EXHIBIT 99.2
PXRE Consolidated Balance Sheets
Group Ltd. (Dollars in thousands, except par value per share)
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March 31, December 31,
2003 2002
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(Unaudited)
Assets Investments:
Fixed maturities:
Available-for-sale (amortized cost $434,076 and
$465,963, respectively $ 447,216 $ 478,878
Trading (cost $25,210 and $19,521, respectively) 28,039 21,871
Short-term investments 217,794 133,318
Hedge funds (cost $82,727 and $84,915, respectively) 111,479 113,105
Other invested assets (cost $10,284 and $10,522, respectively) 11,420 11,529
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Total investments 815,948 758,701
Cash 52,676 46,630
Accrued investment income 5,582 5,788
Premiums receivable, net 69,475 77,290
Other receivables 35,714 27,052
Reinsurance recoverable on paid losses 29,611 29,653
Reinsurance recoverable on unpaid losses 174,035 207,444
Ceded unearned premiums 16,032 10,496
Deferred acquisition costs 15,648 22,721
Other assets 50,868 51,367
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Total assets $ 1,265,589 $ 1,237,142
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Liabilities Losses and loss expenses $ 437,612 $ 447,829
Unearned premiums 77,864 63,756
Debt payable 10,000 30,000
Reinsurance balances payable 76,596 81,090
Deposit liabilities 66,086 35,149
Income tax payable 858 2,486
Other liabilities 24,358 29,033
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Total liabilities 693,374 689,343
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Minority interest in consolidated subsidiary:
Company-obligated mandatorily redeemable capital trust
pass-through securities of subsidiary trust holding solely a
company-guaranteed related subordinated debt 94,337 94,335
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Stockholders' Serial convertible preferred stock, $1.00 par value, $10,000 stated
Equity value -- 10 million shares authorized, 0.02 million shares
issued and outstanding 162,259 159,077
Common stock, $1.00 par value -- 50 million shares
authorized, 12.2 million and 12.0 million shares issued
and outstanding, respectively 12,177 12,030
Additional paid-in capital 172,271 168,866
Accumulated other comprehensive income net of deferred income
tax expense of $3,317 and $2,866, respectively 8,198 7,142
Retained earnings 127,755 108,062
Restricted stock at cost (0.2 million and 0.2 million shares,
respectively) (4,782) (1,713)
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Total stockholders' equity 477,878 453,464
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Total liabilities and stockholders' equity $ 1,265,589 $ 1,237,142
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The accompanying notes are an integral part of these statements.
PXRE Consolidated Statements of Income and Comprehensive Income
Group Ltd. (Dollars in thousands, except per share amounts)
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Three Months Ended
March 31,
2003 2002
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(Unaudited)
Revenues Net premiums earned $ 84,772 $ 59,156
Net investment income 5,475 4,087
Net realized investment (losses) gains (1) 489
Fee income 1,276 1,253
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91,522 64,985
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Losses and Losses and loss expenses incurred 32,854 17,223
Expenses Commissions and brokerage 20,027 12,443
Other operating expenses 9,162 8,870
Interest expense 2,259 745
Minority interest in consolidated subsidiary 2,106 2,224
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66,408 41,505
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Income before income taxes 25,114 23,480
Income tax provision 1,507 5,247
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Net income before preferred stock dividends $ 23,607 $ 18,233
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Preferred stock dividends 3,182 -
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Net income available to common stockholders $ 20,425 $ 18,233
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Comprehensive Net income before preferred stock dividends $ 23,607 $ 18,233
Income, Net Net unrealized appreciation (depreciation) on investments 111 (1,415)
of Tax Net unrealized appreciation on cash flow hedge 945 202
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Comprehensive income $ 24,663 $ 17,020
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Per Share Basic:
Net income before preferred stock dividends $ 1.98 $ 1.56
Preferred stock dividends (0.27) -
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Net income available to common stockholders 1.71 1.56
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Average shares outstanding (000's) 11,894 11,710
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Diluted:
Net income $ 1.04 $ 1.51
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Average shares outstanding (000's) 22,664 12,037
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The accompanying notes are an integral part of these statements.
PXRE Consolidated Statements of Stockholder' Equity
Group Ltd. (Dollars in thousands)
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Three Months Ended
March 31,
2003 2002
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(Unaudited)
Preferred Stock Balance at beginning of period $ 159,077 $ -
Dividends to preferred stockholders 3,182 -
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Balance at end of period $ 162,259 $ -
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Common Stock Balance at beginning of period $ 12,030 $ 11,873
Issuance of shares, net 147 71
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Balance at end of period $ 12,177 $ 11,944
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Additional Balance at beginning of period $ 168,866 $ 175,405
Paid-in Capital Issuance of shares 3,341 1,307
Other 64 (18)
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Balance at end of period $ 172,271 $ 176,694
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Accumulated Balance at beginning of period $ 7,142 $ (299)
Other Change in unrealized gains (losses) 111 (1,415)
Comprehensive Change in cash flow hedge 945 202
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Income Balance at end of period $ 8,198 $ (1,512)
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Retained Balance at beginning of period $ 108,062 $ 55,473
Earnings Net income before preferred stock dividends 23,607 18,233
Dividends to preferred stockholders (3,182) -
Dividends to common stockholders (732) (717)
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Balance at end of period $ 127,755 $ 72,989
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Restricted Stock Balance at beginning of period $ (1,713) $ (2,672)
Issuance of restricted stock (3,845) (803)
Amortization of restricted stock 776 677
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Balance at end of period $ (4,782) $ (2,798)
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Total Balance at beginning of period $ 453,464 $ 239,780
Stockholders' Issuance of shares 3,488 1,378
Equity Restricted stock, net (3,069) (126)
Unrealized appreciation (depreciation) on investments,
net of deferred income tax 111 (1,415)
Unrealized appreciation on cash flow hedge,
net of deferred income tax 945 202
Net income before preferred stock dividends 23,607 18,233
Dividends to common stockholders (732) (717)
Other 64 (18)
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Balance at end of period $ 477,878 $ 257,317
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The accompanying notes are an integral part of these statements.
PXRE Consolidated Statements of Cash Flows
Group Ltd. (Dollars in thousands)
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Three Months Ended
March 31,
2003 2002
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(Unaudited)
Cash Flow Net income before preferred stock dividends $ 23,607 $ 18,233
from Operating Adjustments to reconcile net income to net cash
Activities provided by operating activities:
Losses and loss expenses (10,217) (11,460)
Unearned premiums 8,572 44,469
Deferred acquisition costs 7,073 (5,185)
Receivables (1,645) (23,165)
Reinsurance balances payable (4,495) 14,687
Reinsurance recoverable 33,451 (3,130)
Income taxes (2,015) 7,753
Equity in earnings of limited partnerships (2,377) (1,701)
Trading portfolio fixed maturities and hedge funds acquired(5,688) -
Deposit liability 30,937 434
Other (1,284) (914)
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Net cash provided by operating activities 75,919 40,021
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Cash Flow Cost of fixed maturity investments (3,814) (203)
from Investing Fixed maturity investments matured or disposed 35,162 2,219
Activities Payable for securities 233 (94)
Cost of equity securities (76) -
Equity securities disposed - 275
Net change in short-term investments (84,475) (56,423)
Hedge funds and other invested assets disposed 8,208 33,973
Hedge funds and other invested assets purchased (4,023) -
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Net cash used by investing activities (48,785) (20,253)
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Cash Flow Proceeds from issuance of common stock 286 886
from Financing Cash dividends paid to common stockholders (732) (717)
Activities Repayment of debt (20,000) (10,000)
Repurchase of minority interest in consolidated subsidiary - (780)
Cost of stock repurchased (642) (452)
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Net cash used by financing activities (21,088) (11,063)
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Net change in cash 6,046 8,705
Cash, beginning of period 46,630 22,888
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Cash, end of period $ 52,676 $ 31,593
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The accompanying notes are an integral part of these statements.