Bermuda’s PXRE Group Ltd. announced the successful completion of a $150 million equity investment by Capital Z Financial Services Fund II, L.P., Reservoir Capital Partners, LP, and Richard Rainwater.
The new capital, issued in the form of convertible preferred stock was approved at the end of March (see IJ Website march 29). PXRE’s announced goal is “to increase its underwriting capacity and therefore maximize participation in the new market environment.” Following completion of the transaction, the company’s total capital exceeds $500 million.
Commenting on the capital infusion, Gerald L. Radke, PXRE’s Chairman, President and CEO, stated that “We believe that this additional capital, combined with our longstanding broker and client relationships, and existing record of client service, will allow us to build upon the strong momentum we achieved during the year-end 2001 renewal season and position PXRE for profitable growth in 2002. Given the lack of significant catastrophe activity during the first quarter of 2002, we continue to expect that our return on equity for 2002 will be in excess of our long term target of 15%.”
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