Hamilton, Bermuda-based reinsurer PXRE reported a more than $4 million profit in the third quarter of this year, but is still considering going into runoff unless some alternatives are found that would be more advantageous to shareholder value, the company's chief executive said.
During an analysts' conference call today, Jeffrey L. Radke, president and chief executive officer, said the primary focus of the board is to protect shareholder value. He noted that he expected the board of directors to explore alternatives to runoff–either a sale or merger of the company–but no decision has been made on the direction the company would take.
PXRE was hammered by losses from Hurricanes Katrina, Rita and Wilma in 2005, resulting in the downgrade of the company's financial strength rating to "B" by A.M. Best. Subsequently, the insurer lost a significant amount of in-force business through cancellation or nonrenewals.
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