PXRe, a Bermuda property-catastrophe reinsurer that was forced to consider its future business prospects after a crippling downgrade to its credit rating two months ago, last night said it was asking its rating agencies to withdraw their financial strength ratings on the company.

PXRe, which sold reinsurance to insurers as well as high-priced policies to absorb risks from other reinsurers, has lost more than one-third of its customers after its ability to pay claims was called into doubt after the ratings downgrades.

A.M. Best Co., Standard & Poor's and Moody's Investor Services all cut PXRe's ratings down to the 'B' range after the company on in February doubled its estimate of how much it could pay in claims from damage in last year's hurricanes, adding up to $311 million to an earlier claims estimate of between $462 million and $477 million.

President and chief executive Jeffrey Radke said: "After much consideration, we have asked the major rating agencies to withdraw their financial strength and claims paying ratings for PXRE.

'In the period since the downgrades, we have found that operational ratings below the critical 'A' category provide little value for a reinsurer."

It is expected that certain rating agencies will continue to maintain the debt ratings on the 8.85 percent Capital Trust Pass-through Securities issued by PXRE Capital Trust I.

Also in its statement issued last night, the reinsurer said it continues to evaluate various strategic alternatives. It earlier hired investment bank Lazard to advise it on various avenues, including a possible sale.

PXRe shares are traded on the New York Stock Exchange. In closing composite trading yesterday, the shares gained ten cents, or three percent, to $3.36. The shares have traded in a range between $2.90 and $25.70 in the last year.