EX-99.1 2 dp03180_ex9901.htm
News Release

PartnerRe Ltd. Reports Second Quarter and Half Year 2006 Results

  • Second Quarter Net Income per Share of $1.20; Operating Earnings per Share of $2.01
  • Annualized Second Quarter Net Income ROE of 10.7%; Annualized Operating ROE of 18.0%
  • Half Year Net Income per Share of $4.40; Operating Earnings per Share of $4.33
  • Half Year Annualized Net Income ROE of 19.7%; Annualized Operating ROE of 19.4%
  • Book Value per Share of $46.62, an increase of 4.6% year-to-date for 2006

PEMBROKE, Bermuda, July 24, 2006 -- PartnerRe Ltd. (NYSE:PRE) today reported net income of $77.5 million, or $1.20 per share on a fully diluted basis, for the second quarter of 2006. This net income includes net after-tax realized losses on investments of $47.0 million or $0.81 per share. Net income for the second quarter of 2005 including net after-tax realized gains on investments of $37.0 million or $0.67 per share, was $159.9 million or $2.72 per share. Operating earnings for the second quarter of 2006 were $115.9 million or $2.01 per share on a fully diluted basis. This compares to operating earnings of $114.3 million, or $2.05 per share, for the second quarter of 2005. Operating earnings exclude net after-tax realized investment gains and losses and are calculated after payment of preferred dividends. All references to per share amounts are on a fully diluted basis.

Summary unaudited consolidated financial data for the period is set out below.

U.S.$ thousands (except per share amounts and ratios) Three months ended June 30 Six months ended June 30
  2006 2005 2006 2005
Net Premiums Written $815,893 $763,855 $2,160,497 $2,178,724
Net Premiums Earned $858,963 $880,259 $1,691,784 $1,776,671
Non-life Combined Ratio 90.3% 89.4% 89.1% 93.3%
Net Income $77,531 $159,909 $270,774 $271,324
Net Income per share (a) $1.20 $2.72 $4.40 4.56
Net Operating Earnings (a) $115,932 $114,304 $249,676 $181,857
Net Operating Earnings per share (a) $2.01 $2.05 $4.33 $3.26

  (a) Net income per share is defined as net income available to common shareholders divided by the weighted average number of fully diluted shares outstanding for the period. Net income available to common shareholders is defined as net income less preferred dividends. Net operating earnings is net income available to common shareholders excluding after-tax net realized gains/losses on investments. Net


  PartnerRe Ltd. Telephone +1 441 292 0888
  Chesney House, Fax +1 441 292 6080
  96 Pitts Bay Road www.partnerre.com
  Pembroke, Bermuda HM 08





News Release

operating earnings per share is defined as net operating earnings divided by the weighted average number of fully diluted shares outstanding for the period. Per share results referenced in the text of this press release are on a fully diluted basis.

Net premiums written for the second quarter 2006 were $815.9 million, a 7% increase from the second quarter of 2005. Total revenues for the quarter declined 10% as compared to the second quarter of 2005 to $921.1 million, including $859.0 million of net premiums earned, net investment income of $108.3 million, and net realized investment losses of $58.9 million.

For the first six months of 2006, net premiums written were $2.2 billion, representing a 1% decline from the same period in 2005. Net income was $270.8 million or $4.40 per share. Net income for the period includes a net after-tax realized gain on investments of $3.8 million or $0.07 per share. Operating earnings were $249.7 million, or $4.33 per share. Net income for the first six months of 2005 was $271.3 million or $4.56 per share including net after-tax realized gains of $72.2 million, or $1.30 per share. Operating earnings for the same period in 2005 were $181.9 million or $3.26 per share. Total revenues for the first six months of 2006 were $1.9 billion, including $1.7 billion of net premiums earned, net investment income of $208.3 million, and net realized investment losses of $3.8 million. Total revenues for the same period in 2005 were $2.1 billion.

Separately, the Company announced today that its Board of Directors declared a regular quarterly dividend of $0.40 per common share. The dividend will be payable on September 1, 2006, to common shareholders of record on August 22, 2006, with the stock trading ex-dividend commencing August 18, 2006.

Results by Segment

The Non-Life segment reported net premiums written of $706 million for the second quarter, up 9% as compared to the second quarter of 2005. The combined ratio was 90.3% for the second quarter of 2006, compared to 89.4% for the same period in 2005. The Non-Life technical result was $121 million for the second quarter of 2006, compared to $131 million in 2005. For the first six months, Non-Life net premiums written were $1.9 billion, down 3% from the same period in 2005. The six month technical result was $255 million, compared to $206 million for the same period in 2005. The combined ratio for the six month period was 89.1% compared to 93.3% in 2005.

The U.S. Property and Casualty business, which represents approximately 21% of total net premiums written for the quarter, reported net premiums written of $170 million, up 13% over the prior year’s second quarter. Net premiums earned increased marginally to $205

  PartnerRe Ltd. Telephone +1 441 292 0888
  Chesney House, Fax +1 441 292 6080
  96 Pitts Bay Road www.partnerre.com
  Pembroke, Bermuda HM 08





News Release

million during the quarter when compared to the same period in 2005. The technical ratio for this sub-segment was 106.3%, compared to 94.4% in the second quarter of 2005. For the first six months of 2006, net premiums written were $466 million, essentially flat with the first six months of 2005. The six-month technical ratio was 102.0%, compared to 95.9% in 2005. The technical result for the half-year was a loss of $8 million compared to a gain of $17 million in 2005.

The Global (Non-U.S.) Property and Casualty business, which represents approximately 15% of total net premiums written for the quarter, reported net premiums written of $127 million for the second quarter of 2006, compared to $157 million for the same period in 2005. Net premiums earned during the quarter were $181 million, down 16% from $215 million in the same period last year. The technical ratio for this sub-segment was 79.2% compared to 96.9% for the same period in 2005. For the six months, net premiums written were down 16% to $491 million. The six-month technical ratio was 90.7%, compared to 92.2% in 2005. The technical result for the half-year was $34 million compared to $36 million in 2005.

The Worldwide Specialty business, which represents approximately 50% of total net premiums written for the quarter, reported net premiums written of $409 million for the second quarter, up 19% over the prior year quarter. Net premiums earned increased 2% during the quarter. This sub-segment’s technical ratio was 73.2%, compared to 67.9% for the second quarter of 2005. For the six-month period, net premiums written were up 4% to $936 million. The six-month technical ratio was 66.4%, compared to 77.5% in 2005. The technical result for the half-year was $229 million compared to $153 million in 2005.

The Life segment, which markets coverages primarily in Europe, Canada and Latin America, and represents approximately 13% of total net premiums written for the quarter, reported net premiums written of $103 million for the quarter, down 3% over the prior year quarter. The allocated underwriting result for the quarter was a loss of $1 million, compared to a gain of $4 million for the comparable period in 2005. For the six-month period, net premiums written increased 9% to $242 million, with an allocated underwriting gain of $2 million, compared to a gain of $7 million for the comparable period in 2005.

The ART (Alternative Risk Transfer) segment comprises structured risk transfer, principal finance, weather related products, and the results of the Company’s investment in Channel Re. The pre-tax contribution to net income, including the Company’s interest in the earnings of Channel Re, was $15 million for the second quarter of 2006 compared to a breakeven result for the second quarter of 2005. For the first six months of 2006, the pre-tax contribution to net income was $22 million compared to $15 million for the same period in 2005.

  PartnerRe Ltd. Telephone +1 441 292 0888
  Chesney House, Fax +1 441 292 6080
  96 Pitts Bay Road www.partnerre.com
  Pembroke, Bermuda HM 08




News Release

Balance Sheet Items

During the second quarter of 2006, total investments and cash were essentially flat at $9.9 billion due to the effect of rising interest rates. Over a trailing 12-month period, total investments and cash increased 14% due to incremental cash flow, good returns on the equity portfolio, and proceeds of $549 million from a capital raise in October 2005. Gross Non-Life reserves were flat this quarter, but increased by 18% to $6.8 billion over the last 12 months. During the second quarter, the Company’s estimate of Non-Life reserves for prior accident years developed favorably by $62 million, which is reflected in the quarter’s results. The overall second quarter prior year reserve development in the Non-Life segment includes net adverse development of $18 million in the U.S. P&C sub-segment, net favorable development of $47 million in the Global (Non-U.S.) P&C sub-segment, and net favorable development of $33 million in the Worldwide Specialty sub-segment. In the second quarter of 2005, Non-Life reserves for prior years developed favorably by $66 million.

At June 30, 2006, total assets were $14.6 billion, total capitalization was $4.0 billion, and total shareholders’ equity was $3.2 billion. This compares to total assets of $13.7 billion, total capitalization of $3.9 billion, and total shareholders’ equity of $3.1 billion at December 31, 2005. Book value per common share at June 30, 2006 was $46.62 on a fully diluted basis, compared to $44.57 per share at December 31, 2005.

Commentary and Outlook

“PartnerRe’s results and operating ROE during the second quarter and first half of 2006 are consistent with market conditions associated with the second half of the reinsurance cycle,” PartnerRe President & CEO Patrick Thiele said. “Generally, we are seeing strong pricing in capacity-restricted areas such as U.S. wind and energy, and consequently, PartnerRe saw growth in overall premium volume in the second quarter, driven by a combinations of increased pricing and new business in those lines. We continue to see mixed pricing in other lines with longer-tailed lines, particularly in the U.S., holding up better than shorter-tailed lines.”

Mr. Thiele added, “We continue to grow our GAAP book value despite the impact of rising interest rates, and we remain committed to our average book value growth target of 10% per year.”

  PartnerRe Ltd. Telephone +1 441 292 0888
  Chesney House, Fax +1 441 292 6080
  96 Pitts Bay Road www.partnerre.com
  Pembroke, Bermuda HM 08





News Release

The Company uses operating earnings, diluted operating earnings per share and operating return on beginning common shareholders’ equity to measure performance, as these measures focus on the underlying fundamentals of our operations without the influence of realized gains and losses from the sale of investments, which is driven by the timing of the disposition of investments and not by our operating performance. For planning purposes, the Company does not anticipate realized investment gains or losses. The Company also uses technical ratio and technical result as measures of underwriting performance. These metrics exclude other operating expenses. All references to per share amounts in the text of this press release are on the basis of fully diluted shares.

PartnerRe Ltd. is a leading global reinsurer, providing multi-line reinsurance to insurance companies. Risks reinsured include property, casualty, motor, agriculture, aviation/space, catastrophe, credit/surety, engineering, energy, marine, specialty property, specialty casualty, other lines, life/annuity and health, and alternative risk transfer solutions. At December 31, 2005, total revenues were $4.2 billion. As of June 30, 2006 total assets were $14.6 billion, total capitalization was $4.0 billion and total shareholders’ equity was $3.2 billion. Our major reinsurance operations have ratings of AA- (negative outlook) from Standard & Poor’s, Aa3 (negative outlook) from Moody’s, A+ (stable outlook) from A.M. Best, and AA (stable outlook) from Fitch.

PartnerRe on the Internet: www.partnerre.com

Forward-looking statements contained in this press release are based on the Company’s assumptions and expectations concerning future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are subject to significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. PartnerRe’s forward-looking statements could be affected by numerous foreseeable and unforeseeable events and developments such as exposure to catastrophe, or other large property and casualty losses, adequacy of reserves, risks associated with implementing business strategies, levels and pricing of new and renewal business achieved, credit, interest, currency and other risks associated with the Company’s investment portfolio, changes in accounting policies, and other factors identified in the Company’s filings with the Securities and Exchange Commission. In light of the significant uncertainties inherent in the forward-looking information contained herein, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. The Company disclaims any obligation to publicly update or revise any forward-looking information or statements.

  PartnerRe Ltd. Telephone +1 441 292 0888
  Chesney House, Fax +1 441 292 6080
  96 Pitts Bay Road www.partnerre.com
  Pembroke, Bermuda HM 08





News Release


Contacts: PartnerRe Ltd. Citigate Sard Verbinnen
(441) 292-0888 (212) 687-8080
Investor Contact: Robin Sidders Drew Brown/Robin Weinberg
Media Contact: Celia Powell

  PartnerRe Ltd. Telephone +1 441 292 0888
  Chesney House, Fax +1 441 292 6080
  96 Pitts Bay Road www.partnerre.com
  Pembroke, Bermuda HM 08




PartnerRe Ltd.
Consolidated Statements of Operations and Comprehensive Income
(Expressed in thousands of U.S dollars, except share and per share data)
(Unaudited)

    For the three
months ended
June 30,
2006		   For the three
months ended
June 30,
2005		   For the six
months ended
June 30,
2006		   For the six
months ended
June 30,
2005
                                 
Revenues                                
  Gross premiums written   $ 817,610     $ 767,457     $ 2,190,456     $ 2,213,393  
  Net premiums written   $ 815,893     $ 763,855     $ 2,160,497     $ 2,178,724  
  Decrease (increase) in unearned premiums     43,070       116,404       (468,713 )     (402,053 )
  Net premiums earned     858,963       880,259       1,691,784       1,776,671  
  Net investment income     108,320       90,224       208,272       177,077  
  Net realized investment (losses) gains     (58,928 )     55,588       (3,830 )     92,970  
  Other income (loss)     12,704       (1,143 )     20,460       11,659  
  Total revenues     921,059       1,024,928       1,916,686       2,058,377  
Expenses                                
  Losses and loss expenses and life policy benefits     541,377       546,171       1,040,195       1,160,036  
  Acquisition costs     199,425       203,426       398,682       413,351  
  Other operating expenses     76,482       74,500       150,912       147,190  
  Interest expense     13,200       7,363       25,921       14,691  
  Net foreign exchange losses     4,116       2,456       7,462       2,442  
  Total expenses     834,600       833,916       1,623,172       1,737,710  
                                 
Income before taxes and interest in earnings of equity investments     86,459       191,012       293,514       320,667  
  Income tax expense     11,845       33,497       27,976       54,289  
  Interest in earnings of equity investments     2,917       2,394       5,236       4,946  
Net income   $ 77,531     $ 159,909     $ 270,774     $ 271,324  
Preferred dividends   $ 8,631     $ 8,631     $ 17,263     $ 17,263  
Operating earnings available to common shareholders   $ 115,932     $ 114,304     $ 249,676     $ 181,857  
Comprehensive income, net of tax   $ 50,691     $ 207,082     $ 161,609     $ 202,265  
Per Share Data:                                
  Earnings per common share:                                
     Basic operating earnings   $ 2.04     $ 2.09     $ 4.40     $ 3.31  
     Net realized investment (losses) gains, net of tax     (0.83 )     0.67       0.07       1.32  
     Basic net income   $ 1.21     $ 2.76     $ 4.47     $ 4.63  
     Weighted average number of common shares                                
        outstanding     56,763.5       54,791.5       56,748.6       54,873.6  
                                   
     Diluted operating earnings   $ 2.01     $ 2.05     $ 4.33     $ 3.26  
     Net realized investment (losses) gains, net of tax     (0.81 )     0.67       0.07       1.30  
     Diluted net income   $ 1.20     $ 2.72     $ 4.40     $ 4.56  
     Weighted average number of common and                                
        common share equivalents outstanding     57,656.0       55,698.7       57,628.6       55,764.5  

7





     PartnerRe Ltd.
Consolidated Balance Sheets
(Expressed in thousands of U.S dollars, except share, per share and parenthetical share data)
(Unaudited)


    June 30,
2006		   December 31,
2005
                 
Assets                
  Investments:                
  Fixed maturities, at fair value                
  (amortized cost: 2006, $6,901,912; 2005, $6,682,243)   $ 6,758,874     $ 6,686,822  
  Short-term investments, at fair value                
  (amortized cost: 2006, $271,027; 2005, $231,442)     270,485       230,933  
  Equities, at fair value                
  (cost: 2006, $995,508; 2005, $1,246,192)     1,059,029       1,334,374  
  Trading securities, at fair value (cost: 2006, $295,505; 2005, $210,432)     297,619       220,311  
  Other invested assets     98,321       104,920  
  Total investments     8,484,328       8,577,360  
  Cash and cash equivalents, at fair value, which approximates amortized cost     1,407,979       1,001,378  
  Accrued investment income     139,607       143,548  
  Reinsurance balances receivable     1,873,063       1,493,507  
  Reinsurance recoverable on paid and unpaid losses     196,539       217,948  
  Funds held by reinsured companies     988,127       970,614  
  Deferred acquisition costs     551,229       437,741  
  Deposit assets     302,598       289,459  
  Net tax assets     91,120       87,667  
  Goodwill     429,519       429,519  
  Other     87,291       95,389  
Total assets   $ 14,551,400     $ 13,744,130  
Liabilities                
  Unpaid losses and loss expenses   $ 6,802,291     $ 6,737,661  
  Policy benefits for life and annuity contracts     1,279,769       1,223,871  
  Unearned premiums     1,650,518       1,136,233  
  Reinsurance balances payable     135,621       127,607  
  Ceded premiums payable     21,417       25,110  
  Funds held under reinsurance treaties     20,395       18,910  
  Deposit liabilities     348,951       333,820  
  Long-term debt     620,000       620,000  
  Net payable for securities purchased     123,962       93,318  
  Accounts payable, accrued expenses and other     132,518       128,627  
  Debt related to trust preferred securities     206,186       206,186  
Total liabilities     11,341,628       10,651,343  
Shareholders’ Equity                
  Common shares (par value $1.00, issued and outstanding:                
     2006, 56,799,778; 2005, 56,730,195)     56,800       56,730  
  Series C cumulative preferred shares (par value $1.00, issued and outstanding:                
     2006 and 2005, 11,600,000; aggregate liquidation preference: 2006 and 2005, $290,000,000)     11,600       11,600  
  Series D cumulative preferred shares (par value $1.00, issued and outstanding:                
     2006 and 2005, 9,200,000; aggregate liquidation preference: 2006 and 2005, $230,000,000)     9,200       9,200  
  Additional paid-in capital     1,391,816       1,373,992  
  Deferred compensation     -       (107 )
  Accumulated other comprehensive income:                
     Net unrealized (losses) gains on investments, net of tax     (71,711 )     77,049  
     Currency translation adjustment     52,209       12,614  
  Retained earnings     1,759,858       1,551,709  
Total shareholders' equity     3,209,772       3,092,787  
Total liabilities and shareholders' equity   $ 14,551,400     $ 13,744,130  
Shareholders’ Equity Per Common Share   $ 47.36     $ 45.35  
Diluted Book Value Per Common and Common Share Equivalents                
  Outstanding (assuming exercise of all stock-based awards)   $ 46.62     $ 44.57  
Number of Common and Common Share Equivalents Outstanding     57,692.2       57,724.1  

8





PartnerRe Ltd.
Supplementary Information
(in millions of U.S. dollars)

(Unaudited)

SEGMENT INFORMATION
For the three months ended June 30, 2006

      U.S. P&C       Global (Non-
U.S.) P&C 		      Worldwide
Specialty 		      Total Non-
Life
Segment 		      ART
Segment (A) 		      Life
Segment 		      Corporate       Total  
                                                                 
Gross premiums written   $ 170     $ 128     $ 408     $ 706     $ 7     $ 105     $ -     $ 818  
Net premiums written   $ 170     $ 127     $ 409     $ 706     $ 7     $ 103     $ -     $ 816  
Decrease (increase) in unearned premiums     35       54       (51 )     38       1       4       -       43  
Net premiums earned   $ 205     $ 181     $ 358     $ 744     $ 8     $ 107     $ -     $ 859  
Losses and loss expenses and                                                                
   life policy benefits     (170 )     (95 )     (192 )     (457 )     (3 )     (82 )     -       (542 )
Acquisition costs     (48 )     (48 )     (70 )     (166 )     (1 )     (32 )     -       (199 )
Technical result   $ (13 )   $ 38     $ 96     $ 121     $ 4     $ (7 )   $ -     $ 118  
Other income     n/a       n/a       n/a       -       13       -       -       13  
Other operating expenses     n/a       n/a       n/a       (48 )     (5 )     (7 )     (16 )     (76 )
Underwriting result     n/a       n/a       n/a     $ 73     $ 12     $ (14 )     n/a     $ 55  
Net investment income     n/a       n/a       n/a       n/a       -       13       95       108  
Allocated underwriting result (1)     n/a       n/a       n/a       n/a       n/a     $ (1 )     n/a       n/a  
Net realized investment losses     n/a       n/a       n/a       n/a       n/a       n/a       (59 )     (59 )
Interest expense     n/a       n/a       n/a       n/a       n/a       n/a       (13 )     (13 )
Net foreign exchange losses     n/a       n/a       n/a       n/a       n/a       n/a       (4 )     (4 )
Income tax expense     n/a       n/a       n/a       n/a       n/a       n/a       (12 )     (12 )
Interest in earnings of equity investments     n/a       n/a       n/a       n/a       3       n/a       n/a       3  
Net income     n/a       n/a       n/a       n/a       n/a       n/a       n/a     $ 78  
Loss ratio (2)     83.0 %     52.3 %     53.7 %     61.4 %                                
Acquisition ratio (3)     23.3       26.9       19.5       22.4                                  
Technical ratio (4)     106.3 %     79.2 %     73.2 %     83.8 %                                
Other operating expense ratio (5)                             6.5                                  
Combined ratio (6)                             90.3 %                                
                                                                 
For the three months ended June 30, 2005
                                                                 
      U.S. P&C       Global (Non-
U.S.) P&C 		      Worldwide
Specialty 		      Total Non-
Life
Segment 		      ART
Segment (A) 		      Life
Segment 		      Corporate       Total  
                                                                 
Gross premiums written   $ 150     $ 156     $ 345     $ 651     $ 7     $ 109     $ -     $ 767  
Net premiums written   $ 150     $ 157     $ 344     $ 651     $ 7     $ 106     $ -     $ 764  
Decrease (increase) in unearned premiums     51       58       6       115       (4 )     5       -       116  
Net premiums earned   $ 201     $ 215     $ 350     $ 766     $ 3     $ 111     $ -     $ 880  
Losses and loss expenses and                                                                
   life policy benefits     (142 )     (157 )     (166 )     (465 )     -       (81 )     -       (546 )
Acquisition costs     (48 )     (51 )     (71 )     (170 )     -       (33 )     -       (203 )
Technical result   $ 11     $ 7     $ 113     $ 131     $ 3     $ (3 )   $ -     $ 131  
Other loss     n/a       n/a       n/a       -       (1 )     -       -       (1 )
Other operating expenses     n/a       n/a       n/a       (49 )     (4 )     (6 )     (16 )     (75 )
Underwriting result     n/a       n/a       n/a     $ 82     $ (2 )   $ (9 )     n/a     $ 55  
Net investment income     n/a       n/a       n/a       n/a       -       13       77       90  
Allocated underwriting result (1)     n/a       n/a       n/a       n/a       n/a     $ 4       n/a       n/a  
Net realized investment gains     n/a       n/a       n/a       n/a       n/a       n/a       56       56  
Interest expense     n/a       n/a       n/a       n/a       n/a       n/a       (7 )     (7 )
Net foreign exchange losses     n/a       n/a       n/a       n/a       n/a       n/a       (3 )     (3 )
Income tax expense     n/a       n/a       n/a       n/a       n/a       n/a       (33 )     (33 )
Interest in earnings of equity investments     n/a       n/a       n/a       n/a       2       n/a       n/a       2  
Net income     n/a       n/a       n/a       n/a       n/a       n/a       n/a     $ 160  
Loss ratio (2)     70.7 %     73.0 %     47.5 %     60.7 %                                
Acquisition ratio (3)     23.7       23.9       20.4       22.3                                  
Technical ratio (4)     94.4 %     96.9 %     67.9 %     83.0 %                                
Other operating expense ratio (5)                             6.4                                  
Combined ratio (6)                             89.4 %                                

(A) The Company reports the results of Channel Re on a one-quarter lag. The 2006 and 2005 periods include the Company's share of Channel Re's net income in the amount of $2.8 million and $2.3 million, respectively.

(1) Allocated underwriting result is defined as net premiums earned and allocated net investment income less life policy benefits, acquisition costs and other operating expenses.
(2) Loss ratio is obtained by dividing losses and loss expenses by net premiums earned.
(3) Acquisition ratio is obtained by dividing acquisition costs by net premiums earned.
(4) Technical ratio is defined as the sum of the loss ratio and the acquisition ratio.
(5) Other operating expense ratio is obtained by dividing other operating expenses by net premiums earned.
(6) Combined ratio is the sum of the technical ratio and the other operating expense ratio.
 

9





PartnerRe Ltd.
Supplementary Information
 (in millions of U.S. dollars)
 (Unaudited)

SEGMENT INFORMATION
 For the six months ended June 30, 2006

      U.S. P&C       Global (Non-
U.S.) P&C 		      Worldwide
Specialty 		      Total Non-
Life
Segment 		      ART
Segment 		(A)     Life
Segment 		      Corporate       Total  
Gross premiums written   $ 466     $ 493     $ 956     $ 1,915     $ 26     $ 249     $ -     $ 2,190  
Net premiums written   $ 466     $ 491     $ 936     $ 1,893     $ 25     $ 242     $ -     $ 2,160  
Increase in unearned premiums     (62 )     (126 )     (255 )     (443 )     (10 )     (15 )     -       (468 )
     
   
   
   
   
   
   
   
Net premiums earned   $ 404     $ 365     $ 681     $ 1,450     $ 15     $ 227     $ -     $ 1,692  
Losses and loss expenses and                                                                
 life policy benefits     (313 )     (232 )     (319 )     (864 )     (7 )     (169 )     -       (1,040 )
Acquisition costs     (99 )     (99 )     (133 )     (331 )     (2 )     (66 )     -       (399 )
     
   
   
   
   
   
   
   
Technical result   $ (8 )   $ 34     $ 229     $ 255     $ 6     $ (8 )   $ -     $ 253  
Other income     n/a       n/a       n/a       -       20       -       -       20  
Other operating expenses     n/a       n/a       n/a       (96 )     (9 )     (14 )     (32 )     (151 )
     
   
   
   
   
   
   
   
Underwriting result     n/a       n/a       n/a     $ 159     $ 17     $ (22 )     n/a     $ 122  
Net investment income     n/a       n/a       n/a       n/a       -       24       184       208  
     
   
   
   
   
   
   
   
Allocated underwriting result (1)     n/a       n/a       n/a       n/a       n/a     $ 2       n/a       n/a  
Net realized investment losses     n/a       n/a       n/a       n/a       n/a       n/a       (3 )     (3 )
Interest expense     n/a       n/a       n/a       n/a       n/a       n/a       (26 )     (26 )
Net foreign exchange losses     n/a       n/a       n/a       n/a       n/a       n/a       (7 )     (7 )
Income tax expense     n/a       n/a       n/a       n/a       n/a       n/a       (28 )     (28 )
Interest in earnings of equity investments     n/a       n/a       n/a       n/a       5       n/a       n/a       5  
     
   
   
   
   
   
   
   
Net income     n/a       n/a       n/a       n/a       n/a       n/a       n/a     $ 271  
     
   
   
   
   
   
   
   
Loss ratio (2)     77.5 %     63.7 %     46.8 %     59.6 %                                
Acquisition ratio (3)     24.5       27.0       19.6       22.9                                  
     
   
   
   
                               
Technical ratio (4)     102.0 %     90.7 %     66.4 %     82.5 %                                
Other operating expense ratio (5)                             6.6                                  
                             
                               
Combined ratio (6)                             89.1 %                                
                             
                               

For the six months ended June 30, 2005

      U.S. P&C       Global (Non-
U.S.) P&C 		      Worldwide
Specialty 		      Total Non-
Life
Segment 		      ART
Segment 		(A)     Life
Segment 		      Corporate       Total
Gross premiums written   $ 461     $ 589 $ 920   $ 1,970   $ 13   $ 230   $ -   $ 2,213
Net premiums written   $ 462     $ 587 $ 895   $ 1,944   $ 13   $ 222   $ -   $ 2,179
Increase in unearned premiums   (39 )     (130 )   (215 )   (384 )   (8 )   (11 )   -   (403 )
     
Net premiums earned   $ 423     $ 457 $ 680   $ 1,560   $ 5   $ 211   $ -   $ 1,776
Losses and loss expenses and                
 life policy benefits   (304 )     (308 )   (386 )   (998 )   -   (162 )   -   (1,160 )
Acquisition costs   (102 )     (113 )   (141 )   (356 )   (1 )   (56 )   -   (413 )
     
Technical result   $  17     $ 36 $ 153   $ 206   $ 4   $ (7 )   $ -   $ 203
Other income    n/a   n/a   n/a   -   12   -   -   12
Other operating expenses    n/a   n/a   n/a   (102 )   (6 )   (11 )   (28 )   (147 )
Underwriting result   n/a   n/a   n/a     $ 104   $ 10   $ (18 )   n/a   $ 68
Net investment income    n/a   n/a   n/a   n/a   -   25   152   177
Allocated underwriting result (1)   n/a   n/a   n/a   n/a   n/a   $ 7   n/a   n/a
Net realized investment gains    n/a   n/a   n/a   n/a   n/a   n/a   93   93
Interest expense    n/a   n/a   n/a   n/a   n/a   n/a   (15 )   (15 )
Net foreign exchange losses    n/a   n/a   n/a   n/a   n/a   n/a   (3 )   (3 )
Income tax expense    n/a   n/a   n/a   n/a   n/a   n/a   (54 )   (54 )
Interest in earnings of equity investments    n/a   n/a   n/a   n/a   5   n/a   n/a   5
Net income   n/a   n/a   n/a   n/a   n/a   n/a   n/a   $ 271
Loss ratio (2)   71.9 %     67.4 %     56.7 %     63.9 %          
Acquisition ratio (3)   24.0   24.8   20.8   22.9        
Technical ratio (4)   95.9 %     92.2 %     77.5 %     86.8 %          
Other operating expense ratio (5)         6.5        
Combined ratio (6)         93.3 %          

(A) The Company reports the results of Channel Re on a one-quarter lag. The 2006 and 2005 periods include the Company's share of Channel Re's net income in the amount of $5.1 million and $4.8 million, respectively.

(1) Allocated underwriting result is defined as net premiums earned and allocated net investment income less life policy benefits, acquisition costs and other operating expenses.
(2) Loss ratio is obtained by dividing losses and loss expenses by net premiums earned.
(3) Acquisition ratio is obtained by dividing acquisition costs by net premiums earned.
(4) Technical ratio is defined as the sum of the loss ratio and the acquisition ratio.
(5) Other operating expense ratio is obtained by dividing other operating expenses by net premiums earned.
(6) Combined ratio is the sum of the technical ratio and the other operating expense ratio.

10





     PartnerRe Ltd.
Supplementary Information
 (Unaudited)

  For the three
months ended
June 30,
2006 		  For the three
months ended
June 30,
2005 		  For the six
months ended
June 30,
2006 		  For the six
months ended
June 30,
2005 		 
Distribution of Net Premiums Written by          
Line of Business:          
  Non-Life          
    Property and Casualty          
      Property   15 %   17 %   19 %   20 %
      Casualty   18   16   19   19  
      Motor   3   7   6   9  
    Worldwide Specialty          
      Agriculture   6   6   4   3  
      Aviation/Space   6   7   4   5  
      Catastrophe   16   11   16   13  
      Credit/Surety   7   8   5   6  
      Engineering   5   5   4   4  
      Energy   3   -   2   -  
      Marine   3   3   3   3  
      Specialty property   2   2   3   3  
      Specialty casualty   2   3   3   4  
  ART   1   1   1   1  
  Life   13   14   11   10  
                 
                 
Geographic Distribution of Gross Premiums Written:          
      North America   50 %   41 %   43 %   38 %
      Europe   36   44   44   50  
      Asia, Australia and New Zealand   9   11   8   8  
      Latin America, Caribbean and Africa   5   4   5   4  


  As at
June 30,
2006
Financial Strength Ratings:
Standard & Poor's AA-  
Moody's Aa3  
A.M. Best A+  
Fitch AA  


    As at
June 30,
2006		   As at
December 31,
2005
    (in thousands of U.S. dollars) (in thousands of U.S. dollars)
Capital Structure:        
Long-term debt   $ 620,000   15 %   $ 620,000   16 %
Trust preferred securities, aggregate liquidation (1)   200,000   5   200,000   5  
6.75% Series C cumulative preferred shares, aggregate liquidation   290,000   7   290,000   7  
6.5% Series D cumulative preferred shares, aggregate liquidation   230,000   6   230,000   6  
Common shareholders' equity   2,689,772   67   2,572,787   66  
 
Total Capital   $ 4,029,772   100 %   $ 3,912,787   100 %
 
         
(1) Neither the Trust that issued the securities nor PartnerRe Finance, which owns the Trust, meets the consolidation requirements of FIN 46(R). Accordingly, the Company shows the related intercompany debt of $206.2 million on its Consolidated Balance Sheets.

11





     PartnerRe Ltd.
Supplementary Information
 (Unaudited)

    As at
June 30,
2006 		    As at
December 31,
2005
Investment Portfolio:        
 Credit Quality   AAA   68 %   65 %
  AA   4   3
  A   13   15
  BBB   11   11
  Below Investment Grade/Unrated   4   6
                 
 By Class   U.S. Government   11 %   8 %
  U.S. Mortgage/Asset Backed   15   15
  U.S. Corporates   20   20
  Foreign Fixed Income   28   29
  Equities and Equity Substitutes   13   16
  Cash (net of pending transactions)   13   12
 Expected average duration       3.3 Yrs   3.3 Yrs
 Average yield to maturity at market       5.1 %   4.5 %
 (fixed income securities and cash)        
 Average Credit Quality       AA   AA

    For the three
months ended
June 30,
2006 		      For the three
months ended
June 30,
2005		     For the six
months ended
June 30,
2006		     For the six
months ended
June 30,
2005
    (in thousands of U.S. dollars except per share data)
Reconciliation of GAAP and non-GAAP measures:        
Annualized return on beginning common shareholders' equity        
calculated with net income available to common shareholders   10.7 %   21.4 %   19.7 %   17.9 %
Less:        
   Net realized investment (losses) gains, net of tax   (7.3 )   5.3   0.3   5.1
Annualized operating return on beginning common shareholders' equity   18.0 %   16.1 %   19.4 % 12.8 %
Net income   $ 77,531   $ 159,909   $ 270,774   $ 271,324
Less:        
   Net realized investment (losses) gains, net of tax   (47,032 )   36,974   3,835   72,204
   Dividends to preferred shareholders   8,631   8,631   17,263   17,263
Operating earnings available to common shareholders   $ 115,932   $ 114,304   $ 249,676   $ 181,857
Per diluted share:        
Net income   $ 1.20   $ 2.72   $ 4.40   $ 4.56
Less:        
   Net realized investment (losses) gains, net of tax   (0.81 )   0.67   0.07   1.30
Diluted operating earnings   $ 2.01   $ 2.05   $ 4.33   $ 3.26

12





     PartnerRe Ltd.
Supplementary Information
 (in thousands of U.S. dollars except share and per share data)
 (Unaudited)

  As at
June 30,
2006 		  As at
December 31,
2005
Reconciliation of GAAP and non-GAAP measures:    
Shareholders' equity   $ 3,209,772 $ 3,092,787
Less:    
 6.75% Series C cumulative preferred shares, aggregate liquidation   290,000   290,000
 6.5% Series D cumulative preferred shares, aggregate liquidation   230,000   230,000
Common shareholders' equity   $ 2,689,772 $ 2,572,787
Less:    
 Net unrealized (losses) gains on fixed    
   income securities, net of tax   (120,953 )   4,382
Book value excluding net unrealized gains or losses    
 on fixed income securities   $ 2,810,725 $ 2,568,405
Divided by:    
Number of common and common share equivalents outstanding   57,692.2   57,724.1
Equals:    
Diluted book value per common and common share equivalents    
 outstanding excluding net unrealized gains or losses on    
 fixed income securities   $ 48.72 $ 44.49

13