Bermuda reinsurer PartnerRe yesterday revealed it had made a third-quarter underwriting profit despite the impact of hurricanes Gustav and Ike.

And the company's chief executive officer Patrick Thiele declared that the company had the capital to respond to an increased demand for reinsurance in a "new, more risky environment".

PartnerRe said its combined ratio — its percentage of premium dollars spent on claims and expenses — for the three months from July through September was estimated at 95 to 96 percent.

Previously the company had announced preliminary loss estimates of $175 million to $210 million from Ike and $25 million to $45 million from Gustav.

Shareholders' equity is estimated at approximately $4 billion at September 30, 2008 and common shareholders' equity is estimated in the range of $3.5 billion to $3.6 billion.

"In advance of the start of the January 2009 renewal season, we are releasing these numbers early to demonstrate that our integrated approach to risk management has worked in the most tumultuous period in recent times," Mr. Thiele said.

"Despite being impacted by one of the worst hurricanes in history, we were able to maintain underwriting profitability in the quarter and year-to-date.

"And despite the dramatic decline of the global stock markets, the collapse of a number of major financial institutions, extreme volatility in foreign exchange rates, and a significant increase in credit spreads which lead to 'mark-to-market' declines in our fixed income investment holdings, our capital and reserve positions remain on a par with levels at September 30, 2007, even after share repurchases and dividends.

"With this financial strength and stability in hand, we are prepared to offer continuity of capacity to our clients — assuming appropriate risk-adjusted rates and terms and conditions — as they deal with this new, more risky environment.

"PartnerRe has the risk appetite and the capital to respond to the likely increasing demand for reinsurance."

PartnerRe expects to release its full third-quarter results following the market close on October 22.