yesterday reported earnings of $17.1 million for its first full quarter of operations.

The company, which was formed last August and began operating in October, saw assets increase from $975.5 million at December 31 to $1.1 billion.

Liabilities grew from $16 million to $117.4 million.

It also said it had increased its estimate for losses from the Northridge earthquake in California from $10 million to $19.9 million.

Earnings increased from 12 cents per share to 37 cents per share. Operating earnings were $20.4 million.

Net premiums written totaled $111.6 million. Earned premiums were $33.8 million while net investment income was $9.9 million although the company took a loss of $3.3 million on the sale of investments.

The only loss incurred in the period was from the California earthquake, which totaled $19.9 million. Total expenses were $23.3 million.

PartnerRe president Mr. Herbert Haag said the increase in the loss estimate from the earthquake was caused by changes in clients loss estimates and consisted of all losses reported to date plus a $4 million incurred but not reported provision.

He said premiums written by the company since its inception now totaled $127 million, of which 43 percent were written in North America, 34 percent in Europe and nine percent from Australasia.

"In those markets where PartnerRe has written business, the company has been viewed favourably as bringing much need capacity and stability,'' he said.

Yesterday, the company's shares closed up $1.75 to $20.75 on the New York Stock Exchange.

The company, which held its annual general meeting on Wednesday, declared a dividend of 10 cents a share payable on June 1.