Prenetics Global Limited Annual Report 2020

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FY2020 Annual Report · Prenetics Global Limited

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________
FORM 20-F

____________________________________

☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE

ACT OF 1934

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2020

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF

1934

☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE

ACT OF 1934

Commission file number 001-14536
___________________________________

PartnerRe Ltd.

(Exact name of registrant as specified in its charter)
______________________________________
Bermuda
(Jurisdiction of incorporation or organization)

90 Pitts Bay Road, Pembroke, HM08, Bermuda
(Address of principal executive offices)

Nicolas Burnet
Executive Vice President and Chief Financial Officer
90 Pitts Bay Road, Pembroke, HM 08, Bermuda Telephone: +1 441-292-0888, Email: nicolas.burnet@partnerre.com
(Name, Telephone, E-mail and/or Facsimile Number and Address of Company Contact Person)
____________________________________
Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

6.50% Series G Cumulative Preferred Shares, $1.00 par value

7.25% Series H Cumulative Preferred Shares, $1.00 par value

5.875% Series I Non-Cumulative Preferred Shares, $1.00 par value

PRE-G

PRE-H

PRE-I

Name of each exchange on which registered
New York Stock Exchange

New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None
_________________________________

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report:

100,000,000 common shares and 274,664 Class B common shares

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ¨ No ý
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the

Securities Exchange Act of 1934. Yes ¨ No ý

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90
days. Yes ý No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of

Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such
files). Yes ý No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See the

definitions of “large accelerated filer,” “accelerated filer” and “emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨
If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the

Emerging growth company ☐

Non-accelerated filer ý

Accelerated filer ¨

extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ¨

† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards

Codification after April 5, 2012.

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over
financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP ý
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ý

International Financial Reporting Standards as issued by the International Accounting Standards Board ¨

Other ¨

TABLE OF CONTENTS

Page

PART I

Item 1.
Identity of Directors, Senior Management and Advisers
Item 2.
Offer Statistics and Expected Timetable
Item 3.
Key Information
Item 4.
Information on the Company
Item 4A. Unresolved Staff Comments
Item 5.

Operating and Financial Review and Prospects

Item 6.

Item 7.

Item 8.

Item 9.

Directors, Senior Management and Employees

Major Shareholders and Related Party Transactions

Financial Information

The Offer and Listing

Item 10.

Additional Information

Item 11.

Quantitative and Qualitative Disclosures About Market Risk

Item 12.

Description of Securities Other than Equity Securities

PART II

Defaults, Dividend Arrearages and Delinquencies

Item 13.
Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds
Item 15.
Controls and Procedures
Item 16A. Audit Committee Financial Expert
Item 16B. Code of Ethics
Item 16C. Principal Accountant Fees and Services
Item 16D. Exemptions from the Listing Standards for Audit Committees
Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers
Item 16F. Change in Registrant’s Certifying Accountant
Item 16G. Corporate Governance
Item 16H. Mine Safety Disclosure

PART III

Item 17.
Item 18.
Item 19.

Financial Statements
Financial Statements

Exhibits

4
4
4
20
38
39

92
92
92
92
92
93
93
93

94
94

160

Table of Contents

PART I

ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

Not applicable.

ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE

Not applicable.

ITEM 3. KEY INFORMATION

A. Selected Financial Data

The selected consolidated financial data of PartnerRe Ltd. and its subsidiaries (the Company, PartnerRe or the Group) below

should be read in conjunction with the Consolidated Financial Statements, and the accompanying Notes to the Consolidated
Financial Statements in Item 18 and with other information contained in this report, including Operating and Financial Review and
Prospects in Item 5 of this report.

The selected consolidated financial data for 2020, 2019, 2018, 2017 and 2016 (in millions of United States (U.S.) dollars) is as

follows:

Statement of Operations Data

Net premiums earned

Net investment income

Net realized and unrealized investment gains (losses)

Other income

Total revenues

Net income (loss)

Net income (loss) attributable to common shareholder

Balance Sheet Data

Total assets

Total shareholders’ equity
Common shareholder's equity (1)

For the years ended December 31,

2020

2019

2018

2017

2016

6,537 $

6,525 $

5,514 $

5,025 $

4,970

361

454

449

887

416

(390)

402

232

411

7,365 $

7,876 $

5,590 $

5,675 $

5,422

254 $

206 $

937 $

890 $

(86) $

(132) $

264 $

218 $

447

387

At December 31,

2020

2019

2018

2017

2016

$ 26,899 $ 25,062 $ 22,819 $ 22,981 $ 21,939

7,327 $

7,270 $

6,517 $

6,745 $

6,690 $

6,566 $

5,812 $

6,041 $

6,688

5,984

(1) Common shareholder's equity is calculated as Total shareholders' equity less preferred shareholders' equity of $637 million for

2020, the liquidation value of preferred shares. For 2019, 2018, 2017 and 2016, preferred shareholders' equity was $704
million.

On March 18, 2016, the Company’s common shares were acquired by EXOR N.V. (subsequently renamed EXOR Nederland

N.V.). As a result, all of the Company’s publicly traded common shares and all treasury shares were canceled and the Company's
common shares were delisted. Accordingly, per share data is no longer meaningful and is no longer presented by the Company. See
also Share Ownership section in Item 6.E and Notes 10 and 13 to the Consolidated Financial Statements in Item 18 of this report.

B. Capitalization and Indebtedness

Not applicable.

C. Reasons for the Offer and Use of Proceeds

Not applicable.

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D. Risk Factors

We expose ourselves to significant risks that can impact our financial strength as measured by United States generally
accepted accounting principles (U.S. GAAP) or regulatory and rating agencies' capital requirements. Risk sources for which
management has established key risk limits approved by the Board of Directors (the “Board”), and the related approved limits and
actual limits deployed, at December 31, 2020 and 2019 are presented in the Risk Management section below in Item 4.B.

The following risks should be read in conjunction with the Safe Harbor Statement and the Operating and Financial Review and
Prospects section in Item 5, and the Notes to the Consolidated Financial Statements in Item 18 of this report. These risks may affect
our financial condition and operating results and, individually or in the aggregate, could cause our actual results to differ materially
from past and projected future results. Some of these risks and uncertainties could affect particular business operations or segments,
while others could affect all of our businesses. Although risks are discussed separately, many are interrelated.

Except as may be required by law, we undertake no obligation to publicly update forward-looking statements, whether as a
result of new information, future events, or otherwise. It is impossible to predict or identify all risk factors and, consequently, the
following factors should not be construed as a complete discussion of risks and uncertainties that may affect us.

As used in these Risk Factors, the terms “the Company”, “PartnerRe”, “we”, “our” or “us” may, depending upon the context,

refer solely to the Company, to one or more of the Company’s consolidated subsidiaries or to all of them taken as a whole. The
terms EXOR and Exor Group relate to the Company’s ultimate parent, EXOR N.V. and its affiliated companies (see Information on
the Company in Item 4 of this report).

Risks Related to COVID-19

Our results of operations may be materially and adversely affected by COVID-19 and other pandemics.

Pandemics could materially and adversely affect our results of operations. For example, the novel coronavirus disease
(COVID-19) has been declared a pandemic and is continuing to spread throughout the world. This pandemic continues to rapidly
evolve and disrupt the global economy, including the insurance and reinsurance markets. The rapid spread has resulted in authorities
around the world implementing numerous measures to contain COVID-19, such as travel bans and restrictions, quarantines, shelter-
in-place orders and business shutdowns. COVID-19 and these containment measures have had, and are expected to continue to
have, a substantial negative impact on business around the world and on global, regional and national economies.

We cannot predict what impact COVID-19 will ultimately have on the global economy, markets or our business. These
circumstances have introduced, and similar circumstances caused by pandemics in the future could introduce, significant risks and
uncertainty with respect to our business. The scale and scope of COVID-19 may heighten the potential adverse effects on our
business, reputation, results of operation, financial condition or liquidity, including without limitation the following:

•

The economic downturn resulting from COVID-19 has the potential to cause elevated numbers of claims and increases in
claims sizes for the insurance and reinsurance industry as a whole. Among other things, we incurred losses attributable to
business interruption and event cancellation related coverages, credit exposures in financial risks lines and life and health
business as a direct result of COVID-19 and the related effects of the economic downturn in 2020. For information relating
to the net impact of COVID-19 related losses on our underwriting result for the year ended December 31, 2020, refer to
Operating and Financial Review and Prospects section in Item 5 of this report. In addition, in the future, we may be
exposed to claims relating to COVID-19 and indirect exposures arising from an ensuing economic downturn;

Ultimate losses from COVID-19 related claims could be greater than our reserves for those losses;

Reduced access to capital, if needed, and the cost of external capital could be elevated;

Increased claims, losses, litigation and related expenses. For example, there are currently emerging litigation claims both in
the U.S. and globally challenging whether insurers (and, by consequence, reinsurers) should be responsible for business
interruption losses from insured's policies caused by COVID-19, notwithstanding the requirement of "physical loss or
damage" and other policy limitations and exclusions. Litigation relating to business interruption coverage has currently
been brought against insurers by a small number of U.S. businesses affected by the pandemic, including restaurants and
other business owners, and we expect such litigation to increase significantly over time. The outcome of such litigation is
uncertain, and if ultimately adjudicated against insurers, could result in significant and widespread commercial insurance
losses across the reinsurance industry. While insurers are reviewing the subject business with a view to seeking a
communicable disease exclusion for much of the subject business, there are no assurances that any such exclusion will be
accepted by the policyholders. Such exclusions may also be subject to challenge by clients in the event of future
COVID-19 and other pandemic related losses;

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•

Increased losses due to legislative, regulatory and judicial actions in response to COVID-19, including, but not limited to
U.S. state and non-U.S. governments and regulatory bodies that are considering proposals that would seek to retroactively
apply business interruption coverage to commercial insureds despite policy language to the contrary; some states are also
considering "pooling" mechanisms to apply certain assessments more broadly to property and casualty insureds doing
business in that state to cover business interruption claims;

Heightened risk to which our investment and derivative instrument portfolios are subject, including interest rate
fluctuations, prolonged periods of low or negative interest rates, equity price risk, foreign currency movements, pre-
payment or reinvestment risk, liquidity risk and credit risk, which could reduce future investment results;

Certain of our policyholders, intermediaries and reinsurance and retrocession counterparties may not pay premiums or
other amounts owed to us due to insolvency or other reasons. Insolvency, liquidity problems, distressed financial
conditions due to the impact of COVID-19 or the general effects of economic recession may increase the risk that
policyholders or intermediaries may not pay a part or the full amount of premiums owed to us, despite an obligation to do
so. The terms of our contracts, or actions by our regulators, may not permit us to cancel our reinsurance even though we
have not received payment. If refunds or non-payments become widespread, whether as a result of insolvency, lack of
liquidity, adverse economic conditions, operational failure or otherwise, it could have a material adverse impact on our
revenues and results of operations;

• We may experience decreased employee productivity, including as a result of prolonged remote working arrangements,

increased medical, emergency or other leave;

•

Claims handling by our policyholders may be affected during the pandemic as claims teams adapt to working from home.
This could affect the pattern of emergence and settlement of claims. Loss adjusters may also be prevented from assessing
premises leading to elevated uncertainty and delays in the assessment of case reserves; and

Increased risk that weaknesses or failures in our business continuity plans could lead to disruption of operations, liability to
clients, exposure to disciplinary action or harm to our reputation. Furthermore, weaknesses or failures within a vendor's
business continuity plan can materially disrupt our business operations. Our information systems and those of our vendors
and service providers may be more vulnerable to cyberattacks, computer viruses or other computer-related attacks,
programming errors and similar disruptive problems during a business continuation event. This may be particularly in the
event that there any issues with our key reinsurance brokers or other partners.

COVID-19 could further exacerbate the risk factors described within this report. The above risks related to COVID-19, in

combination with other risks described herein, may adversely affect our results of operations and financial condition.

Risks Related to Our Company

The catastrophe business that we underwrite will result in volatility of our earnings and could impair our financial condition.

Catastrophic losses result from events such as windstorms, hurricanes, typhoons, tsunamis, earthquakes, floods, hailstorms,
tornadoes, severe winter weather, fires, drought, explosions, and other natural and man-made disasters, the incidence and severity of
which are inherently unpredictable. We also have substantial exposure to unexpected, large losses resulting from future man-made
catastrophic events, such as acts of terrorism, acts of war, nuclear accidents and political instability, or from other perils. Because
catastrophe reinsurance accumulates large aggregate exposures to both man-made and natural disasters, our loss experience in this
line of business could be characterized as low frequency and high severity. Although we may attempt to exclude losses from
terrorism and certain other similar risks from some coverage we write, we continue to have exposure to such unforeseen or
unpredictable events. Irrespective of the clarity and inclusiveness of policy language, there can be no assurance that a court or
arbitration panel will not limit enforceability of policy language or otherwise issue a ruling adverse to us.

This is likely to result in substantial volatility in our financial results and potentially significant net losses from time to time,

and may also result in a material decline of our book value or impairment of our financial condition that may limit our ability to
make dividend, interest, or principal payments on our preferred shares and debt securities and may limit the funds available to make
payments on policyholder claims.

Should we incur a very large catastrophic loss or a series of catastrophic losses, our ability to write future business may be

adversely impacted if we are unable to replenish our capital.

Changing climate conditions, and the trend towards increasingly frequent and severe catastrophic events, may adversely affect
our financial condition and results.

In recent years, changing weather patterns and climatic conditions, such as global warming, appear to have contributed to the

unpredictability, frequency and severity of natural disasters and created additional uncertainty as to future trends and exposures.
There is a scientific consensus that global warming and other climate changes are increasing the frequency and severity of

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catastrophic weather events, such as hurricanes, tornadoes, windstorms, floods and other natural disasters. Such changes make it
more difficult for us to predict and model catastrophic events, reducing our ability to accurately price our exposure to such events
and mitigate our risks. Any increase in the frequency or severity of natural disasters may adversely affect our financial condition and
results.

Epidemics and pandemics could adversely affect our business, financial condition and results of operations.

Epidemics and pandemics, including the current COVID-19 pandemic, could adversely affect our business, financial condition

and results of operations because they could exacerbate mortality and morbidity risk. The likelihood, timing, and severity of these
events cannot be predicted. A pandemic or other disaster could have a major impact on the global economy or the economies of
particular countries or regions, including travel, trade, tourism, the health system, food supply, consumption, overall economic
output, as well as on the financial markets. In addition, a pandemic or other disaster that affected our employees or the employees of
companies with which we do business could disrupt our business operations. These events could cause a material adverse effect on
our results of operations in any period and, depending on their severity, could also materially and adversely affect our financial
condition.

If actual losses exceed our estimated loss reserves, our net income and capital position will be reduced.

Our success depends upon our ability to accurately assess the risks associated with the businesses that we reinsure. We
establish loss reserves to cover our estimated liability for the payment of all losses and loss expenses incurred with respect to
premiums earned on the reinsurance contracts that we write. Loss reserves are estimates involving actuarial and statistical
projections at a given time to reflect our expectation of the costs of the ultimate settlement and administration of claims. Although
we use actuarial models as well as historical reinsurance and insurance industry loss statistics, we also rely heavily on data provided
by counterparties and on management’s experience and judgment to assist in the establishment of appropriate claims and claim
expense reserves. Because of the many assumptions and estimates involved in establishing reserves, the reserving process is
inherently uncertain. Our estimates and judgments are based on numerous factors, and may be revised as additional experience and
other data become available and are reviewed as new or improved methodologies are developed, as loss trends and claims inflation
impact future payments, or as current laws or interpretations thereof change.

Estimates of losses are based on, among other things, a review of potentially exposed contracts, information reported by and

discussions with counterparties and our estimate of losses related to those contracts and are subject to change as more information is
reported and becomes available. Losses for casualty and liability lines often take a long time to be reported and frequently can be
impacted by lengthy, unpredictable litigation and by the inflation of loss costs over time. Changes in the level of inflation also result
in an increased level of uncertainty in our estimation of loss reserves, particularly for long-tail lines of business. As a consequence,
actual losses and loss expenses paid may deviate substantially from the reserve estimates reflected in our financial statements.

Through various acquisitions, we assumed certain asbestos and environmental exposures. Our non-life reserves include an

estimate of our ultimate liability for asbestos and environmental claims for which we cannot estimate the ultimate value using
traditional reserving techniques, and for which there are significant uncertainties in estimating the amount of our potential losses.
These liabilities are especially hard to estimate for many reasons, including the long delays between exposure and manifestation of
any bodily injury or property damage, difficulty in identifying the source of the asbestos or environmental contamination, long
reporting delays and difficulty in properly allocating liability for the asbestos or environmental damage. Certain of our subsidiaries
have received and continue to receive notices of potential reinsurance claims from ceding insurance companies, which have in turn
received claims asserting asbestos and environmental losses under primary insurance policies, in part reinsured by us. Such claims
notices are often precautionary in nature and are generally unspecific, and the primary insurers often do not attempt to quantify the
amount, timing or nature of the exposure. Given the lack of specificity in some of these notices and the legal and tort environment
that affects the development of claims reserves, the uncertainties inherent in valuing asbestos and environmental claims are not
likely to be resolved in the near future. As of December 31, 2020, the Company’s net non-life reserves included $43 million related
to asbestos and environmental claims.

It is difficult to predict the timing of loss events or estimate the amount of loss any given occurrence will generate. Under U.S.

GAAP, we are not permitted to establish reserves for potential losses associated with catastrophic events until an event that may
give rise to such losses occurs. If such an event were to occur, our reported income would decrease in the affected period. In
particular, unforeseen large losses could reduce our results of operations or impair our financial condition.

If ultimate losses and loss expenses exceed the reserves currently established, we will be required to increase loss reserves in

the period in which we identify the deficiency to cover any such claims. As a result, even when losses are identified and reserves are
established for any line of business, ultimate losses and loss expenses may deviate, perhaps substantially, from estimates reflected in
loss reserves in our financial statements. Variations between our loss reserve estimates and actual emergence of losses could be
material and could have a material adverse effect on our results of operations and financial condition.

See Note 7 to the Consolidated Financial Statements in Item 18 of this report for further details.

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Given the inherent uncertainty of models, the usefulness of our proprietary and third-party models as a tool to evaluate risk is
subject to a high degree of uncertainty that could result in actual losses that are materially different than our estimates,
including probable maximum losses (PMLs), significantly impacting our financial results and condition.

We use our own proprietary catastrophe models and third-party vendor analytic and modeling capabilities to provide risk

assessment for our reinsurance portfolio. We use these models to help us control risk accumulation and inform management and
other stakeholders of capital requirements and to improve the risk/return profile. However, given the inherent uncertainty of
modeling techniques and the application of such techniques, these models and databases may not accurately address a variety of
matters that might impact certain of our coverages.

For example, catastrophe models that simulate loss estimates based on a set of assumptions are important tools used by us to

estimate our PMLs. These assumptions address a number of factors that impact loss potential including, but not limited to, the
characteristics of the natural catastrophe event; demand surge resulting from an event; the types, function, location and
characteristics of exposed risks; susceptibility of exposed risks to damage from an event with specific characteristics; and the
financial and contractual provisions of the reinsurance contracts that cover losses arising from an event. We run many model
simulations in order to understand the impact of these assumptions on its catastrophe loss potential. Furthermore, there are risks
associated with catastrophic events, which are either poorly represented or not represented at all by catastrophe models. Each
modeling assumption or un-modeled risk introduces uncertainty into PML estimates that management must consider. These
uncertainties can include, but are not limited to, the following:

• The models do not address all the possible hazard characteristics of a catastrophe peril (e.g., the precise path and wind

speed of a hurricane);

• The models may not accurately reflect the true frequency of events;

• The models may not accurately reflect a risk’s vulnerability or susceptibility to damage for a given event characteristic;

• The models may not accurately represent loss potential to reinsurance contract coverage limits, terms and conditions; and

• The models may not accurately reflect the impact on the economy of the area affected or the financial, judicial, political, or

regulatory impact on insurance claim payments during or following a catastrophe event.

Our PMLs are selected after assessment of multiple third party vendor model outputs, internally constructed independent
models, including our CatFocus® suite of models, and other qualitative and quantitative assessments by management, including
assessments of exposure not typically modeled in vendor or internal models. Our methodology for estimating PMLs may differ from
methods used by other companies and external parties given the various assumptions and judgments required to estimate a PML.

As a result of these factors and contingencies, our reliance on assumptions and data used to evaluate our entire reinsurance
portfolio, and specifically to estimate a PML, is subject to a high degree of uncertainty that could result in actual losses that are
materially different from our PML estimates and, as a result, our financial results and financial condition may be significantly and
adversely impacted. See further information on PMLs in the Risk Management section in Item 4.B below for further details.

Our Life products expose us to volatility in net income arising from changes in the value of the Life and Health reserves liability
that are directly affected by market risk and other factors and are based upon various assumptions.

The pricing and establishment of reserves for our Life and Health segment related to future policy benefits and the valuation of

life insurance and annuity products are based upon various assumptions, including but not limited to market changes, mortality
rates, morbidity rates and policyholder behavior. The process of establishing reserves for future policy benefits relies on our ability
to accurately estimate insured events that have not yet occurred but that are expected to occur in future periods, as well as
assumptions for investment returns. Significant deviations in actual experience from assumptions used for pricing and for
establishing reserves for future policy benefits could have an adverse effect on the profitability of our products, our business and our
financial results and condition.

Under reinsurance programs covering variable annuity guarantees we assume the risk of guaranteed minimum death benefits
(GMDB). Our net income is directly impacted by changes in the reserves calculated in connection with the reinsurance of GMDB
liabilities. Reported liabilities for GMDB reinsurance are determined using internal valuation models. Such valuations require
considerable judgment and are subject to significant uncertainty. The valuation of these products is subject to fluctuations arising
from, among other factors, changes in interest rates, changes in equity markets, changes in credit markets, changes in the allocation
of the investments underlying annuitant’s account values and assumptions regarding future policyholder behavior. Adverse changes
in market factors and policyholder behavior will have an impact on both life underwriting income and net income. These risks may
increase as we seek to expand our Life and Health business.

The reserves described above are included in Life and health reserves on the Consolidated Balance Sheets with changes in

these reserves included in Losses and loss expenses within the Consolidated Statements of Operations.

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In addition, the reserves that we have established may be inadequate. If ultimate losses and loss expenses exceed the reserves

currently established, we will be required to increase loss reserves in the period in which we identify the deficiency to cover any
such claims. As a result, even when losses are identified and reserves are established for any line of business, ultimate losses and
loss expenses may deviate, perhaps substantially, from estimates reflected in loss reserves in our financial statements. Variations
between our loss reserve estimates and actual emergence of losses could be material and could have a material adverse effect on our
results of operations and financial condition.

See Liquidity and Capital Resources—Reserves in Item 5 and Notes 2(b) and 7 to the Consolidated Financial Statements in

Item 18 of this report for further details.

We rely on a few reinsurance brokers for a large percentage of our business; loss of business provided by these brokers would
reduce our premium volume and net income.

We produce our business both through brokers and through direct relationships with insurance company clients. For the year
ended December 31, 2020, more than 70% of our gross premiums written were produced through brokers. The Company has two
brokers that each individually accounted for 30% and 21% of the Company's total gross premiums written for 2020 (see Note 18 to
the Consolidated Financial Statements in Item 18 of this report for further details). Because broker-produced business is
concentrated with a small number of brokers, we are exposed to concentration risk. A significant reduction in the business produced
by these brokers could potentially reduce our premium volume and net income.

We are exposed to credit risk relating to our reinsurance brokers and cedants.

In accordance with industry practice, we may pay amounts owed under our reinsurance policies to brokers, and they in turn
pay these amounts to the ceding insurer. In some jurisdictions, if the broker fails to make such an onward payment, we might remain
liable to the ceding insurer for the deficiency. Conversely the ceding insurer may pay premiums to the broker for onward payment to
us in respect of reinsurance policies issued by us. In certain jurisdictions, these premiums are considered to have been paid to us at
the time that payment is made to the broker, and the ceding insurer will no longer be liable to us for those amounts, whether or not
we have actually received the premiums. We may not be able to collect all premiums receivable due from any particular broker at
any given time. We also assume credit risk by writing business on a funds-withheld basis. At December 31, 2020, Funds held by
reinsured companies recorded in the Consolidated Balance Sheet was $705 million. Under such arrangements, the cedant retains the
premium they would otherwise pay to us to cover future loss payments.

If we are downgraded by rating agencies, our standing with brokers and customers could be negatively impacted and may
adversely impact our results of operations.

Rating agencies assess and rate the claims-paying ability and financial strength of insurers and reinsurers, such as our principal
operating subsidiaries. These ratings are based upon criteria established by the rating agencies and have become an important factor
in establishing our competitive position in the market. Insureds, insurers, ceding insurers and intermediaries use these ratings as one
measure by which to assess the financial strength and quality of insurers and reinsurers. However, these ratings are not an evaluation
directed to investors of our preferred shares or debt securities, and are not a recommendation to buy, sell or hold our preferred
shares or debt securities.

Our financial strength ratings are subject to periodic review as rating agencies evaluate us to confirm that we continue to meet

their criteria for ratings assigned to us by them. Such ratings may be revised downward or revoked at the sole discretion of such
ratings agencies in response to a variety of factors, including capital adequacy, management strategy, operating earnings and risk
profile. In addition, from time to time, one or more rating agencies may effect changes in their capital models and rating
methodologies that could have a detrimental impact on our ratings. It is also possible that rating agencies may in the future heighten
the level of scrutiny they apply when analyzing companies in our industry, may increase the frequency and scope of their reviews,
may request additional information from the companies that they rate, and may adjust upward the capital and other requirements
employed in their models for maintenance of certain rating levels. There can be no assurance that our ratings will remain at their
current levels.

If our ratings were downgraded, our competitive position in the reinsurance industry may suffer, and it could result in a
reduction in demand for our products. In addition, certain business that we write contains terms that give the ceding company or
derivative counterparty the right to terminate cover and/or require collateral if our ratings are downgraded.

See Liquidity and Capital Resources—Shareholders’ Equity and Capital Resources Management in Item 5 of this report for

our current financial strength ratings. The status of any further changes to ratings or outlooks will depend on various factors.

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The availability of retrocessional reinsurance, including that provided by third-party capital vehicles, to limit our exposure to
risks may be limited and counterparty credit and other risks associated with our retrocession arrangements may result in losses
which could adversely affect our financial condition and results of operations.

For the purposes of managing risk, we use retrocessional reinsurance, including that provided by third-party capital vehicles.

The availability and cost of retrocessional protection is subject to market conditions, which are beyond our control. As a result of
such market conditions and other factors, we may not be able to successfully mitigate risk through retrocessional, third-party capital
and other arrangements.

We are subject to credit risk with respect to our retrocessions because the ceding of risk to retrocessionaires does not relieve us

of our liability to the clients or companies we reinsure. Although we have not experienced any material credit losses to date, an
inability of our retrocessionaires to meet their obligations to us could have a material adverse effect on our financial condition and
results of operations. Our losses for a given event or occurrence may increase if our retrocessionaires dispute or fail to meet their
obligations to us or the retrocessional protections purchased by us are exhausted or are otherwise unavailable for any reason. We are
subject to risk if our third-party capital providers decide not to renew their commitments.

Our failure to establish adequate retrocessional arrangements or the failure of our existing retrocessional or capital market
arrangements to protect us from overly concentrated risk exposure could adversely affect our financial condition and results of
operations.

We may require additional capital in the future, which may not be available or may only be available on unfavorable terms.

Our future capital requirements depend on many factors, including rating agencies and regulatory requirements, our ability to

write new business successfully, the frequency and severity of catastrophic events, and our ability to establish premium rates and
reserves at levels sufficient to cover losses. We may need to raise additional funds through financings or curtail our growth and/or
reduce our assets. Any equity or debt financing, if available at all, may be on terms that are not favorable to us. Financings could
result in the issuance of securities that have rights, preferences and privileges that are senior to those of our other securities.
Disruption in the increasingly volatile financial markets may limit our ability to access capital required to operate our business and
we may be forced to delay raising capital or bear a higher cost of capital, which could decrease our profitability and significantly
reduce our financial flexibility. The large amounts of recent industry-wide catastrophe losses have made access to capital more
challenging, potentially making it more difficult and more expensive for us to raise additional financing if necessary. In addition, if
we experience a credit rating downgrade, withdrawal or negative watch/outlook in the future, we could incur higher borrowing costs
and may have more limited means to access capital. If we cannot obtain adequate capital on favorable terms or at all, our business,
operating results and financial condition could be adversely affected. In such a severe event, we may be reliant on our parent
company, EXOR Nederland N.V., to provide a further capital injection or contribution to us. However, all EXOR Group portfolio
companies are managed independently and autonomously, and there can be no guarantee that EXOR Nederland N.V. would provide
any additional capital.

Our investments are subject to interest rate, credit, equity and real estate related risks, which may adversely affect our net income
and may adversely affect the adequacy of our capital.

We invest the net premiums we receive unless, or until such time as, we pay out losses and/or until they are made available for
distribution to common and preferred shareholders, to pay interest on or redemption of debt and preferred shares, or otherwise used
for general corporate purposes. Investment results comprise a substantial portion of our income. For the year ended December 31,
2020, we had net investment income of $361 million, which represented approximately 5% of total revenues. In addition, we
recorded net realized and unrealized gains on investments of $454 million during 2020, which are included in the net income for the
year. We are accordingly exposed to significant financial and capital market risks, including changes in interest rates, credit spreads,
equity and real estate prices, foreign exchange rates, market volatility, the performance of the economy in general and other factors
outside our control.

Interest rates are highly sensitive to many factors, including fiscal and monetary policies of major economies, inflation,

economic and political conditions and other factors outside our control. Changes in interest rates can negatively affect net
investment income in that, in a declining interest rate environment, investments in fixed maturities and short-term investments
(fixed maturity portfolio) would earn interest income at lower rates. In a declining interest rate environment, the market value of our
fixed income portfolio would increase; however, in a rising interest rate environment, the market value of our fixed income portfolio
will decline. Depending on our liquidity needs and investment strategy, we may liquidate investments prior to maturity at a loss in
order to cover liabilities as they become due or to invest in other investment opportunities that have better expected longer term
profitability.

Our fixed maturity portfolio is primarily invested in high quality, investment grade securities. However, we invest a portion of

the portfolio in securities that are below investment grade. We also invest a portion of our portfolio in other investments such as
fixed income type funds, notes receivable, loans receivable, private placement bond investments, derivatives and other specialty

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asset classes. These securities generally pay a higher rate of interest or return and may have a higher degree of credit or default risk.
These securities may also be less liquid in times of economic weakness or market disruptions.

We also invest a portion of our portfolio in preferred and common stocks or equity-like securities. The value of these assets
fluctuates with equity markets, which are increasingly volatile. In times of economic weakness, the market value and liquidity of
these assets may decline, and may impact net income and capital. We use the term equity-like investments to describe our
investments that have market risk characteristics similar to equities and are not investment grade fixed maturity securities. This
category includes high-yield and convertible fixed maturity investments and private placement equity investments. Fluctuations in
the fair value of our equity-like investments may reduce our income in any period or year and cause a reduction in our capital. There
can be no assurance that our equity-like investments will maintain their current levels.

In addition, we invest directly and indirectly in real estate assets, which are subject to overall market conditions. We have
investments in real estate in various locations (including the United Kingdom, New York, France and Brazil) through investments in
limited partnerships, trust deeds, as well as through directly-owned investments in real estate and an equity method investment in a
privately held real estate investment and development group, Almacantar Group Limited (Almacantar) in London. These real estate
assets are exposed to various risks, including the supply and demand of leasable commercial and residential space and fluctuations
in real estate prices globally. See also Item 4.D and Note 17 to the Consolidated Financial Statements in Item 18 below in this report
for further details.

Refer to Item 11 below in this report for quantitative and qualitative disclosures about market risk.

The impending replacement of LIBOR may adversely affect our net investment income.

Actions by regulators in the United Kingdom (U.K.) and elsewhere are expected to result in the replacement of the London
Interbank Offered Rate (LIBOR) with alternative rates. In July 2017, the U.K. Financial Conduct Authority (the “FCA”) announced
that it plans to phase out the use of LIBOR, which is expected to result in these widely used reference rates no longer being
available. The U.S. Federal Reserve has begun publishing a Secured Overnight Financing Rate which is intended to replace U.S.
dollar LIBOR. Plans for alternative reference rates for other currencies have also been announced. On November 30, 2020, ICE
Benchmark Administration, the administrator for LIBOR, with the support of the U.S. Federal Reserve and the FCA announced
plans to consult on ceasing publication of U.S. dollar LIBOR on December 31, 2021 for the one-week and two-month U.S. dollar
LIBOR tenors, and on June 30, 2023 for all other U.S. dollar LIBOR tenors. The U.S. Federal Reserve concurrently issued a
statement advising banks to stop new U.S. dollar LIBOR issuances by end of 2021. Such announcements indicate that continuation
of LIBOR on the current basis cannot and will not be guaranteed after 2021. It appears highly likely that LIBOR will be
discontinued or modified by 2021. The discontinuance or modification of LIBOR and the establishment of alternative reference
rates may have an adverse impact on the market for LIBOR-based securities, the value of our investment portfolio and our net
investment income.

Foreign currency fluctuations may reduce our net income and our capital levels.

Through our multinational reinsurance operations, we conduct business in a variety of foreign (non-U.S.) currencies, the
principal exposures being the Euro, British pound, Canadian dollar, Japanese yen and Swiss Franc. Accordingly, we are subject to
market risks associated with devaluations and fluctuations in currency exchange rates. Our assets and liabilities denominated in
foreign currencies are therefore exposed to changes in currency exchange rates, which may be material. Our reporting currency is
the U.S. dollar, and exchange rate fluctuations relative to the U.S. dollar may materially impact our financial results and condition.
We employ various strategies, including the use of foreign exchange forward contracts and other derivative financial instruments, to
manage our exposure to foreign currency exchange risk. To the extent that these exposures are not fully offset or hedged, or the
hedges are ineffective at mitigating adverse effects, our financial results and condition may be negatively impacted by fluctuations
in foreign currency exchange rates.

We may suffer losses due to defaults by various counterparties, including issuers of investment securities, reinsurance contracts
and derivatives.

Issuers or borrowers whose securities we hold, reinsurers, clearing agents, clearing houses, joint venture partners, derivative
instrument counterparties and other financial intermediaries may default on their obligations to us due to bankruptcy, insolvency,
lack of liquidity, adverse economic conditions, operational failure, fraud or other reasons. Even if we are entitled to collateral when
a counterparty defaults, such collateral may be illiquid or proceeds from such collateral when liquidated may not be sufficient to
recover the full amount of the obligation. All or any of these types of default could have a material adverse effect on our results of
operations, financial condition and liquidity.

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Our debt, credit and International Swap Dealers Association (ISDA) agreements may limit our financial and operational
flexibility, which may affect our ability to conduct our business.

We have incurred indebtedness, and may incur additional indebtedness in the future. At December 31, 2020, our total debt

liabilities related to senior notes and junior subordinated notes were approximately $2 billion.

Additionally, we have entered into letter of credit facilities and ISDA agreements (including but not limited to weather

derivatives) with various institutions.

The agreements relating to our debt, letter of credit facilities and ISDA agreements contain various covenants that may limit

our ability, among other things, to borrow money, make particular types of investments or other restricted payments, sell assets,
merge or consolidate. Some of these agreements also require us to maintain specified ratings. If we fail to comply with these
covenants, the lenders or counterparties under these agreements could declare a default and demand immediate repayment of all
amounts owed to them. See Liquidity and Capital Resources—Shareholders’ Equity and Capital Resources Management—Credit
Agreements in Item 5 of this report.

If we are in default under the terms of these agreements, we may also be restricted in our ability to declare or pay any

dividends, redeem, purchase or acquire any shares or make a liquidation payment.

If any one of the financial institutions that we use in our operations, including those that participate in our credit facilities, fails
or is otherwise unable to meet their commitments, we could incur substantial losses and reduced liquidity.

We maintain cash balances significantly in excess of the U.S. Federal Deposit Insurance Corporation insurance limits at

various depository institutions. We also have funding commitments from a number of banks and financial institutions that
participate in our credit facilities. See Liquidity and Capital Resources—Shareholders’ Equity and Capital Resources Management
—Credit Agreements in Item 5 and Note 16 to the Consolidated Financial Statements in Item 18 of this report for details. Access to
funds under these existing credit facilities is dependent on the ability of the banks that are parties to the facilities to meet their
funding requirements. Those banks may not be able to meet their funding requirements if they experience shortages of capital and
liquidity or if they experience excessive volumes of borrowing requests within a short period of time, and we might be forced to
replace credit sources in a difficult market. If we cannot obtain adequate financing or sources of credit on favorable terms, or at all,
our business, operating results and financial condition could be adversely impacted.

Strategic investments and merger and acquisition (M&A) activities could disrupt our ongoing business and present risks not
originally contemplated.

We have made, and in the future may make, strategic investments or acquisitions. Such endeavors involve significant risks and

uncertainties, including those related to distraction of management from current operations, greater than expected liabilities and
expenses, inadequate return of capital and unidentified issues not discovered in due diligence. In addition, the integration of any
acquired companies may place significant demands on our management, systems, internal controls and financial and physical
resources. These new ventures or M&A activities are inherently risky and may not achieve the expected benefits.

Operational risks, including human or systems failures, are inherent in our business.

Operational risks and losses can result from many sources including fraud, errors by employees, failure to document
transactions properly or to obtain proper internal authorization, failure to comply with regulatory requirements or information
technology failures.

Our modeling, underwriting and information technology and application systems are critical to our business and reputation.

Moreover, our technology and applications are an important part of our underwriting process and our ability to compete
successfully. We have also licensed certain systems and data from third parties. We cannot be certain that we will have access to
these, or comparable service providers, or that our technology or applications will continue to operate as intended. In addition, we
cannot be certain that we would be able to replace these service providers or consultants without slowing our underwriting response
time. A major defect or failure in our internal controls or information technology and application systems could result in
management distraction, harm to our reputation, a loss or delay of revenues or increased expense.

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Cybersecurity events could disrupt business operations, result in the loss of critical and confidential information, and adversely
impact our reputation and results of operations.

We are dependent upon the effective functioning and availability of our information technology and application systems
platforms. These platforms include, but are not limited to, our proprietary software programs such as catastrophe models as well as
those licensed from third-party vendors including financial, analytic and modeling systems. We rely on the security of such
platforms for the secure processing, storage and transmission of confidential information. Examples of cybersecurity incidents are
unauthorized access, computer viruses, deceptive communications (phishing), data loss, malware, ransomware or other malicious
code or cyber-attack, destructive attack, system failures and disruptions and other events that could have security consequences. A
cybersecurity incident could materially impact our ability to adequately price products and services, establish reserves, provide
efficient and secure services to our clients, brokers, vendors and regulators, value our investments and timely and accurately report
our financial results. Although we have implemented controls and have taken protective measures to reduce the risk of cybersecurity
incidents, we cannot reasonably anticipate or prevent all cybersecurity incidents. Cybersecurity incidents could expose us to a risk
of loss or misuse of our information, litigation, reputational damage, violations of applicable privacy and other laws, fines, penalties
or losses that are either not insured against or not fully covered by insurance maintained. We may be required to expend significant
additional resources to modify our protective measures or to investigate and remediate vulnerabilities.

We believe there are frequent attempts to breach our cybersecurity measures. For example, in recent years we have

encountered phishing attempts, such as where someone impersonating a senior executive sought payment. We cannot assure that our
systems and processes will be able to identify and prevent such attempts in the future.

The loss of key management and other qualified personnel could adversely affect us.

Our success has depended, and will continue to depend, partly upon our ability to attract and retain management and other

qualified personnel. If any of these key management or other employees ceased to continue in their present role, we could be
adversely affected.

Our ability to execute our business strategy is dependent on our ability to attract and retain a staff of qualified executive
officers, underwriters, actuaries and other key personnel. The skills, experience and knowledge of the reinsurance industry of our
management team constitute important competitive strengths. If some or all of these managers leave their positions, and even if we
were able to find persons with suitable skills to replace them, our operations could be adversely affected.

We may be adversely impacted by inflation.

Deficit spending by governments in our major markets and monetary stimulus provided by central banks exposes us to a

heightened risk of inflation. We monitor the risk that the principal markets in which we operate could experience increased
inflationary conditions, which would, among other things, cause policyholder loss costs to increase, and negatively impact the
performance of our investment portfolio. Inflation related to medical costs, construction costs and tort issues in particular impact the
property and casualty industry, and broader market inflation has the potential risk of increasing overall loss costs. The impact of
inflation on loss costs could be more pronounced for those lines of business that are considered to be long-tail in nature, as they
require a relatively long period of time to finalize and settle claims. Changes in the level of inflation also result in an increased level
of uncertainty in our estimation of loss reserves, particularly for long-tail lines of business. The onset, duration and severity of an
inflationary period cannot be estimated with precision.

Our profitability is affected by the cyclical nature of the reinsurance industry.

Risks Related to Our Industry

Historically, the reinsurance industry has experienced significant fluctuations in operating results due to competition, levels of

available capacity, trends in cash flows and losses, general economic conditions and other factors, particularly in the non-life lines
of business. Demand for reinsurance is influenced significantly by underwriting results of primary insurers, including catastrophe
losses, and prevailing general economic conditions. The supply of reinsurance is related directly to prevailing prices and levels of
capacity that, in turn, may fluctuate in response to changes in rates of return on investments being realized in the reinsurance
industry. In addition, the cycle of our industry may fluctuate as a result of changes in the economic, legal, political and social
landscape. Since cyclicality is due in large part to the collective actions of insurers, reinsurers and general economic conditions and
the occurrence of unpredictable events, we cannot predict the timing or duration of changes in the market cycle. If any of these
factors were to result in a decline in the demand for reinsurance or an overall increase in reinsurance capacity, our profitability could
be impacted. In the recent past, we experienced a prolonged period of a generally softening market cycle, with increased
competition, surplus underwriting capacity, deteriorating rates and less favorable terms and conditions, all having an impact on our
ability to write business. While the current reinsurance market has shifted toward a hard market phase and we expect this to persist,
it is possible that we may return to a soft market in the future.

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Although we are currently experiencing improving market conditions with increased or constant pricing in most non-life
classes, primarily in those markets that have been exposed to the catastrophe losses in 2019, as a result of the persisting competition
and excess capacity in the industry, it is not possible to forecast if improving pricing conditions will continue.

Competition, pricing pressure and any other negative factors noted above may adversely affect our profitability and results of

operations in future periods, and the impact may be material.

We operate in a highly competitive environment.

The reinsurance industry is highly competitive and we compete with a number of worldwide reinsurance companies,

including, Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft (Munich Re), Swiss Re Ltd. (Swiss Re), Hannover Rück
SE (Hannover Re), SCOR SE, Transatlantic Reinsurance Company Inc. (Transatlantic), General Reinsurance Corporation (GenRe),
Reinsurance Group of America, Incorporated (RGA), Everest Re Group, Ltd. (Everest Re) and RenaissanceRe Holdings Ltd.
(RenRe).

The lack of strong barriers to entry into the reinsurance business means that we may also compete with new companies that

may be formed to enter the reinsurance market. In addition, we may experience increased competition as a result of the
consolidation in the insurance and reinsurance industry. These consolidated entities may try to use their enhanced market power and
relationships to negotiate price reductions for our products and services and/or obtain a larger market share through increased line
sizes. Consolidated companies may also purchase less reinsurance product and services, due to increased levels of capital.

Competition in the types of reinsurance that we underwrite is based on many factors, including the perceived and relative
financial strength, pricing and other terms and conditions, services provided, ratings assigned by independent rating agencies, speed
of claims payment, geographic scope of business, client and broker relationships, reputation and experience in the lines of business
to be written. If competitive pressures reduce our prices, we may expect to write less business. In addition, competition for
customers would become more intense and we could incur additional expenses relating to customer acquisition and retention,
further reducing our operating margins.

Further, insurance-linked securities, derivatives and other non-traditional risk transfer mechanisms and alternative vehicles are

being developed and offered, which could impact the demand for traditional insurance or reinsurance. A number of new, proposed
or potential industry or legislative developments could further increase competition in our industry. New competition from these
developments could cause the demand for reinsurance and/or prices to fall or the costs related to client acquisition and retention to
increase, either of which could have a material adverse effect on our growth and profitability.

All of the above factors may adversely affect our profitability and results of operations in future periods, the impact of which

may be material, and may adversely affect our ability to successfully execute our strategy as a global diversified reinsurance
company.

Political, regulatory, governmental and industry initiatives could adversely affect our business.

Legal and Regulatory Risks

Our reinsurance operations are subject to extensive laws and regulations that are administered and enforced by a number of
different governmental and non-governmental self-regulatory authorities and associations in each of their respective jurisdictions
and internationally. Our businesses in each jurisdiction are subject to varying degrees of regulation and supervision. The laws and
regulations of the jurisdictions in which our reinsurance subsidiaries are domiciled require, among other things, maintenance of
minimum levels of statutory capital, surplus, and liquidity; various solvency standards; and periodic examinations of subsidiaries’
financial condition. In some jurisdictions, laws and regulations also restrict payments of dividends and reductions of capital.
Applicable statutes, regulations, and policies may also restrict the ability of these subsidiaries to write insurance and reinsurance
policies, to make certain investments, and to distribute funds.

Some of these authorities regularly consider enhanced or new regulatory requirements intended to prevent future crises or

otherwise assure the stability of institutions under their supervision. These authorities may also seek to exercise their supervisory
authority in new and more robust ways, and new regulators could become authorized to oversee parts of our business.

It is not possible to predict all future impacts of these types of changes but they could affect the way we conduct our business
and manage our capital, and may require us to satisfy increased capital requirements or to incur additional expenses, any of which,
in turn, could affect our results of operations, financial condition and liquidity. Our material subsidiaries’ regulatory environments
are described in detail in Business Overview—Regulation in Item 4.B of this report.

If our compliance with any particular regulatory regime is challenged, we may be subject to monetary or other penalties. In

addition, in order to ensure compliance with applicable regulatory requirements or as a result of any investigation, including
remediation efforts, we could be required to incur expenses and undertake additional work, which in turn may divert resources from

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our business. These, and other regulations relating to each of our material subsidiaries may in effect restrict each of those
subsidiaries’ ability to write new business, to make certain investments and to distribute funds or assets to us. For further
information see Business Overview—Regulation in Item 4.B of this report.

The possibility of future government intervention have created uncertainty in the insurance and reinsurance markets.
Government regulators are generally concerned with the protection of policyholders to the exclusion of other interested parties,
including shareholders and debt holders of reinsurers. We believe it is likely there will continue to be increased regulation of, and
other forms of government participation in, our industry in the future, which could materially adversely affect our business by,
among other things:

• Providing reinsurance capacity in markets and to clients that we target or requiring our participation in industry pools and

guaranty associations;

• Further restricting our operational or capital flexibility;

• Expanding the scope of coverage under existing policies;

• Regulating the terms of reinsurance policies;

• Adopting further or changing compliance requirements which may result in additional costs which may adversely impact

our results of operation; or

• Disproportionately benefiting the companies domiciled in one country over those domiciled in another.

Legislative and regulatory activity in healthcare may affect our profitability as a provider of accident and health reinsurance
products.

We derive revenues, in part, from the provision of accident and health reinsurance in the U.S. to institutions that participate in

the U.S. healthcare delivery infrastructure. The Patient Protection and Affordable Care Act of 2010 (the Healthcare Act) made
significant changes to the regulation of health insurance and may negatively affect our U.S. health reinsurance business including,
but not limited to, the healthcare delivery system and the healthcare cost reimbursement structure in the U.S. In addition, we may be
subject to regulations, guidance or determinations emanating from the various regulatory authorities authorized under the Healthcare
Act. It is difficult to predict the effect that the Healthcare Act, any regulatory pronouncement made thereunder or changes to the
Healthcare Act will have on our results of operations or financial condition. In addition, it is not possible to predict whether new
legislation, rules or regulatory changes (such as the proposed "Medicare for all" plans) will be adopted or enacted in the future or
what impact, if any, such legislation, rules or changes could have on our business, financial condition or results of operations.

Legal and enforcement activities relating to the insurance industry could affect our business and our industry.

The insurance industry has experienced substantial volatility as a result of litigation, investigations and regulatory activity by

various insurance, governmental and enforcement authorities concerning certain practices within the insurance industry.

These investigations have resulted in changes in the insurance and reinsurance markets and industry business practices. While

at this time, none of these changes have caused an adverse effect on our business, we are unable to predict the potential effects, if
any, that future investigations may have upon our industry. As noted above, because we frequently assume the credit risk of the
counterparties with whom we do business throughout our insurance and reinsurance operations, our results of operations could be
adversely affected if the credit quality of these counterparties is severely impacted by investigations in the reinsurance or insurance
industry or by changes to industry practices.

Emerging claim and coverage issues could adversely affect our business.

Unanticipated developments in the law, as well as changes in social and environmental conditions could potentially result in
unexpected claims for coverage under our reinsurance and other contracts. These developments and changes may adversely affect
our business by either extending coverage beyond our underwriting intent or by increasing the number or size of claims. With
respect to our casualty businesses, these legal, social and environmental changes may not become apparent until sometime after their
occurrence. Our exposure to these uncertainties could be exacerbated by an increase in insurance and reinsurance contract disputes,
arbitration and litigation.

The full effects of these and other unforeseen emerging claim and coverage issues are extremely hard to predict. In some

instances, these coverage changes may not become apparent until after we have issued reinsurance contracts that are affected by
such changes. As a result, the full extent of our liability under such reinsurance contracts and, in particular, our casualty reinsurance
contracts, may not be known for many years after a contract is issued.

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The reinsurance industry is also affected by political, judicial and legal developments that may create new and expanded
theories of liability, which may result in unexpected claim frequency and severity and delays or cancellations of products and
services we provide, which could adversely affect our business.

The U.K. leaving the EU ("Brexit") could adversely affect our business.

In accordance with the withdrawal agreement implementing Brexit, the U.K. formally left the European Union (EU) on

January 31, 2020. The transitional period provided for under the withdrawal agreement ended on December 31, 2020. While the
U.K. and EU reached a trade deal on certain key matters, it did not address the provision of financial services between the U.K. and
EU. Consequently, PartnerRe's Irish operating subsidiaries entered the U.K. Temporary Permission Regime which secures their
right to continue to trade within the U.K. and access the U.K. (re)insurance market until the end of 2023.

Given the limited scope of the agreed U.K./EU trade deal, there remains risks associated with the potential uncertainty and
consequences relating to Brexit, including with respect to volatility in financial markets, exchange rates and interest rates. These
uncertainties could increase the volatility of, or reduce, our investment results in particular periods or over time. Brexit could
adversely affect European or worldwide political, regulatory, economic or market conditions and could contribute to instability in
global political institutions and regulatory agencies. Brexit could also lead to legal uncertainty and differing laws and regulations
between the U.K. and the EU. In addition, these uncertainties relating to Brexit could affect the operations, strategic position or
results of insurers or reinsurers on whom we ultimately rely to access underlying insured coverages. Any of these potential effects of
Brexit, and others we cannot anticipate, could adversely affect our results of operations or financial condition.

Our business is subject to applicable laws and regulations relating to sanctions, anti-bribery and anti-money laundering, the
violation of which could adversely affect our operations.

Our activities are subject to applicable economic and trade sanctions, anti-bribery and anti-money laundering laws and
regulations in the jurisdictions where we operate including the U.S. and the EU, among others. Compliance with these regulations
may impose significant costs, limit or restrict our ability to do business or engage in certain activities, or subject us to the possibility
of civil or criminal actions or proceedings. Although we have policies and controls in place designed to comply with applicable laws
and regulations, there can be no assurance that we, or an employee or agent acting on our behalf, would fully comply with
applicable laws and regulations as interpreted by the relevant authorities. The divergence of regulatory requirements between the
U.S. and the EU regarding business with Iran has increased these risks. Failure to accurately interpret, comply with or obtain
appropriate authorizations and/or exemptions under such laws or regulations could expose us to investigations, civil penalties,
criminal penalties and other sanctions, including fines, injunctions, loss of licenses or other punitive actions. In addition, such
violations could damage our business and/or our reputation. Such criminal or civil sanctions, penalties, other sanctions, or damage
to our business and/or reputation could have a material adverse effect on our financial condition and results of operations.

Our business is subject to applicable laws and regulations relating to data privacy and protection and cybersecurity, the changes
or the violation of which could affect our operations.

Regulatory authorities around the world have implemented or are considering a number of legislative changes or regulations

concerning data protection and cybersecurity which have required or may require us to incur additional expenses. We are subject to
numerous U.S. federal and state laws and non-U.S. regulations governing the protection of personal and confidential information of
our clients or employees, including in relation to medical records and financial information. Existing cybersecurity regulations vary
by region or country in which PartnerRe operates and cover different aspects of business operations.

Our business is subject to General Data Protection Regulation (GDPR) which regulates data protection for all individuals
within the EU, including foreign companies processing data of EU residents; it enhances individuals’ rights, introduces complex and
far-reaching company obligations and increases penalties significantly in case of violation. The GDPR sets out a number of
requirements that must be complied with when handling personal data including: the obligation to appoint data protection officers in
certain circumstances and the principal of accountability and the obligation to make public notification of significant data breaches.
The interpretation and application of data protection laws in the U.S., Europe and elsewhere are developing and are often uncertain
and in flux. It is possible that these laws or cybersecurity regulations may be interpreted and applied in a manner that is inconsistent
with our data protection or security practices. If so, in addition to the possibility of fines, this will result in an order requiring that we
change our data practices, which could have an adverse effect on our business and results of operations. Complying with these
various laws will cause us to incur additional costs and could require us to change our business practices.

As a group operating worldwide, we strive to comply with all applicable data protection laws and regulations. It is however

possible that we fail to comply with all applicable laws and regulations. The failure or perceived failure to comply may result in
inquiries and other proceedings or actions against us by government entities or others, including monetary fees, or could cause us to
lose clients which could potentially have an adverse effect on our business and results of operations.

See also Business Overview—Regulation in Item 4.B for further details on cybersecurity requirements.

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Changes in current accounting practices and future pronouncements may materially impact our reported financial results.

Developments in accounting practices may require considerable additional time and cost to comply, particularly if we are

required to prepare information relating to prior periods for comparative purposes or to apply the new requirements retroactively.
The impact of changes in current accounting practices and future pronouncements may be significant. The impact may affect the
results of our operations, including among other things, the calculation of net income, and may affect our financial position,
including among other things, the calculation of unpaid losses and loss expenses, policy benefits for life and annuity contracts and
total shareholders’ equity. The changes to accounting standards could affect the way we manage and report significant areas of our
business and could impose demands on us in the areas of governance, employee training, internal controls and disclosures.

Our Consolidated Financial Statements are prepared in accordance with U.S. GAAP, and accordingly, we are required to adopt

new or revised accounting standards issued by the Financial Accounting Standards Board (FASB). The FASB has issued
Accounting Standards Update (ASU) 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts, which will
result in changes to how we account for and report our long-duration insurance contracts. The Company is currently evaluating the
impact of this guidance on its Consolidated Financial Statements and disclosures required to be adopted for the year ended
December 31, 2023.

In addition, the Company will be required to adopt new or revised accounting standards issued by other recognized
authoritative bodies for purposes of reporting to our controlling shareholder or for the preparation of the Company's subsidiaries'
statutory financial statements.

See Note 2(s) to the Consolidated Financial Statements in Item 18 in this report for details of recent accounting

pronouncements.

Risks Related to Our Preferred Shares

PartnerRe Ltd. is a holding company, and if our subsidiaries do not pay dividends or make other distributions to us, we may not
be able to pay dividends on our preferred shares or settle principal payments as they become due.

PartnerRe Ltd. is a holding company with no operations to generate income to provide liquidity other than the cash received

for issuance of common shares and preferred shares. We have cash outflows in the form of other expenses and dividends to both
common and preferred shareholders. We rely primarily on cash dividends and payments from our subsidiaries to meet our cash
outflows. We expect future dividends and other permitted payments from our subsidiaries to be the principal source of funds to pay
expenses and dividends. The ability of our subsidiaries to pay dividends or to advance or repay funds to us is subject to general
economic, financial, competitive, regulatory and other factors beyond our control. In particular, the payment of dividends by our
reinsurance subsidiaries is limited under Bermuda, Irish and Singapore laws and certain statutes of U.S. states in which our U.S.
subsidiaries are domiciled, which statutes include minimum solvency and liquidity thresholds (see Note 11 to the Consolidated
Financial Statements in Item 18 of this report for a description of various regulatory and statutory restrictions on dividend payments
applicable to our reinsurance subsidiaries). Because PartnerRe Ltd. is a holding company, our right, and hence the right of our
creditors and shareholders, to participate in any distribution of assets by any of our subsidiaries, upon our liquidation or
reorganization or otherwise, is subject to the prior claims of policyholders and creditors of these subsidiaries.

Our controlling shareholder owns a significant majority of our common shares, and its interest may differ from the interests of
our preferred shareholders.

EXOR Nederland N.V. owns approximately 99.7% of the outstanding common shares of the Company. As a result, EXOR

Nederland N.V. has power to elect our directors and to determine the outcome of any action requiring shareholder approval.
EXOR’s interests may differ from the interests of the holders of our preferred shares and, given EXOR Nederland N.V.’s majority
controlling interest in the Company, circumstances may arise under which EXOR Nederland N.V. may exercise its control in a
manner that is not favorable to the interests of the holders of the preferred shares.

Preferred shareholders may encounter difficulties in service of process and enforcement of judgments against us in the United
States.

We are a Bermuda company and some of our directors and officers are residents of various jurisdictions outside the U.S. All,
or a substantial portion, of the assets of our officers and directors and of our assets are or may be located in jurisdictions outside the
U.S. Although we have appointed an agent and irrevocably agreed that the agent may be served with process in New York with
respect to actions against us arising out of violations of the U.S. Federal securities laws in any Federal or state court in the U.S., it
could be difficult for investors to effect service of process within the U.S. on our directors and officers who reside outside the U.S. It
could also be difficult for investors to enforce against us or our directors and officers judgments of a U.S. court predicated upon
civil liability provisions of U.S. Federal securities laws.

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There is no treaty in force between the U.S. and Bermuda providing for the reciprocal recognition and enforcement of

judgments in civil and commercial matters. As a result, whether a U.S. judgment would be enforceable in Bermuda against us or our
directors and officers depends on whether the U.S. court that entered the judgment is recognized by the Bermuda court as having
jurisdiction over us or our directors and officers, as determined by reference to Bermuda conflict of law rules. A judgment debt from
a U.S. court that is final and for a sum certain based on U.S. Federal securities laws will not be enforceable in Bermuda unless the
judgment debtor had submitted to the jurisdiction of the U.S. court, and the issue of submission and jurisdiction is a matter of
Bermuda law and not U.S. law.

In addition to and irrespective of jurisdictional issues, Bermuda courts will not enforce a U.S. Federal securities law that is

either penal or contrary to public policy. An action brought pursuant to a public or penal law, the purpose of which is the
enforcement of a sanction, power or right at the instance of the state in its sovereign capacity will not be entered by a Bermuda
court. Certain remedies available under the laws of U.S. jurisdictions, including certain remedies under U.S. Federal securities laws,
would not be available under Bermuda law or enforceable in Bermuda court, as they would be contrary to Bermuda public policy.
Further, no claim can be brought in Bermuda against us or our directors and officers in the first instance for violation of U.S.
Federal securities laws because these laws have no extra jurisdictional effect under Bermuda law and do not have force of law in
Bermuda. A Bermuda court may, however, impose civil liability on us or our directors and officers if the facts alleged in a
complaint constitute or give rise to a cause of action under Bermuda law.

Changes in our effective income tax rate could affect our results of operations.

Taxation Risks

Our effective income tax rate could be adversely affected in the future by net income being lower than anticipated in

jurisdictions where we have a relatively lower statutory tax rate and net income being higher than anticipated in jurisdictions where
we have a relatively higher statutory tax rate, or by changes in corporate tax rates and tax regulations in any of the jurisdictions in
which we operate. We are subject to regular audit by tax authorities in the various jurisdictions in which we operate. Any adverse
outcome of such an audit could have an adverse effect on our net income, effective income tax rate and financial condition.

In addition, the determination of our provisions for income taxes requires significant judgment, and the ultimate tax

determination related to some tax positions taken is uncertain. Although we believe our provisions are reasonable, the ultimate tax
outcome may differ from the amounts recorded in our consolidated financial statements and may materially affect our net income
and effective income tax rate in the period such determination is made.

If our non-U.S. operations become subject to U.S. income taxation, our net income will decrease.

We believe that we and our non-U.S. subsidiaries, other than certain business sourced by Partner Reinsurance Europe SE
(PartnerRe Europe) and PartnerRe Ireland Insurance dac (PartnerRe Ireland) through the U.S., and a foreign reinsurance entity that
has elected under I.R.C Section 953(d) to be treated as a domestic corporation (953(d) electing reinsurer), have operated, and will
continue to operate, our respective businesses in a manner that will not cause us to be viewed as engaged in a trade or business in
the U.S. and, on this basis, we do not expect that either we or our non-U.S. subsidiaries (other than PartnerRe Europe, PartnerRe
Ireland, and the 953(d) electing reinsurer) will be required to pay U.S. corporate income taxes (other than potential withholding
taxes on certain types of U.S. source passive income) or branch profits taxes. Because there is considerable uncertainty as to the
activities that constitute being engaged in a trade or business within the U.S., the IRS may contend that either we or our non-U.S.
subsidiaries are engaged in a trade or business in the U.S. In addition, legislation regarding the scope of non-U.S. entities and
operations subject to U.S. income tax has been proposed in the past, and may be proposed again in the future. If either we or our
non-U.S. subsidiaries are subject to U.S. income tax, our net income and shareholders’ equity will be reduced by the amount of such
taxes, which could be material.

The Organization for Economic Co-operation and Development’s (OECD) initiative to limit harmful tax competition may result
in higher taxation and increased complexity, burden and cost of compliance.

The OECD has published reports and launched a global initiative among member and non-member countries on measures to

limit harmful tax competition, known as the Base Erosion and Profit Shifting (BEPS) project. On June 21, 2016, the EU’s ministers
of Finance and Economic Affairs unanimously approved the Anti-Tax Avoidance Directive to harmonize potential BEPS changes in
the EU. These measures are largely directed at counteracting the effects of tax havens and preferential tax regimes in countries
around the world. We expect that countries may change their tax laws in response to this project, and several countries have already
changed or proposed changes to their tax laws. Changes to tax laws and additional reporting requirements could increase the
complexity, burden and cost of doing business with our Bermuda companies and/or subject our Bermuda companies to increased tax
and compliance burdens.

On May 31, 2019, the OECD published a “Programme of Work” designed to address the tax challenges created by an

increasing digitalized economy. The Programme was divided into two pillars. Pillar One addresses the broader challenge of a

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digitalized economy and focuses on the allocation of group profits among taxing jurisdictions based on a market based concept
rather than historical “permanent establishment” concepts. Pillar Two addresses the remaining BEPS risk of profit shifting to
entities in low tax jurisdictions by introducing a global minimum tax and a tax on potentially base eroding payments.

The OECD published detailed blueprints of its proposals on October 14, 2020 and public consultations have already been held

virtually in January 2021. A meeting of the Inclusive Framework was held on January 27-28, 2021. The OECD’s stated aim is to
bring the process to a successful conclusion by mid-2021. However, at this stage, it is not known what the outcome will be from the
consultations or when any legislative changes resulting from the OECD’s recommendations would be implemented. To date, the
proposal has been written broadly enough to potentially apply to our activities, and the impact to the Company cannot be determined
at this time.

Our tax position could be adversely impacted by changes in tax laws, tax treaties or tax regulations or the interpretation or
enforcement thereof.

We could be adversely impacted by changes in tax laws, tax treaties or tax regulations or the interpretation or enforcement

thereof by taxation authorities. Changes could have a material and adverse change in our worldwide effective tax rate and we may
have to take further action to seek to mitigate the effect of such changes. Any future amendments to existing income tax treaties
between the jurisdictions in which we operate, could subject us to increased taxation and/or potentially significant expense.

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ITEM 4. INFORMATION ON THE COMPANY

A. History and Development of the Company

PartnerRe Ltd., an exempt company incorporated under the laws of Bermuda in 1993 with limited liability, is the holding
company for our international reinsurance group (PartnerRe group). The principal office is located at 90 Pitts Bay Road, Pembroke,
Bermuda (telephone number: +1 441-292-0888). The Company predominantly provides reinsurance on a worldwide basis through
its principal wholly-owned subsidiaries, including Partner Reinsurance Company Ltd. (PartnerRe Bermuda), Partner Reinsurance
Europe SE (PartnerRe Europe), Partner Reinsurance Company of the U.S. (PartnerRe U.S.) and Partner Reinsurance Asia Pte. Ltd.
(PartnerRe Asia). The Company’s principal office in the U.S. is located at 200 First Stamford Place, Stamford, Connecticut
(telephone number: +1 203-485-4200).

The Company maintains an internet site at www.partnerre.com that contains the Company's Annual Reports on Form 20-F

filed with the U.S. Securities and Exchange Commission (SEC) and Current Reports on Form 6-K furnished with the SEC. These
Reports are also available on the internet site maintained by the SEC at www.sec.gov.

The Company completed the acquisition of Societe Anonyme Francaise de Reassurances (SAFR, subsequently renamed
PartnerRe SA) in 1997, the acquisition of Winterthur Re in 1998, the acquisition of PARIS RE Holdings Limited (Paris Re) in 2009,
the acquisition of Presidio Reinsurance Group, Inc. (Presidio) in 2012, and the acquisition of Aurigen Capital Limited (Aurigen) in
2017.

On March 18, 2016, the Company's publicly held common shares were acquired by Exor N.V. (subsequently renamed to

EXOR Nederland N.V), whose ultimate parent is EXOR N.V., one of Europe’s leading investment companies controlled by the
Agnelli family, which is listed on the Milan Stock Exchange. As a result of the acquisition, PartnerRe's publicly issued common
shares were cancelled and are no longer traded on the New York Stock Exchange (NYSE). The Company’s preferred shares
continue to be traded on the NYSE.

At December 31, 2020 and 2019, the Company's shares owned by EXOR Nederland N.V. (Class A shares) are included in
Shareholders' Equity in the Consolidated Balance Sheets. The Company has also issued Class B shares to certain executives and
directors of the Company which are included in Accounts payable, accrued expenses and other in the Consolidated Balance Sheets
(see Share Ownership section in Item 6.E and Notes 10 and 13 to the Consolidated Financial Statements in Item 18 of this report for
further details).

On March 3, 2020, our ultimate parent company, EXOR N.V., announced that it had entered into a Memorandum of
Understanding (MoU) under which Covéa Cooperations S.A. (Covéa) would, following the successful completion of a required
consultation with workers councils, enter into a definitive agreement to acquire PartnerRe's common shares for a total cash
consideration of $9.0 billion plus a cash dividend of $50 million to be paid before closing. On May 12, 2020, EXOR acknowledged
Covéa’s notice that Covéa would not honor its commitment to acquire PartnerRe in accordance with the terms of the MoU.

B. Business Overview

The Company provides reinsurance for its clients globally. The Company’s principal offices are located in Pembroke

(Bermuda), Dublin, Stamford (Connecticut, U.S.), Toronto, Paris, Singapore and Zurich.

The Company provides reinsurance of risks to ceding companies (cedants or reinsureds). Risks reinsured include, but are not

limited to, agriculture, aviation/space, casualty, catastrophe, energy, engineering, financial risks, marine, motor, multiline, U.S.
health and property as well as mortality, morbidity, longevity, accident and health and alternative risk products. The Company’s
alternative risk products include weather and credit protection to financial, industrial and service companies on a worldwide basis.

Reinsurance is offered on either a proportional or non-proportional basis through treaties or facultative reinsurance:

•

In a proportional (or quota share) treaty reinsurance agreement, the reinsurer assumes a proportional share of the original
premiums and losses incurred by the cedant. The reinsurer pays the ceding company a commission, which is generally
based on the ceding company’s cost of acquiring the business being reinsured (including commissions, premium taxes,
assessments and miscellaneous administrative expenses) and may also include a profit.

In a non-proportional (or excess of loss) treaty reinsurance agreement, the reinsurer indemnifies the reinsured against all or
a specified portion of losses on underlying insurance policies in excess of a specified amount, which is called a retention or
attachment point. Non-proportional business is written in layers and a reinsurer or group of reinsurers accepts a band of
coverage up to a specified amount. The total coverage purchased by the cedant is referred to as a program and is typically
placed with predetermined reinsurers in pre-negotiated layers. Any liability exceeding the upper limit of the program
reverts to the ceding company.

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•

In a facultative (proportional or non-proportional) reinsurance agreement the reinsurer assumes individual risks. The
reinsurer separately rates and underwrites each risk rather than assuming all or a portion of a class of risks, as in the case of
treaty reinsurance.

The majority of the Company’s gross premiums written were written on a proportional basis for each of the years ended

December 31, 2020, 2019 and 2018.

The Company monitors the performance of its operations in three worldwide business units comprised of Property & Casualty

(P&C), Specialty, and Life and Health, which represent its segments. The P&C segment is comprised of property and casualty
business underwritten, including property catastrophe, facultative risks and U.S. health. The Specialty segment is comprised of
specialty business, including treaty and facultative contracts. The combined business included in the P&C and Specialty segments is
collectively referred to in this report as Non-life business. The Company’s Life and Health segment includes mortality, morbidity,
and longevity business.

See Results by Segment in Item 5 of this report and Note 18 to the Consolidated Financial Statements in Item 18 of this report

for further details on Segments.

Premium Distribution

The Company’s businesses are geographically diversified with premiums written on a worldwide basis. The Company’s gross
premiums written by segment for the years ended December 31, 2020, 2019 and 2018 were as follows (in millions of U.S. dollars):

Non-life business:
P&C segment
Specialty segment
Total Non-life business

Life and Health segment

2020

2019

2018

3,442
1,935
5,377
1,499
6,876

50 % $
28
78 % $
22
100 % $

3,579
2,213
5,792
1,493
7,285

49 % $
31
80 % $
20
100 % $

3,015
2,050
5,065
1,235
6,300

48 %
32
80 %
20
100 %

See Operating Results—Results by Segment in Item 5 and Note 18 to the Consolidated Financial Statements in Item 18 of this

report for results by segment.

Distribution Channels

The Company generates business through brokers and through direct relationships with insurance companies. For the years

ended December 31, 2020, 2019 and 2018, the Company had two brokers that individually accounted for 10% or more of the
Company’s total gross premiums written. These two brokers individually accounted for 30% and 21%, respectively, of the
Company's total gross premiums written for 2020, 28% and 22%, respectively, for 2019, and 22% and 22%, respectively, for 2018
(see Note 18 to the Consolidated Financial Statements in Item 18 of this report for further details). No one cedant accounted for
more than 5% of the Company's total gross premiums written for each of the years ended December 31, 2020, 2019 and 2018.

The gross premiums written in each of the Company's segments for the years ended December 31, 2020, 2019 and 2018, and

the year-over-year comparisons, are described in Operating Results—Results by Segment in Item 5 of this report.

See Note 18 to the Consolidated Financial Statements in Item 18 of this report for the geographic distribution of the

Company’s total gross premiums written for the years ended December 31, 2020, 2019 and 2018.

Competition

The Company competes with other reinsurers, some of which have greater financial, marketing and management resources
than the Company, and also competes with new market entrants, and, specifically in the catastrophe line of business, with alternative
capital sources and insurance-linked securities. Competition in the types of reinsurance that the Company underwrites is based on
many factors, including the perceived and relative financial strength, pricing and other terms and conditions, services provided,
ratings assigned by independent rating agencies, speed of claims payment, and reputation and experience in the lines of business to
be written.

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The Company ranks among the world’s largest professional reinsurers, and management believes the Company is well
positioned in terms of client services and highly technical underwriting expertise. Management also believes that the Company’s
global franchise and diversified platform allows the Company to provide broad risk solutions across many lines of business and
geographies, and is increasingly attractive to cedants who are choosing to utilize fewer reinsurers by consolidating their reinsurance
panels and focusing on those reinsurers who can cover more than one line of business. Furthermore, the Company’s capitalization
and strong financial ratios allow the Company to demonstrate a solid balance sheet to its clients.

Management believes that the Company’s major competitors for the Company's Non-life business are the larger European,
U.S. and Bermuda-based international reinsurance companies, as well as specialty reinsurers and regional companies in certain local
markets. These competitors include Munich Re, Swiss Re, Hannover Re, SCOR SE, Transatlantic, GenRe, Everest Re and RenRe.

For the Company’s Life business, the competition differs by location but generally includes multi-national reinsurers and local
reinsurers or state-owned insurers in the U.K., Ireland and Continental Europe for its mortality and longevity lines of business. The
competition specifically related to the Health business generally includes departments of worldwide reinsurance companies. These
competitors include Munich Re, RGA, Swiss Re, Hannover Re, SCOR SE and GenRe.

Risk Management

In the reinsurance industry, the core of the business model is the assumption and management of risk. A key challenge is to

create shareholder value through the efficient management of reinsurance and investment risks while limiting and mitigating those
risks that can destroy the value or threaten the ability of the Company to achieve its objectives. The Company defines a capital-
based risk appetite and identifies risks that meet its return targets within that framework. Management believes that this construct
allows the Company to fulfill its obligation to pay policyholders’ claims, while ensuring appropriate margins to deliver an adequate
risk adjusted return to shareholders.

Successful risk management is the foundation of the Company’s value proposition. The Company’s ability to succeed in risk

assumption and business management is dependent on its ability to accurately identify, analyze and quantify risks as well as to
understand how risks aggregate and to establish the appropriate capital requirements and limits for the risks assumed. All risks are
managed by the Company within an integrated framework of policies and processes to ensure the consistent evaluation of risk
holistically.

The Company’s ability to meet its risk adjusted return objectives over the long term are primarily determined by how well the

Company understands, prices and manages assumed risk. Management also believes that every organization faces numerous risks
that could threaten the successful achievement of its goals and objectives. These include strategic, reinsurance, financial market and
credit, emerging, reputational and operational risks that are common to all industries, such as choice of strategy and markets,
economic and business cycles, competition, changes in regulation, data quality and security, fraud, business disruption and
management continuity. See also Risk Factors above.

The Enterprise Risk Management (ERM) Framework sets forth a cycle that fosters continuous review of the Company’s risk
profile with tools and processes to effectively manage the Company’s risks. The ERM cycle consists of the following components:

Risk Governance and Risk Culture is achieved through establishing clear responsibilities of risk ownership and values for

managing risks across the organization.

Risk Identification and Performance: Risk Universe is the ability to identify, assess and prioritize risks that could have a

significant impact on the Company.

Risk Strategy: Risk Appetite and Risk Tolerance Framework defines an appropriate risk appetite and risk tolerance to achieve

the Company’s business objectives.

Risk Reporting provides management with key risk information such as top risk exposures, changes in risk profile and

sensitivities to risk exposures in order to monitor compliance with its risk appetite.

Risk Governance

The Company has a governance structure for risk management that promotes a risk culture of risk ownership throughout levels

of the organization. The objective of the approach is to increase transparency over the roles and responsibilities that supports clear
risk ownership.

The Company utilizes a multi-level risk management structure where the Executive Leadership Team (ELT) and Board are

responsible for the establishment of the critical exposure limits, capital-at-risk and key policies through the Enterprise Risk
Committee (ERC), a sub-committee of the ELT, and Underwriting Risk Committee (URC), a committee of the Board.

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The ERC is responsible for setting the Company’s risk appetite and return expectations. The ERC is comprised of ELT
members such as the Chief Executive Officer, Chief Financial Officer, Chief Risk and Actuarial Officer, Chief Underwriting
Officer, Chief Operations Officer, Chief Corporate and People Operations Officer, Chief Investment Officer and senior management
members such as the Head of Capital & Risk and the Chief Legal Counsel. The Chief Audit Officer and Chief Financial and
Operations Officer Life & Health attend the committee as observers. The ERC provides oversight through the quarterly monitoring
of the Company’s Risk Tolerance, periodic review of internal capital modelling techniques including stress and scenario testing,
capital allocation as well as internal audit plans and results.

The URC is comprised of members of the Board. The role of the URC in the governance of Risk Management includes
reviewing the ERM framework effectiveness and to discuss appropriate practices for the Company, including the Company's
policies, guidelines and processes relating to the underwriting of reinsurance risks and assumptions of investment risks undertaken
by the Company. Each of the Company’s risk policies relates to a specific risk and describes the Company’s approach to risk
management, defines roles and responsibilities relating to the assumption, mitigation, and control processes for that risk, and an
escalation process for exceptions. Risk management policies and processes are coordinated by the Capital & Risk department and
compliance is verified by Internal Audit on a periodic basis. The audit results are monitored by the Audit Committee of the Board.
Additionally, the URC also reviews the capital requirements and advises the Board on capital modelling matters.

The Business Units (BUs) and support functions are responsible for the execution of business activities and related risk
mitigation strategies. These activities are represented in risk control practices embedded in the BUs which support the risk policies.
Reporting on the Company’s capital and top risk exposures is integrated within the Company’s quarterly monitoring of risk
tolerance limits, annual planning and risk assessment process as well as regulatory solvency assessments which are reported to the
ELT and Board. The BUs are responsible for these activities and Internal Audit periodically evaluates the effectiveness of the risk
control procedures.

Risk Culture

The Company’s risk culture drives the Company’s attitude toward managing risks through a set of values and behaviors. The

Company’s risk culture is shaped through the risk governance structure, risk management practices and risk models. The risk
oversight committees such as the ERC and URC, in addition to the dedicated local Chief Risk Officers as part of the Legal Entity
Management Teams at the Tier 1 legal entities, sets the Company’s tone in terms of the importance and relevance of appropriately
monitoring and managing risks. Risk Management practices such as limit frameworks and risk guidelines provide tools to ensure the
Company’s risk-taking values are aligned with the Company’s risk appetite. Finally, risk models support the measurement of risks
under stressed scenarios which promotes responsible behaviors and informed risk-taking.

Risk Identification and Performance: Risk Universe

The Company performs a risk identification and assessment process that is used to identify and assess the Company’s key

risks. The assessment of the material risks is achieved through the performance of risk stresses and scenarios in line with the
Company’s Stress Testing Framework.

The Company structures its risks within a Risk Universe which is comprised of the following risk categories: Strategic,

Underwriting, Market and Credit, Financial, Capital Management and Operational.

Strategic Risk

Strategic risk is the risk of inadequate decision-making, poor execution of the Company’s strategic objectives and the risk of a

misalignment between the Company’s existing strategy and the external environment that could threaten the competitive position
and the ability to ensure ongoing profitability and viability.

Strategic risks are discussed and agreed to between the CEO and the Board, and managed by the CEO including the direction

and governance of the Company. Managing strategic risk includes the Company's response to risks to the business strategy and
Company's reputation as well as key external factors faced by the reinsurance industry including emerging risks.

Management considers that strong governance procedures, including a robust system of processes and internal controls, are

appropriate to manage risks related to its reputation and risks related to new initiatives, including acquisitions, new products or
markets. The Company seeks to preserve its reputation through high professional and ethical standards and manages the impact of
identified risks through the adoption and implementation of a sound and comprehensive assumed risk framework.

Emerging risks are new risks or previously known risks that are evolving in unexpected ways with unanticipated

consequences. They are monitored and managed by the ERC, which is tasked to evaluate and prioritize these risks based on the
likelihood of occurrence and the potential impact on the Company.

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Underwriting Risk

The Company’s underwriting is conducted at the BU level through specialized underwriting teams with the support of

technical staff in disciplines such as actuarial, claims, legal, risk management and finance.

The Company’s underwriters develop close working relationships with their ceding company counterparts and brokers through

regular visits, gathering detailed information about the cedant’s business and local market conditions and practices. As part of the
underwriting process, the underwriters also focus on the reputation and quality of the proposed cedant, the likelihood of establishing
a long-term relationship with the cedant, the geographic area in which the cedant does business and the cedant’s market share,
historical loss data for the cedant and, where available, historical loss data for the industry as a whole in the relevant regions, in
order to compare the cedant’s historical loss experience to industry averages, and to gauge the perceived insurance and reinsurance
expertise and financial strength of the cedant. The Company trains its underwriters and strives to maintain continuity of underwriters
within specific geographic markets and areas of specialty.

The Company generally underwrites risks with specified limits per treaty program or facultative contract. Like other
reinsurance companies, the Company is exposed to multiple insured losses arising out of a single occurrence, whether a natural
event such as hurricane, windstorm, tornado, typhoon, flood or earthquake, or man-made events. Any such catastrophic event could
generate insured losses in one or many of the Company’s reinsurance treaties and facultative contracts and in one or more lines of
business. The Company considers such event scenarios as part of its evaluation and monitoring of its aggregate exposures to
catastrophic events.

Market and Credit Risk

Financial market risk is defined as the risk of a significant financial loss resulting from changes in financial markets such as

changes in equity prices, interest rates, credit spreads, delinquency and default rates, foreign exchange rates or real estate prices.
Financial market risk typically originates from investment activities, underwriting activities for certain product segments, and from
the sensitivity of the economic value of liabilities to interest rate movements. Credit risk is defined as the risk of a significant
financial loss due to default or downgrade of a counterparty. The Company is exposed to financial market and credit risk primarily
through investment activities, structured transactions, business clients and brokers, retrocession as well as financial risks including
GMDB, mortgage and credit and surety reinsurance lines of business.

Financial market and credit risk management follows both top-down and bottom-up approaches. The top-down approach
begins with the Group Risk Tolerance Framework. The framework dictates an overarching Group Board risk limit with sub-limits
for important quantifiable risk pillars including investment risks and other financial risks. Additionally, it limits downside economic
risk resulting from deterministic cross-risk pillar severe stress scenarios (e.g., financial crisis or inflation spike scenarios) before
being further delineated and extended to policies and guidelines, limits and investment risk standards at all levels of the Company.
At the same time, guidelines and limits are constructed for each investments portfolio then for each legal entity up to the Group
level in a consistent manner. These contain comprehensive specifications and limits that span credit quality, net interest rate risk,
liquidity, liability coverage, capital funds quality and concentration (geographic, asset sub-class, single exposure, sector, etc.)
among other considerations.

The Company utilizes external and internal tools to quantify financial market and credit risks. In addition to regularly

assessing portfolio sensitivities to predetermined changes in market factors (e.g., interest rates and credit spreads), the Company has
developed internally several single-year and multi-year scenarios with the goal of quantifying the impact of severe macroeconomic
events (e.g., real estate crisis, financial crisis and inflation/interest rate spike) on invested assets, economically sensitive reinsurance
business (e.g., mortgage, credit & surety etc.) and inflation sensitive reserves. These scenarios are often augmented by reinsurance
shocks (e.g., Natural Catastrophe event) to assess the impact on the Company’s liquidity and/or solvency at the Group and legal
entity levels.

Furthermore, Risk Management employs an external real-world Economic Scenario Generator tool to regularly quantify and

monitor the evolution of total return distributions by asset classes, subclass and by risk type (e.g., interest rate risk, equity risk,
private equity, spread risk including default and migration risks, currency risk and real estate risk).

Net interest rate risk is monitored and managed holistically through asset liability management, asset reallocation and/or
derivatives to ensure that large movements in interest rates do not result in significant loss of economic capital, in excess of Group
and legal entity risk tolerances.

Counterparty credit risk is monitored and managed by major source of risk (e.g., corporate credit, derivatives, retrocession,
funds withheld, etc.) and in aggregate across sources of risk. Limits are put in place at the Group level to ensure that losses due to
the default of any single counterparty do not place an excessive strain on PartnerRe’s capital and/or solvency positions.

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Lastly, currency risk is monitored and hedged through foreign exchange forward contracts whenever deemed necessary and

appropriate.

See Quantitative and Qualitative Disclosures about Market Risk in Item 11 of this report for further details.

Financial Risk

The Company’s key financial risks include, but are not limited to, failures or weaknesses in financial reporting (including
internal controls over financial reporting), regulatory non-compliance, risks related to the valuation of assets and liabilities, liquidity
risk, foreign exchange (FX) risk and risks related to taxation.

Capital Management Risk

Capital Management Risk is the risk of holding insufficient levels of regulatory or economic capital to support regulatory and

internal requirements and the business strategy.

Operational Risk

Operational risks are inherent to conducting business and represent a potential for a financial loss or reputational impact as a

result of operational failures caused by people, processes, systems and external events. The more significant operational risk topics,
include but are not limited to, information technology (including cyber security and data integrity), business disruption, execution
and process management, outsourcing, legal and regulatory compliance, fraud and human resources management. The Company
seeks to minimize these risks through robust processes and controls, and monitoring throughout the organization.

Risk Strategy: Risk Appetite and Risk Tolerance Framework

Risk Appetite

Risk appetite is an integral part of an effective risk management system that defines the overall level of risk the Company is
prepared to accept in pursuit of its strategic objectives, and which is managed through a robust Risk Tolerance Framework of risk
limits. The ERC regularly reviews the Company’s deployment and may decide to adjust the amount of capacity deployed for each
risk driver (within the established risk tolerance) based on strategic considerations and changes in market conditions.

Risk Tolerance Framework

The Company’s risk tolerance is expressed as the maximum economic loss that the Company is willing to incur based on

various modeled probability return periods. To mitigate the chance of economic losses exceeding the risk tolerance, the Company
relies upon diversification of risk sources and risk limits to manage exposures. Diversification enables losses from one risk source to
be offset by profits from other risk sources so that the chance of overall losses exceeding the Company’s risk tolerance is reduced.

The Company’s risk tolerance is approved by the Board and is expected to remain stable. Any changes to the risk tolerance are

to be approved by the Board. Definitions for the maximum economic loss and available economic capital are as follows:

Economic Loss. The Company defines an economic loss as a decrease in the Company’s economic value, which is defined as

common shareholder's equity plus the “time value of money” discount of the non-life reserves that is not recognized in the
consolidated financial statements in accordance with U.S. GAAP, net of tax, plus the embedded value of the life portfolio that is not
recognized in the consolidated financial statements in accordance with U.S. GAAP, net of tax, less goodwill and intangible assets,
net of tax.

Available Economic Capital. The Company defines economic capital as the economic value, as defined above, plus preferred

shareholders’ equity and the carrying value of debt recognized in the consolidated financial statements in accordance with U.S.
GAAP.

The Maximum Economic Loss. The maximum economic loss is a loss expressed as a percentage of economic capital under

various modeled probability return periods.

The Company establishes key risk limits net of any reinsurance/retrocession for any risk source deemed by management to

have the potential to cause economic losses greater than the Company’s risk tolerance. The Risk Tolerance Framework is approved
by the Board in order to drive consistency in the application of the following Company limits: Overall Group Risk Tolerance,
Reinsurance Operations, Financial Assets and Reinsurance Risk Tiers, each of which are described as follows:

Overall Group Risk Tolerance. The overall group risk tolerance limit is 35% of the loss of available economic capital based on

the internal model 99% Value at Risk (VaR). Additionally, this limit is also monitored through a number of stress scenarios which
impact both asset and liabilities on the balance sheet.

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Reinsurance Operations. This category includes reinsurance risks and the standard fixed income portfolio. The risk tolerance

limit for Reinsurance Operations is 30% of the loss of available economic capital based on the internal model 99% VaR. Within
Reinsurance Operations we have defined three risk tiers which consist of a classification of risk drivers considering the following
criteria:

• Materiality

• Risk driver expertise, and

• Potential for superior risk-adjusted return over the cycle.

Tier 1 Risks

Tier 1 risks consist of risk drivers that meet all three criteria of the Risk Tolerance Framework: materiality, risk driver
expertise and potential for superior risk-adjusted return over the cycle. Additionally, the risk tolerance limit for this risk tier is 20%
of available capital (annually defined). For the short term risks (Natural Catastrophe, Pandemic, Standard Fixed Income), the
underlying metric is the 99% VaR of the one year economic impact measured either through the internal model or a corresponding
scenario. For the long term risks (Mortality Trend and Casualty) the metric is the 95% VaR of the full runoff distribution. The
following are Tier 1 Risks:

Natural Catastrophe Risk. The risk that the aggregate losses from natural perils materially exceed the net premiums that are

received to cover such risks. The Company considers both catastrophe losses due to a single large event and catastrophe losses that
would occur from multiple (but potentially smaller) events in any year.

Mortality Trend Risk. The risk that over time, mortality rates deviate from the rates estimated at pricing which affects the Long

Term Mortality book (through deteriorating mortality) and the Longevity book (through improving mortality). The natural hedge
between the Long Term Mortality portfolio and the Longevity portfolio depends on the differences in age groups, socio-economic
classes, geographies, and lapse behavior.

Pandemic Risk. The risk of increase in mortality over an annual period associated with a rapidly spreading virus (either within

a highly populated geographic area or on a global basis) with a high mortality rate.

Casualty Risk. The risk that the estimates of ultimate losses for casualty will prove to be too low, leading to the need for

substantial reserve strengthening.

Standard Fixed Income Risk. The risk of a decline in the market value of the Company’s holdings of cash and publicly traded

investment grade fixed income securities due to credit defaults and downgrades, credit spread and interest rate movements as well as
FX rate fluctuations. The risk measure also encompasses the impact of interest rate and FX movements on liabilities.

Financial Asset Risk. The risk of a decline in the market value of the Company’s holdings of public equity, private equity, real

estate and alternative fixed income (private credit, loans, and Emerging Market and non-investment grade fixed income securities)
assets.

The ERC monitors Tier 1 risks on a periodic basis. The approved limits and the actual limits deployed at December 31, 2020

and 2019 were as follows (in billions of U.S. dollars):

Tier 1 Risks

Natural Catastrophe Risk
Mortality Trend Risk
Pandemic Risk
Casualty Risk
Standard Fixed Income Risk
Financial Asset Risk (2)

December 31, 2020

December 31, 2019

Actual deployed (1)

Approved limit (1)

Approved limit (1)
$
$
$
$
$
$

1.7 $
1.7 $
1.7 $
1.7 $
1.7 $
1.7 $

1.2 $
1.0 $
0.4 $
1.2 $
0.4 $
1.2 $

Actual deployed (1)
1.1
0.8
0.4
1.1
0.3
1.1

1.7 $
1.7 $
1.7 $
1.7 $
1.7 $
1.7 $

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

(2) Financial Asset risk is subject to the same limit of 20% of the available capital based on the internal model 99% VaR.

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Tier 2 Risks

Tier 2 risks consist of risk drivers which meet two of the three Risk Tolerance Framework criteria. Tier 2 risks are monitored
by the ERC. The risk tolerance limit for Tier 2 is 10% of the available capital based on either the internal model 1-in-100 Value at
Risk or a 99% scenario. The following are Tier 2 Risks:

Mortgage Risk. The risk that losses from mortgage reinsurance materially exceed the net premiums that are received to cover

such risks, which may result in operating and economic losses to the Company.

Credit and Surety Risk. The risk that aggregated trade credit losses materially exceed the net premiums that are received to

cover such risks, which may result in operating and economic losses to the Company.

Tier 3 Risks

All other underwriting risks are considered as Tier 3 Risks with a risk tolerance limit of $250 million. These risks are

monitored by the Chief Underwriting Officer and corresponding BU.

Risk Reporting

The Company monitors risks that could adversely impact operating and economic results. The risk reporting dashboard

provides the ERC with key risk exposure analysis in order to monitor the Company’s risk tolerance limits and risk profile.

Natural Catastrophe PML

The following discussion of the Company’s natural catastrophe PML information contains forward-looking statements based

upon assumptions and expectations concerning the potential effect of future events that are subject to uncertainties. See Item 3.D for
a list of the Company’s risk factors. Any of these risk factors could result in actual losses that are materially different from the
Company’s PML estimates below.

Natural catastrophe risk is a source of significant aggregate exposure for the Company and is managed by setting risk
tolerance and limits, as discussed above. Natural catastrophe perils can impact geographic regions of varying size and can have
economic repercussions beyond the geographic region directly impacted.

The Company considers a peril zone to be an area within a geographic region, continent or country in which losses from
insurance exposures are likely to be highly correlated to a single catastrophic event. The Company defines peril zones to capture the
vast majority of exposures likely to be incorporated by typical modeled events. There is, however, no industry standard and the
Company’s definitions of peril zones may differ from those of other parties.

The Company has exposures in other peril zones that can potentially generate losses greater than the PML estimates below.

The Company’s PMLs represent an estimate of loss for a single event for a given return period. The table below discloses the
Company’s 1-in-250 and 1-in-500 year return period estimated loss for a single occurrence of a natural catastrophe event in a one-
year period. In other words, the 1-in-250 and 1-in-500 year return period PMLs mean that there is a 0.4% and 0.2% chance,
respectively, in any given year that an occurrence of a natural catastrophe in a specific peril zone will lead to losses exceeding the
stated estimate.

The PML estimates below include all significant exposure from our Non-life and Life and Health business operations. This

includes coverage for property, marine, energy, engineering, workers’ compensation, mortality, and exposure to catastrophe losses
from insurance-linked securities. The PML estimates do not include casualty coverage that could be exposed as a result of a
catastrophic event. In addition, they do not include estimates for contingent losses to insureds that are not directly impacted by the
event (e.g. loss of earnings due to disruption in supply lines).

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The Company’s single occurrence estimated net PML exposures (net of retrocession and reinstatement premiums) of the main

peril zones as at December 31, 2020 and 2019 were as follows (in millions of U.S. dollars):

December 31, 2020

December 31, 2019

1-in-250
year PML

828

811

744

245

469

394

1-in-500
year PML
(Earthquake
perils only)

1-in-250
year PML

1-in-500
year PML
(Earthquake
perils only)

790

847

802

254

410

301

756 $

1,105

755 $

1,107

499

298

287

170

566

413

427

344

447

289

256

164

523

366

362

328

Peril

Hurricane

Windstorm

Typhoon

Earthquake

Zone
U.S. Southeast

U.S. Northeast

U.S. Gulf Coast

Caribbean

Europe

Japan

California

Japan

Australia

New Zealand

British Columbia

Risk Mitigation

Retrocessional Reinsurance

The Company uses retrocessional reinsurance agreements to reduce its exposure on certain reinsurance risks assumed and to

mitigate the effect of any single major event or the frequency of medium-sized events. These agreements provide for the recovery of
a portion of losses and loss expenses from retrocessionaires. The majority of the Company’s retrocessional reinsurance agreements
cover property and specialty lines exposures, predominantly those that are catastrophe exposed. The Company also utilizes
retrocessions in the Life and Health segment to manage the amount of per-event and per-life risks to which it is exposed.
Retrocessionaires must be pre-approved based on their financial condition and business practices, with stability, solvency and credit
ratings considered to be important criteria. Strict limits per retrocessionaire are also put into place and monitored to mitigate
counterparty credit risk.

The Company remains liable to its cedants to the extent that the retrocessionaires do not meet their obligations under
retrocessional agreements, and therefore retrocessions are subject to credit risk in all cases and to aggregate loss limits in certain
cases. The Company holds collateral, including escrow funds, trusts, securities and letters of credit under certain retrocessional
agreements. Provisions are made for amounts considered potentially uncollectible and reinsurance losses recoverable from
retrocessionaires are reported after allowances for uncollectible amounts.

Regulation

The business of reinsurance is regulated in all countries in which we operate, although the degree and type of regulation varies
significantly from one jurisdiction to another. The laws and regulations of the jurisdictions in which our reinsurance subsidiaries are
domiciled impose complex regulatory requirements such as maintenance of minimum levels of statutory capital, surplus, and
liquidity; various solvency standards; and periodic examinations of subsidiaries’ financial condition. See Risk Factors—Legal and
Regulatory Risks in Item 3.D of this report.

Bermuda has been deemed Solvency II equivalent under the EU's Solvency II Directive, effective January 1, 2016. Bermuda
has been granted equivalence for an unlimited period for all three relevant equivalence areas: Articles 172, 227 and 260, with the
exception of rules on captives or limited purpose insurers (Class 1, Class 2, Class 3, Class A and Class B), special purpose insurers
and collateralized insurers, which are subject to a different regulatory regime in Bermuda. This determination has resulted in
Bermuda-based reinsurers being exempt from the requirement to post collateral in the EU and allows reinsurance contracts
concluded with undertakings having their head office in Bermuda to be treated in the same manner as reinsurance contracts
concluded with undertakings authorized in accordance with the Directive (Article 172); EU insurance groups can conduct their EU
prudential reporting for a subsidiary in Bermuda under local rules instead of Solvency II if deduction and aggregation is allowed as
the method of consolidation of group accounts (Article 227); and Bermuda insurance groups which are active in the EU are exempt

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from some aspects of group supervision in the EU as Member States will rely on the equivalent supervision exercised by the
Bermuda Monetary Authority (BMA) (Article 260).

Group Supervision. One of the key concepts of Solvency II is the principal of one “home” regulator over all the operating

entities in a particular insurance or reinsurance group (referred to as Group Supervision). The Insurance Act 1978 of Bermuda and
related regulations, as amended (the Insurance Act) sets out provisions regarding Group Supervision, including the power of the
BMA to include or exclude specified entities from Group Supervision, the power of the BMA to withdraw as group supervisor, the
functions of the BMA as Group Supervisor and the power of the BMA to make rules regarding Group Supervision for, among other
things (1) assessing the financial situation and the solvency position of the insurance group and/or its members and (2) regulating
intra-group transactions, risk concentration, governance procedures, risk management and regulatory reporting and disclosure. In
addition to being tasked with assessing the financial condition of the Company and its subsidiaries, the BMA has the power to
impose restrictions on the ability of the Company's subsidiaries to declare dividends to the Company, and the ability of the
Company to pay dividends to shareholders. This Group Supervision regime is in addition to the regulation of the Company’s various
operating subsidiaries in their local jurisdictions. The BMA’s Group Supervision rules set out the rules in respect of the assessment
of the financial situation and solvency of an insurance group, the system of governance and risk management, and supervisory
reporting and disclosures of an insurance group. The group solvency rules (and together with the Group Supervision rules, the
Group Rules) set out the rules in respect of the capital and solvency return and enhanced capital requirements for an insurance
group. PartnerRe Bermuda is the designated insurer for the purposes of Group Supervision, and the BMA currently acts as Group
Supervisor of the Company and its subsidiaries. As Group Supervisor, the BMA will perform a number of supervisory functions
including (1) coordinating the gathering and dissemination of information which is of importance for the supervisory task of other
competent authorities; (2) carrying out a supervisory review and assessment of the PartnerRe Group; (3) carrying out an assessment
of the PartnerRe group’s compliance with the rules on solvency, risk concentration, intra-group transactions and good governance
procedures; (4) planning and coordinating, with other competent authorities, supervisory activities in respect of the PartnerRe group,
both as a going concern and in emergency situations; (5) taking into account the nature, scale and complexity of the risks inherent in
the business of all companies that are part of the PartnerRe group; (6) coordinating any enforcement action that may need to be
taken against the PartnerRe group or any of its members and (7) planning and coordinating meetings of colleges of supervisors
(consisting of insurance regulators) in order to facilitate the carrying out of the functions described above.

PartnerRe Ltd. is not a registered insurer; however, pursuant to its functions as Group Supervisor, the BMA includes the

Company and may include any member of the group within its Group Supervision.

Significant aspects of the Group Rules imposed on Insurance and Reinsurance Groups include the solvency assessment. The

Company in respect of the PartnerRe group must annually perform an assessment of its own risk and solvency requirements,
referred to as a Group’s Solvency Self Assessment (GSSA). The GSSA allows the BMA to obtain an insurance group’s view of the
capital resources required to achieve its business objectives and to assess a group’s governance, risk management and controls
surrounding this process.

The BMA imposes the group Enhanced Capital Requirement (ECR) on the PartnerRe group pursuant to its function as the
Company’s Group Supervisor. Insurance groups are required to maintain available statutory economic capital and surplus to an
amount that is equal to or exceeds the value of its ECR. The PartnerRe group’s ECR may be calculated by either (a) the standard
model developed by the BMA known as the Bermuda Solvency Capital Requirement model (BSCR), or (b) an internal capital
model which the BMA has approved for use for this purpose. The PartnerRe group currently uses the BSCR model in calculating its
group ECR requirements. In addition, the PartnerRe group is required to prepare and submit annual audited group U.S. GAAP
financial statements, annual group statutory financial statements, annual group statutory financial return, annual group capital and
solvency return (including an economic balance sheet) and quarterly group unaudited financial returns. An insurance group must
further ensure that the value of the insurance group's assets exceeds the amount of the insurance group's liabilities by the aggregate
of: (i) the individual minimum solvency margin (MSM) of each qualifying member of the group controlled by the parent company;
and (ii) the parent company's percentage shareholding in the member multiplied by the member's MSM, where the parent company
exercises significant influence over a member of the group but does not control the member. A member is a qualified member of the
insurance group if it is subject to solvency requirements in the jurisdiction in which it is registered. The PartnerRe group is also
required to submit annual group actuarial opinions in respect of its general business and long-term insurance business when filing its
group capital and solvency return. The PartnerRe group is required to appoint individuals approved by the BMA to be group
actuaries for both general business and long-term business. The group actuary must provide an opinion on the PartnerRe group's
technical provisions as recorded in the PartnerRe group statutory economic balance sheet.

The BSCR model is a risk-based capital model which provides a method for determining an insurer’s capital requirements

(statutory capital and surplus) by taking into account the risk characteristics of different aspects of the insurer’s business. The
BSCR formula establishes, on a consolidated basis, capital requirements for eleven categories of risk: fixed income investment
risk, equity investment risk, interest rate/liquidity risk, currency risk, concentration risk, credit risk, premium risk, reserve risk,
catastrophe risk, long-term insurance risk and operational risk.

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We are currently completing our 2020 Group BSCR, which must be filed with the BMA on or before May 31, 2021, and at
this time, we believe we will exceed the target level of required economic statutory capital. Our 2019 Group BSCR exceeded the
target level of required statutory capital.

Public Disclosure. Pursuant to the Insurance (Public Disclosure) Rules 2015, the BMA requires commercial insurers and
insurance groups to prepare and publish a Financial Condition Report (FCR). The FCR provides an overview of the PartnerRe
group’s financial condition including business performance, governance structure, risk profile, solvency valuation and capital
management process. The FCR includes, among other disclosures, the respective company’s required and available statutory
capital. The FCR is required to be filed with the BMA annually and published on the PartnerRe website within 14 days of filing
with the BMA. The FCR must be signed off by the CEO and any senior executive responsible for the actuarial, or risk
management, or internal audit, or compliance function who will declare that to the best of their knowledge and belief the FCR
fairly represents the financial condition of the PartnerRe group in all material respects.

Bermuda

All Bermuda companies must comply with the provisions of the Bermuda Companies Act 1981 (the Companies Act). In
addition, the Insurance Act regulates the businesses of our Bermuda reinsurance subsidiaries, comprised of (i) PartnerRe Bermuda, a
Class 4 insurer and Class E insurer and (ii) PRE Life Bermuda Re Ltd. and Partner Reinsurance Life Company of Bermuda Ltd.,
each a Class C insurer. The Insurance Act does not distinguish between insurers and reinsurers: companies are registered (licensed)
under the Insurance Act as “insurers”.

The continued registration of an insurer is subject to the insurer complying with the terms of its registration and such other

conditions as the BMA may impose from time to time. The Insurance Act also grants to the BMA powers to supervise, investigate
and intervene in the affairs of insurance companies.

The Insurance Act imposes solvency and liquidity standards and auditing and reporting requirements on Bermuda insurance

companies.

PartnerRe Bermuda, for example, is licensed as a Class 4 and Class E insurer in Bermuda and is therefore authorized to carry

on general business and long-term insurance business. Significant aspects of the Bermuda insurance regulatory framework and
requirements imposed on Class 4 and Class E insurers such as PartnerRe Bermuda include the following:

Minimum Solvency Margin and Enhanced Capital Requirements. The Insurance Act provides that the value of the statutory
assets of an insurer must exceed the value of its statutory liabilities by an amount greater than its prescribed MSM. The MSM that
must be maintained by PartnerRe Bermuda with respect to its general business is the greater of (i) $100 million, (ii) 50% of net
premiums written (with a credit for reinsurance ceded not exceeding 25% of gross premiums), (iii) 15% of net aggregate loss and
loss expense provisions and other insurance reserves, or (iv) 25% of its ECR as reported at the end of the relevant year. The MSM
that must be maintained by PartnerRe Bermuda with respect to its long-term business is the greater of (i) $8 million, (ii) 2% of the
first $500 million of assets plus 1.5% of assets above $500 million, or (iii) 25% of its ECR. For our two Class C reinsurers, PRE
Life Bermuda Re Ltd. and Partner Reinsurance Life Company of Bermuda Ltd., the MSM is equal to the greater of $500,000, 1.5%
of the total statutory assets or 25% of its ECR. Statutory assets are defined as the total assets reported on an insurer’s balance sheet
in the relevant year less non-admitted assets, including goodwill and other intangible assets, not considered admissible for solvency
purposes.

Minimum Liquidity Ratio. An insurer engaged in general business, such as PartnerRe Bermuda, is required to maintain the

value of its relevant assets at not less than 75% of the amount of its relevant liabilities.

Minimum Capital Requirements. While not specifically referred to in the Insurance Act, the BMA has also established a Target

Capital Level (TCL) equal to 120% of its ECR. While an insurer is not currently required to maintain its statutory capital and
surplus at this level, the TCL serves as an early warning tool for the BMA and failure to maintain statutory capital at least equal to
the TCL will likely result in increased regulatory oversight.

Any applicable insurer which at any time fails to meet the MSM requirements must, upon becoming aware of such failure,
immediately notify the BMA and, within 14 days thereafter, file a written report with the BMA describing the circumstances that
gave rise to the failure and setting out its plan detailing specific actions to be taken and the expected time frame in which the
company intends to rectify the failure.

Any applicable insurer which at any time fails to meet the ECR applicable to it will upon becoming aware of that failure, or of

having reason to believe that such a failure has occurred, immediately notify the BMA in writing and, within 14 days of such
notification, file with the BMA a written report containing particulars of the circumstances leading to the failure; and a plan
detailing the manner, specific actions to be taken and time within which the insurer intends to rectify the failure and within 45 days
of becoming aware of that failure, or of having reason to believe that such a failure has occurred, furnish the BMA with: (1)

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unaudited statutory economic balance sheets and unaudited interim financial statements prepared in accordance with GAAP
covering such period as the BMA may require, (2) the opinion of a loss reserve specialist, where applicable, (3) a general business
solvency certificate in respect of those financial statements, where applicable, (4) a capital and solvency return reflecting an ECR
prepared using post-failure data, where applicable, (5) a long-term business solvency certificate in respect of those statements,
where applicable and (6) the opinion of an approved actuary, where applicable. An insurer to whom this applies shall not declare or
pay any dividends until the failure is rectified.

To enable the BMA to better assess the quality of the insurer’s capital resources, applicable insurers are required to disclose

the makeup of its capital in accordance with the “3-tiered capital system”. Under this system, all of the insurer’s capital instruments
will be classified as either basic or ancillary capital which in turn will be classified into one of three tiers based on their “loss
absorbency” characteristics. Highest quality capital will be classified as Tier 1 Capital and lesser quality capital will be classified as
either Tier 2 Capital or Tier 3 Capital. Under this regime, up to certain specified percentages of Tier 1, Tier 2, and Tier 3 Capital
may be used to support the insurer’s MSM and ECR.

The characteristics of the capital instruments that must be satisfied to qualify as Tier 1 Capital, Tier 2 Capital, and Tier 3
Capital are set out in the Insurance (Eligible Capital) Rules 2012, as amended. Under these rules, Tier 1 Capital, Tier 2 Capital, and
Tier 3 Capital may include capital instruments that do not satisfy the requirement that the instrument be non-redeemable or settled
only with the issuance of an instrument of equal or higher quality upon a breach, or if it would cause a breach, in the ECR until
January 1, 2026.

While the BMA has previously approved the use of certain instruments for capital purposes, the BMA’s consent will need to

be obtained if such instruments are to remain eligible for use in satisfying the MSM and the ECR.

The BMA implemented an economic balance sheet (EBS) framework which is used as the basis to determine the ECR for all

commercial insurers, including PartnerRe Bermuda. The EBS framework applies prudential filters and other EBS valuation
adjustments to an insurer's GAAP balance sheet to produce an economic valuation of the assets and liabilities of the insurer. The
Insurance (Prudential Standards) Amendment Rules 2018 provide updates to certain aspects of the EBS framework and increase the
ECR over a 3-year transition period for general business and a 10-year transition period for long-term business.

Reporting Requirements. PartnerRe Bermuda must prepare and submit, on an annual basis, both audited GAAP and statutory
financial statements. The Insurance Act prescribes rules for the preparation and substance of statutory financial statements (which
include, in statutory form, a balance sheet, income statement, a statement of capital and surplus, and notes thereto). The statutory
financial statements include detailed information and analysis regarding premiums, claims, reinsurance and investments of the
insurer. The statutory financial statements contain statements both on a consolidated and unconsolidated basis. The unconsolidated
information forms the basis for assessing PartnerRe Bermuda's liquidity ratio and MSM.

Every insurer is also required to deliver to the BMA a declaration of compliance declaring whether or not that insurer has, with
respect to the preceding financial year, (i) complied with the minimum criteria applicable to it, (ii) complied with its MSM and ECR
as at its financial year-end, (iii) complied with the minimum liquidity ratio for general business as at its financial year-end, and (iv)
where an insurer’s license has been issued subject to limitations, restrictions or conditions, that the insurer has observed such
limitations, restrictions or conditions. The declaration of compliance must be signed by two directors and filed at the same time the
insurer submits its statutory financial statements.

Insurance Code of Conduct. Every Bermuda registered insurer must comply with the Insurance Code of Conduct (Code of

Conduct) which prescribes the duties and standards that must be complied with to ensure sound corporate governance, risk
management and internal controls are implemented. The BMA will assess an insurer’s compliance with the Code of Conduct in a
proportionate manner relative to the nature, scale and complexity of its business. Failure to comply with the requirements of the
Code of Conduct will be taken into account by the BMA in determining whether an insurer is conducting its business in a sound and
prudent manner as prescribed by the Insurance Act and may result in the BMA exercising its powers of intervention and
investigation.

Insurance Sector Operational Cyber Risk Management Code of Conduct. All Bermuda insurers are required to comply with
the Insurance Sector Operational Cyber Risk Management Code of Conduct (Cyber Code), which establishes duties, requirements,
standards, procedures and principles to be complied with in relation to operational cyber risk management. Failure to comply with
the Cyber Code will be a factor taken into account by the BMA in determining whether an insurer is meeting its obligation to
conduct business in a sound and prudent manner.

Dividends and Distributions. As a Bermuda-domiciled holding company, the Company has limited operations of its own and
its assets consist primarily of investments in its subsidiaries. Accordingly, the Company’s future cash flows largely depend on the
availability of dividends or other statutorily permissible payments from subsidiaries. The ability to pay such dividends is limited by
the applicable laws and regulations of the various countries and states in which these subsidiaries operate, including, among others,

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Bermuda, various states of the U.S., Singapore and Ireland. The Company’s ability to pay dividends and interest and to make
dividends to shareholders is limited by the Companies Act 1981.

The Insurance Act prohibits PartnerRe Bermuda, as an insurer registered as a Class E and as a Class 4 insurer from declaring

or paying any dividends during any financial year if it is in breach of its MSM or if the declaration or payment of such dividends
would cause such a breach. PartnerRe Bermuda is also prohibited from declaring or paying a dividend where it has failed to comply
with the ECR, until such noncompliance is rectified. The Insurance Act also provides that our Bermuda reinsurance subsidiaries
shall not in any financial year pay dividends which would exceed 25% of its total statutory capital and surplus, as shown on its
statutory balance sheet in relation to the previous financial year, unless at least 7 days before payment of those dividends it files with
the BMA an affidavit signed by at least two directors, and by PartnerRe Bermuda’s principal representative in Bermuda, which
states that in the opinion of those signing, declaration of those dividends has not caused the insurer to fail to meet its relevant
margins. Further, each of our Bermuda reinsurance subsidiaries must obtain the BMA’s prior approval before reducing its total
statutory capital as shown in its previous financial year statutory balance sheet by 15% or more.

Generally, an insurer carrying on long-term business, such as PartnerRe Bermuda, is also restricted from declaring or paying

a dividend unless the value of its assets in its long-term business fund exceeds the extent of the liabilities of the insurer’s long-
term business. The Insurance Act also prohibits an insurer carrying on long-term business from declaring or paying a dividend to
any person other than a policyholder unless the value of the assets of such insurer, as certified by its approved actuary, exceeds its
liabilities (as so certified) by the greater of its margin of solvency, or if applicable, its enhanced capital requirement and the
amount of any such dividend shall not exceed that excess.

Further, under the Companies Act, as amended, the Company and PartnerRe Bermuda may only declare or pay a dividend, or
make a distribution out of contributed surplus, if it has no reasonable grounds for believing that: (1) it is, or would after the payment
be, unable to pay its liabilities as they become due or (2) the realizable value of its assets would be less than its liabilities.

Fit and Proper Controllers. The BMA maintains supervision over controllers (as defined herein) of all Bermuda registered

insurers. For these purposes, a controller includes (1) the managing director of the registered insurer or its parent company, (2) the
chief executive officer of the registered insurer or of its parent company, (3) a shareholder controller and (4) any person in
accordance with those directions or instructions the directors of the registered insurers or its parent company are accustomed to act.

The definition of shareholder controller is set out in the Insurance Act but generally refers to (1) a person who holds 10% or

more of the shares carrying rights to vote at a shareholders' meeting of the registered insurer or its parent company, (2) a person who
is entitled to exercise 10% or more of the voting power at any shareholders' meeting of such registered insurer or its parent company
or (3) a person who is able to exercise significant influence over the management of the registered insurer or its parent company by
virtue of its shareholding or its entitlement to exercise, or control the exercise of, the voting power at any shareholders' meeting.

Where the shares of a registered insurer, or the shares of its parent company, are not traded on any recognized stock exchange,

no person shall become a 10%, 20%, 33% or 50% shareholder controller of the insurer unless (a) he/she has served on the BMA a
notice in writing that he/she intends to become a controller of the insurer and (b) either the BMA has, before the end of a period of
45 days beginning with the date of service of that notice, notified such person in writing that there is no objection to such person
becoming such a controlling shareholder. Likewise, no person who is a shareholder controller shall reduce or dispose of his/her
holding in the insurer where the proportion of voting rights held by the shareholder controller in the insurer will reach or fall below
10%, 20%, 33% or 50% as the case may be unless that shareholder controller has served on the BMA a notice in writing not later
than 45 days of such disposal.

Material Change. All registered insurers are required to give the BMA 30 days' notice of their intention to effect a material
change within the meaning of the Insurance Act, and shall not take any steps to give effect to a material change unless, before the
end of the notice period the registered insurer has been notified by the BMA in writing that it has no objection to such change or the
period has lapsed without the BMA issuing a notice of objection.

Policyholder Priority. As of January 1, 2019, the Insurance Amendment (No. 2) Act 2018 amended the Insurance Act to
provide for the prior payment of policyholders' liabilities ahead of general unsecured creditors in the event of the liquidation or
winding up of an insurer. The amendments provide, among other things, that subject to the prior payment of preferential debt under
the Employment Act 2000 and the Companies Act, the insurance debts of an insurer must be paid in priority to all other unsecured
debts of the insurer.

Economic Substance Act 2018 (ESA) and Economic Substance Regulations 2018 (Substance Regulations). Under the ESA, if a
Bermuda company is engaged in one or more “relevant activities” (which is defined to include insurance) it is required to maintain a
substantial economic presence in Bermuda and to comply with the economic substance requirements (ES Requirements) set forth in
the ESA and the Substance Regulations. A company will comply with those economic substance requirements if it: (a) is managed
and directed in Bermuda; (b) undertakes “core income generating activities” (as may be prescribed under the ESA) in Bermuda in
respect of the relevant activity; (c) maintains adequate physical presence in Bermuda; (d) has adequate full time employees in

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Bermuda with suitable qualifications; and (e) incurs adequate operating expenditure in Bermuda in relation to the relevant activity
undertaken by it.

The economic substance guidance notes issued in December 2019 provide that a company licensed under the Insurance Act is

generally considered to operate in Bermuda with adequate substance. However, such companies are still required to complete and
file an economic substance declaration with the Registrar of Companies (Registrar). In assessing compliance with the ES
Requirements, the Registrar will have regard to: (i) the company’s compliance with applicable corporate governance obligations
under the Companies Act; (ii) the company’s compliance with its obligations under the Insurance Act (including regulations, rules
and code of conduct made thereunder); and (iii) the information provided in that Declaration.

In addition to the above, PartnerRe Bermuda maintains an operating branch in Canada and a representative office in Mexico.

The Canada branch is subject to regulation in Canada by the Office of the Superintendent of Financial Institutions (OSFI). For a
further discussion of the regulations pertaining to the Canada branch see below.

Ireland

The Central Bank of Ireland (the Central Bank) regulates insurance and reinsurance companies authorized in Ireland, including

PartnerRe Europe and PartnerRe Ireland. PartnerRe Holdings Europe Limited, a holding company for PartnerRe Europe and
PartnerRe Ireland, and PartnerRe Ireland Finance DAC are not subject to regulation by the Central Bank. PartnerRe Europe is a
reinsurance company incorporated under the laws of Ireland and is duly authorized as a reinsurance undertaking to carry on non-life
and life reinsurance business in accordance with the European Union (Insurance and Reinsurance) Regulations 2015. PartnerRe
Ireland is an insurance company incorporated under the laws of Ireland and is duly authorized as an insurance undertaking to carry
on non-life insurance business in accordance with the European Union (Insurance and Reinsurance) Regulations 2015.

Significant aspects of the Irish re/insurance regulatory framework and requirements imposed on PartnerRe Europe and

PartnerRe Ireland include the following:

Solvency Requirements. The Directive related to the solvency standards applicable to insurers and reinsurers prescribes, at the
level of PartnerRe Europe and PartnerRe Ireland, the minimum amounts of financial resources that both companies are required to
have in order to cover the risks to which they are exposed and the principles that should guide their overall risk management and
reporting. This Directive became effective January 1, 2016. Under the Solvency II requirements, PartnerRe Europe and PartnerRe
Ireland have similar governance requirements to those of PartnerRe Bermuda such as Balance Sheet, Own Risk and Solvency
Assessment (ORSA), Solvency and Financial Condition Report and a Regular Supervisory Report.

Reporting Requirements. PartnerRe Europe and PartnerRe Ireland must file and submit annual audited financial statements in
accordance with International Financial Reporting Standards and related reports to the Irish Companies Registration Office (CRO)
together with an annual return of certain core corporate information. Changes to core corporate information during the year must
also be notified to the CRO. PartnerRe Europe and PartnerRe Ireland must also file and submit annual certifications for the
following to the Central Bank:

Corporate Governance Requirements for Insurance Undertakings 2015

Fitness & Probity Standards (Code issued under Section 50 of the Central Bank Reform Act 2010)

ORSA

Solvency II Compliance Statement

Quantitative Reporting Templates (QRTs)

Regular Supervisory Reports

These requirements are in addition to the regulatory returns required to be filed annually with the Central Bank and
additionally, in the case of PartnerRe Ireland, with the National Association of Insurance Commissioners (NAIC) in the U.S.

Dividends and Distributions. Pursuant to Irish company law, PartnerRe Europe and PartnerRe Ireland are restricted to

declaring dividends only out of “profits available for distribution”. Profits available for distribution are, broadly, a company’s
accumulated realized profits less its accumulated realized losses. Such profits may not include profits previously utilized.

In addition to the above, PartnerRe Europe has also established operating branches in the U.K., France, Switzerland and Hong

Kong and a representative office in Brazil, which are subject to Irish reinsurance supervision regulations. In addition, the Hong
Kong branch, a composite branch, is subject to regulation by the Insurance Authority of Hong Kong. Following Brexit, the existing
U.K. branch is also subject to local regulation under the U.K. Temporary Permission Regime. PartnerRe Ireland, pursuant to the

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Non-admitted and Reinsurance Reform Act of 2010 (part of the Dodd-Frank Act), is a non-admitted alien insurer in the U.S. and is
eligible to write business as an excess and surplus lines insurer in all U.S. states.

PartnerRe Ireland has an operating branch in the U.K. that is subject to regulation under the U.K Temporary Permission

Regime.

United States

PartnerRe U.S. Corporation is a Delaware domiciled holding company for its wholly-owned (re)insurance subsidiaries,
PartnerRe U.S. and PartnerRe America Insurance Company (PRAIC) (PartnerRe U.S. and PRAIC together being the PartnerRe U.S.
Insurance Companies). The PartnerRe U.S. Insurance Companies are subject to regulation under the insurance statutes and
regulations of their domiciliary states (New York in the case of PartnerRe U.S. and Delaware in the case of PRAIC, and all states
where they are licensed, accredited approved to underwrite insurance and reinsurance or commercially domiciled). In 2020, PRAIC
was commercially domiciled in California and may similarly be commercially domiciled in 2021.

Currently, the PartnerRe U.S. Insurance Companies are licensed, accredited or approved reinsurers and/or insurers in all fifty

states and the District of Columbia, and are subject to the requirements described below.

PartnerRe U.S. Corporation is also the owner of Presidio and its 100% owned subsidiary Presidio Excess Insurance Services,
Inc. (PXS). PXS is a managing general underwriter licensed in a number of states. PXS is not subject to any significant regulatory
requirements or restrictions that would have a material impact on the Company.

The Company also, through its 100% owned subsidiary, PartnerRe U.S. Corporation, owns 100% of PartnerRe Life
Reinsurance Company of America (PLRA) a life reinsurance company which is subject to regulation under the insurance statutes
and regulations of Arkansas, its state of domicile, and all states where PLRA is licensed, accredited or approved to underwrite
reinsurance.

Risk-Based Capital Requirements. The Risk-Based Capital (RBC) for Insurers Model Act (the Model RBC Act) or similar
legislation has been adopted by all states in the U.S. The main purpose of the Model RBC Act is to provide a tool for insurance
regulators to evaluate the capital of insurers with respect to the risks assumed by them and to determine whether there is a need for
possible corrective action. U.S. insurers and reinsurers are required to report the results of their RBC calculations as part of the
statutory annual statements that such insurers and reinsurers file with state insurance regulatory authorities. The Model RBC Act
provides for four different levels of regulatory actions, each of which may be triggered if an insurer’s Total Adjusted Capital (as
defined in the Model RBC Act) is less than a corresponding level of risk-based capital. Decreases in an insurer’s Total Adjusted
Capital as a percentage of its Authorized Control Level (as defined in the Model RBC Act) triggers increasing regulatory actions.
Such regulatory actions include but are not limited to issuance of orders for corrective action by the insurer, rehabilitation or
liquidation of the insurer. No such actions have been taken with respect to the PartnerRe U.S. Insurance Companies or PLRA.

Insurance Regulatory Information System (IRIS) Ratios. A committee of state insurance regulators developed the NAIC’s IRIS

primarily to assist state insurance departments in executing their statutory mandates to oversee the financial condition of insurance
or reinsurance companies operating in their respective states. IRIS identifies thirteen industry ratios for property/casualty insurers
and twelve industry ratios for life insurers, and specifies usual values for each ratio. Generally, a company will become subject to
regulatory scrutiny if it falls outside the usual ranges with respect to four or more of the ratios, and regulators may then act, if the
company has insufficient capital, to constrain the company’s underwriting capacity. No such action has been taken with respect to
the PartnerRe U.S. Insurance Companies or PLRA.

Reporting Requirements. Regulations vary from state to state, but generally require insurance holding companies and insurers

and reinsurers that are subsidiaries of insurance holding companies to register and file with their state domiciliary regulatory
authorities certain reports, including information concerning their capital structure, ownership, financial condition and general
business operations. State regulatory authorities monitor compliance with, and periodically conduct examinations with respect to,
state mandated standards of solvency, licensing requirements, investment limitations, and restrictions on the size of risks which may
be reinsured, deposits of securities for the benefit of policyholders and creditors, such as reinsureds, methods of accounting for
assets, reserves for unearned premiums and losses, and other purposes. In general, such regulations are for the protection of
reinsureds and, ultimately, their policyholders and creditors, rather than security holders. In the U.S., the New York State
Department of Financial Service (NYDFS) is the domiciliary regulator of PartnerRe U.S., the Delaware Department of Insurance is
the domiciliary regulator of PRAIC and the Arkansas Insurance Department is the domiciliary regulator of PLRA. PRAIC was also
subject to the commercial domicile regulations of the California Department of Insurance during 2020.

Dividends and Distributions. Under New York law, the NYDFS must approve any dividend declared or paid by PartnerRe
U.S. that, together with all dividends declared or distributed by it during the preceding twelve months, exceeds the lesser of 10% of
its statutory surplus as shown on the latest statutory financial statements on file with the NYDFS, or 100% of its adjusted net
investment income. Under Delaware law the Delaware Commissioner of Insurance must approve any dividend declared or paid by

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PRAIC that, together with all dividends or distributions made within the preceding 12 months exceeds the greater of (i) ten percent
of PRAIC’s surplus as regards policyholders as of the preceding December 31 or (ii) the net income, not including realized capital
gains, for the 12-month period ending the preceding December 31. Under the commercial domicile laws of California, the California
Insurance Commissioner must approve any dividend declared or paid by PRAIC, that together with all dividends or distributions
made within the preceding 12 months exceeds the greater of (i) ten percent of PRAIC’s surplus as regards policyholders as of the
preceding December 31 or (ii) the net income, not including realized capital gains, for the 12-month period ending the preceding
December 31. Under Arkansas law the Arkansas Insurance Commissioner must approve any dividend declared or paid by PLRA
that, together with all dividends and distributions made within the preceding 12 months exceeds the greater of (i) ten percent of
PLRA's surplus as regards policyholders as of the preceding December 31 or (ii) the net gain from operations not including capital
gains for the twelve-month period ending on the preceding December 31. Arkansas, California, Delaware and New York do not
permit a dividend to be declared or distributed, except out of earned surplus.

Cybersecurity Requirements. In February 2017, the NYDFS issued final Cybersecurity Requirements for Financial Service

Companies that require regulated entities, including PartnerRe U.S. Insurance Companies, to establish and maintain a cybersecurity
program designed to protect consumers and ensure the safety and soundness of New York’s financial services industry. Among the
requirements are the maintenance of a cybersecurity program with governance controls, risk-based minimum data security standards
for technology systems, cyber breach preparedness and response requirements, including reporting obligations, vendor oversight,
training, and program record keeping and certification obligations. The regulation became effective on March 1, 2017, subject to
certain phase-in periods, and we will be required to incur expenses in order to meet its requirements.

Canada

Canadian branches of PartnerRe Bermuda and PartnerRe U.S. hold licenses to write reinsurance business in Canada. Each
Canadian branch is authorized to insure, in Canada, risks falling within the classes of insurance and reinsurance as specified in their
respective licenses and is limited to the business of reinsurance. The Canadian branch of PartnerRe Bermuda is licensed to write life
and accident and sickness business in Ontario, limited to reinsurance. The Canadian branch of PartnerRe U.S. is licensed to write
property and casualty and accident and sickness business in Ontario, limited to reinsurance. Each Canadian branch is subject to local
regulation for its Canadian branch business, specified principally pursuant to Part XIII of the Insurance Companies Act (the
Canadian Insurance Act) applicable to foreign property and casualty companies and to foreign life companies as well as relevant
provincial insurance acts. OSFI supervises the application of the Canadian Insurance Act.

PartnerRe Bermuda and PartnerRe U.S. maintain sufficient assets, vested in trust at a Canadian financial institution, approved

by OSFI, to allow their branches to meet minimum statutory solvency requirements as required by the Act, the regulations made
under the Act and applicable guidelines issued by OSFI. Certain statutory information is filed with federal and provincial insurance
regulators in respect of both property and casualty and life business written by branches. This information includes, among other
things, a yearly business plan and an annual Financial Condition Testing (FCT) report from the Appointed Actuary of the branch
that tests the adequacy of the assets that are vested under various adverse scenarios or "stress tests". It is also necessary for an ORSA
to be prepared each year. Each branch is required to have a Chief Agent in Canada to act as its local representative.

PartnerRe Life Reinsurance Company of Canada (PartnerRe Canada) is a Canadian incorporated life reinsurer that is a
subsidiary of the Company and is domiciled in Canada. PartnerRe Canada is authorized to insure, in Canada, risks falling within the
classes of Life and Accident and Sickness, limited to the business of reinsurance.

PartnerRe Canada is required to maintain capital in Canada in a custodial account to meet minimum statutory solvency
requirements as required by the Canadian Insurance Act, its regulations and applicable guidelines issued by OSFI. Certain statutory
information is filed with OSFI in respect of the life business written by PartnerRe Canada. This information includes, among other
things, an annual business plan and FCT report from the Appointed Actuary of PartnerRe Canada that tests the adequacy of assets
under various scenarios or "stress tests". It is also necessary for an ORSA to be prepared each year.

Singapore

The Monetary Authority of Singapore (MAS) regulates insurance and reinsurance companies authorized in Singapore,

including PartnerRe Asia.

PartnerRe Asia is the principal reinsurance carrier for the Company’s business underwritten in the Asia Pacific region,
conducting general insurance business as a reinsurer and life insurance business as a reinsurer. PartnerRe Asia has an established
operating branch in Labuan which is subject to regulation by the Labuan Financial Services Authority.

Significant aspects of the Singapore reinsurance regulatory framework and requirements include the following:

Solvency Requirements. As a licensed reinsurer, PartnerRe Asia is required to maintain minimum capital of SGD25 million. In

addition, PartnerRe Asia is required to establish and maintain separate insurance funds for Singapore and offshore policies. The

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solvency requirement in respect of each insurance fund shall at all times be not less than the total risk requirement of the fund
(determined by reference to three components being insurance risks, asset risks and operational risks). The MAS is entitled to
require that a licensed reinsurer holds assets of a certain type and prescribed value in Singapore.

Reporting Requirements. PartnerRe Asia must file and submit annual audited financial statements in accordance with

Singapore Financial Reporting Standards and related reports to the Accounting and Corporate Regulatory Authority (ACRA)
together with an annual return of certain core corporate information. Changes to core corporate information during the year must
also be notified to ACRA. These requirements are in addition to the quarterly and annual regulatory returns required to be filed with
the MAS.

Dividends and Distribution. Dividends are generally declared from unappropriated profits. The declaration of a dividend by

PartnerRe Asia may be subject to relevant conditions and requirements being met as specified under the Insurance Act (Singapore)
and its associated regulations. Any proposed reduction of capital or redemption of preference shares requires the prior approval of
the MAS. In addition to the above, the laws and initiatives issued by the MAS regarding Corporate Governance, Outsourcing, Cyber
Security, Technology Risk Management and Environmental Risk Management currently impact, or may impact, Partner Re Asia in
the future.

Taxation of the Company and its Subsidiaries

The following summary of the taxation of PartnerRe and its subsidiaries, PartnerRe Bermuda, PartnerRe Europe, PartnerRe

Asia, and PartnerRe U.S. Corporation and its subsidiaries (collectively PartnerRe U.S. Companies) is based upon current law.
Legislative, judicial or administrative changes may be forthcoming that could affect this summary.

Certain subsidiaries, branch offices and representative offices of the Company are subject to taxation related to operations in

Brazil, Canada, Chile, China, France, Hong Kong, Ireland, Labuan, Mexico, Singapore, Switzerland and the U.S. The discussion
below covers the significant locations for which the Company or its subsidiaries are subject to taxation.

Bermuda

PartnerRe Ltd. and PartnerRe Bermuda have each received from the Bermuda Minister of Finance an assurance under The
Exempted Undertakings Tax Protection Act, 1966 of Bermuda, that in the event that any legislation is enacted in Bermuda imposing
tax computed on profits or income, or computed on any capital asset, gain or appreciation, or any tax in the nature of estate duty or
inheritance tax, then the imposition of any such tax shall not be applicable to PartnerRe Ltd. or PartnerRe Bermuda or to any of their
operations or the shares, debentures or other obligations of PartnerRe Ltd. or PartnerRe Bermuda until March 2035. These
assurances are subject to the provision that they are not construed to prevent the application of any tax or duty to such persons as are
ordinarily resident in Bermuda (PartnerRe Ltd. and PartnerRe Bermuda are not currently so designated) or to prevent the application
of any tax payable in accordance with the provisions of The Land Tax Act, 1967 of Bermuda or otherwise payable in relation to the
property leased to PartnerRe Bermuda.

Canada

The Canadian life branch of PartnerRe Bermuda, the Canadian non-life branch of PartnerRe U.S. and PartnerRe Canada are
subject to Canadian taxation on their profits. Their profits are taxed at the federal level, as well as the Ontario provincial level at a
combined rate of 26.5% in 2020. See also the discussion of taxation in the United States below.

France

The French branch of PartnerRe Europe is conducting business in and is subject to taxation in France. The tax on corporate

profits in France has been 32.02%.

The French Bill for 2018, enacted on December 30, 2017, includes a graduated decrease of the statutory corporate income tax
rate from 34.43% in 2017 to 25.83% in 2022, including all applicable surtaxes. See also the discussion of taxation in Ireland below.

Ireland

The Company’s Irish subsidiaries, PartnerRe Holdings Europe Limited, PartnerRe Europe, PartnerRe Ireland and PartnerRe

Ireland Finance dac conduct business in and are subject to taxation in Ireland. Profits of an Irish trade or business are subject to Irish
corporation tax at the rate of 12.5%, whereas profits arising from other than a trade or business are taxable at the rate of 25%. The
Swiss, U.S. and French branches and subsidiaries of PartnerRe Europe are subject to taxation in Ireland at the Irish corporation tax
rate of 12.5%. However, under Irish domestic tax law, the amount of tax paid in Switzerland, U.S. and France can be credited or
deducted against the Irish corporation tax. As a result, the Company does not expect to incur significant taxation in Ireland with
respect to the Swiss, U.S. and French branches.

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Singapore

The Company’s Singapore subsidiary, PartnerRe Asia, is subject to corporate taxation in Singapore at the rate of 10% on
profits arising from onshore and offshore business. However, tax exemptions may apply to qualifying profits derived from certain
lines of business.

Switzerland

The Swiss branch of PartnerRe Europe is subject to Swiss taxation, mainly on profits and capital. To the extent that net profits
are generated, profits are taxed at a rate of 21.15%. The tax reform that has been passed and enacted in 2019 in the canton of Zurich
following the federal tax reform includes a decrease of the statutory corporate income tax rate from 21.15% to 19.7% in 2021. The
branch pays capital taxes at a rate of approximately 0.17% on its imputed branch capital calculated according to a procured taxation
ruling. See also the discussion of taxation in Ireland above.

United States

PartnerRe U.S. Companies transact business in and are subject to taxation in the U.S. The Canadian non-life branch of
PartnerRe U.S. conducts business in Canada and is subject to taxation in Canada as discussed above. Under U.S. tax law, the
amount of tax paid in Canada by the Canadian non-life branch of PartnerRe U.S. can be credited or deducted against U.S.
corporation tax.

In addition, PartnerRe Europe and PartnerRe Ireland write certain U.S. and Latin American business through their U.S.
reinsurance intermediaries. As a result, PartnerRe Europe and PartnerRe Ireland are deemed to be engaged in a U.S. trade or
business and thus are subject to taxation in the U.S. Finally, PartnerRe Capital Investments LLC (PCIC) and PLRA are also U.S.
corporations subject to taxation in the U.S. The current statutory rate of tax on corporate profits in the U.S. is 21%. See the
discussion of U.S. branch taxation below and the discussion of taxation in Ireland above.

On this basis, the Company does not expect that it and its subsidiaries, other than the PartnerRe U.S. Companies, PartnerRe

Europe and PartnerRe Ireland for business conducted through their U.S. intermediaries, PCIC, PLRA, and the 953(d) electing
reinsurer, will be required to pay U.S. corporate income taxes (other than withholding taxes as described below). However, because
there is considerable uncertainty as to the activities that constitute a trade or business in the U.S., there can be no assurance that the
IRS will not contend successfully that the Company or its non-U.S. subsidiaries (other than PartnerRe Europe, PartnerRe Ireland,
and the 953(d) electing reinsurer) are engaged in a trade or business in the U.S. The maximum federal tax rate is currently 21% for a
corporation’s income that is effectively connected with a trade or business in the U.S. In addition, U.S. branches of foreign
corporations may be subject to the branch profits tax, which imposes a tax on U.S. branch after-tax earnings that are deemed
repatriated out of the U.S., for a potential maximum effective federal tax rate of approximately 45% on the net income connected
with a U.S. trade or business.

Foreign corporations not engaged in a trade or business in the U.S. are subject to U.S. income tax, effected through

withholding by the payer, on certain fixed or determinable annual or periodic gains, profits and income derived from sources within
the U.S. as enumerated in Section 881(a) of the Internal Revenue Code, such as dividends and interest on certain investments.

The U.S. imposes a base erosion and anti-abuse tax (BEAT) on certain payments from entities subject to U.S. tax to related

foreign persons, also referred to as base erosion payments. Base erosion payments generally include any amounts that are
deductible, including reinsurance premiums ceded to a related foreign person. Entities that meet certain thresholds are required to
pay the minimum BEAT. The minimum BEAT is based on the excess of a percentage of the entities’ modified taxable income over
its regular tax liability for the year. Modified taxable income is the taxpayer’s regular taxable income increased by any base erosion
tax benefit with respect to any "base erosion payment" and an adjustment for the taxpayer’s net operating loss deduction, if any. The
modified taxable income is taxed at 5% in 2018, 10% in 2019 through 2025, and 12.5% thereafter. This provision generally applies
to entities that are subject to US net income tax with average annual gross receipts of at least $500 million and that have made
foreign related-party deductible payments totaling 3% or more of the entities’ total deductions for the year.

The U.S. also imposes an excise tax on insurance and reinsurance premiums paid to foreign insurers or reinsurers with respect
to risks located in the U.S. The rate of tax applicable to reinsurance premiums paid to PartnerRe Bermuda is 1% of gross premiums.

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Legal Proceedings

The Company’s reinsurance subsidiaries, and the insurance and reinsurance industry in general, are subject to litigation and

arbitration in the normal course of their business operations. In addition to claims litigation and disputes, the Company and its
subsidiaries may be subject to lawsuits and regulatory actions in the normal course of business that do not arise from or directly
relate to claims on reinsurance contracts. This category of business litigation typically involves, among other things, allegations of
underwriting errors or omissions, employment claims or regulatory activity. While the outcome of business litigation cannot be
predicted with certainty, the Company will dispute all allegations against the Company and/or its subsidiaries that management
believes are without merit.

For information regarding legal proceedings, see Note 15(d) to the Consolidated Financial Statements in Item 18 of this report.

C. Organizational Structure

The Company's Class A common shares are owned by EXOR Nederland N.V., whose ultimate parent is EXOR N.V., an
investment holding company listed on the Milan Stock Exchange. The Company has also issued Class B shares to certain executives
and directors of the Company.

In addition to the Company, significant investments of EXOR N.V. include Stellantis N.V. (formerly Fiat Chrystler

Automobiles), CNH Industrial, Ferrari and Juventus Football Club.

The Company’s principal operating subsidiaries at December 31, 2020 are as follows:

Partner Reinsurance Company Ltd.

Partner Reinsurance Europe SE

Partner Reinsurance Company of the U.S.

Partner Reinsurance Asia Pacific Pte. Ltd.

Jurisdiction

Bermuda

Ireland

New York, United States

Singapore

Percentage Interest Held

100%

See History and Development of the Company section above and also Share Ownership section in Item 6.E and Notes 1, 10

and 13 to the Consolidated Financial Statements in Item 18 of this report for further details.

See Exhibit 8.1 to this annual report on Form 20-F for a listing of the Company’s subsidiaries.

D. Property, Plants and Equipment

The Company leases office space in Pembroke (Bermuda) where its principal executive offices are located. Additionally, the

Company leases office space in various other locations, principally in Dublin, Stamford (Connecticut, U.S.), Toronto, Paris,
Singapore and Zurich.

The Company directly holds certain real estate investments located in London, U.K. Refer to Note 2(g) to the Consolidated

Financial Statements in Item 18 of this report for further details.

ITEM 4.A UNRESOLVED STAFF COMMENTS

None.

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ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS

The financial information for the years ended December 31, 2020, 2019 and 2018 presented below is based on, or has been
derived from, and should be read in conjunction with, the U.S. GAAP Consolidated Financial Statements presented in Item 18 of
this report. The financial results below are presented in U.S. dollars as the reporting currency.

The discussion below includes forward-looking statements, which, although based on assumptions that we consider
reasonable, are subject to risks and uncertainties which could cause actual events or conditions to differ materially from those
expressed or implied by the forward-looking statements. See G. Safe Harbor section below and Risk Factors in Item 3 of this report
for a discussion of risks and uncertainties.

Executive Overview

The Company is a leading global reinsurer, with a broadly diversified and balanced portfolio of traditional reinsurance risks

and capital markets risks. The Company has three segments: P&C, Specialty, and Life and Health (see Results by Segment below).

The Company is in the business of assessing and assuming risk for an appropriate return. The Company creates value through

its ability to understand, evaluate, diversify and distribute risk. The Company's strategy is formulated on a capital-based risk appetite
and the selected risks that management believes will allow the Company to meet its goals for appropriate profitability and risk
management within that appetite. Management believes that this construct allows the Company to balance the cedant’s need for
confidence of claims payment with shareholder needs for an appropriate return on capital.

The Company’s long-term objective is to provide reinsurance capacity to clients and manage a portfolio of diversified risks

that will create shareholder value. The Company’s profitability in any particular period can be significantly affected by large
catastrophic or other large losses and the impact of changes in interest rates, credit spreads and equity markets on the fair value of
investments (see Key Factors Affecting Year-over-Year Comparability below). Accordingly, the Company’s performance during
any particular period is not necessarily indicative of its performance over the longer-term reinsurance cycle.

Non-life Reinsurance Operations

The Company generates its non-life reinsurance revenue from premiums. Premium rates and overall terms and conditions vary

depending on market conditions. The Company writes a large majority of its non-life business on a treaty basis with a majority
renewing on January 1. The remainder of this business renews at other times during the year. In addition to treaty business, the
Company writes direct and facultative business which renews throughout the year.

Pricing cycles are driven by supply of capital in the industry and demand for reinsurance and insurance and other risk transfer

products. The reinsurance business is also influenced by several other factors, including variations in interest rates and financial
markets, changes in legal, regulatory and judicial environments, loss trends, inflation, foreign exchange rate changes and general
economic conditions.

In an increasingly competitive market environment, and considering increased regulatory and rating agency expectations, the

Company continues to focus on its risk management strategy, financial strength, underwriting selection process and global presence.
The Company removes the volatility associated with those risks from the client and then manages those risks and the risk-related
volatility. The Company's global presence and broad product offerings allows it to achieve portfolio diversification of risks.

A key challenge facing the Company is successfully managing risk through all phases of the reinsurance cycle. The Company

believes that its long-term strategy of closely monitoring and being selective in the business that it writes, and maintaining the
diversification and balance of its portfolio, will optimize returns over the reinsurance cycle. Individual businesses and markets have
their own unique characteristics and are at different stages of the reinsurance pricing cycle at any given point in time. Management
believes the Company has an appropriate portfolio diversification by product, geography, type of business, length of tail and
distribution channel. Further, management believes that this diversification, in addition to the financial strength of the Company and
its strong global franchise, will help to mitigate cyclical declines in underwriting profitability.

The non-life reinsurance market has historically been highly cyclical in nature as evidenced by hard and soft markets. For

many years, with the exception of lines and markets impacted by specific catastrophic or large loss events, the Company has
experienced soft market conditions with either general decreases, no changes, or marginal improvements, in pricing and
profitability. Price increases were experienced in loss exposed lines of business following losses incurred in 2019. During 2020, the
COVID-19 pandemic led to price increases for many of the Company's lines of business. Across the industry, expected future price
increases resulting from the pandemic could lead to an influx of new capital, and this availability of capital could create uncertainty
around continued upward pricing momentum.

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Life and Health Reinsurance Operations

The Company’s Life and Health segment derives revenues primarily from premiums. Within the Life and Health segment, the

Company writes mortality, morbidity and longevity products. The Life and Health business provides the Company with
diversification benefits and balance to its portfolio as they are generally not correlated to the Company’s Non-life business.

The profitability of the Life and Health business mainly depends on the volume and amount of death and disability claims
incurred, medical claims and expenses, and the ability to adequately price the risk the Company assumes. The majority of the life
premium arises from long-term in-force contracts. The life reinsurance policies are often in force for the remaining lifetime of the
underlying individuals insured, with premiums earned typically over a period of 10 to 30 years. The volume of the business may be
reduced each year by lapses, voluntary surrenders, death of insureds and recaptures by ceding companies. While death claims are
reasonably estimated over a period of many years, claims become less predictable over shorter periods and can fluctuate
significantly from period to period. Similarly, while the volume of medical claims can be predicted to a certain extent, the amount of
claims and expenses depends on various factors, primarily healthcare inflation rates, driven by a shift towards the older population,
reliance on expensive medical equipment and technology and changes in demand for healthcare services over time. Compared to the
Non-life markets, the Life and Health reinsurance markets are more concentrated, with fewer market participants.

During 2020, the Company continued to execute its Growth Strategy in the Life and Health segment by continuing to increase

new business volume in life business and hiring additional employees to support further growth in this segment.

Industry Environment

The reinsurance environment has become more and more complex, as traditional forms of risk are increasingly exposed to

globalization and urbanization and as new forms of risks have developed (such as cyber, geopolitical and supply chain). The need
for reinsurance is further supported by factors such as primary insurers' needs to reduce volatility in earnings and a high protection
gap in the non-life and life and health reinsurance and emerging markets.

Strategic Initiatives

The Company's strategy is to focus on reinsurance of business written by our cedants, and not compete with our clients
through directly writing or assuming insurance risks. The Company is focused on striking the right balance between top down and
bottom up risk selection by broadening scope and client penetration for well-understood, efficient risk classes and keeping a
selective approach for less predictable risk patterns. Among the Company's strategic priorities are growing the non-life footprint
with selected clients and brokers, using retrocession to enhance balance sheet strength, including retrocession to third party capital
vehicles, and growing the Life and Health book in targeted product segments and geographies. The Company will continue to
execute its Growth Strategy in the Life and Health segment by continuing to increase new business volume and leveraging new
talent hired to support further growth in this segment.

Reinsurance Market Outlook

The Company believes that overall, reinsurance will broadly remain a cyclical market, albeit of less amplitude, primarily as a

result of capital inflows and outflows, and that the cycles will become more specific and local, with less global amplitude.

The outlooks for 2021 for each of the Company's segments are summarized as follows:

2021 P&C Segment Outlook

During the January 1, 2021 renewals, the Company observed improving pricing trends in most lines of business. The market
improvements were driven by primary rate increases in U.S. Casualty, Property Catastrophe rates (particularly in North America)
and the assumed retrocession market. Due to capital capacity entering and leaving the industry, it is not possible to forecast how
long the current pricing conditions will stay.

2021 Specialty Segment Outlook

During the January 1, 2021 renewals, the Company generally observed improved pricing in most lines of business within the
Specialty segment (particularly in the engineering, aviation, energy, marine and property lines of business). Due to capital capacity
entering and leaving the industry, it is not possible to forecast how long the current pricing conditions will stay.

2021 Life and Health Outlook

The January 1, 2021 renewal for life business is not significant, as only a limited portion of the premiums written associated

with the life portfolio is short-term business. While COVID-19 did result in slowing of reinsurance bidding activity in 2020 in

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certain regions such as North America, we expect a return to normal levels in 2021. Management expects moderate growth in the
Company’s life portfolio in 2021 assuming constant foreign exchange rates, mainly due to growth in Asia, Canada, Europe and the
United States. Pricing conditions are not expected to materially differ from 2020.

Investment Operations

The Company generates revenue from its investment portfolio through net investment income, including interest on fixed

maturities and dividends on equity securities, interest in earnings of equity method investments, and realized and unrealized gains
on investments.

For the Company’s investment risks, which include public and private markets and real estate investments, diversification of

risk is critical to achieving the risk and return objectives of the Company.

From a risk management perspective, the Company allocates its invested assets into two categories: liability funds and capital

funds. The Company’s investment policy distinguishes between liquid, high quality (investment grade) assets that support the
Company’s liabilities, and the more diversified, higher risk asset classes that are allowed within the Company’s capital funds.

Liability funds represent invested assets supporting the net reinsurance liabilities, and are invested primarily in investment-
grade fixed maturity securities and cash and cash equivalents. The preservation of liquidity and protection of capital are the primary
investment objectives for these assets. The portfolio managers are required to adhere to investment guidelines as to minimum ratings
and issuer and sector concentration limitations. Liability funds are invested in a way that generally matches them to the
corresponding liabilities (referred to as asset-liability matching) in terms of both duration and major currency composition to
provide the Company with a natural hedge against changes in interest and foreign exchange rates. In addition, the Company utilizes
certain derivatives to further protect against changes in interest and foreign exchange rates. Liability funds represented
approximately 55% and 53% of the total invested assets at December 31, 2020 and 2019, respectively.

Capital funds represent total capital of the Company, which includes shareholders' equity and debt liabilities, and are invested

in a diversified portfolio with the objective of maximizing investment return, subject to prudent risk constraints. Capital funds
contain most of the asset classes typically viewed as offering a higher risk and higher return profile, subject to risk assumption and
portfolio diversification guidelines which include issuer and sector concentration limitations. Capital funds may be invested in
investment grade and below investment grade fixed maturity securities, publicly listed and private equities, bond and loan
investments, real estate investments, structured credit and certain other specialty asset classes. Capital funds represented
approximately 45% and 47% of the total invested assets at December 31, 2020 and 2019, respectively.

While there will be periods where such investments may earn less than the risk-free rate of return, or potentially produce
negative results, the Company believes the rewards for assuming these risks in a disciplined and measured way will produce a
positive excess return to the Company over time. Additionally, since a portion of our investment risks are not fully correlated with
the Company’s reinsurance risks, this increases the overall diversification of the Company’s total risk portfolio.

The Company employs a prudent investment philosophy. It maintains a high quality, well-balanced and liquid portfolio with
total investment return achieved through a combination of optimizing current investment income and pursuing capital appreciation.

The Company’s investment strategy allows for the use of certain derivative instruments, subject to strict limitations. The
Company may utilize various derivative instruments, such as treasury note and equity futures contracts, credit default swaps, foreign
currency option contracts, equity option contracts, foreign exchange forward contracts, total return and interest rate swaps,
insurance-linked securities, and to-be-announced mortgage-backed securities (TBAs) for the purpose of managing and hedging
currency risk, market exposure and portfolio duration, hedging certain investments, mitigating the risk associated with underwriting
operations, or enhancing investment performance that would be allowed under the Company’s investment policy if implemented in
other ways. The use of financial leverage, whether achieved through derivatives or margin borrowing, requires approval from the
Board. At December 31, 2020, the Company had no significant financial leverage achieved through derivatives and no margin
borrowing has been approved by the Board.

The Company follows prudent investment guidelines through a strategy that seeks to maximize returns while managing

investment risk in line with the Company’s overall objectives of earnings stability and long-term book value growth. A key
challenge for the Company is achieving the right balance in changing market conditions. The Company regularly reviews the
allocation of investments to asset classes within its investment portfolio and allocates investments to those asset classes the
Company anticipates will outperform in the future, subject to limits and guidelines. Similarly, the Company reduces its exposure to
asset classes where returns are deemed unattractive. The Company may also lengthen or shorten the duration of its fixed maturity
portfolio in anticipation of changes in interest rates, or increase or decrease the amount of credit risk it assumes, depending on credit
spreads and anticipated economic conditions.

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In 2020, the Company's investment portfolio was impacted by decreases in worldwide risk-free rates and changes in portfolio

mix resulting in lower net investment income. If the current lower yield environment should persist, assuming constant foreign
exchange rates, Management expects similar but challenging levels of net investment income in 2021.

A. Operating Results

At December 31, 2020 and 2019, EXOR Nederland N.V. held 100% of the 100 million Class A shares of $0.00000001 par

value each for a total share capital of $1.00. The common shares are not listed. Accordingly, per share data is not considered
meaningful to present.

Key Factors Affecting Year-over-Year Comparability

The key factors affecting the year-over-year comparability of the Company’s net income or loss for the years ended December

31, 2020, 2019 and 2018 include the following:

• The effects of the COVID-19 pandemic and related economic impacts

• Other large catastrophic and large loss events impacting Non-life segment underwriting results

• Volatility in capital markets impacting investment results, and

• Foreign exchange rate fluctuations.

These factors, as well as other factors described below, may continue to affect our results of operations and financial condition
in the future. Each of these key factors is discussed further in the Review of Net Income or Loss section below for each of the years
ended December 31, 2020, 2019 and 2018.

Review of Net Income or Loss

The components of net income or loss for the years ended December 31, 2020, 2019 and 2018 are presented in the Company’s

Consolidated Statements of Operations, and in the breakdown by segment in Note 18 to the Consolidated Financial Statements, in
Item 18 of this report.

Management analyzes the Company’s net income or loss in three parts: underwriting result, investment result, and corporate

and other, which comprises the other components of net income or loss not allocated to the Company’s P&C, Specialty and Life and
Health segments.

The net income or loss for the years ended December 31, 2020, 2019 and 2018 was comprised as follows (in millions of U.S.

dollars):

Underwriting result

P&C

Specialty
Total Non-life
Life and Health (1)

Investment result

Corporate and other

Net income (loss)

2020

2019

2018

(72) $

(232)
(304) $

40 $

(60)
(20) $

(302) $

(19) $

839

1,352

(283)

254 $

(396)

937 $

(189)

142
(47)

(27)

(96)

(86)

(1) Underwriting result excludes net investment income allocated to Life and Health as part of the allocated underwriting result of

$68 million, $72 million and $66 million for the years ended December 31, 2020, 2019 and 2018, respectively. Allocated
underwriting result is the metric management uses to measure results for the segment, as described below.

The components of net income (loss), and changes for the years presented above, are described below.

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Underwriting Result

Underwriting result consists of technical result (which is net premiums earned less losses and loss expenses and acquisition
costs) and other income (loss), less other expenses that are attributable to the respective segment. Underwriting result is a primary
measure of underlying profitability for the Company’s core reinsurance operations, separate from the investment results, and is used
to manage and evaluate the Company's Non-life segments (P&C and Specialty). The Company believes that in order to enhance the
understanding of its profitability, it is useful for our shareholders and other users of this report to evaluate the components of net
income or loss separately and in the aggregate. Underwriting result should not be considered a substitute for net income or loss and
does not reflect the overall profitability of the business, which is also impacted by investment results and other items included in
Corporate and other above and discussed in more detail below in the Corporate and Other section.

Underwriting result, a key factor affecting net income or loss, is discussed further below in the Results by Segment section for
each of the two Non-life segments (P&C and Specialty). Management measures results for the Life and Health segment on the basis
of the allocated underwriting result, which includes underwriting result and net investment income allocated to Life and Health
business, and is discussed further below in the Results by Segment section.

Results by Segment

The Company monitors the performance of its operations in three segments: P&C, Specialty and Life and Health. See Note 18

to the Consolidated Financial Statements included in Item 18 of this report for a description of the Company’s segments, a
discussion on how the Company measures its segment results (including definitions of loss ratio, acquisition ratio, technical ratio,
other expense ratio and combined ratio) and a breakdown of net income or loss, including underwriting results by segment, for each
of the years ended December 31, 2020, 2019 and 2018.

See results for each of the segments below for discussions on factors impacting net income or loss as it relates to the

Company's underwriting results for each of the years ended December 31, 2020, 2019 and 2018. Details of Other income and Other
expenses are discussed in the Corporate and Other section below.

In addition to the information presented below, see also Note 18 to the Consolidated Financial Statements in Item 18 of this
report for a breakdown of Company's net income, including results by segment, and for details of combined ratios for the Non-life
segments for the years ended December 31, 2020, 2019 and 2018.

The effects of the COVID-19 pandemic and related economic impacts

The COVID-19 pandemic and the related economic impact is ongoing, and there continues to be significant uncertainty
surrounding the full extent of the impact. The Company incurred $397 million of underwriting losses, net of retrocession and
reinstatement premiums, as a direct result of COVID-19 and the related effects of the economic impact for the year ended December
31, 2020, with the majority of the losses classified as incurred but not reported reserves. These losses are attributable to business
interruption and event cancellation related coverages, credit exposures in financial risks lines, and life and health business.

As discussed more fully in Item 3.D – Risk Factors, there remains significant uncertainty related to the full extent of

COVID-19 losses. For example, a longer or more severe recession could increase the probability of losses. There are also potential
legislative, regulatory and judicial actions that create significant uncertainty with respect to policy coverage and other issues. We
continue to actively monitor information received from or reported by clients, brokers, industry actuaries, regulators, courts and
others, and to assess that information in the context of our own portfolio.

The impact of COVID-19 on the Company’s underwriting results by segment for the year ended December 31, 2020 was as

follows (in millions of U.S. dollars, except ratios):

P&C segment

Specialty
segment

Total Non-life

Life & Health
segment

Total

160

211

371

5.1 %

11.2 %

7.3 %

n/a

397

n/a

COVID-19 related losses

Impact on combined ratio

n/a: Not applicable

Non-life Results

The Non-life underwriting results for 2020, 2019 and 2018 were largely driven by premiums earned reduced for losses and
loss expenses (including the impacts of COVID-19 described above, other large catastrophic and large loss events and net prior
years' reserve development) and also reduced for acquisition costs, as more fully described below.

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Other large catastrophic and large loss events, excluding COVID-19

As the Company’s reinsurance operations are exposed to low-frequency and high-severity risk events, some of which are
seasonal, results for certain periods may include unusually low loss experience, while results for other periods may include modest
or significant loss experience driven by catastrophic losses. The Company generally considers losses greater than $35 million, net of
retrocession and reinstatement premiums, to be large catastrophic or large loss events.

The impact of large catastrophic and large losses, excluding the effects of COVID-19 described above, on the Company’s
underwriting results for the years ended December 31, 2020, 2019 and 2018 was as follows (in millions of U.S. dollars, except
ratios):

2020

2019

P&C
segment

Specialty
segment

Total
Non-life

P&C
segment

Specialty
segment

Total
Non-life

P&C
segment

2018 (1)
Specialty
segment

Total
Non-life

Large catastrophic and large losses

$ 47

$ 8

$ 55

$ 258

$ 300

$ 382

$ 386

Impact on combined ratio

1.5 % 0.4 % 1.1 % 8.4 %

2.1 %

5.9 % 15.1 %

0.2 %

9.0 %

(1) In 2018, losses related to Hurricane Florence and Typhoon Trami were individually less than $35 million each, but have been
included in the large catastrophic and large losses total above as the losses combined were greater than $35 million based on
best estimates as of December 31, 2018.

The large catastrophic and large losses, net of retrocession and reinstatement premiums, were comprised as follows:

•

2020: $55 million related to Hurricane Laura

2019: $258 million related to Typhoons Hagibis and Faxai and Hurricane Dorian and $42 million related to a large aviation
loss

2018: $176 million related to Typhoons Jebi and Trami and Hurricanes Florence and Michael and $210 million related to
California Wildfires

Losses and loss expenses for 2020, 2019 and 2018 were also impacted by non-life prior years' reserve development. Non-life

prior years' reserve was $71 million adverse (1.4 points on the combined ratio) for 2020, $57 million favorable (1.1 points on the
combined ratio) for 2019 and $249 million favorable (5.8 points on the combined ratio) for 2018. See Note 7(a) to the Consolidated
Financial Statements in Item 18 of this report for a further discussion of the reserve development related to prior accident years.

See results for each of the P&C and Specialty segments below for further details of Non-life underwriting results for each of

the years ended December 31, 2020, 2019 and 2018.

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P&C Segment

The components of underwriting result, including technical result, which is calculated as net premiums earned less losses and
loss expenses and acquisition costs, and the corresponding ratios (which are calculated as a percentage of net premiums earned) for
the P&C segment for the years ended December 31, 2020, 2019 and 2018 were as follows (in millions of U.S. dollars, except
ratios):

Gross premiums written

Premiums ceded

Net premiums written

Net premiums earned

Losses and loss expenses

Acquisition costs

Technical result

Other (loss) income
Other expenses (1)
Underwriting result

Loss ratio

Acquisition ratio

Technical ratio

Other expense ratio

Combined ratio

2020

2019

2018

3,442

(398)

3,044

3,163

(2,389)

(784)

(10)

(1)

(61)

(72)

75.5 %

24.8

100.3 %

1.9

102.2 %

3,579

(277)

3,302

3,071

(2,167)

(783)

121

(1)

(80)

70.6 %

25.5

96.1 %

2.6

98.7 %

3,015

(293)

2,722

2,535

(2,073)

(606)

(144)

(75)

(189)

81.8 %

23.9

105.7 %

3.0

108.7 %

(1) The Company allocates certain other expenses that vary with business written by its operating segments. See Other expenses in

Corporate and Other section below.

Technical and underwriting results and related ratios

The P&C underwriting and technical results for 2020, 2019 and 2018 were largely driven by premiums earned reduced for

losses and loss expenses, and, to a lesser extent, acquisition costs.

2020 compared to 2019

The decreased technical result (and the corresponding increase in the technical ratio) in 2020 compared to 2019 was largely

driven by a higher loss ratio. The decreased underwriting result (and a corresponding increase in the combined ratio) was driven by
deterioration in the technical result and ratio, partially offset by lower other expenses and expense ratio.

2019 compared to 2018

The increased technical result (and the corresponding decrease in the technical ratio) in 2019 compared to 2018 was largely

driven by an increase in net premiums earned and a lower loss ratio, partially offset by higher acquisition costs. The increased
underwriting result (and a corresponding decrease in the combined ratio) was driven by the improvement in the technical result and
ratio, and, to a lesser extent, a decrease in the other expense ratio. The underwriting result was also impacted by a reduction in Other
income in 2019 compared to 2018, as the Company recognized a $29 million gain on commutation of the Paris Re Reserve
Agreement in 2018 (see also Note 7(a) to the Consolidated Financial Statements in Item 18 for further details).

See Corporate and Other section below for further details on Other expenses. The changes in premiums written and earned,

losses and loss expenses and acquisition costs are described further below.

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Premiums

The P&C segment represented 48%, 48% and 47% of total net premiums written in 2020, 2019 and 2018, respectively.

Business reported in this segment is, to a significant extent, originally denominated in foreign currencies and is reported in U.S.
dollars. The U.S. dollar can fluctuate significantly against other currencies and this should be considered when making year-over-
year comparisons. See Corporate and Other—Foreign exchange movements section below for further details of movements in
foreign exchange.

2020 compared to 2019

The decrease in gross and net premiums written was driven primarily by premium exposure adjustments resulting from the

economic impact of COVID-19 and the Company's focus on portfolio optimization throughout 2020, which particularly impacted
the motor line of business. Net premiums written included a reduction for premiums ceded, which increased over the prior year. The
increase in net premiums earned was driven by premiums earned on prior underwriting years, which more than offset the impact of
lower net premiums written in the current year.

2019 compared to 2018

The increase in gross and net premiums written and net premiums earned was driven primarily by new business written and
renewal increases in the casualty, catastrophe and motor lines of business. Net premiums written and earned included a reduction for
premiums ceded, which were lower than the prior year.

Losses and loss expenses

Losses and loss expenses include the impacts of COVID-19 and other large catastrophic and large losses described above, as

well as net prior years' reserve development referred to above. See Note 7 to the Consolidated Financial Statements in Item 18 of
this report for further details of losses and loss expenses and prior years' reserve development.

2020 compared to 2019

The increase in losses and loss expenses and loss ratio was primarily driven by COVID-19 related losses. Large catastrophic

losses related to Hurricane Laura in 2020 were lower than large catastrophic losses related to Typhoons Hagibis and Faxai and
Hurricane Dorian in 2019, however this was offset by the impact of an aggregation of mid-sized catastrophic and man-made losses
during 2020. The increase in 2020 was also, to a lesser extent, driven by a lower level of favorable prior years' reserve development
of $65 million in 2020 as compared to $136 million in 2019.

2019 compared to 2018

The increase in losses and loss expenses was primarily driven by growth in business. This was partially offset by a decrease in

attritional losses in the current accident year, a lower level of large catastrophic and large losses, and, to a lesser extent, a higher
level of favorable prior years' reserve development as compared to 2018. This resulted in a lower loss ratio compared to 2018.

Acquisition costs

2020 compared to 2019

Acquisition costs were flat compared to 2019, and the related acquisition cost ratio decreased, driven by a lower level of

experience refund accruals related to U.S. health business.

2019 compared to 2018

The increase in acquisition costs was in line with an increase in net premiums earned. The related acquisition cost ratio

increased compared to 2018, driven by an increased level of experience refund accruals related to U.S. health business.

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Specialty Segment

The components of underwriting result, including technical result, which is calculated as net premiums earned less losses and
loss expenses and acquisition costs, and the corresponding ratios, which are calculated as a percentage of net premiums earned, for
the Specialty segment for the years ended December 31, 2020, 2019 and 2018 were as follows (in millions of U.S. dollars, except
ratios):

Gross premiums written
Premiums ceded
Net premiums written
Net premiums earned
Losses and loss expenses
Acquisition costs
Technical result
Other expenses (1)
Underwriting result
Loss ratio
Acquisition ratio
Technical ratio
Other expense ratio
Combined ratio

$
$

2020

2019

2018

$
$

1,935
(153)
1,782
1,892
(1,628)
(470)
(206)
(26)
(232)
86.0 %
24.8
110.8 %
1.4
112.2 %

$
$

2,213
(76)
2,137
1,987
(1,496)
(523)
(32)
(28)
(60)
75.3 %
26.3
101.6 %
1.4
103.0 %

2,050
(180)
1,870
1,767
(1,096)
(502)
169
(27)
142
62.0 %
28.4
90.4 %
1.5
91.9 %

(1) The Company allocates certain other expenses that vary with business written by its operating segments. See Other expenses in

Corporate and Other section below.

Technical and underwriting results and related ratios

The Specialty underwriting and technical results for 2020, 2019 and 2018 were largely driven by premiums earned reduced for

losses and loss expenses, and, to a lesser extent, acquisition costs.

2020 compared to 2019

The decrease in the technical result (and the corresponding increase in the technical ratio) in 2020 compared to 2019 was

largely driven by an increase in the loss ratio, partially offset by a decrease in acquisition ratio. The decrease in the underwriting
result (and a corresponding increase in the combined ratio) was driven by the decrease in the technical result.

2019 compared to 2018

The decrease in the technical result (and the corresponding increase in the technical ratio) in 2019 compared to 2018 was

largely driven by an increase in the loss ratio, partially offset by an increase in net premiums earned. The decrease in the
underwriting result (and a corresponding increase in the combined ratio) was driven by the decrease in the technical result.

The changes in premiums written and earned, losses and loss expenses and acquisition costs are described further below.

Premiums

The Specialty segment represented 28%, 31% and 32% of total net premiums written in 2020, 2019 and 2018, respectively.

2020 compared to 2019

The decrease in gross and net premiums written and earned was driven primarily by premium exposure adjustments resulting

from the economic impact of COVID-19, which particularly impacted the aviation line of business, and the Company's focus on
portfolio optimization throughout 2020, including run-off of the Lloyd's net quota share portfolio. Net premiums written and earned
included a reduction for premiums ceded, which increased over the prior year.

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2019 compared to 2018

The increase in gross and net premiums written and earned was driven primarily by new business written and renewal

increases in the financial risks, aviation and space, energy and property lines of business, partially offset by cancellations and
renewal changes in other lines. Net premiums written and earned included a reduction for premiums ceded, which were lower than
the prior year.

Losses and loss expenses

Losses and loss expenses include the impacts of COVID-19 and other large catastrophic and large losses described above, as

2020 compared to 2019

The increase in losses and loss expenses was primarily driven by COVID-19 related losses and higher adverse prior years'

reserve development of $136 million compared to $79 million in 2019. This was partially offset by an improvement in the current
accident year attritional loss ratio.

2019 compared to 2018

The increase in losses and loss expenses compared to 2018 was primarily attributable to adverse prior years' reserve

development in 2019, as well as growth in the business.

See Note 7 to the Consolidated Financial Statements in Item 18 of this report for further details of losses and loss expenses and

prior years' reserve development.

Acquisition costs

2020 compared to 2019

The decrease in acquisition costs was in line with a decrease in net premiums earned. The decrease in acquisition cost ratio

was primarily driven by a decrease in loss sensitive commissions and changes in the mix of business.

2019 compared to 2018

The increase in acquisition costs was in line with an increase in net premiums earned. The decrease in acquisition cost ratio

during 2019 as compared to 2018 was primarily driven by a decrease in loss sensitive commissions primarily in financial risks,
multiline and energy lines of business.

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Life and Health Segment

The Company provides reinsurance of life and health related risks including mortality, morbidity and longevity. Reinsurance

coverage is provided to primary life insurers and pension funds to protect against individual and group mortality and disability risks.
The Company also provides reinsurance coverage to employer sponsored pension schemes and primary life insurers who provide
pensions or issue annuity contracts offering long-term retirement benefits to consumers, who, in turn, seek protection against
outliving their financial resources.

Mortality and morbidity business is written primarily on a proportional basis through treaty agreements and is subdivided into

death and disability covers (with various riders), term assurance and critical illness (TCI) and GMDB. The Company also writes
certain treaties on a non-proportional basis.

Longevity business is written on a long-term, proportional basis. The Company’s longevity portfolio is subdivided into
standard and non-standard annuities. The non-standard annuities are sold by insurance companies to consumers with aggravated
health conditions and are usually medically underwritten on an individual basis.

The components of the allocated underwriting result for the Life and Health segment for the years ended December 31, 2020,

2019 and 2018 were as follows (in millions of U.S. dollars):

Gross premiums written
Premiums ceded
Net premiums written
Net premiums earned
Losses and loss expenses
Acquisition costs
Technical result
Other income (1)
Other expenses (2)
Underwriting result
Net investment income
Allocated underwriting result

2020

2019

2018

$
$

1,499 $
(24)
1,475 $
1,482 $
(1,318)
(102)
62 $
13
(73)
2 $
68
70 $

1,493 $
(23)
1,470 $
1,467 $
(1,263)
(149)
55 $
15
(69)
1 $
72
73 $

1,235
(24)
1,211
1,212
(1,025)
(129)
58
13
(51)
20
66
86

(1) Other income represents fee income on deposit accounted contracts and longevity swaps.
(2) The Company allocates certain other expenses that vary with business written by its operating segments. See Other expenses in

Corporate and Other section below.

Allocated underwriting result

The underwriting result for Life and Health is increased by net investment income allocated to this segment to determine
allocated underwriting result. See Investments Results section below for further details on net investment income. The Life and
Health underwriting and allocated underwriting results for 2020, 2019 and 2018 were largely driven by premiums earned reduced
for losses and loss expenses, and, to a much lesser extent, acquisition costs.

2020 compared to 2019

The underwriting result was flat, as the favorable impact of certain portfolio recaptures and positive experience in the
Company's longevity business was offset by the impact of COVID-19 related losses and higher expenses during 2020 to support
growth in the business. The decrease in allocated underwriting result was driven by a decrease in net investment income, driven by
lower reinvestment rates.

2019 compared to 2018

The decrease in allocated underwriting result was primarily driven by an increase in other expenses during 2019 as compared

to 2018, driven by higher expenses to support growth in the business and a higher annual incentive bonus payment to employees.
Growth in the business contributing to the allocated underwriting result was partially offset by adverse experience in the Company's
short-term life business.

The changes in premiums written and earned, losses and loss expenses, and acquisition costs are described further below.

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Premiums

The Life and Health segment represented 24%, 21% and 21% of total net premiums written in 2020, 2019 and 2018,

respectively. Business reported in this segment is, to a significant extent, originally denominated in foreign currencies and is
reported in U.S. dollars. The U.S. dollar can fluctuate significantly against other currencies and this should be considered when
making year-over-year comparisons. See Corporate and Other—Foreign exchange movements section below for further details of
movements in foreign exchange.

2020 compared to 2019

Gross and net premiums written and net premiums earned were flat during the year, primarily driven by growth in the

Company's longevity business, offset by decreases in short-term protection business.

2019 compared to 2018

The increases in gross and net premiums written and net premiums earned were primarily driven by growth in the longevity

business.

Losses and loss expenses

2020 compared to 2019

The increase in losses and loss expenses was primarily attributable to COVID-19 impacts and growth in longevity and long
term mortality business. In addition, while the Company reduced its short term life business, adverse development in this business
contributed to higher relative losses in 2020. This was partially offset by the favorable impact of recaptures of certain treaties in the
European region, which resulted in a net gain of $28 million recorded as a reduction to losses and loss expenses in 2020.

2019 compared to 2018

The increase in losses and loss expenses was primarily attributable to growth in the longevity business and increased losses

related to the Company's short-term life business.

Acquisition costs

2020 compared to 2019

Acquisition costs decreased during the year mainly due to changes in the mix of business.

2019 compared to 2018

Acquisition costs increased in line with increases in net premiums earned.

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Investment Result

Investment result consists of net investment income, net realized and unrealized investment gains or losses and interest in

earnings or losses of equity method investments. Net investment income primarily includes interest and amortization of premium
and discount on fixed maturities, short-term investments, cash and cash equivalents and certain other invested assets (including
corporate loans), dividend income and income distributions from equities and certain other invested assets, as well as investment
income on funds held, offset by investment expenses and withholding taxes. Net realized and unrealized investment gains or losses
primarily include amounts realized from sales and redemptions of the Company’s fixed maturities, short-term investments, equities
and other invested assets; changes in net unrealized investment gains or losses on these investments; and impairment losses on real
estate. 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 partnership interests.

The components of the investment result for the years ended December 31, 2020, 2019 and 2018 were as follows (in millions

of U.S. dollars):

Net investment income (1)
Net realized and unrealized investment gains (losses)

Interest in earnings of equity method investments

Total investment result

2020

2019

2018

361 $

449 $

454

887

839 $

1,352 $

416

(390)

(1) Includes amounts allocated to the Life and Health segment as presented in Results by Segment above.

Net Investment Income

Net investment income by asset type for the years ended December 31, 2020, 2019 and 2018 is included in Note 4(b) to the

Consolidated Financial Statements in Item 18 of this report and is summarized below (in millions of U.S. dollars):

Fixed maturities, short-term investments and cash and cash equivalents

Other invested assets

Equities, funds held and other

Investment expenses

Net investment income

2020 compared to 2019

2020

2019

2018

302 $
89

21
(51)
361 $

407 $

(39)

449 $

392

(29)

416

Net investment income decreased in 2020 compared to 2019 driven by the impact of lower reinvestment rates due to

significant decreases in worldwide risk-free rates in the first quarter of 2020.

2019 compared to 2018

Net investment income increased in 2019 compared to 2018 driven by decisions to re-balance certain assets into higher yield

per duration unit strategies, partially offset by higher investment expenses.

Net Realized and Unrealized Investment Gains (Losses)

The Company’s portfolio managers have a total return investment objective, achieved through a combination of optimizing
current investment income and pursuing capital appreciation. To meet this objective, it is often desirable to buy and sell securities to
take advantage of changing market conditions and to reposition the investment portfolios. Accordingly, recognition of realized gains
and losses is considered by the Company to be a normal consequence of its ongoing investment management activities. In addition,
the Company recognizes changes in fair value for substantially all of its investments as changes in unrealized investment gains or
losses in its Consolidated Statements of Operations. Realized and unrealized investment gains and losses are generally a function of
multiple factors, with the most significant being prevailing interest rates, credit spreads and equity market conditions.

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See Note 4(a) to the Consolidated Financial Statements in Item 18 of this report for details of realized investment gains and

losses and changes in unrealized investment gains and losses by investment type. Investment results for the years ended
December 31, 2020, 2019 and 2018 were significantly impacted by the volatility in the capital markets with the Company reporting
Net realized and unrealized investment gains or losses, included in net income or loss, as follows (in millions of U.S. dollars):

Net realized investment gains (losses)
Change in net unrealized investment gains (losses)
Impairment loss on investments in real estate
Net realized and unrealized investment gains (losses)

2020

2019

2018

16 $
444

(6)
454 $

251 $
639

(3)
887 $

(202)
(182)
(6)
(390)

The net realized and unrealized investment gains of $454 million in 2020 were driven by net realized and unrealized
investment gains of $245 million on fixed maturities and short-term investments and $189 million of net realized and unrealized
investment gains on equities. Gains on fixed maturities and short-term investments were primarily unrealized and driven by
decreases in worldwide risk free rates. Gains on equities were also primarily unrealized and were due to increases in worldwide
equity markets. Net realized and unrealized investment gains also included $26 million of gains on other invested assets, driven by
private equities. The $6 million impairment loss on investments in real estate was driven by a write-down in value of London-based
real estate investments directly owned by the Company.

The net realized and unrealized investment gains of $887 million in 2019 were driven by $456 million of net realized and
unrealized investment gains on equities and other invested assets, primarily due to unrealized gains in public equity funds, and $434
million of net realized and unrealized investment gains on fixed maturities and short-term investments, due to decreases in world-
wide risk free rates and credit spreads. Net realized investment gains were driven by realized gains on fixed maturities and short-
term investments, due to the Company's decision to rebalance certain portfolios, particularly lower rated investment grade credit,
and to reallocate the proceeds to other investment classes, particularly highly rated governments and mortgage-backed securities,
and to alternative credit. The $3 million impairment loss on investments in real estate was driven by a write-down in value of
London-based real estate investments directly owned by the Company.

The net realized and unrealized investment losses of $390 million in 2018 were largely driven by increases in U.S. risk-free

rates, widening of U.S. and European investment grade corporate spreads and net realized investment losses on fixed maturities and
short-term investments due to changes in investment portfolio mix aimed at increasing yield and decreasing duration. The net
realized investment losses on fixed maturities and short-term investments were partially offset by net realized gains in equities and
other invested assets. The impairment loss on investments in real estate was driven by a write-down in value of London-based real
estate investments referred to above.

See also Notes 3 and 4(a) to the Consolidated Financial Statements in Item 18 for further details.

Interest in Earnings of Equity Method Investments

The interest in earnings of equity method investments for 2020, 2019 and 2018 of $24 million, $16 million and $11 million,
respectively, reflect gains on private equities, partially offset by a decrease in value of real estate assets held by an equity method
investee, Almacantar, a privately held real estate investment and development group.

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Corporate and Other

The following are components of net income or loss (in millions of U.S. dollars), excluding amounts that the Company
includes in investment results or allocates to segments, in line with the way the Company manages its business, as described above.

Other expense, net of other income, not allocated to the segments (1)
Losses and loss expenses (2)
Interest expense

Loss on redemption of debt

Amortization of intangible assets

Net foreign exchange (losses) gains

Income tax benefit (expense)

Corporate and Other

2020

2019

2018

(195) $

(192) $

(146)

—

(39)

—

(10)

(52)

(40)

(15)

(12)

(87)

13
(283) $

(53)
(396) $

—

(43)

—

(35)

119

(96)

(1) The Company allocates certain other expenses that vary with business written by its operating segments. Refer to Underwriting
Results section above for tables that include Other expense and Other income amounts allocated to each of the three segments.

(2) Net incurred losses include favorable loss development of $3 million during the year ended December 31, 2019. Non-life

reserves allocated to Corporate and Other totaled $6 million at December 31, 2019. There were no incurred losses or non-life
reserves allocated to Corporate and Other during 2020.

Other Expenses

The Company's Other expenses are included in the underwriting result and in Corporate and Other, as described above. The
Company’s total Other expenses in the Consolidated Statements of Operations for the years ended December 31, 2020, 2019 and
2018 were as follows (in millions of U.S. dollars, except ratios):

Other expenses

Other expenses, as a % of total net premiums earned

2020 compared to 2019

2020

2019

2018

356

370

306

5.4 %

5.7 %

5.5 %

Other expenses of $356 million for 2020 decreased by $14 million compared to 2019 primarily due to lower annual incentive

and long term incentive payout for employees compared to the prior year, partially offset by an increase in consulting and
professional fees for accounting standard implementation projects.

2019 compared to 2018

Other expenses of $370 million for 2019 increased by $64 million compared to 2018 primarily due to an increase in full-time

equivalent employees, higher annual incentive and long term incentive payout for employees due to the strong growth in book value
reported by the Company in 2019 and higher expenses in the Life and Health segment to support the organic growth of the business.

Interest Expense and Loss on Redemption of Debt

Interest expense of $39 million in 2020 was comparable to $40 million for 2019. During the third quarter of 2020, the

Company issued $500 million 4.50% Fixed-Rate Reset Junior Subordinated Notes due 2050. The additional interest expense related
to this issuance was more than offset by the benefits of reduced interest expense from refinancing that took place in 2019, described
below.

Interest expense of $40 million in 2019 decreased compared to $43 million for 2018, due to the refinancing of senior notes
during 2019, whereby the Company issued $500 million 3.70% Senior Notes due 2029 and used the proceeds to early redeem the
$500 million 5.50% Senior Notes due 2020.

The loss on redemption of debt of $15 million in 2019 related to the redemption of the $500 million Senior Notes due 2020,

which included a make whole provision to compensate for future interest foregone as a result of the early retirement.

See Note 9 to the Consolidated Financial Statements in Item 18 of this report for further details.

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Amortization of Intangible Assets

Amortization of intangible assets relates to intangible assets acquired upon acquisition of Paris Re in 2009, Presidio in 2012,

Aurigen in 2017 and Claim Analytics Inc. in 2018. The amortization expense for 2020 was comparable to 2019. The decrease in
amortization expense to $12 million in 2019 from $35 million in 2018 was primarily related to the intangible asset for guaranteed
reserves which was written off in 2018, following the commutation of the Paris Re reserve agreement. See Note 6 to the
Consolidated Financial Statements in Item 18 for further details.

Foreign Exchange Movements

The Company’s reporting currency is the U.S. dollar. The Company’s significant subsidiaries and branches have one of the

following functional currencies: U.S. dollar, Euro or Canadian dollar. As a significant portion of the Company’s operations is
transacted in foreign currencies, fluctuations in foreign exchange rates may affect year-over-year comparisons. To the extent that
fluctuations in foreign exchange rates affect comparisons, their impact has been quantified, when possible, and discussed throughout
this annual report. See Note 2(m) to the Consolidated Financial Statements in Item 18 of this report for a discussion of
remeasurement and translation of foreign currencies.

Net foreign exchange losses were $52 million for 2020 compared to losses of $87 million for 2019 and gains of $119 million
for 2018. The losses in 2020 were driven by the weakening of the U.S. dollar against all major currencies (primarily the Canadian
dollar, British Pound and Swiss Franc) and the cost of hedging. The losses in 2019 were mainly driven by the weakening of the U.S.
dollar against certain major currencies and foreign currency hedging costs, while gains in 2018 were driven by the strengthening of
the U.S. dollar against certain major currencies and foreign currency hedge results.

The foreign exchange fluctuations for the principal currencies in which the Company transacts business were as follows:

•

the U.S. dollar ending exchange rate weakened against all major currencies, at December 31, 2020 compared to
December 31, 2019

the U.S. dollar average exchange rate for the year weakened against most major currencies, with the exception of the
Canadian dollar, in 2020 compared to 2019

the U.S. dollar ending exchange rate weakened against most major currencies, with the exception of the Euro, at
December 31, 2019 compared to December 31, 2018

the U.S. dollar average exchange rate for the year strengthened against most major currencies, with the exception of the
Japanese yen, in 2019 compared to 2018

The above fluctuations impacted individual line items of the Company’s Consolidated Statement of Operations as well as the
Change in currency translation adjustment included in Accumulated other comprehensive loss in the Consolidated Balance Sheets.
The Company hedges a significant portion of its currency risk exposure as discussed in Quantitative and Qualitative Disclosures
about Market Risk in Item 11 of this report and in Notes 2(n) and 5 to the Consolidated Financial Statements in Item 18 of this
report. See also section B. Liquidity and Capital Resources—Currency for a discussion of the impact of foreign exchange
movements on the Consolidated Balance Sheets.

Income Taxes

The effective income tax rate, which the Company calculates as income tax expense or benefit divided by net income or loss

before taxes, may fluctuate significantly from period to period depending on the geographic distribution of pre-tax net income or
loss in any given period between different jurisdictions. The geographic distribution of pre-tax net income or loss can vary
significantly between periods due to, but not limited to, the following factors: the business mix of net premiums earned, the
geographic location, quantum and nature of net losses and loss expenses incurred, the quantum and geographic location of other
expenses, net investment income, net realized and changes in unrealized investment gains and losses and the quantum of specific
adjustments to determine the income tax basis in each of the Company’s operating jurisdictions. In addition, a significant portion of
the Company’s gross and net premiums are written and earned in Bermuda, a non-taxable jurisdiction, including the majority of the
Company’s catastrophe business, which can result in significant volatility in the Company’s pre-tax net income or loss from period
to period.

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The Company’s income tax expense (benefit) and effective income tax rate for the years ended December 31, 2020, 2019 and

2018 were as follows (in millions of U.S. dollars, except ratios):

Income tax (benefit) expense
Effective income tax rate

2020

2019

2018

(13)
(5.4) %

53
5.3 %

(9)
9.4 %

Income tax (benefit) expense and the effective income tax rate during 2020, 2019 and 2018 were primarily driven by the
geographic distribution of the Company’s pre-tax income and losses between its various jurisdictions. On March 27, 2020, the
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in response to the COVID-19 pandemic. The
Company did not make use of any direct support measures. It was only the Company’s U.S. subsidiaries that benefited from the
CARES Act through the passage of modified tax loss carry-back rules that allow losses to be carried back to years with a higher tax
rate. As a result, the Company’s U.S. subsidiaries realized a tax benefit of $35 million (or a reduction of 14.4 points on the effective
tax rate) for the year ended December 31, 2020. See Note 12 to the Consolidated Financial Statements in Item 18 of this report for
further details.

B. Liquidity and Capital Resources

The following discussion on liquidity and capital resources principally focuses on the Company’s Consolidated Balance
Sheets and Consolidated Statements of Cash Flows. See Risk Factors in Item 3.D for additional information concerning risks related
to our business, strategy and operations.

Capital Adequacy

A key priority for management is to hold sufficient capital to meet all of the Company’s obligations to cedants, meet

regulatory and rating agency requirements of the Group and the Company's regulated subsidiaries and support its position as one of
the stronger reinsurers in the industry. Management closely monitors its capital needs and capital level throughout the reinsurance
cycle and, in times of volatility and turmoil in global capital markets, actively takes steps to increase or decrease the Company’s
capital in order to achieve an appropriate balance of financial strength and shareholder returns. Capital management is achieved by
either deploying or curtailing capital to fund business opportunities and, during times when the Company has excess capital and
business opportunities are not so attractive, returning capital to its shareholders by way of dividends.

Shareholders’ Equity and Capital Resources Management

As part of its long-term strategy, the Company will seek to grow capital resources to support its operations throughout the
reinsurance cycle, maintain strong ratings from the major rating agencies (see ratings summarized below) and maintain the ability to
pay claims as they arise. The Company may also seek to restructure its capital through the repayment or purchase of debt
obligations or preferred shares, or increase or restructure its capital through the issuance of debt or preferred shares, when
opportunities arise.

The Company's total capital (defined as total of debt liabilities and preferred and common shareholders’ equity) at

December 31, 2020 and 2019 was as follows (in millions of U.S. dollars, except percentages):

Senior notes due 2026

Senior notes due 2029

Junior subordinated notes due 2050

Capital efficient notes due 2066
Total debt (1)
Preferred shareholders’ equity, aggregate liquidation value

Common shareholder’s equity

Total shareholders' equity

Total capital

December 31, 2020

December 31, 2019

915

496

494

1,967

637

6,690

7,327

9,294

10 % $

833

496

—

21 % $

1,391

7 % $

79 % $

100 % $

704

6,566

7,270

8,661

9 %

—

16 %

8 %

84 %

100 %

(1) The difference of $8 million between Total debt and Debt on the Consolidated Balance Sheets at December 31, 2020 and

December 31, 2019 is due to the Capital efficient notes (CENts). Non-consolidated debt issued externally related to CENts of
$62 million does not appear in the Debt line of the Consolidated Balance Sheets, as the finance entity that issued the debt
(PartnerRe Finance II Inc.) does not meet the U.S. GAAP criteria for consolidation. The Consolidated Balance Sheets include
the related intercompany notes of $70 million issued by PartnerRe U.S. Corporation to PartnerRe Finance II Inc. See Note 9 to
the Consolidated Financial Statements included in Item 18 of this report for further information.

Total capital of $9.3 billion at December 31, 2020 was up 7.3% compared to December 31, 2019 primarily due to the issuance

of junior subordinated notes during 2020, an increase in common shareholder's equity and foreign exchange movements on Euro
denominated debt, partially offset by the redemption of Series F preferred shares, described as follows:

•

During the third quarter of 2020, the Company issued $500 million aggregate principal amount of 4.500% fixed-rate reset
junior subordinated notes at par. The net proceeds of the issuance, after consideration of the underwriting expenses,
commissions and other expenses, totaled $494 million. A portion of the proceeds were used to redeem preferred shares
described below.

Shareholders’ equity, comprised of preferred and common shareholders’ equity in the table above, was $7.3 billion at
December 31, 2020, a 0.8% increase compared to December 31, 2019. The increase was primarily driven by
comprehensive income of $234 million, offset by common and preferred dividend payments totaling $96 million in 2020,
and the redemption of the 5.875% Series F preferred shares with a liquidation value of $67 million.

The increase in senior notes is primarily due to the foreign exchange impact of translating the Euro denominated debt into
U.S. dollars, the Company's reporting currency.

The Company expects to utilize the remaining proceeds from the most recent junior subordinated debt issuance to redeem
additional preferred shares and for other general corporate purposes in 2021. The Company also plans to raise additional financing
in 2021 to redeem additional preferred shares and for other general corporate purposes, market conditions permitting. Our shelf
registration statement on Form F-3 under the Securities Act provides for future offerings of securities, including preferred shares
and debt securities, up to a certain aggregate offering price limit, allowing for efficient access to capital markets. The remaining
unused limit under our shelf registration is $400 million.

See section F. Tabular Disclosures of Contractual Obligations below for further details of obligations of the Company. See

Notes 9, 10 and 11 to the Consolidated Financial Statements in Item 18 of this report for a further discussion related to the
Company's indebtedness and shareholders' equity, and Operating Results above for a discussion of the Company’s net income for
the year ended December 31, 2020. See also Consolidated Statements of Shareholders' Equity within the Consolidated Financial
Statements in Item 18 of this report.

Liquidity and Cash Flows

Liquidity is a measure of the Company’s ability to access sufficient cash flows to meet the short-term and long-term cash

requirements of its business operations.

The Company aims to be a reliable and financially secure partner to its cedants. This means that the Company must maintain

sufficient liquidity at all times so that it can support its cedants by settling claims quickly. The Company generates cash flows
primarily from its underwriting and investment operations. Management believes that a profitable, well-run reinsurance organization
will generate sufficient cash from premium receipts to pay claims, acquisition costs and other expenses in most years. To the extent
that underwriting cash flows are not sufficient to cover operating cash outflows in any year, the Company may utilize cash flows
generated from investments and may ultimately liquidate assets from its investment portfolio. Management ensures that its liquidity
requirements are supported by maintaining a high quality, well balanced and liquid investment grade investment portfolio, and by
matching within certain risk tolerance limits the duration and currency of its investments with that of its net reinsurance liabilities.

Management believes that its significant cash flows from operations and high quality liquid investment portfolio will provide
sufficient liquidity for the foreseeable future to meet its present requirements. At December 31, 2020 and 2019, the Company held
cash and cash equivalents of $2,351 million and $1,484 million, respectively.

The Company’s Consolidated Statements of Cash Flows are included in the Consolidated Financial Statements in Item 18 of

this report. Explanations of the cash flows presented in the Consolidated Statements of Cash Flows are as follows:

Net cash provided by operating activities, which includes cash flows related to underwriting operations and net investment
income, was $1,125 million in 2020 compared to $999 million in 2019 and $447 million in 2018. The increase in 2020 compared to
2019 was primarily driven by increased cash flow from underwriting operations, due to increased premium collections in line with
business growth in certain lines of business, partially offset by loss payments related to large catastrophic and large loss events, and

to a lesser extent, higher payments for attritional losses. The increase in 2019 compared to 2018 was driven by increases in cash
flow from underwriting operations.

Net cash used in investing activities was $633 million in 2020 compared to $118 million in 2019 and $1,261 million in 2018.

The net cash used in investing activities in 2020 was primarily driven by net purchases of fixed maturities, offset by net sales of
short term investments and other invested assets. The net cash used in investing activities in 2019 was primarily driven by purchases
of other invested assets and short-term investments, offset by net sales of fixed maturities. The net cash used in investing activities
in 2018 was primarily driven by purchases of fixed maturities and short-term investments and efforts made during 2018 to optimize
yield on excess cash.

Net cash provided by financing activities was $328 million in 2020 compared to net cash used in financing activities of
$268 million in 2019 and $94 million in 2018. The net cash from financing activities in 2020 was driven primarily by the issuance
of junior subordinated notes, partially offset by the redemption of preferred shares and dividends paid to common and preferred
shareholders. The net cash used in financing activities for both 2019 and 2018 was driven primarily by dividends paid to common
and preferred shareholders.

In 2021, the Company expects to continue to generate positive operating cash flows, absent unknown events or catastrophic
events or unanticipated factors that could result in negative operating cash flows in the future. Specifically, the Company expects
cash flows from operating activities to continue to be sufficient to cover claims payments.

The Company’s ability to pay common and preferred shareholder dividends, interest payments on debt, and certain corporate
expenses is dependent mainly on cash dividends from PartnerRe Bermuda, PartnerRe Europe, PartnerRe U.S. and PartnerRe Asia
(collectively, the reinsurance subsidiaries), which are the Company’s most significant subsidiaries. The payment of such dividends
by the reinsurance subsidiaries to the Company is limited under Bermuda, Irish and Singapore laws and certain statutes of various
U.S. states in which PartnerRe U.S. is licensed to transact business. The restrictions are generally based on net income and/or certain
levels of surplus as determined in accordance with the relevant statutory accounting practices.

The reinsurance subsidiaries’ dividend restrictions at December 31, 2020 are described in Note 11 to the Consolidated
Financial Statements in Item 18 of this report. As a result of the acquisition of the Company by EXOR N.V. (subsequently renamed
EXOR Nederland N.V.) and the preferred share exchange offer in 2016, the Company's payment of dividends on common shares
declared with respect to any fiscal quarter was restricted to an amount not exceeding 67% of net income per fiscal quarter until
December 31, 2020. If the Company did not make aggregate distributions of all of the distributable amounts during any fiscal
quarter, such remaining amounts would carryover to be available for dividends in subsequent fiscal quarters, regardless of the
Company’s Net income or loss during such subsequent fiscal quarters. This restriction expired on December 31, 2020.

The reinsurance subsidiaries of the Company depend upon cash inflows from the collection of premiums as well as investment
income and proceeds from the sales and maturities of investments to meet their obligations. Cash outflows are in the form of claims
payments, purchases of investments, other expenses, income tax payments, intercompany payments as well as dividend payments to
the respective parent company. See section F. Tabular Disclosures of Contractual Obligations below for further details of
obligations of the Company.

Historically, the Company, through its operating subsidiaries, has generated sufficient cash flows to meet its obligations.
Because of the inherent volatility of the business written by the Company, the seasonality in the timing of payments by cedants, the
irregular timing of loss payments, the impact of a change in interest rates and credit spreads on the investment income as well as
variability in coupon payment dates for fixed income securities, cash flows from operating activities may vary significantly between
periods. In the event that paid losses accelerate beyond the ability to fund such payments from operating cash flows, the Company
would use its cash and cash equivalents balances available or liquidate a portion of its high quality and liquid investment portfolio.
As discussed in the Investments section below, the Company’s investments and cash and cash equivalents totaled $20.1 billion at
December 31, 2020, of which $14.9 billion were cash and cash equivalents and government issued or investment grade fixed
income securities.

Financial strength ratings and senior unsecured debt ratings represent the opinions of rating agencies on the Company’s
capacity to meet its obligations. In the event of a significant downgrade in ratings, the Company’s ability to write business and to
access the capital markets could be impacted. Some of the Company’s reinsurance treaties contain special funding and termination
clauses that would be triggered in the event the Company or one of its subsidiaries is downgraded by one of the major rating
agencies to levels specified in the treaties, or the Company’s capital is significantly reduced. If such an event were to occur, the
Company would be required, in certain instances, to post collateral in the form of letters of credit and/or trust accounts against
existing outstanding losses, if any, related to the treaty. In a limited number of instances, the subject treaties could be canceled
retroactively or commuted by the cedant.

The Company’s current financial strength ratings are as follows:

Standard & Poor’s
Moody’s (2)
A.M. Best

Rating (1)
A+
A1
A+

(1) The Company's outlook from Moody's and A.M. Best is stable and the outlook from Standard & Poor's is negative.
(2) Applies to Partner Reinsurance Company Ltd. and Partner Reinsurance Company of the U.S.

Credit Agreements

In the normal course of its operations, the Company enters into agreements with financial institutions to obtain unsecured and
secured letter of credit facilities. These facilities are used for the issuance of letters of credit. Certain agreements require the letters
of credit to be fully secured with cash, government bonds and/or investment grade bonds. The agreements include default covenants,
which could require the Company to fully secure the outstanding letters of credit to the extent that the facility is not already fully
secured and/or result in the Company not being allowed to issue any new letters of credit. See Note 16 to the Consolidated Financial
Statements in Item 18 of this report for further details.

Investments

The Company’s total invested assets of $20,178 million and $17,911 million at December 31, 2020 and 2019, respectively, are

comprised of total investments, cash and cash equivalents, and accrued interest. The components and carrying values of the
Company’s total investments, and the percentages of total investments, at December 31, 2020 and 2019 were as follows (in millions
of U.S. dollars, except percentages):

Fixed maturities

Short-term investments

Equities

Investments in real estate

Other invested assets
Total investments (1)

December 31, 2020

December 31, 2019

12,786

73 % $

10,681

66 %

416

1,496

2,968

—

1,003

1,295

3,266

—

17,734

100 % $

16,317

100 %

(1) In addition to the total investments shown in the above table, the Company held cash and cash equivalents of $2,351 million and

$1,484 million at December 31, 2020 and 2019, respectively, and accrued interest of $92 million and $110 million at
December 31, 2020 and 2019, respectively.

The majority of the Company’s investments are carried at fair value with changes in fair value included in Net realized and

unrealized investment gains or losses in the Consolidated Statements of Operations. Refer to Investment Result above in the
Operating results section and Notes 3 and 4 to the Consolidated Financial Statements for further details of the composition of the
investments and changes in unrealized gains or losses on investments.

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The cost, fair value and credit ratings of the Company’s fixed maturities and short-term investments carried at fair value at

December 31, 2020 were as follows (in millions of U.S. dollars, except percentages):

December 31, 2020

Fixed maturities

U.S. government and sponsored
enterprises
U.S. states, territories and
municipalities
Non-U.S. sovereign government,
supranational and government related

Corporate

Asset-backed securities
Residential mortgage-backed
securities

Cost (1)

Fair
Value

AAA

BBB

Below
investment
grade

Unrated

Credit Rating (2)

$ 2,386 $ 2,409

$ —

$ 2,409

$ —

—

$ —

110

138

—

125

2,077

2,181

1,321

3,186

3,341

598

274

235

1,312

1,274

—

421

—

4,565

4,699

382

4,317

—

Fixed maturities

$ 12,342 $ 12,786 $ 1,710

$ 7,608

$ 1,549

$ 1,296

439

$ 184

Short-term investments
Total fixed maturities and short-term
investments
% of Total fixed maturities and short-term
investments

416

135

145

—

$ 12,758 $ 13,202 $ 1,845

$ 7,663

$ 1,694

$ 1,362

454

$ 184

14 %

58 %

13 %

10 %

4 %

1 %

(1) Cost is amortized cost for fixed maturities and short-term investments.
(2) All references to credit rating reflect Standard & Poor’s (or estimated equivalent) ratings. Investment grade reflects a rating of

BBB- or above.

At December 31, 2020, the Company held $37 million of government bonds issued by Spain and Ireland with a maturity less

than five years. The Company did not have any other investments in securities issued by peripheral EU sovereign governments
(Portugal, Italy, Ireland, Greece and Spain) at December 31, 2020.

At December 31, 2020, approximately 99% of the Company’s fixed maturity and short-term investments were publicly traded
and approximately 95% were rated investment grade (BBB- or higher) by Standard & Poor’s (or estimated equivalent). The average
credit quality, average yield to maturity and expected average duration of the Company’s fixed maturities and short-term
investments at December 31, 2020 and 2019 were as follows:

Average credit quality
Average yield to maturity
Expected average duration

December 31, 2020
AA
1.6 %
2.3 years

December 31, 2019
AA
2.8 %
2.7 years

The average credit quality of fixed maturities and short-term investments at December 31, 2020 has remained unchanged

compared to December 31, 2019. The total fixed maturities and short-term investments portfolio of $13,202 million at December
31, 2020 has increased compared to December 31, 2019 of $11,684 million, driven by favorable changes in net unrealized
investment gains, a reallocation of funds from the corporate loan portfolio (included in Other invested assets) into fixed maturities
(primarily U.S. residential mortgage-backed securities), and other positive operating cash flows.

The average yield to maturity on fixed maturities and short-term investments decreased by 1.2% primarily due to decreases in

worldwide risk-free interest rates.

At December 31, 2020 and 2019, the expected average duration of fixed maturities and short-term investments was 2.3 years

and 2.7 years, respectively, compared to the duration of reinsurance liabilities of approximately 4.3 years at December 31, 2020 and
2019. The decrease in expected average duration of fixed maturities and short-term investments reflects a lower duration target on
excess fixed income as we remain cautious against rising rates in this phase of the low interest rate cycle.

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Maturity Distribution

The distribution of fixed maturities and short-term investments at December 31, 2020 by contractual maturity date was as

follows (in millions of U.S. dollars):

December 31, 2020

One year or less

More than one year through five years

More than five years through ten years

More than ten years

Subtotal

Mortgage/asset-backed securities

Total

Cost

1,553 $

3,226

1,781

1,615

8,175 $

4,583

Fair
Value

1,563

3,345

1,916

1,661

8,485

4,717

12,758 $

13,202

Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain

obligations with or without call or prepayment penalties.

Corporate bonds included in Fixed maturities

Corporate bonds are comprised of obligations of U.S. and foreign corporations. The fair values of corporate bonds issued by

U.S. and foreign corporations by economic sector at December 31, 2020 were as follows (in millions of U.S. dollars, except
percentages):

December 31, 2020
Sector

Financial
Consumer cyclical
Energy
Industrial
Insurance
Consumer non-cyclical
Utilities
Real estate and real estate investment trusts

Communications
Technology
Basic materials
Longevity and mortality bonds

Total
% of Total

U.S.

Foreign

Total Fair
Value

Percentage to Total
Fair Value of
Corporate Bonds

558
227
137
153
207
126
122
76

37
20
17
1,769

911
97
134
104
43
86
80
104

—
3
—
1,572

1,469
324
271
257
250
212
202
180

37
23
17
3,341

53 %

47 %

100 %

44 %
10
8
8
7
6
6
5

3
1
1
1
100 %

At December 31, 2020, other than the U.S., no country accounted for more than 15% of the Company’s corporate bonds. At

December 31, 2020, the ten largest issuers accounted for 22% of the corporate bonds held by the Company (4% of total investments
and cash and cash equivalents) and no single issuer accounted for more than 3% of total corporate bonds (1% of total investments
and cash and cash equivalents).

Within the finance sector, 91% of corporate bonds were rated investment grade and 51% were rated A- or better at

December 31, 2020.

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Asset-backed and Residential Mortgage-backed Securities included in Fixed maturities

Asset-backed securities and residential mortgage-backed securities by U.S. and non-U.S. originations and the related fair value

and credit ratings at December 31, 2020 were as follows (in millions of U.S. dollars, except percentages):

Credit Rating (1)

December 31, 2020

GNMA (2)

GSEs (3)

AAA

Below
investment
grade /
Unrated

Fair Value

Asset-backed securities, non-U.S.

$ —

Residential mortgage-backed securities

U.S.

Non-U.S.

Residential mortgage-backed securities

Total

% of Total

638

—

638

$ 3,675

—

$ 3,675

$ 379

$ —

$ 382

$ —

—

$ —

$ 4,692

—

$ —

$ 4,699

$ 4,717

14 %

78 %

8 %

— %

100 %

(1) All references to credit rating reflect Standard & Poor’s (or estimated equivalent).
(2) GNMA represents the Government National Mortgage Association. The GNMA, or Ginnie Mae as it is commonly known, is a
wholly-owned U.S. government corporation within the Department of Housing and Urban Development which guarantees
mortgage loans of qualifying first-time home buyers and low-income borrowers.

(3) GSEs, or government sponsored enterprises, includes securities that carry the implicit backing of the U.S. government and

securities issued by U.S. government agencies.

Residential mortgage-backed securities include U.S. residential mortgage-backed securities, which generally have a low risk of

default. The main issuers of these securities are U.S. government agencies or GSEs, which set standards on the mortgages before
accepting them into the program. Although these U.S. government backed securities do not carry a formal rating, they are generally
considered to have a credit quality equivalent to or greater than AA+ corporate issues. They are considered prime mortgages and the
major risk is uncertainty of the timing of prepayments.

Short-term Investments

Short-term investments include U.S. and non-U.S. government obligations and corporate bonds. Short-term investments were

$416 million at December 31, 2020, down from $1,003 million at December 31, 2019, primarily due to reallocations to fixed
maturities. At December 31, 2020, 96% of short-term investments were rated BBB or higher by Standard & Poor’s (or estimated
equivalent).

Equities

Investments in equities increased to $1,496 million at December 31, 2020 from $1,295 million at December 31, 2019. The
increase in equities was driven by $189 million of net realized and unrealized investment gains on equities, which were primarily
unrealized. The gains included $91 million of net unrealized gains on two Exor managed public equity funds, which represented
$1,039 million, or 69% at December 31, 2020, and $948 million, or 73% at December 31, 2019, of the Company's total Equities.
See also Notes 3, 4 and 17 to the Consolidated Financial Statements in Item 18 of this report for further details for Equities.

Investments in Real Estate

Investments in real estate relate to the Company's London-based real estate investments and are valued at cost, less any write

down for impairment when the changes in circumstances indicate the carrying value may not be recoverable and exceeds its
estimated fair value. The carrying value decreased to $68 million at December 31, 2020 from $72 million at December 31, 2019,
driven by a $6 million impairment loss, partially offset by favorable foreign exchange movements driven by the strengthening of the
British pound. See also Note 2(g) to the Consolidated Financial Statements in Item 18 of this report for further details.

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Other Invested Assets

Other invested assets are comprised of investments in corporate loans, notes and loans receivable and notes securitization,
private equities, and derivative instruments accounted for at fair value in addition to certain investments that are accounted for using
the equity method of accounting. At December 31, 2020 and 2019, Other invested assets totaled $2,968 million and $3,266 million,
respectively.

The largest single investment in Other invested assets is an investment in Almacantar of $494 million at December 31, 2020

and $483 million at December 31, 2019, accounted for under the equity method (see Note 4(f) to the Consolidated Financial
Statements in Item 18 of this report for further details).

Other invested assets also includes a portfolio of third-party, individually managed privately issued corporate loans carried at
fair value of $1,326 million at December 31, 2020, which decreased from $1,879 million at December 31, 2019, driven by net sales
during the year. The Company reallocated funds from the corporate loan portfolio to the fixed maturities portfolio during 2020.
These corporate loans include $851 million and $1,439 million at December 31, 2020 and 2019, respectively, of U.S. bank loans
under an externally managed mandate. The mandate primarily invests in U.S. floating rate, first lien, senior secured broadly
syndicated loans with a focus on facility sizes greater than $300 million. The weighted average credit rating as at December 31,
2020 was BB-/B+ with the single largest issuer being 2.2% of the Company's individually managed corporate loan portfolio. The
corporate loan portfolio also included $475 million and $440 million, respectively, of other privately issued corporate loans at
December 31, 2020 and 2019.

Other invested assets also includes private equities (mainly third party private equity funds) with a fair value of $757 million at

December 31, 2020, which increased from $534 million at December 31, 2019, driven by net unrealized gains and investments in
new funds.

See Notes 3, 4 and 5 to the Consolidated Financial Statements in Item 18 of this report for further details.

Funds Held by Reinsured Companies

The Company writes certain business on a funds held basis. Under funds held contractual arrangements, the cedant retains the

net funds that would have otherwise been remitted to the Company and credits the net fund balance with investment income. The
Company does not legally own or directly control the investments underlying its funds held assets and only has recourse to the
cedant for the receivable balances and no claim to the underlying securities that support the balances. Decisions as to purchases and
sales of assets underlying the funds held balances are made by the cedant; in some circumstances, investment guidelines regarding
the minimum credit quality of the underlying assets may be agreed upon between the cedant and the Company as part of the
reinsurance agreement, or the Company may participate in an investment oversight committee regarding the investment of the net
funds, but investment decisions are not otherwise influenced by the Company.

At December 31, 2020 and 2019, the Company recorded $705 million and $815 million, respectively, of funds held assets. The

majority of the funds held assets relate to contracts that earned investment income based upon a predetermined interest rate, either
fixed contractually at the inception of the contract or based upon a recognized market index (e.g., LIBOR). Under these contractual
arrangements, there are no specific assets linked to the funds held assets, and the Company is only exposed to the credit risk of the
cedant.

See Note 15(a) to the Consolidated Financial Statements in Item 18 of this report for a discussion of credit risk related to funds

held assets and the Company’s process to evaluate the financial condition of its counterparties.

Non-life and Life and Health Reserves

See Notes 2(b) and 7 to the Consolidated Financial Statements in Item 18 of this report for details of the Company’s loss
reserves, including disclosures required by the SEC Industry Guide 4: Disclosures concerning unpaid claims and claim adjustment
expenses of property-casualty insurance underwriters.

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Non-life Reserves

Loss reserves represent estimates of amounts an insurer or reinsurer ultimately expects to pay in the future on claims incurred
at a given time, based on facts and circumstances known at the time that the loss reserves are established. It is possible that the total
future payments may exceed, or be less than, such estimates. The estimates are not precise in that, among other things, they are
based on predictions of future developments and estimates of future trends in claim severity, frequency and other variable factors
such as inflation. During the loss settlement period, it often becomes necessary to refine and adjust the estimates of liability on a
claim either upward or downward. Despite such adjustments, the ultimate future liability may exceed or be less than the revised
estimates.

As part of the reserving process, insurers and reinsurers review historical data and anticipate the impact of various factors such
as legislative enactments and judicial decisions that may affect potential losses from casualty claims, changes in social and political
attitudes that may increase exposure to losses, mortality and morbidity trends and trends in general economic conditions. This
process assumes that past experience, adjusted for the effects of current developments, is an appropriate basis for anticipating future
events.

The Company’s gross reserves by segment and the total ceded and net non-life reserves at December 31, 2020 and 2019 were

as follows (in millions of U.S. dollars):

P&C segment and Corporate and Other (1)
Specialty segment

Gross non-life reserves

Ceded non-life reserves

Net non-life reserves

December 31, 2020

December 31, 2019

7,938 $

3,457

11,395 $

(782)

10,613 $

7,254

3,109

10,363

(755)

9,608

(1) There were no non-life reserves allocated to Corporate and Other during 2020. Non-life reserves allocated to Corporate and

Other totaled $6 million at December 31, 2019.

Net non-life reserves increased from December 31, 2019 to December 31, 2020 primarily due to the impact of large losses

including COVID-19 and an aggregation of mid-sized catastrophic and man-made losses in 2020, as well as foreign exchange
movements. The changes in these reserves and the reconciliation of the gross and net total non-life reserves for the years ended
December 31, 2020, 2019 and 2018 are presented and discussed further in Note 7(a) to the Consolidated Financial Statements in
Item 18 of this report.

The net adverse loss development on prior accident years was $71 million for the year ended December 31, 2020, resulting
from adverse loss emergence in the Specialty segment, which was partially offset by favorable loss emergence in the P&C segment.
See Note 7(a) to the Consolidated Financial Statements in Item 18 for further details related to the 2020 net unfavorable loss
development compared favorable development in 2019 and 2018.

See also Note 7(c) to the Consolidated Financial Statements in Item 18 of this report for details of the net incurred and paid

losses and loss expenses development by accident year, the total of incurred but not reported liabilities plus expected development
on reported claims, and the net liability as at December 31, 2020 for total non-life and each of the P&C and Specialty segments.

The gross reserves reported by cedants (case reserves), those estimated by the Company, including additional case reserves

(ACRs) and amounts for losses incurred but not yet reported to the Company (IBNR), and the total gross, ceded and net loss
reserves recorded for the Company’s non-life operations were as follows at December 31, 2020 (in millions of U.S. dollars):

Reserving lines
P&C
Specialty
Total Non-life reserves

Case reserves
$

3,150 $
1,497
4,647 $

ACRs

IBNR
reserves

Total gross
loss reserves
recorded

Ceded loss
reserves

Net non-
life reserves
recorded

118 $
53
171 $

4,670 $
1,907
6,577 $

7,938 $
3,457
11,395 $

(494) $
(288)
(782) $

7,444
3,169
10,613

The net non-life loss reserves represent the Company’s best estimate of future losses and loss expense amounts based on the
information available at December 31, 2020. Loss reserves rely upon estimates involving actuarial and statistical projections at a
given time that reflect the Company’s expectations of the costs of the ultimate settlement and administration of claims. Estimates of
ultimate liabilities are contingent on many future events and the eventual outcome of these events may be different from the
assumptions underlying the reserve estimates. In the event that the business environment and social trends diverge from historical
trends, the Company may have to adjust its loss reserves to amounts falling significantly outside its current estimate. These

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estimates are regularly reviewed and the ultimate liability may be in excess of, or less than, the amounts provided, for which any
adjustments will be reflected in the period in which the need for an adjustment is determined.

The Company’s best estimates are point estimates within a reasonable range of actuarial liability estimates. These ranges are

developed using stochastic simulations and other techniques and provide an indication as to the degree of variability of the loss
reserves. The Company interprets the ranges produced by these techniques as confidence intervals around the point estimates for
each Non-life sub-segment. However, due to the inherent volatility in the business written by the Company, there can be no
assurance that the final settlement of the loss reserves will fall within these ranges.

The point estimates related to net Non-life reserves recorded by the Company and the range of actuarial estimates at

December 31, 2020 were as follows (in millions of U.S. dollars):

P&C
Specialty

Total net Non-life reserves

Recorded Point
Estimate

$
$
$

7,444 $
3,169 $
10,613

High

Low

8,383 $
3,458 $

6,103
2,765

It is not appropriate to add together the ranges of each segment in an effort to determine a high and low range around the

Company’s total carried loss reserves.

Of the Company’s $10,613 million of net non-life reserves at December 31, 2020, a portion of this is considered to have a long

reporting tail, including the Company’s exposure to asbestos and environmental claims. See Note 7 to the Consolidated Financial
Statements in Item 18 of this report for further details.

Non-life Reserving Methodology

Because a significant amount of time can elapse between the assumption of risk, occurrence of a loss event, the reporting of
the event to an insurance company (the primary company or the cedant), the subsequent reporting to the reinsurance company (the
reinsurer) and the ultimate payment of the claim on the loss event by the reinsurer, the Company’s non-life reserves (loss reserves)
are based largely upon estimates.

The Company categorizes loss reserves into three types of reserves: reported outstanding loss reserves (case reserves), ACRs

and IBNR. The Company updates its estimates for each of the aforementioned categories on a quarterly basis using information
received from its cedants.

Case reserves represent unpaid losses reported by the Company’s cedants and recorded by the Company.

ACRs are established for particular circumstances where, on the basis of individual loss reports, the Company estimates that

the particular loss or collection of losses covered by a treaty may be greater than those advised by the cedant.

IBNR reserves represent a provision for claims that have been incurred but not yet reported to the Company, as well as future

loss development on losses already reported, in excess of the case reserves and ACRs. Unlike case reserves and ACRs, IBNR
reserves are often calculated at an aggregated level and cannot usually be directly identified as reserves for a particular loss or treaty.

The Company also estimates the future unallocated loss adjustment expenses (ULAE) associated with the loss reserves and

these form part of the Company’s loss adjustment expense reserves.

The amount of time that elapses before a claim is reported to the cedant and then subsequently reported to the reinsurer is

commonly referred to in the industry as the reporting tail. Lines of business for which claims are reported quickly are commonly
referred to as short-tail lines and lines of business for which a longer period of time elapses before claims are reported to the
reinsurer are commonly referred to as long-tail lines. In general, for reinsurance, the time lags are longer than for primary business
due to the delay that occurs between the cedant becoming aware of a loss and reporting the information to its reinsurer(s). The delay
varies by reinsurance market (country of cedant), type of treaty, whether losses are first paid by the cedant and the size of the loss.
The delay could vary from a few weeks to a year or sometimes longer. For all lines, the Company’s objective is to estimate ultimate
losses and loss expenses. Total loss reserves are then calculated by subtracting losses paid. Similarly, IBNR reserves are calculated
by subtraction of case reserves and ACRs from total loss reserves.

The Company analyzes its ultimate losses and loss expenses after consideration of the loss experience of various reserving

cells. The Company assigns treaties to reserving cells and allocates losses from the treaty to the reserving cell. The reserving cells
are selected in order to ensure that the underlying treaties have homogeneous loss development characteristics (e.g., reporting tail)
but are large enough to make estimation of trends credible. The selection of reserving cells is reviewed annually and changes over
time as the business of the Company evolves. For each reserving cell, the Company tabulates losses in reserving triangles that show

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the total reported or paid claims at each financial year end by underwriting year cohort. An underwriting year is the year during
which the reinsurance treaty was entered into as opposed to the year in which the loss occurred (accident year), or the calendar year
for which financial results are reported. For each reserving cell, the Company’s estimates of loss reserves are reached after a review
of the results of several commonly accepted actuarial projection methodologies. In selecting its best estimate, the Company
considers the appropriateness of each methodology to the individual circumstances of the reserving cell and underwriting year for
which the projection is made. The methodologies that the Company employs include, but may not be limited to, paid and reported
Chain Ladder methods, Expected Loss Ratio method and paid and reported Bornhuetter-Ferguson (B-F) methods. In addition, the
Company uses other methodologies to estimate liabilities for specific types of claims. For example, reserves established for the
catastrophe line are primarily a function of the presence or absence of catastrophic events during the year, and the complexity and
uncertainty associated with estimating unpaid losses from these large disclosed events. Internal and vendor catastrophe models are
typically used in the estimation of loss and loss expenses at the early stages of catastrophe losses before loss information is reported
to the reinsurer. In addition, reserves are also established in consideration of mid-sized and attritional loss events that occur during a
year. In the case of asbestos and environmental claims, the Company has established reserves for future losses and allocated loss
expenses based on the results of periodic actuarial studies, which consider the underlying exposures of the Company’s cedants.

The reserve methodologies employed by the Company are dependent on data that the Company collects. This data consists
primarily of loss amounts and loss payments reported by the Company’s cedants, and premiums written and earned reported by
cedants or estimated by the Company. The actuarial methods used by the Company to project loss reserves that it will pay in the
future do not generally include methodologies that are dependent on claim counts reported, claim counts settled or claim counts
open as, due to the nature of the Company’s business, this information is not routinely provided by cedants for every treaty.

For a description of the reserving methods commonly employed by the Company see Note 7 to the Consolidated Financial
Statements in Item 18 of this report. Each of these methods have certain advantages and disadvantages which the Company takes
into consideration when determining which methods to use and method weights.

The main strengths of the Chain Ladder (CL) Development method are that it is reactive to loss emergence (payments) and
that it makes full use of historical experience on claim emergence (payments). For homogeneous low volatility lines, under stable
economic conditions, the method can often produce good estimates of ultimate liabilities and reserves. However, the method has
weaknesses when the underlying assumption of stable patterns is not true. This may be the consequence of changes in the mix of
business, changes in claim inflation trends, changes in claim reporting practices or the presence of large claims, among other things.
Furthermore, the method tends to produce volatile estimates of ultimate liabilities in situations where there is volatility in reported
(paid) patterns. In particular, when the expected percentage reported (paid) is low, small deviations between actual and expected
claims can lead to very volatile estimates of ultimate liabilities and reserves. Consequently, this method is often unsuitable for
projections at early development stages of an underwriting year. Finally, the method fails to incorporate any information regarding
market conditions, pricing, etc., which could improve the estimate of liabilities and reserves. It therefore tends not to perform very
well in situations where there are rapidly changing market conditions.

The Expected Loss Ratio (ELR) method is insensitive to actual reported or paid losses therefore it is usually inappropriate at
later stages of development, but can often be useful at the early stages of development when very few losses have been reported or
paid, and the principal sources of information available to the Company consist of information obtained during pricing and
qualitative information supplied by the cedant.

The Bornhuetter-Ferguson (B-F) methods (Reported or Paid) tend to provide less volatile indications at early stages of

development and reflect changes in the external environment, however, this method can be slow to react to emerging loss
development (payment). In particular, to the extent that the a priori loss ratios prove to be inaccurate (and are not revised), the B-F
methods will produce loss estimates that take longer to converge with the final settlement value of loss liabilities.

The reserving methods used by the Company are dependent on a number of key parameter assumptions. The principal

parameter assumptions underlying the methods used by the Company are:

•

the loss development factors used to form an expectation of the evolution of reported and paid claims for several years
following the inception of the underwriting year. These are often derived by examining the Company’s data after due
consideration of the underlying factors listed below. In some cases, where the Company lacks sufficient volume to have
statistical credibility, external benchmarks are used to supplement the Company’s data;

the tail factors used to reflect development of paid and reported losses after several years have elapsed since the inception
of the underwriting year;

the a priori loss ratios used as inputs in the B-F methods; and

the selected loss ratios used as inputs in the Expected Loss Ratio method.

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As an example of the sensitivity of the Company’s reserves to reserving parameter assumptions by reserving line, the effect on

the Company’s reserves of higher/lower a priori loss ratio selections, higher/lower loss development factors and higher/lower tail
factors based on amounts recorded at December 31, 2020 was as follows (in millions of U.S. dollars):

A Priori Loss Ratio +5%

Loss Development Factors (up to 10 years) 6 months longer
Tail Loss Development Factors higher by 5% (1)

A Priori Loss Ratio -5%

Loss Development Factors (up to 10 years) 6 months faster
Tail Loss Development Factors lower by 5% (1)

P&C

Specialty

417

528

353

(419)

(299)

(255)

194

547

157

(194)

(212)

(110)

(1) Tail factors are defined as aggregate development factors after 10 years from the inception of an underwriting year.

The Company believes that the illustrated sensitivities to the reserving parameter assumptions are indicative of the potential
variability inherent in the estimation process of those parameters. Some reserving lines show little sensitivity to a priori loss ratio,
loss development factor or tail factor as the Company may use reserving methods such as the Expected Loss Ratio method in several
of its reserving cells within those lines. It is not appropriate to sum the total impact for a specific factor or the total impact for a
specific reserving line as the lines of business are not perfectly correlated.

The validity of all parameter assumptions used in the reserving process is reaffirmed on a quarterly basis. Reaffirmation of the

parameter assumptions means that the actuaries determine that the parameter assumptions continue to form a sound basis for
projection of future liabilities. Parameter assumptions used in projecting future liabilities are themselves estimates based on
historical information. As new information becomes available (e.g., additional losses reported), the Company’s actuaries determine
whether a revised estimate of the parameter assumptions that reflects all available information is consistent with the previous
parameter assumptions employed. In general, to the extent that the revised estimate of the parameter assumptions are within a close
range of the original assumptions, the Company determines that the parameter assumptions employed continue to form an
appropriate basis for projections and continue to use the original assumptions in its models. In this case, any differences could be
attributed to the imprecise nature of the parameter estimation process. However, to the extent that the deviations between the two
sets of estimates are not within a close range of the original assumptions, the Company reacts by adopting the revised assumptions
as a basis for its reserve models. Notwithstanding the above, even where the Company has experienced no material deviations from
its original assumptions during any quarter, the Company will generally review and appropriately revise the reserving parameter
assumptions at least once a year to reflect all accumulated available information.

In addition to examining the data, the selection of the parameter assumptions is dependent on several underlying factors. The

Company’s actuaries review these underlying factors and determine the extent to which these are likely to be stable over the time
frame during which losses are projected, and the extent to which these factors are consistent with the Company’s data. If these
factors are determined to be stable and consistent with the data, the estimation of the reserving parameter assumptions are mainly
carried out using actuarial and statistical techniques applied to the Company’s data. To the extent that the actuaries determine that
they cannot continue to rely on the stability of these factors, the statistical estimates of parameter assumptions are modified to reflect
the direction of the change. The main underlying factors upon which the estimates of reserving parameters are predicated are:

•

the cedant’s business practices will proceed as in the past with no material changes either in submission of accounts or cash
flows;

any internal delays in processing accounts received by the cedant are not materially different from that experienced
historically, and hence the implicit reserving allowance made in loss reserves through the methods continues to be
appropriate;

case reserve reporting practices, particularly the methodologies used to establish and report case reserves, are unchanged
from historical practices;

the Company’s internal claim practices, particularly the level and extent of use of ACRs, are unchanged;

historical levels of claim inflation can be projected into the future and will have no material effect on either the acceleration
or deceleration of claim reporting and payment patterns;

the selection of reserving cells results in homogeneous and credible future expectations for all business in the cell and any
changes in underlying treaty terms are either reflected in cell selection or explicitly allowed in the selection of trends;

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•

in cases where benchmarks are used, they are derived from the experience of similar business; and

the Company can form a credible initial expectation of the ultimate loss ratio of recent underwriting years through a review
of pricing information, supplemented by qualitative information on market events.

The Company’s best estimate of total loss reserves is typically in excess of the midpoint of the actuarial ultimate liability
estimate. The Company believes that there is potentially significant risk in estimating loss reserves for long-tail lines of business and
for immature underwriting years that may not be adequately captured through traditional actuarial projection methodologies as these
methodologies usually rely heavily on projections of prior year trends into the future. In selecting its best estimate of future
liabilities, the Company considers both the results of actuarial point estimates of loss reserves as well as the potential variability of
these estimates as captured by a reasonable range of actuarial liability estimates. The selected best estimates of reserves are always
within the reasonable range of estimates indicated by the Company’s actuaries. In determining the appropriate best estimate, the
Company reviews (i) the position of overall reserves within the actuarial reserve range, (ii) the result of bottom up analysis by
underwriting year reflecting the impact of parameter uncertainty in actuarial calculations, and (iii) specific qualitative information
that may have an effect on future claims but which may not have been adequately reflected in actuarial estimates, such as potential
for outstanding litigation, claims practices of cedants, etc.

During 2020, 2019 and 2018, the Company reviewed its estimate for prior year losses for the P&C and Specialty segments
and, in light of developing data, adjusted its ultimate loss ratios for prior accident years. The net prior years' reserve development for
each segment for the years ended December 31, 2020, 2019 and 2018 is presented in Note 7 to the Consolidated Financial
Statements in Item 18 of this report.

Actual losses paid and reported compared with the Company’s expectations, and the changes of the Company’s reserving

parameter assumptions in response to the emerging development during the year ended December 31, 2020 were as follows:

• P&C: Aggregate losses reported in 2020 for the P&C segment were better than Company's expectations as losses for most
lines of business continue to emerge below expectations. This was partially offset by adverse activity primarily in U.S.
property business.

• Specialty: Aggregate losses reported in 2020 for the Specialty segment were worse than Company’s expectations with
losses for most underwriting years worse than expected. The worse than expected loss emergence within the Specialty
segment was predominantly driven by engineering, multiline and aviation but partially offset by favorable emergence
primarily in financial risks exposures. The Company reflected this experience by adjusting the selected loss ratios
accordingly for these lines of business.

Life and Health Reserves

Life and health reserves relate to the Company’s Life and Health segment, which predominantly includes:

• mortality business originating in Canada and the United States, mortality and morbidity business, covering death, critical
illness and disability risks (with various riders) written in Continental Europe, the U.K., Ireland and in Asia Pacific, and
GMDB business primarily written in France, and

•

longevity business, subdivided into standard annuities written in the U.K, the U.S. and Canada and non-standard annuities
written in the U.K.

The Company categorizes life reserves into three types of reserves: case reserves, IBNR and reserves for future policy
benefits. Case reserves represent unpaid losses reported by the Company’s cedants and recorded by the Company. IBNR reserves
represent a provision for claims that have been incurred but not yet reported to the Company, as well as future loss development on
losses already reported, in excess of the case reserves. Reserves for future policy benefits relate to future events occurring on
policies that are expected to be in force over an extended period of time. Reserves for future policy benefits represent an estimate of
the amount which, together with estimated future premiums and investment income, will be sufficient to pay claims and future
benefits, expenses and costs on in-force policies, as such claims and expenses are incurred.

Reserves for future policy benefits are calculated as the present value of future expected claims, benefits and costs to be paid,

reduced by the present value of future expected premiums. Such liabilities are established based on methods and underlying
assumptions in accordance with U.S. GAAP and applicable actuarial standards. Principal assumptions used in the establishment of
reserves for future policy benefits have been determined based upon information reported by ceding companies, supplemented by
the Company’s actuarial estimates of mortality, critical illness, persistency and future investment income, with appropriate provision
to reflect uncertainty. Case reserves, IBNR reserves and reserves for future policy benefits are generally calculated at the treaty
level. The Company updates its estimates for each of the aforementioned categories on a periodic basis using information received
from its cedants.

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The Company’s gross and net reserves for the Life and Health segment at December 31, 2020 and 2019 were as follows (in

millions of U.S. dollars):

Case reserves

IBNR reserves

Reserves for future policy benefits

Total gross Life and health reserves

Ceded reserves

Net Life and health reserves

December 31, 2020

December 31, 2019

498 $

1,199

1,007

2,704 $

(36)

2,668 $

381

932

1,104

2,417

(16)

2,401

The increase in the Life and Health reserves in 2020 was primarily due to foreign exchange movements and growth in certain

lines of business. The net incurred losses for the Company’s life reserves will generally exceed net paid losses in any one given year
due to the long-term nature of the liabilities and the growth in the book of business.

Life and Health Reserving Methodology

The Company’s reserving methodologies are as follows:

• Mortality: The reserves for the short-term mortality/morbidity business consist of case reserves calculated at the treaty
level based upon cedant information. IBNR is calculated at the line of business level using the ELR method described
above for non-life business.

The reserves for the traditional and limited payment long-duration contracts are established based upon accepted actuarial
valuation methods which require us to make certain assumptions regarding future claims and policy benefits and includes a
provision for adverse deviation. The provision for adverse deviation contemplates reasonable deviations from the best
estimate assumptions for the key risk elements relevant to the product being evaluated, including mortality, disability,
critical illness, expenses, and discount rates. The assumptions are locked in at contract inception and are subject to annual
loss recognition testing (LRT). LRT occurs at the product group level, based on the manner of acquiring, servicing and
measuring profitability of the reinsurance contracts. The LRT framework incorporates deferred acquisition cost (DAC)
recoverability testing and involves determining an LRT reserve by re-measuring the policy benefit liabilities using current
best estimate actuarial assumptions and current discount rates without any provisions for adverse deviation. If the aggregate
LRT reserve is higher than the carrying amount of future policy benefit liabilities, net of DAC and value of life business
acquired (VOBA), for a particular product grouping then a loss recognition event occurs. The DAC and VOBA asset
balances for the given product grouping are first reduced, and if the balances are fully written off, the reserves will be
increased, such that the current best estimate assumptions become the new locked-in basis.

The reserves for the GMDB reinsurance business are established similar to provisions for universal life contracts. Key
actuarial assumptions for this business are mortality, lapses, interest rates, expected returns on cash and bonds and stock
market performance. For the latter parameter, a stochastic option pricing approach is used and the benefits used in
calculating the liabilities are based on the average benefits payable over a range of scenarios. The assumptions of
investment performance and volatility are consistent with expected future experience of the respective underlying funds
available for policyholder investment options. Recorded reserves for GMDB reflect management’s best estimate based
upon actuarial indications.

• Longevity: Reserves for the annuity portfolio of reinsurance contracts within the longevity book are established. Some of
these contracts subject the Company to risks arising from policyholder mortality over a period that extends beyond the
periods in which premiums are collected. The Reserves for future policy benefits follow the reserving methodology
discussed above for long-term traditional mortality.

For standard annuities, the main risk is a higher than expected increase in future life span in the medium to long term. Non-
standard annuities are annuities sold by insurance companies to people with aggravated health conditions and are usually
medically underwritten on an individual basis and the main risk is the inadequate assessment of the future life span of the
insured.

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An example of the sensitivity of the Company’s best estimate gross reserves for Life and Health contracts to reserving

assumptions by product line at December 31, 2020 was as follows (in millions of U.S. dollars, except percentages):

Reserving lines
Longevity

Factors

Standard and non-standard annuities

Mortality improvements per annum

Mortality

Long-term and TCI
GMDB

Mortality
Stock market performance

Change

Increase to total
net Life and Health
reserves

+1% $

+10% $
-10% $

636

851
4

The mortality sensitivities demonstrate the impact to reserves based on current mortality assumptions. As assumptions for

traditional and limited payment long-duration contracts are locked in at contract inception and subject to annual LRT, as described
above, changes in assumptions impacting these contracts may result in an increase to U.S. GAAP reserves if a loss recognition event
occurs.

It is not appropriate to sum the total impact for a specific reserving line or the total impact for a specific factor because the

reinsurance portfolios are not perfectly correlated.

Refer to Note 7 to the Consolidated Financial Statements in Item 18 of this report for disclosures on Life and health reserves.

Reinsurance Recoverable on Paid and Unpaid Losses

The Company has exposure to credit risk related to reinsurance recoverable on paid and unpaid losses. See Note 8 to the
Consolidated Financial Statements in Item 18 and Quantitative and Qualitative Disclosures about Market Risk—Counterparty
Credit Risk in Item 11 of this report for a discussion of the Company’s risk related to reinsurance recoverable on paid and unpaid
losses and the Company’s process to evaluate the financial condition of its reinsurers.

At December 31, 2020 and 2019, the Company recorded $901 million and $889 million, respectively, of reinsurance
recoverable on paid and unpaid losses in its Consolidated Balance Sheets, of which $818 million and $771 million, respectively,
represents reinsurance recoverable on unpaid losses related to the total Non-life and Life and health reserves. The increase in the
reinsurance recoverable during 2020 was primarily due to large catastrophic and large losses incurred, including COVID-19 related
impacts.

At December 31, 2020, the distribution of the Company’s reinsurance recoverables on total Non-life and Life and health

reserves categorized by the reinsurer’s Standard & Poor’s rating was as follows:

Rating Category
AA- or better
A- to A+
Less than A-
Unrated
Total

% of total reinsurance recoverable on
unpaid losses

12 %
31 %
— %
57 %
100 %

At December 31, 2020, 43% of the Company’s reinsurance recoverable on total Non-life and Life and health reserves were

due from reinsurers with A- or better rating from Standard & Poor’s, compared to 36% at December 31, 2019. The remaining
amounts included in Unrated were all collateralized as at December 31, 2020 and 2019.

Currency

The Company’s reporting currency is the U.S. dollar. The Company has exposure to foreign currency risk in part due to its

ownership of its Irish, French and Canadian subsidiaries and branches, whose functional currencies are the Euro and the Canadian
dollar, and certain equity method investments denominated in British pounds.

At December 31, 2020, the value of the U.S. dollar weakened against all major currencies compared to December 31, 2019,

which resulted in an increase in the U.S. dollar value of the assets and liabilities denominated in non-U.S. dollar currencies.

The currency translation adjustment account is a component of Accumulated other comprehensive income or loss in
Shareholders’ equity. The reconciliation of the currency translation adjustment for the years ended December 31, 2020, 2019 and
2018 was as follows (in millions of U.S. dollars):

Currency translation adjustment at beginning of year
Change in foreign currency translation adjustment included in accumulated other
comprehensive loss
Currency translation adjustment at end of year

2020

2019

2018

(60) $

(132) $

(57)

(6)
(66) $

72
(60) $

(75)
(132)

The currency translation adjustment account decreased by $6 million during the year ended December 31, 2020 compared to
an increase of $72 million and a decrease of $75 million during the years ended December 31, 2019 and 2018, respectively, due to
the translation of the financial statements of the Company’s subsidiaries and branches into U.S. dollars.

In addition, the Company has underwriting reinsurance exposures, collecting premiums and paying claims and other expenses

in currencies other than the U.S. dollar and holding certain net assets in such currencies. See Operating Results above for a
discussion of the impact of foreign exchange and net foreign exchange gains and losses during the years ended December 31, 2020,
2019 and 2018.

See Quantitative and Qualitative Disclosures about Market Risk—Foreign Currency Risk in Item 11 for a discussion of the

Company’s risk related to changes in foreign currency movements as well as details of the Company's gross and net foreign
currency exposures and the associated foreign currency derivatives the Company has entered into the manage these exposures. See
also Note 2(m) to the Consolidated Financial Statements in Item 18 of this report for a discussion of currencies to which the
Company is exposed.

Effects of Inflation

The effects of inflation are considered implicitly in pricing and estimating non-life reserves. The actual effects of inflation on

the results of operations of the Company cannot be accurately known until claims are ultimately settled.

Critical Accounting Policies and Estimates

The Company’s Consolidated Financial Statements have been prepared in accordance with U.S. GAAP. The preparation of

financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses
during the reporting period. The following are the Company’s accounting estimates that management believes are the most critical
to its operations and require the most difficult, subjective and complex judgment. If actual events differ significantly from the
underlying assumptions and estimates used by management, there could be material adjustments to prior estimates that could
potentially adversely affect the Company’s results of operations, financial condition and liquidity. These critical accounting policies
and estimates should be read in conjunction with Note 2 to the Consolidated Financial Statements in Item 18 of this report.

Non-life and Life and Health Reserves

The Company’s Non-life and Life and health reserves are significant accounting estimates. These estimates are continually
reviewed with any required adjustments reflected in the periods in which they are determined, which may affect the Company’s
results in future periods. See Liquidity and Capital Resources—Reserves above and Notes 2(b) and 7 to the Consolidated Financial
Statements in Item 18 of this report for further details.

Premium Estimates and Recoverability of Deferred Acquisition Costs

The Company provides proportional and non-proportional reinsurance coverage to cedants (insurance companies). In most
cases, cedants seek protection for business that they have not yet written at the time they enter into reinsurance agreements and thus
have to estimate the volume of premiums they will cede to the Company. Reporting delays are inherent in the reinsurance industry
and vary in length by reinsurance market (country of cedant) and type of treaty. As delays can vary from a few weeks to a year or
sometimes longer, the Company produces accounting estimates to report premiums and acquisition costs until it receives the
cedants’ actual premium reported data.

Under proportional treaties, which represented 74% of the Company’s total gross premiums written for the year ended
December 31, 2020, the Company shares proportionally in both the premiums and losses of the cedant and pays the cedant a
commission to cover the cedant’s acquisition costs. Under this type of treaty, the Company’s ultimate premiums written and earned
and acquisition costs are not known at the inception of the treaty. As such, reported premiums written and earned and acquisition

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costs on proportional treaties are generally based upon reports received from cedants and brokers, supplemented by the Company’s
own estimates of premiums written and acquisition costs for which ceding company reports have not been received. Premium and
acquisition cost estimates are determined at the individual treaty level. The determination of premium estimates requires a review of
the Company’s experience with cedants, familiarity with each market, an understanding of the characteristics of each line of
business and management’s assessment of the impact of various other factors on the volume of business written and ceded to the
Company. Premium and acquisition cost estimates are updated as new information is received from the cedants and differences
between such estimates and actual amounts are recorded in the period in which estimates are changed or the actual amounts are
determined.

Under non-proportional treaties, which represented the remaining 26% of the Company’s total gross premiums written for the
year ended December 31, 2020, the Company is typically exposed to loss events in excess of a predetermined dollar amount or loss
ratio and receives a fixed or minimum premium, which is subject to upward adjustment depending on the premium volume written
by the cedant. In addition, many of the non-proportional treaties include reinstatement premium provisions. Reinstatement
premiums are recognized as written and earned at the time a loss event occurs, where coverage limits for the remaining life of the
contract are reinstated under pre-defined contract terms. The accrual of reinstatement premiums is based on management’s estimate
of losses and loss expenses associated with the loss event.

The magnitude and impact of changes in premium estimates differs for proportional and non-proportional treaties. Although

proportional treaties may be subject to larger changes in premium estimates compared to non-proportional treaties, as the Company
generally receives cedant statements in arrears and must estimate all premiums for periods ranging from one month to more than
one year (depending on the frequency of cedant statements), the impact is mitigated by changes in the cedant’s related reported
acquisition costs and losses. The impact of the change in estimate on premiums earned and net income varies depending on when
the change becomes known during the risk period and the underlying profitability of the treaty. Non-proportional treaties generally
include a fixed minimum premium and an adjustment premium. While the fixed minimum premiums require no estimation,
adjustment premiums are estimated and could be subject to changes in estimates. Changes in premium estimates can be material to
net premiums earned in the period to which they are determined as the adjustments may be substantially or fully earned.

The recoverability of deferred acquisition costs is dependent upon the future profitability of the related business and the testing
of recoverability to assess valuation is performed periodically together with a reserve adequacy test based on the latest best estimate
assumptions by line of business.

See Notes 2(a), 2(c), 8(b) and 18 to the Consolidated Financial Statements in Item 18 of this report and Operating Results—

Results by Segment in Item 5 of this report for accounting policies or further details regarding premiums and recoverability of
deferred acquisition costs.

Recoverability of Deferred Tax Assets

Under U.S. GAAP, a deferred tax asset or liability is to be recognized for the estimated future tax effects attributable to
temporary differences and carryforwards. U.S. GAAP also establishes procedures to assess whether a valuation allowance should be
established for deferred tax assets. All available evidence, both positive and negative, is considered to determine whether, based on
the weight of that evidence, a valuation allowance is needed for some portion or all of a deferred tax asset. Management must use its
judgment in considering the relative impact of positive and negative evidence.

The Company has projected future taxable income in the tax jurisdictions in which the deferred tax assets arise based on
management’s projections of premium and investment income, capital gains and losses, and technical and expense ratios. Based on
these projections and an analysis of the ability to utilize loss and foreign tax credits carryforwards at the taxable entity level,
management evaluates the need for a valuation allowance.

The Company has estimated the future tax effects attributed to temporary differences and had a deferred tax asset at

December 31, 2020 of $154 million, after a valuation allowance of $211 million. The most significant component of the deferred tax
asset (after valuation allowance) related to tax loss carryforwards.

In accordance with U.S. GAAP, the Company has assumed that the future reversal of deferred tax liabilities will result in an

increase in taxes payable in future years. Underlying this assumption is an expectation that the Company will continue to be subject
to taxation in the various tax jurisdictions and that the Company will continue to generate taxable revenues in excess of deductions.

See Notes 2(l) and 12 to the Consolidated Financial Statements in Item 18 of this report for further details.

Valuation of Investments Measured Using Significant Unobservable Inputs

As more fully described in Note 2(g) and 3 to the Consolidated Financial Statements in Item 18 of this report, the Company

measures the fair value of its financial instruments according to a fair value hierarchy that prioritizes the inputs to valuation

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techniques used to measure fair value by maximizing the use of observable inputs and minimizing the use of unobservable inputs by
requiring that the most observable inputs be used when available. Unobservable inputs are inputs that reflect the Company’s
assumptions about what market participants would use in pricing the asset or liability based on the best information available in the
circumstances. Level 3 financial instruments have the least use of observable market inputs used to determine fair value. As at
December 31, 2020, the Company classified $3,723 million of investments as Level 3 as a result of significant unobservable inputs
used to determine fair value. See Note 3 to the Consolidated Financial Statements in Item 18 of this report for a breakdown of these
investments by fair value level as well as more detail on the valuation techniques, methods and assumptions that were used by the
Company to estimate the fair value of its fixed maturities, short-term investments, equities, and other invested assets (including
derivatives). See Notes 2(n) and 5 to the Consolidated Financial Statements in Item 18 of this report for further details on the
Company’s use of derivative financial instruments.

See also Quantitative and Qualitative disclosures About Market Risk in Item 11 of this report for further details on interest rate

and credit spread risk and a sensitivity analysis of interest rate and credit spread variances on the valuation of the Company’s
investments.

Valuation of Goodwill and Intangible Assets

Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in business combinations
(PartnerRe SA, Winterthur Re, Paris Re and Presidio). The Company assesses the appropriateness of its valuation of goodwill on an
annual basis or more frequently if events or changes in circumstances indicate that the carrying amount may not be recoverable. If,
as a result of the assessment, the Company determines that the value of its goodwill is impaired, goodwill will be written down in
the period in which the determination is made. In making an assessment of the value of its goodwill, the Company uses both market
based and non-market based valuations. The fair value of the reporting units is determined based on the price-to-earnings multiples,
book value multiples, and present value of estimated cash flows methods. Significant changes in the data underlying these
assumptions could result in an assessment of impairment of the Company’s goodwill asset. In addition, if the current economic
environment and/or the Company’s financial performance were to deteriorate significantly, this could lead to an impairment of
goodwill, the write-off of which would be recorded against net income in the period such deterioration occurred.

Based upon the Company’s assessment, there was no impairment of the Company’s goodwill asset of $456 million at

December 31, 2020 or 2019.

Intangible assets represent the fair value adjustments related to renewal rights, customer relationships and U.S. licenses arising
from the acquisitions referred to above, and life VOBA and insurance licenses acquired related to the Aurigen acquisition. Definite-
lived intangible assets are amortized over their useful lives while indefinite-lived intangible assets are not subject to amortization.
The carrying values of intangible assets are reviewed for indicators of impairment on an annual basis, or more frequently if events
or changes in circumstances indicate that impairment may exist. Impairment is recognized if the carrying values of the intangible
assets are not recoverable from their undiscounted cash flows and are measured as the difference between the carrying value and the
fair value. Based upon the Company’s assessment, there was no impairment of its intangible assets of $108 million at December 31,
2020 or $118 million at December 31, 2019.

See Notes 2(j), 2(k) and 6 to the Consolidated Financial Statements in Item 18 of this report for further details.

New Accounting Pronouncements

See Note 2(s) to the Consolidated Financial Statements included in Item 18 of this report.

C. Research and Development, Patents and Licenses, etc.

Not applicable.

D. Trend Information

For a discussion of known trends, uncertainties and other events that are reasonably likely to have a material impact on the

Company, see Operating Results in Item 5, Liquidity and Capital Resources in Item 5 and Tabular Disclosure of Contractual
Obligations in Item 5 of this report.

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E. Off-balance sheet arrangements

As more fully described in Note 9 to the Consolidated Financial Statements in Item 18 of this report, the Company has fully

and unconditionally guaranteed the obligations related to debt issued to third parties by its finance subsidiaries as follows:

•

senior notes with an aggregate principal amount of €750 million issued by PartnerRe Ireland Finance DAC

senior notes with an aggregate principal of $500 million issued by PartnerRe Finance B LLC

junior subordinated notes with an aggregate principal of $500 million issued by PartnerRe Finance B LLC

junior subordinated CENts with a remaining aggregate principal amount of $62 million issued by PartnerRe Finance II Inc.

The debt issued by PartnerRe Ireland Finance DAC, and the intercompany notes related to debt issued by PartnerRe Finance B

LLC and PartnerRe Finance II Inc., is included in Debt in the Consolidated Balance Sheet at December 31, 2020.

F. Tabular Disclosure of Contractual Obligations

In the normal course of its business, the Company is a party to a variety of contractual obligations as summarized below.

These contractual obligations are considered by the Company when assessing its liquidity requirements and the Company is
confident in its ability to meet all of its obligations. Contractual obligations at December 31, 2020 were as follows (in millions):

Total

< 1 year

1-3 years

3-5 years

> 5 years

Contractual obligations:
Operating leases (1)
Other operating agreements
Other invested assets (2)
Payables for securities purchased
Non-life reserves (3)
Life and health reserves (4)
Deposit liabilities

Senior notes and preferred shares:
2029 senior notes—principal (5)
2029 senior notes—interest (5)
2026 senior notes—principal (5)
2026 senior notes—interest (5)
2050 junior subordinated notes—principal (5)
2050 junior subordinated notes—interest (5), (6)
Capital efficient notes—principal (5), (7)
Capital efficient notes—interest (5), (7)
Series G cumulative preferred shares—principal (8)
Series G cumulative preferred shares—dividends (8)
Series H cumulative preferred shares—principal (8)
Series H cumulative preferred shares—dividends (8)
Series I non-cumulative preferred shares—principal (8)
Series I non-cumulative preferred shares—dividends (8)

€

114.2 $

15.4 $

27.0 $

23.6 $

38.2 $

26.6 $

8.6 $

2.3 $

793.1 $ 318.1 $ 450.0 $

25.0 $

286.1 $ 286.1 $

— $

$ 11,395.3 $ 3,945.5 $ 3,373.3 $ 1,644.9 $

$ 3,654.3 $ 453.5 $ 648.9 $ 423.4 $

5.9 $

0.8 $

1.6 $

2.3 $

500.0 $

— $

157.3 $

9.3 $

37.0 $

750.0 €

— €

56.4 €

9.4 €

18.8 €

48.2

0.7

—

2,431.6

2,128.5

1.2

500.0

74.0

750.0

9.4

500.0 $
n/a $

62.5 $
n/a

— $
22.5 $

— $
45.0 $

— $

—(7)

160.4 $

— $

500.0
45.0 $ 112.5(6)
62.5
—(7)
160.4

— $

—(7)

n/a $

10.4 $

20.8 $

20.8

$10.4 per annum

293.8 $

— $

293.8

n/a $

21.3 $

42.6 $

42.6

$21.3 per annum

183.0 $

— $

183.0

n/a $

10.8 $

21.6 $

21.6

$10.8 per annum

n/a: Not applicable
(1) The Company has lease commitments of $30 million related to leases that will not commence until 2021, with contractual lease

terms of up to 10 years. As these leases have not yet commenced, the commitments are not included in the Consolidated
Balance Sheet at December 31, 2020, but are included in the table above.

(2) The amounts above for other invested assets represent the Company’s expected timing of funding capital commitments related

to its investments portfolio.

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(3) The Company’s non-life reserves represent management’s best estimate of the cost to settle the ultimate liabilities based on
information available at December 31, 2020, and are not fixed amounts payable pursuant to contractual commitments. The
timing and amounts of actual loss payments related to these reserves might vary significantly from the Company’s current
estimate of the expected timing and amounts of loss payments based on many factors, including large individual losses as well
as general market conditions.

(4) Life and health reserves in the table above are presented on an undiscounted basis.
(5) See Note 9 to the Consolidated Financial Statements in Item 18 of this report for further details.
(6) Interest on these notes is payable semi-annually at an annual fixed rate of 4.500% until the first reset date on October 1, 2030.
From the first reset date, and resetting every five years thereafter, the notes will bear interest at an annual rate equal to the
five-year treasury rate plus 3.815%. As a result of the variable interest rate, the table above does not show interest payable
after the first reset date. See Note 9 to the Consolidated Financial Statements in Item 18 of this report for further details.
(7) The aggregate principal amount of the CENts of $62 million included above represents PartnerRe Finance II Inc.'s debt to

third parties. Interest on the CENts is payable quarterly until maturity at an annual rate of 3-month LIBOR plus a margin equal
to 2.325%. As a result of the variable interest rate, the table above does not show the interest payable.

(8) See Note 10 to the Consolidated Financial Statements in Item 18 of this report for further details. The Company's preferred
shares have no mandatory redemption requirement. The Company utilized a portion of the proceeds of the issuance of 2050
junior subordinated notes on the redemption of Series F preferred shares in 2020, and expects to utilize the remaining proceeds
to redeem additional preferred shares and for other general corporate purposes in 2021.

The Contractual Obligations and Commitments table above does not include an estimate of the period of cash settlement of its

tax liabilities with the respective taxing authorities given the Company cannot make a reasonably reliable estimate of the timing of
cash settlements.

Due to the limited nature of the information presented above, it should not be considered indicative of the Company’s liquidity

or capital needs. See Liquidity section above.

The Company has committed to a 10-year structured letter of credit facility issued by a high credit quality international bank,

which has a final maturity of December 31, 2024. At December 31, 2020, the Company’s participation in the facility was $69
million. At December 31, 2020, the letter of credit facility has not been drawn down and can only be drawn down in the event of
certain specific scenarios, which the Company considers remote. Unless canceled by the bank, the credit facility automatically
extends for one year, each year until maturity.

G. Safe Harbor

PartnerRe Ltd. has made statements in this annual report on Form 20-F that are forward-looking statements. In some cases,

you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expects,” “plans,”
“anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” the negative of these terms and other comparable
terminology. These forward-looking statements, which are subject to various risks, uncertainties and assumptions about us, may
include projections of our future financial performance, our anticipated growth strategies and anticipated trends in our business.
These statements are only predictions based on our current expectations and projections about future events. There are important
factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level
of activity, performance or achievements expressed or implied by the forward-looking statements, including those factors described
in Risk Factors in Item 3.D of this report.

Accordingly, we cannot guarantee future results, level of activity, performance or achievements. Forward-looking statements,

subject to the risks, uncertainties and assumptions described above, speak only as of the date on which they are made, and we
assume no obligation to update or revise any forward-looking statements or other information contained herein, whether as a result
of new information, future events or otherwise. You are cautioned not to put undue reliance on these forward-looking statements.
Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-
looking statements.

H. Non-GAAP Financial Measures

The Company has not presented or discussed any non-GAAP financial measures in this report as an addition to or substitute

for measures of financial performance prepared in accordance with U.S. GAAP.

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ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

A. Directors and Senior Management

The following are the directors and executive officers of the Company as of February 25, 2021.

Name

Brian Dowd
Mary Ann Brown

Hermann Pohlchristoph

Enrico Vellano

Jacques Bonneau

Nicolas Burnet

Scott Altstadt

Position with the Company

Director, Chairman of Audit Committee and Chairman of the Board

Director, Member of the Audit Committee

Director, Member of the Audit Committee
Director (1)
Director, President and CEO, PartnerRe Ltd.(2)
Executive Vice President and CFO, PartnerRe Ltd. (3)
Chief Underwriting Officer

Marc Archambault

CEO Life and Health

Dorothée Burkel

Chief Corporate and People Operations Officer

Turab Hussain

Tom Leone

Philippe Meyenhofer

Chief Risk and Actuarial Officer
Chief Investment Officer (4)
CEO Specialty Lines

James Beedle

Greg Haft

Jonathan Colello

Andrew Gibbs

CEO P&C APAC

CEO Global Catastrophe

CEO P&C Americas

Chief Operations Officer

Christian Mitterer

CEO P&C EMEA

Simon Clifford

Andrew Hughes

Gerd Maxl

CUO Life & Health

CEO Third Party Capital

Chief Legal Counsel

Date Appointed

March 18, 2016
September 1, 2018

February 4, 2021

February 18, 2021
July 28, 2020

February 7, 2020

July 1, 2016

April 1, 2017

October 2, 2017

December 2, 2017

February 18, 2021

April 1, 2019

July 1, 2019

October 14, 2019

December 10, 2020

October 30, 2020

February 1, 2021

February 18, 2021

(1) Enrico Vellano joined as Director, PartnerRe Ltd. on February 18, 2021, succeeding John Elkann as EXOR's representative.
(2) Jacques Bonneau joined as Independent Director and Member of the Audit Committee, PartnerRe Ltd. on February 20, 2019
and assumed the role of Director, President and CEO effective July 28, 2020. Emmanuel Clarke was Director, President and
CEO, PartnerRe Ltd. during a portion of 2020 and resigned from those roles effective July 28, 2020.

(3) Mario Bonaccorso was Executive Vice President and CFO, PartnerRe Ltd. during a portion of 2020 and resigned as CFO

effective April 1, 2020 and resigned as Executive Vice President effective December 31, 2020.

(4) Nikhil Srinivasan was Chief Investment Officer, PartnerRe Ltd. during 2020 and a portion of 2021 and Tom Leone assumed the

role of Chief Investment Officer effective February 18, 2021.

Biographical information

•

Brian Dowd, Director, Chairman of the Board and Audit Committee (Independent)

Brian Dowd is Chairman of PartnerRe and was formerly Vice Chairman of ACE Limited and a member of the ACE Group’s
Office of the Chairman before his retirement in 2015. Mr. Dowd focused on underwriting-related matters including oversight of
the Group’s product boards, the general underwriting disciplines of the company’s profit centers, outward reinsurance
placements and run-off operations, as well as special strategic projects. Mr. Dowd previously held relevant positions at ACE
from 1997 until his appointment as Chairman of ACE’s Insurance – North America business segment in 2006. He held the role
of Vice Chairman, ACE Limited from 2009. Prior to 1997, Mr. Dowd held underwriting positions of increasing responsibility at
Arkwright Mutual Insurance Company over a seven-year period. He is Chairman of the Board for ABR Reinsurance Ltd. Mr.
Dowd holds a Bachelor of Science in Finance from Northern Illinois University as well as the Chartered Property Casualty
Underwriter (CPCU) professional designation.

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•

Enrico Vellano, Director

Enrico Vellano is Chief Financial Officer of EXOR. Mr. Vellano was born in Torino in 1967 and graduated in Economics at the
University of Torino. In 1992, he started his professional career at Arthur Andersen. In 1995, he joined SAI Assicurazioni
where he specialized in the management of equities and bond portfolios. In 1997, he started his working experience at IFIL, the
investment company controlled by the Agnelli Family. He held increasingly relevant positions until 2006 when he was named
Chief Financial Officer of IFIL, which was merged in 2009 to create EXOR S.p.A. From December 2016, EXOR S.p.A. was
merged into EXOR N.V. based in Amsterdam. Mr. Vellano is also a board member of Almacantar, Welltec, Juventus Football
Club and Paris Office JV Ltd.

• Mary Ann Brown, Director, Member of the Audit Committee (Independent)

Mary Ann Brown was Chair of Pacific Life Re and has held multiple roles at Pacific Life before her retirement in 2017. As
Chair of Pacific Life Re Ltd., Ms. Brown directed strategy and growth of the global reinsurance division. Prior to joining
Pacific Life, Ms. Brown held multiple executive roles at MetLife, Swiss Re and New York Life. She holds a Bachelors and
Masters of Arts in Education from Emory University, USA as well as a Masters of Actuarial Science from Georgia State
University.

• Hermann Pohlchristoph, Director, Member of the Audit Committee (Independent)

Hermann Pohlchristoph has held multiple executive roles, most recently at Munich Re as a Member of the Board of
Management from 2017 to 2020 and as CFO Reinsurance, Munich Re from 2006 to 2017. Prior to that, he served as Head of
Financial Reporting and Accounting, Munich Re for two years. He obtained a degree in business administration at the
Universities Bayreuth and Mainz, Germany.

•

Jacques Bonneau, Director, President and CEO, PartnerRe Ltd.

Jacques Bonneau is a member of PartnerRe’s Executive Leadership Team and is responsible for the strategic direction and
management of the Company. Mr. Bonneau has over 40 years of professional experience in the re/insurance industry. Prior to
becoming CEO and President of PartnerRe Ltd. in July 2020, he served as an independent director of the Company's Board of
Directors and a member of the Audit Committee since February 2019. He has held multiple executive roles, most recently at
Chubb Ltd. as Group Chief Underwriting Officer from 2015 to 2017 and as CEO, Chubb Tempest Re Group from 2005 to
2014. Prior to that, he served as CEO, Chubb Tempest Re USA from 1999 to 2005. He holds a Bachelor’s degree of Commerce
from Carleton University, Ontario as well as a Masters of Business Administration from Queen’s University, Ontario.

•

Nicolas Burnet, Executive Vice President and CFO, PartnerRe Ltd.

Nicolas Burnet is a member of PartnerRe’s Executive Leadership Team responsible for the Company’s Finance, Risk
Management and Actuarial functions. Prior to joining PartnerRe in 2020, Mr. Burnet spent nearly 16 years with Zurich
Insurance Group where he was a member of the Leadership Team and held various senior leadership roles over the years, most
notably: Group Head of Planning and Performance Management 2016 – 2020; General Insurance CFO 2015 – 2016, Global
Life CFO 2012 – 2015, Chief Risk Officer Global Life 2011 – 2012 and Chief Operating Officer for Zurich’s Centrally
Managed Businesses 2007 – 2010. Mr. Burnet joined Zurich in 2004 from Neuberger Berman and prior to that worked for JP
Morgan and Price Waterhouse. Mr. Burnet holds a Bachelor's degree in Finance from Saint Joseph's University and a Master's
degree in business administration from Cornell University's Johnson Graduate School of Management.

•

Scott Altstadt, Chief Underwriting Officer

Scott Altstadt is a member of PartnerRe’s Executive Leadership Team and has executive responsibility for the Company’s
underwriting and claims functions. Mr. Altstadt has over 25 years of professional experience in the insurance/reinsurance
industry. He joined PartnerRe in 2001, as Senior Pricing Actuary of P&C and was appointed as Chief Pricing Actuary for
Specialty Lines in 2002, becoming Deputy Head of P&C in 2008. He was appointed to the position of Chief Underwriting
Officer PartnerRe Global in 2013. Prior to joining PartnerRe, Mr. Altstadt worked in the U.S. and Europe with Zurich Financial
Services and CNARe. Mr. Altstadt has a B.S. in Mathematics and Statistics from Purdue University.

• Marc Archambault, CEO Life and Health

Marc Archambault is a member of PartnerRe’s Executive Leadership Team and is responsible for the Company’s worldwide
Life & Health business segment. Mr. Archambault has more than 25 years of experience in life reinsurance, most recently as
CEO of SCOR Global Life Asia-Pacific, where he led the company’s regional growth strategy in those markets, and as a
member of the senior management team for Global Life. Prior to that, Mr. Archambault held a number of senior management
positions at SCOR where he implemented growth strategies and product development initiatives across multiple international
markets in Europe, North America, Asia and Africa. Mr. Archambault holds a Bachelor of Actuarial Science from Laval
University in Quebec, Canada and is an Associate with the Canadian Institute of Actuaries.

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•

Dorothée Burkel, Chief Corporate and People Operations Officer

Dorothée Burkel is a member of PartnerRe’s Executive Leadership Team and has executive responsibility for IT, Facilities and
for strategies related to attracting, developing and retaining the best talent, aligning culture and strategy, and
ensuring governance and operational effectiveness. Mrs. Burkel specializes in Human Resources & Communications and has
experience across a number of international companies. Prior to joining PartnerRe, Mrs. Burkel was formerly the Human
Resources Director for Google Southern Europe from 2008 – 2012. In 2012, this role was extended to include the Middle East
and Africa and in 2015, to the entire EMEA region where she supported Google’s Business and G&A functions. Mrs. Burkel
worked for AOL France from 2001 – 2005 as the Human Resources Director and was promoted to Vice President for Human
Resources and Corporate Communications for AOL France in 2005. Before leaving in 2008, she also took on the responsibility
for Branding and Communications for AOL Europe. Mrs. Burkel holds a Master’s degree in French Modern Literature and
graduated with honors in Political Sciences from the Institut d’Etudes Politiques in Paris.

•

Turab Hussain, Chief Risk and Actuarial Officer

Turab Hussain is a member of PartnerRe’s Executive Leadership Team and is responsible for the risk management, capital
modeling and reserving functions. Mr. Hussain has more than 20 years’ experience in the insurance and reinsurance industries.
Prior to joining PartnerRe, Mr. Hussain held several senior actuarial and underwriting roles with responsibility for reserving,
risk assessment, capital allocation and analysis at the Hartford as well as Arch Insurance Group and American Reinsurance. Mr.
Hussain is an Associate of the Casualty Actuarial Society (ACAS), a Member of the American Academy of Actuaries (MAAA)
and a Chartered Enterprise Risk Analyst (CERA). He earned his bachelor’s degree in economics and statistics from Rutgers
University.

•

Tom Leone, Chief Investment Officer

Tom Leone is a member of PartnerRe's Executive Leadership Team and is responsible for the Company's investments. Mr.
Leone joined PartnerRe in 2013 as Portfolio Manager, Global Governments. He was appointed to Head of Public Fixed Income
in 2019. Prior to joining PartnerRe, Mr. Leone spent seven years at Genworth Financial on the derivatives desk performing
group asset liability management. He holds a Bachelor's degree in Finance from Bryant College and a Master's degree from The
Rensselaer Polytechnic Institute.

•

Philippe Meyenhofer, CEO Specialty Lines

Philippe Meyenhofer is a member of PartnerRe’s Executive Leadership Team and has executive responsibility for the
Company’s Specialty business segment. Mr. Meyenhofer joined PartnerRe in 2010 as Head of Financial & Professional Lines
PartnerRe Global. He was appointed to Head of Specialty Casualty PartnerRe Global in 2013, to Head of Europe P&C in 2016,
and gained the additional responsibility of Deputy CEO P&C in 2018. In 2019, he was named CEO of the Company’s P&C
EMEA regional unit. Mr. Meyenhofer was previously with Transatlantic Re, has over 16 years of industry experience and
strong, proven business leadership skills. He holds a Master of Law degree from the University of Fribourg, Switzerland, and a
MBA from the University of Chicago Booth School of Business.

•

James Beedle, CEO P&C APAC

James Beedle is a member of PartnerRe’s Executive Leadership Team and has executive responsibility for the Company’s P&C
Asia-Pacific regional business unit and its Global Clients and Broker Management unit. Mr. Beedle is also CEO of Partner
Reinsurance Asia Pte. Ltd. Mr. Beedle has over 30 years of experience in reinsurance and reinsurance broking, strong strategic
leadership capabilities and deep regional knowledge of Asia-Pacific markets. Mr. Beedle joined PartnerRe in 2017 as Head of
Asia-Pacific P&C & CEO Partner Reinsurance Asia Pte. Ltd. from Willis Re, most recently as Senior Managing Director of
Willis Re Asia-Pacific. His previous roles within Willis Re include COO Willis Re Australia and CEO Willis Re Japan. Mr.
Beedle has a BA (Hons) in Economics from the University of York, England, is an Associate of the Chartered Insurance
Institute and Executive Committee member of the Singapore Reinsurers’ Association.

• Greg Haft, CEO Global Catastrophe

Greg Haft is a member of PartnerRe’s Executive Leadership Team and has executive responsibility for the Company’s Global
Catastrophe business unit. Mr. Haft has over 25 years of industry experience, combining a strong skill-set of actuarial,
reinsurance business and leadership capabilities spanning property, casualty and specialty lines. Mr. Haft joined PartnerRe in
2013 as Head of Catastrophe, Bermuda. In 2016, he was appointed to Head of Global Cat and Property North America, and
thereafter to Deputy CEO Specialty Lines and leader of Specialty Lines’ Property, Marine and Energy (PME) unit and in 2019,
he held executive responsibility for the Company's Specialty business segment. Prior to joining PartnerRe, Mr. Haft was
Managing Director, Head of U.S. Property Catastrophe Underwriting at Markel Corporation. Mr. Haft holds a B.S.
Mathematics and Statistics from the University of Michigan, is a Fellow of the Casualty Actuarial Society and a Certified Cat
Risk Analyst.

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•

Jonathan Colello, CEO P&C Americas

Jonathan Colello is a member of PartnerRe’s Executive Leadership Team and has executive responsibility for leading
PartnerRe’s P&C business in the US, Canada and Latin America, and for the Company’s Health business in the U.S. Mr.
Colello is also President of Partner Reinsurance Company of the U.S. Mr. Colello has extensive reinsurance experience and has
spent the majority of his 20 plus year career in the industry. Most recently, he was President North America at AXIS Re in the
US where he had overall responsibility for underwriting platforms in Bermuda, Canada and the United States, and served as a
member of the Reinsurance Leadership Team. Prior to that, he held several leadership positions within AXIS Re since joining
the company in 2004. Mr. Colello holds an MBA from New York University’s Stern School of Business and a Bachelor of
Science in Business from the University of Vermont.

•

Andrew Gibbs, Chief Operations Officer

Andrew Gibbs is a member of PartnerRe’s Executive Leadership Team and has executive responsibility for the Company’s
end-to-end underwriting support processes which includes: underwriting support, reinsurance accounting, payments and
collections, as well as transformation, third party management and procurement. Mr. Gibbs has more than 30 years of
professional experience in insurance, reinsurance, regulatory compliance and financial services, having held senior positions
with the Bermuda Monetary Authority, Validus Holdings Ltd., ACE Group of Companies (now Chubb Group of Companies)
and Ernst & Young. Prior to joining PartnerRe, Mr. Gibbs held the position of Executive Chairman at Maiden Reinsurance Ltd.
Mr. Gibbs has a BA in Economics from the University of Essex in England and is a Chartered Accountant and a Chartered
Insurer, a Fellow of the Institute of Chartered Accountants in England & Wales and holds an Advanced Diploma in Insurance
from the Chartered Insurance Institute and a Diploma in Company Direction from the Institute of Directors.

•

Christian Mitterer, CEO P&C EMEA

Christian Mitterer is a member of PartnerRe’s Executive Leadership Team and has executive responsibility for the Company's
P&C EMEA regional business unit. Mr. Mitterer has over 14 years of experience in both the reinsurance and banking industries
with proven business leadership skills and strong focus on execution. Mr. Mitterer joined the Company in 2012 as Senior
Underwriter, Specialty Casualty. In 2015, he was named Head of Financial & Professional Lines and thereafter Head of
Specialty Casualty, Europe P&C in 2016 and Head of Specialty Casualty, P&C EMEA in 2019. In 2020, he was named Head of
EMEA P&C followed by this appointment as CEO P&C EMEA. Prior to joining the Company, Mr. Mitterer was with AIG in
Zurich and London. Mr. Mitterer holds a degree in business administration from the University of Passau, Germany.

•

Simon Clifford, CUO Life & Health

Simon Clifford is a member of PartnerRe’s Executive Leadership Team and has executive responsibility for the Company’s
Life and Health underwriting functions. He brings over 25 years of experience in life insurance, with deep experience in
actuarial and financial analysis and management. Prior to joining PartnerRe in 2020, Mr. Clifford was with Zurich Insurance
Group, where he most recently held the position of Head of Life Legacy UK for Zurich UK Life. Prior to that, he held various
positions, including Global Head of Life Technical Excellence, Global Head of Proposition Management and CFO of Zurich
International Life. Simon is an actuary and graduated with a Bachelor’s degree in mathematics and a Master’s degree in applied
statistics from the University of Oxford.

•

Andrew Hughes, CEO Third Party Capital

Andrew Hughes is a member of PartnerRe’s Executive Leadership Team and has executive responsibility for the Company's
third-party capital business initiatives. Mr. Hughes has over 12 years of experience in investment management. Mr. Hughes
joins PartnerRe from Hiscox ILS, where he held various roles between 2015 and 2020, initially as General Counsel and Chief
Compliance Officer and most recently as Managing Principal where he was responsible for strategy and operations of the
Hiscox ILS platform. Prior to that, he was counsel as QIC Limited, an Australian diversified alternatives asset manager, and
various international law firms. Mr. Hughes is a triple qualified attorney (England & Wales; Queensland, Australia; Bermuda)
with a background in insurance linked securities, alternative asset management, banking securitization and structured finance.
Mr. Hughes holds a B.A. in Law and Information from the University of Exeter, England.

• Gerd Maxl, Chief Legal Counsel

Gerd Maxl is a member of PartnerRe's Executive Leadership Team and has overall responsibility for the legal and compliance
functions of the Company. Mr. Maxl has more than 17 years of experience in life and non-life (re)insurance. Mr. Maxl joined
the Company in November 2012 as General Counsel Global looking after PartnerRe's legal and compliance matters outside of
Bermuda and North America and was promoted to Chief Legal Counsel in August 2017. Prior to joining PartnerRe, Mr. Maxl
was an associate in a law firm in Switzerland and thereafter worked for over nine years for the Zurich Insurance Group in a
number of positions in Switzerland and the U.S. Mr. Maxl has a law degree from the University of Basel, Switzerland and was
admitted to the bar in Switzerland in 2001.

The Directors referred to above as "Independent" are considered independent in accordance with the definition of the

applicable NYSE and SEC Rules.

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B. Compensation

Executive Compensation

Executive compensation is comprised of salary, annual incentives, long-term incentive and other benefits. The long-term
incentive (LTI) program consists of awards either in the form of deferred cash or restricted Class B common shares (Class B shares)
issued to certain executives.

For the year ended December 31, 2020, the Company recorded compensation expense of $31 million paid or payable to

executives as a form of cash compensation. In addition, for the year ended December 31, 2020, certain executives were granted
restricted Class B shares and the Company recorded compensation expense of $9 million related to Class B shares held by certain
executives.

The compensation expense for restricted Class B shares granted to executives is recognized at fair value over the restriction
period of up to three years from date of grant. See Note 13 to the Consolidated Financial Statements in Item 18 of this report for
further details. See also Item 6.E below for details of share ownership related to the Class B shares and Item 10.D regarding
restrictions on share transfers.

Director Compensation

The Company paid approximately $1 million in cash as compensation to non-executive directors of the Company for their

services as directors in 2020. For the year ended December 31, 2020, certain non-executive directors of the Company were issued
Class B shares and the Company recorded compensation expense of less than $1 million related to these shares. Executive directors
do not receive any compensation for their services as directors. All directors are reimbursed for travel and other related expenses
personally incurred while attending Board or committee meetings.

See Note 13 to the Consolidated Financial Statements in Item 18 of this report for further details. See also Item 6.E below for

details of share ownership related to the Class B shares and Item 10.D regarding restrictions on share transfers.

C. Board Practices

The Board currently consists of five directors (see Item 6.A above for details). The current Board have been elected to serve
until the next Annual General Meeting of the Company or until their respective successors are appointed. As provided in our Bye-
Laws, the number of Directors shall be such number not less than three as the Company by resolution may, from time to time,
determine (see also Item 10.B for the details of the Company's Bye-laws).

There are no service contracts between the Company and any of the Company’s directors providing for benefits upon

termination of their employment or service.

Audit Committee

The Board has established an Audit Committee comprised of Mr. Dowd (Chairman), Ms. Brown and Mr. Pohlchristoph who

are independent in accordance with the definition of the applicable NYSE and SEC Rules. Ms. Brown is designated as the Audit
Committee financial expert as noted in Item 16A of this report.

Pursuant to its charter, the Audit Committee’s primary responsibilities are to assist Board oversight of:

•

the integrity of PartnerRe’s financial statements;

• PartnerRe’s compliance with legal and regulatory requirements;

•

the Company's system of internal controls;

the qualifications and independence of the external auditors; and

the performance of the Company's internal and external audit functions.

The Audit Committee regularly meets with management, the Chief Audit Officer and the Company's independent registered

public accounting firm to review matters relating to the quality of financial reporting and internal accounting controls, including the
nature, extent and results of their audits.

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Underwriting and Risk Committee

The Board, in 2019, established an Underwriting and Risk Committee. The URC is comprised of Ms. Brown (Chair), Mr.

Bonneau and Mr. Dowd.

The purpose of the URC, as per its charter, is to review the Company's (i) policies, guidelines and processes relating to the

underwriting of reinsurance risks and assumption of investment risks and (ii) Enterprise Risk Management Framework. The URC
meets regularly with management.

Investment Committee

The Board, in November 2020, established an Investment Committee. The Investment Committee is comprised of Mr. Dowd

(Chair) and Mr. Bonneau. It is the intent of the Board to appoint Mr. Vellano as a member of the Investment Committee.

The purpose of the Investment Committee is to (i) consider and advise the Board on certain investment matters that the Board
and the Investment Committee each believe are more appropriately considered by the Investment Committee rather than the Board
and (ii) discuss appropriate practices for the Company, including the Company's policies, guidelines, performance, risk management
and processes relating to the investment operations undertaken by the Company.

D. Employees

The Company had 1,078 employees at December 31, 2020. The following table shows the breakdown of the number of

employees by geographic location as of December 31, 2020, 2019 and 2018:

Geographic location

Asia, Australia and New Zealand

Europe

Latin America, Caribbean and Africa

North America

Total

December 31,
2020

December 31,
2019

December 31,
2018

580

416

551

391

1,078

1,008

541

362

958

In addition to the above, the Company employed an average of 50 temporary employees during 2020.

The increase in the number of employees in 2020 compared to 2019 and 2018 was primarily driven by growth in the Life and

Health segment.

E. Share ownership

As more fully described in section B. Compensation above, and in Note 13 to the Consolidated Financial Statements in Item

18 of this report, the Company has designated, granted and issued Class B shares to certain executives and directors of the
Company.

As of February 25, 2021, 100,000,000 Class A common shares are held by EXOR Nederland N.V. and 274,664 Class B shares
are held by certain executive officers and directors of the Company, either by grant of restricted or by purchase of unrestricted Class
B shares.

The Class B shares issued and outstanding represent less than 0.3% of the beneficial ownership and voting rights of the

Company as of February 25, 2021.

Except as otherwise required by law or the Certificate of Designation, or any sub-plan or addendum thereto, holders of Class B

shares have the same voting rights as the holders of Class A common shares.

ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

A. Major Shareholders

As more fully described in Note 1 to the Consolidated Financial Statements in Item 18 of this report, 100% of the Company's

Class A shares are owned by EXOR Nederland N.V.

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B. Related Party Transactions

As at December 31, 2020 and 2019, EXOR Nederland N.V. held 100% of the Class A shares and more than 99% of the total

voting shares (Class A and Class B) of the Company and therefore has the power to make decisions that impact the Company.

The Company has entered into certain related party transactions as disclosed in Notes 9 and 17 to the Consolidated Financial

Statements in Item 18 of this report.

C. Interests of Experts and Counsel

Not applicable.

ITEM 8. FINANCIAL INFORMATION

A. Consolidated Statements and Other Financial Information

See the Consolidated Financial Statements, Notes to the Consolidated Financial Statements and Financial Statements

Schedules in Item 18 of this report.

B. Significant Changes

See Note 19 to the Consolidated Financial Statements in Item 18 for a disclosure of events subsequent to year end and prior to

the date of filing.

ITEM 9. THE OFFER AND LISTING

A. Offer and Listing Details

The Company’s common shares are no longer listed as a result of the acquisition by EXOR N.V. in March 2016. The
Company’s preferred shares are listed on the NYSE under the symbols PRE-G, PRE-H, and PRE-I. Refer to Note 10 to the
Consolidated Financial Statements in Item 18 of this report for further details.

B. Plan of Distribution

Not applicable.

C. Markets

Each series of the Company’s preferred shares is listed and traded on the NYSE. The 6.50% Series G Cumulative Preferred
Shares, the 7.25% Series H Cumulative Preferred Shares and the 5.875% Series I Non-Cumulative Preferred Shares began trading
on May 6, 2016. The 5.875% Series F Non-Cumulative Preferred Shares, which began trading on February 19, 2013, were fully
redeemed on October 22, 2020.

D. Selling Shareholders

Not applicable.

E. Dilution

Not applicable.

F. Expenses of the Issue

Not applicable.

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ITEM 10. ADDITIONAL INFORMATION

A. Share Capital

Not applicable.

B. Memorandum and Articles of Association

The Company’s Amended Memorandum of Association has been filed as exhibit 3.1 to Form F-3 (File No. 333-7094) filed

with the SEC on June 20, 1997, and is hereby incorporated by reference into this Annual Report.

The Company’s amended Bye-Laws were adopted on December 19, 2019, and have been filed as exhibit 1.2 to the Company's

Annual Report on Form 20-F (File No. 001-14536) filed with the SEC on March 2, 2020, and are hereby incorporated by reference
into this Annual Report.

Corporate Registration and Objectives

PartnerRe Ltd. is incorporated under the laws of Bermuda. The Company is registered at the Bermuda Registrar of Companies

under registration number 18620. The objects and powers of the Company are set forth in the Memorandum of Association of the
Company.

Board of Directors

The Companies Act authorizes the directors of a company, subject to its bye-laws, to exercise all powers of the company
except those that are required by the Companies Act or its bye-laws to be exercised by the shareholders. The Company's Bye-Laws
provide that its business is to be generally managed and conducted by the Board and that the Board shall be such number not less
than three as the Company by resolution may, from time to time, determine. The Directors shall be elected or appointed at the
Annual General Meeting, at any Special General Meeting called for that purpose or by Resolution. Directors shall hold office for
such term as the Shareholders may determine or, in the absence of such determination, until the next Annual General Meeting or
until their successors are elected or appointed or their office is otherwise vacated.

Under the Insurance Act, the Company must serve notice to the BMA of the fact that any person has become or ceased to be a

director or officer of the Company. Such notice shall be served before the end of forty-five days beginning with the day on which
the designated insurer becomes aware of the relevant facts.

Under the Company’s Bye-Laws and subject to the Companies Act, a Director is not prohibited from being a party to or
otherwise have an interest in, any transaction or arrangement with the Company or in which the Company is otherwise interested. A
Director who has complied with the Companies Act and with the Company’s Bye-Laws with regard to declaring the nature of his
interest in a transaction or arrangement with the Company, or in which the Company is otherwise interested, may be counted in the
quorum and vote at any meeting at which such transaction or arrangement is considered by the Board.

In addition to its powers granted under Bye-Law 27, the Majority Common Shareholder for and on behalf of the Company

may provide benefits, whether by the payment of gratuities or pensions or otherwise, for any person including any Director or
former Director who has held any executive office or employment with the Company or with any body corporate which is or has
been a subsidiary or Affiliate of the Company or a predecessor in the business of the Company or of any such subsidiary or
Affiliate, and to any member of his family or any person who is or was dependent on him, and may contribute to any fund and pay
premiums for the purchase or provision of any such gratuity, pension or other benefit, or for the insurance of any such person.

The Company may in a Special General Meeting called for that purpose remove a Director, provided notice of any such
meeting shall be served upon the Director concerned not less than fourteen (14) days before such meeting and s/he shall be entitled
to be heard at such meeting. The Shareholders may authorize the Directors to fill any vacancy in their number, from time to time.

Under the Company’s Bye-Laws the quorum necessary for the transaction of the business of the Board may be fixed by the

Board and, unless so fixed at any other number, shall be three (3) individuals and requires the presence of at least one Majority
Shareholder Director Designee for so long as the Board consists of at least one Majority Shareholder Director Designee. Any
Director who ceases to be a Director at a meeting of the Board may continue to be present and to act as a Director and be counted in
the quorum until the termination of the meeting if no other Director objects and if otherwise a quorum of Directors would not be
present.

A resolution in writing signed by all the Directors for the time being entitled to receive notice of a meeting of the Board shall

be valid and effectual as a resolution passed at a meeting of the Board.

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A meeting of the Board or a committee appointed by the Board may be held by means of such telephone, electronic or other
communication facilities (including, without limiting the generality of the foregoing, by telephone or by video conferencing) as to
permit all persons participating in the meeting to communicate with each other simultaneously and instantaneously and participation
in such a meeting shall constitute presence in person at such meeting. Such a meeting shall be deemed to take place where the
largest group of those Directors participating in the meeting is physically assembled, or, if there is no such group, where the
chairman of the meeting then is.

Among the powers of the Company which the Board may exercise, the Board is allowed to borrow money and to mortgage or

charge all or any part of the undertaking, property and assets (present and future) and uncalled capital of the Company. The Board
may also issue debentures and other securities (whether outright or as collateral security for any debt, liability or obligation of the
Company or of any other persons).

Bermuda law provides that the Directors owe a fiduciary duty to the Company to act in good faith in their dealings with or on

behalf of the Company and exercise their powers and fulfill the duties of their office honestly. This duty includes the following
essential elements:

•

a duty to act in good faith in the best interests of the Company;

a duty not to make a personal profit from opportunities that arise from the office of director;

a duty to avoid situations in which there is an actual or potential conflict between a personal interest or the duties owed to
third parties and/or the Director's duty to the Company; and

a duty to exercise powers for the purpose for which such powers were intended.

The Companies Act imposes a duty on the Directors and Officers to:

•

act honestly and in good faith with a view to the best interests of the Company; and

exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances.

The Companies Act also imposes various duties on the Directors and Officers with respect to certain matters of management

and administration of the Company.

Under Bermuda law, the Directors and Officers generally owe fiduciary duties to the Company itself, not to the Company's

individual shareholders, members, or creditors.

Shares and Share Rights

Subject to any special rights conferred on the holders of any Share or class of Shares, any Share in the Company may be issued

with or have attached thereto such preferred, deferred, qualified or other special rights or such restrictions, whether in regard to
dividend, voting, return of capital or otherwise, as the Board may determine.

Subject to the general provisions of Bermuda law, the Board may, at its discretion and without the sanction of a Resolution,

authorize the acquisition by the Company of its own Shares, of any class, at any price (whether at par or above or below par). Under
Bermuda law, the Company must pay for such share purchases out of capital paid-up for these shares, out of funds that would
otherwise be available for a dividend or distribution or out of proceeds of the issue of additional shares for the purpose of the
purchase. However, to the extent that any premium over the par value is payable on the purchase, the premium must be provided out
of funds that would otherwise be available for a dividend or distribution or out of the Company's share premium account.

Any Shares to be purchased may be selected in any manner whatsoever, to be either cancelled or held as Treasury Shares,

upon such terms as the Board may in its discretion determine, provided always that such acquisition is effected in accordance with
the provisions of the Companies Act. The whole or any part of the amount payable on any such acquisition may be paid or satisfied
otherwise than in cash, to the extent permitted by the Companies Act.

As provided in our Bye-Laws and subject to the Companies Act, all or any of the special rights for the time being attached to
any class of Shares for the time being issued may from time to time (whether or not the Company is being wound up) be altered or
abrogated with the consent in writing of the holders of not less than seventy five percent (75%) of the issued Shares of that class or
with the sanction of a resolution passed at a separate general meeting of the holders of not less than seventy five percent (75%) of
the issued Shares of that class, voting in person or by proxy. To any such separate general meeting, all the provisions of these Bye-
Laws as to general meetings of the Company shall mutatis mutandis apply, but so that the necessary quorum shall be two (2) or
more persons holding or representing by proxy any of the Shares of the relevant class, that every holder of Shares of the relevant
class shall be entitled on a poll to one vote for every such Share held by him and that any holder of Shares of the relevant class

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present in person or by proxy may demand a poll; provided however, that if the Company or a class of Shareholders shall have only
one Shareholder, one Shareholder present in person or by proxy shall constitute the necessary quorum.

Subject to Bermuda law and except insofar as the rights attaching to, or the terms of issue of, any Share otherwise provide, the

Board may from time to time declare dividends or distributions out of contributed surplus to be paid to the Shareholders according
to their rights and interests, including such interim dividends as appear to the Board to be justified by the position of the Company.
The Board, in its discretion, may determine that any dividend shall be paid in cash or shall be satisfied, subject to the Bye-Laws, in
paying up in full Shares in the Company to be issued to the Shareholders credited as fully paid or partly paid or partly in one way
and partly the other. The Board may also pay any fixed cash dividend which is payable on any Shares of the Company half yearly or
on such other dates, whenever the position of the Company, in the opinion of the Board, justifies such payment.

The Board may from time to time resolve to capitalize all or any part of any amount for the time being standing to the credit of

any reserve or fund which is available for distribution or to the credit of any Share premium account and accordingly that such
amount be set free for distribution amongst the Shareholders or any class of Shareholders who would be entitled thereto.

If the Company shall be wound up, the liquidator may, with the sanction of a Resolution of the Company and any other
sanction required by the Companies Act, divide amongst the Shareholders in specie or kind the whole or any part of the assets of the
Company (whether they shall consist of property of the same kind or not) and may for such purposes set such values as he deems
fair upon any property to be divided as aforesaid and may determine how such division shall be carried out as between the
Shareholders or different classes of Shareholders. The liquidator may, with the like sanction, vest the whole or any part of such
assets in trustees upon such trust for the benefit of the contributories as the liquidator, with the like sanction, shall think fit, but so
that no Shareholder shall be compelled to accept any Shares or other assets upon which there is any liability.

See Notes 10 and 13 to the Consolidated Financial Statements in Item 18 of this report for details of rights, preferences and

restrictions attached to common and preferred shares.

General Meetings of Shareholders and Voting Rights

If required under the Companies Act, the Board shall convene and the Company shall hold general meetings as Annual
General Meetings in accordance with the requirements of the Companies Act at such times and places as the Board shall appoint or,
if requested in writing signed by the Majority Common Shareholder, at such times and places as the Majority Common Shareholder
shall request. The Board may, whenever it thinks fit, and shall, when required by the Companies Act or when requested by the
Majority Common Shareholder, convene general meetings other than Annual General Meetings which shall be called Special
General Meetings, at such time and place as the Board may appoint or, if requested in writing signed by the Majority Common
Shareholder, at such time and place as the Majority Common Shareholder shall request. Except as required by the Companies Act or
when requested by the Majority Common Shareholder, Special General Meetings may not be called by any person other than the
Board. Save where a greater majority is required by the Companies Act or the Bye-Laws, any question proposed for consideration at
any general meeting shall be decided on by a simple majority of votes cast.

Except in the case of the removal of auditors or Directors, anything which may be done by resolution of the Shareholders in
general meeting or by resolution of any class of Shareholders in a separate general meeting may be done by resolution in writing.
Any such Resolution shall be signed by such number of Shareholders (or the holders of such class of Shares) as would be required if
the Resolution had been voted on at a meeting of Shareholders or, all the Shareholders, or such other majority of the Shareholders as
may be provided by the Bye-Laws. Such resolution in writing may be signed by the Shareholder or its proxy, or in the case of a
Shareholder that is a corporation (whether or not a company within the meaning of the Companies Act) by its representative on
behalf of such Shareholder, in as many counterparts as may be necessary.

Under our Bye-Laws should any person (other than EXOR or any member of the Exor Group) be a Ten Percent Shareholder,
notwithstanding any provision to the contrary in these Bye-Laws, the votes conferred by the Controlled Shares of such person are
hereby reduced (and shall be automatically reduced in the future) by whatever amount is necessary so that after any such reduction
such person shall not be a Ten Percent Shareholder. Notwithstanding the foregoing, the Board may waive the restrictions in its
discretion and on a case by case basis.

Mergers and Amalgamations

Subject to the Companies Act and pursuant to our Bye-Laws, in addition to the approval of the Board, any resolution proposed
for consideration at any general meeting to approve the amalgamation or merger of the Company with any other company, wherever
incorporated, shall require the approval of a simple majority of votes cast at such meeting. A poll may be demanded in respect of
such resolution in accordance with the Bye-Laws. Under Bermuda law, in the event of an amalgamation or a merger of a Bermuda
Company with another, a shareholder of the Bermuda company who has not voted in favor of the amalgamation or merger and is not
satisfied that a fair value has been offered for such shareholder’s shares, may apply to the Supreme Court of Bermuda, within one
month’s notice of the special general meeting, to appraise the fair value of the shares.

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Changes in Capital

Subject to the Companies Act, Bye-Laws and Amended Memorandum of Association, the Company may from time to time by

Resolution authorize the reduction of its issued Share Capital or any Share premium account.

C. Material Contracts

Refer to Note 9 to the Consolidated Financial Statements in Item 18 of this report for information on the Company's debt

issuances.

D. Exchange Controls

Securities may be offered or sold in Bermuda only in compliance with the provisions of the Companies Act, Investment
Business Act 2003, and the Exchange Control Act 1972 and related regulations, each as amended, which regulate the sale of
securities in Bermuda. In particular, specific permission is required from the BMA, pursuant to the provisions of the Exchange
Change Control Act 1972 and related regulations (Exchange Control Act), for all issuances and transfers of securities of Bermuda
companies, other than in cases where the BMA has granted a general permission. The BMA, in its policy dated June 1, 2005,
provides that where any equity securities of a Bermuda company are listed on an appointed stock exchange (the NYSE is deemed to
be an appointed stock exchange under Bermuda law), general permission is given for the issue and subsequent transfer of any equity
securities of such company from and/or to a non-resident of Bermuda, for as long as any equity securities of the company remain so
listed. Our common shares are not listed on the NYSE, and accordingly, the general permission will not apply to them.

The BMA has, however, granted us permission for the issue, sale and transfer of up to 20% of any security as defined in the

Exchange Control Act including (without limitation) the grant or creation of options, warrants, coupon, rights and depository
receipts (collectively, Securities) to and among persons who are resident of Bermuda for exchange control purposes, whether or not
the Securities are listed on an appointed stock exchange.

Under the Insurance Act, where the shares of the insurer or the shares of its parent company are not traded on any stock
exchange, no person shall become a 10%, 20%, 33% or 50% shareholder controller of the insurer unless (a) he has served on the
BMA a notice in writing that he intends to become a controller of the insurer and (b) either the BMA has, before the end of the
period of 45 days beginning with the date of service of that notice, notified him in writing that there is no objection to his becoming
such a controller of the insurer or that period has elapsed without the BMA having served him with a written notice of objection to
his becoming such as controller of the insurer. Likewise, no person who is a shareholder controller shall reduce or dispose of his
holding in the insurer where the proportion of the voting rights held by the shareholder controller in the insurer will reach or fall
below 10%, 20%, 33% or 50% as the case may be unless that shareholder controller has served on the BMA a notice in writing not
later than 45 days of such disposal. As described herein, our Bye-Laws contain restrictions on the transfer of shares that generally
would have the effect of prohibiting any shareholder, other than EXOR or any member of the Exor Group, from owning 10% or
more of our common shares.

Any person or entity who contravenes the Insurance Act by failing to give notice or knowingly becoming a controller of any

description before the required 45 days has elapsed is guilty of an offense under Bermuda law and liable to a fine of $25,000 on
summary conviction.

The BMA may file a notice of objection to any person or entity who has become a controller of any category when it appears
that such person or entity is not, or is no longer, fit and proper to be a controller of the registered insurer. Before issuing a notice of
objection, the BMA is required to serve upon the person or entity concerned a preliminary written notice stating the BMA’s
intention to issue formal notice of objection. Upon receipt of the preliminary written notice, the person or entity served may, within
28 days, file written representations with the BMA which shall be taken into account by the BMA in making its final determination.
Any person or entity who continues to be a controller of any description after having received a notice of objection is guilty of an
offense and liable on summary conviction to a fine of $25,000 (and a continuing fine of $500 per day for each day that the offense is
continuing) or, if convicted on indictment, to a fine of $100,000 and/or 2 years in prison.

E. Taxation

PartnerRe Ltd. and PartnerRe Bermuda are not subject to income or profits tax, withholding tax, capital gains tax or capital

transfer tax in Bermuda. See Business Overview—Taxation of the Company and its Subsidiaries in Item 4.B for further details.

F. Dividends and Paying Agents

Not applicable.

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G. Statement by Experts

Not applicable.

H. Documents on Display

We maintain a website at http://www.partnerre.com. The information on our website is not incorporated by reference to this

Annual Report on Form 20-F. We make available, free of charge through our website, our Annual Reports on Form 20-F as soon as
reasonably practicable after we electronically file such material with, or furnish such material to, the U.S. Securities and Exchange
Commission (SEC). Filings with the SEC are also available to the public from commercial document retrieval services, and from the
website maintained by the SEC at http://www.sec.gov.

I. Subsidiary Information

Not applicable.

ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Overview

Management believes that the Company is principally exposed to six types of market related risks: interest rate risk, credit

spread risk, foreign currency risk, counterparty credit risk, equity price risk and real estate price risk. How these risks relate to the
Company, and the process used to manage them, is discussed below.

The Company’s investment philosophy distinguishes between assets that are generally matched against the estimated net
reinsurance liabilities (liability funds) and those assets that represent shareholder capital (capital funds). The Company manages the
duration and currency composition of its assets to mitigate the impact of changes in interest rates and foreign exchange rates.

The Company's capital funds are invested primarily in U.S. dollar denominated investments, reducing foreign currency risk. In

considering the market risk of capital funds, it is important to recognize the benefits of portfolio diversification. Although these
asset classes in isolation may introduce more risk into the portfolio, market forces have a tendency to influence each class in
different ways and at different times. Consequently, the aggregate risk introduced by a portfolio of these assets should be less than
might be estimated by summing the individual risks.

Although the focus of this discussion is to identify risk exposures that impact the market value of assets alone, it is important
to recognize that the risks discussed herein are significantly mitigated to the extent that the Company’s investment strategy allows
market factors to influence the economic valuation of assets and liabilities in a way that is generally offsetting.

As described above in this report, the Company’s investment strategy allows the use of certain derivative investments, subject
to strict limitations. The Company also imposes a high standard for the credit quality of counterparties in all derivative transactions
and aims to diversify its counterparty credit risk exposure. See Note 5 to the Consolidated Financial Statements in Item 18 of this
report for additional information related to derivatives.

The following addresses those areas where the Company believes it has exposure to material market risk in its operations.

Interest Rate Risk

The Company’s fixed income portfolio, including the fixed maturity portfolio and corporate loan portfolio, is exposed to

interest rate risk. Fluctuations in interest rates have a direct impact on the market valuation of these securities. The Company
manages interest rate risk by constructing bond portfolios in which the economic impact of a general interest rate shift on invested
assets is comparable to the impact on the liabilities. This process mitigates the overall net interest rate risk on an economic basis.

The Company’s liabilities are carried at their nominal value, and are not adjusted for changes in interest rates, with the
exception of certain policy benefits for life and annuity contracts and deposit liabilities that are interest rate sensitive. However,
substantially all of the Company’s invested assets are carried at fair value, which reflects such changes. As a result, an increase in
interest rates will result in a decrease in the fair value of the Company’s investments and a corresponding decrease, net of applicable
taxes, in the Company’s shareholders’ equity. A decrease in interest rates would have the opposite effect.

At December 31, 2020 and 2019, the Company held approximately $4,717 million and $3,185 million, respectively, of
mortgage/asset-backed securities. These assets are exposed to prepayment risk, the adverse impact of which is more evident in a

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declining interest rate environment. For further details on the increase in mortgage-backed securities, refer to Liquidity and Capital
Resources—Investments in Item 5.

At December 31, 2020 and 2019, the fair value of investments exposed to interest rate risk was $15,994 million and $14,284

million, respectively.

At December 31, 2020 and 2019, the Company estimates that the hypothetical case of an immediate 100 basis points or 200

basis points parallel shift in global bond curves would result in a change in the fair value of investments exposed to interest rate risk,
total invested assets and shareholders’ equity as follows (in millions of U.S. dollars, except percentages):

-200 Basis
Points

%
Change

-100 Basis
Points

%
Change

December 31,
2020

+100 Basis
Points

%
Change

+200 Basis
Points

%
Change

Fair value of investments exposed
to interest rate risk (1)
Total invested assets (2)
Shareholders’ equity

$ 16,773

$ 20,956

5 % $ 16,430

3 % $

15,994 $ 15,468

(3) % $ 14,850

4 % $ 20,613

2 % $

20,178 $ 19,651

(3) % $ 19,033

(7) %

(6) %

$ 8,105

11 % $ 7,762

6 % $

7,327 $ 6,801

(7) % $ 6,183

(16) %

-200 Basis
Points

%
Change

-100 Basis
Points

%
Change

December 31,
2019

+100 Basis
Points

%
Change

+200 Basis
Points

%
Change

Fair value of investments exposed
to interest rate risk (1)
Total invested assets (2)
Shareholders’ equity

$ 15,062

$ 18,689

5 % $ 14,684

3 % $

14,284 $ 13,883

(3) % $ 13,481

4 % $ 18,311

2 % $

17,911 $ 17,510

(2) % $ 17,109

(6) %

(5) %

$ 8,048

11 % $ 7,670

6 % $

7,270 $ 6,869

(6) % $ 6,467

(11) %

(1) Includes fixed maturity securities, short-term investments, certain other invested assets, certain cash and cash equivalents and

funds holding fixed income securities.

(2) Includes total investments, cash and cash equivalents and accrued interest.

The changes do not take into account any potential mitigating impact from the equity market, taxes or the corresponding
change in value of the Company’s reinsurance liabilities, which would substantially offset the economic impact on invested assets,
although the offset would not be reflected in the Consolidated Balance Sheet.

The impacts of an immediate change in interest rates on the fair value of investments exposed to interest rate risk, the
Company’s total invested assets and shareholders’ equity, in both absolute terms and as a percentage of total invested assets and
shareholders’ equity, at December 31, 2020 is higher or equal to the impacts at December 31, 2019, driven by an increase in average
duration of the investment portfolio.

The Company manages its net foreign currency exposures to major currencies. The exact market value effect of a change in

interest rates will depend on which countries experience interest rate changes and the foreign currency mix of the Company’s fixed
maturity portfolio at the time of the interest rate changes. See Foreign Currency Risk below.

Interest rate movements also affect the economic value of the Company’s outstanding debt obligations and preferred securities

in the same way that they affect the Company’s fixed maturity investments. This can result in a liability whose economic value is
different from the carrying value reported in the Consolidated Balance Sheet, given the Company records the carrying value of its
outstanding debt obligations at the original issued principal amount. For the Company’s preferred shares, fair value is based on
quoted market prices, while carrying value is based on the aggregate liquidation value of the shares. See Notes 3(b) and 9 to the
Consolidated Financial Statements in Item 18 of this report for further details regarding the fair value of debt. See also Note 10 to
the Consolidated Financial Statements in Item 18 of this report for further details regarding preferred shares.

Credit Spread Risk

The Company’s fixed income portfolio, including the fixed maturity portfolio and corporate loan portfolio, is exposed to credit

spread risk. Fluctuations in market credit spreads have a direct impact on the market valuation of these securities. The Company
manages credit spread risk by the selection of securities within its fixed maturity portfolio. Changes in credit spreads directly affect
the market value of certain fixed maturity securities, but do not necessarily result in a change in the future expected cash flows
associated with holding individual securities. Other factors, including liquidity, supply and demand, and changing risk preferences
of investors, may affect market credit spreads without any change in the underlying credit quality of the security.

As with interest rates, changes in credit spreads impact the shareholders’ equity of the Company as invested assets are carried

at fair value, which includes changes in credit spreads. As a result, an increase in credit spreads will result in a decrease in the fair

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value of the Company’s investments and a corresponding decrease, net of applicable taxes, in the Company’s shareholders’ equity.
A decrease in credit spreads would have the opposite effect.

At December 31, 2020 and 2019, the fair value of investments exposed to credit spread risk was $12,970 million and $11,349
million, respectively. This represents a portion of investments exposed to interest rate risk as discussed above as it excludes certain
government securities that are not considered to be sensitive to credit spread risk.

At December 31, 2020 and 2019, the Company estimates that the hypothetical case of an immediate 100 basis points or 200
basis points parallel shift in global credit spreads would result in a change in the fair value of investments exposed to credit spread
risk, total invested assets and shareholders’ equity as follows (in millions of U.S. dollars, except percentages):

-200 Basis
Points

%
Change

-100 Basis
Points

%
Change

December 31,
2020

+100 Basis
Points

%
Change

+200 Basis
Points

%
Change

Fair value of investments exposed
to credit spread risk (1)
Total invested assets (2)
Shareholders’ equity

$ 13,652

$ 20,860

$ 8,009

5 % $ 13,361

3 % $

12,970 $ 12,479

(4) % $ 11,889

3 % $ 20,569

2 % $

20,178 $ 19,687

(2) % $ 19,097

(8) %

(5) %

9 % $ 7,718

5 % $

7,327 $ 6,836

(7) % $ 6,246

(15) %

-200 Basis
Points

%
Change

-100 Basis
Points

%
Change

December 31,
2019

+100 Basis
Points

%
Change

+200 Basis
Points

%
Change

Fair value of investments exposed
to credit spread risk (1)
Total invested assets (2)
Shareholders’ equity

$ 12,077

$ 18,640

6 % $ 11,714

3 % $

11,349 $ 10,983

(3) % $ 10,617

4 % $ 18,276

2 % $

17,911 $ 17,546

(2) % $ 17,179

(6) %

(4) %

$ 7,998

10 % $ 7,635

5 % $

7,270 $ 6,905

(5) % $ 6,538

(10) %

(1) Includes certain fixed maturity securities, certain short-term investments, certain other invested assets, certain cash and cash

equivalents and funds holding fixed income securities.

(2) Includes total investments, cash and cash equivalents and accrued interest.

The changes above also do not take into account any potential mitigating impact from the taxes, which may offset the

economic impact on invested assets.

The impacts of an immediate decrease in credit spreads on the fair value of investments exposed to credit spread risk, the

Company’s total invested assets and shareholders’ equity, as a percentage of total invested assets and shareholders’ equity, at
December 31, 2020 is lower than or equal to the impacts at December 31, 2019, while the impact of an immediate increase in credit
spreads at December 31, 2020 is greater than or equal to the impacts at December 31, 2019. The asymmetric impacts observed are
mainly due to negative average convexity of credit spread sensitive investments.

Foreign Currency Risk

Through its multinational reinsurance operations, the Company conducts business in a variety of non-U.S. currencies, with the

principal exposures being the Euro, Canadian dollar, Swiss franc, British pound and Japanese yen. As the Company’s reporting
currency is the U.S. dollar, foreign exchange rate fluctuations that are not hedged may materially impact the Company’s
Consolidated Financial Statements. For the non-U.S. dollar currencies for which the Company deems the net asset or liability
exposures to be material, the Company employs a hedging strategy utilizing foreign exchange forward contracts and other derivative
financial instruments, as appropriate, to reduce exposure by currency. The Company does not hedge currencies for which its asset or
liability exposures are not material or where it is unable or impractical to do so. In such cases, the Company is exposed to foreign
currency risk. However, the Company does not believe that the foreign currency risks corresponding to these unhedged positions are
material. Derivatives are included in Other invested assets in the Consolidated Balance Sheets (see Note 5 to the Consolidated
Financial Statements in Item 18 of this report for further details).

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The Company’s gross and net exposures in its Consolidated Balance Sheets at December 31, 2020 and 2019 to foreign
currency as well as the associated foreign currency derivatives the Company has entered into to manage these exposures, were as
follows (in millions of U.S. dollars):

December 31, 2020
Total assets
Total liabilities
Total gross foreign currency exposure
Total derivative amount
Net foreign currency exposure

December 31, 2019
Total assets
Total liabilities
Total gross foreign currency exposure
Total derivative amount
Net foreign currency exposure

GBP

CHF

Euro

CAD

JPY (1)

Total (2)
$ 2,416 $ 1,683 $ 37 $ 1,819 $ 731 $ 1,275 $ 7,961
(4,007)
(595) (1,727) (8,906)
25 $ 136 $ (452) $ (945)
$ (1,591) $ 1,183 $ (246) $
(189)
1,613
251
(53) $ (454) $ (694)
$

(500) (283) (1,794)

(1,171) —

12 $ (246) $

—

22 $

25 $

(2)

Other

GBP

CHF

Euro

CAD

JPY (1)

Total (2)
$ 2,244 $ 1,552 $ 32 $ 1,883 $ 329 $ 1,325 $ 7,365
(3,744)
(442) (1,734) (8,668)
(26) $ (113) $ (409) $ (1,303)
$ (1,500) $ 1,052 $ (307) $
75
1,540
470
(96) —
49 $ (209) $ (409) $ (833)
$

(500) (339) (1,909)

(1,049) —

3 $ (307) $

40 $

Other

(1) The JPY exposure as at December 31, 2020 and 2019 excludes reinsurance assets of approximately $74 million and $130

million, respectively, denominated in U.S. dollars for which the underlying value is linked to JPY.

(2) 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 the above tables. The U.S. dollar accounts for the difference between the Company’s total foreign currency exposure and
the total assets and total liabilities in the Consolidated Balance Sheets at December 31, 2020 and 2019.

The above numbers include the Company’s investment in certain of its subsidiaries, branches and equity method investees,
whose functional currencies are the Euro, British pound, and Canadian dollar, and the foreign exchange forward contracts that the
Company entered into during the year to hedge a portion of its translation exposure in light of the significant volatility in foreign
exchange markets.

At December 31, 2020, and at December 31, 2019, the Company’s most significant net foreign currency exposure to the Swiss

franc presented in the table above reflects the unhedged net foreign currency exposure to certain liability balances denominated in
Swiss franc.

At December 31, 2020, assuming all other variables remain constant and disregarding any tax effects, a change in the U.S.

dollar of 10% or 20% relative to all of the other currencies held by the Company simultaneously would result in a change in
shareholders’ equity of $69 million and $139 million, respectively, inclusive of the effect of foreign exchange forward contracts and
other derivative financial instruments.

At December 31, 2019, assuming all other variables remain constant and disregarding any tax effects, a change in the U.S.

dollar of 10% or 20% relative to all of the other currencies held by the Company simultaneously would result in a change in
shareholders’ equity of $83 million and $167 million, respectively, inclusive of the effect of foreign exchange forward contracts and
other derivative financial instruments.

Counterparty Credit Risk

Investments and Cash

The Company has exposure to credit risk primarily as a holder of fixed maturity securities and, to a lesser extent, through its
corporate loan portfolio within Other invested assets. The Company controls this exposure by emphasizing investment grade credit
quality in the fixed maturity securities it purchases. At December 31, 2020 and 2019, approximately 73% and 74%, respectively, of
the Company’s fixed maturity portfolio was rated AA (or equivalent rating) or better. Refer to Liquidity and Capital Resources—
Investments in Item 5 for further details of the Company's corporate loan portfolio.

At December 31, 2020 and 2019, approximately 85% and 89%, respectively, of the Company’s fixed maturity and short-term

investments were rated A or better and 5% and 3%, respectively, were rated below investment grade or not rated. The Company
believes this high quality concentration reduces its exposure to credit risk on fixed maturity investments to an acceptable level. At
December 31, 2020, the Company was not exposed to any significant credit concentration risk on its investments, excluding
securities issued by the U.S. and Canada governments which are rated AA+ and AAA, respectively. At December 31, 2020, the

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Company held fixed maturity investments in the Canadian government of $776 million. At December 31, 2019, the Company was
not exposed to any significant credit concentration risk on its investments, excluding securities issued by the U.S. government and
the World Bank which are rated AA+ and AAA, respectively. At December 31, 2019, the Company held fixed maturity investments
in the World Bank of $1,110 million. At December 31, 2020 and 2019, the single largest corporate issuer accounted for less than 3%
and 4%, respectively, and the top 10 corporate issuers accounted for less than 23% and 32%, respectively, of the Company’s total
corporate fixed maturity securities.

The Company holds cash and cash equivalents in several banks and ensures that there are no significant concentrations of

credit risk in any one bank.

Derivatives

The Company also has credit risk exposure as a party to foreign exchange forward contracts and other derivative contracts.

The Company’s investment strategy allows the use of derivative investments, subject to strict limitations. The Company imposes a
high standard for the credit quality of counterparties in all derivative transactions. To mitigate credit risk, the Company monitors its
exposure by counterparty, aims to diversify its counterparty credit risk and ensures that counterparties to these contracts are high
credit quality international banks or institutions. These contracts are generally of short duration (approximately 90 days) and settle
on a net basis, which means that the Company is exposed to the movement of one currency against the other, as opposed to the
notional amount of the contracts. At December 31, 2020 and 2019, the Company’s net notional exposure of foreign exchange
forward contracts was $3,843 million and $3,028 million, respectively, while the net fair value of those contracts was a $3 million
liability position and $1 million liability position at December 31, 2020 and 2019, respectively. See Note 5 to the Consolidated
Financial Statements in Item 18 of this report for additional information related to derivatives.

Underwriting Operations

The Company is also exposed to credit risk in its underwriting operations, most notably in the financial risks line. Loss
experience in these lines of business is cyclical and is affected by the general economic environment. The Company provides its
clients in these lines of business with protection against credit deterioration, defaults or other types of financial non-performance of
or by the underlying credits that are the subject of the protection provided and, accordingly, the Company is exposed to the credit
risk of those clients. As with all of the Company’s business, these risks are subject to rigorous underwriting and pricing standards.
In addition, the Company strives to mitigate the risks associated with these credit-sensitive lines of business through the use of risk
management techniques such as risk diversification, careful monitoring of risk aggregations and accumulations and, at times,
through the use of retrocessional reinsurance protection and the purchase of credit default swaps and total return and interest rate
swaps.

The Company is subject to 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 for any other reason. However, the Company’s credit risk in some jurisdictions is mitigated
by a mandatory right of offset of amounts payable by the Company to a cedant against amounts due to the Company. In certain
other jurisdictions the Company is able to mitigate this risk, depending on the nature of the funds held arrangements, to the extent
that the Company has the contractual ability to offset any shortfall in the payment of the funds held balances with amounts owed by
the Company to cedants for losses payable and other amounts contractually due. Funds held balances for which the Company
receives an investment return based upon either the results of a pool of assets held by the cedant or the investment return earned by
the cedant on its investment portfolio are exposed to counterparty credit risk. The Company is also exposed, to some extent, to the
underlying financial market risk of the pool of assets, to the extent the underlying policies may have guaranteed minimum returns on
GMDB business.

The Company has exposure to credit risk as it relates to its business written through brokers if any of the Company’s brokers
are unable to fulfill their contractual obligations with respect to payments to the Company. In addition, in some jurisdictions, if the
broker fails to make payments to the insured under the Company’s policy, the Company might remain liable to the insured for the
deficiency. The Company’s exposure to such credit risk is somewhat mitigated in certain jurisdictions by contractual terms. See
Note 18 to the Consolidated Financial Statements in Item 18 of this report of this report for information related to two brokers that
accounted for 51% and 50%, respectively, of the Company’s gross premiums written for the years ended December 31, 2020 and
2019.

The Company has exposure to credit risk as it relates to its reinsurance balances receivable and reinsurance recoverable on

paid and unpaid losses.

Reinsurance balances receivable from the Company’s cedants at December 31, 2020 and 2019 were $3,119 million and $3,400

million, respectively, including balances both currently due and accrued. The Company believes that credit risk related to these
balances is mitigated by several factors, including but not limited to, credit checks performed as part of the underwriting process and
monitoring of aged receivable balances. In addition, as the majority of its reinsurance agreements permit the Company the right to

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offset reinsurance balances receivable from clients against losses payable to them, the Company believes that the credit risk in this
area is substantially reduced. Provisions are made for amounts considered potentially uncollectible and the allowance for
uncollectible premiums receivable at December 31, 2020 and 2019 was $9 million and $7 million, respectively.

The Company purchases retrocessional reinsurance and requires its reinsurers to have adequate financial strength. The
Company evaluates the financial condition of its reinsurers and monitors its concentration of credit risk on an ongoing basis.
Provisions are made for amounts considered potentially uncollectible. At December 31, 2020 and 2019, the balance of reinsurance
recoverable on paid and unpaid losses was $901 million and $889 million respectively, and includes $818 million and $771 million,
respectively, of reinsurance recoverable on unpaid losses related to the total Non-life and Life and health reserves. At December 31,
2020, the Company recorded an allowance for credit losses of $3 million on its reinsurance recoverable balance. This compared to
no allowance for its reinsurance recoverable balance at December 31, 2019. At December 31, 2020 and 2019, 43% and 36%,
respectively, of the Company's reinsurance recoverable on unpaid losses were due from reinsurers with an A- or better rating from
Standard & Poor’s, and the remaining 57% and 64%, respectively, was collateralized. See Liquidity and Capital Resources—
Reinsurance Recoverable on Paid and Unpaid Losses in Item 5 of this report for further details of the Company’s reinsurance
recoverable on unpaid losses categorized by the reinsurer’s Standard & Poor’s rating.

Other than the items discussed above, the concentrations of the Company’s counterparty credit risk exposures have not

changed materially at December 31, 2020 compared to December 31, 2019.

Public Equity Price Risk

The Company invests a portion of its capital funds in public equity securities. At December 31, 2020 and 2019, the fair market

value of these securities was $1,398 million and $1,223 million, respectively, excluding funds holding fixed income securities of
$98 million and $72 million at December 31, 2020 and 2019, respectively. These equity investments are primarily mutual funds and
are exposed to equity price risk, defined as the potential for loss in market value due to a decline in equity prices. The Company
believes that the effects of diversification and the relatively small size of its investments in equities relative to total invested assets
mitigate its exposure to equity price risk. At December 31, 2020, the Company estimates that a 10% and 20% movement in the
relevant index would result in a change in the fair value of the Company’s public equity portfolio, total invested assets and
shareholders’ equity by $106 million and $213 million, respectively and $23 million and $47 million, respectively at December 31,
2019. These changes do not take into account any potential mitigating impact from the fixed maturity securities or taxes.

Real Estate Price Risk

The Company invests a portion of its capital funds in real estate assets either through direct investment or through investments

in variable interest entities that hold underlying real estate assets as follows:

•

Investments in real estate with a carrying value of $68 million and $72 million at December 31, 2020 and 2019,
respectively, recorded in the Consolidated Balance Sheets

• Equity method investment in Almacantar with a carrying value of $494 million and $483 million at December 31, 2020

and 2019, respectively, recorded in Other invested assets in the Consolidated Balance Sheets

•

Investments in limited partnerships with underlying real estate assets with a carrying value of $239 million and $204
million at December 31, 2020 and 2019, respectively, recorded in Other invested assets in the Consolidated Balance
Sheets.

These investments are exposed to real estate market price risk, defined as the potential for loss in market value due to a decline

in real estate prices. The Company believes that the effects of diversification and the relatively small size of its investments in real
estate assets relative to total invested assets mitigate its exposure to real estate price risk. At December 31, 2020, the Company
estimates that a 10% and 20% movement in comparable real estate prices would result in a change in the total carrying value of
$801 million of the Company’s real estate asset investments referred to above, total invested assets, and shareholders’ equity by $80
million and $160 million, respectively. At December 31, 2019, the Company estimates that a 10% and 20% movement in
comparable real estate prices would result in a change in the total carrying value of $759 million of the Company’s real estate asset
investments referred to above, total invested assets, and shareholders’ equity by $76 million and $152 million, respectively. These
changes do not take into account any potential mitigating impact from taxes.

ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

Not applicable.

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PART II

ITEM 13. DEFAULTS, DIVIDENDS ARREARAGES AND DELINQUENCIES

None.

ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS

None.

ITEM 15. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

The Company carried out an evaluation, under the supervision and with the participation of management, including the CEO
and CFO, as of December 31, 2020, of the effectiveness of the Company’s disclosure controls and procedures, as defined in Rules
13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended. Based upon that evaluation, the CEO and CFO
concluded that, as of December 31, 2020, the disclosure controls and procedures are effective such that information required to be
disclosed by the Company in reports that it files or submits pursuant to the Securities Exchange Act is recorded, processed,
summarized and reported within the time periods specified in the rules and forms of the SEC and is accumulated and communicated
to management, including its principal executive and principal financial officers, as appropriate, to allow timely decisions regarding
required disclosures.

Management’s Report on Internal Control over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control

over financial reporting is designed to provide reasonable assurance regarding the preparation of financial statements for external
purposes in accordance with U.S. GAAP.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect material misstatements.
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that the controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management has assessed the effectiveness of internal control over financial reporting as of December 31, 2020. In making

this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway
Commission in Internal Control-Integrated Framework (2013).

Based on our assessment and those criteria, management believes that the Company maintained effective internal control over

financial reporting as of December 31, 2020.

Changes in Internal Control over Financial Reporting

There have been no changes in the Company’s internal control over financial reporting that occurred during the year ended

December 31, 2020 that have materially affected, or are reasonably likely to materially affect, the Company’s internal controls over
financial reporting.

ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT

The Company’s Board has determined that Ms. Mary Ann Brown is an independent director and audit committee financial

expert in accordance with the NYSE listing rules.

ITEM 16B. CODE OF ETHICS

The Audit Committee of PartnerRe Ltd. has adopted the Code of Business Conduct and Ethics, which applies to all directors,
officers and employees and is incorporated by reference as exhibit 11.1 to this annual report. Any specific waiver of its provisions
requires the approval of the Audit Committee. Any waiver required to be publicly disclosed will be posted on our website at
www.partnerre.com within four business days of such waiver being granted. During 2020 and 2021, there were minor updates and
revisions to the Code of Business Conduct and Ethics and no disclosable waivers. Any violation to the Code of Business Conduct
and Ethics will be investigated and may result in disciplinary action, as appropriate.

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ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES

The Audit Committee is directly responsible for the appointment, retention, compensation and oversight of the work of the
Company’s independent registered public accounting firm. The Audit Committee also pre-approves the audit services and non-audit
services to be provided, including the fees for such services, before the public accounting firm is engaged to render such services.
The Audit Committee may delegate the authority to grant such approval to one or more designated members of the Audit
Committee, provided that the decisions of any member to whom authority is delegated shall be presented to the full Audit
Committee at its next meeting. The Audit Committee has sole authority to approve all audit fees and terms. All services of Ernst &
Young Ltd. and their respective affiliates (collectively, EY) were pre-approved by the Audit Committee.

During 2020, the Audit Committee had seven meetings to discuss the Company’s quarterly results as well as to receive
updates on legal matters, matters relating to internal and external auditors, and other matters as deemed necessary. The meetings,
which included informational calls, were conducted to encourage communication among the members of the Audit Committee,
management, the internal auditors and EY. The Audit Committee also discussed with EY the overall scope and plans for EY’s
audits and the results of such audits. The Audit Committee met with representatives from EY, both with and without management
present.

The following table presents fees for professional services rendered by the independent auditors for the years ended December

31, 2020 and 2019 (in U.S. dollars):

Audit Fees (1)
Audit-Related Fees (2)
Tax Fees (3)
All Other Fees

Total

2020

5,456,021 $
171,530

363,064

11,200
6,001,815 $

2019
5,181,482

117,072

36,247

11,200

5,346,001

(1) For the years ended December 31, 2020 and 2019, audit fees relate to professional services rendered by EY for the audit of the
Company’s annual financial statements and other audit services provided in connection with statutory and regulatory filings.

(2) Audit-related fees are fees for services performed that are reasonably related to the performance of the audit or review of the
Company’s financial statements but are not described in (1) above. Audit-related fees in 2020 and 2019 were for services
performed by EY related to employee benefit plan audits and comfort letter procedures related to debt issuances. Audit-related
fees for 2020 also included agreed upon procedures related to one of the Company's subsidiaries.

(3) Tax fees in 2020 and 2019 relate to services performed by EY for tax compliance services and on-call advisory.

ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES

None.

ITEM 16E.

PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS

On October 22, 2020, PartnerRe Ltd. filed a Form 25 Notification of Removal From Listing And/Or Registration Under
Section 12(b) of the Securities Exchange Act of 1934 to redeem all of its outstanding 5.875% Series F Non-Cumulative Preferred
Shares, par value $1.00 per share. For further details related to the redemption, refer to Note 10 to the Consolidated Financial
Statements in Item 18 of this report.

ITEM 16F. CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT

None.

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ITEM 16G. CORPORATE GOVERNANCE

Pursuant to exemptions available under the NYSE listing standards, as the Company is a foreign private issuer and a controlled

company with no common shares listed, we are not required to comply with all of the corporate governance practices followed by
U.S. domestic filer companies under the NYSE listing standards. Below is a summary of the significant differences between our
corporate governance practices and the NYSE standards applicable to listed U.S. companies that are domestic filers:

• Nominating/Corporate Governance Committee: The NYSE requires that listed companies must have a nominating/
corporate governance committee composed entirely of independent directors and a committee charter detailing the
committee’s purpose and responsibilities and an annual performance evaluation of the committee. Under Bermuda law and
our Bye-Laws as well as the NYSE exemptions applicable to controlled companies, we are not required to have, and do not
have, a separate nominating or corporate governance committee; instead, that function is filled by our full Board.

• Compensation Committee: The NYSE requires that listed companies must have a compensation committee composed

entirely of independent directors and a committee charter detailing the committee’s purpose and responsibilities, an annual
performance evaluation of the committee and the rights and responsibilities of the committee with respect to retaining or
obtaining advice from an independent adviser. Under Bermuda law and our Bye-Laws, as well as the NYSE exemptions
applicable to controlled companies, we are not required to have, and do not have, a separate compensation committee;
instead, that function is filled by our full Board, its committees, the Chairman and our CEO.

ITEM 16H. MINE SAFETY DISCLOSURE

Not applicable.

PART III

ITEM 17.

FINANCIAL STATEMENTS

See Item 18 of this report.

ITEM 18.

FINANCIAL STATEMENTS

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Assets

Investments:

PartnerRe Ltd.
Consolidated Balance Sheets
(Expressed in thousands of U.S. dollars, except parenthetical share data)

December 31,
2020

December 31,
2019

Fixed maturities, at fair value (amortized cost: 2020, $12,341,937; 2019, $10,468,937)

$ 12,786,380 $ 10,680,714

Short-term investments, at fair value (amortized cost: 2020, $416,059; 2019, $1,003,508)

Equities, at fair value (cost: 2020, $847,066; 2019, $821,430)

Investments in real estate

Other invested assets

Total investments

Cash and cash equivalents

Accrued investment income

Reinsurance balances receivable

Reinsurance recoverable on paid and unpaid losses

Prepaid reinsurance premiums

Funds held by reinsured companies

Deferred acquisition costs

Deposit assets

Net tax assets

Goodwill

Intangible assets

Other assets

Total assets
Liabilities

Non-life reserves

Life and health reserves

Unearned premiums

Other reinsurance balances payable

Debt

Deposit liabilities
Net tax liabilities

Accounts payable, accrued expenses and other
Total liabilities
Shareholders’ Equity

Common shares (par value $0.00000001; issued and outstanding: 100,000,000 shares)
Preferred shares (par value $1.00; issued and outstanding: 2020, 25,489,636 shares; 2019,
28,169,062 shares; aggregate liquidation value: 2020, $637,241; 2019, $704,227)

Additional paid-in capital

Accumulated other comprehensive loss

Retained earnings

Total shareholders’ equity

Total liabilities and shareholders’ equity

See accompanying Notes to Consolidated Financial Statements.

416,350

1,496,441

67,980

1,003,421

1,295,164

71,834

2,967,738

3,266,009

17,734,889

16,317,142

2,350,833

1,484,463

92,058

109,673

3,118,870

3,400,070

901,063

115,986

704,768

819,971

139,818

182,077

456,380

107,669

174,193

889,021

80,942

815,167

874,608

168,067

179,813

456,380

117,538

169,521

$ 26,898,575 $ 25,062,405

$ 11,395,321 $ 10,363,383

2,704,229

2,265,214

482,468

2,417,044

2,433,860

521,338

1,974,731

1,398,054

5,925
131,621

5,507
135,966

612,069
19,571,578

517,084
17,792,236

—

25,490

28,169

2,334,564

2,396,530

(96,005)

(75,925)

5,062,948

7,326,997

4,921,395

7,270,169

$ 26,898,575 $ 25,062,405

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PartnerRe Ltd.
Consolidated Statements of Operations and Comprehensive Income (Loss)
(Expressed in thousands of U.S. dollars)

Revenues

Gross premiums written

Net premiums written

Decrease (increase) in unearned premiums

Net premiums earned

Net investment income

Net realized and unrealized investment gains (losses)

Other income

Total revenues
Expenses

Losses and loss expenses

Acquisition costs

Other expenses

Interest expense

Loss on redemption of debt

Amortization of intangible assets

Net foreign exchange losses (gains)

Total expenses
Income (loss) before taxes and interest in earnings of equity method
investments

Income tax (benefit) expense

Interest in earnings of equity method investments

Net income (loss)

Preferred dividends

Loss on redemption of preferred shares

Net income (loss) attributable to common shareholder
Comprehensive income (loss)
Net income (loss)

Change in currency translation adjustment
Change in unfunded pension obligation, net of tax
Change in fair value of designated cash flow hedges, net of reclassification
adjustment

Change in unrealized gains or losses on investments, net of tax

Other comprehensive (loss) income

Comprehensive income (loss)

For the year ended

December 31,
2020

December 31,
2019

December 31,
2018

$ 6,875,925 $ 7,285,320 $ 6,299,929

$ 6,300,858 $ 6,909,058 $ 5,803,364

235,968

(383,840)

(289,554)

6,536,826

6,525,218

5,513,810

360,668

454,319

13,491

448,538

886,670

15,321

415,921

(389,632)

50,127

7,365,304

7,875,747

5,590,226

5,334,900

1,356,118

355,647

39,200

—

9,988

51,964

4,923,156

1,455,462

369,969

40,150

15,175

11,434

86,760

4,193,255

1,237,464

305,568

43,152

—

35,473

(119,151)

7,147,817

6,902,106

5,695,761

217,487

973,641

(105,535)

(13,091)

23,611

254,189

45,990

2,341

52,536

15,643

936,748

46,416

—

(8,934)

10,607

(85,994)

46,416

—

205,858 $

890,332 $

(132,410)

254,189 $

936,748 $

(85,994)

(5,884)
(14,383)

71,796
(6,803)

(74,797)
24,859

—

187

(1,877)

(407)

1,877

(292)

(20,080)

62,709

(48,353)

234,109 $

999,457 $

(134,347)

The Company’s common shares included in shareholders' equity are owned by EXOR Nederland N.V. and are not publicly traded.
As such, earnings per share data is not meaningful to present.

See accompanying Notes to Consolidated Financial Statements.

Table of Contents

PartnerRe Ltd.
Consolidated Statements of Shareholders’ Equity
(Expressed in thousands of U.S. dollars)

Common shares
Balance at beginning of year
Balance at end of year
Preferred shares
Balance at beginning of year
Redemption of preferred shares
Balance at end of year
Additional paid-in capital
Balance at beginning of year
Redemption of preferred shares
Balance at end of year
Accumulated other comprehensive loss
Balance at beginning of year

Currency translation adjustment
Balance at beginning of year

Change in foreign currency translation adjustment

Balance at end of year
Unfunded pension obligation

Balance at beginning of year

Change in unfunded pension obligation, net of tax

Balance at end of year (net of tax: 2020, $7,559; 2019, $4,379; 2018, $2,479)

Unrealized gain (loss) on investments

Balance at beginning of year

Change in fair value of designated cash flow hedges, net of
reclassification adjustment
Change in unrealized gains or losses on investments, net of tax

Balance at end of year (net of tax: 2020, 2019 and 2018: $nil)

Balance at end of year
Retained earnings
Balance at beginning of year

Net income (loss)
Dividends on common shares
Dividends on preferred shares
Loss on redemption of preferred shares
Cumulative effect of adoption of accounting guidance (Note 2)

Balance at end of year
Total shareholders’ equity

For the year ended

December 31,
2020

December 31,
2019

December 31,
2018

— $
—

—
—

28,169
(2,679)
25,490

28,169
—
28,169

2,396,530

(61,966)

2,334,564

2,396,530
—
2,396,530

(75,925)

(138,634)

(90,281)

(59,904)
(5,884)
(65,788)

(131,700)
71,796
(59,904)

(56,903)
(74,797)
(131,700)

(15,988)
(14,383)
(30,371)

(9,185)
(6,803)
(15,988)

(34,044)
24,859
(9,185)

(33)

2,251

666

—
187
154
(96,005)

(1,877)
(407)
(33)
(75,925)

1,877
(292)
2,251
(138,634)

4,230,449
936,748
(199,386)
(46,416)

4,921,395
254,189
(50,000)
(45,990)
(2,341)
(14,305)

4,410,694
(85,994)
(47,835)
(46,416)
—
—
4,230,449
$ 7,326,997 $ 7,270,169 $ 6,516,514

—
—
4,921,395

5,062,948

See accompanying Notes to Consolidated Financial Statements.

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PartnerRe Ltd.
Consolidated Statements of Cash Flows
(Expressed in thousands of U.S. dollars)

Cash flows from operating activities
Net income (loss)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Amortization of net premium on investments
Amortization of intangible assets
Net realized and unrealized investment (gains) losses
Loss on redemption of debt

Changes in:

Reinsurance balances, net
Reinsurance recoverable on paid and unpaid losses, net of ceded premiums payable
Funds held by reinsured companies and funds held–directly managed
Deferred acquisition costs
Net tax assets and liabilities
Non-life and life and health reserves
Unearned premiums, net of prepaid reinsurance premiums

Other net changes in operating assets and liabilities
Net cash provided by operating activities
Cash flows from investing activities
Sales of fixed maturities
Redemptions of fixed maturities
Purchases of fixed maturities
Sales of short-term investments
Redemptions of short-term investments
Purchases of short-term investments
Sales of equities
Purchases of equities
Sales and redemptions of other invested assets
Purchases of other invested assets
Other, net
Net cash used in investing activities
Cash flows from financing activities
Dividends paid to common and preferred shareholders
Issuance of unrestricted Class B common shares (1)
Redemption of unrestricted Class B common shares (1)
Redemption of preferred shares
Issuance of debt
Redemption of debt
Net cash provided by (used in) financing activities
Effect of foreign exchange rate changes on cash
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents—beginning of year
Cash and cash equivalents—end of year
Supplemental cash flow information:
Taxes paid
Interest paid

For the year ended

December 31,
2020

December 31,
2019

December 31,
2018

254,189 $

936,748 $

(85,994)

34,708
9,988
(454,319)

—

14,478
11,434
(886,670)
15,175

52,495
35,473
389,632
—

274,506
16,026
175,272
74,871
(23,647)
944,263
(235,968)
55,004
1,124,893

(397,563)
112,223
56,890
(128,426)
17,118
713,281
383,841
150,340
998,869

(427,220)
(98,086)
(23,483)
(98,475)
(82,247)
637,652
289,554
(141,808)
447,493

16,502,655
738,478

14,665,938
5,518,588
1,821,934
494,148
(8,962,066) (14,918,698) (15,638,777)
224,411
1,914,640
3,637,532
23,432
1,971,826
724,033
(733,431)
(5,006,397) (3,142,818)
89,349
(218,751)
328,924
(490,797)
(930,827) (2,009,452)
(94,263)
(5,357)
(117,994) (1,260,911)

133,891
(296,687)
330,227

23,431
(632,748)

143,932
(151,292)

1,300,591

(245,802)
1,159
(6,540)
—
496,012
(512,697)
(267,868)
(6,451)

(95,990)
2,257
(5,157)
(66,985)
494,237
—
328,362
45,863
866,370
1,484,463
$ 2,350,833 $ 1,484,463 $

(94,251)
—
—
—
—
—
(94,251)
13,564
(894,105)
1,772,012
877,907

606,556
877,907

$
$

64,288 $
33,164 $

85,047 $
38,650 $

139,543
41,551

(1) Class B shares are recorded as a liability on the Company's Consolidated Balance Sheet. See Note 13 for further details.

See accompanying Notes to Consolidated Financial Statements.

Table of Contents

1. Organization

PartnerRe Ltd.
Notes to Consolidated Financial Statements

PartnerRe Ltd. provides reinsurance on a worldwide basis through its principal wholly-owned subsidiaries, including Partner

Reinsurance Company Ltd. (PartnerRe Bermuda), Partner Reinsurance Europe SE (PartnerRe Europe), Partner Reinsurance
Company of the U.S. (PartnerRe U.S.) and Partner Reinsurance Asia Pte. Ltd. (PartnerRe Asia). Non-life risks reinsured include
agriculture, aviation/space, casualty, catastrophe, energy, engineering, financial risks, marine, motor, multiline, property and U.S.
health. Life and health risks include mortality, morbidity and longevity. Reinsurance of alternative risk products include weather
and credit protection to financial, industrial and service companies on a worldwide basis.

PartnerRe Ltd. and it subsidiaries are collectively referred to hereinafter as PartnerRe, the Company or the Group.

The Company was incorporated in August 1993 under the laws of Bermuda. The Company commenced operations in
November 1993 upon completion of the sale of common shares and warrants pursuant to subscription agreements and an initial
public offering.

The Company completed the acquisition of Societe Anonyme Francaise de Reassurances (SAFR, subsequently renamed

PartnerRe SA and reinsurance business transferred into PartnerRe Europe) in 1997, the acquisition of Winterthur Re in 1998, the
acquisition of PARIS RE Holdings Limited (Paris Re) in 2009, the acquisition of Presidio Reinsurance Group, Inc. (Presidio) in
2012 and the acquisition of Aurigen Capital Limited (Aurigen) in April 2017.

On March 18, 2016, the Company's publicly held common shares were acquired by Exor N.V. (subsequently renamed to
EXOR Nederland N.V), whose ultimate parent is EXOR N.V. (Exor), one of Europe’s leading investment companies controlled by
the Agnelli family, which is listed on the Milan Stock Exchange. As a result of the acquisition, PartnerRe's publicly issued common
shares were cancelled and are no longer publicly traded. The Company’s preferred shares continue to be traded on the New York
Stock Exchange (NYSE).

At December 31, 2020 and 2019, the Company's 100 million common shares (Class A shares) issued to EXOR Nederland

N.V. are included in Shareholders' Equity in the Consolidated Balance Sheets (see Note 10). At December 31, 2020 and 2019, the
Company also had 274,664 and 281,768, respectively, of Class B common shares (Class B shares) issued to certain executives and
directors of the Company which are recognized in Accounts payable, accrued expenses and other in the Consolidated Balance
Sheets (see Note 13). The percentage of total common shares owned by EXOR Nederland N.V. at December 31, 2020 and 2019 was
approximately 99.7%.

2. Significant Accounting Policies

The Company’s Consolidated Financial Statements have been prepared in accordance with accounting principles generally
accepted in the United States (U.S. GAAP). The Consolidated Financial Statements include the accounts of the Company and its
subsidiaries. Intercompany accounts and transactions have been eliminated. Certain reclassifications have been made to prior period
amounts to conform to the current year presentation.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and

assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. While management believes that the amounts included in the Consolidated
Financial Statements reflect its best estimates and assumptions, actual results could differ from those estimates. The Company’s
principal estimates include:

• Non-life reserves;

• Life and health reserves;

• Reinsurance recoverable for unpaid losses;

• Gross and net premiums written and net premiums earned;
• Recoverability of deferred acquisition costs;
• Recoverability of deferred tax assets;
• Valuation of certain investments that are measured using significant unobservable inputs; and
• Valuation of goodwill and intangible assets.

Table of Contents

The following are the Company’s significant accounting policies:

(a) Premiums

Gross premiums written and earned are based upon reports received from ceding companies, supplemented by the Company’s

own estimates of premiums written and earned for which ceding company reports have not been received. The determination of
premium estimates requires a review of the Company’s experience with cedants, familiarity with each market, an understanding of
the characteristics of each line of business and management’s assessment of the impact of various other factors on the volume of
business written and ceded to the Company. Premium estimates are updated as new information is received from cedants and
differences between such estimates and actual amounts are recorded in the period in which the estimates are changed or the actual
amounts are determined. Net premiums written and earned are presented net of ceded premiums.

Premiums related to non-life business are earned on a basis that is consistent with the risks covered under the terms of the
reinsurance contracts, which is generally one to two years. Reinstatement premiums are recognized as written and earned at the time
a loss event occurs, where coverage limits for the remaining life of the contract are reinstated under pre-defined contract terms. The
accrual of reinstatement premiums is based on management’s estimate of losses and loss expenses associated with the loss event.
Unearned premiums represent the portion of premiums written which is applicable to the unexpired risks under contracts in force.

Premiums related to life and annuity business are recorded over the premium-paying period on the underlying policies.
Premiums on contracts for which there is no significant mortality or critical illness risk are accounted for in a manner consistent
with accounting for interest-bearing financial instruments and are not reported as revenues, but rather as direct deposits to the
contract. Amounts assessed against annuity and universal life policyholders are recognized as revenue in the period assessed.

(b) Losses and Loss Expenses

The reserves for non-life business include amounts determined from loss reports on individual treaties (case reserves),
additional case reserves when the Company’s loss estimate is higher than reported by the cedants (ACRs) and amounts for losses
incurred but not yet reported to the Company (IBNR). Such reserves are estimated by management based upon reports received
from ceding companies, supplemented by the Company’s own actuarial estimates of reserves for which ceding company reports
have not been received, and based on the Company’s own historical experience. To the extent that the Company’s own historical
experience is inadequate for estimating reserves, such estimates may be determined based upon industry experience and
management’s judgment. The estimates are regularly reviewed and the ultimate liability may be materially in excess of, or less than,
the amounts provided. Any adjustments are reflected in the periods in which they are determined, which may affect the Company’s
operating results in future periods. See Note 7(a) for further details.

The life and health reserves have been established based upon information reported by ceding companies, supplemented by the

Company’s actuarial estimates, which for life include mortality, morbidity, critical illness, persistency and future investment
income, with appropriate provision to reflect uncertainty. For traditional and limited payment long-duration contracts, the
assumptions are locked in at contract inception and are subject to annual loss recognition testing. Future policy benefit reserves for
annuity and universal life contracts are carried at their accumulated values. Reserves for policy claims and benefits include both
mortality, morbidity and critical illness claims in the process of settlement, and claims that have been incurred but not yet reported.
See Note 7(b) for further details.

Acquisition costs, comprising primarily incremental brokerage fees, commissions and excise taxes, which vary directly with,
and are related to, the acquisition of reinsurance contracts, are capitalized and charged to expense as the related premium is earned.
All other acquisition related costs, including indirect costs, are expensed as incurred. Acquisition costs are shown net of
commissions earned on ceded reinsurance.

Acquisition costs related to individual life and annuity contracts are deferred and amortized over the premium-paying periods

in proportion to anticipated premium income, allowing for lapses, terminations and anticipated investment income. Acquisition
costs related to universal life and single premium annuity contracts for which there is no significant mortality or critical illness risk
are deferred and amortized over the lives of the contracts as a percentage of the estimated gross profits expected to be realized on
the contracts.

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The Company establishes a premium deficiency reserve to the extent the deferred acquisition costs are insufficient to cover the

excess of expected losses and loss expenses, settlement costs and deferred acquisition costs over the related unearned premiums.
Actual and anticipated losses and loss expenses, other costs, and investment income related to underlying premiums are considered
in determining the recoverability of deferred acquisition costs for the Company’s short-duration contracts. Actual and anticipated
loss experience, together with the present value of future gross premiums, the present value of future benefits, and settlement and
maintenance costs are considered in determining the recoverability of deferred acquisition costs related to the Company’s life and
annuity business.

(d) Reinsurance

The Company purchases retrocessional contracts to reduce its exposure to risk of losses on reinsurance assumed. Ceded
premiums, which represent the cost of retrocessional protection purchased by the Company, are expensed over the coverage period.
Prepaid reinsurance premiums represent the portion of premiums ceded applicable to the unexpired term of policies in force.

Reinsurance recoverable on paid and unpaid losses involves actuarial estimates consistent with those used to establish the

associated liabilities for non-life and life and health reserves and are recorded net of a valuation allowance for estimated
uncollectible recoveries.

Retroactive reinsurance reimburses a ceding company for liabilities incurred as a result of past insurable events covered under

contracts subject to the reinsurance. Premiums payable for retroactive reinsurance coverage meeting the conditions of reinsurance
accounting are reported as reinsurance recoverables to the extent that those amounts do not exceed recorded liabilities relating to
underlying reinsurance contracts. To the extent that recorded liabilities on an underlying reinsurance contract exceed premiums
payable for retroactive coverage, a deferred gain is recognized in the Company's Consolidated Balance Sheets.

(e) Funds Held by Reinsured Companies

The Company writes certain business on a funds held basis. Under such contractual arrangements, the cedant retains the
premiums that would have otherwise been paid to the Company and the Company is credited with investment income on these
funds. The Company generally earns investment income on the funds held balances based upon a predetermined interest rate, either
fixed contractually at the inception of the contract or based upon a recognized index (e.g. LIBOR). However, in certain
circumstances, the Company may receive an investment return based upon either the result of a pool of assets held by the cedant,
generally used to collateralize the funds held balance, or the investment return earned by the cedant on its entire investment
portfolio. In these arrangements, investment returns are typically reflected in Net investment income in the Company’s Consolidated
Statements of Operations. In these arrangements, the Company is exposed, to a limited extent, to the underlying credit risk of the
pool of assets inasmuch as the underlying policies may have guaranteed minimum returns. In such cases, an embedded derivative
exists and its fair value is recorded by the Company as an increase or decrease to the funds held balance.

(f) Deposit Assets and Liabilities

In the normal course of its operations, the Company writes certain contracts that do not meet the risk transfer provisions of
U.S. GAAP. While these contracts do not meet risk transfer provisions for accounting purposes, there is a remote possibility that the
Company will suffer a loss. The Company accounts for these contracts using the deposit accounting method originally recording
deposit assets or liabilities for an amount equivalent to the consideration paid or received, respectively. The difference between the
consideration received and the estimated liability for unpaid losses is determined upon entering into the contract and, if a loss,
recognized into income immediately, and if a gain, the gain is deferred and earned over the expected settlement period of the
contract, with the unearned portion recorded as a component of deposit liabilities. Actuarial studies are used to estimate the
liabilities under these contracts and the appropriate accretion rates to increase or decrease the liabilities over the term of the
contracts. The change in the estimated liability for the period is recorded in Other income or loss in the Consolidated Statements of
Operations. Under some of these contracts, cedants retain the assets on a funds-held basis. In those cases, the Company records
those assets as deposit assets and records the related income in Net investment income in the Consolidated Statements of
Operations. Also included in Deposit assets are receivables included as an element of certain life reinsurance agreements that do not
meet risk transfer.

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(g) Investments

The Company elects the fair value option for Fixed maturities and Equities with changes in fair value recorded in Net realized

and unrealized investment gains or losses in the Consolidated Statements of Operations.

Short-term investments, which comprise securities with a maturity greater than three months but less than one year from the

date of purchase, are recorded at fair value by electing either the fair value option with changes in fair value recorded in Net realized
and unrealized gains or losses included in the Consolidated Statements of Operations, or by designating as available-for-sale with
changes in fair value recorded in Other comprehensive income or loss.

Investments in real estate are recorded at cost less any write down for impairment, where applicable. Real estate assets held for

investment are reviewed for impairment at least annually, or more frequently when events or changes in circumstances indicate the
carrying value may not be recoverable and exceeds its estimated fair value.

The Company recognizes Other invested assets at fair value, except for those that are accounted for using the equity method of

accounting. Other invested assets consist of equity investments in non-publicly traded companies; privately placed corporate loans,
notes and loans receivable and notes securitization; and derivative financial instruments. Non-publicly traded entities in which the
Company has significant influence, including an ownership of more than 20% and less than 50% of the voting rights, and limited
partnerships in which the Company has more than a minor interest (typically more than 3 to 5%), are accounted for using either the
equity method or the fair value option. Where the equity method is used, the Company's share of profits or losses of the investee are
recorded in Interest in earnings or losses of equity method investees in the Consolidated Statements of Operations. Where the fair
value option is elected, the investment is recognized in the Consolidated Balance Sheets at fair value with changes in fair value
recorded in Net realized and unrealized investment gains or losses in the Consolidated Statements of Operations. See Note 2(n)
below for significant accounting policy for derivatives.

Net investment income includes interest and dividend income, amortization of premiums and discounts on fixed maturities and
short-term investments, and is net of investment expenses and withholding taxes. Investment income is recognized when earned and
accrued to the balance sheet date. Realized gains or losses on the disposal of investments are determined on a first-in, first-out basis.
Investment purchases and sales are recorded on a trade-date basis.

The Company defines fair value as the price received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The Company measures the fair value of financial instruments according to a
fair value hierarchy that prioritizes the information used to measure fair value into three broad levels. The Company’s policy is to
recognize transfers between the hierarchy levels at the beginning of the period. Refer to Note 3 for the valuation techniques used by
the Company.

(h) Cash and Cash Equivalents

Cash equivalents are carried at fair value and include fixed income securities that, from the date of purchase, have a maturity

of three months or less.

(i) Business Combinations

The Company accounts for transactions in which it obtains control over one or more businesses using the acquisition method.

The purchase price is allocated to identifiable assets and liabilities, including any intangible assets, based on their estimated fair
value at the acquisition date. The estimates of fair values for assets and liabilities acquired are determined based on various market
and income analyses and appraisals. Any excess of the purchase price over the fair value of net assets acquired is recorded as
Goodwill in the Company’s Consolidated Balance Sheets, while any excess of the fair value of net assets acquired over the purchase
price is recorded as a gain in the Consolidated Statements of Operations. All costs associated with an acquisition are expensed as
incurred.

(j) Goodwill

Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in a business combination.

The Company assesses the appropriateness of its valuation of goodwill on an annual basis (as of December 31) or more frequently if
events or changes in circumstances indicate that the carrying amount may not be recoverable. If, as a result of the assessment, the
Company determines that the value of its goodwill is impaired, goodwill will be written down in the period in which the
determination is made.

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(k) Intangible Assets

Intangible assets represent the fair value adjustments related to renewal rights, and customer relationships; value of life
business acquired; and U.S. licenses arising from acquisitions. Definite-lived intangible assets are amortized over their useful lives
and the Amortization of intangible assets is recorded in the Consolidated Statement of Operations. Indefinite-lived intangible assets
are not subject to amortization. The carrying values of indefinite-lived intangible assets are reviewed for indicators of impairment on
an annual basis (as of December 31) or more frequently if events or changes in circumstances indicate that impairment may exist.
Impairment is recognized if the carrying values of the intangible assets are not recoverable from their undiscounted cash flows and
is measured as the difference between the carrying value and the fair value.

(l) Income Taxes

Certain subsidiaries and branches of the Company operate in jurisdictions where they are subject to taxation. Current and

deferred income taxes are charged or credited to Net income or loss or, in certain cases, to Accumulated other comprehensive
income or loss, based upon enacted tax laws and rates applicable in the relevant jurisdiction in the period in which the tax becomes
accruable or realizable. Deferred income taxes are provided for all temporary differences between the bases of assets and liabilities
used in the Consolidated Balance Sheets and those used in the various jurisdictional tax returns. When management’s assessment
indicates that it is more likely than not that deferred tax assets will not be realized, a valuation allowance is recorded against the
deferred tax assets. Where appropriate, the valuation allowance assessment considers tax planning strategies.

The Company recognizes a tax benefit relating to uncertain tax positions only where the position is more likely than not to be
sustained assuming examination by tax authorities. A liability is recognized for any tax benefit (along with any interest and penalty,
if applicable) claimed in a tax return in excess of the amount recognized in the financial statements under U.S. GAAP. Any changes
in amounts recognized are recorded in the period in which they are determined.

(m) Foreign Exchange

In recording foreign currency transactions, revenue and expense items in a currency other than the functional currency are

converted into the functional currency at the average rates of exchange for the period. Monetary assets and liabilities originating in
currencies other than the functional currency are remeasured into the functional currency at the rates of exchange in effect at the
balance sheet dates. The resulting foreign exchange transaction gains or losses are included in Net foreign exchange gains or losses
in the Consolidated Statements of Operations. Non-monetary assets and liabilities denominated in foreign currency are not
subsequently remeasured.

The reporting currency of the Company is the U.S. dollar. The national currencies of the Company’s subsidiaries and branches

are generally their functional currencies, except for the Company’s Bermuda subsidiaries, its Swiss branch and its Singapore
subsidiary and branches, whose functional currency is the U.S. dollar. In translating the financial statements of those subsidiaries or
branches whose functional currency is other than the U.S. dollar, assets and liabilities are converted into U.S. dollars using the rates
of exchange in effect at the balance sheet dates, and revenues and expenses are converted using the average foreign exchange rates
for the period. The effect of translation adjustments are reported in the Consolidated Balance Sheets as Currency translation
adjustment, a separate component of Accumulated other comprehensive income or loss. The change in currency translation
adjustment is reflected in Other comprehensive income or loss.

(n) Derivatives

The Company’s investment strategy allows for the use of certain derivative instruments, subject to strict limitations. The
Company may use derivative financial instruments such as foreign exchange forward contracts, foreign currency option contracts,
futures contracts, to-be-announced mortgage-backed securities (TBAs), total return swaps, interest rate swaps, insurance-linked
securities, and credit default swaps for the purpose of managing overall currency risk, market exposures and portfolio duration, for
hedging certain investments, or for enhancing investment performance that would be allowed under the Company’s investment
policy if implemented in other ways.

On the date the Company enters into a derivative contract, management determines whether or not the derivative is to be used
and designated as a hedge of an identified underlying risk exposure (a designated hedge). The Company’s derivative instruments are
recorded in Other invested assets in the Consolidated Balance Sheets at fair value, with gains and losses associated with changes in
fair value recognized in either Net realized and unrealized investment gains or losses or Net foreign exchange gains or losses in the
Consolidated Statements of Operations, or in Other comprehensive income, depending on the nature and designation of the
derivative instrument (see also Note 5).

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The Company formally documents all relationships between designated hedging instruments and hedged items, as well as its

risk management objectives and strategy for undertaking various hedge transactions. In this documentation, the Company
specifically identifies the asset or liability that has been designated as a hedged item and states how the hedging instrument is
expected to hedge the risks related to the hedged item. The Company formally measures effectiveness of its designated hedging
relationships both at the hedge inception and on an ongoing basis. For its derivatives designated as hedges at December 31, 2018,
the Company's method for assessing the effectiveness of the designated hedge was a qualitative assessment, as the Company
determined that the hedging instrument (the designated foreign currency forward contracts) and the hedged assets (the available-for-
sale foreign currency denominated short-term investments) were perfectly aligned as they related to the hedged risk, the foreign
currency exchange rate risk exposure. These hedges were settled during 2019, and there were no derivatives designated as hedges at
December 31, 2020 and 2019.

The Company will discontinue hedge accounting prospectively if it is determined that the derivative is no longer effective in

hedging the exposure to variability in expected future cash flows that is attributable to the risk it was meant to hedge; if the
derivative instrument expires, is sold, or is otherwise terminated; or if the Company removes the designation of the hedge. To the
extent that the Company discontinues hedge accounting because, based on management’s assessment, the derivative no longer
qualifies as an effective hedge, or the Company otherwise de-designates the hedge, the derivative will continue to be carried in the
Consolidated Balance Sheet at its fair value, with changes in its fair value recognized in in the Consolidated Statements of
Operations, or in Other comprehensive income, depending on the type of derivative held.

(o) Pensions

The Company recognizes an asset or a liability in the Consolidated Balance Sheets for the funded status of its defined benefit

plans that are overfunded or underfunded, respectively, measured as the difference between the fair value of plan assets and the
pension obligation and recognizes changes in the funded status of defined benefit plans in the year in which the changes occur as a
component of Accumulated other comprehensive income or loss, net of tax.

(p) Variable Interest Entities

The Company is involved in the normal course of business with variable interest entities (VIEs). An assessment is performed

as of the date the Company becomes initially involved in the VIE followed by a reassessment upon certain events related to its
involvement in the VIE. The Company consolidates a VIE when it is the primary beneficiary having a controlling financial interest
as a result of having the power to direct the activities that most significantly impact the economic performance of the VIE and the
obligation to absorb losses, or right to receive benefits, that could potentially be significant to the VIE.

(q) Segment Reporting

The Company monitors the performance of its operations in three segments: Property & Casualty (P&C), Specialty and Life
and Health. Segments represent markets that are reasonably homogeneous in terms of client types, buying patterns, underlying risk
patterns or approach to risk management.

Since the Company does not manage its assets by segment, neither assets nor net investment income are allocated to the P&C

and Specialty segments. However, because of the interest-sensitive nature of some of the Company’s life products, allocated net
investment income is considered in management’s assessment of the profitability of the Life and Health segment. The following
items are not considered in evaluating the results of the P&C, Specialty and Life and Health segments: Net realized and unrealized
investment gains or losses, Interest expense, Loss on redemption of debt, Amortization of intangible assets, Net foreign exchange
gains or losses, Income tax expense or benefit and Interest in earnings and losses of equity method investments. These items are
included in the Corporate and Other component, which is comprised of the Company’s investment and corporate activities,
including other expenses.

(r) Share-Based Incentives

The Company is authorized to issue restricted Class B shares to certain executives and directors. The compensation cost for
restricted shares is measured at fair value and expensed over the period for which the employee is required to provide services in
exchange for the award, up to three years from the date of grant. The Company has elected to recognize forfeitures as they occur.
Unrestricted Class B shares can be sold back to the Company at the option of the shareholder. Class B shares are accounted for as
liabilities and included in Accounts payable, accrued expenses and other on the Consolidated Balance Sheets.

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(s) Recent Accounting Pronouncements

Adopted during 2020

In January and April 2017, the FASB issued updated guidance on the accounting for goodwill impairment. This update
removes the second step of the goodwill impairment test and requires entities to apply a one-step quantitative test and record the
amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount
of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill
impairment. The guidance is effective for annual impairment tests in fiscal years beginning after December 15, 2019, and the
Company adopted the guidance effective January 1, 2020. The adoption did not have a material impact on the Company's
Consolidated Financial Statements.

In August 2018, the FASB issued updated guidance to the disclosure requirements for fair value measurement as part of the
disclosure framework project. The updated guidance allows for the removal and modification of certain disclosures to improve the
effectiveness of disclosures in the notes to financial statements. This guidance is effective for fiscal years beginning after December
15, 2019, and the Company adopted this guidance effective January 1, 2020. As the guidance is disclosure-related only, it did not
have a material impact on the Company's Consolidated Financial Statements. Refer to Note 3 for the relevant disclosures.

In August 2018, the FASB issued updated guidance to improve the effectiveness of disclosures for defined benefit plans, as
part of the disclosure framework project. The updated guidance allows for the removal and modification of certain disclosures to
improve the effectiveness of disclosures in the notes to financial statements. This guidance is effective for fiscal years beginning
after December 15, 2019, and the Company adopted the guidance effective January 1, 2020. As the guidance is disclosure-related
only, it did not have a material impact on the Company's Consolidated Financial Statements. Refer to Note 14 for the relevant
disclosures.

In June 2016, the FASB issued updated guidance on the recognition of credit losses by replacing the incurred loss impairment
methodology with new accounting models related to how credit losses on financial instruments are determined. The new guidance is
applicable to financial assets measured at amortized cost such as loans, reinsurance receivables, trade receivables, debt securities,
off-balance sheet credit exposures and other financial assets that have a contractual right to receive cash. The Company's
investments, except for certain Other invested assets that are accounted for using the equity method of accounting and Investments
in real estate, are measured at fair value through net income, and therefore those investments are not impacted by the adoption of
this guidance. The guidance is effective for annual periods beginning after December 15, 2019. The Company adopted the guidance
on January 1, 2020 and recorded an after-tax cumulative effect adjustment as a decrease to retained earnings of $14 million upon
adoption. Refer to Notes 8(a) and 15(a) for further information regarding the impacts of adoption of this guidance.

Not yet adopted

In August 2018, the FASB issued updated guidance to improve financial reporting for insurance companies that issue long-

duration contracts such as life insurance and annuities. The objective of the new guidance is to improve, simplify, and enhance the
financial reporting of long-duration contracts by providing financial statement users with useful information in a timely and
transparent manner. This guidance is effective for annual periods beginning after December 15, 2022. The Company is currently
evaluating the impact of this guidance on its Consolidated Financial Statements and disclosures required to be adopted for the year
ended December 31, 2023. This guidance could have a material impact on the measurement recognition of long duration contracts
and will result in additional disclosures once adopted.

In March 2020, the FASB issued guidance which provides optional expedients and exceptions for applying U.S. GAAP to

modification of contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate (LIBOR)
or another reference rate expected to be discontinued because of reference rate reform. Along with the optional expedients, the
amendments include a general principle that permits an entity to consider contract modifications due to reference reform to be an
event that does not require contract re-measurement at the modification date or reassessment of a previous accounting
determination. This guidance may be elected over time through December 31, 2022 as reference rate reform activities occur. The
Company is currently evaluating the impact of adopting this guidance on its Consolidated Financial Statements and disclosures.

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3. Fair Value

(a) Fair Value of Financial Instrument Assets

The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value by maximizing the use of

observable inputs and minimizing the use of unobservable inputs by requiring that the most observable inputs be used when
available. Observable inputs are inputs that market participants would use in pricing an asset or liability based on market data
obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about
what market participants would use in pricing the asset or liability based on the best information available in the circumstances. The
level in the hierarchy within which a given fair value measurement falls is determined based on the lowest level input that is
significant to the measurement.

The Company determines the appropriate level in the hierarchy for each financial instrument that it measures at fair value. In

determining fair value, the Company uses various valuation approaches, including market, income and cost approaches. The
hierarchy is broken down into three levels based on the observability of inputs as follows:

•

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

The Company’s financial instruments that it measures at fair value using Level 1 inputs generally include equities listed
on a major exchange.

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.

The Company’s financial instruments that it measures at fair value using Level 2 inputs generally include: U.S.
government issued bonds; U.S. government sponsored enterprises bonds; certain U.S. state, territory and municipal
entities bonds; non-U.S. sovereign government, supranational and government related bonds; investment grade and high
yield corporate bonds; mortgage-backed securities; short-term investments; certain common and preferred equities;
foreign exchange forward contracts; foreign currency option contracts; and interest rate swaps.

•

Level 3 inputs—Unobservable inputs.

The Company’s financial instruments that it measures at fair value using Level 3 inputs generally include: inactively
traded fixed maturities including U.S. state, territory and municipal bonds; certain corporate bonds; special purpose
financing asset-backed bonds; unlisted or private equities; certain other mutual fund equities; privately placed corporate
loans, notes and loans receivable and notes securitizations included in Other invested assets; and certain other derivatives,
including weather derivatives, longevity insurance-linked securities; warrants; and total return swaps included in Other
invested assets.

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At December 31, 2020 and 2019, the Company’s financial instruments measured at fair value were classified between Levels

1, 2 and 3 as follows (in thousands of U.S. dollars):

December 31, 2020
Fixed maturities

U.S. government and government sponsored
enterprises
U.S. states, territories and municipalities
Non-U.S. sovereign government, supranational and
government related
Corporate bonds
Asset-backed securities
Residential mortgage-backed securities

Fixed maturities
Short-term investments
Equities

Energy
Consumer cyclical
Consumer non-cyclical
Insurance
Finance
Real estate
Industrials
Diversified
Mutual funds

Equities
Other invested assets
Derivative assets

Foreign exchange forward contracts
Total return swaps
Insurance-linked securities
Other

Other

Corporate loans (1)
Notes and loans receivable and notes
securitization
Private equities
Derivative liabilities

Foreign exchange forward contracts
Total return swaps
Interest rate swaps
Insurance-linked securities

Other invested assets

Total

Quoted prices in
active markets for
identical assets
(Level 1)

Significant
other observable
inputs
(Level 2)

Significant
unobservable
inputs
(Level 3)

Total

$
$

— $
—

2,409,540 $
17,491

— $

120,477

2,409,540
137,968

—
—
—
—

2,180,762
3,325,324
—
4,698,728

—
16,530
17,528
—

2,180,762
3,341,854
17,528
4,698,728

— $ 12,631,845 $
416,350 $
— $

154,535 $
— $

12,786,380
416,350

— $

13,312
—
—
3,508
—
—
2
—

— $
—
—
117
—
—
—
—
—

34,448 $
475
6,886
4,000
138
2,338
39
3,098
1,428,080

34,448
13,787
6,886
4,117
3,646
2,338
39
3,100
1,428,080

16,822 $

117 $ 1,479,502 $

1,496,441

— $
—
—
—

7,309 $
—
—
—

— $
797
3,074
419

7,309
797
3,074
419

—

—
—

—
—
—
—

—

—
—

(10,698)

—

(17,509)

—

1,326,143

7,121
756,731

—
(3,152)
—
(2,000)

7,121
756,731

(10,698)
(3,152)
(17,509)
(2,000)

— $

(20,898) $ 2,089,133 $

2,068,235

16,822 $ 13,027,414 $ 3,723,170 $

16,767,406

(1) Corporate loans includes a portfolio of third-party, individually managed privately issued corporate loans that are managed
under an externally managed mandate with a fair value of $0.9 billion and $1.4 billion at December 31, 2020 and 2019,
respectively. The mandate primarily invests in U.S. floating rate, first lien, senior secured broadly syndicated loans with a focus
on facility sizes greater than $300 million. Corporate loans also includes $0.4 billion and $0.5 billion of other privately issued
corporate loans at December 31, 2020 and 2019 respectively.

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December 31, 2019
Fixed maturities

Fixed maturities

Short-term investments
Equities

Finance
Consumer cyclical
Insurance
Consumer noncyclical
Basic materials
Industrials
Technology
Real estate
Communications
Mutual funds

Equities
Other invested assets
Derivative assets

Foreign exchange forward contracts
Total return swaps
Insurance-linked securities
Foreign currency option contracts

Other

Corporate loans
Notes and loans receivable and notes
securitization
Private equities
Derivative liabilities

Foreign exchange forward contracts
Total return swaps

Interest rate swaps

Insurance-linked securities

Other invested assets

Total

Quoted prices in
active markets for
identical assets
(Level 1)

Significant
other observable
inputs
(Level 2)

Significant
unobservable
inputs
(Level 3)

Total

— $
—

1,421,716 $
13,807

— $

143,427

1,421,716
157,234

—
—
—
—
—

3,255,154
2,643,402
—
3,166,290
3

—
18,687
18,228
—
—

3,255,154
2,662,089
18,228
3,166,290
3

— $ 10,500,372 $

180,342 $ 10,680,714

— $

1,003,421 $

— $

1,003,421

31,315 $
20,117
5,284
13,126
5,295
4,042
3,027
—
922
—
83,128 $

2 $
—
273
—
—
—
—
—
—
—
275 $

126 $
—
9,403
—
—
—
—
2,385
—
1,199,847
1,211,761 $

31,443
20,117
14,960
13,126
5,295
4,042
3,027
2,385
922
1,199,847
1,295,164

— $
—
—
—

4,363 $
—
—
266

— $

1,448
2,728
—

4,363
1,448
2,728
266

—

—
—

—

—
—

(5,643)
—

(12,378)

1,879,105

3,085
533,744

—
(2,962)

—

3,085
533,744

(5,643)
(2,962)

(12,378)

(3,871)

—

(3,871)

— $

(13,392) $

2,413,277 $

2,399,885

83,128 $ 11,490,676 $

3,805,380 $ 15,379,184

At December 31, 2020 and 2019, the aggregate carrying amounts of items included in Other invested assets that the Company
did not measure at fair value were $900 million and $866 million, respectively, which related to the Company’s investments that are
accounted for using the equity method of accounting. Refer to Note 4(f) for further information on the Company's equity method
investments.

At December 31, 2020 and 2019, the carrying value of accrued investment income approximated fair value due to its short-

term nature.

During the year ended December 31, 2020 , an equity security valued at $4 million was transferred from Level 1 to Level 3

due to the unavailability of quoted prices in active markets. There were no transfers from Level 1 to Level 3 during the year ended
December 31, 2019.

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During the years ended December 31, 2020 and 2019, private equity securities valued at $3 million and $14 million,

respectively, were transferred from Level 3 to Level 1 due to the availability of quoted prices in active markets.

Disclosures about the fair value of financial instruments that the Company does not measure at fair value exclude insurance

contracts and certain other financial instruments. At December 31, 2020 and 2019, the fair values of financial instrument assets
recorded in the Consolidated Balance Sheets not described above approximate their carrying values.

The reconciliations of the beginning and ending balances for financial instruments measured at fair value using Level 3 inputs

for the years ended December 31, 2020 and 2019, were as follows (in thousands of U.S. dollars):

For the year ended December 31, 2020
Fixed maturities

U.S. states, territories and
municipalities

Asset-backed securities

Corporate bonds

Fixed maturities

Equities

Energy

Consumer noncyclical

Insurance

Real estate

Consumer cyclical

Finance

Industrials

Diversified

Mutual funds

Equities

Other invested assets

Derivatives, net

Corporate loans
Notes and loan receivables
and notes securitization
Private equities

Realized and
unrealized
investment
(losses) gains
included in
net income

Balance at
beginning
of year

Purchases

Settlements
and
sales (1)

Net
transfers
into
(out of)
Level 3

Balance
at end of
year

Change in
unrealized
investment
(losses) gains
relating to
assets held at
end of year

$ 143,427 $

(5,785) $ — $

(17,165) $

— $ 120,477 $

(5,780)

18,228

18,687

—

(128)

—

(700)

(2,029)

—

17,528

16,530

—

(128)

$ 180,342 $

(5,913) $ — $

(19,894) $

— $ 154,535 $

(5,908)

— $

3,419 $ 31,128 $

(99) $

— $ 34,448 $

—

9,403

2,385

—

126

—

(3,168)

5,560

(5,403)

(416)

—

(491)

—

369

475

—

530

(706)

3,804

—

1,199,847

206,654

47,391

(25,812)

4,494

—

6,886

4,000

2,338

475

138

3,098

3,320

278

4,000

(416)

—

(491)

(706)

1,428,080

198,911

$ 1,211,761 $ 199,901 $ 89,257 $

(25,911) $

4,494 $ 1,479,502 $

204,908

(2,657) $

(8,217) $ 5,008 $

5,004 $

— $

(862) $

1,879,105

(10,980) 555,780

(1,097,762)

—

1,326,143

3,085
533,744

124
105,627

4,448
260,096

(536)
(140,074)

—

7,121
(2,662) 756,731

(5,085)

31,980

(979)
93,903

Other invested assets

$ 2,413,277 $ 86,554 $ 825,332 $ (1,233,368) $

(2,662) $ 2,089,133 $

119,819

Total

$ 3,805,380 $ 280,542 $ 914,589 $ (1,279,173) $

1,832 $ 3,723,170 $

318,819

(1) Settlements and sales of Equities and Other invested assets included sales of $26 million and $1.1 billion, respectively. Sales of
Other invested assets of $1.1 billion included sales of corporate loans of $981 million and private equities of $137 million.

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Table of Contents

For the year ended December 31, 2019

Fixed maturities

U.S. states, territories and
municipalities

Asset-backed securities

Corporate

Fixed maturities

Equities

Finance

Technology

Mutual funds

Insurance

Real estate

Equities

Other invested assets

Derivatives, net

Corporate loans
Notes and loan receivables and
notes securitization

Private equities

Other invested assets

Total

Realized and
unrealized
investment
gains (losses)
included in
net income

Balance at
beginning
of year

Settlements
and
sales (1)

Net
transfers
(out of) into
Level 3

Balance
at end of
year

Purchases

Change in
unrealized
investment
gains (losses)
relating to
assets held at
end of year

$ 120,898 $ 12,959 $ 10,455 $

(885) $

— $ 143,427 $ 12,951

17,596

21,470

1,274

157

—

(642)

(2,940)

—

18,228

18,687

1,274

157

$ 159,964 $ 14,390 $ 10,455 $

(4,467) $

— $ 180,342 $ 14,382

$ 13,710 $

100 $

— $

— $ (13,684) $

126 $

12,256

(1,538)

—

(10,718)

621,759

388,024

206,685

(16,621)

—

7,514

—

1,889

2,385

—

(3)

—

1,199,847

385,317

9,403

2,385

7,514

—

$ 647,725 $ 394,100 $ 210,959 $ (27,339) $ (13,684) $ 1,211,761 $ 392,828

(1,279) $

115 $

(2,000) $

507 $

— $

(2,657) $

(111)

401,702

9,237

1,828,802

(360,636)

—

1,879,105

9,940

6,507

(717)

—

(2,705)

372,710

49,759

132,256

(20,981)

—

3,085

139

533,744

37,159

$ 779,640 $ 58,394 $ 1,959,058 $ (383,815) $

— $ 2,413,277 $ 47,127

$ 1,587,329 $ 466,884 $ 2,180,472 $ (415,621) $ (13,684) $ 3,805,380 $ 454,337

(1) Settlements and sales of Equities and Other invested assets included sales of $27 million and $289 million, respectively. Sales

of Other invested assets of $289 million included sales of corporate loans of $270 million, notes and loan receivables and notes
securitization of $2 million, and private equities of $17 million.

The significant unobservable inputs used in the valuation of financial instruments measured at fair value using Level 3 inputs

at December 31, 2020 and 2019 were as follows (fair value in thousands of U.S. dollars):

December 31, 2020
Fixed maturities

U.S. states, territories and
municipalities
Asset backed securities

Other invested assets

Total return swaps, net

Insurance-linked securities –
longevity swaps
Notes and loans receivables

Note securitization

Private equity – other
Private equity – funds

Fair value Valuation techniques

Unobservable inputs

Range
(Weighted average (1))

$ 120,477 Discounted cash flow Credit spreads

2.5% – 283.2% (14.8%)

17,528 Discounted cash flow Credit spreads

4.7% (4.7%)

(2,355) Discounted cash flow Credit spreads
3,074 Discounted cash flow Credit Spreads

2.7% – 36.7% (29.8%)

1.8% (1.8%)

6,446 Discounted cash flow Credit spread

Gross revenue/fair value

675 Discounted cash flow Credit spreads
30,067 Discounted cash flow Effective yield
188,533 Lag reported market

value

Net asset value, as reported
Market adjustments

17.5% (17.5%)

1.1 (1.1)

2.5% (2.5%)

3.9% (3.9%)

100.0% (100.0%)
15.7% – 16.0% (15.9%)

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Table of Contents

December 31, 2019
Fixed maturities

U.S. states, territories and
municipalities
Asset backed securities

Equities

Insurance

Other invested assets

Total return swaps, net

Insurance-linked securities –
longevity swaps
Insurance-linked securities –
pandemic swaps

Notes and loans receivables

Note securitization

Private equity – other

Private equity – funds

Fair value Valuation techniques

Unobservable inputs

Range
(Weighted average (1))

$ 143,427 Discounted cash flow Credit spreads

(0.1)% – 9.6% (3.5%)

18,228 Discounted cash flow Credit spreads

4.7% (4.7%)

9,403 Weighted market

Revenue multiple

comparables

Adjusted earnings multiple

Liquidity discount

2.6x (2.6x)

7.7x (7.7x)

30.0% (30.0%)

(1,514) Discounted cash flow Credit spreads

2.3% – 24.0% (16.9%)

2,728 Discounted cash flow Credit spreads

(1,871) Discounted cash flow Credit spreads

2,153 Discounted cash flow Credit spreads

Gross revenue/fair value
ratios

932 Discounted cash flow Credit spreads

15,800 Discounted cash flow Effective yield

1.9% (1.9%)

56.2% (56.2%)

17.5% (17.5%)

1.1 (1.1)

1.2% (1.2%)

3.0% (3.0%)

167,804 Lag reported market

Net asset value, as reported

100.0% (100.0%)

value

Market adjustments

1.9% – 15.0% (9.7%)

(1) Unobservable inputs were weighted by the relative fair value of the instruments.

The tables above do not include financial instruments that are measured using unobservable inputs (Level 3) where the
unobservable inputs were obtained from external sources and used without adjustment. These financial instruments include
corporate bonds (included within Fixed maturities), equities and mutual fund investments (included within Equities), certain private
equity funds (private equities included within Other invested assets), privately placed corporate loans (included within Other
invested assets) and certain derivatives (included within Other invested assets).

Changes in the fair value of the Company’s financial instruments subject to the fair value option during the years ended

December 31, 2020, 2019 and 2018 were as follows (in thousands of U.S. dollars):

Fixed maturities and short-term investments

Equities

Other invested assets
Funds held–directly managed (1)
Total

2020

2019

2018

219,946 $

190,343 $

(150,926)

167,456
63,669

—

403,011
50,857

—

2,791
(12,987)

(6,484)

451,071 $

644,211 $

(167,606)

(1) The funds held–directly managed account was settled in 2018 upon commutation of the related Paris Re Reserve Agreement. See

Note 7(a).

Substantially all of the above changes in fair value are included in Net realized and unrealized investment gains (losses) in the

Consolidated Statements of Operations. The change in the fair value of Other invested assets subject to the fair value option does
not include certain derivatives.

The following methods and assumptions were used by the Company in estimating the fair value of each class of financial

instrument recorded in the Consolidated Balance Sheets. There have been no material changes in the Company’s valuation
techniques during the periods presented.

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Table of Contents

Fixed maturities

•

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

U.S. states, territories and municipalities—consists primarily of bonds issued by U.S. states, territories and municipalities and
the Federal Home Loan Mortgage Corporation. 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 (credit spreads). Accordingly, the Company classifies these securities in Level 3. A significant increase (decrease) in
credit spreads in isolation could result in a significantly lower (higher) fair value measurement. The remaining 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.

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

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

Asset-backed securities— consists of special purpose financing securities. Special purpose financing securities are generally
inactively traded and are priced based on valuation models using unobservable inputs (credit spreads). The Company generally
classifies these securities in Level 3. A significant increase (decrease) in credit spreads in isolation could result in a significantly
lower (higher) fair value measurement.

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

Other mortgage-backed securities—primarily consists 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.

In general, the methods employed by the independent pricing services to determine the fair value of the securities that have not

been actively traded primarily involve the use of “matrix pricing” in which the independent pricing source applies the credit spread
for a comparable security that has traded recently to the current yield curve to determine a reasonable fair value. The Company
generally uses one pricing source per security and uses a pricing service ranking to consistently select the most appropriate pricing
service in instances where it receives multiple quotes on the same security. When fair values are unavailable from these independent
pricing sources, quotes are obtained directly from broker-dealers who are active in the corresponding markets. Most of the
Company’s fixed maturities are priced from the pricing services or dealer quotes. The Company will typically not make adjustments
to prices received from pricing services or dealer quotes; however, in instances where the quoted external price for a security uses
significant unobservable inputs, the Company will classify that security as Level 3. The methods used to develop and substantiate
the unobservable inputs used are based on the Company’s valuation policy and are dependent upon the facts and circumstances
surrounding the individual investments which are generally transaction specific. The Company’s inactively traded fixed maturities
are classified as Level 3. For all fixed maturity investments, the bid price is used for estimating fair value.

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To validate prices, the Company compares the fair value estimates to its knowledge of the current market and will investigate
prices that it considers not to be representative of fair value. The Company also reviews an internally generated fixed maturity price
validation report which converts prices received for fixed maturity investments from the independent pricing sources and from
broker-dealers quotes and plots OAS and duration on a sector and rating basis. The OAS is calculated using established algorithms
developed by an independent risk analytics platform vendor. The OAS on the fixed maturity price validation report are compared
for securities in a similar sector and having a similar rating, and outliers are identified and investigated for price reasonableness. In
addition, the Company completes quantitative analyses to compare the performance of each fixed maturity investment portfolio to
the performance of an appropriate benchmark, with significant differences identified and investigated.

Short-term investments

Short-term investments are valued in a manner similar to the Company’s fixed maturity investments and are generally

classified in Level 2.

Equities

Equity securities include U.S. and foreign common and preferred stocks, real estate investment trusts and mutual funds.
Publicly traded equities are generally classified in Level 1 as the Company uses prices received from independent pricing sources
based on quoted prices in active markets. Equities classified as Level 2 are generally mutual funds invested in fixed income
securities, where the net asset value of the fund is provided on a daily basis, and certain common and preferred equities. Equities
classified as Level 3 are generally mutual funds invested in securities other than the common stock of publicly traded companies,
where the net asset value is not provided on a daily basis, and inactively traded common stocks. The significant unobservable inputs
used in the fair value measurement of inactively traded common stocks classified as Level 3 include market return information,
weighted using management’s judgment, from comparable selected publicly traded companies in the same industry, in a similar
region and of a similar size, including revenue multiples and adjusted earnings multiples. Significant increases (decreases) in any of
these inputs could result in a significantly higher (lower) fair value measurement. Significant unobservable inputs used in measuring
the fair value measurement of inactively traded common stocks also include a liquidity discount. A significant increase (decrease) in
the liquidity discount could result in a significantly lower (higher) fair value measurement.

To validate prices, the Company completes quantitative analyses to compare the performance of each equity investment

portfolio to the performance of an appropriate benchmark, with significant differences identified and investigated.

Other invested assets

The Company’s foreign exchange forward contracts, interest rate swaps and foreign currency option contracts are generally

classified as Level 2 within the fair value hierarchy and are priced by independent pricing services.

Included in the Company’s Level 3 classification, in general, are certain derivatives, including weather derivative insurance-
linked securities and total return swaps; privately placed corporate loans; notes and loans receivable and notes securitizations; and
private equities. For Level 3 instruments, the Company will generally (i) receive a price based on a manager’s or trustee’s valuation
for the asset; (ii) develop an internal discounted cash flow model to measure fair value; or (iii) use market return information,
adjusted if necessary and weighted using management’s judgment, from comparable selected publicly traded equity funds in a
similar region and of a similar size. Where the Company receives prices from the manager or trustee, these prices are based on the
manager’s or trustee’s estimate of fair value for the assets and are generally audited on an annual basis. Where the Company
develops its own discounted cash flow models, the inputs will be specific to the asset in question, based on appropriate historical
information, adjusted as necessary, and using appropriate discount rates. The significant unobservable inputs used in the fair value
measurement of Other invested assets classified as Level 3 include credit spreads and gross revenue to fair value ratios. Significant
increases (decreases) in any of these inputs in isolation could result in a significantly lower (higher) fair value measurement.
Significant unobservable inputs used in the fair value measurement of Other invested assets classified as Level 3 also include market
return information, weighted using management’s judgment, from comparable selected publicly traded companies in the same
industry, in a similar region and of a similar size and effective yields. Significant increases (decreases) in these inputs in isolation
could result in a significantly higher (lower) fair value measurement. As part of the Company’s modeling to determine the fair value
of an investment, the Company considers counterparty credit risk as an input to the model, however, the majority of the Company’s
counterparties are investment grade rated institutions and the failure of any one counterparty would not have a significant impact on
the Company’s consolidated financial statements.

To validate prices, the Company will compare them to benchmarks, where appropriate, or to the business results generally

within that asset class and specifically to those particular assets.

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Table of Contents

(b) Fair Value of Financial Instrument Liabilities

At December 31, 2020 and 2019, the carrying values of financial instrument liabilities recorded in the Consolidated Balance
Sheets approximate their fair values, with the exception of the long-term debt related to senior notes and junior subordinated notes.
The fair value of the debt related to senior notes as of December 31, 2020 and 2019 was calculated based on discounted cash flow
models using observable market yields and contractual cash flows based on the aggregate principal amount outstanding. The fair
value of the debt related to junior subordinated notes as of December 31, 2020 and 2019 was calculated based on market data
valuation models using observable inputs based on the aggregate principal amount outstanding of the intercompany debt.

See Note 9 for further details related to the Company's debt, including the carrying values and fair values.

At December 31, 2020 and 2019, the Company’s debt related to the senior notes and junior subordinated notes was classified

as Level 2 in the fair value hierarchy.

Disclosures about the fair value of financial instrument liabilities exclude insurance contracts.

4. Investments

(a) Net Realized and Unrealized Investment Gains (Losses)

The components of the net realized and unrealized investment gains (losses) for the years ended December 31, 2020, 2019 and

2018 were as follows (in thousands of U.S. dollars):

Net realized investment gains (losses) on fixed maturities and short-term investments
Net realized investment gains on equities
Net realized investment (losses) gains on other invested assets
Net realized investment gains on funds held–directly managed (1)
Net realized investment gains (losses)
Change in net unrealized investment gains (losses) on fixed maturities and short-term
investments
Change in net unrealized investment gains on equities
Change in net unrealized investment gains (losses) on other invested assets
Change in net unrealized investment losses on funds held–directly managed (1)
Net other realized and unrealized investment (losses) gains
Change in net unrealized investment gains (losses)
Impairment loss on investments in real estate
Net realized and unrealized investment gains (losses)

2020

2018

2019
$ 24,828 $ 243,508 $ (224,887)
14,601
7,136
1,200
$ 15,930 $ 250,883 $ (201,950)

21,538
(30,436)

6,545
830
—

—

$ 219,946 $ 190,343 $ (150,926)
2,791
403,011
167,456
(25,607)
44,441
58,452
(6,484)
—
—
(1,334)
969
(1,346)
$ 444,508 $ 638,764 $ (181,560)
(6,122)
$
$ 454,319 $ 886,670 $ (389,632)

(6,119) $

(2,977) $

(1) The funds held–directly managed account was settled in 2018 upon commutation of the related Paris Re Reserve Agreement. See

also Note 7(a) for further details.

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(b) Net Investment Income

The components of net investment income for the years ended December 31, 2020, 2019 and 2018 were as follows (in

thousands of U.S. dollars):

Fixed maturities
Short-term investments and cash and cash equivalents
Other invested assets
Equities, funds held and other (1)
Funds held–directly managed (2)
Investment expenses

Net investment income

2020

2018

2019
$ 290,259 $ 379,939 $ 378,726
13,279
26,234
21,964
4,674

12,000
89,129
20,477
—

26,981
68,879
12,221
—

(51,197)

(28,956)
$ 360,668 $ 448,538 $ 415,921

(39,482)

(1) The Company generally earns investment income on funds held by reinsured companies based upon a predetermined interest
rate, either fixed contractually at the inception of the contract or based upon a recognized index (e.g. LIBOR). Interest rates
ranged from 0.1% to 6.5%, 0.1% to 5.1% and 0.1% to 7.4% for the years ended December 31, 2020, 2019 and 2018,
respectively.

(2) The funds held–directly managed account was settled in 2018 upon commutation of the related Paris Re Reserve Agreement. See

also Note 7(a) for further details.

At December 31, 2020 and 2019, approximately $209 million and $294 million, respectively, of cash and cash equivalents and

approximately $4,993 million and $4,025 million, respectively, of securities were deposited, pledged or held in escrow accounts in
favor of ceding companies and other counterparties or government authorities to comply with reinsurance contract provisions and
insurance laws.

(d) Receivable for Securities Sold and Payable for Securities Purchased

At December 31, 2020 and 2019, receivables for securities sold of $24 million and $31 million, respectively, were recorded

within Other assets. At December 31, 2020 and 2019, payables for securities purchased of $286 million and $169 million,
respectively, were recorded within Accounts payable, accrued expenses, and other in the Consolidated Balance Sheets.

(e) Variable Interest Entities

The Company holds variable interests in VIEs including certain limited liability companies or partnerships, trusts, fixed
maturity investments and asset-backed securities. The holdings in these VIEs are reported within Fixed maturities and Other
invested assets in the Company’s Consolidated Balance Sheets. The Company’s involvement in these entities is, for the most part,
passive in nature. The Company’s maximum exposure to loss with respect to these investments is limited to the amounts invested in
and advanced to the VIEs and any unfunded commitments (see Note 15(c)).

(f) Equity Method Investments

Investments accounted for under the equity method at December 31, 2020 and 2019 totaled $900 million and $866 million
respectively. At December 31, 2020 and 2019, the Company held a 36% shareholding in the privately held United Kingdom real
estate investment and development group, Almacantar Group Limited (Almacantar). The total carrying value of this investment
was $494 million and $483 million, at December 31, 2020 and 2019, respectively, and is included within Other invested assets in
the Consolidated Balance Sheets. The Company's other equity method investments are comprised of primarily of passive investment
interests focusing in the real estate sector.

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5. Derivatives

The Company’s objectives for holding or issuing derivatives are as follows:

Foreign Exchange Forward Contracts—The Company utilizes foreign exchange forward contracts as part of its overall

currency risk management and investment strategies.

Futures Contracts and Foreign Currency Option Contracts —The Company uses exchange traded treasury note futures
contracts to manage portfolio duration and equity futures to hedge certain investments. The Company utilizes foreign currency
option contracts to mitigate foreign currency risk.

Insurance-linked Securities—The Company enters into various derivatives for which the underlying risks reference parametric
weather risks and pandemic outbreaks, in addition to longevity total return swaps for which the underlying risks reference longevity
risks.

Total Return and Interest Rate Swaps—The Company enters into total return swaps referencing certain investments in Other

invested assets. The Company enters into interest rate swaps to mitigate the interest rate risk on certain of the total return swaps and
certain fixed maturity investments.

TBAs—The Company utilizes TBAs as part of its overall investment strategy and to enhance investment performance.

There were no derivatives designated as hedges for the years ended December 31, 2020 and 2019. The net fair values of
derivatives included in Other invested assets within the Company’s Consolidated Balance Sheets and the related net notional
exposures at December 31, 2020 and 2019 were as follows (in thousands of U.S. dollars):

December 31, 2020
Derivatives not designated as hedges

Foreign exchange forward contracts
Insurance-linked securities (1)
Total return swaps
Interest rate swaps (2)
Other

Total derivatives not designated as hedges

December 31, 2019
Derivatives not designated as hedges
Foreign exchange forward contracts
Foreign currency option contracts
Insurance-linked securities (1)
Total return swaps
Interest rate swaps (2)

Total derivatives not designated as hedges

Asset
derivatives
at fair value

Liability
derivatives
at fair value

Net derivatives

Fair value

Net notional
exposure

7,309 $

(10,698) $

(3,389) $ 3,843,436

3,074

797

—

(2,000)

(3,152)

1,074

(2,355)

18,850

31,580

(17,509)

419
11,599 $

—
(33,359) $

419
(21,760)

—

Asset
derivatives
at fair value

Liability
derivatives
at fair value

Net derivatives

Fair value

Net notional
exposure

4,363 $
266
2,728

1,448
—
8,805 $

(5,643) $
—
(3,871)

(1,280) $ 3,028,063
—
46,250

266
(1,143)

(2,962)
(12,378)
(24,854) $

(1,514)
(12,378)
(16,049)

31,641
—

(1) Insurance-linked securities include longevity swaps for which the notional amounts are not reflective of the overall potential

exposure of the swaps. The net notional exposure above includes the Company's best estimate of the present value of future
expected claims.

(2) The Company enters into interest rate swaps to mitigate notional exposures on certain total return swaps and certain fixed

maturities. The net notional exposure for interest rate swaps above relates to fixed maturities.

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The gains and losses in the Consolidated Statements of Operations for derivatives not designated as hedges for the years ended

December 31, 2020, 2019 and 2018 were as follows (in thousands of U.S. dollars):

Foreign exchange forward contracts

Total included in Net foreign exchange (losses) gains

Futures contracts

Insurance-linked securities

Total return swaps

Interest rate swaps

TBAs

Other

Total included in Net realized and unrealized investment gains (losses)

Total derivatives not designated as hedges

Offsetting of Derivatives

2020

2019

2018

(32,611) $

(41,171) $

(32,611) $

(41,171) $

— $

(9,952) $

(2,341)

(4,381)

(845)

—

(5,131)

(5,230)

45,143

11,043

6,134

—

2,332

(510)

1,376

—

463

(13,614)

—

(7,451) $

(19,100) $

5,895

(40,062) $

(60,271) $

51,038

The gross and net fair values of derivatives that are subject to offsetting in the Consolidated Balance Sheets at December 31,

2020 and 2019 were as follows (in thousands of U.S. dollars):

December 31, 2020

Total derivative assets

Total derivative liabilities

December 31, 2019

Total derivative assets

Total derivative liabilities

Gross
amounts
recognized (1)

Gross
amounts
offset in the
balance sheet

Net amounts of
assets/liabilities
presented in the
balance sheet

Gross amounts not offset
in the balance sheet

Financial
instruments

Cash collateral
received/
pledged

Net amount

11,599 $

(33,359) $

— $

11,599 $

— $

(26,853) $ (15,254)

(33,359) $

— $

11,503 $ (21,856)

8,805 $

(24,854) $

— $

8,805 $

— $

(19,537) $ (10,732)

(24,854) $

— $

2,977 $ (21,877)

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

place.

6. Goodwill and Intangible Assets

The Company’s goodwill related to the acquisitions of PartnerRe SA, Winterthur Re, Paris Re and Presidio and intangible
assets related to the acquisitions of Paris Re, Presidio, Aurigen and Claims Analytics at December 31, 2020, 2019 and 2018 were as
follows (in thousands of U.S. dollars):

Balance at December 31, 2017
Acquired during the year(1)
Intangible assets amortization

Balance at December 31, 2018

Foreign currency translation

Intangible assets amortization

Balance at December 31, 2019

Foreign currency translation
Intangible assets amortization

Balance at December 31, 2020

n/a: Not applicable

Goodwill

Definite-
lived intangible
assets

Indefinite-
lived intangible
assets

Total
intangible assets

456,380 $

150,679 $

9,555 $

160,234

—

n/a

4,138

(35,473)

—

n/a

4,138

(35,473)

456,380 $

119,344 $

9,555 $

128,899

—

n/a

(11,434)

—

n/a

(11,434)

456,380 $

107,983 $

9,555 $

117,538

—

n/a

119

(9,988)

—

n/a

119

(9,988)

456,380 $

98,114 $

9,555 $

107,669

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(1) In June 2018, the Company completed the acquisition for 100% of the assets in Claim Analytics Inc., a Canadian based provider
of predictive analytics solutions for the insurance industry. In relation to this acquisition, the Company recorded intangible
assets related to customer relationships of $4 million.

The gross carrying value and accumulated amortization of intangible assets included in the Consolidated Balance Sheets at

December 31, 2020 and 2019 were as follows (in thousands of U.S. dollars):

December 31, 2020

December 31, 2019

Gross
carrying
value

Accumulated
amortization

Net carrying
value

Gross
carrying
value

Accumulated
amortization

Net carrying
value

48,163 $
67,738
75,583
$ 191,484 $

(38,205) $
(47,867)
(7,298)
(93,370) $

9,958 $
19,871
68,285
98,114 $ 191,365 $

48,163 $
67,619
75,583

12,925
(35,238) $
25,200
(42,419)
(5,725)
69,858
(83,382) $ 107,983

9,555
$ 201,039 $

n/a

9,555
(93,370) $ 107,669 $ 200,920 $

9,555

n/a

9,555
(83,382) $ 117,538

Definite-lived intangible assets:

Renewal rights
Customer relationships
Life VOBA

Total definite-lived intangible assets
Indefinite-lived intangible assets:

Insurance licenses
Total intangible assets

n/a: Not applicable

Definite-lived intangible assets are amortized over a period of 10-13 years for renewal rights and customer relationships, and

100 years for life VOBA.

The allocation of the goodwill to the Company’s segments at December 31, 2020 and 2019 was as follows (in thousands of

U.S. dollars):

P&C segment
Specialty segment
Life and Health segment
Total

2020

2019

242,376 $
196,047
17,957
456,380 $

242,376
196,047
17,957
456,380

The estimated future amortization expense related to the Company’s definite-lived intangible assets is as follows (in thousands

of U.S. dollars):

Year
2021
2022
2023
2024
2025
Thereafter
Total

7. Non-life and Life and Health Reserves

(a) Non-life reserves

VOBA

Other definite-
lived intangible
assets

Total definite-
lived intangible
assets

1,486 $
2,478
2,272
2,296
2,070
57,683
68,285 $

7,349 $
6,423
5,641
4,960
4,367
1,089
29,829 $

8,835
8,901
7,913
7,256
6,437
58,772
98,114

Non-life reserves are categorized into three types of reserves: case reserves, ACRs and IBNR reserves. Case reserves represent
unpaid losses reported by the Company’s cedants and recorded by the Company. ACRs are established for particular circumstances
where, on the basis of individual loss reports, the Company estimates that the particular loss or collection of losses covered by a
treaty may be greater than those advised by the cedant. IBNR reserves represent a provision for claims that have been incurred but
not yet reported to the Company, as well as future loss development on losses already reported, in excess of the case reserves and
ACRs. See also Note 2(b).

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The Company’s gross liability for non-life reserves reported by cedants (case reserves) and those estimated by the Company

(ACRs and IBNR reserves) at December 31, 2020 and 2019 was as follows (in thousands of U.S. dollars):

Case reserves
ACRs
IBNR reserves
Non-life reserves

December 31, 2020

December 31, 2019

4,646,633 $
171,381
6,577,307
11,395,321 $

4,203,052
158,220
6,002,111
10,363,383

The reconciliation of the beginning and ending gross and net liability for non-life reserves for the years ended December 31,

2020, 2019 and 2018 was as follows (in thousands of U.S. dollars):

Gross liability at beginning of year

Reinsurance recoverable at beginning of year

Net liability at beginning of year
Net incurred losses related to: (1)(2)

Current year

Prior years

Net paid losses related to:

Current year

Prior years

Retroactive reinsurance recoverable (2)
Change in Paris Re reserve agreement (3)
Effects of foreign exchange rate changes and other

Net liability at end of year

Reinsurance recoverable at end of year

Gross liability at end of year

2020

2019

2018

$ 10,363,383 $ 9,895,376 $ 10,102,172

754,795

850,946

719,998

9,608,588

9,044,430

9,382,174

3,945,248

3,716,988

3,417,366

71,456

(56,848)

(248,719)

4,016,704

3,660,140

3,168,647

(459,718)

(439,285)

(336,584)

(2,772,886)

(2,651,385)

(2,585,403)

(3,232,604)

(3,090,670)

(2,921,987)

—

220,303

(81,013)

—

75,701

(397,493)

(186,911)

$ 10,612,991 $ 9,608,588 $ 9,044,430

782,330

754,795

850,946

$ 11,395,321 $ 10,363,383 $ 9,895,376

(1) Net incurred losses include favorable loss development of $3 million during the year ended December 31, 2019, which are

allocated to Corporate and Other as disclosed in Note 18. Non-life reserves allocated to Corporate and Other totaled $6 million
and $9 million at December 31, 2019 and 2018, respectively. There were no incurred losses or non-life reserves allocated to
Corporate and Other during 2020.

(2) In the fourth quarter of 2019, the Company entered into a loss portfolio transfer agreement transferring 100% of liabilities,
including profit commissions, related to its wholesale managing general agent portfolio. As a result of the transaction, the
Company recorded a reinsurance recoverable of $81 million and a related deferred gain of $14 million, which was included in
Accounts payable, accrued expenses and other in the Consolidated Balance Sheet at December 31, 2019. In the fourth quarter of
2020, the Company completed a business transfer to extinguish the remaining$70 million of non-life reserves and derecognized
the $70 million of related reinsurance recoverables. As a result, during 2020, the $14 million deferred gain was recognized
within Losses and loss expenses in the Consolidated Statement of Operations. At settlement, $64 million of invested assets were
transferred, and there was a corresponding decrease in Other reinsurance balances payable.

(3) The change in reserve agreement includes adverse development on Paris Re’s reserves which were guaranteed by Axa under the
reserve agreement. In 2018, this balance also includes the reduction of the guaranteed reserves following the commutation of the
agreement in the fourth quarter of 2018.

For the year ended December 31, 2020, the Company reported net unfavorable loss development for prior accident years
resulting from adverse loss emergence in the Specialty segment, which was partially offset by favorable loss emergence in the P&C
segment. The adverse loss emergence within the Specialty segment was across multiple accident years, predominantly from
property, engineering, multiline and aviation business. The favorable loss emergence within the P&C segment was primarily from
accident years 2015 and prior, mainly driven by the European casualty, motor and property business, which was partially offset by
adverse loss emergence in the U.S. and Asia property business.

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For the year ended December 31, 2019, the Company reported net favorable loss development for prior accident years

resulting from favorable loss emergence in the P&C segment, which was partially offset by adverse loss emergence for the Specialty
segment. The favorable loss emergence within the P&C segment was primarily from accident years 2014 and prior, mainly driven
by the European casualty and motor business, which was partially offset by adverse loss emergence in the U.S. casualty business.
The adverse loss emergence within the Specialty segment was across multiple accident years, predominantly from the engineering,
aviation and multiline business.

For the year ended December 31, 2018, the Company reported net favorable loss development for prior accident years
resulting from favorable loss emergence in both Non-life segments. The favorable loss emergence within the P&C segment was
across multiple accident years, mainly driven by the European casualty business. The favorable loss emergence within the Specialty
segment was across multiple accident years, predominantly from the financial risks and property marine energy business.

Paris Re Reserve Agreement

Following Paris Re’s acquisition of substantially all of the reinsurance operations of Colisée Re in 2006, Paris Re’s French

operating subsidiary (Paris Re France) entered into a reserve agreement (Reserve Agreement) whereby AXA and Colisée Re
guaranteed reserves in respect of Paris Re France and subsidiaries acquired in the acquisition. The Reserve Agreement related to
losses incurred prior to December 31, 2005. The reserve guarantee was conditioned upon, among other things, the guaranteed
business, including related ceded reinsurance, being managed by AXA Liabilities Managers, an affiliate of Colisée Re. At
December 31, 2017, the Company’s gross liability for non-life reserves included $426 million of guaranteed reserves, which were
settled prior to December 31, 2018 as a result of the commutation of the remaining reserves under the Reserve Agreement. As a
result of this commutation, a gain of $29 million was recorded in Other income within the Consolidated Statement of Operations
during the year ended December 31, 2018. As of December 31, 2020 and 2019, respectively, no balances related to the Paris Re
agreement remain.

Asbestos and Environmental Claims

The Company’s net non-life reserves at December 31, 2020 and 2019 included $43 million and $45 million, respectively,

related to asbestos and environmental claims. The gross liability for such claims at December 31, 2020 and 2019 was $50 million
and $51 million, respectively.

Ultimate loss estimates for such claims cannot be estimated using traditional reserving techniques and there are significant
uncertainties in estimating the Company’s potential losses for these claims. In view of the legal and tort environment that affect the
development of such claims, the uncertainties inherent in estimating asbestos and environmental claims are not likely to be resolved
in the near future. There can be no assurance that the reserves established by the Company will not be adversely affected by
development of other latent exposures, and further, there can be no assurance that the reserves established by the Company will be
adequate. The Company does, however, actively evaluate potential exposure to asbestos and environmental claims and establishes
additional reserves as appropriate. The Company believes that it has made a reasonable provision for these exposures and is
unaware of any specific issues that would materially affect its unpaid losses and loss expense reserves related to this exposure.

Non-life reserving methods

The reserving methods commonly employed by the Company are summarized as follows:

Chain Ladder (CL) Development Methods (Reported or Paid)

These methods use the underlying assumption that losses reported (paid) for each underwriting year at a particular
development stage follow a stable pattern. The CL development method assumes that on average, every underwriting year will
display the same percentage of ultimate liabilities reported by the Company’s cedants at 24 months after the inception of the
underwriting year. The percentages reported (paid) are established for each development stage after examining historical averages
from the loss development data. These are sometimes supplemented by external benchmark information. Ultimate liabilities are
estimated by multiplying the actual reported (paid) losses by the reciprocal of the assumed reported (paid) percentage. Reserves are
then calculated by subtracting paid claims from the estimated ultimate liabilities.

Expected Loss Ratio (ELR) Method

This method estimates ultimate losses for an underwriting year by applying an estimated loss ratio to the earned premium for
that underwriting year. Although the method is insensitive to actual reported or paid losses, it can often be useful at the early stages
of development when very few losses have been reported or paid, and the principal sources of information available to the Company
consist of information obtained during pricing and qualitative information supplied by the cedant. However, the lack of sensitivity to
reported or paid losses means that the method is usually inappropriate at later stages of development.

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Bornhuetter-Ferguson (B-F) Methods (Reported or Paid)

These methods aim to address the variability at early stages of development and incorporates external information such as
pricing. The B-F methods are more sensitive to reported and paid losses than the ELR method, and can be seen as a blend of the
ELR and CL development methods. Unreported (unpaid) claims are calculated using an expected reporting (payment) pattern and an
externally determined estimate of ultimate liabilities (usually determined by multiplying an a priori loss ratio with estimates of
premium volume). The accuracy of the a priori loss ratio is a critical assumption in this method. Usually a priori loss ratios are
initially determined on the basis of pricing information, but may also be adjusted to reflect other information that subsequently
emerges about underlying loss experience.

Loss Event Specific Method

The ultimate losses estimated under this method are derived from estimates of specific events based on reported claims, client

and broker discussions, review of potential exposures, market loss estimates, modeled analysis and other event specific criteria.

Method Weights

In determining the loss reserves, the Company often relies on a blend of the results from two or more methods (e.g., weighted

averages). The judgment as to which of the above method(s) is most appropriate for a particular underwriting year and reserving cell
could change over time as new information emerges regarding underlying loss activity and other data issues. Furthermore, as each
line is typically composed of several reserving cells, it is likely that the reserves for the line will be dependent on several reserving
methods. This is because reserves for a line are the result of aggregating the reserves for each constituent reserving cell and that a
different method could be selected for each reserving cell.

The principal reserving methods used for each of the Specialty segment and P&C segment were ELR, Reported/Paid B-F, and
Reported/Paid CL, with the exception of catastrophe risks within the P&C segment where the principal reserving methods used were
ELR based on exposure analysis and loss event specific methods.

(b) Life and Health Reserves

The reconciliation of the beginning and ending gross and net liability for life and health reserves for the years ended

December 31, 2020, 2019 and 2018 was as follows (in thousands of U.S. dollars):

Gross liability at beginning of period

Reinsurance recoverable at beginning of period

Net liability at beginning of period
Net incurred losses (1)
Net losses paid
Effects of foreign exchange rate changes and other

Net liability at end of period
Reinsurance recoverable at end of period

Gross liability at end of period

2020

2019

2018

$ 2,417,044 $ 2,198,080 $ 2,098,759

16,183

11,829

9,287

$ 2,400,861 $ 2,186,251 $ 2,089,472

1,318,196

1,263,016

1,024,608

(1,230,383)
179,893

(1,071,487)
23,081

(818,916)
(108,913)

$ 2,668,567 $ 2,400,861 $ 2,186,251
11,829

35,662

16,183

$ 2,704,229 $ 2,417,044 $ 2,198,080

(1) During 2020, certain life and health treaties in the European region were recaptured, resulting in total gains upon recapture of

$28 million, recorded as a reduction to net incurred losses.

Net incurred losses includes unfavorable prior years' loss development of $52 million during the year ended December 31,

2020 driven by the Company's disability business.

The Company used interest rate assumptions to estimate its liabilities for policy benefits for life and annuity contracts which

ranged from 0% to 11% at December 31, 2020 and 0% to 7% at December 31, 2019 and 2018.

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Life and health reserving methods

The reserving methods commonly employed by the Company are summarized as follows:

Mortality

The reserves for the short-term mortality/morbidity business consist of case reserves calculated at the treaty level based upon

cedant information. IBNR is calculated at the segment level using the ELR method described above for Non-life business.

The reserves for the traditional and limited payment long-duration contracts are established based upon accepted actuarial

valuation methods which require us to make certain assumptions regarding future claims and policy benefits and includes a
provision for adverse deviation. The provision for adverse deviation contemplates reasonable deviations from the best estimate
assumptions for the key risk elements relevant to the product being evaluated, including mortality, disability, critical illness,
expenses, and discount rates. The assumptions are locked in at contract inception and are subject to annual loss recognition testing
(LRT). LRT occurs at the product group level, based on the manner of acquiring, servicing and measuring profitability of the
reinsurance contracts. The LRT framework incorporates deferred acquisition cost (DAC) recoverability testing and involves
determining an LRT reserve by re-measuring the policy benefit liabilities using current best estimate actuarial assumptions and
current discount rates without any provisions for adverse deviation. If the aggregate LRT reserve is higher than the carrying amount
of future policy benefit liabilities, net of DAC and VOBA, for a particular product grouping then a loss recognition event occurs.
The DAC and VOBA asset balances for the given product grouping are first reduced, and if the balances are fully written off, the
reserves will be increased, such that the current best estimate assumptions become the new locked-in basis.

The reserves for the guaranteed minimum death benefit (GMDB) reinsurance business are established similar to provisions for
universal life contracts. Key actuarial assumptions for this business are mortality, lapses, interest rates, expected returns on cash and
bonds and stock market performance. For the latter parameter, a stochastic option pricing approach is used and the benefits used in
calculating the liabilities are based on the average benefits payable over a range of scenarios. The assumptions of investment
performance and volatility are consistent with expected future experience of the respective underlying funds available for
policyholder investment options. Recorded reserves for GMDB reflect management’s best estimate based upon actuarial indications.

Longevity

Reserves for the annuity portfolio of reinsurance contracts within the longevity book are established using the reserving

methodology discussed above for long-term traditional mortality.

Losses and loss expenses in the Consolidated Statements of Operations for the years ended December 31, 2020, 2019 and

2018 were comprised as follows (in thousands of U.S. dollars):

Non-life (1)
Life and Health
Losses and loss expenses

2020

2019
$ 4,016,704 $ 3,660,140 $ 3,168,647
1,024,608
$ 5,334,900 $ 4,923,156 $ 4,193,255

1,318,196

1,263,016

2018

(1) Net incurred losses include favorable loss development of $3 million during the year ended December 31, 2019, which are

allocated to Corporate and Other as disclosed in Note 18.

Non-life net incurred and paid losses and loss expense development

The net incurred and paid losses and loss expenses development by accident year for each of the years ended December 31,
2012 through 2020, and the total of IBNR plus expected development on reported claims included within the net incurred claims
amounts, as at each of the years ended December 31, 2012 through 2020, are presented in the tables below (in thousands of U.S.
dollars).

The information presented below for incurred and paid claims development for each of the years ended December 31, 2012

through 2019 and the average annual percentage payout of incurred claims by age, net of reinsurance, is presented as supplementary
information and is unaudited. The tables below reflect losses incurred and paid losses translated to U.S. dollars at the exchange rate
as of the balance sheet date whereas the Losses and loss expenses in the Consolidated Statement of Operations reflect losses
incurred at the average exchange rate for the period.

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NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - NON-LIFE

For the year ended December 31,

December 31, 2020

Total of IBNR plus
expected
development on
reported claims

2012

2013

2014

2015

2016

2017

2018

2019

2020

$ 2,639,688 $ 2,448,003 $ 2,290,439 $ 2,185,285 $ 2,153,160 $ 2,184,735 $ 2,161,359 $ 2,128,131 $ 2,113,301 $

2,878,960

2,701,251

2,524,503

2,471,199

2,438,378

2,410,942

2,407,964

2,389,223

2,832,489

2,613,300

2,502,796

2,471,459

2,484,045

2,476,974

2,455,964

2,884,189

2,593,622

2,488,546

2,504,538

2,505,549

2,481,206

2,913,005

2,679,891

2,620,822

2,635,472

2,644,764

2,955,964

2,937,200

2,894,231

2,881,721

3,025,845

3,157,015

3,158,785

3,438,573

3,666,589

3,964,240

$ 25,755,793 $

56,549

93,466

127,048

171,655

214,995

336,779

661,933

1,322,179

2,790,092

5,774,696

NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - NON-LIFE

For the year ended December 31,

2012

2013

2014

2015

2016

2017

2018

2019

2020

$ 282,336 $ 1,051,844 $ 1,435,654 $ 1,602,522 $ 1,706,226 $ 1,797,329 $ 1,846,856 $ 1,903,538 $ 1,924,585

243,125

1,295,766

1,647,638

1,849,033

1,979,137

2,072,228

2,138,888

2,173,004

302,881

1,311,827

1,616,215

1,825,493

1,967,077

2,076,264

2,154,230

302,359

1,216,114

1,615,865

1,837,345

2,007,020

2,109,694

322,009

1,363,347

1,721,704

1,997,281

2,125,590

385,968

1,501,428

1,952,096

2,240,013

258,601

1,430,969

2,010,369

376,937

1,578,528

Accident
year

2012

2013

2014

2015

2016

2017

2018

2019

2020

Total

Accident
year

2012

2013

2014

2015

2016

2017

2018

2019

2020

Total

445,338

$ 16,761,351

$ 8,994,442

1,242,482

$ 10,236,924

Net reserves for Accident Years and exposures included in the triangles

All outstanding liabilities before Accident Year 2012, net of reinsurance

Total outstanding liabilities for unpaid claims

AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - NON-LIFE

Years

Non-life

11%

38%

16%

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NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - PROPERTY

For the year ended December 31,

December 31, 2020

Total of IBNR plus
expected
development on
reported claims

2012

2013

2014

2015

2016

2017

2018

2019

2020

$ 669,251 $ 665,457 $ 585,528 $ 569,161 $ 553,571 $ 553,162 $ 541,206 $ 530,578 $ 529,800 $

688,562

583,828

550,859

535,390

531,092

520,552

518,273

517,995

517,561

471,863

450,396

448,016

444,502

442,768

441,020

591,817

548,716

523,677

516,138

510,688

506,222

726,247

684,070

637,316

617,028

613,810

1,016,229

1,066,376

982,359

951,418

854,166

899,055

886,662

797,247

848,801

1,183,875

$ 6,479,603 $

1,389

958

3,806

(1,802)

6,426

82,052

90,827

656,924

840,589

NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - PROPERTY

For the year ended December 31,

2012

2013

2014

2015

2016

2017

2018

2019

2020

$ 100,426 $ 358,758 $ 452,456 $ 486,598 $ 498,174 $ 507,557 $ 510,674 $ 518,029 $ 517,970

90,133

341,662

442,974

477,517

495,869

498,952

503,187

505,337

91,891

323,437

388,024

414,395

424,068

429,160

432,996

96,019

354,874

443,500

472,059

483,099

488,049

137,065

459,492

541,070

579,666

592,826

223,598

729,810

839,658

891,247

77,248

573,855

715,182

69,729

479,960

Accident
year

2012

2013

2014

2015

2016

2017

2018

2019

2020

Total

Accident
year

2012

2013

2014

2015

2016

2017

2018

2019

2020

Total

108,876

$ 4,732,443

$ 1,747,160

96,511

$ 1,843,671

Net reserves for Accident Years and exposures included in the triangles

All outstanding liabilities before Accident Year 2012, net of reinsurance

Total outstanding liabilities for unpaid claims

AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - PROPERTY

Years

Property

15%

52%

15%

—%

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NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - CASUALTY

For the year ended December 31,

December 31, 2020

Total of IBNR plus
expected
development on
reported claims

2012

2013

2014

2015

2016

2017

2018

2019

2020

$ 687,962 $ 673,952 $ 645,961 $ 606,043 $ 588,811 $ 597,170 $ 592,669 $ 577,494 $ 569,594 $

800,809

796,525

747,617

729,592

725,500

721,980

719,484

705,107

901,424

877,191

857,330

863,051

879,547

873,227

857,663

899,355

840,261

816,250

858,788

861,603

855,377

849,717

801,939

822,539

850,527

856,372

761,089

729,564

757,962

767,640

941,900

957,888

975,851

1,214,328

1,223,746

41,729

77,368

103,508

147,031

174,156

216,810

418,539

745,117

1,278,149

1,073,385

$ 8,089,499 $

2,997,643

NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - CASUALTY

For the year ended December 31,

2012

2013

2014

2015

2016

2017

2018

2019

2020

$ 51,015 $ 134,416 $ 203,970 $ 276,902 $ 333,006 $ 391,406 $ 422,362 $ 449,854 $ 467,395

50,172

158,781

266,697

348,233

418,556

480,167

521,355

547,056

71,742

209,570

313,465

413,742

501,473

573,308

637,432

67,091

187,339

300,083

398,324

501,468

575,490

33,049

163,317

263,687

380,668

468,089

61,811

180,400

292,946

399,268

62,403

238,134

375,961

89,228

294,178

Accident
year

2012

2013

2014

2015

2016

2017

2018

2019

2020

Total

Accident
year

2012

2013

2014

2015

2016

2017

2018

2019

2020

Total

97,584

$ 3,862,453

$ 4,227,046

1,059,637

$ 5,286,683

Net reserves for Accident Years and exposures included in the triangles

All outstanding liabilities before Accident Year 2012, net of reinsurance

Total outstanding liabilities for unpaid claims

AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - CASUALTY

Years

Casualty

16%

13%

12%

11%

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NET INCURRED LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - SPECIALTY

For the year ended December 31,

December 31, 2020

Total of IBNR plus
expected
development on
reported claims

2012

2013

2014

2015

2016

2017

2018

2019

2020

$ 1,282,475 $ 1,108,594 $ 1,058,950 $ 1,010,081 $ 1,010,778 $ 1,034,403 $ 1,027,484 $ 1,020,059 $ 1,013,907 $

1,389,589

1,320,898

1,226,027

1,206,217

1,181,786

1,168,410

1,170,207

1,166,121

1,413,504

1,264,246

1,195,070

1,160,392

1,159,996

1,160,979

1,157,281

1,393,017

1,204,645

1,148,619

1,129,612

1,133,258

1,119,607

1,337,041

1,193,882

1,160,967

1,167,917

1,174,582

1,178,646

1,141,260

1,153,910

1,162,663

1,229,779

1,300,072

1,296,272

1,426,998

1,594,042

1,502,216

$ 11,186,691 $

13,431

16,089

22,582

20,818

42,641

113,543

161,342

486,235

1,059,783

1,936,464

NET PAID LOSSES AND LOSS EXPENSES DEVELOPMENT TABLE - SPECIALTY

For the year ended December 31,

2012

2013

2014

2015

2016

2017

2018

2019

2020

$ 130,895 $ 558,670 $ 779,228 $ 839,022 $ 875,046 $ 898,366 $ 913,820 $ 935,655 $ 939,220

102,820

795,323

937,967

1,023,283

1,064,712

1,093,109

1,114,346

1,120,611

139,248

778,820

914,726

997,356

1,041,536

1,073,796

1,083,802

139,249

673,901

872,282

966,962

1,022,453

1,046,155

151,895

740,538

916,947

1,036,947

1,064,675

100,559

591,218

819,492

949,498

118,950

618,980

919,226

217,980

804,390

Accident
year

2012

2013

2014

2015

2016

2017

2018

2019

2020

Total

Accident
year

2012

2013

2014

2015

2016

2017

2018

2019

2020

Total

Net reserves for Accident Years and exposures included in the triangles

All outstanding liabilities before Accident Year 2012, net of reinsurance

Total outstanding liabilities for unpaid claims

AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE - SPECIALTY

Years

Specialty

12%

46%

17%

—%

The Company is predominantly a reinsurer of primary insurers and does not have access to claim frequency information held

by our cedants due to the majority of the Company’s business being written on a proportional basis. As such, the Company
considers it impracticable to disclose information on the frequency of claims.

As disclosed in the notes to the consolidated financial statements for the year ended December 31, 2016, the Company
concluded that it was impracticable to provide net incurred and paid losses and loss expenses development data for 10 years. As a
result, the Company provided 5 years of data in 2016 and includes an additional year of data for each subsequent year such that by
2021 a full 10 years of data will be disclosed.

126

238,878

$ 8,166,455

$ 3,020,236

86,334

$ 3,106,570

Table of Contents

The reconciliation of the net incurred and paid claims development information above to the Non-life reserves in the

Consolidated Balance Sheet at December 31, 2020 was as follows (in thousands of U.S. dollars):

Total outstanding liability for unpaid claims

Property
Casualty
Specialty

Total outstanding liabilities for unpaid claims

Unallocated loss expenses
U.S. health net reserves (1)
Other

Total other liabilities
Net liability at end of year

Reinsurance recoverable on paid and unpaid claims

Property
Casualty
Specialty

Reinsurance recoverable at end of year
Gross liability at end of year

December 31, 2020

$
$

1,843,671
5,286,683
3,106,570
10,236,924
186,523
188,879
665
376,067
10,612,991

327,935
166,494
287,901
782,330
11,395,321

(1) U.S. health business is not meaningful to include in the development tables as the estimated average duration of the health

reserves is less than one year and substantially all claims are expected to be paid within two years, based on historical payout
patterns.

8. Reinsurance

(a) Reinsurance Recoverable on Paid and Unpaid Losses

The Company uses retrocessional agreements to reduce its exposure to risk of loss on reinsurance assumed. These agreements

provide for recovery from retrocessionaires of a portion of losses and loss expenses. The Company remains liable to its cedants to
the extent that the retrocessionaires do not meet their obligations under these agreements, and therefore the Company evaluates the
financial condition of its reinsurers and monitors concentration of credit risk on an ongoing basis. The Company actively manages
its reinsurance exposures by generally selecting retrocessionaires that have a credit rating of A- or higher. In certain cases where an
otherwise suitable retrocessionaire has a credit rating lower than A-, the Company generally requires the posting of collateral,
including escrow funds and letters of credit, as a condition to its entering into a retrocession agreement.

The Company adopted updated accounting guidance on the recognition of credit losses effective January 1, 2020. In assessing

an allowance for reinsurance recoverable balances, the Company considers historical information, financial strength and credit
ratings of reinsurers, collateralization amounts and the remaining expected life of reinsurance recoverable balances to determine the
appropriateness of the allowance. Historically, the Company has not experienced material credit losses from retrocessional
agreements. In assessing future default for reinsurance recoverable balances, the Company evaluates the valuation allowance under
the probability of default and loss given default method and utilizes counterparty credit ratings from major rating agencies, as well
as assessing the current market conditions and reasonable and supportable forecasts for the likelihood of default. As a result of the
adoption and at December 31, 2020, the Company recorded an allowance for credit losses of $3 million on its reinsurance
recoverable balance. This compared to no allowance for its reinsurance recoverable balance at December 31, 2019.

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(b) Ceded Reinsurance

Net premiums written, net premiums earned and losses and loss expenses are reported net of reinsurance in the Company’s

Consolidated Statements of Operations. Assumed, ceded and net amounts for the years ended December 31, 2020, 2019 and 2018
were as follows (in thousands of U.S. dollars):

2020
Non-life
Life and Health

Assumed

Non-life
Life and Health

Ceded

Non-life
Life and Health

Net

2019
Non-life (1)
Life and Health

Assumed

Non-life (1)
Life and Health

Ceded

Non-life (1)
Life and Health

Net

2018
Non-life
Life and Health

Assumed

Non-life
Life and Health

Ceded

Non-life
Life and Health

Net

Premiums
Written

Premiums
Earned

Losses and Loss
Expenses

5,376,703 $
1,499,222
6,875,925 $

5,571,201 $
1,505,819
7,077,020 $

4,358,975
1,344,117
5,703,092

550,784 $
24,283
575,067 $

516,672 $
23,522
540,194 $

342,271
25,921
368,192

4,825,919 $
1,474,939
6,300,858 $

5,054,529 $
1,482,297
6,536,826 $

4,016,704
1,318,196
5,334,900

Premiums
Written

Premiums
Earned

Losses and Loss
Expenses

5,792,542 $
1,492,778
7,285,320 $

5,433,357 $
1,489,721
6,923,078 $

3,879,242
1,277,684
5,156,926

353,735 $
22,527
376,262 $

375,301 $
22,559
397,860 $

219,102
14,668
233,770

5,438,807 $
1,470,251
6,909,058 $

5,058,056 $
1,467,162
6,525,218 $

3,660,140
1,263,016
4,923,156

Premiums
Written

Premiums
Earned

Losses and Loss
Expenses

5,064,780 $
1,235,149
6,299,929 $

4,751,958 $
1,235,973
5,987,931 $

3,566,201
1,035,363
4,601,564

472,498 $
24,067
496,565 $

450,096 $
24,025
474,121 $

397,554
10,755
408,309

4,592,282 $
1,211,082
5,803,364 $

4,301,862 $
1,211,948
5,513,810 $

3,168,647
1,024,608
4,193,255

(1) Non-life Losses and loss expenses include amounts allocated to Corporate and Other as disclosed in Note 18.

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9. Debt

The debt outstanding related to senior notes and junior subordinated notes and the carrying value recorded in the Consolidated

Balance Sheets at December 31, 2020 and 2019 was comprised as follows (in thousands):

Issuer

Debt related to senior notes

PartnerRe Finance B LLC

PartnerRe Ireland Finance DAC

Debt related to junior subordinated notes

Related
Maturity Date

Commitment

Carrying
Value

Fair Value

Carrying
Value

Fair Value

December 31, 2020

December 31, 2019

Due 2029

Due 2026

$ 500,000 $ 496,168 $ 586,057 $ 495,614 $ 535,309

€ 750,000

914,223

985,352

832,351

871,088

$ 1,410,391 $ 1,571,409 $ 1,327,965 $ 1,406,397

PartnerRe Finance B LLC

PartnerRe Finance II Inc.

Due 2050

Due 2066

$ 500,000 $ 494,251 $ 523,685 $

— $

—

62,484

70,089

61,013

70,089

55,866

Debt

$ 564,340 $ 584,698 $ 70,089 $ 55,866

$ 1,974,731 $ 2,156,107 $ 1,398,054 $ 1,462,263

PartnerRe Finance B LLC and PartnerRe Finance II Inc. (collectively, U.S. finance entities) were utilized to issue U.S. dollar

denominated debt while PartnerRe Ireland Finance DAC (Irish finance entity) was formed in order to issue Euro denominated senior
notes.

The U.S. finance entities are wholly-owned by PartnerRe U.S. Corporation, a holding company indirectly 100% owned by the
Company. The proceeds received by the U.S. finance entities upon issuance of debt were provided to PartnerRe U.S. Corporation in
exchange for notes receivable for the same principal and interest terms as the related debt issued externally. The Company
determined that the U.S. entities were VIEs; however, the Company was not the primary beneficiary and, as a result, did not
consolidate the U.S. finance entities. The intercompany notes payable by PartnerRe U.S. Corporation to the U.S. finance entities are
recorded within Debt in the Consolidated Balance Sheets and the related interest as Interest expense in the Consolidated Statements
of Operations.

The Irish finance entity is wholly-owned by PartnerRe Holdings Europe Limited, a wholly owned subsidiary of the Company.

The proceeds received by the Irish finance entity upon issuance of debt were provided to the Company in exchange for notes
receivable, which are eliminated on consolidation, together with the related interest. The Company determined that PartnerRe
Ireland Finance DAC is a VIE and the Company is the primary beneficiary. As a result, the debt issued externally has been reflected
as Debt in the Consolidated Balance Sheets and the related interest as Interest expense in the Consolidated Statements of Operations.

Debt related to senior notes

In March 2010, PartnerRe Finance B LLC issued $500 million aggregate principal amount of 5.500% senior notes due June 1,
2020 with the option to redeem, in whole or in part, at any time. PartnerRe U.S. Corporation agreed to pay the related 5.500% note
payable on the same terms to PartnerRe Finance B LLC. On July 19, 2019, the Company early redeemed these senior notes and
settled the related intercompany note, with an aggregate principle of $500 million for a make-whole redemption price. As a result,
the Company recorded a Loss on redemption of debt of $15 million in the Consolidated Statement of Operations during 2019.

In June 2019, PartnerRe Finance B LLC issued $500 million aggregate principal amount of 3.700% senior notes at a price of

99.783% of the principal amount. The net proceeds of the issuance, after consideration of the offering discount and underwriting
expenses and commissions, totaled $496 million. These senior notes may be redeemed at the option of the issuer, in whole or in
part, at any time, with early redemption requiring the payment of a make-whole premium. Early redemption prior to June 19, 2022
is subject to the Bermuda Monetary Authority's approval. Commencing on January 2, 2020, interest on these notes is payable semi-
annually at an annual fixed rate of 3.700%. Unless previously redeemed, the notes mature on July 2, 2029. PartnerRe U.S.
Corporation has agreed to pay a related 3.700% note payable to PartnerRe Finance B LLC for any unpaid principal amount on July
2, 2029. These senior notes are ranked as senior unsecured obligations of PartnerRe Finance B LLC and the Company has fully and
unconditionally guaranteed all obligations of PartnerRe Finance B LLC related to these senior notes. The Company’s obligations
under this guarantee are senior and unsecured and rank equally with all other senior unsecured indebtedness. The proceeds from this
issuance were used to fully redeem the senior notes due 2020 on July 19, 2019.

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Table of Contents

In September 2016, PartnerRe Ireland Finance DAC issued €750 million aggregate principal amount of 1.250% senior notes at

a price of 99.144% of the principal amount, which are listed in the main securities market of the Irish Stock Exchange. Interest is
payable annually commencing on September 15, 2017. These senior notes may be redeemed at the option of the issuer, in whole or
in part, at any time. Early redemption prior to September 15, 2021 is subject to the Bermuda Monetary Authority's approval. Unless
previously redeemed, the notes mature on September 15, 2026. These senior notes are ranked as senior unsecured obligations of
PartnerRe Ireland Finance DAC. The Company has fully and unconditionally guaranteed all obligations of PartnerRe Ireland
Finance DAC under these senior notes. The Company’s obligations under this guarantee are senior and unsecured and rank equally
with all other senior unsecured indebtedness.

Debt related to junior subordinated notes

In November 2006, PartnerRe Finance II Inc. issued Fixed-to-Floating Rate Junior Subordinated CENts with a principal
amount of $250 million and on March 13, 2009, purchased and retired $187 million of this principal amount. On June 5, 2019, an
additional $1 million of the principal amount was purchased and retired. As a result, the remaining aggregate principal amount of
the CENts as at December 31, 2020 and 2019 was $62 million. In November 2006, PartnerRe U.S. Corporation issued a Fixed-to-
Floating Rate promissory note, with a principal amount of $258 million to PartnerRe Finance II Inc. due December 1, 2066. In
March 2009, $187 million of the principal amount was extinguished, with an additional $1 million of the principal amount
extinguished in June 2019. As a result, the remaining principal amount of the intercompany promissory note as at December 31,
2020 and 2019, which is included in Debt in the Consolidated Balance Sheets, was $70 million.

The CENts have been redeemable at the option of the issuer, in whole or in part, since December 1, 2016 and are ranked as

junior subordinated unsecured obligations of PartnerRe Finance II Inc. The Company has fully and unconditionally guaranteed on a
subordinated basis all obligations of PartnerRe Finance II Inc. under the CENts. The Company’s obligations under this guarantee
are unsecured and rank junior in priority of payments to the Company’s senior notes.

Interest on both the CENts and the promissory note was payable semi-annually through to December 1, 2016 at an annual
fixed rate of 6.440% and payable quarterly thereafter until maturity at an annual rate of 3-month LIBOR plus a margin equal to
2.325%, reset quarterly. Since December 1, 2016, PartnerRe Finance II Inc. has had the right to defer one or more interest payments
for up to ten years to December 1, 2026.

In September 2020, PartnerRe Finance B LLC issued $500 million aggregate principal amount of 4.500% fixed-rate reset

junior subordinated notes at par. The net proceeds of the issuance, after consideration of the underwriting expenses, commissions
and other expenses, totaled $494 million. Commencing on April 1, 2021, interest on these notes is payable semi-annually at an
annual fixed rate of 4.500% until the first reset date on October 1, 2030. From the first reset date, and resetting every five years
thereafter, the notes will bear interest at an annual rate equal to the five-year treasury rate plus 3.815%. These junior subordinated
notes may be redeemed at the option of the issuer, in whole or in part, at any time, with early redemption outside of a par call period
requiring the payment of a make-whole premium. Par call periods occur between April 1 and October 1 in each year in which the
interest rate resets. Early redemption prior to October 1, 2025 is subject to the Bermuda Monetary Authority's approval. Unless
previously redeemed, the notes mature on October 1, 2050. These notes are ranked as unsecured junior subordinated obligations,
and will rank junior in right of payment to all outstanding and future senior indebtedness of PartnerRe Finance B LLC and the
Company has fully and unconditionally guaranteed all obligations of PartnerRe Finance B LLC related to these junior subordinated
notes. The Company’s obligations under this guarantee are unsecured junior subordinated obligations and rank junior in right of
payment to all outstanding and future senior indebtedness of the Company, and equally in right of payment with all future unsecured
indebtedness that is by its terms equal in right of payment to the junior subordinated notes.

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10. Shareholders’ Equity

Authorized Shares

At December 31, 2020 and 2019, the total authorized share capital (common and preferred) of the Company was $200 million.

Common Shares

At December 31, 2020 and 2019, 100 million authorized and issued Class A common shares of $0.00000001 par value each

were owned by EXOR Nederland N.V.

Redeemable Preferred Shares

At December 31, 2020, the Company's issued and outstanding redeemable preferred shares, each with a par value of $1.00 per

share, were as follows (in millions of U.S. dollars, except number of shares and percentage amounts):

Date of issuance

Number of preferred shares outstanding

Annual dividend rate
Underwriting discounts and commissions (1)

Aggregate liquidation value, at $25 per share

Series G

Series H

Series I

Total

May 2016

6,415,264

11,753,798

7,320,574

25,489,636

6.5 %

5.4

160.4

7.25 %

9.5

293.8

5.875 %

6.4

183.0

21.3

637.2

(1) Underwriting discounts and commissions represent the original amounts paid to issue Series D, E and F shares. These amounts

were reallocated on a pro-rata basis between the previously issued and the newly issued shares as a result of the share
exchange in May 2016 for $nil consideration described below.

At December 31, 2019, the Company's issued and outstanding redeemable preferred shares, each with a par value of $1.00 per

share, also included Series F preferred shares and totaled 28,169,062.

Following the acquisition by EXOR N.V. (subsequently renamed EXOR Nederland N.V.) in 2016, the Company launched an

exchange offer whereby participating preferred shareholders could exchange any or all existing preferred shares for newly issued
preferred shares reflecting, subject to certain exceptions, an extended call date of the fifth anniversary from the date of issuance, and
a restriction on payment of dividends on common shares declared with respect to any fiscal quarter to an amount not exceeding 67%
of net income during such fiscal quarter until December 31, 2020, when the restriction expired. As a result of the exchange offer, the
Company cancelled the Series D, E and F preferred shares tendered in the exchange offer. Non-tendered preferred shares not
exchanged and the new Series G, H and I preferred shares remained outstanding and continued to be listed on the NYSE. The terms
of the newly issued preferred shares would otherwise remain identical in all material respects to the Company’s existing preferred
shares, which are described below.

The redemption price of all preferred shares is $25 per share plus accrued and unpaid dividends. In the event of liquidation of

the Company, the preferred shares rank on parity with each other, but rank senior to the common shares, and the holders of the
preferred shares would receive a distribution of $25 per share. In addition, upon liquidation, non-cumulative Series I preferred
shares would receive any declared but unpaid dividends while the cumulative Series G and H preferred shares would receive any
accrued but unpaid dividends.

On October 22, 2020, the Company redeemed 2,679,426 Series F preferred shares at $25 per share for an aggregate liquidation

value of $67 million. In addition, unpaid preferred dividends accrued to the redemption date totaling $1 million were paid. In
connection with the redemption, the Company recognized a loss of $2 million related to the deferred issuance costs paid upon
issuance which were included in Additional paid-in capital related to the Series F preferred shares. There was no additional gain or
loss on redemption to recognize as the redemption price and the initial consideration received on the issue of preferred shares were
both $25 per share. The loss of $2 million was recognized as a deemed preferred dividend in retained earnings and in determining
the Net income attributable to common shareholder.

The Company may redeem each of the Series G, H and I preferred shares on or after May 1, 2021.

Dividends on the Series I preferred shares are non-cumulative and are payable quarterly. Dividends on the Series G and H

preferred shares are cumulative from the date of issuance and are payable quarterly in arrears.

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11. Dividend Restrictions and Statutory Requirements

The Company’s ability to pay common and preferred shareholders’ dividends and its corporate expenses is dependent mainly

on cash dividends from PartnerRe Bermuda, PartnerRe Europe, PartnerRe U.S. and PartnerRe Asia (collectively, the reinsurance
subsidiaries), which are the Company’s most significant subsidiaries. The payment of such dividends by the reinsurance subsidiaries
to the Company is limited under Bermuda, Irish and Singapore laws and certain statutes of various U.S. states in which PartnerRe
U.S. is domiciled. The restrictions are generally based on net income and/or certain levels of surplus as determined in accordance
with the relevant statutory accounting practices. In addition, in accordance with the terms of the merger agreement between the
Company and EXOR N.V., subsequent to preferred share exchange (see Note 10), the Company's payment of dividends on common
shares declared with respect to any fiscal quarter was restricted to an amount not exceeding 67% of net income per fiscal quarter
until December 31, 2020. If the Company did not make aggregate distributions of all of the distributable amounts during any fiscal
quarter, such remaining amounts would carryover to be available for dividends in subsequent fiscal quarters, regardless of the
Company’s Net income or loss during such subsequent fiscal quarters. This restriction expired on December 31, 2020. At
December 31, 2020, given the Company complied with its Bermuda solvency requirements, there were no other restrictions on the
Company’s ability to pay common and preferred shareholders’ dividends from its retained earnings, except for the reinsurance
subsidiaries’ dividend restrictions described below.

The reinsurance subsidiaries are required to file annual statements with insurance regulatory authorities prepared on an
accounting basis prescribed or permitted by such authorities (statutory basis), maintain minimum levels of solvency and liquidity
and comply with risk-based capital requirements and licensing rules. At December 31, 2020, the reinsurance subsidiaries’ solvency,
liquidity and risk-based capital amounts were in excess of the minimum levels required. The typical adjustments to insurance
statutory basis amounts to convert to U.S. GAAP include the elimination of certain statutory reserves, deferral of certain acquisition
costs, recognition of goodwill, intangible assets and deferred income taxes that are limited on a statutory basis, valuation of bonds at
fair value and presentation of ceded reinsurance balances gross of assumed balances.

PartnerRe Bermuda may declare dividends subject to it continuing to meet its minimum solvency and capital requirements,
which are to hold statutory capital and surplus equal to or exceeding the Target Capital Level, which is equivalent to 120% of the
Enhanced Capital Requirement (ECR). The ECR is calculated with reference to the Bermuda Solvency Capital Requirement model,
which is a risk-based capital model. At December 31, 2020, the maximum dividend that PartnerRe Bermuda could pay without prior
regulatory approval was approximately $1,226 million. The reporting deadline for the annual submission is April 30, 2021.

PartnerRe Europe is subject to the Solvency II European Directive (Solvency II Regulations). The Solvency II Regulations

relate to the solvency standards applicable to insurers and reinsurers and lay down, at the level of PartnerRe Europe, the minimum
amounts of financial resources required in order to cover the risks to which it is exposed and the principles that should guide its
overall risk management and reporting. PartnerRe Europe may declare dividends subject to it continuing to meet its Solvency II
requirements, which are to hold available capital, calculated on a Solvency II balance sheet basis, in excess of the solvency capital
requirement (SCR). The maximum dividend is limited to “profits available for distribution”, which consist of accumulated realized
profits less accumulated realized losses. The reporting deadline for the annual Solvency II submission is April 8, 2021.

PartnerRe U.S. may declare dividends subject to it continuing to meet its minimum solvency and capital requirements and is

generally limited to paying dividends from earned surplus. The maximum dividend that can be declared and paid without prior
approval is limited, to the lesser of adjusted net investment income or 10% of its total statutory capital and surplus as of the most
recently filed annual statement. The reporting deadline for the annual filing is March 1, 2021.

PartnerRe Asia may declare dividends from unappropriated profits subject to meeting the capital requirements, as laid out by
the Monetary Authority of Singapore. As a licensed reinsurer, PartnerRe Asia is required to maintain minimum capital of SGD25
million. In addition, PartnerRe Asia is required to establish and maintain separate insurance funds for each class of business that it
writes, for both Singapore and offshore policies. The solvency requirement in respect of each insurance fund shall at all times be not
less than the total risk requirement of the fund (determined by reference to three components being insurance risks, asset portfolio
risks and asset concentration risks) and above 120% of the total risk requirement on a Company basis. The declaration of a dividend
by PartnerRe Asia is subject to conditions and requirements being met as specified under the Companies Act and the Insurance Act
and its associated regulations. The filing date for the annual submission is March 31, 2021.

The statutory financial statements and returns of the Company’s reinsurance subsidiaries as at, and for the year ended,
December 31, 2020 are due to be submitted to the relevant regulatory authorities later in 2021, with different filing dates in each
jurisdiction. In certain jurisdictions, the statutory financial statements and returns are subject to the review and final approval of the
relevant regulatory authorities. As a result, the comparative figures in the tables below reflect final figures submitted to regulatory
authorities for 2019 and 2018.

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The statutory net income (loss) of PartnerRe Bermuda, PartnerRe Europe, PartnerRe U.S. and PartnerRe Asia for the years

ended December 31, 2020, 2019 and 2018 was as follows (in millions of U.S. dollars):

PartnerRe Bermuda

PartnerRe Europe

PartnerRe U.S.

PartnerRe Asia

2020

2019

2018

(45) $

863 $

138

237 $

188 $

28 $

(106) $

(197)

(6) $

17 $

(40)

The required and actual statutory capital and surplus of PartnerRe Bermuda, PartnerRe Europe, PartnerRe U.S. and PartnerRe

Asia at December 31, 2020 and 2019 was as follows (in millions of U.S. dollars):

Required statutory capital and surplus
Actual statutory capital and surplus

$ 2,386 $ 2,249 $ 1,618 $ 1,535 $ 1,080 $
911 $
$ 5,072 $ 4,903 $ 2,417 $ 2,218 $ 1,169 $ 1,080 $

47 $
249 $

53
211

PartnerRe Bermuda (1)

PartnerRe Europe

PartnerRe U.S.

PartnerRe Asia

2020

2019

2020

2019

2020

2019

2020

2019

(1) Required statutory capital and surplus is calculated at the Target Capital Level

In addition to the required statutory capital and surplus requirements for the reinsurance subsidiaries in the table above, the

Company is required to assess its solvency capital needs both at a Group and subsidiary level. The Company’s capital requirements
determine the amount of capital available to be declared as dividends to its shareholders. As Group Supervisor, the Bermuda
Monetary Authority is tasked with assessing the financial condition of the Group and coordinates the dissemination of information
to other relevant authorities for the purpose of assisting in their regulatory functions and the enforcement of regulatory action
against the Company or any of its subsidiaries, including the power to impose restrictions on the ability of the relevant subsidiaries
to declare dividends to the Company, and the ability of the Company to pay dividends to shareholders. In addition, the Company is
required to maintain the Group ECR imposed by the BMA under Bermuda law.

12. Taxation

The Company and its Bermuda domiciled subsidiaries are not subject to Bermuda income or capital gains tax under current
Bermuda law. In the event that there is a change in current law such that taxes on income or capital gains are imposed, the Company
and its Bermuda domiciled subsidiaries would be exempt from such tax until March 2035 pursuant to the Bermuda Exempted
Undertakings Tax Protection Act of 1966.

The Company has subsidiaries and branches that operate in various other jurisdictions around the world that are subject to tax

in the jurisdictions in which they operate. The significant jurisdictions in which the Company’s subsidiaries and branches are subject
to tax are Hong Kong, Canada, France, Ireland, Singapore, Switzerland and the U.S.

Income tax returns are open for examination for the tax years 2015-2020 in Hong Kong, 2016-2020 in Canada and Ireland,

2013-2020 in the U.S., 2017-2020 in Singapore, 2019-2020 in Switzerland, and 2018-2020 in France. As a global organization, the
Company may be subject to a variety of transfer pricing or permanent establishment challenges by taxing authorities in various
jurisdictions. While management believes that adequate provision has been made in the Consolidated Financial Statements for any
potential assessments that may result from tax examinations for all open tax years, the completion of tax examinations for open
years may result in changes to the amounts recognized in the Consolidated Financial Statements.

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Income tax (benefit) expense for the years ended December 31, 2020, 2019 and 2018 was as follows (in thousands of U.S.

dollars):

Current income tax (benefit) expense
U.S.
Non U.S.
Total current income tax (benefit) expense
Deferred income tax expense (benefit)
U.S.
Non U.S.
Total deferred income tax expense (benefit)
Unrecognized tax expense (benefit)
U.S.
Non U.S.
Total unrecognized tax expense (benefit)
Total income tax (benefit) expense
U.S.
Non U.S.
Total income tax (benefit) expense

2020

2019

2018

(97,155) $
44,764
(52,391) $

12,899 $
64,069
76,968 $

(6,872)
33,887
27,015

60,932 $
(25,560)
35,372 $

(25,850) $
4,268
(21,582) $

(40,318)
3,256
(37,062)

— $

3,928
3,928 $

— $
(2,850)
(2,850) $

—
1,113
1,113

(36,223) $
23,132
(13,091) $

(12,951) $
65,487
52,536 $

(47,190)
38,256
(8,934)

Income (loss) before taxes attributable to the Company’s domestic and foreign operations and a reconciliation of the actual

income tax rate to the amount computed by applying the effective tax rate of 0% under Bermuda (the Company’s domicile) law to
income (loss) before taxes was as follows for the years ended December 31, 2020, 2019 and 2018 (in thousands of U.S. dollars):

Domestic (Bermuda)
Foreign
Income (loss) before taxes

Reconciliation of effective tax rate (% of income (loss) before taxes)
Expected tax rate

Foreign taxes at local expected tax rates

Impact of foreign exchange gains or losses

Unrecognized tax expense (benefit)

Tax-exempt income and expenses not deductible

Foreign branch tax

Valuation allowance

Outside basis difference in subsidiary

Other

Actual tax rate

2020

2019

3,894 $ 715,912 $

237,204

273,372

$ 241,098 $ 989,284 $

2018
33,759
(128,687)
(94,928)

0.0 %

15.5

(8.1)

1.6

(1.4)
(3.3)
3.4

—

(13.1)

(5.4) %

6.5

(0.5)

0.2

(0.6)
(1.2)
0.7

—

0.2

14.3

(4.2)

(1.2)

7.3
(4.1)
(12.3)

6.7

2.9

5.3 %

9.4 %

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in response to the
COVID-19 pandemic. The Company did not make use of any direct support measures. It was only the Company’s U.S. subsidiaries
that benefited from the CARES Act through the passage of modified tax loss carry-back rules that allow losses to be carried back to
years with a higher tax rate. As a result, the Company’s U.S. subsidiaries realized a tax benefit of $35 million (or a reduction of
14.4 points on the effective tax rate) for the year ended December 31, 2020, which is included in Other in the table above.

On September 1, 2019, the Canton of Zurich, Switzerland enacted legislation to reduce the current corporate income tax rate
from 21.15% to 19.7% in 2021. As a result, deferred tax assets and liabilities in Switzerland were revalued at December 31, 2019,
resulting in an income tax benefit of $6 million (or a reduction of 0.6 points on the effective tax rate) for the year ended December
31, 2019, which is included in Other in the table above.

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The components of net tax assets and liabilities at December 31, 2020 and 2019 were as follows (in thousands of U.S. dollars):

Net tax assets

Net tax liabilities

Net tax assets

Net current tax assets
Net deferred tax liabilities

Net unrecognized tax benefit

Net tax assets

December 31, 2020

December 31, 2019

182,077 $

(131,621)

50,456 $

179,813

(135,966)

43,847

December 31, 2020

December 31, 2019

112,992 $

(52,263)

(10,273)

50,456 $

65,000

(15,464)

(5,689)

43,847

Deferred tax assets and liabilities reflect the tax impact of temporary differences between the carrying amounts of assets and

liabilities for financial reporting and income tax purposes. Significant components of the net deferred tax assets and liabilities at
December 31, 2020 and 2019 were as follows (in thousands of U.S. dollars):

December 31, 2020

December 31, 2019

Deferred tax assets
Discounting of loss reserves and adjustment to life policy reserves
Foreign tax credit carryforwards
Tax loss carryforwards
Unearned premiums
Unrealized appreciation and timing differences on foreign exchange revaluations
Other deferred tax assets

Valuation allowance
Deferred tax assets
Deferred tax liabilities
Deferred acquisition costs
Goodwill and other intangibles
Equalization reserves
Unrealized appreciation and timing differences on investments
Unrealized appreciation and timing differences on foreign exchange revaluations
Other deferred tax liabilities
Deferred tax liabilities
Net deferred tax liabilities

11,741 $
198,263
57,485
34,760
20,493
42,754
365,496 $

(211,167)
154,329 $

67,850 $
58,224
7,366
46,389
—
26,763
206,592 $

(52,263) $

15,924
173,936
80,523
37,226
—
50,738
358,347

(186,907)
171,440

64,140
61,773
6,416
26,752
18,830
8,993
186,904

(15,464)

Realization of deferred tax assets is dependent on generating sufficient taxable income in future periods. Although realization

is not assured, management believes that it is more likely than not that the deferred tax assets will be realized. The valuation
allowance recorded at December 31, 2020 relates to a foreign tax credit carryforward of $198 million in Ireland, and net deferred tax
assets of $3 million in Canada, $3 million in the United Kingdom and $7 million in the United States. The valuation allowance
recorded at December 31, 2019 related to a foreign tax credit carryforward of $174 million in Ireland, net deferred tax assets of $5
million in Canada and $8 million in the United States.

At December 31, 2020, the deferred tax assets included tax loss carryforwards (after valuation allowance) of $23 million in

Singapore, $2 million in Hong Kong and $13 million in France that can be carried forward for an unlimited period of time. At
December 31, 2019, the deferred tax assets (after valuation allowance) included tax loss carryforwards of $18 million in Singapore
and $2 million in Hong Kong that can be carried forward for an unlimited period of time and $52 million in the United States that
predominantly related to non-life taxable losses, which were fully utilized in 2020.

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The total amount of unrecognized tax benefits for the years ended December 31, 2020, 2019 and 2018 was as follows (in

thousands of U.S. dollars):

January 1,
2020

Changes in tax
positions taken
during a prior
year

Tax positions
taken
during the
current year

Change as a
result of a lapse
of the statute
of limitations

Impact of the
change in
foreign
currency
exchange rates

December 31,
2020

Unrecognized tax benefits that, if
recognized, would impact the effective
tax rate

Interest and penalties recognized on the
above
Total unrecognized tax benefits,
including interest and penalties

4,185 $

1,415 $

— $

480 $

6,080

1,504

2,455

—

234

4,193

5,689 $

3,870 $

— $

714 $

10,273

January 1,
2019

Changes in tax
positions taken
during a prior
year

Tax positions
taken
during the
current year

Change as a
result of a lapse
of the statute
of limitations

Impact of the
change in
foreign
currency
exchange rates

December 31,
2019

Unrecognized tax benefits that, if
recognized, would impact the effective
tax rate

Interest and penalties recognized on the
above
Total unrecognized tax benefits,
including interest and penalties

6,639 $

(3,560) $

1,258 $

— $

(152) $

4,185

2,104

(669)

121

—

(52)

1,504

8,743 $

(4,229) $

1,379 $

— $

(204) $

5,689

January 1,
2018

Changes in tax
positions taken
during a prior
year

Tax positions
taken
during the
current year

Change as a
result of a lapse
of the statute
of limitations

Impact of the
change in
foreign
currency
exchange rates

December 31,
2018

Unrecognized tax benefits that, if
recognized, would impact the effective
tax rate

Interest and penalties recognized on the
above
Total unrecognized tax benefits,
including interest and penalties

6,460 $

73 $

346 $

— $

(240) $

6,639

1,481

691

—

(68)

2,104

7,941 $

764 $

346 $

— $

(308) $

8,743

For the years ended December 31, 2020, 2019 and 2018, there were no unrecognized tax benefits that, if recognized, would
create a temporary difference between the reported amount of an item in the Company’s Consolidated Balance Sheets and its tax
basis. The Company recognizes interest and penalties as Income tax expense (benefit) in the Consolidated Statements of Operations.

At December 31, 2020, an unrecognized tax benefit of $5 million is reasonably expected to reverse within twelve months.

13. Share-Based Incentives

During 2017, the Company designated a new class of voting Class B shares. Class B shares can either be purchased by or
granted to certain executives or non-executive directors of the Company at the discretion of the Company in line with the provisions
set out in the Certificate of Designation, or any sub-plan or addendum thereto.

Grants can be made by the Company twice per year as of March 1 or September 1. The number of shares granted is
determined based on a long-term incentive (LTI) award amount divided by the latest U.S. GAAP book value (or common
shareholder's equity) per share published as of either December 31 or June 30. As a result, Class B shares with a grant date of March
1 are based on the U.S. GAAP book value as of the December 31 valuation date, while Class B shares with a grant date of
September 1 are based on the U.S. GAAP book value as of the June 30 valuation date. The granted shares may be issued net of
share equivalent to settle related withholding taxes, where applicable.

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Restricted Class B shares are granted at $nil consideration and are restricted from sale for a period of up to three years from

the date of grant. An acceleration of the restriction period may occur under certain circumstances, including death, permanent
disability, or retirement of the shareholder. Notwithstanding these provisions, the Company's Board of Directors has authority to
accelerate the restriction period at its own discretion. Restricted Class B shares granted are recognized at fair value over the
restriction period.

Unrestricted Class B shares can be purchased based on the latest U.S. GAAP book value as of the applicable valuation date.

Unrestricted Class B shares can be transferred or sold back to the Company, subject to any applicable restrictions as per the
Certificate of Designation, at the option of the shareholder. The notices of grant require that, once the restriction period has expired,
the employee can only sell or transfer the Class B shares back to the Company provided the employee continues to hold shares in
the amount of a minimum of four times their gross annual long-term incentive target value, unless otherwise agreed in writing.

The Class B shares are accounted for as liabilities, with $15 million and $13 million included in Accounts payable, accrued
expense and other in the Consolidated Balance Sheets at December 31, 2020 and 2019, respectively. The compensation expense
related to Class B awards for the years ended December 31, 2020, 2019 and 2018 was $11 million, $10 million, and $4 million,
respectively, included in Other expenses in the Company's Consolidated Statement of Operations.

During 2020, there were repurchases by the Company of $11 million, which included $6 million restricted Class B shares and

$5 million unrestricted Class B shares. During 2019, there were repurchases by the Company of $13 million, which included
$6 million restricted Class B shares and $7 million unrestricted Class B shares.

The following table provides an activity summary of the Company's restricted and unrestricted Class B shares outstanding:

Outstanding December 31, 2018

Granted
Purchased
Repurchased

Outstanding December 31, 2019

Granted
Purchased
Repurchased
Expiration of restricted period
Outstanding December 31, 2020

14. Retirement Benefit Arrangements

Restricted Class B
shares

Unrestricted Class B
shares

Total Class B shares

161,810
117,929
—

(100,407)
179,332
167,202
—

(129,583)
(27,785)
189,166

183,834
—
18,875
(100,273)
102,436
—
38,838
(83,561)
27,785
85,498

345,644
117,929
18,875
(200,680)
281,768
167,202
38,838
(213,144)
—
274,664

For employee retirement benefits, the Company maintains certain defined contribution plans and other active and frozen
defined benefit plans. The majority of the defined benefit obligation at December 31, 2020 relates to a hybrid plan accounted for as
a defined benefit plan under U.S. GAAP for the Company’s Zurich office employees (the Zurich Plan).

Defined Contribution Plans

Contributions are made by the Company, and in some locations, these contributions are supplemented by the local plan

participants. Contributions are based on a percentage of the participant’s base salary depending upon competitive local market
practice and vesting provisions meeting legal compliance standards and market trends. The accumulated benefits for the majority of
these plans vest immediately or over a four-year period. As required by law, certain retirement plans also provide for death and
disability benefits and lump sum indemnities to employees upon retirement.

The Company incurred expenses for these defined contribution arrangements of $13 million for the years ended December 31,

2020, 2019 and 2018, respectively, included within Other expenses in the Company's Consolidated Statements of Operations.

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Active Defined Benefit Plan

The Company maintains the Zurich Plan, which is classified as a hybrid plan and accounted for as a defined benefit plan under

U.S. GAAP. At December 31, 2020 and 2019, the funded status of the Zurich Plan was as follows (in thousands of U.S. dollars):

Underfunded pension obligation at beginning of year

Change in pension obligation

Service cost

Interest cost

Plan participants’ contributions

Actuarial loss

Plan amendments

Benefits paid

Foreign currency adjustments
Change in pension obligation

Change in fair value of plan assets

Actual return on plan assets

Employer contributions

Plan participants’ contributions

Benefits paid

Foreign currency adjustments

Change in fair value of plan assets

Underfunded pension obligation at end of year

Additional information:

Projected benefit obligation at end of year (1)
Fair value of plan assets at end of year

Underfunded pension obligation at end of year
Accumulated pension obligation at end of year (2)

2020

2019

44,442 $

37,105

10,961 $

520

4,056

12,023

—

8,619

1,584

3,604

18,286

3,551

(3,910)

(2,352)

20,550

2,828

44,200 $

36,120

2,820

7,941

4,056

18,140

7,193

3,604

(3,910)

(2,352)

15,685

2,198

26,592 $

28,783

62,050 $

44,442

$ 242,112 $ 197,912

$ 180,062 $ 153,470

62,050 $

44,442

$ 231,419 $ 189,089

(1) Represents the actuarial present value of all benefits attributed to employee service rendered to December 31, measured using

assumptions as to future compensation levels

(2) Represents the actuarial present value of benefits (whether vested or non-vested) attributed to employee service rendered and

compensation to December 31, with no assumption about future compensation levels

At December 31, 2020 and 2019, the underfunded pension obligation of $62 million and $44 million, respectively, was

included in Accounts payable, accrued expenses and other in the Consolidated Balance Sheets. The amounts included in
Accumulated other comprehensive loss at December 31, 2020 and 2019 were cumulative losses of $30 million (net of $8 million of
taxes) and $16 million (net of $4 million of taxes), respectively.

The net periodic benefit cost reported in Other expenses in the Consolidated Statements of Operations for the years ended

December 31, 2020, 2019 and 2018 was $5 million, $5 million and $10 million, respectively.

The projected benefit obligation increased by $44 million during 2020, driven primarily by $21 million in foreign currency

adjustments due to changes in the value of the Swiss Franc during the year. The projected benefit obligation also increased in 2020
due to an increase in new members and a decrease in the discount rate applied to the obligation. The increase in the projected
benefit obligation was offset by an increase in the fair value of plan assets of $27 million, due primarily to $16 million in foreign
currency adjustments and $8 million in employer contributions. In 2019 the increase in the projected benefit obligation was driven
by a decrease in the discount rate applied to the obligation. The increase in the projected benefit obligation was offset by an
increase in the fair value of plan assets due primarily to the actual return on plan assets.

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The investment strategy for the plan is to achieve a consistent long-term return, which will provide sufficient funding for

future pension obligations while limiting risk. The expected long-term rate of return on plan assets is based on the expected asset
allocation and assumptions concerning long-term interest rates, inflation rates and risk premiums for equities above the risk-free
rates of return. These assumptions take into consideration historical long-term rates of return for the relevant asset categories. The
investment strategy is reviewed regularly.

On January 1, 2019, the Zurich Plan moved from a fully insured scheme with a guaranteed level of return to a partially insured

scheme, both under the same pension provider (AXA Winterthur), participating in a single investment pool. On the set-up of the
new partially insured plan, a coverage ratio of approximately 111% was applied to the assets to reflect the change from the fully
insured to the partially insured scheme. As at December 31, 2020 and 2019, the coverage ratio was 112% and 115%, respectively,
based on the performance of the assets. The actual return on plan assets for the years ended December 31, 2020 and 2019 was $3
million and $18 million. For 2019, the actual return on plan assets included $5 million recognized in net income and a $13 million
reduction of the unfunded pension obligation recorded within Accumulated other comprehensive loss in the Consolidated Balance
Sheet primarily related to the one-time impact of transitioning to the new scheme.

The fair value of the Zurich Plan’s assets, comprised of an investment pool of funds and including cash, at December 31, 2020

and 2019 was $180 million and $153 million, respectively. The partially insured funds comprise the accumulated pension plan
contributions and investment returns thereon. These funds meet the definition of Level 2 inputs of the fair value hierarchy as defined
in Note 3(a).

A transition group of pensioners elected to remain under the previous pension arrangement. This resulted in a plan amendment

of $4 million which increased the unfunded pension obligation recorded within Accumulated other comprehensive loss in the
Consolidated Balance Sheet as at December 31, 2019. This amount is amortized into net income over the remaining years of service
of active participants.

The assumptions used to determine the Zurich Plan’s pension obligation and net periodic benefit cost for the years ended

December 31, 2020, 2019 and 2018 were as follows:

Discount rate

Interest crediting rate

Expected long-term return on plan assets

Rate of compensation increase

2020

2019

2018

Pension
obligation

Net periodic
benefit cost

Pension
obligation

Net periodic
benefit cost

Pension
obligation

Net periodic
benefit cost

0.10 %

1.00 %

—

2.00 %

0.25 %

1.00 %

3.50 %

2.00 %

0.25 %

1.00 %

—

2.00 %

1.00 %

3.50 %

2.00 %

1.00 %

—

2.25 %

0.75 %

1.00 %

0.75 %

2.25 %

At December 31, 2020, estimated employer contributions to be paid in 2021 related to the Zurich Plan were $8 million and

future benefit payments were estimated to be paid as follows (in thousands of U.S. dollars):

Year
2021

2022

2023

2024

2025

2026 to 2029

Amount

8,040
7,478

8,351
8,727

9,289

52,579

$
$

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15. Commitments and Contingencies

(a) Concentration of Credit Risk

Fixed maturities

The Company’s investment portfolio is managed following prudent standards of diversification and a prudent investment

philosophy. The Company is not exposed to any significant credit concentration risk on its investments, except for debt securities
issued by the U.S. government and government sponsored enterprises, and other highly rated non-U.S. sovereign governments’ and
supranational organizations’ securities. At December 31, 2020, other than the U.S. and Canadian governments and U.S. government
sponsored enterprises, the Company’s fixed maturity investment portfolio did not contain exposure to any non-U.S. sovereign
government or any other issuer that accounted for more than 10% of the Company’s shareholders’ equity. At December 31, 2020,
the Company held fixed maturity investments in the Canadian government of $776 million. At December 31, 2019, other than the
U.S. government and government sponsored enterprises and the World Bank, the Company’s fixed maturity investment portfolio
did not contain exposure to any non-U.S. sovereign government or any other issuer that accounted for more than 10% of the
Company’s shareholders’ equity. The investment in World Bank at December 31, 2019 totaled $1,110 million and was categorized
as a Non-U.S. sovereign government, supranational and government related within Fixed maturities on the Consolidated Balance
Sheet. The Company keeps cash and cash equivalents in several banks and ensures that there are no significant concentrations of
credit risk in any one bank.

Derivatives

The Company’s investment strategy allows for the use of derivative instruments, subject to strict limitations. Derivative
instruments may be used to replicate investment positions and for the purpose of managing overall currency risk, market exposures
and portfolio duration, for hedging certain investments, or for enhancing investment performance that would be allowed under the
Company’s investment policy if implemented in other ways. The Company is exposed to credit risk in the event of non-performance
by the counterparties to the Company’s derivative contracts. However, the Company diversifies the counterparties to its derivative
contracts to reduce credit risk, and because the counterparties to these contracts are high credit quality international banks, the
Company does not anticipate non-performance. These contracts are generally of short duration and settle on a net basis. The
difference between the contract amounts and the related market value represents the Company’s maximum credit exposure.

Underwriting operations

The Company is also exposed to credit risk in its underwriting operations, most notably in the credit/surety line. Loss
experience in these lines of business is cyclical and is affected by the state of the general economic environment. The Company
provides its clients in these lines of business with reinsurance protection against credit deterioration, defaults or other types of
financial non-performance of or by the underlying credits that are the subject of the reinsurance provided and, accordingly, the
Company is exposed to the credit risk of those credits. The Company mitigates the risks associated with these credit-sensitive lines
of business through the use of risk management techniques such as risk diversification, careful monitoring of risk aggregations and
accumulations and, at times, through the use of retrocessional reinsurance protection and the purchase of credit default, total return
and interest rate swaps.

The Company has exposure to credit risk 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. In addition, in some jurisdictions, if the
broker fails to make payments to the insured under the Company’s policy, the Company might remain liable to the insured for the
deficiency. The Company’s exposure to such credit risk is somewhat mitigated in certain jurisdictions by contractual terms.

The Company has exposure to credit risk related to reinsurance balances receivable, reinsurance recoverable on paid and
unpaid losses, funds held by reinsured companies and deposit assets. The credit risk exposure related to these balances is mitigated
by several factors, including but not limited to, credit checks performed as part of the underwriting process, monitoring of aged
receivable balances and, in certain cases, the contractual right to offset amounts payable by the Company to the counterparty against
amounts due to the Company from the counterparty.

The Company adopted updated accounting guidance on the recognition of credit losses effective January 1, 2020. In assessing

future default for reinsurance balances receivable, the Company evaluates the valuation allowance under the loss rate method and
utilizes historic loss activity, adjusted for its assessment of current market conditions and reasonable and supportable forecasts on
loss rates. As a result of the adoption and at December 31, 2020, the Company increased its allowance for credit losses by
$2 million to $9 million, compared to the $7 million allowance for its reinsurance balances receivable at December 31, 2019. In
assessing an allowance for funds held by reinsured companies and deposit assets, the Company considers historical information and
the financial strength and credit ratings of counterparties to determine the appropriateness of the allowance. In assessing future
default for these balances, the Company evaluates the valuation allowance under the probability of default and loss given default

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method and utilizes counterparty credit ratings from major rating agencies, as well as assessing the current market conditions and
reasonable and supportable forecasts for the likelihood of default. As a result of the adoption and at December 31, 2020, the
Company recorded an allowance for credit losses of $7 million on its funds held by reinsurance companies and $2 million on its
deposit assets. This compared to no allowance for funds held by reinsured companies and deposit assets at December 31, 2019. See
Note 8 for discussion of credit risk related to reinsurance recoverable on paid and unpaid losses.

(b) Lease Arrangements

The Company leases office space under operating leases expiring in various years through 2038. At the lease commencement,
the Company determines the classification of each lease as either a finance lease or an operating lease. The Company currently only
has leases classified as operating and the lease expense is recognized on a straight-line basis over the lease term. Operating lease
right-of-use assets and operating lease liabilities are recognized at the commencement date of the lease based on the present value of
lease payments over the lease term. Variable lease payments are excluded from these lease payments to the extent they are not based
on consumer price index or a market index and are recognized in the period in which the obligation for those payments is incurred.

Many of the Company's lease terms include options to extend or terminate the lease at the discretion of the Company, and are

reflected in the lease measurement only if the Company is reasonably certain of exercising those options. The Company's lease
agreements do not contain any material residual value guarantees or material restrictive covenants.

The Company has lease agreements with lease and non-lease components, such as common-area maintenance costs. The
Company has elected the practical expedient to account for lease components together with non-lease components as a single lease
component for all real estate leases.

As most leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information

available at the lease commencement date in determining the present value of lease payments.

The following table summarizes the balances related to the Company's total lease expense and provides supplemental other

information related to operating leases for the year ended December 31, 2020 and 2019 (in thousands of U.S. dollars):

Operating lease costs
Variable lease costs
Sublease income
Total lease costs

Other information:
Operating lease right-of-use assets (1)
Operating lease liabilities (2)
Operating lease right-of-use assets obtained in exchange for lease obligations, non-cash (3)
Operating cash outflows from operating leases
Weighted-average remaining lease term on operating leases (4)
Weighted-average discount rate on operating leases (5)

2020
$ 16,403
724
(1,194)
$ 15,933

$ 64,746
$ 75,463
$
852
$ 16,495

2019
$ 15,893
2,598
(1,515)
$ 16,976

$ 75,774
$ 85,777
$ 86,157
$ 11,305

9.1 Yrs

9.2 Yrs

2.7 %

2.6 %

(1) Included in Other assets in the Consolidated Balance Sheets
(2) Included in Accounts payable, accrued expenses and other in the Consolidated Balance Sheets
(3) Includes transition amounts related to the adoption of the new lease guidance in 2019
(4) Weighted-average remaining lease term is calculated on the basis of the remaining lease term and the lease liability balance for

each lease as of the reporting date

(5) Weighted-average discount rate is calculated on the basis of the discount rate for the lease that was used to calculate the lease
liability balance for each lease as of the reporting date and the remaining balance of the lease payments for each lease as of the
reporting date

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The following table shows the contractual maturities of the Company's operating lease liabilities at December 31, 2020 (in

thousands of U.S. dollars):

Year
2021
2022
2023
2024
2025
2026 to 2038
Discount
Total discounted operating lease liabilities

Expected cash flows
$

13,211
10,900
10,264
9,179
8,621
32,905
(9,617)
75,463

The Company has additional lease commitments of $30 million related to leases that will not commence until 2021, with
contractual lease terms of up to 10 years. As these leases have not yet commenced, the commitments are not included in the maturity
table above or in the Consolidated Balance Sheets at December 31, 2020.

The Company has entered into maintenance agreements and service agreements that provide for business and information
technology support and computer equipment. Future payments under these contracts amount to $38 million, with $27 million and $5
million to be paid during 2021 and 2022, respectively, and the remainder to be paid through 2028.

The Company has entered into certain investments, including investments in VIEs (see Note 4(e)), with unfunded capital

commitments. As of December 31, 2020, the Company expects to fund capital commitments totaling $793 million with $318
million, $303 million, $147 million, and $25 million to be paid during 2021, 2022, 2023, and 2024, respectively.

The Company has committed to a 10-year structured letter of credit facility issued by a high credit quality international bank
which has a final maturity of December 31, 2024. At December 31, 2020 and 2019, the Company’s participation in the facility was
$69 million. At December 31, 2020, the letter of credit facility has not been drawn down and can only be drawn down in the event
of certain specific scenarios, which the Company considers remote. Unless canceled by the bank, the credit facility automatically
extends for one year, each year until maturity.

In exchange for a fee, the Company has committed to provide statutory reserve support to a third party by funding loans if
certain events occur. At December 31, 2020, the Company does not believe that it will be required to provide any funding under this
commitment, as the occurrence of the defined events is considered remote.

(d) Legal Proceedings

Litigation

The Company’s reinsurance subsidiaries, and the insurance and reinsurance industry in general, are subject to litigation and

At December 31, 2020, the Company was not a party to any litigation or arbitration that it believes could have a material
adverse effect on the financial condition, results of operations or liquidity of the Company. Refer to Note 19 for additional details
related to litigation settled after December 31, 2020.

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16. Credit Agreements

In the normal course of its operations, the Company enters into agreements with financial institutions to obtain unsecured and

secured letter of credit facilities. At December 31, 2020, the total amount of such credit facilities available to the Company was
approximately $752 million, with the significant facilities as follows:

•

$400 million combined credit facility, with the first $100 million being unsecured and any further utilization secured. This
credit facility matures each year on November 14, and automatically extends for a further year, unless canceled by either
counterparty

$250 million secured credit facility, that matures on December 31, 2022, and automatically extends for a further year
unless canceled by either counterparty

$100 million secured credit facility, that matures on December 21, 2021, and automatically extends for a further year
unless canceled by either counterparty.

Under the terms of certain reinsurance agreements, irrevocable letters of credit were issued for a total of $102 million on an

unsecured basis and $508 million on a secured basis at December 31, 2020 in respect of losses and unearned premium reserves. The
committed secured credit facilities maintained by the Company are used for the issuance of letters of credit which must be fully
secured with either cash, government bonds and/or investment grade bonds.

The agreements include default covenants, which could require the Company to fully secure the outstanding letters of credit to

the extent that the facility is not already fully secured and/or result in the Company not being allowed to issue any new letters of
credit.

At December 31, 2020, no conditions of default existed under these facilities.

17. Related Party Transactions

During 2020 and 2019, the Company declared and paid to EXOR Nederland N.V. common share dividends totaling

$50 million and $199 million, respectively.

In the normal course of its underwriting activities, the Company has entered into reinsurance agreements with companies

affiliated with the Company.

In the normal course of its investment operations, the Company bought or held securities of companies affiliated with the

Company, including the following:

•

In 2018, the Company entered into an agreement with Exor to invest in a newly formed limited partnership, Exor Seeds
L.P. At December 31, 2020 and 2019, the carrying value of the Company's investment in the limited partnership was $51
million and $32 million, respectively, with the increase during 2020 and 2019 driven primarily by additional capital
contributions. This investment is accounted for using the equity method and is included within Other invested assets in the
Consolidated Balance Sheets.

In 2017, the Company invested $500 million in two Exor managed public equity funds. At December 31, 2020 and 2019,
the carrying value of these investments totaled $1,039 million and $948 million, respectively. These investments are
recorded at fair value and are included within Equities in the Consolidated Balance Sheets. Net realized and unrealized
investment gains related to these funds of $91 million, $385 million, and $12 million were recorded in the Consolidated
Statements of Operations for the years ended December 31, 2020, 2019 and 2018, respectively.

In 2016, the Company purchased a 36% shareholding in Almacantar from Exor. Refer to Note 4(f) for a discussion of the
Company's interest in Almacantar.

During the years ended December 31, 2020, 2019 and 2018, the Company was a party to various agreements with Exor

whereby Exor provides services in exchange for fees as follows:

•

advisory services related to certain real estate investments where the Company paid approximately $310 thousand, $221
thousand and $45 thousand for services rendered in 2020, 2019 and 2018, respectively

investment advisory services and use of certain office space, where the Company paid $259 thousand, $254 thousand and
$273 thousand related to services provided in 2020, 2019 and 2018, respectively

certain advisory services for a fixed annual fee of $500 thousand in 2020, 2019 and 2018.

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Subsequent to year end, the Company entered into a consulting services agreement with Exor Capital LLP effective April 1,

2021 related to certain investments such as alternative fixed income, real estate, public equity and private equity funds as well as co-
invest opportunities.

The transactions between related parties discussed above were entered into at arm's-length.

18. Segment Information

The Company monitors the performance of its operations in three segments: Property and Casualty (P&C), Specialty and Life

and Health. The business in the P&C and Specialty segments is collectively referred to as Non-life business. P&C, Specialty and
Life and Health each separately represent markets that are reasonably homogeneous in terms of client types, buying patterns,
underlying risk patterns and approach to risk management.

The P&C segment is comprised of property and casualty business underwritten, including property catastrophe, facultative and

U.S. health risks. The Specialty segment is comprised of specialty business underwritten, including treaty and facultative contracts.
The Life and Health segment is comprised of mortality, morbidity and longevity business.

Management measures results for the P&C and Specialty segments on the basis of the loss ratio, acquisition ratio, technical

ratio, other expense ratio and combined ratio (all defined below). Management measures results for the Life and Health segment on
the basis of the allocated underwriting result, which includes underwriting result and net investment income allocated to life
business.

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The segment results for the years ended December 31, 2020, 2019 and 2018 are presented below (in millions of U.S. dollars,

except ratios).

Segment Information
For the year ended December 31, 2020

Gross premiums written

Net premiums written

P&C
segment

$ 3,442

$ 3,044

Specialty
segment

Total
Non-life

Life
and Health
segment

Corporate
and Other

Total

$ 1,935

$ 5,377

$ 1,499 $

— $ 6,876

$ 1,782

$ 4,826

$ 1,475 $

— $ 6,301

Decrease in unearned premiums

119

110

229

—

236

Net premiums earned

Losses and loss expenses

Acquisition costs

Technical result

Other (loss) income

Other expenses

Underwriting result

Net investment income

Allocated underwriting result

Net realized and unrealized investment gains

Interest expense

Amortization of intangible assets

Net foreign exchange losses

Income tax benefit

Interest in earnings of equity method investments

Net income
Loss ratio (1)
Acquisition ratio (2)
Technical ratio (3)
Other expense ratio (4)
Combined ratio (5)

$ 3,163

$ 1,892

$ 5,055

$ 1,482 $

— $ 6,537

(2,389)

(1,628)

(4,017)

(1,318)

(784)

(470)

(1,254)

(102)

—

(5,335)

(1,356)

(10)

$ (206)

$ (216)

62 $

— $

(154)

(1)

—

(61)

(26)

(1)

(87)

(73)

(196)

(72)

$ (232)

$ (304)

n/a $

293

n/a

454

(39)

(10)

(52)

(356)

(497)

361

n/a

454

(39)

(10)

(52)

n/a $

254

75.5 %

86.0 %

79.5 %

24.8

100.3 % 110.8 % 104.3 %

1.9

1.4

1.7

102.2 % 112.2 % 106.0 %

(1) Loss ratio is obtained by dividing losses and loss expenses by net premiums earned.
(2) Acquisition ratio is obtained by dividing acquisition costs by net premiums earned.
(3) Technical ratio is defined as the sum of the loss ratio and the acquisition ratio.
(4) Other expense ratio is obtained by dividing other expenses by net premiums earned.
(5) Combined ratio is defined as the sum of the technical ratio and the other expense ratio.

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Gross premiums written

Net premiums written

Segment Information
For the year ended December 31, 2019

P&C
segment

Specialty
segment

$ 3,579

$ 2,213

$ 3,302

$ 2,137

Total
Non-life

$ 5,792

$ 5,439

Life
and Health
segment

Corporate
and Other

Total

$ 1,493 $

— $ 7,285

$ 1,470 $

— $ 6,909

Increase in unearned premiums

(231)

(150)

(381)

(3)

—

(384)

Net premiums earned

Losses and loss expenses

Acquisition costs

Technical result

Other (loss) income

Other expenses

Underwriting result

Net investment income

Allocated underwriting result

Net realized and unrealized investment gains

Interest expense

Loss on redemption of debt

Amortization of intangible assets

Net foreign exchange losses

Income tax expense

Interest in earnings of equity method investments

Net income

Loss ratio

Acquisition ratio

Technical ratio

Other expense ratio

Combined ratio

$ 3,071

$ 1,987

$ 5,058

$ 1,467 $

— $ 6,525

(2,167)

(1,496)

(3,663)

(1,263)

(783)

(523)

(1,306)

(149)

—

(4,923)

(1,455)

$ 121

(32)

55 $

3 $

(1)

—

(80)

(28)

(60)

(1)

(108)

(69)

(193)

(20)

n/a $

377

n/a

887

(40)

(15)

(12)

(87)

(53)

n/a $

147

(370)

(208)

449

n/a

887

(40)

(15)

(12)

(87)

(53)

937

70.6 %

75.3 %

72.4 %

25.5

26.3

25.8

96.1 % 101.6 %

98.2 %

2.6

1.4

2.1

98.7 % 103.0 % 100.3 %

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Gross premiums written

Net premiums written

Segment Information
For the year ended December 31, 2018

P&C
segment

$ 3,015

$ 2,722

Specialty
segment

$ 2,050

$ 1,870

Total
Non-life

$ 5,065

$ 4,592

Life
and Health
segment

Corporate
and Other

Total

$ 1,235 $

— $ 6,300

$ 1,211 $

— $ 5,803

(Increase) decrease in unearned premiums

(187)

(103)

(290)

—

(289)

Net premiums earned

Losses and loss expenses

Acquisition costs

Technical result

Other income

Other expenses

Underwriting result

Net investment income

Allocated underwriting result

Net realized and unrealized investment losses

Interest expense

Amortization of intangible assets

Net foreign exchange gains

Income tax benefit

Interest in earnings of equity method investments

Net loss

Loss ratio

Acquisition ratio

Technical ratio

Other expense ratio

Combined ratio

$ 2,535

$ 1,767

$ 4,302

$ 1,212 $

— $ 5,514

(2,073)

(1,096)

(3,169)

(1,025)

(606)

(502)

(1,108)

(129)

—

(4,194)

(1,237)

$ (144)

$ 169

—

(75)

58 $

— $

(27)

(102)

(51)

(153)

$ (189)

$ 142

(47)

n/a $

350

n/a

(306)

(173)

416

n/a

(390)

(43)

(35)

119

(43)

(35)

119

n/a $

(86)

81.8 %

62.0 %

73.7 %

23.9

28.4

25.8

105.7 %

90.4 %

99.5 %

3.0

1.5

2.4

108.7 %

91.9 % 101.9 %

The following table provides the geographic distribution of gross premiums written by region for the years ended

December 31, 2020, 2019 and 2018 (in millions of U.S. dollars, except percentages):

North America

Europe

Asia, Australia and New Zealand

Latin America and the Caribbean

Middle East, Africa, Russia and the Commonwealth of Independent
States (CIS)
Total

2020

2019

2018

$ 3,794

1,921

806

220

135

55 % $ 3,752

51 % $ 2,929

47 %

2,155

835

264

279

2,152

699

260

$ 6,876

100 % $ 7,285

100 % $ 6,300

100 %

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The following table provides the gross premiums written by segment and line of business for the years ended December 31,

2020, 2019 and 2018 (in millions of U.S. dollars, except percentages):

P&C

Casualty

Property

Catastrophe

U.S. health

Multiline and other

Motor

Total P&C

Specialty

Financial risks

Agriculture

Aviation and space

Energy

Property

Multiline and other

Marine

Engineering

Casualty

Total Specialty

Life and Health

Total

2020

2019

2018

1,430 $

1,394 $

1,052

641

545

379

289

158

644

537

391

213

400

615

478

405

157

308

3,442 $

3,579 $

3,015

568 $

587 $

468

219

192

173

152

142

483

286

183

151

276

132

102

1,935 $

1,499 $

6,876 $

2,213 $

1,493 $

7,285 $

549

506

228

112

307

103

124

2,050

1,235

6,300

The Company produces its business both through brokers and through direct relationships with insurance company clients.

None of the Company’s cedants individually accounted for more than 4% of total gross premiums written during each of the years
ended December 31, 2020, 2019 and 2018.

The Company has two brokers that individually accounted for 10% or more of its gross premiums written during the years

ended December 31, 2020, 2019 and 2018, as follows:

Marsh (including Guy Carpenter)
Aon Group (including the Benfield Group)

2020

2019

2018

30 %
21 %

28 %
22 %

22 %
22 %

The following table summarizes the percentage of gross premiums written through these two brokers by segment for the years

ended December 31, 2020, 2019 and 2018:

P&C
Specialty
Life and Health

19. Subsequent Events

2020

2019

2018

64 %
64 %
6 %

60 %
62 %
8 %

53 %
52 %
11 %

In March 2019, a cedant (“the Cedant”) brought a motion for a declaratory judgment against the Company seeking a
declaration that the Cedant had properly exercised its right, pursuant to an agreement between the parties, to recapture certain
portfolios of life reinsurance contracts that the Cedant had retroceded to the Company. In February 2021, the Company reached a
settlement with the Cedant. The Company determined that no accrual for a contingent liability was required at December 31, 2020.

In February 2021, winter storm Uri brought freezing temperatures, snow and widespread power outages across Texas, U.S.,
causing severe damage. The Company has exposure to this event and is currently assessing its potential claims, but information as
of February 25, 2021 is not sufficient to arrive at a reasonable estimate.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and the Board of Directors of PartnerRe Ltd.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of PartnerRe Ltd. and subsidiaries (the Company) as of December
31, 2020 and 2019, the related consolidated statements of operations and comprehensive income (loss), shareholders' equity and
cash flows for each of the three years in the period ended December 31, 2020, and the related notes (collectively referred to as the
“consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the
financial position of the Company at December 31, 2020 and 2019, and the results of its operations and its cash flows for each of the
three years in the period ended December 31, 2020, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the
Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company
Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in
accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error
or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial
reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the
purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we
express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to
error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used
and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe
that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were
communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material
to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of
critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are
not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts
or disclosures to which they relate.

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Valuation of reserve for incurred but not reported - Non-Life reserves

Description of the Matter At December 31, 2020, the liability for incurred but not reported (IBNR) claim reserves, including

additional case reserves (ACR) for the non-life segments (collectively referred to as IBNR claim
reserves), represented $6,748,688 thousand of the total $11,395,321 thousand of non-life reserves. As
disclosed in Notes 2 and 7 of the consolidated financial statements, the loss and loss adjustment
expense reserves represent management’s estimate of the ultimate liability for claims that have been
reported, claims that have been incurred but not reported, and expenses associated with processing and
settling claims. IBNR claim reserves include amounts for losses incurred but not yet reported to the
Company and additional case reserves when the Company’s loss estimate is higher than that reported
by the cedants.

There is significant uncertainty inherent in determining management’s estimate of the ultimate cost of
all claims that have occurred which is used to determine the incurred but not reported reserves. Such
ultimates are estimated by management based upon reports received from ceding companies,
supplemented by the Company’s own actuarial estimates of reserves for which ceding company
reports have not been received, and based on the Company’s own historical experience. To the extent
that the Company’s own historical experience is inadequate for estimating reserves, such estimates are
determined based upon industry experience and management’s judgment. The estimate is particularly
sensitive to the preliminary nature of the information available, the magnitude and relative infrequency
of the events, the expected duration of the respective claims development period, inadequacies in the
data provided to the relevant date by industry participants and the potential for further reporting lags or
insufficiencies; and in certain large events, significant uncertainty as to the form of the claims and
legal issues under the relevant terms of insurance and reinsurance contracts.

Auditing management’s estimate for IBNR claim reserves was complex and required the involvement
of our actuarial specialists due to the high degree of subjectivity inherent in management’s methods
and assumptions used in the calculations which have a significant effect on the valuation of the
reserves.

How We Addressed the
Matter in Our Audit

We obtained an understanding of the estimation process for IBNR claim reserves. This included,
among others, understanding management’s process over the actuarial methods and assumptions
selected to determine their recorded estimate.

To test the IBNR claim reserves our audit procedures included, among others, utilizing the assistance
of our actuarial specialists. Our actuarial specialists evaluated the selection of standard reserving
methods applied, considering the methods used in prior periods and those applied in the broader
reinsurance industry. To evaluate the significant assumptions used by management in their actuarial
methods we compared the significant assumptions, including the severity of industry losses by event
and development patterns, to current industry benchmarks such as incurred to ultimate loss ratios and
industry loss levels, specifically for the catastrophe events. We developed a range of reasonable
reserve estimates including performing independent projections for a significant portion of the
Company’s classes of business and compared the range of reserve estimates to the Company’s
recorded claims and claim expense reserves.

Valuation of life and health reserves

Description of the Matter At December 31, 2020, life and health reserves were $2,704,229 thousand. As disclosed in Notes 2

and 7 of the consolidated financial statements, life and health reserves represent information reported
by ceding companies, supplemented by management’s actuarial estimates for life reserves including
assumptions for mortality, morbidity, critical illness, persistency and future investment income and for
health reserves including assumptions for the completion factors and loss ratio picks.

Auditing management’s estimate for life and health reserves was complex and required the
involvement of our actuarial specialists due to the high degree of subjectivity inherent in
management’s methods and assumptions used in the calculations which have a significant effect on the
valuation of the reserves.

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Table of Contents

How We Addressed the
Matter in Our Audit

We obtained an understanding over the process to estimate the life and health reserves. This included,
among others, understanding management’s process over the actuarial methods and assumptions
selected to determine their recorded estimate for life and health reserves.

To test the life and health reserves, our audit procedures included, among others, utilizing the
assistance of actuarial specialists. Our actuarial specialists evaluated the selection of standard reserving
methods applied, considering the methods used in prior periods and those applied in the broader
reinsurance industry. To assess the significant assumptions used by management, we compared the
significant assumptions noted above to historical experience, observable market data or management’s
estimates of prospective changes in these assumptions and reviewed management’s actual vs expected
analysis. For the life business, we also independently recalculated the reserves for a sample of policies
for certain lines of business, which we compared to the reserves calculated by management and
reviewed the Company’s loss recognition testing, including the assumptions used in the test, the
calculation and the results. For the health business, we also performed a hindsight analysis on selected
portfolios within the health reserves business.

/S/ Ernst & Young Ltd.
Ernst & Young Ltd.

We have served as the Company‘s auditor since 2016.

Hamilton, Bermuda
February 25, 2021

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Directors of PartnerRe Ltd.

We have audited the consolidated financial statements of PartnerRe Ltd. and subsidiaries (the Company) as of December 31, 2020
and 2019, and for each of the three years in the period ended December 31, 2020, and have issued our report thereon dated February
25, 2021 (included elsewhere in this Annual Report on Form 20-F). Our audits of the consolidated financial statements included the
financial statement schedules listed in Item 18 of this Form 20-F (the “schedules”). These schedules are the responsibility of the
Company's management. Our responsibility is to express an opinion on the Company’s schedules, based on our audits.

In our opinion, the schedules present fairly, in all material respects, the information set forth therein when considered in conjunction
with the consolidated financial statements.

/S/ Ernst & Young Ltd.
Ernst & Young Ltd.

Hamilton, Bermuda
February 25, 2021

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Table of Contents

Type of investment
Fixed maturities

PartnerRe Ltd.

Consolidated Summary of Investments
Other Than Investments in Related Parties
at December 31, 2020
(Expressed in thousands of U.S. dollars)

SCHEDULE I

(1)

Cost

Fair Value

Amount at which
shown in
the balance sheet

U.S. government and government sponsored enterprises

2,386,579 $

2,409,540 $

2,409,540

U.S. states, territories and municipalities

Non-U.S. sovereign government, supranational and government related

Corporate bonds

Asset-backed securities

Residential mortgage-backed securities

Other mortgage-backed securities

Fixed maturities

Equities

Common stocks

Banks, trust and insurance companies

Industrial, miscellaneous and all other

Nonredeemable preferred stocks

Equities
Short-term investments
Other invested assets (2)
Investments in real estate (3)
Total

110,155

2,076,962

3,185,741

17,537

4,564,926
37

137,968

2,180,762

3,341,854

17,528

4,698,728
—

137,968

2,180,762

3,341,854

17,528

4,698,728
—

$ 12,341,937 $ 12,786,380 $

12,786,380

2,727 $

3,646 $

3,646

798,966

45,373

1,449,924

42,871

847,066 $

1,496,441 $

1,496,441

416,059 $

416,350 $

416,350

2,068,235 $

2,967,738

— $

67,980

$ 16,767,406 $

17,734,889

(1) Original cost of fixed maturities reduced by repayments and adjusted for amortization of premiums or accrual of discounts.

Original cost of equity securities.

(2) Other invested assets shown in the Consolidated Balance Sheets in Item 18 also includes the Company’s investments accounted

for using the equity method of accounting of $900 million.

(3) Investments in real estate are carried at original cost less any impairments.

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Table of Contents

Condensed Balance Sheets—Parent Company Only
(Expressed in thousands of U.S. dollars, except parenthetical share and per share data)

PartnerRe Ltd.

SCHEDULE II

Assets

Fixed maturities, at fair value (amortized cost: 2020, $517,294; 2019, $56,096)

519,967 $

58,161

December 31,
2020

December 31,
2019

Short-term investments, at fair value (amortized cost: 2020, $nil; 2019, $3,993)

Cash and cash equivalents

Investments in subsidiaries

Intercompany loans and balances receivable

Other

Total assets

Liabilities
Intercompany loans and balances payable (1)
Accounts payable, accrued expenses and other

Total liabilities

Shareholders’ Equity

Additional paid-in capital

Accumulated other comprehensive loss

Retained earnings

Total shareholders’ equity

Total liabilities and shareholders’ equity

—

10,020

3,993

4,512

9,291,985

8,896,352

21,559

11,443

219,815

4,422

$ 9,854,974 $ 9,187,255

$ 2,490,500 $ 1,884,499

37,477

32,587

2,527,977

1,917,086

—

25,490

28,169

2,334,564

2,396,530

(96,005)

(75,925)

5,062,948

4,921,395

7,326,997

7,270,169

$ 9,854,974 $ 9,187,255

(1) The parent has fully and unconditionally guaranteed on a subordinated basis all obligations of PartnerRe Finance II Inc. and
PartnerRe Finance B, both indirect 100% owned finance subsidiaries of the parent, related to the remaining $62 million
aggregate principal amount of 6.440% Fixed-to-Floating Rate junior subordinated CENts and $500 million aggregate principal
amount of 4.500% Fixed-Rate Reset junior subordinated notes, respectively. The parent’s obligations under these guarantees
are unsecured and rank junior in priority of payments to the parent’s senior notes.

The parent has fully and unconditionally guaranteed all obligations of PartnerRe Finance B and PartnerRe Finance Ireland
DAC, direct 100% owned subsidiary of the parent, related to the issuance of the 3.700% senior notes and 1.250% senior notes,
respectively. The parent’s obligations under these guarantees are senior and unsecured and rank equally with all other senior
unsecured indebtedness of the parent.

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Table of Contents

Condensed Statements of Operations and Comprehensive Income (Loss) —Parent Company Only
(Expressed in thousands of U.S. dollars)

PartnerRe Ltd.

SCHEDULE II

December 31, 2020

December 31, 2019

December 31, 2018

For the year ended

Revenues

Net investment income

Interest income on intercompany loans

Net realized and unrealized investment gains (losses)

Other income (loss)

Total revenues

Expenses

Other expenses

Interest expense on intercompany loans

Net foreign exchange losses (gains)

Total expenses

2,094 $

1,620 $

—

641

113

2,848

53,458

17,188

82,986

153,632

12,215

2,594

112

16,541

51,115

14,757

(26,885)

38,987

(Loss) income before equity in net income (loss) of subsidiaries

(150,784)

(22,446)

1,844

13,015

(1,632)

(6,778)

6,449

25,792

15,041

(50,276)

(9,443)

15,892

(101,886)

(85,994)

46,416

—

Equity in net income (loss) of subsidiaries

Net income (loss)

Preferred dividends

Loss on redemption of preferred shares

Net income (loss) attributable to common shareholder

Comprehensive income (loss)

Net income (loss)

Other comprehensive (loss) income

Comprehensive income (loss)

404,973

254,189

45,990

2,341

959,194

936,748

46,416

—

205,858 $

890,332 $

(132,410)

254,189 $

936,748 $

(20,080)

62,709

(85,994)

(48,353)

234,109 $

999,457 $

(134,347)

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Table of Contents

PartnerRe Ltd.

Condensed Statements of Cash Flows—Parent Company Only
(Expressed in thousands of U.S. dollars)

SCHEDULE II

Cash flows from operating activities

Net income (loss)
Adjustments to reconcile net income to net cash used in
operating activities:

Equity in net (income) loss of subsidiaries

Other, net

Net cash used in operating activities

Cash flows from investing activities
Advances to/from subsidiaries, net (1) (2) (3)
Net issue of intercompany loans receivable and payable (1) (4)
Sales and redemptions of fixed maturities

Sales and redemptions of short-term investments

Purchases of fixed maturities

Purchases of short-term investments

Other, net

Net cash provided by (used in) investing activities
Net cash used in financing activities (2)
Effect of foreign exchange rate changes on cash

Increase (decrease) in cash and cash equivalents

Cash and cash equivalents—beginning of year

December 31, 2020

December 31, 2019

December 31, 2018

For the year ended

254,189 $

936,748 $

(85,994)

(404,973)

87,789

(62,995)

73,738

458,489

32,230

43,899

(496,139)

(39,913)

(3,987)

68,317

—

186

5,508

4,512

(959,194)

(17,167)

(39,613)

101,886

(29,283)

(13,391)

(282,233)

(261,666)

276,332

72,724

2,189

(18,621)

(6,173)

(29)

44,189

—

(1,145)

3,431

1,081

299,279

65,025

—

(124,932)

—

(680)

(22,974)

—

10,765

(25,600)

26,681

1,081

Cash and cash equivalents—end of year

10,020 $

4,512 $

(1) During 2020, the parent recorded a non-cash exchange related to a reduction of intercompany loans and balances receivable of

$204 million and a corresponding reduction of intercompany loans and balances payable of $204 million. This non-cash
transaction has therefore been excluded from the Condensed Statements of Cash Flows—Parent Company Only.

(2) During 2020, 2019 and 2018, dividends paid to common and preferred shareholders of $96 million, $246 million and $94

million, respectively, were paid by a Bermuda subsidiary on behalf of the parent, with a corresponding increase to intercompany
balances payable. During 2020, the redemption of Series F preferred shares of $67 million was also paid by a Bermuda
subsidiary on behalf of the parent, with a corresponding increase to intercompany balances payable. There transactions have
therefore been excluded from the Condensed Statements of Cash Flows—Parent Company Only.

(3) During 2020, the parent recorded a non-cash capital contribution to a subsidiary of $25 million, with a corresponding change to
the intercompany balances payable. During 2019, the Parent recorded non-cash dividends received from subsidiaries and non-
cash capital contributions to subsidiaries of $979 million and $22 million, respectively, with corresponding changes to the
intercompany balances receivable/payable. These non-cash transactions have therefore been excluded from the Condensed
Statements of Cash Flows—Parent Company Only.

(4) During 2020, the Company recorded a $458 million loan payable maturing in 2030 with a direct Bermuda subsidiary in

exchange for shares of an indirectly owned subsidiary, which were subsequently transferred to another subsidiary in exchange
for cash. The cash proceeds were primarily invested in fixed maturities.

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2020

Non-life
Life and Health

Corporate and Other

Total

2019
Non-life

PartnerRe Ltd.

Supplementary Insurance Information
For the years ended December 31, 2020, 2019 and 2018
(Expressed in thousands of U.S. dollars)

SCHEDULE III

Deferred
Policy
Acquisition
Costs

Gross
Reserves

Unearned
Premiums

Other
Benefits
Payable

Premium
Revenue

Net
Investment
Income (1)

Losses
Incurred

Acquisition
Costs

Other
Expenses (2)

Net Premiums
Written

$ 543,416 $ 11,395,321 $ 2,257,441 $

— $ 5,054,529 $ N/A $ 4,016,704 $ 1,254,067 $

87,163 $ 4,825,919

276,555

—

7,773

2,704,229

1,482,297

68,259

1,318,196

102,051

73,105

1,474,939

—

292,409

—

195,379

—

$ 819,971 $ 11,395,321 $ 2,265,214 $ 2,704,229 $ 6,536,826 $ 360,668 $ 5,334,900 $ 1,356,118 $ 355,647 $ 6,300,858

$ 640,442 $ 10,357,981 $ 2,420,009 $

— $ 5,058,056 $ N/A $ 3,662,891 $ 1,306,388 $ 107,414 $ 5,438,807

Life and Health

Corporate and Other

234,166

—

5,402

13,851

2,417,044

1,467,162

71,756

1,263,016

149,074

69,191

1,470,251

—

376,782

(2,751)

—

193,364

—

Total

2018
Non-life

Life and Health

Corporate and Other

Total

$ 874,608 $ 10,363,383 $ 2,433,860 $ 2,417,044 $ 6,525,218 $ 448,538 $ 4,923,156 $ 1,455,462 $ 369,969 $ 6,909,058

$ 553,535 $ 9,885,913 $ 2,062,736 $

— $ 4,301,862 $ N/A $ 3,168,647 $ 1,107,760 $ 102,397 $ 4,592,282

189,511

—

9,463

10,217

2,198,080

1,211,948

65,567

1,024,608

129,704

51,055

1,211,082

—

350,354

—

152,116

—

$ 743,046 $ 9,895,376 $ 2,072,953 $ 2,198,080 $ 5,513,810 $ 415,921 $ 4,193,255 $ 1,237,464 $ 305,568 $ 5,803,364

(1) Because the Company does not manage its assets by segment, net investment income is not allocated to the Non-life business of the reinsurance operations. However,

because of the interest-sensitive nature of some of the Company’s Life products, net investment income is considered in management’s assessment of the profitability of the
Life and Health segment.

(2) Other expenses are a component of underwriting result for the Non-life business and Life and Health segment as the Company allocates certain other expenses to its

operating segments that vary with business written.

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Table of Contents

2020
Life reinsurance in force (1)
Premiums earned

Life
Accident and health
P&C (2)
Total premiums

2019
Life reinsurance in force (1)
Premiums earned

Life
Accident and health
P&C (2)
Total premiums

2018
Life reinsurance in force (1)
Premiums earned

Life
Accident and health
P&C (2)
Total premiums

PartnerRe Ltd.

Reinsurance
For the years ended December 31, 2020, 2019 and 2018
(Expressed in thousands of U.S. dollars)

SCHEDULE IV

Gross amount

Ceded to other
companies

Assumed from
other companies

Net amount

Percentage of
amount assumed
to net

— $ 18,764,660 $ 398,443,383 $ 379,678,723

105 %

— $
—
269,691
269,691 $

23,522 $
—
516,672
540,194 $

1,483,298 $
22,521
5,301,510
6,807,329 $

1,459,776
22,521
5,054,529
6,536,826

102 %
100 %
105 %
104 %

— $ 17,632,050 $ 359,376,352 $ 341,744,302

105 %

— $
—
275,923
275,923 $

22,559 $
—
375,301
397,860 $

1,427,723 $
61,998
5,157,434
6,647,155 $

1,405,164
61,998
5,058,056
6,525,218

102 %
100 %
102 %
102 %

— $ 16,349,433 $ 349,064,323 $ 332,714,890

105 %

— $
—
248,501
248,501 $

24,025 $
—
450,096
474,121 $

1,184,604 $
51,369
4,503,457
5,739,430 $

1,160,579
51,369
4,301,862
5,513,810

102 %
100 %
105 %
104 %

(1) Life reinsurance in force excludes products that do not pass risk transfer.
(2) P&C includes Specialty and U.S. health premiums.

158

Table of Contents

SCHEDULE VI

PartnerRe Ltd.

Supplemental Information
Concerning Property-Casualty Insurance Operations (1)
For the years ended December 31, 2020, 2019 and 2018
(Expressed in thousands of U.S. dollars)

Losses and Loss Expenses
Incurred Related to (2)

Affiliation with Registrant
Consolidated subsidiaries
2020
2019

2018

Deferred Policy
Acquisition
Costs

Liability for
Unpaid Losses
and Loss
Expenses

Unearned
Premiums

Premiums
Earned

Current year

Prior year

Acquisition
Costs

Paid Losses and
Loss Expenses

Premiums
Written

543,416 $ 11,395,321 $ 2,257,441 $ 5,054,529 $ 3,945,248 $

71,456 $ 1,254,067 $ 3,232,604 $ 4,825,919

640,442 $ 10,363,383 $ 2,420,009 $ 5,058,056 $ 3,716,988 $

(56,848) $ 1,306,388 $ 3,090,670 $ 5,438,807

553,535 $ 9,895,376 $ 2,062,736 $ 4,301,862 $ 3,417,366 $ (248,719) $ 1,107,760 $ 2,921,987 $ 4,592,282

(1) Includes the Company's P&C and Specialty segments.
(2) Net incurred losses include favorable loss development of $3 million during the year ended December 31, 2019, which are allocated to Corporate and Other.

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Table of Contents

ITEM 19.

EXHIBITS

EXHIBIT INDEX

Incorporated by Reference

Exhibit
Number
1.1
1.2

Exhibit Description

Amended Memorandum of Association
Bye-laws of PartnerRe Ltd.

2.1

2.2

2.3

2.4

2.5.1

2.5.2

2.6.1

2.6.2

2.7.1

2.7.2

2.8.1

2.8.2

2.9.1

2.9.2

2.9.3

2.10.1

Certificate of Designation of 6.50% Series G
Cumulative Redeemable Preferred Shares
Certificate of Designation of 7.25% Series H
Cumulative Redeemable Preferred Shares
Certificate of Designation of 5.875% Series I Non-
Cumulative Redeemable Preferred Shares
Certificate of Designation of Class B Common
Shares
Junior Subordinated Indenture dated November 7,
2006 among PartnerRe Finance II Inc., PartnerRe
Ltd. and The Bank of New York.

First Supplemental Junior Subordinated Indenture
(including the form of the CENts) among PartnerRe
Finance II Inc., PartnerRe Ltd. and The Bank of
New York

Junior Subordinated Debt Securities Guarantee
Agreement dated November 7, 2006 between
PartnerRe Ltd. and The Bank of New York

First Supplemental Junior Subordinated Debt
Securities Guarantee Agreement dated November 7,
2006 between PartnerRe Ltd. and The Bank of New
York

Indenture dated March 15, 2010 among PartnerRe
Finance B LLC, PartnerRe Ltd. and The Bank of
New York Mellon

Second Supplemental Indenture, dated as of June
19, 2019, among PartnerRe Finance B LLC,
PartnerRe Ltd. and The Bank of New York Mellon

Senior Debt Securities Guarantee Agreement dated
March 15, 2010 between PartnerRe Ltd. and The
Bank of New York Mellon

Second Supplemental Senior Debt Securities
Guarantee Agreement, dated as of June 19, 2019,
between PartnerRe Ltd. and The Bank of New York
Mellon

Deed of covenant made on 15 September 2016 by
PartnerRe Ireland Finance DAC in favour of the
account holders or participants of Clearstream
Banking S.A. and/or Euroclear Bank S.A./N.V.

Guarantee agreement by PartnerRe Ltd. of the
obligations of PartnerRe Ireland Finance DAC
under (i) the €750,000,000 1.25 per cent.
Guaranteed Notes due 15 September 2026

Agency agreement dated 15 September 2016
between PartnerRe Ltd., PartnerRe Ireland Finance
DAC and BNP Paribas Securities Services

Subordinated Debt Securities Indenture, dated as of
September 22, 2020 among PartnerRe Finance B
LLC, PartnerRe Ltd. and The Bank of New York
Mellon

Form

F-3
20-F

8-K

20-F

8-K

Original
Number
3.1
1.2

4.1

4.2

4.3

2.8

4.1

Date Filed
June 20, 1997
March 2, 2020

May 3, 2016

Filed
Herewith

SEC File
Reference
Number
333-7094
001-14536

001-14536

May 3, 2016

001-14536

May 3, 2016

001-14536

March 14, 2018

001-14536

November 7, 2006

001-14536

8-K

4.2

November 7, 2006

001-14536
61194484

8-K

4.3

November 7, 2006

001-14536

8-K

4.4

November 7, 2006

001-14536

8-K

4.1

March 15, 2010

001-14536

6-K

4.1

June 19, 2019

001-14536

8-K

4.3

March 15, 2010

001-14536

6-K

4.2

June 19, 2019

001-14536

20-F

2.10.1 March 2, 2020

001-14536

20-F

2.10.2 March 2, 2020

001-14536

20-F

2.10.3 March 2, 2020

001-14536

6-K

4.1

September 22, 2020 001-14536

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Table of Contents

Exhibit
Number
2.10.2

2.11.1

2.11.2

2.12

4.1

8.1
11.1
12.1

12.2

13.1

15.1

101.1

Exhibit Description

First Supplemental Subordinated Debt Securities
Indenture, dated as of September 22, 2020, among
PartnerRe Finance B LLC, PartnerRe Ltd. and The
Bank of New York Mellon

Subordinated Debt Securities Guarantee Agreement,
dated as of September 22, 2020, between PartnerRe
Ltd. and The Bank of New York

First Supplemental Subordinated Debt Securities
Guarantee Agreement, dated as of September 22,
2020, between PartnerRe Ltd. and The Bank of New
York

Description of Securities

Form of Indemnification Agreement between
PartnerRe Ltd. and its directors
Subsidiaries of the Company
Code of Business Conduct and Ethics
Certification of Jacques Bonneau, Chief Executive
Officer, as required by Rule 13a-14(a)/15d-14(a) of
the Securities Exchange Act of 1934
Certification of Nicolas Burnet, Chief Financial
Officer, as required by Rule 13a-14(a)/15d-14(a) of
the Securities Exchange Act of 1934
Certifications of Jacques Bonneau, Chief Executive
Officer, and Nicolas Burnet, Chief Financial
Officer, as required by Rule 13a-14(b) or 15d-14(b)
of the Securities Exchange Act of 1934
Consent of Independent Registered Public
Accounting Firm
The following financial information from PartnerRe
Ltd.’s Annual Report on Form 20–F for the year
ended December 31, 2020 formatted in Inline
XBRL: (i) Consolidated Balance Sheets at
December 31, 2020 and 2019; (ii) Consolidated
Statements of Operations and Comprehensive
Income for the years ended December 31, 2020,
2019 and 2018; (iii) Consolidated Statements of
Shareholders’ Equity for the years ended December
31, 2020, 2019 and 2018; (iv) Consolidated
Statements of Cash Flows for the years ended
December 31, 2020, 2019 and 2018; (v) Notes to
Consolidated Financial Statements and (vi)
Financial Statements Schedules.

104.1

Cover Page Interactive Data File (formatted as
Inline XBRL and contained in Exhibit 101)

Incorporated by Reference

Form

6-K

Original
Number
4.2

Date Filed

SEC File
Reference
Number

Filed
Herewith

September 22, 2020 001-14536

6-K

4.3

September 22, 2020 001-14536

6-K

4.4

September 22, 2020 001-14536

10-Q

10.16

November 4, 2009

001-14536

X
X
X

161

Table of Contents

SIGNATURE

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized
the undersigned to sign this annual report on its behalf.

PARTNERRE LTD.

By:
Name:
Title:

/S/ NICOLAS BURNET

Nicolas Burnet

Executive Vice President and Chief Financial Officer

162