Bermuda-based property catastrophe reinsurer PartnerRe's net income for the first nine months to September 30 improved to $182.7 million, some 18 percent ahead of last year. Net income for the third quarter was $54.4 million (1995: $45 million).

The company is projecting market conditions will remain very competitive. It is already focusing on January 1 renewals, which includes the commencement of the California Earthquake Authority programme for which the company has a leading position.

Herbert N. Haag, PartnerRe president and CEO said, "Our focus on catastrophe reinsurance and our disciplined approach to underwriting only adequately rated programmes continue to produce substantial profits and growth in equity for PartnerRe in 1996.

"In the absence of significant reinsurance losses from catastrophe events, we have seen market conditions soften in many parts of the world. We are committed to maintaining a quality reinsurance portfolio and current market conditions are not conducive to business expansion at this time.

"Therefore for the 1997 renewals, we will restrict our underwriting limits to accommodate only those risks which meet our technical requirements.'' Mr. Haag said of the third quarter results: "While written premiums declined $3.5 million, PartnerRe continued to produce strong earnings, with third quarter operating income increasing by 38.3 percent. Despite another active storm season in 1996, PartnerRe's loss burden continues to be modest.'' He said, "Catastrophe events during the three-month period included Hurricanes Fran and Hortense in the Southeastern United States and Caribbean, Typhoon Sally and other storms and flooding in China and hail storms in Canada. Our loss provision for the quarter was $9.2 million.'' Gross and net premiums written were both $23.7 million for the third quarter, compared to $27.2 million for the same period the year before.

Total revenues for the three month period was $71.3 million (1995: $81 million), comprising $53.9 million of net premiums earned (1995: $57.8 million), net investment income of $22.1 million (1995: $20.9 million) and net realised investment losses of $4.6 million (compared to 1995 gains of $2.4 million).

Assets at September 30 stood at nearly $1.5 billion, with shareholders' equity rising to $1,341,504,000 or $27.78 per common share (1995: $25.79).

The combined ratio for the nine month period was 25.8 percent, after a loss ratio that shrunk to just 11 percent, compared to 32.1 percent for the same nine month period in 1995.

PartnerRe's board has authorised a repurchase of an additional 7.5 million of its common shares or common share equivalents, through the open market or through private negotiations, as market conditions permit.

The board has also declared a quarterly dividend of 15 cents per share, payable December 2 to common shareholders of record November 18.

Meanwhile, 1.2 million Class B Warrants which were available for vesting on the November 4 anniversary date did not vest and therefore have been forfeited. Prior period per share amounts have been restated to reflect the revised number of Class B Warrants outstanding.

Mr. Haag emphasised: "Capital management is an important component of managing reinsurance cycles and PartnerRe continually evaluates its capital needs relative to exposures.

trading on the New York Stock Exchange yesterday.

Haag