PXRE Estimates Hurricane Losses at $80-$105 Million

PXRE Group Ltd. announced from Bermuda that it estimates it will incur claims from Hurricanes Charley, Frances, Ivan and Jeanne, net of reinsurance recoverables, reinstatement premiums, and taxes, of $80 to $105 million. It added that, “windstorm losses in the Pacific this quarter fell within expected catastrophe loss levels.”

The Company cautioned that, “it had only received a limited number of claims since the event and that this preliminary estimate is primarily based on extensive modeling, a detailed review of affected contracts and numerous discussions with its clients. The ultimate impact of losses from the hurricanes on the Company’s results of operations might therefore differ substantially from the estimate.”

President and CEO Jeffrey L. Radke commented: “The recently completed quarter was remarkable for the frequency of moderate severity catastrophes. Our loss of approximately 30 percent to 40 percent of our Cat & Risk Excess Segment net earned premiums for the twelve months ending June 30, 2004 once again demonstrates the strength of PXRE’s underwriting discipline, technology and controls.

“Although these losses will negatively impact the third quarter, we continue to anticipate a full year profit for 2004, barring any further significant catastrophe losses. As a property catastrophe specialist with a strong retrocessional business, we are well positioned to capitalize on the attractive market opportunities that will arise in 2005 in the wake of such record loss activity.”