8-K

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 27, 2009

PartnerRe Ltd.

(Exact Name of Registrant as Specified in Charter)

Bermuda

(State or Other Jurisdiction of Incorporation)

001-14536	Not Applicable
(Commission File Number)	(IRS Employer Identification No.)
Wellesley House, 90 Pitts Bay Road, Pembroke, Bermuda	HM 08
(Address of Principal Executive Offices)	(Zip Code)

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

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 27, 2009, PartnerRe Ltd. issued a press release reporting its second quarter and half year 2009 results. A copy of the press release, as well as a financial supplement, are attached hereto as Exhibits 99.1 and 99.2, respectively, to this Form 8-K and are hereby incorporated by reference to this Item 2.02.

As provided in General Instruction B.2 of Form 8-K, the information and exhibits contained in this Form 8-K are not deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, are not otherwise subject to the liabilities of that section and are not incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

Exhibit No.	Description
99.1	Press Release of PartnerRe Ltd., dated July 27, 2009
99.2	Financial Supplement

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.

	PartnerRe Ltd.
	(Registrant)
Date: July 28, 2009	By:	/s/    Amanda E. Sodergren
	Name:	Amanda E. Sodergren
	Title:	Chief Legal Counsel

Index to Exhibits

Exhibit No.	Description
99.1	Press Release of PartnerRe Ltd., dated July 27, 2009
99.2	Financial Supplement

EX-99.1

Exhibit 99.1

News Release

PartnerRe Ltd. Reports Second Quarter and Half Year 2009 Results

• Second Quarter Operating Earnings per share of $3.12; Net Income per share of $8.10

• Second Quarter Annualized Operating ROE of 19.5%; Annualized Net Income ROE of 50.6%

• Half Year Operating Earnings per share of $5.84; Net Income per share of $10.43

• Half Year Annualized Operating ROE of 18.2%; Annualized Net Income ROE of 32.5%

• Record Book Value of $73.85 per share, up 15% year-to-date, and 5% year over year

PEMBROKE, Bermuda, July 27, 2009 — PartnerRe Ltd. (NYSE:PRE) today reported net income of $474.3 million, or $8.10 per share on a fully diluted basis for the second quarter of 2009. This net income includes net after-tax realized and unrealized gains on investments of $279.6 million, or $4.86 per share. Net loss for the second quarter of 2008 was $26.0 million, or $0.64 per share, including net after-tax realized and unrealized losses on investments of $219.1 million, or $4.04 per share. Operating earnings for the second quarter of 2009 were $179.3 million, or $3.12 per share on a fully diluted basis. This compares to operating earnings of $183.8 million, or $3.39 per share, for the second quarter of 2008.

Net income for the first six months of 2009 was $615.8 million, or $10.43 per share. This net income includes net after-tax realized and unrealized gains on investments of $205.1 million, or $3.57 per share, as well as a net after tax gain of $57.0 million or $0.99 per share, from the purchase of approximately 75% of the Company’s outstanding Capital Efficient Notes (CENts) in the first quarter of 2009. Net income for the first six months of 2008 was $103.0 million, or $1.54 per share, including net after-tax realized and unrealized losses on investments of $210.1 million, or $3.77 per share. Operating earnings for the first six months of 2009 were $335.0 million, or $5.84 per share on a fully diluted basis. This compares to operating earnings of $294.0 million, or $5.28 per share, for the first six months of 2008.

Operating earnings exclude net after-tax realized and unrealized investment gains and losses, net after-tax realized gain on the purchase of the CENts and net after-tax interest in results of equity investments, 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 2009 results, PartnerRe President & Chief Executive Officer Patrick Thiele said, “PartnerRe had an excellent second quarter and first half of 2009, with both its reinsurance and capital markets activities performing well. For the first six months of 2009, we achieved an operating return on beginning equity of 18%, and a 15% growth in GAAP book value per share. Our reinsurance results benefited from a low level of large losses while our investment operations participated fully in the improvement shown by the global capital markets.”

PartnerRe Ltd.	Telephone +1 441 292 0888
Wellesley House, 5th Floor	Fax +1 441 292 6080
90 Pitts Bay Road	www.partnerre.com
Pembroke, Bermuda HM 08

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 June 30						Six months ended June 30
	2009			2008			2009			2008
Net Premiums Written	$	844,659		$	956,269		$	2,152,717		$	2,367,833
Net Premiums Earned	$	826,129		$	955,539		$	1,692,579		$	1,865,293
Non-life Combined Ratio		83.5	%		85.9	%		85.3	%		89.0	%
Net Income (Loss)	$	474,269		$	(26,024	)	$	615,789		$	102,996
Net Income (Loss) per share (a)	$	8.10		$	(0.64	)	$	10.43		$	1.54
Operating Earnings (a)	$	179,290		$	183,830		$	335,033		$	294,041
Operating Earnings per share (a)	$	3.12		$	3.39		$	5.84		$	5.28

(a) Net income/loss per share is defined as net income/loss available to common shareholders divided by the weighted average number of fully diluted shares outstanding for the period. Net income/loss available to common shareholders is defined as net income/loss less preferred dividends. Operating earnings is defined as net income/loss available to common shareholders excluding after-tax net realized and unrealized gains/losses on investments, net after-tax realized gain on the purchase of the CENts and after-tax 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 second quarter of 2009 were $844.7 million, compared to $956.3 million in the second quarter of 2008. Total revenues for the second quarter of 2009 were $1.3 billion, compared to $809.4 million in the second quarter of 2008, and included $826.1 million of net premiums earned, compared to $955.5 million in the second quarter of 2008; net investment income of $135.6 million, which compares to $145.5 million in the second quarter of 2008; and pre-tax net realized and unrealized investment gains of $306.5 million as compared to pre-tax net realized and unrealized investment losses of $296.3 million for the second quarter of 2008. Foreign exchange negatively impacted comparisons as a result of the year-over-year strengthening of the U.S. dollar. Excluding the impact of foreign exchange, net premiums written, net premiums earned and net investment income would have decreased 3.4%, 4.1% and 0.2%, respectively, compared to the second quarter of 2008.

For the first six months of 2009, net premiums written were $2.2 billion, compared to $2.4 billion in the first six months of 2008. Total revenues for the first half of 2009 were $2.3 billion, compared to $1.9 billion for the first half of 2008, and included $1.7 billion of net

PartnerRe Ltd.	Telephone +1 441 292 0888
Wellesley House, 5th Floor	Fax +1 441 292 6080
90 Pitts Bay Road	www.partnerre.com
Pembroke, Bermuda HM 08

News Release

premiums earned, compared to $1.9 billion in the first half of 2008; net investment income of $268.7 million, which compares to $282.5 million for the first six months of 2008; and pre-tax net realized and unrealized investment gains of $236.4 million as compared to pre-tax net realized and unrealized investment losses of $271.1 million for the first half of 2008; and a pre-tax gain of $88.4 million ($57.0 million after-tax) from the purchase of approximately 75% of the Company’s outstanding CENts during the first quarter of 2009. Foreign exchange negatively impacted comparisons as a result of the year-over-year strengthening of the U.S. dollar. Excluding the impact of foreign exchange, net premiums written and net premiums earned would have decreased 1%, while net investment income would have increased 1%, relative to the amounts reported for the first half of 2008.

Separately, the Company announced today that its Board of Directors declared a quarterly dividend of $0.47 per common share. The dividend will be payable on September 1, 2009, to common shareholders of record on August 21, 2009, with the stock trading ex-dividend commencing August 19, 2009.

Results by Segment

The Non-life segment reported net premiums written of $724 million for the second quarter of 2009, compared to $814 million in the same period in 2008. The combined ratio was 83.5% for the second quarter of 2009 compared to 85.9% for the same period in 2008. The Non-life technical result was $171 million for the second quarter of 2009 compared to $176 million for the prior year period. For the first six months, Non-life net premiums written were $1.9 billion, compared to $2.0 billion for same period of 2008. The six month technical result was $319 million, compared to $292 million for the same period in 2008. The combined ratio for the six month period was 85.3% compared to 89.0% in 2008.

The U.S. business, which represented 29% of total net premiums written for the quarter, reported net premiums written of $249 million for the second quarter of 2009, compared to $246 million in last year’s second quarter. Net premiums earned were $258 million in the second quarter of 2009, compared to $285 million for the same period in 2008. The technical ratio for this sub-segment was 87.9% for the 2009 second quarter, compared to 102.3% in the second quarter of 2008. The technical result for the second quarter of 2009 was a gain of $31 million, compared to a loss of $6 million for the same period in 2008. For the first six months of 2009, net premiums written were $561 million, compared to $578 million in the first six months of 2008. The six-month technical ratio was 90.4%, compared to 95.9% in 2008. The technical result for the half-year was $48 million compared to $22 million in 2008.

PartnerRe Ltd.	Telephone +1 441 292 0888
Wellesley House, 5th Floor	Fax +1 441 292 6080
90 Pitts Bay Road	www.partnerre.com
Pembroke, Bermuda HM 08

News Release

The Global (Non-U.S.) P&C business, which represented 14% of total net premiums written for the quarter, reported net premiums written of $118 million for the second quarter of 2009, compared to $132 million for the same period in 2008. Net premiums earned during the quarter were $161 million, compared to $186 million in the second quarter of 2008. The technical ratio for this sub-segment was 75.2% for the second quarter of 2009 compared to 72.3% for the same period in 2008. The technical result for the second quarter of 2009 was $40 million, compared to $51 million for the same period in 2008. For the six months, net premiums written were $417 million, compared to $505 million for the first half of 2008. The six-month technical ratio was 74.5%, compared to 86.3% in 2008. The technical result for the half-year was $81 million compared to $53 million in 2008.

The Global (Non-U.S.) Specialty business, which represented 28% of total net premiums written for the quarter, reported net premiums written of $232 million for the second quarter of 2009, compared to $291 million for the second quarter of 2008. Net premiums earned were $232 million for the quarter, compared to $272 million in the same period in 2008. This sub-segment’s technical ratio was 87.0% for the second quarter of 2009 compared to 80.5% for the second quarter of 2008. The technical result for the second quarter of 2009 was $30 million, compared to $53 million for the same period in 2008. For the six-month period, net premiums written were $563 million, compared to $624 million in the first half of 2008. The six-month technical ratio was 87.5%, compared to 85.8% in 2008. The technical result for the half-year was $60 million in 2009 compared to $70 million in 2008.

The Catastrophe business, which represented 15% of total net premiums written for the quarter, reported net premiums written of $125 million for the second quarter of 2009, compared to $145 million for the prior year period. Net premiums earned were $52 million for the quarter, compared to $65 million in the same period in 2008. This sub-segment’s technical ratio was (35.1)% for the quarter compared to (20.5)% for the second quarter of 2008. The technical result for the second quarter 2009 was $70 million, compared to $78 million for the same period in 2008. For the six-month period, net premiums written were $330 million, compared to $343 million for the prior year period. The six-month technical ratio was 0.3%, compared to (3.3)% in 2008. The technical result for the half-year was $130 million in 2009 compared to $147 million in 2008.

The Life segment, which represented 14% of total net premiums written for the second quarter of 2009, reported net premiums written of $116 million for the quarter, compared to $136 million in the second quarter of 2008. The allocated underwriting result for the quarter was $15 million, compared to $7 million in the same period of 2008. For the six-month period, net premiums written were $277 million, with an allocated underwriting result of $20 million, compared with net premiums written of $307 million and an allocated underwriting result of $11 million in the first half of 2008.

PartnerRe Ltd.	Telephone +1 441 292 0888
Wellesley House, 5th Floor	Fax +1 441 292 6080
90 Pitts Bay Road	www.partnerre.com
Pembroke, Bermuda HM 08

News Release

The Company’s capital markets and investment activities are reported under the heading of “Corporate and Other”. Within Corporate and Other, capital markets and investment activities contributed $123 million to pre-tax operating income in the second quarter and $241 million to pre-tax operating income in the first six months of the year (exclusive of Life investment income), as compared to $128 million and $248 million in 2008, respectively. Separately, following the adoption of FAS 159, with changes in the unrealized market values of invested assets recorded in net income, capital markets and investment activities contributed pre-tax non-operating gains of $313 million and $236 million in the second quarter and first half of 2009, respectively, compared to pre-tax non-operating losses of $298 million and $272 million, respectively, in the second quarter and first half of 2008.

Balance Sheet Items

At June 30, 2009, total assets were $17.0 billion as compared to $16.3 billion at December 31, 2008. Over the trailing 12 month period, total investments and cash were $12.1 billion at June 30, 2009, relatively flat year over year. Gross Non-life loss and loss expense reserves were $7.4 billion at June 30, 2009, compared to $7.5 billion at December 31, 2008. During the second quarter of 2009, the Company’s estimate of Non-life reserves for prior accident years was reduced by $143 million due to favorable development as well as downward revisions to premiums earned in prior periods. The overall second quarter prior year reserve development in the Non-life segment includes net favorable development in all subsegments, with reductions of $56 million in the U.S. sub-segment, $35 million in the Global (Non-U.S.) P&C sub-segment, $31 million in the Global (Non-U.S.) Specialty sub-segment, and $21 million in the Catastrophe sub-segment. In the second quarter of 2008, Non-life reserves for prior years developed favorably by $130 million. Policy benefits for life and annuity contracts increased by 8% year-to-date to $1.5 billion at June 30, 2009. During the second quarter of 2009, the Company’s estimate of Life reserves for prior years developed favorably by $4 million, while there was no revision to prior estimates in the second quarter of 2008.

At June 30, 2009, total capital was $5.3 billion, and total shareholders’ equity was $4.8 billion. This compares to total capital of $4.9 billion, and total shareholders’ equity of $4.2 billion at December 31, 2008. Book value per common share at June 30, 2009 was $73.85 on a fully diluted basis compared to $63.95 per diluted share at December 31, 2008.

PartnerRe Ltd.	Telephone +1 441 292 0888
Wellesley House, 5th Floor	Fax +1 441 292 6080
90 Pitts Bay Road	www.partnerre.com
Pembroke, Bermuda HM 08

News Release

For additional information, the Company has posted a second quarter 2009 financial supplement on its website www.partnerre.com in the Investor Relations section on the Financial Reports page under Supplementary Financial Data.

Commentary and Outlook

“Non-life market conditions at July 1 were mixed, with only selected specialty lines and Global P&C lines showing improvement. Within that environment, we grew our renewal book by approximately 11% (on a constant exchange basis) with expected profitability that is in-line with our long-term targets.”

Mr. Thiele added, “We remain focused on maintaining a well-balanced portfolio of attractively priced risks under any and all market conditions. Our planned acquisition of PARIS RE is consistent with that objective, and will provide us with both increased diversification of risk and significant growth opportunities at a time when industry demand is likely to remain stagnant. This acquisition will also enhance our financial strength and flexibility through the addition of approximately $1.7 billion in incremental shareholders’ equity. We are confident that the larger and stronger PartnerRe will be better able to achieve its financial goals, with reduced risk, in the uncertain environment we are facing.”

The Company uses operating earnings, diluted operating earnings per share and annualized 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 net realized and unrealized gains/losses on investments, net of tax, net realized gain on the purchase of the CENts, net of tax, nor the interest in earnings/losses of equity investments, net of tax, where the Company does not control the investee companies’ activities. The Company uses technical ratio and technical result as measures of underwriting performance. The technical ratio is defined as the sum of the loss and acquisition ratios. These metrics exclude other operating expenses. The Company also uses combined ratio to measure results for the Non-life segment. The combined ratio is the sum of the technical and other operating expense ratios. The Company uses total capital, which is defined as total shareholders’ equity, long-term debt, senior notes 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

PartnerRe Ltd.	Telephone +1 441 292 0888
Wellesley House, 5th Floor	Fax +1 441 292 6080
90 Pitts Bay Road	www.partnerre.com
Pembroke, Bermuda HM 08

News Release

health, and alternative risk products. For the year ended December 31, 2008, total revenues were $4.0 billion. At June 30, 2009, total assets were $17.0 billion, total capital was $5.3 billion and total shareholders’ equity was $4.8 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 of the Company, PARIS RE, or the combined company 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 and integrating new acquisitions, levels and pricing of new and renewal business achieved, credit, interest, currency and other risks associated with the Company’s, PARIS RE’s, or the combined company’s investment portfolio, changes in accounting policies, the risk that a condition to the closing of the proposed transaction with PARIS RE may not be satisfied, the risk that a regulatory approval that may be required for the proposed transaction is not obtained or is obtained subject to conditions that are not anticipated, failure to consummate or delay in consummating the proposed transaction for other reasons, 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.	Telephone +1 441 292 0888
Wellesley House, 5th Floor	Fax +1 441 292 6080
90 Pitts Bay Road	www.partnerre.com
Pembroke, Bermuda HM 08

PartnerRe Ltd.

Consolidated Statements of Operations and Comprehensive Income (Loss)

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

(Unaudited)

	For the three months ended June 30, 2009			For the three months ended June 30, 2008			For the six months ended June 30, 2009			For the six months ended June 30, 2008
Revenues
Gross premiums written	$	846,149		$	968,163		$	2,186,528		$	2,407,495
Net premiums written	$	844,659		$	956,269		$	2,152,717		$	2,367,833
Increase in unearned premiums		(18,530	)		(730	)		(460,138	)		(502,540	)
Net premiums earned		826,129			955,539			1,692,579			1,865,293
Net investment income		135,593			145,494			268,720			282,504
Net realized and unrealized investment gains (losses)		306,536			(296,255	)		236,417			(271,143	)
Net realized gain on purchase of capital efficient notes		—			—			88,427			—
Other income		3,361			4,591			7,942			6,228
Total revenues		1,271,619			809,369			2,294,085			1,882,882
Expenses
Losses and loss expenses and life policy benefits		458,898			548,720			977,797			1,138,388
Acquisition costs		181,689			228,170			381,657			432,408
Other operating expenses		98,468			96,737			182,062			189,017
Interest expense		6,335			14,914			15,482			26,810
Net foreign exchange losses (gains)		1,202			(1,574	)		4,550			3,223
Total expenses		746,592			886,967			1,561,548			1,789,846
Income (loss) before taxes and interest in earnings (losses) of equity investments		525,027			(77,598	)		732,537			93,036
Income tax expense (benefit)		56,954			(53,423	)		116,765			(10,697	)
Interest in earnings (losses) of equity investments		6,196			(1,849	)		17			(737	)
Net income (loss)	$	474,269		$	(26,024	)	$	615,789		$	102,996
Preferred dividends	$	8,631		$	8,631		$	17,263		$	17,263
Operating earnings available to common shareholders	$	179,290		$	183,830		$	335,033		$	294,041
Comprehensive income (loss), net of tax	$	512,396		$	(15,302	)	$	625,040		$	174,895
Per Share Data:
Earnings per common share:
Basic operating earnings	$	3.17		$	3.39		$	5.92		$	5.42
Net realized and unrealized investment gains (losses), net of tax		4.94			(4.04	)		3.63			(3.87	)
Net realized gain on purchase of capital efficient notes, net of tax		—			—			1.00			—
Interest in earnings of equity investments, net of tax		0.12			0.01			0.03			0.03
Basic net income (loss)	$	8.23		$	(0.64	)	$	10.58		$	1.58
Weighted average number of common shares outstanding		56,609.8			54,276.6			56,560.8			54,262.5
Diluted operating earnings	$	3.12		$	3.39		$	5.84		$	5.28
Net realized and unrealized investment gains (losses), net of tax		4.86			(4.04	)		3.57			(3.77	)
Net realized gain on purchase of capital efficient notes, net of tax		—			—			0.99			—
Interest in earnings of equity investments, net of tax		0.12			0.01			0.03			0.03
Diluted net income (loss)	$	8.10		$	(0.64	)	$	10.43		$	1.54
Weighted average number of common and common share equivalents outstanding		57,469.0			54,276.6			57,394.9			55,685.6

PartnerRe Ltd.

Consolidated Balance Sheets

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

(Unaudited)

	June 30, 2009			December 31, 2008
Assets
Investments:
Fixed maturities, trading securities, at fair value	$	10,756,853		$	10,181,995
Short-term investments, trading securities, at fair value		63,873			117,091
Equities, trading securities, at fair value		527,280			512,812
Other invested assets		105,880			74,493
Total investments		11,453,886			10,886,391
Cash and cash equivalents, at fair value, which approximates amortized cost		616,290			838,280
Accrued investment income		184,925			169,103
Reinsurance balances receivable		2,051,940			1,719,694
Reinsurance recoverable on paid and unpaid losses		156,124			153,594
Funds held by reinsured companies		827,457			786,422
Deferred acquisition costs		673,685			617,121
Deposit assets		330,033			342,132
Net tax assets		140,923			215,703
Goodwill		429,519			429,519
Net receivable for securities sold		37,019			43,007
Other assets		72,270			78,354
Total assets	$	16,974,071		$	16,279,320
Liabilities
Unpaid losses and loss expenses	$	7,396,600		$	7,510,666
Policy benefits for life and annuity contracts		1,546,779			1,432,015
Unearned premiums		1,771,401			1,273,787
Other reinsurance balances payable		237,397			209,007
Deposit liabilities		355,365			362,485
Net tax liabilities		239,516			219,679
Accounts payable, accrued expenses and other		138,346			164,968
Current portion of long-term debt		—			200,000
Long-term debt		200,000			200,000
Debt related to senior notes		250,000			250,000
Debt related to capital efficient notes		70,989			257,605
Total liabilities		12,206,393			12,080,212
Shareholders’ Equity
Common shares (par value $1.00, issued: 2009, 57,950,306; 2008, 57,748,507)		57,950			57,749
Series C cumulative preferred shares (par value $1.00, issued and outstanding: 2009 and 2008, 11,600,000; aggregate liquidation preference: 2009 and 2008, $290,000,000)		11,600			11,600
Series D cumulative preferred shares (par value $1.00, issued and outstanding: 2009 and 2008, 9,200,000; aggregate liquidation preference: 2009 and 2008, $230,000,000)		9,200			9,200
Additional paid-in capital		1,479,431			1,465,688
Accumulated other comprehensive income:
Net unrealized gains on investments, net of tax		5,072			3,943
Currency translation adjustment		42,610			34,888
Unfunded pension obligation, net of tax		(15,623	)		(16,023	)
Retained earnings		3,275,037			2,729,662
Common shares held in treasury, at cost (2009 and 2008, 1,295,173)		(97,599	)		(97,599	)
Total shareholders’ equity		4,767,678			4,199,108
Total liabilities and shareholders’ equity	$	16,974,071		$	16,279,320
Shareholders’ Equity Per Common Share (excluding cumulative preferred shares: 2009 and 2008, $520,000,000)	$	74.97		$	65.17
Diluted Book Value Per Common and Common Share Equivalents Outstanding (assuming exercise of all stock-based awards)	$	73.85		$	63.95
Number of Common and Common Share Equivalents Outstanding		57,514.3			57,533.9

PartnerRe Ltd.

Segment Information

(in millions of U.S. dollars)

(Unaudited)

For the three months ended June 30, 2009

	U.S.			Global (Non-U.S.) P&C			Global (Non-U.S.) Specialty			Catastrophe			Total Non- life Segment			Life Segment			Corporate and Other			Total
Gross premiums written	$	248		$	120		$	232		$	125		$	725		$	116		$	5		$	846
Net premiums written	$	249		$	118		$	232		$	125		$	724		$	116		$	5		$	845
Decrease (increase) in unearned premiums		9			43			—			(73	)		(21	)		7			(5	)		(19	)
Net premiums earned	$	258		$	161		$	232		$	52		$	703		$	123		$	—		$	826
Losses and loss expenses and life policy benefits		(164	)		(83	)		(152	)		22			(377	)		(85	)		3			(459	)
Acquisition costs		(63	)		(38	)		(50	)		(4	)		(155	)		(27	)		—			(182	)
Technical result	$	31		$	40		$	30		$	70		$	171		$	11		$	3		$	185
Other income														1			—			2			3
Other operating expenses														(55	)		(11	)		(32	)		(98	)
Underwriting result													$	117		$	—			n/a		$	90
Net investment income																	15			121			136
Allocated underwriting result (1)																$	15			n/a			n/a
Net realized and unrealized investment gains																				307			307
Interest expense																				(6	)		(6	)
Net foreign exchange losses																				(2	)		(2	)
Income tax expense																				(57	)		(57	)
Interest in earnings of equity investments																				6			6
Net income																				n/a		$	474
Loss ratio (2)		63.7	%		51.5	%		65.5	%		(43.0	)%		53.6	%
Acquisition ratio (3)		24.2			23.7			21.5			7.9			22.0
Technical ratio (4)		87.9	%		75.2	%		87.0	%		(35.1	)%		75.6	%
Other operating expense ratio (5)														7.9
Combined ratio (6)														83.5	%

For the three months ended June 30, 2008
	U.S.			Global (Non- U.S.) P&C			Global (Non- U.S.) Specialty			Catastrophe			Total Non- life Segment			Life Segment			Corporate and Other			Total
Gross premiums written	$	254		$	134		$	291		$	145		$	824		$	138		$	6		$	968
Net premiums written	$	246		$	132		$	291		$	145		$	814		$	136		$	6		$	956
Decrease (increase) in unearned premiums		39			54			(19	)		(80	)		(6	)		10			(4	)		—
Net premiums earned	$	285		$	186		$	272		$	65		$	808		$	146		$	2		$	956
Losses and loss expenses and life policy benefits		(227	)		(87	)		(144	)		20			(438	)		(111	)		—			(549	)
Acquisition costs		(64	)		(48	)		(75	)		(7	)		(194	)		(34	)		—			(228	)
Technical result	$	(6	)	$	51		$	53		$	78		$	176		$	1		$	2		$	179
Other income														2			—			3			5
Other operating expenses														(63	)		(12	)		(22	)		(97	)
Underwriting result													$	115		$	(11	)		n/a		$	87
Net investment income																	18			127			145
Allocated underwriting result (1)																$	7			n/a			n/a
Net realized and unrealized investment losses																				(296	)		(296	)
Interest expense																				(15	)		(15	)
Net foreign exchange gains																				2			2
Income tax benefit																				53			53
Interest in losses of equity investments																				(2	)		(2	)
Net loss																				n/a		$	(26	)
Loss ratio (2)		79.6	%		46.7	%		52.8	%		(30.7	)%		54.2	%
Acquisition ratio (3)		22.7			25.6			27.7			10.2			24.0
Technical ratio (4)		102.3	%		72.3	%		80.5	%		(20.5	)%		78.2	%
Other operating expense ratio (5)														7.7
Combined ratio (6)														85.9	%

(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.

PartnerRe Ltd.

Segment Information

(in millions of U.S. dollars)

(Unaudited)

For the six months ended June 30, 2009

	U.S.			Global (Non-U.S.) P&C			Global (Non-U.S.) Specialty			Catastrophe			Total Non- life Segment			Life Segment			Corporate and Other			Total
Gross premiums written	$	561		$	419		$	591		$	330		$	1,901		$	281		$	5		$	2,187
Net premiums written	$	561		$	417		$	563		$	330		$	1,871		$	277		$	5		$	2,153
Increase in unearned premiums		(61	)		(99	)		(84	)		(199	)		(443	)		(14	)		(3	)		(460	)
Net premiums earned	$	500		$	318		$	479		$	131		$	1,428		$	263		$	2		$	1,693
Losses and loss expenses and life policy benefits		(326	)		(158	)		(309	)		11			(782	)		(198	)		2			(978	)
Acquisition costs		(126	)		(79	)		(110	)		(12	)		(327	)		(55	)		—			(382	)
Technical result	$	48		$	81		$	60		$	130		$	319		$	10		$	4		$	333
Other income														3			1			4			8
Other operating expenses														(109	)		(21	)		(52	)		(182	)
Underwriting result													$	213		$	(10	)		n/a		$	159
Net investment income																	30			239			269
Allocated underwriting result (1)																$	20			n/a			n/a
Net realized and unrealized investment gains																				236			236
Net realized gain on purchase of capital efficient notes																				89			89
Interest expense																				(15	)		(15	)
Net foreign exchange losses																				(5	)		(5	)
Income tax expense																				(117	)		(117	)
Interest in earnings of equity investments																				—			—
Net income																				n/a		$	616
Loss ratio (2)		65.2	%		49.6	%		64.5	%		(8.6	)%		54.8	%
Acquisition ratio (3)		25.2			24.9			23.0			8.9			22.9
Technical ratio (4)		90.4	%		74.5	%		87.5	%		0.3	%		77.7	%
Other operating expense ratio (5)														7.6
Combined ratio (6)														85.3	%

For the six months ended June 30, 2008
	U.S.			Global (Non- U.S.) P&C			Global (Non- U.S.) Specialty			Catastrophe			Total Non- life Segment			Life Segment			Corporate and Other			Total
Gross premiums written	$	586		$	509		$	645		$	343		$	2,083		$	313		$	11		$	2,407
Net premiums written	$	578		$	505		$	624		$	343		$	2,050		$	307		$	11		$	2,368
Increase in unearned premiums		(27	)		(118	)		(134	)		(201	)		(480	)		(16	)		(7	)		(503	)
Net premiums earned	$	551		$	387		$	490		$	142		$	1,570		$	291		$	4		$	1,865
Losses and loss expenses and life policy benefits		(398	)		(234	)		(291	)		18			(905	)		(233	)		—			(1,138	)
Acquisition costs		(131	)		(100	)		(129	)		(13	)		(373	)		(59	)		—			(432	)
Technical result	$	22		$	53		$	70		$	147		$	292		$	(1	)	$	4		$	295
Other income														3			—			3			6
Other operating expenses														(120	)		(21	)		(48	)		(189	)
Underwriting result													$	175		$	(22	)		n/a		$	112
Net investment income																	33			249			282
Allocated underwriting result (1)																$	11			n/a			n/a
Net realized and unrealized investment losses																				(271	)		(271	)
Interest expense																				(27	)		(27	)
Net foreign exchange losses																				(3	)		(3	)
Income tax benefit																				11			11
Interest in losses of equity investments																				(1	)		(1	)
Net income																				n/a		$	103
Loss ratio (2)		72.2	%		60.6	%		59.5	%		(12.9	)%		57.6	%
Acquisition ratio (3)		23.7			25.7			26.3			9.6			23.8
Technical ratio (4)		95.9	%		86.3	%		85.8	%		(3.3	)%		81.4	%
Other operating expense ratio (5)														7.6
Combined ratio (6)														89.0	%

EX-99.2

Exhibit 99.2

PartnerRe Ltd.

Financial Supplement

Financial Information

as of June 30, 2009

(unaudited)

The following financial supplement is provided to assist in your understanding of

PartnerRe Ltd.

This report is for information purposes only. It should be read in conjunction with

documents filed with the SEC by PartnerRe Ltd., including the Company’s Annual

Report on Form 10-K and Quarterly Reports on Form 10-Q.

PartnerRe Ltd.

Financial Supplement - June 30, 2009

Table of Contents

	Page
Regulation G
Consolidated Financial Statements
Consolidated Income Statements	1-2
Condensed Consolidated Balance Sheets	3
Condensed Consolidated Statements of Cash Flows	4-5
Consolidated Statements of Comprehensive Income (Loss)	6
Segment Information
For the three months ended June 30, 2009 and 2008	7-8
For the six months ended June 30, 2009 and 2008	9-10
Non-life segment	11-12
U.S. sub-segment	13-14
Global (Non-U.S.) P&C sub-segment	15-16
Global (Non-U.S.) Specialty sub-segment	17-18
Catastrophe sub-segment	19-20
Life segment	21-22
Corporate and Other	23-24
Distribution of Premiums
Distribution of Premiums by line of business, geography and production source	25-26
Distribution of Premiums by treaty type	27-28
Investments
Investment Portfolio	29
Distribution of Corporate Bonds and Equities	30-31
Distribution of Mortgage/Asset-Backed Securities	32
Other Invested Assets including Private Markets and Derivative Exposures	33
Composition of Net Investment Income and Net Realized and Unrealized Investment Gains (Losses)	34-35
Loss Reserves
Analysis of Unpaid Losses and Loss Expenses	36-37
Analysis of Policy Benefits for Life and Annuity Contracts	38-39
Reserve Development	40
Reconciliation of GAAP and non-GAAP measures	41-43
Diluted Book Value per Common Share - Treasury Stock Method	44
Diluted Book Value per Common Share - Rollforward	45-46

PartnerRe Ltd.

Regulation G

In addition to the GAAP financial measures set forth in this Financial Supplement, the Company has also included certain non-GAAP financial measures within the meaning of Regulation G. Management believes that these non-GAAP financial measures are important to investors, analysts, rating agencies and others who use the Company’s financial information and will help provide a consistent basis for comparison between quarters and for comparison with other companies within the industry. However, investors should consider these non-GAAP measures in addition to, and not as a substitute for, measures of financial performance prepared in accordance with GAAP.

The reconciliation of non-GAAP financial measures to the most comparable GAAP financial measures in accordance with Regulation G is included within the relevant tables.

Operating Earnings available to Common Shareholders (Operating Earnings), Diluted Operating Earnings per Common Share and Annualized Operating Return on Beginning Common Shareholders’ Equity (Annualized Operating ROE): The Company uses Operating Earnings, Diluted Operating Earnings per Common Share and Annualized Operating ROE to measure performance, as these measures focus on the underlying fundamentals of the Company’s operations. Operating Earnings exclude the impact of net realized and unrealized gains and losses on investments, net of tax, net realized gain on purchase of capital efficient notes, net of tax, and the interest in earnings (losses) of equity investments, net of tax, where the Company does not control the investee companies’ activities, and are calculated after preferred dividends. The Company calculates Diluted Operating Earnings per Common Share using Operating Earnings for the period divided by the weighted average number of common and common share equivalents outstanding. The Company calculates Annualized Operating ROE using annualized Operating Earnings for the period divided by the common shareholders’ equity as of the beginning of the year. Operating Earnings and Diluted Operating Earnings per Common Share should not be viewed as a substitute for Net Income or Diluted Net Income per Common Share prepared in accordance with GAAP. Annualized Operating ROE supplements GAAP information.

Book Value excluding Net Unrealized Gains and Losses on Fixed Income Securities, Net of Tax (Book Value excluding NURGL) and Diluted Book Value per Common and Common Share Equivalents Outstanding excluding Net Unrealized Gains and Losses on Fixed Income Securities, Net of Tax (Diluted Book Value excluding NURGL): The Company calculates Book Value excluding NURGL using common shareholders’ equity less net unrealized gains and losses on fixed income securities, net of tax. Book Value excluding NURGL focuses on the underlying fundamentals of the Company’s financial position without the impact of interest rates and credit spreads on the unrealized gains and losses on fixed income securities (net of tax). The Company calculates Diluted Book Value excluding NURGL using Book Value excluding NURGL divided by the weighted average number of common and common share equivalents outstanding.

Total Capital: The Company calculates total capital as the sum of total shareholders’ equity, long-term debt, senior notes and capital efficient notes. The Company uses Total Capital as a measure to manage the capital structure of the Company.

PartnerRe Ltd.

Consolidated Income Statements

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

(Unaudited)

	For the three months ended
	June 30, 2009			March 31, 2009			December 31, 2008			September 30, 2008			June 30, 2008
Revenues
Gross premiums written	$	846,149		$	1,340,380		$	752,169		$	868,584		$	968,163
Net premiums written	$	844,659		$	1,308,058		$	752,408		$	869,194		$	956,269
(Increase) decrease in unearned premiums		(18,530	)		(441,608	)		231,864			209,265			(730	)
Net premiums earned		826,129			866,450			984,272			1,078,459			955,539
Net investment income		135,593			133,127			144,321			146,138			145,494
Net realized and unrealized investment gains (losses)		306,536			(70,120	)		63,967			(324,184	)		(296,255	)
Net realized gain on purchase of capital efficient notes		—			88,427			—			—			—
Other income (loss)		3,361			4,582			7,946			(3,838	)		4,591
Total revenues		1,271,619			1,022,466			1,200,506			896,575			809,369
Expenses
Losses and loss expenses and life policy benefits		458,898			518,899			718,871			751,961			548,720
Acquisition costs		181,689			199,968			233,660			232,814			228,170
Other operating expenses		98,468			83,594			89,053			86,939			96,737
Interest expense		6,335			9,146			12,541			11,877			14,914
Net foreign exchange losses (gains)		1,202			3,349			(14,041	)		4,597			(1,574	)
Total expenses		746,592			814,956			1,040,084			1,088,188			886,967
Income (loss) before taxes and interest in earnings (losses) of equity investments		525,027			207,510			160,422			(191,613	)		(77,598	)
Income tax expense (benefit)		56,954			59,812			59,910			(39,508	)		(53,423	)
Interest in earnings (losses) of equity investments		6,196			(6,177	)		(5,222	)		386			(1,849	)
Net income (loss)	$	474,269		$	141,521		$	95,290		$	(151,719	)	$	(26,024	)
Preferred dividends	$	8,631		$	8,631		$	8,631		$	8,631		$	8,631
Operating earnings available to common shareholders	$	179,290		$	155,742		$	53,931		$	121,331		$	183,830
Comprehensive income (loss), net of tax	$	512,396		$	112,645		$	(45,437	)	$	(243,372	)	$	(15,302	)
Per Share Data:
Earnings per common share:
Basic operating earnings	$	3.17		$	2.76		$	0.97		$	2.27		$	3.39
Net realized and unrealized investment gains (losses), net of tax		4.94			(1.32	)		0.68			(5.27	)		(4.04	)
Net realized gain on purchase of capital efficient notes, net of tax		—			1.00			—			—			—
Interest in earnings (losses) of equity investments, net of tax		0.12			(0.09	)		(0.09	)		(0.01	)		0.01
Basic net income (loss)	$	8.23		$	2.35		$	1.56		$	(3.01	)	$	(0.64	)
Weighted average number of common shares outstanding		56,609.8			56,511.2			55,521.6			53,339.9			54,276.6
Diluted operating earnings	$	3.12		$	2.72		$	0.95		$	2.27		$	3.39
Net realized and unrealized investment gains (losses), net of tax		4.86			(1.30	)		0.67			(5.27	)		(4.04	)
Net realized gain on purchase of capital efficient notes, net of tax		—			0.99			—			—			—
Interest in earnings (losses) of equity investments, net of tax		0.12			(0.09	)		(0.09	)		(0.01	)		0.01
Diluted net income (loss)	$	8.10		$	2.32		$	1.53		$	(3.01	)	$	(0.64	)
Weighted average number of common and common share equivalents outstanding		57,469.0			57,320.3			56,602.1			53,339.9			54,276.6

1

PartnerRe Ltd.

Consolidated Income Statements

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

(Unaudited)

	For the six months ended						For the year ended
	June 30, 2009			June 30, 2008			December 31, 2008			December 31, 2007
Revenues
Gross premiums written	$	2,186,528		$	2,407,495		$	4,028,248		$	3,810,164
Net premiums written	$	2,152,717		$	2,367,833		$	3,989,435		$	3,757,109
(Increase) decrease in unearned premiums		(460,138	)		(502,540	)		(61,411	)		20,362
Net premiums earned		1,692,579			1,865,293			3,928,024			3,777,471
Net investment income		268,720			282,504			572,964			523,259
Net realized and unrealized investment gains (losses) (1)		236,417			(271,143	)		(531,360	)		(72,492	)
Net realized gain on purchase of capital efficient notes		88,427			—			—			—
Other income (loss)		7,942			6,228			10,335			(17,479	)
Total revenues		2,294,085			1,882,882			3,979,963			4,210,759
Expenses
Losses and loss expenses and life policy benefits		977,797			1,138,388			2,609,220			2,082,461
Acquisition costs		381,657			432,408			898,882			849,715
Other operating expenses		182,062			189,017			365,009			326,486
Interest expense		15,482			26,810			51,228			54,017
Net foreign exchange losses (gains)		4,550			3,223			(6,221	)		15,552
Total expenses		1,561,548			1,789,846			3,918,118			3,328,231
Income before taxes and interest in earnings (losses) of equity investments		732,537			93,036			61,845			882,528
Income tax expense (benefit)		116,765			(10,697	)		9,705			81,748
Interest in earnings (losses) of equity investments		17			(737	)		(5,573	)		(82,968	)
Net income	$	615,789		$	102,996		$	46,567		$	717,812
Preferred dividends	$	17,263		$	17,263		$	34,525		$	34,525
Operating earnings available to common shareholders	$	335,033		$	294,041		$	469,304		$	822,442
Comprehensive income (loss), net of tax	$	625,040		$	174,895		$	(113,914	)	$	888,692
Per Share Data:
Earnings per common share:
Basic operating earnings	$	5.92		$	5.42		$	8.64		$	14.66
Net realized and unrealized investment gains (losses), net of tax (1)		3.63			(3.87	)		(8.35	)		(1.00	)
Net realized gain on purchase of capital efficient notes, net of tax		1.00			—			—			—
Interest in earnings (losses) of equity investments, net of tax		0.03			0.03			(0.07	)		(1.48	)
Basic net income	$	10.58		$	1.58		$	0.22		$	12.18
Weighted average number of common shares outstanding		56,560.8			54,262.5			54,347.1			56,104.4
Diluted operating earnings	$	5.84		$	5.28		$	8.43		$	14.29
Net realized and unrealized investment gains (losses), net of tax (1)		3.57			(3.77	)		(8.15	)		(0.98	)
Net realized gain on purchase of capital efficient notes, net of tax		0.99			—			—			—
Interest in earnings (losses) of equity investments, net of tax		0.03			0.03			(0.06	)		(1.44	)
Diluted net income	$	10.43		$	1.54		$	0.22		$	11.87
Weighted average number of common and common share equivalents outstanding		57,394.9			55,685.6			55,639.6			57,557.9

(1) Following the adoption of SFAS 159 on January 1, 2008, net realized and unrealized investment gains (losses) include both realized and unrealized gains (losses) on investments. Prior to the adoption of SFAS 159, net realized and unrealized investment gains (losses) included realized gains (losses) on investments and other-than-temporary impairment charges.

2

PartnerRe Ltd.

Condensed Consolidated Balance Sheets

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

(Unaudited)

	June 30, 2009				March 31, 2009				December 31, 2008				September 30, 2008				June 30, 2008				December 31, 2007				December 31, 2006
Assets
Total investments	$	11,453,886			$	10,830,252			$	10,886,391			$	10,859,773			$	11,561,358			$	10,917,341			$	9,689,937
Cash and cash equivalents		616,290				571,638				838,280				675,594				480,349				654,895				988,788
Accrued investment income		184,925				170,693				169,103				154,551				201,234				176,386				157,923
Reinsurance balances receivable		2,051,940				2,125,796				1,719,694				1,871,981				2,160,974				1,449,702				1,573,566
Funds held by reinsured companies		827,457				753,187				786,422				893,583				938,804				1,083,036				1,002,402
Deferred acquisition costs		673,685				659,012				617,121				690,145				756,582				641,818				542,698
Other assets		1,165,888				1,164,196				1,262,309				1,362,712				1,288,269				1,226,318				1,078,198
Total assets	$	16,974,071			$	16,274,774			$	16,279,320			$	16,508,339			$	17,387,570			$	16,149,496			$	15,033,512
Liabilities
Unpaid losses and loss expenses	$	7,396,600			$	7,393,205			$	7,510,666			$	7,484,625			$	7,614,036			$	7,231,436			$	6,870,785
Policy benefits for life and annuity contracts		1,546,779				1,421,420				1,432,015				1,526,275				1,641,389				1,541,687				1,430,691
Unearned premiums		1,771,401				1,706,598				1,273,787				1,555,263				1,837,256				1,267,873				1,215,624
Other reinsurance balances payable		237,397				217,335				209,007				192,219				203,933				156,055				154,367
Debt obligations		520,989				520,989				907,605				907,605				907,605				877,605				877,605
Other liabilities		733,227				733,160				747,132				757,666				774,109				753,283				698,593
Total liabilities		12,206,393				11,992,707				12,080,212				12,423,653				12,978,328				11,827,939				11,247,665
Total shareholders’ equity		4,767,678				4,282,067				4,199,108				4,084,686				4,409,242				4,321,557				3,785,847
Total liabilities and shareholders’ equity	$	16,974,071			$	16,274,774			$	16,279,320			$	16,508,339			$	17,387,570			$	16,149,496			$	15,033,512
Shareholders’ Equity Per Common Share (excluding cumulative preferred shares)	$	74.97			$	66.49			$	65.17			$	66.91			$	72.02			$	70.07			$	57.22
Diluted Book Value Per Common and Common Share Equivalents Outstanding (assuming exercise of all stock-based awards)	$	73.85			$	65.55			$	63.95			$	65.38			$	70.22			$	67.96			$	56.07
Number of Common and Common Share Equivalents Outstanding		57,514.3				57,388.2				57,533.9				54,519.3				55,388.3				55,936.4				58,248.8
Capital Structure:
Long-term debt	$	200,000	4	%	$	200,000	4	%	$	200,000	4	%	$	400,000	8	%	$	400,000	8	%	$	620,000	12	%	$	620,000	13	%
Senior notes (1)		250,000	5			250,000	5			250,000	5			250,000	5			250,000	5			—	—			—	—
Capital efficient notes (2)		63,384	1			63,384	1			250,000	5			250,000	5			250,000	5			250,000	5			250,000	6
6.75% Series C cumulative preferred shares, aggregate liquidation		290,000	6			290,000	6			290,000	6			290,000	6			290,000	5			290,000	6			290,000	6
6.5% Series D cumulative preferred shares, aggregate liquidation		230,000	4			230,000	5			230,000	5			230,000	5			230,000	4			230,000	4			230,000	5
Common shareholders’ equity		4,247,678	80			3,762,067	79			3,679,108	75			3,564,686	71			3,889,242	73			3,801,557	73			3,265,847	70
Total Capital	$	5,281,062	100	%	$	4,795,451	100	%	$	4,899,108	100	%	$	4,984,686	100	%	$	5,309,242	100	%	$	5,191,557	100	%	$	4,655,847	100	%

(1) PartnerRe Finance A LLC, the issuer of the senior notes, does not meet the consolidation requirements of FIN 46(R). Accordingly, the Company shows the related intercompany debt of $250.0 million on its Condensed Consolidated Balance Sheets.

(2) 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 $71.0 million as at June 30, 2009 and March 31, 2009 and $257.6 million for all other Condensed Consolidated Balance Sheet dates presented.

3

PartnerRe Ltd.

Condensed Consolidated Statements of Cash Flows

(Expressed in millions of U.S. dollars)

(Unaudited)

	For the three months ended
	June 30, 2009			March 31, 2009			December 31, 2008			September 30, 2008			June 30, 2008
Net cash provided by operating activities:
Underwriting operations	$	37		$	147		$	153		$	190		$	102
Investment income		136			131			125			187			127
Taxes and foreign exchange		1			(24	)		(10	)		(5	)		(7	)
Net cash provided by operating activities	$	174		$	254		$	268		$	372		$	222
Net cash provided by operating activities	$	174		$	254		$	268		$	372		$	222
Net cash used in investing activities		(110	)		(180	)		(254	)		(73	)		(211	)
Net cash (used in) provided by financing activities		(33	)		(329	)		162			(89	)		(26	)
Effect of foreign exchange rate changes on cash		13			(11	)		(14	)		(14	)		(2	)
Increase (decrease) in cash and cash equivalents		44			(266	)		162			196			(17	)
Cash and cash equivalents - beginning of period		572			838			676			480			497
Cash and cash equivalents - end of period	$	616		$	572		$	838		$	676		$	480

4

PartnerRe Ltd.

Condensed Consolidated Statements of Cash Flows

(Expressed in millions of U.S. dollars)

(Unaudited)

	For the six months ended						For the year ended
	June 30, 2009			June 30, 2008			December 31, 2008			December 31, 2007
Net cash provided by operating activities:
Underwriting operations	$	184		$	261		$	604		$	650
Investment income		267			268			580			515
Taxes and foreign exchange		(23	)		(10	)		(25	)		(66	)
Cash flow from operations		428			519			1,159			1,099
Sales of trading securities (1)		—			—			—			128
Net cash provided by operating activities as published	$	428		$	519		$	1,159		$	1,227
Net cash provided by operating activities	$	428		$	519		$	1,159		$	1,227
Net cash used in investing activities (1)		(290	)		(615	)		(944	)		(1,193	)
Net cash used in financing activities		(362	)		(77	)		(2	)		(379	)
Effect of foreign exchange rate changes on cash		2			(2	)		(30	)		11
(Decrease) increase in cash and cash equivalents		(222	)		(175	)		183			(334	)
Cash and cash equivalents - beginning of period		838			655			655			989
Cash and cash equivalents - end of period	$	616		$	480		$	838		$	655

(1) Following the adoption of SFAS 159 on January 1, 2008, purchases and sales of trading securities are classified within investing activities.

5

PartnerRe Ltd.

Consolidated Statements of Comprehensive Income (Loss)

(Expressed in thousands of U.S. dollars)

(Unaudited)

	For the three months ended
	June 30, 2009			March 31, 2009			December 31, 2008			September 30, 2008			June 30, 2008
Net income (loss)	$	474,269		$	141,521		$	95,290		$	(151,719	)	$	(26,024	)
Change in net unrealized gains or losses on investments, net of tax		(9	)		1,138			76			(146	)		6,653
Change in currency translation adjustment		38,922			(31,200	)		(128,163	)		(91,732	)		4,000
Change in unfunded pension obligation, net of tax		(786	)		1,186			(12,640	)		225			69
Comprehensive income (loss)	$	512,396		$	112,645		$	(45,437	)	$	(243,372	)	$	(15,302	)

	For the six months ended					For the year ended
	June 30, 2009		June 30, 2008			December 31, 2008			December 31, 2007
Net income	$	615,789	$	102,996		$	46,567		$	717,812
Change in net unrealized gains or losses on investments, net of tax		1,129		15,227			15,157			37,834
Change in currency translation adjustment		7,722		57,006			(162,889	)		129,043
Change in unfunded pension obligation, net of tax		400		(334	)		(12,749	)		4,003
Comprehensive income (loss)	$	625,040	$	174,895		$	(113,914	)	$	888,692

6

PartnerRe Ltd.

Segment Information

(in millions of U.S. dollars)

(Unaudited)

	For the three months ended June 30, 2009
	U.S.			Global (Non-U.S.) P&C			Global (Non-U.S.) Specialty			Catastrophe			Total Non-life Segment			Life Segment			Corporate and Other			Total
Gross premiums written	$	248		$	120		$	232		$	125		$	725		$	116		$	5		$	846
Net premiums written	$	249		$	118		$	232		$	125		$	724		$	116		$	5		$	845
Decrease (increase) in unearned premiums		9			43			—			(73	)		(21	)		7			(5	)		(19	)
Net premiums earned	$	258		$	161		$	232		$	52		$	703		$	123		$	—		$	826
Losses and loss expenses and life policy benefits		(164	)		(83	)		(152	)		22			(377	)		(85	)		3			(459	)
Acquisition costs		(63	)		(38	)		(50	)		(4	)		(155	)		(27	)		—			(182	)
Technical result	$	31		$	40		$	30		$	70		$	171		$	11		$	3		$	185
Other income														1			—			2			3
Other operating expenses														(55	)		(11	)		(32	)		(98	)
Underwriting result													$	117		$	—			n/a		$	90
Net investment income																	15			121			136
Allocated underwriting result (1)																$	15			n/a			n/a
Net realized and unrealized investment gains																				307			307
Interest expense																				(6	)		(6	)
Net foreign exchange losses																				(2	)		(2	)
Income tax expense																				(57	)		(57	)
Interest in earnings of equity investments																				6			6
Net income																				n/a		$	474
Loss ratio (2)		63.7	%		51.5	%		65.5	%		(43.0	)%		53.6	%
Acquisition ratio (3)		24.2			23.7			21.5			7.9			22.0
Technical ratio (4)		87.9	%		75.2	%		87.0	%		(35.1	)%		75.6	%
Other operating expense ratio (5)														7.9
Combined ratio (6)														83.5	%

(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.

7

PartnerRe Ltd.

Segment Information

(in millions of U.S. dollars)

(Unaudited)

	For the three months ended June 30, 2008
	U.S.			Global (Non-U.S.) P&C			Global (Non-U.S.) Specialty			Catastrophe			Total Non-life Segment			Life Segment			Corporate and Other			Total
Gross premiums written	$	254		$	134		$	291		$	145		$	824		$	138		$	6		$	968
Net premiums written	$	246		$	132		$	291		$	145		$	814		$	136		$	6		$	956
Decrease (increase) in unearned premiums		39			54			(19	)		(80	)		(6	)		10			(4	)		—
Net premiums earned	$	285		$	186		$	272		$	65		$	808		$	146		$	2		$	956
Losses and loss expenses and life policy benefits		(227	)		(87	)		(144	)		20			(438	)		(111	)		—			(549	)
Acquisition costs		(64	)		(48	)		(75	)		(7	)		(194	)		(34	)		—			(228	)
Technical result	$	(6	)	$	51		$	53		$	78		$	176		$	1		$	2		$	179
Other income														2			—			3			5
Other operating expenses														(63	)		(12	)		(22	)		(97	)
Underwriting result													$	115		$	(11	)		n/a		$	87
Net investment income																	18			127			145
Allocated underwriting result (1)																$	7			n/a			n/a
Net realized and unrealized investment losses																				(296	)		(296	)
Interest expense																				(15	)		(15	)
Net foreign exchange gains																				2			2
Income tax benefit																				53			53
Interest in losses of equity investments																				(2	)		(2	)
Net loss																				n/a		$	(26	)
Loss ratio (2)		79.6	%		46.7	%		52.8	%		(30.7	)%		54.2	%
Acquisition ratio (3)		22.7			25.6			27.7			10.2			24.0
Technical ratio (4)		102.3	%		72.3	%		80.5	%		(20.5	)%		78.2	%
Other operating expense ratio (5)														7.7
Combined ratio (6)														85.9	%

8

PartnerRe Ltd.

Segment Information

(in millions of U.S. dollars)

(Unaudited)

	For the six months ended June 30, 2009
	U.S.			Global (Non-U.S.) P&C			Global (Non-U.S.) Specialty			Catastrophe			Total Non-life Segment			Life Segment			Corporate and Other			Total
Gross premiums written	$	561		$	419		$	591		$	330		$	1,901		$	281		$	5		$	2,187
Net premiums written	$	561		$	417		$	563		$	330		$	1,871		$	277		$	5		$	2,153
Increase in unearned premiums		(61	)		(99	)		(84	)		(199	)		(443	)		(14	)		(3	)		(460	)
Net premiums earned	$	500		$	318		$	479		$	131		$	1,428		$	263		$	2		$	1,693
Losses and loss expenses and life policy benefits		(326	)		(158	)		(309	)		11			(782	)		(198	)		2			(978	)
Acquisition costs		(126	)		(79	)		(110	)		(12	)		(327	)		(55	)		—			(382	)
Technical result	$	48		$	81		$	60		$	130		$	319		$	10		$	4		$	333
Other income														3			1			4			8
Other operating expenses														(109	)		(21	)		(52	)		(182	)
Underwriting result													$	213		$	(10	)		n/a		$	159
Net investment income																	30			239			269
Allocated underwriting result (1)																$	20			n/a			n/a
Net realized and unrealized investment gains																				236			236
Net realized gain on purchase of capital efficient notes																				89			89
Interest expense																				(15	)		(15	)
Net foreign exchange losses																				(5	)		(5	)
Income tax expense																				(117	)		(117	)
Interest in earnings of equity investments																				—			—
Net income																				n/a		$	616
Loss ratio (2)		65.2	%		49.6	%		64.5	%		(8.6	)%		54.8	%
Acquisition ratio (3)		25.2			24.9			23.0			8.9			22.9
Technical ratio (4)		90.4	%		74.5	%		87.5	%		0.3	%		77.7	%
Other operating expense ratio (5)														7.6
Combined ratio (6)														85.3	%

9

PartnerRe Ltd.

Segment Information

(in millions of U.S. dollars)

(Unaudited)

	For the six months ended June 30, 2008
	U.S.			Global (Non-U.S.) P&C			Global (Non-U.S.) Specialty			Catastrophe			Total Non-life Segment			Life Segment			Corporate and Other			Total
Gross premiums written	$	586		$	509		$	645		$	343		$	2,083		$	313		$	11		$	2,407
Net premiums written	$	578		$	505		$	624		$	343		$	2,050		$	307		$	11		$	2,368
Increase in unearned premiums		(27	)		(118	)		(134	)		(201	)		(480	)		(16	)		(7	)		(503	)
Net premiums earned	$	551		$	387		$	490		$	142		$	1,570		$	291		$	4		$	1,865
Losses and loss expenses and life policy benefits		(398	)		(234	)		(291	)		18			(905	)		(233	)		—			(1,138	)
Acquisition costs		(131	)		(100	)		(129	)		(13	)		(373	)		(59	)		—			(432	)
Technical result	$	22		$	53		$	70		$	147		$	292		$	(1	)	$	4		$	295
Other income														3			—			3			6
Other operating expenses														(120	)		(21	)		(48	)		(189	)
Underwriting result													$	175		$	(22	)		n/a		$	112
Net investment income																	33			249			282
Allocated underwriting result (1)																$	11			n/a			n/a
Net realized and unrealized investment losses																				(271	)		(271	)
Interest expense																				(27	)		(27	)
Net foreign exchange losses																				(3	)		(3	)
Income tax benefit																				11			11
Interest in losses of equity investments																				(1	)		(1	)
Net income																				n/a		$	103
Loss ratio (2)		72.2	%		60.6	%		59.5	%		(12.9	)%		57.6	%
Acquisition ratio (3)		23.7			25.7			26.3			9.6			23.8
Technical ratio (4)		95.9	%		86.3	%		85.8	%		(3.3	)%		81.4	%
Other operating expense ratio (5)														7.6
Combined ratio (6)														89.0	%

10

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Non-life segment

	For the three months ended
	June 30, 2009			March 31, 2009			December 31, 2008			September 30, 2008			June 30, 2008
Net premiums written	$	724		$	1,147		$	620		$	723		$	814
Net premiums earned	$	703		$	724		$	844		$	920		$	808
Losses and loss expenses		(377	)		(405	)		(603	)		(623	)		(438	)
Acquisition costs		(155	)		(172	)		(204	)		(200	)		(194	)
Technical result	$	171		$	147		$	37		$	97		$	176
Other income (loss)		1			3			6			(5	)		2
Other operating expenses		(55	)		(54	)		(56	)		(55	)		(63	)
Underwriting result	$	117		$	96		$	(13	)	$	37		$	115
Loss ratio (1)		53.6	%		55.9	%		71.3	%		67.8	%		54.2	%
Acquisition ratio (2)		22.0			23.7			24.3			21.7			24.0
Technical ratio (3)		75.6	%		79.6	%		95.6	%		89.5	%		78.2	%
Other operating expense ratio (4)		7.9			7.4			6.6			6.0			7.7
Combined ratio (5)		83.5	%		87.0	%		102.2	%		95.5	%		85.9	%

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

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

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

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

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

11

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Non-life segment

	For the six months ended						For the year ended
	June 30, 2009			June 30, 2008			December 31, 2008			December 31, 2007
Net premiums written	$	1,871		$	2,050		$	3,392		$	3,185
Net premiums earned	$	1,428		$	1,570		$	3,334		$	3,203
Losses and loss expenses		(782	)		(905	)		(2,131	)		(1,627	)
Acquisition costs		(327	)		(373	)		(777	)		(734	)
Technical result	$	319		$	292		$	426		$	842
Other income		3			3			4			7
Other operating expenses		(109	)		(120	)		(231	)		(214	)
Underwriting result	$	213		$	175		$	199		$	635
Loss ratio (1)		54.8	%		57.6	%		63.9	%		50.8	%
Acquisition ratio (2)		22.9			23.8			23.3			22.9
Technical ratio (3)		77.7	%		81.4	%		87.2	%		73.7	%
Other operating expense ratio (4)		7.6			7.6			6.9			6.7
Combined ratio (5)		85.3	%		89.0	%		94.1	%		80.4	%

12

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

U.S. sub-segment

	For the three months ended
	June 30, 2009			March 31, 2009			December 31, 2008			September 30, 2008			June 30, 2008
Net premiums written	$	249		$	312		$	223		$	264		$	246
Net premiums earned	$	258		$	241		$	261		$	276		$	285
Losses and loss expenses		(164	)		(162	)		(202	)		(212	)		(227	)
Acquisition costs		(63	)		(63	)		(63	)		(67	)		(64	)
Technical result	$	31		$	16		$	(4	)	$	(3	)	$	(6	)
Loss ratio (1)		63.7	%		66.9	%		77.3	%		76.9	%		79.6	%
Acquisition ratio (2)		24.2			26.2			24.5			24.2			22.7
Technical ratio (3)		87.9	%		93.1	%		101.8	%		101.1	%		102.3	%
Distribution of Net Premiums Written by Major Lines of Business:
Casualty		39	%		45	%		40	%		44	%		47	%
Property		20			18			18			16			11
Agriculture		19			15			28			20			32
Motor		7			8			4			7			4
Multiline		3			10			2			6			3
Other		12			4			8			7			3
Total		100	%		100	%		100	%		100	%		100	%

13

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

U.S. sub-segment

	For the six months ended						For the year ended
	June 30, 2009			June 30, 2008			December 31, 2008			December 31, 2007
Net premiums written	$	561		$	578		$	1,064		$	1,020
Net premiums earned	$	500		$	551		$	1,088		$	999
Losses and loss expenses		(326	)		(398	)		(812	)		(608	)
Acquisition costs		(126	)		(131	)		(261	)		(241	)
Technical result	$	48		$	22		$	15		$	150
Loss ratio (1)		65.2	%		72.2	%		74.6	%		60.8	%
Acquisition ratio (2)		25.2			23.7			24.0			24.1
Technical ratio (3)		90.4	%		95.9	%		98.6	%		84.9	%
Distribution of Net Premiums Written by Major Lines of Business:
Casualty		42	%		47	%		45	%		50	%
Property		19			14			15			14
Agriculture		17			23			23			12
Motor		7			5			5			7
Multiline		7			7			6			9
Other		8			4			6			8
Total		100	%		100	%		100	%		100	%

14

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Global (Non-U.S.) P&C sub-segment

	For the three months ended
	June 30, 2009			March 31, 2009			December 31, 2008			September 30, 2008			June 30, 2008
Net premiums written	$	118		$	299		$	123		$	137		$	132
Net premiums earned	$	161		$	157		$	215		$	195		$	186
Losses and loss expenses		(83	)		(75	)		(122	)		(98	)		(87	)
Acquisition costs		(38	)		(41	)		(51	)		(47	)		(48	)
Technical result	$	40		$	41		$	42		$	50		$	51
Loss ratio (1)		51.5	%		47.9	%		56.6	%		50.3	%		46.7	%
Acquisition ratio (2)		23.7			26.0			23.8			24.2			25.6
Technical ratio (3)		75.2	%		73.9	%		80.4	%		74.5	%		72.3	%
Distribution of Net Premiums Written by Major Lines of Business:
Property		75	%		66	%		57	%		60	%		63	%
Casualty		7			13			15			13			13
Motor		18			21			28			27			24
Total		100	%		100	%		100	%		100	%		100	%

15

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Global (Non-U.S.) P&C sub-segment

	For the six months ended						For the year ended
	June 30, 2009			June 30, 2008			December 31, 2008			December 31, 2007
Net premiums written	$	417		$	505		$	765		$	738
Net premiums earned	$	318		$	387		$	797		$	758
Losses and loss expenses		(158	)		(234	)		(454	)		(523	)
Acquisition costs		(79	)		(100	)		(198	)		(191	)
Technical result	$	81		$	53		$	145		$	44
Loss ratio (1)		49.6	%		60.6	%		56.9	%		69.0	%
Acquisition ratio (2)		24.9			25.7			24.9			25.2
Technical ratio (3)		74.5	%		86.3	%		81.8	%		94.2	%
Distribution of Net Premiums Written by Major Lines of Business:
Property		68	%		64	%		62	%		68	%
Casualty		12			15			15			15
Motor		20			21			23			17
Total		100	%		100	%		100	%		100	%

16

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Global (Non-U.S.) Specialty sub-segment

	For the three months ended
	June 30, 2009			March 31, 2009			December 31, 2008			September 30, 2008			June 30, 2008
Net premiums written	$	232		$	331		$	251		$	274		$	291
Net premiums earned	$	232		$	247		$	266		$	290		$	272
Losses and loss expenses		(152	)		(157	)		(245	)		(185	)		(144	)
Acquisition costs		(50	)		(60	)		(80	)		(72	)		(75	)
Technical result	$	30		$	30		$	(59	)	$	33		$	53
Loss ratio (1)		65.5	%		63.6	%		92.0	%		63.8	%		52.8	%
Acquisition ratio (2)		21.5			24.4			30.1			24.8			27.7
Technical ratio (3)		87.0	%		88.0	%		122.1	%		88.6	%		80.5	%
Distribution of Net Premiums Written by Major Lines of Business:
Aviation/Space		17	%		9	%		22	%		18	%		15	%
Credit/Surety		13			14			22			21			20
Engineering		17			15			22			16			20
Energy		6			13			6			8			9
Marine		19			15			12			14			12
Specialty casualty		13			17			8			12			13
Specialty property		8			12			3			6			6
Other		7			5			5			5			5
Total		100	%		100	%		100	%		100	%		100	%

17

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Global (Non-U.S.) Specialty sub-segment

	For the six months ended						For the year ended
	June 30, 2009			June 30, 2008			December 31, 2008			December 31, 2007
Net premiums written	$	563		$	624		$	1,150		$	1,026
Net premiums earned	$	479		$	490		$	1,046		$	1,006
Losses and loss expenses		(309	)		(291	)		(721	)		(450	)
Acquisition costs		(110	)		(129	)		(281	)		(260	)
Technical result	$	60		$	70		$	44		$	296
Loss ratio (1)		64.5	%		59.5	%		69.0	%		44.7	%
Acquisition ratio (2)		23.0			26.3			26.8			25.9
Technical ratio (3)		87.5	%		85.8	%		95.8	%		70.6	%
Distribution of Net Premiums Written by Major Lines of Business:
Aviation/Space		12	%		13	%		16	%		17	%
Credit/Surety		14			20			20			19
Engineering		16			18			19			20
Energy		10			6			7			7
Marine		17			12			13			13
Specialty casualty		15			16			13			12
Specialty property		10			10			8			8
Other		6			5			4			4
Total		100	%		100	%		100	%		100	%

18

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Catastrophe sub-segment

	For the three months ended
	June 30, 2009			March 31, 2009			December 31, 2008			September 30, 2008			June 30, 2008
Net premiums written	$	125		$	205		$	23		$	48		$	145
Net premiums earned	$	52		$	79		$	102		$	159		$	65
Losses and loss expenses		22			(11	)		(34	)		(128	)		20
Acquisition costs		(4	)		(8	)		(10	)		(14	)		(7	)
Technical result	$	70		$	60		$	58		$	17		$	78
Loss ratio (1)		(43.0	)%		14.1	%		33.4	%		80.8	%		(30.7	)%
Acquisition ratio (2)		7.9			9.6			9.4			8.7			10.2
Technical ratio (3)		(35.1	)%		23.7	%		42.8	%		89.5	%		(20.5	)%

19

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Catastrophe sub-segment

	For the six months ended						For the year ended
	June 30, 2009			June 30, 2008			December 31, 2008			December 31, 2007
Net premiums written	$	330		$	343		$	413		$	401
Net premiums earned	$	131		$	142		$	403		$	440
Losses and loss expenses		11			18			(144	)		(46	)
Acquisition costs		(12	)		(13	)		(37	)		(42	)
Technical result	$	130		$	147		$	222		$	352
Loss ratio (1)		(8.6	)%		(12.9	)%		35.8	%		10.5	%
Acquisition ratio (2)		8.9			9.6			9.2			9.6
Technical ratio (3)		0.3	%		(3.3	)%		45.0	%		20.1	%

20

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Life segment

	For the three months ended
	June 30, 2009			March 31, 2009			December 31, 2008			September 30, 2008			June 30, 2008
Net premiums written	$	116		$	160		$	131		$	141		$	136
Net premiums earned	$	123		$	140		$	136		$	149		$	146
Life policy benefits		(85	)		(113	)		(116	)		(114	)		(111	)
Acquisition costs		(27	)		(28	)		(29	)		(32	)		(34	)
Technical result	$	11		$	(1	)	$	(9	)	$	3		$	1
Other income		—			1			—			—			—
Other operating expenses		(11	)		(10	)		(11	)		(11	)		(12	)
Underwriting result	$	—		$	(10	)	$	(20	)	$	(8	)	$	(11	)
Net investment income		15			15			16			17			18
Allocated underwriting result (1)	$	15		$	5		$	(4	)	$	9		$	7
Distribution of Net Premiums Written by Major Lines of Business:
Mortality		80	%		86	%		86	%		86	%		85	%
Longevity		15			10			11			11			12
Health		5			4			3			3			3
Total		100	%		100	%		100	%		100	%		100	%

(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.

21

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Life segment

	For the six months ended						For the year ended
	June 30, 2009			June 30, 2008			December 31, 2008			December 31, 2007
Net premiums written	$	277		$	307		$	579		$	569
Net premiums earned	$	263		$	291		$	576		$	571
Life policy benefits		(198	)		(233	)		(463	)		(455	)
Acquisition costs		(55	)		(59	)		(120	)		(116	)
Technical result	$	10		$	(1	)	$	(7	)	$	—
Other income		1			—			—			—
Other operating expenses		(21	)		(21	)		(43	)		(33	)
Underwriting result	$	(10	)	$	(22	)	$	(50	)	$	(33	)
Net investment income		30			33			67			54
Allocated underwriting result (1)	$	20		$	11		$	17		$	21
Distribution of Net Premiums Written by Major Lines of Business:
Mortality		84	%		86	%		86	%		82	%
Longevity		12			12			11			15
Health		4			2			3			3
Total		100	%		100	%		100	%		100	%

22

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Corporate and Other

	For the three months ended
	June 30, 2009			March 31, 2009			December 31, 2008			September 30, 2008			June 30, 2008
Technical result	$	3		$	1		$	4		$	(6	)	$	2
Other income		2			1			2			1			3
Corporate expenses		(29	)		(16	)		(18	)		(16	)		(18	)
Other operating expenses		(3	)		(4	)		(4	)		(5	)		(4	)
Net investment income		121			118			128			129			127
Net realized and unrealized investment gains (losses)		307			(70	)		64			(324	)		(296	)
Net realized gain on purchase of capital efficient notes		—			89			—			—			—
Interest expense		(6	)		(9	)		(13	)		(12	)		(15	)
Net foreign exchange (losses) gains		(2	)		(3	)		14			(5	)		2
Income tax (expense) benefit		(57	)		(60	)		(60	)		40			53
Interest in earnings (losses) of equity investments (1)		6			(6	)		(5	)		—			(2	)

(1) The Company reports the results of equity investments on a one-quarter lag.

23

PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

Corporate and Other

	For the six months ended						For the year ended
	June 30, 2009			June 30, 2008			December 31, 2008			December 31, 2007
Technical result	$	4		$	4		$	1		$	3
Other income (loss)		4			3			6			(24	)
Corporate expenses		(46	)		(40	)		(75	)		(67	)
Other operating expenses		(6	)		(8	)		(16	)		(13	)
Net investment income		239			249			506			469
Net realized and unrealized investment gains (losses) (1)		236			(271	)		(531	)		(72	)
Net realized gain on purchase of capital efficient notes		89			—			—			—
Interest expense		(15	)		(27	)		(51	)		(54	)
Net foreign exchange (losses) gains		(5	)		(3	)		6			(15	)
Income tax (expense) benefit		(117	)		11			(10	)		(82	)
Interest in earnings (losses) of equity investments (2)		—			(1	)		(5	)		(83	)
PartnerRe’s interest in ChannelRe’s net loss (2)		—			—			—			(93	)

(1) Following the adoption of SFAS 159 on January 1, 2008, net realized and unrealized investment gains (losses) include both realized and unrealized gains (losses) on investments. Prior to the adoption of SFAS 159, net realized and unrealized investment gains (losses) included realized gains (losses) on investments and other-than-temporary impairment charges.

(2) The Company reports the results of equity investments on a one-quarter lag. The 2007 period includes the Company’s share of ChannelRe Holdings’ net loss and a charge which represented the write-down of its total investment in ChannelRe Holdings due to anticipated unrealized mark-to-market losses on Channel Reinsurance Ltd’s credit derivative portfolio, which it expected to incur during the three-months ended December 31, 2007, for a total of $92.8 million.

24

PartnerRe Ltd.

Distribution of Premiums

(Unaudited)

	For the three months ended
	June 30, 2009		March 31, 2009		December 31, 2008		September 30, 2008		June 30, 2008
Distribution of Net Premiums Written by Line of Business:
Non-life
Property and casualty
Casualty	13	%	14	%	14	%	16	%	14	%
Property	16		19		15		14		11
Motor	4		6		6		6		4
Multiline and other	3		3		2		3		2
Specialty
Agriculture	8		5		10		7		10
Aviation/Space	5		2		7		6		5
Catastrophe	15		16		3		6		15
Credit/Surety	5		5		9		8		7
Engineering	5		4		7		5		6
Energy	2		3		2		2		3
Marine	5		4		4		5		3
Specialty casualty	3		4		3		4		4
Specialty property	2		3		1		2		2
Life	14		12		17		16		14
	100	%	100	%	100	%	100	%	100	%
Distribution of Gross Premiums Written by Geography:
North America	48	%	38	%	42	%	44	%	47	%
Europe	32		49		45		42		39
Asia, Australia and New Zealand	11		6		4		5		7
Latin America, Caribbean and Africa	9		7		9		9		7
	100	%	100	%	100	%	100	%	100	%
Distribution of Gross Premiums Written by Production Source:
Broker	76	%	69	%	69	%	71	%	75	%
Direct	24		31		31		29		25
	100	%	100	%	100	%	100	%	100	%

25

PartnerRe Ltd.

Distribution of Premiums

(Unaudited)

	For the six months ended				For the year ended
	June 30, 2009		June 30, 2008		December 31, 2008			December 31, 2007
Distribution of Net Premiums Written by Line of Business:
Non-life
Property and casualty
Casualty	13	%	15	%		15	%	17	%
Property	18		17			16		17
Motor	6		6			6		5
Multiline and other	3		2			3		3
Specialty
Agriculture	6		7			7		4
Aviation/Space	3		3			5		5
Catastrophe	15		14			10		11
Credit/Surety	5		6			7		7
Engineering	4		5			5		5
Energy	3		2			2		2
Marine	4		3			4		4
Specialty casualty	4		4			4		3
Specialty property	3		3			2		2
Life	13		13			14		15
	100	%	100	%	$	100	%	100	%
Distribution of Gross Premiums Written by Geography:
North America	42	%	40	%		41	%	42	%
Europe	42		47			46		45
Asia, Australia and New Zealand	8		6			5		6
Latin America, Caribbean and Africa	8		7			8		7
	100	%	100	%		100	%	100	%
Distribution of Gross Premiums Written by Production Source:
Broker	72	%	72	%		71	%	69	%
Direct	28		28			29		31
	100	%	100	%		100	%	100	%

26

PartnerRe Ltd.

Distribution of Premiums

(Unaudited)

	For the three months ended
	June 30, 2009		March 31, 2009		December 31, 2008		September 30, 2008		June 30, 2008
Distribution of Gross Premiums Written by Treaty Type Non-life sub-segment:
U.S.
Non-Proportional	27	%	45	%	14	%	32	%	30	%
Proportional	73		55		86		68		70
Total	100	%	100	%	100	%	100	%	100	%
Global (Non-U.S.) P&C
Non-Proportional	16	%	34	%	6	%	18	%	13	%
Proportional	84		66		94		82		87
Total	100	%	100	%	100	%	100	%	100	%
Global (Non-U.S.) Specialty
Non-Proportional	21	%	23	%	7	%	12	%	13	%
Proportional	79		77		93		88		87
Total	100	%	100	%	100	%	100	%	100	%
Catastrophe
Non-Proportional	97	%	99	%	96	%	97	%	97	%
Proportional	3		1		4		3		3
Total	100	%	100	%	100	%	100	%	100	%
Non-life total
Non-Proportional	35	%	45	%	12	%	26	%	33	%
Proportional	65		55		88		74		67
Total	100	%	100	%	100	%	100	%	100	%

27

PartnerRe Ltd.

Distribution of Premiums

(Unaudited)

	For the six months ended				For the year ended
	June 30, 2009		June 30, 2008		December 31, 2008		December 31, 2007
Distribution of Gross Premiums Written by Treaty Type Non-life sub-segment:
U.S.
Non-Proportional	37	%	38	%	32	%	37	%
Proportional	63		62		68		63
Total	100	%	100	%	100	%	100	%
Global (Non-U.S.) P&C
Non-Proportional	29	%	30	%	24	%	25	%
Proportional	71		70		76		75
Total	100	%	100	%	100	%	100	%
Global (Non-U.S.) Specialty
Non-Proportional	22	%	20	%	15	%	15	%
Proportional	78		80		85		85
Total	100	%	100	%	100	%	100	%
Catastrophe
Non-Proportional	98	%	97	%	97	%	99	%
Proportional	2		3		3		1
Total	100	%	100	%	100	%	100	%
Non-life total
Non-Proportional	41	%	40	%	32	%	35	%
Proportional	59		60		68		65
Total	100	%	100	%	100	%	100	%

28

PartnerRe Ltd.

Investment Portfolio

(Expressed in millions of U.S. dollars)

(Unaudited)

	June 30, 2009 (1)					March 31, 2009 (1)					December 31, 2008 (1)					September 30, 2008 (1)					June 30, 2008 (1)					December 31, 2007					December 31, 2006
Investments:
Fixed maturities
U.S. government	$	754		6	%	$	881		8	%	$	836		7	%	$	614		6	%	$	874		8	%	$	1,217		11	%	$	1,000		10	%
Government Sponsored Entities (GSEs)		68		1			80		1			95		1			249		2			271		2			328		3			358		4
U.S. municipalities		4		—			—		—			—		—			—		—			—		—			—		—			—		—
Other foreign governments		3,177		28			2,869		27			2,824		26			2,839		26			2,917		25			2,821		26			1,985		21
Corporates		3,860		34			3,392		31			3,413		31			3,286		30			3,503		30			2,861		26			2,341		24
Mortgage/asset-backed securities		2,894		25			3,058		28			3,014		28			2,787		26			2,723		24			2,272		21			2,152		22
Total fixed maturities		10,757		94			10,280		95			10,182		93			9,775		90			10,288		89			9,499		87			7,836		81
Short-term investments		64		—			69		1			117		1			114		1			108		1			97		1			134		1
Equities		527		5			426		4			513		5			858		8			1,065		9			872		8			1,015		11
Trading securities		—		—			—		—			—		—			—		—			—		—			399		4			600		6
Other invested assets		106		1			55		—			74		1			113		1			100		1			50		—			105		1
Total investments	$	11,454		100	%	$	10,830		100	%	$	10,886		100	%	$	10,860		100	%	$	11,561		100	%	$	10,917		100	%	$	9,690		100	%
Cash and cash equivalents	$	616				$	572				$	838				$	676				$	480				$	655				$	989
Total investments and cash		12,070					11,402					11,724					11,536					12,041					11,572					10,679
Maturity distribution:
One year or less	$	506		5	%	$	452		4	%	$	545		5	%	$	705		7	%	$	754		7	%	$	730		7	%	$	848		11	%
More than one year through five years		4,342		40			3,697		36			3,649		35			3,528		36			3,611		35			3,444		36			2,610		33
More than five years through ten years		2,701		25			2,791		27			2,730		27			2,518		25			2,896		28			2,764		29			2,000		25
More than ten years		378		3			351		3			361		4			351		4			412		4			386		4			360		4
Subtotal		7,927		73			7,291		70			7,285		71			7,102		72			7,673		74			7,324		76			5,818		73
Mortgage/asset-backed securities		2,894		27			3,058		30			3,014		29			2,787		28			2,723		26			2,272		24			2,152		27
Total	$	10,821		100	%	$	10,349		100	%	$	10,299		100	%	$	9,889		100	%	$	10,396		100	%	$	9,596		100	%	$	7,970		100	%
Credit quality by market value:
AAA		58	%				62	%				62	%				59	%				59	%				65	%				65	%
AA		6					6					5					8					8					7					5
A		21					19					19					17					17					12					14
BBB		12					10					11					12					12					12					11
Below Investment Grade/Unrated		3					3					3					4					4					4					5
		100	%				100	%				100	%				100	%				100	%				100	%				100	%
Expected average duration		3.0	Yrs				3.0	Yrs				3.1	Yrs				4.1	Yrs				3.8	Yrs				3.9	Yrs				4.1	Yrs
Average yield to maturity at market		4.3	%				4.8	%				5.2	%				5.4	%				5.0	%				4.7	%				4.9	%
Average credit quality		AA					AA					AA					AA					AA					AA					AA

(1) On January 1, 2008, the Company adopted SFAS 159. Following the adoption of SFAS 159, the fixed maturities, short-term investments and equities previously classified as available for sale securities are classified as trading securities.

29

PartnerRe Ltd.

Distribution of Corporate Bonds

(Expressed in thousands of U.S. dollars)

(Unaudited)

	June 30, 2009
	Fair Value		Percentage to Total Fair Value of Corporate Bonds		Percentage to Invested Assets and Cash		Largest Single Issuer as a Percentage of Invested Assets and Cash
Distribution by sector - Corporate bonds
Finance	$	1,189,730	30.8	%	9.9	%	0.9	%
Consumer noncyclical		568,464	14.7		4.7		0.3
Communications		549,392	14.2		4.5		0.8
Industrials		272,437	7.1		2.3		0.3
Utilities		241,460	6.3		2.0		0.2
Consumer cyclical		236,982	6.1		2.0		0.3
Catastrophe bonds		216,098	5.6		1.8		0.4
Energy		211,105	5.5		1.7		0.2
Insurance		153,624	4.0		1.3		0.2
Materials		118,284	3.1		1.0		0.2
Technology		78,518	2.0		0.6		0.1
Real estate investment trusts		23,737	0.6		0.2		0.1
Total Corporate bonds	$	3,859,831	100.0	%	32.0	%
Finance sector - Corporate bonds
Banks	$	451,626	11.7	%	3.7	%
Investment banking and brokerage		332,392	8.6		2.8
Commercial and consumer finance		200,918	5.2		1.7
Financial services		173,964	4.5		1.4
Other		30,830	0.8		0.3
Total finance sector - Corporate bonds	$	1,189,730	30.8	%	9.9	%

	AAA			AA			A			BBB			Non- Investment Grade			Total
Credit quality of finance sector - Corporate bonds
Banks	$	17,104		$	109,230		$	284,219		$	33,624		$	7,449		$	451,626
Investment banking and brokerage		12,248			—			313,880			6,264			—			332,392
Commercial and consumer finance		—			—			116,151			78,943			5,824			200,918
Financial services		12,181			112,973			35,306			13,504			—			173,964
Other		4,057			7,138			4,493			11,464			3,678			30,830
Total finance sector - Corporate bonds	$	45,590		$	229,341		$	754,049		$	143,799		$	16,951		$	1,189,730
% of total		3.8	%		19.3	%		63.4	%		12.1	%		1.4	%		100.0	%

Concentration of investment risk

The Top 10 corporate bond issuers account for 22.0% of the Company’s total corporate bonds. The single largest issuer accounts for 3.3% of the Company’s total corporate bonds.

30

PartnerRe Ltd.

Distribution of Equities

(Expressed in thousands of U.S. dollars)

(Unaudited)

	June 30, 2009
	Fair Value		Percentage to Total Fair Value of Equities		Percentage to Invested Assets and Cash		Largest Single Issuer as a Percentage of Invested Assets and Cash
Distribution by sector - Equities
Consumer noncyclical	$	122,562	26.5	%	1.0	%	0.1	%
Technology		68,589	14.9		0.6		0.2
Energy		63,179	13.7		0.5		0.2
Finance		47,743	10.3		0.4		—
Communications		44,130	9.5		0.4		0.1
Industrials		35,873	7.8		0.3		0.1
Consumer cyclical		31,747	6.9		0.3		—
Insurance		24,981	5.4		0.2		0.1
Materials		17,958	3.9		0.1		—
Real estate investment trusts		5,054	1.1		—		—
Total equities	$	461,816	100.0	%	3.8	%
Mutual funds and exchange traded funds (ETFs)
Funds holding fixed income securities		32,773			0.3
Funds and ETFs holding equities		32,691			0.3
Total equities	$	527,280			4.4	%

Concentration of investment risk

The Top 10 common stock issuers, excluding equity securities held in mutual funds and exchange traded funds, account for 27.0% of the Company’s total equities. The single largest issuer accounts for 6.0% of the Company’s total equities.

31

PartnerRe Ltd.

Distribution of Mortgage/Asset-Backed Securities

(Expressed in thousands of U.S. dollars)

(Unaudited)

Fixed Maturities - Mortgage/Asset-Backed Securities by type and by rating

	Rating at June 30, 2009
	GNMA			GSEs			AAA			AA			A			BBB			Non- Investment Grade			Total
U.S. Asset-Backed Securities	$	—		$	—		$	249,414		$	45,623		$	34,872		$	136,589		$	63,434		$	529,932
U.S. Collaterized Mortgage Obligations		—			14,815			—			—			1,309			—			—			16,124
U.S. Commercial Mortage Backed Securities (CMBS)		—			—			13,803			—			19,262			1,571			—			34,636
U.S. Mortgage Backed Securities (MBS)		196,934			1,838,413			26,792			—			—			—			—			2,062,139
U.S. MBS Interest Only		—			16,046			—			—			—			—			—			16,046
Subtotal U.S. mortgage/asset-backed securities	$	196,934		$	1,869,274		$	290,009		$	45,623		$	55,443		$	138,160		$	63,434		$	2,658,877
Non-U.S. Asset-Backed Securities	$	—		$	—		$	2,591		$	8,971		$	3,596		$	—		$	—		$	15,158
Non-U.S. Collaterized Mortgage Obligations		—			—			84,220			1,710			—			1,037			—			86,967
Non-U.S. Commercial Mortage Backed Securities (CMBS)		—			—			15,965			—			—			—			—			15,965
Non-U.S. Mortgage Backed Securities		—			—			113,860			—			—			2,695			—			116,555
Subtotal Non-U.S. mortgage/asset-backed securities	$	—		$	—		$	216,636		$	10,681		$	3,596		$	3,732		$	—		$	234,645
Total mortgage/asset-backed securities	$	196,934		$	1,869,274		$	506,645		$	56,304		$	59,039		$	141,892		$	63,434		$	2,893,522
Corporate Securities		—			68,019			—			—			—			—			—			68,019
Total	$	196,934		$	1,937,293		$	506,645		$	56,304		$	59,039		$	141,892		$	63,434		$	2,961,541
% of total		6.7	%		65.4	%		17.1	%		1.9	%		2.0	%		4.8	%		2.1	%		100.0	%

32

PartnerRe Ltd.

Other Invested Assets including Private Markets and Derivative Exposures

(Expressed in thousands of U.S. dollars)

(Unaudited)

Carrying and Notional Values of Private Markets Investments and Other Invested Assets

	June 30, 2009
	Investments		Fair Value of Derivatives			Carrying Value			Net Notional Amount of Derivatives			Total Net Exposures (1)
Private Markets Investments
Principal Finance - Investments	$	21,054	$	—		$	21,054		$	—		$	21,054
Principal Finance - Derivative Exposure Assumed		—		(20,306	)		(20,306	)		240,943			220,637
Insurance-Linked Securities		—		(296	)		(296	)		35,432			35,136
Strategic Investments		99,507		—			99,507			—			99,507
Total other invested assets - Private Markets Exposure Assumed		120,561		(20,602	)		99,959			276,375			376,334
Other Credit Derivatives - Exposure Assumed		—		(12,095	)		(12,095	)		18,214			6,119
Other Credit Derivatives - Protection Purchased		—		3,560			3,560			(224,141	)		(220,581	)
Other (2)		10,057		4,399			14,456
Total other invested assets	$	130,618	$	(24,738	)	$	105,880

(1) The total net exposures originated in Private Markets are $979 million. In addition to the net exposures listed above of $376 million, the Company has the following other net exposures originated in Private Markets:

- Principal Finance: $280 million of assets listed under Investments - Fixed Maturities and $4 million of limits on transactions that use reinsurance accounting for a total exposure of $526 million.

- Insurance-Linked Securities: $238 million of bonds listed under Investments - Fixed Maturities and $77 million of limits on transactions that use reinsurance accounting for a total exposure of $350 million.

- Strategic Investments: $1 million of futures included in Other and $3 million of assets listed under Other Assets for a total exposure of $103 million.

(2) Other includes foreign currency and fixed income hedging instruments used to manage currency and duration exposure, respectively, and other miscellaneous invested assets.

33

PartnerRe Ltd.

Composition of Net Investment Income and Net Realized and Unrealized Investment Gains (Losses)

(Expressed in thousands of U.S. dollars)

(Unaudited)

	For the three months ended
	June 30, 2009			March 31, 2009			December 31, 2008			September 30, 2008			June 30, 2008
Fixed maturities	$	132,017		$	129,135		$	134,729		$	131,289		$	129,056
Short-term investments, trading securities, cash and cash equivalents		1,287			1,902			3,795			4,099			4,695
Equities		3,533			3,096			6,534			7,366			7,155
Funds held and other		8,001			7,377			7,490			10,136			10,779
Investment expenses		(9,245	)		(8,383	)		(8,227	)		(6,752	)		(6,191	)
Net investment income	$	135,593		$	133,127		$	144,321		$	146,138		$	145,494
Net realized investment gains (losses) on fixed maturities and short-term investments (1)	$	8,048		$	20,284		$	12,883		$	(91,845	)	$	17,844
Net realized investment losses on equities		(61,760	)		(41,408	)		(126,362	)		(57,681	)		(20,658	)
Net realized gains (losses) on other invested assets		15,998			16,308			28,305			(35,347	)		(16,040	)
Change in net unrealized gains (losses) on other invested assets		37,725			(20,047	)		(10,933	)		2,330			13,947
Change in net unrealized investment gains (losses) on fixed maturities subject to the fair value option under SFAS 159		186,819			(48,371	)		176,067			(97,577	)		(303,100	)
Change in net unrealized investment (losses) gains on short-term investments subject to the fair value option under SFAS 159		(206	)		(375	)		1,915			(1,049	)		(193	)
Change in net unrealized investment gains (losses) on equities subject to the fair value option under SFAS 159		121,199			3,489			(14,052	)		(56,280	)		14,784
Net other realized and unrealized investment (losses) gains		(1,287	)		—			(3,856	)		13,265			(2,839	)
Net realized and unrealized investment gains (losses)	$	306,536		$	(70,120	)	$	63,967		$	(324,184	)	$	(296,255	)

(1) Net realized investment losses on fixed maturities and short-term investments includes a $ 95,117 write-down of defaulted securities for the three months ended September 30, 2008.

34

PartnerRe Ltd.

Composition of Net Investment Income and Net Realized and Unrealized Investment Gains (Losses) ⁽¹⁾

(Expressed in thousands of U.S. dollars)

(Unaudited)

	For the six months ended						For the year ended
	June 30, 2009			June 30, 2008			December 31, 2008 (1)			December 31, 2007
Fixed maturities	$	261,152		$	248,732		$	514,751		$	421,672
Short-term investments, trading securities, cash and cash equivalents		3,189			10,990			18,884			55,618
Equities		6,629			15,514			29,415			36,383
Funds held and other		15,378			19,636			37,261			32,339
Investment expenses		(17,628	)		(12,368	)		(27,347	)		(22,753	)
Net investment income	$	268,720		$	282,504		$	572,964		$	523,259
Net realized investment gains (losses) on fixed maturities and short-term investments, excluding other-than-temporary impairments (2)	$	28,332		$	62,886		$	(16,076	)	$	(16,842	)
Net realized investment (losses) gains on equities, excluding other-than-temporary impairments		(103,168	)		(46,438	)		(230,481	)		82,037
Other-than-temporary impairments		—			—			—			(124,997	)
Net realized gains on trading securities		—			—			—			18,667
Change in net unrealized investment losses on trading securities		—			—			—			(31,308	)
Net realized and unrealized investment losses on equity securities sold but not yet purchased		—			—			—			(9,398	)
Net realized and unrealized gains on designated hedging activities		—			—			—			7,482
Net realized gains on other invested assets		32,306			7,400			358			10,408
Change in net unrealized gains on other invested assets		17,678			11,815			3,212			—
Change in net unrealized investment gains (losses) on fixed maturities subject to the fair value option under SFAS 159		138,448			(229,350	)		(150,860	)		—
Change in net unrealized investment (losses) gains on short-term investments subject to the fair value option under SFAS 159		(581	)		(315	)		551			—
Change in net unrealized investment gains (losses) on equities subject to the fair value option under SFAS 159		124,689			(74,302	)		(144,634	)		—
Net other realized and unrealized investment (losses) gains		(1,287	)		(2,839	)		6,570			(8,541	)
Net realized and unrealized investment gains (losses)	$	236,417		$	(271,143	)	$	(531,360	)	$	(72,492	)

(1) The Company adopted SFAS 159 effective January 1, 2008. For all periods prior to the adoption of SFAS 159, unrealized gains and losses, net of tax, on available for sale securities were recorded as a component of accumulated other comprehensive income in the Consolidated Balance Sheets. Following the adoption of SFAS 159, the Company’s available for sale securities have been reclassified as trading securities and all changes in pre-tax unrealized investment gains and losses are recorded in net realized and unrealized investment gains (losses) in the Consolidated Statements of Operations. Net investment income and net realized and unrealized investment gains and losses on securities previously classified as trading have been recorded within the related investments classification (fixed maturities or equities) beginning in 2008, and the change in net unrealized investment gains and losses on such securities are included in change in net unrealized investment gains and losses on securities subject to the fair value option under SFAS 159.

(2) Net realized investment losses on fixed maturities and short-term investments includes a $ 95,117 write-down of defaulted securities for the year ended December 31, 2008.

35

PartnerRe Ltd.

Analysis of Unpaid Losses and Loss Expenses

(Expressed in thousands of U.S. dollars)

(Unaudited)

	As at and for the three months ended
	June 30, 2009			March 31, 2009			December 31, 2008			September 30, 2008			June 30, 2008
Reconciliation of beginning and ending liability for unpaid losses and loss expenses:
Gross liability at beginning of period	$	7,393,205		$	7,510,666		$	7,484,625		$	7,614,036		$	7,573,371
Reinsurance recoverable at beginning of period		(128,025	)		(125,215	)		(125,248	)		(133,385	)		(135,629	)
Net liability at beginning of period		7,265,180			7,385,451			7,359,377			7,480,651			7,437,742
Net incurred losses related to:
Current year		516,512			505,497			670,595			740,948			567,961
Prior years		(142,909	)		(99,583	)		(68,080	)		(102,505	)		(130,667	)
		373,603			405,914			602,515			638,443			437,294
Net losses paid (1)		(599,585	)		(337,094	)		(396,595	)		(445,973	)		(395,895	)
Effects of foreign exchange rate changes		231,382			(189,091	)		(179,846	)		(313,744	)		1,510
Net liability at end of period		7,270,580			7,265,180			7,385,451			7,359,377			7,480,651
Reinsurance recoverable at end of period		126,020			128,025			125,215			125,248			133,385
Gross liability at end of period	$	7,396,600		$	7,393,205		$	7,510,666		$	7,484,625		$	7,614,036
Breakdown of gross liability at end of period:
Case reserves	$	3,241,898		$	3,075,384		$	3,107,780		$	3,095,309		$	3,198,182
Additional case reserves		274,225			271,084			311,408			290,115			304,796
Incurred but not reported reserves		3,880,477			4,046,737			4,091,478			4,099,201			4,111,058
Gross liability at end of period	$	7,396,600		$	7,393,205		$	7,510,666		$	7,484,625		$	7,614,036
Breakdown of gross liability at end of period by Non-life sub-segment:
U.S.	$	2,745,499		$	2,859,266		$	2,807,091		$	2,707,225		$	2,674,545
Global (Non-U.S.) P&C		2,232,911			2,157,454			2,291,856			2,428,686			2,658,505
Global (Non-U.S.) Specialty		2,151,115			2,062,985			2,082,290			2,003,353			2,049,163
Catastrophe		267,075			313,500			329,429			345,361			231,823
Gross liability at end of period	$	7,396,600		$	7,393,205		$	7,510,666		$	7,484,625		$	7,614,036
Unrecognized time value of non-life reserves	$	882,592		$	738,705		$	732,982		$	1,046,590		$	1,184,280
Non-life paid loss ratio data:
Non-life paid losses to incurred losses ratio		160.5	%		83.0	%		65.8	%		69.9	%		90.5	%
Non-life paid losses to net premiums earned ratio		85.3	%		46.4	%		46.8	%		48.0	%		48.9	%

(1) The increase in paid losses for the three months ended June 30, 2009 compared to prior periods is primarily due to the annual statement of account settlement for our U.S. agriculture business written in 2008. The three months ended June 30, 2009 and 2008 contain $157 million and $24 million, respectively, of paid losses related to the settlement of our U.S. agriculture business.

36

PartnerRe Ltd.

Analysis of Unpaid Losses and Loss Expenses

(Expressed in thousands of U.S. dollars)

(Unaudited)

	As at and for the six months ended						As at and for the year ended
	June 30, 2009			June 30, 2008			December 31, 2008			December 31, 2007
Reconciliation of beginning and ending liability for unpaid losses and loss expenses:
Gross liability at beginning of period	$	7,510,666		$	7,231,436		$	7,231,436		$	6,870,785
Reinsurance recoverable at beginning of period		(125,215	)		(132,479	)		(132,479	)		(138,585	)
Net liability at beginning of period		7,385,451			7,098,957			7,098,957			6,732,200
Net incurred losses related to:
Current year		1,022,009			1,152,631			2,564,174			2,041,752
Prior years		(242,492	)		(247,351	)		(417,936	)		(414,043	)
		779,517			905,280			2,146,238			1,627,709
Net losses paid (1)		(936,678	)		(738,250	)		(1,580,819	)		(1,620,367	)
Effects of foreign exchange rate changes		42,290			214,664			(278,925	)		359,415
Net liability at end of period		7,270,580			7,480,651			7,385,451			7,098,957
Reinsurance recoverable at end of period		126,020			133,385			125,215			132,479
Gross liability at end of period	$	7,396,600		$	7,614,036		$	7,510,666		$	7,231,436
Breakdown of gross liability at end of period:
Case reserves	$	3,241,898		$	3,198,182		$	3,107,780		$	3,062,414
Additional case reserves		274,225			304,796			311,408			306,487
Incurred but not reported reserves		3,880,477			4,111,058			4,091,478			3,862,535
Gross liability at end of period	$	7,396,600		$	7,614,036		$	7,510,666		$	7,231,436
Breakdown of gross liability at end of period by Non-life sub-segment:
U.S.	$	2,745,499		$	2,674,545		$	2,807,091		$	2,515,820
Global (Non-U.S.) P&C		2,232,911			2,658,505			2,291,856			2,542,278
Global (Non-U.S.) Specialty		2,151,115			2,049,163			2,082,290			1,887,187
Catastrophe		267,075			231,823			329,429			286,151
Gross liability at end of period	$	7,396,600		$	7,614,036		$	7,510,666		$	7,231,436
Unrecognized time value of non-life reserves	$	882,592		$	1,184,280		$	732,982		$	1,121,912
Non-life paid loss ratio data:
Non-life paid losses to incurred losses ratio		120.2	%		81.6	%		73.7	%		99.6	%
Non-life paid losses to net premiums earned ratio		65.5	%		46.9	%		47.2	%		50.5	%

(1) The increase in paid losses for the six months ended June 30, 2009 compared to the prior year period is primarily due to the annual statement of account settlement for our U.S. agriculture business written in 2008, which was settled during the three months ended June 30, 2009. The six months ended June 30, 2009 and 2008 contain $157 million and $24 million, respectively, of paid losses related to the settlement of our U.S. agriculture business.

37

PartnerRe Ltd.

Analysis of Policy Benefits for Life and Annuity Contracts

(Expressed in thousands of U.S. dollars)

(Unaudited)

	As at and for the three months ended
	June 30, 2009			March 31, 2009			December 31, 2008			September 30, 2008			June 30, 2008
Reconciliation of beginning and ending policy benefits for life and annuity contracts:
Gross liability at beginning of period	$	1,421,420		$	1,432,015		$	1,526,275		$	1,641,389		$	1,600,447
Reinsurance recoverable at beginning of period		(22,341	)		(24,102	)		(31,968	)		(40,163	)		(44,458	)
Net liability at beginning of period		1,399,079			1,407,913			1,494,307			1,601,226			1,555,989
Net incurred losses related to:
Current year		89,391			105,736			101,945			108,506			111,785
Prior years		(4,097	)		7,249			14,411			5,012			(359	)
		85,294			112,985			116,356			113,518			111,426
Net losses paid		(77,158	)		(68,527	)		(69,260	)		(107,837	)		(68,124	)
Effects of foreign exchange rate changes		117,474			(53,292	)		(133,490	)		(112,600	)		1,935
Net liability at end of period		1,524,689			1,399,079			1,407,913			1,494,307			1,601,226
Reinsurance recoverable at end of period		22,090			22,341			24,102			31,968			40,163
Gross liability at end of period	$	1,546,779		$	1,421,420		$	1,432,015		$	1,526,275		$	1,641,389

38

PartnerRe Ltd.

Analysis of Policy Benefits for Life and Annuity Contracts

(Expressed in thousands of U.S. dollars)

(Unaudited)

	As at and for the six months ended						As at and for the year ended
	June 30, 2009			June 30, 2008			December 31, 2008			December 31, 2007
Reconciliation of beginning and ending policy benefits for life and annuity contracts:
Gross liability at beginning of period	$	1,432,015		$	1,541,687		$	1,541,687		$	1,430,691
Reinsurance recoverable at beginning of period		(24,102	)		(43,098	)		(43,098	)		(42,542	)
Net liability at beginning of period		1,407,913			1,498,589			1,498,589			1,388,149
Net incurred losses related to:
Current year		195,127			228,204			438,655			453,099
Prior years		3,152			4,904			24,327			1,653
		198,279			233,108			462,982			454,752
Net losses paid		(145,685	)		(175,341	)		(352,438	)		(430,281	)
Effects of foreign exchange rate changes		64,182			44,870			(201,220	)		85,969
Net liability at end of period		1,524,689			1,601,226			1,407,913			1,498,589
Reinsurance recoverable at end of period		22,090			40,163			24,102			43,098
Gross liability at end of period	$	1,546,779		$	1,641,389		$	1,432,015		$	1,541,687

39

PartnerRe Ltd.

Reserve Development

(Expressed in thousands of U.S. dollars)

(Unaudited)

	For the three months ended
	June 30, 2009			March 31, 2009			December 31, 2008			September 30, 2008			June 30, 2008
Prior year net favorable (adverse) reserve development:
Non-life segment:
U.S.	$	55,693		$	21,460		$	37,477		$	16,221		$	22,378
Global (Non-U.S.) P&C		35,346			51,812			15,957			40,568			51,959
Global (Non-U.S.) Specialty		30,859			24,710			(4,013	)		21,107			31,880
Catastrophe		21,011			1,601			18,659			24,609			24,450
Total Non-life net prior year reserve development	$	142,909		$	99,583		$	68,080		$	102,505		$	130,667
Non-life segment:
Net prior year reserve development due to changes in premiums	$	16,635		$	9,874		$	(23,445	)	$	(7,862	)	$	(6,440	)
Net prior year reserve development due to all other factors (2)		126,274			89,709			91,525			110,367			137,107
Total Non-life net prior year reserve development	$	142,909		$	99,583		$	68,080		$	102,505		$	130,667
Life segment:
Net prior year reserve development due to GMDB (1)	$	8,017		$	(9,817	)	$	(16,900	)	$	(5,000	)	$	(3,699	)
Net prior year reserve development due to all other factors (2)		(3,920	)		2,568			2,489			(12	)		4,058
Total Life net prior year reserve development	$	4,097		$	(7,249	)	$	(14,411	)	$	(5,012	)	$	359

	For the six months ended						For the year ended
	June 30, 2009			June 30, 2008			December 31, 2008			December 31, 2007
Prior year net favorable (adverse) reserve development:
Non-life segment:
U.S.	$	77,153		$	38,103		$	91,801		$	72,261
Global (Non-U.S.) P&C		87,158			109,509			166,034			96,976
Global (Non-U.S.) Specialty		55,569			64,745			81,839			202,130
Catastrophe		22,612			34,994			78,262			42,676
Total Non-life net prior year reserve development	$	242,492		$	247,351		$	417,936		$	414,043
Non-life segment:
Net prior year reserve development due to changes in premiums	$	26,509		$	23,848		$	(7,460	)	$	4,425
Net prior year reserve development due to all other factors (2)		215,983			223,503			425,396			409,618
Total Non-life net prior year reserve development	$	242,492		$	247,351		$	417,936		$	414,043
Life segment:
Net prior year reserve development due to GMDB (1)	$	(1,800	)	$	(11,199	)	$	(33,099	)	$	5,000
Net prior year reserve development due to all other factors (2)		(1,352	)		6,295			8,772			(6,653	)
Total Life net prior year reserve development	$	(3,152	)	$	(4,904	)	$	(24,327	)	$	(1,653	)

(1) The guaranteed minimum death benefit (“GMDB”) reserves are sensitive to volatilty in certain referenced global equity markets. At June 30, 2009, a 10% increase in the referenced global equity market would have decreased reserves by approximately $8 million, while a 10% decrease in the referenced global equity market would have increased reserves by approximately $9 million.

(2) Net prior year reserve development due to all other factors includes, but is not limited to loss experience, changes in assumptions and changes in methodology.

40

PartnerRe Ltd.

Reconciliation of GAAP and non-GAAP measures

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

(Unaudited)

	For the three months ended
	June 30, 2009			March 31, 2009			December 31, 2008			September 30, 2008			June 30, 2008
Reconciliation of GAAP and non-GAAP measures:
Annualized return on beginning common shareholders’ equity calculated with net income (loss) available to common shareholders(1)		50.6	%		14.4	%		9.1	%		(16.9	)%		(3.6	)%
Less:
Annualized net realized and unrealized investment gains (losses), net of tax, on beginning common shareholders’ equity (1)		30.4			(8.1	)		3.9			(29.6	)		(23.0	)
Annualized net realized gain on purchase of capital efficient notes, net of tax, on beginning common shareholders’ equity (1)		—			6.2			—			—			—
Interest in earnings (losses) of equity investments, net of tax, on beginning common shareholders’ equity (1)		0.7			(0.6	)		(0.5	)		(0.1	)		0.1
Annualized operating return on beginning common shareholders’ equity (1)		19.5	%		16.9	%		5.7	%		12.8	%		19.3	%
Net income (loss)	$	474,269		$	141,521		$	95,290		$	(151,719	)	$	(26,024	)
Less:
Net realized and unrealized investment gains (losses), net of tax		279,569			(74,478	)		37,637			(281,129	)		(219,063	)
Net realized gain on purchase of capital efficient notes, net of tax		—			56,955			—			—			—
Interest in earnings (losses) of equity investments, net of tax		6,779			(5,329	)		(4,909	)		(552	)		578
Dividends to preferred shareholders		8,631			8,631			8,631			8,631			8,631
Operating earnings available to common shareholders	$	179,290		$	155,742		$	53,931		$	121,331		$	183,830
Per diluted share:
Net income (loss)	$	8.10		$	2.32		$	1.53		$	(3.01	)	$	(0.64	)
Less:
Net realized and unrealized investment gains (losses), net of tax		4.86			(1.30	)		0.67			(5.27	)		(4.04	)
Net realized gain on purchase of capital efficient notes, net of tax		—			0.99			—			—			—
Interest in earnings (losses) of equity investments, net of tax		0.12			(0.09	)		(0.09	)		(0.01	)		0.01
Operating earnings	$	3.12		$	2.72		$	0.95		$	2.27		$	3.39

(1) Excluding cumulative preferred shares: 2009 and 2008, $520,000.

41

PartnerRe Ltd.

Reconciliation of GAAP and non-GAAP measures

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

(Unaudited)

	For the six months ended						For the year ended
	June 30, 2009			June 30, 2008			December 31, 2008			December 31, 2007
Reconciliation of GAAP and non-GAAP measures:
Annualized return on beginning common shareholders’ equity calculated with net income available to common shareholders(1)		32.5	%		4.5	%		0.3	%		20.9	%
Less:
Annualized net realized and unrealized investment gains (losses), net of tax, on beginning common shareholders’ equity (1) (2)		11.1			(11.1	)		(11.9	)		(1.7	)
Annualized net realized gain on purchase of capital efficient notes, net of tax, on beginning common shareholders’ equity (1)		3.1			—			—			—
Interest in earnings (losses) of equity investments, net of tax, on beginning common shareholders’ equity (1)		0.1			0.1			(0.1	)		(2.6	)
Annualized operating return on beginning common shareholders’ equity (1)		18.2	%		15.5	%		12.3	%		25.2	%
Net income	$	615,789		$	102,996		$	46,567		$	717,812
Less:
Net realized and unrealized investment gains (losses), net of tax (2)		205,090			(210,128	)		(453,621	)		(56,288	)
Net realized gain on purchase of capital efficient notes, net of tax		56,955			—			—			—
Interest in earnings (losses) of equity investments, net of tax		1,448			1,820			(3,641	)		(82,867	)
Dividends to preferred shareholders		17,263			17,263			34,525			34,525
Operating earnings available to common shareholders	$	335,033		$	294,041		$	469,304		$	822,442
Per diluted share:
Net income	$	10.43		$	1.54		$	0.22		$	11.87
Less:
Net realized and unrealized investment gains (losses), net of tax (2)		3.57			(3.77	)		(8.15	)		(0.98	)
Net realized gain on purchase of capital efficient notes, net of tax		0.99			—			—			—
Interest in earnings (losses) of equity investments, net of tax		0.03			0.03			(0.06	)		(1.44	)
Operating earnings	$	5.84		$	5.28		$	8.43		$	14.29

(1) Excluding cumulative preferred shares: 2009, 2008 and 2007, $520,000.

(2) Following the adoption of SFAS 159 on January 1, 2008, net realized and unrealized investment gains (losses) include both realized and unrealized gains (losses) on investments. Prior to the adoption of SFAS 159, net realized and unrealized investment gains (losses) included realized gains (losses) on investments and other-than-temporary impairment charges.

42

PartnerRe Ltd.

Reconciliation of GAAP and non-GAAP measures

(in thousands of U.S. dollars or shares, except per share data)

(Unaudited)

	June 30, 2009		March 31, 2009			December 31, 2008			September 30, 2008			June 30, 2008			December 31, 2007		December 31, 2006
Reconciliation of GAAP and non-GAAP measures:
Shareholders’ equity	$	4,767,678	$	4,282,067		$	4,199,108		$	4,084,686		$	4,409,242		$	4,321,557	$	3,785,847
Less:
6.75% Series C cumulative preferred shares, aggregate liquidation		290,000		290,000			290,000			290,000			290,000			290,000		290,000
6.5% Series D cumulative preferred shares, aggregate liquidation		230,000		230,000			230,000			230,000			230,000			230,000		230,000
Common shareholders’ equity		4,247,678		3,762,067			3,679,108			3,564,686			3,889,242			3,801,557		3,265,847
Less:
Net unrealized gains (losses) on fixed income securities, net of tax		79,341		(110,311	)		(35,263	)		(174,349	)		(96,837	)		71,958		(18,694	)
Book value excluding net unrealized gains or losses on fixed income securities, net of tax	$	4,168,337	$	3,872,378		$	3,714,371		$	3,739,035		$	3,986,079		$	3,729,599	$	3,284,541
Divided by:
Number of common and common share equivalents outstanding		57,514.3		57,388.2			57,533.9			54,519.3			55,388.3			55,936.4		58,248.8
Equals:
Diluted book value per common and common share equivalents outstanding excluding net unrealized gains or losses on fixed income securities, net of tax	$	72.47	$	67.48		$	64.56		$	68.58		$	71.97		$	66.68	$	56.39

43

PartnerRe Ltd.

Diluted Book Value per Common Share - Treasury Stock Method ⁽¹⁾

(in thousands of U.S. dollars or shares, except per share data)

(Unaudited)

	June 30, 2009			March 31, 2009			December 31, 2008			September 30, 2008			June 30, 2008			December 31, 2007			December 31, 2006
Total shareholders’ equity	$	4,767,678		$	4,282,067		$	4,199,108		$	4,084,686		$	4,409,242		$	4,321,557		$	3,785,847
Less: preferred shares		(520,000	)		(520,000	)		(520,000	)		(520,000	)		(520,000	)		(520,000	)		(520,000	)
Common shareholders’ equity	$	4,247,678		$	3,762,067		$	3,679,108		$	3,564,686		$	3,889,242		$	3,801,557		$	3,265,847
Basic common shares outstanding		56,655.1			56,579.1			56,453.3			53,275.9			54,004.9			54,250.5			57,076.3
Basic book value per common share	$	74.97		$	66.49		$	65.17		$	66.91		$	72.02		$	70.07		$	57.22
Diluted book value per common share
Common shareholders’ equity	$	4,247,678		$	3,762,067		$	3,679,108		$	3,564,686		$	3,889,242		$	3,801,557		$	3,265,847
Basic common shares outstanding		56,655.1			56,579.1			56,453.3			53,275.9			54,004.9			54,250.5			57,076.3
Add: Stock options and other		2,300.4			2,308.4			2,365.8			2,419.8			2,820.1			3,018.5			3,339.2
Add: Restricted stock units		731.5			741.7			751.0			751.5			748.9			680.6			397.6
Add: Forward sale contract		—			—			—			—			—			115.4			—
Less: Stock options and other bought back via treasury stock method		(2,172.7	)		(2,241.0	)		(2,036.2	)		(1,927.9	)		(2,185.6	)		(2,128.6	)		(2,564.3	)
Diluted common and common share equivalents outstanding		57,514.3			57,388.2			57,533.9			54,519.3			55,388.3			55,936.4			58,248.8
Diluted book value per common share	$	73.85		$	65.55		$	63.95		$	65.38		$	70.22		$	67.96		$	56.07

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

44

PartnerRe Ltd.

Diluted Book Value per Common Share - Rollforward

(in millions of U.S. dollars, except per share data)

(Unaudited)

	As of and for the three months ended June 30, 2009						As of and for the six months ended June 30, 2009
	Common shareholders’ equity			Diluted book value per common share			Common shareholders’ equity			Diluted book value per common share
Common shareholders’ equity / diluted book value per common share at beginning of period	$	3,762		$	65.55		$	3,679		$	63.95
Technical result		185			3.23			333			5.80
Other operating expenses		(98	)		(1.71	)		(182	)		(3.17	)
Net investment income		136			2.36			269			4.68
Other, net		(4	)		(0.08	)		(12	)		(0.21	)
Operating income tax expense		(31	)		(0.53	)		(56	)		(0.96	)
Preferred dividends		(9	)		(0.15	)		(17	)		(0.30	)
Operating earnings		179			3.12			335			5.84
Net realized and unrealized investment gains, net of tax		280			4.86			205			3.57
Net realized gain on purchase of capital efficient notes, net of tax		—			—			57			0.99
Interest in earnings of equity investments, net of tax		7			0.12			2			0.03
Net income available to common shareholders		466			8.10			599			10.43
Common share dividends		(27	)		(0.47	)		(53	)		(0.94	)
Change in currency translation adjustment		39			0.68			8			0.13
Change in net unrealized gains or losses on investments, net of tax		—			—			1			0.02
Issuance of common shares, net		9			0.06			14			0.02
Other, net		(1	)		(0.01	)		—			0.01
Impact of change in number of common and common share equivalents outstanding		n/a			(0.06	)		n/a			0.23
Common shareholders’ equity / diluted book value per common share at end of period	$	4,248		$	73.85		$	4,248		$	73.85

45

PartnerRe Ltd.

Diluted Book Value per Common Share - Rollforward

(in millions of U.S. dollars, except per share data)

(Unaudited)

	As of and for the year ended December 31, 2008						As of and for the year ended December 31, 2007
	Common shareholders’ equity			Diluted book value per common share			Common shareholders’ equity			Diluted book value per common share
Common shareholders’ equity / diluted book value per common share at beginning of period	$	3,802		$	67.96		$	3,266		$	56.07
Technical result		420			7.55			845			14.69
Other operating expenses		(365	)		(6.56	)		(327	)		(5.69	)
Net investment income		573			10.30			523			9.09
Other, net		(35	)		(0.63	)		(86	)		(1.50	)
Operating income tax expense		(89	)		(1.61	)		(98	)		(1.70	)
Preferred dividends		(35	)		(0.62	)		(35	)		(0.60	)
Operating earnings		469			8.43			822			14.29
Net realized investment losses, net of tax (1)		(453	)		(8.15	)		(56	)		(0.98	)
Interest in losses of equity investments, net of tax		(4	)		(0.06	)		(83	)		(1.44	)
Net income available to common shareholders		12			0.22			683			11.87
Common share dividends		(100	)		(1.84	)		(96	)		(1.72	)
Change in currency translation adjustment		(163	)		(2.93	)		129			2.24
Change in net unrealized gains or losses on investments, net of tax		15			0.27			38			0.66
Issuance (repurchase) of common shares, net		126			(0.42	)		(213	)		(0.98	)
Other, net		(13	)		(0.23	)		(5	)		(0.08	)
Impact of change in number of common and common share equivalents outstanding		n/a			0.92			n/a			(0.10	)
Common shareholders’ equity / diluted book value per common share at end of period	$	3,679		$	63.95		$	3,802		$	67.96

(1) Following the adoption of SFAS 159 on January 1, 2008, net realized and unrealized investment gains (losses) include both realized and unrealized gains (losses) on investments. Prior to the adoption of SFAS 159, net realized and unrealized investment gains (losses) included realized gains (losses) on investments and other-than-temporary impairment charges.

46