuity contracts
 
2,050,107

 
 
2,113,463

 
 
2,127,412

 
 
2,118,479

 
 
1,974,133

 
 
 
1,813,244

 
Unearned premiums
 
1,750,607

 
 
2,048,550

 
 
2,357,544

 
 
2,299,250

 
 
1,723,767

 
 
 
1,534,625

 
Other reinsurance balances payable
 
182,395

 
 
237,175

 
 
254,750

 
 
269,487

 
 
202,549

 
 
 
238,578

 
Debt obligations
 
820,989

 
 
820,989

 
 
820,989

 
 
820,989

 
 
820,989

 
 
 
820,989

 
Other liabilities
 
616,042

 
 
656,909

 
 
528,600

 
 
638,982

 
 
904,380

 
 
 
930,129

 
Total liabilities
 
15,165,946

 
 
16,141,087

 
 
16,489,070

 
 
16,676,904

 
 
16,272,136

 
 
 
16,046,936

 
Total shareholders’ equity attributable to PartnerRe
 
7,048,910

 
 
7,013,980

 
 
6,910,047

 
 
6,780,928

 
 
6,709,532

 
 
 
6,933,496

 
Noncontrolling interests
 
55,501

 
 
52,276

 
 
47,356

 
 
59,671

 
 
56,627

 
 
 
—

 
Total shareholders’ equity
 
7,104,411

 
 
7,066,256

 
 
6,957,403

 
 
6,840,599

 
 
6,766,159

 
 
 
6,933,496

 
Total liabilities and shareholders’ equity
 
$
22,270,357

 
 
$
23,207,343

 
 
$
23,446,473

 
 
$
23,517,503

 
 
$
23,038,295

 
 
 
$
22,980,432

 
Diluted Book Value Per Common Share
 
$
126.21

 
 
$
121.95

 
 
$
118.96

 
 
$
114.13

 
 
$
109.26

 
 
 
$
100.84

 
Diluted Tangible Book Value Per Common Share
 
$
114.76

 
 
$
110.75

 
 
$
107.80

 
 
$
103.10

 
 
$
98.49

 
 
 
$
90.86

 
Number of Common Shares and Common Share Equivalents Outstanding
 
49,087,412

 
 
50,513,695

 
 
50,910,028

 
 
51,935,217

 
 
53,596,034

 
 
 
59,893,366

 
Capital Structure:


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior notes (1)

$
750,000

9
%
 
$
750,000

9
%
 
$
750,000

10
%
 
$
750,000

10
%
 
$
750,000

10
%
 
 
$
750,000

10
%
Capital efficient notes (2)

63,384

1

 
63,384

1

 
63,384

1

 
63,384

1

 
63,384

1

 
 
63,384

1

Preferred shares, aggregate liquidation value

853,750

11

 
853,750

11

 
853,750

11

 
853,750

11

 
853,750

11

 
 
893,750

11

Common shareholders’ equity attributable to PartnerRe

6,195,160

79

 
6,160,230

79

 
6,056,297

78

 
5,927,178

78

 
5,855,782

78

 
 
6,039,746

78

Total Capital

$
7,862,294

100
%
 
$
7,827,364

100
%
 
$
7,723,431

100
%
 
$
7,594,312

100
%
 
$
7,522,916

100
%
 
 
$
7,746,880

100
%
(1)
 PartnerRe Finance A LLC and PartnerRe Finance B LLC, the issuers of the senior notes, do not meet U.S. GAAP consolidation requirements. Accordingly, the Company shows the related intercompany debt of $250.0 million and $500.0 million, respectively, on its Condensed Consolidated Balance Sheets.
(2)
PartnerRe Finance II, the issuer of the capital efficient notes, does not meet U.S. GAAP consolidation requirements. Accordingly, the Company shows the related intercompany debt of $71.0 million on its Condensed Consolidated Balance Sheets.

2


PartnerRe Ltd.
Condensed Consolidated Statements of Cash Flows
(Expressed in millions of U.S. dollars)
(Unaudited)
 
 
 
For the three months ended
 
 
For the year ended
 
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
 
December 31,
 
December 31,
 
 
2014
 
2014
 
2014
 
2014
 
2013
 
 
2014
 
2013
Net cash provided by operating activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Underwriting operations
 
$
158

 
$
240

 
$
66

 
$
33

 
$
133

 
 
$
497

 
$
337

Investment income
 
147

 
140

 
176

 
142

 
138

 
 
606

 
637

Taxes and foreign exchange
 
(36
)
 
(18
)
 
(100
)
 
(96
)
 
(27
)
 
 
(250
)
 
(147
)
Net cash provided by operating activities
 
$
269

 
$
362

 
$
142

 
$
79

 
$
244

 
 
$
853

 
$
827

Net cash provided by operating activities
 
$
269

 
$
362

 
$
142

 
$
79

 
$
244

 
 
$
853

 
$
827

Net cash (used in) provided by investing activities
 
(247
)
 
84

 
(15
)
 
(71
)
 
(167
)
 
 
(250
)
 
418

Net cash used in financing activities
 
(215
)
 
(99
)
 
(189
)
 
(232
)
 
(130
)
 
 
(736
)
 
(866
)
Effect of foreign exchange rate changes on cash
 
(13
)
 
(36
)
 
1

 
(3
)
 
(2
)
 
 
(50
)
 
(5
)
(Decrease) increase in cash and cash equivalents
 
(206
)
 
311

 
(61
)
 
(227
)
 
(55
)
 
 
(183
)
 
374

Cash and cash equivalents - beginning of period
 
1,519

 
1,208

 
1,269

 
1,496

 
1,551

 
 
1,496

 
1,122

Cash and cash equivalents - end of period
 
$
1,313

 
$
1,519

 
$
1,208

 
$
1,269

 
$
1,496

 
 
$
1,313

 
$
1,496



3


PartnerRe Ltd.
Consolidated Statements of Comprehensive Income
(Expressed in thousands of U.S. dollars)
(Unaudited)
 
 
For the three months ended
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
2014
 
2014
 
2014
 
2014
 
2013
Net income attributable to PartnerRe
$
276,893

 
$
196,398

 
$
271,841

 
$
309,843

 
$
271,788

Change in currency translation adjustment
(12,101
)
 
1,412

 
17,020

 
(15,223
)
 
(14,866
)
Change in net unrealized gains or losses on investments, net of tax
(218
)
 
(221
)
 
(222
)
 
(225
)
 
(226
)
Change in unfunded pension obligation, net of tax
(13,046
)
 
989

 
(9
)
 
(1
)
 
8,881

Comprehensive income attributable to PartnerRe
$
251,528

 
$
198,578

 
$
288,630

 
$
294,394

 
$
265,577



 
 
For the year ended
 
December 31,
 
December 31,
 
2014
 
2013
Net income attributable to PartnerRe
$
1,054,974

 
$
664,008

Change in currency translation adjustment
(8,892
)
 
(31,778
)
Change in net unrealized gains or losses on investments, net of tax
(886
)
 
(918
)
Change in unfunded pension obligation, net of tax
(12,067
)
 
9,861

Comprehensive income attributable to PartnerRe
$
1,033,129

 
$
641,173



4



PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
For the three months ended December 31, 2014
 
North
America
 
Global
(Non-U.S.)
P&C
 
Global
Specialty
 
Catastrophe
 
Total  Non-life  segment
 
Life  and Health
segment
 
Corporate
and Other
 
Total
Gross premiums written
$
340

 
$
122

 
$
448

 
$
13

 
$
923

 
$
314

 
$
—

 
$
1,237

Net premiums written
$
338

 
$
122

 
$
446

 
$
11

 
$
917

 
302

 
$
1

 
$
1,220

Decrease (increase) in unearned premiums
67

 
78

 
(16
)
 
81

 
210

 
16

 
—

 
226

Net premiums earned
$
405

 
$
200

 
$
430

 
$
92

 
$
1,127

 
$
318

 
$
1

 
$
1,446

Losses and loss expenses and life policy benefits
(253
)
 
(119
)
 
(213
)
 
(24
)
 
(609
)
 
(261
)
 
—

 
(870
)
Acquisition costs
(102
)
 
(60
)
 
(117
)
 
(9
)
 
(288
)
 
(37
)
 
—

 
(325
)
Technical result
$
50

 
$
21

 
$
100

 
$
59

 
$
230

 
$
20

 
$
1

 
$
251

Other income
 
 
 
 
 
 
 
 
2

 
2

 
—

 
4

Other expenses
 
 
 
 
 
 
 
 
(65
)
 
(17
)
 
(41
)
 
(123
)
Underwriting result
 
 
 
 
 
 
 
 
$
167

 
$
5

 
n/a

 
$
132

Net investment income
 
 
 
 
 
 
 
 
 
 
16

 
99

 
115

Allocated underwriting result (1)
 
 
 
 
 
 
 
 
 
 
$
21

 
n/a

 
n/a

Net realized and unrealized investment gains
 
 
 
 
 
 
 
 
 
 
 
 
98

 
98

Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
(12
)
 
(12
)
Amortization of intangible assets
 
 
 
 
 
 
 
 
 
 
 
 
(6
)
 
(6
)
Net foreign exchange gains
 
 
 
 
 
 
 
 
 
 
 
 
7

 
7

Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
(53
)
 
(53
)
Interest in losses of equity method investments
 
 
 
 
 
 
 
 
 
 
 
 
(1
)
 
(1
)
Net income
 
 
 
 
 
 
 
 
 
 
 
 
n/a

 
$
280

Loss ratio (2)
62.5
%
 
59.4
%
 
49.5
%
 
26.5
%
 
54.1
%
 
 
 
 
 
 
Acquisition ratio (3)
25.1

 
29.9

 
27.4

 
9.1

 
25.5

 
 
 
 
 
 
Technical ratio (4)
87.6
%
 
89.3
%
 
76.9
%
 
35.6
%
 
79.6
%
 
 
 
 
 
 
Other expense ratio (5)
 
 
 
 
 
 
 
 
5.7

 
 
 
 
 
 
Combined ratio (6)
 
 
 
 
 
 
 
 
85.3
%
 
 
 
 
 
 
 
(1)
Allocated underwriting result is defined as net premiums earned, other income or loss and allocated net investment income less life policy benefits, acquisition costs and other 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 expense ratio is obtained by dividing other expenses by net premiums earned.
(6)
Combined ratio is defined as the sum of the technical ratio and the other expense ratio.

5


PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
 
For the three months ended December 31, 2013
 
North
America
 
Global
(Non-U.S.)
P&C
 
Global
Specialty
 
Catastrophe
 
Total  Non-life  segment
 
Life  and Health
segment
 
Corporate
and Other
 
Total
Gross premiums written
$
372

 
$
128

 
$
423

 
$
18

 
$
941

 
$
250

 
$
—

 
$
1,191

Net premiums written
$
372

 
$
128

 
$
419

 
$
18

 
$
937

 
$
249

 
$
—

 
$
1,186

Decrease (increase) in unearned premiums
45

 
85

 
(4
)
 
99

 
225

 
9

 
1

 
235

Net premiums earned
$
417

 
$
213

 
$
415

 
$
117

 
$
1,162

 
$
258

 
$
1

 
$
1,421

 Losses and loss expenses and life policy benefits
(293
)
 
(110
)
 
(223
)
 
(51
)
 
(677
)
 
(202
)
 
—

 
(879
)
Acquisition costs
(98
)
 
(62
)
 
(105
)
 
(11
)
 
(276
)
 
(42
)
 
—

 
(318
)
Technical result
$
26

 
$
41

 
$
87

 
$
55

 
$
209

 
$
14

 
$
1

 
$
224

Other income
 
 
 
 
 
 
 
 
—

 
3

 
—

 
3

Other expenses
 
 
 
 
 
 
 
 
(70
)
 
(19
)
 
(42
)
 
(131
)
Underwriting result
 
 
 
 
 
 
 
 
$
139

 
$
(2
)
 
n/a

 
$
96

Net investment income
 
 
 
 
 
 
 
 
 
 
15

 
99

 
114

Allocated underwriting result (1)
 
 
 
 
 
 
 
 
 
 
$
13

 
n/a

 
n/a

Net realized and unrealized investment gains
 
 
 
 
 
 
 
 
 
 
 
 
99

 
99

Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
(12
)
 
(12
)
Amortization of intangible assets
 
 
 
 
 
 
 
 
 
 
 
 
(6
)
 
(6
)
Net foreign exchange losses
 
 
 
 
 
 
 
 
 
 
 
 
(8
)
 
(8
)
Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
(11
)
 
(11
)
Interest in earnings of equity method investments
 
 
 
 
 
 
 
 
 
 
 
 
4

 
4

Net income
 
 
 
 
 
 
 
 
 
 
 
 
n/a

 
$
276

Loss ratio (2)
70.2
%
 
51.5
%
 
53.8
%
 
43.2
%
 
58.2
%
 
 
 
 
 
 
Acquisition ratio (3)
23.5

 
29.4

 
25.2

 
9.5

 
23.8

 
 
 
 
 
 
Technical ratio (4)
93.7
%
 
80.9
%
 
79.0
%
 
52.7
%
 
82.0
%
 
 
 
 
 
 
Other expense ratio (5)
 
 
 
 
 
 
 
 
6.0

 
 
 
 
 
 
Combined ratio (6)
 
 
 
 
 
 
 
 
88.0
%
 
 
 
 
 
 


6


PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
 
For the year ended December 31, 2014
 
North
America
 
Global
(Non-U.S.)
P&C
 
Global
Specialty
 
Catastrophe
 
Total  Non-life  segment
 
Life  and Health
segment
 
Corporate
and Other
 
Total
Gross premiums written
$
1,642

 
$
803

 
$
1,797

 
$
425

 
$
4,667

 
$
1,265

 
$
—

 
$
5,932

Net premiums written
$
1,630

 
$
794

 
$
1,696

 
$
380

 
$
4,500

 
$
1,220

 
$
—

 
$
5,720

(Increase) decrease in unearned premiums
(33
)
 
(26
)
 
(58
)
 
4

 
(113
)
 
2

 
—

 
(111
)
Net premiums earned
$
1,597

 
$
768

 
$
1,638

 
$
384

 
$
4,387

 
$
1,222

 
$
—

 
$
5,609

Losses and loss expenses and life policy benefits
(1,000
)
 
(438
)
 
(963
)
 
(62
)
 
(2,463
)
 
(1,000
)
 
—

 
(3,463
)
Acquisition costs
(401
)
 
(222
)
 
(400
)
 
(42
)
 
(1,065
)
 
(149
)
 
—

 
(1,214
)
Technical result
$
196

 
$
108

 
$
275

 
$
280

 
$
859

 
$
73

 
$
—

 
$
932

Other income
 
 
 
 
 
 
 
 
3

 
8

 
5

 
16

Other expenses
 
 
 
 
 
 
 
 
(252
)
 
(68
)
 
(130
)
 
(450
)
Underwriting result
 
 
 
 
 
 
 
 
$
610

 
$
13

 
n/a

 
$
498

Net investment income
 
 
 
 
 
 
 
 
 
 
60

 
420

 
480

Allocated underwriting result (1)
 
 
 
 
 
 
 
 
 
 
$
73

 
n/a

 
n/a

Net realized and unrealized investment gains
 
 
 
 
 
 
 
 
 
 
 
 
372

 
372

Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
(49
)
 
(49
)
Amortization of intangible assets
 
 
 
 
 
 
 
 
 
 
 
 
(27
)
 
(27
)
Net foreign exchange gains
 
 
 
 
 
 
 
 
 
 
 
 
18

 
18

Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
(239
)
 
(239
)
Interest in earnings of equity method investments
 
 
 
 
 
 
 
 
 
 
 
 
15

 
15

Net income
 
 
 
 
 
 
 
 
 
 
 
 
n/a

 
$
1,068

Loss ratio (2)
62.6
%
 
57.0
%
 
58.8
%
 
16.1
%
 
56.1
%
 
 
 
 
 
 
Acquisition ratio (3)
25.1

 
28.9

 
24.4

 
11.0

 
24.3

 
 
 
 
 
 
Technical ratio (4)
87.7
%
 
85.9
%
 
83.2
%
 
27.1
%
 
80.4
%
 
 
 
 
 
 
Other expense ratio (5)
 
 
 
 
 
 
 
 
5.8

 
 
 
 
 
 
Combined ratio (6)
 
 
 
 
 
 
 
 
86.2
%
 
 
 
 
 
 
 


7


PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
 
For the year ended December 31, 2013
 
North
America
 
Global
(Non-U.S.)
P&C
 
Global
Specialty
 
Catastrophe
 
Total  Non-life  segment
 
Life  and Health
segment
 
Corporate
and Other
 
Total
Gross premiums written
$
1,601

 
$
818

 
$
1,676

 
$
495

 
$
4,590

 
$
972

 
$
8

 
$
5,570

Net premiums written
$
1,587

 
$
811

 
$
1,579

 
$
450

 
$
4,427

 
$
964

 
$
6

 
$
5,397

(Increase) decrease in unearned premiums
(54
)
 
(68
)
 
(73
)
 
3

 
(192
)
 
(7
)
 
—

 
(199
)
Net premiums earned
$
1,533

 
$
743

 
$
1,506

 
$
453

 
$
4,235

 
$
957

 
$
6

 
$
5,198

Losses and loss expenses and life policy benefits
(975
)
 
(373
)
 
(920
)
 
(132
)
 
(2,400
)
 
(760
)
 
2

 
(3,158
)
Acquisition costs
(351
)
 
(196
)
 
(362
)
 
(44
)
 
(953
)
 
(125
)
 
—

 
(1,078
)
Technical result
$
207

 
$
174

 
$
224

 
$
277

 
$
882

 
$
72

 
$
8

 
$
962

Other income
 
 
 
 
 
 
 
 
3

 
11

 
3

 
17

Other expenses
 
 
 
 
 
 
 
 
(259
)
 
(71
)
 
(170
)
 
(500
)
Underwriting result
 
 
 
 
 
 
 
 
$
626

 
$
12

 
n/a

 
$
479

Net investment income
 
 
 
 
 
 
 
 
 
 
61

 
423

 
484

Allocated underwriting result (1)
 
 
 
 
 
 
 
 
 
 
$
73

 
n/a

 
n/a

Net realized and unrealized investment losses
 
 
 
 
 
 
 
 
 
 
 
 
(161
)
 
(161
)
Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
(49
)
 
(49
)
Amortization of intangible assets
 
 
 
 
 
 
 
 
 
 
 
 
(27
)
 
(27
)
Net foreign exchange losses
 
 
 
 
 
 
 
 
 
 
 
 
(18
)
 
(18
)
Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
(49
)
 
(49
)
Interest in earnings of equity method investments
 
 
 
 
 
 
 
 
 
 
 
 
14

 
14

Net income
 
 
 
 
 
 
 
 
 
 
 
 
n/a

 
$
673

Loss ratio (2)
63.6
%
 
50.2
%
 
61.1
%
 
29.0
%
 
56.7
%
 
 
 
 
 
 
Acquisition ratio (3)
22.9

 
26.4

 
24.0

 
9.7

 
22.5

 
 
 
 
 
 
Technical ratio (4)
86.5
%
 
76.6
%
 
85.1
%
 
38.7
%
 
79.2
%
 
 
 
 
 
 
Other expense ratio (5)
 
 
 
 
 
 
 
 
6.1

 
 
 
 
 
 
Combined ratio (6)
 
 
 
 
 
 
 
 
85.3
%
 
 
 
 
 
 


8


PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Non-life segment
 
 
For the three months ended
 
 
For the year ended
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
 
December 31,
 
December 31,
 
2014 (A)
 
2014
 
2014
 
2014
 
2013
 
 
2014 (A)
 
2013
Gross premiums written
$
923

 
$
1,025

 
$
1,136

 
$
1,583

 
$
941

 
 
$
4,667

 
$
4,590

Net premiums written
$
917

 
$
1,019

 
$
1,108

 
$
1,456

 
$
937

 
 
$
4,500

 
$
4,427

Net premiums earned
$
1,127

 
$
1,227

 
$
1,042

 
$
992

 
$
1,162

 
 
$
4,387

 
$
4,235

Losses and loss expenses
(609
)
 
(688
)
 
(632
)
 
(534
)
 
(677
)
 
 
(2,463
)
 
(2,400
)
Acquisition costs
(288
)
 
(284
)
 
(260
)
 
(233
)
 
(276
)
 
 
(1,065
)
 
(953
)
Technical result
$
230

 
$
255

 
$
150

 
$
225

 
$
209

 
 
$
859

 
$
882

Other income (loss)
2

 
(1
)
 
1

 
1

 
—

 
 
3

 
3

Other expenses
(65
)
 
(62
)
 
(61
)
 
(65
)
 
(70
)
 
 
(252
)
 
(259
)
Underwriting result
$
167

 
$
192

 
$
90

 
$
161

 
$
139

 
 
$
610

 
$
626

Loss ratio (2)
54.1
%
 
56.1
%
 
60.6
%
 
53.8
%
 
58.2
%
 
 
56.1
%
 
56.7
%
Acquisition ratio (3)
25.5

 
23.1

 
25.0

 
23.6

 
23.8

 
 
24.3

 
22.5

Technical ratio (4)
79.6
%
 
79.2
%
 
85.6
%
 
77.4
%
 
82.0
%
 
 
80.4
%
 
79.2
%
Other expense ratio (5)
5.7

 
5.0

 
5.9

 
6.5

 
6.0

 
 
5.8

 
6.1

Combined ratio (6)
85.3
%
 
84.2
%
 
91.5
%
 
83.9
%
 
88.0
%
 
 
86.2
%
 
85.3
%
 
(A)
Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended December 31, 2014, net premiums written and net premiums earned include foreign exchange impacts of $(14.0) million and $(21.9) million, respectively, compared to the three months ended December 31, 2013. For the year ended December 31, 2014, net premiums written and net premiums earned include foreign exchange impacts of $(5.8) million and $(16.9) million, respectively, compared to the year ended December 31, 2013.


9


PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
North America sub-segment
 
 
For the three months ended
 
 
For the year ended
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
 
December 31,
 
December 31,
 
2014 (A)
 
2014
 
2014
 
2014
 
2013
 
 
2014 (A)
 
2013
Gross premiums written
$
340

 
$
372

 
$
400

 
$
530

 
$
372

 
 
$
1,642

 
$
1,601

Net premiums written
$
338

 
$
372

 
$
392

 
$
527

 
$
372

 
 
$
1,630

 
$
1,587

Net premiums earned
$
405

 
$
424

 
$
390

 
$
379

 
$
417

 
 
$
1,597

 
$
1,533

Losses and loss expenses
(253
)
 
(247
)
 
(240
)
 
(260
)
 
(293
)
 
 
(1,000
)
 
(975
)
Acquisition costs
(102
)
 
(106
)
 
(102
)
 
(92
)
 
(98
)
 
 
(401
)
 
(351
)
Technical result
$
50

 
$
71

 
$
48

 
$
27

 
$
26

 
 
$
196

 
$
207

Loss ratio (2)
62.5
%
 
58.2
%
 
61.5
%
 
68.6
%
 
70.2
%
 
 
62.6
%
 
63.6
%
Acquisition ratio (3)
25.1

 
24.9

 
26.1

 
24.3

 
23.5

 
 
25.1

 
22.9

Technical ratio (4)
87.6
%
 
83.1
%
 
87.6
%
 
92.9
%
 
93.7
%
 
 
87.7
%
 
86.5
%
Distribution of Net Premiums Written by Major Lines of Business:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agriculture
26
%
 
22
%
 
31
%
 
31
%
 
40
%
 
 
28
%
 
30
%
Casualty
39

 
40

 
38

 
33

 
33

 
 
37

 
37

Credit/Surety
7

 
7

 
6

 
8

 
4

 
 
7

 
3

Motor
5

 
7

 
3

 
4

 
4

 
 
4

 
4

Multiline
8

 
6

 
8

 
9

 
5

 
 
8

 
6

Other
—

 
3

 
3

 
1

 
1

 
 
2

 
5

Property
15

 
15

 
11

 
14

 
13

 
 
14

 
15

Total
100
%
 
100
%
 
100
%
 
100
%
 
100
%
 
 
100
%
 
100
%
 
(A)
Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended December 31, 2014, net premiums written and net premiums earned include foreign exchange impacts of $(0.6) million and $(1.4) million, respectively, compared to the three months ended December 31, 2013. For the year ended December 31, 2014, net premiums written and net premiums earned include foreign exchange impacts of $(5.6) million and $(5.6) million, respectively, compared to the year ended December 31, 2013.


10


PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Global (Non-U.S.) P&C sub-segment
 
 
For the three months ended
 
 
For the year ended
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
 
December 31,
 
December 31,
 
2014 (A)
 
2014
 
2014
 
2014
 
2013
 
 
2014 (A)
 
2013
Gross premiums written
$
122

 
162

 
155

 
$
364

 
$
128

 
 
$
803

 
818

Net premiums written
$
122

 
164

 
148

 
$
361

 
$
128

 
 
$
794

 
811

Net premiums earned
$
200

 
202

 
187

 
$
179

 
$
213

 
 
$
768

 
743

Losses and loss expenses
(119
)
 
(123
)
 
(103
)
 
(94
)
 
(110
)
 
 
(438
)
 
(373
)
Acquisition costs
(60
)
 
(56
)
 
(52
)
 
(54
)
 
(62
)
 
 
(222
)
 
(196
)
Technical result
$
21

 
23

 
32

 
$
31

 
$
41

 
 
$
108

 
174

Loss ratio (2)
59.4
%
 
61.1
%
 
54.6
%
 
52.4
%
 
51.5
%
 
 
57.0
%
 
50.2
%
Acquisition ratio (3)
29.9

 
27.6

 
27.9

 
30.1

 
29.4

 
 
28.9

 
26.4

Technical ratio (4)
89.3
%
 
88.7
%
 
82.5
%
 
82.5
%
 
80.9
%
 
 
85.9
%
 
76.6
%
Distribution of Net Premiums Written by Major Lines of Business:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Casualty
7
%
 
7
%
 
8
%
 
10
%
 
5
%
 
 
8
%
 
9
%
Motor
48

 
43

 
37

 
37

 
54

 
 
40

 
37

Property
45

 
50

 
55

 
53

 
41

 
 
52

 
54

Total
100
%
 
100
%
 
100
%
 
100
%
 
100
%
 
 
100
%
 
100
%
 
(A)
Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended December 31, 2014, net premiums written and net premiums earned include foreign exchange impacts of $(3.4) million and $(7.2) million, respectively, compared to the three months ended December 31, 2013. For the year ended December 31, 2014, net premiums written and net premiums earned include foreign exchange impacts of $2.9 million and $(2.4) million, respectively, compared to the year ended December 31, 2013.


11


PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Global Specialty sub-segment
 
 
For the three months ended
 
 
For the year ended
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
 
December 31,
 
December 31,
 
2014 (A)
 
2014
 
2014
 
2014
 
2013
 
 
2014 (A)
 
2013
Gross premiums written
$
448

 
$
432

 
$
438

 
$
479

 
$
423

 
 
$
1,797

 
$
1,676

Net premiums written
$
446

 
$
428

 
$
432

 
$
389

 
$
419

 
 
$
1,696

 
$
1,579

Net premiums earned
$
430

 
$
448

 
$
406

 
$
355

 
$
415

 
 
$
1,638

 
$
1,506

Losses and loss expenses
(213
)
 
(279
)
 
(270
)
 
(201
)
 
(223
)
 
 
(963
)
 
(920
)
Acquisition costs
(117
)
 
(105
)
 
(98
)
 
(79
)
 
(105
)
 
 
(400
)
 
(362
)
Technical result
$
100

 
$
64

 
$
38

 
$
75

 
$
87

 
 
$
275

 
$
224

Loss ratio (2)
49.5
%
 
62.3
%
 
66.5
%
 
56.6
%
 
53.8
%
 
 
58.8
%
 
61.1
%
Acquisition ratio (3)
27.4

 
23.5

 
24.2

 
22.4

 
25.2

 
 
24.4

 
24.0

Technical ratio (4)
76.9
%
 
85.8
%
 
90.7
%
 
79.0
%
 
79.0
%
 
 
83.2
%
 
85.1
%
Distribution of Net Premiums Written by Major Lines of Business:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agriculture
12
%
 
11
%
 
14
%
 
13
%
 
8
%
 
 
13
%
 
9
%
Aviation/Space
15

 
13

 
13

 
8

 
16

 
 
13

 
13

Credit/Surety
14

 
16

 
15

 
19

 
17

 
 
16

 
19

Energy
5

 
5

 
5

 
3

 
5

 
 
4

 
5

Engineering
10

 
10

 
9

 
10

 
16

 
 
10

 
14

Marine
18

 
18

 
15

 
16

 
19

 
 
17

 
19

Multiline
8

 
8

 
6

 
10

 
3

 
 
8

 
3

Other
—

 
1

 
1

 
1

 
—

 
 
—

 
—

Specialty casualty
9

 
7

 
10

 
14

 
8

 
 
10

 
9

Specialty property
9

 
11

 
12

 
6

 
8

 
 
9

 
9

Total
100
%
 
100
%
 
100
%
 
100
%
 
100
%
 
 
100
%
 
100
%
 
(A)
Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended December 31, 2014, net premiums written and net premiums earned include foreign exchange impacts of $(9.0) million and $(9.9) million, respectively, compared to the three months ended December 31, 2013. For the year ended December 31, 2014, net premiums written and net premiums earned include foreign exchange impacts of $1.2 million and $(0.6) million, respectively, compared to the year ended December 31, 2013.

12


PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Catastrophe sub-segment
 
 
For the three months ended
 
 
For the year ended
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
 
December 31,
 
December 31,
 
2014 (A)
 
2014
 
2014
 
2014
 
2013
 
 
2014 (A)
 
2013
Gross premiums written
$
13

 
59

 
143

 
$
210

 
$
18

 
 
$
425

 
$
495

Net premiums written
$
11

 
55

 
136

 
$
179

 
$
18

 
 
$
380

 
$
450

Net premiums earned
$
92

 
153

 
59

 
$
79

 
$
117

 
 
$
384

 
$
453

Losses and loss expenses
(24
)
 
(39
)
 
(19
)
 
21

 
(51
)
 
 
(62
)
 
(132
)
Acquisition costs
(9
)
 
(17
)
 
(8
)
 
(8
)
 
(11
)
 
 
(42
)
 
(44
)
Technical result
$
59

 
97

 
32

 
$
92

 
$
55

 
 
$
280

 
$
277

Loss ratio (2)
26.5
%
 
25.2
%
 
33.4
%
 
(26.5
)%
 
43.2
%
 
 
16.1
%
 
29.0
%
Acquisition ratio (3)
9.1

 
11.7

 
13.0

 
10.1

 
9.5

 
 
11.0

 
9.7

Technical ratio (4)
35.6
%
 
36.9
%
 
46.4
%
 
(16.4
)%
 
52.7
%
 
 
27.1
%
 
38.7
%
 
(A)
Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended December 31, 2014, net premiums written and net premiums earned include foreign exchange impacts of $(0.9) million and $(3.4) million, respectively, compared to the three months ended December 31, 2013. For the year ended December 31, 2014, net premiums written and net premiums earned include foreign exchange impacts of $(4.3) million and $(8.3) million, respectively, compared to the year ended December 31, 2013.


13


PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Life and Health segment
 
 
For the three months ended
 
 
For the year ended
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
 
December 31,
 
December 31,
 
2014 (A)
 
2014
 
2014
 
2014
 
2013
 
 
2014 (A)
 
2013
Gross premiums written
$
314

 
$
336

 
$
326

 
$
289

 
$
250

 
 
$
1,265

 
$
972

Net premiums written
$
302

 
$
325

 
$
311

 
$
282

 
$
249

 
 
$
1,220

 
$
964

Net premiums earned
$
318

 
$
331

 
$
311

 
$
262

 
$
258

 
 
$
1,222

 
$
957

Life policy benefits
(261
)
 
(272
)
 
(252
)
 
(215
)
 
(202
)
 
 
(1,000
)
 
(760
)
Acquisition costs
(37
)
 
(38
)
 
(43
)
 
(32
)
 
(42
)
 
 
(149
)
 
(125
)
Technical result
$
20

 
$
21

 
$
16

 
$
15

 
$
14

 
 
$
73

 
$
72

Other income
2

 
2

 
3

 
1

 
3

 
 
8

 
11

Other expenses
(17
)
 
(17
)
 
(16
)
 
(17
)
 
(19
)
 
 
(68
)
 
(71
)
Underwriting result
$
5

 
$
6

 
$
3

 
$
(1
)
 
$
(2
)
 
 
$
13

 
$
12

Net investment income
16

 
14

 
15

 
15

 
15

 
 
60

 
61

Allocated underwriting result (1)
$
21

 
$
20

 
$
18

 
$
14

 
$
13

 
 
$
73

 
$
73

Distribution of Net Premiums Written by Major Lines of Business:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accident and Health
25
%
 
24
%
 
27
%
 
16
%
 
15
%
 
 
23
%
 
15
%
Longevity
25

 
26

 
22

 
25

 
27

 
 
25

 
26

Mortality
50

 
50

 
51

 
59

 
58

 
 
52

 
59

Total
100
%
 
100
%
 
100
%
 
100
%
 
100
%
 
 
100
%
 
100
%
 
(A)
Comparisons of net premiums written and net premiums earned between periods include the impact of foreign exchange variances. For the three months ended December 31, 2014, net premiums written and net premiums earned include foreign exchange impacts of $(4.1) million and $(4.5) million, respectively, compared to the three months ended December 31, 2013. For the year ended December 31, 2014, net premiums written and net premiums earned include foreign exchange impacts of $22.9 million and $22.1 million, respectively, compared to the year ended December 31, 2013.


14


PartnerRe Ltd.
Segment Information
(Expressed in millions of U.S. dollars)
(Unaudited)
Corporate and Other
 
 
For the three months ended
 
 
For the year ended
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
 
December 31,
 
December 31,
 
2014
 
2014
 
2014
 
2014
 
2013
 
 
2014
 
2013
Technical result
$
1

 
$
(1
)
 
$
—

 
$
—

 
$
1

 
 
$
—

 
$
8

Other income (loss)
—

 
1

 
5

 
(2
)
 
—

 
 
5

 
3

Corporate expenses - costs of restructuring (1)
(6
)
 
(3
)
 
(2
)
 
—

 
(12
)
 
 
(11
)
 
(58
)
Corporate expenses
(35
)
 
(26
)
 
(27
)
 
(28
)
 
(28
)
 
 
(118
)
 
(105
)
Other expenses
—

 
—

 
(1
)
 
(1
)
 
(2
)
 
 
(1
)
 
(7
)
Net investment income
99

 
104

 
115

 
102

 
99

 
 
420

 
423

Net realized and unrealized investment gains (losses)
98

 
(34
)
 
166

 
142

 
99

 
 
372

 
(161
)
Interest expense
(12
)
 
(12
)
 
(12
)
 
(12
)
 
(12
)
 
 
(49
)
 
(49
)
Amortization of intangible assets
(6
)
 
(7
)
 
(7
)
 
(7
)
 
(6
)
 
 
(27
)
 
(27
)
Net foreign exchange gains (losses)
7

 
8

 
2

 
—

 
(8
)
 
 
18

 
(18
)
Income tax expense
(53
)
 
(46
)
 
(78
)
 
(62
)
 
(11
)
 
 
(239
)
 
(49
)
Interest in (losses) earnings of equity method investments
(1
)
 
5

 
5

 
6

 
4

 
 
15

 
14

 
(1)
The costs of restructuring relate to the Company’s reorganization of its business support and Global Non-life operations. During the three months ended December 31, 2014, the three months ended September 30, 2014, the three months ended June 30, 2014 and the three months ended December 31, 2013, these costs predominantly comprised of facility exit costs. For the three months ended December 31, 2014, the three months ended September 30, 2014, the three months ended June 30, 2014 and the three months ended December 31, 2013, these costs had a per diluted share impact, pre-tax, of $0.11, $0.07, $0.05, and $0.22, respectively. During the year ended December 31, 2014, these costs predominantly comprised of facility exit costs. During the year ended December 31, 2013, these costs predominantly comprised of severance costs related to the Company's voluntary and involuntary termination plans, and to a lesser extent, facility exit costs. For the year ended December 31, 2014 and the year ended December 31, 2013, these costs had a per diluted share impact, pre-tax, of $0.21 and $1.03, respectively.


15



PartnerRe Ltd.
Distribution of Premiums
(Unaudited) 
 
For the three months ended
 
 
For the year ended
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
 
December 31,
 
December 31,
 
2014
 
2014
 
2014
 
2014
 
2013
 
 
2014
 
2013
Distribution of Net Premiums Written by Line of Business:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-life
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property and casualty
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Casualty
11
%
 
12
%
 
11
%
 
12
%
 
11
%
 
 
12
%
 
12
%
Motor
6

 
7

 
5

 
9

 
7

 
 
7

 
7

Multiline and other
5

 
5

 
5

 
5

 
3

 
 
5

 
4

Property
9

 
10

 
9

 
15

 
8

 
 
11

 
12

Specialty
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agriculture
12

 
10

 
13

 
12

 
15

 
 
12

 
11

Aviation/Space
6

 
4

 
4

 
2

 
6

 
 
4

 
4

Catastrophe
1

 
4

 
9

 
10

 
1

 
 
6

 
8

Credit/Surety
7

 
7

 
6

 
7

 
7

 
 
7

 
6

Energy
2

 
2

 
1

 
1

 
2

 
 
1

 
2

Engineering
4

 
3

 
3

 
2

 
6

 
 
3

 
4

Marine
6

 
6

 
5

 
4

 
7

 
 
5

 
6

Specialty casualty
3

 
2

 
3

 
3

 
3

 
 
3

 
3

Specialty property
3

 
4

 
4

 
2

 
3

 
 
3

 
3

Life and Health
25

 
24

 
22

 
16

 
21

 
 
21

 
18

 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
 
 
100
%
 
100
%
Distribution of Gross Premiums Written by Geography:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asia, Australia and New Zealand
10
%
 
13
%
 
13
%
 
9
%
 
11
%
 
 
11
%
 
11
%
Europe
38

 
39

 
35

 
45

 
39

 
 
40

 
40

Latin America, Caribbean and Africa
14

 
10

 
9

 
8

 
11

 
 
10

 
10

North America
38

 
38

 
43

 
38

 
39

 
 
39

 
39

 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
 
 
100
%
 
100
%
Distribution of Gross Premiums Written by Production Source:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Broker
68
%
 
69
%
 
69
%
 
71
%
 
67
%
 
 
69
%
 
71
%
Direct
32

 
31

 
31

 
29

 
33

 
 
31

 
29

 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
 
 
100
%
 
100
%

16


PartnerRe Ltd.
Distribution of Premiums
(Unaudited)
 
 
For the three months ended
 
 
For the year ended
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
 
December 31,
 
December 31,
 
2014
 
2014
 
2014
 
2014
 
2013
 
 
2014
 
2013
Distribution of Gross Premiums Written by Reinsurance Type for the Non-life sub-segment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North America
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Proportional
11
 %
 
16
%
 
11
%
 
24
%
 
7
%
 
 
16
%
 
18
%
Proportional
89

 
84

 
89

 
76

 
93

 
 
84

 
82

Total
100
 %
 
100
%
 
100
%
 
100
%
 
100
%
 
 
100
%
 
100
%
Global (Non-U.S.) P&C
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Proportional
4
 %
 
12
%
 
8
%
 
37
%
 
4
%
 
 
22
%
 
21
%
Proportional
96

 
88

 
92

 
63

 
96

 
 
78

 
79

Total
100
 %
 
100
%
 
100
%
 
100
%
 
100
%
 
 
100
%
 
100
%
Global Specialty
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Proportional
10
 %
 
13
%
 
16
%
 
26
%
 
11
%
 
 
17
%
 
19
%
Proportional
90

 
87

 
84

 
74

 
89

 
 
83

 
81

Total
100
 %
 
100
%
 
100
%
 
100
%
 
100
%
 
 
100
%
 
100
%
Catastrophe
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Proportional
113
 %
 
97
%
 
96
%
 
98
%
 
97
%
 
 
98
%
 
98
%
Proportional
(13
)
 
3

 
4

 
2

 
3

 
 
2

 
2

Total
100
 %
 
100
%
 
100
%
 
100
%
 
100
%
 
 
100
%
 
100
%
Non-life total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Proportional
11
 %
 
19
%
 
23
%
 
38
%
 
10
%
 
 
25
%
 
28
%
Proportional
89

 
81

 
77

 
62

 
90

 
 
75

 
72

Total
100
 %
 
100
%
 
100
%
 
100
%
 
100
%
 
 
100
%
 
100
%


17



PartnerRe Ltd.
Investment Portfolio
(Expressed in millions of U.S. dollars)
(Unaudited)
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
 
December 31,
 
2014
 
2014
 
2014
 
2014
 
2013
 
 
2012
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government
$
2,277

 
15
%
 
$
2,160

 
14
%
 
$
1,827

 
12
%
 
$
1,850

 
12
%
 
$
1,599

 
11
%
 
 
$
1,113

 
7
%
U.S. government sponsored enterprises
39

 
—

 
25

 
—

 
29

 
—

 
16

 
—

 
25

 
—

 
 
18

 
—

U.S. states, territories and municipalities
531

 
3

 
321

 
2

 
221

 
1

 
130

 
1

 
124

 
1

 
 
243

 
1

Non-U.S. sovereign government, supranational and government related
1,976

 
13

 
2,209

 
14

 
2,289

 
15

 
2,332

 
15

 
2,354

 
15

 
 
2,376

 
15

Corporates
5,604

 
37

 
5,706

 
37

 
5,981

 
38

 
5,989

 
39

 
6,049

 
40

 
 
6,656

 
42

Mortgage/asset-backed securities
3,492

 
23

 
3,530

 
24

 
3,660

 
24

 
3,581

 
23

 
3,442

 
23

 
 
3,989

 
25

Total fixed maturities
13,919

 
91

 
13,951

 
91

 
14,007

 
90

 
13,898

 
90

 
13,593

 
90

 
 
14,395

 
90

Short-term investments
25

 
—

 
37

 
—

 
32

 
—

 
29

 
—

 
14

 
—

 
 
151

 
1

Equities
1,057

 
7

 
1,001

 
7

 
1,253

 
8

 
1,250

 
8

 
1,221

 
8

 
 
1,094

 
7

Other invested assets
299

 
2

 
299

 
2

 
293

 
2

 
302

 
2

 
321

 
2

 
 
333

 
2

Total investments
$
15,300

 
100
%
 
$
15,288

 
100
%
 
$
15,585

 
100
%
 
$
15,479

 
100
%
 
$
15,149

 
100
%
 
 
$
15,973

 
100
%
Cash and cash equivalents
1,313

 
 
 
1,519

 
 
 
1,208

 
 
 
1,269

 
 
 
1,496

 
 
 
 
1,122

 
 
Total investments and cash
$
16,613

 
 
 
$
16,807

 
 
 
$
16,793

 
 
 
$
16,748

 
 
 
$
16,645

 
 
 
 
$
17,095

 
 
Maturity distribution:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One year or less
$
313

 
2
%
 
$
401

 
3
%
 
$
428

 
3
%
 
$
383

 
3
%
 
$
378

 
3

 
 
$
1,081

 
7
%
More than one year through five years
5,169

 
37

 
5,279

 
38

 
5,212

 
37

 
5,359

 
38

 
5,057

 
37

 
 
4,198

 
29

More than five years through ten years
3,719

 
27

 
3,747

 
27

 
3,790

 
27

 
3,806

 
27

 
3,962

 
29

 
 
4,337

 
30

More than ten years
1,251

 
9

 
1,031

 
7

 
949

 
7

 
798

 
6

 
768

 
6

 
 
941

 
7

Subtotal
10,452

 
75

 
10,458

 
75

 
10,379

 
74

 
10,346

 
74

 
10,165

 
75

 
 
10,557

 
73

Mortgage/asset-backed securities
3,492

 
25

 
3,530

 
25

 
3,660

 
26

 
3,581

 
26

 
3,442

 
25

 
 
3,989

 
27

Total
$
13,944

 
100
%
 
$
13,988

 
100
%
 
$
14,039

 
100
%
 
$
13,927

 
100
%
 
$
13,607

 
100
%
 
 
$
14,546

 
100
%
Credit quality by market value:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AAA
11

%
 
 
12

%
 
 
12

%
 
 
13

% 
 
 
14

% 
 
 
 
13

% 
 
AA
46

 
 
 
44

 
 
 
43

 
 
 
42

  
 
 
41

  
 
 
 
42

  
 
A
19

 
 
 
19

 
 
 
20

 
 
 
21

  
 
 
21

  
 
 
 
23

  
 
BBB
16

 
 
 
17

 
 
 
17

 
 
 
16

  
 
 
16

  
 
 
 
15

  
 
Below Investment Grade/Unrated
8

 
 
 
8

 
 
 
8

 
 
 
8

  
 
 
8

  
 
 
 
7

  
 
 
100

%
 
 
100

%
 
 
100

%
 
 
100

% 
 
 
100

% 
 
 
 
100

% 
 
Expected average duration (1)
3.7

Yrs 
 
 
3.5

Yrs 
 
 
3.4

Yrs 
 
 
3.2

Yrs 
 
 
3.0

Yrs 
 
 
 
2.7

Yrs 
 
Average yield to maturity at market (1)
2.4

% 
 
 
2.3

% 
 
 
2.2

% 
 
 
2.5

% 
 
 
2.5

% 
 
 
 
2.0

% 
 
Average credit quality
A

 
 
 
A

 
 
 
   A

 
 
 
A

 
 
 
A

 
 
 
 
A

 
 
 (1) Includes funds holding fixed income securities that are classified with equities under generally accepted accounting principles in the United States.

18


PartnerRe Ltd.
Distribution of Corporate Bonds
(Expressed in thousands of U.S. dollars)
(Unaudited)
 
December 31, 2014
 
Fair Value
 
Percentage to
Total Fair Value of
Corporate Bonds
 
Percentage to
Invested Assets
and cash
 
Largest single issuer
as a percentage of
Invested Assets
and cash
 
 
 
 
Distribution by sector - Corporate bonds
 
 
 
 
 
 
 
 
 
 
 
Finance
$
1,318,462

 
23.5
%
 
7.9
%
 
0.9
%
 
 
 
 
Consumer noncyclical
780,054

 
13.9

 
4.7

 
0.2

 
 
 
 
Communications
635,304

 
11.3

 
3.8

 
0.4

 
 
 
 
Utilities
602,841

 
10.8

 
3.6

 
0.3

 
 
 
 
Industrials
461,857

 
8.2

 
2.8

 
0.2

 
 
 
 
Energy
423,583

 
7.6

 
2.5

 
0.2

 
 
 
 
Consumer cyclical
358,139

 
6.4

 
2.2

 
0.2

 
 
 
 
Insurance
270,216

 
4.8

 
1.6

 
0.2

 
 
 
 
Basic materials
175,214

 
3.1

 
1.1

 
0.3

 
 
 
 
Real estate investment trusts
143,512

 
2.6

 
0.9

 
0.1

 
 
 
 
Government guaranteed corporate debt
140,055

 
2.5

 
0.8

 
0.8

 
 
 
 
Technology
132,355

 
2.4

 
0.8

 
0.1

 
 
 
 
Catastrophe bonds
93,996

 
1.7

 
0.6

 
0.1

 
 
 
 
Longevity and mortality bonds
56,116

 
1.0

 
0.3

 
0.2

 
 
 
 
Diversified
12,456

 
0.2

 
0.1

 
0.1

 
 
 
 
Total Corporate bonds
$
5,604,160

 
100.0
%
 
33.7
%
 
 
 
 
 
 
Finance sector - Corporate bonds
 
 
 
 
 
 
 
 
 
 
 
Banks
$
773,552

 
13.8
%
 
4.7
%
 
 
 
 
 
 
Investment banking and brokerage
317,698

 
5.7

 
1.9

 
 
 
 
 
 
Financial services
147,347

 
2.6

 
0.9

 
 
 
 
 
 
Commercial and consumer finance
57,743

 
1.0

 
0.3

 
 
 
 
 
 
Other
22,122

 
0.4

 
0.1

 
 
 
 
 
 
Total finance sector - Corporate bonds
$
1,318,462

 
23.5
%
 
7.9
%
 
 
 
 
 
 
 
AAA
 
AA
 
A
 
BBB
 
Non-Investment
Grade/Unrated
 
Total
Credit quality of finance sector - Corporate bonds
 
 
 
 
 
 
 
 
 
 
 
Banks
$
—

 
$
128,007

 
$
460,079

 
$
158,272

 
$
27,194

 
$
773,552

Investment banking and brokerage
—

 
—

 
277,702

 
38,835

 
1,161

 
317,698

Financial services
—

 
121,007

 
20,962

 
1,855

 
3,523

 
147,347

Commercial and consumer finance
—

 
—

 
4,116

 
51,164

 
2,463

 
57,743

Other
—

 
2,575

 
10,299

 
9,248

 
—

 
22,122

Total finance sector - Corporate bonds
$
—

 
$
251,589

 
$
773,158

 
$
259,374

 
$
34,341

 
$
1,318,462

% of total
—
%
 
19
%
 
59
%
 
19
%
 
3
%
 
100
%
Concentration of investment risk
The top 10 Corporate bond issuers account for 17.8% of the Company’s total corporate bonds. The single largest issuer accounts for 2.7% of the Company’s total Corporate bonds.

19


PartnerRe Ltd.
Distribution of Equities
(Expressed in thousands of U.S. dollars)
(Unaudited)
 
 
December 31, 2014
 
Fair Value
 
Percentage to
Total Fair Value
of Equities
 
Percentage to
Invested Assets
and cash
 
Largest single issuer
as a percentage of
Invested Assets
and cash
Distribution by sector - Equities
 
 
 
 
 
 
 
Real estate investment trusts
$
213,770

 
23.0
%
 
1.3
%
 
0.2
%
Insurance
145,437

 
15.6

 
0.9

 
0.7

Energy
123,978

 
13.3

 
0.7

 
0.2

Consumer noncyclical
100,134

 
10.8

 
0.6

 
—

Finance
98,328

 
10.6

 
0.6

 
0.1

Technology
61,262

 
6.6

 
0.4

 
0.1

Communications
54,469

 
5.9

 
0.3

 
0.1

Industrials
49,983

 
5.4

 
0.3

 
0.1

Consumer cyclical
39,002

 
4.2

 
0.2

 
—

Utilities
31,748

 
3.4

 
0.2

 
—

Basic materials
11,420

 
1.2

 
0.1

 
—

Diversified
151

 
—

 
—

 
—

Total
$
929,682

 
100.0
%
 
5.6
%
 
 
 
 
 
 
 
 
 
 
Mutual funds and exchange traded funds (ETFs)
 
 
 
 
 
 
 
Funds and ETFs holding equities
118,246

 
 
 
0.7

 
 
Funds holding fixed income securities
8,586

 
 
 
0.1

 
 
Total Equities
$
1,056,514

 
 
 
6.4
%
 
 
Concentration of investment risk
The single largest fund in funds and ETFs holding equities is Vanguard Group Inc, which accounts for 6.7% of the Company’s total equities. Excluding equity securities held in mutual funds and exchange traded funds, the top 10 common stock issuers account for 29.4% of the Company’s total equities. Excluding equity securities held in mutual funds and exchange traded funds, the single largest issuer accounts for 12.9% of the Company’s total equities.


20


PartnerRe Ltd.
Distribution of Mortgage/Asset-Backed Securities (1) 
(Expressed in thousands of U.S. dollars)
(Unaudited)
Fixed Maturities - Mortgage/Asset-Backed Securities by type and by rating
 
 
Rating at December 31, 2014
 
GNMA
 
GSEs
 
AAA
 
AA
 
A
 
BBB
 
Non-Investment
Grade/Unrated
 
Total
U.S. Asset-Backed Securities
$
—

 
$
—

 
$
132,871

 
$
136,473

 
$
97,468

 
$
—

 
$
465,753

 
$
832,565

U.S. Collaterized Mortgage Obligations
4,014

 
2,631

 
3,387

 
—

 
—

 
—

 
—

 
10,032

U.S. Mortgage Backed Securities (MBS)
392,074

 
1,399,935

 
—

 
—

 
—

 
—

 
—

 
1,792,009

U.S. Commercial Mortgage Backed Securities (CMBS)
5,528

 
—

 
7,841

 
12,402

 
18,939

 
—

 
2,009

 
46,719

U.S. MBS Interest Only
32,275

 
54,934

 
3,891

 
—

 
—

 
—

 
15,332

 
106,432

 
$
433,891

 
$
1,457,500

 
$
147,990

 
$
148,875

 
$
116,407

 
$
—

 
$
483,094

 
$
2,787,757

Non-U.S. Asset-Backed Securities
$
—

 
$
—

 
$
131,386

 
$
68,464

 
$
63,999

 
$
14,288

 
$
20,718

 
$
298,855

Non-U.S. Collaterized Mortgage Obligations
—

 
—

 
141,729

 
54,497

 
52,940

 
—

 
—

 
249,166

Non-U.S. Commercial Mortgage Backed Securities (CMBS)
—

 
—

 
7,743

 
—

 
—

 
—

 
—

 
7,743

Non-U.S. Mortgage Backed Securities (MBS)
—

 
—

 
148,837

 
—

 
—

 
—

 
—

 
148,837

 
$
—

 
$
—

 
$
429,695

 
$
122,961

 
$
116,939

 
$
14,288

 
$
20,718

 
$
704,601

Total mortgage/asset-backed securities
$
433,891

 
$
1,457,500

 
$
577,685

 
$
271,836

 
$
233,346

 
$
14,288

 
$
503,812

 
$
3,492,358

Corporate Securities
—

 
38,609

 
—

 
—

 
—

 
—

 
—

 
38,609

Total
$
433,891

 
$
1,496,109

 
$
577,685

 
$
271,836

 
$
233,346

 
$
14,288

 
$
503,812

 
$
3,530,967

% of total
12
%
 
42
%
 
16
%
 
8
%
 
7
%
 
1
%
 
14
%
 
100
%
 
(1)
In addition to the mortgage/asset-backed securities above, the Company has derivatives exposure to to-be-announced mortgage-backed securities with a notional value of $235.1 million and a carrying value of $(0.1) million at December 31, 2014 within Other Invested Assets.


21


PartnerRe Ltd.
Other Invested Assets including Private Markets and Derivative Exposures
(Expressed in thousands of U.S. dollars)
(Unaudited)
Carrying and Notional Values of Private Markets Investments and Other Invested Assets
 
 
December 31, 2014
 
 
September 30, 2014
 
 
June 30, 2014
 
Investments
 
Fair Value
of
Derivatives
 
Carrying
Value
 
Net Notional
Amount of
Derivatives /
Other
 
Total Net
Exposures (1)
 
 
Carrying
Value
 
Total Net
Exposures (1)
 
 
Carrying
Value
 
Total Net
Exposures (1)
Private Markets Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal Finance - Investments
$
101,268

 
$
—

 
$
101,268

 
$
—

 
$
101,268

 
 
$
101,723

 
$
101,723

 
 
$
102,848

 
$
102,848

Principal Finance - Derivative Exposure Assumed (2)
—

 
(17,804
)
 
(17,804
)
 
42,524

 
24,720

 
 
(11,315
)
 
31,254

 
 
(9,047
)
 
33,558

Insurance-Linked Securities
—

 
(336
)
 
(336
)
 
206,381

 
206,045

 
 
(375
)
 
280,863

 
 
(950
)
 
270,019

Strategic Investments
195,263

 
—

 
195,263

 
—

 
195,263

 
 
197,376

 
197,376

 
 
188,373

 
188,373

Total other invested assets - Private Markets Exposure Assumed
296,531

 
(18,140
)
 
278,391

 
248,905

 
527,296

 
 
287,409

 
611,216

 
 
281,224

 
594,798

Other (3)
8,752

 
11,684

 
20,436

 
 
 
 
 
 
11,851

 
 
 
 
11,903

 
 
Total other invested assets
$
305,283

 
$
(6,456
)
 
$
298,827

 
 
 
 
 
 
$
299,260

 
 
 
 
$
293,127

 
 
 
(1)
The total net exposures originated in Private Markets are $1,572 million at December 31, 2014 ($1,599 million and $1,576 million at September 30, 2014 and June 30, 2014, respectively). In addition to the net exposures listed above of $527 million at December 31, 2014 ($611 million and $595 million at September 30, 2014 and June 30, 2014, respectively), the Company has the following other net exposures originated in Private Markets:
•
Principal Finance: $721 million of assets listed under Investments - Fixed Maturities and $11 million listed under Investments - Equities for a total exposure of $858 million at December 31, 2014 ($858 million and $857 million at September 30, 2014 and June 30, 2014, respectively).
•
Insurance-Linked Securities: $150 million of bonds listed under Investments - Fixed Maturities and $5 million listed under Investments - Equities for a total exposure of $361 million at December 31, 2014 ($399 million and $391 million at September 30, 2014 and June 30, 2014, respectively).
•
Strategic Investments: $156 million of assets listed under Investments - Equities and $2 million of assets listed under Other Assets for a total exposure of $353 million at December 31, 2014 ($342 million and $328 million at September 30, 2014 and June 30, 2014, respectively).
(2)
The Company enters into interest rate swaps to mitigate notional exposure on certain fixed maturities and total return swaps. Accordingly, the notional value of these interest rate swaps is not presented in the table.
(3)
Other includes foreign currency and fixed income hedging instruments used to manage currency and duration exposure, respectively, and other miscellaneous invested assets.


22


PartnerRe Ltd.
Funds Held - Directly Managed Portfolio
(Expressed in millions of U.S. dollars)
(Unaudited)
 
 
December 31,
2014
 
September 30,
2014
 
June 30,
2014
 
March 31,
2014
 
December 31,
2013
 
 
December 31,
2012
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government
$
105

 
22
%
 
$
104

 
22
%
 
$
105

 
20
%
 
$
104

 
17
%
 
$
108

 
19
%
 
 
$
129

 
15
%
U.S. government sponsored enterprises
49

 
10

 
45

 
9

 
50

 
10

 
50

 
8

 
50

 
9

 
 
90

 
11

Non-U.S. sovereign government, supranational and government related
128

 
27

 
123

 
26

 
128

 
25

 
179

 
30

 
137

 
25

 
 
234

 
28

Corporates
177

 
38

 
192

 
40

 
215

 
42

 
245

 
41

 
249

 
44

 
 
362

 
44

Total fixed maturities
459

 
97
%

464

 
97
%
 
498

 
97
%
 
578

 
96

 
544

 
97

 
 
815

 
98

Short-term investments
—

 
—

 
—

 
—

 
—

 
—

 
3

 
1

 
2

 
—

 
 
—

 
—

Other invested assets
14

 
3
%
 
15

 
3
%
 
16

 
3
%
 
15

 
3

 
15

 
3

 
 
18

 
2

Total investments
$
473

 
100
%
 
$
479

 
100
%
 
$
514

 
100
%
 
$
596

 
100
%
 
$
561

 
100
%
 
 
$
833

 
100
%
Cash and cash equivalents
42

 
 
 
53

 
 
 
41

 
 
 
37

 
 
 
85

 
 
 
 
54

 
 
Total investments and cash
$
515

 
 
 
$
532

 
 
 
$
555

 
 
 
$
633

 
 
 
$
646

 
 
 
 
$
887

 
 
Accrued investment income
6

 
 
 
6

 
 
 
6

 
 
 
7

 
 
 
7

 
 
 
 
10

 
 
Other funds held assets/liabilities
88

 
 
 
112

 
 
 
109

 
 
 
124

 
 
 
133

 
 
 
 
34

 
 
Total funds held - directly managed
$
609

 
 
 
$
650

 
 
 
$
670

 
 
 
$
764

 
 
 
$
786

 
 
 
 
$
931

 
 
Maturity distribution:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One year or less
$
77

 
16
%
 
$
87

 
19
%
 
$
72

 
15
%
 
$
99

 
17
%
 
$
89

 
16
%
 
 
$
133

 
17
%
More than one year through five years
241

 
53

 
258

 
56

 
261

 
52

 
298

 
51

 
331

 
61

 
 
515

 
63

More than five years through ten years
141

 
31

 
117

 
25

 
165

 
33

 
157

 
27

 
109

 
20

 
 
141

 
17

More than ten years
—

 
—

 
2

 
—

 
—

 
—

 
27

 
5

 
17

 
3

 
 
26

 
3

Total
$
459

 
100
%
 
$
464

 
100
%
 
$
498

 
100
%
 
$
581

 
100
%
 
$
546

 
100
%
 
 
$
815

 
100
%
Credit quality by market value:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AAA
12

% 
 
 
12

% 
 
 
12

% 
 
 
15

% 
 
 
13

% 
 
 
 
12

% 
 
AA
64

  
 
 
64

  
 
 
62

  
 
 
58

  
 
 
58

  
 
 
 
58

  
 
A
17

  
 
 
17

  
 
 
18

  
 
 
21

  
 
 
22

  
 
 
 
24

  
 
BBB
7

  
 
 
7

  
 
 
8

  
 
 
6

  
 
 
7

  
 
 
 
6

  
 
 
100

% 
 
 
100

% 
 
 
100

% 
 
 
100

% 
 
 
100

% 
 
 
 
100

% 
 
Expected average duration
3.4

Yrs 
 
 
3.1

Yrs 
 
 
3.4

Yrs 
 
 
3.3

Yrs 
 
 
2.9

Yrs 
 
 
 
3.0

Yrs 
 
Average yield to maturity at market
1.0

% 
 
 
0.9

% 
 
 
1.1

% 
 
 
1.2

% 
 
 
1.2

% 
 
 
 
1.0

% 
 
Average credit quality
   AA

 
 
 
   AA

 
 
 
   AA

 
 
 
AA

 
 
 
AA

 
 
 
 
AA

 
 


23


PartnerRe Ltd.
Distribution of Corporate Bonds
Funds Held - Directly Managed Portfolio
(Expressed in thousands of U.S. dollars)
(Unaudited)
 
 
 
December 31, 2014
 
 
Fair Value
 
Percentage to
Total Fair Value
of Corporate
Bonds
 
Percentage to Funds Held - Directly Managed
Investments and cash
 
Largest single issuer as a percentage of Funds Held - Directly Managed Investments and cash
 
 
Distribution by sector - Corporate bonds
 
 
 
 
 
 
 
 
 
 
Finance
 
$
52,254

 
29.5
%
 
10.1
%
 
1.3
%
 
 
Energy
 
30,063

 
17.0

 
5.8

 
1.8

 
 
Consumer noncyclical
 
28,947

 
16.3

 
5.6

 
1.7

 
 
Utilities
 
18,080

 
10.2

 
3.5

 
1.1

 
 
Communications
 
12,230

 
6.9

 
2.4

 
0.8

 
 
Basic materials
 
10,115

 
5.7

 
2.0

 
0.9

 
 
Consumer cyclical
 
8,212

 
4.6

 
1.6

 
1.4

 
 
Government guaranteed corporate debt
 
5,895

 
3.3

 
1.1

 
1.1

 
 
Industrials
 
4,253

 
2.4

 
0.8

 
0.6

 
 
Technology
 
3,988

 
2.2

 
0.8

 
0.8

 
 
Real estate investment trusts
 
3,310

 
1.9

 
0.6

 
0.6

 
 
Total Corporate bonds
 
$
177,347

 
100.0
%
 
34.3
%
 
 
 
 
Finance sector - Corporate bonds
 
 
 
 
 
 
 
 
 
 
Banks
 
$
42,304

 
23.9
%
 
8.2
%
 
 
 
 
Financial services
 
8,947

 
5.0

 
1.7

 
 
 
 
Investment banking and brokerage
 
1,003

 
0.6

 
0.2

 
 
 
 
Total finance sector - Corporate bonds
 
$
52,254

 
29.5
%
 
10.1
%
 
 
 
 
 
 
AAA
 
AA
 
A
 
BBB
 
Total
Credit quality of finance sector - Corporate bonds
 
 
 
 
 
 
 
 
 
 
Banks
 
$
14,685

 
$
11,559

 
$
14,575

 
$
1,485

 
$
42,304

Financial services
 
—

 
4,711

 
4,236

 
—

 
8,947

Investment banking and brokerage
 
1,003

 
—

 
—

 
—

 
1,003

Total finance sector - Corporate bonds
 
$
15,688

 
$
16,270

 
$
18,811

 
$
1,485

 
$
52,254

% of total
 
30
%
 
31
%
 
36
%
 
3
%
 
100
%
Concentration of investment risk
The Top 10 corporate bond issuers account for 37.2% of the Company’s total corporate bonds within the Funds Held - Directly Managed Portfolio. The single largest issuer accounts for 5.3% of the Company’s total corporate bonds within the Funds Held - Directly Managed portfolio.

24


PartnerRe Ltd.
Composition of Net Investment Income and Net Realized and Unrealized Investment Gains (Losses)
(Expressed in thousands of U.S. dollars)
(Unaudited)
 
 
For the three months ended
 
 
For the year ended
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
 
December 31,
 
December 31,
 
2014
 
2014
 
2014
 
2014
 
2013
 
 
2014
 
2013
Fixed maturities
$
109,468

 
$
108,290

 
$
114,637

 
$
111,019

 
$
108,580

 
 
$
443,414

 
$
446,299

Short-term investments, cash and cash equivalents
190

 
216

 
193

 
269

 
421

 
 
868

 
1,886

Equities
6,720

 
11,999

 
14,473

 
7,134

 
6,278

 
 
40,326

 
32,989

Funds held and other
8,996

 
7,493

 
8,963

 
7,740

 
8,252

 
 
33,192

 
34,215

Funds held - directly managed
3,194

 
3,485

 
3,229

 
3,933

 
4,785

 
 
13,841

 
20,502

Investment expenses
(13,882
)
 
(13,307
)
 
(11,528
)
 
(13,228
)
 
(13,965
)
 
 
(51,945
)
 
(51,524
)
Net investment income (1)
$
114,686

 
$
118,176

 
$
129,967

 
$
116,867

 
$
114,351

 
 
$
479,696

 
$
484,367

Net realized investment gains on fixed maturities and short-term investments
$
26,699

 
$
37,809

 
$
31,205

 
$
25,022

 
$
18,363

 
 
$
120,734

 
$
118,575

Net realized investment gains on equities
30,334

 
33,894

 
33,678

 
827

 
6,049

 
 
98,733

 
75,217

Net realized (losses) gains on other invested assets
(19,887
)
 
7,019

 
(17,753
)
 
9,935

 
(78,098
)
 
 
(20,686
)
 
20,497

Change in net unrealized (losses) gains on other invested assets
(11,843
)
 
(6,538
)
 
(14,121
)
 
(25,678
)
 
98,809

 
 
(58,180
)
 
56,652

Change in net unrealized investment gains (losses) on fixed maturities and short-term investments
61,085

 
(75,537
)
 
123,434

 
119,799

 
(68,619
)
 
 
228,781

 
(525,787
)
Change in net unrealized investment gains (losses) on equities
17,052

 
(31,093
)
 
6,322

 
10,325

 
126,551

 
 
2,605

 
118,010

Net other realized and unrealized investment (losses) gains
(5,801
)
 
575

 
611

 
991

 
198

 
 
(3,624
)
 
(2,107
)
Net realized and unrealized investment gains (losses) on funds held - directly managed
690

 
(549
)
 
2,341

 
951

 
(3,834
)
 
 
3,433

 
(21,792
)
Net realized and unrealized investment gains (losses)
$
98,329

 
$
(34,420
)
 
$
165,717

 
$
142,172

 
$
99,419

 
 
$
371,796

 
$
(160,735
)
 
(1)
Comparisons of net investment income between periods include the impact of foreign exchange variances. For the three months ended December 31, 2014, net investment income includes foreign exchange impacts of $(1.2) million compared to the three months ended December 31, 2013. For the year ended December 31, 2014, net investment income includes foreign exchange impacts of $1.5 million compared to the year ended December 31, 2013.


25


PartnerRe Ltd.
Composition of Net Investment Income and Net Realized and Unrealized Investment Gains (Losses)
Funds Held - Directly Managed Portfolio
(Expressed in thousands of U.S. dollars)
(Unaudited)
 
 
For the three months ended
 
 
For the year ended
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
 
December 31,
 
December 31,
 
2014
 
2014
 
2014
 
2014
 
2013
 
 
2014
 
2013
Fixed maturities
$
3,000

 
$
3,128

 
$
2,936

 
$
3,725

 
$
4,054

 
 
$
12,789

 
$
18,804

Short-term investments, cash and cash equivalents
11

 
8

 
9

 
31

 
343

 
 
59

 
1,246

Other
399

 
527

 
456

 
378

 
285

 
 
1,760

 
1,287

Investment expenses
(216
)
 
(178
)
 
(172
)
 
(201
)
 
103

 
 
(767
)
 
(835
)
Net investment income
$
3,194

 
$
3,485

 
$
3,229

 
$
3,933

 
$
4,785

 
 
$
13,841

 
$
20,502

Net realized investment gains (losses) on fixed maturities and short-term investments
$
194

 
$
(32
)
 
$
1,601

 
$
197

 
$
1,695

 
 
$
1,959

 
$
6,021

Net realized investment gains on other invested assets
53

 
—

 
—

 
—

 
—

 
 
53

 
19

Change in net unrealized investment gains (losses) on fixed maturities and short-term investments
946

 
(209
)
 
259

 
942

 
(4,618
)
 
 
1,938

 
(24,176
)
Change in net unrealized investment (losses) gains on other invested assets
(503
)
 
(308
)
 
481

 
(188
)
 
(911
)
 
 
(517
)
 
(3,656
)
Net realized and unrealized investment gains (losses) on funds held - directly managed
$
690

 
$
(549
)
 
$
2,341

 
$
951

 
$
(3,834
)
 
 
$
3,433

 
$
(21,792
)


26



PartnerRe Ltd.
Analysis of Unpaid Losses and Loss Expenses
(Expressed in thousands of U.S. dollars)
(Unaudited) 
 
As at and for the three months ended
 
 
As at and for the year ended
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
 
December 31,
 
December 31,
 
2014
 
2014
 
2014
 
2014
 
2013
 
 
2014
 
2013
Reconciliation of beginning and ending liability for unpaid losses and loss expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross liability at beginning of period
$
10,264,001

 
$
10,399,775

 
$
10,529,717

 
$
10,646,318

 
$
10,564,542

 
 
$
10,646,318

 
$
10,709,371

Reinsurance recoverable at beginning of period
(249,338
)
 
(244,543
)
 
(251,666
)
 
(267,384
)
 
(285,206
)
 
 
(267,384
)
 
(291,330
)
Net liability at beginning of period
10,014,663

 
10,155,232

 
10,278,051

 
10,378,934

 
10,279,336

 
 
10,378,934

 
10,418,041

Net incurred losses related to:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current year
779,029

 
853,508

 
792,275

 
698,170

 
849,706

 
 
3,122,981

 
3,118,755

Prior years
(169,443
)
 
(165,763
)
 
(160,880
)
 
(164,327
)
 
(173,000
)
 
 
(660,413
)
 
(721,499
)
 
609,586

 
687,745

 
631,395

 
533,843

 
676,706

 
 
2,462,568

 
2,397,256

Change in reserve agreement (1)
(16,977
)
 
—

 
2,324

 
(10,760
)
 
(3,607
)
 
 
(25,412
)
 
(49,544
)
Net losses paid
(882,812
)
 
(513,127
)
 
(767,435
)
 
(635,175
)
 
(589,413
)
 
 
(2,798,549
)
 
(2,401,559
)
Effects of foreign exchange rate changes
(193,003
)
 
(315,187
)
 
10,897

 
11,209

 
15,912

 
 
(486,084
)
 
14,740

Net liability at end of period
9,531,457

 
10,014,663

 
10,155,232

 
10,278,051

 
10,378,934

 
 
9,531,457

 
10,378,934

Reinsurance recoverable at end of period
214,349

 
249,338

 
244,543

 
251,666

 
267,384

 
 
214,349

 
267,384

Gross liability at end of period
$
9,745,806

 
$
10,264,001

 
$
10,399,775

 
$
10,529,717

 
$
10,646,318

 
 
$
9,745,806

 
$
10,646,318

Breakdown of gross liability at end of period:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Case reserves
$
4,236,038

 
$
4,420,406

 
$
4,425,723

 
$
4,552,142

 
$
4,663,164

 
 
$
4,236,038

 
$
4,663,164

Additional case reserves
253,890

 
321,607

 
380,582

 
332,758

 
403,145

 
 
253,890

 
403,145

Incurred but not reported reserves
5,255,878

 
5,521,988

 
5,593,470

 
5,644,817

 
5,580,009

 
 
5,255,878

 
5,580,009

Gross liability at end of period
$
9,745,806

 
$
10,264,001

 
$
10,399,775

 
$
10,529,717

 
$
10,646,318

 
 
$
9,745,806

 
$
10,646,318

Breakdown of gross liability at end of period by Non-life sub-segment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North America
$
3,307,948

 
$
3,541,332

 
$
3,468,159

 
$
3,550,399

 
$
3,535,946

 
 
$
3,307,948

 
$
3,535,946

Global (Non-U.S.) P&C
2,175,965

 
2,261,968

 
2,364,579

 
2,428,416

 
2,444,129

 
 
2,175,965

 
2,444,129

Global Specialty
3,769,758

 
3,924,377

 
3,975,834

 
3,920,012

 
3,951,543

 
 
3,769,758

 
3,951,543

Catastrophe
492,135

 
536,324

 
591,203

 
630,890

 
714,700

 
 
492,135

 
714,700

Gross liability at end of period
$
9,745,806

 
$
10,264,001

 
$
10,399,775

 
$
10,529,717

 
$
10,646,318

 
 
$
9,745,806

 
$
10,646,318

Unrecognized time value of non-life reserves (2)
$
474,258

 
$
603,499

 
$
621,803

 
$
665,021

 
$
733,528

 
 
$
474,258

 
$
733,528

Non-life paid loss ratio data:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-life paid losses to incurred losses ratio
144.8
%
 
74.6
%
 
121.6
%
 
119.0
%
 
87.1
%
 
 
113.6
%
 
100.2
%
Non-life paid losses to net premiums earned ratio
78.3
%
 
41.9
%
 
73.7
%
 
64.0
%
 
50.7
%
 
 
63.8
%
 
56.6
%
(1) The change in the reserve agreement is due to (favorable) adverse development on Paris Re’s reserves which are guaranteed by Axa under the reserve agreement.
(2) The unrecognized time value of non-life reserves represents the difference between the recorded gross/net liability for unpaid losses and loss expenses and the amount of gross/net liability for unpaid losses and loss expenses that would be recorded if the underlying unpaid losses and loss expenses were discounted. The unrecognized time value, or discount, in the non-life reserves is calculated by applying appropriate risk-free rates by currency and duration to the underlying unpaid losses and loss expenses.

27


PartnerRe Ltd.
Analysis of Policy Benefits for Life and Annuity Contracts
(Expressed in thousands of U.S. dollars)
(Unaudited)
 
 
As at and for the three months ended
 
 
As at and for the year ended
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
 
December 31,
 
December 31,
 
2014
 
2014
 
2014
 
2014
 
2013
 
 
2014
 
2013
Reconciliation of beginning and ending policy benefits for life and annuity contracts:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross liability at beginning of period
$
2,113,463

 
$
2,127,412

 
$
2,118,479

 
$
1,974,133

 
$
1,908,575

 
 
$
1,974,133

 
$
1,813,244

Reinsurance recoverable at beginning of period
(25,433
)
 
(23,703
)
 
(7,691
)
 
(7,022
)
 
(6,978
)
 
 
(7,022
)
 
(20,684
)
Net liability at beginning of period
2,088,030

 
2,103,709

 
2,110,788

 
1,967,111

 
1,901,597

 
 
1,967,111

 
1,792,560

Net incurred losses related to:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current year
269,438

 
273,394

 
258,100

 
218,307

 
207,998

 
 
1,019,240

 
799,596

Prior years
(9,101
)
 
(1,596
)
 
(5,649
)
 
(2,693
)
 
(5,690
)
 
 
(19,038
)
 
(39,044
)
 
260,337

 
271,798

 
252,451

 
215,614

 
202,308

 
 
1,000,202

 
760,552

Net losses paid
(252,950
)
 
(178,847
)
 
(274,295
)
 
(74,812
)
 
(160,309
)
 
 
(780,905
)
 
(625,546
)
Effects of foreign exchange rate changes
(74,805
)
 
(108,630
)
 
14,765

 
2,875

 
23,515

 
 
(165,796
)
 
39,545

Net liability at end of period
2,020,612

 
2,088,030

 
2,103,709

 
2,110,788

 
1,967,111

 
 
2,020,612

 
1,967,111

Reinsurance recoverable at end of period
29,495

 
25,433

 
23,703

 
7,691

 
7,022

 
 
29,495

 
7,022

Gross liability at end of period
$
2,050,107

 
$
2,113,463

 
$
2,127,412

 
$
2,118,479

 
$
1,974,133

 
 
$
2,050,107

 
$
1,974,133

Life value in force
$
145,100

 
$
180,200

 
$
197,000

 
$
208,300

 
$
188,000

 
 
$
145,100

 
$
188,000



28


PartnerRe Ltd.
Reserve Development
(Expressed in thousands of U.S. dollars)
(Unaudited)
 
 
 
For the three months ended
 
 
For the year ended
 
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
 
December 31,
 
December 31,
 
 
2014
 
2014
 
2014
 
2014
 
2013
 
 
2014
 
2013
Prior year net favorable (adverse) reserve development:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-life segment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North America
 
$
76,235

 
$
82,788

 
$
67,404

 
$
24,515

 
$
67,202

 
 
$
250,942

 
$
222,839

Global (Non-U.S.) P&C
 
27,999

 
29,404

 
30,278

 
46,713

 
48,793

 
 
134,394

 
180,052

Global Specialty
 
78,278

 
50,959

 
69,244

 
59,214

 
61,379

 
 
257,696

 
227,383

Catastrophe
 
(13,069
)
 
2,612

 
(6,046
)
 
33,885

 
(4,374
)
 
 
17,381

 
91,225

Total Non-life net prior year reserve development
 
$
169,443

 
$
165,763

 
$
160,880

 
$
164,327

 
$
173,000

 
 
$
660,413

 
$
721,499

Non-life segment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net prior year reserve development due to changes in premiums
 
$
(8,389
)
 
$
(11,215
)
 
$
(8,631
)
 
$
(9,669
)
 
$
(23,458
)
 
 
$
(37,940
)
 
$
(70,810
)
Net prior year reserve development due to all other factors (2)
 
177,832

 
176,978

 
169,511

 
173,996

 
196,458

 
 
698,353

 
792,309

Total Non-life net prior year reserve development
 
$
169,443

 
$
165,763

 
$
160,880

 
$
164,327

 
$
173,000

 
 
$
660,413

 
$
721,499

Life and Health segment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net prior year reserve development due to GMDB (1)
 
$
3,481

 
$
(329
)
 
$
980

 
$
3,031

 
$
6,388

 
 
$
7,163

 
$
26,617

Net prior year reserve development due to all other factors (2)
 
5,620

 
1,925

 
4,669

 
(338
)
 
(698
)
 
 
11,875

 
12,427

Total Life and Health net prior year reserve development
 
$
9,101

 
$
1,596

 
$
5,649

 
$
2,693

 
$
5,690

 
 
$
19,038

 
$
39,044

 
(1)
The guaranteed minimum death benefit (GMDB) reserves are sensitive to volatility in certain referenced global equity markets. At December 31, 2014, a 10% increase in the referenced global equity market would have decreased reserves by approximately $2.4 million, while a 10% decrease in the referenced global equity market would have increased reserves by approximately $3.0 million.
(2)
Net prior year reserve development due to all other factors includes, but is not limited to loss experience, changes in assumptions and changes in methodology.


29



PartnerRe Ltd.
Natural Catastrophe Probable Maximum Losses (PMLs)
(Expressed in millions of U.S. dollars)
(Unaudited)
Single occurrence estimated net PML exposure (1)(2) 
 
 
 
 
 
October 1, 2014 (2)
 
July 1, 2014 (2)
 
 
April 1, 2014
 
January 1, 2014
 
October 1, 2013
Zone
 
Peril
 
1-in-250
year PML
 
1-in-500
year PML
(Earthquake
perils only)
 
1-in-250
year PML
 
1-in-500
year PML
(Earthquake
perils only)
 
 
1-in-250
year PML
 
1-in-500
year PML
(Earthquake
perils only)
 
1-in-250
year PML
 
1-in-500
year PML
(Earthquake
perils only)
 
1-in-250
year PML
 
1-in-500
year PML
(Earthquake
perils only)
U.S. Southeast
 
Hurricane
 
$
757

 
 
 
$
757

 
 
 
 
$
966

 
 
 
$
908

 
 
 
$
1,054

 
 
U.S. Northeast
 
Hurricane
 
909

 
 
 
909

 
 
 
 
1,014

 
 
 
1,008

 
 
 
1,121

 
 
U.S. Gulf Coast
 
Hurricane
 
870

 
 
 
870

 
 
 
 
978

 
 
 
960

 
 
 
1,025

 
 
Caribbean
 
Hurricane
 
189

 
 
 
189

 
 
 
 
183

 
 
 
192

 
 
 
276

 
 
Europe
 
Windstorm
 
722

 
 
 
722

 
 
 
 
630

 
 
 
626

 
 
 
872

 
 
Japan
 
Typhoon
 
145

 
 
 
145

 
 
 
 
147

 
 
 
128

 
 
 
124

 
 
California
 
Earthquake
 
588

 
$
675

 
588

 
$
675

 
 
587

 
$
689

 
589

 
$
668

 
575

 
$
679

British Columbia
 
Earthquake
 
204

 
391

 
204

 
391

 
 
209

 
431

 
214

 
378

 
305

 
513

Japan
 
Earthquake
 
427

 
481

 
427

 
481

 
 
433

 
465

 
432

 
466

 
435

 
457

Australia
 
Earthquake
 
367

 
495

 
367

 
495

 
 
348

 
449

 
332

 
426

 
418

 
552

New Zealand
 
Earthquake
 
218

 
279

 
218

 
279

 
 
193

 
222

 
203

 
223

 
250

 
272

 
(1)
The PML estimates are pre-tax and net of retrocession and reinstatement premiums. The peril zones in this disclosure are major peril zones for the industry. The Company has exposures in other peril zones that can potentially generate losses greater than the PML estimates in this disclosure.
(2)
Effective July 1, 2014, the Company introduced a new methodology to calculate the Natural Catastrophe PML that uses a more granular application of pricing adjustments, correlation, and retrocession at the treaty level. In the above table, only the October 1, 2014 and July 1, 2014 PML data reflects the new methodology. The table on page 31 shows the impact of the new methodology on the gross PML data reported as of April 1, 2014.
For more information regarding cautionary language related to the Natural Catastrophe PML disclosure and the forward-looking statements, as well as uncertainties and limitations associated with certain assumptions and the methodology used, you must refer to the Company’s natural catastrophe PML information and definitions, see Business - Natural Catastrophe Probable Maximum Loss (PML) in Item 1 of Part 1 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.


30


PartnerRe Ltd.
Natural Catastrophe Probable Maximum Losses (PMLs)
(Unaudited)
Impact of new methodology on estimated gross PML exposure (April 1, 2014) (1) 
 
 
 
 
 
April 1, 2014 (1)
Zone
 
Peril
 
1-in-250
year PML
 
1-in-500
year PML
(Earthquake
perils only)
U.S. Southeast
 
Hurricane
 
(12
)%
 
 
U.S. Northeast
 
Hurricane
 
(5
)
 
 
U.S. Gulf Coast
 
Hurricane
 
(7
)
 
 
Caribbean
 
Hurricane
 
3

 
 
Europe
 
Windstorm
 
9

 
 
Japan
 
Typhoon
 
1

 
 
California
 
Earthquake
 
(8
)
 
(3
)%
British Columbia
 
Earthquake
 
(5
)
 
—

Japan
 
Earthquake
 
(1
)
 
(3
)
Australia
 
Earthquake
 
—

 
4

New Zealand
 
Earthquake
 
—

 
4

 
(1)
Effective July 1, 2014, the Company introduced a new methodology to calculate the Natural Catastrophe PML that uses a more granular application of pricing adjustments, correlation, and retrocession at the treaty level. The table above shows the impact of the new methodology on the gross PML data reported as of April 1, 2014 (see page 30).
For more information regarding cautionary language related to the Natural Catastrophe PML disclosure and the forward-looking statements, as well as uncertainties and limitations associated with certain assumptions and the methodology used, you must refer to the Company’s natural catastrophe PML information and definitions, see Business - Natural Catastrophe Probable Maximum Loss (PML) in Item 1 of Part 1 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.


31




PartnerRe Ltd.
Reconciliation of GAAP and non-GAAP measures
(in thousands of U.S. dollars, except per share data)(Unaudited) 
 
For the three months ended
 
 
For the year ended
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
 
December 31,
 
December 31,
 
2014
 
2014
 
2014
 
2014
 
2013
 
 
2014
 
2013
Reconciliation of GAAP and non-GAAP measures:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annualized return on beginning diluted book value per common share calculated with net income per share attributable to common shareholders (1)
19.3
 %
 
13.2
 %
 
18.4
 %
 
20.5
 %
 
18.9
%
 
 
17.9
 %
 
10.5
 %
Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annualized net realized and unrealized investment gains (losses), net of tax, on beginning diluted book value per common share (1)
6.0

 
(2.5
)
 
8.8

 
8.0

 
6.7

 
 
5.1

 
(2.2
)
Annualized net foreign exchange (losses) gains, net of tax, on beginning diluted book value per common share (1)
(2.2
)
 
(0.9
)
 
(0.2
)
 
(0.1
)
 
0.3

 
 
(0.8
)
 
—

Annualized net interest in (losses) earnings of equity method investments, net of tax, on beginning diluted book value per common share (1)
(0.1
)
 
0.2

 
0.3

 
0.3

 
0.4

 
 
0.2

 
0.2

Annualized loss on redemption of preferred shares, on beginning diluted book value per common share (1)
—

 
—

 
—

 
—

 
—

 
 
—

 
(0.2
)
Withholding tax on inter-company dividends, net of tax, on beginning diluted book value per common share (1)
(0.4
)
 
—

 
—

 
—

 
—

 
 
(0.1
)
 
—

Annualized operating return on beginning diluted book value per common share (1)
16.0
 %
 
16.4
 %
 
9.5
 %
 
12.3
 %
 
11.5
%
 
 
13.5
 %
 
12.7
 %
Net income attributable to PartnerRe
$
276,893

 
$
196,398

 
$
271,841

 
$
309,843

 
$
271,788

 
 
$
1,054,974

 
$
664,008

Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net realized and unrealized investment gains (losses), net of tax
82,128

 
(35,426
)
 
123,734

 
115,817

 
91,781

 
 
286,252

 
(127,182
)
Net foreign exchange (losses) gains, net of tax
(29,824
)
 
(11,913
)
 
(3,175
)
 
(971
)
 
3,869

 
 
(45,883
)
 
2,521

Interest in (losses) earnings of equity method investments, net of tax
(1,810
)
 
2,893

 
3,590

 
3,903

 
4,549

 
 
8,577

 
9,075

Withholding tax on inter-company dividends, net of tax
(6,125
)
 
—

 
—

 
—

 
—

 
 
(6,125
)
 
—

Dividends to preferred shareholders
14,184

 
14,184

 
14,184

 
14,184

 
14,184

 
 
56,735

 
57,861

Operating earnings attributable to PartnerRe common shareholders
$
218,340

 
$
226,660

 
$
133,508

 
$
176,910

 
$
157,405

 
 
$
755,418

 
$
721,733

Per diluted common share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to PartnerRe common shareholders
$
5.26

 
$
3.60

 
$
5.02

 
$
5.61

 
$
4.76

 
 
$
19.51

 
$
10.58

Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net realized and unrealized investment gains (losses), net of tax
1.64

 
(0.70
)
 
2.41

 
2.20

 
1.70

 
 
5.60

 
(2.25
)
Net foreign exchange (losses) gains, net of tax
(0.60
)
 
(0.23
)
 
(0.06
)
 
(0.02
)
 
0.07

 
 
(0.90
)
 
0.04

Loss on redemption of preferred shares
—

 
—

 
—

 
—

 
—

 
 
—

 
(0.16
)
Interest in (losses) earnings of equity method investments, net of tax
(0.03
)
 
0.06

 
0.07

 
0.07

 
0.08

 
 
0.17

 
0.16

Withholding tax on inter-company dividends, net of tax
(0.12
)
 
—

 
—

 
—

 
—

 
 
(0.12
)
 
—

Operating earnings attributable to PartnerRe common shareholders
$
4.37

 
$
4.47

 
$
2.60

 
$
3.36

 
$
2.91

 
 
$
14.76

 
$
12.79

(1)
 Excluding preferred shares of $853,750 at January 1, 2014 and $893,750 at January 1, 2013.

32


PartnerRe Ltd.
Reconciliation of GAAP and non-GAAP measures
(in thousands of U.S. dollars, except share and per share data)
(Unaudited)
 
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
 
December 31,
 
2014
 
2014
 
2014
 
2014
 
2013
 
 
2012
Reconciliation of GAAP and non-GAAP measures:
 
 
 
 
 
 
 
 
 
 
 
 
Total shareholders’ equity
$
7,104,411

 
$
7,066,256

 
$
6,957,403

 
$
6,840,599

 
$
6,766,159

 
 
$
6,933,496

Less:
 
 
 
 
 
 
 
 
 
 
 
 
Preferred shares, aggregate liquidation value
853,750

 
853,750

 
853,750

 
853,750

 
853,750

 
 
893,750

Noncontrolling interests
55,501

 
52,276

 
47,356

 
59,671

 
56,627

 
 
—

Common shareholders’ equity attributable to PartnerRe
6,195,160

 
6,160,230

 
6,056,297

 
5,927,178

 
5,855,782

 
 
6,039,746

Less:
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
456,380

 
456,380

 
456,380

 
456,380

 
456,380

 
 
456,380

Intangible assets, net of tax
105,652

 
109,327

 
111,990

 
116,331

 
120,900

 
 
141,249

Tangible book value
$
5,633,128

 
$
5,594,523

 
$
5,487,927

 
$
5,354,467

 
$
5,278,502

 
 
$
5,442,117

Common shares and common share equivalents outstanding
49,087,412

 
50,513,695

 
50,910,028

 
51,935,217

 
53,596,034

 
 
59,893,366

Equals:
 
 
 
 
 
 
 
 
 
 
 
 
Diluted tangible book value per common share
$
114.76

 
$
110.75

 
$
107.80

 
$
103.10

 
$
98.49

 
 
$
90.86



33


PartnerRe Ltd.
Reconciliation of GAAP and non-GAAP measures
(in thousands of U.S. dollars, except share and per share data)
(Unaudited)
 
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
 
December 31,
 
2014
 
2014
 
2014
 
2014
 
2013
 
 
2012
Reconciliation of GAAP and non-GAAP measures:
 
 
 
 
 
 
 
 
 
 
 
 
Total shareholders’ equity
$
7,104,411

 
$
7,066,256

 
$
6,957,403

 
$
6,840,599

 
$
6,766,159

 
 
$
6,933,496

Less:
 
 
 
 
 
 
 
 
 
 
 
 
Preferred shares, aggregate liquidation value
853,750

 
853,750

 
853,750

 
853,750

 
853,750

 
 
893,750

Noncontrolling interests
55,501

 
52,276

 
47,356

 
59,671

 
56,627

 
 
—

Common shareholders’ equity attributable to PartnerRe
6,195,160

 
6,160,230

 
6,056,297

 
5,927,178

 
5,855,782

 
 
6,039,746

Less:
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
456,380

 
456,380

 
456,380

 
456,380

 
456,380

 
 
456,380

Intangible assets, net of tax
105,652

 
109,327

 
111,990

 
116,331

 
120,900

 
 
141,249

Tangible book value
5,633,128

 
5,594,523

 
5,487,927

 
5,354,467

 
5,278,502

 
 
5,442,117

Net unrealized gains on fixed income securities and funds held - directly managed, net of tax (NURGL)
355,028

 
316,706

 
388,648

 
299,871

 
223,995

 
 
657,604

Book value excluding NURGL
$
5,840,132

 
$
5,843,524

 
$
5,667,649

 
$
5,627,307

 
$
5,631,787

 
 
$
5,382,142

Tangible book value excluding NURGL
$
5,278,100

 
$
5,277,817

 
$
5,099,279

 
$
5,054,596

 
$
5,054,507

 
 
$
4,784,513

Divided by:
 
 
 
 
 
 
 
 
 
 
 
 
Number of common shares and common share equivalents outstanding
49,087,412

 
50,513,695

 
50,910,028

 
51,935,217

 
53,596,034

 
 
59,893,366

Equals:
 
 
 
 
 
 
 
 
 
 
 
 
Diluted book value per common share excluding NURGL
$
118.97

 
$
115.68

 
$
111.33

 
$
108.35

 
$
105.08

 
 
$
89.86

Diluted tangible book value per common share excluding NURGL
$
107.52

 
$
104.48

 
$
100.16

 
$
97.33

 
$
94.31

 
 
$
79.88



34


PartnerRe Ltd.
Diluted Book Value per Common Share - Treasury Stock Method (1) 
(in thousands of U.S. dollars, except share and per share data)
(Unaudited)
 
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
 
December 31,
 
2014
 
2014
 
2014
 
2014
 
2013
 
 
2012
Basic book value per common share
 
 
 
 
 
 
 
 
 
 
 
 
Total shareholders’ equity
$
7,104,411

 
$
7,066,256

 
$
6,957,403

 
$
6,840,599

 
$
6,766,159

 
 
$
6,933,496

Less:
 
 
 
 
 
 
 
 
 
 
 
 
Preferred shares, aggregate liquidation value
853,750

 
853,750

 
853,750

 
853,750

 
853,750

 
 
893,750

Noncontrolling interests
55,501

 
52,276

 
47,356

 
59,671

 
56,627

 
 
—

Common shareholders’ equity attributable to PartnerRe
$
6,195,160

 
$
6,160,230

 
$
6,056,297

 
$
5,927,178

 
$
5,855,782

 
 
$
6,039,746

Basic common shares outstanding
47,836,284

 
49,347,349

 
49,822,482

 
50,859,821

 
52,443,434

 
 
58,909,375

Basic book value per common share
$
129.51

 
$
124.83

 
$
121.56

 
$
116.54

 
$
111.66

 
 
$
102.53

Common shareholders’ equity attributable to PartnerRe
$
6,195,160

 
$
6,160,230

 
$
6,056,297

 
$
5,927,178

 
$
5,855,782

 
 
$
6,039,746

Basic common shares outstanding
47,836,284

 
49,347,349

 
49,822,482

 
50,859,821

 
52,443,434

 
 
58,909,375

Add:
 
 
 
 
 
 
 
 
 
 
 
 
Stock options and other
1,997,735

 
2,005,535

 
2,121,937

 
2,230,335

 
2,382,771

 
 
2,892,514

Restricted stock units
931,283

 
895,359

 
893,521

 
848,006

 
870,054

 
 
864,269

Less:
 
 
 
 
 
 
 
 
 
 
 
 
Stock options and other bought back via treasury stock method
1,677,890

 
1,734,548

 
1,927,912

 
2,002,945

 
2,100,225

 
 
2,772,792

Diluted common shares and common share equivalents outstanding
49,087,412

 
50,513,695

 
50,910,028

 
51,935,217

 
53,596,034

 
 
59,893,366

Diluted book value per common share
$
126.21

 
$
121.95

 
$
118.96

 
$
114.13

 
$
109.26

 
 
$
100.84

 
(1)
This method assumes that proceeds received upon exercise of options will be used to repurchase the Company’s common shares at the average market price. Unvested restricted stock and the dilutive impact of the Company’s forward sale contracts, if any, are also added to determine the diluted common shares and common share equivalents outstanding.


35



PartnerRe Ltd.
Diluted Book Value per Common Share - Rollforward
(in millions of U.S. dollars, except per share data)
(Unaudited)
 
 
As at and for the three months ended
December 31, 2014
 
 
As at and for the year ended
December 31, 2014
 
Common
shareholders’ equity
 
Diluted book value
per common share
 
 
Common
shareholders’ equity
 
Diluted book value
per common share
Common shareholders’ equity attributable to PartnerRe / diluted book value per common share at beginning of period
$
6,160

 
$
121.95

 
 
$
5,856

 
$
109.26

Technical result
251

 
5.02

 
 
932

 
18.21

Other expenses
(123
)
 
(2.45
)
 
 
(450
)
 
(8.79
)
Net investment income
115

 
2.30

 
 
480

 
9.37

Amortization of intangible assets
(6
)
 
(0.13
)
 
 
(27
)
 
(0.53
)
Other, net
(5
)
 
(0.10
)
 
 
(40
)
 
(0.77
)
Operating income tax benefit (expense)
—

 
0.01

 
 
(83
)
 
(1.62
)
Preferred dividends
(14
)
 
(0.28
)
 
 
(57
)
 
(1.11
)
Operating earnings
218

 
4.37

 
 
755

 
14.76

Net realized and unrealized investment gains, net of tax
82

 
1.64

 
 
286

 
5.60

Net foreign exchange losses, net of tax
(30
)
 
(0.60
)
 
 
(46
)
 
(0.90
)
Interest in (losses) earnings of equity method investments, net of tax
(1
)
 
(0.03
)
 
 
9

 
0.17

Withholding tax on inter-company dividend, net of tax
(6
)
 
(0.12
)
 
 
(6
)
 
(0.12
)
Net income attributable to PartnerRe common shareholders
263

 
5.26

 
 
998

 
19.51

Common share dividends
(33
)
 
(0.67
)
 
 
(134
)
 
(2.68
)
Change in currency translation adjustment
(12
)
 
(0.24
)
 
 
(9
)
 
(0.17
)
Repurchase of common shares, net
(170
)
 
0.26

 
 
(503
)
 
0.55

Change in other accumulated comprehensive income or loss, net of tax
(13
)
 
(0.27
)
 
 
(13
)
 
(0.25
)
Impact of change in number of common and common share equivalents outstanding
n/a

 
(0.08
)
 
 
n/a

 
(0.01
)
Common shareholders’ equity attributable to PartnerRe / diluted book value per common share at end of period
$
6,195

 
$
126.21

 
 
$
6,195

 
$
126.21

Goodwill
(456
)
 
(9.30
)
 
 
(456
)
 
(9.30
)
Intangible assets, net of tax
(106
)
 
(2.15
)
 
 
(106
)
 
(2.15
)
Tangible common shareholders’ equity attributable to PartnerRe / diluted tangible book value per common share at end of period
$
5,633

 
114.76

 
 
$
5,633

 
$
114.76


36


PartnerRe Ltd.
Diluted Book Value per Common Share - Rollforward
(in millions of U.S. dollars, except per share data)
(Unaudited)
 
 
As at and for the year ended
December 31, 2013
 
 
As at and for the year ended
December 31, 2012
 
Common
shareholders’ equity
 
Diluted book value
per common share
 
 
Common
shareholders’ equity
 
Diluted book value
per common share
Common shareholders’ equity attributable to PartnerRe / diluted book value per common share at beginning of period
$
6,040

 
$
100.84

 
 
$
5,574

 
$
84.82

Technical result
962

 
17.06

 
 
744

 
11.70

Other expenses
(500
)
 
(8.87
)
 
 
(411
)
 
(6.47
)
Net investment income
484

 
8.58

 
 
571

 
8.98

Amortization of intangible assets
(27
)
 
(0.48
)
 
 
(32
)
 
(0.50
)
Other, net
(47
)
 
(0.85
)
 
 
(36
)
 
(0.58
)
Operating income tax expense
(92
)
 
(1.63
)
 
 
(110
)
 
(1.73
)
Preferred dividends
(58
)
 
(1.02
)
 
 
(62
)
 
(0.97
)
Operating earnings
722

 
12.79

 
 
664

 
10.43

Net realized and unrealized investment (losses) gains, net of tax
(127
)
 
(2.25
)
 
 
392

 
6.17

Net foreign exchange gains, net of tax
2

 
0.04

 
 
8

 
0.13

Loss on redemption of preferred shares
(9
)
 
(0.16
)
 
 
—

 
—

Interest in earnings of equity method investments, net of tax
9

 
0.16

 
 
9

 
0.14

Net income attributable to PartnerRe common shareholders
597

 
10.58

 
 
1,073

 
16.87

Common share dividends
(142
)
 
(2.56
)
 
 
(156
)
 
(2.48
)
Change in currency translation adjustment
(32
)
 
(0.56
)
 
 
28

 
0.45

Repurchase of common shares, net
(616
)
 
0.84

 
 
(474
)
 
2.07

Preferred shares issuance costs
(9
)
 
(0.15
)
 
 
—

 
—

Recognition of loss on redemption of preferred shares
9

 
0.16

 
 
—

 
—

Change in other accumulated comprehensive income or loss, net of tax
9

 
0.16

 
 
(5
)
 
(0.08
)
Impact of change in number of common and common share equivalents outstanding
n/a

 
(0.05
)
 
 
n/a

 
(0.81
)
Common shareholders’ equity attributable to PartnerRe / diluted book value per common share at end of period
$
5,856

 
$
109.26

 
 
$
6,040

 
$
100.84

Goodwill
(456
)
 
(8.51
)
 
 
(456
)
 
(7.62
)
Intangibles, net of tax
(121
)
 
(2.26
)
 
 
(142
)
 
(2.36
)
Tangible common shareholders’ equity attributable to PartnerRe / diluted tangible book value per common share at end of period
$
5,279

 
$
98.49

 
 
$
5,442

 
$
90.86



37