Record catastrophes sent IPC Holdings Ltd to full-year and fourth quarter losses with the Bermuda-based company reporting last night that it had lost $623.4 million or $12.30 per share for the year ended December 31, 2005 compared to income of $138.6 million, or $2.87 per share in 2004.

The company posted a fourth quarter 2005 loss of $74.8 million, or $1.32 per share compared to income of $8.6 million or 18 cents per share for the quarter ended December 31, 2004.

In the quarter ended December 31, 2005, the company incurred losses and loss adjustment expenses of $154.3 million, compared to $81.2 million for the fourth quarter of 2004.The quarter?s losses stem primarily from hurricane Wilma with estimated total claims in the amount of $112.8 million.

The balance of the incurred claims come primarily for increased estimates of losses in prior periods with estimates for hurricanes Katrina and Rita rising by $30.8 million to $863.8 in aggregate. For the year ended December 31, 2005 IPC?s losses and loss adjustment expenses totalled $1.1 billion, compared to $215.6 million in 2004.

President and CEO Jim Bryce said however that while the end of the fourth quarter was a ?somewhat bittersweet period? due to the continuing painful impact of various storms, ?the beneficial effects on demand for catastrophe reinsurance and the pricing of renewals, especially for US business, started to be experienced.?

?We were generally pleased with the pricing of contracts renewing 1/1/06, although it was less robust in Europe and in one or two other minor territories than we had originally anticipated. IPC has been well- positioned to handle the increase in demand, especially with our consistency of business strategy and track record of timely claims settlement.?

Mr Bryce added that the company continues to be well-positioned to face further increases in demand as catastrophe models are recalibrated as a result of the events of 2005, and the resultant impact on rating agency requirements.

?IPC was severely tested in 2005, but we believe that we passed the challenges with flying colours, and remain a highly respected company in this specialty sector of the market.

This was also evidenced by the gratifying level of confidence and support that was demonstrated by capital providers, during the offerings of our common and preferred shares that we completed in the middle of the fourth quarter,? he said.