UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant To Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): February 11, 2013

 

 

PartnerRe Ltd.

(Exact Name of Registrant as Specified in Charter)

 

 

 

  Bermuda  
 

(State or Other Jurisdiction

of Incorporation)

 
001-14536     Not Applicable

(Commission

File Number)

   

(IRS Employer

Identification No.)

Wellesley House, 90 Pitts Bay Road,

Pembroke, Bermuda

    HM 08
(Address of Principal Executive Offices)     (Zip Code)

Registrant’s telephone number, including area code: (441) 292-0888

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 1.01 Entry into a Material Definitive Agreement

On February 11, 2013, PartnerRe Ltd. (the “Company”) announced that it had priced an offering of 10,000,000 shares of its 5.875% Series F Non-Cumulative Redeemable Preferred Shares (liquidation preference $25.00 per share, par value $1.00 per share) (the “Series F Preferred Shares”) for an aggregate purchase price of $250 million (the “Offering”). In connection with the Offering, the Company entered into an Underwriting Agreement (the “Underwriting Agreement”), by and among the Company and UBS Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Securities, LLC, as representatives of the several underwriters listed on Schedule I thereto (the “Underwriters”), for the sale by the Company of the Series F Preferred Shares. The Company intends to use the net proceeds of the Offering, together with available cash, for the redemption of $290 million aggregate liquidation value of the Company’s Series C Cumulative Redeemable Preferred Shares. The Series F Preferred Shares were registered with the United States Securities Exchange Commission pursuant to the Company’s shelf registration statement on Form S-3 (Reg. No. 333-180628). The Series F Preferred Shares are expected to trade on the New York Stock Exchange under the symbol “PRE PrF”.

The Underwriting Agreement contains customary representations, warranties and covenants of the Company, conditions to closing, indemnification obligations of the Company and the Underwriters, and termination and other customary provisions. The Offering is expected to close on February 14, 2013.

The foregoing description of the Underwriting Agreement does not purport to be complete and is qualified in its entirety by reference to the Underwriting Agreement attached hereto as Exhibit 1.1 and incorporated by reference herein.

 

Item 3.03. Material Modification to Rights of Security Holders

On February 14, 2013, the Company issued the 10,000,000 shares of Series F Preferred Shares pursuant to the Certificate of Designation, Preferences and Rights of 5.875% Series F Non-Cumulative Redeemable Preferred Shares (the “Certificate of Designation”). The Series F Preferred Shares will pay dividends, when, as and if declared, at an annual dividend rate of 5.875% and will have a liquidation preference and redemption value of $25.00 per share. The Company may redeem the Series F Preferred Shares at any time on or after March 1, 2018, or earlier upon the occurrence of a “capital disqualification event” or certain tax events as described in the Certificate of Designation.

Pursuant to the Certificate of Designation, the Series F Preferred Shares rank senior to the Company’s common shares and pari passu with the Company’s 6.75% Series C Cumulative Redeemable Preferred Shares, 6.50% Series D Cumulative Redeemable Preferred Shares and 7.25% Series E Cumulative Redeemable Preferred Shares with respect to the payment of dividends and distributions upon the Company’s liquidation, dissolution or winding up, each in proportion to their respective amounts of declared but unpaid or accrued and unpaid dividends per share or liquidation preferences, without priority of one over the other.

The foregoing description of the Certificate of Designation does not purport to be complete and is qualified in its entirety by reference to the Certificate of Designation, which is filed hereto as Exhibit 3.1 and incorporated by reference herein. The form of share certificate for any Series F Preferred Shares that may be issued in certificated form is filed hereto as Exhibit 4.1 and incorporated herein by reference.

 

Item 5.03. Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year

The description contained under Item 3.03 above is incorporated by reference in its entirety into this Item 5.03.

 

Item 8.01. Other Events

A copy of the opinion of Mr. Jean-Paul Dyer, Associate General Counsel for the Company, dated February 14, 2013, relating to the validity of the Series F Preferred Shares, is filed hereto as Exhibit 5.1.

 

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.


Exhibit

No.

  

Description

1.1    Underwriting Agreement dated February 11, 2013, among the Company and UBS Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Securities, LLC, as representatives of the several underwriters listed in Schedule I thereto.
3.1    Certificate of Designation, Preferences and Rights of 5.875% Series F Non-Cumulative Redeemable Preferred Shares of the Company
4.1    Specimen 5.875% Series F Non-Cumulative Redeemable Preferred Share of the Company
5.1    Opinion of Mr. Jean-Paul Dyer, Associate General Counsel for the Company, dated February 14, 2013, relating to the validity of the Series F Preferred Shares.
23.1    Consent of Mr. Jean-Paul Dyer, Associate General Counsel for the Company (included in Exhibit 5.1 above).


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

   

ParterRe Ltd.

(Registrant)

Date: February 14, 2013                                                              By:  

/s/ Jean-Paul Dyer

    Name:   Jean-Paul Dyer
    Title:   Associate General Counsel


Index to Exhibits

 

Exhibit

No.

  

Description

1.1    Underwriting Agreement dated February 11, 2013, among the Company and UBS Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Securities, LLC, as representatives of the several underwriters listed in Schedule I thereto.
3.1    Certificate of Designation, Preferences and Rights of 5.875% Series F Non-Cumulative Redeemable Preferred Shares of the Company
4.1    Specimen 5.875% Series F Non-Cumulative Redeemable Preferred Share of the Company
5.1    Opinion of Mr. Jean-Paul Dyer, Associate General Counsel for the Company, dated February 14, 2013, relating to the validity of the Series F Preferred Shares.
23.1    Consent of Mr. Jean-Paul Dyer, Associate General Counsel for the Company (included in Exhibit 5.1 above).

Exhibit 1.1

10,000,000 Shares

PartnerRe Ltd.

5.875% SERIES F NON-CUMULATIVE REDEEMABLE PREFERRED SHARES

PAR VALUE $1.00 PER SHARE

(Liquidation Preference $25.00 Per Share)

Underwriting Agreement

February 11, 2013

UBS SECURITIES LLC

CITIGROUP GLOBAL MARKETS INC.

CREDIT SUISSE SECURITIES (USA) LLC

MERRILL LYNCH, PIERCE, FENNER & SMITH

                              INCORPORATED

WELLS FARGO SECURITIES, LLC

as Representatives of the Underwriters listed in Schedule I hereto

c/o UBS Securities LLC

677 Washington Boulevard

Stamford, CT 06901

Citigroup Global Markets Inc.

388 Greenwich Street

New York, NY 10013

Credit Suisse Securities (USA) LLC

Eleven Madison Avenue

New York, NY 10010-3629

Merrill Lynch, Pierce, Fenner & Smith

                       Incorporated

One Bryant Park

New York, NY 10036

Wells Fargo Securities, LLC

301 S. College Street

Charlotte, NC 28202

Ladies and Gentlemen:

PartnerRe Ltd., a Bermuda company (the “ Company ”), proposes to issue and sell to the several Underwriters listed in Schedule I hereto (the “ Underwriters ”), on the terms and subject to the conditions stated herein, 10,000,000 shares (the “ Shares ”) in the aggregate of its 5.875% Series F Non-Cumulative Redeemable Preferred Shares, par value $1.00 per share, liquidation preference $25.00 per share (the “ Preferred Shares ”). UBS Securities LLC, Citigroup Global


Markets Inc., Credit Suisse Securities (USA) LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Securities, LLC shall act as the representatives (the “ Representatives ”) of the several Underwriters.

The Company has filed with the Securities and Exchange Commission (the “ Commission ”), in accordance with the provisions of the Securities Act of 1933, as amended, and the rules and regulations of the Commission thereunder (the “ Securities Act ”), a registration statement on Form S-3 (Registration No. 333-180628), including a related prospectus, relating to the registration of certain securities of the Company, including the Shares (the “ Shelf Securities ”), to be sold from time to time by the Company. Such registration statement as amended to the date of this Agreement is hereinafter referred to as the “ Registration Statement ” (for purposes of this definition, information contained in a form of prospectus or prospectus supplement that is deemed retroactively to be a part of the Registration Statement pursuant to Rule 430B shall be considered to be included in the Registration Statement as of the time specified in Rule 430B), and the related prospectus dated April 9, 2012 in the form first used to confirm sales of the Shares (or in the form first made available to the Underwriters by the Company to meet requests of purchasers pursuant to Rule 173 under the Securities Act ) is hereinafter referred to as the “ Base Prospectus ”. The Base Prospectus, as supplemented by the prospectus supplement specifically relating to the Shares in the form first used to confirm sales of the Shares (or in the form first made available to the Underwriters by the Company to meet requests of purchasers pursuant to Rule 173 under the Securities Act) is hereinafter referred to as the “ Prospectus ,” and the term “ preliminary prospectus ” means the Base Prospectus, as supplemented by the preliminary prospectus supplement dated February 11, 2013.

For purposes of this Agreement, “ free writing prospectus ” has the meaning set forth in Rule 405 under the Securities Act and “ Time of Sale Prospectus ” means the Base Prospectus and the preliminary prospectus, together with the free writing prospectuses, if any, each substantially in the form of Schedule II hereto, as of the Applicable Time of Sale (as defined herein). As used herein, the terms “ Registration Statement ,” “ Base Prospectus ,” “ preliminary prospectus ,” “ Time of Sale Prospectus ” and “ Prospectus ” shall include the documents, if any, incorporated by reference therein. The terms “ supplement ,” “ amendment ” and “ amend ” as used in this Agreement with respect to the Registration Statement, the Base Prospectus, the Time of Sale Prospectus, the preliminary prospectus or any free writing prospectus shall include all documents subsequently filed by the Company with the Commission pursuant to the Securities Exchange Act of 1934, as amended (the “ Exchange Act ”), that are deemed to be incorporated by reference therein.

1. Representations and Warranties of the Company . The Company represents and warrants to and agrees with each of the Underwriters that:

(a) The Company and the transactions contemplated by this Agreement meet the requirements for using Form S-3 under the Securities Act. The Registration Statement is an “automatic shelf registration statement” as defined under Rule 405 of the Securities Act that has been filed with the Commission not earlier than three years prior to the date hereof; and no notice of objection of the Commission to the use of such registration statement or any post-effective amendment thereto pursuant to Rule 401(g)(2) under the Securities Act has been received by the Company. No stop order

 

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suspending the effectiveness of the Registration Statement is in effect, and no proceedings for such purpose are pending before or, to the knowledge of the Company, contemplated by the Commission.

(b) (i) Each document, if any, filed or to be filed pursuant to the Exchange Act and incorporated by reference in the Registration Statement, the Time of Sale Prospectus and the Prospectus complied or will comply when so filed in all material respects with the Exchange Act and the applicable rules and regulations of the Commission thereunder, (ii) the Registration Statement does not contain and, as amended or supplemented, if applicable, will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading, (iii) the Registration Statement, the Time of Sale Prospectus, the Prospectus and each issuer free writing prospectus (as defined in Rule 433 of the Securities Act) (an “ Issuer Free Writing Prospectus ”) comply and, as amended or supplemented, if applicable, will comply in all material respects with the Securities Act and the applicable rules and regulations of the Commission thereunder, (iv) the Time of Sale Prospectus and any Issuer Free Writing Prospectus did not at February 11, 2013 at 4:45 p.m. EST (the “ Applicable Time of Sale ”) and will not at the Closing Date contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, and (v) the Prospectus does not as of its date contain and will not as of the Closing Date, as amended or supplemented, if applicable, contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, except that the representations and warranties set forth in this paragraph do not apply to statements or omissions in the Registration Statement, the Time of Sale Prospectus, the Prospectus or any Issuer Free Writing Prospectus based upon information relating to any Underwriter furnished to the Company in writing by such Underwriter through the Representatives expressly for use therein. No order preventing or suspending the use of any preliminary prospectus has been issued by the Commission and no proceedings for that purpose shall have been instituted or, to the knowledge of the Company, threatened or contemplated by the Commission.

(c) The Company is a well known seasoned issuer (as defined in Rule 405 under the Securities Act) and is not an “ineligible issuer” pursuant to Rules 164, 405 and 433 under the Securities Act. Any free writing prospectus that the Company is required to file pursuant to Rule 433(d) under the Securities Act has been, or will be, filed with the Commission in accordance with the requirements of the Securities Act and the applicable rules and regulations of the Commission thereunder. Each free writing prospectus that the Company has filed, or is required to file, pursuant to Rule 433(d) under the Securities Act complies or will comply in all material respects with the requirements of the Securities Act and the applicable rules and regulations of the Commission thereunder. Except for the free writing prospectuses, if any, identified in Schedule II hereto, and electronic road shows, if any, furnished to you before first use, the Company has not prepared, used or referred to, and will not, without your prior consent, prepare, use or refer to, any free writing prospectus.

 

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(d) The Company has been duly organized, is validly existing as a company in good standing (including as an exempted company) under the laws of Bermuda, has the power and authority to own, lease and operate its property and to conduct its business as described in the Registration Statement, the Time of Sale Prospectus and the Prospectus and is duly registered, qualified and authorized to transact business and is in good standing in each jurisdiction in which the conduct of its business or its ownership, leasing or operation of property requires such registration, qualification or authorization, except to the extent that the failure to be so registered, qualified or authorized or be in good standing would not have a material adverse effect on the condition, financial or otherwise, or on the earnings, business or operations of the Company and its subsidiaries taken as a whole (a “ Material Adverse Effect ”).

(e) Partner Reinsurance Company Ltd., a Bermuda company (“ Partner Reinsurance ”), Partner Reinsurance Company of the U.S. (“ PartnerRe U.S. ”) and Partner Reinsurance Europe SE, an Irish company (“ PartnerRe Europe ” and, collectively with Partner Reinsurance and PartnerRe U.S., the “ Subsidiaries ”) are each wholly owned, directly or indirectly, by the Company, and are the only “significant subsidiaries” of the Company within the meaning of Rule 405 under the Securities Act. Each of the Subsidiaries has been duly organized, is validly existing as a limited liability company, corporation or other legal entity, as the case may be, in good standing (including, in the case of Partner Reinsurance, as an exempted company) under the laws of the jurisdiction of its organization, has the power and authority to own, lease and operate its property and to conduct its business as described in the Registration Statement, Time of Sale Prospectus and the Prospectus and is duly registered, qualified and authorized to transact business and is in good standing in each jurisdiction in which the conduct of its business or its ownership, leasing or operation of property requires such registration, qualification or authorization, except to the extent that the failure to be so registered, qualified or authorized or be in good standing would not have a Material Adverse Effect; and all of the issued and outstanding shares of capital stock or limited liability company interests of each Subsidiary have been duly authorized and are validly issued, and with respect to capital stock are fully paid and non-assessable, and are owned directly or indirectly by the Company, free and clear of all security interests, liens, encumbrances, equities or claims.

(f) All of the outstanding shares of capital stock of the Company have been duly authorized and are validly issued, fully paid and non-assessable, conform as to legal matters to the descriptions thereof contained in the Registration Statement, Time of Sale Prospectus and the Prospectus and are not and will not be subject to any preemptive or similar rights.

(g) The Company and the Subsidiaries maintain disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under the Exchange Act) that comply with the requirements of the Exchange Act; such disclosure controls and procedures have been designed to ensure that the information required to be disclosed by the Company in reports filed under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms, and (ii) accumulated and communicated to management, including the chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding disclosure; and such disclosure controls and procedures are effective.

 

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(h) This Agreement has been duly authorized, executed and delivered by the Company.

(i) The Certificate of Designation, Preferences and Rights of 5.875% Series F Non-Cumulative Redeemable Preferred Shares of the Company has been duly authorized and, on or prior to the Closing Date, will be filed with the appropriate authorities in Bermuda.

(j) The Shares have been duly authorized and, when the Shares are issued and delivered pursuant to this Agreement, such Shares will have been validly issued, fully paid and nonassessable and will conform as to legal matters to the description thereof contained in the Registration Statement, Time of Sale Prospectus and Prospectus.

(k) Application will be made to list the Shares on the New York Stock Exchange and to register the Shares under the Exchange Act.

(l) The issuance of the Shares will not be subject to any preemptive rights other than those that have been waived.

(m) Neither the Company nor any of the Subsidiaries is (i) in violation of its certificate of incorporation, certificate of formation, operating agreement, memorandum of association or bye-laws or other organizational documents, (ii) in violation of any law, ordinance, administrative or governmental rule or regulation applicable to any of them or any of their respective properties (except where any such violation or violations individually or in the aggregate would not have a Material Adverse Effect), (iii) in violation of any judgment, injunction, restraining order, decree or order of any nature (collectively, any “ Order ”) of any court, tribunal, regulatory body, administrative agency or other governmental body, commission, agency, or official, or any arbitrator or self-regulatory organization (including, without limitation, any insurance regulatory agency or body) (collectively, a “ Regulatory Authority ”) having jurisdiction over any of them (except where any such violation or violations individually or in the aggregate would not have a Material Adverse Effect), or (iv) in default in the performance or observance of any obligation, agreement, covenant or condition contained in any bond, debenture, note or any other evidence of indebtedness or in any contract, agreement, indenture, lease or other instrument to which any of the Company or the Subsidiaries is a party or by which any of them is bound or to which any of their respective properties or assets is subject, and no condition or state of facts exists which, with the passage of time or the giving of notice or both, would constitute such a default (except where any such default or defaults individually or in the aggregate would not have a Material Adverse Effect).

(n) Neither the execution and delivery by the Company of, or the performance by it of its obligations under, this Agreement or the Shares, nor the consummation of the transactions contemplated hereby will (A) conflict with or contravene any provision of (i) any applicable statute, law, regulation, ruling or filing, (ii) the memorandum of

 

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association, certificate of incorporation, certificate of formation, operating agreement or bye-laws or other organizational documents of any of the Company or the Subsidiaries, (iii) any bond, debenture, note or any other evidence of indebtedness or any contract, agreement, indenture, lease or other instrument to which any of the Company or the Subsidiaries is a party or by which any of them is or may be bound or to which any of their respective properties or assets is or may be subject, or (iv) any Order of any Regulatory Authority that is applicable to any of the Company or the Subsidiaries or any of their respective properties, except, with respect to the foregoing clauses (i), (iii), and (iv), to the extent such conflict or contravention would not have a Material Adverse Effect, or (B) result in the creation or imposition of any lien, charge or encumbrance upon any property or assets of any of the Company or the Subsidiaries pursuant to the terms of any agreement or instrument to which any of them is a party or by which any of them is bound or to which any of the property or assets of any of them is subject (except where any such lien, charge or encumbrance would not have a Material Adverse Effect).

(o) No consent, approval, authorization or order of, qualification with, or registration or filing with any Regulatory Authority applicable to the Company or any of its properties is required for the performance by the Company of its obligations under this Agreement or the Shares, except such as may be required (i) for registrations and filings under the Securities Act or the Exchange Act, (ii) under the Insurance Laws (as defined below) of Bermuda, (iii) under the securities or Blue Sky or insurance securities laws of the various states in connection with the offer and sale of the Shares and (iv) by the Bermuda Monetary Authority, all of which have been or will be effected or obtained on or prior to the Closing Date.

(p) The consolidated financial statements of the Company (together with related schedules and notes) incorporated by reference in the Time of Sale Prospectus and the Prospectus comply as to form in all material respects with the requirements of the Securities Act and the applicable rules and regulations of the Commission thereunder and present fairly the consolidated financial position of the Company as at the dates indicated and the results of its operations and its cash flows for the periods specified; such financial statements and related schedules and notes have been prepared in conformity with United States generally accepted accounting principles applied on a consistent basis during the periods involved. The interactive data in eXtensible Business Reporting Language incorporated by reference in the Time of Sale Prospectus and the Prospectus fairly presents the information called for in all material respects and is prepared in accordance with the Commission’s rules and guidelines applicable thereto.

(q) There has not occurred any material adverse change or any development involving a prospective material adverse change in the condition, financial or otherwise, or on the earnings, business or operations of the Company and the Subsidiaries, taken as a whole, from that set forth in the Registration Statement, Time of Sale Prospectus and the Prospectus (exclusive of any amendments or supplements thereto subsequent to the date of this Agreement).

(r) There are no legal or governmental proceedings pending or, to the knowledge of the Company or any of the Subsidiaries, threatened, to which any of them

 

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is a party or to which any of their respective properties is subject that are required to be described in the Registration Statement, Time of Sale Prospectus and the Prospectus and are not so described or any statutes, regulations, agreements, contracts, indentures, leases, or other instruments or documents that are required to be described in the Registration Statement, Time of Sale Prospectus and the Prospectus or to be filed as exhibits to the Registration Statement or to any documents deemed incorporated by reference therein that are not described or filed as required.

(s) Each of the Company and the Subsidiaries (i) is in compliance with the applicable requirements of the insurance statutes, including the statutes relating to companies which control insurance companies, and the rules, regulations and interpretations of the insurance regulatory authorities thereunder (“ Insurance Laws ”) of its jurisdiction of incorporation, and (ii) has filed all reports, information statements, documents, and other information required to be filed thereunder, except in the case of the foregoing clauses (i) and (ii) where the failure to comply would not have a Material Adverse Effect; each of the Company and its Subsidiaries (as applicable) maintains its books and records in accordance with and is in compliance with the Insurance Laws of other jurisdictions which are applicable to any of them, except where the failure to comply would not have a Material Adverse Effect.

(t) Each of the Company and the Subsidiaries possesses such consents, authorizations, approvals, orders, franchises, licenses, certificates (including certificates of authority), or permits issued by any regulatory agencies or bodies (collectively, “ Permits ”) of and from, and has made all declarations and filings with, all Regulatory Authorities which are necessary to conduct the business as described in the Registration Statement, Time of Sale Prospectus and the Prospectus, except where the failure to possess such Permits or to make such declarations or filings would not have a Material Adverse Effect; all of such Permits are in full force and effect, and neither the Company nor any of the Subsidiaries has received any notification from any Regulatory Authority, in the United States, each such entity’s jurisdiction of organization or elsewhere concerning any alleged violation of the terms of, or proposed proceeding to revoke or that could reasonably be expected to lead to the revocation, modification, termination, suspension or any other material impairment of the rights of the holder of any Permit or to the effect that any additional Permit from such authority, commission or body is needed to be obtained by any of them or that any of them is not in compliance with any applicable Insurance Laws; and no insurance regulatory agency or body has issued any order or decree impairing, restricting or prohibiting the payment of any dividends by the Company or any of the Subsidiaries or the continuation of the business of any of them as currently conducted.

(u) The preliminary prospectus filed as part of the Registration Statement pursuant to Rule 424 under the Securities Act, complied when so filed in all material respects with the Securities Act and the applicable rules and regulations of the Commission thereunder.

(v) The Company is not, and after giving effect to the offering and sale of the Shares and the application of the proceeds thereof as described in the Registration

 

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Statement, Time of Sale Prospectus and the Prospectus, will not be, required to register as an “investment company” within the meaning of the Investment Company Act of 1940, as amended.

(w) There are no contracts, agreements or understandings between the Company and any person granting such person the right to require the Company to include any securities of the Company with the Shares registered pursuant to the Registration Statement or, except as described in the Registration Statement, Time of Sale Prospectus and the Prospectus, to file a registration statement under the Securities Act with respect to any securities of the Company, in each case, other than such rights as have been waived.

(x) Each of the Subsidiaries is duly registered as an insurer or reinsurer where it is required to be so registered to conduct its business as described in the Registration Statement, Time of Sale Prospectus and the Prospectus (except where the failure to be so registered would not have a Material Adverse Effect) and is subject to regulation and supervision in its jurisdiction of organization, and the Company is not required to be so registered. Each of the Company and the Subsidiaries is duly licensed or admitted as an insurer or an insurance holding company, as applicable, in each jurisdiction where it is required to be so licensed or admitted to conduct its business as described in the Registration Statement, Time of Sale Prospectus and the Prospectus, except for where the failure to be so licensed or admitted would not have a Material Adverse Effect.

(y) None of the Underwriters or any subsequent purchasers of the Shares (other than purchasers resident in Bermuda for Bermuda exchange control purposes) is subject to any stamp duty, excise or similar tax imposed in Bermuda in connection with the offering, sale or purchase of the Shares.

(z) Any material tax returns required to be filed by either the Company or any of the Subsidiaries in any jurisdiction have been filed, and any material taxes, including franchise taxes and similar fees and any withholding taxes, penalties and interest, assessments and fees and other charges due or claimed to be due from such entities have been paid, other than any of those being contested in good faith and for which adequate reserves have been provided or any of those currently payable without penalty or interest.

(aa) The Company and Partner Reinsurance have each received from the Bermuda Minister of Finance an assurance under The Exempted Undertakings Tax Protection Act, 1966 of Bermuda, to the effect set forth in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2011 under the caption “Business—Taxation of the Company and its Subsidiaries—Bermuda,” and neither the Company nor Partner Reinsurance has received any notification to the effect (or is otherwise aware) that such assurance may be revoked or otherwise not honored by the Bermuda government.

(bb) There are no currency exchange control laws or withholding taxes of Bermuda that would be applicable to the payment of dividends (i) on the Shares by the Company or (ii) by Partner Reinsurance to the Company.

 

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(cc) Deloitte & Touche Ltd., who reported on the consolidated financial statements and supporting schedules of the Company incorporated by reference in the Registration Statement, Time of Sale Prospectus and the Prospectus (or any amendment or supplement thereto), is an independent registered public accounting firm with respect to the Company as required by the Securities Act.

(dd) The Company maintains, and each of the Subsidiaries maintains a system of internal control over financial reporting (as such term is defined in Rule 13a-15(f) of the Exchange Act) that complies with the requirements of the Exchange Act and sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorization; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with United States generally accepted accounting principles and with statutory accounting principles, as the case may be, and to maintain accountability for assets; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any differences. Since the date of the latest audited financial statements included or incorporated by reference in the Registration Statement, Time of Sale Prospectus and the Prospectus, there has been no change in the Company’s and the Subsidiaries’ internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s and each of the Subsidiaries’ internal control over financial reporting.

(ee) The Company has duly, validly and irrevocably appointed PartnerRe U.S. Corporation as its agent for the purposes described in Section 13 of this Agreement and to receive service of process in actions against it arising out of or in connection with violations of the U.S. Federal securities laws in any Federal court or state court in the United States relating to the transactions covered by the Registration Statement, Time of Sale Prospectus and the Prospectus.

(ff) None of the Company nor the Subsidiaries or any employee or agent thereof has made any payment of funds or received or retained any funds in violation of any law, rule or regulation, which payment, receipt or retention of funds is of a character required to be disclosed in the Registration Statement, Time of Sale Prospectus or the Prospectus, except where such payment, receipt or retention of funds would not have a Material Adverse Effect.

(gg) Consummation of the transactions contemplated by this Agreement, including but not limited to any actions taken pursuant to the indemnification and contribution provisions set forth herein, will not constitute unlawful financial assistance under Bermuda law.

(hh) The statements set forth in the Time of Sale Prospectus and the Prospectus under the captions “Description of Series F Non-Cumulative Redeemable Preferred Shares” and “Description of Our Capital Shares,” insofar as they purport to constitute a summary of the terms of the Shares, and under the captions “Material Bermuda and United States Federal Income Tax Consequences” and “Enforcement of Civil Liabilities Under United States Federal Securities Laws”, insofar as they purport to describe the provisions of the laws and documents referred to therein, are accurate, complete and fair.

 

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(ii) None of the Company, any of its subsidiaries or, to the knowledge of the Company, any director, officer, agent, employee or other person acting on behalf of the Company or any of its subsidiaries has (i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; or (iii) violated or is in violation of any provision of the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (the “ FCPA ”), or the U.K. Bribery Act 2010 (the “ Bribery Act ”); and the Company and its subsidiaries have conducted their businesses in compliance with the FCPA and the Bribery Act and have instituted and maintain policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance therewith.

(jj) The operations of the Company and its subsidiaries are and have been conducted at all times in material compliance with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering statutes of all jurisdictions where the Company and its subsidiaries conduct business, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “ Money Laundering Laws ”) and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of its subsidiaries with respect to the Money Laundering Laws is pending or, to the knowledge of the Company, threatened.

(kk) None of the Company, any of its subsidiaries or, to the knowledge of the Company, any director, officer, agent, employee or affiliate of the Company or any of its subsidiaries is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury (“ OFAC ”) or any other relevant sanctions authority; and the Company will not, directly or indirectly, use the proceeds of the offering of the Shares hereunder, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity, for the purpose of financing the activities of any person currently subject to any U.S. sanctions administered by OFAC or any other relevant sanctions authority.

2. Agreements to Sell and Purchase . The Company hereby agrees to sell to the several Underwriters, and each Underwriter, upon the basis of the representations and warranties herein contained, but subject to the conditions hereinafter stated, hereby agrees, severally and not jointly, to purchase from the Company at $25.00 per Share; less $0.5000 per Share with respect to Shares reserved for sale to certain institutions or less $0.7875 per Share with respect to the remaining Shares (the “ Purchase Price ”) the number of Shares set forth in Schedule I hereto opposite the name of such Underwriter.

The Company hereby agrees that, without the prior written consent of the Representatives on behalf of the Underwriters, it will not, during the period beginning on the date hereof and

 

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continuing to and including the 30 th day from the date of the Prospectus Supplement, directly or indirectly (i) offer, pledge, sell, contract to sell, sell any option or contract to purchase, grant any option, right or warrant for the sale of, or otherwise dispose of or transfer any Shares (or any securities convertible into Shares) or (ii) enter into any swap or any other agreement or any transaction that transfers, in whole or in part, directly or indirectly, the economic consequence of ownership of any Shares, whether any such swap or transaction is to be settled by delivery of Shares or other securities, in cash or otherwise. This lock-up provision applies to Shares (and any securities substantially similar to the Shares) and to securities convertible into or exchangeable or exercisable for or repayable with Shares (or any securities substantially similar to the Shares).

3. Terms of Public Offering . The Company is advised by you that the Underwriters propose to make a public offering of their respective portions of the Shares as soon after this Agreement has become effective as in your judgment is advisable. The Company is further advised by you that the Shares are to be offered to the public initially at $25.00 per Share (the “ Public Offering Price ”) and to certain dealers selected by you at a price that represents a concession not in excess of $0.30 per Share with respect to Shares reserved for sale to certain institutions, or $0.50 per Share with respect to the remaining Shares, below the Public Offering Price. Any underwriter may allow, and those certain dealers may reallow, a discount not in excess of $0.45 per Share to the other dealers.

4. Payment and Delivery . Payment of the purchase price for, and delivery of, the Shares shall be made at the offices of Davis Polk & Wardwell LLP, 450 Lexington Avenue, New York, New York 10017, at 9:00 a.m., New York City time, on February 14, 2013, or at such other time on the same or such other date, not later than three business days after the date of this Agreement as shall be designated in writing by you. The time and date of such payment are hereinafter referred to as the “ Closing Date .”

The Shares to be purchased by each Underwriter hereunder, in such authorized denominations and registered in such names as the Representatives may request upon at least forty-eight hours’ prior notice to the Company, shall be delivered by or on behalf of the Company to the Representatives through the facilities of The Depository Trust Company (“ DTC ”), for the respective accounts of the Underwriters of the Shares to be purchased by them, against payment by or on behalf of such Underwriters of the purchase price therefore by wire transfer of immediately available funds to the account specified by the Company at least forty-eight hours in advance, by the Company causing DTC to credit securities entitlements with respect to the Securities to the securities account(s) at DTC designated by the Representatives on behalf of the Underwriters.

The certificates, if any, for the Shares purchased by the Underwriters shall be registered in such names and in such denominations as you shall request in writing not later than one full business day prior to the Closing Date. The certificates, if any, evidencing the Shares shall be delivered to you on the Closing Date for the respective accounts of the several Underwriters, with any transfer taxes payable in connection with the transfer of the Shares to the Underwriters duly paid, against payment of the Purchase Price with respect to such Shares.

 

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5. Conditions to the Underwriters’ Obligations . The several obligations of the Underwriters to purchase and pay for the Shares on the Closing Date are subject, in the discretion of the Representatives, to the condition that all representations and warranties and other statements of the Company in this Agreement are, at and as of the Applicable Time of Sale and the Closing Date, true and correct, the condition that the Company shall have performed all of its obligations hereunder theretofore to be performed, and to the following conditions:

(a) The Prospectus, as amended or supplemented, and each Issuer Free Writing Prospectus relating to the Shares shall have been filed with the Commission within the applicable time periods prescribed for such filing by the rules and regulations under the Securities Act, to the extent required; no stop order suspending the effectiveness of the Registration Statement shall have been instituted or shall be pending or, to the knowledge of the Company, shall be contemplated by the Commission, and any request on the part of the Commission for additional information shall have been complied with to the reasonable satisfaction of the Underwriters.

(b) Subsequent to the execution and delivery of this Agreement and prior to:

(i) the Closing Date, there shall not have occurred any downgrading, nor shall any notice have been given of any intended or potential downgrading or of any review for a possible change that does not indicate the direction of the possible change, in the rating accorded the Company’s securities by Standard & Poor’s Rating Services, Moody’s Investor Service, Inc. or Fitch Inc.;

(ii) the Closing Date, there shall not have occurred any change, or any development involving a prospective change, in the condition, financial or otherwise, or in the earnings, business or operations of the Company and its Subsidiaries, taken as a whole, from that set forth in the Time of Sale Prospectus (exclusive of any amendments or supplements thereto subsequent to the date of this Agreement) that, in your judgment, is material and adverse and that makes it, in your judgment, impracticable to proceed with the offer, sale or delivery of the Shares on the terms and in the manner contemplated in the Time of Sale Prospectus.

(c) The Underwriters shall have received on the Closing Date a certificate, dated the Closing Date and signed by an executive officer of the Company, to the effect set forth in Section 5(b)(i) above and to the effect that (A) the representations and warranties of the Company contained in this Agreement are true and correct as of the Closing Date and that the Company has complied with all of the agreements and satisfied all of the conditions on its part to be performed or satisfied hereunder on or before the Closing Date; and (B) there shall not have occurred any material adverse change, or any development involving a prospective material adverse change in the condition, financial or otherwise, or in the earnings, business or operations of the Company and its subsidiaries, taken as a whole, from that set forth in the Time of Sale Prospectus (exclusive of any amendments or supplements thereto subsequent to the date of this Agreement).

 

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(d) The Underwriters shall have received on the Closing Date an opinion and letter of Davis Polk & Wardwell LLP, United States counsel for the Company, dated the Closing Date and addressed to you, as Representatives of the Underwriters in form and substance reasonably satisfactory to counsel for the Underwriters, to the effect set forth on Exhibits A and A-1 .

(e) The Underwriters shall have received on the Closing Date an opinion of Jean-Paul Dyer, Counsel for the Company, dated the Closing Date, and addressed to you, as Representatives of the Underwriters, in form and substance reasonably satisfactory to counsel for the Underwriters, to the effect set forth in Exhibit B .

(f) The Underwriters shall have received on the Closing Date an opinion of Mayer Brown LLP, counsel for the Underwriters, dated the Closing Date in form and substance satisfactory to the Underwriters.

The opinions described in paragraphs 5(d) - 5(e) above shall be rendered to the Underwriters at the request of the Company and shall so state therein.

(g) The Underwriters shall have received, on the date hereof and on the Closing Date a letter dated the date hereof or the Closing Date, as the case may be, in form and substance satisfactory to the Underwriters, from Deloitte & Touche Ltd., independent chartered accountants, containing statements and information of the type ordinarily included in accountants’ “comfort letters” to underwriters with respect to the financial statement and certain financial information contained in or incorporated by reference into the Registration Statement, the Time of Sale Prospectus and the Prospectus.

(h) The Shares shall have been pre-approved for listing, subject only to official notice of issuance, on the New York Stock Exchange, and the Shares shall have been registered under the Exchange Act.

(i) The Company shall have furnished or caused to be furnished to you such further certificates and documents as you shall have reasonably requested.

6. Covenants of the Company . In further consideration of the agreements of the Underwriters herein contained, the Company covenants with each Underwriter as follows:

(a) To furnish to you, upon request, without charge, five conformed copies of the Registration Statement and of each amendment thereto (including financial statements, all exhibits thereto and documents incorporated therein by reference and exhibits thereto), and for delivery to each other Underwriter, a conformed copy of the Registration Statement (without exhibits thereto but including documents incorporated therein by reference), and to furnish to you in New York City and to each Underwriter and dealer, without charge, prior to 10:00 A.M. New York City time on the business day next succeeding the date of this Agreement and from time to time as expeditiously as possible during the period mentioned in paragraph (c) below, as many copies of the Time of Sale Prospectus, Prospectus, any documents incorporated therein by reference and exhibits thereto, and any supplements and amendments thereto or to the Registration

 

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Statement as originally filed and of each amendment thereto, as you may reasonably request. The Company consents to the use of the Time of Sale Prospectus and the Prospectus (and of any amendment or supplement thereto) in accordance with the provisions of the Securities Act and with the securities or Blue Sky laws of the jurisdictions in which the Shares are offered by the several Underwriters and by all dealers to whom Shares may be sold, in connection with the offering and sale of the Shares. The Company will cause the Time of Sale Prospectus and the Prospectus (and of any amendment or supplement thereto) to be filed with the Commission pursuant to the applicable paragraph of Rule 424(b) within the required time period.

(b) (i) Before amending or supplementing the Registration Statement, Time of Sale Prospectus or the Prospectus, to furnish to you a copy of each such proposed amendment or supplement and not to file any such proposed amendment or supplement to which you reasonably object, and to file with the Commission within the applicable period specified in Rule 424(b) under the Securities Act any prospectus required to be filed pursuant to such Rule, and (ii) during the period mentioned in paragraph (c) or (d) below not to file any information, documents or reports pursuant to the Exchange Act that upon filing becomes a document incorporated by reference in the Registration Statement, without delivering a copy of such information, documents or reports to you, as Representatives of the Underwriters, prior to or concurrently with such filing.

(c) If the Time of Sale Prospectus is being used to solicit offers to buy the Shares at a time when the Prospectus is not yet available to prospective purchasers and any event shall occur or condition exist as a result of which it is necessary to amend or supplement the Time of Sale Prospectus in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, or if any event shall occur or condition exist as a result of which the Time of Sale Prospectus conflicts with the information contained in the Registration Statement then on file or if, in the opinion of counsel for the Underwriters, it is necessary to amend or supplement the Time of Sale Prospectus to comply with applicable law, forthwith to prepare, file with the Commission and furnish, at its own expense, to the Underwriters and to any dealer upon request, either amendments or supplements to the Time of Sale Prospectus so that the statements in the Time of Sale Prospectus as so amended or supplemented will not, in the light of the circumstances when delivered to a prospective purchaser, be misleading or so that the Time of Sale Prospectus, as amended or supplemented, will no longer conflict with the Registration Statement, or so that the Time of Sale Prospectus, as amended or supplemented, will comply with applicable law.

(d) If, during such period after the first date of the public offering of the Shares as in the opinion of counsel for the Underwriters the Prospectus (or in lieu thereof the notice referred to in Rule 173(a) under the Securities Act) is required by law to be delivered in connection with sales by an Underwriter or dealer, any event shall occur or condition exist as a result of which it is necessary to amend or supplement the Prospectus in order to make the statements therein, in the light of the circumstances when the Prospectus (or in lieu thereof the notice referred to in Rule 173(a) under the Securities Act) is delivered to a purchaser, not misleading, or if, in the opinion of counsel for the Underwriters, it is necessary to amend or supplement the Prospectus to comply with

 

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applicable law, forthwith to prepare, file with the Commission and furnish, at its own expense, to the Underwriters and to the dealers (whose names and addresses you will furnish to the Company) to which Shares may have been sold by the Underwriters and to any other dealers upon request, either amendments or supplements to the Prospectus so that the statements in the Prospectus as so amended or supplemented will not, in the light of the circumstances when the Prospectus (or in lieu thereof the notice referred to in Rule 173(a) under the Securities Act) is delivered to a purchaser, be misleading or so that the Prospectus, as amended or supplemented, will comply with law.

(e) To endeavor to qualify the Shares for offer and sale by the several Underwriters and by dealers under the securities, or Blue Sky laws of such jurisdictions as you shall reasonably request.

(f) To make generally available to its securityholders as soon as practicable, but in any event not later than fifteen months after the effective date of the Registration Statement (as defined in Rule 158(c)), an earnings statement of the Company and its subsidiaries (which need not be audited) complying with Section 11(a) of the Securities Act and the rules and regulations of the Commission thereunder (including at the option of the Company, Rule 158).

(g) Whether or not the transactions contemplated in this Agreement are consummated or this Agreement is terminated, to pay or cause to be paid all expenses incident to the performance of obligations under this Agreement, including: (i) the fees, disbursements and expenses of the Company (including local and special counsel) and accountants in connection with the registration and delivery of the Shares under the Securities Act and all other fees or expenses in connection with the preparation and filing of the Registration Statement, any preliminary prospectus, the Time of Sale Prospectus, the Prospectus, any Issuer Free Writing Prospectus and any amendments and supplements to any of the foregoing, including all printing or reproduction costs associated therewith, and the mailing and delivering of copies thereof to the Underwriters and dealers, in the quantities herein above specified, (ii) all costs and expenses related to the transfer and delivery of the Shares to the Underwriters, including any transfer or other taxes payable thereon, (iii) the costs of producing this Agreement and any Blue Sky memorandum in connection with the offer and sale of the Shares under state securities laws and all expenses in connection with the qualification of the Shares for offer and sale under state securities laws as provided in Section 6(e) hereof, including filing fees and the reasonable fees, expenses and disbursements of counsel for the Underwriters in connection with the Blue Sky memoranda and such qualification, (iv) any filing fees and disbursements of counsel to the Underwriters incurred in connection with the review and qualification of the offering of the Shares by the Financial Industry Regulatory Authority, Inc., (v) any fees charged by rating agencies for the rating of the Shares, (vi) all fees and expenses in connection with the preparation and filing of the registration statement on Form 8-A relating to the Shares and all costs and expenses incident to any listing of the Shares on the New York Stock Exchange, (vii) the cost of producing certificates representing the Shares, (viii) the costs and charges of any transfer agent, registrar or depository, (ix) the costs and expenses of the Company relating to investor presentations on any “road show” undertaken in connection with the marketing of the offering of the Shares, including,

 

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without limitation, expenses associated with the production of road show slides and graphics, fees and expenses of any consultants engaged in connection with the road show presentations with the prior approval of the Company, travel and lodging expenses of the representatives and officers of the Company and any such consultants, and the cost of any aircraft chartered in connection with the road show, and (x) all other costs and expenses incident to the performance of the obligations of the Company hereunder for which provision is not otherwise made in this Section. It is understood, however, that except as provided in this Section, Section 8 below and the last paragraph of Section 10 below, the Underwriters will pay all of their costs and expenses, including fees and disbursements of their counsel, stock transfer taxes payable on resale of any of the Shares by them and any advertising expenses connected with any offers they may make.

(h) To prepare a final term sheet, containing solely a description of the Shares, substantially in the form of Schedule II to this Agreement and approved by the Representatives, and to file such term sheet pursuant to Rule 433(d) under the Act within the time period prescribed by such rule.

(i) To not take, directly or indirectly, any action designed to or that would constitute or that might reasonably be expected to cause or result in, under the Exchange Act or otherwise, stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Shares.

7. Covenants of the Underwriters . Each Underwriter hereby represents and agrees that:

(a) It has not and will not distribute any free writing prospectus in a manner reasonably designed to lead to its broad unrestricted dissemination, and it will not otherwise be required to file any free writing prospectus with the Commission, in accordance with Rule 433 under the Securities Act, as a result of any action taken or caused to be taken by such Underwriter, unless such action is consented to in advance by the Company.

(b) It has not and will not, without the prior written consent of the Company, use any free writing prospectus that contains the final terms of the Shares unless such terms have previously been included in a free writing prospectus filed with the Commission; provided that Underwriters may use a term sheet substantially in the form of Schedule II hereto without the consent of the Company; and provided further that any Underwriter using such term sheet shall notify the Company, and provide a copy of such term sheet to the Company, prior to, or substantially concurrently with, the first use of such term sheet.

(c) It has not and will not use, authorize use of, refer to, or participate in the planning for use of, any “free writing prospectus”, as defined in Rule 405 under the Securities Act (which term includes use of any written information furnished to the Commission by the Company and not incorporated by reference into the Registration Statement and any press release issued by the Company) other than (i) one or more term sheets relating to the Shares which are not Issuer Free Writing Prospectuses and which

 

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contain preliminary terms of the Shares and related customary information not inconsistent with the final term sheet filed by the Company pursuant to Section 6(h) hereof, (ii) any issuer free writing prospectus listed on Schedule II or prepared pursuant to Section 6(h) above or any “electronic road show” (as defined in Rule 433 under the Securities Act) furnished to the Company before first use, or (iii) any free writing prospectus prepared by such Underwriter and approved by the Company in advance in writing (each such free writing prospectus referred to in clauses (i) or (iii) an “ Underwriter Free Writing Prospectus ”).

(d) Any Underwriter Free Writing Prospectus used or referred to by it, complied or will comply in all material respects with the Securities Act.

8. Indemnity and Contribution . (a) The Company agrees to indemnify and hold harmless each Underwriter, the directors, officers, employees, affiliates and agents of each Underwriter and each person who controls any Underwriter within the meaning of either the Securities Act or the Exchange Act against any and all losses, claims, damages or liabilities, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement for the registration of the Shares at the time it became effective or in any amendment thereof, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Time of Sale Prospectus, any Issuer Free Writing Prospectus, any Company information that the Company has filed, or is required to file, pursuant to Rule 433(d) of the Securities Act or in the Prospectus, or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and the Company agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action; provided , however , that the Company will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission made therein in reliance upon and in conformity with written information furnished to the Company by or on behalf of any Underwriter through the Representatives specifically for inclusion therein. This indemnity agreement will be in addition to any liability which the Company may otherwise have.

(b) Each Underwriter severally and not jointly agrees to indemnify and hold harmless the Company, each of its directors, each of its officers who signs the Registration Statement, and each person who controls the Company within the meaning of either the Securities Act or the Exchange Act, to the same extent as the foregoing indemnity from the Company to each Underwriter, but only with reference to written information relating to such Underwriter furnished to the Company by or on behalf of such Underwriter through the Representatives specifically for inclusion in the documents referred to in the foregoing indemnity. This indemnity agreement will be in addition to

 

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any liability which any Underwriter may otherwise have. The Company acknowledges that the statements set forth in the last full sentence on the cover page, the fourth sentence of the paragraph under “Underwriting—New Issue of Shares”, the entire second paragraph under “Underwriting—Discounts and Commissions” and the first paragraph under “Underwriting—Price Stabilization and Short Positions” in the Time of Sale Prospectus and the Prospectus, constitute the only information furnished in writing by or on behalf of the several Underwriters for inclusion in the Registration Statement, the Time of Sale Prospectus, any Issuer Free Writing Prospectus, any preliminary prospectus or the Prospectus.

(c) Promptly after receipt by an indemnified party under this Section 8 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 8, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it from liability under paragraph (a) or (b) above unless and to the extent it did not otherwise learn of such action and such failure materially prejudices substantial rights or defenses of the indemnifying party and (ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification obligation provided in paragraph (a) or (b) above. The indemnifying party shall be entitled to appoint counsel of the indemnifying party’s choice at the indemnifying party’s expense to represent the indemnified party in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be responsible for the fees and expenses of any separate counsel retained by the indemnified party or parties except as set forth below); provided , however , that such counsel shall be reasonably satisfactory to the indemnified party. Notwithstanding the indemnifying party’s election to appoint counsel to represent the indemnified party in an action, the indemnified party shall have the right to employ separate counsel (including local counsel), and the indemnifying party shall bear the reasonable fees, costs and expenses of such separate counsel if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest, (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and the representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them, (iii) the indemnifying party shall not have employed counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action or (iv) the indemnifying party shall authorize the indemnified party to employ separate counsel at the expense of the indemnifying party. An indemnifying party will not, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising out of such claim, action, suit or proceeding.

(d) In the event that the indemnity provided in paragraph (a) or (b) of this Section 8 is unavailable to or insufficient to hold harmless an indemnified party for any

 

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reason, the Company and the Underwriters severally agree to contribute to the aggregate losses, claims, damages and liabilities (including legal or other expenses reasonably incurred in connection with investigating or defending same) (collectively “ Losses ”) to which the Company and one or more of the Underwriters may be subject in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and by the Underwriters on the other from the offering of the Shares; provided , however , that in no case shall any Underwriter be responsible for any amount in excess of the underwriting discount or commission applicable to the Shares purchased by such Underwriter hereunder. If the allocation provided by the immediately preceding sentence is unavailable for any reason, the Company and the Underwriters severally shall contribute in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and of the Underwriters on the other in connection with the statements or omissions which resulted in such Losses as well as any other relevant equitable considerations. Benefits received by the Company shall be deemed to be equal to the total net proceeds from the offering (before deducting expenses) received by it, and benefits received by the Underwriters shall be deemed to be equal to the total underwriting discounts and commissions, in each case as set forth on the cover page of the Prospectus. Relative fault shall be determined by reference to, among other things, whether any untrue or any alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information provided by the Company on the one hand or the Underwriters on the other, the intent of the parties and their relative knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution were determined by pro rata allocation or any other method of allocation which does not take account of the equitable considerations referred to above. Notwithstanding the provisions of this paragraph (d), no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 8, each person who controls an Underwriter within the meaning of either the Securities Act or the Exchange Act and each director, officer, employee and agent of an Underwriter shall have the same rights to contribution as such Underwriter, and each person who controls the Company within the meaning of either the Securities Act or the Exchange Act, each officer of the Company who shall have signed the Registration Statement and each director of the Company shall have the same rights to contribution as the Company, subject in each case to the applicable terms and conditions of this paragraph 8(d).

9. Termination . This Agreement shall be subject to termination in the absolute discretion of the Representatives, by notice given to the Company prior to delivery of and payment for the Shares, if at any time prior to such time (a) (i) trading of any securities of the Company shall have been suspended by the Commission or the New York Stock Exchange, or trading in securities generally on the New York Stock Exchange shall have been suspended or limited or minimum prices shall have been established on such Exchange, (ii) a banking moratorium shall have been declared either by Federal or New York State authorities, (iii) a material disruption in securities settlement, payment or clearance services in the United States shall have occurred, or (iv) there shall have occurred any outbreak or escalation of hostilities, declaration by the United States of a national emergency or war, or other calamity or crisis, and

 

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(b) in the case of any of the events specified in clause 9(a)(i) or 9(a)(iv), such event makes it, in the sole judgment of the Representatives, impractical or inadvisable to proceed with the offering or delivery of the Shares as contemplated by the Time of Sale Prospectus or the Prospectus.

10. Effectiveness; Defaulting Underwriters . This Agreement shall become effective upon the execution and delivery hereof by the parties hereto.

If, on the Closing Date, any one or more of the Underwriters shall fail or refuse to purchase Shares that it has or they have agreed to purchase hereunder on such date, and the aggregate number of Shares which such defaulting Underwriter or Underwriters agreed but failed or refused to purchase is not more than one-tenth of the aggregate number of the Shares to be purchased on such date, the other Underwriters shall be obligated severally in the proportions that number of Shares set forth opposite their respective names in Schedule I bears to the aggregate number of Shares set forth opposite the names of all such non-defaulting Underwriter(s), or in such other proportions as you may specify, to purchase the Shares which such defaulting Underwriter or Underwriters agreed but failed or refused to purchase on such date; provided that in no event shall the number of Shares that any Underwriter has agreed to purchase pursuant to this Agreement be increased pursuant to this Section 10 by an amount in excess of one-ninth of such number of Shares without the written consent of such Underwriter. If, on the Closing Date, any Underwriter or Underwriters shall fail or refuse to purchase Shares and the aggregate number of Shares with respect to which such default occurs is more than one-tenth of the aggregate number of Shares to be purchased, and arrangements satisfactory to you and the Company for the purchase of such Shares are not made within 36 hours after such default, this Agreement shall terminate without liability on the part of any non-defaulting Underwriter or the Company. In any such case either you or the Company shall have the right to postpone the Closing Date, but in no event for longer than seven days, in order that the required changes, if any, in the Registration Statement and in the Prospectus or in any other documents or arrangements may be effected.

If this Agreement shall be terminated by the Underwriters, or any of them, because of any failure or refusal on the part of the Company to comply with the terms or to fulfill any of the conditions of this Agreement, or if for any reason the Company shall be unable to perform its obligations under this Agreement, the Company will reimburse the Underwriters or such Underwriters as have so terminated this Agreement with respect to themselves, severally, for all out-of-pocket expenses (including the fees and disbursements of their counsel) reasonably incurred by such Underwriters in connection with this Agreement or the offering contemplated hereunder.

11. Counterparts . This Agreement may be signed in two or more counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

12. Applicable Law . This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York.

13. Judicial Proceedings . (a) The Company expressly accepts and irrevocably submits to the non-exclusive jurisdiction of any United States Federal or New York State court

 

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sitting in the Borough of Manhattan, The City of New York, New York, over any suit, action or proceeding arising out of or relating to this Agreement, the Time of Sale Prospectus, the Prospectus or the Shares. To the fullest extent it may effectively do so under applicable law, the Company irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

(b) The Company agrees, to the fullest extent that it may effectively do so under applicable law, that a judgment in any suit, action or proceeding of the nature referred to in Section 13(a) brought in any such court shall be conclusive and binding upon the Company, subject to rights of appeal and may be enforced in the courts of the United States of America or the State of New York (or any other court the jurisdiction to which the Company is or may be subject) by a suit upon such judgment.

(c) The Company irrevocably designates and appoints PartnerRe U.S. Corporation as its authorized agent, upon whom process may be served in any suit, action or proceeding of the nature referred to in Section 13(a) by mailing a copy thereof by registered or certified mail, postage prepaid, return receipt requested, to the agent at the address of the Company specified in Section 14. The Company agrees that such service (i) shall be deemed in every respect effective service of process upon it in every suit, action or proceeding and (ii) shall, to the fullest extent permitted by law, be taken and held to be valid personal service upon and personal delivery to the Company. Notices hereunder shall be conclusively presumed received as evidenced by a delivery receipt furnished by the United States Postal Service or any commercial delivery service.

(d) Nothing in this Section 13 shall affect the right of any Underwriter to serve process in any manner permitted by law, or limit any right to bring proceedings against the Company in the courts of any jurisdiction or to enforce in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction.

14. Notice . Except as otherwise provided herein, notice given pursuant to any provision of this Agreement shall be in writing and shall be delivered (i) if to the Company, at the office of the Company at PartnerRe Ltd., 90 Pitts Bay Road, Pembroke HM 08, Bermuda, Attention: Corporate Secretary; or (ii) if to you, as Representatives of the several Underwriters, care of (A) UBS Securities LLC, 677 Washington Boulevard, Stamford, CT 06901, Attention: Fixed Income Syndicate, (B) Citigroup Global Markets Inc., 388 Greenwich Street, New York, NY 10013, Attention: Transaction Execution Group, (C) Credit Suisse Securities (USA) LLC, Eleven Madison Avenue, New York, NY 10010-3629, Attention: LCD-IBD, (D) Merrill Lynch, Pierce, Fenner & Smith Incorporated, One Bryant Park, New York, NY 10036, Attention: High Grade Syndicate, and (E) Wells Fargo Securities, LLC, 301 S. College Street, Charlotte, NC 28202, Attention: Transaction Management (Fax: 704-383-9165; Email: tmgcapitalmarkets@wellsfargo.com).

15. Headings . The headings of the sections of this Agreement have been inserted for convenience of reference only and shall not be deemed a part of this Agreement.

 

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16. Survival . The provisions of Sections 6(g) and 8 hereof shall survive the termination or cancellation of this Agreement.

17. No Fiduciary Duty . The Company acknowledges and agrees that in connection with this offering, sale of the Shares or any other services the Underwriters may be deemed to be providing hereunder, notwithstanding any preexisting relationship, advisory or otherwise, between the parties or any oral representations or assurances previously or subsequently made by the Underwriters: (i) no fiduciary or agency relationship between the Company and any other person, on the one hand, and the Underwriters on the other, exists; (ii) the Underwriters are not acting as advisor, expert or otherwise, to the Company, including, without limitation, with respect to the determination of the purchase price of the Shares, and such relationship between the Company on the one hand, and the Underwriters, on the other, is entirely and solely commercial, based on arms-length negotiations; (iii) any duties and obligations that the Underwriters may have to the Company shall be limited to those duties and obligations specifically stated herein; and (iv) the Underwriters and their affiliates may have interests that differ from those of the Company. The Company hereby waives any claims that the Company may have against the Underwriters with respect to any breach of fiduciary duty in connection with the sale of the Shares.

 

- 22 -


PARTNERRE LTD.
By:  

/s/ Costas Miranthis

Name:   Costas Miranthis
Title:  

President and Chief

Executive Officer

Accepted as of the date hereof

UBS SECURITIES LLC

CITIGROUP GLOBAL MARKETS INC.

CREDIT SUISSE SECURITIES (USA) LLC

MERRILL LYNCH, PIERCE, FENNER & SMITH

    INCORPORATED

WELLS FARGO SECURITIES, LLC

Acting on behalf of themselves and the several Underwriters named in Schedule I hereto

 

By:   UBS SECURITIES LLC
By:  

/s/ Demetrios Tsapralis

Name:   Demetrios Tsapralis
Title:   Executive Director
By:  

/s/ Rishi Mathur

Name:   Rishi Mathur
Title:   Associate Director
By:   CITIGROUP GLOBAL MARKETS INC.
By:  

/s/ Jack D. McSpadden, Jr.

Name:   Jack D. McSpadden, Jr.
Title:   Managin Director
By:   CREDIT SUISSE SECURITIES (USA) LLC
By:  

/s/ Sharon Harrison

Name:   Sharon Harrison
Title:   Director
By:  

MERRILL LYNCH, PIERCE, FENNER & SMITH

    INCORPORATED

By:  

/s/ Neil Chawhan

Name:   Neil Chawhan
Title:   Director

Underwriting Agreement (Series F)


By:   WELLS FARGO SECURITIES, LLC
By:  

/s/ Carolyn Hurley

Name:   Carolyn Hurley
Title:   Director

 

Underwriting Agreement (Series F)


SCHEDULE I

 

Underwriter

   Number of Shares To Be
Purchased
 

UBS Securities LLC

     1,500,000   

Citigroup Global Markets Inc.

     1,500,000   

Credit Suisse Securities (USA) LLC

     1,500,000   

Merrill Lynch, Pierce, Fenner & Smith

                       Incorporated

     1,500,000   

Wells Fargo Securities, LLC

     1,500,000   

Barclays Capital Inc.

     1,000,000   

RBC Capital Markets, LLC

     1,000,000   

HSBC Securities (USA) Inc.

     250,000   

J.P. Morgan Securities LLC

     250,000   
  

 

 

 

Total

     10,000,000   
  

 

 

 

 

I-1


SCHEDULE II

Free Writing Prospectus

Attached

 

II-1


PartnerRe Ltd.

5.875% SERIES F NON-CUMULATIVE REDEEMABLE PREFERRED SHARES

February 11, 2013

Final Term Sheet

To preliminary prospectus supplement dated February 11, 2013 and prospectus dated April 9, 2012

 

Issuer:    PartnerRe Ltd.
Security Type:    5.875% Series F Non-Cumulative Redeemable Preferred Shares
Anticipated Ratings:*    [omitted]
Size:    10,000,000 shares ($250,000,000)
Trade Date:    February 11, 2013
Settlement Date:    February 14, 2013
Maturity Date:    Perpetual
Liquidation Preference:    $25 per share
Dividend Payment Dates:    Dividends on the Series F preferred shares are payable quarterly only when, as and if declared, on the first day of March, June, September and December, commencing June 1, 2013.
Dividend Rate:    5.875% of the $25 per share liquidation preference per annum (equivalent to $1.46875 per share per annum).
Optional Redemption:    The Series F preferred shares will not be redeemable before March 1, 2018, except in specified circumstances relating to certain capital disqualification and tax events. Beginning on March 1, 2018, PartnerRe Ltd. may redeem the Series F preferred shares, in whole at any time or in part from time to time, at $25.00 per share plus an amount equal to the portion of the quarterly dividend attributable to the then-current dividend period to, but excluding, the redemption date.
Public Offering Price:    $25.00 per share; $250,000,000 total
Underwriting Discounts:    $0.7875 per Series F preferred share for retail orders; $7,500,150 total; and $0.5000 per Series F preferred share for institutional orders; $238,000 total
Proceeds to PartnerRe, before expenses:    $242,261,850
Use of Proceeds:    PartnerRe Ltd. intends to use the net proceeds from the sale of the Series F preferred shares, together with available cash, for the redemption of $290 million aggregate liquidation value of its outstanding Series C preferred shares at an aggregate redemption price equal to the aggregate liquidation preference of the Series C preferred shares to be redeemed, plus accumulated and unpaid dividends thereon, if any, to the redemption date, without interest.
Expected Listing:    NYSE (Ticker: PRE PrF)
CUSIP / ISIN:    G68603128 / BMG686031284

 

II-2


Joint Book Running Managers:   

UBS Securities LLC

Citigroup Global Markets Inc.

Credit Suisse Securities (USA) LLC

Merrill Lynch, Pierce, Fenner & Smith

                       Incorporated

Wells Fargo Securities, LLC

Senior Co-Managers:   

Barclays Capital Inc.

RBC Capital Markets, LLC

J.P. Morgan Securities LLC

Co-Managers:    HSBC Securities (USA) Inc.

 

* An explanation of the significance of ratings may be obtained from the rating agencies. Generally, rating agencies base their ratings on such material and information, and such of their own investigations, studies and assumptions, as they deem appropriate. The anticipated ratings of the Series F Non-Cumulative Redeemable Preferred Shares should be evaluated independently from similar ratings of other securities. A credit rating of a security is not a recommendation to buy, sell or hold securities and may be subject to review, revision, suspension, reduction or withdrawal at any time by the assigning rating agency.

The issuer has filed a registration statement (including a prospectus) with the U.S. Securities and Exchange Commission (the “SEC”) for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement, the preliminary prospectus supplement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov . Alternatively, the issuer, any underwriter or any dealer participating in this offering will arrange to send you the prospectus if you request it by calling UBS Securities LLC toll-free at 1-877-827-6444 (ext 561 3884), Citigroup Global Markets Inc. toll-free at 1-800-831-9146, Credit Suisse Securities (USA) LLC at 1-800-221-1037, Merrill Lynch, Pierce, Fenner & Smith Incorporated toll-free at 1-800-294-1322 o r Wells Fargo Securities, LLC at 1-800-326-5897.

 

II-3


EXHIBIT A

Opinion of Davis Polk & Wardwell LLP

 

  1. PartnerRe U.S. Corporation is a company validly existing in good standing under the laws of the State of Delaware and has full power and authority to own or lease its property and to conduct its business as described in the Time of Sale Prospectus and the Prospectus.

 

  2. The issuance, sale or delivery of the Shares by the Company, the execution and delivery by the Company of, and the performance by the Company of its obligations under, the Underwriting Agreement, the compliance by the Company with the provisions thereof, and the consummation by the Company of any of the transactions contemplated thereby (A) will not contravene any provision of (i) the laws of the State of New York or any federal law of the United States of America that in our experience are normally applicable to general business corporations in relation to transactions of the type contemplated by the Underwriting Agreement, except to the extent such contravention would not have a Material Adverse Effect (as defined in the Underwriting Agreement), and provided that we express no opinion as to federal or state securities laws, or (ii) to the best of our knowledge, any agreement, indenture, lease or instrument to which the Company or any of Partner Reinsurance Company Ltd., Partner Reinsurance Company of the U.S. or Partner Reinsurance Europe SE (the “ Subsidiaries ”) is a party or by which any of them is bound or to which any of their respective properties or assets is subject, which agreement, indenture, lease or instrument is, in each case, included or incorporated by reference as an exhibit to the Company’s Annual Report on Form 10-K for the year ended December 31, 2011 or any Form 10-Q or 8-K filed since such date, except to the extent such contravention would not have a Material Adverse Effect (as defined in the Underwriting Agreement), or (B) to the best of our knowledge, will not result in the creation or imposition of any lien, charge or encumbrance upon any property or assets of any of the Company or the Subsidiaries pursuant to the terms of any agreement or instrument to which any of them is a party or by which any of them is bound or to which any of the property or assets of any of them is subject which agreement or instrument is, in each case, included or incorporated by reference as an exhibit to the Company’s Annual Report on Form 10-K for the year ended December 31, 2011 or any Form 10-Q or 8-K filed since such date, except where any such lien, charge or encumbrance would not have a Material Adverse Effect (as defined in the Underwriting Agreement).

 

  3.

No consent, approval, authorization, or order of, or qualification with, or registration or filing with, any governmental body or agency under the laws of the

 

A-1


  State of New York or any federal law of the United States of America that in our experience are normally applicable to general business corporations in relation to transactions of the type contemplated by the Underwriting Agreement is required for the execution, delivery and performance by the Company of its obligations under the Underwriting Agreement, except for such consent, approvals, authorizations and orders (1) as have been obtained and (2) as may be required under state securities, Blue Sky or insurance laws of the various states in connection with the offer and sale of the Shares.

 

  4. Assuming the due authorization, execution and delivery of the Underwriting Agreement, and to the extent that the laws of the State of New York are applicable, the Company has validly and irrevocably submitted to the non-exclusive jurisdiction of any U.S. federal or New York State court sitting in the Borough of Manhattan, The City of New York, New York, over any suit, action or proceeding arising out of or relating to the Underwriting Agreement or the Shares, and has validly and irrevocably waived and agreed not to assert, to the fullest extent it may effectively do so under applicable law, by way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any objection that it may now or hereafter have to the laying of venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

 

  5. The Company, as provided in the Registration Statement, has duly and irrevocably appointed PartnerRe U.S. Corporation as its agent for the purposes described in Section 13 of the Underwriting Agreement and to receive service of process in actions against it arising out of or in connection with violations of the U.S. federal securities laws in any federal court or state court in the United States relating to transactions covered by the Time of Sale Prospectus and the Prospectus.

 

  6. The Company is not, and after giving effect to the offering and sale of the Shares and the application of the proceeds thereof as described in the Prospectus, will not be, required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.

We have considered the statements included in the discussion of United States tax matters set forth in the Prospectus Supplement under the caption “Material Bermuda and United States Federal Income Tax Consequences – United States Taxation” (the “ Tax Considerations Summary ”). In our opinion, the Tax Considerations Summary accurately reflects our opinion as to such tax laws (subject to the qualifications and assumptions set forth in such discussion).

 

A-2


EXHIBIT A-1

Letter of Davis Polk & Wardwell LLP

We have reviewed the Company’s registration statement on Form S-3 (File No. 333-180628) (including the documents incorporated by reference therein (the “ Incorporated Documents ”)) filed with the Securities and Exchange Commission (the “ Commission ”) pursuant to the provisions of the Securities Act of 1933, as amended (the “ Act ”), relating to the registration of securities (the “ Shelf Securities ”) to be issued from time to time by the Company and have participated in the preparation of the preliminary prospectus supplement dated February 11, 2013 (the “ Preliminary Prospectus Supplement ”) relating to the Shares, the free writing prospectus, the form of which is set forth in Schedule II to the Underwriting Agreement, and the prospectus supplement dated February 11, 2013 relating to the Shares (the “ Prospectus Supplement ”). The registration statement at the date of the Underwriting Agreement, including the Incorporated Documents and the information deemed to be part of the registration statement at the time of effectiveness pursuant to Rule 430B under the Act, is hereinafter referred to as the “ Registration Statement ,” and the related prospectus (including the Incorporated Documents) dated April 9, 2012 relating to the Shelf Securities is hereinafter referred to as the “ Base Prospectus .” The Base Prospectus, as supplemented by the Preliminary Prospectus Supplement, together with the free writing prospectus, substantially in the form set forth in Schedule II to the Underwriting Agreement, is hereinafter called the “ Time of Sale Prospectus .” The Base Prospectus, as supplemented by the Prospectus Supplement, in the form first used to confirm sales of the Shares (or in the form first made available by the Company to the Underwriters to meet requests of purchasers of the Shares under Rule 173 under the Act), is hereinafter referred to as the “ Prospectus .”

We have, without independent inquiry or investigation, assumed that all documents filed with or submitted to the Commission through its Electronic Data Gathering, Analysis and Retrieval (“ EDGAR ”) System (except for required EDGAR formatting changes) conform to the versions of such documents reviewed by us prior to such formatting.

The primary purpose of our professional engagement was not to establish or confirm factual matters or financial, accounting or quantitative information. Furthermore, many determinations involved in the preparation of the Registration Statement, the Time of Sale Prospectus and the Prospectus are of a wholly or partially non-legal character or relate to legal matters outside the scope of our opinion separately delivered to you today in respect of certain matters under the laws of the State of New York, the federal laws of the United States of America and the General Corporation Law of the State of Delaware. As a result, we are not passing upon, and do not assume any responsibility for, the accuracy, completeness or fairness of the statements contained in the Registration Statement, the Time of Sale Prospectus or the Prospectus, and we have not ourselves checked the accuracy, completeness or fairness of, or otherwise verified, the information furnished in such documents (except to the extent expressly set forth in our opinion letter separately delivered to you today as to statements included in the

 

A-1-1


Prospectus Supplement under the caption “Material Bermuda and United States Federal Income Tax Consequences – United States Taxation”). However, in the course of our acting as counsel to the Company in connection with the review of the Registration Statement, the Time of Sale Prospectus and the Prospectus, we have generally reviewed and discussed with your representatives and your counsel and with certain officers and employees of, and counsel and independent public accountants for, the Company the information furnished, whether or not subject to our check and verification. We have also reviewed and relied upon certain corporate records and documents, letters from counsel and accountants and oral and written statements of officers and other representatives of the Company and others as to the existence and consequence of certain factual and other matters.

On the basis of the information gained in the course of the performance of the services rendered above, but without independent check or verification except as stated above:

 

  (i) the Registration Statement and the Prospectus appear on their face to be appropriately responsive in all material respects to the requirements of the Act and the applicable rules and regulations of the Commission thereunder; and

 

  (ii) nothing has come to our attention that causes us to believe that, insofar as relevant to the offering of the Shares:

 

  (a) on the date of the Underwriting Agreement, the Registration Statement contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein not misleading,

 

  (b) at 4:45 P.M. New York City time on February 11, 2013, the Time of Sale Prospectus contained any untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, or

 

  (c) the Prospectus as of the date of the Underwriting Agreement or as of the date hereof contained or contains any untrue statement of a material fact or omitted or omits to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.

In providing this letter to you and the other several Underwriters, we have not been called to pass upon, and we express no view regarding, the financial statements or financial schedules or other financial or accounting data included in the Registration Statement, the Time of Sale Prospectus or the Prospectus. In addition, we express no view as to the conveyance of the Time of Sale Prospectus or the information contained therein to investors.

 

A-1-2


EXHIBIT B

Opinion of Jean-Paul Dyer, Counsel

 

  1) The Company is a company duly organized and validly existing in good standing under the laws of Bermuda, has requisite power and authority and such Permits of any Regulatory Authority in Bermuda (a “ Bermuda Regulatory Authority ”) necessary to own, lease and operate its property and to conduct its business as described in the Time of Sale Prospectus and the Prospectus, which remain in full force and effect, except to the extent that the failure to be in good standing would not have a Material Adverse Effect;

 

  2) The Company has the power and authority to enter into the Underwriting Agreement; the execution, delivery and performance of its obligations under the Underwriting Agreement by the Company have been duly and validly authorized by the Company; and the Underwriting Agreement has been duly executed and delivered by the Company;

 

  3) The authorized share capital of the Company is as set forth under the caption “Capitalization” in the Time of Sale Prospectus and the Prospectus and conforms in all material respects as to Bermuda legal matters to the description thereof contained in the Time of Sale Prospectus and the Prospectus; and the share capital of the Company have been duly authorized and validly issued, are fully paid and non-assessable (meaning that no further sums are required to be paid by the holders thereof in connection with the issue of such shares) and all such shares of the Subsidiaries are registered in the name of the Company or a wholly-owned subsidiary of the Company;

 

  4) Based solely on a Company Search pursuant to Sections 55 and 61 of the Companies Act 1981 of Bermuda, as amended (the “ Companies Act ”), there are no registered liens, encumbrances, equities or claims in the Register of Charges in respect of the issued shares of the Company;

 

  5) The Shares have been duly authorized, executed and delivered by the Company, and when issued and delivered in accordance with the Underwriting Agreement, will be validly issued, fully paid and non-assessable, and the issuance of the Shares is not subject to any preemptive or similar rights;

 

  6) Neither the execution and delivery by the Company of, or the performance by it of its obligations under, the Underwriting Agreement nor the consummation by the Company of any of the transactions contemplated thereby will (A) conflict with or contravene any provision of (i) any applicable statute, law, regulation or published ruling or Order of any Bermuda Regulatory Authority in any material respect that is applicable to the Company or any of its properties or (ii) the memorandum of association, certificate of incorporation, bye-laws or other organizational documents of the Company, or (B) result in the imposition of any lien, charge or encumbrance upon any property or assets of the Company in Bermuda;

 

  7) No consent, approval, authorization or order of, qualification with, or registration or filing with any Bermuda Regulatory Authority is required for the performance by the Company of its obligations under the Underwriting Agreement that has not been obtained or effected;

 

  8)

The consummation of the transactions contemplated by the Underwriting Agreement (including but not limited to any actions taken pursuant to the indemnification and

 

B-1


  contribution provisions contained therein) will not, subject to Section 39A(2A) of the Companies Act, constitute unlawful financial assistance by the Company under Bermuda law;

 

  9) All statements made (A) in the Time of Sale Prospectus and Prospectus (including the documents incorporated therein by reference) with respect to (1) the Shares, (2) the memorandum of association, bye-laws or other organizational documents of the Company, (3) statutes, regulations, rules, treaties and other laws of Bermuda (including, but not limited to, statements made with respect to insurance, regulatory and tax matters and to the Bermuda Insurance Act), (4) enforcement of judgments in Bermuda, and (5) the statements related to Bermuda or the documents governed by Bermuda law made under the headings “Description of Series F Non-Cumulative Redeemable Preferred Shares,” “Description of Our Capital Shares,” and “Material Bermuda and United States Federal Income Tax Consequences,” and (B) in the Registration Statement in Item 15 with respect to the Company, in each case insofar as such statements constitute summaries of documents referred to therein, fairly and accurately present the information set forth therein and my opinion as to such matter;

 

  10) None of the Underwriters nor any of the subsequent purchasers of the Shares are subject to any stamp duty, excise or similar tax imposed in Bermuda in connection with the offering, sale or purchase of the Shares;

 

  11) The Company has received from the Bermuda Minister of Finance an assurance of tax exemption under The Exempted Undertakings Tax Protection Act 1966 of Bermuda to the effect set forth in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2011 under the caption “Business—Taxation of the Company and its Subsidiaries—Bermuda”;

 

  12) There are no currency exchange control laws or withholding taxes of Bermuda that would be applicable to the payment of dividends on the Shares by the Company;

 

  13) The Company, as provided in the Registration Statement, has duly and irrevocably appointed PartnerRe U.S. Corporation as its agent for the purposes described in the Underwriting Agreement and to receive service of process in actions against it arising out of or in connection with violations of the U.S. Federal securities laws in any Federal court or state court in the United States relating to transactions covered by the Time of Sale Prospectus and the Prospectus and such appointment is valid under Bermuda law;

 

  14)

Under the laws of Bermuda, the submission by the Company to the non-exclusive jurisdiction of any United States Federal or New York State court sitting in the Borough of Manhattan, The City of New York, New York, over any suit, action or proceeding arising out of or relating to the Underwriting Agreement, the Certificate of Designation or the Shares, its waiver and agreement not to assert by way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any objection that it may now or hereafter have to the laying of venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum and the appointment of PartnerRe U.S. Corporation as its authorized agent for the purposes described in the Underwriting Agreement would be recognized by the courts of Bermuda as valid and binding provided such submission is accepted by any United States Federal or New York State court sitting in the Borough of Manhattan, The City of New York,

 

B-2


  New York valid and binding under the laws of the State of New York; and service of process effected in the manner set forth in the Underwriting Agreement will be effective under the laws of Bermuda to confer personal jurisdiction over the Company, assuming this to be the case under the laws of the State of New York;

 

  15) The selection of the laws of New York as the governing law of the Underwriting Agreement is a valid and effective choice of law; the several Underwriters would be permitted to commence proceeding in a court of competent jurisdiction in Bermuda based on or arising under the Underwriting Agreement; the laws of New York would be recognized and applied by such court as the laws governing the Underwriting Agreement; provided that (i) the point is specifically pleaded, (ii) such choice of law is valid and binding under the laws of the State of New York, and (iii) recognition would not be contrary to public policy as that term is understood under Bermuda law;

 

  16) In order to ensure the legality, validity, enforceability or admissibility in evidence of the Time of Sale Prospectus, the Prospectus or the Underwriting Agreement, it is not necessary that any document be filed, recorded or enrolled with any Bermuda Regulatory Authority or that any stamp duties, registration or similar tax or charge be paid in Bermuda;

 

  17) A final and conclusive judgment of a New York State or a Federal Court against the Company or any Subsidiary based upon the Underwriting Agreement, under which a sum of money is payable (not being a sum payable in respect of taxes or other charges of a like nature or in respect of a fine or other penalty or in respect of multiple damages as defined in the Protection of Trading Interest Act, 1981) may be the subject of enforcement proceedings in the Supreme Court of Bermuda under the common law doctrine of Obligation and by action for the debt evidenced by the foreign Court’s judgment. A final opinion as to the availability of this remedy should be sought when the facts surrounding the United States court’s judgment are known, but, on general principles I would expect such proceedings to be successful provided that:

 

  (A) the court that gave the judgment was competent to hear the action in accordance with private international law principles as applied by the courts in Bermuda; and

 

  (B) the judgment is not contrary to public policy in Bermuda and was not obtained by fraud or in proceedings contrary to the rules of natural justice of Bermuda;

 

  18) There are no legal or governmental proceedings of any Bermuda Regulatory Authority pending or, to the best of my knowledge, threatened against any of the Company or to which it or any of its properties is subject, based solely on the Litigation Search; and

 

  19) Except as disclosed in the Time of Sale Prospectus and the Prospectus, there are no preemptive or other rights to subscribe for or to purchase or any restriction upon the voting or transfer of, the authorized share capital of the Company pursuant to the Company’s memorandum of association, certificate of incorporation, bye-laws or other organizational documents, respectively.

 

B-3

Exhibit 3.1

CERTIFICATE OF DESIGNATION, PREFERENCES AND RIGHTS

OF

5.875% SERIES F NON-CUMULATIVE REDEEMABLE PREFERRED

SHARES

OF

PARTNERRE LTD.

The 5.875% Series F Non-Cumulative Redeemable Preferred Shares shall have the designation, preferences and rights, and shall be subject to the restrictions, as hereinafter appearing:

Section 1 . Designation and Amount. There shall be a series of Preferred Shares of the Company which shall be designated as “5.875% Series F Non-Cumulative Redeemable Preferred Shares,” par value $1.00 per share (hereinafter called “ Series F Preferred Shares ”), and the number of shares constituting such series shall be 10,000,000. Such number of shares may be increased or decreased at any time and from time to time by resolution of the Company’s Board of Directors; provided , however , that no decrease shall reduce the number of shares of Series F Preferred Shares to a number less than that of the shares then outstanding plus the number of shares of Series F Preferred Shares issuable upon exercise of outstanding rights, options or warrants or upon conversion of outstanding securities issued by the Company.

Section 2 . Definitions. For purposes of the Series F Preferred Shares, the following terms shall have the meanings indicated:

Additional Directors ” shall have the meaning set forth in Section 9(b) hereof.

BMA ” shall mean the Bermuda Monetary Authority (or any successor agency or then-applicable regulatory authority).

Board ” shall mean the Board of Directors of the Company or any committee authorized by such Board of Directors to perform any of its responsibilities with respect to the Series F Preferred Shares.

Business Day ” shall mean any day other than a Saturday, Sunday or a day on which banking institutions in Hamilton, Bermuda, or New York, New York are not required to be open.

Bye-Laws ” shall mean the Amended and Restated Bye-Laws of the Company in effect as of May 22, 2009.

Call Date ” shall mean any date which the Company establishes for the redemption of Series F Preferred Shares, which date must be specified in the notice mailed to holders of the Series F Preferred Shares pursuant to Section 5(d) hereof.


Capital Adequacy Regulations ” shall mean the solvency margin, capital adequacy regulations or any other regulatory capital rules applicable to the Company from time to time on an individual or group basis pursuant to Bermuda law and/or the laws of any other relevant jurisdiction and which set out the requirements to be satisfied by financial instruments to qualify as solvency margin or additional solvency margin or regulatory capital (or any equivalent terminology employed by the then applicable capital adequacy regulations).

Capital Disqualification Event ” means the Series F Preferred Shares cease to qualify, in whole or in part (including as a result of any transitional or grandfathering provisions), for purposes of determining the Company’s (i) solvency margin, (ii) capital adequacy ratios or (iii) any other comparable ratios, regulatory capital resource or level of the Company or any member thereof, where subdivided into tiers, as Tier 2 Capital securities under then-applicable Capital Adequacy Regulations imposed upon the Company by the BMA, which, includes the Company’s “Enhanced Capital Requirements” (as defined in the Bermuda capital regulations), except as a result of any applicable limitation on the amount of such capital.

Change in Tax Law ” means (i) a change in or amendment to laws, regulations or rulings of any jurisdiction, political subdivision or taxing authority described in the next sentence, (ii) a change in the official application or interpretation of those laws, regulations or rulings, (iii) any execution of or amendment to any treaty affecting taxation to which any jurisdiction, political subdivision or taxing authority described in the next sentence is party or (iv) a decision rendered by a court of competent jurisdiction in Bermuda or any taxing jurisdiction or any political subdivision described in the next sentence, whether or not such decision was rendered with respect to the Company, in each case described in (i)-(iv) above occurring after February 11, 2013. The jurisdictions, political subdivisions and taxing authorities referred to in the previous sentence are (a) Bermuda or any political subdivision or governmental authority of or in Bermuda with the power to tax, (b) any jurisdiction from or through which the Company or its dividend disbursing agent are making payments on the Series F Preferred Shares or any political subdivision or governmental authority of or in that jurisdiction with the power to tax or (c) any other jurisdiction in which the Company or a successor is organized or generally subject to taxation or any political subdivision or governmental authority of or in that jurisdiction with the power to tax.

Common Shares ” shall mean the common shares of the Company, par value $1.00 per share.

 

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Company ” shall mean PartnerRe Ltd.

Cumulative Shares ” shall mean the Company’s Series C Cumulative Redeemable Preferred Shares, Series D Cumulative Redeemable Preferred Shares, Series E Cumulative Redeemable Preferred Shares and any other series of cumulative preferred shares issued by the Company from time to time.

Dividend Payment Date ” shall mean the first day of March, June, September and December in each year, commencing on June 1, 2013; provided , however , that if any Dividend Payment Date falls on any day other than a Business Day, the dividend payment due on such Dividend Payment Date shall be paid on the Business Day immediately after such Dividend Payment Date.

Dividend Periods ” shall mean quarterly dividend periods commencing on March 1, June 1, September 1 and December 1 of each year and ending on and including the day preceding the first day of the next succeeding Dividend Period (other than the initial Dividend Period, which shall represent the period from and including the Issue Date up to and excluding June 1, 2013, and other than the Dividend Period during which any Series F Preferred Shares shall be redeemed pursuant to Section 5 hereof, which shall end on and exclude the Call Date with respect to the Series F Preferred Shares being redeemed).

Dollars ” or “ $ ” shall mean U.S. Dollars.

Fully Junior Shares ” shall mean the Common Shares and any other class or series of shares of the Company now or hereafter issued and outstanding over which the Series F Preferred Shares have preference or priority in both (i) the payment of dividends and (ii) the distribution of assets on any liquidation, dissolution or winding up of the Company.

Issue Date ” shall mean the first date on which the Series F Preferred Shares are issued and sold.

Junior Shares ” shall mean the Common Shares and any other class or series of shares of the Company now or hereafter issued and outstanding over which the Series F Preferred Shares have preference or priority in either (i) the payment of dividends or (ii) the distribution of assets on any liquidation, dissolution or winding up of the Company.

Parity Shares ” shall have the meaning set forth in Section 8(b) hereof, and include, without limitation, the Company’s Series C Cumulative Redeemable Preferred Shares, Series D Cumulative Redeemable Preferred Shares and Series E Cumulative Redeemable Preferred Shares.

 

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Person ” shall mean any individual, firm, partnership, corporation, limited liability company or other entity, and shall include any successor (by merger or otherwise) of such entity.

Register of Members ” shall mean the Register of Members of the Company.

Relevant Date ” means, in respect of any payment, the date on which such payment first becomes due and payable, but if the full amount of the moneys payable has not been received by the dividend disbursing agent on or prior to such due date, it means the first date on which, the full amount of such moneys having been so received and being available for payment to holders, notice to that effect shall have been duly given to the holders of the Series F Preferred Shares.

Series F Preferred Shares ” shall have the meaning set forth in Section 1 hereof.

Set apart for payment ” shall be deemed to include, without any action other than the following, the recording by the Company in its accounting ledgers of any accounting or bookkeeping entry which indicates, pursuant to a declaration of dividends or other distribution by the Board, the allocation of funds to be so paid on any class or series of the Company’s shares; provided , however , that if any funds for any class or series of Junior Shares or any class or series of Parity Shares are placed in a separate account of the Company or delivered to a disbursing, paying or other similar agent, then “set apart for payment” with respect to the Series F Preferred Shares shall mean placing such funds in a separate account or delivering such funds to a disbursing, paying or other similar agent.

Shares ” shall shall have the meaning set forth in Section 10(a) hereof.

Taxing Jurisdiction ” shall have the meaning set forth in Section 11(a) hereof.

Transfer Agent ” shall mean Computershare Trust Company, N.A., or such other agent or agents of the Company as may be designated by the Board or its designee as the transfer agent, registrar and dividend disbursing agent for the Series F Preferred Shares.

Voting Preferred Shares ” shall have the meaning set forth in Section 9(b) hereof.

Section 3 . Dividends.

(a) The holders of Series F Preferred Shares shall be entitled to receive, when, as and if declared by the Board, out of funds legally available for the

 

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payment of dividends, non-cumulative preferential cash dividends in an amount per share equal to 5.875% of the liquidation preference per annum (equivalent to $1.46875 per share), except as provided in Section 3(b) hereof. Such dividends shall be payable quarterly, when, as and if declared by the Board, on each Dividend Payment Date, commencing on the first Dividend Payment Date after the Issue Date. Each such dividend, when, as and if declared, shall be payable to the holders of record of Series F Preferred Shares as they appear in the Register of Members at the close of business on the tenth calendar day preceding the applicable Dividend Payment Date, whether or not a Business Day.

(b) The holders of Series F Preferred Shares shall be entitled to receive, when, as and if declared by the Board, a dividend for the initial Dividend Period from and including the Issue Date up to and excluding June 1, 2013. The amount of dividends payable for such period, or any period shorter than a full Dividend Period, on the Series F Preferred Shares shall be computed on the basis of a 360-day year consisting of twelve 30-day months. Holders of Series F Preferred Shares shall not be entitled to any dividends, whether payable in cash, property or shares, in excess of dividends, actually declared by the Board, on the Series F Preferred Shares other than additional amounts payable pursuant to Section 5(b) or Section 11 hereof. No interest, or sum of money in lieu of interest, shall be payable in respect of any undeclared or declared but unpaid dividends on the Series F Preferred Shares.

(c) Dividends on the Series F Preferred Shares shall not be cumulative. Accordingly, if the Board does not declare a dividend on the Series F Preferred Shares in respect of any Dividend Period before the related Dividend Payment Date, such dividend will not be payable and the Company shall have no obligation to pay a dividend for that Dividend Period on the Dividend Payment Date or at any future time, whether or not dividends are declared for any future Dividend Period on the Series F Preferred Shares or any other preferred shares.

(d) So long as any Series F Preferred Shares are outstanding, no dividends or other distributions, except as described in the immediately following sentence, shall be declared or paid or set apart for payment on any class or series of Parity Shares for any period unless dividends have been or contemporaneously are declared and paid or declared and a sum sufficient for the payment thereof set apart for such payment on the Series F Preferred Shares for the latest completed Dividend Period, and in the case of Cumulative Shares, for all Dividend Periods terminating on or prior to the dividend payment date in respect of the dividend or other distribution on such class or series of Cumulative Shares. When dividends on the Series F Preferred Shares are not paid in full or a sum sufficient for such payment is not set apart, as aforesaid, all dividends declared upon Series F Preferred Shares and all dividends declared upon any class or series of Parity Shares shall be declared ratably in proportion to the respective amounts of unpaid dividends on the Series F Preferred Shares and on such Parity Shares, whether accrued but unpaid or declared but unpaid.

 

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(e) So long as any Series F Preferred Shares are outstanding, no dividends or other distributions (other than dividends or distributions paid solely in shares of, or options, warrants or rights to subscribe for or purchase shares of, Fully Junior Shares) shall be declared or paid or set apart for payment and no other distribution shall be declared or paid or set apart for payment upon Junior Shares, nor shall any Junior Shares be redeemed, purchased or otherwise acquired (other than a redemption, purchase or other acquisition of Common Shares made for purposes of an employee incentive or benefit plan of the Company or any subsidiary of the Company) for any consideration (or any moneys be paid to or made available for a sinking fund for the redemption of any Junior Shares) by the Company, directly or indirectly (except by conversion into or exchange for Fully Junior Shares), unless in each case (i) the dividends on all outstanding Series F Preferred Shares and any Parity Shares shall have been or contemporaneously are declared and paid or declared and a sum sufficient for the payment thereof set apart for payment for the latest completed Dividend Period, and, in the case of the Cumulative Shares, for all past Dividend Periods and (ii) sufficient funds shall have been or contemporaneously are set apart for the payment of the dividends for the current Dividend Period with respect to the Series F Preferred Shares and the current dividend period with respect to such Parity Shares.

(f) No dividends on Series F Preferred Shares shall be declared by the Board or paid or set apart for payment by the Company at such time as the terms and provisions of any agreement of the Company, including any agreement relating to its indebtedness, prohibit such declaration, payment or setting apart for payment or provide that such declaration, payment or setting apart for payment would constitute a breach thereof or a default thereunder, or if such declaration, payment or setting apart shall be restricted or prohibited by law.

Section 4 . Liquidation Preference.

(a) In the event of any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, before any dividend payment or distribution of the assets of the Company (whether capital or surplus) shall be made or set apart for payment to the holders of Junior Shares, the holders of the Series F Preferred Shares shall be entitled to receive from the Company’s assets legally available for distribution to shareholders $25.00 per Series F Preferred Share plus an amount equal to dividends declared but unpaid thereon, if any, to the date of final distribution to such holders; but such holders of Series F Preferred Shares shall not be entitled to any further payment. If, upon any liquidation, dissolution or winding up of the Company, the assets of the Company, or proceeds thereof, distributable among the holders of the Series F Preferred Shares shall be insufficient to pay in full the preferential amount aforesaid and

 

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liquidating payments on any shares of any class or series of Parity Shares, then such assets, or the proceeds thereof, shall be distributed among the holders of Series F Preferred Shares and any such Parity Shares ratably in accordance with the respective amounts that would be payable on such Series F Preferred Shares and any such Parity Shares if all amounts payable thereon were paid in full. For the purposes of this Section 4, (i) a consolidation, amalgamation or merger of the Company with one or more corporations, limited liability companies or other entities, (ii) a sale, lease or conveyance of all or substantially all of the shares or the property or business of the Company or (iii) a statutory share exchange, shall not be deemed to be a liquidation, dissolution or winding up, voluntary or involuntary, of the Company.

(b) Subject to the rights of the holders of shares of any series or class or classes of shares ranking on a parity with or prior to the Series F Preferred Shares upon liquidation, dissolution or winding up, upon any liquidation, dissolution or winding up of the Company, after payment shall have been made in full to the holders of the Series F Preferred Shares, as provided in this Section 4, any other series or class or classes of Junior Shares shall, subject to the respective terms and provisions (if any) applying thereto, be entitled to receive any and all assets remaining to be paid or distributed, according to their respective numbers of shares, and the holders of the Series F Preferred Shares shall not be entitled to share therein.

Section 5 . Redemption at the Option of the Company.

(a) Subject to Section 5(d), Section 5(e), Section 5(f) and Section 5(g) hereof, the Series F Preferred Shares shall not be redeemable by the Company prior to March 1, 2018. On and after March 1, 2018, the Company, at its option, may redeem the Series F Preferred Shares, in whole at any time or from time to time in part, for cash at a redemption price of $25.00 per Series F Preferred Share, plus any amounts payable pursuant to Section 5(b) hereof.

(b) Upon any redemption of Series F Preferred Shares pursuant to this Section 5, the Company shall pay, in addition to the redemption price stated in Section 5(a), an amount equal to the portion of the quarterly dividend attributable to the then-current Dividend Period to, but excluding, the Call Date. If the Call Date falls after a dividend payment record date and prior to the corresponding Dividend Payment Date, then each holder of Series F Preferred Shares at the close of business on such dividend payment record date shall be entitled to the dividend attributable to the then-current Dividend Period on such shares on the corresponding Dividend Payment Date notwithstanding the redemption of such shares before such Dividend Payment Date. Except as provided above, the Company shall make no payment or allowance for unpaid dividends, whether or not declared, on Series F Preferred Shares called for redemption.

 

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(c) Unless dividends on the Series F Preferred Shares and any class or series of Parity Shares shall have been declared and paid or declared and a sum sufficient for the payment thereof set apart for payment for the latest completed Dividend Period, and, in the case of the Cumulative Shares, for all past Dividend Periods, the Series F Preferred Shares and any Parity Shares may not be redeemed under this Section 5 and the Company may not purchase or acquire Series F Preferred Shares or any Parity Shares, otherwise than pursuant to a purchase or exchange offer made on the same terms (other than in respect of arrearages on the Cumulative Shares) to all holders of Series F Preferred Shares and Parity Shares.

(d) Notice of the redemption of any Series F Preferred Shares under this Section 5 shall be mailed by first-class mail to each holder of record of Series F Preferred Shares to be redeemed at the address of each such holder as shown in the Register of Members, not less than 30 nor more than 90 days prior to the Call Date. Neither the failure to mail any notice required by this paragraph (d), nor any defect therein or in the mailing thereof, to any particular holder, shall affect the sufficiency of the notice or the validity of the proceedings for redemption with respect to the other holders. Any notice which was mailed in the manner herein provided shall be conclusively presumed to have been duly given on the date when the same would be delivered in the ordinary course of transmission, whether or not the holder receives the notice. Each such mailed notice shall state, as appropriate: (1) the Call Date; (2) the number of Series F Preferred Shares to be redeemed and, if fewer than all the Series F Preferred Shares held by such holder are to be redeemed, the number of such shares to be redeemed from such holder; (3) the redemption price (including any additional amounts payable pursuant to Section 5(b)); and (4) the place or places at which certificates, if any, for such Series F Preferred Shares are to be surrendered. Notice having been mailed as aforesaid, from and after the Call Date (unless the Company shall fail to make available, as hereinafter provided, an amount of cash necessary to effect such redemption), (i) such shares shall no longer be deemed to be outstanding; (ii) all rights of the holders thereof as holders of Series F Preferred Shares of the Company shall cease (except the right to receive cash payable upon such redemption, without interest thereon, upon surrender and endorsement of their certificates, if any, if so required and to receive any additional amounts payable thereon); and (iii) any officer of the Company shall be entitled, on behalf of such holder and as its attorney-in-fact, to execute and deliver any and all documents as may be necessary to effect such redemption. The Company’s obligation to provide cash in accordance with the preceding sentence shall be deemed fulfilled if, on or before the Call Date, the Company shall deposit with a bank or trust company (which may be an affiliate of the Company) that has an office in the Borough of Manhattan, City of New York, and that has, or is an affiliate of a bank or trust company that has, capital and surplus of at least $50,000,000, funds necessary for such redemption, in trust, with irrevocable instructions that such cash be applied to the redemption of the Series F Preferred Shares so called for

 

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redemption. No interest shall accrue for the benefit of the holders of Series F Preferred Shares to be redeemed on any cash so set aside by the Company. Subject to applicable escheat laws, any such cash unclaimed at the end of two years from the Call Date shall revert to the general funds of the Company, after which reversion the holders of such shares so called for redemption shall look only to the general funds of the Company for the payment of such cash.

As promptly as practicable after the surrender, in accordance with the notice given as aforesaid, of the certificates, if any, for any Series F Preferred Shares so redeemed (properly endorsed or assigned for transfer, if the Company shall so require and if the notice shall so state), such shares shall be exchanged for any cash (without interest thereon) for which such shares have been redeemed. If fewer than all the outstanding Series F Preferred Shares are to be redeemed, shares to be redeemed shall be selected by the Company from outstanding Series F Preferred Shares not previously called for redemption pro rata (as nearly as may be practicable), by lot or by any other method determined by the Company in its sole discretion to be equitable. If fewer than all the Series F Preferred Shares represented by any certificate are redeemed, then new certificates representing the unredeemed shares shall be issued without cost to the holder thereof.

(e) The Company may redeem for cash the Series F Preferred Shares at any time in whole or from time to time in part, upon not less than 30 days nor more than 60 days prior written notice in accordance with the procedures set forth in this Section 5, at a redemption price of $25.00 per share plus an amount equal to the portion of the quarterly dividend attributable to the then-current dividend period to, but excluding, the Call Date, within 90 days after the Company has reasonably determined that, as a result of (i) any amendment to, or change in, the laws or regulations of Bermuda that is enacted or becomes effective after the Issue Date; (ii) any proposed amendment to, or change in, those laws or regulations that is announced or becomes effective after the Issue Date; or (iii) any official administrative decision or judicial decision or administrative action or other official pronouncement interpreting or applying those laws or regulations that is announced after the Issue Date, a Capital Disqualification Event has occurred; provided that any such redemption in part may only be made if (x) the Company has reasonably determined that the portion of the Series F preferred shares to be redeemed are the subject of the Capital Disqualification Event and (y) after giving effect to such redemption, the Company has reasonably determined that a Capital Disqualification Event will not exist with respect to the then-outstanding Series F Preferred Shares and such redemption will not result in the suspension or removal of the Series F Preferred Shares from New York Stock Exchange listing.

(f) The Company may redeem for cash the Series F Preferred Shares at any time in whole or from time to time in part, upon not less than 30 days nor more than 60 days prior written notice in accordance with the procedures set forth

 

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in this Section 5, at a redemption price of $25.00 per share plus an amount equal to the portion of the quarterly dividend attributable to the then-current dividend period to, but excluding, the Call Date, if as a result of a Change in Tax Law there is a substantial probability that the Company or any successor would be required to pay any additional amounts with respect to the Series F Preferred Shares and the payment of those additional amounts cannot be avoided by the use of any reasonable measures available to the Company or any successor corporation.

(g) The Company may redeem for cash any or all Series F Preferred Shares at any time in whole or from time to time in part, upon not less than 30 days nor more than 60 days prior written notice in accordance with the procedures set forth in this Section 5, at a redemption price of $25.00 per share plus an amount equal to the portion of the quarterly dividend attributable to the then-current dividend period to, but excluding, the Call Date, if there is a substantial probability that the entity formed by a consolidation, merger or amalgamation involving the Company or the entity to which the Company conveys, transfers or leases substantially all its properties and assets will be required to pay additional amounts in respect of any tax, assessment or governmental charge imposed on any holder of Series F Preferred Shares as a result of a Change in Tax Law that occurs after the date of the consolidation, merger, amalgamation, conveyance, transfer or lease and the payment of those additional amounts cannot be avoided by the use of any reasonable measures available to the Company or any successor corporation.

Section 6 . Substitution or Variation.

(a) In lieu of a redemption upon a Capital Disqualification Event as described in Section 5(e), or a redemption upon a Change in Tax Law as described in Section 5(f), upon or following such Capital Disqualification Event or Change in Tax Law, the Company may, without the consent of any holders of the Series F Preferred Shares, vary the terms of, or exchange for new securities, that (1) in the case of a Capital Disqualification Event, for purposes of determining the solvency margin, capital adequacy ratios or any other comparable ratios, regulatory capital resource or level of the Company or any member thereof, where subdivided into tiers, would cause the Series F Preferred Shares to become securities that qualify as Tier 2 Capital securities under then-applicable Capital Adequacy Regulations imposed upon us by the BMA, which includes the Company’s enhanced capital requirements (as defined in the Bermuda capital regulations) or (2) in the case of a Change in Tax Law, would eliminate the substantial probability that the Company or any successor corporation would be required to pay any additional amounts with respect to the Series F Preferred Shares as a result of a Change in Tax Law. In either case, the terms of the varied securities or new securities considered in the aggregate may not be less favorable to holders than the terms of the Series F Preferred Shares prior to being varied or exchanged; provided (i) that no such variation of terms or securities received in

 

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exchange will change the specified denominations, or the amount of dividends payable on, the Call Dates (other than any extension of the period during which an optional redemption may not be exercised by the Company) or currency of, the Series F Preferred Shares, (ii) reduce the liquidation preference thereof, (iii) lower the ranking of the securities, (iv) reduce the voting threshold for the issuance of senior stock or (v) change the foregoing list of items that may not be so amended as part of such variation or exchange. Further, no such variation of terms or securities received in exchange may impair the right of a holder of the securities to institute suit for the payment of any amounts due (as provided herein), but unpaid with respect to such holder’s securities.

(b) Prior to any variation or exchange, the Company will be required to (1) receive an opinion of independent legal advisers of recognized standing to the effect that holders and beneficial owners of the Series F Preferred Shares (including as holders and beneficial owners of the varied or exchanged securities) will not recognize income, gain or loss for United States federal income tax purposes as a result of such variation or exchange and will be subject to United States federal income tax on the same amounts, in the same manner and at the same times as would have been the case had such variation or exchange not occurred and (2) deliver a certificate signed by two executive officers of the Company to the Transfer Agent for the Series F Preferred Shares confirming that (a) a Capital Disqualification Event or a Change in Tax Law has occurred and is continuing (as reasonably determined by the Company) and (b) that the terms of the varied or new securities, considered in the aggregate, are not less favorable to holders than the terms of the Series F Preferred Shares prior to being varied or exchanged (as reasonably determined by the Company).

(c) Any variation or exchange of the Series F Preferred Shares described in this Section 6 will be made after notice is given to the holders of the Series F Preferred Shares not less than 30 nor more than 60 days prior to the date fixed for variation or exchange, as applicable.

Section 7 . Shares To Be Retired. All Series F Preferred Shares which shall have been issued and reacquired in any manner by the Company shall be restored to the status of authorized but unissued shares of the Company’s shares, without designation as to class or series.

Section 8 . Ranking. Any class or series of shares of the Company shall be deemed to rank:

(a) prior to the Series F Preferred Shares, as to the payment of dividends and as to distribution of assets upon liquidation, dissolution or winding up of the Company, if the holders of such class or series shall be entitled to the receipt of dividends or of amounts distributable upon liquidation, dissolution or winding up, as the case may be, in preference or priority to the holders of Series F Preferred Shares;

 

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(b) on a parity with the Series F Preferred Shares, as to the payment of dividends and as to distribution of assets upon liquidation, dissolution or winding up of the Company, whether cumulative or non-cumulative, and whether or not the dividend rates, dividend payment dates or redemption or liquidation prices per share thereof shall be different from those of the Series F Preferred Shares, if the holders of such class or series and the Series F Preferred Shares shall be entitled to the receipt of dividends and of amounts distributable upon liquidation, dissolution or winding up in proportion to their respective amounts of declared but unpaid or accrued and unpaid dividends per share or liquidation preferences, without preference or priority one over the other (“ Parity Shares ”);

(c) junior to the Series F Preferred Shares, as to the payment of dividends or as to the distribution of assets upon liquidation, dissolution or winding up of the Company, if such class or series shall be Junior Shares; and

(d) junior to the Series F Preferred Shares, as to the payment of dividends and as to the distribution of assets upon liquidation, dissolution or winding up of the Company, if such class or series shall be Fully Junior Shares.

Section 9 . Voting Rights.

(a) Except as otherwise provided in this Section 9 and as otherwise required by law, holders of the Series F Preferred Shares shall have no voting rights.

(b) Whenever, at any time or times, dividends have not been declared and paid on Series F Preferred Shares or any class or series of non-cumulative Parity Shares in an amount equivalent to dividends for six full Dividend Periods (whether or not consecutive), then, immediately upon the happening of such event, the holders of Series F Preferred Shares, together with the holders of shares of every class or series of non-cumulative Parity Shares (all such other classes or series, the “ Voting Preferred Shares ”), voting as a single class regardless of class or series, shall have the right to elect two directors to the Board of the Company (the “ Additional Directors ”) at any general meeting of shareholders or at a special meeting of the holders of the Series F Preferred Shares called as hereinafter provided. At any time after such voting power shall have been so vested in the holders of Series F Preferred Shares and the Voting Preferred Shares, the Corporate Secretary of the Company may, and upon the written request of any holder of Series F Preferred Shares (addressed to the Corporate Secretary at the principal office of the Company) shall, call a special meeting of the holders of the Series F Preferred Shares and of the Voting Preferred Shares for the election of the Additional Directors, such call to be made by notice similar to that provided in

 

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the Bye-Laws for a special general meeting of the shareholders or as required by law. If any such special meeting required to be called as above provided shall not be called by the Corporate Secretary within 30 days after receipt of any such request, then any holder of Series F Preferred Shares may call such meeting, upon the notice above provided, and for that purpose shall have access to the Register of Members. Alternatively, the Additional Directors may be elected by a resolution in writing, which may be in counterparts, signed by all of the holders of the Series F Preferred Shares and the Voting Preferred Shares. If at the time the voting power referred to in this Section 9(b) is vested in the holders of the Series F Preferred Shares and the Voting Preferred Shares, there are not two vacancies on the Board of the Company, the holders of the Series F Preferred Shares and the Voting Preferred Shares shall have the right to increase the size of the Board by two directors, to the extent permitted by Bermuda law, provided that any such increase in the size of the Board shall not delay the exercise of such voting power for a period in excess of thirty days from the date such holders of the Series F Preferred Shares and the Voting Preferred Shares request the Corporate Secretary to call a meeting for the purpose of electing the Additional Directors. The Additional Directors shall hold office until the next annual general meeting of the shareholders or until the office of Additional Director terminates as hereinafter provided. Any Additional Director may be removed, with or without cause, by a majority vote at any special meeting of the holders of the Series F Preferred Shares and of the Voting Preferred Shares, voting as a single class, provided that the notice of any such meeting convened for the purpose of removing an Additional Director shall contain a statement of the intention so to do and be served on such Additional Director not less than 14 days before the meeting and at such meeting such Additional Director shall be entitled to be heard on the motion for such Additional Director’s removal. In the event of any vacancy in the office of Additional Director, a successor shall be elected by the holders of the Series F Preferred Shares and the Voting Preferred Shares, voting as a single class, at any general meeting of shareholders or at a special meeting of the holders of the Series F Preferred Shares and the Voting Preferred Shares called in accordance with the procedures described above for the election of Additional Directors, or by a written resolution as provided above, such successor to hold office until the next annual general meeting of the shareholders or until the office of Additional Director terminates as hereinafter provided. If an interim vacancy shall occur in the office of Additional Director prior to a general meeting of the shareholders or a special meeting or written resolution of the holders of the Series F Preferred Shares and the Voting Preferred Shares, a successor shall be elected by the Board upon nomination by the then remaining Additional Director or the successor of such remaining Additional Director, to serve until a successor is elected in accordance with the preceding sentence or until the office of Additional Director terminates as hereinafter provided; provided , however , that if no remaining Additional Director or successor of such Additional Director is then in office, Additional Directors shall be elected in accordance with the procedures

 

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described in the immediately preceding sentence. Whenever dividends on the Series F Preferred Shares and the Voting Preferred Shares then outstanding have been paid in full, or declared and sufficient funds have been set apart for payment, for at least four consecutive dividend periods, then the rights of holders of the Series F Preferred Shares and of the Voting Preferred Shares to elect Additional Directors shall cease (but subject always to the same provision for the vesting of such rights in the case of any future non-payments in an amount equivalent to dividends for six full Dividend Periods), and the terms of office of the Additional Directors so elected by the holders of Series F Preferred Shares and the Voting Preferred Shares to the Company’s Board shall immediately terminate and, if the size of the Board was increased for the purposes of the Additional Directors, the number of directors constituting the Board shall be reduced accordingly.

(c) Any Additional Directors shall be in addition to any additional directors that may be elected pursuant to the certificates of designation for the Cumulative Shares. Although the Series F Preferred Shares are Parity Shares with respect to the Cumulative Shares, and notwithstanding any provision of the certificate of designation of any series of Cumulative Shares, holders of the Series F Preferred Shares will not be entitled to vote with the holders of the Cumulative Shares for the election of additional directors in circumstances where the holders of Cumulative Shares are entitled to do so.

(d) So long as any Series F Preferred Shares are outstanding, in addition to any other vote or consent of shareholders required by law or by the Bye-Laws, the affirmative vote of the holders of at least 75% of the Series F Preferred Shares at the time outstanding, acting as a single class, given in writing without a meeting or by vote in person or by proxy at a meeting, shall be necessary for effecting or validating:

(i) Any amendment, alteration or repeal of any of the provisions of the Company’s Memorandum of Association, Bye-Laws or this Certificate of Designation that would vary the rights, preferences or voting powers of the holders of the Series F Preferred Shares;

(ii) An amalgamation, consolidation, merger or statutory share exchange that affects the Series F Preferred Shares, unless in each such case each Series F Preferred Share (i) shall remain outstanding with no variation in its rights, preferences or voting powers or (ii) shall be converted into or exchanged for a preferred share of the surviving entity having rights, preferences and voting powers identical to that of a Series F Preferred Share; or

(iii) The authorization, creation or any increase in the authorized amount of, any shares of any class or series or any security convertible into shares of any class or series ranking prior to the Series F Preferred Shares in the payment of dividends or the distribution of assets on any liquidation, dissolution or winding up of the Company;

 

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provided , however , that any action to authorize or create or to increase the authorized amount of, any Fully Junior Shares, Junior Shares or Parity Shares shall not be deemed to vary the rights, preferences or voting powers of the holders of Series F Preferred Shares; and provided , further , that no such vote of the holders of Series F Preferred Shares shall be required if, prior to the time any vote is to be taken, all outstanding Series F Preferred Shares shall have been redeemed.

(e) The holders of the Series F Preferred Shares shall not be entitled to vote on any sale of all or substantially all of the assets of the Company.

(f) For purposes of any vote by the holders of the Series F Preferred Shares pursuant to the foregoing provisions of this Section 9, each Series F Preferred Share shall have one (1) vote per share, except that when any class or series of Voting Preferred Shares shall have the right to vote with the Series F Preferred Shares as a single class on any matter, then the Series F Preferred Shares and such class or series of Voting Preferred Shares shall have with respect to such matters one (1) vote per $25.00 of stated liquidation preference. Except as otherwise required by applicable law or as set forth herein, the Series F Preferred Shares shall not have any other voting rights or powers, and the consent of the holders thereof shall not be required for the taking of any action by the Company.

Section 10 . Limitation on Transfer and Ownership.

(a) Limitation . Notwithstanding any other provision of the terms of the Series F Preferred Shares, except as provided in this Section 10, no Person shall be permitted to Own or Control (as such terms are defined in the Bye-Laws) shares in the Company (including the Series F Preferred Shares) (the “ Shares ”) to the extent that such holder or any other Person would be in violation of Bye-Law 6.1; nor may any Shares be issued or any transfer of Shares be made if the effect of such issuance or transfer would be to cause a violation of Bye-Law 6.1. To the extent that, for any reason whatsoever and by any method howsoever, a Person, whether an existing shareholder or not of the Company, would otherwise be considered a Ten Percent Shareholder (as such term is defined in the Bye-Laws), then Bye-Laws 6.2 to 6.6 (and any other applicable Bye-Laws) shall apply. No transfer (including a repurchase by the Company) may be made if the effect of such transfer would result in the transferee or any other shareholder of the Company controlling in excess of nine and nine-tenths per cent (9.9%) of all of the issued and outstanding Shares. Nothing in this Section 10(a) shall preclude the settlement of any transaction entered into through the facilities of the New York Stock Exchange.

 

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(b) Exemptions . The limitation on ownership set forth in Section 10(a) shall not apply to the acquisition of Series F Preferred Shares by an underwriter as part of the public offering of Series F Preferred Shares. The Board may waive the restrictions on transfer set forth in Section 10(a) in its discretion and on a case by case basis. The Board will not be liable to the Company, its shareholders or any other Person whatsoever for any errors in judgment made by it in granting any waiver or waivers to the foregoing restrictions in any case so long as it has acted in good faith.

Section 11 . Payment of Additional Amounts.

(a) The Company will make all payments on the Series F Preferred Shares free and clear of and without withholding or deduction at source for, or on account of, any present or future taxes, fees, duties, assessments or governmental charges of whatever nature imposed or levied by or on behalf of Bermuda or any other jurisdiction in which the Company is organized or any political subdivision or taxing authority thereof or therein (a “ Taxing Jurisdiction ”), unless such taxes, fees, duties, assessments or governmental charges are required to be withheld or deducted by (x) the laws (or any regulations or rulings promulgated thereunder) of a Taxing Jurisdiction or (y) an official position regarding the application, administration, interpretation or enforcement of any such laws, regulations or rulings (including, without limitation, a holding by a court of competent jurisdiction or by a taxing authority in a Taxing Jurisdiction). If a withholding or deduction at source is required by either (x) or (y), the Company will, subject to certain limitations and exceptions described in clauses (b) and (c) of this Section 11, pay to the holders of the Series F Preferred Shares such additional amounts as dividends as may be necessary so that the net amounts paid will be equal to the amounts the Company would otherwise have been required to pay had no such withholding or deduction been required.

(b) The Company will not be required to pay any additional amounts for or on account of:

(i) any tax, fee, duty, assessment or governmental charge of whatever nature that would not have been imposed but for the fact that such holder was a resident, domiciliary or national of, or engaged in business or maintained a permanent establishment or was physically present in, the relevant taxing jurisdiction or any political subdivision thereof or otherwise had some connection with the relevant taxing jurisdiction other than by reason of the mere ownership of, or receipt of payment under, such Series F Preferred Shares;

(ii) any Series F Preferred Shares presented for payment more than 30 days after the Relevant Date;

 

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(iii) any estate, inheritance, gift, sale, transfer, personal property or similar tax, assessment or other governmental charge or any tax, assessment or other governmental charge that is payable otherwise than by withholding or deduction from payment of the liquidation preference;

(iv) any tax, fee, duty, assessment or other governmental charge that is imposed or withheld by reason of the failure by the holder of such Series F Preferred Shares to comply with any reasonable request by us addressed to the holder within 90 days of such request (a) to provide information concerning the nationality, residence or identity of the holder or (b) to make any declaration or other similar claim or satisfy any information or reporting requirement, which is required or imposed by statute, treaty, regulation or administrative practice of the relevant taxing jurisdiction or any political subdivision thereof as a precondition to exemption from all or part of such tax, fee, duty, assessment or other governmental charge;

(v) any withholding or deduction required to be made pursuant to any EU Directive on the taxation of savings implementing the conclusions of the ECOFIN Council meetings of 26-27 November 2000, 3 June 2003 or any law implementing or complying with, or introduced in order to conform to, such EU Directive; or

(vi) any combination of items (i), (ii), (iii), (iv) or (v).

(c) The Company will not pay additional amounts with respect to any payment on any Series F Preferred Shares to any holder who is a fiduciary, partnership, limited liability company or other pass-through entity other than the sole beneficial owner of such Series F Preferred Shares if such payment would be required by the laws of the relevant taxing jurisdiction (or any political subdivision or relevant taxing authority thereof or therein) to be included in the income for tax purposes of a beneficiary or partner or settlor with respect to such fiduciary or a member of such partnership, limited liability company or other pass-through entity or a beneficial owner to the extent such beneficiary, partner or settlor would not have been entitled to such additional amounts had it been the holder of the Series F preferred shares.

(d) If there is a substantial probability that the Company or any successor corporation would become obligated to pay any additional amounts as a result of a Change in Tax Law, the Company will also have the option to redeem the Series Preferred Shares as set forth in Section 5(f) hereof.

Section 12 . Record Holders. The Company and the Transfer Agent may deem and treat the record holder of any Series F Preferred Shares, as the same appears in the Register of Members, as the true and lawful owner thereof for all

 

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purposes, and neither the Company nor the Transfer Agent shall be affected by any notice to the contrary. Payments in respect of Series F Preferred Shares shall be sent to the holders thereof at their address most recently noted on the Register of Members and, in the case of joint holders of Series F Preferred Shares, may be made to all such joint holders but sent to that one of the joint holders of Series F Preferred Shares who is first named in the Register of Members at his or her address most recently noted in the Register of Members or shall be made payable to such person or persons and sent to such address as all the joint holders of such Series F Preferred Shares may in writing direct. Cheques in payment of any obligation of the Company to holders of Series F Preferred Shares shall be sent by first-class mail at the risk of the holder of the Series F Preferred Shares, and due payment of a cheque shall be full satisfaction of the obligation represented thereby notwithstanding any notice which the Company may have whether express or otherwise of any right, title or interest or claim of any other person to or in such Series F Preferred Shares.

Section 13 . Sinking Fund. The Series F Preferred Shares shall not be entitled to the benefits of any retirement or sinking fund.

Section 14 . Conversion. The Series F Preferred Shares shall not be convertible into or exchangeable for any other securities of the Company.

Section 15 . Jurisdiction; Governing Law. The Company expressly accepts and irrevocably submits to the non-exclusive jurisdiction of the United States Federal or New York State court sitting in the Borough of Manhattan, The City of New York, New York, over any suit, action or proceeding arising out of or relating to the Series F Preferred Shares. To the fullest extent it may effectively do so under applicable law, the Company irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. The Company agrees, to the fullest extent that it may effectively do so under applicable law, that a judgment in any suit, action or proceeding of such nature brought in any such court shall be conclusive and binding upon the Company, subject to rights of appeal and may be enforced in the courts of the United States of America or the State of New York (or any other court the jurisdiction to which the Company is or may be subject) by a suit upon such judgment. Bermuda substantive law will be applied in any such proceeding.

 

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Exhibit 4.1

 

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5.875% Series F Non-Cumulative Redeemable Preferred Shares

PAR VALUE $1.00

5.875% Series F Non-Cumulative Redeemable Preferred Shares

THIS CERTIFICATE IS TRANSFERABLE IN CANTON, MA AND NEW YORK, NY

PARTNERRE LTD.

INCORPORATED IN THE ISLANDS OF BERMUDA UNDER THE COMPANIES ACT, 1981

THIS IS TO CERTIFY THAT

is the registered holder of

CUSIP G68603 12 8

SEE REVERSE FOR CERTAIN DEFINITIONS

FULLY PAID AND NON·ASSESSABLE 5.875% SERIES F NON-CUMULATIVE REDEEMABLE PREFERRED SHARES OF PAR VALUE US$1.00 EACH OF

PartnerRe Ltd. transferable on the books of the Company by the holder hereof in person or by duly authorized attorney upon surrender of this Certificate properly endorsed. This Certificate and the shares represented hereby are issued and shall be held subject to all of the provisions of the Memorandum of Association and Bye-Laws and Certificate of Designation of the Company and all amendments thereof to all of which the holder by acceptance hereof assents and shall be transferable in accordance therewith. This Certificate is not valid unless countersigned by the Transfer Agent and registered by the Registrar.

Witness the facsimile seal of the Company and the facsimile signatures of its duly authorized officers.

DATED <<Month Day, Year>>

COUNTERSIGNED AND REGISTERED:

COMPUTERSHARE TRUST COMPANY, N.A.

TRANSFER AGENT AND REGISTRAR,

By

AUTHORIZED SIGNATURE

PO BOX 43004, Providence, RI 02940-3004

MR A SAMPLE DESIGNATION (IF ANY) ADD 1 ADD 2 ADD 3 ADD 4

CUSIP XXXXXX XX X Holder ID XXXXXXXXXX

Insurance Value 00.1,000,000 Number of Shares 123456

DTC 12345678901234512345678

Certificate Numbers Num/No Denom. Total.

1234567890/1234567890 111 1234567890/1234567890 222 1234567890/1234567890 333 1234567890/1234567890 444 1234567890/1234567890 555 1234567890/1234567890 666

Total Transaction 7

President & CEO

Secretary

Shares

016570| 003590|127C|RESTRICTED||4|057-423

123456Certificate Number

ZQ000000 premitted seal partnerRe ltd.


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Notwithstanding any other provision of the terms of the 5.875% Series F Non-Cumulative Redeemable Preferred Shares (the “Series F Preferred Shares”), except as provided in Section 10 of the Certificate of Designation, Preferences and Rights of 5.875% Series F Non-Cumulative Redeemable Preferred Shares of PartnerRe Ltd. (the “Certificate of Designation”) no Person shall be permitted to Own or Control (as such terms are defined in the Amended and Restated Bye-Laws of the Company in effect as of May 22, 2009 (the “Bye-Laws”) shares in PartnerRe Ltd. (the “Company”) (including the Series F Preferred Shares) (the “Shares”) to the extent that such holder or any other Person (as such term is defined in the Certificate of Designation) would be in violation of Bye-Law 6.1; nor may any Shares be issued or any transfer of Shares be made if the effect of such issuance or transfer would be to cause a violation of Bye-Law 6.1. To the extent that, for any reason whatsoever and by any method howsoever, a Person, whether an existing shareholder or not of the Company, would otherwise be considered a Ten Percent Shareholder (as such term is defined in the Bye-Laws), then Bye-Laws 6.2 to 6.6 (and any other applicable Bye-Laws) shall apply. No transfer (including a repurchase by the Company) may be made if the effect of such transfer would result in the transferee or any other shareholder of the Company controlling in excess of nine and nine-tenths per cent (9.9%) of all of the issued and outstanding Shares. However, the limitations stated above shall not preclude the settlement of any transaction entered into through the facilities of the New York Stock Exchange.

The following abbreviations, when used in the inscription on the face of this certificate, shall be construed as though they were written out in full according to applicable laws or regulations:

TEN COM—as tenants in common UNIF GIFT MIN ACT -Custodian

(Cust) (Minor)

TEN ENT—as tenants by the entireties under Uniform Gifts to Minors Act

(State)

JT TEN—as joint tenants with right of survivorship UNIF TRF MIN ACT -Custodian (until age) and not as tenants in common (Cust) under Uniform Transfers to Minors Act

(Minor) (State)

Additional abbreviations may also be used though not in the above list.

PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE

FOR VALUE RECEIVED hereby sell, assign and transfer unto

(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE, OF ASSIGNEE)

shares of the capital stock represented by the within Certificate.

Dated: 20 Signature(s) Guaranteed: Medallion Guarantee Stamp

THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (Banks, Stockbrokers, Savings and Loan Associations and Credit Unions) WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15.

Signature

Signature: Notice: The signature to this assignment must correspond with the name as written upon the face of the certificate, in every particular, without alteration or enlargement, or any change whatever.

Exhibit 5.1

 

 

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PartnerRe Ltd.

90 Pitts Bay Road

Pembroke HM 08

Bermuda

  February 14, 2013                    

Registration Statement on Form S-3

Dear Sirs:

I am Counsel for PartnerRe Ltd., a company incorporated under the laws of Bermuda (the “ Company ”), and this opinion as to Bermuda law is addressed to you in connection with the Company’s Registration Statement on Form S-3 filed with the United States Securities and Exchange Commission on April 9, 2012 (the “ Registration Statement ”) and the issuance and sale of 10,000,000 shares of a new series of preferred shares of the Company registered thereunder, which are designated as the 5.875% Series F Non-Cumulative Redeemable Preferred Shares, par value $1.00 per share, $25.00 liquidation preference per share (the “ Series F Preferred Shares ”), as described in the prospectus supplement dated February 11, 2013 (the “ Prospectus Supplement ”) to the prospectus in the Registration Statement (as so supplemented by the Prospectus Supplement, the “ Prospectus ”).

Unless otherwise defined herein or in the Schedule to this opinion, terms defined in the Registration Statement and the Prospectus have the same meanings when used in this opinion.

In stating my opinion I have reviewed such documents and have relied upon originals or certified copies of such documents as I have deemed relevant and necessary as a basis for such opinion, including the documents listed, and in some cases defined, in the Schedule to this opinion (the “ Documents ”), and I have not attempted independently to verify or establish the factual matters set forth in such documents.

Opinion

Based upon and subject to the foregoing and subject to the reservations set out below and to any matters not disclosed to me, I am of the opinion that:

(1) The Company is an exempted company incorporated with limited liability, validly organized and existing and in good standing under the laws of Bermuda.

(2) When duly issued and paid for pursuant to and in accordance with the terms of the duly adopted Resolutions (as defined in the Schedule of this opinion) of the Company which have authorised their issue in accordance with the terms and conditions referred to or summarised in the Prospectus and the Registration Statement, the Series F Preferred Shares will be validly issued, fully paid and non-assessable shares in the capital of the Company.

(3) All necessary corporate action required to have been taken by the Company in connection with the issue of the Series F Preferred Shares pursuant to Bermuda law has been taken by or on behalf of the Company.

 

PartnerRe Ltd.

Wellesley House South

90 Pitts Bay Road

Pembroke HM 08

Bermuda

  

Phone +1 441 292 0888

Fax +1 441 292 7010

  


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(4) There are no taxes, duties or other charges payable to or chargeable by the Government of Bermuda, or any authority or agency thereof, in respect of the issue of the Series F Preferred Shares.

Reservations

I have the following reservations:

(a) I express no opinion as to any law other than Bermuda law and none of the opinions expressed herein relates to compliance with or matters governed by the laws of any jurisdiction except Bermuda. This opinion is limited to Bermuda law as applied by the courts of Bermuda at the date hereof.

(b) In paragraph (1) above, the term “good standing” means that the Company has not failed to make any filing with any Bermuda government authority or to pay any Bermuda government fees or tax which would make it liable to be struck off the Register of Companies and thereby cease to exist under the laws of Bermuda.

(c) Any reference in this opinion to shares being “non-assessable” shall mean, in relation to fully paid shares of the Company and subject to any contrary provision in any agreement in writing between such company and the holder of such shares, that no shareholder shall be bound by an alteration to the Memorandum of Association or Bye-Laws of the Company after the date on which he became a shareholder, if and so far as the alteration requires him to take or subscribe for additional shares, or in any way increases his liability to contribute the share capital of, or otherwise to pay money to, the Company.

Disclosure

This opinion is given solely in connection with the issuance and sale of Series F Preferred Shares registered under the Registration Statement with the United States Securities and Exchange Commission. I consent to the inclusion of this opinion as Exhibit 5.1 to a Current Report on Form 8-K (which shall be deemed incorporated by reference into the Registration Statement) and to the reference to me under the caption “Legal Matters” in the Prospectus Supplement, without admitting that I am an expert within the meaning of the Securities Act.

This opinion speaks as of its date and is strictly limited to the matters stated herein and I assume no obligation to review or update this opinion if applicable law or the existing facts or circumstances should change. This opinion is governed by and is to be construed in accordance with Bermuda law.

 

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Yours faithfully,

 

/s/ Jean-Paul Dyer
Jean-Paul Dyer

Assistant Secretary and

Associate General Counsel

PartnerRe Ltd.

 

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SCHEDULE

 

1. A copy of the Registration Statement dated April 9, 2012.

 

2. A copy of the Prospectus dated February 11, 2013 with respect to the Series F Preferred Shares.

 

3. A copy of the Certificate of Designation, Preferences and Rights of 5.875% Series F Non-Cumulative Redeemable Preferred Shares of PartnerRe Ltd. dated February 14, 2013.

 

4. The Certificate of Incorporation, Memorandum of Association and Bye-Laws of PartnerRe Ltd.

 

5. Certified copies of the resolutions passed at a Meeting of the Board of Directors of the Company held on November 16, 2012 and the resolutions passed at a Meeting of the Offering Committee held on February 11, 2013 (together, the “ Resolutions ”).

 

6. Certificate of Compliance dated February 11, 2013 issued by the Ministry of Economic Development in respect of the Company.

 

7. A letter from the Bermuda Monetary Authority to PartnerRe Ltd. dated May 17, 2005.

 

8. The tax assurance issued by the Minister of Finance dated January 17, 2012 in respect of the Company under the Exempted Undertakings Tax Exemptions Act 1966 of Bermuda.

 

9. The entries and filings shown in respect of the Company in the Supreme Court Causes Book maintained at the Registry of the Supreme Court in Hamilton, Bermuda, as revealed by a search completed on February 13, 2013.

 

10. The entries and filings shown in respect of the Company in the file of the Company in the Register of Charges maintained at the office of the Registrar of Companies in Hamilton, Bermuda, as revealed by a search completed on February 14, 2013.

 

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