PXRE has said that it intends to raise $100m through a public share offering, just one day after Standard & Poor's (S&P) lowered its rating of PXRE to A- from A.
S&P had placed PXRE under review with negative implications on 9 September because of the reinsurer's projected losses from Hurricane Katrina, which now stand at between $235m and $300m.
On Friday, AM Best also downgraded PXRE's reinsurance subsidiaries to A- from A.
PXRE said that it "expects to contribute the net proceeds of the offering to PXRE Reinsurance, to support the underwriting of reinsurance business during the 1 January 2006 renewal period and throughout the balance of 2006."
