PX Re has released its first quarter results with an increase in revenue by one percent to $91 million, but president and chief executive Jeffrey Radke said he, “did not expect to repeat this level of profitability in future quarters.”

“We are continuing to actively explore potential strategic alternatives,” said Radke. “During this process, we have explored the sale of PXRE, the sale of all or certain of our assets, mergers with one or more companies and the acquisition of smaller companies that would provide diversifying lines of business, share repurchases and other strategic alternatives.”

He continued, “To date, our board of directors has not found an alternative that it believes would be in the best interests of our shareholders and reinsurance clients, but we are continuing the process. However, if our board of directors concludes that no other alternative would be in the best interests of our shareholders, it may determine that the best option is to place PXRE’s reinsurance business into run-off and eventually commence an orderly winding up of PXRE operations over some period of time that is not currently determinable.”

Radke stated that as of May 5th 2006 approximately 65 percent of PXRE’s in-force business as of January 1st 2006 has either been cancelled or non-renewed and it is anticipated that this percentage will increase as additional contracts are non-renewed on a going forward basis. “Given this rate of cancellations and our limited ability to renew our existing reinsurance contracts and underwrite new reinsurance contracts, we expect to see significant decreased in net premiums earned in future quarters,” said Radke.