compared to the year before, after the Bermuda reinsurer was spared the knock-on effects of the worst of the catastrophes at the beginning of the year.

The three months ended March 31, 2001, saw net income was $95.9 million, or $1.76 per share. This includes net (after tax) realised investment gains of $7.5 million and a non-recurring adjustment of $27.8 million relating to the adoption of new accounting rules.

Net income for the first quarter of 2000 was $23.3 million, or $0.36 per share.

Patrick Thiele, President & Chief Executive Officer of Partner Re, said: "Overall, we are encouraged by our first quarter results, which are consistent with our goal of at least 13 percent annual return on beginning common shareholders' equity, barring major catastrophes.

"Although operating earnings are modestly down over the first quarter 2000, they represent a significant improvement over 2000 on an annualised basis.

"While a number of headline-making loss events occurred during the first quarter, including earthquakes in India, Japan, El Salvador and Seattle, and the destruction of the offshore oil rig Petrobas 36, these events did not result in major losses for Partner Re.

"Nevertheless, events such as these serve as a reminder of the type of risks facing our clients and the important support that we provide.'' For the three months ended March 31, 2001, operating earnings available to common shareholders, excluding net realised investment gains (operating earnings), were $55.6 million, or $1.08 per share on a fully diluted basis.

This compares to operating earnings of $57.1 million, or $1.14 per share, for the first quarter of 2000.

At March 31, 2001, total assets were $6.2 billion and shareholders' equity was $2.1 billion.

Book value per common share was $35.59 on a fully diluted basis at March 31, 2001, compared to $35.54 per share at December 31, 2000.

Mr. Thiele said the company's premium increase of 36 percent over the first quarter of last year reflects an improving pricing environment, and the company's ability to capitalise on strong client relationships, substantial capital position and our expertise in specialty lines, as well as a shift in the mix of business and timing of certain renewals.

He added: "We continue to experience improvements in rates in almost all lines and markets. Shorter tail lines, such as catastrophe and property, exhibit the greatest advances, while improvements in longer tail lines, such as casualty, are more modest.

"In general, increases in the US are ahead of the rest of the world. We are seeing continued momentum for improved pricing, and expect this to be maintained into the January 1, 2002 renewals.'' The company also announced the board of directors declared an 8 percent increase in the regular quarterly dividend to 28 cents per common share from 26 cents. The dividend will be payable on June 1, 2001, to common shareholders of record on May 22, 2001, with the stock trading ex-dividend commencing May 18, 2001.

Net premiums written were $597.8 million for the three months ended March 31, 2001, up 36 percent compared to $440.1 million for the 2000 first quarter.

Total revenues for the first quarter of 2001 were $458.5 million, with $389.4 million of net premiums earned, net investment income of $60 million and net realised investment gains of $9.1 million.