Bermuda-based reinsurer Partner Re announced yesterday that it anticipated its fourth quarter earnings to be below analysts' expectations.

And it attributed the change in forecast due to losses being more than the company originally predicted for 1999 and 2000 periods.

The company, which is based in Pitts Bay Road, said it expected return on equity figures to be nearer 13 percent for 2001.

Patrick Thiele, President and CEO of PartnerRe, said: "While loss reserves for the 1999 underwriting year were set appropriately, based on data available at the time, new information received from our clients leads us to believe that ultimate losses will exceed original projections.

"This increase in loss estimates for business written in 1999 and 2000 is consistent with PartnerRe's practice of establishing prudent reserve levels based on the most current available information. As a result of this action, fourth quarter earnings will fall below our initial expectations.'' But he added that despite the change, in general the outlook was positive for his company.

Partner Re said that it anticipates fourth quarter 2000 operating earnings available to common shareholders to be in the range of $0.50 to $0.55 per share on a fully diluted basis.

The company said that based upon its continual evaluation of available data, it had increased reserve levels for business written in 1999.

And it said the original loss estimates for the 2000 underwriting year were based in part on trends and results for prior periods, including 1999. The company also increased the expected loss ratios and corresponding reserve levels for the 2000 underwriting year.

It added that the effect of such adjustments was to increase the loss ratio for each of these two years by approximately one percentage point.

Mr. Thiele added: "Notwithstanding our cautious view for the business written over the last two years, we are encouraged by more recent developments. The trends overall are positive.

"Early signs indicate that the January 1 renewals have generally met with our expectations, and we remain optimistic that we will be able to achieve operating earnings in 2001 commensurate with a return on equity of at least 13 percent, absent major catastrophes or unusual loss activity.'' The company plans to release fourth quarter 2000 earnings after regular market trading on February 12, 2001.

Partner Re's stock closed trading at $52 1/8, up 3.9 percent or $1 15/16. For the nine months ended September 30, 2000, revenues fell 3 percent to $1.15 billion. Net income applicable to common stock increased by 23 percent to $110.7 million. The revenues reflected the increased net realised investment losses and net income reflected the decreased losses and loss expenses and life policy benefits.