EXHIBIT 99.1

                                  [PXRE LOGO]


           PXRE ANNOUNCES AGREEMENT TO SELL PERPETUAL PREFERRED SHARES

HAMILTON, Bermuda - September 30, 2005 - PXRE Group Ltd. (NYSE:PXT) today
announced that it has agreed to sell 375,000 of its series D perpetual preferred
shares in a private placement pursuant to Section 4(2) of the Securities Act of
1933. The series D perpetual preferred shares have an initial liquidation
preference, subject to adjustment, of $1,000 and an $11.00 per common share
exchange price. At the initial liquidation price, the Company would raise $375
million ($360.5 million of proceeds net of agents' fees) in the private
placement and, at the exchange price of $11.00 per common share, each series D
perpetual preferred share will be mandatorily exchangeable for approximately
90.9 of the Company's common shares immediately upon an affirmative vote of the
Company's shareholders (i) authorizing an additional 300 million common shares;
and (ii) approving the exchange of the series D perpetual preferred shares into
common shares.

The final liquidation preference, purchase price, and net proceeds will be
subject to adjustment based on the price of PXRE's upcoming public offering of
common shares. The final price per share of the series D perpetual preferred
shares will be the lesser of (i) the liquidation preference of $1,000 per share
and (ii) the price of the public offering of PXRE's common shares multiplied by
the exchange ratio of 90.9 common shares for each series D perpetual preferred
share. The closing of the private placement will be simultaneous with, and
dependent on, the closing of the public offering.

PXRE expects to contribute the net proceeds of this private placement to PXRE
Reinsurance Ltd., its Bermuda reinsurance subsidiary, to support the
underwriting of reinsurance business during the January 1, 2006 renewal period
and throughout the balance of 2006.

The offering of the series D perpetual preferred shares has not been, and will
not be, registered with the Securities and Exchange Commission under the
Securities Act. Such shares may not be offered or sold in the United States
absent registration or an applicable exemption from the registration
requirements under the Securities Act.

This press release shall not constitute an offer to sell or the solicitation of
an offer to buy any of the series D perpetual preferred shares, nor shall there
be any sale of the series D perpetual preferred shares in any state in which
such offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state.

PXRE - with operations in Bermuda, Europe and the United States - provides
reinsurance products and services to a worldwide marketplace. The Company's
primary focus is providing property catastrophe reinsurance and retrocessional
coverage. The Company also provides marine, aviation and aerospace products and
services. The Company's common shares trade on the New York Stock Exchange under
the symbol "PXT."




Statements in this release that are not strictly historical are forward-looking
and are based upon current expectations and assumptions of management.
Statements included herein, as well as statements made by or on behalf of PXRE
in its communications and discussions with investors and analysts in the normal
course of business through meetings, phone calls and conference calls, which are
not historical in nature are intended to be, and are hereby identified as,
"forward-looking statements" for purposes of the safe harbor provided by Section
21E of the Securities Exchange Act of 1934 as amended. These forward-looking
statements, identified by words such as "intend," "believe," "anticipate," or
"expects" or variations of such words or similar expressions are based on
current expectations, speak only as of the date thereof, and are subject to risk
and uncertainties. In light of the risks and uncertainties inherent in all
future projections, the forward-looking statements in this report should not be
considered as a representation by us or any other person that the Company's
objectives or plans will be achieved. The Company cautions investors and
analysts that actual results or events could differ materially from those set
forth or implied by the forward-looking statements and related assumptions,
depending on the outcome of certain important factors including, but not limited
to, the following: (i) because of exposure to catastrophes, PXRE's financial
results may vary significantly from period to period; (ii) the Company may be
overexposed to losses in certain geographic areas for certain types of
catastrophe events; (iii) PXRE operates in a highly competitive environment;
(iv) reinsurance prices may decline, which could affect the Company's
profitability; (v) underwriting reinsurance includes the application of
judgment, the assessment of probabilities and outcomes, and assumption of
correlations, which are subject to inherent uncertainties; (vi) reserving for
losses includes significant estimates which are also subject to inherent
uncertainties, which uncertainties are particularly acute in the wake of
Hurricane Katrina; (vii) a decline in the credit rating assigned to the
Company's claim-paying ability may impact its potential to write new or renewal
business; (viii) a decline in the Company's ratings may require us to transfer
premiums retained by us into a beneficiary trust or may allow clients to
terminate their contract with us; (ix) the Company's investment portfolio is
subject to market and credit risks which could result in a material adverse
impact on its financial position or results; (x) because PXRE depends on a few
reinsurance brokers for a large portion of revenue, loss of business provided by
them could adversely affect us; and the Company's reliance on reinsurance
brokers exposes us to their credit risk; (xi) the Company has exited the finite
reinsurance business, but claims in respect of the business the Company wrote
could have an adverse effect on its results of operations; (xii) the Company may
be adversely affected by foreign currency fluctuations; (xiii) retrocessional
reinsurance subjects us to credit risk and may become unavailable on acceptable
terms; (xiv) the impairment of the Company's ability to provide collateral to
cedents could affect its ability to offer reinsurance in certain markets; (xv)
the reinsurance business is historically cyclical, and the Company may
experience periods with excess underwriting capacity and unfavorable premium
rates; conversely, PXRE may have a shortage of underwriting capacity when
premium rates are strong; (xvi) regulatory constraints may restrict the
Company's ability to operate its business; (xvii) contention by the United
States Internal Revenue Service that the Company or its offshore subsidiaries
are subject to U.S. taxation could result in a material adverse impact on the
Company's financial position or results; and (xviii) changes in tax laws, tax
treaties, tax rules and interpretations could result in a material adverse
impact on the Company's financial position or results. In addition to the
factors outlined above that are directly related to PXRE's business, PXRE is
also subject to general business risks, including, but not limited to, adverse
state, federal or foreign legislation and regulation, adverse publicity or news
coverage, changes in general economic factors, the loss of key employees and
other factors set forth in PXRE's SEC filings. The factors listed above should
not be construed as exhaustive. Therefore, actual results or outcomes may differ
materially from what is expressed or forecasted in such forward-looking
statements. PXRE undertakes no obligation to update any forward-looking
statements, whether as a result of new information, future events (including
catastrophe events), or otherwise.

Contact:
PXRE Group Ltd.
John Modin
Chief Financial Officer
441-296-5858
john.modin@pxre.com

Investors:
Citigate Sard Verbinnen
Jamie Tully
212-687-8080
jtully@sardverb.com

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