Bermuda-based Partner Re has lost nearly $100 million off its profits after being hit by a string of natural disasters.

The company blamed the poor third quarter results on lower profits on earthquakes in Turkey and Taiwan, Hurricane Floyd in the US and Caribbean and Typhoon No 18 (Bart) in Japan.

The company's net income for the nine months ended September 30 was $105 million, while for the same period last year the company made $203 million.

Aggregate losses in the third quarter for these natural disasters was $39.2 million pre-tax, $30.3 million after tax.

"Our third quarter 1999 net income has been affected by the large number of sizable insured catastrophes that occurred around the world,'' said Herbert Haag, the company's president and chief executive officer.

"The losses incurred from this quarter's destructive earthquakes and tropical storms were in line with our risk analysis and continue to validate our service to the insurance industry.'' The company in its release of the figures focused on the positive side and said for the three months ended September 30 this year, operating earnings available to common share holders, excluding losses and investment gains were $40.7 million or 78 cents a share.

Last year this figure was $42.8 million or 76 cents a share.

For the three months ending in September, the company's net income was $15.8 million compared to $55.2 million for the third quarter of 1998 - a huge drop of 71 percent.

According to the company the decrease in net income for the quarter reflects the impact of the catastrophe losses and after tax realised investment losses of $29.9 million or $0.57 per share due to the company's planned restructuring of the investment portfolio.

Diluted net income per share for the three months was $0.21 compared to $0.90 for the third quarter of 1998.

For the nine months period operating earnings were $120.1 million or $2.224 per share compared to $170.5 million or $2.98 the year before. Net income for the same nine months fell from $3.29 last year to $1.68 this year per diluted share. Partner Re's total assets stand at $7.7 billion and shareholder's equity is $1.95 billion. Diluted book value per common share was, at the end of September, $32.63. In the third quarter the company repurchased 1,036,900 shares.

Mr. Haag added: "The realised investment losses of $31.6 million during the quarter are the result of our planned restructuring of the investment portfolio.

"We are confident that, from an economic standpoint, our investment initiatives will provide enhanced long term returns.'' Mr. Haag also said: "We enter the important January 1 renewal period with guarded optimism.'' And he added that market recovery would be a gradual process with some improvements in certain segments and markets.

" We are encouraged by initial signals and commitments from industry participants to apply disciplined pricing for the year 2000.

"This positive development is the basis for the improvement in reinsurance fundamentals.

"We believe strong client relationships, underwriting expertise and financial security will emerge as key requirements in the selection of reinsurers and Partner Re is ready and able to meet those needs.'' Partner Re also announced that the board of directors declared a regular quarterly dividend of 25 cents a share which will be payable on December 1, 1999 to common shareholders of record on November 19, 1999 with the stock trading ex-dividend from November 17 this year.

Herbert Haag: Partner Re's president and CEO says he's entering the January renewal period with `guarded optimism'.