subsidiary with business worth $35 million.

Stockholders of PXRE Corp yesterday voted to approve the reorganisation and move to base the company on the Island.

The business currently provides reinsurance products and services in the United States and internationally with the main business in the commercial and personal property and risks.

The new move includes the creation of PXRE Group Ltd. which will become the parent holding company for PXRE Corp. Both companies will have their headquarters based at 99 Front Street, but PXRE Corp. will continue to head up PXRE's United States operation.

Tax, regulatory and financing advantages were key to the move according to the company.

The reorganisation will allow the company to become more creative and innovative and further focus on alternative risk transfer products which have mushroomed on the Island.

The business also said it made little sense to be headquartered in the US when around 80 percent of its premiums already came from offshore and 30 percent of its property business was ceded to Bermuda.

By close of business last night, the company had already begun the process of moving its headquarters to the Island.

Yesterday's vote means that the stockholders of PXRE Corp automatically become holders of the same number of PXRE Group common shares.

In July the board approved the reorganisation in response to competitive stances taken by Bermudian companies in the US market. The board believed that the establishment of a Bermuda presence may have a "favourable effect on PXRE's ability to raise additional capital in the future from non-US investors and to write additional lines or reinsurance''.

It would also provide a structure that would assist in the expansion of PXRE's current business and future acquisitions and diversification opportunities.

PXRE has operations not only in the US, but also in Britain and Europe. It offers both broker-based and direct writing distribution capabilities. It also provides property insurance products and services.

After the restructuring is complete, PXRE Reinsurance Ltd., the Bermuda reinsurance subsidiary will begin underwriting. The company expects the annual operating costs of the Bermuda operation to be $1.5 million.