Bermuda insurance company PartnerRe Ltd. last night posted record results, with profits up 17 percent to $145.6 million for the first quarter of 2004 after the company reported good returns on equity and growth in book value.

This compares to net income of $124.4 million during the first quarter of 2003, the company reported last night after the stock markets closed.

?We achieved exceptional results for the first quarter of 2004, with an annualised operating return on equity of 19 percent and book value growth of seven percent for the quarter and 28 percent year-over-year,? said PartnerRe?s president and chief executive officer, Patrick Thiele. ?With our globally diversified business, strong ratings, and size, we are well positioned to achieve continued high quality earnings and generate real economic value for our shareholders over the short and long term.?

Operating earnings (excluding net after-tax realised investment gains and losses) for the first quarter of 2004 were $109.7 million on a fully diluted basis. This compares to operating earnings of $81.4 million for the first quarter of 2003. ?We are very pleased with the performance of our operations this quarter, highlighted by a non-life combined ratio of 90.7 percent,? said Mr. Thiele. ?In addition, we achieved very strong investment income growth as a result of the significant cash flow generated over the past several quarters.?

Net premiums written for the first quarter 2004 were $1.5 billion, a 23 percent increase over the comparable period in 2003. Total revenues increased 11 percent in the quarter to $1.0 billion, including $892.8 million of net premiums earned ? an increase of 11 percent, net investment income of $73.6 million ? an increase of 20 percent, and net realised investment gains of $37.8 million ? a decrease of six percent.

At March 31, total assets were $11.9 billion, total capitalisation was $3.4 billion, and total shareholders? equity was $2.8 billion.

This compares to total assets of $10.9 billion, total capitalisation of $3.2 billion, and total shareholders? equity of $2.6 billion at December 31, 2003.

PartnerRe said it has now reached a level of size and diversification that adds strength and stability to its earnings in its release yesterday.

Mr. Thiele added: ?Notwithstanding several large losses in the energy and marine lines, including a $30 million loss on the Algerian gas plant explosion in January, we were able to produce excellent quarterly results.

?Our growth of 23 percent in net premiums written this quarter is positively impacted by a number of factors and is therefore not indicative of full year expected growth.?