Best Downgrades and Withdraws Ratings of PXRE

April 13, 2006

A.M. Best Co. has downgraded the financial strength rating (FSR) to B (Fair) from B+ (Very Good) and the issuer credit ratings (ICR) to “bb” from “bbb-” for the reinsurance subsidiaries of the PXRE Group Ltd. The rating actions apply to PXRE Reinsurance Ltd. (Bermuda) and PXRE Reinsurance Company (Hartford, CT). A.M. Best has also downgraded PXRE’s ICR to “b” from “bb-” and all its existing and indicative debt ratings. All ratings have been removed from under review with negative implications and assigned a negative outlook.

Subsequently, all FSR and ICR ratings will be withdrawn and a rating of NR-4 (Company Request) will be assigned in response to management’s request that PXRE be removed from A.M. Best’s interactive rating process.

These actions follow A.M. Best’s previous downgrades of PXRE’s ratings in February 2006 after the company announced that it had materially increased its net loss estimates for hurricanes Katrina, Rita and Wilma.

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