0000950103-07-001856.txt : 20070724 0000950103-07-001856.hdr.sgml : 20070724 20070724093005 ACCESSION NUMBER: 0000950103-07-001856 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20070723 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070724 DATE AS OF CHANGE: 20070724 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PARTNERRE LTD CENTRAL INDEX KEY: 0000911421 STANDARD INDUSTRIAL CLASSIFICATION: ACCIDENT & HEALTH INSURANCE [6321] IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14536 FILM NUMBER: 07995101 BUSINESS ADDRESS: STREET 1: WELLESLEY HOUSE SOUTH STREET 2: 90 PITTS BAY ROAD CITY: PEMBROKE STATE: D0 ZIP: HM 08 BUSINESS PHONE: 14412920888 MAIL ADDRESS: STREET 1: WELLESLEY HOUSE SOUTH STREET 2: 90 PITTS BAY ROAD CITY: PEMBROKE STATE: D0 ZIP: HM 08 FORMER COMPANY: FORMER CONFORMED NAME: PARTNER RE HOLDINGS LTD DATE OF NAME CHANGE: 19950725 8-K 1 dp06344e_8k.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant To Section 13 Or 15(d) of The Securities

Exchange Act of 1934

Date of report (Date of earliest event reported): July 23, 2007

PARTNERRE LTD.
(Exact name of registrant as specified in charter)

Bermuda	0-2253	Not Applicable
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

Wellesley House 5^th Floor 90 Pitts Bay Road Pembroke, Bermuda HM 08
(Address of principal executive offices)


Registrant’s telephone number, including area code: (441) 292-0888

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition

On July 23, 2007, PartnerRe Ltd. issued a press release reporting its 2007 second quarter results. A copy of the press release is attached hereto as Exhibit 99.1 and is hereby incorporated by reference.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Exhibit 99.1

Press Release of PartnerRe Ltd., dated July 23, 2007.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Index to Exhibits

Exhibit No.		Description
99.1		Press Release of PartnerRe Ltd., dated July 23, 2007

EX-99.1 2 dp06344e_ex9901.htm

Exhibit 99.1



News Release

PartnerRe Ltd. Reports Second Quarter and Half Year 2007 Results

§	Second Quarter Net Income per share of $1.66; Operating Earnings per share of $2.39
§	Second Quarter Annualized Net Income ROE of 11.8%; Annualized Operating ROE of 17.0%
§	Half Year Net Income per share of $4.42; Operating Earnings per share of $5.11
§	Half Year Annualized Net Income ROE of 15.7%; Annualized Operating ROE of 18.2%
§	Book Value of $58.96 per share, up 5% year-to-date, and 26% year over year

PEMBROKE, Bermuda, July 23, 2007 -- PartnerRe Ltd. (NYSE:PRE) today reported net income of $105.0 million, or $1.66 per share on a fully diluted basis, for the second quarter of 2007. This net income includes net after-tax realized losses on investments of $42.8 million, or $0.73 per share. Net income for the second quarter of 2006, including net after-tax realized losses on investments of $47.0 million, or $0.81 per share, was $77.5 million, or $1.20 per share. Operating earnings for the second quarter of 2007 were $139.2 million, or $2.39 per share on a fully diluted basis. This compares to operating earnings of $115.9 million, or $2.01 per share, for the second quarter of 2006. 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 in the text of this press release are on a fully diluted basis.

Commenting on the second quarter and half year 2007 results, PartnerRe President & Chief Executive Officer Patrick Thiele said, “PartnerRe had another strong quarter with an operating return on beginning shareholders’ equity of 17%. On a six-month basis, we achieved an 18% operating return on beginning shareholders’ equity. Despite the impact of rising interest rates, which had a negative effect on the market value of our bond portfolio, we grew GAAP book value per share by 1% during the quarter and 26% year over year to $58.96.”

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
	2007	2006	2007	2006
Net Premiums Written	$898,686	$815,893	$2,169,258	$2,160,497
Net Premiums Earned	$889,277	$858,963	$1,731,318	$1,691,784
Non-life Combined Ratio	85.7%	90.3%	85.6%	89.1%
Net Income	$105,021	$77,531	$274,288	$270,774
Net Income per share (a)	$1.66	$1.20	$4.42	$4.40
Operating Earnings (a)	$139,165	$115,932	$297,114	$249,676
Operating Earnings per share (a)	$2.39	$2.01	$5.11	$4.33

PartnerRe Ltd.

Wellesley House, 5^th Floor

90 Pitts Bay Road

Pembroke, Bermuda HM 08

Telephone +1 441 292 0888

Fax +1 441 292 6080

www.partnerre.com



News Release

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

Net premiums written for the second quarter of 2007 were $898.7 million, up 10% from $815.9 million in the second quarter of 2006, essentially driven by the Life segment and mix of business and timing issues in the Non-Life book. Total revenues for the second quarter 2007 were $957.6 million, up 4% from $921.1 million in the second quarter of 2006, and included $889.3 million of net premiums earned, which were up 4% over the second quarter of 2006; net investment income of $130.9 million - an increase of 21% over the second quarter of 2006; and pre-tax net realized investment losses of $53.6 million as compared to pre-tax net realized investment losses of $58.9 million for the second quarter of 2006.

For the first six months of 2007, net premiums written were $2.2 billion, essentially flat with the first six months of 2006. Net income was $274.3 million or $4.42 per share. Net income for the period includes net after-tax realized losses on investments of $40.1 million or $0.69 per share. Operating earnings were $297.1 million, or $5.11 per share. Net income for the first six months of 2006 was $270.8 million or $4.40 per share including net after-tax realized gains of $3.8 million, or $0.07 per share. Operating earnings for the same period in 2006 were $249.7 million or $4.33 per share. Total revenues for the first six months of 2007 were $1.9 billion, including $1.7 billion of net premiums earned, net investment income of $249.9 million, and net realized investment losses of $52.9 million. Total revenues for the same period in 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.

During the second quarter of 2007, the Company repurchased 585,800 common shares at a total cost of approximately $44.2 million. To date this year, the Company has repurchased 1,073,100 common shares at a total cost of $77.9 million. The Company has approximately 4.4 million common shares remaining under its current repurchase authorization.

Separately, the Company announced today that its Board of Directors declared a quarterly dividend of $0.43 per common share. The dividend will be payable on August 31, 2007, to common shareholders of record on August 21, 2007, with the stock trading ex-dividend commencing August 17, 2007.

PartnerRe Ltd.

Wellesley House, 5^th Floor

90 Pitts Bay Road

Pembroke, Bermuda HM 08

Telephone +1 441 292 0888

Fax +1 441 292 6080

www.partnerre.com



News Release

Results by Segment

The Non-Life segment reported net premiums written of $755 million for the quarter, up 7% as compared to the same period in 2006. The increase in net premiums written was driven by growth in the Worldwide Specialty sub-segment. Both the U.S. P&C and Global (Non-U.S.) P&C sub-segment net premiums written were flat for the second quarter of 2007 when compared with the same period in 2006. The combined ratio was 85.7% for the second quarter of 2007 compared to 90.3% for the same period in 2006. The Non-Life technical result was $157 million for the second quarter of 2007 compared to $121 million for the prior year period. For the first six months, Non-Life net premiums written were $1.9 billion, down 1% from the same period in 2006. The six month technical result was $311 million, compared to $255 million for the same period in 2006. The combined ratio for the six month period was 85.6% compared to 89.1% in 2006.

The U.S. Property and Casualty business, which represented 19% of total net premiums written for the quarter, reported net premiums written of $170 million for the second quarter of 2007, flat with last year’s second quarter. Net premiums earned were down 8% to $187 million in the second quarter of 2007 when compared with the same period in 2006. The technical ratio for this sub-segment was 89.1% for the 2007 second quarter, compared to 106.3% in the second quarter of 2006. The technical result for the second quarter 2007 was a gain of $20 million, compared to a loss of $13 million for the same period in 2006. For the first six months of 2007, net premiums written were $429 million, down 8% from the first six months of 2006. The six-month technical ratio was 91.1%, compared to 102.0% in 2006. The technical result for the half-year was a gain of $34 million compared to a loss of $8 million in 2006.

The Global (Non-U.S.) Property and Casualty business, which represented 14% of total net premiums written for the quarter, reported net premiums written of $127 million for the second quarter of 2007, flat with the same period in 2006. Net premiums earned during the quarter were $173 million, down 5% from $181 million in the second quarter 2006. The technical ratio for this sub-segment was 101.2% for the second quarter of 2007 compared to 79.2% for the same period in 2006, reflecting a higher-than-usual frequency of mid-sized loss events. For the six months, net premiums written were down 6% to $459 million. The six-month technical ratio was 96.9%, compared to 90.7% in 2006. The technical result for the half-year was $11 million compared to $34 million in 2006.

The Worldwide Specialty business, which represented 51% of total net premiums written for the quarter, reported net premiums written of $458 million for the second quarter of 2007, up

PartnerRe Ltd.

Wellesley House, 5^th Floor

90 Pitts Bay Road

Pembroke, Bermuda HM 08

Telephone +1 441 292 0888

Fax +1 441 292 6080

www.partnerre.com



News Release

12% from the second quarter of 2006. Net premiums earned were up 6% to $380 million for the quarter, compared to the same period in 2006. This sub-segment’s technical ratio was 63.3% for the second quarter of 2007 compared to 73.2% for the second quarter of 2006. For the six-month period, net premiums written were up 4% to $978 million. The six-month technical ratio was 62.7%, compared to 66.4% in 2006. The technical result for the half-year was $266 million in 2007 compared to $229 million in 2006.

The Life segment, which represented 15% of total net premiums written for the quarter, reported net premiums written of $136 million for the quarter, representing 32% growth over the second quarter of 2006. The allocated underwriting result was a gain of $4 million, compared to a loss of $1 million for the second quarter of 2006. For the six-month period, net premiums written increased 17% to $283 million, with an allocated underwriting result of $11 million, compared to $2 million for the comparable period in 2006.

The ART (Alternative Risk Transfer) segment comprises structured risk transfer, principal finance, weather related products, and strategic investments. The pre-tax contribution to net income, including the Company’s interest in the earnings of Channel Re, was a loss of $2 million for the second quarter of 2007, compared to a gain of $15 million in the second quarter of 2006, as results for the second quarter of 2007 were impacted by the write-down of certain transactions in the principal finance unit. For the first six months of 2007, the pre-tax contribution to net income was $4 million compared to $22 million for the same period in 2006.

Balance Sheet Items

During the second quarter of 2007, total investments and cash declined slightly to $10.9 billion due to the impact of rising interest rates, and increased 11% over a trailing 12 month period, due primarily to incremental cash flow. Gross Non-Life loss and loss expense reserves were $6.9 billion. During the second quarter, the Company’s estimate of Non-Life losses for prior accident years developed favorably by $107 million, which is reflected in the quarter’s operating results. The overall prior year reserve development in the Non-Life segment includes net favorable reserve development of $12 million in the U.S. P&C sub-segment, $20 million in the Global (Non-U.S.) P&C sub-segment, and $75 million in the Worldwide Specialty sub-segment. During the second quarter of 2006, the Company’s estimate of Non-Life losses for prior year reserves developed favorably by $62 million.

At June 30, 2007, total assets were $15.7 billion, total capital was $4.8 billion, and total shareholders’ equity was $3.9 billion. This compares to total assets of $14.9 billion, total capital of $4.7 billion and total shareholders’ equity of $3.8 billion at December 31, 2006.

PartnerRe Ltd.

Wellesley House, 5^th Floor

90 Pitts Bay Road

Pembroke, Bermuda HM 08

Telephone +1 441 292 0888

Fax +1 441 292 6080

www.partnerre.com



News Release

Book value per common share at June 30, 2007 was $58.96 on a fully diluted basis, up 5% from $56.07 per share at December 31, 2006, and 26% from $46.62 per share at June 30, 2006.

Commentary and Outlook

“As expected, the non-life market is continuing its slow decline as cedants retain a greater portion of their business and competition at the reinsurance level intensifies,” Mr. Thiele said. “Despite this more competitive market environment, pricing declines are being broadly offset by continued favorable loss trends, and PartnerRe is benefiting from cedants’ movement to higher quality reinsurers, which is consistent with this stage of the reinsurance pricing cycle. Given that, we are more sanguine about the outlook for 2007 premiums than we were at the start of the year.”

_________________________________________

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 the Company’s operating performance. The Company uses technical ratio and technical result as measures of underwriting performance. The technical ratio is defined as the sum of the loss and acquisition ratios. These metrics exclude other operating expenses. The Company also uses combined ratio to measure results for the Non-Life segment. The combined ratio is the sum of the technical and other operating expense ratios. The Company uses total capital, which is defined as total shareholders’ equity, long-term debt and capital efficient notes, to manage the capital structure of the Company.

_____________________________________________

PartnerRe is a leading global reinsurer, providing multi-line reinsurance to insurance companies. The Company through its wholly owned subsidiaries also offers alternative risk products that include weather and credit protection to financial, industrial and service companies. Risks reinsured include property, casualty, motor, agriculture, aviation/space, catastrophe, credit/surety, engineering, energy, marine, specialty property, specialty casualty, other lines, life/annuity and health, and alternative risk products. For the year ended December 31, 2006, total revenues were $4.2 billion. At June 30, 2007, total assets were $15.7 billion, total capital was $4.8 billion and total shareholders’ equity was $3.9 billion.

PartnerRe on the Internet: www.partnerre.com

PartnerRe Ltd.

Wellesley House, 5^th Floor

90 Pitts Bay Road

Pembroke, Bermuda HM 08

Telephone +1 441 292 0888

Fax +1 441 292 6080

www.partnerre.com



News Release

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.

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

PartnerRe Ltd.

Wellesley House, 5^th Floor

90 Pitts Bay Road

Pembroke, Bermuda HM 08

Telephone +1 441 292 0888

Fax +1 441 292 6080

www.partnerre.com

PartnerRe Ltd.

Consolidated Statements of Operations and Comprehensive Income

(Expressed in thousands of U.S dollars, except share and per share data)

(Unaudited)

	For the three			For the three			For the six			For the six
	months ended			months ended			months ended			months ended
	June 30,			June 30,			June 30,			June 30,
	2007			2006			2007			2006

Revenues
Gross premiums written	$	907,758		$	817,610		$	2,209,521		$	2,190,456

Net premiums written	$	898,686		$	815,893		$	2,169,258		$	2,160,497
(Increase) decrease in unearned premiums		(9,409	)		43,070			(437,940	)		(468,713	)
Net premiums earned		889,277			858,963			1,731,318			1,691,784
Net investment income		130,894			108,320			249,911			208,272
Net realized investment losses		(53,647	)		(58,928	)		(52,879	)		(3,830	)
Other (loss) income		(8,911	)		12,704			(8,393	)		20,460
Total revenues		957,613			921,059			1,919,957			1,916,686

Expenses
Losses and loss expenses and life policy benefits		524,038			541,377			1,002,772			1,040,195
Acquisition costs		206,313			199,425			407,037			398,682
Other operating expenses		79,947			76,482			158,931			150,912
Interest expense		13,484			13,200			26,994			25,921
Net foreign exchange losses		9,308			4,116			13,554			7,462
Total expenses		833,090			834,600			1,609,288			1,623,172

Income before taxes and interest in earnings of equity investments		124,523			86,459			310,669			293,514
Income tax expense		22,716			11,845			42,620			27,976
Interest in earnings of equity investments		3,214			2,917			6,239			5,236
Net income	$	105,021		$	77,531		$	274,288		$	270,774

Preferred dividends	$	8,631		$	8,631		$	17,263		$	17,263

Operating earnings available to common shareholders	$	139,165		$	115,932		$	297,114		$	249,676

Comprehensive income, net of tax	$	82,613		$	50,691		$	267,524		$	161,609

*Per Share Data:*
Earnings per common share:
Basic operating earnings	$	2.46		$	2.04		$	5.23		$	4.40
Net realized investment (losses) gains, net of tax		(0.76	)		(0.83	)		(0.71	)		0.07
Basic net income	$	1.70		$	1.21		$	4.52		$	4.47

Weighted average number of common shares outstanding		56,682.8			56,763.5			56,820.8			56,748.6


Diluted operating earnings	$	2.39		$	2.01		$	5.11		$	4.33
Net realized investment (losses) gains, net of tax		(0.73	)		(0.81	)		(0.69	)		0.07
Diluted net income	$	1.66		$	1.20		$	4.42		$	4.40
Weighted average number of common and
common share equivalents outstanding		58,148.7			57,656.0			58,173.7			57,628.6

PartnerRe Ltd.

Consolidated Balance Sheets

(Expressed in thousands of U.S dollars, except share, per share and parenthetical share data)

(Unaudited)

	June 30,			December 31,
	2007			2006
Assets
Investments:
Fixed maturities, at fair value
(amortized cost: 2007, $8,264,873; 2006, $7,852,798)	$	8,172,868		$	7,835,680
Short-term investments, at fair value
(amortized cost: 2007, $86,701; 2006, $133,872)		86,604			133,751
Equities, at fair value
(cost: 2007, $1,309,364; 2006, $920,913)		1,417,013			1,015,144
Trading securities, at fair value (cost: 2007, $69,934; 2006, $578,445)		72,525			599,972
Other invested assets		141,097			105,390
Total investments		9,890,107			9,689,937
Cash and cash equivalents, at fair value, which approximates amortized cost		1,052,192			988,788
Accrued investment income		170,541			157,923
Reinsurance balances receivable		1,899,596			1,573,566
Reinsurance recoverable on paid and unpaid losses		167,037			168,840
Funds held by reinsured companies		989,702			1,002,402
Deferred acquisition costs		644,653			542,698
Deposit assets		338,482			306,212
Net tax assets		11,099			17,826
Goodwill		429,519			429,519
Other assets		72,610			70,514
Total assets	$	15,665,538		$	14,948,225

Liabilities
Unpaid losses and loss expenses	$	6,944,959		$	6,870,785
Policy benefits for life and annuity contracts		1,494,205			1,430,691
Unearned premiums		1,694,517			1,215,624
Reinsurance balances payable		122,275			115,897
Ceded premiums payable		17,811			17,213
Funds held under reinsurance treaties		22,933			21,257
Deposit liabilities		375,751			350,763
Net payable for securities purchased		35,916			90,331
Accounts payable, accrued expenses and other		142,324			172,212
Long-term debt		620,000			620,000
Debt related to capital efficient notes		257,605			257,605
Total liabilities		11,728,296			11,162,378

Shareholders’ Equity
Common shares (par value $1.00, issued: 2007, 57,079,534; 2006, 57,076,312)		57,080			57,076
Series C cumulative preferred shares (par value $1.00, issued and outstanding:
2007 and 2006, 11,600,000; aggregate liquidation preference: 2007 and 2006, $290,000,000)		11,600			11,600
Series D cumulative preferred shares (par value $1.00, issued and outstanding:
2007 and 2006, 9,200,000; aggregate liquidation preference: 2007 and 2006, $230,000,000)		9,200			9,200
Additional paid-in capital		1,417,009			1,413,977
Accumulated other comprehensive income:
Net unrealized gains on investments, net of tax		9,507			56,913
Currency translation adjustment		109,331			68,734
Unfunded pension obligation, net of tax		(7,232	)		(7,277	)
Retained earnings		2,374,902			2,175,624
Common shares held in treasury, at cost (2007, 585,800 shares; 2006, nil)		(44,155	)		-
Total shareholders' equity		3,937,242			3,785,847

Total liabilities and shareholders' equity	$	15,665,538		$	14,948,225

Shareholders’ Equity Per Common Share (excluding cumulative
preferred shares: 2007 and 2006, $520,000,000)	$	60.49		$	57.22
Diluted Book Value Per Common and Common Share Equivalents
Outstanding (assuming exercise of all stock-based awards)	$	58.96		$	56.07

Number of Common and Common Share Equivalents Outstanding		57,959.6			58,248.8

PartnerRe Ltd.

Supplementary Information

(in millions of U.S. dollars)

(Unaudited)

SEGMENT INFORMATION

For the three months ended June 30, 2007

	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		$	129		$	457		$	756		$	8		$	144		$	-		$	908

Net premiums written	$	170		$	127		$	458		$	755		$	8		$	136		$	-		$	899
Decrease (increase) in unearned premiums		17			46			(78	)		(15	)		(2	)		7			-			(10	)
Net premiums earned	$	187		$	173		$	380		$	740		$	6		$	143		$	-		$	889
Losses and loss expenses and life policy benefits		(120	)		(131	)		(156	)		(407	)		-			(117	)		-			(524	)
Acquisition costs		(47	)		(44	)		(85	)		(176	)		(1	)		(29	)		-			(206	)
Technical result	$	20		$	(2	)	$	139		$	157		$	5		$	(3	)	$	-		$	159

Other loss		n/a			n/a			n/a			-			(9	)		-			-			(9	)
Other operating expenses		n/a			n/a			n/a			(51	)		(2	)		(8	)		(19	)		(80	)
Underwriting result		n/a			n/a			n/a		$	106		$	(6	)	$	(11	)		n/a		$	70

Net investment income		n/a			n/a			n/a			-			1			15			115			131
Allocated underwriting result ⁽¹⁾		n/a			n/a			n/a			n/a		$	(5	)	$	4			n/a			n/a

Net realized investment losses		n/a			n/a			n/a			n/a			n/a			n/a			(54	)		(54	)
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			(9	)		(9	)
Income tax expense		n/a			n/a			n/a			n/a			n/a			n/a			(23	)		(23	)
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		$	105

Loss ratio (2)		64.2	%		75.6	%		40.9	%		54.9	%
Acquisition ratio (3)		24.9			25.6			22.4			23.8
Technical ratio (4)		89.1	%		101.2	%		63.3	%		78.7	%
Other operating expense ratio (5)											7.0
Combined ratio (6)											85.7	%

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			-			-			13			95			108
Allocated underwriting result ⁽¹⁾		n/a			n/a			n/a			n/a		$	12		$	(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	%

(A) The Company reports the results of Channel Re on a one-quarter lag. The 2007 and 2006 periods include the Company's share of Channel Re's net income in the amount of $3.2 million and $2.8 million, respectively.

(1) Allocated underwriting result is defined as net premiums earned, other income or loss and allocated net investment income less losses and loss expenses and life policy benefits, acquisition costs and other operating expenses.

(2) Loss ratio is obtained by dividing losses and loss expenses by net premiums earned.

(3) Acquisition ratio is obtained by dividing acquisition costs by net premiums earned.

(4) Technical ratio is defined as the sum of the loss ratio and the acquisition ratio.

(5) Other operating expense ratio is obtained by dividing other operating expenses by net premiums earned.

(6) Combined ratio is defined as the sum of the technical ratio and the other operating expense ratio.

PartnerRe Ltd.

Supplementary Information

(in millions of U.S. dollars)

(Unaudited)

SEGMENT INFORMATION

For the six months ended June 30, 2007

	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	$	429		$	462		$	999		$	1,890		$	20		$	300		$	-		$	2,210

Net premiums written	$	429		$	459		$	978		$	1,866		$	20		$	283		$	-		$	2,169
Increase in unearned premiums		(46	)		(110	)		(264	)		(420	)		(8	)		(10	)		-			(438	)
Net premiums earned	$	383		$	349		$	714		$	1,446		$	12		$	273		$	-		$	1,731
Losses and loss expenses and
life policy benefits		(252	)		(248	)		(290	)		(790	)		-			(213	)		-			(1,003	)
Acquisition costs		(97	)		(90	)		(158	)		(345	)		(2	)		(60	)		-			(407	)
Technical result	$	34		$	11		$	266		$	311		$	10		$	-		$	-		$	321

Other loss		n/a			n/a			n/a			-			(8	)		-			-			(8	)
Other operating expenses		n/a			n/a			n/a			(102	)		(5	)		(15	)		(37	)		(159	)
Underwriting result		n/a			n/a			n/a		$	209		$	(3	)	$	(15	)		n/a		$	154

Net investment income		n/a			n/a			n/a			-			1			26			223			250
Allocated underwriting result ⁽¹⁾		n/a			n/a			n/a			n/a		$	(2	)	$	11			n/a			n/a

Net realized investment losses		n/a			n/a			n/a			n/a			n/a			n/a			(53	)		(53	)
Interest expense		n/a			n/a			n/a			n/a			n/a			n/a			(27	)		(27	)
Net foreign exchange losses		n/a			n/a			n/a			n/a			n/a			n/a			(13	)		(13	)
Income tax expense		n/a			n/a			n/a			n/a			n/a			n/a			(43	)		(43	)
Interest in earnings of equity investments		n/a			n/a			n/a			n/a			6			n/a			n/a			6
Net income		n/a			n/a			n/a			n/a			n/a			n/a			n/a		$	274

Loss ratio (2)		65.7	%		71.2	%		40.6	%		54.7	%
Acquisition ratio (3)		25.4			25.7			22.1			23.8
Technical ratio (4)		91.1	%		96.9	%		62.7	%		78.5	%
Other operating expense ratio (5)											7.1
Combined ratio (6)											85.6	%

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			-			-			24			184			208
Allocated underwriting result ⁽¹⁾		n/a			n/a			n/a			n/a		$	17		$	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	%

(A) The Company reports the results of Channel Re on a one-quarter lag. The 2007 and 2006 periods include the Company's share of Channel Re's net income in the amount of $6.1 million and $5.1 million, respectively.

(2) Loss ratio is obtained by dividing losses and loss expenses by net premiums earned.

(3) Acquisition ratio is obtained by dividing acquisition costs by net premiums earned.

(4) Technical ratio is defined as the sum of the loss ratio and the acquisition ratio.

(5) Other operating expense ratio is obtained by dividing other operating expenses by net premiums earned.

(6) Combined ratio is defined as the sum of the technical ratio and the other operating expense ratio.

PartnerRe Ltd.

Supplementary Information

(Unaudited)

	For the three			For the three			For the six			For the six
	months ended			months ended			months ended			months ended
	June 30,			June 30,			June 30,			June 30,
	2007			2006			2007			2006
Distribution of Net Premiums Written by
Line of Business:
Non-Life
Property and Casualty
Property		15	%		15	%		19	%		19	%
Casualty		14			18			16			19
Motor		4			3			6			6
Worldwide Specialty
Agriculture		6			6			3			4
Aviation/Space		6			6			4			4
Catastrophe		15			16			16			16
Credit/Surety		7			7			6			5
Engineering		6			5			4			4
Energy		2			3			2			2
Marine		3			3			3			3
Specialty property		2			2			3			3
Specialty casualty		4			2			4			3
ART		1			1			1			1
Life		15			13			13			11
		100	%		100	%		100	%		100	%

Distribution of Gross Premiums Written by

Geography:

North America	47	%	50	%	42	%	43	%
Europe	40		36		46		44
Asia, Australia and New Zealand	8		9		7		8
Latin America, Caribbean and Africa	5		5		5		5
	100	%	100	%	100	%	100	%

As at

June 30,

2007

Financial Strength Ratings:

Standard & Poor's

AA-

Moody's

Aa3

A.M. Best

A+

Fitch

	As at				As at
	June 30,				December 31,
	2007				2006
	(in thousands of U.S. dollars)				(in thousands of U.S. dollars)
Capital Structure:
Long-term debt	$	620,000	13	%	$	620,000	13	%
Capital efficient notes⁽¹⁾		250,000	5			250,000	6
6.75% Series C cumulative preferred shares, aggregate liquidation		290,000	6			290,000	6
6.5% Series D cumulative preferred shares, aggregate liquidation		230,000	5			230,000	5
Common shareholders' equity		3,417,242	71			3,265,847	70
Total Capital	$	4,807,242	100	%	$	4,655,847	100	%

⁽¹⁾PartnerRe Finance II, the issuer of the capital efficient notes, does not meet the consolidation requirements of FIN 46(R).
Accordingly, the Company shows the related intercompany debt of $257.6 million on its Consolidated Balance Sheets.

PartnerRe Ltd.
Supplementary Information
(Unaudited)

		As at			As at
		June 30,			December 31,
		2007			2006
Investment Portfolio:
Credit Quality	AAA		70	%		69	%
	AA		5			4
	A		12			13
	BBB		10			10
	Below Investment Grade/Unrated		3			4
			100	%		100	%


By Class	U.S. Government		14	%		12	%
	U.S. Mortgage/Asset Backed		16			16
	U.S. Corporates		19			20
	Foreign Fixed Income		30			29
	Equities and Equity Substitutes		13			14
	Cash (net of pending transactions)		8			9
			100	%		100	%


Expected average duration			3.9	Yrs		4.1	Yrs

Average yield to maturity at market			5.2	%		4.9	%
(fixed income securities and cash)

Average Credit Quality		AA			AA

	For the three			For the three			For the six			For the six
	months ended			months ended			months ended			months ended
	June 30,			June 30,			June 30,			June 30,
	2007			2006			2007			2006
	(in thousands of U.S. dollars except per share data)
Reconciliation of GAAP and non-GAAP measures:

Annualized return on beginning common shareholders' equity⁽¹⁾
calculated with net income available to common shareholders		11.8	%		10.7	%		15.7	%		19.7	%
Less:
Annualized net realized investment (losses) gains return, net of tax, on beginning common shareholders' equity ⁽¹⁾		(5.2	)		(7.3	)		(2.5	)		0.3

Annualized operating return on beginning common shareholders' equity⁽¹⁾		17.0	%		18.0	%		18.2	%		19.4	%

Net income	$	105,021		$	77,531		$	274,288		$	270,774
Less:
Net realized investment (losses) gains, net of tax		(42,775	)		(47,032	)		(40,089	)		3,835
Dividends to preferred shareholders		8,631			8,631			17,263			17,263
Operating earnings available to common shareholders	$	139,165		$	115,932		$	297,114		$	249,676

Per diluted share:
Net income	$	1.66		$	1.20		$	4.42		$	4.40
Less:
Net realized investment (losses) gains, net of tax		(0.73	)		(0.81	)		(0.69	)		0.07
Operating earnings	$	2.39		$	2.01		$	5.11		$	4.33

(1) Excluding cumulative preferred shares: 2007 and 2006, $520,000

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

	As at			As at
	June 30,			December 31,
	2007			2006

Reconciliation of GAAP and non-GAAP measures:

Shareholders' equity	$	3,937,242		$	3,785,847
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	$	3,417,242		$	3,265,847

Less:
Net unrealized losses on fixed income securities, net of tax		(79,079	)		(18,694	)


Book value excluding net unrealized losses on fixed income securities	$	3,496,321		$	3,284,541

Divided by:
Number of common and common share equivalents outstanding		57,959.6			58,248.8

Equals:
Diluted book value per common and common share equivalents
outstanding excluding net unrealized losses on fixed income securities	$	60.32		$	56.39

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PartnerRe Ltd.

July 23, 2007

/s/ Marc Wetherhill

Marc Wetherhill

Associate General Counsel