<body.content> <block> <p>HAMILTON, Bermuda, Dec. 1 /PRNewswire-FirstCall/ — PXRE Group Ltd. today announced the filing of a supplement to the prospectus contained in the shelfregistration statement with respect to a public offering of 2.2 million of its common shares. Of the 2,200,000 common shares to be offered, 1,068,300 common shares are to be offered by PXRE and anadditional 1,131,700 common shares are to be offered by Phoenix Life Insurance Company, one of the Company’s common shareholders. The underwriters will have an option to purchase up to an additional330,000 common shares from the Company, solely to cover overallotments, if any. PXRE expects to use the net proceeds from its sale of common shares for general corporate purposes, includingcontributions to the capital of its Bermuda subsidiary to support growth in its business. The Company will not receive any of the proceeds from the sale of the common shares by Phoenix.</p><p>A registration statement relating to these common shares has been filed with the Securities and Exchange Commission and declared effective. Merrill Lynch & Co. is acting asbookrunning lead manager for the offering. Credit Suisse First Boston is serving as co-lead manager for the offering. Lazard and Fox-Pitt, Kelton Inc. are serving as co-managers. Copies of theprospectus relating to the offering may be obtained from the offices of Merrill Lynch & Co., 4 World Financial Center, New York, NY 10080, (212) 449-1000 and Credit Suisse First Boston LLC,Prospectus Department, One Madison Avenue, New York, NY 10010 (212) 325-2580.</p> <p>PXRE — with operations in Bermuda, Barbados, the United States and Europe — provides reinsuranceproducts 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 finitereinsurance products and services.</p> <p>Statements in this release that are not strictly historical are forward- looking and are based upon current expectations and assumptions ofmanagement. 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 throughmeetings, 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 providedby Section 21E of the Securities Exchange Act of 1934 as amended. These forward-looking statements, identified by words such as “intend,” “believe,” “anticipate,” “expects,” or variations of suchwords 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 differmaterially 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, thefollowing: (i) significant catastrophe losses or losses under other coverages, the timing and amount of which are difficult to predict; (ii) changes in the level of competition in the reinsurance orprimary 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 or more of our subsidiaries’ financial strength or claims paying ratings; (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 tobusiness written in current and prior years; (vi) lower than estimated retrocessional recoveries on paid and unpaid losses, including the effects of losses due to a decline in the creditworthiness ofPXRE’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 portfolioand 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 theproceeds 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 withrespect 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 andinterpretations. 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- lookingstatements.</p> <p>PXRE undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events (including catastrophe events), orotherwise.</p> <p style=”pre” id=”pre1″> Contact:
PXRE Group Ltd. Investors:
John Modin The Ruth Group
Chief Financial Officer Jeffrey Goldberger
441 296-5858 646 536-7033
<virtloc idsrc=”dummy” value=”dummy”>[email protected]</virtloc> <virtloc idsrc=”dummy” value=”dummy”>[email protected]</virtloc> </p> <datasource>PXRE Group Ltd.</datasource> </block> <block class=”contact”> <p>CONTACT: John Modin, Chief Financial Officer, PXRE Group Ltd.,<br/>+1-441-296-5858, <virtloc idsrc=”dummy” value=”dummy”>[email protected]</virtloc>; Investors: Jeffrey Goldberger, The Ruth<br/>Group, +1-646-536-7033, <virtloc idsrc=”dummy” value=”dummy”>[email protected]</virtloc>, for PXRE</p> </block> </body.content>
