The property catastrophe and retrocessional coverage insurer PXRE recorded substantially higher profits to last year, when net income was hit by the September 11 event.

However, profits this year were hit by the European floods and a generally poor investment environment, according to chairman and CEO, Gerald L. Radke.

Net income was $11.0 million for the quarter versus a net loss of $33.8 million in the third quarter of 2001 which reflected a net loss of $35.3 million related to the event of September 11, 2001.

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. PXRE's annualised return on equity for the quarter was 11 percent.

Commenting on the announcement, Mr. Radke said, "We are pleased with the continued increase in the levels of business activity and profits of PXRE Group."

He said that despite strong premium growth, the European floods and poor investment environment meant that estimates had to be revised and predicted that the company's return on equity for 2002 would be in the range of 17 percent to 18 percent."

Net investment income for the quarter declined 14 percent to $5.0 million from $5.8 million in the third quarter of 2001.