reported significantly improved results for the first quarter ended March 31, 2000, compared with the same period last year, even though the Company continued to experience ongoing loss development from previously reported catastrophe losses.

Net income for the first quarter totalled $4.0 million, or $0.35 per diluted share, compared with a loss of $2.8 million or $(0.23) per diluted share in the same period last year.

Revenues for the quarter increased by 67 percent to $48.9 million, versus $29.4 million a year earlier. The company said its growth was driven by higher premiums and sharply improved investment results.

Commenting on PXRE's results, Gerald L. Radke, chairman, president and chief executive officer, said: "`We are gratified by the top- and bottom-line improvements evident across our business during the first quarter of the new year.'' Mr. Radke continued: "This progress has been mitigated, however, by the lingering impact of the major catastrophic events of late 1999, particularly the French storm Martin, which was the second major loss to occur in France during the last week of December 1999.

"Losses from this storm clearly have expanded well beyond initial expectations and we are obviously disappointed to see ongoing development from this event, especially since we considered it to be fully reserved at the end of 1999.

"I think it is important to note that these losses in no way indicate a change in our underwriting standards or reserving processes, but merely reflect an inherent difficulty with estimating insured events that occur near the end of a reporting period, as well as timely reporting of losses in the retrocessional market.'' Net premiums earned, the largest component of the PXRE's revenues, increased by 50 percent to $35.7 million in the first quarter of 2000, compared with $23.8 million in the first quarter of 1999, reflecting higher premiums in all business segments.

Net investment income for the quarter jumped by 66 percent to $12.0 million, from $7.2 million in the same period last year.

Net realised investment losses, related to portfolio restructuring, totaled $0.5 million, compared with a loss of $2.6 million in the first quarter of 1999.

The group's GAAP combined ratio was 110.7 percent in the first quarter of 2000, versus 128.7 percent in the first quarter of last year.

PXRE decided during the quarter to withdraw from the excess and surplus lines and property facultative markets. These units were unable to write the planned amount of profitable, complementary non-catastrophe business without adding unacceptable amounts of uncapped catastrophe exposure.

Net premiums earned on this business were not material in 1999.

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

The Company primarily emphasises commercial and personal property and casualty reinsurance risks, and it offers both broker-based and direct-writing distribution capabilities. PXRE also provides marine and aerospace reinsurance products and services.