Executive Summary

Operating performance held up despite market headwinds: operating EPS was $2.35 and annualized operating ROE 7.5%, while GAAP EPS was a loss of $2.16 driven by mark‑to‑market investment losses as longer-term U.S./Europe risk-free rates rose .
Underwriting was strong: Non-life combined ratio improved year over year to 90.3% (vs. 91.5% in Q2 2014), aided by $173M of favorable prior-year reserve development across all Non-life sub-segments .
Book value per share was $127.24 and tangible book $115.90; both declined ~2% sequentially but remained up year-to-date; the Board declared a $0.70 dividend per share .
Street EPS/revenue consensus (S&P Global) was unavailable for PRE-PJ; no estimate comparison could be made. Attempted retrieval failed due to missing mapping in S&P Global CIQ [GetEstimates error].

What Went Well and What Went Wrong

What Went Well
- Strong technical underwriting: “we posted strong technical results… resulting in an operating ROE of 8.5%” with visible signs of market stabilization and profitable new treaties at June/July renewals .
- Broad favorable reserve development: $173M favorable prior-year development in Q2, with all Non-life sub-segments contributing; Non-life combined ratio improved YoY .
- Life & Health improved profitability: allocated underwriting result rose to $26M vs. $18M in Q2 2014, helped by favorable development in short-term mortality and A&H .
What Went Wrong
- Investment headwind: pre-tax net realized/unrealized investment losses of $256M (after-tax ~$217M) as longer-term risk-free rates increased; this drove the GAAP net loss .
- Operating expense uplift: Q2 “other expenses” of $130M included $9M Axis amalgamation costs and $25M Presidio earn‑out expense, diluting operating EPS and ROE .
- Premium mix pressure in Catastrophe: NPW down 48% YoY (−44% constant FX) due to higher retrocession to Lorenz Re, cancellations, and timing; Catastrophe technical ratios remain volatile .

Financial Results

Metric	Q2 2014	Q1 2015	Q2 2015
Total revenues ($USD Billions)	$1.658	$1.459	$1.193
Net premiums earned ($USD Billions)	$1.353	$1.235	$1.328
Diluted operating EPS ($USD)	$2.60	$3.09	$2.35
Diluted net EPS ($USD)	$5.02	$4.76	$(2.16)
Non-life combined ratio (%)	91.5%	82.8%	90.3%

Segment breakdown (Q2):

Segment	NPW ($USD Millions) Q2 2014	NPW ($USD Millions) Q2 2015	Technical Result ($USD Millions) Q2 2014	Technical Result ($USD Millions) Q2 2015	Technical Ratio (%) Q2 2014	Technical Ratio (%) Q2 2015
North America	$392	$401	$48	$28	87.6%	93.5%
Global (Non‑U.S.) P&C	$148	$137	$32	$2	82.5%	99.1%
Global Specialty	$432	$400	$38	$74	90.7%	80.2%
Catastrophe	$136	$71	$32	$50	46.4%	(13.3%)
Life & Health (allocated underwriting)	$311	$313	$18	$26	n/a	n/a

Key KPIs:

KPI	Q2 2014	Q1 2015	Q2 2015
Net investment income ($USD Millions)	$129.967	$104.631	$120.192
Net realized/unrealized inv. gains (losses) ($USD Millions)	$165.717	$115.645	$(255.734)
Book value per common share ($USD)	$118.96 (Jun 30, 2014)	$129.86 (Mar 31, 2015)	$127.24 (Jun 30, 2015)
Tangible book value per common share ($USD)	$107.80 (Jun 30, 2014)	$118.40 (Mar 31, 2015)	$115.90 (Jun 30, 2015)
Total capital ($USD Billions)	$7.52 (Jun 30, 2014)	$8.01 (Mar 31, 2015)	$7.89 (Jun 30, 2015)
Dividends declared per common share ($USD)	$0.67	$0.70	$0.70
Effective tax rate on operating earnings (%)	n/a	17.2%	16.4%
Favorable prior-year reserve development ($USD Millions)	$160.880	$224.337	$173.368

Guidance Changes

The company did not provide forward guidance. Q2 pre-announcement ranges were confirmed by actual results; dividend maintained.

Metric	Period	Previous Guidance	Current (Actual)	Change
Operating earnings ($USD Millions)	Q2 2015	$100–$120	$112.5	Within range
Diluted operating EPS ($USD)	Q2 2015	$2.10–$2.50	$2.35	Within range
Net loss attributable to common ($USD Millions)	Q2 2015	$(115)–$(95)	$(103.1)	Within range
Diluted net loss per share ($USD)	Q2 2015	$(2.41)–$(2.01)	$(2.16)	Within range
Annualized operating ROE (%)	Q2 2015	6.7%–7.9%	7.5%	Within range
Annualized net loss ROE (%)	Q2 2015	(7.6)%–(6.4)%	(6.8)%	Within range
Diluted book value per share ($USD)	Q2 2015	$127.00–$127.40	$127.24	Within range
Diluted tangible book per share ($USD)	Q2 2015	$115.65–$116.05	$115.90	Within range
Dividend per share ($USD)	Q3 pay date	—	$0.70 declared; payable Sep 1, record Aug 7	Maintained

Earnings Call Themes & Trends

(Transcript not available in dataset; themes from management commentary across periods.)

Topic	Previous Mentions (Q4 2014 and Q1 2015)	Current Period (Q2 2015)	Trend
Reinsurance pricing/competition	“very difficult reinsurance operating environment” despite strong 2014 operating ROE	“persistent competitive reinsurance pressures,” but “initial signs that markets are beginning to stabilize,” with profitable new treaties	Stabilizing from very competitive
Interest rates & investment marks	Q1: gains as U.S./Euro risk-free rates decreased	Losses as longer-term risk-free rates increased; $(256)M pre-tax losses	Sensitive to rate moves; negative in Q2
Reserve development	Q4/Q1: broad favorable PYD supporting combined ratios	Favorable PYD across all Non-life sub-segments; 17.1 points (or $173M)	Continues favorable
Catastrophe exposure/mix	Q4: quiet renewal period; technical ratio 35.6%	NPW down 48% YoY (−44% CFX) due to retrocession, cancellations; technical ratio (13.3%)	Mix shifting; more retrocession
Corporate actions/costs	Dividend increase, buybacks in Q4	Axis amalgamation costs ($9M) and Presidio earn-out ($25M) impacted Q2 other expenses	Temporary cost drag

Management Commentary

“We continued to see challenging market conditions… Nevertheless, we posted strong technical results in the quarter… operating ROE of 8.5%. … our tangible book value per share was impacted by increases in longer term risk‑free rates… resulting in a significant mark‑to‑market loss on our investment portfolio” — Interim CEO David Zwiener .
“As we look ahead to the important fall renewal season… we saw some initial signs that markets are beginning to stabilize, and we wrote a number of profitable new treaties” — David Zwiener .

Q&A Highlights

The Q2 2015 earnings call transcript was not available in the document catalog; a call was scheduled for July 28 (10 a.m. ET) per the press release .

Estimates Context

S&P Global (Capital IQ) consensus estimates for PRE-PJ Q2 2015 EPS and revenue were unavailable due to missing CIQ mapping for the ticker; therefore, comparisons to Street consensus could not be provided [GetEstimates error].

Key Takeaways for Investors

Underwriting quality remains strong, with favorable prior-year development and an improved Non-life combined ratio YoY; this supports operating earnings even amid investment volatility .
GAAP loss was primarily a function of rate-driven investment marks; portfolio sensitivity to interest rate moves is a key near-term swing factor for book value and earnings .
Segment mix shifts matter: Catastrophe NPW fell sharply due to higher retrocession and cancellations; Global Specialty delivered notable technical improvement, offsetting pressure elsewhere .
Capital position is stable: total capital ~$7.9B, book value per share $127.24; dividend sustained at $0.70/share, signaling confidence in balance sheet strength .
Near-term: watch rate trajectories and renewal pricing; management sees early stabilization and profitable new treaty opportunities into the fall renewals .
Medium-term: continued favorable reserve development and disciplined retrocession use can underpin technical margins; corporate costs (amalgamation/earn-out) should fade after Q2 .

Appendix: Additional Data Points

Q2 other expenses of $130M included $9M Axis transaction costs (~~$0.19 per diluted share pre-tax) and $25M Presidio earn‑out (~~$0.53 per diluted share pre-tax) .
Effective tax rate on operating earnings was 16.4% in Q2; on non‑operating losses 15.3% .
Dividends: $0.70 per share declared July 27, payable Sep 1, record Aug 7 .

All figures and statements are sourced from PartnerRe’s Q2 2015 8‑K press release and financial supplement, the July 13 pre-announcement 8‑K, and prior quarter filings as cited above.

PARTNERRE LTD (PRE-PJ)·Q2 2015 Earnings Summary