PXRE has released its results for the first quarter of 2006, which saw the group record net income of $41.6m compared to $22.7m in the first quarter of 2005.
Net premiums earned for the quarter decreased 3% to $77.1m from $79.4m for the year-earlier period.
Jeffrey Radke, president & CEO, said: "We are continuing to actively explore potential strategic alternatives.
"During this process, we have explored the sale of PXRE, the sale of all or certain of our assets, mergers with one or more companies and the acquisition of smaller companies that would provide diversifying lines of business, share repurchases and other strategic alternatives.”
He added that so far no alternatives were deemed to be “in the best interest of the group's shareholders”. However, he warned that should the board fail to find a suitable alternative, the best option may be to place PXRE's reinsurance business into runoff.
Radke continued: "Although the results of this quarter were encouraging, we do not expect to repeat this level of profitability in future quarters.
"As of May 5, 2006, approximately 65% of our in-force business as of January 1, 2006 has either been cancelled or non-renewed and it is anticipated that this percentage will increase as additional contracts are non-renewed on a going forward basis.
"Given this rate of cancellations and our limited ability to renew our existing reinsurance contracts and underwrite new reinsurance contracts, we expect to see significant decreases in net premiums earned in future quarters."
