Market Overview

PartnerRe Ltd. Reports Second Quarter and Half Year 2018 Results

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  • Second Quarter Net income available to common shareholder of $125
    million, resulting in an Annualized Net Income ROE of 8.4%
  • Non-life combined ratio of 93.8% during the quarter, driven by P&C
    combined ratio of 95.6% and Specialty combined ratio of 92.0%
  • Total investment return of $42 million (or 0.9% annualized) for the
    quarter, driven by net investment income and gains on public equities
    and real estate, partially offset by lower fair value of fixed income
    securities linked to increase in risk-free rates and credit spreads

PartnerRe Ltd. ("the Company") today reported a net income available to
common shareholder of $125 million for the second quarter of 2018, which
includes net unrealized investment losses on fixed income securities of
$79 million. This compared to a net income of $191 million for the same
period of 2017, which included net unrealized investment gains on fixed
income securities of $95 million. Net income available to common
shareholder was $5 million for the half year 2018, which includes net
unrealized investment losses on fixed income securities of $312 million.
This compared to a net income of $229 million for the half year 2017,
which included net unrealized investment gains on fixed income
securities of $137 million. The unrealized investment losses on fixed
income securities in 2018 were driven by an increase in risk-free rates
and credit spreads and the unrealized investment gains on fixed income
securities in 2017 were driven by a narrowing of credit spreads. The
majority of the Company's investments, including all standard fixed
income investments such as government bonds and investment grade
corporate debt, are accounted for at fair value with changes in the fair
value recorded in the Consolidated Statements of Operations.

Underwriting profits, including both Non-life and Life and Health
operations and corporate expenses, were $36 million for the second
quarter of 2018 compared to $37 million for the same period of 2017, and
$46 million for the half year 2018 compared to $11 million for the same
period of 2017.

Commenting on the results, PartnerRe President and Chief Executive
Officer Emmanuel Clarke said, "We delivered an annualized Net Income ROE
of 8.4% in this quarter, driven by solid underwriting profits in both
our Non-Life and Life and Health segments and a 20% increase in net
premium written compared to last year's second quarter. I am pleased to
see our results reflect the efforts we have made, over the past two
years, to gain relevance with our key clients and brokers, and to find
new attractive business opportunities.

Notwithstanding a competitive reinsurance market, we achieved a positive
July 1 renewal where we continued to see increases in business margins.
These results, in conjunction with continued improved efficiency in
operating expenses, and the impact of higher reinvestment yields on our
Investment portfolio, position our company well to deliver improved
underwriting and financial results during the remainder of 2018."

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