ended December 31, 2000.

The Company's profits increased sequentially from last quarter and reflected a significant turnaround from the fourth quarter 2000, which was severely affected by the initial impact of the December 1999 European storms.

Net income for the fourth quarter of 2000 totaled $5,335,000 or $0.45 per diluted share compared with a net loss of $38,183,000 or $3.34 per diluted share in the same period last year.

Revenues for the quarter declined 21 percent to $50,858,000 versus $64,676,000 in the year-earlier period, reflecting lower investment income and earned reinstatement premiums.

For the year ended December 31, 2000, the Company's net loss narrowed to $10,800,000 or $0.95 per diluted share versus a net loss of $42,138,000 or $3.64 per diluted share last year. Revenues for 2000 increased 13 percent to $198,917,000 from $175,501,000 in 1999.

Book value at December 31, 2000 was $21.94, representing an increase of 3 percent from the prior quarter end and a decrease of 3 percent from December 31, 1999.

Commenting on PXRE's results, Gerald L. Radke, chairman, president and chief executive officer stated, "We are pleased to end the year with positive momentum in our operations. Clearly, the biggest factor affecting our results in 2000 was the continued market development of losses related to the European storms in December 1999.

"While prior-year development finally subsided in the second half of 2000, other factors, such as foreign exchange losses, investment income volatility, and the effects of restructuring our investment portfolio, affected our fourth quarter results. Additionally, during the second half of the year, we decided to cease the underwriting activities of our Lloyd's syndicate, and while this will affect future premium volume, we expect the decision to have a positive impact on overall earnings going forward.

"Looking ahead, our diversified businesses continue to perform in line with expectations and our Catastrophe segment has benefited from the best renewal period we have seen in the past five years. We anticipate that our 2001 net written premiums will show growth of around 20 percent overall, which will more than replace the premium previously derived from our Lloyd's syndicate, with the catastrophe segment growing between 15 percent and 20 percent.

"If we are able to achieve our expected level of premiums and investment income, and assuming normal loss activity and no significant deterioration of market conditions, we expect to achieve a return on equity in 2001 of approximately 15 percent.'' Gross premiums written for the fourth quarter were $59,853,000 compared to $59,258,000 in the year-earlier period. Gross premiums written for the year increased 22 percent to $268,990,000 from $221,349,000 in 1999.

Net premiums written declined 9 percent to $35,629,000 versus $39,284,000 in the final quarter of 1999.