[Letterhead of PXRE Group]


                                       Contact:     James F. Dore
                                                    Executive Vice President and
                                                    Chief Financial Officer
                                                    (441) 296-5858

            PXRE PREVAILS AGAINST TERRA NOVA IN $8.25 MILLION DISPUTE


HAMILTON, Bermuda (June 11, 2002) - PXRE Group Ltd. (NYSE: PXT) today announced
that its subsidiary, PXRE Corporation, had been awarded $8.25 million plus
interest by a jury at the conclusion of the trial of its dispute against Terra
Nova Insurance Company Limited. The trial was held before the United States
District Court for the District of New Jersey. The dispute concerned PXRE's
claims under two insurance policies that had been issued by an agent of Terra
Nova. PXRE had previously included the aggregate sum of $8.25 million in Other
Assets as a receivable.

         PXRE was represented in the dispute by the law firm of Frankel &
Abrams.

         PXRE - with operations principally in Bermuda, Barbados, the United
States and Europe - provides reinsurance products and services to a worldwide
market place. The Company's primary focus is providing property catastrophe and
retrocessional coverage, where it has been among the leading franchises for two
decades. The Company also provides marine and aerospace and finite reinsurance
insurance products and services. The Company's shares trade on the New York
Stock Exchange under the symbol PXT. To request other printed investor material
from PXRE or additional copies of this news release, please call (441) 296-5858,
send e-mail to Investor_Relations@pxregroup.com, or visit www.pxregroup.com

                                      -END-