Last year?s Florida hurricanes saw full-year net income for PXRE Group decline by 76.3 percent on a $105 million after tax loss, net of reinstatement.

The Bermuda-based property reinsurer?s 2004 net income was $22.8 million or 82 cents per share compared to $96.6 million or $4.10 per share in 2003.

The company posted much stronger results for its fourth quarter with net income rising to $32.8 million, or $1.09 per share, compared to $27.8 million, or $1.14 per share, in the fourth quarter of 2003. Net operating income was $33.1 million or $1.10 per share compared to $26.6 million or $1.09 per share in the fourth quarter of 2003. Net premiums earned in the catastrophe and risk excess segment were up 19 percent while underwriting income was $38.4 million

For the year, net operating income per share was 93 cents compared to $4.06 in 2003. Net premiums earned in the catastrophe and risk excess segment were up 15 percent while underwriting income was $47.4 million.

Jeffrey L. Radke, president and chief executive officer of PXRE Group, said in the company?s earnings release: ?We are pleased by the strength of our fourth quarter results and our ability to achieve a full year profit of $22.8 million, despite the occurrence of more than $40 billion in world-wide natural catastrophes during 2004. As a property catastrophe specialist, our results will always be subject to the volatility of catastrophes. However, the relative size of our hurricane losses in 2004 demonstrated again the strength of our risk management capabilities, which are driven by our experienced underwriting team and our underwriting technology. Moreover, our efforts in this area will ensure that PXRE will always be able to capitalise on the opportunities that follow in the wake of major catastrophe losses.?

PXRE?s GAAP loss ratio for the fourth quarter of 2004 was 42.4 percent compared to 54.3 percent for the fourth quarter of 2003. The loss ratio in the company?s core catastrophe and risk excess segment was 39.8 percent compared to 33 percent in the year-earlier period, reflecting losses incurred for the Asian tsunami during the fourth quarter of 2004. Mr. Radke said the company expected to report strong results in 2005 in light of success during the key January 1 renewal. ?We expect to achieve ten percent growth in net earned cat and risk premium during 2005, or 15 percent growth excluding reinstatement premiums. Given our performance at January 1, our capital is being fully utilised and we expect 2005 net operating income per diluted share of $4.50 to $5, assuming normalised catastrophe activity.?