Low levels of large losses in the second quarter of 2005 sent PartnerRe Ltd?s earnings up 33.5 percent to $159.9 million from $119.8 million in the same period a year ago.

Operating earnings for the second quarter of 2005 were $114.3 million or $2.05 per share compared to $104.9 million or $1.93 per share a year ago.

The results topped analysts? expectations for operating profit of $2 per share, according to a Thomson Financial poll.

PartnerRe president and chief executive officer Patrick Thiele said: ?Our results this quarter were favourably impacted by a low level of large losses, in contrast to an above average amount of such events in the first quarter of 2005. For the first half of 2005, we achieved a 13 percent annualised operating return on equity with rapidly growing investment income somewhat offsetting declining premium volume and underwriting profitability that are characteristic of this stage of the reinsurance pricing cycle.?

The company?s GAAP book value per share increased 6 percent in the quarter to $53.32, reflecting operating profits and improved market values in our investment portfolio. On a trailing 12-month basis, the book value is up 19 percent.

?Our goal is to grow book value at an average annual rate of at least 10 percent over the cycle, and we remain committed to building significant shareholder value throughout all stages of the cycle,? Mr. Thiele said.

The ART segment which comprises structured risk transfer, structured finance, weather related products and the company?s investment in Channel Re was breakeven for the second quarter of 2005 compared to a gain of $1 million for the second quarter of 2004. For the first six months of 2005, the pre-tax contribution to net income was a gain of $15 million compared to $1 million for the same period in 2004.

Net premiums written for the second quarter of 2005 fell 9 percent to $763.9 million. Total revenues for the quarter declined 2 percent to $1 billion, including $880.3 million of net premiums earned, net investment income of $90.2 million and net realised investment gains of $55.6 million.

Mr. Thiele said: ?Generally, we are seeing increased retentions by ceding companies and strong supply of reinsurance capacity. Conditions in the US are generally stronger than elsewhere in the world, and longer tail casualty lines are holding up better than shorter tail programs, with the exception of accounts impacted by losses from the 2004 catastrophes. Our premium volume is down as a result of both the higher retentions on the part of cedants, as well as our declining to write business that does not meet our profitability and/or terms and conditions targets.?

PartnerRe said it sees net written premium for 2005 down 5 percent to 10 percent from 2004. At June 30, 2005, total assets increased to $13 billion from $12.5 billion at Dec. 31, 2004, and shareholders? equity totalled $3.5 billion, up from $3.4 billion six months ago.

Mr. Thiele said: ?We continue to believe that PartnerRe with its solid balance sheet, strong franchise, dual distribution channels, and local market presence remains well-positioned to achieve adequate returns in this more difficult environment.?