EX-99.1 2 dp08487_ex9901.htm
Exhibit 99.1
 
News Release
 
PartnerRe Ltd. Reports Fourth Quarter and Full Year 2007 Results

§  
Fourth Quarter Net Income per share of $3.04; Operating Earnings per share of $4.55
§  
Fourth Quarter Annualized Net Income ROE of 21%; Annualized Operating ROE of 32%
§  
Full Year Net Income per share of $11.87; Operating Earnings per share of $14.29
§  
Full Year Net Income ROE of 21%; Operating ROE of 25%
§  
Year-End Book Value per share of $67.96, an increase of 21% year over year

PEMBROKE, Bermuda, February 4, 2008 -- PartnerRe Ltd. (NYSE:PRE) today reported net income of $180.6 million, or $3.04 per share, for the fourth quarter of 2007. This net income includes net after-tax realized losses on investments and net after-tax losses from the Company’s interest in the results of equity investments aggregating at $85.4 million, or $1.51 per share. Net income for the fourth quarter of 2006 was $242.7 million or $4.03 per share, including $24.0 million, or $0.42 per share, in net after-tax realized gains on investments and net after-tax earnings from the Company’s interest in the results of equity investments. Operating earnings for the fourth quarter of 2007 were $257.4 million or $4.55 per share. This compares to operating earnings of $210.1 million, or $3.61 per share, for the fourth quarter of 2006. Operating earnings exclude net after-tax realized investment gains/losses, and interest in results of equity investments, and are calculated after payment of preferred dividends. All references to per share amounts are on a fully diluted basis.

For the year ended December 31, 2007, net income was $717.8 million, or $11.87 per share. Net income includes $139.2 million, or $2.42 per share, in net after-tax realized losses on investments and net after-tax losses from the Company’s interest in the results of equity investments. Operating earnings were $822.4 million, or $14.29 per share. Net income for the full year 2006 was $749.3 million, or $12.37 per share. Net income included $58.4 million, or $1.01 per share, net after-tax realized gains on investments and net after-tax earnings from the Company’s interest in the results of equity investments. Operating earnings for the full year 2006 were $656.4 million, or $11.36 per share.

PartnerRe Ltd. President & CEO Patrick Thiele said, “We had another excellent year in 2007. We closed the fourth quarter with strong results despite challenging capital markets conditions, and we enter 2008 in a position of strength and stability. We grew our book value per share by 21% for the year, and over a five-year cumulative period achieved 15% growth in book value on a compounded annual basis, in addition to an average annual dividend yield of 2.3% over the five-year period. In addition, we recently announced a 7% increase in our common stock dividend, marking the fifteenth consecutive year that we have increased our annual dividend.”
 
PartnerRe Ltd.
Wellesley House South
90 Pitts Bay Road
Pembroke, Bermuda HM 08
Telephone +1 441 292 0888
Fax +1 441 292 6080
www.partnerre.com
 
 
 
 
News Release
 
Summary unaudited consolidated financial data for the period is set out below.

U.S.$ thousands (except per share amounts and ratios)
Three months ended December 31
Year ended December 31
 
2007
2006
2007
2006
Net Premiums Written
$714,376
$721,263
$3,757,109
$3,689,548
Net Premiums Earned
$989,758
$1,001,881
$3,777,471
$3,667,268
Non-life Combined Ratio
79.0%
79.8%
80.4%
84.4%
Net Income
$180,603
$242,717
$717,812
$749,332
Net Income per share (a)
$3.04
$4.03
$11.87
$12.37
Operating Earnings (a)
 $257,369
 $210,102
 $822,442
 $656,382
Operating Earnings per share (a)
$4.55
$3.61
$14.29
$11.36

(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 and interest in earnings/losses of equity 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 fourth quarter 2007 were $714.4 million, compared to $721.3 for the fourth quarter of 2006. Total revenues for the quarter were $1.1 billion compared to $1.2 billion for fourth quarter of 2006. Total revenues include $989.8 million of net premiums earned, net investment income of $137.8 million, and net realized investment losses of $16.5 million.

For the full year 2007, net premiums written were $3.8 billion, representing a 2% increase over 2006. Total revenues for the full year 2007 were flat with 2006 at $4.2 billion, including $3.8 billion of net premiums earned, net investment income of $523.3 million, and net realized investment losses of $72.5 million.

During the fourth quarter of 2007, the Company repurchased 1,499,687 common shares at a total cost of approximately $122.7 million. During 2007, the Company repurchased 3.6 million common shares at a total cost of approximately $275.0 million. The Company increased its share repurchase authorization to 5 million shares in November 2007. There are approximately 4.5 million common shares remaining under the current repurchase authorization.
 
PartnerRe Ltd.
Wellesley House South
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

In the fourth quarter of 2007, the Company redefined its financial reporting segments into the following three segments: Non-Life, Life, and Corporate & Other. These are shown in the segment financial tables and prior periods have been recast to reflect theses changes. The Non-Life segment has four sub-segments: U.S., Global (Non-U.S.) P&C, Global (Non-U.S.) Specialty, and Catastrophe. The Life segment did not change. ART no longer stands as a separate segment: principal finance, insurance-linked securities and strategic investments are incorporated in Corporate & Other.

The Non-Life segment reported net premiums written of $569 million for the fourth quarter of 2007, compared to $582 million for the prior year’s fourth quarter. The combined ratio was 79.0% for the fourth quarter of 2007, compared to 79.8% for the same period in 2006. The Non-Life technical result was $235 million for the fourth quarter of 2007. This compares to $225 million in the fourth quarter of 2006. For the full year, Non-Life net premiums written were $3.2 billion, flat with the same period in 2006. The combined ratio for the full year was 80.4% compared to 84.4% in 2006. The full year technical result was $842 million, compared to $700 million for the same period in 2006.

The U.S. business, which represented approximately 27% of total net premiums written for the year, reported net premiums written of $218 million for the fourth quarter of 2007, compared to $230 million for the prior year’s fourth quarter. Net premiums earned were $264 million for the quarter, compared to $279 million in the same period in 2006. The technical ratio for this sub-segment was 84.8%, compared to 88.2% in the fourth quarter of 2006. For the full year 2007, net premiums written were $1.0 billion, flat with the same period in 2006. The full year technical ratio was 84.9% compared to 94.0% in 2006. The technical result for the full year was $150 million compared to $62 million in 2006.

The Global (Non-U.S.) P&C business, which represented approximately 20% of total net premiums written for the year, reported net premiums written of $127 million for the fourth quarter of 2007 compared to $116 million for the same period in 2006. Net premiums earned during the quarter were $217 million, up 4% from $209 million in the prior year’s fourth quarter. The technical ratio for this sub-segment was 89.7% compared to 91.5% for the same period in 2006. For the full year 2007, net premiums written were $738 million, compared to $760 million for the same period in 2006. The full year technical ratio was 94.2% compared to 92.2% in 2006. The technical result for the full year was $44 million compared to $61 million in 2006.
 
PartnerRe Ltd.
Wellesley House South
90 Pitts Bay Road
Pembroke, Bermuda HM 08
Telephone +1 441 292 0888
Fax +1 441 292 6080
www.partnerre.com
 
 
 

 
News Release
 
The Global (Non-U.S.) Specialty business, which represented approximately 27% of total net premiums written for the year, reported net premiums written of $216 million for the fourth quarter, compared to $233 million for the prior year period. Net premiums earned were $247 million for the quarter, compared to $266 million for the same period in 2006. This sub-segment’s technical ratio was 76.1% compared to 59.6% for the fourth quarter of 2006. For the full year, net premiums written were up 4% to $1.0 billion. The full year technical ratio was 70.6% compared to 69.7% in 2006. The technical result for the full year was $296 million, flat with 2006.
 
The Catastrophe business, which represented approximately 11% of total net premiums written for the year, reported net premiums written of $8 million for the fourth quarter of 2007, compared to $3 million for the prior year period. Net premiums earned were $110 million for the current quarter, compared to $102 million for the same period in 2006. This sub-segment’s technical ratio was (3.2)% for the quarter compared to 34.4% for the fourth quarter of 2006. For the full year, net premiums written were $401 million compared to $412 million in 2006. The full year technical ratio was 20.1% compared to 28.0% in 2006. The technical result for the full year was $352 million, compared with $280 million in 2006.

The Life segment, which writes business primarily in Europe, Canada and Latin America, and represented approximately 15% of total net premiums written for the year, reported net premiums written of $144 million for the quarter, up 6% as compared with the fourth quarter of 2006. The allocated underwriting result for the quarter was $11 million, compared to $24 million for the comparable period in 2006. For the full year, net premiums written increased 17% to $569 million, with an allocated underwriting result of $21 million, compared to $29 million for the comparable period in 2006.

The Company’s capital markets and investment activities are reported under the heading of “Corporate & Other”. Within Corporate & Other, capital markets and investment activities contributed $29 million to pre-tax income in the fourth quarter of 2007. Non-life net investment income of $127 million and a technical result of $1 million were reduced by net realized investment losses and interest in losses of equity investments, both non-operating items, as well as other income/loss, totaling $99 million. This amount includes a non-operating charge of $76 million reflecting our previously announced write-down of the Company’s total investment in ChannelRe. In the fourth quarter 2006, capital markets and investment activities contributed $137 million to pre-tax income. For the full year 2007, capital markets and investment activities contributed $293 million to pre-tax income, as compared to $476 million for the full year 2006. Other operating expenses also included in Corporate & Other were $80 million for the full year 2007, of which $67 million are related to corporate expenses, as compared to $75 million in the prior year.
 
PartnerRe Ltd.
Wellesley House South
90 Pitts Bay Road
Pembroke, Bermuda HM 08
Telephone +1 441 292 0888
Fax +1 441 292 6080
www.partnerre.com
 
 

 
News Release
 
Balance Sheet Items

At December 31, 2007, total assets were $16.0 billion as compared to $14.9 billion at December 31, 2006. Over the last 12 months, total investments and cash increased 8% to $11.6 billion. Gross Non-Life loss and loss expense reserves increased 5% year over year to $7.2 billion at December 31, 2007.  During the fourth quarter, the Company’s estimate of Non-Life reserves for prior accident years developed favorably by $96 million. The overall fourth quarter prior year reserve development in the Non-Life segment includes net favorable development in all sub-segments, with $22 million in the U.S. sub-segment, $25 million in the Global (Non-U.S.) P&C sub-segment, $42 million in the Global (Non-U.S) Specialty sub-segment, and $7 million in the Catastrophe sub-segment. In the fourth quarter of 2006, Non-Life reserves for prior years developed favorably by $49 million. Policy benefits for life and annuity contacts increased by 8% year over year to $1.5 billion at December 31, 2007. During the fourth quarter of 2007, the Company’s estimate of Life reserves for prior years developed favorably by $2 million, compared to $17 million in 2006.

At December 31, 2007, total capital was $5.2 billion, and total shareholders’ equity was $4.3 billion. This compares to total capital of $4.7 billion, and total shareholders’ equity of $3.8 billion at December 31, 2006. Book value per common share at December 31, 2007 was $67.96 on a fully diluted basis compared to $56.07 per share at December 31, 2006.

Commentary and Outlook

Mr. Thiele said, “Following our strong performance in 2007, we were able to maintain priced profitability on 2008 business at good levels, above our long-term operating return on equity goal of 13% over the cycle, during the January 1 renewals. We held our production flat on a year-over-year basis despite increased competition, declining prices in most major markets and most lines of business, and continued retention of premium by cedants. Our strong franchise and position in the global reinsurance market, and the stability of our balance sheet, positions us to continue to generate shareholder value over the long-term.”

_____________________________________________

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 impact of realized gains/losses from the sale of investments, which is driven by the timing of the disposition of investments, nor the interest in earnings/losses of equity investments, where the Company does not control the investee companies’ activities. The Company uses technical ratio and technical result as measures of underwriting
 
PartnerRe Ltd.
Wellesley House South
90 Pitts Bay Road
Pembroke, Bermuda HM 08
Telephone +1 441 292 0888
Fax +1 441 292 6080
www.partnerre.com
 
 
 
 
News Release
 
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 Ltd. 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, multiline and other lines, life/annuity and health, and alternative risk products. At December 31, 2007, total revenues were $4.2 billion, total assets were $16.0 billion, total capital was $5.2 billion and total shareholders’ equity was $4.3 billion.

PartnerRe on the Internet: www.partnerre.com

Forward-looking statements contained in this press release are based on the Company’s assumptions and expectations concerning future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are subject to significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. PartnerRe’s forward-looking statements could be affected by numerous foreseeable and unforeseeable events and developments such as exposure to catastrophe, or other large property and casualty losses, 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 South
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 per share data)
(Unaudited)
  
                         
   
For the three
    
For the three
    
For the year
    
For the year
  
   
months ended
    
months ended
    
ended
    
ended
  
   
December 31,
    
December 31,
    
December 31,
    
December 31,
  
   
2007
    
2006
    
2007
    
2006
  
                         
                         
                         
Revenues
                        
     Gross premiums written
   $
722,700
     $
730,015
     $
3,810,164
     $
3,733,920
  
                                 
     Net premiums written
   $
714,376
     $
721,263
     $
3,757,109
     $
3,689,548
  
     Decrease (increase) in unearned premiums
    
275,382
      
280,618
      
20,362
       (22,280 )
     Net premiums earned
    
989,758
      
1,001,881
      
3,777,471
      
3,667,268
  
     Net investment income
    
137,771
      
126,019
      
523,259
      
449,401
  
     Net realized investment (losses) gains
     (16,510 )    
27,984
       (72,492 )    
47,160
  
     Other (loss) income
     (14,530 )     (4,802 )     (17,479 )    
23,555
  
     Total revenues
    
1,096,489
      
1,151,082
      
4,210,759
      
4,187,384
  
                                 
Expenses
                                
     Losses and loss expenses and life policy benefits
    
517,557
      
530,426
      
2,082,461
      
2,111,337
  
     Acquisition costs
    
227,222
      
229,868
      
849,715
      
849,241
  
     Other operating expenses
    
88,481
      
77,778
      
326,486
      
309,544
  
     Interest expense
    
13,374
      
21,795
      
54,017
      
61,387
  
     Net foreign exchange (gains) losses
     (1,568 )    
9,600
      
15,552
      
23,204
  
     Total expenses
    
845,066
      
869,467
      
3,328,231
      
3,354,713
  
                                 
Income before taxes and interest in (losses) earnings of equity investments
    
251,423
      
281,615
      
882,528
      
832,671
  
     Income tax expense
    
4,303
      
42,415
      
81,748
      
95,305
  
     Interest in (losses) earnings of equity investments
     (66,517 )    
3,517
       (82,968 )    
11,966
  
Net income
   $
180,603
     $
242,717
     $
717,812
     $
749,332
  
                                 
Preferred dividends
   $
8,631
     $
8,631
     $
34,525
     $
34,525
  
                                 
Operating earnings available to common shareholders
   $
257,369
     $
210,102
     $
822,442
     $
656,382
  
                                 
Comprehensive income, net of tax
   $
233,897
     $
262,900
     $
888,692
     $
784,898
  
                                 
Per Share Data:
                                
     Earnings per common share:
                                
         Basic operating earnings
   $
4.69
     $
3.69
     $
14.66
     $
11.55
  
         Net realized investment (losses) gains, net of tax
     (0.35 )    
0.36
       (1.00 )    
0.82
  
         Interest in (losses) earnings of equity investments, net of tax
     (1.21 )    
0.06
       (1.48 )    
0.21
  
         Basic net income
   $
3.13
     $
4.11
     $
12.18
     $
12.58
  
                                 
         Weighted average number of common shares outstanding
    
54,892.7
      
56,978.6
      
56,104.4
      
56,822.5
  
                                 
                                 
         Diluted operating earnings
   $
4.55
     $
3.61
     $
14.29
     $
11.36
  
         Net realized investment (losses) gains, net of tax
     (0.34 )    
0.36
       (0.98 )    
0.80
  
         Interest in (losses) earnings of equity investments, net of tax
     (1.17 )    
0.06
       (1.44 )    
0.21
  
         Diluted net income
   $
3.04
     $
4.03
     $
11.87
     $
12.37
  
                                 
         Weighted average number of common and
                                
              common share equivalents outstanding
    
56,578.5
      
58,151.0
      
57,557.9
      
57,802.8
  
 
7
 
PartnerRe Ltd.
Consolidated Balance Sheets
  
(Expressed in thousands of U.S. dollars, except per share and parenthetical share and per share data)
 (Unaudited)
  
             
   
December 31,
    
December 31,
  
   
2007
    
2006
  
             
Assets
            
     Investments:
            
     Fixed maturities, at fair value
            
      (amortized cost: 2007, $9,401,962; 2006, $7,852,798)
   $
9,498,791
     $
7,835,680
  
     Short-term investments, at fair value
                
      (amortized cost: 2007, $97,153; 2006, $133,872)
    
97,307
      
133,751
  
     Equities, at fair value
                
      (cost: 2007, $838,777; 2006, $920,913)
    
871,762
      
1,015,144
  
     Trading securities, at fair value (cost: 2007, $407,541; 2006, $578,445)
    
399,280
      
599,972
  
     Other invested assets
    
50,201
      
105,390
  
     Total investments
    
10,917,341
      
9,689,937
  
     Cash and cash equivalents, at fair value, which approximates amortized cost
    
654,895
      
988,788
  
     Accrued investment income
    
176,386
      
157,923
  
     Reinsurance balances receivable
    
1,449,702
      
1,573,566
  
     Reinsurance recoverable on paid and unpaid losses
    
158,494
      
168,840
  
     Funds held by reinsured companies
    
1,083,036
      
1,002,402
  
     Deferred acquisition costs
    
641,818
      
542,698
  
     Deposit assets
    
398,079
      
306,212
  
     Net tax assets
    
-
      
17,826
  
     Goodwill
    
429,519
      
429,519
  
     Net receivable for securities sold
    
50,065
      
-
  
     Other assets
    
77,614
      
70,514
  
Total assets
   $
16,036,949
     $
14,948,225
  
                 
Liabilities
                
     Unpaid losses and loss expenses
   $
7,231,436
     $
6,870,785
  
     Policy benefits for life and annuity contracts
    
1,541,687
      
1,430,691
  
     Unearned premiums
    
1,267,873
      
1,215,624
  
     Reinsurance balances payable
    
119,853
      
115,897
  
     Ceded premiums payable
    
14,617
      
17,213
  
     Funds held under reinsurance treaties
    
21,585
      
21,257
  
     Deposit liabilities
    
435,852
      
350,763
  
     Net payable for securities purchased
    
-
      
90,331
  
     Net tax liabilities
    
37,743
      
-
  
     Accounts payable, accrued expenses and other
    
167,141
      
172,212
  
     Long-term debt
    
620,000
      
620,000
  
     Debt related to capital efficient notes
    
257,605
      
257,605
  
Total liabilities
    
11,715,392
      
11,162,378
  
                 
Shareholders’ Equity
                
     Common shares (par value $1.00, issued: 2007, 57,379,516; 2006, 57,076,312)
    
57,380
      
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
    
1,441,598
      
1,413,977
  
     Accumulated other comprehensive income:
                
        Net unrealized gains on investments, net of tax
    
94,747
      
56,913
  
        Currency translation adjustment
    
197,777
      
68,734
  
        Unfunded pension obligation, net of tax
     (3,274 )     (7,277 )
     Retained earnings
    
2,753,784
      
2,175,624
  
     Common shares held in treasury, at cost (2007, 3,129,008 shares; 2006, nil)
     (241,255 )    
-
  
Total shareholders' equity
    
4,321,557
      
3,785,847
  
                 
Total liabilities and shareholders' equity
   $
16,036,949
     $
14,948,225
  
                 
Shareholders’ Equity Per Common Share (excluding cumulative
                
     preferred shares: 2007 and 2006, $520,000,000)
   $
70.07
     $
57.22
  
Diluted Book Value Per Common and Common Share Equivalents
                
     Outstanding (assuming exercise of all stock-based awards)
   $
67.96
     $
56.07
  
                 
Number of Common and Common Share Equivalents Outstanding
    
55,936.4
      
58,248.8
  
 
8
 
PartnerRe Ltd.
Supplementary Information
  
(in millions of U.S. dollars)
  
(Unaudited)
  
SEGMENT INFORMATION
  
For the three months ended December 31, 2007
  
                                                 
     
U.S.
    
Global
(Non-U.S.)
P&C
    
Global
(Non-U.S.)
Specialty
    
Catastrophe
    
Total Non-
Life
Segment
    
Life
Segment
    
Corporate
and Other (A)
    
Total
  
                                                   
Gross premiums written
   $
218
     $
127
     $
217
     $
8
     $
570
     $
152
     $
1
     $
723
  
                                                                 
Net premiums written
   $
218
     $
127
     $
216
     $
8
     $
569
     $
144
     $
1
     $
714
  
Decrease in unearned premiums
    
46
      
90
      
31
      
102
      
269
      
7
      
-
      
276
  
Net premiums earned
   $
264
     $
217
     $
247
     $
110
     $
838
     $
151
     $
1
     $
990
  
Losses and loss expenses and
                                                                
   life policy benefits
     (161 )     (140 )     (122 )    
14
       (409 )     (109 )    
-
       (518 )
Acquisition costs
     (63 )     (55 )     (66 )     (10 )     (194 )     (33 )    
-
       (227 )
Technical result
   $
40
     $
22
     $
59
     $
114
     $
235
     $
9
     $
1
     $
245
  
                                                                 
Other loss
                                    
-
      
-
       (15 )     (15 )
Other operating expenses
                                     (59 )     (9 )     (20 )     (88 )
Underwriting result
                                   $
176
     $
-
      
n/a
     $
142
  
                                                                 
Net investment income
                                            
11
      
127
      
138
  
Allocated underwriting result (1)
                                           $
11
      
n/a
      
n/a
  
                                                                 
Net realized investment losses
                                                     (17 )     (17 )
Interest expense
                                                     (13 )     (13 )
Net foreign exchange gains
                                                    
2
      
2
  
Income tax expense
                                                     (4 )     (4 )
Interest in losses of equity investments
                                                     (67 )     (67 )
Net income
                                                    
n/a
     $
181
  
                                 
Loss ratio (2)
     61.0 %     64.4 %     49.4 %     (12.8 )%     48.8 %  
Acquisition ratio (3)
    
23.8
      
25.3
      
26.7
      
9.6
      
23.2
    
Technical ratio (4)
     84.8 %     89.7 %     76.1 %     (3.2 )%     72.0 %  
Other operating expense ratio (5)
                                    
7.0
    
Combined ratio (6)
                                     79.0 %  
                                           
For the three months ended December 31, 2006
  
                                                 
     
U.S.
    
Global
(Non-U.S.)
P&C
    
Global
(Non-U.S.)
Specialty
    
Catastrophe
    
Total Non-
Life
Segment
    
Life
Segment
    
Corporate
and Other (A)
    
Total
  
                                                   
Gross premiums written
   $
231
     $
116
     $
233
     $
3
     $
583
     $
143
     $
4
     $
730
  
                                                                 
Net premiums written
   $
230
     $
116
     $
233
     $
3
     $
582
     $
135
     $
4
     $
721
  
Decrease (increase) in unearned premiums
    
49
      
93
      
33
      
99
      
274
      
10
       (3 )    
281
  
Net premiums earned
   $
279
     $
209
     $
266
     $
102
     $
856
     $
145
     $
1
     $
1,002
  
Losses and loss expenses and
                                                                
   life policy benefits
     (179 )     (135 )     (93 )     (21 )     (428 )     (101 )     (1 )     (530 )
Acquisition costs
     (67 )     (56 )     (66 )     (14 )     (203 )     (27 )    
-
       (230 )
Technical result
   $
33
     $
18
     $
107
     $
67
     $
225
     $
17
     $
-
     $
242
  
                                                                 
Other income (loss)
                                    
1
      
-
       (6 )     (5 )
Other operating expenses
                                     (52 )     (8 )     (18 )     (78 )
Underwriting result
                                   $
174
     $
9
      
n/a
     $
159
  
                                                                 
Net investment income
                                            
15
      
111
      
126
  
Allocated underwriting result (1)
                                           $
24
      
n/a
      
n/a
  
                                                                 
Net realized investment gains
                                                    
28
      
28
  
Interest expense
                                                     (22 )     (22 )
Net foreign exchange losses
                                                     (10 )     (10 )
Income tax expense
                                                     (42 )     (42 )
Interest in earnings of equity investments
                                                    
4
      
4
  
Net income
                                                     n/a      $ 243  
Loss ratio (2)
     64.1 %     64.4 %     35.0 %     20.8 %     50.0 %  
Acquisition ratio (3)
    
24.1
      
27.1
      
24.6
      
13.6
      
23.7
    
Technical ratio (4)
     88.2 %     91.5 %     59.6 %     34.4 %     73.7 %  
Other operating expense ratio (5)
                                    
6.1
    
Combined ratio (6)
                                     79.8 %  
 
(A) The Company reports the results of ChannelRe on a one-quarter lag.  The 2007 period includes a charge of $76.2 million for the three-months ended December 31, 2007, which represents the write-down of its total investment in ChannelRe due to anticipated unrealized mark-to-market losses on ChannelRe’s credit derivative portfolio, which it expects to incur during the three-month period ended December 31, 2007. The 2006 period includes the Company’s share of ChannelRe’s net income in the amount of $3.5 million.

(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 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.
 
9
 
 
PartnerRe Ltd.
Supplementary Information
  
(in millions of U.S. dollars)
  
(Unaudited)
  
SEGMENT INFORMATION
  
For the three months ended December 31, 2007
  
                                                 
     
U.S.
    
Global
(Non-U.S.)
P&C
    
Global
(Non-U.S.)
Specialty
    
Catastrophe
    
Total Non-
Life
Segment
    
Life
Segment
    
Corporate
and Other (B)
    
Total
  
                                                   
Gross premiums written
   $
1,020
     $
740
     $
1,049
     $
401
     $
3,210
     $
597
     $
3
     $
3,810
  
                                                                 
Net premiums written
   $
1,020
     $
738
     $
1,026
     $
401
     $
3,185
     $
569
     $
3
     $
3,757
  
(Increase) decrease in unearned premiums
     (21 )    
20
       (20 )    
39
      
18
      
2
      
-
      
20
  
Net premiums earned
   $
999
     $
758
     $
1,006
     $
440
     $
3,203
     $
571
     $
3
     $
3,777
  
Losses and loss expenses and
                                                                
   life policy benefits
     (608 )     (523 )     (450 )     (46 )     (1,627 )     (455 )    
-
       (2,082 )
Acquisition costs
     (241 )     (191 )     (260 )     (42 )     (734 )     (116 )    
-
       (850 )
Technical result
   $
150
     $
44
     $
296
     $
352
     $
842
     $
-
     $
3
     $
845
  
                                                                 
Other income (loss)
                                    
7
      
-
       (24 )     (17 )
Other operating expenses
                                     (214 )     (33 )     (80 )     (327 )
Underwriting result
                                   $
635
     $ (33 )    
n/a
     $
501
  
                                                                 
Net investment income
                                            
54
      
469
      
523
  
Allocated underwriting result (1)
                                           $
21
      
n/a
      
n/a
  
                                                                 
Net realized investment losses
                                                     (72 )     (72 )
Interest expense
                                                     (54 )     (54 )
Net foreign exchange losses
                                                     (15 )     (15 )
Income tax expense
                                                     (82 )     (82 )
Interest in losses of equity investments
                                                     (83 )     (83 )
Net income
                                                    
n/a
     $
718
  
                                 
Loss ratio (2)
     60.8 %     69.0 %     44.7 %     10.5 %     50.8 %  
Acquisition ratio (3)
    
24.1
      
25.2
      
25.9
      
9.6
      
22.9
    
Technical ratio (4)
     84.9 %     94.2 %     70.6 %     20.1 %     73.7 %  
Other operating expense ratio (5)
                                    
6.7
    
Combined ratio (6)
                                     80.4 %  
                                           
For the year ended December 31, 2006
                                                 
     
U.S.
    
Global
(Non-U.S.)
P&C
    
Global
(Non-U.S.)
Specialty
    
Catastrophe
    
Total Non-
Life
Segment
    
Life
Segment
    
Corporate
and Other (B)
    
Total
  
                                                   
Gross premiums written
   $
1,030
     $
763
     $
1,012
     $
412
     $
3,217
     $
507
     $
10
     $
3,734
  
                                                                 
Net premiums written
   $
1,029
     $
760
     $
991
     $
412
     $
3,192
     $
487
     $
10
     $
3,689
  
Decrease (increase) in unearned premiums
    
1
      
15
       (12 )     (24 )     (20 )    
-
       (2 )     (22 )
Net premiums earned
   $
1,030
     $
775
     $
979
     $
388
     $
3,172
     $
487
     $
8
     $
3,667
  
Losses and loss expenses and
                                                                
   life policy benefits
     (725 )     (505 )     (446 )     (65 )     (1,741 )     (363 )     (7 )     (2,111 )
Acquisition costs
     (243 )     (209 )     (236 )     (43 )     (731 )     (117 )     (1 )     (849 )
Technical result
   $
62
     $
61
     $
297
     $
280
     $
700
     $
7
     $
-
     $
707
  
                                                                 
Other income
                                    
5
      
-
      
19
      
24
  
Other operating expenses
                                     (206 )     (29 )     (75 )     (310 )
Underwriting result
                                   $
499
     $ (22 )    
n/a
     $
421
  
                                                                 
Net investment income
                                            
51
      
398
      
449
  
Allocated underwriting result (1)
                                           $
29
      
n/a
      
n/a
  
                                                                 
Net realized investment gains
                                                    
47
      
47
  
Interest expense
                                                     (61 )     (61 )
Net foreign exchange losses
                                                     (24 )     (24 )
Income tax expense
                                                     (95 )     (95 )
Interest in earnings of equity investments
                                                    
12
      
12
  
Net income
                                                    
n/a
     $
749
  
                                 
Loss ratio (2)
     70.3 %     65.1 %     45.6 %     16.9 %     54.8 %  
Acquisition ratio (3)
    
23.7
      
27.1
      
24.1
      
11.1
      
23.1
    
Technical ratio (4)
     94.0 %     92.2 %     69.7 %     28.0 %     77.9 %  
Other operating expense ratio (5)
                                    
6.5
    
Combined ratio (6)
                                     84.4 %  
                                           
 
(B) The Company reports the results of ChannelRe on one-quarter lag.  The 2007 period includes the Company’s share of ChannelRe’s net loss and a charge which represents the write-down of its total investment in ChannelRe due to anticipated unrealized mark-to-market losses on ChannelRe’s credit derivative portfolio, which it expects to incur during the three-month period ended December 31, 2007, for a total of $92.8 million. The 2006 period includes the Company’s share of ChannelRe’s net income in the amount of $11.7 million.
 
(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 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.
10

PartnerRe Ltd.
Supplementary Information
(Unaudited)
       
For the three
 months ended
December 31,
2007 
    
For the three
months ended
December 31,
2006 
  
For the year
 ended
December 31,
2007 
    
For the year
 ended
December 31,
2006 
                             
Distribution of Net Premiums Written by
                          
Line of Business:
                            
 
Non-Life 
                        
   
Property and casualty
                        
   
  Casualty
     19 %     18 %     17 %     17 %
   
  Property
    
15
      
17
      
17
      
18
  
   
  Motor
    
5
      
5
      
5
      
6
  
   
  Multiline and other
    
2
      
2
      
3
      
3
  
   
Specialty
                                
   
  Agriculture
    
7
      
6
      
4
      
5
  
   
  Aviation/Space
    
6
      
7
      
5
      
6
  
   
  Catastrophe
    
1
      
1
      
11
      
11
  
   
  Credit/Surety
    
8
      
8
      
7
      
6
  
   
  Engineering
    
8
      
6
      
5
      
5
  
   
  Energy
    
2
      
2
      
2
      
2
  
   
  Marine
    
4
      
4
      
4
      
3
  
   
  Specialty casualty
    
2
      
4
      
3
      
3
  
   
  Specialty property
    
1
      
1
      
2
      
2
  
 
Life
      
20
      
19
      
15
      
13
  
          100 %     100 %     100 %     100 %
                                     
Distribution of Gross Premiums Written by
                                  
Geography:
                                    
   
  Europe
     47 %     41 %     45 %     42 %
   
  North America
    
41
      
45
      
42
      
43
  
   
  Asia, Australia and New Zealand
    
6
      
6
      
6
      
8
  
   
  Latin America, Caribbean and Africa
    
6
      
8
      
7
      
7
  
          100 %     100 %     100 %     100 %
                                   
         
As at
December 31,
2007  
                        
Financial Strength Ratings:
                                    
  Standard & Poor's
        
AA-
                          
  Moody's
        
Aa3
                          
  A.M. Best
        
A+
                          
  Fitch
        
AA
                          
                                     
                                     
                         
   
(in thousands of U.S. dollars)
    
(in thousands of U.S. dollars)
  
Capital Structure:
                        
  Long-term debt
   $
620,000
       12 %   $
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
      
4
      
230,000
      
5
  
  Common shareholders' equity
    
3,801,557
      
73
      
3,265,847
      
70
  
  Total Capital
   $
5,191,557
       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.

 
11
PartnerRe Ltd.
Supplementary Information
  
(Unaudited)
  
                                 
     
As at
      
As at
                  
     
December 31,
      
December 31,
                  
     
2007
      
2006
                  
                                 
Investment Portfolio:
                                
  Credit Quality
AAA
    
68
  
%
    
69
  
%
              
 
AA
    
6
        
4
                  
 
A
    
12
        
13
                  
 
BBB
    
11
        
10
                  
 
Below Investment Grade/Unrated
    
3
        
4
                  
       
100
  
%
    
100
  
%
              
                                     
                                     
  By Class
U.S. Government
    
14
  
%
    
12
  
%
              
 
U.S. Mortgage/Asset Backed
    
15
        
16
                  
 
U.S. Corporates
    
19
        
20
                  
 
Foreign Fixed Income
    
35
        
29
                  
 
Equities and Equity Substitutes
    
11
        
14
                  
 
Cash (net of pending transactions)
    
6
        
9
                  
       
100
  
%
    
100
  
%
              
                                     
                                     
  Expected average duration 
    
3.9
  
Yrs
    
4.1
  
Yrs
              
                                     
  Average yield to maturity at market 
    
4.7
  
%
    
4.9
  
%
              
  (fixed income securities and cash) 
                                  
                                     
  Average Credit Quality 
  
AA
      
AA
                  
                                     
                                     
                                     
                                     
     
For the three
      
For the three
      
For the year
      
For the year
  
     
months ended
      
months ended
      
ended
      
ended
  
     
December 31,
      
December 31,
      
December 31,
      
December 31,
  
     
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
    
21.1
  
%
    
36.4
  
%
    
20.9
  
%
     27.8 %
Less:
                                        
     Annualized net realized investment (losses) gains, net of tax, on beginning
                                      
      common shareholders' equity (1) 
     (2.3 )      
3.2
         (1.7 )      
1.8
  
     Interest in (losses) earnings of equity investments, net of tax,  on beginning
                                      
      common shareholders' equity (1) 
     (8.1 )      
0.5
         (2.6 )      
0.5
  
Annualized operating return on beginning common shareholders' equity(1)
    
31.5
  
%
    
32.7
  
%
    
25.2
  
%
     25.5 %
                                         
Net income
     $
180,603
       $
242,717
       $
717,812
       $
749,332
  
Less:
                                        
     Net realized investment (losses) gains, net of tax
     (18,982 )      
20,467
         (56,288 )      
46,459
  
     Interest in (losses) earnings of equity investments, net of tax
     (66,415 )      
3,517
         (82,867 )      
11,966
  
     Dividends to preferred shareholders 
    
8,631
        
8,631
        
34,525
        
34,525
  
Operating earnings available to common shareholders
   $
257,369
       $
210,102
       $
822,442
       $
656,382
  
                                         
Per diluted share:
                                        
Net income
     $
3.04
       $
4.03
       $
11.87
       $
12.37
  
Less:
                                        
     Net realized investment (losses) gains, net of tax
     (0.34 )      
0.36
         (0.98 )      
0.80
  
     Interest in (losses) earnings of equity investments, net of tax
     (1.17 )      
0.06
         (1.44 )      
0.21
  
Operating earnings
     $
4.55
       $
3.61
       $
14.29
       $
11.36
  
                                         
(1) Excluding cumulative preferred shares: 2007 and 2006, $520,000
                                      
 
12

PartnerRe Ltd.
Supplementary Information
(in thousands of U.S. dollars except share and per share data)
  
(Unaudited)
  
             
   
As at
    
As at
  
   
December 31,
    
December 31,
  
   
2007
    
2006
  
             
Reconciliation of GAAP and non-GAAP measures:
            
             
Shareholders' equity
   $
4,321,557
     $
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
   $
3,801,557
     $
3,265,847
  
                 
Less:
                
  Net unrealized gains (losses) on fixed income securities, net of tax
    
71,958
       (18,694 )
                 
                 
Book value excluding net unrealized gains (losses) on fixed income securities
   $
3,729,599
     $
3,284,541
  
                 
Divided by:
                
Number of common and common share equivalents outstanding
    
55,936.4
      
58,248.8
  
                 
Equals:
                
Diluted book value per common and common share equivalents
                
  outstanding excluding net unrealized gains (losses) on fixed income securities
   $
66.68
     $
56.39
  
 
13