The Bermuda-based PXRE Group Ltd. reported net income before convertible preferred share dividends of $4.5 million compared to a net loss before convertible preferred share dividends of $317.3 million in the third quarter of 2005. The bulletin noted that “on a fully diluted basis, book value per share increased during the quarter by $0.14 to $6.65 at September 30, 2006.”
PXRE was severely impacted by last fall’s hurricanes, and as a consequence lost its “A” rating, and, as of August, around 82 percent of its business (See IJ Website May 11, Aug. 9 and related articles). The group is very close to going into run-off.
President and CEO Jeffrey L. Radke commented: “Our Board of Directors is continuing to explore various strategic alternatives that would maximize value for shareholders and we remain optimistic that we will find a solution other than runoff. As discussed in the past, however, if our Board of Directors concludes that no other alternative would be in the best interests of our shareholders, it may determine that the best option is to place PXRE’s reinsurance business into runoff and eventually commence an orderly winding up of PXRE’s operations over some period of time that is not currently determinable.”
PXRE noted: “Net premiums earned for the quarter decreased 92 percent, or $63.2 million, to $5.6 million from $68.8 million for the year-earlier period. This decrease in net premiums earned can be attributed to the cancellations and non-renewal of the majority of our reinsurance portfolio following our ratings downgrades by the major rating agencies in February 2006.”
The full report is available on the Group’s Website at: www.pxre.com. PXRE will hold a conference call with respect to its third quarter financial results today, Thursday, November 9, 2006 at 10:00 a.m. Eastern Time.
A live webcast of the conference call will be available online dial-in numbers are (888) 515-2235 for U.S. and Canadian callers and (719) 457-2601 for international callers. Following the conclusion of the presentation, the webcast will remain available online through December 9, 2006 on the Website. In addition, a replay of the call will be available from November 9, 2006 – November 16, 2006 by dialing (888) 203-1112. Callers dialing from outside the U.S. and Canada can access the replay by dialing (719) 457-0820. Please enter 1092468 as the conference ID.
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