show a low loss ratio of 7.9 percent ($8.4 million) for the six months to June 30.

They compare to the 1995 six month loss ratio of 23.3 percent ($24.9 million).

And PartnerRe's geographical spread of business has undergone a significant shift to North America in response to market conditions that saw more business emanating from that continent.

Of the 194 clients, 74 were in North America. And in terms of premium distribution, North America accounted for 55 percent by the end of June, up from 46 percent six months before.

Demand there was higher and premium rates were more attractive than in many other regions. Twenty percent of premium came from Asia, Australia and New Zealand, down from 24 percent. And 18 percent came from Europe, down from 21 percent.

A management discussion and analysis of financial conditions and results of their operation to the end of June also points out that less business was emanating from Asia, Europe, Latin America and the Caribbean.

Some 98 percent of the company's underwriting portfolio represented excess of loss reinsurance, with two percent representing proportional participations in reinsurance of catastrophe coverages.

The decrease in premiums written in 1996 (down from $198.1 million in 1995 to $180 million in the first half of 1996) was due to selective underwriting in an increasingly competitive market, with declining premium rates in many parts of the world, and a stronger US dollar, which had the effect of reducing the US dollar equivalent of non-US dollar premiums.

President and CEO, Herbert Haag, said that while profits for the six month period were up 17 percent to $128.3 million, due to the lack of catastrophe events, competitive pressure had a decided effect on the price of catastrophe products.

Mr. Haag said, "Premium writings for the first six months of 1996 declined nine percent compared to 1995, reflecting our determination to continue to focus on the profitability of our book of business and to control our aggregate exposures.

"In addition, a 20 percent decline in the value of the Japanese yen reduced the US dollar amount of our important Japanese business.'' Second quarter catastrophe events included tornadoes and flooding in the midwestern US and severe flooding in China. But the impact on PartnerRe is expected to be minimal.