Bermuda- based PXRE Group Ltd. has announced the highest quarterly earnings in the company's 20-year history.

Gerald L. Radke, chairman, president and chief executive officer, said of PXRE's results: "Our strengthened capital position allowed us to increase lines with our long standing clients significantly and attract a substantial amount of new business. We more than doubled our catastrophe and finite premiums in the first quarter. This growth, combined with lower-than-usual catastrophe activity, resulted in record quarterly earnings. We believe the catastrophe reinsurance environment remains favourable as we move towards the July renewals."

Net income for the first quarter increased 379 percent to $18.2 million or $1.51 per diluted share from $3.8 million or $0.32 per diluted share in the first quarter of 2001.

Operating earnings, which exclude realised gains and losses after-tax, were $17.9 million or $1.49 per diluted share for the first quarter of 2002 compared with $3.6 million or $0.30 per share in operating earnings posted in the year-earlier period.

Book value per share at March 31, 2002, was $21.54 per share, representing an increase of seven percent from the fourth quarter of 2001. The annualised return on equity for the first quarter of 2002 was 29 percent.

Separately, the Company announced that its Board of Directors has declared a regular quarterly cash dividend of $0.06 per common share which will be paid on June 7, to stockholders of record as of May 24, 2002.

PXRE's revenues rose eight percent to $65.0 million in the first quarter from $60.2 million in the first quarter of 2001. Catastrophe and Risk Excess net premiums earned increased 59 percent to $42 million in the quarter. This strong growth was offset in part by lower finite net premiums earned as well as reduced investment income and management fees.

Gross premiums written in the first quarter increased 61 percent to $125.4 million from $78.1 million in the first quarter of 2001.

Net premiums written in the first quarter increased 85 percent to $103.7 million from $56.2 million in the first quarter of 2001, driven by increases in the Catastrophe and Risk Excess and Finite segments.

Net premiums earned in the first quarter increased 24 percent to $59.2 million from $47.9 million in the first quarter of 2001. Net investment income for the quarter, however, fell 59 percent to $4.1 million from $9.9 million in 2001.

PXRE said the decline was attributable to a net charge to investment income arising from finite risk transactions, as well as a general movement to cash from bonds and hedge funds in anticipation of September 11 claim payments.

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