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Exhibit 99.2

 

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PartnerRe Ltd.

Financial Supplement

Financial Information

as at March 31, 2012

(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/A and Quarterly Reports on Form 10-Q.


PartnerRe Ltd.

Financial Supplement - March 31, 2012

Table of Contents

 

 

  

Page

 

Regulation G and Basis of Presentation

  

Consolidated Financial Statements

  

Consolidated Income Statements

  

 

1

  

Condensed Consolidated Balance Sheets

  

 

2

  

Condensed Consolidated Statements of Cash Flows

  

 

3

  

Consolidated Statements of Comprehensive Income (Loss)

  

 

4

  

Segment Information

  

For the three months ended March 31, 2012 and 2011

  

 

5-6

  

Non-life segment

  

 

7

  

North America sub-segment

  

 

8

  

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

  

 

9

  

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

  

 

10

  

Catastrophe sub-segment

  

 

11

  

Life segment

  

 

12

  

Corporate and Other

  

 

13

  

Distribution of Premiums

  

Distribution of Premiums by line of business, geography and production source

  

 

14

  

Distribution of Premiums by reinsurance type

  

 

15

  

Investments

  

Investment Portfolio

  

 

16

  

Distribution of Corporate Bonds

  

 

17

  

Distribution of Equities

  

 

18

  

Distribution of Mortgage/Asset-Backed Securities

  

 

19

  

Other Invested Assets including Private Markets and Derivative Exposures

  

 

20

  

Funds Held - Directly Managed Portfolio

  

 

21

  

Distribution of Corporate Bonds - Funds Held - Directly Managed Portfolio

  

 

22

  

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

  

 

23

  

Composition of Net Investment Income and Net Realized and Unrealized Investment Gains (Losses) on Funds Held - Directly Managed Portfolio

  

 

24

  

Loss Reserves

  

Analysis of Unpaid Losses and Loss Expenses

  

 

25

  

Analysis of Policy Benefits for Life and Annuity Contracts

  

 

26

  

Reserve Development

  

 

27

  

Natural Catastrophe Probable Maximum Losses (PMLs)

  

 

28

  

Reconciliation of GAAP and non-GAAP measures

  

 

29-30

  

Diluted Book Value per Common Share - Treasury Stock Method

  

 

31

  

Diluted Book Value per Common Share - Rollforward

  

 

32-33

  


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 (Loss) available to Common Shareholders (Operating Earnings (Loss)), Diluted Operating Earnings (Loss) per Common Share and Annualized Operating Return on Beginning Diluted Book Value per Common Share and Common Share Equivalents Outstanding (Annualized Operating ROE): The Company uses Operating Earnings (Loss), Diluted Operating Earnings (Loss) 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 (Loss) exclude the impact of net realized and unrealized gains and losses on investments, net of tax, net foreign exchange gains and losses, 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 (Loss) per Common Share using Operating Earnings (Loss) for the period divided by the weighted average number of common shares and common share equivalents outstanding. The Company calculates Annualized Operating ROE using annualized Diluted Operating Earnings (Loss) per Common Share for the period divided by the Diluted Book Value per common share and common share equivalents outstanding as of the beginning of the year. Operating Earnings (Loss) and Diluted Operating Earnings (Loss) per Common Share should not be viewed as a substitute for Net Income (Loss) or Diluted Net Income (Loss) 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 and Funds Held - Directly Managed, Net of Tax (Book Value excluding NURGL) and Diluted Book Value per Common Share and Common Share Equivalents Outstanding (Diluted Book Value per Common Share) excluding Net Unrealized Gains and Losses on Fixed Income Securities and Funds Held - Directly Managed, 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 and funds held - directly managed, 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 and funds held - directly managed, net of tax. The Company calculates Diluted Book Value excluding NURGL using Book Value excluding NURGL divided by the weighted average number of common shares 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.

Basis of Presentation

Effective January 1, 2011, the Company redefined its Operating Earnings (Loss), Diluted Operating Earnings (Loss) per Common Share and Annualized Operating ROE calculations. Following the redefinition, Operating Earnings (Loss) exclude the impact of net foreign exchange gains and losses, net of tax, in addition to net realized and unrealized gains and losses on investments, net of tax, and the interest in earnings (losses) of equity investments, net of tax, and are calculated after preferred dividends. In addition, following the redefinition, Annualized Operating ROE is calculated on a diluted per share basis. All periods presented have been recast to reflect the Company’s redefined non-GAAP measures. For a reconciliation of the previously published non-GAAP measures for the year ended December 31, 2010 to the redefined non-GAAP measures, see the Company’s financial supplement as of December 31, 2011.

The Company’s Non-life sub-segment information has been recast for all periods presented to reflect the redefined financial reporting segments, as announced by the Company on January 11, 2011. The new presentation continues to include three segments: Non-life, Life, and Corporate and Other. The Non-life segment now has four sub-segments: North America, Global (Non-U.S.) P&C, Global (Non-U.S.) Specialty, and Catastrophe. The Life segment remains unchanged. Paris Re is no longer presented as a separate Non-life sub-segment and its historical results have been recast into the Company’s other Non-life sub-segments. In addition, management responsibilities for certain lines of business and certain other treaties have been redefined, and accordingly, the historical Non-life sub-segment results have been recast to reflect these changes.


PartnerRe Ltd.

Consolidated Income Statements

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

(Unaudited)

 

 

 

For the three months ended

 

 

   

 

For the year ended

 

 

 

March 31,
2012

 

 

December 31,
2011

 

 

September 30,
2011

 

 

June 30,
2011

 

 

March 31,
2011

 

 

   

 

December 31,
2011

 

 

December 31,
2010

 

 

Revenues

 

 

 

 

 

 

 

 

 

Gross premiums written

 

$

1,567,483

  

 

$

897,962

  

 

$

1,095,326

  

 

$

1,082,205

  

 

$

1,557,561

  

 

 

 

$

4,633,054

  

 

$

4,885,266

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net premiums written

 

$

1,473,286

  

 

$

879,886

  

 

$

1,079,557

  

 

$

1,056,467

  

 

$

1,470,419

  

 

 

 

$

4,486,329

  

 

$

4,705,116

  

(Increase) decrease in unearned premiums

 

 

(483,456

 

 

301,515

  

 

 

214,762

  

 

 

50,978

  

 

 

(405,830

 

 

 

 

161,425

  

 

 

71,355

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net premiums earned

 

 

989,830

  

 

 

1,181,401

  

 

 

1,294,319

  

 

 

1,107,445

  

 

 

1,064,589

  

 

 

 

 

4,647,754

  

 

 

4,776,471

  

Net investment income

 

 

146,896

  

 

 

155,540

  

 

 

163,647

  

 

 

158,328

  

 

 

151,633

  

 

 

 

 

629,148

  

 

 

672,782

  

Net realized and unrealized investment gains (losses)

 

 

192,735

  

 

 

74,553

  

 

 

26,139

  

 

 

78,199

  

 

 

(112,199

 

 

 

 

66,692

  

 

 

401,482

  

Other income

 

 

2,746

  

 

 

3,072

  

 

 

1,434

  

 

 

1,596

  

 

 

1,813

  

 

 

 

 

7,915

  

 

 

10,470

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

 

1,332,207

  

 

 

1,414,566

  

 

 

1,485,539

  

 

 

1,345,568

  

 

 

1,105,836

  

 

 

 

 

5,351,509

  

 

 

5,861,205

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

Losses and loss expenses and life policy benefits

 

 

576,486

  

 

 

1,069,204

  

 

 

881,626

  

 

 

814,523

  

 

 

1,607,217

  

 

 

 

 

4,372,570

  

 

 

3,283,618

  

Acquisition costs

 

 

211,608

  

 

 

238,772

  

 

 

262,489

  

 

 

229,251

  

 

 

207,849

  

 

 

 

 

938,361

  

 

 

972,537

  

Other operating expenses

 

 

98,174

  

 

 

113,033

  

 

 

103,822

  

 

 

113,694

  

 

 

104,297

  

 

 

 

 

434,846

  

 

 

539,751

  

Interest expense

 

 

12,220

  

 

 

12,219

  

 

 

12,216

  

 

 

12,214

  

 

 

12,300

  

 

 

 

 

48,949

  

 

 

44,413

  

Amortization of intangible assets

 

 

8,893

  

 

 

8,893

  

 

 

9,520

  

 

 

9,165

  

 

 

8,827

  

 

 

 

 

36,405

  

 

 

31,461

  

Net foreign exchange losses (gains)

 

 

2,589

  

 

 

(14,655

 

 

(10,587

 

 

(8,737

 

 

(695

 

 

 

 

(34,675

 

 

20,686

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses

 

 

909,970

  

 

 

1,427,466

  

 

 

1,259,086

  

 

 

1,170,110

  

 

 

1,939,795

  

 

 

 

 

5,796,456

  

 

 

4,892,466

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before taxes and interest in earnings (losses) of equity investments

 

 

422,237

  

 

 

(12,900

 

 

226,453

  

 

 

175,458

  

 

 

(833,959

 

 

 

 

(444,947

 

 

968,739

  

Income tax expense (benefit)

 

 

67,174

  

 

 

3,341

  

 

 

41,803

  

 

 

50,085

  

 

 

(26,258

 

 

 

 

68,972

  

 

 

128,784

  

Interest in earnings (losses) of equity investments

 

 

5,078

  

 

 

(1,402

 

 

(4,527

 

 

(1,188

 

 

745

  

 

 

 

 

(6,372

 

 

12,597

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

360,141

  

 

$

(17,643

 

$

180,123

  

 

$

124,185

  

 

$

(806,956

 

 

 

$

(520,291

 

$

852,552

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred dividends

 

$

15,405

  

 

$

15,405

  

 

$

14,352

  

 

$

8,631

  

 

$

8,631

  

 

 

 

$

47,020

  

 

$

34,525

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings (loss) available to common shareholders

 

$

181,695

  

 

$

(137,688

 

$

164,498

  

 

$

67,153

  

 

$

(735,572

 

 

 

$

(641,609

 

$

491,807

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income (loss), net of tax

 

$

376,237

  

 

$

(22,420

 

$

126,271

  

 

$

128,568

  

 

$

(769,410

 

 

 

$

(536,991

 

$

771,681

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data:

 

 

 

 

 

 

 

 

 

Earnings (loss) per common share:

 

 

 

 

 

 

 

 

 

Basic operating earnings (loss)

 

$

2.78

  

 

$

(2.06

 

$

2.43

  

 

$

0.99

  

 

$

(10.82

 

 

 

$

(9.50

 

$

6.40

  

Net realized and unrealized investment gains (losses), net of tax

 

 

2.43

  

 

 

0.85

  

 

 

0.09

  

 

 

0.61

  

 

 

(1.30

 

 

 

 

0.23

  

 

 

3.92

  

Net foreign exchange (losses) gains, net of tax

 

 

(0.02

 

 

0.75

  

 

 

—  

  

 

 

0.13

  

 

 

0.11

  

 

 

 

 

0.98

  

 

 

0.17

  

Interest in earnings (losses) of equity investments, net of tax

 

 

0.08

  

 

 

(0.03

 

 

(0.07

 

 

(0.02

 

 

0.02

  

 

 

 

 

(0.11

 

 

0.16

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income (loss)

 

$

5.27

  

 

$

(0.49

 

$

2.45

  

 

$

1.71

  

 

$

(11.99

 

 

 

$

(8.40

 

$

10.65

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding

 

 

65,404.2

  

 

 

66,877.1

  

 

 

67,743.3

  

 

 

67,628.1

  

 

 

67,997.4

  

 

 

 

 

67,558.7

  

 

 

76,839.5

  

 

Diluted operating earnings (loss)

 

$

2.76

  

 

$

(2.06

 

$

2.41

  

 

$

0.98

  

 

$

(10.82

 

 

 

$

(9.50

 

$

6.29

  

Net realized and unrealized investment gains (losses), net of tax

 

 

2.42

  

 

 

0.85

  

 

 

0.09

  

 

 

0.60

  

 

 

(1.30

 

 

 

 

0.23

  

 

 

3.86

  

Net foreign exchange (losses) gains, net of tax

 

 

(0.02

 

 

0.75

  

 

 

—  

  

 

 

0.13

  

 

 

0.11

  

 

 

 

 

0.98

  

 

 

0.16

  

Interest in earnings (losses) of equity investments, net of tax

 

 

0.08

  

 

 

(0.03

 

 

(0.07

 

 

(0.02

 

 

0.02

  

 

 

 

 

(0.11

 

 

0.15

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income (loss)

 

$

5.24

  

 

$

(0.49

 

$

2.43

  

 

$

1.69

  

 

$

(11.99

 

 

 

$

(8.40

 

$

10.46

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares and common share equivalents outstanding

 

 

65,842.8

  

 

 

66,877.1

  

 

 

68,182.0

  

 

 

68,442.3

  

 

 

67,997.4

  

 

 

 

 

67,558.7

  

 

 

78,234.3

  

 

Dividends declared per common share

 

$

0.62

  

 

$

0.60

  

 

$

0.60

  

 

$

0.60

  

 

$

0.55

  

 

 

 

$

2.35

  

 

$

2.05

  

 

1


PartnerRe Ltd.

Condensed Consolidated Balance Sheets

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

(Unaudited)

 

 

 

March 31,
2012

 

 

 

 

 

December 31,
2011

 

 

 

 

 

September 30,
2011

 

 

 

 

 

June 30,
2011

 

 

 

 

 

March 31,
2011

 

 

 

 

 

   

 

December 31,
2010

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total investments

 

$

15,754,854

  

 

 

$

15,287,245

  

 

 

$

15,789,856

  

 

 

$

15,955,923

  

 

 

$

14,684,553

  

 

 

 

 

$

14,297,867

  

 

Funds held - directly managed

 

 

1,264,383

  

 

 

 

1,268,010

  

 

 

 

1,322,761

  

 

 

 

1,379,513

  

 

 

 

1,514,453

  

 

 

 

 

 

1,772,118

  

 

Cash and cash equivalents

 

 

1,210,229

  

 

 

 

1,342,257

  

 

 

 

1,073,432

  

 

 

 

1,606,842

  

 

 

 

2,009,737

  

 

 

 

 

 

2,111,084

  

 

Accrued investment income

 

 

181,898

  

 

 

 

189,074

  

 

 

 

198,503

  

 

 

 

181,806

  

 

 

 

187,718

  

 

 

 

 

 

201,928

  

 

Reinsurance balances receivable

 

 

2,571,038

  

 

 

 

2,059,976

  

 

 

 

2,313,538

  

 

 

 

2,517,586

  

 

 

 

2,515,845

  

 

 

 

 

 

2,076,884

  

 

Reinsurance recoverable on paid and unpaid losses

 

 

432,059

  

 

 

 

397,788

  

 

 

 

447,015

  

 

 

 

489,415

  

 

 

 

456,352

  

 

 

 

 

 

382,878

  

 

Funds held by reinsured companies

 

 

799,988

  

 

 

 

796,290

  

 

 

 

814,950

  

 

 

 

846,466

  

 

 

 

848,182

  

 

 

 

 

 

937,032

  

 

Deferred acquisition costs

 

 

636,537

  

 

 

 

547,202

  

 

 

 

602,275

  

 

 

 

661,564

  

 

 

 

671,417

  

 

 

 

 

 

595,557

  

 

Goodwill

 

 

455,533

  

 

 

 

455,533

  

 

 

 

455,533

  

 

 

 

455,533

  

 

 

 

455,533

  

 

 

 

 

 

455,533

  

 

Intangible assets

 

 

124,974

  

 

 

 

133,867

  

 

 

 

142,760

  

 

 

 

154,194

  

 

 

 

166,187

  

 

 

 

 

 

178,715

  

 

Other assets

 

 

364,163

  

 

 

 

378,131

  

 

 

 

458,490

  

 

 

 

351,080

  

 

 

 

392,798

  

 

 

 

 

 

354,775

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

23,795,656

  

 

 

$

22,855,373

  

 

 

$

23,619,113

  

 

 

$

24,599,922

  

 

 

$

23,902,775

  

 

 

 

 

$

23,364,371

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unpaid losses and loss expenses

 

$

11,143,354

  

 

 

$

11,273,091

  

 

 

$

11,352,599

  

 

 

$

12,016,271

  

 

 

$

11,887,316

  

 

 

 

 

$

10,666,604

  

 

Policy benefits for life and annuity contracts

 

 

1,707,982

  

 

 

 

1,645,662

  

 

 

 

1,678,201

  

 

 

 

1,726,180

  

 

 

 

1,670,768

  

 

 

 

 

 

1,750,410

  

 

Unearned premiums

 

 

2,017,177

  

 

 

 

1,448,841

  

 

 

 

1,787,351

  

 

 

 

2,067,996

  

 

 

 

2,102,053

  

 

 

 

 

 

1,599,139

  

 

Other reinsurance balances payable

 

 

522,701

  

 

 

 

443,873

  

 

 

 

493,926

  

 

 

 

554,386

  

 

 

 

505,198

  

 

 

 

 

 

491,194

  

 

Debt obligations

 

 

820,989

  

 

 

 

820,989

  

 

 

 

820,989

  

 

 

 

820,989

  

 

 

 

820,989

  

 

 

 

 

 

820,989

  

 

Other liabilities

 

 

796,582

  

 

 

 

755,375

  

 

 

 

778,364

  

 

 

 

782,056

  

 

 

 

741,618

  

 

 

 

 

 

829,116

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

17,008,785

  

 

 

 

16,387,831

  

 

 

 

16,911,430

  

 

 

 

17,967,878

  

 

 

 

17,727,942

  

 

 

 

 

 

16,157,452

  

 

 

Total shareholders’ equity

 

 

6,786,871

  

 

 

 

6,467,542

  

 

 

 

6,707,683

  

 

 

 

6,632,044

  

 

 

 

6,174,833

  

 

 

 

 

 

7,206,919

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

23,795,656

  

 

 

$

22,855,373

  

 

 

$

23,619,113

  

 

 

$

24,599,922

  

 

 

$

23,902,775

  

 

 

 

 

$

23,364,371

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ Equity Per Common Share (excluding preferred shares)

 

$

90.23

  

 

 

$

85.33

  

 

 

$

85.82

  

 

 

$

84.71

  

 

 

$

83.85

  

 

 

 

 

$

95.55

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Book Value Per Common Share and Common Share Equivalents Outstanding (assuming exercise of all share-based awards)

 

$

89.63

  

 

 

$

84.82

  

 

 

$

85.26

  

 

 

$

83.71

  

 

 

$

82.50

  

 

 

 

 

$

93.77

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Common Shares and Common Share Equivalents Outstanding

 

 

65,751.6

  

 

 

 

65,715.7

  

 

 

 

68,188.1

  

 

 

 

68,552.0

  

 

 

 

68,542.4

  

 

 

 

 

 

71,312.3

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Structure:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Senior notes (1)

 

$

750,000

  

 

 

10

 

$

750,000

  

 

 

10

 

$

750,000

  

 

 

10

 

$

750,000

  

 

 

10

 

$

750,000

  

 

 

11

 

 

 

$

750,000

  

 

 

9

Capital efficient notes (2)

 

 

63,384

  

 

 

1

  

 

 

63,384

  

 

 

1

  

 

 

63,384

  

 

 

1

  

 

 

63,384

  

 

 

1

  

 

 

63,384

  

 

 

1

  

 

 

 

 

63,384

  

 

 

1

  

Preferred shares, aggregate liquidation value

 

 

893,750

  

 

 

12

  

 

 

893,750

  

 

 

12

  

 

 

893,750

  

 

 

12

  

 

 

893,750

  

 

 

12

  

 

 

520,000

  

 

 

7

  

 

 

 

 

520,000

  

 

 

7

  

Common shareholders’ equity

 

 

5,893,121

  

 

 

77

  

 

 

5,573,792

  

 

 

77

  

 

 

5,813,933

  

 

 

77

  

 

 

5,738,294

  

 

 

77

  

 

 

5,654,833

  

 

 

81

  

 

 

 

 

6,686,919

  

 

 

83

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Capital

 

$

7,600,255

  

 

 

100

 

$

7,280,926

  

 

 

100

 

$

7,521,067

  

 

 

100

 

$

7,445,428

  

 

 

100

 

$

6,988,217

  

 

 

100

 

 

 

$

8,020,303

  

 

 

100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

PartnerRe Finance A LLC and PartnerRe Finance B LLC, the issuers of the senior notes, do not meet U.S. GAAP consolidation requirements. Accordingly, the Company shows the related intercompany debt of $250.0 million and $500.0 million, respectively, on its Condensed Consolidated Balance Sheets.

 

(2)

PartnerRe Finance II, the issuer of the capital efficient notes, does not meet U.S. GAAP consolidation requirements. Accordingly, the Company shows the related intercompany debt of $71.0 million on its Condensed Consolidated Balance Sheets.

 

2


PartnerRe Ltd.

Condensed Consolidated Statements of Cash Flows

(Expressed in millions of U.S. dollars)

(Unaudited)

 

 

  

 

 

 

For the three months ended

 

 

 

 

 

   

  

For the year ended

 

 

  

March 31,
2012

 

 

December 31,
2011

 

 

September 30,
2011

 

 

June 30,
2011

 

 

March 31,
2011

 

 

   

  

December 31,
2011

 

 

December 31,
2010

 

 

Net cash provided by (used in) operating activities:

  

 

 

 

 

 

 

  

 

 

Underwriting operations (1)

  

$

(68

 

$

(140

 

$

(314

 

$

84

  

 

$

340

  

 

 

  

$

(29

 

$

650

  

 

Investment income

  

 

188

  

 

 

189

  

 

 

167

  

 

 

186

  

 

 

189

  

 

 

  

 

731

  

 

 

762

  

 

Taxes and foreign exchange

  

 

(41

 

 

(59

 

 

(12

 

 

(14

 

 

(43

 

 

  

 

(128

 

 

(185

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

  

$

79

  

 

$

(10

 

$

(159

 

$

256

  

 

$

486

  

 

 

  

$

574

  

 

$

1,227

  

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

  

$

79

  

 

$

(10

 

$

(159

 

$

256

  

 

$

486

  

 

 

  

$

574

  

 

$

1,227

  

 

Net cash (used in) provided by investing activities

  

 

(168

 

 

519

  

 

 

(292

 

 

(987

 

 

(320

 

 

  

 

(1,080

 

 

1,102

  

 

Net cash (used in) provided by financing activities

  

 

(50

 

 

(223

 

 

(55

 

 

322

  

 

 

(286

 

 

  

 

(242

 

 

(922

 

Effect of foreign exchange rate changes on cash

  

 

7

  

 

 

(17

 

 

(28

 

 

6

  

 

 

19

  

 

 

  

 

(21

 

 

(34

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

(Decrease) increase in cash and cash equivalents

  

 

(132

 

 

269

  

 

 

(534

 

 

(403

 

 

(101

 

 

  

 

(769

 

 

1,373

  

 

Cash and cash equivalents - beginning of period

  

 

1,342

  

 

 

1,073

  

 

 

1,607

  

 

 

2,010

  

 

 

2,111

  

 

 

  

 

2,111

  

 

 

738

  

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

Cash and cash equivalents - end of period

  

$

1,210

  

 

$

1,342

  

 

$

1,073

  

 

$

1,607

  

 

$

2,010

  

 

 

  

$

1,342

  

 

$

2,111

  

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

(1)

For the three months ended March 31, 2011, the three months ended June 30, 2011, the three months ended September 30, 2011 and the year ended December 31, 2011, net cash provided by underwriting operations includes approximately $295 million, $5 million, $58 million and $358 million, respectively, of cash related to the release of assets from the Funds Held - Directly Managed Portfolio.

 

3


PartnerRe Ltd.

Consolidated Statements of Comprehensive Income (Loss)

(Expressed in thousands of U.S. dollars)

(Unaudited)

 

 

  

 

 

 

For the three months ended

 

 

 

 

 

  

March 31,
2012

 

 

December 31,
2011

 

 

September 30,
2011

 

 

June 30,
2011

 

 

March 31,
2011

 

Net income (loss)

  

$

360,141

  

 

$

(17,643

 

$

180,123

  

 

$

124,185

  

 

$

(806,956

Change in currency translation adjustment

  

 

17,207

  

 

 

(960

 

 

(54,958

 

 

6,303

  

 

 

37,781

  

Change in net unrealized gains or losses on investments, net of tax

  

 

(242

 

 

(204

 

 

(244

 

 

(249

 

 

(252

Change in unfunded pension obligation, net of tax

  

 

(869

 

 

(3,613

 

 

1,350

  

 

 

(1,671

 

 

17

  

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income (loss)

  

$

376,237

  

 

$

(22,420

 

$

126,271

  

 

$

128,568

  

 

$

(769,410

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

For the year ended

 

 

  

December 31,
2011

 

 

December 31,
2010

 

Net (loss) income

  

$

(520,291

 

$

852,552

  

Change in currency translation adjustment

  

 

(11,834

 

 

(66,742

Change in net unrealized gains or losses on investments, net of tax

  

 

(949

 

 

(4,908

Change in unfunded pension obligation, net of tax

  

 

(3,917

 

 

(9,221

  

 

 

 

 

 

 

 

Comprehensive (loss) income

  

$

(536,991

 

$

771,681

  

  

 

 

 

 

 

 

 

 

4


PartnerRe Ltd.

Segment Information

(Expressed in millions of U.S. dollars)

(Unaudited)

 

 

  

 

 

 

For the three months ended March 31, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

North
America

 

 

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

  

$

341

  

 

$

347

  

 

$

417

  

 

$

242

  

 

$

1,347

  

 

$

217

  

 

$

3

  

 

$

1,567

  

Net premiums written

  

$

341

  

 

$

346

  

 

$

353

  

 

$

215

  

 

$

1,255

  

 

$

215

  

 

$

3

  

 

$

1,473

  

Increase in unearned premiums

  

 

(103

 

 

(187

 

 

(45

 

 

(125

 

 

(460

 

 

(21

 

 

(2

 

 

(483

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net premiums earned

  

$

238

  

 

$

159

  

 

$

308

  

 

$

90

  

 

$

795

  

 

$

194

  

 

$

1

  

 

$

990

  

Losses and loss expenses and life policy benefits

  

 

(133

 

 

(98

 

 

(194

 

 

(2

 

 

(427

 

 

(149

 

 

—  

  

 

 

(576

Acquisition costs

  

 

(66

 

 

(38

 

 

(70

 

 

(9

 

 

(183

 

 

(29

 

 

—  

  

 

 

(212

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Technical result

  

$

39

  

 

$

23

  

 

$

44

  

 

$

79

  

 

$

185

  

 

$

16

  

 

$

1

  

 

$

202

  

Other income

  

 

 

 

 

 

1

  

 

 

—  

  

 

 

1

  

 

 

2

  

Other operating expenses

  

 

 

 

 

 

(63

 

 

(12

 

 

(23

 

 

(98

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Underwriting result

  

 

 

 

 

$

123

  

 

$

4

  

 

 

n/a

  

 

$

106

  

Net investment income

  

 

 

 

 

 

 

17

  

 

 

130

  

 

 

147

  

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated underwriting result (1)

  

 

 

 

 

 

$

21

  

 

 

n/a

  

 

 

n/a

  

Net realized and unrealized investment gains

  

 

 

 

 

 

 

 

193

  

 

 

193

  

Interest expense

  

 

 

 

 

 

 

 

(12

 

 

(12

Amortization of intangible assets

  

 

 

 

 

 

 

 

(9

 

 

(9

Net foreign exchange losses

  

 

 

 

 

 

 

 

(3

 

 

(3

Income tax expense

  

 

 

 

 

 

 

 

(67

 

 

(67

Interest in earnings of equity investments

  

 

 

 

 

 

 

 

5

  

 

 

5