earnings will be "significantly lower'' than forecasts because of losses from Hurricane Georges and other storms.

IPC, of Pembroke, Bermuda, said its weather-related losses totalled about $25 million in the quarter. IPC writes catastrophe reinsurance policies that insurers use to hedge the risk of such events as hurricanes.

Before the announcement, IPC was expected to report that its fourth-quarter earnings fell to 60 cents a share from 82 cents a year ago, based on a survey of seven analysts by First Call Corp.

Even with the storm losses, IPC suggested, its business is healthy. It said claims and underwriting costs accounted for 74 cents of every premium dollar in the year.

Reinsurers' expenses and claims often outweigh premiums, meaning the companies remain profitable only because of their investments.

Shares of IPC, which issued the profit warning after the close of trading, fell 3/16 to 21 9/16. The stock dropped 30 percent during the past 12 months.

-- Bloomberg