completed the more than $900-million purchase of French multi-line insurer, Societe Anonyme Francaise de Reassurances (SAFR).

The company said yesterday that SAFR was purchased for FRF 5.4 billion (US$911,304,000 at yesterday's price), involving cash and shares.

PartnerRe also confirmed that the $250-million offering of 8% Series A Cumulative Preferred shares, which provided a portion of the acquisition financing, has also closed successfully.

In addition, Swiss Re increased its stake in PartnerRe to 21.8 percent, from 11.1 percent in the deal.

It was announced in February that Swiss Re, the second largest reinsurer in the world, would buy all of SAFR and then sell the company to PartnerRe, in a deal at that time valued at $950 million.

PartnerRe president and CEO, Herbert N. Haag, said that he was pleased the transaction closed "quickly and smoothly.'' He said, "We have already started to work on jointly positioning the combined capabilities of the two companies, and we are confident that together (PartnerRe subsidiary) Partner Reinsurance Co. and SAFR will provide substantially increased value for our clients and shareholders.'' Paris-based SAFR, founded in 1884, is a significant European direct reinsurer with assets estimated at about $2.5 billion and $750 million equity. PartnerRe has assets of $1.5 billion and $1.4 million equity. In February, Swiss Reinsurance Co., the world's second largest reinsurer after Munich Re of Germany, said it would buy the 78.4 percent of SAFR it did not already own, and then sell the company to PartnerRe.

Under the terms of the agreement, SAFR's purchase price consists of about $800 million in cash and 6.45 million PartnerRe common shares. Swiss Re will raise its stake in PartnerRe to 21.8 percent from 11.1 percent and will limit voting rights to a 30 percent maximum.

While there may be a modest dilution to operating earnings per share in 1997, PartnerRe said it anticipated the transaction will contribute to the company's earnings and growth in 1998 and beyond.

Described by PartnerRe as having a fine reputation and high solvency, SAFR, which writes 93 percent non-life and seven percent life business, posted profits of $57 million for 1995, the latest published annual results.