Low frequencies of catastrophic and large losses in the first three months of the year allowed PartnerRe Ltd. to kick off the first quarter earnings season with net income of $193.2 million, a 73 percent improvement over the $111.4 million profit recorded in the same period in 2005.

Broken down, earnings were $3.21 per share in the 2006 first quarter compared to $1.84 per share in the first quarter 2005.

PartnerRe also said that property reinsurance rates were strong in the US for the April 1 renewal period, contrasting with global reinsurance rates which have remained highly competitive.

Operating earnings for the first quarter of 2006 were $133.7 million or $2.32 per share compared to operating earnings of $67.6 million, or $1.21 per share, for the first quarter of 2005.

PartnerRe president and chief executive officer Patrick Thiele said: ?Our results this quarter were favourably impacted by a low level of large loss activity as shown by a 21 percent annualised operating return on beginning shareholders? equity.

In addition, we continue to achieve positive results and generate substantial realised gains in our equity portfolios, leading to an annualised net income return on equity of 29 percent.

?Our GAAP book value per share increased 3.5 percent in the quarter to $46.15, despite the negative impact of rising interest rates on the market value of our bond portfolios.

?Rising interest rates tend to restrain growth in book value, as GAAP recognises interest rate impacts only on assets and not on liabilities.

Nevertheless, we remain committed to growing GAAP book value at an average of ten percent per year, and to building shareholder value over the long term.?

?Global reinsurance markets continue to present a diverse picture,? Mr. Thiele said.

?Competition remains significant in markets and lines not affected by 2005 storms and we will deploy our capital cautiously within those markets.

?Conversely, US property pric-ing continued to accelerate in the April 1 renewals and we expect to respond to that trend with increased capacity.

?As we have consistently demonstrated, PartnerRe has the franchise, the balance sheet, the broad product and geographic diversification, and the risk appetite and risk management processes to participate in the opportunities that the market has to offer.

?We will continue to allocate our capital to the most profitable areas, while maintaining the balance in the high quality and diversified book of business that we have built over the last seven years.?