quarter ended September 30, a 30 percent increase over the same period last year.

The company made net income for the nine months of $191.8 million compared to $182.7 million in 1996. The third quarter results include for the first time the results from Paris-based Societe Anonyme Francaise de Reassurances (SAFR), which PartnerRe bought in July.

PartnerRe wrote net premiums of $142.7 million during the third quarter, compared to $23.7 million in the 1996 third quarter. Net premiums excluding SAFR decreased by four percent, however. President and chief executive officer Herbert Haag said the two companies were integrating "smoothly'' with results as expected. "Our combined loss and expense ratio of 79.2 percent for the third quarter is naturally higher than the combined ratio of 31.5 percent for the third quarter of 1996 and other prior quarters due to the inclusion of SAFR's multi-line business,'' he said.

"With the exception of severe flooding in Poland, the Czech Republic and Eastern Germany in July 1997, for which the company has been advised of losses amounting to $12.5 million, no further catastrophic events affected the quarter's results.'' With the SAFR acquisition PartnerRe's clients have expanded to about 800 from 206 insurance companies.

"Simultaneously, we have broadened our products from our catastrophe specialisation to include all lines of business,'' he said. "This new and enhanced profile will allow us to build a balanced and highly diversified business with strong continuing relationships.''