The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements. Specifically, defendants failed to disclose the following: (i) that PXRE concealed from investors the full impact on its business of hurricanes Katrina, Rita, and Wilma (the "2005 Hurricanes"); (ii) that, in fact, the Company's cost of the 2005 Hurricanes had doubled to an estimated $758 million to $788 million; (iii) that the magnitude of the loss would cause PXRE to lose key financial strength and credit ratings from A.M. Best; (iv) that PXRE concealed the losses in order to complete a $114 million secondary offering and raise more than $350 million from an offering of perpetual preferred shares; and (v) that as a consequence of the foregoing, the Company's statements with respect to its loss estimates for the 2005 Hurricane season were lacking in reasonable basis.

On February 16, 2006, PXRE announced that it would be increasing its estimates of the net pre-tax impact of Hurricanes Katrina, Rita and Wilma by an amount between $281 million to $311 million for the year ended December 31, 2005 compared to the high end of their prior announced estimates. On this news, shares of PXRE fell $7.85 to close at $4.05 per share.

If you bought PXRE Group Ltd. securities between July 28, 2005 and February 16, 2006, inclusive, or a secondary offering on October 3, 2005, and would like to obtain information about the PXRE Group Ltd. lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney.