insurers last week as PartnerRe Ltd. reported its third quarter profits dropped 21 percent from $70 million to $5 million.

For the three months ended September 30, 1998 net income was $55.2 million compared to $70.7 million for the third quarter of 1997. Net income per diluted share for the three months ended September 30, 1998 was $0.90 compared to $1.14 for the third quarter of 1997.

But the company said net income for the nine months ended September 30, 1998 was $202.9 million or $3.29 per diluted share, up 5.7 percent from $191.8 million, or $3.41 per share, for the nine months of 1997.

But company officials said they were pleased with the results, which remained strong despite the previously announced $25 million loss for hurricanes in the third quarter.

President and chief executive officer Herbert N. Haag said: "With strong net income and growth in book value, PartnerRe has emerged stronger than ever from a quarter marked by significantly increased loss activity and unprecedented turbulence in the world's financial markets. "Our underwriting and financial discipline has resulted this quarter in a 4.8 percent increase in book value and in net income of $55.2 million, despite the previously announced losses of $25 million ($20.1 million after tax) from Hurricane Georges and other events.'' Mr. Haag added: "Our primary focus for the final quarter of 1998 is the important January 1 renewals. Our organisation, strengthened by the acquisition of Winterthur Re which is expected to close before year-end, has a worldwide presence, specialised underwriting skills and client relationships matched by very few other reinsurers. Our close coordination throughout the Group will result in interesting opportunities, although we shall be more determined than ever not to compromise our underwriting standards and profitability when renewing the business for 1999.'' PartnerRe Ltd. provides multi-line reinsurance to insurance companies through its subsidiaries, Partner Reinsurance Company Ltd. in Bermuda, SAFR in Paris and PartnerRe US in New York.

PartnerRe nine-month earnings up Risks reinsured include catastrophe, property, automobile, marine, space and aviation, credit/surety, miscellaneous casualty lines and life/health.

For the three months ended September 30, 1998, operating earnings available to common shareholders excluding net realised investment gains ("operating earnings'') were $42.8 million, or $0.76 per share, compared to $63.2 million, or $1.09 per share, for the third quarter of 1997.

For the nine months ended September 30, 1998, operating earnings were $170.5 million, or $2.98 per share, compared to $185.5 million or $3.38 per share, for the same period in 1997. Net realized investment gains after tax for the 1998 nine-month period were $17.5 million, compared to $3.0 million for the 1997 nine-month period. At September 30, 1998, total assets were $3.8 billion and shareholders' equity was $2.1 billion. Diluted book value per common share increased to $32.66 from $29.57 at December 31, 1997.

Net premiums written were $142.7 million for the three months ended September 30, 1998, the same as for the 1997 third quarter. Total revenues for the third quarter of 1998 were $218.7 million with $168.9 million of net premiums earned, net investment income of $43.1 million and net realized investment gains of $6.4 million. Comparable 1997 third quarter revenues were $221.3 million, with $177.4 million of net premiums earned, net investment income of $38.8 million and net realized investment gains of $4.7 million. For the first time, comparative 1997 results include SAFR.