EXHIBIT 10.6
QUOTA SHARE
ENDORSEMENT
TO
FACULTATIVE OBLIGATORY
QUOTA SHARE
RETROCESSIONAL AGREEMENT
(hereinafter referred to as the "Reinsurance Agreement")
between
PXRE REINSURANCE COMPANY
(hereinafter referred to as the "Company")
and
PXRE REINSURANCE LTD.
(hereinafter referred to as the "Reinsurer")
Effective as of January 1, 2003, subject to the approval of the Insurance
Department of the State of Connecticut, it is understood and agreed that with
respect to risks assumed on all Contracts written by the Company on or after
January 1, 2003:
(i) the applicable quota share ceded for purposes of the
Reinsurance Agreement shall be increased from forty percent
(40%) to fifty percent (50%); and
(ii) Cessions to the Reinsurance Agreement shall not exceed
$5,000,000 per reinsurance program.
Signed in Hamilton, Bermuda, as of January 1, 2003
PXRE REINSURANCE LTD.
By /s/ Guy Hengesbaugh
-------------------------------
Name: Guy Hengesbaugh
Title: President
PXRE REINSURANCE COMPANY
By /s/ Gerald L. Radke
-------------------------------
Name: Gerald L. Radke
Title: Chief Executive Officer
ANNEX IV
TO
AGGREGATE EXCESS OF LOSS AGREEMENT
(hereinafter referred to as the "Reinsurance Agreement")
between
PXRE REINSURANCE COMPANY
(hereinafter referred to as the "Reinsurer")
and
PXRE REINSURANCE LTD.
(hereinafter referred to as the "Company")
Effective as of January 1, 2003, subject to the approval of the Insurance
Department of the State of Connecticut, it is understood and agreed that for the
Period commencing January 1, 2003 and terminating on December 31, 2003, that
this Annex IV will replace and supersede Annexes I through III to the
Reinsurance Agreement:
1. Aggregate Retention. The "Aggregate Retention" shall be equal to the
sum of:
(a) Net Premium Earned minus Commissions and Brokerage; plus
(b) $60,000,000 (sixty million dollars).
2. Aggregate Limit of Liability. In no event shall the Reinsurer be liable
during the term of this Agreement for losses in excess of the Aggregate
Limit of Liability of $80,000,000.
3. Premium. $1,600,000, payable quarterly in arrears in four equal
installments of $400,000.
4. Choice of Law. The third paragraph of Article XIX of the Reinsurance
Agreement is deleted and replaced in its entirety as follows:
This Agreement shall be construed and enforced in accordance
with, and governed by, the laws of the State of Connecticut
(other than any conflict of law rule that might result in the
application of the law of any other jurisdiction.
5. Certain Definitions: For purposes of this Annex II, the following terms
shall mean:
(a) "Net Premium Earned" shall mean the Company's Net Premium
Earned for the period ending December 31, 2003 as set forth on
Statement Line No. 5 of the Company's Statutory Statement of
Income for the period ended December 31, 2003; provided that
in determining Net Premium Earned during any interim period
during the term of the Agreement, the Company's cumulative Net
Premium Earned for the year to date commencing on January 1,
2003 shall be used, but shall be subject to adjustment based
on any Net Premiums Earned in later interim periods during the
term of the Agreement.
(b) "Commissions and Brokerage" shall mean the Company's
Commissions and Brokerage for the period ending December 31,
2003 as set forth on Statement Line No. 9 of the Company's
Statutory Statement of Income for the period ended December
31, 2003 provided that in determining Commissions and
Brokerage incurred during any interim period during the term
of the Agreement, the Company's cumulative Commission and
Brokerage incurred for the year to date commencing on January
1, 2003 shall be used, but shall be subject to adjustment
based on any Commissions and Brokerage incurred in later
interim periods during the term of the Agreement.
Signed in Hamilton, Bermuda, as of November 18, 2002
PXRE REINSURANCE LTD.
By /s/ Guy Hengesbaugh
------------------------------
Name: Guy Hengesbaugh
Title: President
PXRE REINSURANCE COMPANY
By /s/ Gerald L. Radke
------------------------------
Name: Gerald L. Radke
Title: Chief Executive Officer