PartnerRe saw its profits fall by more than $60 million for the fourth quarter 2007.

The Bermuda-based insurance company's net income was down at $180.6 million or $3.04 per share for the fourth quarter from $242.7 million, or $4.03 per share for the same period in 2006.

But, PartnerRe also had to write down its total investment of $76.2 million in ChannelRe due to anticipated mark-to-market losses on the credit derivative portfolio of the bond reinsurer in which PartnerRe has a stake, which it expected to incur during the three-month period ended December 31, 2007.

However, operating earnings earnings for the fourth quarter of 2007 were $257.4 million or $4.55 per share. This compares to operating earnings of $210.1 million, or $3.61 per share, for the previous year's fourth quarter.

PartnerRe Ltd. president and CEO Patrick Thiele said: "We had another excellent year in 2007. We closed the fourth quarter with strong results despite challenging capital markets conditions, and we enter 2008 in a position of strength and stability.

"We grew our book value per share by 21 percent for the year, and over a five-year cumulative period achieved 15-percent growth in book value on a compounded annual basis, in addition to an average annual dividend yield of 2.3 percent over the five-year period.

"In addition, we recently announced a seven percent increase in our common stock dividend, marking the 15th consecutive year that we have increased our annual dividend."

Net premiums written for the fourth quarter 2007 were $714.4 million, compared to $721.3 for the fourth quarter of 2006.

Total revenues for the quarter were $1.1 billion compared to $1.2 billion for fourth quarter of 2006.

During the fourth quarter of 2007, the company repurchased 1,499,687 common shares at a total cost of approximately $122.7 million, increasing its share repurchase authorisation to five million shares in November 2007, with approximately 4.5 million common shares remaining under the current repurchase authorisation.

Non-life net investment income of $127 million and a technical result of $1 million were reduced by net realised investment losses and interest in losses of equity investments, both non-operating items, as well as other income/loss, totaling $99 million. This amount includes a non-operating charge of $76 million reflecting ParterRe's previously announced write-down of its total investment in ChannelRe.

Mr. Thiele added: "Following our strong performance in 2007, we were able to maintain priced profitability on 2008 business at good levels, above our long-term operating return on equity goal of 13 percent over the cycle, during the January 1 renewals.

"We held our production flat on a year-over-year basis despite increased competition, declining prices in most major markets and most lines of business, and continued retention of premium by cedants."