---

---

---

---

---

---

---

---

•	Unpaid losses and loss expenses;

•	Policy benefits for life and annuity contracts;

•	Gross and net premiums written and net premiums earned;

•	Recoverability of deferred acquisition costs;

•	Recoverability of deferred tax assets;

•	Valuation of goodwill and intangible assets; and

•	Valuation of certain assets and derivative financial instruments that are measured using significant unobservable inputs.

---

•	Level 1 inputs—Unadjusted, quoted prices in active markets for identical assets or liabilities that the Company has the ability to access.

•	Level 2 inputs—Quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in inactive markets and significant directly or indirectly observable inputs, other than quoted prices, used in industry accepted models.

•	Level 3 inputs—Unobservable inputs.

---

---

---

(1)	There were no issuances for the three months ended September 30, 2015.

(2)	Settlements and sales of mutual funds and exchange traded funds and private equities include sales of $2.2 million and $0.2 million, respectively.

---

(1)	There were no issuances or sales for the three months ended September 30, 2014.

---

(1)	There were no issuances for the nine months ended September 30, 2015.

(2)	Settlements and sales of mutual funds and exchange traded funds and private equities include sales of $2.2 million and $0.2 million, respectively.

---

---

---

---

•

U.S. government and government sponsored enterprises—U.S. government and government sponsored enterprises securities consist primarily of bonds issued by the U.S. Treasury and corporate debt securities issued by government sponsored enterprises and federally owned or established corporations. These securities are generally priced by independent pricing services. The independent pricing services may use actual transaction prices for securities that have been actively traded. For securities that have not been actively traded, each pricing source has its own proprietary method to determine the fair value, which may incorporate option adjusted spreads (OAS), interest rate data and market news. The Company generally classifies these securities in Level 2.

•

U.S. states, territories and municipalities—U.S. states, territories and municipalities securities consist primarily of bonds issued by U.S. states, territories and municipalities and the Federal Home Loan Mortgage Corporation. These securities are generally priced by independent pricing services using the techniques described for U.S. government and government sponsored enterprises above. The Company generally classifies these securities in Level 2. Certain of the bonds that are issued by municipal housing authorities and the Federal Home Loan Mortgage Corporation are not actively traded and are priced based on internal models using unobservable inputs. Accordingly, the Company classifies these securities in Level 3. The significant unobservable input used in the fair value measurement of these U.S. states, territories and municipalities securities classified as Level 3 is credit spreads. A significant increase (decrease) in credit spreads in isolation could result in a significantly lower (higher) fair value measurement.

•

Non-U.S. sovereign government, supranational and government related—Non-U.S. sovereign government, supranational and government related securities consist primarily of bonds issued by non-U.S. national governments and their agencies, non-U.S. regional governments and supranational organizations. These securities are generally priced by independent pricing services using the techniques described for U.S. government and government sponsored enterprises above. The Company generally classifies these securities in Level 2.

•

Corporate—Corporate securities consist primarily of bonds issued by U.S. and foreign corporations covering a variety of industries and issuing countries. These securities are generally priced by independent pricing services and brokers. The pricing provider incorporates information including credit spreads, interest rate data and market news into the valuation of each security. The Company generally classifies these securities in Level 2. When a corporate security is inactively traded or the valuation model uses unobservable inputs, the Company classifies the security in Level 3.

•

Asset-backed securities—Asset-backed securities primarily consist of bonds issued by U.S. and foreign corporations that are predominantly backed by student loans, automobile loans, credit card receivables, equipment leases, and special purpose financing. With the exception of special purpose financing, these asset-backed securities are generally priced by independent pricing services and brokers. The pricing provider applies dealer quotes and other available trade information, prepayment speeds, yield curves and credit spreads to the valuation. The Company generally classifies these securities in Level 2. Special purpose financing securities are generally inactively traded and are priced based on valuation models using unobservable inputs. The Company generally classifies these securities in Level 3. The significant unobservable input used in the fair value measurement of these asset-backed securities classified as Level 3 is credit spreads. A significant increase (decrease) in credit spreads in isolation could result in a significantly lower (higher) fair value measurement.

---

•

Residential mortgage-backed securities—Residential mortgage-backed securities primarily consist of bonds issued by the Government National Mortgage Association, the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, as well as private, non-agency issuers. These residential mortgage-backed securities are generally priced by independent pricing services and brokers. When current market trades are not available, the pricing provider or the Company will employ proprietary models with observable inputs including other trade information, prepayment speeds, yield curves and credit spreads. The Company generally classifies these securities in Level 2.

•

Other mortgage-backed securities—Other mortgage-backed securities primarily consist of commercial mortgage-backed securities. These securities are generally priced by independent pricing services and brokers. The pricing provider applies dealer quotes and other available trade information, prepayment speeds, yield curves and credit spreads to the valuation. The Company generally classifies these securities in Level 2.

---

•	the fair value of the Senior Notes was calculated based on discounted cash flow models using observable market yields and contractual cash flows based on the aggregate principal amount outstanding of $250 million from PartnerRe Finance A LLC and $500 million from PartnerRe Finance B LLC at September 30, 2015 and December 31, 2014; and

---

•	the fair value of the CENts was calculated based on discounted cash flow models using observable market yields and contractual cash flows based on the aggregate principal amount outstanding of $63 million from PartnerRe Finance II Inc. at September 30, 2015 and December 31, 2014.

(1)	PartnerRe Finance A LLC and PartnerRe Finance B LLC, the issuers of the Senior Notes, do not meet consolidation requirements under U.S. GAAP. Accordingly, the Company shows the related intercompany debt of $750 million in its Condensed Consolidated Balance Sheets at September 30, 2015 and December 31, 2014.

(2)	PartnerRe Finance II Inc., the issuer of the CENts, does not meet consolidation requirements under U.S. GAAP. Accordingly, the Company shows the related intercompany debt of $71 million in its Condensed Consolidated Balance Sheets at September 30, 2015 and December 31, 2014.

---

(1)	At September 30, 2015 and December 31, 2014, insurance-linked securities include a longevity swap for which the notional amount is not reflective of the overall potential exposure of the swap. As such, the Company has included the probable maximum loss under the swap within the net notional exposure as an approximation of the notional amount.

(2)	The Company enters into interest rate swaps to mitigate notional exposures on certain total return swaps and certain fixed maturities. Only the notional value of interest rate swaps on fixed maturities is presented separately in the table.

---

(1)	Amounts include all derivative instruments, irrespective of whether there is a legally enforceable master netting arrangement in place.

---

(1)

Where the exercise price of share based awards is greater than the average market price of the common shares, the common shares are considered anti-dilutive and are excluded from the calculation of weighted average number of common shares and common share equivalents outstanding - diluted. In addition, for the three months and nine months ended September 30, 2015, dilutive securities, in the form of share options and other, were not included in the weighted average number of common shares and common share equivalents outstanding for the purpose of computing the diluted net loss per share because to do so would have been anti-dilutive.

---

---

(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 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 expense ratio is obtained by dividing other expenses by net premiums earned.

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

---

---

---

---

---

---

---

•	an increase in other expenses of $308 million, which was primarily related to the AXIS termination fee, as described in Other expenses above; and

•	an increase in pre-tax net realized and unrealized investment losses of $99 million, as described in Volatility in Capital Markets above.

---

•	an increase in pre-tax net realized and unrealized investment losses of $546 million, as described in Volatility in Capital Markets above;

•	an increase in other expenses of $343 million, which was primarily related to the AXIS termination fee, Transaction Costs and costs related to the Presidio Earn-out Agreement, as described in Other Expenses above;

•	an increase in net foreign exchange losses of $27 million, primarily due to the impact of the strengthening of the U.S. dollar on certain unhedged non-U.S. denominated investment portfolios; and

•	a decrease in net investment income of $23 million, mainly due to the strengthening of the U.S. dollar against most major currencies and lower reinvestment rates; partially offset by

•	a decrease in income tax expense of $103 million, which was primarily related to the increase in net realized and unrealized investment losses.

---

(1)

Diluted tangible book value per common share and common share equivalents outstanding (Diluted Tangible Book Value per Share) is calculated using common shareholders’ equity attributable to PartnerRe Ltd. (total shareholders’ equity less noncontrolling interests and the aggregate liquidation value of preferred shares) less goodwill and intangible assets, net of tax, divided by the number of common shares and common share equivalents outstanding (assuming exercise of all stock-based awards and other dilutive securities). The presentation of Diluted Tangible Book Value per Share is a non-GAAP financial measure within the meaning of Regulation G (see Comment on Non-GAAP Measures below) and is reconciled to the most directly comparable GAAP financial measure below.

(2)

Annualized growth in diluted tangible book value per common share and common share equivalents outstanding plus dividends (annualized growth in Diluted Tangible Book Value per Share plus dividends) is calculated using Diluted Tangible Book Value per Share plus dividends per common share divided by Diluted Tangible Book Value per Share at the beginning of the year and annualizing. The presentation of annualized growth in Diluted Tangible Book Value per Share plus dividends is a non-GAAP financial measure within the meaning of Regulation G (see Comment on Non-GAAP Measures below) and is reconciled to the most directly comparable GAAP financial measure below.

(3)

Operating earnings or loss attributable to PartnerRe Ltd. common shareholders (operating earnings or loss) is calculated as net income or loss attributable to PartnerRe Ltd. common shareholders excluding net realized and unrealized gains or losses on investments, net of tax (except where the Company has made a strategic investment in an insurance or reinsurance related investee), net foreign exchange gains or losses, net of tax, loss on redemption of preferred shares, the interest in earnings or losses of equity method investments, net of tax (except where the Company has made a strategic investment in an insurance or reinsurance related investee and where the Company does not control the investee’s activities), certain withholding taxes on inter-company dividends (included in Other expenses) and the amalgamation termination fee and reimbursement of expenses paid to AXIS (included in Other expenses) and is calculated after preferred dividends. Operating earnings or loss per common share and common share equivalent outstanding (diluted operating earnings or loss per share) are calculated using operating earnings or loss for the period divided by the weighted average number of common shares and common share equivalents outstanding. The presentation of operating earnings or loss and diluted operating earnings or loss per share are non-GAAP financial measures within the meaning of Regulation G (see Comment on Non-GAAP Measures below) and are reconciled to the most directly comparable GAAP financial measure below.

(4)

Annualized operating return on beginning diluted book value per common share and common share equivalents outstanding (Operating ROE) is calculated using annualized operating earnings or loss, as defined above, per diluted common share and common share equivalents outstanding, divided by diluted book value per common share and common share equivalents outstanding as of the beginning of the year, as defined above. The presentation of Operating ROE is a non-GAAP financial measure within the meaning of Regulation G (see Comment on Non-GAAP Measures below) and is reconciled to the most directly comparable GAAP financial measure below.

(5)	The combined ratio of the Non-life segment is calculated as the sum of the technical ratio (losses and loss expenses and acquisition costs divided by net premiums earned) and the other expense ratio (other expenses divided by net premiums earned).

---

(1)

Diluted book value per common share and common share equivalents outstanding (Diluted Book Value per Share) is calculated using common shareholders’ equity attributable to PartnerRe Ltd. (total shareholders’ equity less noncontrolling interests and the aggregate liquidation value of preferred shares) divided by the number of common shares and common share equivalents outstanding (assuming exercise of all stock-based awards and other dilutive securities).

---

---

---

---

---

(1)	The excess fixed income investment portfolio relates to fixed income securities included in the Company’s capital funds, which are in excess of those included in the Company’s liability funds that support the net reinsurance liabilities.

(2)	The limits approved and the actual limits deployed in the table above are shown net of retrocession.

---

---

(1)	Net prior year loss development due to changes in premiums includes, but it is not limited to, the impact to prior years’ reserves associated with (increases) decreases in the estimated or actual premium exposure reported by cedants.

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

---

---

•	reinsurance of longevity, subdivided into standard and non-standard annuities;

•	mortality business, which includes death and disability covers (with various riders) primarily written in Continental Europe, term assurance and critical illness primarily written in the United Kingdom and Ireland, and guaranteed minimum death benefit (GMDB) business primarily written in Continental Europe; and

•	specialty accident and health business written by PartnerRe Health, including Health Maintenance Organizations (HMO) reinsurance, medical reinsurance and provider and employer excess of loss programs.

---

•	the U.S. dollar average exchange rate was stronger against most currencies in the three months and nine months ended September 30, 2015 compared to the same periods of 2014; and

•	the U.S. dollar ending exchange rate strengthened against most currencies, except the Swiss franc and Japanese yen, at September 30, 2015 compared to December 31, 2014.

---

(1)	Interest in earnings or losses of equity method investments represents the Company’s aggregate share of earnings or losses related to several private placement investments and limited partnerships within the Corporate and Other segment.

(2)	Other income primarily relates to income on principal finance transactions within the Corporate and Other segment.

(3)	Amortization of intangible assets relates to intangible assets acquired in the acquisition of Paris Re in 2009 and PartnerRe Health in 2012.

---

•	Large losses—an increase in large losses of $60 million (5.4 points on the technical ratio) related to the Tianjin Explosion.

•

The current accident year technical result, adjusted for large losses and prior quarter loss development—a deterioration in the technical result (and corresponding increase in the technical ratio) primarily related to the Global Specialty sub-segment, driven by higher downward prior year premium adjustments and an increase in acquisition costs, and the Catastrophe sub-segment, as a result of lower net premiums earned following an increase in retrocessional purchases.

•

Net favorable prior year loss development—an increase of $80 million (a decrease of 8.7 points in the technical ratio) from $166 million (13.5 points on the technical ratio) in the three months ended September 30, 2014 to $246 million (22.2 points on the technical ratio) in the same period of 2015. The increase in net favorable prior year loss development was due to an increase in the Global Specialty, North America and Global (Non-U.S.) P&C sub-segments. The components of the net favorable prior year loss development are described in more detail in the discussion of individual sub-segments in Results by Segment below.

•	Net adverse prior quarter loss development—a decrease of $14 million (decrease of 1.2 points in the technical ratio) reflecting adverse prior quarter development of $14 million (1.2 points on the technical ratio) in the three months ended September 30, 2014 primarily related to a mid-sized loss reported in the Catastrophe sub-segment.

•	Other expenses—a decrease of $7 million (a decrease of 0.1 points in the combined ratio) from $62 million (5.0 points on the combined ratio) in the three months ended September 30, 2014 to $55 million (4.9 points on the combined ratio) in the same period of 2015, primarily as a result of the impact of foreign exchange and lower information technology and facilities costs.

---

•

Net favorable prior year loss development—an increase of $153 million (a decrease of 5.9 points in the technical ratio) from $491 million (15.1 points on the technical ratio) in the nine months ended September 30, 2014 to $644 million (21.0 points on the technical ratio) in the same period of 2015. The increase in net favorable prior year loss development was due to increases in the Global Specialty and North America sub-segments, and was partially offset by a decrease in the Global (Non-U.S.) P&C sub-segment. The components of the net favorable prior year loss development are described in more detail in the discussion of individual sub-segments in Results by Segment below.

•	Other expenses—a decrease of $25 million (a decrease of 0.4 points in the combined ratio) from $187 million (5.7 points on the combined ratio) in the nine months ended September 30, 2014 to $162 million (5.3 points on the combined ratio) in the same period of 2015, primarily as a result of the impact of foreign exchange and lower personnel and information technology and facilities costs.

•	The current accident year technical result, adjusted for large losses—a deterioration in the technical result (and corresponding increase in the technical ratio) driven by higher acquisition costs and higher downward prior year premium adjustments in the Global Specialty sub-segment and lower net premiums earned in the Catastrophe sub-segment following an increase in retrocessional purchases.

•	Large losses—an increase in large losses of $60 million (2.0 points on the technical ratio) related to the Tianjin Explosion.

---

(1)	Technical result is defined as net premiums earned less losses and loss expenses and acquisition costs.

(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.

---

---

•

Net favorable prior year loss development—an increase of $19 million (decrease of 5.6 points in the technical ratio) from $83 million (19.5 points on the technical ratio) in the three months ended September 30, 2014 to $102 million (25.1 points on the technical ratio) in the same period of 2015. The net favorable loss development for prior accident years in the three months ended September 30, 2015 and 2014 was driven by most lines of business, predominantly the casualty line.

•

The current accident year technical result, adjusted for large losses—a modest improvement in the technical result primarily due to a breakeven result recorded in the agriculture line of business in the three months ended September 30, 2015 compared to a loss in the same period of 2014. This improvement was partially offset by higher commissions recorded in the credit/surety lines of business driven by the restructuring of a significant treaty, a modestly higher level of mid-sized loss activity and normal fluctuations in profitability between periods.

•	Large losses—an increase in large losses of $3 million (0.7 points on the technical ratio) related to the Tianjin Explosion.

•

Net favorable prior year loss development—an increase of $54 million (decrease of 4.6 points in the technical ratio) from $175 million (14.7 points on the technical ratio) in the nine months ended September 30, 2014 to $229 million (19.3 points on the technical ratio) in the same period of 2015. The net favorable loss development for prior accident years in the nine months ended September 30, 2015 was driven by most lines of business, predominantly the casualty line. The net favorable loss development for prior accident years in the nine months ended September 30, 2014 was driven primarily by the casualty line, while the multiline and motor lines experienced combined adverse loss development for prior accident years of $10 million.

•

The current accident year technical result, adjusted for large losses—a modest deterioration in the technical result (and corresponding modest increase in the technical ratio) primarily due to higher commissions recorded in the credit/surety line of business driven by the restructuring of a significant treaty, and normal fluctuations in profitability between periods. This deterioration was partially offset by the breakeven result recorded in the agriculture line of business in the three months ended September 30, 2015 compared to the loss recorded in the same period of 2014.

---

---

•	Large losses—an increase in large losses of $22 million (12.1% points on the technical ratio) related to the Tianjin Explosion, impacting the property line of business.

•

Net favorable prior year loss development—an increase in net favorable prior year loss development of $9 million (increase of 6.1 points in the technical ratio) from $29 million (14.6 points on the technical ratio) in the three months ended September 30, 2014 to $38 million (20.7 points on the technical ratio) in the same period of 2015. The net favorable loss development for prior accident years in the three months ended September 30, 2015 was driven by all lines of business, with the motor line being the most pronounced. The net favorable loss development for prior accident years in the three months ended September 30, 2014 was driven by all lines of business, with the property line being the most pronounced.

•	Net favorable (adverse) prior quarter loss development—an increase in net favorable prior quarter loss development of $5 million (decrease of 2.5 points in the technical ratio). The net favorable prior quarter loss development in the three months ended September 30, 2015 was driven primarily by favorable loss emergence.

---

•

Net favorable prior year loss development—a decrease in net favorable prior year loss development of $39 million (increase of 5.8 points in the technical ratio) from $106 million (18.7 points on the technical ratio) in the nine months ended September 30, 2014 to $67 million (12.9 points on the technical ratio) in the same period of 2015. The net favorable loss development for prior accident years in the nine months ended September 30, 2015 and 2014 was driven primarily by the property line of business.

•	Large losses—an increase in large losses of $22 million (4.3% points in the technical ratio) related to the Tianjin Explosion.

•

The current accident year technical result, adjusted for large losses—a deterioration in the technical result (and a corresponding increase in the technical ratio) due to higher downward prior year premium adjustments and normal fluctuations in profitability between periods. This deterioration was partially offset by a decrease in the acquisition cost ratio driven by favorable profit commission adjustments reported by cedants in the motor line of business.

---

---

•

Net favorable prior year loss development—an increase of $53 million (decrease of 14.2 points in the technical ratio) from $51 million (11.4 points on the technical ratio) in the three months ended September 30, 2014 to $104 million (25.6 points on the technical ratio) in the same period of 2015. The net favorable loss development for prior accident years in the three months ended September 30, 2015 was driven by all lines of business, primarily the marine, aviation/space and engineering lines. The net favorable loss development for prior accident years in the three months ended September 30, 2014 was driven by most lines of business, primarily the marine and specialty property lines, while the engineering line experienced adverse loss development for prior accident years of $8 million.

•

The current accident year technical result, adjusted for large losses and prior quarter loss development—a deterioration in the technical result (and a corresponding increase in the technical ratio) mainly due to higher downward prior year premium adjustments and an increase in the acquisition cost ratio. The increase in the acquisition cost ratio was primarily driven by an unfavorable adjustment recorded on a significant contract in the aviation/space line of business and higher profit commission adjustments reported by cedants in the credit/surety and marine lines. These factors driving the deterioration in the technical result were partially offset by a lower level of mid-sized loss activity.

•	Large losses—an increase in large losses of $19 million (4.6% points on the technical ratio) related to the Tianjin Explosion.

•	Net adverse prior quarter loss development—an increase of $6 million (increase of 1.4 points in the technical ratio) in the three months ended September 30, 2015 compared to the same period of 2014, primarily due to a mid-sized loss reported in the engineering line.

---

•

Net favorable prior year loss development—an increase of $144 million (decrease of 13.4 points in the technical ratio) from $179 million (14.9 points on the technical ratio) in the nine months ended September 30, 2014 to $323 million (28.3 points on the technical ratio) in the same period of 2015. The net favorable loss development for prior accident years in the nine months ended September 30, 2015 was driven by all lines of business, primarily the marine, specialty casualty, aviation/space and credit/surety lines. The net favorable loss development for prior accident years in the nine months ended September 30, 2014 was driven by most lines of business, predominantly the marine, specialty property and aviation/space lines, while the credit/surety, engineering and agriculture lines experienced combined adverse loss development for prior accident years of $26 million.

•

The current accident year technical result, adjusted for large losses—a deterioration in the technical result (and a corresponding increase in the technical ratio) primarily due to an increase in the acquisition cost ratio and higher downward prior year premium adjustments. The increase in the acquisition cost ratio was mainly driven by unfavorable adjustments recorded in the aviation/space line and increases in profit commissions in the marine and credit/surety lines.

•	Large losses—an increase in large losses of $19 million (1.6% points on the technical ratio) related to the Tianjin Explosion.

---

---

•

The current accident year technical result, adjusted for large losses and prior quarter loss development—a decrease in the technical result primarily due to the higher premiums ceded under the retrocessional programs which have lowered net premiums earned, which in the absence of any loss recoveries directly impact the technical result, in the three months ended September 30, 2015 compared to the same period of 2014. This decrease in the technical result was partially offset by a lower acquisition cost ratio, driven by the recovery of commissions under the retrocessional programs, and modestly lower level of attritional losses and mid-sized loss activity. While the current accident year technical result decreased in the three months ended September 30, 2015 compared to the same period of 2014, the corresponding technical ratio also decreased due to the relative impact of lower net premiums earned.

•	Large losses—an increase in large losses of $16 million (14.5% points on the technical ratio) related to the Tianjin Explosion.

•

Net favorable (adverse) prior quarter loss development—an increase in net favorable prior quarter loss development of $15 million (decrease of 10.2 points in the technical ratio) from adverse loss development of $13 million (8.2 points on the technical ratio) in the three months ended September 30, 2014 to favorable loss development of $2 million (2.0 points on the technical ratio) in the same period of 2014. The net favorable prior quarter loss development in the three months ended September 30, 2015 was driven primarily by net favorable loss emergence. The adverse prior quarter loss development in the three months ended September 30, 2014 was primarily driven by the late reporting by a cedant of a mid-sized loss that occurred in the second quarter of 2014.

•

The current accident year technical result, adjusted for large losses—a decrease in the technical result primarily due to the impact of lower net premiums earned, as described in the three-month result, and normal fluctuations in profitability between periods, partially offset by a lower level of mid-sized loss activity. While the current accident year technical result decreased in the three months ended September 30, 2015 compared to the same period of 2014, the technical ratio also decreased due to the decrease in the technical result being lower than the decrease in net premiums earned.

•	Large losses—an increase in large losses of $16 million (7.6% points on the technical ratio) related to the Tianjin Explosion.

---

•

Net favorable prior year loss development—a decrease of $6 million (decrease of 1.3 points in the technical ratio due to the decrease in net premiums earned) from $31 million (10.4 points on the technical ratio) in the nine months ended September 30, 2014 to $25 million (11.7 points on the technical ratio) in the same period of 2015. The net favorable loss development for prior accident years in the nine months ended September 30, 2015 was primarily due to favorable loss emergence. The net favorable loss development for prior accident years in the nine months ended September 30, 2014 was primarily due to favorable loss emergence, partially offset by the adverse development related to the New Zealand Earthquakes.

---

---

•	Multiline and other: the increase in the distribution of net premiums written in the three months and nine months ended September 30, 2015 compared to the same periods of 2014 was primarily driven by new business written and increased participations in the North America and the Global Specialty sub-segments.

•	Catastrophe: the decrease in the distribution of net premiums written in the three months and nine months ended September 30, 2015 compared to the same periods of 2014 was primarily driven by higher premiums ceded, as described in the Catastrophe sub-segment above.

•	Life and Health: the increase in the distribution of net premiums written in the three months and nine months ended September 30, 2015 compared to the same periods of 2014 was primarily driven by increases in the PartnerRe's accident and health business, as described in the Life and Health segment above.

---

---

•	the strengthening of the U.S. dollar against most major currencies; and

•	a decrease in net investment income from fixed maturities, primarily due to lower reinvestment rates; partially offset by

•	asset allocation movements into higher yielding fixed income securities; and

•	a decrease in investment expenses, driven by lower withholding taxes.

•	the strengthening of the U.S. dollar against most major currencies;

•	a decrease in net investment income from fixed maturities, primarily due to lower reinvestment rates; and

•	a decrease in net investment income from equities, primarily as a result of the timing of dividends; partially offset by

•	asset allocation movements into higher yielding fixed income securities.

---

---

---

---

•	the impact of foreign exchange of $426 million due to the strengthening of the U.S. dollar against most major currencies;

•

net realized and unrealized losses related to the investment portfolio of $272 million, primarily resulting from a decrease in the fixed maturity and short-term investment portfolios of $135 million, mainly driven by widening of U.S. and Euro credit spreads, a decrease of $75 million in equities due to decreases in worldwide equity markets and a decrease in other invested assets of $65 million, primarily driven by losses on treasury note futures (see discussion related to duration below);

•	dividend payments on common and preferred shares totaling $143 million;

•	net decrease of $24 million, due to the repurchase of common shares of $59 million under the Company’s share repurchase program, partially offset by the reissuance of common shares from treasury under the Company’s employee equity plans of $35 million; and

•	various other factors which net to approximately $123 million, the largest being the amortization of net premium on investments; partially offset by

•	net cash provided by operating activities of $107 million.

---

---

(1)	Cost is amortized cost for fixed maturities and short-term investments and cost for equity securities.

(2)	All references to credit rating reflect Standard & Poor’s (or estimated equivalent). Investment grade reflects a rating of BBB- or above.

---

(1)	All references to credit rating reflect Standard & Poor’s (or estimated equivalent).

---

---

(1)	All references to credit rating reflect Standard & Poor’s (or estimated equivalent).

(2)	GNMA represents the Government National Mortgage Association. The GNMA, or Ginnie Mae as it is commonly known, is a wholly owned U.S. government corporation within the Department of Housing and Urban Development which guarantees mortgage loans of qualifying first-time home buyers and low-income borrowers.

(3)	GSEs, or government sponsored enterprises, includes securities that carry the implicit backing of the U.S. government and securities issued by U.S. government agencies.

---

(1)	All references to credit rating reflect Standard & Poor’s (or estimated equivalent). Investment grade reflects a rating of BBB- or above.

---

(1)	Included in Other invested assets are investments that are accounted for using the cost method of accounting, equity method of accounting or fair value accounting.

(2)	The Company enters into interest rate swaps to mitigate notional exposures on certain total return swaps and certain fixed maturities. Only the notional value of interest rate swaps on fixed maturities is presented separately in the table.

(3)	Insurance-linked securities include a longevity swap for which the notional amount is not reflective of the overall potential exposure of the swap. As such, the Company has included the probable maximum loss under the swap within the net notional exposure as an approximation of the notional amount.

---

---

(1)	Cost is amortized cost for fixed maturities.

(2)	All references to credit rating reflect Standard & Poor’s (or estimated equivalent).

(3)

In addition to the fair value of $415 million of investments underlying the funds held – directly managed account at September 30, 2015, the funds held – directly managed account also includes cash and cash equivalents of $64 million, accrued investment income of $6 million and other assets and liabilities related to the underlying business of $111 million. Accordingly, the total balance in the funds held – directly managed account was $596 million at September 30, 2015.

---

(1)	All references to credit rating reflect Standard & Poor’s (or estimated equivalent).

---

---

---

---

•	dividend payments of $143 million related to the Company’s common and preferred shares;

•	comprehensive loss of $107 million, which was primarily related to the net loss; and

•	a net decrease of $24 million, due to the repurchase of common shares of $59 million under the Company’s share repurchase program, partially offset by the reissuance of common shares from treasury under the Company’s employee equity plans of $35 million.

(1)	PartnerRe Finance A LLC and PartnerRe Finance B LLC, the issuers of the Senior Notes, do not meet consolidation requirements under U.S. GAAP. Accordingly, the Company shows the related intercompany debt of $750 million in its Condensed Consolidated Balance Sheets at September 30, 2015 and December 31, 2014.

(2)	PartnerRe Finance II Inc., the issuer of the CENts, does not meet consolidation requirements under U.S. GAAP. Accordingly, the Company shows the related intercompany debt of $71 million in its Condensed Consolidated Balance Sheets at September 30, 2015 and December 31, 2014.

---

---

---

(1)	Includes certain other invested assets, certain cash and cash equivalents and funds holding fixed income securities.

(2)	Excludes accrued interest.

(3)	Includes total investments, cash and cash equivalents, the investment portfolio underlying the funds held – directly managed account and accrued interest.

---

(1)	Includes certain other invested assets, certain cash and cash equivalents and funds holding fixed income securities.

(2)	Excludes accrued interest.

(3)	Includes total investments, cash and cash equivalents, the investment portfolio underlying the funds held – directly managed account and accrued interest.

---

(1)	As the U.S. dollar is the Company’s reporting currency, there is no currency risk attached to the U.S. dollar and it is excluded from this table. The U.S. dollar accounted for the difference between the Company’s total foreign currency exposure in this table and the total assets and total liabilities in the Company’s Condensed Consolidated Balance Sheet at September 30, 2015.

•	as a party to foreign exchange forward contracts and other derivative contracts;

•	in its underwriting operations, most notably in the credit/surety line and for alternative risk products;

•	the credit risk of its cedants in the event of their insolvency or their failure to honor the value of the funds held balances due to the Company;

•	the credit risk of Colisée Re in the event of insolvency or Colisée Re’s failure to honor the value of the funds held balances for any other reason;

---

•	the credit risk of AXA or its affiliates in the event of their insolvency or their failure to honor their obligations under the Acquisition Agreements (see Business—Reserves—Reserve Agreement in Item 1 of Part I of the Company’s Annual Report on Form 10-K for the year ended December 31, 2014);

•	as it relates to its business written through brokers if any of the Company’s brokers are unable to fulfill their contractual obligations with respect to payments to the Company;

•	as it relates to its reinsurance balances receivable and reinsurance recoverable on paid and unpaid losses; and

•	under its retrocessional reinsurance contracts.

(1)	Excludes funds holding fixed income securities of $7 million.

(2)	Includes total investments, cash and cash equivalents, the investment portfolio underlying the funds held – directly managed account and accrued interest.

---

---

(1)

On September 4, 2014, the Company’s Board of Directors approved and announced a new share repurchase authorization up to a total of 5 million common shares. Unless terminated earlier by resolution of the Company’s Board of Directors, the program will expire when the Company has repurchased all shares authorized for repurchase thereunder. Following the announcement of the Amalgamation Agreement on January 25, 2015, the Company suspended its repurchase activities. The share repurchase program remains suspended under the terms of the Merger Agreement.

(2)	At September 30, 2015, approximately 39.3 million common shares were held in treasury and available for reissuance.

---

---

---