PartnerRe last night reported better-than-expected earnings, with a second-quarter profit of $176.1 million, on strong underwriting results and investment gains.The Bermuda-based reinsurer recorded operating earnings of $142 million, or $2.20 per share — easily beating Wall Street expectations by 23 cents a share. This compares to operating earnings of $67.2 million or 98 cents per share for the second quarter of 2011.Net income for the first six months of 2012 was $536.3 million, or $7.76 per share. By comparison, in the first six months of 2011, the company saw a net loss of $682.8 million, or $10.32 per share.Operating earnings for the first six months of 2012 were $323.7 million, or $4.97 per share. This compares to an operating loss of $668.4 million, or $9.86 per share, for the first six months of 2011.Net premiums written in the second quarter were up eight percent at $1.1 billion. These increases were partially offset by a decrease in the catastrophe sub-segment.For the second quarter, the non-life combined ratio was 90.6 percent and included 12.9 points (or $115 million) of net favourable loss development on prior accident years.All non-life sub-segments except the catastrophe sub-segment, which was flat, experienced net favourable development on prior accident years during the second quarter of 2012.Commenting on results for the second quarter of 2012, PartnerRe president and CEO Costas Miranthis said: “We had a solid second quarter driven by strong underwriting results. This, together with our good first-quarter results, led to a combined ratio of 87.8 percent for the first half of 2012, and a 11.7 percent operating return on beginning equity for the six-month period.“Despite a difficult investment environment, our portfolio did well, recording modest gains. Our year-to-date operating performance, as well as the significant portfolio gains in the first quarter, resulted in book value per share growth of approximately eight percent year-to-date. We continue to be active on the capital management front, while maintaining a strong capital position as we head into the US wind season.“The renewal environment overall was positive, with risk-adjusted rate improvement in several lines, but it remains fragmented,” Mr Miranthis added. “Further, the pace of improvement, particularly in catastrophe-exposed lines, appears to have decelerated, and sustainability of current rates and trends in cat will be dependent on loss activity for the remainder of the year.“I am pleased that we continue to find attractive opportunities to broaden our portfolio; and I am confident that our global footprint and line of business expertise position us well in this challenging operating environment.”PartnerRe shares closed yesterday at $74.73, down eight cents. The company also announced yesterday that its board of directors has declared a dividend of 62 cents per common share. The dividend will be payable on August 31 to common shareholders of record on August 20.