PXRE Comments on Recent Catastrophes

The Bermuda-based PXRE Group Ltd. said that, while it was too early to give definitive estimates of its losses from the recent hurricanes and typhoons, they would have an impact on the property catastrophe reinsurer’s 2004 results.

President and CEO Jeffrey L. Radke commented: “During the last two months the industry has experienced a virtually unprecedented number of significant global catastrophes impacting the United States, the Caribbean and Japan. It is too early to determine the final net financial impact of all of these catastrophe events. It is clear that they will not impair PXRE’s financial strength, although we can no longer expect to achieve our previously announced earnings target of $4.45 to 4.85 per diluted share for 2004.”

Radke concluded, however, that PXRE believes “these catastrophes will have a favorable impact on property catastrophe reinsurance rates in 2005, most notably in our key property retrocessional business, where we expect to see increased demand and rate increases.”