Bermuda reinsurer PXRe, in a regulatory filing on Tuesday night, said its chief operating officer Guy Hengesbaugh has given notice that he?ll leave the company in the next three months.

PXRe, a company that has lost one-third of its customers since having its credit rating slashed after its February announcement of larger-than-expected exposure to last year?s hurricanes, didn?t disclose any reason for Mr. Hengesbaugh?s decision to quit.

It is the second senior departure since January when chief financial officer John Modin resigned.

Under the terms of a January agreement that renewed Mr. Hengesbaugh?s contract for two years, he is due to receive two times his $425,000 salary if he leaves for good cause.

As well, any stock awards will vest immediately, he could be due a bonus and he?ll continue to receive employee benefits and housing allowance for a year after he quits, under the agreement.

Mr. Hengesbaugh does however lose out on a more than $200,000 bonus he and other senior executives were accorded if they stayed through the end of 2006.

PXRe is being advised on strategic alternatives by investment bank Lazard, which could include closing down to new business or being sold. The company, which earlier this month asked its rating agencies to withdraw their coverage of the company, expects to lose up to three-quarters of its clients this year, after its financial strength rating was cut below the crucial ?A-? minimum rating for reinsurers.