Despite the Northridge earthquake, and a tough investment climate, Bermuda-based catastrophe reinsurer PartnerRe Holdings Ltd. reports yearly profit of $146.1 million or $2.64 per share.

Fourth quarter profit was $39.8 million or 72 cents per share.

"We are gratified with the recognition of PartnerRe by the global insurance and broker community as one of the world's financially strongest reinsurers in the world in our specialty field,'' said Mr. Herbert Haag, president and CEO.

Full year operating earnings, excluding net realised losses on the sale of investments, were $166.2 million or $2.99 per share while net realised losses on the sale of investments were $20.1 million or 35 cents a share, of which $8.6 million or 15 cents per share were in the fourth quarter, according to a release from the company.

"By all measures, 1994 presented a very difficult investment climate, During the year, the company realised investment losses as a consequence of repositioning the portfolio,'' said Mr. Scott Moore, senior vice president and CFO.

PartnerRe was incorporated August 24, 1993, and commenced business in November of that year making an annual comparison not possible.

At December 31, 1994 assets were $1.1 billion, a 13.3 percent increase from a year earlier, while shareholders' equity rose about eight percent from $959.4 million to $1.04 billion.

Premiums written for the year were $184.1 million -- far exceeding the company's target -- and $5.3 million for fourth quarter.

Expenses for 1994 were $60.3 million.

For the fourth quarter, operating income, excluding net realised losses from the sale of investments, was $48.4 million or 87 cents per share.

Net investment income, excluding net realised losses on the sale of investments, was $55.3 million for the year and $15.9 million for the fourth quarter.

The company also announced a regular dividend of 10 cents per common share payable March 1 to shareholders of record February 15.