PXRE Group has joined other Bermuda-based insurers in reporting a third quarter loss related to the four Florida hurricanes.

Late Wednesday night the provider of reinsurance products and services said it lost $73.2 million, or $5.48 a share compared to net income of $23.7 million or $1.01 per share in the third quarter of 2003.

Net operating loss for the 2004 quarter was $73.4 million or $2.67 per share compared to net operating income of $24.1 million or $1.02 per share in the third quarter of 2003.

Net underwriting loss was $74.7 million compared to income in the 2003 quarter of $31.8 million.

Book value per share was $20.34 at September 30, 2004.

Jeffrey L. Radke, the president & chief executive officer of PXRE Group, said: ?The third quarter was dominated by the effects of the four Florida hurricanes, which will likely result in the largest industry losses ever incurred in any single year.

Despite this unusual frequency and severity, PXRE?s risk controls limited our losses to approximately 40 percent of our annual catastrophe and risk excess premium, which compares favourably with the figures announced by most of our competitors.?

PXRE continues to forecast the net impact of the hurricane losses to come in between $80 million and $105 million, but it says the losses will create additional opportunities for PXRE?s core lines of business. Mr. Radke said: ?For 2005, we expect rate increases of 5-15 percent on our entire premium base. Specifically, by line of business, we expect rate increases of 10-15 percent in our world-wide retrocessional business, stable to single digit rate increases in our North American property catastrophe business and only moderate decreases in our International catastrophe business. In addition to these higher rates, we expect additional demand from our catastrophe and retrocessional customers.?

PXRE also reports ?significant progress this quarter? in addressing legacy items on its balance sheet.

Mr. Radke said: ?First, we increased the reserve associated with our only pending lawsuit to reflect the maximum potential exposure subsequent to the recently announced unfavourable judgement.

?We continue to believe that our case has strong merits and will pursue it aggressively, but shareholders will no longer be exposed to additional loss from this dispute and there will only be potential improvement in the final resolution.

?In addition, favourable development on prior-year Cat & Risk reserves more than offset the remaining $3.9 million after-tax exited lines underwriting loss. During the third quarter, we were successful in commuting several assumed and ceded contracts, including a large general liability program. The net expense of the above actions either created certainty for, or removed from our balance sheet, approximately 23 percent of the gross traditional general liability reserves, 50 percent of the gross finite risk reserves and 42 percent of the reinsurance recoverable. We will continue to work with other significant exited lines cedants to achieve similar full and final capping of our liabilities.?

Revenue for the quarter increased 25 percent to $95.6 million from $76.7 million in the 2003 quarter largely as a result of reinstatement premiums associated with hurricanes Charley, Frances, Ivan and Jeanne.

Net premiums earned for the quarter increased 30 percent to $89.8 million from $69.1 million in the 2003 quarter.

Barring any further material catastrophes, the company said it is comfortable with an operating earnings forecast of 70 cents to 90 cents a share for 2004. PXRE also said is not a party to any so-called market service agreements or placement service agreements, nor does it engage in any of the contingent commission or other practices are being probed by the New York State Attorney General?s office.

PXRE will pay a regular quarterly cash dividend of $0.06 per common share on November 29, 2004, to shareholders of record as of November 15, 2004.