PartnerRe Ltd.'s profits held up well during the third quarter of 2010 despite taking a $64 million hit from the New Zealand earthquake.

Net income for the re/insurer fell slightly to $524.9 million or $6.76 per share for the quarter from $566.7 million or $9.44 per share during the same period last year.

The net income for Q3 2010 included net after-tax realised and unrealised gains on investments of $233 million, or $3.05 per share.

Meanwhile net income for the first nine months of 2010 was $795.5 million or $9.68 per share versus $1,182.5 million or $19.95 per share over the corresponding time last year.

Operating earnings for the third quarter about on par at $281.9 million or $3.69 per share compared to $282.1 million or $4.77 per share in 2009.

Book value was $93.21 per share, up 10 percent year-to-date and 12 percent year-over-year.

PartnerRe's CEO Patrick Thiele said: "PartnerRe had an excellent third quarter. Our reinsurance results generated a non-life combined ratio of 80.7 percent, including an estimated $64 million loss from the New Zealand earthquake, while our invested assets continued to perform well generating solid returns both in the third quarter and year-to-date.

"Through September 30, 2010, we have grown GAAP book value per share 10 percent, in line with our long-term goal, to a new high of $93.21. As a result, we continued repurchasing common shares and increased the common share dividend by 10 percent during the quarter, leading to a total increase in the common dividend of 17 percent year over year."

Net premiums written for the company during the third quarter of 2010 increased to $987.6 million from $891.5 million in the third quarter of 2009, while total revenues for the quarter were $1.8 billion, up from $1.6 billion last year, and included $1.3 billion of net premiums earned, compared to $1.1 billion in the third quarter of 2009. Elsewhere investment income rose to $164.4 million from $145.3 million.

PartnerRe's non-life segment reported net premiums written of $804 million for the third quarter compared to $733 million during the same period in 2009.

The combined ratio was 80.7 percent for the third quarter of 2010, including 5.6 points from the New Zealand earthquake, versus 78.1 percent last year, which reflected no significant large losses.

The Paris Re business, which represented six percent of total net premiums written for the third quarter of 2010, reported net premiums written of $60 million, with net premiums earned at $242 million.

At September 30, 2010, total capital was $8.4 billion, and total shareholders' equity was $7.6 billion. This compares to total capital of $8 billion, and total shareholders' equity of $7.6 billion at December 31, 2009.

PartnerRe president and chief operating officer Costas Miranthis said: "As we move toward the end of 2010, the non-life market remains unchanged, and we expect a continuation of stable to moderately declining pricing and terms in the January 1, 2011 renewals.

"We will underwrite the January 1 renewals as a single entity having now fully integrated the Paris Re book into PartnerRe's existing portfolio. The optimisation of the combined portfolio may result in some further shrinkage of the book."