32 $1.54 $2.30 per share, compared to $72. There is still
pressure on financial strength ratings as a result of legacy issues,
predominantly U. The actual contracts ceded are at IPC's underwriters' judgement
in optimizing the risk profile of the portfolio, which can cause premiums
ceded to vary as a proportion of our gross writings, from quarter to quarter. In the
second quarter of 2005 we benefitted from a dividend of $0. Generally, net realized gains and losses fluctuate
from period to period, depending on the individual securities sold.7 million in the
corresponding period in 2004.9 million for the second
quarter of 2004.
Our net acquisition costs, which are primarily commissions and fees paid
to brokers for the production of business, were $8. For the six months ended June 30, 2005, general and
administrative expenses were $11. cedents is significantly higher in 2005, because
of the increased level of loss reserves collateralized. This conference call will
be broadcast simultaneously on the internet which can be accessed from our
website at http://www . We do not intend, and are under no obligation, to
update any forward-looking statement contained in this press release.S., New
York City time, on May 17, 2005 and a Settlement Date of June 2, 2005 .
The Offer is subject to a number of conditions which are set forth
in the Offer to Purchase.

rajesh equivalence

4 million, compared to $25.
Our expense ratio, which is the ratio of net acquisition costs plus
general and administrative expenses to net premiums earned, was 16. Some forward-looking statements
may be identified by our use of terms such as "believes," "anticipates,"
"intends," "expects" and similar statements of a future or forward-looking
nature.3% 18.

Business Editors /Energy Editors

BELLEVUE, Wash. The Offer is made solely by the Offer to Purchase.

proofs infinitesimal

28 $2 . This measure may not, however, be comparable to similarly titled
measures used by companies outside of the insurance industry.1 million, or $1.4 million.1 million in the corresponding period of 2004.

2 million,
compared to $161. In addition, we
benefitted from an 11.4 million, compared to $4. Our losses in the second quarter of 2005 included
$15. In addition to the
losses mentioned above, we incurred losses from cyclone Erwin in January
($20.7 million in the
corresponding period of 2004.0% for the second quarter of 2004.7%, compared to
17.
On July 26, 2005, the Board of Directors declared a quarterly dividend of
$0. Eastern time tomorrow, July 27, 2005.$0." If Capital Securities are accepted for
payment pursuant to the Offer, Holders who validly tender their
Capital Securities pursuant to the Offer prior to the Early Tender
Date will receive the Tender Offer Consideration plus the Early Tender
Premium and accumulated and unpaid distributions, and holders who
validly tender their Capital Securities after the Early Tender Date
and prior to the Expiration Time will receive only the Tender Offer
Consideration and accumulated and unpaid distributions but will not
receive the Early Tender Premium. Security Outstanding Date Date Security
----------------------------------------------------------------------
74531LAC0 8.S. toll-free )
or (212) 430-3774 (for banks and brokers).

This press release contains forward-looking statements conveying
management's expectations as to the future based on plans, estimates
and projections at the time the statements are made.

reals omitted

This
was reflected in July 1 renewals, where pricing generally held firm, and loss-
impacted contracts saw rate increases of between 15% and 25%.1 million in the second quarter of 2005,
compared to $78.7 million from the
fund of hedge funds in which we invest .0 million for the Suncor energy loss from January, 2005, as well as
reserves established for pro rata treaty business. For the six months ended June 30, 2005, our incurred net
losses and loss adjustment expenses totalled $62.4 million in the second quarter of 2004. In
addition, we benefitted from a reduction in profit commissions accrued on a
contract where we have established a new loss reserve for a prior year event.S.

omitted mathematic

We believe that the presentation of
net operating income provides useful information regarding our results of
operations because it follows industry practice, is followed closely by
securities analysts and rating agencies, and enables investors and securities
analysts to make performance comparisons with our peers in the insurance
industry.6 million
increase in the second quarter of 2005, compared to the corresponding period
of 2004.5 million, offsetting business not renewed totalling $15.4 million for the quarter ended
June 30, 2004.5 million to our

retrocessional facilities, compared to $16.9 million in the quarter ended
June 30, 2005, compared to $14. A non -exclusive list of important
factors that could cause actual results to differ materially from those in
such forward-looking statements includes the following: (a) the occurrence of
natural or man -made catastrophic events with a frequency or severity exceeding
our estimates; (b) any lowering or loss of one of our financial ratings of our
wholly-owned subsidiary, IPCRe Limited; (c) the effect of competition on
market trends and pricing; (d) changes in general economic conditions,
including changes in interest rates and/or equity values in the United States
of America and elsewhere; and (e) other factors set forth in our most recent
reports on Form 10-K, Form 10-Q and other documents on file with the
Securities and Exchange Commission., New York City time,
on June 1, 2005, unless extended (the "Price Determination Date"), as
reported in the Bloomberg Bond Trader Page BBT4 (the "Quotation
Report") or any recognized quotation source selected by Puget Sound
Energy in its sole discretion if the Quotation Report is not available
or is manifestly erroneous, plus (y) the fixed spread set forth below
(the "Fixed Spread") minus (ii) accumulated and unpaid distributions
from the most recent payment of such distributions preceding the
Optional Early Settlement Date to, but excluding such date (the
consideration referred to in clause (i) minus the amount of
accumulated and unpaid distributions referred to in clause (ii), being
referred to as the "Total Consideration "), minus (iii) an amount equal
to the Early Tender Premium of $40 per $1,000 liquidation amount of
Capital Securities (the "Early Tender Premium").

factorizations proofs

1 million, or $1.23 $3.06
Diluted net income
per common share $1.
President and Chief Executive Officer Jim Bryce commented: "We are
heartened by the continued discipline of underwriters in our market, where
conditions continue to be healthy, with the property catastrophe segment of
the reinsurance industry holding up the best of all segments. Clearly the
active start to the hurricane season, with five named storms and two major
hurricanes by mid-July, should help maintain the resolve of underwriters.0 million , compared to $72. Reinstatement premiums were $7.1 million, an increase of 3.
We earned net premiums of $87.1 million in the second quarter of 2004, an increase of 11.6 million in the
corresponding period of 2004. Our loss ratio for the six-month period ended June 30, 2005,
was 36.4 million for the second
quarter of 2005, compared to $8.8 million, compared to $10. In addition to the increases in administrative
service fees and professional fees noted above, the expense for letters of
credit provided to our U.m. Puget Sound Energy has engaged Morgan
Stanley as Dealer Manager for the Offer .

mongoven textism

32 $1.0 million, or $1.90 per share, in the corresponding period of 2004.3 million, which more than offset business that we did not renew, which
totalled $2.0 million of net gains in the
second quarter of 2004.1% for the quarter ended June 30, 2005, compared to 6.
This press release does not constitute an offer to purchase the
Capital Securities.

textism rectangles

1 million, or $1.90

Weighted average
number of
common shares
-- basic 48,348,475 48,274,276 48,339 ,643 48,262,050
Weighted average
number of
common shares
-- diluted 48,426,669 48,354,678 48,427,886 48,355,325

Non-GAAP Financial Measures:
In addition to the GAAP financial measures set forth herein, IPC Holdings,
Ltd.1 million, or $2.9%, compared to 11.7% 17.

Fibonacci numbers, named after Italian mathematician Leonardo Fibonacci , are the numbers in the Fibonacci sequence 0, 1, 1, 2, 3, 5, 8, 13, 21, .

factorizations recreations

53 per
share, for the second quarter of 2004. For the six months ended June 30, 2005,
net income was $108.4 million of premiums to our
retrocessional facilities, compared with $6. For the six months ended June 30, 2005, net
investment income was $32.
The reasons for the reduction are as described above. Holders of Capital Securities must
tender their Capital Securities prior to the Expiration Time to
receive the Tender Offer Consideration (as defined below). Any extension, delay,
termination or amendment of the Offer or the Early Tender Date will be
followed as promptly as practicable by a public announcement thereof .m.m. The forward-looking statements contained in this press
release include statements related to the Offer, including the
Expiration Time, Early Tender Date and possible completion of the
Offer .

2n derivations

49 per
share for the second quarter of 2004.6% increase in the balance of invested assets, as well
as the improvement in the average yield on our fixed income portfolio noted
above.0 million).

6 million, compared to $18.00% 5:00 p.

Company Information and Forward Looking Statements

Puget Sound Energy is a regulated utility company that generates,
purchases and sells electricity and purchases, transports and sells
natural gas.

.

amof infinitesimal

0 million, or $2.23 $3.3 million of development from the hurricanes which made landfall in
Florida in the third quarter of last year, primarily as a result of three
cedents significantly revising their loss estimates in the quarter,
$6.4% for the corresponding period of 2004.8 million in the second
quarter of 2005, compared to $5. For
the six months ended June 30, 2005, our expense ratio was 16.8% for the corresponding period of 2004.

This press release contains certain forward-looking statements within the
meaning of the U ., through its wholly owned subsidiary IPCRe Limited,
provides property catastrophe reinsurance and , to a limited extent, aviation,
property-per-risk excess and other short-tail reinsurance on a worldwide
basis. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of United States dollars,
except for per share amounts)

As of As of
June 30, 2005 December 31, 2004
(unaudited )
ASSETS:

Fixed maturity investments:
Available for sale, at
fair value $1,485,382 $1,444,576
Equity investments,
available for sale , at
fair value 426,002 428,620
Cash and cash equivalents 35,953 27,898
Reinsurance premiums
receivable 180,249 85,086
Deferred premiums ceded 12,612 4,558
Losses and loss adjustment
expenses recoverable 4,385 5,006
Accrued investment income 17,016 20,695
Deferred acquisition costs 19,642 8,424
Prepaid expenses and
other assets 5,968 3,427
TOTAL ASSETS $2,187,209 $2,028,290

LIABILITIES:

Reserve for losses and
loss adjustment expenses $232,536 $274,463
Unearned premiums 181,731 68,465
Reinsurance premiums payable 12,600 3,387
Deferred fees and commissions 4,001 1,475
Accounts payable and
accrued liabilities 13,798 12,061
TOTAL LIABILITIES 444,666 359,851

SHAREHOLDERS' EQUITY:

Share capital
(Common shares outstanding,
par value U.
The Offer will expire at 5:00, New York City time, on June 16,
2005, unless extended (such date and time, as the same may be
extended, the "Expiration Time").

Redemption
Aggregate Price in
Liquidation Earliest Earliest
Amount Redemption Redemption Reference
CUSIP No.

formulae spelled

8 million, compared to
$283.5%.
Reinstatement premiums for the six months to June 30, 2005, totalled
$10.1 million in the second quarter of 2004.m. In light of the inherent risks and uncertainties in all forward-
looking statements, the inclusion of such statements in this press release
should not be considered as a representation by us or any other person that
our objectives or plans will be achieved. Forward-looking
statements involve inherent risks and uncertainties and we caution you
that a number of important factors could cause actual results to
differ materially from those contained in any such forward-looking
statement.

recreations preceding

8 million less in the quarter ended June 30, 2005,
compared to the second quarter of 2004. For the six months ended
June 30, 2005, we wrote gross premiums of $292.0 million, compared to
$7.4 million, compared to
$18.3% for the
second quarter of 2005, compared to 18.ipcre.bm, under the 'News' / 'Webcasts ' section, and a
replay of the call will also be available at this site from 10:30 a. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
on which they are made.4% 24.
Securities Treasury
Note due
April 30,
2007

Hypothetical
Early Tender Early Hypothetical Relevant
Fixed Tender Offer Tender Total Bloomberg
Spread Date Consideration Premium Consideration Page
--- -------------------------------------------------------------------
1.

2n factorizations

(Nasdaq: IPCR) today reported net income for the quarter ended June 30, 2005,
of $64.32 per share, compared to $74.53 $2 .7 million, compared to $3.0 million in the corresponding period of 2004.

IPC Holdings, Ltd .0% 16.8%
Combined ratio
(Sum of 1 + 2) 44.116 3.
See Annexes A and B of the Offer to Purchase for more detailed
calculations. toll-free)
or 212-761-1864 (collect ), attention: Arthur Rubin.

, each of which, after the second is the sum of the two previous ones.

infinitesimal 2n

Investors are
cautioned not to place undue reliance on net operating income as a non-GAAP
measure in assessing IPC's overall financial performance. By comparison, we received a dividend
of $2. Dividends from our investments in equity and
hedge funds totaled $5.0 million from the sale of investments in the
quarter ended June 30, 2005, compared to $2.0 million), and the south-east Pacific Tsunami from late December 2004
($8. Statements that are not
historical facts, including statements about our beliefs , plans or
expectations, are forward-looking statements.2% 36. The Total
Consideration minus the Early Tender Premium is referred to as the
"Tender Offer Consideration., $1,066.S. Requests for
documents should be directed to Global Bondholder Services
Corporation, the Information Agent , at (866) 873-7700 (U. The service territory of Puget Sound Energy covers
approximately 6,000 square miles, principally in the Puget Sound
region of Washington State.

amof 2n

8 million,
or $3. "Net operating income" and its per share
equivalent, as used herein, differ from "net income" and its per share
equivalent under GAAP, which the Company believes is the most directly
comparable GAAP measure ."
In the quarter ended June 30, 2005, we wrote gross premiums of
$87.6 million of ceded premium in the
corresponding period of 2004. Such dividends will be declared
periodically provided the performance of the fund is positive.6 million in the six months ended June 30, 2005,
compared to $3.m.

fibonacci proportion

5 million in the second quarter of
2005, compared to $(0.01) 484 484
Additional paid-in capital 856,851 854,797
Deferred stock grant
compensation (3,115) (2,899)
Retained earnings 809,456 724,907
Accumulated other
comprehensive income 78,867 91,150
TOTAL SHAREHOLDERS' EQUITY 1,742,543 1,668 ,439

TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY $2,187,209 $2,028,290

IPC HOLDINGS, LTD.231% $80,250,000 June 1, 104.S.

recreations fibonacci

S. Demand remains
high, spurred on by exposure modeling, rating agency requirements, issues
surrounding finite reinsurance and an active hurricane season. In the second quarter of 2005 we wrote new business of
$4.
In the second quarter of 2005, we ceded $9.7 million in the second quarter of 2004. There has also been a
small increase in compensation expense.

Our management will be holding a conference call to discuss these results
at 8:30 a.S. federal securities laws.

sequences mathematic

Quarter ended Six months ended
June 30, June 30,
2005 2004 2005 2004
(unaudited) (unaudited) (unaudited) (unaudited)

Expressed in thousands of United States dollars,
except per share amounts

NET INCOME $64,050 $74,148 $ 108,005 $ 147,776

Adjustment for net
realized (gains)
losses (1,032 ) (2,002) 2,178 (7,665)
NET OPERATING INCOME $63,018 $72,146 $ 110 ,183 $ 140,111

Basic net income
per common share $1.06

Net operating income
per common share
(diluted) $1. For the six months ended June 30 , 2005,
net operating income was $110.
We realized a net gain of $1. These
costs have not changed proportionately to the increase in earned premiums,
primarily because of a number of contracts written in the first quarter of
2005 where the fee or brokerage is being paid by the ceding company . The
increase is the result of service fees incurred which are based on earned
premiums, and professional fees, offset by savings in a number of operating
expense categories. These statements are based on
our current plans, estimates and expectations.231% Capital Securities of Puget Sound Energy
Capital Trust I (CUSIP No.

2n equivalence

Net operating income is a common performance
measurement, which, as calculated by the Company, is net income excluding net
realized gains and losses on investments.3%.7 million . However, excess of loss premium
adjustments were $1.
Similarly, adjustment premiums in the period were $3.6 million for the corresponding period in 2004.5%,
which is proportionate with the increase in written premiums, combined with
the decrease in adjustment premiums, which are fully earned when written. For the
six months ended June 30, 2005, we realized a net loss of $2.2% for the second
quarter of 2004.4 million for the corresponding six months of 2004.
For the six months ended June 30, 2005 , net acquisition costs were
$16.
General and administrative expenses totaled $5.24 per share , payable on September 22, 2005, to shareholders of record on
September 6, 2005. 74531LAC0) (the "Capital Securities").
Tendered Capital Securities may not be withdrawn after the Early
Tender Date, except in limited circumstances. Investors are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof.

proportion platonic

7 million in the corresponding period of 2004, an increase of
4.2 million from
the sale of investments, compared to a net gain of $7. Our loss ratio, which is
the ratio of net losses and loss adjustment expenses to net premiums earned,
was 28.1 million in the corresponding period of 2004.9% 11.2% 53.m. Payment for
Capital Securities validly tendered and accepted for payment and not
validly withdrawn will be made in same day funds promptly following
the applicable Settlement Date (as defined in the Offer to Purchase).

derivations platonic

casualty business, which is clearly not a problem that
impacts IPCRe. The demand for quality security continues, with fewer and fewer
highly rated companies to meet that demand.
For the six months ended June 30, 2005, we ceded $18.6 million from this investment.

IPC HOLDINGS, LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME

(Expressed in thousands of United States dollars)

Quarter ended June 30, Six months ended June 30,
2005 2004 2005 2004
(unaudited) (unaudited) (unaudited ) (unaudited)
REVENUES:

Gross premiums
written $86,994 $72,906 $ 292,835 $283,063
Premiums ceded (9,433) (6,384) (18,456) (16,563)
Net premiums written 77,561 66,522 274,379 266,500
Change in unearned
premium reserve, net 9,568 11,623 (105,212) (104,794)
Net premiums earned 87,129 78,145 169,167 161,706
Net investment income 14 ,857 14,082 32,372 25,645
Net realized gains
(losses) on
investments 1,032 2,002 (2,178) 7,665
Other income 1,027 906 2,136 1,822
104,045 95,135 201,497 196,838

EXPENSES:

Net losses and loss
adjustment expenses 24,434 4,860 62,370 18,408
Net acquisition costs 8,440 8,359 16,562 18,099
General and
administrative
expenses 5,778 5,666 11,794 10,746
Net exchange loss 1,343 2,102 2,766 1,809
39,995 20,987 93,492 49,062

NET INCOME $64,050 $74,148 $108,005 $147,776

Loss and loss
expense ratio (1) 28. Holders of
Capital Securities must tender their Capital Securities prior to 5:00
p.

.

sequences rajesh

IPC Holdings Ltd. Reports Second Quarter 2005 Results

06 per share, in the corresponding period in 2004.49 $2. These items are excluded because
they are not considered by management to be relevant indicators of the
performance of or trends in our business operations , but rather of the
investment and credit markets in general. The effect of changes to business written for existing
clients, which includes changes to program structure and/or renewal dates, as
well as pricing and changes to foreign exchange rates, was a $6.2) million in the second quarter of 2004 , due to the
significantly higher level of incurred losses. For
the six months ended June 30, 2005 , net earned premiums were $169.6%
We earned net investment income of $14.2%

----Puget Sound
Energy, the wholly-owned utility subsidiary of Puget Energy (NYSE:
PSD), announced today that it has commenced a cash tender offer (the
"Offer") for any and all of the $80,250,000 aggregate outstanding
liquidation amount of 8.625%
Capital 2007 U. Questions regarding the Offer
should be directed to Morgan Stanley at 800-624-1808 (U.

mathematic textism

30 $1.
Securities and Exchange Commission.

Results of Operations:
For the quarter ended June 30, 2005, our net operating income was
$63.28 per share, compared to
$140.S. New business in the period totalled
$20.
In the quarter ended June 30, 2005, we incurred net losses and loss
adjustment expenses of $24.1% 6.6% 29.
The consideration for each $1,000 liquidation amount of Capital
Securities tendered and accepted for payment pursuant to the Offer
shall be an amount (calculated as described in Annex A to the Offer to
Purchase, and rounded to the nearest cent per $1,000 liquidation
amount of Capital Securities) equal to (i) the sum of (A) the present
value as of the Optional Early Settlement Date, as such date is
expected to occur as of the Price Determination Date (as defined
below), of the redemption price for the Capital Securities if redeemed
on the earliest redemption date (the "Earliest Redemption Date") set
forth below and (B) the present value as of the Optional Early
Settlement Date, as such date is expected to occur as of the Price
Determination Date, of all remaining distributions to be made on the
Capital Securities from (but not including) the most recent payment of
distributions up to the applicable Earliest Redemption Date,
determined in accordance with standard market practice on the basis of
a yield (the "Tender Offer Yield") from the Optional Early Settlement
Date, as such date is expected to occur as of the Price Determination
Date, to the applicable Earliest Redemption Date equal to the sum of
(x) the yield to maturity corresponding to the bid side price (the
"Reference Yield") of the United States Treasury Security set forth
below (the "Reference Security") as of 2:00 p.35 $40 $1,106 .35 BBT4
New York
City time,
on June 1,
2005

All references herein to hypothetical consideration are based on
the reference yield of the Reference Security as of 2:00 p. We
do not undertake to update any of these statements in light of new
information or future events.

preceding sequences

PEMBROKE, Bermuda, IPC Holdings, Ltd.23 per share, compared to $147. (the "Company ") has included certain non-GAAP financial measures in this
press release within the meaning of Regulation G as promulgated by the U.2 million, or $2.9 million in the second quarter of 2004, an
increase of 19. We also
benefitted from a small but positive increase in the average yield of our
fixed income investment portfolio. Eastern
time until 12:00 midnight Eastern time on Wednesday, August 3, 2005 .4%
Expense ratio (2) 16.

Puget Sound Energy Announces Tender Offer

The
Offer is described in the Offer to Purchase dated May 18, 2005 (the
"Offer to Purchase")., New York City time , on June 1, 2005, unless extended (such date
and time, as the same may be extended, the "Early Tender Date") to
receive the Early Tender Premium (as defined below).