PartnerRe returned to a healthy profit of $566.7 million for the third quarter, bouncing back from a $151.7 million net loss for the same period last year.

The reinsurer's net income included after-tax net realised and unrealised gains on investments of $274.4 million, or $4.64 per share.

It also posted a record book value of $83.07, up 30 percent year-to-date and 27 percent year-over-year, with a growth of book value per share of 12.5 percent.

PartnerRe president and CEO Patrick Thiele said: "PartnerRe had another excellent quarter and first nine months of 2009, with both its reinsurance and capital markets activities performing well.

"For the first nine months of 2009, we achieved an operating return on beginning equity of 22 percent, and 30 percent growth in GAAP book value per share.

"Our reinsurance results benefited from a low level of large losses while our investment operations continued to participate fully in the improvement experienced by the global capital markets."

Net income for the first nine months of 2009 was $1.2 billion or $19.95 per share, including after-tax net realised and unrealised gains on investments of $479.4 million or $8.27 per share, as well as an after-tax net gain of $57 million or 98 cents per share from the purchase of approximately 75 percent of the company's outstanding Capital Efficient Notes in the first quarter this year.

That compared to a net loss of $48.7 million or $1.38 per share for the opening nine months of 2008, including after-tax net realised and unrealised losses on investments of $491.3 million, or $9.10 per share.

Operating earnings for the third quarter of this year were $282.1 million or $4.77 per share versus $121.3 million or $2.27 per share for last year's third quarter.

Gross premiums written were up at $893.7 million for the quarter compared to $868.6 million for the same period in 2008, while the combined ratio was down from 95.5 percent for the third quarter of last year to 78.1 percent in 2009.

PartnerRe also reported the successful purchase of a number of Paris Re shares, bringing its total ownership to 87 percent of the company, and has entered into an agreement with Paris Re shareholders to acquire more than 90 percent of the company's voting rights based on the amount of shares outstanding, while remaining confident of closing the deal by year-end 2009.

"As we move toward the end of 2009, the non-life market overall remains unchanged — stable to gradually deteriorating; and without any precipitating events, there will likely be a continuation of those trends in 2010," said Mr. Thiele.

"Despite that trend, PartnerRe continues to perform well, and we expect that to continue through the remainder of the year and into 2010, barring any unusually large loss events.

"Our acquisition of Paris Re enhances an already well-balanced portfolio of attractively priced risks. The integration of Paris Re into the PartnerRe group will provide us with both increased diversification of reinsurance and capital markets risk, and, with expanded capital and resources, significant growth opportunities at a time when industry demand is likely to remain stagnant. We are confident that the larger and stronger PartnerRe will be better able to achieve its financial goals, with reduced risk."

Separately, PartnerRe announced that its board of directors had declared a quarterly dividend of 47 cents per share, payable on December 1, to shareholders of record on November 20.