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."

 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 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.

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.

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 sub-segments, 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.

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 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 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.