PartnerRe Ltd., a Bermuda insurance and reinsurance company, last night reported a net loss of $288.7 million for the third quarter, after suffering record losses from Hurricane Katrina and other catastrophes.

PartnerRe said unprecedented catastrophe activity left the company with the highest level of losses in its 12-year history.

PartnerRe?s loss was equal to $5.48 a share compared to net income a year ago of $1.46 a share based on earnings of $83.2 million in the third quarter, 2004.

Overall, Bermuda?s insurance and reinsurance industry is expected to pay out up to $10 billion of Katrina?s insurance bill. The August 29 storm is expected to be the most expensive ever, costing up to $60 billion.

PartnerRe said its results include about $510 million in estimated losses from Hurricane Katrina, a further $65 million in estimated losses from the Central European floods, and approximately $35 million in estimated losses from Hurricane Rita, a less powerful hurricane that hit the Gulf Coast region within a month of Katrina. All estimates are before tax and take into account the premiums due to be reinstated on contracts with existing customers.

PartnerRe chief executive Patrick Thiele (pictured) said: ?These events have led to the largest quarterly loss load experienced by our company in its 12-year history but said the company?s capital position was still stronger than it was a year ago. Shareholders? equity at the end of the quarter stood at $3.084 billion compared to $3.351 billion at the end of 2004.

PartnerRe?s loss was partly offset by a net, after-tax realised gain on investments of $47.8 million. The operating loss for the quarter, which excludes this gain, was $345.2 million, or $6.36 a share. This compares to operating earnings of $57.3 million, or $1.07 a share for the third quarter of 2004.

Operating income or loss, which is the measure most commonly followed by those tracking the insurance industry, was calculated after PartnerRe?s payment of preferred dividends.

The company, like many in the industry, expects pricing to firm on new policy renewals. This includes aviation, marine, energy, property and particularly catastrophe insurance and reinsurance. And other types of policies will, at a minimum, see stable pricing trends, Mr. Thiele said.

In the third quarter, PartnerRe sold $770.8 million in net premiums, which excludes any reinsurance protection the company bought. Reinsurance, effectively insurance for insurers, is bought to help spread the risk in policies insurers sell to individuals and corporations. PartnerRe?s quarter premium sales were four percent lower than the year-ago period.

PartnerRe also announced a quarterly dividend of 38 cents a share to investors who hold its stock by November 21. The dividend is to be paid on December 1.