PXRE Reports 379% Q1 Net Income Gain to $18.2 Million

May 8, 2002

The first quarter of 2002 is turning out to be a financial boom for many of Bermuda’s reinsurers, as PXRE joined the parade of record results, announcing that its net income in the period rose to $18.2 million, a 379 percent increase over the $3.8 million it recorded for the same period last year.

The company’s announcement also stated that “Operating earnings, which exclude realized gains and losses after-tax, were $17.9 million or $1.49 per diluted share for the first quarter of 2002 compared with $3.6 million or $0.30 per share in operating earnings posted in the year-earlier period.”

Book value per share also increased to $21.54 per share, “representing an increase of 7% from the fourth quarter of 2001,” while the company’s annualized return on equity for the first quarter of 2002 was 29%. Gross premiums written in the first quarter increased 61% to $125.4 million from $78.1 million in the first quarter of 2001.

Commenting on the results, Gerald L. Radke, Chairman, President and CEO? stated, “Our strengthened capital position allowed us to increase lines with our long standing clients significantly and attract a substantial amount of new business. We more than doubled our catastrophe and finite premiums in the first quarter. This growth, combined with lower-than-usual catastrophe activity, resulted in record quarterly earnings. We believe the catastrophe reinsurance environment remains favorable as we move towards the July renewals.”

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