Bermuda reinsurer PXRE Group, Ltd. yesterday reported a $17.97 million net loss or $1.55 per share compared with a loss of $10.8 million or $0.95 per share in 2000.

Releasing its quarterly and year end results on Tuesday, the company said the loss for 2001 was attributable to the World Trade Center attacks in September, but believed the loss would not exceed the initial $35.30 million estimate.

Revenues for the year, which were also affected by the terrorist strikes, totalled $201.97 million against $198.92 million in 2000.

The company reported higher earnings for the fourth quarter of 2001, with the increase primarily reflecting improved results in the Company's Catastrophe and Risk Excess segment.

Net income for the fourth quarter increased 56 percent to $8.34 million or $0.70 per diluted share from $5.34million or $0.45 per diluted share in the fourth quarter of 2000.

Revenues increased 18 percent to $59.96 million in the fourth quarter from $50.86 million in the fourth quarter of 2000. Operating earnings, which exclude realised gains and losses after-tax, were $8.48 million or $0.71 per diluted share for the quarter of 2001, almost triple the $2.88 million or $0.24 per share in operating earnings posted in the year-earlier period.

Commenting on the announcement, Gerald L. Radke, Chairman, President and Chief Executive Officer, said: “PXRE was able to participate fully in the year-end renewal process, encountering the best terms that we have seen since the period following Hurricane Andrew. We expect our net written premiums for 2002 to more than double after adjusting for lines of business we exited in repositioning PXRE to focus on its core strengths in the Catastrophe and Risk Excess markets.

“This favourable business outlook, combined with the added financial strength made possible by the capital we expect to be contributed soon by new investors, positions the Company for profitable growth in 2002. We anticipate return on equity for 2002 to be in excess of our long-term target of 15 percent.”

Net written premiums in the fourth quarter increased 19 percent to $42.26 million from $35.63 million in the fourth quarter of 2000, driven by increases in the Finite and Catastrophe and Risk Excess segments. Net written premiums for the year declined 11 percent to $154.48 million from $172.70 million in 2000, largely reflecting the impact of reinstatement premiums payable associated with the WTC loss.

During the fourth quarter of 2001, PXRE recorded an after-tax unrealised loss of $1,572,000 in other comprehensive income, largely related to a decrease in the value of its investment portfolio.