Bermuda-based property catastrophe reinsurers, PartnerRe Ltd. has reported a $60.4 million profit for the second quarter to June 30, in line with the $60.3 million declared for the second quarter a year ago.

It brought to $121.2 million the six month net income, compared to $128.3 million for the first two quarters of last year.

But the top reinsurer intends to bring earnings from its $911-million acquisition of French reinsurer, Societe Anonyme Francaise de Reassurances (SAFR), on line in the third quarter.

PartnerRe president and CEO Herbert Haag said, "Our acquisition of SAFR was completed July 10, 1997 and, accordingly, SAFR's results will be consolidated with PartnerRe's for the first time in the third quarter of 1997. "During this third quarter much of our activity will continue to focus on the integration of the PartnerRe and SAFR operations to ensure that we are well positioned to maximise the many opportunities before us for the coming 1998 renewal season.

"The excitement and enthusiasm demonstrated by the two organisations has been most reassuring.'' Mr. Haag also said, "Reinsurance market conditions continue to be very competitive, particularly for catastrophe business. We are unwavering in our determination to enhance existing, and to build new, long term client relationships. We remain committed to disciplined underwriting in order to sustain a high quality, profitable portfolio.'' Paris-based SAFR provides multi-line reinsurance to insurance companies on a worldwide basis.

PartnerRe reported gross and net premiums written at $37.9 million for the quarter, a significant drop from $51.7 million.

PartnerRe pulls in profit Second quarter operating earnings, excluding net realised investment losses of $0.9 million, were $61.3 million, compared to last year's $62.3 million that excluded net realised investment losses of $2 million.

For the six month period operating earnings, excluding net realised investment losses of $1.1 million, were $122.3 million, compared to $125.2 million for the same period in 1996, during which there were net realised investment gains of $3.1 million.

Total assets grew over the six month period nearly $160 million to nearly $1.666 billion.

Total revenues for the three months were $69 million, which comprised of $48.5 million in net earned premium and net investment income of $21.4 million, after net realised investment losses of $900,000.

In the same period last year, total revenues were $71.6 million, comprising $51.9 million of net earned premium and net investment income of $21.7 million, minus net realised investment losses of $2 million.

Mr. Haag said, "Consistent with our outlook expressed in the first quarter release, premiums written in the second quarter were lower than the prior year.

"The extremely competitive conditions in Japan, and increasingly so in the United States, led us to discontinue underpriced business. The relative strengthening of the US dollar against the Japanese yen as compared to the second quarter of 1996 also contributed to the premium reduction.

"We are, however, gratified with the second quarter results for PartnerRe in light of very competitive conditions in the reinsurance industry.

"Our very low loss ratio of 4.2 percent is reflective of our continued underwriting discipline and few catastrophic events in the quarter, which included flooding in Canada, tornadoes in the United States and earthquakes in Asia.'' PartnerRe's loss ratio for the six month period was just five percent, compared to 7.9 percent for the same period last year. The combined ratio is down to 20.5 percent from 22.9 percent.