Property catastrophe reinsurer PartnerRe has declared net income of $249.7 million ($4.50 per share) for the year to December 31, a 11.6 percent increase over the year before ($223.8 million or $3.99 per share).

President and CEO Herbert Haag said, "1996 was the third consecutive successful year for PartnerRe with operating earnings increasing 14.7 percent over the prior year and net income reaching $250 million.

"These strong financial results and PartnerRe's modest loss burden of 10.9 percent of premiums earned for the year are indicative of our disciplined and highly selective approach to underwriting and our focus on profitability. Our continued success has allowed us to increase our regular dividend each year since the company's inception.'' The loss ratio for the year was 10.9 percent (1995: 27.7 percent) and the combined ratio was 25.6 percent (1995: 39.7 percent). Losses and loss expenses were $22,973,000 for the year, compared with $61,524,000 a year ago.

With a view to the year ahead, Mr. Haag commented: "January 1 renewals were very competitive in most markets, and our approach has been, and continues to be, to promote disciplined and responsible pricing and accept only those risks which meet our technical requirements.

"In the USA, by far our largest market (1996: 56 percent, 1995: 46 percent), there has been some softening of rates, however, we remain satisfied with the level of pricing we have achieved.

"More importantly, we are delighted with the commitment demonstrated by our clients in maintaining stable reinsurance relationships with our company. The prominent California Earthquake Authority programme commenced on January 1 and PartnerRe is pleased with its leading share on this significant and innovative market solution.

"Outside the United States, prices have fallen significantly. PartnerRe has certainly not been immune to the current competitive climate but has been successful in developing an internationally diversified book of business with the world's leading insurers.

"Our market reach, specialised expertise and strong financial security are balancing factors to downward pricing pressures. We are confident, therefore, that PartnerRe has maintained the quality portfolio which will allow us to remain a leading force in global catastrophe reinsurance.'' Operating earnings for the year, excluding realised investment gains of $5.1 million, were $244.6 million ($4.41 per share), compared to $213.2 million ($3.80 per share) for 1995, excluding net realised investment gains of $10.6 million.

Total assets at the end of the financial year were $1,505,859,000 while shareholders' equity was $1,400,887,000. They compare with 1995 figures of $1,495,939,000 and $1,311,212,000, respectively.

The company reported completion of the repurchase of five million shares, with half a million shares repurchased during the fourth quarter. The board also announced a quarterly dividend of 18 cents per common share (up 20 percent from prior quarterly dividends), payable March 3 to common shareholders of record February 21, with the stock trading ex-dividend February 19.

Mr. Haag said, "The fourth quarter is typically a low premium volume period for property catastrophe programmes, with most of the industry's efforts devoted to January 1 renewals. Operating earnings of $60.4 million were in line with our expectations, given the low level of losses incurred for the quarter.

"Catastrophe events during the three month period included winter storms and flooding in the northwestern United States, the winter freeze in Europe and hail storms in South Africa. Our loss provision for the quarter was $5.4 million.'' For the fourth quarter, net income was $67.1 million, compared to $68.8 million for the same three months in 1995.