Fitch is to keep PXRE on negative rating watch following a number of recent announcements by the troubled Bermuda-based reinsurer.
Fitch originally placed PXRE on negative watch on 17 February.
Fitch cited continued uncertainty regarding PXRE's future viability and business direction as the company continues to explore strategic alternatives, coupled with additional disruptions in senior management and the launch of shareholder lawsuits against the company, in its decision to keep the rating on negative.
The rating agency was also concerned about PXRE's ability to continue to operate profitably given its reduced premium base and the potential for inadequately set reserves.
Roughly 65% of PXRE's in-force business as of 1 January 2006 has either been non-renewed or cancelled.
