Pxre And Phoenix To Form Catastrophe Bond Investment Venture

Business Wire, May 22, 1997

EDISON, N.J.--(BUSINESS WIRE)--May 22, 1997--PXRE Corporation (NYSE:PXT) and Phoenix Home Life Mutual Insurance Company today announced the formation of a joint venture, Cat Bond Investors, which will specialize in investing in catastrophe bonds with returns that are determined by insured losses from catastrophic events.

Cat Bond Investors will be organized with $20 million of initial committed capital provided equally by Phoenix and PXRE. Operations will be managed jointly in Hartford, Conn., by Phoenix's investment management affiliate, Phoenix Duff & Phelps (NYSE:DUF), and in Edison, N.J., by PXRE.

"We are extremely eager to participate in what could potentially become a major new sector of the capital markets. Although still in its infancy, this market already has several potential issuers and interested investors," said Philip R. McLoughlin, chief executive officer of Phoenix Duff & Phelps. "This unique venture will seek superior investment returns by capitalizing upon Phoenix's strength in the bond market and PXRE's strength in property underwriting," he added.

Gerald L. Radke, chairman, president and chief executive officer of PXRE, said, "We expect that this new sector of the capital markets will have a significant effect on the property- casualty reinsurance industry. Successful securitization of catastrophe risk requires very specific expertise, however. As the only property reinsurance company to operate throughout the most recent industry cycle - perhaps the most eventful period of catastrophes in history - we are uniquely positioned to offer such expertise."

Phoenix is an insurance and investment management company with corporate offices in Hartford, Conn. With approximately $40 billion in assets under management, it is the nation's 14th largest mutual life insurer and one of its largest money managers.

PXRE provides reinsurance products and services in the domestic and international marketplace and manages property catastrophe reinsurance portfolios for unaffiliated insurance and reinsurance companies. It is based in Edison, N.J.

For further information, contact Alice Ericson (media - 860/403.5946) or Tony Zeppetella (analysts - 860/403.5402) at Phoenix, or Steve Goldstein (908/906.6738) at PXRE.

CONTACT: PXRE Corp.

Sanford M. Kimmel, 908/906-8100