Bermuda’s PXRE Group Ltd. announced a significant increase in third quarter net income of $11 million compared to a net loss of $33.8 million in the third quarter of 2001. That figure reflected a net loss of $35.3 million related to the Sept 11 attacks.
“On a diluted per share basis, net income was $0.50 for the quarter compared with a net loss of $2.94 in the year-earlier period. For the nine months ended September 30, 2002, net income was $48.3 million versus a net loss of $26.3 million in the prior-year period. On a diluted per share basis, net income for the first nine months was $2.59 versus a net loss of $2.28 in the same period last year,” said the announcement.
Gerald L. Radke, Chairman and CEO stated, “We are pleased with the continued increase in the levels of business activity and profits of PXRE Group. As we move toward the year-end renewal season, we believe the state of the reinsurance market remains attractive and that our competitive position will allow us to continue to experience significant growth in 2003.”
PXRE’s gross premiums written in the third quarter rose to over $120 million from $97 million in the same period last year. In the first 9 months of the year it posted $287.881 million in gross premiums written, compared to $223.622 million in 2001.
“The continued strong growth in premiums in the third quarter is bearing out our decision to refocus on our core property catastrophe business, with net premiums earned in this segment growing by 117%, excluding the effects of September 11th,” Radke continued.
He added, however, that despite the strong premium growth the company’s had experienced $15.7 million in losses arising from the European Floods and that its earnings were also affected by a generally poor investment environment, that “prevented us from reaching our expected level of profitability in the third quarter.”
PXRE has accordingly revised its projections for the year. Radke indicated that, “absent any further significant catastrophe losses, the Company’s return on equity for 2002 will be in the range of 17% to 18%.”
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