sent second quarter earnings at PartnerRe Ltd., the Bermuda reinsurer, up 154 percent in the last year. The company said that improved market conditions would continue to strengthen future earnings.

Net income including realised gains and losses was $51.5 million, or 92 cents per share, for the three-month period ended June 30. Income during the second period of 1999 was $20.3 million, or 28 cents per share.

The figures brought net income for the first six months of 2000 to $74.8 million, or $1.29 per share, compared to $89.2 million, or $1.46 per share, for the first six months of 1999.

PartnerRe's operating earnings, which excludes net realised investment gains and losses, were $53.8 million for the period. Last year operating earnings were $17.6 million during the second quarter. For the six months ended June 30, operating earnings were $110.9 million, compared to $79.4 million for the same period in 1999.

At June 30, 2000, total assets were $7.4 billion and shareholders' equity was $1.9 billion. Diluted book value per common share was $32.95 at June 30, 2000.

The Company also announced that the Board of Directors declared a regular quarterly dividend of $0.26 per common share, payable on September 1 to common shareholders of record on August 22. Net premiums written by PartnerRe were $345.4 million for the three months ended June 30, 2000, compared to $301.8 million for the 1999 second quarter, an increase of 14.4 percent.

Total revenues for the second quarter of 2000 were $422.6 million, with $351.3 million of net premiums earned, net investment income of $78.9 million and net realised investment losses of $7.7 million. Comparable 1999 second quarter revenues were $400.2 million, with $326.0 million of net premiums earned, net investment income of $77.7 million and net realised investment losses of $4.0 million.

"The difficult 1999 underwriting year continues, as expected, to influence our performance,'' said Herbert N. Haag, PartnerRe's president and CEO.

"Despite a number of larger individual losses incurred during the quarter, the absence of new major catastrophes has resulted in significant improvements over the comparable 1999 period.'' The results follow an announcement by PartnerRe last week that the sale of its subsidiary PartnerRe Life Insurance Company in the United States had been completed. The sale included PartnerRe Life U.S. and its subsidiaries Republic-Vanguard Life Insurance Company, Investors Insurance Corporation and Investors Marketing Group, Inc. PartnerRe expects to recognise an after-tax gain on the transaction of approximately $11 million in the third quarter of 2000.

"The capital released from this transaction will be re-deployed to support our increasingly successful U.S. property & casualty reinsurance business, which is currently growing at an annual rate of over 30 percent,'' said Mr.

Haag.

"Our on-going strategic initiatives in the U.S. continue to focus on becoming one of the most successful non-life reinsurance companies in this enormous market.'' PartnerRe shares gained $1.375 on the NYSE yesterday to close at $41.9375.