A.M. Best Downgrades and Withdraws Ratings of PXRE

A.M. Best Co. has downgraded the financial strength
rating (FSR) to B (Fair) from B+ (Very Good) and the issuer credit
ratings (ICR) to "bb" from "bbb-" for the reinsurance subsidiaries of
the PXRE Group Ltd. (PXRE) (NYSE: PXT) (Bermuda). The rating actions
apply to PXRE Reinsurance Ltd. (Bermuda) and PXRE Reinsurance Company
(Hartford, CT). A.M. Best has also downgraded PXRE's ICR to "b" from
"bb-" and all its existing and indicative debt ratings. All ratings
have been removed from under review with negative implications and
assigned a negative outlook.
   Subsequently, all FSR and ICR ratings will be withdrawn and a
rating of NR-4 (Company Request) will be assigned in response to
management's request that PXRE be removed from A.M. Best's interactive
rating process.
   These actions follow A.M. Best's previous downgrades of PXRE's
ratings in February 2006 after the company announced that it had
materially increased its net loss estimates for hurricanes Katrina,
Rita and Wilma.
   The following debt rating has been downgraded and removed from
under review with a negative outlook:

   PXRE Capital Trust I--

           --  to "ccc" from "b" on $100 million 8.85% trust
                preferred securities, due 2027

   The following indicative debt ratings for securities available
under shelf registration have been downgraded and removed from under
review with a negative outlook:

   PXRE Group Ltd.--

   --  to "b" from "bb-" on senior unsecured

   --  to "b-" from "b+" on subordinated

   --  to "ccc" from "b" on preferred stock

   PXRE Capital Trust IV--

   --  to "ccc" from "b" on trust preferred securities

   For Best's Debt Ratings, all other Best's Ratings, an overview of
the rating process and rating methodologies, please visit
www.ambest.com/ratings.
   A.M. Best Co., established in 1899, is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit A.M. Best's Web site at www.ambest.com.