to $60.7 million, compared to $68 million in the same period last year.

Herbert Haag, President and Chief Executive Officer, described the results as "solid'' considering the fall in rates being set in a competitive reinsurance market. He predicted the trend will continue during the second quarter.

"We are now concluding our April 1 renewals with activity primarily in Japan and the United States,'' he stated in a press release. "While there has been some softening of rates in North America, by far our largest market, we remain satisfied with the level of pricing we have achieved. Outside of North America, prices have continued to fall and PartnerRe will likely feel the effect of the current competitive climate in catastrophe reinsurance.

"However, our approach has been, and continues to be, to promote disciplined and responsible pricing. Therefore, we expect to see a reduction in the volume of business written in the second quarter, part of which can be attributed to the strength of the US dollar.'' PartnerRe operating earnings, excluding net realised investment losses, for the first quarter 1997 were $61 million, compared to $62.9 million in the same period last year. Net realised investment losses for the first quarter were $300,000, compared to gains of $5.1 million in 1996.

Total assets were $1,594.7 million at March 31. Shareholders' equity was $1,400.9 million.

PartnerRe's gross and net premiums were $130.3 million for the first quarter, compared to $128.3 million during the same period last year. Total revenues for the first quarter were $72.6 million, made up of $51.6 million of net earned premium, net investment income of $21.3 million and net realised investment losses of $300,000.

During the same period last year revenues were $81 million, made up of $54 million of net earned premium, net investment income of $21.9 million and net realised investment gains of $5.1 million.

Mr. Haag said premiums written during the quarter increased from a year ago due to PartnerRe's participation in The California Earthquake Authority insurance programme. Total premiums for the two-year programme, which began on January 1, are $31.6 million, of which half is being recorded during 1997.

PartnerRe is providing $109 million of coverage in the $2 billion reinsurance layer.

Haag pleased with results He said the insurance programme for homeowners in the state, in which PartnerRe participated in the reinsurance layer, offset the reduction in premiums due to competitive pricing and the strengthening of the US dollar relative to most European currencies.

"The first quarter premium levels were very much in line with our expectation,'' Mr. Haag stated. "Our very low loss ration of 5.8 percent is reflective of our continued underwriting discipline and few catastrophic events in the quarter, which included winter storms and flooding in the United States and an earthquake in China. Our loss provision for the quarter was $3 million.'' PartnerRe also reported that the previously announced acquisition of Societe Anonyme Francaise de Reassurances (SAFR) from Zurich-based Swiss Reinsurance Co. will be completed by mid-year. The $950 million purchase in cash and shares recently received the necessary clearance under US antitrust laws.

Through the transaction Swiss Re will increase its stake in PartnerRe to about 22 percent from 11 percent.

PartnerRe provides catastrophe reinsurance to insurance companies. Reinsured risks include windstorms, earthquakes, floods, fires and explosions. The company gets 59 percent of its premiums from North America, 20 percent from Asia, Australia and New Zealand, 16 percent from Europe, four percent from Latin America and the Caribbean, and one percent from Africa.