as $250 million of preferred stock to help finance its acquisition of Societe Anonyme Francaise de Reassurances (SAFR).

The company agreed on March 28, 1997, to acquire SAFR from Swiss Reinsurance Co. for about $950 million. The purchase price includes $800 million in cash and a total of 6.45 million newly issued PartnerRe shares. PartnerRe plans to use the proceeds from the sale of 10 million preferred shares to help finance the acquisition, according to a registration statement the company filed Friday with the Securities and Exchange Commission. Swiss Re may buy 2 million preferred shares directly from PartnerRe.

The Series A cumulative preferred shares won't be redeemable prior to July, 2002, the registration statement said. Each share will have a $25.00 liquidation value, the term that refers to the amount holders are entitled to receive through a bankruptcy proceeding.

PartnerRe provides reinsurance through its subsidiary Partner Reinsurance Co.

Ltd. The subsidiary had gross premiums written totalling $206 million in 1996.

In general, reinsurers agree to assume a portion of the risk that insurers incur through the sale of policies. In return, the insurers also pass on a portion of their premiums to the reinsurers.

Morgan Stanley Dean Witter and Smith Barney Inc. will serve as lead managers for the underwriting group that plans to market the preferred stock. Other underwriters will include Credit Suisse First Boston, Donaldson, Lufkin & Jenrette Securities Corp., Oppenheimer & Co. Inc., PaineWebber Inc., Prudential Securities Inc. and UBS Securities.