IPC Holdings Ltd., a Bermuda property-catastrophe reinsurer, this week said it intends to raise capital through the sale of up to 24.2 million common and preferred shares.

A portion of IPC's common share issue will be offered to American International Group to enable the commercial insurance giant to maintain its 24.2 percent stake in IPC.

IPC Holdings Ltd. on Tuesday night said it sustained a net loss of $656.6 million in the third quarter, after more than $850 million in losses from natural catastrophes, particularly from Hurricane Katrina.

The company was formed 12 years ago in reaction to property-catastrophe capacity contracting after Hurricane Andrew in 1992.

IPC shares, which trade on the Nasdaq, yesterday closed down 51 cents, or nearly two percent, to $25.83.