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•	Unpaid losses and loss expenses;

•	Policy benefits for life and annuity contracts;

•	Gross and net premiums written and net premiums earned;

•	Recoverability of deferred acquisition costs;

•	Recoverability of deferred tax assets;

•	Valuation of goodwill and intangible assets; and

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

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

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

•	Level 3 inputs—Unobservable inputs.

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(1)	Settlements and sales of asset-backed securities and derivatives include sales of $13.7 million and $1.4 million, respectively.

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(1)	Purchases and issuances of derivatives include issuances of $0.9 million.

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(1)	Purchases and issuances of derivatives include issuances of $0.8 million.

(2)	Settlements and sales of asset-backed securities, derivatives and annuities and residuals include sales of $13.7 million, $1.4 million and $6.3 million, respectively.

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

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

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

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

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

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

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

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•	the fair value of the Senior Notes was calculated based on discounted cash flow models using observable market yields and contractual cash flows based on the aggregate principal amount outstanding of $250 million from PartnerRe Finance A LLC and $500 million from PartnerRe Finance B LLC at September 30, 2014 and December 31, 2013; and

•	the fair value of the CENts was calculated based on discounted cash flow models using observable market yields and contractual cash flows based on the aggregate principal amount outstanding of $63 million from PartnerRe Finance II Inc. at September 30, 2014 and December 31, 2013.

(1)	PartnerRe Finance A LLC and PartnerRe Finance B LLC, the issuers of the Senior Notes, do not meet consolidation requirements under U.S. GAAP. Accordingly, the Company shows the related intercompany debt of $750 million in its Condensed Consolidated Balance Sheets at September 30, 2014 and December 31, 2013.

(2)	PartnerRe Finance II Inc., the issuer of the CENts, does not meet consolidation requirements under U.S. GAAP. Accordingly, the Company shows the related intercompany debt of $71 million in its Condensed Consolidated Balance Sheets at September 30, 2014 and December 31, 2013.

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(1)	At September 30, 2014 and December 31, 2013, insurance-linked securities include a longevity swap for which the notional amount is not reflective of the overall potential exposure of the swap. As such, the Company has included the probable maximum loss under the swap within the net notional exposure as an approximation of the notional amount.

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

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

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(1)	Where the exercise price of share based awards is greater than the average market price of the common shares, the common shares are considered anti-dilutive and are excluded from the calculation of weighted average number of common shares and common share equivalents outstanding - diluted.

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(1)	Allocated underwriting result is defined as net premiums earned, other income or loss and allocated net investment income less life policy benefits, acquisition costs and other operating expenses.

(2)	Loss ratio is obtained by dividing losses and loss expenses by net premiums earned.

(3)	Acquisition ratio is obtained by dividing acquisition costs by net premiums earned.

(4)	Technical ratio is defined as the sum of the loss ratio and the acquisition ratio.

(5)	Other operating expense ratio is obtained by dividing other operating expenses by net premiums earned.

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

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(1)	Large catastrophic losses are shown net of any reinsurance, reinstatement premiums and profit commissions.

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(1)

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

(2)

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

(3)

Operating earnings or loss attributable to PartnerRe Ltd. common shareholders (operating earnings or loss) is calculated as net income or loss available to PartnerRe Ltd. common shareholders excluding net realized and unrealized gains or losses on investments, net of tax (except where the Company has made a strategic investment in an insurance or reinsurance related investee), net foreign exchange gains or losses, net of tax, loss on redemption of preferred shares and the interest in earnings or losses of equity method investments, net of tax (except where the Company has made a strategic investment in an insurance or reinsurance related investee and where the Company does not control the investee’s activities), and is

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(4)

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

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

(1)	Diluted book value per common share and common share equivalents outstanding (Diluted Book Value per Share) is calculated using common shareholders’ equity attributable to PartnerRe Ltd. (total shareholders’ equity less noncontrolling

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a decrease of $105 million in the Non-life underwriting result, which was mainly driven by a decrease in net favorable prior year loss development, an increase in net adverse prior quarters' loss development and a decrease in the current accident year technical result, primarily related to the North America sub-segment. These decreases were partially offset by the absence of large catastrophic losses in the three months ended September 30, 2014 compared to losses related to the German Hailstorm in the same period of 2013. Additional detail of the Non-life underwriting result is provided in the discussion of individual sub-segments in Results by Segment and Review of Net Income below; partially offset by

•	a decrease of $36 million in income tax expense on pre-tax operating earnings, driven by the decrease in pre-tax operating earnings primarily due to a decrease in the Non-life underwriting result and by a lower distribution of the pre-tax operating earnings in the taxable jurisdictions relative to non-taxable jurisdictions.

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a decrease of $44 million in the Non-life underwriting result, which was mainly driven by a decrease in the current accident year technical result, related primarily to the North America, Catastrophe and Global (Non-U.S.) P&C sub-segments, and a decrease in favorable prior year loss development. These decreases were partially offset by the absence of large catastrophic losses in the nine months ended September 30, 2014 compared to losses related to the Alberta Floods, German Hailstorm and the European Floods in the same period of 2013. Additional detail of the Non-life underwriting result is provided in the discussion of individual sub-segments in Results by Segment and Review of Net Income below;

•	a decrease from the aggregation of various modest declines in other components of operating earnings; and

•	a decrease of $8 million in the Life and Health underwriting result, mainly due to a lower level of net favorable prior year loss development; partially offset by

•	a decrease of $40 million in other operating expenses included in Corporate and Other, driven by the charge related to the restructuring in 2013.

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

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

(3)	In September 2014, the Risk and Finance Committee approved the increase in limits for mortgage reinsurance risk and the associated any one country sub-limit.

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

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

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

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

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

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•	the U.S. dollar average exchange rate was weaker against most currencies, except the Japanese yen and Canadian dollar, in the three months and nine months ended September 30, 2014 compared to the same periods of 2013; and

•	the U.S. dollar ending exchange rate strengthened against most currencies at September 30, 2014 compared to December 31, 2013.

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

(2)	Technical result and other income primarily relate to income on insurance-linked securities and principal finance transactions within the Corporate and Other segment.

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

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Net favorable prior year loss development—a decrease of $72 million (increase of 6.8 points in the technical ratio) from $238 million (20.3 points on the technical ratio) in the three months ended September 30, 2013 to $166 million (13.5 points on the technical ratio) in the same period of 2014. The decrease in net favorable prior year loss development was due to decreases in all Non-life sub-segments. The components of the net favorable prior year loss development are described in more detail in the discussion of individual sub-segments in Results by Segment below.

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Net (adverse) favorable prior quarters' loss development—a decrease of $43 million (increase of 3.6 points in the technical ratio) from net favorable prior quarters' development of $29 million (2.4 points on the technical ratio) in the three months ended September 30, 2013 to net adverse prior quarters' development of $14 million (1.2 points on the technical ratio) in the three months ended September 30, 2014. The prior quarters' development in the three months ended September 30, 2014 and 2013 was primarily driven by the Catastrophe sub-segment and is described in more detail in the discussion of individual sub-segments in Results by Segment below.

•	The current accident year technical result, adjusted for large catastrophic losses and prior quarters' loss development—a decrease in the technical result (and corresponding increase in the technical ratio) which was primarily related to a deterioration in the agriculture line in the North America sub-segment, driven by declining commodity prices and the impact of hailstorms.

•	Large catastrophic losses—a decrease of $55 million (decrease of 4.7 points in the technical ratio) related to the German Hailstorm in the three months ended September 30, 2013 compared to no significant catastrophic losses in the same period of 2014.

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The current accident year technical result, adjusted for large catastrophic losses—a decrease in the technical result (and corresponding increase in the technical ratio) primarily due to the North America, Catastrophe and Global (Non-U.S.) P&C sub-segments. The decrease in the North America sub-segment was due to a deterioration in the agriculture line, as described in the three-month result, and a higher acquisition cost ratio due to the increasingly competitive conditions. The decrease in the Catastrophe sub-segment was due to a decrease in net premiums earned, which in the absence of catastrophic losses directly impacts the technical result. The decrease in the Global (Non-U.S.) P&C sub-segment was due to an increase in the acquisition cost ratio and a higher level of mid-sized loss activity.

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Net favorable prior year loss development—a decrease of $57 million from $548 million (17.9 points on the technical ratio) in the nine months ended September 30, 2013 to $491 million (15.1 points on the technical ratio) in the same period of 2014. The decrease in net favorable prior year loss development was due to decreases in the Catastrophe and Global (Non-U.S.) P&C sub-segments, which were partially offset by modest increases in the Global Specialty and North America sub-segments. The components of the net favorable prior year loss development are described in more detail in the discussion of individual sub-segments in Results by Segment below.

•	Large catastrophic losses—a decrease of $156 million (decrease of 5.2 points in the technical ratio) related to the Alberta Floods, German Hailstorm and European Floods in the nine months ended September 30, 2013 compared to no significant catastrophic losses in the same period of 2014.

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

(2)	Loss ratio is obtained by dividing losses and loss expenses by net premiums earned.

(3)	Acquisition ratio is obtained by dividing acquisition costs by net premiums earned.

(4)	Technical ratio is defined as the sum of the loss ratio and the acquisition ratio.

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(1)	Large catastrophic losses are shown net of any related reinsurance, reinstatement premiums and profit commissions.

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The current accident year technical result, adjusted for prior quarters' loss development—a decline in the technical result (and corresponding increase in the technical ratio) primarily due to a deterioration in the agriculture line of business related to the 2014 crop year as a result of declining commodity prices and the impact of hailstorms, a modest increase in the loss picks in the casualty line, a higher acquisition cost ratio driven by increasingly competitive conditions and pricing observed in most lines of business during the recent January 1 renewals and normal fluctuations in profitability between periods.

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Net favorable prior year loss development—a decrease of $11 million (increase of 2.7 points in the technical ratio) from $94 million (22.2 points on the technical ratio) in the three months ended September 30, 2013 to $83 million (19.5 points on the technical ratio) in the same period of 2014. The net favorable loss development for prior accident years in the three months ended September 30, 2014 and 2013 was driven by most lines of business, predominantly the casualty line.

•	Net adverse prior quarters' loss development—a decrease of $8 million (decrease of 1.9 points in the technical ratio) in adverse prior quarters' loss development related to the Alberta Floods in the three months ended June 30, 2013.

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The current accident year technical result, adjusted for large catastrophic losses—a decline in the technical result (and corresponding increase in the technical ratio) primarily due to the deterioration in the agriculture line of business, the higher acquisition cost ratio and the modestly higher loss picks in the casualty line of business, as described in the three-month result, and normal fluctuations in profitability between periods.

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Net favorable prior year loss development—an increase of $20 million (decrease of 0.8 points in the technical ratio) from $155 million (13.9 points on the technical ratio) in the nine months ended September 30, 2013 to $175 million (14.7 points on the technical ratio) in the same period of 2014. The net favorable loss development for prior accident years in the nine months ended September 30, 2014 was driven primarily by the casualty line, while the multiline and motor lines experienced combined adverse loss development for prior accident years of $10 million. The net favorable loss development for prior accident years in the nine months ended September 30, 2013 was driven by most lines of business, with the casualty line being the most pronounced, while the credit/surety and agriculture lines experienced combined adverse loss development for prior accident years of $8 million.

•	Large catastrophic losses—a decrease of $16 million (decrease of 1.4 points in the technical ratio) related to the Alberta Floods in the nine months ended September 30, 2013 compared to no significant catastrophic losses in the same period of 2014.

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(1)	Large catastrophic losses are shown net of any related reinsurance, reinstatement premiums and profit commissions.

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The current accident year technical result, adjusted for large catastrophic losses and prior quarters' loss development—a decline in the technical result (and a corresponding increase in the technical ratio) due to a higher level of mid-sized loss activity, the impact of lower upward prior year premium adjustments in the three months ended September 30, 2014 compared to the same period of 2013 and normal fluctuations in profitability between periods.

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Net (adverse) favorable prior quarters' loss development—a decrease of $9 million (increase of 4.6 points in the technical ratio) from net favorable prior quarters' loss development of $8 million (4.0 points on the technical ratio) in the three months ended September 30, 2013 to net adverse prior quarters' loss development of $1 million (0.6 points on the technical ratio) in the same period of 2014.

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Net favorable prior year loss development—a decrease of $8 million (increase of 4.6 points in the technical ratio) from $37 million (19.2 points on the technical ratio) in the three months ended September 30, 2013 to $29 million (14.6 points on the technical ratio) in the same period of 2014. The net favorable loss development for prior accident years in the three months ended September 30, 2014 and 2013 was driven by most lines of business, with the property line being the most pronounced.

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The current accident year technical result, adjusted for large catastrophic losses—a decline in the technical result (and a corresponding increase in the technical ratio) mainly due to an increase in the acquisition cost ratio, a higher level of mid-sized loss activity and normal fluctuations in profitability between periods. The increase in the acquisition cost ratio was driven by favorable adjustments recorded in the nine months ended September 30, 2013 in the property and casualty lines of business and higher ceding commissions recorded in the nine months ended September 30, 2014 due to the competitive market conditions.

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Net favorable prior year loss development—a decrease of $25 million (increase of 6.1 points in the technical ratio) from $131 million (24.8 points on the technical ratio) in the nine months ended September 30, 2013 to $106 million (18.7 points on the technical ratio) in the same period of 2014. The net favorable loss development for prior accident years in the nine months ended September 30, 2014 and 2013 was driven by all lines of business, with the property line being the most pronounced.

•	Large catastrophic losses—a decrease of $14 million (decrease of 2.6 points in the technical ratio) related to the European Floods and German Hailstorm in the nine months ended September 30, 2013 compared to no significant catastrophic losses in the same period of 2014.

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(1)	Large catastrophic losses are shown net of any related reinsurance, reinstatement premiums and profit commissions.

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The current accident year technical result, adjusted for prior quarters' loss development—an improvement in the technical result (and a corresponding decrease in the technical ratio) mainly due to a lower level of mid-sized loss activity, modestly higher loss picks recorded in certain lines of business in the three months ended September 30, 2013 and normal fluctuations in profitability between periods.

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Net favorable prior year loss development—a decrease of $27 million (increase of 9.0 points in the technical ratio) from $78 million (20.4 points on the technical ratio) in the three months ended September 30, 2013 to $51 million (11.4 points on the technical ratio) in the same period of 2014. The net favorable loss development for prior accident years in the three months ended September 30, 2014 was driven by most lines of business, primarily the marine and specialty property lines, while the engineering line experienced adverse loss development for prior accident years of $8 million. The net favorable loss development for prior accident years in the three months ended September 30, 2013 was driven by all lines of business and was most pronounced in the marine, aviation/space and specialty property lines.

•	Large catastrophic losses—a decrease of $21 million (decrease of 1.9 points in the technical ratio) related to the Alberta and European Floods in the nine months ended September 30, 2013 compared to no large catastrophic losses in the same period of 2014.

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Net favorable prior year loss development—an increase of $13 million (which resulted in an increase of 0.3 points in the technical ratio due to the increase in net premiums earned) from $166 million (15.2 points on the technical ratio) in the nine months ended September 30, 2013 to $179 million (14.9 points on the technical ratio) in the same period of 2014. The net favorable loss development for prior accident years in the nine months ended September 30, 2014 was driven by most lines of business, predominantly the marine, specialty property and aviation/space lines, while the credit/surety, engineering and agriculture lines experienced combined adverse loss development for prior accident years of $26 million. The net favorable loss development for prior accident years in the nine months ended September 30, 2013 was driven by most lines of business, predominantly the aviation/space, marine and specialty property lines.

•	The current accident year technical result, adjusted for large catastrophic losses—a slight improvement in the technical result (and corresponding decrease in the technical ratio) primarily due to a modestly lower level of mid-sized loss activity and normal fluctuations in profitability between periods.

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(1)	Large catastrophic losses are shown net of any related reinsurance, reinstatement premiums and profit commissions.

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Net (adverse) favorable prior quarters' loss development—a decrease of $43 million (increase of 25.8 points in the technical ratio) from net favorable prior quarters' loss development of $30 million (17.6 points on the technical ratio) in the three months ended September 30, 2013 to net adverse prior quarters' loss development of $13 million (8.2 points on the technical ratio) in the same period of 2014. The adverse prior quarters' loss development in the three months ended September 30, 2014 was primarily driven by the late reporting by a cedant of a mid-sized loss that occurred in the second quarter of 2014. The net favorable prior quarters’ loss development in the three months ended September 30, 2013 included favorable development related to the Alberta and European Floods.

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Net favorable prior year loss development—a decrease of $26 million (increase of 15.1 points in the technical ratio) from $29 million (16.8 points on the technical ratio) in the three months ended September 30, 2013 to $3 million (1.7 points on the technical ratio) in the same period of 2014. The net favorable loss development for prior accident years in the three months ended September 30, 2014 was primarily due to net favorable loss emergence and was partially offset by adverse development related to the New Zealand Earthquakes, as described in Critical Accounting Policies and Estimates—Losses and Loss Expenses and Life Policy Benefits—Losses and Loss Expenses above. The net favorable loss development for prior accident years in the three months ended September 30, 2013 was primarily due to favorable loss emergence.

•	Large catastrophic losses—a decrease of $52 million (decrease of 30.7 points in the technical ratio) related to the German Hailstorm in the three months ended September 30, 2013 compared to no significant catastrophic losses in the same period of 2014.

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The current accident year technical result, adjusted for large catastrophic losses and prior quarters' loss development —a modest increase in the technical result (and corresponding decrease in the technical ratio) primarily due to a lower level of mid-sized loss activity, almost entirely offset by the impact of lower net premiums earned in the three months ended September 30, 2014 compared to the same period of 2013.

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Net favorable prior year loss development—a decrease of $65 million (increase of 18.0 points on the technical ratio) from $96 million (28.4 points on the technical ratio) in the nine months ended September 30, 2013 to $31 million (10.4 points on the technical ratio) in the same period of 2014. The net favorable loss development for prior accident years in the nine months ended September 30, 2014 was primarily due to favorable loss emergence, and was partially offset by the adverse development related to the New Zealand Earthquakes as described in Critical Accounting Policies and Estimates—Losses and Loss Expenses and Life Policy Benefits—Losses and Loss Expenses above. The net favorable loss development for prior accident years in the nine months ended September 30, 2013 was primarily due to favorable loss emergence.

•	The current accident year technical result, adjusted for large catastrophic losses—a decrease in the technical result primarily due to the impact of lower net premiums earned in the nine months ended September 30, 2014 compared to the same period of 2013 and increasingly competitive market conditions.

•	Large catastrophic losses—a decrease of $105 million (decrease of 35.1 points in the technical ratio) related the German Hailstorm, Alberta and European Floods in the nine months ended September 30, 2013 compared to no significant catastrophic losses in the same period of 2014.

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•	Property: the decrease in the distribution of net premiums written in the three months and nine months ended September 30, 2014 compared to the same periods of 2013 was primarily driven by cancellations and non-renewals in the property lines of the Global (Non-U.S.) P&C and North America sub-segments.

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Agriculture: the decrease in the distribution of net premiums written in the three months ended September 30, 2014 compared to the same period of 2013 was primarily driven by the restructuring of a significant treaty, which impacted the timing of the premium recognition, and lower upward premium adjustments in the agriculture line of business of the North America sub-segment. The increase in the distribution of net premiums written in the nine months ended September 30, 2014 compared to the same period of 2013 was due to new business written in the North America and Global Specialty sub-segments.

•	Catastrophe: the decrease in the distribution of net premiums written in the three months and nine months ended September 30, 2014 compared to the same periods of 2013 was primarily driven by cancellations, non-renewals and share decreases, as described in the Catastrophe sub-segment above.

•	Life and Health: the increase in the distribution of net premiums written in the three months and nine months ended September 30, 2014 compared to the same periods of 2013 was driven by increases in all lines of business, most notably in the accident and health line due to PartnerRe Health’s business, as described in the Life and Health segment above.

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•	an increase in gross premiums written in the Life segment between the three months and nine months ended September 30, 2014 and the same periods of 2013, driven by PartnerRe Health's business, which is written predominantly on a proportional basis;

•	a decrease in gross premiums written in the Non-life segment on a non-proportional basis between the three months and nine months ended September 30, 2014 and the same periods of 2013, which was primarily driven by decreases in the Catastrophe sub-segment and the property lines of the Global (Non-U.S.) P&C and North America sub-segments; and

•	a decrease in gross premiums written in the Non-life segment on a proportional basis between the three months ended September 30, 2014 and the same period of 2013, which was primarily driven by the decreases in the agriculture line of the North America sub-segment, as described in the Results by Segment above.

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

•	a decrease in net investment income from funds held – directly managed primarily related to the lower average balance in the funds held – directly managed account, which was driven by a release of assets related to the commutation of a portion the funds held agreement with Colisée Re, the run-off of the remaining underlying liabilities and lower reinvestment rates; partially offset by

•	an increase in net investment income from equities primarily as a result of higher dividend income.

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•	a decrease in net investment income from funds held – directly managed primarily due to the same factors discussed above for the three-month result; and

•	a decrease in net investment income from fixed maturities primarily due to lower reinvestment rates, which was partially offset by the impact of the increase in the U.S. Consumer Price Index on the Company's Treasury Inflation-Protected Securities portfolio and certain other favorable non-recurring items; partially offset by

•	an increase in net investment income from equities primarily as a result of higher dividend income.

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•	net cash provided by operating activities of $583 million;

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net realized and unrealized gains related to the investment portfolio of $270 million primarily resulting from an increase in the fixed maturity and short-term investment portfolios of $262 million, reflecting decreases in U.S. and European risk-free interest rates, and an increase in the equity portfolio of $53 million. These factors were partially offset by a decrease in other invested assets of $47 million primarily driven by losses on treasury note futures (see discussion related to duration below); and

•	an increase in net payable for securities purchased of $203 million; partially offset by

•	various other factors which net to approximately $417 million, the largest being the impact of foreign exchange and, to a lesser extent, the amortization of net premium on investments;

•	a net decrease of $333 million, due to the repurchase of common shares of $368 million under the Company’s share repurchase program, partially offset by the issuance of common shares under the Company’s employee equity plans of $35 million; and

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•	dividend payments on common and preferred shares totaling $144 million.

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

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

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

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

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

(3)	GSEs, or government sponsored enterprises, includes securities that are issued by U.S. government agencies, such as Freddie Mac and Fannie Mae.

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

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

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

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

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(1)	Cost is amortized cost for fixed maturities.

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

(3)

In addition to the fair value of $479 million of investments underlying the funds held – directly managed account at September 30, 2014, the funds held – directly managed account also includes cash and cash equivalents of $53 million, accrued investment income of $6 million and other assets and liabilities related to the underlying business of $112 million. Accordingly, the total balance in the funds held – directly managed account was $650 million at September 30, 2014.

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

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•	comprehensive income of $782 million, which was primarily related to net income; partially offset by

•	a net decrease of $333 million, due to the repurchase of common shares of $368 million under the Company’s share repurchase program, partially offset by the issuance of common shares under the Company’s employee equity plans of $35 million; and

•	dividend payments of $144 million related to the Company’s common and preferred shares.

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(1)	PartnerRe Finance A LLC and PartnerRe Finance B LLC, the issuers of the Senior Notes, do not meet consolidation requirements under U.S. GAAP. Accordingly, the Company shows the related intercompany debt of $750 million in its Condensed Consolidated Balance Sheets at September 30, 2014 and December 31, 2013.

(2)	PartnerRe Finance II Inc., the issuer of the CENts, does not meet consolidation requirements under U.S. GAAP. Accordingly, the Company shows the related intercompany debt of $71 million in its Condensed Consolidated Balance Sheets at September 30, 2014 and December 31, 2013.

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

(2)	Excludes accrued interest.

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

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

(2)	Excludes accrued interest.

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

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(1)	As the U.S. dollar is the Company’s reporting currency, there is no currency risk attached to the U.S. dollar and it is excluded from this table. The U.S. dollar accounted for the difference between the Company’s total foreign currency exposure in this table and the total assets and total liabilities in the Company’s Condensed Consolidated Balance Sheet at September 30, 2014.

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

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

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

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

•	the credit risk of AXA or its affiliates in the event of their insolvency or their failure to honor their obligations under the Acquisition Agreements (see Business—Reserves—Reserve Agreement in Item 1 of Part I of the Company’s Annual Report on Form 10-K for the year ended December 31, 2013);

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

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

•	under its retrocessional reinsurance contracts.

(1)	Excludes funds holding fixed income securities of $8 million.

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

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(1)	On September 4, 2014, the Company’s Board of Directors approved and announced a new share repurchase authorization up to a total of 5 million common shares. Unless terminated earlier by resolution of the Company’s Board of Directors, the program will expire when the Company has repurchased all shares authorized for repurchase thereunder.

(2)	At September 30, 2014, approximately 37.8 million common shares were held in treasury and available for reissuance.

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