|
¨
|
REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
|
ý
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Bermuda
|
(Jurisdiction of incorporation or organization)
|
|
90 Pitts Bay Road, Pembroke, Bermuda
|
(Address of principal executive offices)
|
|
Mario Bonaccorso
|
Executive Vice President and Chief Financial Officer
|
90 Pitts Bay Road, Pembroke, HM 08, Bermuda Telephone: +1 441-292-0888, Email: mario.bonaccorso@partnerre.com
|
(Name, Telephone, E-mail and/or Facsimile Number and Address of Company Contact Person)
|
Title of each class
|
|
Name of each exchange on which registered
|
5.875% Series F Non-Cumulative Preferred Shares,
$1.00 par value
|
|
New York Stock Exchange
|
6.50% Series G Cumulative Preferred Shares,
$1.00 par value
|
|
New York Stock Exchange
|
7.25% Series H Cumulative Preferred Shares,
$1.00 par value
|
|
New York Stock Exchange
|
5.875% Series I Non-Cumulative Preferred Shares,
$1.00 par value
|
|
New York Stock Exchange
|
|
|
|
|
|
|
Page
|
PART I
|
||
|
|
|
Item 1.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
Item 4A.
|
||
Item 5.
|
||
Item 6.
|
||
Item 7.
|
||
Item 8.
|
||
Item 9.
|
||
Item 10.
|
||
Item 11.
|
||
Item 12.
|
||
|
|
|
PART II
|
|
|
|
|
|
Item 13.
|
||
Item 14.
|
||
Item 15.
|
||
Item 16A.
|
||
Item 16B.
|
||
Item 16C.
|
||
Item 16D.
|
||
Item 16E.
|
||
Item 16F.
|
||
Item 16G.
|
||
Item 16H.
|
||
|
|
|
PART III
|
|
|
|
|
|
Item 17.
|
||
Item 18.
|
||
Item 19.
|
||
|
|
|
ITEM 1.
|
IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
|
ITEM 2.
|
OFFER STATISTICS AND EXPECTED TIMETABLE
|
ITEM 3.
|
KEY INFORMATION
|
|
|
For the years ended December 31,
|
||||||||||||||||||
Statement of Operations Data
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Net premiums earned
|
|
$
|
5,025
|
|
|
$
|
4,970
|
|
|
$
|
5,269
|
|
|
$
|
5,609
|
|
|
$
|
5,198
|
|
Net investment income
|
|
402
|
|
|
411
|
|
|
450
|
|
|
480
|
|
|
484
|
|
|||||
Net realized and unrealized investment gains (losses)
|
|
232
|
|
|
26
|
|
|
(297
|
)
|
|
372
|
|
|
(161
|
)
|
|||||
Other income
|
|
15
|
|
|
15
|
|
|
9
|
|
|
16
|
|
|
17
|
|
|||||
Total revenues
|
|
$
|
5,675
|
|
|
$
|
5,422
|
|
|
$
|
5,431
|
|
|
$
|
6,477
|
|
|
$
|
5,538
|
|
Net income
|
|
$
|
264
|
|
|
$
|
447
|
|
|
$
|
107
|
|
|
$
|
1,068
|
|
|
$
|
673
|
|
Net income attributable to PartnerRe Ltd. common shareholders
|
|
$
|
218
|
|
|
$
|
387
|
|
|
$
|
47
|
|
|
$
|
998
|
|
|
$
|
597
|
|
|
|
At December 31,
|
||||||||||||||||||
Balance Sheet Data
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Total assets
|
|
$
|
22,981
|
|
|
$
|
21,939
|
|
|
$
|
21,406
|
|
|
$
|
22,270
|
|
|
$
|
23,038
|
|
Total shareholders’ equity attributable to PartnerRe Ltd.
|
|
$
|
6,745
|
|
|
$
|
6,688
|
|
|
$
|
6,901
|
|
|
$
|
7,049
|
|
|
$
|
6,710
|
|
Common shareholders’ equity
(1)
|
|
$
|
6,041
|
|
|
$
|
5,984
|
|
|
$
|
6,047
|
|
|
$
|
6,195
|
|
|
$
|
5,856
|
|
|
•
|
Natural catastrophes including but not limited to hurricanes, windstorms, floods, tornadoes, and earthquakes;
|
•
|
Man-made disasters such as terrorism and acts of war;
|
•
|
Declines in the equity, real estate and fixed income markets;
|
•
|
Systemic increases in the frequency or severity of casualty or mortality losses; and
|
•
|
New mass tort actions or reemergence of old mass tort actions such as cases related to asbestos.
|
•
|
The models do not address all the possible hazard characteristics of a catastrophe peril (e.g., the precise path and wind speed of a hurricane);
|
•
|
The models may not accurately reflect the true frequency of events;
|
•
|
The models may not accurately reflect a risk’s vulnerability or susceptibility to damage for a given event characteristic;
|
•
|
The models may not accurately represent loss potential to reinsurance contract coverage limits, terms and conditions; and
|
•
|
The models may not accurately reflect the impact on the economy of the area affected or the financial, judicial, political, or regulatory impact on insurance claim payments during or following a catastrophe event.
|
•
|
Providing reinsurance capacity in markets and to clients that we target or requiring our participation in industry pools and guaranty associations;
|
•
|
Further restricting our operational or capital flexibility;
|
•
|
Expanding the scope of coverage under existing policies;
|
•
|
Regulating the terms of reinsurance policies;
|
•
|
Adopting further or changing compliance requirements which may result in additional costs which may adversely impact our results of operation; or
|
•
|
Disproportionately benefiting the companies domiciled in one country over those domiciled in another.
|
ITEM 4.
|
INFORMATION ON THE COMPANY
|
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||
|
|
$
|
|
%
|
|
$
|
|
%
|
|
$
|
|
%
|
|||||||||
Non-life business:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
P&C segment
|
|
$
|
2,255
|
|
|
40
|
%
|
|
$
|
2,269
|
|
|
42
|
%
|
|
$
|
2,371
|
|
|
43
|
%
|
Specialty segment
|
|
1,934
|
|
|
35
|
%
|
|
1,920
|
|
|
36
|
%
|
|
1,906
|
|
|
34
|
%
|
|||
Total Non-life business
|
|
4,189
|
|
|
75
|
%
|
|
4,189
|
|
|
78
|
%
|
|
4,277
|
|
|
77
|
%
|
|||
Life and Health segment
|
|
1,399
|
|
|
25
|
%
|
|
1,168
|
|
|
22
|
%
|
|
1,271
|
|
|
23
|
%
|
|||
|
|
$
|
5,588
|
|
|
100
|
%
|
|
$
|
5,357
|
|
|
100
|
%
|
|
$
|
5,548
|
|
|
100
|
%
|
Broker
|
|
Percentage
|
|
Marsh (including Guy Carpenter)
|
|
32
|
%
|
Aon Group (including the Benfield Group)
|
|
25
|
%
|
Non-life segment
|
|
Percentage
|
|
P&C
|
|
57
|
%
|
Specialty
|
|
56
|
%
|
•
|
Materiality
|
•
|
Risk driver expertise
|
•
|
Potential for superior risk-adjusted return over the cycle
|
Tier 1 Risks
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||
|
Approved limit
(1)
|
|
Actual deployed
(1)
|
|
Approved limit
(1)
|
|
Actual deployed
(1)
|
||||||||
Natural Catastrophe Risk
|
$
|
1.6
|
|
|
$
|
0.8
|
|
|
$
|
1.6
|
|
|
$
|
0.8
|
|
Longevity Risk
(2)
|
$
|
1.6
|
|
|
$
|
0.9
|
|
|
$
|
1.6
|
|
|
$
|
0.7
|
|
Pandemic Risk
|
$
|
1.6
|
|
|
$
|
0.4
|
|
|
$
|
1.6
|
|
|
$
|
0.4
|
|
Casualty Risk
|
$
|
1.6
|
|
|
$
|
0.7
|
|
|
$
|
1.6
|
|
|
$
|
0.7
|
|
Standard Fixed Income Credit
|
$
|
1.6
|
|
|
$
|
0.8
|
|
|
$
|
1.6
|
|
|
$
|
1.0
|
|
(1)
|
The limits approved and the actual limits deployed in the table above are shown net of retrocession.
|
(2)
|
The longevity risk duration for modelling purposes extends to the full run-off rather than one year.
|
|
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||
Zone
|
|
Peril
|
|
1-in-250
year PML |
|
1-in-500
year PML (Earthquake perils only) |
|
1-in-250
year PML |
|
1-in-500
year PML (Earthquake perils only) |
||||||||
U.S. Southeast
|
|
Hurricane
|
|
$
|
556
|
|
|
|
|
$
|
496
|
|
|
|
||||
U.S. Northeast
|
|
Hurricane
|
|
573
|
|
|
|
|
560
|
|
|
|
||||||
U.S. Gulf Coast
|
|
Hurricane
|
|
586
|
|
|
|
|
502
|
|
|
|
||||||
Caribbean
|
|
Hurricane
|
|
175
|
|
|
|
|
165
|
|
|
|
||||||
Europe
|
|
Windstorm
|
|
403
|
|
|
|
|
387
|
|
|
|
||||||
Japan
|
|
Typhoon
|
|
209
|
|
|
|
|
190
|
|
|
|
||||||
California
|
|
Earthquake
|
|
512
|
|
|
$
|
640
|
|
|
462
|
|
|
$
|
595
|
|
||
British Columbia
|
|
Earthquake
|
|
143
|
|
|
306
|
|
|
161
|
|
|
317
|
|
||||
Japan
|
|
Earthquake
|
|
330
|
|
|
368
|
|
|
315
|
|
|
349
|
|
||||
Australia
|
|
Earthquake
|
|
152
|
|
|
222
|
|
|
187
|
|
|
258
|
|
||||
New Zealand
|
|
Earthquake
|
|
140
|
|
|
201
|
|
|
147
|
|
|
211
|
|
•
|
A four layers property excess of loss reinsurance treaty with Bimeh Iran which is an entity that has been identified as owned or controlled by the Government of Iran and appears on the List of Persons Identified as Blocked Solely Pursuant to Executive Order 13599. The agreement was executed in 2017 and coverage began on January 1, 2017 for one year. Expected gross revenue is €177 thousand (approximately $218 thousand) and expected net profit attributable to the contract is €47 thousand (approximately $58 thousand). The subsidiary intends to continue providing such coverage in accordance with applicable law.
|
•
|
A three layers marine excess of loss reinsurance treaty with Bimeh Iran. The agreement was executed in 2017 and coverage began on July 1, 2017 for one year. Expected gross revenue is €129 thousand (approximately $160 thousand) and expected net profit attributable to the contract is €23 thousand (approximately $28 thousand). The subsidiary intends to continue providing such coverage in accordance with applicable law.
|
•
|
A three layers property catastrophe excess of loss reinsurance treaty with an Iranian pool of insurers of which one member is Bimeh Iran. The agreement was executed in 2017 and coverage began on September 23, 2017 for one year. Expected gross revenue is IRR 4,635 million (approximately $124 thousand) and expected net loss attributable to the contract is IRR 4,947 million ($132 thousand). The subsidiary intends to continue providing such coverage in accordance with applicable law.
|
|
|
Jurisdiction
|
|
Percentage Interest Held
|
Partner Reinsurance Company Ltd.
|
|
Bermuda
|
|
100%
|
Partner Reinsurance Europe SE
|
|
Ireland
|
|
100%
|
Partner Reinsurance Company of the U.S.
|
|
New York, United States
|
|
100%
|
Partner Reinsurance Asia Pacific Pte. Ltd.
|
|
Singapore
|
|
100%
|
ITEM 4.A
|
UNRESOLVED STAFF COMMENTS
|
ITEM 5.
|
OPERATING AND FINANCIAL REVIEW AND PROSPECTS
|
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||||||||||||||||||||
|
|
P&C segment
|
|
Specialty segment
|
|
Total Non-life
(1)
|
|
P&C segment
|
|
Specialty segment
|
|
Total Non-life
(2)
|
|
P&C segment
|
|
Specialty segment
|
|
Total Non-life
(3)
|
||||||||||||||||||
Large catastrophic and large losses
|
|
$
|
508
|
|
|
$
|
61
|
|
|
$
|
569
|
|
|
$
|
110
|
|
|
$
|
46
|
|
|
$
|
156
|
|
|
$
|
37
|
|
|
$
|
22
|
|
|
$
|
59
|
|
Impact on combined ratio
|
|
|
|
|
|
15.4
|
%
|
|
|
|
|
|
4.0
|
%
|
|
|
|
|
|
1.5
|
%
|
|
(1)
|
Large catastrophic and large losses for 2017 are net of retrocession and reinstatement premiums and were comprised of
$449 million
related to the 2017 Hurricanes and
$120 million
related to the California Wildfires.
|
(2)
|
Large catastrophic and large losses for 2016 are net of retrocession and reinstatement premiums and were comprised of
$69 million
related to the Canadian Wildfires,
$45 million
related to Hurricane Matthew and $42 million related to the Ghana energy loss.
|
(3)
|
Large losses of $59 million for 2015 are net of retrocession and represent losses related to the Tianjin Explosion.
|
Year ended December 31,
|
|
Total
|
||
2017
|
|
$
|
232
|
|
2016
|
|
$
|
26
|
|
2015
|
|
$
|
(297
|
)
|
•
|
the U.S. dollar ending exchange rate weakened against most currencies at
December 31, 2017
compared to
December 31, 2016
;
|
•
|
the U.S. dollar average exchange rate for the year weakened against most major currencies with the exception of GBP and the Japanese yen which strengthened, in
2017
compared to
2016
; and
|
•
|
the U.S. dollar average exchange rate for the year was stronger against most currencies, except the Japanese yen, in 2016 compared to 2015.
|
|
2017
|
|
2016
|
|
2015
|
||||||
Underwriting result
|
(88
|
)
|
|
252
|
|
|
619
|
|
|||
Investment result
|
720
|
|
|
414
|
|
|
159
|
|
|||
Corporate and Other
|
$
|
(368
|
)
|
|
$
|
(219
|
)
|
|
$
|
(671
|
)
|
Net income
|
$
|
264
|
|
|
$
|
447
|
|
|
$
|
107
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Non-life
|
$
|
24
|
|
|
$
|
249
|
|
|
$
|
584
|
|
Life and Health
|
(112
|
)
|
|
3
|
|
|
35
|
|
|||
Total underwriting result
|
(88
|
)
|
|
252
|
|
|
619
|
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||||||||||||||||||
|
|
Total
Non-life
|
|
Life and Health
|
|
Total
|
|
Total
Non-life
|
|
Life and Health
|
|
Total
|
|
Total
Non-life
|
|
Life and Health
|
|
Total
|
||||||||||||||||||
Technical result
|
|
$
|
129
|
|
|
$
|
(65
|
)
|
|
$
|
64
|
|
|
$
|
476
|
|
|
$
|
59
|
|
|
$
|
535
|
|
|
$
|
803
|
|
|
$
|
92
|
|
|
$
|
895
|
|
Other (loss) income
(1)
|
|
(1
|
)
|
|
14
|
|
|
13
|
|
|
2
|
|
|
10
|
|
|
12
|
|
|
—
|
|
|
6
|
|
|
6
|
|
|||||||||
Other expenses
(1)
|
|
(104
|
)
|
|
(61
|
)
|
|
(165
|
)
|
|
(229
|
)
|
|
(66
|
)
|
|
(295
|
)
|
|
(219
|
)
|
|
(63
|
)
|
|
(282
|
)
|
|||||||||
Underwriting result
|
|
$
|
24
|
|
|
$
|
(112
|
)
|
|
$
|
(88
|
)
|
|
$
|
249
|
|
|
$
|
3
|
|
|
$
|
252
|
|
|
$
|
584
|
|
|
$
|
35
|
|
|
$
|
619
|
|
|
|
2017
|
|
2016
|
|
2015
|
|||
Net investment income
|
402
|
|
|
411
|
|
|
450
|
|
Net realized and unrealized investment gains (losses)
|
232
|
|
|
26
|
|
|
(297
|
)
|
Interest in earnings (losses) of equity method investments
|
86
|
|
|
(23
|
)
|
|
6
|
|
Total investment result
|
720
|
|
|
414
|
|
|
159
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Fixed maturities, short-term investments and cash and cash equivalents
|
$
|
388
|
|
|
$
|
398
|
|
|
$
|
426
|
|
Equities
|
—
|
|
|
4
|
|
|
31
|
|
|||
Funds held and other
|
29
|
|
|
34
|
|
|
27
|
|
|||
Funds held–directly managed
|
8
|
|
|
10
|
|
|
12
|
|
|||
Investment expenses
|
(23
|
)
|
|
(35
|
)
|
|
(46
|
)
|
|||
Net investment income
|
$
|
402
|
|
|
$
|
411
|
|
|
$
|
450
|
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Net realized investment gains
|
|
22
|
|
|
103
|
|
|
172
|
|
|||
Change in net unrealized investment gains or losses
|
|
210
|
|
|
(77
|
)
|
|
(469
|
)
|
|||
Net realized and unrealized investment gains (losses)
|
|
$
|
232
|
|
|
$
|
26
|
|
|
$
|
(297
|
)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Other income not allocated to the segments
(1)
|
2
|
|
|
3
|
|
|
3
|
|
|||
Other expenses not allocated to the segments
|
(183
|
)
|
|
(177
|
)
|
|
(509
|
)
|
|||
Interest expense
|
(42
|
)
|
|
(49
|
)
|
|
(49
|
)
|
|||
Loss on redemption of debt
|
(2
|
)
|
|
(22
|
)
|
|
—
|
|
|||
Amortization of intangible assets
|
(25
|
)
|
|
(26
|
)
|
|
(27
|
)
|
|||
Net foreign exchange (losses) gains
|
(108
|
)
|
|
78
|
|
|
(9
|
)
|
|||
Income tax expense
|
(10
|
)
|
|
(26
|
)
|
|
(80
|
)
|
|||
Corporate and Other
|
$
|
(368
|
)
|
|
$
|
(219
|
)
|
|
$
|
(671
|
)
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Other expenses, as reported
|
$
|
348
|
|
|
$
|
472
|
|
|
$
|
791
|
|
Other transaction and severance related costs
|
(33
|
)
|
|
(128
|
)
|
|
(411
|
)
|
|||
Other expenses, as adjusted for various transaction and severance related costs
|
$
|
315
|
|
|
$
|
344
|
|
|
$
|
380
|
|
Other expenses, as adjusted, as a % of total net premiums earned
|
6.3
|
%
|
|
6.9
|
%
|
|
7.2
|
%
|
|
2017
|
|
2016
|
|
2015
|
||||||
Income tax expense
|
$
|
10
|
|
|
$
|
26
|
|
|
$
|
80
|
|
Effective income tax rate
|
3.8
|
%
|
|
5.5
|
%
|
|
42.6
|
%
|
|
2017
|
|
2016
|
|
2015
|
||||||
Gross premiums written
|
$
|
2,255
|
|
|
$
|
2,269
|
|
|
$
|
2,371
|
|
Net premiums written
|
$
|
1,996
|
|
|
$
|
2,061
|
|
|
$
|
2,236
|
|
Net premiums earned
|
$
|
1,963
|
|
|
$
|
2,086
|
|
|
$
|
2,240
|
|
Losses and loss expenses
(1)
|
(1,620
|
)
|
|
(1,248
|
)
|
|
(1,129
|
)
|
|||
Acquisition costs
|
(495
|
)
|
|
(556
|
)
|
|
(570
|
)
|
|||
Technical result
|
$
|
(152
|
)
|
|
$
|
282
|
|
|
$
|
541
|
|
Other income
|
—
|
|
|
3
|
|
|
—
|
|
|||
Other expenses
|
(71
|
)
|
|
(141
|
)
|
|
(137
|
)
|
|||
Underwriting result
|
$
|
(223
|
)
|
|
$
|
144
|
|
|
$
|
404
|
|
Loss ratio
|
82.6
|
%
|
|
59.8
|
%
|
|
50.4
|
%
|
|||
Acquisition ratio
|
25.2
|
|
|
26.7
|
|
|
25.4
|
|
|||
Technical ratio
|
107.8
|
%
|
|
86.5
|
%
|
|
75.8
|
%
|
|||
Other expense ratio
|
3.6
|
|
|
6.7
|
|
|
6.2
|
|
|||
Combined ratio
|
111.4
|
%
|
|
93.2
|
%
|
|
82.0
|
%
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Gross premiums written
|
$
|
1,934
|
|
|
$
|
1,920
|
|
|
$
|
1,906
|
|
Net premiums written
|
$
|
1,780
|
|
|
$
|
1,776
|
|
|
$
|
1,786
|
|
Net premiums earned
|
$
|
1,725
|
|
|
$
|
1,767
|
|
|
$
|
1,820
|
|
Losses and loss expenses
(1)
|
(955
|
)
|
|
(1,073
|
)
|
|
(1,064
|
)
|
|||
Acquisition costs
|
(489
|
)
|
|
(500
|
)
|
|
(494
|
)
|
|||
Technical result
|
$
|
281
|
|
|
$
|
194
|
|
|
$
|
262
|
|
Other (loss) income
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|||
Other expenses
|
(33
|
)
|
|
(88
|
)
|
|
(82
|
)
|
|||
Underwriting result
|
$
|
247
|
|
|
$
|
105
|
|
|
$
|
180
|
|
Loss ratio
|
55.4
|
%
|
|
60.8
|
%
|
|
58.5
|
%
|
|||
Acquisition ratio
|
28.4
|
|
|
28.3
|
|
|
27.1
|
|
|||
Technical ratio
|
83.8
|
%
|
|
89.1
|
%
|
|
85.6
|
%
|
|||
Other expense ratio
|
1.9
|
|
|
4.9
|
|
|
4.5
|
|
|||
Combined ratio
|
85.7
|
%
|
|
94.0
|
%
|
|
90.1
|
%
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Gross premiums written
|
$
|
1,399
|
|
|
$
|
1,168
|
|
|
$
|
1,271
|
|
Net premiums written
|
$
|
1,344
|
|
|
$
|
1,117
|
|
|
$
|
1,208
|
|
Net premiums earned
|
$
|
1,337
|
|
|
$
|
1,117
|
|
|
$
|
1,209
|
|
Losses and loss expenses
(1)
|
(1,266
|
)
|
|
(927
|
)
|
|
(964
|
)
|
|||
Acquisition costs
|
(136
|
)
|
|
(131
|
)
|
|
(153
|
)
|
|||
Technical result
|
$
|
(65
|
)
|
|
$
|
59
|
|
|
$
|
92
|
|
Other income
(2)
|
14
|
|
|
10
|
|
|
6
|
|
|||
Other expenses
|
(61
|
)
|
|
(66
|
)
|
|
(63
|
)
|
|||
Underwriting result
|
$
|
(112
|
)
|
|
$
|
3
|
|
|
$
|
35
|
|
Net investment income
|
60
|
|
|
58
|
|
|
59
|
|
|||
Allocated underwriting result
|
$
|
(52
|
)
|
|
$
|
61
|
|
|
$
|
94
|
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||
Senior notes
|
$
|
1,385
|
|
|
17
|
%
|
|
$
|
1,274
|
|
|
16
|
%
|
Capital efficient notes
|
63
|
|
|
1
|
|
|
63
|
|
|
1
|
|
||
Preferred shareholders’ equity, aggregate liquidation value
|
704
|
|
|
9
|
|
|
704
|
|
|
9
|
|
||
Common shareholder’s equity
|
6,041
|
|
|
73
|
|
|
5,984
|
|
|
74
|
|
||
Total
|
$
|
8,193
|
|
|
100
|
%
|
|
$
|
8,025
|
|
|
100
|
%
|
•
|
comprehensive income of
$248 million
, which was primarily related to net income in 2017; partially offset by
|
•
|
common and preferred dividend payments of $
191 million
in 2016.
|
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||
Fixed maturities
|
|
$
|
12,655
|
|
|
86
|
%
|
|
$
|
13,432
|
|
|
92
|
%
|
Short-term investments
|
|
4
|
|
|
—
|
|
|
22
|
|
|
—
|
|
||
Equities
|
|
639
|
|
|
4
|
|
|
39
|
|
|
—
|
|
||
Investments in real estate
|
|
83
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||
Other invested assets
|
|
1,385
|
|
|
9
|
|
|
1,076
|
|
|
8
|
|
||
Total investments
(1)
|
|
$
|
14,766
|
|
|
100
|
%
|
|
$
|
14,569
|
|
|
100
|
%
|
|
(1)
|
In addition to the total investments shown in the above table, the Company held cash and cash equivalents of
$1.8 billion
at
December 31, 2017
and
2016
.
|
|
(1)
|
Cost is amortized cost for fixed maturities and short-term investments.
|
(2)
|
All references to credit rating reflect Standard & Poor’s (or estimated equivalent). Investment grade reflects a rating of BBB- or above.
|
|
December 31, 2017
|
|
December 31, 2016
|
||||
Average credit quality
|
A
|
|
|
|
A
|
|
|
Year-end yield to maturity
|
2.8
|
|
%
|
|
2.7
|
|
%
|
Expected average duration
|
4.7
|
|
years
|
|
4.9
|
|
years
|
December 31, 2017
|
|
Cost
|
|
Fair
Value
|
||||
One year or less
|
|
$
|
283
|
|
|
$
|
280
|
|
More than one year through five years
|
|
4,252
|
|
|
4,259
|
|
||
More than five years through ten years
|
|
4,100
|
|
|
4,126
|
|
||
More than ten years
|
|
1,963
|
|
|
2,115
|
|
||
Subtotal
|
|
10,598
|
|
|
10,780
|
|
||
Mortgage/asset-backed securities
|
|
1,887
|
|
|
1,879
|
|
||
Total
|
|
$
|
12,485
|
|
|
$
|
12,659
|
|
December 31, 2017
|
|
U.S.
|
|
Foreign
|
|
Fair
Value |
|
Percentage to Total Fair Value of Corporate Bonds
|
|||||||
Sector
|
|
|
|
|
|
|
|
|
|||||||
Consumer noncyclical
|
|
$
|
1,121
|
|
|
$
|
218
|
|
|
$
|
1,339
|
|
|
22
|
%
|
Finance
|
|
762
|
|
|
261
|
|
|
1,023
|
|
|
17
|
|
|||
Industrials
|
|
566
|
|
|
100
|
|
|
666
|
|
|
11
|
|
|||
Energy
|
|
428
|
|
|
128
|
|
|
556
|
|
|
9
|
|
|||
Consumer cyclical
|
|
498
|
|
|
19
|
|
|
517
|
|
|
8
|
|
|||
Communications
|
|
401
|
|
|
33
|
|
|
434
|
|
|
7
|
|
|||
Insurance
|
|
402
|
|
|
26
|
|
|
428
|
|
|
7
|
|
|||
Utilities
|
|
237
|
|
|
106
|
|
|
343
|
|
|
6
|
|
|||
Real estate investment trusts
|
|
282
|
|
|
13
|
|
|
295
|
|
|
5
|
|
|||
Technology
|
|
246
|
|
|
—
|
|
|
246
|
|
|
4
|
|
|||
Basic materials
|
|
109
|
|
|
71
|
|
|
180
|
|
|
3
|
|
|||
Catastrophe bonds
|
|
2
|
|
|
66
|
|
|
68
|
|
|
1
|
|
|||
Longevity and mortality bonds
|
|
25
|
|
|
—
|
|
|
25
|
|
|
—
|
|
|||
Government guaranteed corporate debt
|
|
—
|
|
|
9
|
|
|
9
|
|
|
—
|
|
|||
Total
|
|
$
|
5,079
|
|
|
$
|
1,050
|
|
|
$
|
6,129
|
|
|
100
|
%
|
% of Total
|
|
83
|
%
|
|
17
|
%
|
|
100
|
%
|
|
|
|
|
Credit Rating
(1)
|
||||||||||||||||||||||
December 31, 2017
|
|
GNMA
(2)
|
|
GSEs
(3)
|
|
AAA
|
|
AA
|
|
Below
investment
grade /
Unrated
|
|
Fair Value
|
||||||||||||
Asset-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S.
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Non-U.S.
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
43
|
|
|
50
|
|
||||||
Asset-backed securities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
43
|
|
|
$
|
51
|
|
Residential mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S.
|
|
$
|
516
|
|
|
$
|
1,264
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,787
|
|
Non-U.S.
|
|
—
|
|
|
$
|
—
|
|
|
36
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|||||
Residential mortgage-backed securities
|
|
$
|
516
|
|
|
$
|
1,264
|
|
|
$
|
43
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,823
|
|
Commercial mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S.
|
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
4
|
|
|
—
|
|
|
5
|
|
|||||
Commercial mortgage-backed securities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
5
|
|
Total
|
|
$
|
516
|
|
|
$
|
1,264
|
|
|
$
|
52
|
|
|
$
|
4
|
|
|
$
|
43
|
|
|
$
|
1,879
|
|
% of Total
|
|
27
|
%
|
|
68
|
%
|
|
3
|
%
|
|
—
|
%
|
|
2
|
%
|
|
100
|
%
|
|
(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.
|
|
December 31, 2017
|
|
December 31, 2016
|
||||
Average credit quality
|
AA
|
|
|
|
AA
|
|
|
Year-end yield to maturity
|
1.4
|
|
%
|
|
1.1
|
|
%
|
Expected average duration
|
3.2
|
|
years
|
|
3.5
|
|
years
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||
P&C segment
|
|
$
|
6,942
|
|
|
$
|
6,187
|
|
Specialty segment
|
|
2,769
|
|
|
2,798
|
|
||
Gross non-life reserves
|
|
9,711
|
|
|
8,985
|
|
||
Ceded non-life reserves
|
|
(689
|
)
|
|
(267
|
)
|
||
Net non-life reserves
|
|
$
|
9,022
|
|
|
$
|
8,718
|
|
Reserving lines
|
|
Case reserves
|
|
ACRs
|
|
IBNR
reserves
|
|
Total gross
loss reserves
recorded
|
|
Ceded loss
reserves
|
|
Net non-life reserves
recorded
|
||||||||||||
P&C
|
|
$
|
3,025
|
|
|
$
|
156
|
|
|
$
|
3,761
|
|
|
$
|
6,942
|
|
|
$
|
(495
|
)
|
|
$
|
6,447
|
|
Specialty
|
|
1,152
|
|
|
20
|
|
|
1,596
|
|
|
2,769
|
|
|
(194
|
)
|
|
2,575
|
|
||||||
Total Non-life reserves
|
|
$
|
4,177
|
|
|
$
|
176
|
|
|
$
|
5,357
|
|
|
$
|
9,711
|
|
|
$
|
(689
|
)
|
|
$
|
9,022
|
|
|
|
Recorded Point
Estimate
|
|
High
|
|
Low
|
||||||
P&C
|
|
$
|
6,447
|
|
|
$
|
6,803
|
|
|
$
|
5,305
|
|
Specialty
|
|
$
|
2,575
|
|
|
$
|
2,866
|
|
|
$
|
2,084
|
|
•
|
the loss development factors used to form an expectation of the evolution of reported and paid claims for several years following the inception of the underwriting year. These are often derived by examining the Company’s data after due consideration of the underlying factors listed below. In some cases, where the Company lacks sufficient volume to have statistical credibility, external benchmarks are used to supplement the Company’s data;
|
•
|
the tail factors used to reflect development of paid and reported losses after several years have elapsed since the inception of the underwriting year;
|
•
|
the
a priori
loss ratios used as inputs in the B-F methods; and
|
•
|
the selected loss ratios used as inputs in the Expected Loss Ratio method.
|
Reserving lines selected assumptions
|
|
P&C
|
|
Specialty
|
||
A Priori Loss Ratio +5%
|
|
227
|
|
|
101
|
|
Loss Development Factors (up to 10 years) 6 months longer
|
|
475
|
|
|
280
|
|
Tail Loss Development Factors higher by 5%
(1)
|
|
389
|
|
|
167
|
|
|
|
|
|
|
||
A Priori Loss Ratio -5%
|
|
(243
|
)
|
|
(112
|
)
|
Loss Development Factors (up to 10 years) 6 months faster
|
|
(227
|
)
|
|
(116
|
)
|
Tail Loss Development Factors lower by 5%
(1)
|
|
(348
|
)
|
|
(138
|
)
|
|
(1)
|
Tail factors are defined as aggregate development factors after 10 years from the inception of an underwriting year.
|
•
|
the cedant’s business practices will proceed as in the past with no material changes either in submission of accounts or cash flows;
|
•
|
any internal delays in processing accounts received by the cedant are not materially different from that experienced historically, and hence the implicit reserving allowance made in loss reserves through the methods continues to be appropriate;
|
•
|
case reserve reporting practices, particularly the methodologies used to establish and report case reserves, are unchanged from historical practices;
|
•
|
the Company’s internal claim practices, particularly the level and extent of use of ACRs, are unchanged;
|
•
|
historical levels of claim inflation can be projected into the future and will have no material effect on either the acceleration or deceleration of claim reporting and payment patterns;
|
•
|
the selection of reserving cells results in homogeneous and credible future expectations for all business in the cell and any changes in underlying treaty terms are either reflected in cell selection or explicitly allowed in the selection of trends;
|
•
|
in cases where benchmarks are used, they are derived from the experience of similar business; and
|
•
|
the Company can form a credible initial expectation of the ultimate loss ratio of recent underwriting years through a review of pricing information, supplemented by qualitative information on market events.
|
•
|
P&C and Specialty:
Aggregate losses reported in 2017 for both P&C and Specialty segments were better than Company’s expectations as losses for most underwriting years continue to emerge below expectations. The better than expected loss emergence within the P&C segment was mainly driven by the casualty business. The better than expected loss emergence within the Specialty segment was predominantly driven by credit & surety, energy onshore and agriculture exposures. The Company reflected this experience by reducing the selected loss ratios for these lines of business.
|
•
|
mortality business, covering death and disability risks (with various riders) primarily written in Continental Europe, TCI primarily written in the U.K. and Ire
land, and GMDB business primarily written in Continental Europe. Following the acquisition of Aurigen
, the Company also writes mortality business originating in Canada;
|
•
|
reinsurance of longevity, subdivided into standard and non-standard annuities primarily written in the U.K.; and
|
•
|
specialty accident and health business, including Health Maintenance Organizations (HMO) reinsurance, medical reinsurance and provider and employer excess of loss programs primarily written in the U.S.
|
|
|
December 31, 2017
|
|
December 31, 2016
|
|||
Case reserves
|
|
$
|
342
|
|
|
281
|
|
IBNR reserves
|
|
1,042
|
|
|
798
|
|
|
Reserves for future policy benefits
|
|
1,107
|
|
|
905
|
|
|
Total gross Life and Health reserves
|
|
2,491
|
|
|
1,984
|
|
|
Ceded reserves
|
|
(41
|
)
|
|
(31
|
)
|
|
Net Life and Health reserves
|
|
2,450
|
|
|
1,953
|
|
•
|
Mortality:
The reserves for the short-term mortality business consist of case reserves and IBNR, calculated at the treaty level based upon cedant information. The Company’s reserving methodology includes a review of actual experience against expected experience and the use of the ELR method described above.
|
•
|
Longevity: R
eserves for the annuity portfolio of reinsurance contracts within the longevity book are established. Some of these contracts subject the Company to risks arising from policyholder mortality over a period that extends beyond the periods in which premiums are collected. The Reserves for future policy benefits follow the reserving methodology discussed above for long-term traditional mortality.
|
•
|
Accident and Health:
The unpaid loss and loss expense reserves for accident and health business are initially calculated using the ELR method. Subsequently, the Company’s reserving methodology utilizes actual reported loss experience and the B-F method to calculate IBNR.
|
Rating Category
|
|
% of total reinsurance recoverable on paid and unpaid losses
|
|
AA- or better
|
|
7
|
%
|
A- to
A+
|
|
30
|
|
Less than A-
|
|
—
|
|
Unrated
|
|
63
|
|
Total
|
|
100
|
%
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Currency translation adjustment at beginning of year
|
|
$
|
(42
|
)
|
|
$
|
(54
|
)
|
|
$
|
(8
|
)
|
Change in foreign currency translation adjustment included in accumulated other comprehensive loss, inclusive of the impact of designated net investment hedge
|
|
(15
|
)
|
|
12
|
|
|
(46
|
)
|
|||
Currency translation adjustment at end of year
|
|
$
|
(57
|
)
|
|
$
|
(42
|
)
|
|
$
|
(54
|
)
|
|
|
Net premiums earned
|
||
P&C
|
|
$
|
(20
|
)
|
Specialty
|
|
17
|
|
|
Total
|
|
$
|
(3
|
)
|
•
|
senior notes with an aggregate principal amount of €750 million issued by PartnerRe Ireland Finance DAC
|
•
|
senior notes with an aggregate principal of $500 million issued by PartnerRe Finance B LLC
|
•
|
Junior Subordinated Capital Efficient Notes (CENts) with a remaining aggregate principal amount of
$63 million
issued by PartnerRe Finance II Inc.
|
|
|
Total
|
|
< 1 year
|
|
1-3 years
|
|
3-5 years
|
|
> 5 years
|
||||||||||
Contractual obligations:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating leases
|
|
$
|
94.8
|
|
|
$
|
17.2
|
|
|
$
|
20.5
|
|
|
$
|
18.2
|
|
|
$
|
38.9
|
|
Other operating agreements
|
|
$
|
22.6
|
|
|
$
|
13.8
|
|
|
$
|
8.0
|
|
|
$
|
0.8
|
|
|
$
|
—
|
|
Other invested assets
(1)
|
|
$
|
315.0
|
|
|
$
|
109.0
|
|
|
$
|
155.0
|
|
|
$
|
51.0
|
|
|
$
|
—
|
|
Non-life reserves
(2)
|
|
$
|
9,710.5
|
|
|
$
|
3,013.1
|
|
|
$
|
2,812.2
|
|
|
$
|
1,325.3
|
|
|
$
|
2,559.9
|
|
Life and health reserves
(3)
|
|
$
|
3,324.6
|
|
|
$
|
747.5
|
|
|
$
|
496.9
|
|
|
$
|
271.0
|
|
|
$
|
1,809.2
|
|
Deposit liabilities
|
|
$
|
10.9
|
|
|
$
|
5.4
|
|
|
$
|
2.0
|
|
|
$
|
0.9
|
|
|
$
|
2.6
|
|
Senior notes and Preferred Shares:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2010 senior notes—principal
(4)
|
|
$
|
500.0
|
|
|
$
|
—
|
|
|
$
|
500.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
2010 senior notes—interest
|
|
$
|
68.8
|
|
|
$
|
27.5
|
|
|
$
|
41.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
2016 senior notes—principal
(5)
|
|
€
|
750.0
|
|
|
€
|
—
|
|
|
€
|
—
|
|
|
€
|
—
|
|
|
€
|
750.0
|
|
2016 senior notes—interest
|
|
€
|
47.0
|
|
|
€
|
9.4
|
|
|
€
|
18.8
|
|
|
€
|
18.8
|
|
|
€9.4 per annum
|
|
|
Capital efficient notes—principal
(6)
|
|
$
|
63.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
63.4
|
|
Capital efficient notes—interest
|
|
n/a
|
|
|
—
(7)
|
|
|
—
(7)
|
|
|
—
(7)
|
|
|
—
(7)
|
|
|||||
Series F non-cumulative preferred shares—principal
(7)
|
|
$
|
66,985.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
66,985.7
|
|
Series F non-cumulative preferred shares—dividends
|
|
n/a
|
|
|
3,935.4
|
|
|
7,870.8
|
|
|
7,870.8
|
|
|
$3.9 per annum
|
|
|||||
Series G cumulative preferred shares—principal
(8)
|
|
$
|
160,381.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
160.4
|
|
|
$
|
—
|
|
Series G cumulative preferred shares—dividends
|
|
n/a
|
|
|
$
|
10,424.8
|
|
|
$
|
20,849.6
|
|
|
$
|
3.5
|
|
|
$10.4 per annum
|
|
||
Series H cumulative preferred shares—principal
(8)
|
|
$
|
293,845.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
293.8
|
|
|
$
|
—
|
|
Series H cumulative preferred shares—dividends
|
|
n/a
|
|
|
$
|
21,303.8
|
|
|
$
|
42,607.6
|
|
|
$
|
7.1
|
|
|
$21.3 per annum
|
|
||
Series I non-cumulative preferred shares—principal
(7)
|
|
$
|
183,014.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
183,014.4
|
|
Series I non-cumulative preferred shares—dividends
|
|
n/a
|
|
|
$
|
10,752.1
|
|
|
$
|
21,504.2
|
|
|
$
|
21,504.2
|
|
|
$10.8 per annum
|
|
|
(1)
|
The amounts above for other invested assets represent the Company’s expected timing of funding capital commitments related to its strategic investments.
|
(2)
|
The Company’s non-life reserves represent management’s best estimate of the cost to settle the ultimate liabilities based on information available at
December 31, 2017
, and are not fixed amounts payable pursuant to contractual commitments. The timing and amounts of actual loss payments related to these reserves might vary significantly from the Company’s current
|
(3)
|
Life and health reserves at
December 31, 2017
of
$2,490 million
are computed on a discounted basis, whereas the expected payments by period in the table above are the estimated payments at a future time and do not reflect a discount of the amount payable.
|
(4)
|
PartnerRe Finance B LLC, the issuer of the 2010 senior notes, does not meet consolidation requirements under U.S. GAAP. Accordingly, the Company shows the debt to PartnerRe Finance B LLC of $500 million in its Consolidated Balance Sheet at
December 31, 2017
and
2016
. The 2010 senior notes of an aggregate principal outstanding of $500 million mature on June 1, 2020. Interest on the senior notes is payable semi-annually and cannot be deferred.
|
(5)
|
PartnerRe Ireland Finance DAC, the issuer of the 2016 senior notes, meets the consolidation requirements under U.S. GAAP. Accordingly, the Company shows the debt to third parties of €750 million in its Consolidated Balance Sheet at
December 31, 2017
. The 1.250% senior notes with aggregate principal outstanding of €750 million mature on September 15, 2026. Interest on the senior notes is payable annually commencing on September 15, 2017.
|
(6)
|
PartnerRe Finance II Inc., the issuer of the CENts, does not meet consolidation requirements under U.S. GAAP. Accordingly, the Company shows the debt to PartnerRe Finance II Inc. of $71 million in its Consolidated Balance Sheet at
December 31, 2017
. The aggregate principal amount of the CENts of $63 million, representing PartnerRe Finance II Inc.'s debt to third parties, is included in the table above. The CENts will mature on
December 1, 2066
and may be redeemed at the option of the issuer, in whole or in part, since
December 1, 2016
upon occurrence of specific rating agency or tax events. Interest on the CENts is payable
quarterly
until maturity at an annual rate of
3-month LIBOR
plus a margin equal to
2.325%
. As a result of the variable interest rate, the table above does not show the interest payable.
|
(7)
|
The Company’s 5.875% Series F and I preferred shares are non-cumulative, perpetual and have no mandatory redemption requirement, but may be redeemed at the Company’s option at any time or in part from time to time on or after March 1, 2018 and May 1, 2021, respectively.
|
(8)
|
The Company’s 6.50% Series G and 7.25% Series H preferred shares are cumulative, perpetual and have no mandatory redemption requirement, but may be redeemed at the Company’s option at any time or in part from time to time on or after May 1, 2021. Should the current interest rate environment persist, it is reasonable to expect that the Company would redeem these preferred shares in 2021.
|
ITEM 6.
|
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
|
Name
|
|
Position with the Company
|
Date Appointed
|
John Elkann
|
|
Director, Chairman of the Board
|
March 18, 2016
|
Brian Dowd
|
|
Director, Chairman of the Audit Committee
|
March 18, 2016
|
Patrick A. Thiele
|
|
Director, Member of the Audit Committee
|
March 18, 2016
|
Enrico Vellano
|
|
Director
|
March 28, 2016
|
Bilge Ogut
|
|
Director
|
July 28, 2016
|
Nikhil Srinivasan
|
|
Director
|
August 5, 2016
|
Emmanuel Clarke
|
|
Director, President and CEO, PartnerRe Ltd. and CEO Specialty
|
March 24, 2016
|
Mario Bonaccorso
|
|
Executive Vice President and CFO, PartnerRe Ltd.
|
April 4, 2016
|
Charles Goldie
|
|
CEO Property & Casualty
|
July 1, 2016
|
Scott Altstadt
|
|
Chief Underwriting Officer
|
July 1, 2016
|
Theodore C. Walker
|
|
Member of Executive Committee (retiring March 31, 2018)
|
July 1, 2016
|
Marvin Pestcoe
|
|
Executive Vice President (retiring March 31, 2018)
|
July 1, 2016
|
Marc Archambault
|
|
CEO Life and Health
|
April 1, 2017
|
Dorothée Burkel
|
|
Chief Corporate and People Operations Officer
|
October 2, 2017
|
Turab Hussain
|
|
Chief Risk and Actuarial Officer
|
December 2, 2017
|
•
|
John Elkann
,
Director, Chairman of the Board
|
•
|
Brian Dowd
,
Director, Chairman of the Audit Committee
(Independent)
|
•
|
Patrick A. Thiele
,
Director, Member of the Audit Committee
(Independent)
|
•
|
Enrico Vellano
,
Director
|
•
|
Bilge Ogut
,
Director
(Independent)
|
•
|
Nikhil Srinivasan
,
Director
|
•
|
Emmanuel Clarke
,
Director, President and CEO, PartnerRe Ltd. and CEO Specialty
|
•
|
Mario Bonaccorso
,
Executive Vice President and CFO, PartnerRe Ltd.
|
•
|
Charles Goldie
,
CEO Property & Casualty
|
•
|
Scott Altstadt
,
Chief Underwriting Officer
|
•
|
Theodore C. Walker
,
Member of Executive Committee (retiring March 31, 2018)
|
•
|
Marvin Pestcoe
,
Executive Vice President (retiring March 31, 2018)
|
•
|
Marc Archambault
,
CEO Life and Health
|
•
|
Dorothée Burkel
Chief Corporate and People Operations Officer
|
•
|
Turab Hussain
Chief Risk and Actuarial Officer
|
•
|
the integrity of PartnerRe’s financial statements;
|
•
|
PartnerRe’s compliance with legal and regulatory requirements;
|
•
|
the Company's system of internal controls;
|
•
|
the qualifications and independence of the external auditors; and
|
•
|
the performance of the Company's internal and external audit functions.
|
Geographic location
|
|
2017
|
|
2016
|
|
2015
|
|||
Asia, Australia and New Zealand
|
|
46
|
|
|
46
|
|
|
40
|
|
Europe
|
|
537
|
|
|
539
|
|
|
568
|
|
Latin America, Caribbean and Africa
|
|
7
|
|
|
7
|
|
|
5
|
|
North America
|
|
388
|
|
|
365
|
|
|
422
|
|
Total
|
|
978
|
|
|
957
|
|
|
1,035
|
|
ITEM 7.
|
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
|
ITEM 8.
|
FINANCIAL INFORMATION
|
ITEM 9.
|
THE OFFER AND LISTING
|
For the year ended December 31,
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|||||||||||||||
|
|
High
|
Low
|
|
High
|
Low
|
|
High
|
Low
|
|
High
|
Low
|
|
High
|
Low
|
||||||||||
Series F
|
|
26.24
|
|
24.07
|
|
|
27.48
|
|
22.95
|
|
|
26.56
|
|
23.90
|
|
|
25.61
|
|
20.12
|
|
|
25.15
|
|
19.88
|
|
Series G
|
|
27.59
|
|
25.47
|
|
|
30.33
|
|
25.32
|
|
|
n/a
|
|
n/a
|
|
|
n/a
|
|
n/a
|
|
|
n/a
|
|
n/a
|
|
Series H
|
|
30.82
|
|
27.11
|
|
|
32.40
|
|
25.02
|
|
|
n/a
|
|
n/a
|
|
|
n/a
|
|
n/a
|
|
|
n/a
|
|
n/a
|
|
Series I
|
|
27.08
|
|
23.56
|
|
|
28.94
|
|
22.97
|
|
|
n/a
|
|
n/a
|
|
|
n/a
|
|
n/a
|
|
|
n/a
|
|
n/a
|
|
For the quarter ended
|
|
December 31, 2017
|
|
September 30, 2017
|
|
June 30, 2017
|
|
March 31, 2017
|
||||||||||||
|
|
High
|
Low
|
|
High
|
Low
|
|
High
|
Low
|
|
High
|
Low
|
||||||||
Series F
|
|
25.97
|
|
25.22
|
|
|
26.24
|
|
24.81
|
|
|
25.84
|
|
25.12
|
|
|
25.87
|
|
24.07
|
|
Series G
|
|
27.44
|
|
26.71
|
|
|
27.59
|
|
26.65
|
|
|
27.52
|
|
26.52
|
|
|
26.82
|
|
25.47
|
|
Series H
|
|
29.54
|
|
28.15
|
|
|
30.82
|
|
28.11
|
|
|
29.56
|
|
28.53
|
|
|
28.97
|
|
27.11
|
|
Series I
|
|
27.08
|
|
26.04
|
|
|
26.35
|
|
25.38
|
|
|
26.53
|
|
25.45
|
|
|
25.63
|
|
23.56
|
|
For the quarter ended
|
|
December 31, 2016
|
|
September 30, 2016
|
|
June 30, 2016
|
|
March 31, 2016
|
||||||||||||
|
|
High
|
Low
|
|
High
|
Low
|
|
High
|
Low
|
|
High
|
Low
|
||||||||
Series F
|
|
26.54
|
|
22.95
|
|
|
27.48
|
|
25.66
|
|
|
26.18
|
|
24.50
|
|
|
26.92
|
|
24.81
|
|
Series G
|
|
28.99
|
|
25.32
|
|
|
30.33
|
|
28.16
|
|
|
29.86
|
|
26
|
|
|
n/a
|
|
n/a
|
|
Series H
|
|
30.82
|
|
25.02
|
|
|
32.40
|
|
29.52
|
|
|
30.98
|
|
26.76
|
|
|
n/a
|
|
n/a
|
|
Series I
|
|
27.83
|
|
22.97
|
|
|
28.94
|
|
26.1
|
|
|
26.19
|
|
24.91
|
|
|
n/a
|
|
n/a
|
|
Each month for the most recent six months
|
|
February 28, 2018
|
|
January 31, 2018
|
|
December 31, 2017
|
|
November 30, 2017
|
|
October 31, 2017
|
|
September 30, 2017
|
||||||||||||||||||
|
|
High
|
Low
|
|
High
|
Low
|
|
High
|
Low
|
|
High
|
Low
|
|
High
|
Low
|
|
High
|
Low
|
||||||||||||
Series F
|
|
25.46
|
|
24.70
|
|
|
25.60
|
|
25.00
|
|
|
25.83
|
|
25.22
|
|
|
25.90
|
|
25.27
|
|
|
25.97
|
|
25.31
|
|
|
25.74
|
|
24.81
|
|
Series G
|
|
26.55
|
|
25.81
|
|
|
26.98
|
|
26.19
|
|
|
27.44
|
|
26.80
|
|
|
27.37
|
|
26.87
|
|
|
27.44
|
|
26.71
|
|
|
27.08
|
|
26.65
|
|
Series H
|
|
28.28
|
|
26.81
|
|
|
29.17
|
|
27.23
|
|
|
29.54
|
|
28.60
|
|
|
29.54
|
|
28.49
|
|
|
29.14
|
|
28.15
|
|
|
29.37
|
|
28.37
|
|
Series I
|
|
25.63
|
|
24.91
|
|
|
26.27
|
|
24.95
|
|
|
26.71
|
|
26.04
|
|
|
26.99
|
|
26.15
|
|
|
27.08
|
|
26.05
|
|
|
26.32
|
|
25.38
|
|
ITEM 10.
|
ADDITIONAL INFORMATION
|
•
|
a duty to act in good faith in the best interests of the Company;
|
•
|
a duty not to make a personal profit from opportunities that arise from the office of director;
|
•
|
a duty to avoid situations in which there is an actual or potential conflict between a personal interest or the duties owed to third parties and/or the Director's duty to the Company; and
|
•
|
a duty to exercise powers for the purpose for which such powers were intended.
|
•
|
act honestly and in good faith with a view to the best interests of the Company; and
|
•
|
exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances.
|
ITEM 11.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
|
-200 Basis
Points |
|
%
Change
|
|
-100 Basis
Points |
|
%
Change
|
|
December 31,
2017 |
|
+100 Basis
Points |
|
%
Change
|
|
+200 Basis
Points |
|
%
Change
|
||||||||||||||
Fair value of investments exposed to interest rate risk
(1)(2)
|
$
|
15,531
|
|
|
10
|
%
|
|
$
|
14,823
|
|
|
5
|
%
|
|
$
|
14,115
|
|
|
$
|
13,407
|
|
|
(5
|
)%
|
|
$
|
12,699
|
|
|
(10
|
)%
|
Total invested assets
(3)
|
$
|
18,419
|
|
|
8
|
%
|
|
$
|
17,701
|
|
|
4
|
%
|
|
$
|
16,982
|
|
|
$
|
16,264
|
|
|
(4
|
)%
|
|
$
|
15,545
|
|
|
(8
|
)%
|
Shareholders’ equity attributable to PartnerRe Ltd.
|
$
|
8,182
|
|
|
21
|
%
|
|
$
|
7,464
|
|
|
11
|
%
|
|
$
|
6,745
|
|
|
$
|
6,027
|
|
|
(11
|
)%
|
|
$
|
5,308
|
|
|
(21
|
)%
|
|
(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.
|
|
-200 Basis
Points |
|
%
Change
|
|
-100 Basis
Points |
|
%
Change
|
|
December 31,
2017 |
|
+100 Basis
Points |
|
%
Change
|
|
+200 Basis
Points |
|
%
Change
|
||||||||||||||
Fair value of investments exposed to interest rate risk
(1)(2)
|
$
|
15,155
|
|
|
7
|
%
|
|
$
|
14,635
|
|
|
4
|
%
|
|
$
|
14,115
|
|
|
$
|
13,595
|
|
|
(4
|
)%
|
|
$
|
13,075
|
|
|
(7
|
)%
|
Total invested assets
(3)
|
$
|
18,023
|
|
|
6
|
%
|
|
$
|
17,503
|
|
|
3
|
%
|
|
$
|
16,982
|
|
|
$
|
16,462
|
|
|
(3
|
)%
|
|
$
|
15,941
|
|
|
(6
|
)%
|
Shareholders’ equity attributable to PartnerRe Ltd.
|
$
|
7,786
|
|
|
15
|
%
|
|
$
|
7,266
|
|
|
8
|
%
|
|
$
|
6,745
|
|
|
$
|
6,225
|
|
|
(8
|
)%
|
|
$
|
5,704
|
|
|
(15
|
)%
|
|
(1)
|
Included within the fair value of investments exposed to interest rate risk is $10.1 billion of fair value of investments exposed to credit spreads risk. 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.
|
|
Euro
|
|
CAD
|
|
CHF
|
|
GBP
|
|
JPY
|
|
Other
|
|
Total
(1)
|
||||||||||||||
Total assets
|
$
|
2,319
|
|
|
$
|
1,415
|
|
|
$
|
20
|
|
|
$
|
1,509
|
|
|
$
|
32
|
|
|
$
|
976
|
|
|
$
|
6,271
|
|
Total liabilities
|
(4,150
|
)
|
|
(507
|
)
|
|
(336
|
)
|
|
(1,531
|
)
|
|
(89
|
)
|
|
(1,507
|
)
|
|
(8,120
|
)
|
|||||||
Total gross foreign currency exposure
|
(1,831
|
)
|
|
908
|
|
|
(316
|
)
|
|
(22
|
)
|
|
(57
|
)
|
|
(531
|
)
|
|
(1,849
|
)
|
|||||||
Total derivative amount
|
1,839
|
|
|
(912
|
)
|
|
—
|
|
|
67
|
|
|
—
|
|
|
78
|
|
|
1,072
|
|
|||||||
Net foreign currency exposure
|
$
|
8
|
|
|
$
|
(4
|
)
|
|
$
|
(316
|
)
|
|
$
|
45
|
|
|
$
|
(57
|
)
|
|
$
|
(453
|
)
|
|
$
|
(777
|
)
|
|
(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 Consolidated Balance Sheet at
December 31, 2017
.
|
ITEM 12.
|
DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
|
ITEM 13.
|
DEFAULTS, DIVIDENDS ARREARAGES AND DELINQUENCIES
|
ITEM 14.
|
MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS
|
ITEM 15.
|
CONTROLS AND PROCEDURES
|
ITEM 16A.
|
AUDIT COMMITTEE FINANCIAL EXPERT
|
ITEM 16B.
|
CODE OF ETHICS
|
ITEM 16C.
|
PRINCIPAL ACCOUNTANT FEES AND SERVICES
|
|
|
2017
|
|
2016
|
||||
Audit Fees
(1)
|
|
$
|
4,949,268
|
|
|
$
|
5,296,000
|
|
Audit-Related Fees
(2)
|
|
82,095
|
|
|
257,000
|
|
||
Tax Fees
(3)
|
|
507,000
|
|
|
654,576
|
|
||
All Other Fees
(4)
|
|
—
|
|
|
109,361
|
|
||
Total
|
|
$
|
5,538,363
|
|
|
$
|
6,316,937
|
|
|
(1)
|
For the years ended December 31, 2017 and 2016, audit fees relate to professional services rendered by EY for the audit of the Company’s annual financial statements included in this annual report on Form 20-F and other audit services provided in connection with statutory and regulatory filings.
For the year ended December 31, 2016, audit fees also relate to professional services rendered by EY for the review of the financial statements included in the quarterly report on Form 10-Q for the quarterly period ended March 31, 2016. Subsequently, the Company was determined to be a Foreign Private Issuer and, as a result, exempt from quarterly Form 10-Q filings.
|
(2)
|
Audit-related fees are fees for services performed that are reasonably related to the performance of the audit or review of the Company’s financial statements but are not described in (1) above. For the year ended December 31, 2017, audit-related fees are for services performed by EY related to employee benefit plan audits of $72,095 and agreed upon procedures related to one of the Company's regulated branches for $10,000. For the year ended December 31, 2016, these fees include: i) fees
|
(3)
|
Tax fees relate to services performed by EY for annual U.S. tax preparation, compliance and filing assistance and certain on-going projects (including on-call advisory).
|
(4)
|
All other fees relate to services provided by EY other than the services reported in (1), (2), and (3) above. The fees for 2016 represented due diligence assistance related to the Aurigen acquisition and specific procedures in relation to a pro-forma filing related to the re-domicile of the parent company from Italy to the Netherlands.
|
ITEM 16D.
|
EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES
|
ITEM 16E.
|
PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS
|
ITEM 16F.
|
CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT
|
ITEM 16G.
|
CORPORATE GOVERNANCE
|
•
|
Nominating/Corporate Governance Committee: The NYSE requires that listed companies must have a nominating/corporate governance committee composed entirely of independent directors and a committee charter detailing the committee’s purpose and responsibilities and an annual performance evaluation of the committee. Under Bermuda law and our Bye-Laws, we are not required to have, and do not have, a nominating or corporate governance committee.
|
•
|
Compensation Committee: The NYSE requires that listed companies must have a compensation committee composed entirely of independent directors and a committee charter detailing the committee’s purpose and responsibilities, an annual performance evaluation of the committee and the rights and responsibilities of the committee with respect to retaining or obtaining advice from an independent adviser. Under Bermuda law and our Bye-Laws, we are not required to have, and do not have, a compensation committee.
|
•
|
Majority of Independent Directors: The NYSE requires that certain listed companies (domestic filers) must have a board of directors of at least a majority of independent directors. Under Bermuda law and our Bye-Laws, we are not required to have, and do not have, a majority of independent directors.
|
ITEM 16H.
|
MINE SAFETY DISCLOSURE
|
ITEM 17.
|
FINANCIAL STATEMENTS
|
ITEM 18.
|
FINANCIAL STATEMENTS
|
|
December 31,
2017 |
|
December 31,
2016 |
||||
Assets
|
|
|
|
||||
Investments:
|
|
|
|
||||
Fixed maturities, at fair value (amortized cost: 2017, $12,480,569; 2016, $13,386,557)
|
$
|
12,654,859
|
|
|
$
|
13,432,501
|
|
Short-term investments, at fair value (amortized cost: 2017, $4,394; 2016, $21,697)
|
4,400
|
|
|
21,697
|
|
||
Equities, at fair value (cost: 2017, $567,848; 2016, $28,376)
|
638,596
|
|
|
38,626
|
|
||
Investments in real estate
|
83,098
|
|
|
—
|
|
||
Other invested assets
|
1,385,258
|
|
|
1,075,637
|
|
||
Total investments
|
14,766,211
|
|
|
14,568,461
|
|
||
Funds held–directly managed (cost: 2017, $429,326; 2016, $510,057)
|
424,765
|
|
|
511,324
|
|
||
Cash and cash equivalents
|
1,772,012
|
|
|
1,773,328
|
|
||
Accrued investment income
|
120,805
|
|
|
112,580
|
|
||
Reinsurance balances receivable
|
2,724,844
|
|
|
2,492,069
|
|
||
Reinsurance recoverable on paid and unpaid losses
|
828,807
|
|
|
331,704
|
|
||
Funds held by reinsured companies
|
801,451
|
|
|
685,069
|
|
||
Deferred acquisition costs
|
672,307
|
|
|
597,239
|
|
||
Deposit assets
|
78,542
|
|
|
74,273
|
|
||
Net tax assets
|
133,169
|
|
|
194,170
|
|
||
Goodwill
|
456,380
|
|
|
456,380
|
|
||
Intangible assets
|
160,234
|
|
|
107,092
|
|
||
Other assets
|
41,237
|
|
|
35,105
|
|
||
Total assets
|
$
|
22,980,764
|
|
|
$
|
21,938,794
|
|
Liabilities
|
|
|
|
||||
Non-life reserves
|
$
|
9,710,457
|
|
|
$
|
8,985,434
|
|
Life and health reserves
|
2,490,474
|
|
|
1,984,096
|
|
||
Unearned premiums
|
1,818,999
|
|
|
1,623,796
|
|
||
Other reinsurance balances payable
|
292,077
|
|
|
281,973
|
|
||
Deposit liabilities
|
10,864
|
|
|
15,026
|
|
||
Net tax liabilities
|
154,947
|
|
|
166,113
|
|
||
Accounts payable, accrued expenses and other
|
302,021
|
|
|
849,572
|
|
||
Debt related to senior notes
|
1,384,824
|
|
|
1,273,883
|
|
||
Debt related to capital efficient notes
|
70,989
|
|
|
70,989
|
|
||
Total liabilities
|
16,235,652
|
|
|
15,250,882
|
|
||
Shareholders’ Equity
|
|
|
|
||||
Common shares (par value $0.00000001; issued: 100,000,000 shares)
|
—
|
|
|
—
|
|
||
Preferred shares (par value $1.00; issued and outstanding: 28,169,062 shares; aggregate liquidation value: $704,227)
|
28,169
|
|
|
28,169
|
|
||
Additional paid-in capital
|
2,396,530
|
|
|
2,396,530
|
|
||
Accumulated other comprehensive loss
|
(90,281
|
)
|
|
(74,569
|
)
|
||
Retained earnings
|
4,410,694
|
|
|
4,337,782
|
|
||
Total shareholders’ equity
|
6,745,112
|
|
|
6,687,912
|
|
||
Total liabilities and shareholders’ equity
|
$
|
22,980,764
|
|
|
$
|
21,938,794
|
|
|
|
For the year ended
|
||||||||||
|
|
December 31, 2017
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||
Revenues
|
|
|
|
|
|
|
||||||
Gross premiums written
|
|
$
|
5,587,894
|
|
|
$
|
5,356,942
|
|
|
$
|
5,547,525
|
|
Net premiums written
|
|
$
|
5,119,926
|
|
|
$
|
4,953,470
|
|
|
$
|
5,229,548
|
|
(Increase) decrease in unearned premiums
|
|
(94,945
|
)
|
|
16,126
|
|
|
39,630
|
|
|||
Net premiums earned
|
|
5,024,981
|
|
|
4,969,596
|
|
|
5,269,178
|
|
|||
Net investment income
|
|
402,071
|
|
|
410,864
|
|
|
449,784
|
|
|||
Net realized and unrealized investment gains (losses)
|
|
232,491
|
|
|
26,266
|
|
|
(297,479
|
)
|
|||
Other income
|
|
15,242
|
|
|
15,232
|
|
|
9,144
|
|
|||
Total revenues
|
|
5,674,785
|
|
|
5,421,958
|
|
|
5,430,627
|
|
|||
Expenses
|
|
|
|
|
|
|
||||||
Losses and loss expenses
|
|
3,840,982
|
|
|
3,248,091
|
|
|
3,157,420
|
|
|||
Acquisition costs
|
|
1,119,773
|
|
|
1,186,602
|
|
|
1,217,003
|
|
|||
Other expenses
|
|
348,398
|
|
|
471,905
|
|
|
790,723
|
|
|||
Interest expense
|
|
42,500
|
|
|
48,603
|
|
|
48,988
|
|
|||
Loss on redemption of debt
|
|
1,566
|
|
|
22,203
|
|
|
—
|
|
|||
Amortization of intangible assets
|
|
24,646
|
|
|
25,919
|
|
|
26,593
|
|
|||
Net foreign exchange losses (gains)
|
|
108,244
|
|
|
(77,515
|
)
|
|
9,461
|
|
|||
Total expenses
|
|
5,486,109
|
|
|
4,925,808
|
|
|
5,250,188
|
|
|||
Income before taxes and interest in earnings (losses) of equity method investments
|
|
188,676
|
|
|
496,150
|
|
|
180,439
|
|
|||
Income tax expense
|
|
10,358
|
|
|
25,923
|
|
|
79,664
|
|
|||
Interest in earnings (losses) of equity method investments
|
|
85,703
|
|
|
(22,919
|
)
|
|
6,375
|
|
|||
Net income
|
|
264,021
|
|
|
447,308
|
|
|
107,150
|
|
|||
Net income attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
(2,769
|
)
|
|||
Net income attributable to PartnerRe Ltd.
|
|
264,021
|
|
|
447,308
|
|
|
104,381
|
|
|||
Preferred dividends
|
|
46,416
|
|
|
55,043
|
|
|
56,735
|
|
|||
Loss on redemption of preferred shares
|
|
—
|
|
|
4,908
|
|
|
—
|
|
|||
Net income attributable to PartnerRe Ltd. common shareholders
|
|
$
|
217,605
|
|
|
$
|
387,357
|
|
|
$
|
47,646
|
|
Comprehensive income
|
|
|
|
|
|
|
||||||
Net income attributable to PartnerRe Ltd.
|
|
$
|
264,021
|
|
|
$
|
447,308
|
|
|
$
|
104,381
|
|
Change in currency translation adjustment
|
|
(15,135
|
)
|
|
12,202
|
|
|
(46,055
|
)
|
|||
Change in unfunded pension obligation, net of tax
|
|
(274
|
)
|
|
(1,909
|
)
|
|
(2,285
|
)
|
|||
Change in unrealized gains or losses on investments, net of tax
|
|
(303
|
)
|
|
(1,579
|
)
|
|
(860
|
)
|
|||
Total other comprehensive (loss) income, net of tax
|
|
(15,712
|
)
|
|
8,714
|
|
|
(49,200
|
)
|
|||
Comprehensive income attributable to PartnerRe Ltd.
|
|
$
|
248,309
|
|
|
$
|
456,022
|
|
|
$
|
55,181
|
|
|
|
For the year ended
|
||||||||||
|
December 31, 2017
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||
Common shares
|
|
|
|
|
|
||||||
Balance at beginning of year
|
$
|
—
|
|
|
$
|
87,237
|
|
|
$
|
87,237
|
|
Cancellation of treasury shares
|
—
|
|
|
(39,082
|
)
|
|
—
|
|
|||
Cancellation of outstanding common shares
|
—
|
|
|
(48,155
|
)
|
|
—
|
|
|||
Balance at end of year
|
—
|
|
|
—
|
|
|
87,237
|
|
|||
Preferred shares
|
|
|
|
|
|
||||||
Balance at beginning of year
|
28,169
|
|
|
34,150
|
|
|
34,150
|
|
|||
Redemption of preferred shares
|
—
|
|
|
(5,981
|
)
|
|
—
|
|
|||
Balance at end of year
|
28,169
|
|
|
28,169
|
|
|
34,150
|
|
|||
Additional paid-in capital
|
|
|
|
|
|
||||||
Balance at beginning of year
|
2,396,530
|
|
|
3,982,147
|
|
|
3,949,665
|
|
|||
Stock compensation expense, net of taxes paid
|
—
|
|
|
48,731
|
|
|
32,482
|
|
|||
Reissuance of common shares
|
—
|
|
|
(2,193
|
)
|
|
—
|
|
|||
Cancellation of treasury shares
|
—
|
|
|
(1,466,363
|
)
|
|
—
|
|
|||
Cancellation of outstanding common shares
|
—
|
|
|
48,155
|
|
|
—
|
|
|||
Settlement of stock options and SSARs
|
—
|
|
|
(75,311
|
)
|
|
—
|
|
|||
Redemption of preferred shares
|
—
|
|
|
(138,636
|
)
|
|
—
|
|
|||
Balance at end of year
|
2,396,530
|
|
|
2,396,530
|
|
|
3,982,147
|
|
|||
Accumulated other comprehensive loss
|
|
|
|
|
|
||||||
Balance at beginning of year
|
(74,569
|
)
|
|
(83,283
|
)
|
|
(34,083
|
)
|
|||
Currency translation adjustment
|
|
|
|
|
|
||||||
Balance at beginning of year
|
(41,768
|
)
|
|
(53,970
|
)
|
|
(7,915
|
)
|
|||
Change in foreign currency translation adjustment
|
(15,135
|
)
|
|
6,175
|
|
|
(36,750
|
)
|
|||
Change in designated net investment hedge
|
—
|
|
|
6,027
|
|
|
(9,305
|
)
|
|||
Balance at end of year
|
(56,903
|
)
|
|
(41,768
|
)
|
|
(53,970
|
)
|
|||
Unfunded pension obligation
|
|
|
|
|
|
||||||
Balance at beginning of year
|
(33,770
|
)
|
|
(31,861
|
)
|
|
(29,576
|
)
|
|||
Change in unfunded pension obligation, net of tax
|
(274
|
)
|
|
(1,909
|
)
|
|
(2,285
|
)
|
|||
Balance at end of year (net of tax: 2017, $9,744; 2016, $9,512; 2015, $8,804)
|
(34,044
|
)
|
|
(33,770
|
)
|
|
(31,861
|
)
|
|||
Unrealized gain on investments
|
|
|
|
|
|
||||||
Balance at beginning of year
|
969
|
|
|
2,548
|
|
|
3,408
|
|
|||
Change in unrealized losses on investments, net of tax
|
(303
|
)
|
|
(1,579
|
)
|
|
(860
|
)
|
|||
Balance at end of year (net of tax: 2017, 2016 and 2015: $nil)
|
666
|
|
|
969
|
|
|
2,548
|
|
|||
Balance at end of year
|
(90,281
|
)
|
|
(74,569
|
)
|
|
(83,283
|
)
|
|||
Retained earnings
|
|
|
|
|
|
||||||
Balance at beginning of year
|
4,337,782
|
|
|
6,146,802
|
|
|
6,270,811
|
|
|||
Net income
|
264,021
|
|
|
447,308
|
|
|
107,150
|
|
|||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(2,769
|
)
|
|||
Reissuance of common shares
|
—
|
|
|
(17,229
|
)
|
|
(38,051
|
)
|
|||
Cancellation of treasury shares
|
—
|
|
|
(1,742,718
|
)
|
|
—
|
|
|||
Dividends on common shares
|
(144,693
|
)
|
|
(436,430
|
)
|
|
(133,604
|
)
|
|||
Dividends on preferred shares
|
(46,416
|
)
|
|
(55,043
|
)
|
|
(56,735
|
)
|
|||
Loss on redemption of preferred shares
|
—
|
|
|
(4,908
|
)
|
|
—
|
|
|||
Balance at end of year
|
4,410,694
|
|
|
4,337,782
|
|
|
6,146,802
|
|
|
For the year ended
|
||||||||||
|
December 31, 2017
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||
Common shares held in treasury
|
|
|
|
|
|
||||||
Balance at beginning of year
|
—
|
|
|
(3,266,552
|
)
|
|
(3,258,870
|
)
|
|||
Repurchase of common shares
|
—
|
|
|
—
|
|
|
(59,266
|
)
|
|||
Reissuance of common shares
|
—
|
|
|
18,390
|
|
|
51,584
|
|
|||
Cancellation of treasury shares
|
—
|
|
|
3,248,162
|
|
|
—
|
|
|||
Balance at end of year
|
—
|
|
|
—
|
|
|
(3,266,552
|
)
|
|||
Total shareholders’ equity attributable to PartnerRe Ltd.
|
$
|
6,745,112
|
|
|
$
|
6,687,912
|
|
|
$
|
6,900,501
|
|
Noncontrolling interests
|
—
|
|
|
—
|
|
|
2,450
|
|
|||
Total shareholders’ equity
|
$
|
6,745,112
|
|
|
$
|
6,687,912
|
|
|
$
|
6,902,951
|
|
|
For the year ended
|
||||||||||
|
December 31, 2017
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||
Cash flows from operating activities
|
|
|
|
|
|
||||||
Net income
|
$
|
264,021
|
|
|
$
|
447,308
|
|
|
$
|
107,150
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Amortization of net premium on investments
|
69,080
|
|
|
96,402
|
|
|
93,754
|
|
|||
Amortization of intangible assets
|
24,646
|
|
|
25,919
|
|
|
26,593
|
|
|||
Net realized and unrealized investment (gains) losses
|
(232,491
|
)
|
|
(26,266
|
)
|
|
297,479
|
|
|||
Changes in:
|
|
|
|
|
|
||||||
Reinsurance balances, net
|
(84,767
|
)
|
|
(95,737
|
)
|
|
(122,866
|
)
|
|||
Reinsurance recoverable on paid and unpaid losses, net of ceded premiums payable
|
(481,173
|
)
|
|
(46,235
|
)
|
|
55,172
|
|
|||
Funds held by reinsured companies and funds held–directly managed
|
47,383
|
|
|
(59,069
|
)
|
|
131,713
|
|
|||
Deferred acquisition costs
|
(34,822
|
)
|
|
2,000
|
|
|
(5,784
|
)
|
|||
Net tax assets and liabilities
|
42,337
|
|
|
(135,153
|
)
|
|
(105,635
|
)
|
|||
Non-life and life and health reserves
|
571,907
|
|
|
214,071
|
|
|
(118,976
|
)
|
|||
Unearned premiums
|
94,945
|
|
|
(16,126
|
)
|
|
(39,630
|
)
|
|||
Other net changes in operating assets and liabilities
|
(38,190
|
)
|
|
38,195
|
|
|
(158
|
)
|
|||
Net cash provided by operating activities
|
242,876
|
|
|
445,309
|
|
|
318,812
|
|
|||
Cash flows from investing activities
|
|
|
|
|
|
||||||
Sales of fixed maturities
|
12,524,296
|
|
|
12,404,085
|
|
|
7,796,537
|
|
|||
Redemptions of fixed maturities
|
572,638
|
|
|
595,381
|
|
|
743,743
|
|
|||
Purchases of fixed maturities
|
(12,465,127
|
)
|
|
(12,704,275
|
)
|
|
(8,608,288
|
)
|
|||
Sales and redemptions of short-term investments
|
169,555
|
|
|
148,665
|
|
|
178,166
|
|
|||
Purchases of short-term investments
|
(143,859
|
)
|
|
(124,079
|
)
|
|
(200,533
|
)
|
|||
Sales of equities
|
16,232
|
|
|
402,481
|
|
|
1,184,380
|
|
|||
Purchases of equities
|
(275,928
|
)
|
|
(7,119
|
)
|
|
(647,533
|
)
|
|||
Consideration paid to acquire Aurigen, net of cash acquired
|
(233,233
|
)
|
|
—
|
|
|
—
|
|
|||
Other, net
|
(65,753
|
)
|
|
(749,194
|
)
|
|
(151,198
|
)
|
|||
Net cash provided by (used in) investing activities
|
98,821
|
|
|
(34,055
|
)
|
|
295,274
|
|
|||
Cash flows from financing activities
|
|
|
|
|
|
||||||
Dividends paid to common and preferred shareholders
|
(191,109
|
)
|
|
(491,473
|
)
|
|
(190,339
|
)
|
|||
Settlement of share-based awards upon change in control
|
—
|
|
|
(75,531
|
)
|
|
—
|
|
|||
Issuance of Class B common shares
(1)
|
11,000
|
|
|
—
|
|
|
—
|
|
|||
Repurchase of common shares
|
—
|
|
|
—
|
|
|
(71,376
|
)
|
|||
Reissuance of treasury shares, net of taxes
|
—
|
|
|
10,965
|
|
|
7,996
|
|
|||
Redemption of preferred shares
|
—
|
|
|
(149,523
|
)
|
|
—
|
|
|||
Issuance of senior notes
|
—
|
|
|
824,002
|
|
|
—
|
|
|||
Redemption of debt
|
(207,130
|
)
|
|
(271,961
|
)
|
|
—
|
|
|||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
(55,820
|
)
|
|||
Net cash used in financing activities
|
(387,239
|
)
|
|
(153,521
|
)
|
|
(309,539
|
)
|
|||
Effect of foreign exchange rate changes on cash
|
44,226
|
|
|
(61,502
|
)
|
|
(40,918
|
)
|
|||
(Decrease) increase in cash and cash equivalents
|
(1,316
|
)
|
|
196,231
|
|
|
263,629
|
|
|||
Cash and cash equivalents—beginning of year
|
1,773,328
|
|
|
1,577,097
|
|
|
1,313,468
|
|
|||
Cash and cash equivalents—end of year
|
$
|
1,772,012
|
|
|
$
|
1,773,328
|
|
|
$
|
1,577,097
|
|
Supplemental cash flow information:
|
|
|
|
|
|
||||||
Taxes paid
|
$
|
66,228
|
|
|
$
|
188,650
|
|
|
$
|
220,336
|
|
Interest paid
|
$
|
40,989
|
|
|
$
|
46,417
|
|
|
$
|
49,259
|
|
•
|
Non-life reserves;
|
•
|
Life and health reserves;
|
•
|
Gross and net premiums written and net premiums earned;
|
•
|
Recoverability of deferred acquisition costs;
|
•
|
Recoverability of deferred tax assets;
|
•
|
Valuation of certain investments that are measured using significant unobservable inputs; and
|
•
|
Valuation of goodwill and intangible assets.
|
•
|
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.
|
December 31, 2017
|
|
Quoted prices in
active markets for
identical assets
(Level 1)
|
|
Significant
other observable
inputs
(Level 2)
|
|
Significant
unobservable
inputs
(Level 3)
|
|
Total
|
||||||||
Fixed maturities
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and government sponsored enterprises
|
|
$
|
—
|
|
|
$
|
2,205,964
|
|
|
$
|
—
|
|
|
$
|
2,205,964
|
|
U.S. states, territories and municipalities
|
|
—
|
|
|
561,505
|
|
|
128,806
|
|
|
690,311
|
|
||||
Non-U.S. sovereign government, supranational and government related
|
|
—
|
|
|
1,750,770
|
|
|
—
|
|
|
1,750,770
|
|
||||
Corporate bonds
|
|
—
|
|
|
6,128,636
|
|
|
—
|
|
|
6,128,636
|
|
||||
Asset-backed securities
|
|
—
|
|
|
30,965
|
|
|
20,738
|
|
|
51,703
|
|
||||
Residential mortgage-backed securities
|
|
—
|
|
|
1,822,725
|
|
|
—
|
|
|
1,822,725
|
|
||||
Other mortgage-backed securities
|
|
—
|
|
|
4,750
|
|
|
—
|
|
|
4,750
|
|
||||
Fixed maturities
|
|
$
|
—
|
|
|
$
|
12,505,315
|
|
|
$
|
149,544
|
|
|
$
|
12,654,859
|
|
Short-term investments
|
|
$
|
—
|
|
|
$
|
4,400
|
|
|
$
|
—
|
|
|
$
|
4,400
|
|
Equities
|
|
|
|
|
|
|
|
|
||||||||
Finance
|
|
$
|
11,115
|
|
|
$
|
1
|
|
|
$
|
21,926
|
|
|
$
|
33,042
|
|
Industrials
|
|
16,534
|
|
|
—
|
|
|
—
|
|
|
16,534
|
|
||||
Technology
|
|
1,990
|
|
|
—
|
|
|
10,961
|
|
|
12,951
|
|
||||
Insurance
|
|
—
|
|
|
7,558
|
|
|
—
|
|
|
7,558
|
|
||||
Communications
|
|
3,215
|
|
|
—
|
|
|
—
|
|
|
3,215
|
|
||||
Consumer cyclical
|
|
2,170
|
|
|
—
|
|
|
—
|
|
|
2,170
|
|
||||
Consumer noncyclical
|
|
897
|
|
|
—
|
|
|
—
|
|
|
897
|
|
||||
Other
|
|
3,493
|
|
|
—
|
|
|
—
|
|
|
3,493
|
|
||||
Mutual funds and exchange traded funds
|
|
—
|
|
|
—
|
|
|
558,736
|
|
|
558,736
|
|
||||
Equities
|
|
$
|
39,414
|
|
|
$
|
7,559
|
|
|
$
|
591,623
|
|
|
$
|
638,596
|
|
Other invested assets
|
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange forward contracts
|
|
$
|
—
|
|
|
$
|
8,559
|
|
|
$
|
—
|
|
|
$
|
8,559
|
|
Futures contracts
|
|
3,367
|
|
|
—
|
|
|
—
|
|
|
3,367
|
|
||||
Insurance-linked securities
|
|
—
|
|
|
—
|
|
|
11,985
|
|
|
11,985
|
|
||||
Total return swaps
|
|
—
|
|
|
—
|
|
|
2,505
|
|
|
2,505
|
|
||||
TBAs
|
|
—
|
|
|
391
|
|
|
—
|
|
|
391
|
|
||||
Other
|
|
|
|
|
|
|
|
|
||||||||
Corporate loans
|
|
—
|
|
|
—
|
|
|
205,331
|
|
|
205,331
|
|
||||
Notes and loan receivables and notes securitization
|
|
—
|
|
|
3,425
|
|
|
108,563
|
|
|
111,988
|
|
||||
Private equities
|
|
—
|
|
|
—
|
|
|
331,932
|
|
|
331,932
|
|
||||
Derivative liabilities
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange forward contracts
|
|
—
|
|
|
(20,328
|
)
|
|
—
|
|
|
(20,328
|
)
|
||||
Total return swaps
|
|
—
|
|
|
—
|
|
|
(3,269
|
)
|
|
(3,269
|
)
|
||||
Interest rate swaps
|
|
—
|
|
|
(12,298
|
)
|
|
—
|
|
|
(12,298
|
)
|
||||
TBAs
|
|
—
|
|
|
(591
|
)
|
|
—
|
|
|
(591
|
)
|
||||
Other invested assets
|
|
$
|
3,367
|
|
|
$
|
(20,842
|
)
|
|
$
|
657,047
|
|
|
$
|
639,572
|
|
Funds held–directly managed
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and government sponsored enterprises
|
|
$
|
—
|
|
|
$
|
161,023
|
|
|
$
|
—
|
|
|
$
|
161,023
|
|
Non-U.S. sovereign government, supranational and government related
|
|
—
|
|
|
95,812
|
|
|
—
|
|
|
95,812
|
|
||||
Corporate bonds
|
|
—
|
|
|
41,090
|
|
|
—
|
|
|
41,090
|
|
||||
Short-term investments
|
|
—
|
|
|
453
|
|
|
—
|
|
|
453
|
|
||||
Other invested assets
|
|
—
|
|
|
—
|
|
|
2,067
|
|
|
2,067
|
|
||||
Funds held–directly managed
|
|
$
|
—
|
|
|
$
|
298,378
|
|
|
$
|
2,067
|
|
|
$
|
300,445
|
|
Total
|
|
$
|
42,781
|
|
|
$
|
12,794,810
|
|
|
$
|
1,400,281
|
|
|
$
|
14,237,872
|
|
December 31, 2016
|
|
Quoted prices in
active markets for
identical assets
(Level 1)
|
|
Significant other
observable
inputs
(Level 2)
|
|
Significant
unobservable
inputs
(Level 3)
|
|
Total
|
||||||||
Fixed maturities
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and government sponsored enterprises
|
|
$
|
—
|
|
|
$
|
3,541,433
|
|
|
$
|
—
|
|
|
$
|
3,541,433
|
|
U.S. states, territories and municipalities
|
|
—
|
|
|
560,728
|
|
|
123,827
|
|
|
684,555
|
|
||||
Non-U.S. sovereign government, supranational and government related
|
|
—
|
|
|
1,136,034
|
|
|
—
|
|
|
1,136,034
|
|
||||
Corporate
|
|
—
|
|
|
5,705,522
|
|
|
—
|
|
|
5,705,522
|
|
||||
Asset-backed securities
|
|
—
|
|
|
24,709
|
|
|
99,351
|
|
|
124,060
|
|
||||
Residential mortgage-backed securities
|
|
—
|
|
|
2,240,897
|
|
|
—
|
|
|
2,240,897
|
|
||||
Fixed maturities
|
|
$
|
—
|
|
|
$
|
13,209,323
|
|
|
$
|
223,178
|
|
|
$
|
13,432,501
|
|
Short-term investments
|
|
$
|
—
|
|
|
$
|
21,697
|
|
|
$
|
—
|
|
|
$
|
21,697
|
|
Equities
|
|
|
|
|
|
|
|
|
||||||||
Finance
|
|
$
|
973
|
|
|
$
|
4,960
|
|
|
$
|
20,934
|
|
|
$
|
26,867
|
|
Technology
|
|
—
|
|
|
—
|
|
|
9,800
|
|
|
9,800
|
|
||||
Insurance
|
|
—
|
|
|
1,800
|
|
|
—
|
|
|
1,800
|
|
||||
Consumer noncyclical
|
|
6
|
|
|
—
|
|
|
—
|
|
|
6
|
|
||||
Mutual funds and exchange traded funds
|
|
—
|
|
|
—
|
|
|
153
|
|
|
153
|
|
||||
Equities
|
|
$
|
979
|
|
|
$
|
6,760
|
|
|
$
|
30,887
|
|
|
$
|
38,626
|
|
Other invested assets
|
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange forward contracts
|
|
$
|
—
|
|
|
$
|
5,263
|
|
|
$
|
—
|
|
|
$
|
5,263
|
|
Insurance-linked securities
|
|
—
|
|
|
—
|
|
|
10,130
|
|
|
10,130
|
|
||||
Total return swaps
|
|
—
|
|
|
—
|
|
|
1,989
|
|
|
1,989
|
|
||||
TBAs
|
|
—
|
|
|
1,369
|
|
|
—
|
|
|
1,369
|
|
||||
Other
|
|
|
|
|
|
|
|
|
||||||||
Notes and loan receivables and notes securitization
|
|
—
|
|
|
1,500
|
|
|
141,693
|
|
|
143,193
|
|
||||
Private equities
|
|
—
|
|
|
—
|
|
|
305,729
|
|
|
305,729
|
|
||||
Derivative liabilities
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange forward contracts
|
|
—
|
|
|
(7,142
|
)
|
|
—
|
|
|
(7,142
|
)
|
||||
Insurance-linked securities
|
|
—
|
|
|
—
|
|
|
(97
|
)
|
|
(97
|
)
|
||||
Total return swaps
|
|
—
|
|
|
—
|
|
|
(3,217
|
)
|
|
(3,217
|
)
|
||||
Interest rate swaps
|
|
—
|
|
|
(13,403
|
)
|
|
—
|
|
|
(13,403
|
)
|
||||
TBAs
|
|
—
|
|
|
(185
|
)
|
|
—
|
|
|
(185
|
)
|
||||
Other invested assets
|
|
$
|
—
|
|
|
$
|
(12,598
|
)
|
|
$
|
456,227
|
|
|
$
|
443,629
|
|
Funds held–directly managed
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and government sponsored enterprises
|
|
$
|
—
|
|
|
$
|
171,975
|
|
|
$
|
—
|
|
|
$
|
171,975
|
|
Non-U.S. sovereign government, supranational and government related
|
|
—
|
|
|
104,512
|
|
|
—
|
|
|
104,512
|
|
||||
Corporate bonds
|
|
—
|
|
|
71,365
|
|
|
—
|
|
|
71,365
|
|
||||
Short-term investments
|
|
—
|
|
|
1,603
|
|
|
—
|
|
|
1,603
|
|
||||
Other invested assets
|
|
—
|
|
|
—
|
|
|
4,540
|
|
|
4,540
|
|
||||
Funds held–directly managed
|
|
$
|
—
|
|
|
$
|
349,455
|
|
|
$
|
4,540
|
|
|
$
|
353,995
|
|
Total
|
|
$
|
979
|
|
|
$
|
13,574,637
|
|
|
$
|
714,832
|
|
|
$
|
14,290,448
|
|
For the year ended
December 31, 2017 |
|
Balance at
beginning
of year
|
|
Realized and
unrealized
investment
gains (losses)
included in
net income
|
|
Purchases
and
issuances
(1)
|
|
Settlements
and
sales (2) |
|
Net
transfers
into (out of)
Level 3
|
|
Balance
at end of
year
|
|
Change in
unrealized investment gains (losses)
relating to
assets held at end of year |
||||||||||||||
Fixed maturities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. states, territories and municipalities
|
|
$
|
123,827
|
|
|
$
|
5,804
|
|
|
$
|
—
|
|
|
$
|
(825
|
)
|
|
$
|
—
|
|
|
$
|
128,806
|
|
|
$
|
5,804
|
|
Asset-backed securities
|
|
99,351
|
|
|
3,300
|
|
|
1,360
|
|
|
(83,273
|
)
|
|
—
|
|
|
20,738
|
|
|
1,316
|
|
|||||||
Fixed maturities
|
|
$
|
223,178
|
|
|
$
|
9,104
|
|
|
$
|
1,360
|
|
|
$
|
(84,098
|
)
|
|
$
|
—
|
|
|
$
|
149,544
|
|
|
$
|
7,120
|
|
Equities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Finance
|
|
$
|
20,934
|
|
|
$
|
992
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
21,926
|
|
|
$
|
992
|
|
Technology
|
|
9,800
|
|
|
1,611
|
|
|
—
|
|
|
(450
|
)
|
|
—
|
|
|
10,961
|
|
|
1,611
|
|
|||||||
Mutual funds and exchange traded funds
|
|
153
|
|
|
51,476
|
|
|
507,250
|
|
|
(143
|
)
|
|
—
|
|
|
558,736
|
|
|
51,486
|
|
|||||||
Equities
|
|
$
|
30,887
|
|
|
$
|
54,079
|
|
|
$
|
507,250
|
|
|
$
|
(593
|
)
|
|
$
|
—
|
|
|
$
|
591,623
|
|
|
$
|
54,089
|
|
Other invested assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Derivatives, net
|
|
$
|
8,805
|
|
|
$
|
5,977
|
|
|
$
|
1,793
|
|
|
$
|
(5,354
|
)
|
|
$
|
—
|
|
|
$
|
11,221
|
|
|
$
|
3,231
|
|
Corporate loans
|
|
—
|
|
|
(709
|
)
|
|
206,700
|
|
|
(660
|
)
|
|
—
|
|
|
205,331
|
|
|
(695
|
)
|
|||||||
Notes and loan receivables and notes securitization
|
|
141,693
|
|
|
2,744
|
|
|
2,040
|
|
|
(37,914
|
)
|
|
—
|
|
|
108,563
|
|
|
6,977
|
|
|||||||
Private equities
|
|
305,729
|
|
|
29,942
|
|
|
17,572
|
|
|
(21,311
|
)
|
|
—
|
|
|
331,932
|
|
|
27,533
|
|
|||||||
Other invested assets
|
|
$
|
456,227
|
|
|
$
|
37,954
|
|
|
$
|
228,105
|
|
|
$
|
(65,239
|
)
|
|
$
|
—
|
|
|
$
|
657,047
|
|
|
$
|
37,046
|
|
Funds held–directly managed
|
|
$
|
4,540
|
|
|
$
|
(516
|
)
|
|
$
|
495
|
|
|
$
|
(2,452
|
)
|
|
$
|
—
|
|
|
$
|
2,067
|
|
|
$
|
(629
|
)
|
Total
|
|
$
|
714,832
|
|
|
$
|
100,621
|
|
|
$
|
737,210
|
|
|
$
|
(152,382
|
)
|
|
$
|
—
|
|
|
$
|
1,400,281
|
|
|
$
|
97,626
|
|
|
(1)
|
Purchases and issuances of derivatives include issuances of
$2 million
.
|
(2)
|
Settlements and sales of equities include sales of
$1 million
.
|
For the year ended
December 31, 2016 |
|
Balance at
beginning
of year
|
|
Realized and
unrealized
investment
(losses) gains
included in
net income
|
|
Purchases
and
issuances
(1)
|
|
Settlements
and
sales (2) |
|
Net
transfers
into (out of)
Level 3
|
|
Balance
at end of
year
|
|
Change in
unrealized investment (losses) gains
relating to
assets held at end of year |
||||||||||||||
Fixed maturities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. states, territories and municipalities
|
|
$
|
138,847
|
|
|
$
|
(14,240
|
)
|
|
$
|
—
|
|
|
$
|
(780
|
)
|
|
$
|
—
|
|
|
$
|
123,827
|
|
|
$
|
(14,240
|
)
|
Asset-backed securities
|
|
369,699
|
|
|
21
|
|
|
191,048
|
|
|
(461,417
|
)
|
|
—
|
|
|
99,351
|
|
|
(4,628
|
)
|
|||||||
Fixed maturities
|
|
$
|
508,546
|
|
|
$
|
(14,219
|
)
|
|
$
|
191,048
|
|
|
$
|
(462,197
|
)
|
|
$
|
—
|
|
|
$
|
223,178
|
|
|
$
|
(18,868
|
)
|
Equities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Finance
|
|
$
|
22,760
|
|
|
$
|
3,438
|
|
|
$
|
—
|
|
|
$
|
(5,264
|
)
|
|
$
|
—
|
|
|
$
|
20,934
|
|
|
$
|
3,211
|
|
Technology
|
|
8,207
|
|
|
1,143
|
|
|
450
|
|
|
—
|
|
|
—
|
|
|
9,800
|
|
|
1,143
|
|
|||||||
Communications
|
|
1,985
|
|
|
209
|
|
|
—
|
|
|
(2,194
|
)
|
|
—
|
|
|
—
|
|
|
55
|
|
|||||||
Mutual funds and exchange traded funds
|
|
4,604
|
|
|
(242
|
)
|
|
—
|
|
|
(4,209
|
)
|
|
—
|
|
|
153
|
|
|
14
|
|
|||||||
Equities
|
|
$
|
37,556
|
|
|
$
|
4,548
|
|
|
$
|
450
|
|
|
$
|
(11,667
|
)
|
|
$
|
—
|
|
|
$
|
30,887
|
|
|
$
|
4,423
|
|
Other invested assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Derivatives, net
|
|
$
|
5,351
|
|
|
$
|
(3,314
|
)
|
|
$
|
2,256
|
|
|
$
|
4,512
|
|
|
$
|
—
|
|
|
$
|
8,805
|
|
|
$
|
(1,772
|
)
|
Notes and loan receivables and notes securitization
|
|
125,922
|
|
|
2,599
|
|
|
71,828
|
|
|
(58,656
|
)
|
|
—
|
|
|
141,693
|
|
|
2,278
|
|
|||||||
Annuities and residuals
|
|
8,436
|
|
|
262
|
|
|
—
|
|
|
(8,698
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Private equities
|
|
71,298
|
|
|
6,764
|
|
|
236,022
|
|
|
(8,355
|
)
|
|
—
|
|
|
305,729
|
|
|
2,827
|
|
|||||||
Other invested assets
|
|
$
|
211,007
|
|
|
$
|
6,311
|
|
|
$
|
310,106
|
|
|
$
|
(71,197
|
)
|
|
$
|
—
|
|
|
$
|
456,227
|
|
|
$
|
3,333
|
|
Funds held–directly managed
|
|
$
|
10,146
|
|
|
$
|
1,698
|
|
|
$
|
1,011
|
|
|
$
|
(8,315
|
)
|
|
$
|
—
|
|
|
$
|
4,540
|
|
|
$
|
1,678
|
|
Total
|
|
$
|
767,255
|
|
|
$
|
(1,662
|
)
|
|
$
|
502,615
|
|
|
$
|
(553,376
|
)
|
|
$
|
—
|
|
|
$
|
714,832
|
|
|
$
|
(9,434
|
)
|
|
(1)
|
There were
no
issuances included in the purchases and issuances amounts above.
|
(2)
|
Settlements and sales of fixed maturities, equities, other invested assets and funds held
–
directly managed include sales of
$276 million
,
$12 million
,
$43 million
and
$8 million
, respectively.
|
December 31, 2017
|
|
Fair value
|
|
Valuation techniques
|
|
Unobservable inputs
|
|
Range
(Weighted average)
|
||
Fixed maturities
|
|
|
|
|
|
|
|
|
||
U.S. states, territories and municipalities
|
|
$
|
128,806
|
|
|
Discounted cash flow
|
|
Credit spreads
|
|
0.2% – 10.2% (4.7%)
|
Asset-backed securities
|
|
20,738
|
|
|
Discounted cash flow
|
|
Credit spreads
|
|
4.7% (4.7%)
|
|
Equities
|
|
|
|
|
|
|
|
|
||
Finance
|
|
21,926
|
|
|
Weighted market comparables
|
|
Net income multiple
|
|
16.7 (16.7)
|
|
|
|
|
|
|
Tangible book value multiple
|
|
2.0 (2.0)
|
|||
|
|
|
|
|
|
Liquidity discount
|
|
25.0% (25.0%)
|
||
|
|
|
|
|
|
Comparable return
|
|
4.1% (4.1%)
|
||
Technology
|
|
10,961
|
|
|
Reported market value
|
|
Tangible book value multiple
|
|
100.0% (100.0%)
|
|
Other invested assets
|
|
|
|
|
|
|
|
|
||
Total return swaps, net
|
|
(764
|
)
|
|
Discounted cash flow
|
|
Credit spreads
|
|
2.4% – 30.8% (18.5%)
|
|
Insurance-linked securities – longevity swaps
|
|
11,962
|
|
|
Discounted cash flow
|
|
Credit spreads
|
|
1.7% (1.7%)
|
|
Notes and loan receivables
|
|
102,907
|
|
|
Discounted cash flow
|
|
Credit spreads
|
|
3.9% – 39.3% (6.1%)
|
|
Notes and loan receivables
|
|
4,265
|
|
|
Discounted cash flow
|
|
Credit spreads
|
|
17.5% (17.5%)
|
|
|
|
|
|
Gross revenue/fair value
|
|
1.1 (1.1)
|
||||
Notes securitization
|
|
1,391
|
|
|
Discounted cash flow
|
|
Credit spreads
|
|
1.5% (1.5%)
|
|
Private equity – direct
|
|
3,011
|
|
|
Discounted cash flow and market multiples
|
|
Tangible book value multiple
|
|
0.8 (0.8)
|
|
|
|
|
|
|
Recoverability of intangible assets
|
|
0% (0%)
|
|||
Private equity funds
|
|
12,559
|
|
|
Reported market value
|
|
Net asset value, as reported
|
|
100.0% (100.0%)
|
|
|
|
|
|
|
Market adjustments
|
|
-0.7% (-0.7%)
|
|||
Private equity – other
|
|
24,241
|
|
|
Discounted cash flow
|
|
Effective yield
|
|
3.8% (3.8%)
|
|
Funds held–directly managed
|
|
|
|
|
|
|
|
|
||
Other invested assets
|
|
2,067
|
|
|
Reported market value
|
|
Net asset value, as reported
|
|
100.0% (100.0%)
|
|
|
|
|
|
|
Market adjustments
|
|
0% (0%)
|
December 31, 2016
|
|
Fair value
|
|
Valuation techniques
|
|
Unobservable inputs
|
|
Range
(Weighted average)
|
||
Fixed maturities
|
|
|
|
|
|
|
|
|
||
U.S. states, territories and municipalities
|
|
$
|
123,827
|
|
|
Discounted cash flow
|
|
Credit spreads
|
|
1.5% – 10.5% (6.3%)
|
Asset-backed securities
|
|
99,351
|
|
|
Discounted cash flow
|
|
Credit spreads
|
|
4.1% – 18.5% (14.9%)
|
|
Equities
|
|
|
|
|
|
|
|
|
||
Finance
|
|
20,934
|
|
|
Weighted market comparables
|
|
Net income multiple
|
|
20.3 (20.3)
|
|
|
|
|
|
|
Tangible book value multiple
|
|
1.9 (1.9)
|
|||
|
|
|
|
|
|
Liquidity discount
|
|
25.0% (25.0%)
|
||
|
|
|
|
|
|
Comparable return
|
|
36.9% (36.9%)
|
||
|
|
|
|
|
|
|
|
|
||
Technology
|
|
9,800
|
|
|
Reported market value
|
|
Tangible book value multiple
|
|
100.0% (100.0%)
|
|
Other invested assets
|
|
|
|
|
|
|
|
|
||
Total return swaps, net
|
|
(1,228
|
)
|
|
Discounted cash flow
|
|
Credit spreads
|
|
2.9% – 29.4% (19.3%)
|
|
Insurance-linked securities – longevity swaps
|
|
9,218
|
|
|
Discounted cash flow
|
|
Credit spreads
|
|
2.6% (2.6%)
|
|
Notes and loan receivables
|
|
131,176
|
|
|
Discounted cash flow
|
|
Credit spreads
|
|
4.2% – 24.4% (5.2%)
|
|
Notes and loan receivables
|
|
8,953
|
|
|
Discounted cash flow
|
|
Credit spreads
|
|
17.5% (17.5%)
|
|
|
|
|
|
Gross revenue/fair value
|
|
1.2 (1.2)
|
||||
Notes securitization
|
|
1,564
|
|
|
Discounted cash flow
|
|
Credit spreads
|
|
3.3% (3.3%)
|
|
Private equity – direct
|
|
5,019
|
|
|
Discounted cash flow and weighted market comparables
|
|
Net income multiple
|
|
8.6 (8.6)
|
|
|
|
|
|
|
Tangible book value multiple
|
|
2.0 (2.0)
|
|||
|
|
|
|
|
Recoverability of intangible assets
|
|
0% (0%)
|
|||
Private equity funds
|
|
11,064
|
|
|
Reported market value
|
|
Net asset value, as reported
|
|
100.0% (100.0%)
|
|
|
|
|
|
|
Market adjustments
|
|
-0.7% (-0.7%)
|
|||
Private equity – other
|
|
29,949
|
|
|
Discounted cash flow
|
|
Effective yield
|
|
5.8% (5.8%)
|
|
Funds held–directly managed
|
|
|
|
|
|
|
|
|
||
Other invested assets
|
|
4,540
|
|
|
Reported market value
|
|
Net asset value, as reported
|
|
100.0% (100.0%)
|
|
|
|
|
|
|
Market adjustments
|
|
0% (0%)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Fixed maturities and short-term investments
|
$
|
124,033
|
|
|
$
|
(90,334
|
)
|
|
$
|
(276,776
|
)
|
Equities
|
60,460
|
|
|
(14,850
|
)
|
|
(187,561
|
)
|
|||
Other invested assets
|
28,144
|
|
|
11,066
|
|
|
(1,835
|
)
|
|||
Funds held–directly managed
|
(5,612
|
)
|
|
(721
|
)
|
|
(6,323
|
)
|
|||
Total
|
$
|
207,025
|
|
|
$
|
(94,839
|
)
|
|
$
|
(472,495
|
)
|
•
|
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. Corporate securities also include real estate investment trusts, catastrophe bonds, longevity and mortality bonds and government guarantee corporate debt. 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 securities, 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.
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Net realized investment gains on fixed maturities and short-term investments
|
|
$
|
28,632
|
|
|
$
|
96,994
|
|
|
$
|
66,296
|
|
Net realized investment (losses) gains on equities
|
|
(4,052
|
)
|
|
157
|
|
|
137,609
|
|
|||
Net realized investment (losses) gains on other invested assets
|
|
(3,217
|
)
|
|
5,365
|
|
|
(33,317
|
)
|
|||
Net realized investment gains on funds held–directly managed
|
|
508
|
|
|
1,355
|
|
|
536
|
|
|||
Net realized investment gains
|
|
21,871
|
|
|
103,871
|
|
|
171,124
|
|
|||
Change in net unrealized investment gains or losses on fixed maturities and short-term investments
|
|
124,033
|
|
|
(90,334
|
)
|
|
(276,776
|
)
|
|||
Change in net unrealized investment gains or losses on equities
|
|
60,460
|
|
|
(14,850
|
)
|
|
(187,561
|
)
|
|||
Change in unrealized investment gains or losses on other invested assets
|
|
32,790
|
|
|
25,488
|
|
|
844
|
|
|||
Change in net unrealized investment gains or losses on funds held–directly managed
|
|
(5,567
|
)
|
|
(676
|
)
|
|
(6,163
|
)
|
|||
Net other realized and unrealized investment gains or losses
|
|
(1,096
|
)
|
|
2,767
|
|
|
1,053
|
|
|||
Change in net unrealized investment gains or losses
|
|
210,620
|
|
|
(77,605
|
)
|
|
(468,603
|
)
|
|||
Net realized and unrealized investment gains (losses)
|
|
$
|
232,491
|
|
|
$
|
26,266
|
|
|
$
|
(297,479
|
)
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Fixed maturities
|
|
$
|
382,676
|
|
|
$
|
395,831
|
|
|
$
|
425,541
|
|
Short-term investments and cash and cash equivalents
|
|
5,363
|
|
|
1,915
|
|
|
854
|
|
|||
Equities
|
|
(12
|
)
|
|
4,382
|
|
|
30,739
|
|
|||
Funds held and other
|
|
29,068
|
|
|
34,161
|
|
|
27,406
|
|
|||
Funds held–directly managed
|
|
7,742
|
|
|
9,993
|
|
|
11,676
|
|
|||
Investment expenses
|
|
(22,766
|
)
|
|
(35,418
|
)
|
|
(46,432
|
)
|
|||
Net investment income
|
|
$
|
402,071
|
|
|
$
|
410,864
|
|
|
$
|
449,784
|
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||
Receivable for securities sold
|
|
$
|
144,224
|
|
|
$
|
52,189
|
|
Payable for securities purchased
|
|
(181,991
|
)
|
|
(648,813
|
)
|
||
Net payable for securities purchased
|
|
$
|
(37,767
|
)
|
|
$
|
(596,624
|
)
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||
Current assets
|
|
$
|
906,085
|
|
|
$
|
698,835
|
|
Noncurrent assets
|
|
$
|
1,877,519
|
|
|
$
|
1,510,632
|
|
Current liabilities
|
|
$
|
553,219
|
|
|
$
|
372,677
|
|
Noncurrent liabilities
|
|
$
|
690,935
|
|
|
$
|
624,970
|
|
|
|
|
|
|
||||
|
|
For the year ended
|
||||||
|
|
December 31, 2017
|
|
December 31, 2016
|
||||
Revenues
|
|
$
|
130,333
|
|
|
$
|
24,646
|
|
Operating profit
|
|
$
|
190,613
|
|
|
$
|
(47,082
|
)
|
Net income
|
|
$
|
213,241
|
|
|
$
|
(37,059
|
)
|
|
|
Asset
derivatives
at fair value
|
|
Liability
derivatives
at fair value
|
|
Net derivatives
|
||||||||||
December 31, 2017
|
|
Fair value
|
|
Net notional
exposure
|
||||||||||||
Derivatives not designated as hedges
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange forward contracts
|
|
$
|
8,559
|
|
|
$
|
(20,328
|
)
|
|
$
|
(11,769
|
)
|
|
$
|
2,862,927
|
|
Futures contracts
|
|
3,367
|
|
|
—
|
|
|
3,367
|
|
|
917,696
|
|
||||
Insurance-linked securities
(1)
|
|
11,985
|
|
|
—
|
|
|
11,985
|
|
|
78,879
|
|
||||
Total return swaps
|
|
2,505
|
|
|
(3,269
|
)
|
|
(764
|
)
|
|
42,147
|
|
||||
Interest rate swaps
(2)
|
|
—
|
|
|
(12,298
|
)
|
|
(12,298
|
)
|
|
192,215
|
|
||||
TBAs
|
|
391
|
|
|
(591
|
)
|
|
(200
|
)
|
|
501,405
|
|
||||
Total derivatives not designated as hedges
|
|
$
|
26,807
|
|
|
$
|
(36,486
|
)
|
|
$
|
(9,679
|
)
|
|
|
|
|
Asset
derivatives at fair value |
|
Liability
derivatives at fair value |
|
Net derivatives
|
||||||||||
December 31, 2016
|
|
Fair value
|
|
Net notional
exposure |
||||||||||||
Derivatives not designated as hedges
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange forward contracts
|
|
$
|
5,263
|
|
|
$
|
(7,142
|
)
|
|
$
|
(1,879
|
)
|
|
$
|
1,929,033
|
|
Insurance-linked securities
(1)
|
|
10,130
|
|
|
(97
|
)
|
|
10,033
|
|
|
145,011
|
|
||||
Total return swaps
|
|
1,989
|
|
|
(3,217
|
)
|
|
(1,228
|
)
|
|
42,304
|
|
||||
Interest rate swaps
(2)
|
|
—
|
|
|
(13,403
|
)
|
|
(13,403
|
)
|
|
194,585
|
|
||||
TBAs
|
|
1,369
|
|
|
(185
|
)
|
|
1,184
|
|
|
386,500
|
|
||||
Total derivatives not designated as hedges
|
|
$
|
18,751
|
|
|
$
|
(24,044
|
)
|
|
$
|
(5.293
|
)
|
|
|
|
(1)
|
Insurance-linked securities include longevity swaps for which the notional amounts are not reflective of the overall potential exposure of the swaps. The net notional exposure above included the Company's probable maximum loss at December 31, 2016 and, for December 31, 2017, the Company's best estimate of the present value of future expected claims.
|
(2)
|
The Company enters into interest rate swaps to mitigate notional exposures on certain total return swaps and certain fixed maturities. The net notional exposure for interest rate swaps above relates to fixed maturities.
|
|
2017
|
|
2016
|
|
2015
|
||||||
Foreign exchange forward contracts
|
$
|
(41,776
|
)
|
|
$
|
(53,437
|
)
|
|
$
|
(29,217
|
)
|
Foreign currency option contracts
|
—
|
|
|
2,583
|
|
|
(3,472
|
)
|
|||
Total included in net foreign exchange losses
|
$
|
(41,776
|
)
|
|
$
|
(50,854
|
)
|
|
$
|
(32,689
|
)
|
Futures contracts
|
$
|
(11,683
|
)
|
|
$
|
(5,195
|
)
|
|
$
|
(32,004
|
)
|
Insurance-linked securities
|
(563
|
)
|
|
3,813
|
|
|
(1,556
|
)
|
|||
Total return swaps
|
464
|
|
|
(1,096
|
)
|
|
1,390
|
|
|||
Interest rate swaps
|
1,105
|
|
|
10,981
|
|
|
(8,101
|
)
|
|||
TBAs
|
4,742
|
|
|
6,366
|
|
|
2,877
|
|
|||
Other
|
—
|
|
|
—
|
|
|
2,493
|
|
|||
Total included in net realized and unrealized investment gains (losses)
|
$
|
(5,935
|
)
|
|
$
|
14,869
|
|
|
$
|
(34,901
|
)
|
Total derivatives not designated as hedges
|
$
|
(47,711
|
)
|
|
$
|
(35,985
|
)
|
|
$
|
(67,590
|
)
|
|
|
|
|
Gross
amounts
offset in the
balance sheet
|
|
Net amounts of
assets/liabilities
presented in the
balance sheet
|
|
Gross amounts not offset
in the balance sheet
|
|
|
||||||||||||||
December 31, 2017
|
|
Gross
amounts
recognized
(1)
|
|
Financial
instruments
|
|
Cash collateral
received/pledged
|
|
Net amount
|
||||||||||||||||
Total derivative assets
|
|
$
|
26,807
|
|
|
$
|
—
|
|
|
$
|
26,807
|
|
|
$
|
(1,142
|
)
|
|
$
|
(43,943
|
)
|
|
$
|
(18,278
|
)
|
Total derivative liabilities
|
|
$
|
(36,486
|
)
|
|
$
|
—
|
|
|
$
|
(36,486
|
)
|
|
$
|
1,142
|
|
|
$
|
25,389
|
|
|
$
|
(9,955
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total derivative assets
|
|
$
|
18,751
|
|
|
$
|
—
|
|
|
$
|
18,751
|
|
|
$
|
(794
|
)
|
|
$
|
(34,120
|
)
|
|
$
|
(16,163
|
)
|
Total derivative liabilities
|
|
$
|
(24,044
|
)
|
|
$
|
—
|
|
|
$
|
(24,044
|
)
|
|
$
|
794
|
|
|
$
|
22,923
|
|
|
$
|
(327
|
)
|
|
(1)
|
Amounts include all derivative instruments, irrespective of whether there is a legally enforceable master netting arrangement in place.
|
2017
|
|
Goodwill
|
|
Definite-
lived intangible
assets
|
|
Indefinite-
lived intangible
asset
|
|
Total
intangible assets
|
||||||||
Balance at January 1
|
|
$
|
456,380
|
|
|
$
|
99,742
|
|
|
$
|
7,350
|
|
|
$
|
107,092
|
|
Acquired during the year
|
|
—
|
|
|
75,583
|
|
|
2,205
|
|
|
77,788
|
|
||||
Intangible assets amortization
|
|
n/a
|
|
|
(24,646
|
)
|
|
n/a
|
|
|
(24,646
|
)
|
||||
Balance at December 31
|
|
$
|
456,380
|
|
|
$
|
150,679
|
|
|
$
|
9,555
|
|
|
$
|
160,234
|
|
|
|
|
|
|
|
|
|
|
||||||||
2016
|
|
Goodwill
|
|
Definite-
lived intangible
assets
|
|
Indefinite-
lived intangible
asset
|
|
Total
intangible assets
|
||||||||
Balance at January 1
|
|
$
|
456,380
|
|
|
$
|
125,661
|
|
|
$
|
7,350
|
|
|
$
|
133,011
|
|
Intangible assets amortization
|
|
n/a
|
|
|
(25,919
|
)
|
|
n/a
|
|
|
(25,919
|
)
|
||||
Balance at December 31
|
|
$
|
456,380
|
|
|
$
|
99,742
|
|
|
$
|
7,350
|
|
|
$
|
107,092
|
|
|
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
||||||||||||||||
|
|
Gross carrying
value
|
|
Accumulated
amortization
|
Net carrying value
|
|
Gross carrying
value
|
|
Accumulated
amortization
|
Net carrying value
|
||||||||||||
Definite-lived intangible assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unpaid losses and loss expenses
|
|
$
|
191,196
|
|
|
$
|
168,581
|
|
$
|
22,615
|
|
|
$
|
191,196
|
|
|
$
|
157,842
|
|
$
|
33,354
|
|
Renewal rights
|
|
48,163
|
|
|
27,909
|
|
20,254
|
|
|
48,163
|
|
|
23,404
|
|
24,759
|
|
||||||
Customer relationships
|
|
63,408
|
|
|
29,353
|
|
34,055
|
|
|
63,408
|
|
|
21,779
|
|
41,629
|
|
||||||
Life VOBA
|
|
75,583
|
|
|
1,828
|
|
73,755
|
|
|
—
|
|
|
—
|
|
—
|
|
||||||
Total definite-lived intangible assets
|
|
$
|
378,350
|
|
|
$
|
227,671
|
|
$
|
150,679
|
|
|
$
|
302,767
|
|
|
$
|
203,025
|
|
$
|
99,742
|
|
Indefinite-lived intangible asset:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Insurance licenses
|
|
9,555
|
|
|
n/a
|
|
9,555
|
|
|
7,350
|
|
|
n/a
|
|
7,350
|
|
||||||
Total intangible assets
|
|
$
|
387,905
|
|
|
$
|
227,671
|
|
$
|
160,234
|
|
|
$
|
310,117
|
|
|
$
|
203,025
|
|
$
|
107,092
|
|
|
|
Amount
|
||
P&C segment
|
$
|
241,530
|
|
Specialty segment
|
196,047
|
|
|
Life and Health segment
|
18,803
|
|
|
Total
|
$
|
456,380
|
|
Year
|
|
Amount
|
||
2018
|
|
$
|
23,351
|
|
2019
|
|
19,946
|
|
|
2020
|
|
12,395
|
|
|
2021
|
|
8,406
|
|
|
2022
|
|
8,499
|
|
|
Total
|
|
$
|
72,597
|
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||
Case reserves
|
|
$
|
4,176,879
|
|
|
$
|
3,883,926
|
|
ACRs
|
|
176,369
|
|
|
166,913
|
|
||
IBNR reserves
|
|
5,357,209
|
|
|
4,934,595
|
|
||
Non-life reserves
|
|
$
|
9,710,457
|
|
|
$
|
8,985,434
|
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Gross liability at beginning of year
|
|
$
|
8,985,434
|
|
|
$
|
9,064,711
|
|
|
$
|
9,745,806
|
|
Reinsurance recoverable at beginning of year
|
|
266,742
|
|
|
189,234
|
|
|
214,349
|
|
|||
Net liability at beginning of year
|
|
8,718,692
|
|
|
8,875,477
|
|
|
9,531,457
|
|
|||
Net incurred losses related to:
|
|
|
|
|
|
|
||||||
Current year
|
|
3,022,926
|
|
|
2,997,394
|
|
|
3,023,704
|
|
|||
Prior years
|
|
(448,158
|
)
|
|
(676,574
|
)
|
|
(830,705
|
)
|
|||
|
|
2,574,768
|
|
|
2,320,820
|
|
|
2,192,999
|
|
|||
Change in Paris Re Reserve Agreement
|
|
(3,481
|
)
|
|
5,518
|
|
|
(8,771
|
)
|
|||
Net paid losses related to:
|
|
|
|
|
|
|
||||||
Current year
|
|
396,927
|
|
|
331,785
|
|
|
250,720
|
|
|||
Prior years
|
|
2,278,603
|
|
|
1,931,131
|
|
|
2,171,883
|
|
|||
|
|
2,675,530
|
|
|
2,262,916
|
|
|
2,422,603
|
|
|||
Effects of foreign exchange rate changes
|
|
407,328
|
|
|
(220,207
|
)
|
|
(417,605
|
)
|
|||
Net liability at end of year
|
|
9,021,777
|
|
|
8,718,692
|
|
|
8,875,477
|
|
|||
Reinsurance recoverable at end of year
|
|
688,680
|
|
|
266,742
|
|
|
189,234
|
|
|||
Gross liability at end of year
|
|
$
|
9,710,457
|
|
|
$
|
8,985,434
|
|
|
$
|
9,064,711
|
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
P&C
|
|
$
|
204,172
|
|
|
$
|
389,672
|
|
|
$
|
473,564
|
|
Specialty
|
|
243,986
|
|
|
286,902
|
|
|
357,141
|
|
|||
Total net favorable prior year loss development
|
|
$
|
448,158
|
|
|
$
|
676,574
|
|
|
$
|
830,705
|
|
|
2017
|
|
2016
|
||||
Gross liability at beginning of period
|
$
|
1,984,096
|
|
|
$
|
2,051,935
|
|
Reinsurance recoverable at beginning of period
|
31,372
|
|
|
42,773
|
|
||
Net liability at beginning of period
|
1,952,724
|
|
|
2,009,162
|
|
||
Liability acquired related to the acquisition of Aurigen
|
67,916
|
|
|
—
|
|
||
Net incurred losses
|
1,266,214
|
|
|
927,271
|
|
||
Net losses paid
|
(1,017,673
|
)
|
|
(844,156
|
)
|
||
Effects of foreign exchange rate changes
|
180,688
|
|
|
(139,553
|
)
|
||
Net liability at end of period
|
2,449,869
|
|
|
1,952,724
|
|
||
Reinsurance recoverable at end of period
|
40,605
|
|
|
31,372
|
|
||
Gross liability at end of period
|
$
|
2,490,474
|
|
|
$
|
1,984,096
|
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Non-life
|
|
$
|
2,574,768
|
|
|
$
|
2,320,820
|
|
|
$
|
2,192,999
|
|
Life and Health
|
|
1,266,214
|
|
|
927,271
|
|
|
964,421
|
|
|||
Losses and loss expenses
|
|
$
|
3,840,982
|
|
|
$
|
3,248,091
|
|
|
$
|
3,157,420
|
|
|
|
|
December 31, 2017
|
||
Total outstanding liability for unpaid claims
|
|
|
||
Property
|
|
$
|
1,437,273
|
|
Casualty
|
|
4,545,970
|
|
|
Specialty
|
|
2,475,382
|
|
|
Total outstanding liabilities for unpaid claims
|
|
$
|
8,458,625
|
|
Other liabilities
(1)
|
|
563,152
|
|
|
Net liability at end of year
|
|
$
|
9,021,777
|
|
|
|
|
|
|
Reinsurance recoverable on unpaid claims
|
|
|
||
Property
|
|
$
|
453,656
|
|
Casualty
|
|
40,920
|
|
|
Specialty
|
|
194,105
|
|
|
Reinsurance recoverable at end of year
|
|
$
|
688,680
|
|
Gross liability at end of year
|
|
$
|
9,710,457
|
|
|
(1)
|
Other liabilities included in the reconciliation relate primarily to the guaranteed reserves, described above, and unallocated loss expenses.
|
|
|
Premiums
Written
|
|
Premiums
Earned
|
|
Losses and Loss
Expenses
|
||||||
2017
|
|
|
|
|
|
|
||||||
Assumed
|
|
$
|
5,587,894
|
|
|
$
|
5,471,546
|
|
|
$
|
4,458,290
|
|
Ceded
|
|
467,968
|
|
|
446,565
|
|
|
617,308
|
|
|||
Net
|
|
$
|
5,119,926
|
|
|
$
|
5,024,981
|
|
|
$
|
3,840,982
|
|
|
|
|
|
|
|
|
||||||
2016
|
|
|
|
|
|
|
||||||
Assumed
|
|
$
|
5,356,942
|
|
|
$
|
5,343,831
|
|
|
$
|
3,412,648
|
|
Ceded
|
|
403,472
|
|
|
374,235
|
|
|
164,557
|
|
|||
Net
|
|
$
|
4,953,470
|
|
|
$
|
4,969,596
|
|
|
$
|
3,248,091
|
|
|
|
|
|
|
|
|
||||||
2015
|
|
|
|
|
|
|
||||||
Assumed
|
|
$
|
5,547,525
|
|
|
$
|
5,570,321
|
|
|
$
|
3,215,665
|
|
Ceded
|
|
317,977
|
|
|
301,143
|
|
|
58,245
|
|
|||
Net
|
|
$
|
5,229,548
|
|
|
$
|
5,269,178
|
|
|
$
|
3,157,420
|
|
|
|
|
|
December 31, 2017
|
|
December 31, 2016
|
|
|
|
|
|
|
|||||||||||||||
Issuer
|
|
Commitment
|
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
|
Interest rate
|
|
Issue Date
|
|
Redemption or Maturity Date
|
|||||||||||
PartnerRe Finance A LLC
|
|
$
|
250,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
6.875
|
%
|
|
May 2008
|
|
redeemed November 1, 2016
|
PartnerRe Finance B LLC
|
|
500,000
|
|
|
500,000
|
|
|
534,179
|
|
|
500,000
|
|
|
547,145
|
|
|
5.500
|
%
|
|
March 2010
|
|
June 1, 2020
|
|||||
PartnerRe Ireland Finance DAC
|
|
€
|
750,000
|
|
|
884,824
|
|
|
882,717
|
|
|
773,883
|
|
|
753,499
|
|
|
1.250
|
%
|
|
September 2016
|
|
September 15, 2026
|
||||
|
|
|
|
$
|
1,384,824
|
|
|
$
|
1,416,896
|
|
|
$
|
1,273,883
|
|
|
$
|
1,300,644
|
|
|
|
|
|
|
|
|||
PartnerRe Finance II Inc.
|
|
$
|
63,384
|
|
|
$
|
70,989
|
|
|
61,271
|
|
|
$
|
70,989
|
|
|
$
|
66,817
|
|
|
see Note 1
|
|
November 2006
|
|
see Note 1
|
|
|
Series F
|
|
Series G
|
|
Series H
|
|
Series I
|
|
Total
|
||||||||||
Date of issuance
|
February 2013
|
|
|
May 2016
|
|
|
May 2016
|
|
|
May 2016
|
|
|
|
||||||
Number of preferred shares outstanding
|
2,679,426
|
|
|
6,415,264
|
|
|
11,753,798
|
|
|
7,320,574
|
|
|
28,169,062
|
|
|||||
Annual dividend rate
|
5.875
|
%
|
|
6.5
|
%
|
|
7.25
|
%
|
|
5.875
|
%
|
|
|
||||||
Underwriting discounts and commissions
(1)
|
$
|
2.3
|
|
|
$
|
5.4
|
|
|
$
|
9.5
|
|
|
$
|
6.4
|
|
|
$
|
23.6
|
|
Aggregate liquidation value, at $25 per share
|
$
|
67.0
|
|
|
$
|
160.4
|
|
|
$
|
293.8
|
|
|
$
|
183.0
|
|
|
$
|
704.2
|
|
|
(1)
|
Underwriting discounts and commissions represent the original amounts paid to issue Series D, E and F shares. These amounts were reallocated on a pro-rata basis between the previously issued and the newly issued shares as a result of the share exchange in May 2016 for $nil consideration described below.
|
|
2016
|
|
2015
|
||||
Balance at January 1
|
$
|
2,450
|
|
|
$
|
55,501
|
|
Net income attributable to noncontrolling interests
|
—
|
|
|
2,769
|
|
||
Distribution to noncontrolling interests
|
(2,450
|
)
|
|
(55,820
|
)
|
||
Balance at December 31
|
$
|
—
|
|
|
$
|
2,450
|
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
PartnerRe Bermuda
|
|
$
|
(69
|
)
|
|
$
|
531
|
|
|
$
|
444
|
|
PartnerRe Europe
|
|
149
|
|
|
61
|
|
|
79
|
|
|||
PartnerRe U.S.
|
|
24
|
|
|
72
|
|
|
219
|
|
|||
PartnerRe Asia
|
|
15
|
|
|
43
|
|
|
4
|
|
|
|
PartnerRe Bermuda
|
|
PartnerRe Europe
|
|
PartnerRe U.S.
|
|
PartnerRe Asia
|
||||||||||||||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||
Required statutory capital and surplus
|
|
$
|
1,811
|
|
|
$
|
1,578
|
|
|
$
|
1,636
|
|
|
$
|
1,431
|
|
|
$
|
662
|
|
|
$
|
672
|
|
|
$
|
57
|
|
|
$
|
49
|
|
Actual statutory capital and surplus
|
|
$
|
3,781
|
|
|
$
|
4,159
|
|
|
$
|
2,234
|
|
|
$
|
1,655
|
|
|
$
|
1,336
|
|
|
$
|
1,464
|
|
|
$
|
251
|
|
|
$
|
238
|
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Current income tax (benefit) expense
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
(10,031
|
)
|
|
$
|
2,798
|
|
|
$
|
81,066
|
|
Non U.S.
|
|
76,425
|
|
|
26,913
|
|
|
95,720
|
|
|||
Total current income tax expense
|
|
$
|
66,394
|
|
|
$
|
29,711
|
|
|
$
|
176,786
|
|
Deferred income tax expense (benefit)
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
5,538
|
|
|
$
|
10,070
|
|
|
$
|
(59,624
|
)
|
Non U.S.
|
|
(58,702
|
)
|
|
(127
|
)
|
|
(44,125
|
)
|
|||
Total deferred income tax
(benefit) expense
|
|
$
|
(53,164
|
)
|
|
$
|
9,943
|
|
|
$
|
(103,749
|
)
|
Unrecognized tax (benefit) expense
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Non U.S.
|
|
(2,872
|
)
|
|
(13,731
|
)
|
|
6,627
|
|
|||
Total unrecognized tax (benefit) expense
|
|
$
|
(2,872
|
)
|
|
$
|
(13,731
|
)
|
|
$
|
6,627
|
|
Total income tax (benefit) expense
|
|
|
|
|
|
|
||||||
U.S.
|
|
$
|
(4,493
|
)
|
|
$
|
12,868
|
|
|
$
|
21,442
|
|
Non U.S.
|
|
14,851
|
|
|
13,055
|
|
|
58,222
|
|
|||
Total income tax expense
|
|
$
|
10,358
|
|
|
$
|
25,923
|
|
|
$
|
79,664
|
|
|
|
2017
|
|
2016
|
|
2015
|
|||
Domestic (Bermuda)
|
|
82,219
|
|
|
334,559
|
|
|
(63,603
|
)
|
Foreign
|
|
192,160
|
|
|
138,672
|
|
|
250,417
|
|
Income before taxes
|
|
274,379
|
|
|
473,231
|
|
|
186,814
|
|
Reconciliation of effective tax rate (% of income before taxes)
|
|
|
|
|
|
|
|||
Expected tax rate
|
|
0.0
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
Foreign taxes at local expected tax rates
|
|
11.4
|
|
|
6.9
|
|
|
58.3
|
|
Impact of foreign exchange
(losses) gains
|
|
(3.2
|
)
|
|
2.2
|
|
|
1.1
|
|
Unrecognized tax (benefit) expense
|
|
(1.0
|
)
|
|
(2.9
|
)
|
|
3.5
|
|
Tax-exempt income and expenses not deductible
|
|
(5.2
|
)
|
|
(3.2
|
)
|
|
(8.0
|
)
|
Foreign branch tax
|
|
(24.6
|
)
|
|
0.3
|
|
|
(26.8
|
)
|
Valuation allowance
|
|
24.8
|
|
|
0.3
|
|
|
15.2
|
|
Other
|
|
1.6
|
|
|
1.9
|
|
|
(0.7
|
)
|
Actual tax rate
|
|
3.8
|
%
|
|
5.5
|
%
|
|
42.6
|
%
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||
Net tax assets
|
|
$
|
133,169
|
|
|
$
|
194,170
|
|
Net tax liabilities
|
|
(154,947
|
)
|
|
(166,113
|
)
|
||
Net tax (liabilities) assets
|
|
$
|
(21,778
|
)
|
|
$
|
28,057
|
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||
Net current tax assets
|
|
53,900
|
|
|
145,831
|
|
||
Net deferred tax liabilities
|
|
(67,737
|
)
|
|
(108,084
|
)
|
||
Net unrecognized tax benefit
|
|
(7,941
|
)
|
|
(9,690
|
)
|
||
Net tax (liabilities) assets
|
|
$
|
(21,778
|
)
|
|
$
|
28,057
|
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||
Deferred tax assets
|
|
|
|
|
||||
Discounting of loss reserves and adjustment to life policy reserves
|
|
$
|
34,806
|
|
|
$
|
49,029
|
|
Foreign tax credit carryforwards
|
|
163,134
|
|
|
80,390
|
|
||
Tax loss carryforwards
|
|
36,405
|
|
|
35,708
|
|
||
Unearned premiums
|
|
14,425
|
|
|
25,518
|
|
||
Other deferred tax assets
|
|
31,566
|
|
|
24,012
|
|
||
|
|
280,336
|
|
|
214,657
|
|
||
Valuation allowance
|
|
(185,615
|
)
|
|
(91,819
|
)
|
||
Deferred tax assets
|
|
94,721
|
|
|
122,838
|
|
||
Deferred tax liabilities
|
|
|
|
|
||||
Deferred acquisition costs
|
|
29,204
|
|
|
50,313
|
|
||
Goodwill and other intangibles
|
|
70,674
|
|
|
79,606
|
|
||
Equalization reserves
|
|
27,252
|
|
|
39,812
|
|
||
Unrealized appreciation and timing differences on investments
|
|
13,361
|
|
|
5,946
|
|
||
Unrealized appreciation and timing differences on foreign exchange revaluations
|
|
13,413
|
|
|
49,645
|
|
||
Other deferred tax liabilities
|
|
8,554
|
|
|
5,600
|
|
||
Deferred tax liabilities
|
|
162,458
|
|
|
230,922
|
|
||
Net deferred tax liabilities
|
|
$
|
(67,737
|
)
|
|
$
|
(108,084
|
)
|
|
|
January 1,
2017
|
|
Changes in tax
positions taken
during a prior
year
|
|
Tax positions
taken
during the
current year
|
|
Change as a
result of a lapse
of the statute
of limitations
|
|
Impact of the
change in
foreign currency
exchange rates
|
|
December 31,
2017
|
||||||||||||
Unrecognized tax benefits that, if recognized, would impact the effective tax rate
|
|
$
|
8,722
|
|
|
$
|
281
|
|
|
$
|
589
|
|
|
$
|
(4,115
|
)
|
|
$
|
983
|
|
|
$
|
6,460
|
|
Interest and penalties recognized on the above
|
|
968
|
|
|
900
|
|
|
6
|
|
|
(534
|
)
|
|
141
|
|
|
1,481
|
|
||||||
Total unrecognized tax benefits, including interest and penalties
|
|
$
|
9,690
|
|
|
$
|
1,181
|
|
|
$
|
595
|
|
|
$
|
(4,649
|
)
|
|
$
|
1,124
|
|
|
$
|
7,941
|
|
|
|
January 1,
2016
|
|
Changes in tax
positions taken during a prior year |
|
Tax positions
taken during the current year |
|
Change as a
result of a lapse of the statute of limitations |
|
Impact of the
change in foreign currency exchange rates |
|
December 31,
2016
|
||||||||||||
Unrecognized tax benefits that, if recognized, would impact the effective tax rate
|
|
$
|
22,255
|
|
|
$
|
(13,728
|
)
|
|
$
|
688
|
|
|
$
|
(112
|
)
|
|
$
|
(381
|
)
|
|
$
|
8,722
|
|
Interest and penalties recognized on the above
|
|
1,583
|
|
|
(573
|
)
|
|
5
|
|
|
(11
|
)
|
|
(36
|
)
|
|
968
|
|
||||||
Total unrecognized tax benefits, including interest and penalties
|
|
$
|
23,838
|
|
|
$
|
(14,301
|
)
|
|
$
|
693
|
|
|
$
|
(123
|
)
|
|
$
|
(417
|
)
|
|
$
|
9,690
|
|
|
|
January 1,
2015 |
|
Changes in tax
positions taken during a prior year |
|
Tax positions
taken during the current year |
|
Change as a
result of a lapse of the statute of limitations |
|
Impact of the
change in foreign currency exchange rates |
|
December 31,
2015 |
||||||||||||
Unrecognized tax benefits that, if recognized, would impact the effective tax rate
|
|
$
|
18,266
|
|
|
$
|
29
|
|
|
$
|
8,683
|
|
|
$
|
(3,039
|
)
|
|
$
|
(1,684
|
)
|
|
$
|
22,255
|
|
Interest and penalties recognized on the above
|
|
566
|
|
|
716
|
|
|
261
|
|
|
(24
|
)
|
|
64
|
|
|
1,583
|
|
||||||
Total unrecognized tax benefits, including interest and penalties
|
|
$
|
18,832
|
|
|
$
|
745
|
|
|
$
|
8,944
|
|
|
$
|
(3,063
|
)
|
|
$
|
(1,620
|
)
|
|
$
|
23,838
|
|
|
|
2017
|
|
2016
|
||||
Funded status
|
|
|
|
|
||||
Unfunded pension obligation at beginning of year
|
|
$
|
57,941
|
|
|
$
|
50,405
|
|
Change in pension obligation
|
|
|
|
|
||||
Service cost
|
|
7,510
|
|
|
6,906
|
|
||
Interest cost
|
|
1,295
|
|
|
1,501
|
|
||
Plan participants’ contributions
|
|
2,905
|
|
|
2,704
|
|
||
Actuarial loss
|
|
1,483
|
|
|
8,467
|
|
||
Plan amendments
|
|
—
|
|
|
85
|
|
||
Benefits paid
|
|
(2,097
|
)
|
|
1,756
|
|
||
Foreign currency adjustments
|
|
7,489
|
|
|
(5,965
|
)
|
||
Change in pension obligation
|
|
18,585
|
|
|
15,454
|
|
||
Change in fair value of plan assets
|
|
|
|
|
||||
Actual return on plan assets
|
|
1,131
|
|
|
2,011
|
|
||
Employer contributions
|
|
5,361
|
|
|
5,319
|
|
||
Plan participants’ contributions
|
|
2,905
|
|
|
2,704
|
|
||
Benefits paid
|
|
(2,097
|
)
|
|
1,756
|
|
||
Foreign currency adjustments
|
|
4,884
|
|
|
(3,872
|
)
|
||
Change in fair value of plan assets
|
|
12,184
|
|
|
7,918
|
|
||
Funded status
|
|
|
|
|
||||
Unfunded pension obligation at end of year
|
|
$
|
64,342
|
|
|
$
|
57,941
|
|
Additional information:
|
|
|
|
|
||||
Projected benefit obligation at end of year
|
|
$
|
185,154
|
|
|
$
|
166,569
|
|
Accumulated pension obligation at end of year
|
|
172,806
|
|
|
156,803
|
|
||
Fair value of plan assets at end of year
|
|
120,812
|
|
|
108,628
|
|
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||
|
|
Pension
obligation
|
|
Net periodic
benefit cost
|
|
Pension
obligation
|
|
Net periodic
benefit cost
|
|
Pension
obligation
|
|
Net periodic
benefit cost
|
||||||
Discount rate
|
|
0.75
|
%
|
|
0.75
|
%
|
|
0.75
|
%
|
|
1.00
|
%
|
|
1.00
|
%
|
|
1.25
|
%
|
Expected return on plan assets
|
|
—
|
|
|
0.75
|
%
|
|
—
|
|
|
1.00
|
%
|
|
—
|
|
|
1.25
|
%
|
Rate of compensation increase
|
|
2.25
|
%
|
|
2.00
|
%
|
|
2.00
|
%
|
|
2.25
|
%
|
|
2.25
|
%
|
|
2.25
|
%
|
Year
|
|
Amount
|
||
2018
|
|
$
|
4,751
|
|
2019
|
|
4,657
|
|
|
2020
|
|
4,666
|
|
|
2021
|
|
5,754
|
|
|
2022
|
|
5,721
|
|
|
2023 to 2027
|
|
36,040
|
|
Year
|
Amount
|
||
2018
|
$
|
17,195
|
|
2019
|
11,247
|
|
|
2020
|
9,277
|
|
|
2021
|
9,256
|
|
|
2022
|
8,895
|
|
|
2023-2029
|
38,947
|
|
|
Total future minimum rental payments
|
$
|
94,817
|
|
|
|
||
Total future sub-lease rental income through 2019
|
$
|
2,556
|
|
|
P&C
segment |
|
Specialty
segment |
|
Total
Non-life |
|
Life
and Health segment |
|
Corporate
and Other
|
|
Total
|
||||||||||||
Gross premiums written
|
$
|
2,255
|
|
|
$
|
1,934
|
|
|
$
|
4,189
|
|
|
$
|
1,399
|
|
|
$
|
—
|
|
|
$
|
5,588
|
|
Net premiums written
|
$
|
1,996
|
|
|
$
|
1,780
|
|
|
$
|
3,776
|
|
|
$
|
1,344
|
|
|
$
|
—
|
|
|
$
|
5,120
|
|
Increase in unearned premiums
|
(33
|
)
|
|
(55
|
)
|
|
(88
|
)
|
|
(7
|
)
|
|
—
|
|
|
(95
|
)
|
||||||
Net premiums earned
|
$
|
1,963
|
|
|
$
|
1,725
|
|
|
$
|
3,688
|
|
|
$
|
1,337
|
|
|
$
|
—
|
|
|
$
|
5,025
|
|
Losses and loss expenses
|
(1,620
|
)
|
|
(955
|
)
|
|
(2,575
|
)
|
|
(1,266
|
)
|
|
—
|
|
|
(3,841
|
)
|
||||||
Acquisition costs
|
(495
|
)
|
|
(489
|
)
|
|
(984
|
)
|
|
(136
|
)
|
|
—
|
|
|
(1,120
|
)
|
||||||
Technical result
|
$
|
(152
|
)
|
|
$
|
281
|
|
|
$
|
129
|
|
|
$
|
(65
|
)
|
|
$
|
—
|
|
|
$
|
64
|
|
Other (loss) income
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
14
|
|
|
2
|
|
|
15
|
|
||||||
Other expenses
|
(71
|
)
|
|
(33
|
)
|
|
(104
|
)
|
|
(61
|
)
|
|
(183
|
)
|
|
(348
|
)
|
||||||
Underwriting result
|
(223
|
)
|
|
247
|
|
|
$
|
24
|
|
|
$
|
(112
|
)
|
|
n/a
|
|
|
$
|
(269
|
)
|
|||
Net investment income
|
|
|
|
|
|
|
60
|
|
|
342
|
|
|
402
|
|
|||||||||
Allocated underwriting result
|
|
|
|
|
|
|
$
|
(52
|
)
|
|
n/a
|
|
|
n/a
|
|
||||||||
Net realized and unrealized investment gains
|
|
|
|
|
|
|
|
|
232
|
|
|
232
|
|
||||||||||
Interest expense
|
|
|
|
|
|
|
|
|
(42
|
)
|
|
(42
|
)
|
||||||||||
Loss on redemption of debt
|
|
|
|
|
|
|
|
|
(2
|
)
|
|
(2
|
)
|
||||||||||
Amortization of intangible assets
|
|
|
|
|
|
|
|
|
(25
|
)
|
|
(25
|
)
|
||||||||||
Net foreign exchange losses
|
|
|
|
|
|
|
|
|
(108
|
)
|
|
(108
|
)
|
||||||||||
Income tax expense
|
|
|
|
|
|
|
|
|
(10
|
)
|
|
(10
|
)
|
||||||||||
Interest in earnings of equity method investments
|
|
|
|
|
|
|
|
|
86
|
|
|
86
|
|
||||||||||
Net income
|
|
|
|
|
|
|
|
|
n/a
|
|
|
$
|
264
|
|
|||||||||
Loss ratio
(1)
|
82.6
|
%
|
|
55.4
|
%
|
|
69.8
|
%
|
|
|
|
|
|
|
|||||||||
Acquisition ratio
(2)
|
25.2
|
|
|
28.4
|
|
|
26.7
|
|
|
|
|
|
|
|
|||||||||
Technical ratio
(3)
|
107.8
|
%
|
|
83.8
|
%
|
|
96.5
|
%
|
|
|
|
|
|
|
|||||||||
Other expense ratio
(4)
|
3.6
|
%
|
|
1.9
|
%
|
|
2.8
|
|
|
|
|
|
|
|
|||||||||
Combined ratio
(5)
|
111.4
|
%
|
|
85.7
|
%
|
|
99.3
|
%
|
|
|
|
|
|
|
|
|
P&C
segment |
|
Specialty
segment |
|
Total
Non-life
|
|
Life
and Health
segment
|
|
Corporate
and Other
|
|
Total
|
||||||||||||
Gross premiums written
|
$
|
2,269
|
|
|
$
|
1,920
|
|
|
$
|
4,189
|
|
|
$
|
1,168
|
|
|
$
|
—
|
|
|
$
|
5,357
|
|
Net premiums written
|
$
|
2,061
|
|
|
$
|
1,776
|
|
|
$
|
3,837
|
|
|
$
|
1,117
|
|
|
$
|
—
|
|
|
$
|
4,954
|
|
Decrease (increase) in unearned premiums
|
25
|
|
|
(9
|
)
|
|
16
|
|
|
—
|
|
|
—
|
|
|
16
|
|
||||||
Net premiums earned
|
$
|
2,086
|
|
|
$
|
1,767
|
|
|
$
|
3,853
|
|
|
$
|
1,117
|
|
|
$
|
—
|
|
|
$
|
4,970
|
|
Losses and loss expenses
|
(1,248
|
)
|
|
(1,073
|
)
|
|
(2,321
|
)
|
|
(927
|
)
|
|
—
|
|
|
(3,248
|
)
|
||||||
Acquisition costs
|
(556
|
)
|
|
(500
|
)
|
|
(1,056
|
)
|
|
(131
|
)
|
|
—
|
|
|
(1,187
|
)
|
||||||
Technical result
|
$
|
282
|
|
|
$
|
194
|
|
|
$
|
476
|
|
|
$
|
59
|
|
|
$
|
—
|
|
|
$
|
535
|
|
Other income (loss)
|
3
|
|
|
(1
|
)
|
|
2
|
|
|
10
|
|
|
3
|
|
|
15
|
|
||||||
Other expenses
|
(141
|
)
|
|
(88
|
)
|
|
(229
|
)
|
|
(66
|
)
|
|
(177
|
)
|
|
(472
|
)
|
||||||
Underwriting result
|
144
|
|
|
105
|
|
|
$
|
249
|
|
|
$
|
3
|
|
|
n/a
|
|
|
$
|
78
|
|
|||
Net investment income
|
|
|
|
|
|
|
58
|
|
|
353
|
|
|
411
|
|
|||||||||
Allocated underwriting result
|
|
|
|
|
|
|
$
|
61
|
|
|
n/a
|
|
|
n/a
|
|
||||||||
Net realized and unrealized investment gains
|
|
|
|
|
|
|
|
|
26
|
|
|
26
|
|
||||||||||
Interest expense
|
|
|
|
|
|
|
|
|
(49
|
)
|
|
(49
|
)
|
||||||||||
Loss on redemption of debt
|
|
|
|
|
|
|
|
|
(22
|
)
|
|
(22
|
)
|
||||||||||
Amortization of intangible assets
|
|
|
|
|
|
|
|
|
(26
|
)
|
|
(26
|
)
|
||||||||||
Net foreign exchange gains
|
|
|
|
|
|
|
|
|
78
|
|
|
78
|
|
||||||||||
Income tax expense
|
|
|
|
|
|
|
|
|
(26
|
)
|
|
(26
|
)
|
||||||||||
Interest in losses of equity method investments
|
|
|
|
|
|
|
|
|
(23
|
)
|
|
(23
|
)
|
||||||||||
Net income
|
|
|
|
|
|
|
|
|
n/a
|
|
|
$
|
447
|
|
|||||||||
Loss ratio
|
59.8
|
%
|
|
60.8
|
%
|
|
60.3
|
%
|
|
|
|
|
|
|
|||||||||
Acquisition ratio
|
26.7
|
|
|
28.3
|
|
|
27.4
|
|
|
|
|
|
|
|
|||||||||
Technical ratio
|
86.5
|
%
|
|
89.1
|
%
|
|
87.7
|
%
|
|
|
|
|
|
|
|||||||||
Other expense ratio
|
6.7
|
%
|
|
4.9
|
%
|
|
5.9
|
|
|
|
|
|
|
|
|||||||||
Combined ratio
|
93.2
|
%
|
|
94.0
|
%
|
|
93.6
|
%
|
|
|
|
|
|
|
|
P&C
segment |
|
Specialty
segment |
|
Total
Non-life |
|
Life
and Health segment |
|
Corporate
and Other |
|
Total
|
||||||||||||
Gross premiums written
|
$
|
2,371
|
|
|
$
|
1,906
|
|
|
$
|
4,277
|
|
|
$
|
1,271
|
|
|
$
|
—
|
|
|
$
|
5,548
|
|
Net premiums written
|
$
|
2,236
|
|
|
$
|
1,786
|
|
|
$
|
4,022
|
|
|
$
|
1,208
|
|
|
$
|
—
|
|
|
$
|
5,230
|
|
Decrease in unearned premiums
|
4
|
|
|
34
|
|
|
$
|
38
|
|
|
1
|
|
|
—
|
|
|
$
|
39
|
|
||||
Net premiums earned
|
$
|
2,240
|
|
|
$
|
1,820
|
|
|
$
|
4,060
|
|
|
$
|
1,209
|
|
|
$
|
—
|
|
|
$
|
5,269
|
|
Losses and loss expenses
|
(1,129
|
)
|
|
(1,064
|
)
|
|
(2,193
|
)
|
|
(964
|
)
|
|
—
|
|
|
(3,157
|
)
|
||||||
Acquisition costs
|
(570
|
)
|
|
(494
|
)
|
|
(1,064
|
)
|
|
(153
|
)
|
|
—
|
|
|
(1,217
|
)
|
||||||
Technical result
|
$
|
541
|
|
|
$
|
262
|
|
|
$
|
803
|
|
|
$
|
92
|
|
|
$
|
—
|
|
|
$
|
895
|
|
Other income
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
3
|
|
|
9
|
|
||||||
Other expenses
|
(137
|
)
|
|
(82
|
)
|
|
(219
|
)
|
|
(63
|
)
|
|
(509
|
)
|
|
(791
|
)
|
||||||
Underwriting result
|
404
|
|
|
180
|
|
|
$
|
584
|
|
|
$
|
35
|
|
|
n/a
|
|
|
$
|
113
|
|
|||
Net investment income
|
|
|
|
|
|
|
59
|
|
|
391
|
|
|
450
|
|
|||||||||
Allocated underwriting result
|
|
|
|
|
|
|
$
|
94
|
|
|
n/a
|
|
|
n/a
|
|
||||||||
Net realized and unrealized investment losses
|
|
|
|
|
|
|
|
|
(297
|
)
|
|
(297
|
)
|
||||||||||
Interest expense
|
|
|
|
|
|
|
|
|
(49
|
)
|
|
(49
|
)
|
||||||||||
Amortization of intangible assets
|
|
|
|
|
|
|
|
|
(27
|
)
|
|
(27
|
)
|
||||||||||
Net foreign exchange losses
|
|
|
|
|
|
|
|
|
(9
|
)
|
|
(9
|
)
|
||||||||||
Income tax expense
|
|
|
|
|
|
|
|
|
(80
|
)
|
|
(80
|
)
|
||||||||||
Interest in earnings of equity method investments
|
|
|
|
|
|
|
|
|
6
|
|
|
6
|
|
||||||||||
Net income
|
|
|
|
|
|
|
|
|
n/a
|
|
|
$
|
107
|
|
|||||||||
Loss ratio
|
50.4
|
%
|
|
58.5
|
%
|
|
54.0
|
%
|
|
|
|
|
|
|
|||||||||
Acquisition ratio
|
25.4
|
|
|
27.1
|
|
|
26.2
|
|
|
|
|
|
|
|
|||||||||
Technical ratio
|
75.8
|
%
|
|
85.6
|
%
|
|
80.2
|
%
|
|
|
|
|
|
|
|||||||||
Other expense ratio
|
6.2
|
%
|
|
4.5
|
%
|
|
5.4
|
|
|
|
|
|
|
|
|||||||||
Combined ratio
|
82.0
|
%
|
|
90.1
|
%
|
|
85.6
|
%
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2015
|
|||
Asia, Australia and New Zealand
|
|
13
|
%
|
|
12
|
%
|
|
12
|
%
|
Europe
|
|
34
|
|
|
36
|
|
|
37
|
|
Latin America, Caribbean and Africa
|
|
9
|
|
|
8
|
|
|
10
|
|
North America
|
|
44
|
|
|
44
|
|
|
41
|
|
Total
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
2017
|
|
2016
|
|
2015
|
|||
P&C
|
|
57
|
%
|
|
57
|
%
|
|
54
|
%
|
Specialty
|
|
56
|
%
|
|
46
|
%
|
|
42
|
%
|
Life and Health
|
|
18
|
%
|
|
16
|
%
|
|
16
|
%
|
|
/
S
/ Ernst & Young Ltd.
|
Ernst & Young Ltd.
|
|
/
S
/ D
ELOITTE
L
TD
.
|
Deloitte Ltd.
|
|
/S/ Ernst & Young Ltd.
|
Ernst & Young Ltd.
|
|
Hamilton, Bermuda
|
March 13, 2018
|
Type of investment
|
|
Cost
(1) (2)
|
|
Fair Value
(2)
|
|
Amount at which shown in
the balance sheet
(2)
|
||||||
Fixed maturities
|
|
|
|
|
|
|
||||||
U.S. government and government sponsored enterprises
|
|
$
|
2,215,738
|
|
|
$
|
2,205,964
|
|
|
$
|
2,205,964
|
|
U.S. states, territories and municipalities
|
|
648,018
|
|
|
690,311
|
|
|
690,311
|
|
|||
Non-U.S. sovereign government, supranational and government related
|
|
1,696,378
|
|
|
1,750,770
|
|
|
1,750,770
|
|
|||
Corporate bonds
|
|
6,033,574
|
|
|
6,128,636
|
|
|
6,128,636
|
|
|||
Asset-backed securities
|
|
46,946
|
|
|
51,703
|
|
|
51,703
|
|
|||
Residential mortgage-backed securities
|
|
1,835,171
|
|
|
1,822,725
|
|
|
1,822,725
|
|
|||
Other mortgage-backed securities
|
|
4,744
|
|
|
4,750
|
|
|
4,750
|
|
|||
Fixed maturities
|
|
12,480,569
|
|
|
12,654,859
|
|
|
12,654,859
|
|
|||
Equities
|
|
|
|
|
|
|
||||||
Banks, trust and insurance companies
|
|
27,154
|
|
|
40,602
|
|
|
40,602
|
|
|||
Industrial, miscellaneous and all other
|
|
540,694
|
|
|
597,994
|
|
|
597,994
|
|
|||
Equities
|
|
567,848
|
|
|
638,596
|
|
|
638,596
|
|
|||
Short-term investments
|
|
4,394
|
|
|
4,400
|
|
|
4,400
|
|
|||
Other invested assets
(3)
|
|
|
|
639,572
|
|
|
639,572
|
|
||||
Total
|
|
|
|
$
|
13,937,427
|
|
|
$
|
13,937,427
|
|
|
(1)
|
Original cost of fixed maturities reduced by repayments and adjusted for amortization of premiums or accrual of discounts. Original cost of equity securities.
|
(2)
|
Excludes the investment portfolio underlying the funds held–directly managed account. While the net investment income and net realized and unrealized gains and losses inure to the benefit of the Company, the Company does not legally own the investments.
|
(3)
|
Other invested assets excludes the Company’s investments accounted for using the cost method of accounting and the equity method of accounting of
$746 million
.
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||
Assets
|
|
|
|
|
||||
Fixed maturities, at fair value (amortized cost: 2017, $52,406; 2016, $78,104)
|
|
$
|
51,748
|
|
|
$
|
77,170
|
|
Cash and cash equivalents
|
|
26,681
|
|
|
23,150
|
|
||
Investments in subsidiaries
|
|
8,991,358
|
|
|
8,558,696
|
|
||
Intercompany loans and balances receivable
|
|
1,135,749
|
|
|
700,965
|
|
||
Other
|
|
4,246
|
|
|
4,394
|
|
||
Total assets
|
|
$
|
10,209,782
|
|
|
$
|
9,364,375
|
|
|
|
|
|
|
||||
Liabilities
|
|
|
|
|
||||
Intercompany loans and balances payable
(1)
|
|
$
|
3,435,693
|
|
|
$
|
2,652,060
|
|
Accounts payable, accrued expenses and other
|
|
28,977
|
|
|
24,403
|
|
||
Total liabilities
|
|
3,464,670
|
|
|
2,676,463
|
|
||
|
|
|
|
|
||||
Shareholders’ Equity
|
|
|
|
|
||||
Common shares (par value $0.00000001; issued: 100,000,000 shares)
|
|
—
|
|
|
—
|
|
||
Preferred shares (par value $1.00; issued and outstanding: 28,169,062 shares; aggregate liquidation value: $704,227)
|
|
28,169
|
|
|
28,169
|
|
||
Additional paid-in capital
|
|
2,396,530
|
|
|
2,396,530
|
|
||
Accumulated other comprehensive loss
|
|
(90,281
|
)
|
|
(74,569
|
)
|
||
Retained earnings
|
|
4,410,694
|
|
|
4,337,782
|
|
||
Total shareholders’ equity
|
|
6,745,112
|
|
|
6,687,912
|
|
||
Total liabilities and shareholders’ equity
|
|
$
|
10,209,782
|
|
|
$
|
9,364,375
|
|
|
(1)
|
The parent has fully and unconditionally guaranteed on a subordinated basis all obligations of PartnerRe Finance II Inc., an indirect
100%
owned finance subsidiary of the parent, related to the remaining
$63 million
aggregate principal amount of
6.440%
Fixed-to-Floating Rate Junior Subordinated CENts. The parent’s obligations under this guarantee are unsecured and rank junior in priority of payments to the parent’s senior notes.
|
|
|
For the year ended
|
||||||||||
|
|
December 31, 2017
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||
Revenues
|
|
|
|
|
|
|
||||||
Net investment income
|
|
$
|
1,890
|
|
|
$
|
2,690
|
|
|
$
|
3,516
|
|
Interest income on intercompany loans
|
|
12,201
|
|
|
12,109
|
|
|
12,295
|
|
|||
Net realized and unrealized investment gains (losses)
|
|
91
|
|
|
2,993
|
|
|
(1,104
|
)
|
|||
Other income
|
|
8,418
|
|
|
2,483
|
|
|
—
|
|
|||
Total revenues
|
|
22,600
|
|
|
20,275
|
|
|
14,707
|
|
|||
Expenses
|
|
|
|
|
|
|
||||||
Other expenses
|
|
40,131
|
|
|
116,758
|
|
|
435,404
|
|
|||
Interest expense on intercompany loans
|
|
12,085
|
|
|
7,016
|
|
|
6,243
|
|
|||
Net foreign exchange gains (losses)
|
|
35,753
|
|
|
(10,788
|
)
|
|
(3,199
|
)
|
|||
Total expenses
|
|
87,969
|
|
|
112,986
|
|
|
438,448
|
|
|||
Loss before equity in net income of subsidiaries
|
|
(65,369
|
)
|
|
(92,711
|
)
|
|
(423,741
|
)
|
|||
Equity in net income of subsidiaries
|
|
329,390
|
|
|
540,019
|
|
|
528,122
|
|
|||
Net income
|
|
264,021
|
|
|
447,308
|
|
|
104,381
|
|
|||
Preferred dividends
|
|
46,416
|
|
|
55,043
|
|
|
56,735
|
|
|||
Loss on redemption of preferred shares
|
|
—
|
|
|
4,908
|
|
|
—
|
|
|||
Net income available to common shareholders
|
|
$
|
217,605
|
|
|
$
|
387,357
|
|
|
$
|
47,646
|
|
Comprehensive income
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
264,021
|
|
|
$
|
447,308
|
|
|
$
|
104,381
|
|
Total other comprehensive (loss) income, net of tax
|
|
(15,712
|
)
|
|
8,714
|
|
|
(49,200
|
)
|
|||
Comprehensive income
|
|
$
|
248,309
|
|
|
$
|
456,022
|
|
|
$
|
55,181
|
|
|
|
For the year ended
|
||||||||||
|
|
December 31, 2017
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||
Cash flows from operating activities
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
264,021
|
|
|
$
|
447,308
|
|
|
$
|
104,381
|
|
Adjustments to reconcile net income to net cash used in operating activities:
|
|
|
|
|
|
|
||||||
Equity in net income of subsidiaries
|
|
(329,390
|
)
|
|
(540,019
|
)
|
|
(528,122
|
)
|
|||
Other, net
|
|
25,239
|
|
|
11,205
|
|
|
32,725
|
|
|||
Net cash used in operating activities
|
|
(40,130
|
)
|
|
(81,506
|
)
|
|
(391,016
|
)
|
|||
Cash flows from investing activities
|
|
|
|
|
|
|
||||||
Advances to/from subsidiaries, net
|
|
11,138
|
|
|
(167,254
|
)
|
|
97,532
|
|
|||
Net issue of intercompany loans receivable and payable
|
|
—
|
|
|
542,193
|
|
|
5,955
|
|
|||
Sales and redemptions of fixed maturities
|
|
40,379
|
|
|
99,888
|
|
|
16,818
|
|
|||
Purchases of fixed maturities
|
|
(16,414
|
)
|
|
(7,839
|
)
|
|
(25,758
|
)
|
|||
Dividends received from subsidiaries
|
|
—
|
|
|
—
|
|
|
418,789
|
|
|||
Other, net
|
|
414
|
|
|
(2,408
|
)
|
|
13,292
|
|
|||
Net cash provided by investing activities
|
|
35,517
|
|
|
464,580
|
|
|
526,628
|
|
|||
Cash flows from financing activities
|
|
|
|
|
|
|
||||||
Cash dividends paid to common and preferred shareholders
(1)
|
|
—
|
|
|
(240,725
|
)
|
|
(47,582
|
)
|
|||
Reissuance of treasury shares and issuance of common shares, net of taxes paid
|
|
—
|
|
|
—
|
|
|
7,996
|
|
|||
Redemption of preferred shares
|
|
—
|
|
|
(149,523
|
)
|
|
—
|
|
|||
Reissuance of treasury shares, net of taxes
|
|
—
|
|
|
10,965
|
|
|
—
|
|
|||
Settlement of share-based awards upon change in control
|
|
—
|
|
|
(75,531
|
)
|
|
—
|
|
|||
Net cash used in financing activities
|
|
—
|
|
|
(454,814
|
)
|
|
(39,586
|
)
|
|||
Effect of foreign exchange rate changes on cash
|
|
8,144
|
|
|
55
|
|
|
(1,562
|
)
|
|||
Increase (decrease) in cash and cash equivalents
|
|
3,531
|
|
|
(71,685
|
)
|
|
94,464
|
|
|||
Cash and cash equivalents—beginning of year
|
|
23,150
|
|
|
94,835
|
|
|
371
|
|
|||
Cash and cash equivalents—end of year
|
|
$
|
26,681
|
|
|
$
|
23,150
|
|
|
$
|
94,835
|
|
|
(1)
|
During the years ended
December 31, 2017
,
2016
and
2015
, dividends paid to common and preferred shareholders of
$191 million
,
$251 million
and
$143 million
, respectively, and the repurchase of common shares of
$71 million
for 2015 were paid by a Bermuda subsidiary on behalf of the parent and have therefore been excluded from the Condensed Statements of Cash Flows—Parent Company Only.
|
|
|
Deferred Policy Acquisition Costs
|
|
Gross Reserves
|
|
Unearned Premiums
|
|
Other Benefits Payable
|
|
Premium Revenue
|
|
Net Investment Income
(1)
|
|
Losses Incurred
|
|
Amortization of DAC
|
|
Other Expenses
(2)
|
|
Premiums Written
|
||||||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Non-life
|
|
$
|
493,196
|
|
|
$
|
9,710,457
|
|
|
$
|
1,795,103
|
|
|
$
|
—
|
|
|
$
|
3,688,158
|
|
|
$ N/A
|
|
$
|
2,574,769
|
|
|
$
|
984,519
|
|
|
$
|
104,454
|
|
|
$
|
3,775,905
|
|
||
Life and Health
|
|
179,111
|
|
|
—
|
|
|
23,896
|
|
|
2,490,474
|
|
|
1,336,823
|
|
|
59,895
|
|
|
1,266,213
|
|
|
135,254
|
|
|
61,026
|
|
|
1,344,021
|
|
||||||||||
Corporate and Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
342,176
|
|
|
—
|
|
|
—
|
|
|
182,918
|
|
|
—
|
|
||||||||||
Total
|
|
$
|
672,307
|
|
|
$
|
9,710,457
|
|
|
$
|
1,818,999
|
|
|
$
|
2,490,474
|
|
|
$
|
5,024,981
|
|
|
$
|
402,071
|
|
|
$
|
3,840,982
|
|
|
$
|
1,119,773
|
|
|
$
|
348,398
|
|
|
$
|
5,119,926
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Non-life
|
|
$
|
439,195
|
|
|
$
|
8,985,434
|
|
|
$
|
1,608,880
|
|
|
$
|
—
|
|
|
$
|
3,852,336
|
|
|
$ N/A
|
|
$
|
2,320,820
|
|
|
$
|
1,055,638
|
|
|
$
|
228,806
|
|
|
$
|
3,836,654
|
|
||
Life and Health
|
|
158,044
|
|
|
—
|
|
|
14,916
|
|
|
1,984,096
|
|
|
1,117,260
|
|
|
57,664
|
|
|
927,271
|
|
|
130,964
|
|
|
66,003
|
|
|
318,052
|
|
||||||||||
Corporate and Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
353,200
|
|
|
—
|
|
|
—
|
|
|
177,096
|
|
|
—
|
|
||||||||||
Total
|
|
$
|
597,239
|
|
|
$
|
8,985,434
|
|
|
$
|
1,623,796
|
|
|
$
|
1,984,096
|
|
|
$
|
4,969,596
|
|
|
$
|
410,864
|
|
|
$
|
3,248,091
|
|
|
$
|
1,186,602
|
|
|
$
|
471,905
|
|
|
$
|
4,154,706
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Non-life
|
|
$
|
449,216
|
|
|
$
|
9,064,711
|
|
|
$
|
1,629,537
|
|
|
$
|
—
|
|
|
$
|
4,059,665
|
|
|
$ N/A
|
|
$
|
2,193,449
|
|
|
$
|
1,063,693
|
|
|
$
|
218,319
|
|
|
$
|
4,022,067
|
|
||
Life and Health
|
|
180,156
|
|
|
—
|
|
|
15,220
|
|
|
2,051,935
|
|
|
1,209,513
|
|
|
58,537
|
|
|
964,421
|
|
|
153,318
|
|
|
63,451
|
|
|
321,278
|
|
||||||||||
Corporate and Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
391,247
|
|
|
(450
|
)
|
|
(8
|
)
|
|
508,953
|
|
|
—
|
|
||||||||||
Total
|
|
$
|
629,372
|
|
|
$
|
9,064,711
|
|
|
$
|
1,644,757
|
|
|
$
|
2,051,935
|
|
|
$
|
5,269,178
|
|
|
$
|
449,784
|
|
|
$
|
3,157,420
|
|
|
$
|
1,217,003
|
|
|
$
|
790,723
|
|
|
$
|
4,343,345
|
|
|
(1)
|
Because the Company does not manage its assets by segment, net investment income is not allocated to the Non-life business of the reinsurance operations. However, because of the interest-sensitive nature of some of the Company’s Life products, net investment income is considered in management’s assessment of the profitability of the Life and Health segment.
|
(2)
|
Other expenses are a component of underwriting result for the Non-life business and Life and Health segment. Other expenses included in Corporate and Other represent corporate expenses and other expenses related to the Company’s insurance-linked securities and strategic investments.
|
|
|
Gross amount
|
|
Ceded to other companies
|
|
Assumed from other companies
|
|
Net amount
|
|
Percentage of amount assumed to net
|
|||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life reinsurance in force
|
|
$
|
—
|
|
|
$
|
15,136,473
|
|
|
$
|
295,171,940
|
|
|
$
|
280,035,467
|
|
|
105
|
%
|
Premiums earned
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life
|
|
$
|
—
|
|
|
$
|
18,094
|
|
|
$
|
944,752
|
|
|
$
|
926,658
|
|
|
102
|
%
|
Accident and health
|
|
105,634
|
|
|
37,150
|
|
|
341,681
|
|
|
410,165
|
|
|
83
|
%
|
||||
P&C
|
|
156,126
|
|
|
391,321
|
|
|
3,923,353
|
|
|
3,688,158
|
|
|
106
|
%
|
||||
Total premiums
|
|
$
|
261,760
|
|
|
$
|
446,565
|
|
|
$
|
5,209,786
|
|
|
$
|
5,024,981
|
|
|
104
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life reinsurance in force
|
|
$
|
—
|
|
|
$
|
1,930,291
|
|
|
$
|
167,198,163
|
|
|
$
|
165,267,872
|
|
|
101
|
%
|
Premiums earned
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life
|
|
$
|
—
|
|
|
$
|
4,695
|
|
|
$
|
778,754
|
|
|
$
|
774,059
|
|
|
101
|
%
|
Accident and health
|
|
89,623
|
|
|
46,568
|
|
|
300,145
|
|
|
343,200
|
|
|
87
|
%
|
||||
P&C
|
|
161,869
|
|
|
322,972
|
|
|
4,013,440
|
|
|
3,852,337
|
|
|
104
|
%
|
||||
Total premiums
|
|
$
|
251,492
|
|
|
$
|
374,235
|
|
|
$
|
5,092,339
|
|
|
$
|
4,969,596
|
|
|
102
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life reinsurance in force
|
|
$
|
—
|
|
|
$
|
2,189,254
|
|
|
$
|
180,825,066
|
|
|
$
|
178,635,812
|
|
|
101
|
%
|
Premiums earned
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life
|
|
$
|
—
|
|
|
$
|
4,802
|
|
|
$
|
873,854
|
|
|
$
|
869,052
|
|
|
101
|
%
|
Accident and health
|
|
89,535
|
|
|
57,978
|
|
|
308,904
|
|
|
340,461
|
|
|
91
|
%
|
||||
P&C
|
|
163,042
|
|
|
238,363
|
|
|
4,134,986
|
|
|
4,059,665
|
|
|
102
|
%
|
||||
Total premiums
|
|
$
|
252,577
|
|
|
$
|
301,143
|
|
|
$
|
5,317,744
|
|
|
$
|
5,269,178
|
|
|
101
|
%
|
Affiliation with Registrant
|
|
Deferred Policy Acquisition Costs
|
|
Liability for Unpaid Losses and Loss Expenses
|
|
Unearned Premiums
|
|
Premiums Earned
|
|
Losses and Loss Expenses Incurred
|
|
Amortization of Deferred Policy Acquisition Costs
|
|
Paid Losses and Loss Expenses
|
|
Premiums Written
|
||||||||||||||||
Consolidated subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
2017
|
|
$
|
493,196
|
|
|
$
|
9,710,457
|
|
|
$
|
1,795,103
|
|
|
$
|
3,688,158
|
|
|
$
|
2,574,769
|
|
|
$
|
984,519
|
|
|
$
|
2,675,530
|
|
|
$
|
3,775,905
|
|
2016
|
|
439,195
|
|
|
8,985,434
|
|
|
1,608,880
|
|
|
3,852,336
|
|
|
2,320,820
|
|
|
1,055,638
|
|
|
2,262,916
|
|
|
3,836,654
|
|
||||||||
2015
|
|
449,216
|
|
|
9,064,711
|
|
|
1,629,537
|
|
|
4,059,665
|
|
|
2,192,999
|
|
|
1,063,685
|
|
|
2,422,603
|
|
|
4,022,067
|
|
ITEM 19.
|
EXHIBITS
|
|
|
|
P
ARTNERRE
L
TD
.
|
||
|
|
|
By:
|
|
/
S
/ MARIO BONACCORSO
|
Name:
|
|
Mario Bonaccorso
|
Title:
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
Original
Number
|
|
Date Filed
|
|
SEC File
Reference
Number
|
|
Filed
Herewith
|
1.1
|
|
Amended Memorandum of Association
|
|
F-3
|
|
3.1
|
|
June 20, 1997
|
|
333-7094
|
|
|
1.2
|
|
Bye-laws of PartnerRe Ltd.
|
|
8-K
|
|
3.1
|
|
March 18, 2016
|
|
001-14536
|
|
|
2.4
|
|
Specimen Share Certificate for the 5.875% Series F Non-Cumulative Redeemable Preferred Shares
|
|
8-K
|
|
4.1
|
|
February 14, 2013
|
|
001-14536
|
|
|
2.4.1
|
|
Certificate of Designation, Preferences and Rights of the Company’s 5.875% Series F Non-Cumulative Redeemable Preferred Shares
|
|
8-K
|
|
3.1
|
|
February 14, 2013
|
|
001-14536
|
|
|
2.5
|
|
Certificate of Designation of 6.50% Series G Cumulative Redeemable Preferred Shares
|
|
8-K
|
|
4.1
|
|
May 3, 2016
|
|
001-14536
|
|
|
2.6
|
|
Certificate of Designation of 7.25% Series H Cumulative Redeemable Preferred Shares
|
|
8-K
|
|
4.2
|
|
May 3, 2016
|
|
001-14536
|
|
|
2.7
|
|
Certificate of Designation of 5.875% Series I Non-Cumulative Redeemable Preferred Shares
|
|
8-K
|
|
4.3
|
|
May 3, 2016
|
|
001-14536
|
|
|
2.8
|
|
Certificate of Designation of Class B Common Shares
|
|
|
|
|
|
|
|
|
|
X
|
2.8.1
|
|
Junior Subordinated Indenture dated November 2, 2006 among PartnerRe Finance II Inc., the Company, J.P. Morgan Securities Inc., Lehman Brothers Inc. and the other underwriters named therein
|
|
8-K
|
|
4.1
|
|
November 7, 2006
|
|
001-14536
|
|
|
2.8.2
|
|
First Supplemental Junior Subordinated Indenture (including the form of the CENts) among PartnerRe Finance II Inc., the Company and The Bank of New York
|
|
8-K
|
|
4.2
|
|
November 7, 2006
|
|
001-14536
61194484
|
|
|
2.9.1
|
|
Junior Subordinated Debt Securities Guarantee Agreement dated November 7, 2006 between the Company and The Bank of New York
|
|
8-K
|
|
4.3
|
|
November 7, 2006
|
|
001-14536
|
|
|
2.9.2
|
|
First Supplemental Junior Subordinated Debt Securities Guarantee Agreement dated November 7, 2006 between the Company and The Bank of New York
|
|
8-K
|
|
4.4
|
|
November 7, 2006
|
|
001-14536
|
|
|
2.12.1
|
|
Indenture dated March 15, 2010 among PartnerRe Finance B LLC, PartnerRe Ltd. and The Bank of New York Mellon
|
|
8-K
|
|
4.1
|
|
March 15, 2010
|
|
001-14536
|
|
|
2.12.2
|
|
First Supplemental Indenture dated March 15, 2010 among PartnerRe Finance B LLC, PartnerRe Ltd. and The Bank of New York Mellon
|
|
8-K
|
|
4.2
|
|
March 15, 2010
|
|
001-14536
|
|
|
2.13.1
|
|
Senior Debt Securities Guarantee Agreement dated March 15, 2010 between PartnerRe Ltd. and The Bank of New York Mellon
|
|
8-K
|
|
4.3
|
|
March 15, 2010
|
|
001-14536
|
|
|
2.13.2
|
|
First Supplemental Senior Debt Securities Guarantee Agreement dated March 15, 2010 between PartnerRe Ltd. and The Bank of New York Mellon
|
|
8-K
|
|
4.4
|
|
March 15, 2010
|
|
001-14536
|
|
|
4.1
|
|
Agreement and Plan of Merger by and among Exor N.V., Pillar Ltd., PartnerRe Ltd. and solely with respect to Sections 4.01 and 4.05, Section 6.13 and Section 7.13, EXOR S.p.A.
|
|
8-K
|
|
2.1
|
|
August 3, 2015
|
|
001-14536
|
|
|
4.2
|
|
Amended and Restated Employment Agreement between PartnerRe Holdings Europe Limited, Zurich Branch and Emmanuel Clarke, effective as of December 16, 2015
|
|
10-K
|
|
3.2
|
|
February 25, 2016
|
|
001-14536
|
|
|
4.3
|
|
Amended and Restated Employment Agreement between PartnerRe Ltd. and Laurie Desmet, effective as of October 23, 2014
|
|
10-Q
|
|
10.7
|
|
October 31, 2014
|
|
001-14536
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
Original
Number
|
|
Date Filed
|
|
SEC File
Reference
Number
|
|
Filed
Herewith
|
4.4
|
|
Amended and Restated Employment Agreement between Partner Reinsurance Company of the U.S and Theodore C. Walker, effective as of October 23, 2014
|
|
10-Q
|
|
10.8
|
|
October 31, 2014
|
|
001-14536
|
|
|
4.5
|
|
Amended and Restated Consulting Agreement between PartnerRe Ltd. and Marvin Pestcoe, effective as of April 16, 2014
|
|
10-Q
|
|
10.3
|
|
October 31, 2014
|
|
001-14536
|
|
|
4.6
|
|
Form of Indemnification Agreement between PartnerRe Ltd. and its directors
|
|
10-Q
|
|
10.16
|
|
November 4, 2009
|
|
001-14536
|
|
|
4.7
|
|
Termination Agreement, dated August 2, 2015, by and among PartnerRe Ltd. and Axis Capital Holdings Limited
|
|
8-K
|
|
10.2
|
|
August 3, 2015
|
|
001-14536
|
|
|
4.8
|
|
Capital Management Maintenance Agreement, effective January 1, 2015, between PartnerRe Ltd. and Partner Reinsurance Asia Pte. Ltd.
|
|
10-K
|
|
10.3.8
|
|
February 25, 2016
|
|
001-14536
|
|
|
8.1
|
|
Subsidiaries of the Company
|
|
|
|
|
|
|
|
|
|
X
|
11.1
|
|
Code of Business Conduct and Ethics
|
|
|
|
|
|
|
|
|
|
X
|
12.1
|
|
Certification of Emmanuel Clarke, Chief Executive Officer, as required by Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934
|
|
|
|
|
|
|
|
|
|
X
|
12.2
|
|
Certification of Mario Bonaccorso, Chief Financial Officer, as required by Rule 13a-14(a) of the Securities Exchange Act of 1934
|
|
|
|
|
|
|
|
|
|
X
|
13.1
|
|
Certifications of Emmanuel Clarke, Chief Executive Officer, and Mario Bonaccorso, Chief Financial Officer, as required by Rule 13a-14(b) or 15d-14(b) of the Securities Exchange Act of 1934
|
|
|
|
|
|
|
|
|
|
X
|
15.1
|
|
Consent of Ernst & Young Ltd.
|
|
|
|
|
|
|
|
|
|
X
|
15.2
|
|
Consent of Deloitte Ltd.
|
|
|
|
|
|
|
|
|
|
X
|
101.1
|
|
The following financial information from PartnerRe Ltd.’s Annual Report on Form 20–F for the year ended December 31, 2017 formatted in XBRL: (i) Consolidated Balance Sheets at December 31, 2017 and 2016; (ii) Consolidated Statements of Operations and Comprehensive Income for the years ended December 31, 2017, 2016 and 2015; (iii) Consolidated Statements of Shareholders’ Equity for the years ended December 31, 2017, 2016 and 2015; (iv) Consolidated Statements of Cash Flows for the years ended December 31, 2017, 2016 and 2015; (v) Notes to Consolidated Financial Statements and (vi) Financial Statements Schedules.
|
|
|
|
|
|
|
|
|
|
X
|
(i)
|
The number of Class B Shares to be sold by the Class B Shareholder if the Drag-along Sale is structured as a Transfer;
|
(ii)
|
The identity of the Third Party Purchaser;
|
(iii)
|
The proposed date, time and location of the closing of the Drag-along Sale;
|
(iv)
|
The per share purchase price and other material terms and conditions of the Transfer; and
|
(v)
|
A copy of the form of agreement proposed to be executed in connection therewith.
|
(i)
|
The aggregated number of Shares the proposed Third Party Purchase has offered to purchase;
|
(ii)
|
The identity of the Third Party Purchaser;
|
(iii)
|
The proposed date, time and location of the closing of the Tag-along Sale;
|
(iv)
|
The per share purchase price and other material terms and conditions of the Transfer, including a description of any non-cash consideration in sufficient detail to permit the valuation thereof; and
|
(v)
|
A copy of any form of agreement proposed to be executed in connection therewith.
|
|
PARTNERRE LTD.
|
|
|
|
|
By: _____________________________________________
|
|
Name:
|
|
Title:
|
|
|
|
Address:
Wellesley House South
90 Pitts Bay Road
Hamilton HM 08
|
|
|
|
Contact person:
Marc Wetherhill, Chief Legal Counsel
|
|
Telephone:
441 292 0888
|
|
E-mail: marc.wetherhill@partnerre.com
|
|
Investor:
|
By: __________________________________________
|
|
Name:
|
|
|
|
|
|
|
|
|
|
|
Address (this will appear in the register of members):
|
|
________________________________________________
|
|
|
|
|
|
Telephone: _______________________________________
|
|
Fax: ____________________________________________
|
|
E-mail: __________________________________________
|
|
Country of Residence: ______________________________
|
|
|
Jurisdiction
|
|
Percentage Interest Held
|
PartnerRe Ltd.
|
|
Bermuda
|
|
|
Aurigen Capital Limited
|
|
Bermuda
|
|
100%
|
Aurigen Europe Holdings B.V.
|
|
Netherlands
|
|
100%
|
PartnerRe Life Reinsurance Company of Canada
|
|
Canada
|
|
100%
|
Aurigen USA Holdings Inc.
|
|
Delaware, United States
|
|
100%
|
PartnerRe Life Reinsurance Company of America
|
|
Arkansas, United States
|
|
100%
|
Aurigen Reinsurance Limited
|
|
Bermuda
|
|
100%
|
PartnerRe Services Ltd.
|
|
Bermuda
|
|
100%
|
Partner Reinsurance Company Ltd.
|
|
Bermuda
|
|
100%
|
PartnerRe Servicios Y Compañia Limitada
|
|
Chile
|
|
100%
|
PartnerRe Americas Services Company, S.A. de C.V.
|
|
Mexico
|
|
100%
|
PPF Holdings I Ltd.
|
|
Bermuda
|
|
100%
|
PPF Holdings II Ltd.
|
|
Bermuda
|
|
100%
|
PPF Holdings III Ltd.
|
|
Bermuda
|
|
100%
|
PartnerRe Capital Investments Corp.
|
|
Delaware, United States
|
|
100%
|
LFR Collections LLC
|
|
Delaware, United States
|
|
100%
|
Almandine I LLC
|
|
Delaware, United States
|
|
95%
|
Mercalli Investment Holding company Ltd.
|
|
Bermuda
|
|
100%
|
Mercalli ILS Master Fund Ltd.
|
|
Bermuda
|
|
100%
|
Mercalli Re Ltd.
|
|
Bermuda
|
|
100%
|
Mercalli ILS Bermuda Feeder Fund Ltd.
|
|
Bermuda
|
|
100%
|
Mercalli ILS Feeder Fund LLC
|
|
Delaware, United States
|
|
100%
|
PartnerRe Underwriting Management Ltd.
|
|
Bermuda
|
|
100%
|
Lorenz Re Ltd.
|
|
Bermuda
|
|
100%
|
Raccoon River Re Ltd
|
|
Bermuda
|
|
100%
|
Partner Reinsurance Life Company of Bermuda Ltd.
|
|
Bermuda
|
|
100%
|
PartnerRe Corporate Member Limited
|
|
United Kingdom
|
|
100%
|
PartnerRe Corporate Member 2 Limited
|
|
United Kingdom
|
|
100%
|
Almacantar Group S.A.
|
|
Luxembourg
|
|
36%
|
Partner Reinsurance Asia Pte. Ltd.
|
|
Singapore
|
|
100%
|
PartnerRe Holdings Europe Limited
|
|
Ireland
|
|
100%
|
PartnerRe Holdings Switzerland GmbH
|
|
Switzerland
|
|
100%
|
PartnerRe Financing Ltd.
|
|
Bermuda
|
|
100%
|
PartnerRe Connecticut Inc.
|
|
Connecticut, United States
|
|
100%
|
PartnerRe Ireland Insurance dac
|
|
Ireland
|
|
100%
|
PartnerRe Ireland Finance DAC
|
|
Ireland
|
|
100%
|
PartnerRe Holdings B.V.
|
|
Netherlands
|
|
100%
|
PartnerRe Holdings SA
|
|
France
|
|
100%
|
Partner Reinsurance Europe SE
|
|
Ireland
|
|
100%
|
PartnerRe Escritório de Representação no Brasil Ltda.
|
|
Brazil
|
|
100%
|
|
|
Jurisdiction
|
|
Percentage Interest Held
|
PartnerRe Miami Inc.
|
|
Florida, United States
|
|
100%
|
PartnerRe U.S. Corporation
|
|
Delaware, United States
|
|
100%
|
PartnerRe America Insurance Company
|
|
Delaware, United States
|
|
100%
|
PPF Finance LLC
|
|
Delaware, United States
|
|
100%
|
Peninsula Coinvestment II, LLC
|
|
Delaware, United States
|
|
100%
|
PartnerRe Finance A LLC
|
|
Delaware, United States
|
|
100%
|
PartnerRe Finance B LLC
|
|
Delaware, United States
|
|
100%
|
PartnerRe Finance C LLC
|
|
Delaware, United States
|
|
100%
|
PartnerRe Asset Management Corporation
|
|
Delaware, United States
|
|
100%
|
PartnerRe Principal Finance Inc.
|
|
Delaware, United States
|
|
100%
|
Mercalli Investment Management Inc.
|
|
Delaware, United States
|
|
100%
|
Partner Reinsurance Company of the U.S.
|
|
New York, United States
|
|
100%
|
PartnerRe Insurance Company of New York
|
|
New York, United States
|
|
100%
|
PartnerRe Finance I Inc.
|
|
Delaware, United States
|
|
100%
|
PartnerRe Finance II Inc.
|
|
Delaware, United States
|
|
100%
|
PartnerRe Capital Trust II
|
|
Delaware, United States
|
|
100%
|
PartnerRe Capital Trust III
|
|
Delaware, United States
|
|
100%
|
Presidio Reinsurance Group, Inc.
|
|
Delaware, United States
|
|
100%
|
Presidio Excess Insurance Services Inc.
|
|
California, United States
|
|
100%
|
PartnerRe Management Ltd.
|
|
United Kingdom
|
|
100%
|
Presidio Reinsurance Corporation
|
|
Montana, United States
|
|
100%
|
▪
|
Sourcing diversified and profitable risks by being the go-to reinsurer for our clients
and brokers |
▪
|
Executing intelligent and responsible underwriting
|
▪
|
Managing risk and capital for strength and flexibility
|
▪
|
Maintaining an efficient, effective platform
|
▪
|
Attracting, retaining and developing talent
|
▪
|
Ethics first, every time
|
▪
|
Partnership in words and actions
|
▪
|
Committed to earning client trust every day
|
▪
|
Passionate about results for our business and clients
|
▪
|
Acting like owners – always accountable for our actions
|
▪
|
Mindful, multicultural citizens of the world
|
▪
|
Transparency in the face of complexity
|
▪
|
Collaboration over competition
|
▪
|
Speaking up and standing out
|
▪
|
Proactive solutions, not reactive repairs
|
▪
|
Empowering people to seize opportunities every day
|
▪
|
Extraordinary acts, both big and small
|
1.
|
I have reviewed this annual report on Form 20-F of PartnerRe Ltd.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;
|
4.
|
The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
|
5.
|
The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions):
|
By:
|
|
/
S
/ EMMANUEL CLARKE
|
Name:
|
|
Emmanuel Clarke
|
Title:
|
|
President & Chief Executive Officer
|
1.
|
I have reviewed this annual report on Form 20-F of PartnerRe Ltd.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;
|
4.
|
The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
|
5.
|
The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions):
|
By:
|
|
/
S
/ MARIO BONACCORSO
|
Name:
|
|
Mario Bonaccorso
|
Title:
|
|
Executive Vice President & Chief Financial Officer
|
1.
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act; and
|
2.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
By:
|
|
/
S
/ EMMANUEL CLARKE
|
Name:
|
|
Emmanuel Clarke
|
Title:
|
|
President & Chief Executive Officer
|
By:
|
|
/
S
/ MARIO BONACCORSO
|
Name:
|
|
Mario Bonaccorso
|
Title:
|
|
Executive Vice President & Chief Financial Officer
|
(1)
|
Registration Statements (Form S-8 No. 333-11998, 333-107242, 333-129762, 333-157585, 333-161207, 333-163445, 333-163446, 333-176968 and 333-182045) of PartnerRe Ltd., and
|
(2)
|
Registration Statement No. 333-203234 on Form S-3 of PartnerRe Ltd.;
|
|
/S/ Ernst & Young Ltd.
|
Ernst & Young Ltd.
|
|
/S/ DELOITTE LTD.
|
Deloitte Ltd.
|