Bermuda-based reinsurer PXRE has secured $150m (£104.8m) of new capital to increase underwriting capacity and take advantage of hardening rates.
The extra funding pushes PXRE's total capital over $500m.
Capital Z Financial Services Fund II, Reservoir Capital Group and Richard Rainwater will provide the new equity capital in the form of convertible preferred stock.
PXRE said it expected to complete the transaction during the first quarter of 2002. The new investors will have four directors on PXRE's new 11-member board.
PXRE chairman, president and chief executive Gerald Radke said: "We are pleased to announce this expansion of our capital base. The combination of PXRE with a knowledgeable investor group will allow us to grow our business significantly as we supply more coverage to our clients in a favorable market environment.
"Considering our 20 years of experience in the property catastrophe reinsurance business and our focus on long-standing relationships with clients and brokers, we believe this new capital will allow us to realize the full benefits of our strategic position in the industry."
Late last month PXRE said it was looking for extra capital after a deal with Select Re, one of its investors, fell through.
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