PXRE Announces Public Common Share Offering HAMILTON, Bermuda, Nov. 5 /PRNewswire/ -- PXRE Group Ltd. today announced a public offering of up to 2.7 million of its common shares, which is expected to take place in December 2003. Of the 2.7 million common shares to be offered, up to 1.6 million are to be offered by PXRE and an additional 1.1 million shares are to be offered by Phoenix Life Insurance Company, one of the Company's common shareholders. None of the Company's other common or preferred shareholders plan to participate in the announced offering. The common shares will be offered by the Company and by Phoenix under the terms of a shelf registration statement that has been declared effective by the Securities and Exchange Commission. Merrill Lynch & Co. will be the lead underwriter in the offering. The underwriters are expected to have an option to purchase up to an additional 405,000 common shares from the Company, solely to cover over-allotments, if any. The Company will not receive any of the proceeds from the sale of the common shares by Phoenix. The Company expects to use the net proceeds from its sale of common shares for general corporate purposes, including contributions to the capital of its Bermuda subsidiary to support growth in its business. Copies of the prospectus relating to the offering, when available, may be obtained from the offices of Merrill Lynch & Co., 4 World Financial Center, New York, NY 10080, (212) 449-1000. PXRE -- with operations in Bermuda, Barbados, the United States and Europe -- provides reinsurance products and services to a worldwide marketplace. The Company's primary focus is providing property catastrophe and retrocessional coverage. The Company also provides marine and aerospace and finite reinsurance products and services. Statements in this release that are not strictly historical are forward-looking and are based upon current expectations and assumptions of management. Statements included herein, as well as statements made by or on behalf of PXRE in its communications and discussions with investors and analysts in the normal course of business through meetings, phone calls and conference calls, which are not historical in nature are intended to be, and are hereby identified as, "forward-looking statements" for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934 as amended. These forward-looking statements, identified by words such as "intend," "believe," "anticipate," "expect," "outlook," or variations of such words or similar expressions, are based upon current expectations and are subject to risks and uncertainties. PXRE cautions investors and analysts that actual results or events could differ materially from those set forth or implied by the forward-looking statements and related assumptions, depending on the outcome of certain important factors including, but not limited to, the following: (i) significant catastrophe losses or losses under other coverages, the timing and extent of which are difficult to predict; (ii) changes in the level of competition in the reinsurance or primary insurance markets that impact the volume or profitability of business (these changes include, but are not limited to, the intensification of price competition, the entry of new competitors, existing competitors exiting the market and competitors' development of new products); (iii) the lowering or loss of one of the financial or claims paying ratings of PXRE's or one or more of PXRE's subsidiaries; (iv) changes in the demand for reinsurance, including changes in the amount of risk that PXRE's clients elect to maintain for their own account; (v) adverse development on loss reserves related to business written in current and prior years; (vi) lower than estimated retrocessional recoveries on unpaid losses, including the effects of losses due to a decline in the creditworthiness of PXRE's retrocessionaires; (vii) increases in interest rates, which cause a reduction in the market value of PXRE's interest rate sensitive investments, including its fixed income investment portfolio and potential underperformance in PXRE's finite coverages; (viii) decreases in interest rates causing a reduction of income earned on net cash flow from operations and the reinvestment of the proceeds from sales, calls or maturities of existing investments and shortfalls in cash flows necessary to pay fixed rate amounts due to finite contract counterparties; (ix) market fluctuations with respect to PXRE's portfolio of hedge funds and other privately held securities: liquidity risk, credit risk and market risk; (x) foreign currency fluctuations resulting in exchange gains or losses; (xi) a contention by the United States Internal Revenue Service that PXRE or PXRE's offshore subsidiaries are subject to U.S. taxation; and (xii) changes in tax laws, tax treaties, tax rules and interpretations. In addition to the factors outlined above that are directly related to PXRE's business, PXRE is also subject to general business risks, including, but not limited to, adverse state, federal or foreign legislation and regulation, adverse publicity or news coverage, changes in general economic factors, the loss of key employees and other factors set forth in PXRE's SEC filings. The factors listed above should not be construed as exhaustive. Therefore, actual results or outcomes may differ materially from what is expressed or forecasted in such forward-looking statements. PXRE undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events (including catastrophe events), or otherwise. Contact: Investors: PXRE Group Ltd. The Ruth Group John Modin Jeffrey Goldberger Chief Financial Officer 646 536-7033 441 296-5858 DATASOURCE: PXRE Group Ltd. CONTACT: John Modin, Chief Financial Officer of PXRE Group Ltd., +1-441-296-5858, or ; or Jeffrey Goldberger of The Ruth Group, +1-646-536-7033, or , for PXRE Group Ltd.

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