Bermuda-based reinsurer PartnerRe announced this week that although net income rose 3.3 percent during the second quarter, Tropical Storm Allison and other storms in the United States hurt the company's financial results.

Operating income for the quarter was $47.5 million, or 92 cents per share, falling short of Wall Street's average estimate of $1.12 a share.

Last year, the company's operations earned $53.8 million, or $1.07 per share during the second quarter.

The storms generated losses of approximately $10 million more than expected during the three months ended June 30, the PartnerRe said. The reinsurer also received incremental claims of approximately $5 million in life insurance, primarily due to a late notice of loss for a previously-cancelled contract

But because of PartnerRe's income from investments and other sources unrelated to its core operations, the company realised post-tax gains of $608,000 (it lost $7.3 million during the same period a year before). The gains pushed net income from $51.5 million during the second quarter of 2000 to $53.2 million for the second quarter of this year.

This quarter's figures put PartnerRe's net income for the first six months of the year at $149.1 million. During the first half of last year, the company earned $74.8 million.