The New York-based Tower Group, Inc. has announced that it has concluded, through commutation agreements, PXRE Reinsurance Company's participation under various reinsurance agreements with Tower Insurance Company of New York covering the 2001, 2002 and a portion of the 2003 policy periods.

"Ceded loss and loss adjustment expense reserve liabilities of $20.5 million, ceded paid losses of $2.4 million and ceding commission revenue of $8.6 million, totaling $31.5 million of unsecured recoverables were settled with a payment from PXRE of $26.7 million which represents an estimate of the present value of these recoverables," said the company. This resulted in a "non-recurring $4.8 million pretax charge to be recognised in the second quarter of 2006."