PXRE Group Ltd. has announced that its profits increased by 13 percent to $21.5 million for the second quarter of 2003, after an increase in business written and a leap in revenue by 70 percent.

This compares to $19.0 million in the second quarter of 2002.

Net income per diluted share totalled $0.93 for the quarter compared with $0.88 in the year-earlier period.

Net premiums written increased 180 percent in the quarter versus the second quarter of 2002.

The change primarily reflected a $28.7 million increase in the catastrophe and risk excess segment.

Gerald Radke, the chairman of PXRE Group, who retired as chief executive officer on June 30, 2003, said in a written statement: "I am extremely pleased by the strong growth achieved by the company during my last quarter as CEO.

"As I hand over the reins to our new CEO, Jeff Radke, I am confident that the company is well positioned to continue to build on the success we have experienced over the last six quarters."

In a written statement, the Bermuda-based reinsurance company said that as a result of the continued strong growth in PXRE's net premiums earned, revenues rose 70 percent for the quarter compared with the year-earlier period.

And it said that the sharpest increase was in net premiums earned in PXRE's core catastrophe and risk excess segment, which went up by 73 percent compared with the second quarter of 2002.

PXRE's annualised return on equity for the second quarter of 2003 was 18.8 percent.

On a fully diluted basis, PXRE's book value per share increased 3 percent during the quarter to $21.32 per share at June 30, 2003, from $20.76 per share at March 31, 2003.

Net investment income for the second quarter of 2003 increased 2 percent to $8.6 million from $8.4 million in the corresponding period of 2002.

The return of PXRE's hedge fund portfolio increased to 4.7 percent in the second quarter of 2003 compared to 0.8 percent in the second quarter of 2002.

PXRE's GAAP loss ratio for the second quarter of 2003 was 53.3 percent compared with 41.2 percent in the second quarter of 2002.

PXRE increased prior-year loss reserves by $18.1 million in the second quarter of 2003 primarily due to development in the company's aerospace and exited lines businesses.

This expense was partially mitigated by $2.1 million of related premiums.

The expense ratio increased to 27.8 percent in the second quarter of 2003 from 23.9 percent in the year-earlier quarter due primarily to the commissions associated with the finite net premiums earned.