Bermuda reinsurer IPC Holdings yesterday announced last night that second-quarter 2007 earnings will be hit by the storms and flooding that affected New South Wales, Australia in early June, and by the flooding in parts of northern England last month.

The company noted that complexity resulting from the ongoing floods in several areas of England introduces additional uncertainty to the normally difficult process of estimating catastrophe losses.

The resulting impact on claims adjusting (including allocation of claims to the multiple events because of the time periods covered and the effect of demand surge on the cost of building materials, labour and additional living expenses), is likely to cause delays to the timing with which the company will be notified of loss estimates by ceding companies.

As a result of these events, the company currently believes that its net income and net operating earnings for the quarter will be in the range of $0.20 to $0.40 per common share. The ultimate impact of losses from these events on the company's results of operations may differ substantially from current estimates.

IPC expects to release its second-quarter 2007 results after market close on Wednesday, July 25, 2007.