Bermuda-based PXRE yesterday announced that it has signed an agreement which will bring in $150 million of new capital in a move that brings the total amount of new capital raised in Bermuda since September 11 to $10 billion.

The huge influx of money comes after an increase in demand for insurance and reinsurance, as well as price increases, following the terrorist attacks of September 11. So far seven new reinsurance companies have set up with a total capital so far of $6.9 billion, and now the total new capital from existing companies has reached $3.13 billion.

The seven new companies are Arch Re Ltd, Axis Speciality, DaVinci Re, Endurance Speciality Insurance Ltd, Montpelier Re, Allied World Assurance, and Goshawk Re.

In addition existing companies have raised over $3 billion in new capital with ACE raising $1.15 billion, XL Capital $0.82 billion, Partner Re $0.4 billion, IPC $0.38 billion, Renaissance Re $0.3 billion and PXRE $0.15 billion PXRE reported yesterday that Capital Z Financial Services Fund II, investment funds managed by Reservoir Capital Group, and Richard Rainwater will invest $150 million in new equity capital in the form of convertible preferred stock.

The company said the investment will enable PXRE to increase underwriting capacity and maximise participation in the new market environment, following the terrorist attacks of September 11.

Following the transaction, PXRE's total capital will increase to more than $500 million.

PXRE chief executive officer Gerald Radke said: "We are pleased to announce this expansion of our capital base. The combination of PXRE with a knowledgeable investor group will allow us to grow our business significantly as we supply more coverage to our clients in a favourable market environment."

Mr. Radke added: "Considering our 20 years of experience in the property catastrophe reinsurance business and our focus on long-standing relationships with clients and brokers, we believe this new capital will allow us to realise the full benefits of our strategic position in the industry."

Managing Director of Reservoir Capital Group Craig Huff said: "PXRE's management has a proven track record in its core property catastrophe reinsurance business.

"Our investment will allow PXRE to capitalise on the favourable market conditions in its core business."

PXRE reported that it expects to close the transaction during the first quarter of 2002, subject to certain customary closing conditions, including receipt of all required regulatory approvals and the approval of the transaction by PXRE's existing shareholders.

PXRE has also invited the new investors to name four directors to a newly constituted 11-member board.

The company primarily deals in commercial and personal property reinsurance risks and also provides marine and aerospace reinsurance products and services.

PXRE - with operations principally in Bermuda, Barbados, the United States, and Europe - provides reinsurance products and services to a worldwide market place.

The Company primarily emphasises commercial and personal property reinsurance risks and also provides marine and aerospace reinsurance products and services. The Company's shares trade on the New York Stock Exchange under the symbol PXT.

Capital Z Financial Services Fund II, LP is a $1.84 billion private equity fund that focuses exclusively on investments in the financial services industry. Founded in 1998, the Fund is run by six partners and is managed by Capital Z Partners, LLC, a global alternative asset management organisation with offices in New York, London and Hong Kong.

Reservoir Capital Group, LLC manages private investment partnerships with over $500 million in capital.