Fair Value (Tables)

3 Months Ended

Mar. 31, 2014

Financial instruments measured at fair value and categorized between Levels 1, 2 and 3

			Quoted prices in				Significant
			active markets for		Significant other		unobservable
			identical assets		observable inputs		inputs
March 31, 2014			(Level 1)		(Level 2)		(Level 3)		Total
Fixed maturities
	U.S. government and government sponsored enterprises		$	0	$	1,866,135	$	0	$	1,866,135
	U.S. states, territories and municipalities			0		16,438		113,467		129,905
	Non-U.S. sovereign government, supranational
		and government related		0		2,332,066		0		2,332,066
	Corporate			0		5,989,320		0		5,989,320
	Asset-backed securities			0		703,750		447,701		1,151,451
	Residential mortgage-backed securities			0		2,384,629		0		2,384,629
	Other mortgage-backed securities			0		44,895		0		44,895
Fixed maturities			$	0	$	13,337,233	$	561,168	$	13,898,401
Short-term investments			$	0	$	28,821	$	0	$	28,821
Equities
	Real estate investment trusts		$	196,661	$	0	$	0	$	196,661
	Energy			160,093		0		0		160,093
	Insurance			136,040		0		0		136,040
	Finance			97,863		9,569		22,706		130,138
	Consumer noncyclical			112,721		0		0		112,721
	Communications			83,724		0		2,111		85,835
	Technology			55,263		0		7,400		62,663
	Industrials			47,622		0		0		47,622
	Consumer cyclical			45,709		0		0		45,709
	Utilities			38,605		0		0		38,605
	Other			20,929		0		0		20,929
	Mutual funds and exchange traded funds			25,170		179,505		8,053		212,728
Equities			$	1,020,400	$	189,074	$	40,270	$	1,249,744
Other invested assets
	Derivative assets
		Foreign exchange forward contracts	$	0	$	4,404	$	0	$	4,404
		Foreign currency option contracts		0		398		0		398
		Futures contracts		18,814		0		0		18,814
		Total return swaps		0		0		181		181
	Other
		Notes and loan receivables and notes securitization		0		0		42,243		42,243
		Annuities and residuals		0		0		18,945		18,945
		Private equities		0		0		42,655		42,655
	Derivative liabilities
		Foreign exchange forward contracts		0		(5,888)		0		(5,888)
		Futures contracts		(5)		0		0		(5)
		Insurance-linked securities		0		0		(740)		(740)
		Total return swaps		0		0		(483)		(483)
		Interest rate swaps		0		(5,797)		0		(5,797)
		TBAs		0		(1,388)		0		(1,388)
Other invested assets			$	18,809	$	(8,271)	$	102,801	$	113,339
Funds held – directly managed
	U.S. government and government sponsored enterprises		$	0	$	153,426	$	0	$	153,426
	U.S. states, territories and municipalities			0		0		301		301
	Non-U.S. sovereign government, supranational
		and government related		0		178,839		0		178,839
	Corporate			0		245,067		0		245,067
	Short-term investments			0		3,477		0		3,477
	Other invested assets			0		0		15,223		15,223
Funds held – directly managed			$	0	$	580,809	$	15,524	$	596,333
Total			$	1,039,209	$	14,127,666	$	719,763	$	15,886,638

			Quoted prices in				Significant
			active markets for		Significant other		unobservable
			identical assets		observable inputs		inputs
December 31, 2013			(Level 1)		(Level 2)		(Level 3)		Total
Fixed maturities
	U.S. government and government sponsored enterprises		$	0	$	1,623,859	$	0	$	1,623,859
	U.S. states, territories and municipalities			0		16,207		108,380		124,587
	Non-U.S. sovereign government, supranational
		and government related		0		2,353,699		0		2,353,699
	Corporate			0		6,048,663		0		6,048,663
	Asset-backed securities			0		691,654		446,577		1,138,231
	Residential mortgage-backed securities			0		2,268,517		0		2,268,517
	Other mortgage-backed securities			0		35,747		0		35,747
Fixed maturities			$	0	$	13,038,346	$	554,957	$	13,593,303
Short-term investments			$	0	$	13,546	$	0	$	13,546
Equities
	Real estate investment trusts		$	175,796	$	0	$	0	$	175,796
	Energy			159,509		0		0		159,509
	Insurance			144,020		0		0		144,020
	Finance			108,944		9,556		20,207		138,707
	Consumer noncyclical			108,663		0		0		108,663
	Communications			70,792		0		2,199		72,991
	Technology			53,768		0		7,752		61,520
	Industrials			47,677		0		0		47,677
	Consumer cyclical			45,915		0		0		45,915
	Utilities			37,151		0		0		37,151
	Other			19,993		0		0		19,993
	Mutual funds and exchange traded funds			61,902		139,322		7,887		209,111
Equities			$	1,034,130	$	148,878	$	38,045	$	1,221,053
Other invested assets
	Derivative assets
		Foreign exchange forward contracts	$	0	$	1,249	$	0	$	1,249
		Futures contracts		41,031		0		0		41,031
		Total return swaps		0		0		79		79
		Interest rate swaps		0		2,147		0		2,147
		TBAs		0		2		0		2
	Other
		Notes and loan receivables and notes securitization		0		0		41,446		41,446
		Annuities and residuals		0		0		24,064		24,064
		Private equities		0		0		39,131		39,131
	Derivative liabilities
		Foreign exchange forward contracts		0		(8,648)		0		(8,648)
		Foreign currency option contracts		0		(535)		0		(535)
		Credit default swaps (protection purchased)		0		(71)		0		(71)
		Insurance-linked securities		0		0		(268)		(268)
		Total return swaps		0		0		(599)		(599)
		Interest rate swaps		0		(2,558)		0		(2,558)
		TBAs		0		(1,331)		0		(1,331)
Other invested assets			$	41,031	$	(9,745)	$	103,853	$	135,139
Funds held – directly managed
	U.S. government and government sponsored enterprises		$	0	$	157,296	$	0	$	157,296
	U.S. states, territories and municipalities			0		0		286		286
	Non-U.S. sovereign government, supranational
		and government related		0		137,186		0		137,186
	Corporate			0		248,947		0		248,947
	Short-term investments			0		2,426		0		2,426
	Other invested assets			0		0		15,165		15,165
Funds held – directly managed			$	0	$	545,855	$	15,451	$	561,306
Total			$	1,075,161	$	13,736,880	$	712,306	$	15,524,347

Reconciliation of beginning and ending balances for all financial instruments measured at fair value using Level 3 inputs

															Change in
						Realized and										unrealized
						unrealized										investment
						investment						Net				gains (losses)
				Balance at		gains (losses)		Purchases		Settlements		transfers		Balance		relating to
For the three months ended			beginning		included in		and		and		into/ (out of)		at end		assets held at
March 31, 2014			of period		net income		issuances ⁽¹⁾		sales		Level 3		of period		end of period
Fixed maturities
	U.S. states, territories
		and municipalities	$	108,380	$	892	$	4,265	$	(70)	$	0	$	113,467	$	890
	Asset-backed securities			446,577		5,996		59,418		(64,290)		0		447,701		6,259
Fixed maturities			$	554,957	$	6,888	$	63,683	$	(64,360)	$	0	$	561,168	$	7,149
Equities
	Finance		$	20,207	$	2,499	$	0	$	0	$	0	$	22,706	$	2,499
	Communications			2,199		(88)		0		0		0		2,111		(88)
	Technology			7,752		(352)		0		0		0		7,400		(352)
	Mutual funds and exchange
		traded funds		7,887		166		0		0		0		8,053		166
Equities			$	38,045	$	2,225	$	0	$	0	$	0	$	40,270	$	2,225
Other invested assets
	Derivatives, net		$	(788)	$	466	$	(720)	$	0	$	0	$	(1,042)	$	466
	Notes and loan receivables and
		notes securitization		41,446		600		720		(523)		0		42,243		600
	Annuities and residuals			24,064		89		0		(5,208)		0		18,945		128
	Private equities			39,131		433		5,066		(1,975)		0		42,655		401
Other invested assets			$	103,853	$	1,588	$	5,066	$	(7,706)	$	0	$	102,801	$	1,595
Funds held – directly managed
	U.S. states, territories
		and municipalities	$	286	$	15	$	0	$	0	$	0	$	301	$	15
	Other invested assets			15,165		(197)		255		0		0		15,223		(197)
Funds held – directly managed			$	15,451	$	(182)	$	255	$	0	$	0	$	15,524	$	(182)
Total			$	712,306	$	10,519	$	69,004	$	(72,066)	$	0	$	719,763	$	10,787

Purchases and issuances of derivatives include issuances of $0.7 million.

					Realized and										Change in
						unrealized										unrealized
						investment						Net				investment (losses)
				Balance at		(losses) gains		Purchases		Settlements		transfers		Balance		gains relating
For the three months ended			beginning		included in		and		and		into/ (out of)		at end of		to assets held
March 31, 2013			of period		net income		issuances		sales ⁽¹⁾		Level 3		period		at end of period
Fixed maturities
	U.S. states, territories
		and municipalities	$	233,235	$	(849)	$	0	$	(94)	$	0	$	232,292	$	(849)
	Corporate			100,904		(188)		0		0		0		100,716		(188)
	Asset-backed securities			323,134		1,741		27,156		(26,372)		0		325,659		1,781
Fixed maturities			$	657,273	$	704	$	27,156	$	(26,466)	$	0	$	658,667	$	744
Equities
	Finance		$	13,477	$	(924)	$	0	$	0	$	0	$	12,553	$	(924)
	Technology			6,987		660		0		0		0		7,647		660
	Mutual funds and exchange
		traded funds		7,264		178		0		0		0		7,442		178
Equities			$	27,728	$	(86)	$	0	$	0	$	0	$	27,642	$	(86)
Other invested assets
	Derivatives, net		$	3,911	$	(3,679)	$	0	$	2,500	$	0	$	2,732	$	(3,679)
	Notes and loan receivables and
		notes securitization		34,902		(61)		1,360		(2,143)		0		34,058		(61)
	Annuities and residuals			46,882		336		0		(11,562)		0		35,656		826
	Private equities			1,404		(3,065)		19,425		0		0		17,764		(3,065)
Other invested assets			$	87,099	$	(6,469)	$	20,785	$	(11,205)	$	0	$	90,210	$	(5,979)
Funds held – directly managed
	U.S. states, territories
		and municipalities	$	345	$	(4)	$	0	$	0	$	0	$	341	$	(4)
	Other invested assets			17,976		(2,437)		0		(71)		0		15,468		(1,373)
Funds held – directly managed			$	18,321	$	(2,441)	$	0	$	(71)	$	0	$	15,809	$	(1,377)
Total			$	790,421	$	(8,292)	$	47,941	$	(37,742)	$	0	$	792,328	$	(6,698)

Settlements and sales of annuities and residuals include sales of $6.3 million.

Fair Value Inputs Assets Quantitative Information [Table Text Block]

Range

March 31, 2014

Fair value

Valuation techniques

Unobservable inputs

(Weighted average)

Fixed maturities

U.S. states, territories and municipalities

113,467

Discounted cash flow

Credit spreads

2.7% - 10.1% (5.4%)

Asset-backed securities – interest only

Discounted cash flow

Credit spreads

5.2% - 10.3% (8.5%)

Asset-backed securities – other

447,681

Discounted cash flow

Credit spreads

3.9% - 12.1% (6.9%)

Equities

Finance

17,316

Weighted market

Net income multiple

14.6 (14.6)

comparables

Tangible book value multiple

1.1 (1.1)

Liquidity discount

25.0% (25.0%)

Comparable return

12.0% (12.0%)

Finance

5,390

Profitability analysis

Projected return on equity

14.0% (14.0%)

Communications

2,111

Weighted market

Adjusted earnings multiple

9.4 (9.4)

comparables

Comparable return

-4.0% (-4.0%)

Technology

7,400

Weighted market

Revenue multiple

1.5 (1.5)

comparables

Adjusted earnings multiple

8.4 (8.4)

Other invested assets

Total return swaps

(302)

Discounted cash flow

Credit spreads

3.5% - 18.3% (14.3%)

Notes and loan receivables

22,038

Discounted cash flow

Credit spreads

17.5% (17.5%)

Gross revenue/fair value

1.3 - 1.5 (1.5)

Notes securitization

20,205

Discounted cash flow

Credit spreads

6.1% (6.1%)

Annuities and residuals

18,945

Discounted cash flow

Credit spreads

4.0% - 7.5% (5.8%)

Prepayment speed

0% - 15.0% (6.1%)

Constant default rate

0.3% - 23.0% (8.8%)

Private equity - direct

12,040

Discounted cash flow and

Net income multiple

9.1 (9.1)

weighted market

Tangible book value multiple

1.7 (1.7)

comparables

Recoverability of intangible assets

0% (0%)

Private equity funds

12,653

Lag reported market value

Net asset value, as reported

100.0% (100.0%)

Market adjustments

-1.9% - 2.2% (1.2%)

Private equity - other

17,962

Discounted cash flow

Effective yield

5.8% (5.8%)

Funds held – directly managed

Other invested assets

15,223

Lag reported market value

Net asset value, as reported

100.0% (100.0%)

Market adjustments

-15.7% - 0% (-13.6%)

Range

December 31, 2013

Fair value

Valuation techniques

Unobservable inputs

(Weighted average)

Fixed maturities

U.S. states, territories and municipalities

108,380

Discounted cash flow

Credit spreads

2.9% - 9.9% (5.3%)

Asset-backed securities – interest only

Discounted cash flow

Credit spreads

5.5% - 10.7% (8.8%)

Asset-backed securities – other

446,556

Discounted cash flow

Credit spreads

4.0% - 12.2% (7.1%)

Equities

Finance

15,483

Weighted market

Net income multiple

14.6 (14.6)

comparables

Tangible book value multiple

1.1 (1.1)

Liquidity discount

25.0% (25.0%)

Comparable return

8.5% (8.5%)

Finance

4,724

Profitability analysis

Projected return on equity

14.0% (14.0%)

Communications

2,199

Weighted market

Adjusted earnings multiple

9.4 (9.4)

comparables

Comparable return

0% (0%)

Technology

7,752

Weighted market

Revenue multiple

0.9 (0.9)

comparables

Adjusted earnings multiple

4.4 (4.4)

Other invested assets

Total return swaps

(520)

Discounted cash flow

Credit spreads

2.8% - 18.9% (17.0%)

Notes and loan receivables

21,280

Discounted cash flow

Credit spreads

17.5% (17.5%)

Gross revenue/fair value

1.5 (1.5)

Notes securitization

20,166

Discounted cash flow

Credit spreads

6.2% (6.2%)

Annuities and residuals

24,064

Discounted cash flow

Credit spreads

4.0% - 7.9% (5.8%)

Prepayment speed

0% - 15.0% (6.4%)

Constant default rate

0.3% - 35.0% (12.4%)

Private equity - direct

11,742

Discounted cash flow and

Net income multiple

8.3 (8.3)

weighted market

Tangible book value multiple

1.6 (1.6)

comparables

Recoverability of intangible assets

0% (0%)

Private equity funds

8,993

Lag reported market value

Net asset value, as reported

100.0% (100.0%)

Market adjustments

1.8% - 9.8% (8.3%)

Private equity - other

18,396

Discounted cash flow

Credit spreads

3.8% (3.8%)

Funds held – directly managed

Other invested assets

15,165

Lag reported market value

Net asset value, as reported

100.0% (100.0%)

Market adjustments

-22.9% - 0% (-15.5%)

Change in fair value of financial instruments subject to fair value option

	For the three		For the three
	months ended		months ended
	March 31, 2014		March 31, 2013
Fixed maturities and short-term investments	$	119,799	$	(71,670)
Equities		10,325		50,066
Other invested assets		1,042		(4,834)
Funds held – directly managed		736		(6,043)
Total	$	131,902	$	(32,481)

Carrying values and fair values of financial instrument liabilities

	March 31, 2014				December 31, 2013
	Carrying Value		Fair Value		Carrying Value		Fair Value
Debt related to senior notes⁽¹⁾	$	750,000	$	868,989	$	750,000	$	844,331
Debt related to capital efficient notes ⁽²⁾		63,384		62,780		63,384		61,094

(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 March 31, 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 March 31, 2014 and December 31, 2013.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References+ Details

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References+ Details

- Definition

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, provide the aggregate carrying amount of ineligible items included in each line item in the balance sheet, if any; (b) the difference between the aggregate fair value and the aggregate unpaid principal balance (assuming contractual principal amounts and fair value option elected) of: (i) loans and long-term receivables (other than securities otherwise reported at fair value) and (ii) long-term debt instruments; (c) for loans held as assets for which the fair value option has been elected: (i) the aggregate fair value of loans that are 90 days or more past due, (ii) if the policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status, and (iii) the difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both; (2) for items included in the income statement: (a) the amounts of gains and losses from fair value changes included in earnings and in which line in the income statement those gains and losses are reported whether or not combined with gains and losses from items required to be accounted for at fair value; (b) for loans and other receivables held as assets, the estimated amount of gains or losses included in earnings attributable to changes in instrument-specific credit risk; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk, the estimated amount of gains and losses from fair value changes included in earnings that are attributable to changes in the instrument-specific credit risk; and (3) certain other disclosures as required or determined to be provided.

+ References+ Details