<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED: MARCH 31, 2000
--------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM ................. TO ...............
COMMISSION FILE NUMBER: 0-27662
-------
IPC HOLDINGS, LTD.
(Exact name of registrant as specified in its charter)
BERMUDA NOT APPLICABLE
- ------------------------------------------ ----------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
AMERICAN INTERNATIONAL BUILDING, 29 RICHMOND ROAD, PEMBROKE, HM 08, BERMUDA
- --------------------------------------------------------------------------------
(Address of principal executive offices)
(441) 298-5100
--------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes . X.. No ........
The number of outstanding common shares par value U.S. $0.01 per share of IPC
Holdings, Ltd., as of May 8, 2000, was 25,033,932.
TOTAL PAGES 14
EXHIBIT INDEX LOCATED ON PAGE 12
1
<PAGE> 2
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
IPC HOLDINGS, LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of United States dollars, except for per share amounts)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
As of As of
March 31, 2000 December 31, 1999
-------------- -----------------
(unaudited) (audited)
<S> <C> <C>
ASSETS:
Fixed maturity investments:
Available for sale, at fair market value (Amortized
cost 2000: $498,052; 1999: $501,424) $ 483,080 $ 487,826
Equity investments, available for sale (Cost 2000:
$70,976; 1999: $70,699) 80,669 78,859
Cash and cash equivalents 21,526 28,069
Reinsurance balances receivable (Related party 2000:
$9,041; 1999: $3,886) 46,903 21,460
Deferred premiums ceded 1,203 384
Loss reserves recoverable (Related party 2000: $365;
1999: $459) 3,646 4,585
Accrued investment income 11,674 13,689
Deferred acquisition costs 5,656 1,980
Prepaid expenses and other assets 5,082 4,090
--------- ---------
$ 659,439 $ 640,942
========= =========
LIABILITIES:
Reserve for losses and loss adjustment expenses $ 84,009 $ 111,441
Unearned premiums 50,933 16,364
Reinsurance balances payable (Related party 2000:
$149; 1999: $119) 1,492 1,190
Deferred commissions 183 33
Accounts payable and accrued liabilities (Related
party 2000: $1,247; 1999: $1,689) 7,921 6,983
--------- ---------
144,538 136,011
--------- ---------
SHAREHOLDERS' INVESTMENT:
Share capital (Common shares outstanding, par value U.S.$0.01:2000:
25,033,932; 1999: 25,033,932 shares) 250 250
Additional paid-in capital 299,833 299,833
Retained earnings 220,097 210,286
Accumulated other comprehensive (loss) income (5,279) (5,438)
--------- ---------
514,901 504,931
--------- ---------
--------- ---------
$ 659,439 $ 640,942
========= =========
</TABLE>
See accompanying Notes to Consolidated Financial Statements
2
<PAGE> 3
IPC HOLDINGS, LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Expressed in thousands of United States dollars, except for per share amounts)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months ended March 31,
----------------------------
2000 1999
---- ----
REVENUES: (Unaudited) (Unaudited)
<S> <C> <C>
Gross premiums written $ 57,833 $ 65,315
Premiums ceded (1,355) (2,839)
------------ ------------
Net written premiums 56,478 62,476
Change in unearned premiums, net (33,751) (38,698)
------------ ------------
Net premiums earned 22,727 23,778
Net investment income 7,587 7,413
Realized (losses) gains, net on investments (143) 6,545
------------ ------------
30,171 37,736
============ ============
EXPENSES:
Losses and loss adjustment expenses, net 14,912 16,773
Acquisition costs, net 2,491 3,370
General and administrative expenses 2,680 2,276
Exchange loss / (gain) 277 101
------------ ------------
20,360 22,520
------------ ------------
------------ ------------
NET INCOME $ 9,811 $ 15,216
============ ============
Basic net income per common share $ 0.39 $ 0.61
Diluted net income per common share $ 0.39 $ 0.58
Weighted average number of common shares - basic 25,033,932 25,033,932
Weighted average number of common shares - diluted 25,101,570 26,172,696
</TABLE>
See accompanying Notes to Consolidated Financial Statements
3
<PAGE> 4
IPC HOLDINGS, LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of United States dollars)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Three months ended March 31,
----------------------------
2000 1999
---- ----
(unaudited) (unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net income $ 9,811 $ 15,216
Adjustments to reconcile net income to cash provided
by operating activities:
Amortization of investment premium, net (50) (17)
Realized (gains) losses, net on investments 143 (6,545)
Changes in, net:
Reinsurance balances receivable (25,443) (36,057)
Deferred premiums ceded (819) (2,129)
Loss reserves recoverable 939 0
Accrued investment income 2,015 2,844
Deferred acquisition costs (3,676) (4,573)
Prepaid expenses and other assets (992) (1,093)
Reserve for losses and loss adjustment expenses (27,432) 5,903
Unearned premiums 34,569 40,826
Reinsurance balances payable 302 2,311
Deferred commissions 150 396
Accounts payable and accrued liabilities 938 840
------------- ------------
(9,545) 17,922
------------- ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of fixed maturity investments (56,995) (119,600)
Proceeds from sale of fixed maturity investments 60,149 103,687
Proceeds from maturities of fixed maturity investments 0 20,500
Purchases of equity investments (713) (1,547)
Proceeds from sale of equity investments 561 23,541
------------- ------------
3,002 26,581
------------- ------------
CASH FLOWS FROM FINANCING ACTIVITES:
Additional share capital 0 0
Cash dividends paid to shareholders 0 (7,948)
------------- ------------
0 (7,948)
------------- ------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (6,543) 36,555
CASH AND CASH EQUIVALENTS, beginning of period 28,069 20,966
------------- ------------
CASH AND CASH EQUIVALENTS, end of period $ 21,526 $ 57,521
============= ============
</TABLE>
See accompanying Notes to Consolidated Financial Statements
4
<PAGE> 5
IPC HOLDINGS, LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Expressed in thousands of United States dollars)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months ended March 31,
----------------------------
2000 1999
---- ----
<S> <C> <C>
NET INCOME $ 9,811 $ 15,216
-------- --------
OTHER COMPREHENSIVE INCOME (LOSS):
Holding (losses ) gains, net on investments during period 16 (2,013)
Reclassification adjustment for (gains) losses included in
net income 143 (6,545)
-------- --------
159 (8,558)
-------- --------
COMPREHENSIVE INCOME $ 9,970 $ 6,658
======== ========
</TABLE>
See accompanying Notes to Consolidated Financial Statements
5
<PAGE> 6
IPC HOLDINGS, LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in thousands of United States dollars, except for per share amounts)
(unaudited)
- --------------------------------------------------------------------------------
1. GENERAL:
The consolidated interim financial statements presented herein have been
prepared on the basis of United States generally accepted accounting
principles ("GAAP") and include the accounts of IPC Holdings, Ltd. (the
"Company"), and its wholly owned subsidiaries, IPCRe Limited ("IPCRe")
and IPCRe Services Limited ("Services" and, together with the Company and
IPCRe, "IPC") and IPCRe Europe Limited, which is a wholly-owned
subsidiary of IPCRe. In the opinion of management, these financial
statements reflect all adjustments (consisting of normal recurring
accruals) necessary for a fair presentation of the results of operations
for the three month periods ended March 31, 2000 and 1999, respectively,
the balance sheet at March 31, 2000 and the cash flows for the three
month periods ended March 31, 2000 and 1999, respectively. These interim
consolidated financial statements should be read in conjunction with the
audited consolidated financial statements for the year ended December 31,
1999. The results of operations for any interim period are not
necessarily indicative of results for the full year.
2. DIVIDENDS:
No dividends have been declared or paid in 2000 to date.
3. NET INCOME PER SHARE:
The Company has adopted Statement of Financial Accounting Standards No.
128, "Earnings per Share", which requires dual presentation of basic and
diluted earnings per share. Diluted net income per common share is
computed by dividing net income by the weighted average number of shares
of common stock and common stock equivalents outstanding during the year.
Stock options held by a shareholder of the Company were considered common
stock equivalents and were included in the number of weighted average
shares outstanding using the treasury stock method. Stock options granted
to employees on February 15, 1996, July 25, 1996, January 2, 1997,
January 2, 1998, January 4, 1999 and January 3, 2000 were also considered
common stock equivalents for the purpose of calculating diluted net
income per common share.
4. ACCOUNTING FOR DERIVATIVES:
The Financial Accounting Standards Board has also recently issued
Statement of Financial Accounting Standard No. 137 ("SFAS 137"), which is
an amendment to Statement of Financial Accounting Standard No. 133,
"Accounting for Derivative Instruments and Hedging Activities," ("SFAS
133"), deferring the effective date thereof to periods beginning after
June 15, 2000. Management does not expect the impact of the adoption of
SFAS 137/133 on the Company's financial position or results to be
material.
5. DEPOSIT ACCOUNTING:
In October, 1998 the American Institute of Certified Public Accountants
("AICPA") issued Statement of Position 98-7, "Accounting for Insurance
and Reinsurance Contracts that do not Transfer Insurance Risk", which is
effective for fiscal years beginning after June 15, 1999. IPCRe does not
currently write or cede business which would be affected by this
Statement.
6
<PAGE> 7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
RESULTS OF OPERATIONS, QUARTERS ENDED MARCH 31, 2000 AND 1999
The following is a discussion of the results of operations and financial
position of IPC Holdings, Ltd. References to "we", "our" or "IPC" mean
IPC Holdings together with its wholly-owned subsidiaries, IPCRe Limited
("IPCRe"), and IPCRe Services Limited. This discussion should be read in
conjunction with our Consolidated Financial Statements and related notes,
for the quarter ended March 31, 2000.
In the quarters ended March 31, 2000 and 1999, we wrote premiums of $57.8
million and $65.3 million, respectively. Written premiums were impacted
by a number of treaties written effective January 1, 1999, which had
policy periods greater than twelve months because of clients' concerns
regarding Year 2000 issues. The reductions in written premiums resulting
from this, which totaled approximately $7.1 million, were partially
offset by increases in premium rates, which were in the range of 1 to 5%
for loss-free contracts, and approximately 10% for loss-impacted
contracts. Written premiums also included reinstatement premiums of $1.4
million in the first quarter of 2000, which is similar to the amount of
reinstatement premiums recorded in the first quarter of 1999. We ceded
premiums of $1.4 million to IPCRe's proportional reinsurance facility in
the first quarter of 2000, compared to $2.8 million ceded in the first
quarter of 1999. This reduction is primarily due to the fact that some of
the treaties ceded in 1999 were also those which had policy periods
greater than twelve months. Accordingly, net premiums earned in the three
months ended March 31, 2000 were $22.7 million, compared to $23.8 million
in the same period in 1999, a decrease of 4.4%. Earned premiums were
lower primarily because the amount of premiums written in the latter half
of 1998 (earned during 1999) was greater than the premiums written in the
corresponding period of 1999.
Net investment income was $7.6 million in the quarter ended March 31,
2000, compared to $7.4 million for the quarter ended March 31, 1999, an
increase of 2.4%. This increase is a result of an increase in the net
yield of the portfolio.
There was a net realized loss from the sale of investments in the quarter
ended March 31, 2000 of $0.1 million, compared to a gain of $6.5 million
in the first quarter of 1999. Net realized gains and losses fluctuate
from period to period, depending on the individual securities sold, as
recommended by IPCRe's investment advisor. In February 1999, there was a
reallocation within the portfolio, whereby the equity element was reduced
from approximately 15% to 12%, and the majority of the 1999 first quarter
gains were realized from sales in that reallocation.
In the three months ended March 31, 2000, incurred losses were $14.9
million, compared to $16.8 million in the first quarter of 1999. Incurred
losses in the first quarter were primarily the result of development of
claims from the European storms which occurred in December 1999 ($9.3
million) and from Typhoon Bart, which struck Japan in late September 1999
($1.8 million). In 1999, incurred losses included $6.3 million from the
Rouge Industries steel mill explosion, as well as claims from various
events which had occurred in the latter half of 1998. Our loss and loss
expense ratio (the ratio of losses and loss adjustment expenses to
premiums earned) was 65.6% in the first quarter of 2000, compared to
70.5% in the first quarter of 1999.
Acquisition costs incurred, which consist primarily of commissions and
brokerage fees paid to intermediaries for the production of business,
were $2.5 million for the quarter ended March 31, 2000, compared to $3.4
million in the same period of 1999, a decrease of 26.1%. The reduction is
due to the decrease in earned premiums, as well as reductions in the
accruals of profit commissions and no-claims bonuses, because of losses
on those contracts. General and administrative expenses were $2.7 million
in the quarter ended March 31, 2000, compared to the $2.3 million
incurred in the corresponding period in 1999. This increase is due
primarily to costs incurred as a result of the closure of IPCRe Services'
office in London, as well as an increase in salaries and benefits. IPC's
expense ratio (the ratio of acquisition costs plus general and
administrative expenses to premiums earned) was 22.8% for the quarter
ended March 31, 2000 compared to 23.8% for the corresponding period in
1999.
The following table summarizes the loss and loss expense ratio, expense
ratio and combined ratio (sum of loss and loss expense ratio, plus
expense ratio) for the quarters ended March 31, 2000 and 1999,
respectively:
<TABLE>
<CAPTION>
Quarter ended March 31,
-----------------------
2000 1999
---- ----
<S> <C> <C>
Loss & loss expense ratio 65.6% 70.5%
Expense ratio 22.8% 23.8%
Combined ratio 88.4% 94.3%
</TABLE>
Our net income for the quarter ended March 31, 2000 was $9.8 million,
compared to $15.2 million for the corresponding period in 1999, a
decrease of 35.5%. Excluding the effects of net realized gains and losses
arising from the sale of investments, net operating income for the first
quarter of 2000 was $10.0 million, compared to $8.7 million for the first
quarter of 1999, an increase of 14.8%. This increase is primarily the
result of lower losses and lower expenses, as discussed above.
7
<PAGE> 8
LIQUIDITY AND CAPITAL RESOURCES
IPC Holdings is a holding company that conducts no reinsurance operations
of its own. It's cash flows are limited to distributions from IPCRe and
Services by way of loans or dividends. The dividends that IPCRe may pay
are limited under Bermuda legislation and IPCRe's revolving credit
facility. The Bermuda Insurance Act of 1978, and subsequent amendments
thereto, require IPCRe to maintain a minimum solvency margin and a
minimum liquidity ratio. The maximum dividend payable by IPCRe in
accordance with Bermuda regulations as of January 1, 2000 was
approximately $126 million.
IPCRe's sources of funds consist of premiums written, investment income
and proceeds from sales and redemptions of investments. Cash is used
primarily to pay losses and loss adjustment expenses, premiums
retroceded, brokerage commissions, excise taxes, general and
administrative expenses and dividends. The potential for a large
catastrophe means that unpredictable and substantial payments may need to
be made within relatively short periods of time. Hence our cash flows may
fluctuate significantly from period to period.
Net cash outflows from operating activities in the three months ended
March 31, 2000 were $(9.5) million compared to a net cash inflow from
operations of $17.9 million in the corresponding period in 1999, which
represents a decrease of 153.1%. The decrease is primarily the result of
the significant amount of net claim payments in the first quarter of
2000, which totaled $40.3 million, compared to $10.3 million in the first
quarter of 1999.
Net cash flows from investing activities in the first three months of
2000 were $3.0 million. Cash and cash equivalents decreased by $6.5
million in the three months ended March 31, 2000, resulting in a balance
of $21.5 million at March 31, 2000. At March 31, 2000, 50.5% of IPC's
fixed maturity portfolio (based on market value) was held in cash, United
States Treasury notes and in securities rated AAA, and 35.2% was held in
securities rated AA. The average modified duration of IPC's fixed
maturity portfolio was 2.4 years. IPC's portfolio does not contain any
investments in real estate or mortgage loans. We believe that IPCRe's
$300 million revolving credit facility, and the relatively high quality
of its investment portfolio, provide sufficient liquidity to meet IPC's
cash demands.
Neither the Company, IPCRe nor Services have any material commitments for
capital expenditures.
YEAR 2000 DISCLOSURE STATEMENT
IPCRe is principally an excess of loss property catastrophe reinsurer.
IPCRe's reinsurance policies did not specifically include Y2K as a
covered event and IPCRe did not intend to provide specific coverage for
losses arising from Y2K events. We carefully monitored the terms of
policy renewals with respect to the extent that they oblige us to provide
such coverage and, with respect to the January 1, 1999 renewals, we
declined certain business.
Although no significant property damage has been reported with Y2K as its
primary cause, a limited number of commercial policyholders have sought a
response from their property insurers for compensation for remedial
costs. These cases involve a creative interpretation of the sue and
labour clause in policies, which is designed to compensate policyholders
for costs involved in efforts to mitigate losses from insured events. The
outcome of these cases is uncertain but, given the limited number of
cases, we currently believe that such cases are unlikely to have a
significant impact, if any, on IPCRe's operations.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
IPCRe commissioned an independent Value at Risk ("VAR") analysis, to
estimate the maximum potential loss of fair value for each segment of
market risk, as of December 31, 1999. VaR is a summary statistical
measure that uses historical interest and foreign currency exchange
rates and equity prices and estimates of the volatility and correlation
of each of these rates and prices to calculate the maximum loss that
could occur within a given statistical confidence level and time
horizon. The independent analyst calculated the VaR with respect to the
net fair value of IPCRe's financial instrument assets as of December 31,
1999. This calculation used the variance-covariance (delta-normal)
methodology. The calculation used daily historical interest and foreign
currency exchange rates and equity prices in the two year period ended
December 31, 1999. The VaR model estimated the volatility of each of
these rates and equity prices and the correlation among them. For
interest rates, the yield curve was constructed using eleven separate
points on the curve to model possible curve movements. Thus, the VaR
measured the sensitivity of the asset portfolio to each of the
aforementioned market risk exposures. These sensitivities were then
applied to a database which contained both historical ranges of
movements in all market factors and the correlations among them. The
results were aggregated to provide a single amount that depicts the
maximum potential loss in fair value at a confidence level of 95 percent
for a time period of one month. At December 31, 1999 the VaR of
IPCRe's investment portfolio was approximately $11.5 million.
8
<PAGE> 9
There have been no material changes to the composition of IPCRe's
investment portfolio during the three months to March 31, 2000. Further,
there were no material changes to interest rates or foreign exchange
rates in the three months. In addition, to reduce the potential impact of
exchange rate movements between the U.S. dollar, Australian dollar and
the Euro, on the liabilities arising out of the Sydney hailstorm of April
1999 and the European storms of December 1999, we have purchased both
Australian dollars and Euros, and at March 31, 2000 we held U.S.$0.6
million in Australian dollar time deposits, and U.S.$1.5 million in Euro
time deposits. We have also entered some forward purchase agreements as
follows:
<TABLE>
<CAPTION>
Buy Sell Date
--- ---- ----
<S> <C> <C> <C>
Eur 6.93 million U.S.$7.00 million April 26/00
Aus.$8.03 million U.S.$5.00 million April 26/00
Aus.$8.02 million U.S.$5.00 million June 26/00
Eur 3.16 million U.S.$3.50 million Aug.25/00 (net transactions)
U.S.$0.00 million Eur 0.43 million Nov.24/00 (net transactions)
</TABLE>
There were no forward purchase/sale contracts in effect during 1999.
Accordingly, we do not believe that there has been any material change to
the amount of market risk to which IPC is exposed, in the period from
January 1 to March 31, 2000.
NOTE ON FORWARD-LOOKING STATEMENTS
This report contains certain forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Exchange Act. Forward-looking statements are statements other than historical
information or statements of current condition. Some forward-looking statements
may be identified by use of terms such as "believes", "anticipates", "intends",
or "expects". These forward-looking statements include but are not limited to
expectations regarding market conditions, trends in pricing, and claims
activity, and are based on a number of assumptions that are subject to risk and
uncertainty, including potential market response and the effects on terms of
renewals to recent and historic catastrophic events. In light of the risks and
uncertainties inherent in all forward-looking statements, the inclusion of such
statements in this report should not be considered as a representation by the
Company or any other person that the objectives or plans of the Company will be
achieved. Numerous factors could cause the Company's actual results to differ
materially from those in the forward-looking statements, including: greater than
expected severity or frequency of catastrophic events, reductions in pricing, or
a decrease in demand for property catastrophe reinsurance.
9
<PAGE> 10
PART II-OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
NONE
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
NONE
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
NONE
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
NONE
ITEM 5. OTHER INFORMATION
NONE
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Unless otherwise indicated, exhibits are incorporated by
reference to the corresponding numbered exhibits to the
Company's Registration Statement on Form S-1 (Registration
No. 333-00088).
EXHIBIT
NUMBER DESCRIPTION
------ -----------
3.1 Memorandum of Association of the Company
3.2 Amended and Restated Bye-laws of the Company
3.3 Form of Memorandum of Increase of Share Capital
11.1 * Reconciliation of the numerator and denominator for basic
and diluted net income per common share ("EPS").
27.1 * Financial Data Schedule
* Filed herewith
(b) Reports on Form 8-K
NONE
10
<PAGE> 11
IPC HOLDINGS, LTD.
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE
REGISTRANT HAS DULY CAUSED THIS REPORT TO BE SIGNED ON ITS BEHALF BY THE
UNDERSIGNED THEREUNTO DULY AUTHORIZED.
IPC HOLDINGS, LTD.
------------------
(REGISTRANT)
DATE MAY 9, 2000 /s/ John P. Dowling
----------- ------------------------------
JOHN P. DOWLING
PRESIDENT AND CHIEF EXECUTIVE OFFICER
DATE MAY 9, 2000 /s/ John R. Weale
----------- ------------------------------
JOHN R. WEALE
VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
11
<PAGE> 12
EXHIBIT INDEX
Unless otherwise indicated, exhibits are incorporated by reference to the
corresponding numbered exhibits to the Company's Registration Statement
on Form S-1 (Registration No. 333-00088).
EXHIBIT
NUMBER DESCRIPTION
------ -----------
3.1 Memorandum of Association of the Company
3.2 Amended and Restated Bye-laws of the Company
3.3 Form of Memorandum of Increase of Share Capital
11.1 * Reconciliation of the numerator and denominator for
basic and diluted net income per common share ("EPS")
27.1 * Financial Data Schedule
* Filed herewith
12
<PAGE> 1
EXHIBIT 11.1
IPC HOLDINGS, LTD. AND SUBSIDIARIES
RECONCILIATION OF BASIC AND DILUTED NET INCOME PER COMMON SHARE
(Expressed in thousands of United States dollars, except for per share amounts)
- --------------------------------------------------------------------------------
A reconciliation of the numerator and denominator for basic and diluted EPS is
given in the following table:
<TABLE>
<CAPTION>
Three months ended March 31, 2000 Income Shares Amount per Share
- --------------------------------- ------ ------ ----------------
<S> <C> <C> <C>
Basic EPS $ 9,811 25,033,932 $0.39
Effect of Dilutive Options 67,638
Diluted EPS $ 9,811 25,101,570 $0.39
Three months ended March 31, 1999
- ---------------------------------
Basic EPS $ 15,216 25,033,932 $0.61
Effect of Dilutive Options 1,138,764
Diluted EPS $ 15,216 26,172,696 $0.58
</TABLE>
- --------------------------------------------------------------------------------
13
<TABLE> <S> <C>
<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE REPORT
ON FORM 10-Q OF IPC HOLDINGS, LTD. FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO THE FINANCIAL STATEMENTS (AND THE
NOTES THERETO) CONTAIN IN SUCH REPORT.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<DEBT-HELD-FOR-SALE> 483,080
<DEBT-CARRYING-VALUE> 0
<DEBT-MARKET-VALUE> 0
<EQUITIES> 80,669
<MORTGAGE> 0
<REAL-ESTATE> 0
<TOTAL-INVEST> 563,749
<CASH> 21,526
<RECOVER-REINSURE> 0
<DEFERRED-ACQUISITION> 5,626
<TOTAL-ASSETS> 659,439
<POLICY-LOSSES> 84,009
<UNEARNED-PREMIUMS> 50,933
<POLICY-OTHER> 0
<POLICY-HOLDER-FUNDS> 0
<NOTES-PAYABLE> 0
0
0
<COMMON> 250
<OTHER-SE> 514,651
<TOTAL-LIABILITY-AND-EQUITY> 659,439
22,727
<INVESTMENT-INCOME> 7,587
<INVESTMENT-GAINS> (143)
<OTHER-INCOME> 0
<BENEFITS> 14,912
<UNDERWRITING-AMORTIZATION> 2,491
<UNDERWRITING-OTHER> 2,680
<INCOME-PRETAX> 9,811
<INCOME-TAX> 0
<INCOME-CONTINUING> 9,811
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 9,811
<EPS-BASIC> 0.39
<EPS-DILUTED> 0.39
<RESERVE-OPEN> 0
<PROVISION-CURRENT> 0
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 0
<PAYMENTS-PRIOR> 0
<RESERVE-CLOSE> 0
<CUMULATIVE-DEFICIENCY> 0
</TABLE>
