EX-12.1

EX-12.1 8 d879066dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

Partner Re Statement Re: Computation of Ratios

Computation of Ratio of Earnings to Fixed Charges

For purposes of computing the following ratios, earnings consist of net income or loss before income tax expense plus fixed charges to the extent that these charges are included in the determination of net income or loss and exclude undistributed earnings or losses of equity method investments. Fixed charges consist of interest costs plus one-third of minimum rental payments under operating leases (estimated by management to be the interest factor of such rentals).


In thousands of U.S. dollars except ratios	For the year ended December 31,
	2014		2013		2012		2011			2010
Earnings - excluding undistributed equity method investments	$	1,052,843	$	659,777	$	1,124,560	$	(513,919	)	$	839,955
Add:
Income taxes		239,506		48,416		204,284		68,972			128,784
Fixed charges:
Interest expense, net of applicable taxes		48,963		48,929		48,895		48,949			44,413
Interest credited to life policyholders ⁽¹⁾		5,197		7,970		8,378		11,030			8,665
Interest credited to retrocessionnaires on funds held on reinsurance treaties		237		867		304		108			962
One third of rental payments		11,140		13,263		11,881		12,216			11,636
Earnings (Loss) before income taxes and fixed charges	$	1,357,886	$	779,222	$	1,398,302	$	(372,644	)	$	1,034,415

Fixed charges:
Interest expense, net of applicable taxes	$	48,963		48,929		48,895	$	48,949		$	44,413
Interest credited to life policyholders ⁽¹⁾		5,197		7,970		8,378		11,030			8,665
Interest credited to retrocessionnaires on funds held on reinsurance treaties		237		867		304		108			962
One third of rental payments		11,140		13,263		11,881		12,216			11,636
Total fixed charges	$	65,537	$	71,029	$	69,458	$	72,303		$	65,676
Preference share dividends ⁽²⁾		56,735		57,861		61,622		47,020			34,525
Total fixed charges and preference share dividends	$	122,272	$	128,890	$	131,080	$	119,323		$	100,201

Ratio of earnings to fixed charges		20.72x		10.97x		20.13x		NM	⁽³⁾		15.75x

Deficiency of earnings to fixed charges ⁽⁴⁾		N/A		N/A		N/A	$	444,947			N/A

Ratio of earnings to combined fixed charges and preference share dividends		11.11x		6.05x		10.67x		NM	⁽³⁾		10.32x

Deficiency of earnings to combined fixed charges and preference share dividends ⁽⁴⁾		N/A		N/A		N/A	$	491,967			N/A

(1)	Represents interest credited to policyholders on certain life reinsurance treaties for which PartnerRe earns compensating interest income.

(2)	Dividends have not been tax effected because they are presumed to be paid out of a Bermuda entity whose tax rate is zero.

(3)

NM: Not meaningful. The ratio for the year ended December 31, 2011 above is not meaningful due to the net loss reported for this period which was impacted by large catastrophic losses, including the Japan earthquake and resulting tsunami, the February and June New Zealand earthquakes, the floods in Thailand, the U.S. tornadoes, the floods in Queensland, Australia and aggregate contracts covering losses in Australia and New Zealand. Further information regarding the impact of these catastrophic losses on our financial results can be found in the documents incorporated by reference in the registration statement with which this exhibit is filed.

(4)	Represents additional earnings that would be necessary to result in a one-to-one ratio.