Bermuda-based PartnerRe Ltd. yesterday reported operating earnings excluding net realised investment gains and losses of $17.6 million or 33 cents a share for the second quarter ended June 30 compared with $64.8 million or $1.12 a share in the same period last year.

The company said it was affected by losses from the April 14 hailstorm in Australia and tornadoes in Oklahoma, Kansas, Texas and Tennessee in May.

The events cost the company an estimated $45.1 million on a pre-tax basis.

For the three months ended June 30 the company reported net income of $20.3 million compared to $70 million for second quarter 1998. Diluted net income per share was 28 cents compared to $1.12.

For the six months ended June 30 the company had operating earnings of $79.4 million and net income of $89.2 million. During the same period last year the company had operating earnings of $127.7 million and net income of $147.7 million.

At June 30 the company had total assets of $7.5 billion and shareholders' equity of $2 billion.

This year's results includes that of Winterthur Re operations which PartnerRe bought in December 1998.

"While we have diversified our portfolio substantially though our strategic acquisitions over the last two years, we continue to maintain a leading position in catastrophe reinsurance -- an important component of our range of specialty products -- and therefore must expect to participate in the world's significant loss events,'' PartnerRe president and chief executive officer Herbert Haag said. "However, the impact of the events we witnessed this quarter was reduced by our significantly enlarged asset base and our now multi-line operations.'' Mr. Haag said that looking ahead he expects to see signs of improvement in reinsurance market rates.