slump, with profits for the third quarter increasing year over year to more than three times its 1999 result.

The insurance company, which has its offices on Pitts Bay Road, saw net income for the quarter ended September 30, 2000 go up by more than $35 million from $15.8 million in 1999 to $50.9 million this year.

While the profits do not match the boom year of 1997, when the same quarter net income stood at $70.6 million, market conditions appear to be improving.

In 1999 the insurance industry share prices slumped following a spate of catastrophes.

Herbert N. Haag, President & Chief Executive Officer of PartnerRe, said: "For the first time in the last three years, the third quarter did not witness any major catastrophes.

"Nevertheless, improvements to our operating results were tempered by the continuing effects of the difficult pricing environment existing in 1999 and the first half of 2000. While we are aware of indications of better underwriting results by industry participants, we continue to observe a high frequency of losses, and we will remain cautious in setting reserves for business written in 1999 and 2000.

"Market conditions and pricing have clearly improved over the last six months, however, and we are seeing worthwhile opportunities in many lines and markets.'' For the three months ended September 30, 2000, operating earnings available to common shareholders, excluding net realised investment gains and losses, or operating earnings, were $53.6 million, or $1.06 per share on a fully diluted basis.

This compares to operating earnings of $40.7 million, or $0.78 per share, for the third quarter of 1999, a period affected by catastrophes.

For the three months ended September 30, 2000, net income, which includes realised gains and losses, was $50.9 million, or $0.90 per share.

Net income for the third quarter of 1999 was $15.8 million, or $0.21 per share.

At September 30, 2000, total assets were $6 billion and shareholders' equity was $2 billion.

Book value per common share was $34.14 on a fully diluted basis at September 30, 2000, compared to $31.82 per share at December 31, 1999.

The company sold its wholly owned subsidiary, PartnerRe Life Insurance Company of the US on July 1.

The sale of PartnerRe Life US did not have a material impact on net income.

However, the sale contributed $10.7 million after tax to other comprehensive income and a corresponding increase in book value, primarily related to the change in unrealised losses on investments resulting from the sale.

The third quarter of 2000 does not include operating revenues from PartnerRe Life US.

PartnerRe profit triples to $50m The sale of PartnerRe Life US is not expected to have an impact on the company's future earnings.

Net premiums written were $304.7 million for the three months ended September 30, 2000, compared to $320.0 million for the 1999 third quarter.

After adjusting for the sale of PartnerRe Life U.S., consolidated net premiums would have increased by 5 percent.

Total revenues for the third quarter of 2000 were $369.1 million, with $313.3 million of net premiums earned, net investment income of $62.1 million and net realised investment losses of $6.5 million.

For the third quarter 1999, revenues were $393.7 million, with $346.9 million of net premiums earned, net investment income of $78.1 million and net realised investment losses of $31.6 million.

Mr. Haag added: "We enter the 2001 renewal season enthusiastically, amid a firming market. Last week's large losses -- the Western European storms and the two airline disasters -- serve to reinforce the urgency for more rational pricing.

"However, in view of the cumulative decline in pricing over the last few years, the return to acceptable profitability for the industry may require discipline on the part of market participants over two or more renewal periods.'' Mr. Haag will hand over the presidency of PartnerRe to Patrick Thiele next month.

Herbert Haag