Bermuda-based PartnerRe reported net income of $77.7 million for the first quarter ended March 31, an increase of 28 percent over the same period last year.

Operating earnings available to common shareholders, excluding net realised investment gains, were $62.8 million, compared to $61 million for first quarter 1997.

PartnerRe President and Chief Executive Officer Herbert Haag said operating results were in line with expectations.

"The first quarter includes the important January renewal season,'' he said in a press statement. "Market conditions remain extremely competitive and, therefore, we are not pursuing volume growth at the present time.

Nevertheless, we are already seeing benefits to the `client partner' concept which we recently introduced in promoting our cross-selling strategy and this will serve us well in the future.'' Diluted book value per common share was $30.11 at March 31 compared to $29.57 at December 31.

The company wrote net premiums of $268.8 million for the first quarter 1998, compared to $130.3 million in first quarter 1997. The 1997 first quarter amounts do not include the financial results of Paris-based Societe Anonyme Francaise de Reassurances (SAFR), which PartnerRe bought in July last year for about $900 million.

PartnerRe had total revenues of $225.7 million, made up of $168.3 million of net earned premium, net investment income of $40.1 million, and net realised investment gains of $17.1 million.

In 1997 first quarter the company had revenue of $72.6 million, made up of $51.6 million of net earned premium, net investment income of $21.3 million and net realised investment losses of $300,000.

"Our underwriting result was strong with a combined ratio of 80.6 percent,'' Mr. Haag said. "The absence of other significant loss events in the period mitigated the effect of the severe Canadian ice storm, where we incurred an estimated $20 million loss.'' The company also relocated executive vice president Graham Dimmock to Paris at the end of March to work with SAFR's chairman Herve Cachin. Robert MacGovern has joined PartnerRe as the new chief investment officer.

"We are committed to our disciplined underwriting philosophy and are continuing to build an integrated group operation through the new organisational structure,'' Mr. Haag said. "Consequently we are focusing our efforts on maintaining discipline and identifying creative sources for future profitable growth.'' PartnerRe provides multi-line reinsurance from Bermuda and through its SAFR subsidiary in Paris.