in the third quarter ended September 30, 2000.

The company's net income for the third quarter of 2000 totalled $3,383,000 or $0.29 per diluted share compared with a net loss of $6,239,000 or $0.55 per diluted share in the same period last year.

Revenues, driven by a 25 percent increase in net premiums earned for the quarter, increased 19 percent to $47,884,000 versus $40,259,000 in the year-earlier period.

For the first nine months of 2000, the company's net loss was $16,135,000 or $1.42 per diluted share versus a net loss of $3,954,000 or $0.34 per diluted share last year.

Revenues for the first nine months of 2000 increased 34 percent to $148,059,000 versus $110,825,000 in the year-earlier period.

"We are pleased to see some of the adverse trends that have affected our earnings over the past year reverse during the past quarter, which has allowed us to return to profitable operations,'' said Gerald L. Radke, Chairman, President and Chief Executive Officer of PXRe.

"Market development on prior-year European storm losses finally subsided this quarter, although the quarter was affected by several large risk losses and investment income volatility. We believe our diversified businesses are performing in line with expectations and that all indications point toward improved terms and pricing as 2001 renewals approach.'' Net premiums earned, the largest component of the PXRE's revenues, increased 25 percent to $40,508,000 in the third quarter of 2000 compared with $32,459,000 in the third quarter of 1999.

Net investment income for the quarter declined 28 percent to $6,778,000 from $9,466,000 in the same period last year caused mainly by volatility in certain alternative investments as well as somewhat lower returns from last year's strong performance in PXRE's portfolio of hedge funds.

Net realised investment losses totalled $128,000, down from last year's losses of $2,194,000, which were largely driven by last year's decision to dispose of volatile emerging market bonds.

Management fees for the third quarter increased to $726,000 versus $528,000 on higher premium volume.

For the first nine months of 2000, net premiums earned increased 41 percent to $119,889,000 from $84,984,000 in the prior-year period, reflecting growth in the company's diversified business, particularly structured/finite business and its direct operations, and 22 percent growth in the traditional catastrophe and risk excess segment.

Net investment income for the year to date declined 11 percent to $24,461,000 from $27,589,000 in the same period last year because of the volatility of certain alternative investments.

Net realised investment losses totaled $590,000 compared with losses of $3,577,000 in the first nine months of 1999. Management fees for the first nine months of 2000 increased 135 percent to $4,299,000 versus $1,828,000 in the same period last year because of the growth in premiums written and in line with expectations.

Gross written premiums in the third quarter decreased 7 percent to $56,171,000 from $60,639,000 mainly because of reduced reinstatement premiums compared with the year-earlier period.

Net premiums written increased 14 percent to $36,474,000 versus $31,960,000 in the third quarter of 1999 as the company retained more of its written premiums in 2000.

Net written premiums were down in the `other lines' segment as the company curtailed underwriting activities at Lloyd's during the period.