the financial year ended December 31, an increase of about nine percent over the 1996 results.

PartnerRe president and chief executive officer Herbert Haag said the 1997 year was the most profitable in the company's four-year history.

He attributed the achievement to disciplined and selective underwriting, coupled with low reported losses.

Four quarter net income was $79.2 million, an increase of about 18 percent over the same period the previous year. The reported net income figures do not include the financial results of Paris-based Societe Anonyme Francaise de Reassurances (SAFR), which PartnerRe bought in July for about $900 million.

"With the acquisition of SAFR, our company is now a global multi-line reinsurer with a diversified mix of business lines and a large high quality client base,'' Mr. Haag said. PartnerRe wrote net premiums of $427.8 million for the year compared to $206 million for 1996. Net premiums in the fourth quarter were $116.9 million compared to $2.2 million in fourth quarter 1996.

PartnerRe earned net premiums of $198.7 million compared to $50.7 million in the same period 1996.

The company said the increase in premiums and the combined ratio in the fourth quarter to 81.2 million was due to the inclusion of SAFR's results as reflected in the consolidated statement from July 1, 1997. Mr. Haag said 1998 January renewals remained stable for the company.

"As expected the January 1 renewals were again very competitive,'' he said.

"However we are gratified with the commitment demonstrated by our clients to maintaining stable reinsurance relationships with our group, and we expect to retain our current level of premium volume with stable and well-spread exposures.'' Crossmarketing through SAFR also helped the company maintain volume, he said.