Bermuda-based property reinsurer PXRE Group Ltd. announced that its net income before convertible preferred share dividends was $41.6 million for the first quarter of 2006, compared to $22.7 million in the first quarter of 2005.
The positive result, however, doesn’t appear to significantly help the company out of its current financial difficulties. PXRE was severely impacted by last fall’s hurricanes, and as a consequence lost its “A” rating and 65 percent of its business. The company is very close to going into runoff, unless a buyer comes forward with a rescue plan.
“We are continuing to actively explore potential strategic alternatives,” said President and CEO Jeffrey L. Radke. “To date, our Board of Directors has not found an alternative that it believes would be in the best interests of our shareholders and reinsurance clients, but we are continuing the process.”
Radke recognized that the first quarter results weren’t sufficient to rescue PXRE. He indicated that although they were encouraging, “we do not expect to repeat this level of profitability in future quarters.”
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