PXRE, a Bermuda-based reinsurer, has decided to restate its first quarter because it is reviewing the way it accounted for contracts.

The company also decided to delay the release of second-quarter earnings, originally scheduled for yesterday.

PXRE said the revised figures for the first quarter will recognise income from 2001 finite contracts over their settlement period. The contracts generated about $3 million before taxes in the first quarter.

PXRE did not say why it decided to change its accounting procedures.

The company will also take a $200,000 post-tax charge because it will adopt a new accounting standard, Statement of Financial Accounting Standards No. 133.