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Erwin hits PXRE ratios

Bermudian (re)insurer PXRE has reported first quarter net profits of $22.7mn or $0.69 a share, compared to $30.9mn or $1.18 a share in the same period of 2004. Net operating income per share came in at $23.3mn or $0.71 a share, down from $33.2mn or $1.27 a share in the first three months of 2004.

The company, which in recent times has repositioned itself as a property catastrophe specialist, continued its growth path in the quarter, with net premiums earned and written up 15 percent and 27 percent compared to the prior year period.

But, in common with a number of its peers, losses from Windstorm Erwin spoiled the bottom line with $25.2mn net losses, adding 35 points to the loss ratio. As a result, the combined ratio deteriorated from 57.0 percent to 79.1 percent quarter-on-quarter.

PXRE president and CEO Jeff Radke commented: “Given the size of the industry loss and the territory affected by Erwin, the $25.2mn loss we recorded for this event was consistent with our expectations. We therefore remain confident that we will achieve our previously announced 2005 target of net operating income per diluted share of $4.50 to $5.00, assuming normalised catastrophe activity during the remainder of the year.”

The company benefited from an improvement in net investment income in the quarter, with an increase of 53 percent to $10.4mn.

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