Bermuda reinsurer PartnerRe Ltd. last night announced a record fourth-quarter profit of $242.7 million to cap what the company?s president Patrick Thiele described as ?an exceptional year? in 2006.

The final three months of last year produced net income of $4.03 a share, compared to a loss of $33.6 million, or 76 cents per share, a year earlier, as revenue rose by 7.2 percent.

The company?s 2006 full-year net income was $749.3 million, or $12.37 per share, compared to a net loss of $51.1 million, or $1.56 per share, in 2005.

The results were released after the close of trading yesterday.

Mr. Thiele, PartnerRe?s president and chief executive officer said: ?Each of our business units established new records in 2006, and this reflects a combination of excellent underwriting and portfolio construction, growth in those lines and markets with the most attractive risk/return opportunities, and benign loss experience.

?The 26 percent operating return on beginning equity for the full year 2006 is the highest achieved by the company since its inception in 1993. In addition, we grew our book value per share by 26 percent for the year.

?While we are obviously pleased with our performance in 2006, we recognise that the true test of a reinsurer is measured over a longer period in which the industry faces catastrophes, casualty reserve issues, and capital market disruptions.

?We are therefore most proud of our five-year cumulative performance since 2001, in which we have delivered 14 percent compounded annual growth in book value, in addition to a 2.4 percent average annual dividend yield for the five-year period.?

Operating earnings were $668.3 million, or $11.56 per share, compared to an operating loss for 2005 of $242.6 million, or $4.42 per share.

Excluding net realised investment gains and losses, the company recorded per-share operating earnings of $3.67 compared with a $1.42 per-share operating loss in the year-ago period.

The company?s year-end book value per share was $56.07, an increase of 26 percent compared to the end of 2005.

PartnerRe?s revenue climbed to $1.15 billion from $1.07 billion a year earlier.

PartnerRe?s share price rose 21 cents to close at $68.50 yesterday.