PartnerRe Ltd. saw its fourth quarter income rise 37 percent despite a ?challenging year in terms of the number of natural catastrophes?.

The Bermuda-based global reinsurer reported net income of $143.7 million or $2.54 per share, up from $104.5 million or $1.84 per share in the fourth quarter of 2003. Results surpassed the average analyst estimate of $1.93, as measured by Thomson First Call.

Operating earnings for the fourth quarter of 2004 were $120.8 million or $2.25 per share compared to $90.3 million or $1.67 per share for the fourth quarter of 2003.

For the year ended December 31, 2004, net income was $492.4 million or $8.71 per share up from 2003 when net income was $467.7 million or $8.13 per share.

Operating earnings were $392.8 million, or $7.27 per share in 2004 compared to the $358.3 million or $6.65 per share in 2003.

In PartnerRe?s earnings statement yesterday, president and chief executive officer Patrick Thiele said the quarter allowed the company to ?close out 2004 with record results that are well ahead of our stated plan?.

?Despite facing a challenging year in terms of the number of natural catastrophes and magnitude of losses associated with them, PartnerRe performed exceptionally well, achieving a full year operating return on equity of 17 percent and growing book value by 20 percent to year-end book value per share of $50.99.

?Our achievements in 2004 underscore the strength of the company both financially and operationally,? he said.

Net premiums written for the fourth quarter 2004 were $683 million, a 12 percent decrease over the comparable period in 2003.

Total revenues for the quarter were essentially flat with the fourth quarter of 2003 at $1.1 billion, including $942.3 million of net premiums earned; net investment income of $80.0 million an increase of 9 percent and net realised investment gains of $38.6 million.

For the year ended December 31, 2004, net premiums written were $3.9 billion, a seven percent increase over the full year 2003.

Total revenues for 2004 were $4.2 billion, including $3.7 billion of net premiums earned, net investment income of $298 million, and net realised investment gains of $117.3 million. Total revenues for 2003 were $3.9 billion.

Book value per common share at December 31, 2004 was $50.99 on a fully diluted basis, compared to $42.48 per share at December 31, 2003.

Separately, the Company announced today that its Board of Directors has increased the annual common share dividend by 12 percent to $1.52 per share from $1.36 per share.

?Our results this year clearly demonstrate the excellent level of portfolio diversification that we have achieved,? Mr. Thiele said.

?While there were variations in results across operating units, overall we achieved excellent underwriting profitability with a Non-Life combined ratio of 94.3 percent.

?Our Worldwide Specialty operations posted an exceptional 71.2 percent technical ratio on $1.5 billion in net premiums earned for the year,? Mr. Thiele continued.

?These outstanding results helped to offset results in both our US and Global Property & Casualty operations, which were impacted by reserve strengthening and the significant natural catastrophes of the third and fourth quarters.?

Mr. Thiele added that investment operations also added significant value during the year.

After an ?exceptional year in 2004?, Mr. Thiele said PartnerRe?s January 2005 renewal season was mixed in terms of ?pricing and potential future profitability?.

?While the US was rationally competitive with pricing in most lines at reasonable profitability levels, European and international markets were somewhat more competitive than expected,? Mr. Thiele said.

?Our financial strength and franchise allowed us to gain a fair amount of new business. However, many customers increased their retentions and we also reduced our participation in those instances where competitive pressures pushed prices and terms and conditions below our standards.

?As a result, we underwrote a diversified portfolio priced to achieve profitability above our long-term objective, but we expect total consolidated net written premiums to be flat to down 5 percent in 2005, barring unusual market conditions.?