PartnerRe Ltd. posted income of $77.5 million in the second quarter of 2006, a 52 percent decline from $159.9 million in the same period 2005.

The 2006 quarterly result included net after-tax realised losses on investments of $47 million or 81 cents per share compared with net after-tax realised gains on investments of $37 million or 67 cents per share in 2005.

Broke down, income was $1.20 per share in the period ended June 30, 2006 compared to $2.72 per share in the same period 2005.

The Bermuda-based reinsurer?s operating earnings of $115.9 million or $2.01 per share for the second quarter of 2006 were in line with the average estimates of 15 analysts in a Thomson First Call survey.

?PartnerRe?s results and operating ROE during the second quarter and first half of 2006 are consistent with market conditions associated with the second half of the reinsurance cycle,? PartnerRe President & CEO Patrick Thiele said.

The company is seeing strong pricing in capacity-restricted areas such as US wind and energy. As a result, Mr. Thiele said the company saw growth in overall premium volume in the second quarter, driven by a combinations of increased pricing and new business in those lines.

?We continue to see mixed pricing in other lines with longer-tailed lines, particularly in the US, holding up better than shorter-tailed lines,? he said.

The company also remains committed to its average book value growth target of 10 percent per year.

PartnerRe closed at $65.64, up $1.57 or 2.45 percent, on a volume of 415.400 shares on the New York Stock Exchange.