##### 









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-K


|   |  |                                                                                             
|-- |  | --------------------------------------------------------------------------------------------
|þ  |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934    
|  
|   |  | For the fiscal year ended December 31, 2004                                                 
|  
|or
|  
|o  |  | 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
    incorporation or organization) |  | (I.R.S. Employer
    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)


Securities registered pursuant to Section 12(b) of the
Act: None


Securities registered pursuant to Section 12(g) of the
Act: Common Shares, par value $0.01 per share


þ o


þ


þ o














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DOCUMENTS INCORPORATED BY REFERENCE






1



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IPC HOLDINGS, LTD.


TABLE OF CONTENTS


|         |  |                                                                                                                      |  |        |        |  |  | 
|-------- |  | -------------------------------------------------------------------------------------------------------------------- |  | ------ | ------ |  |  | 
|         |  |                                                                                                                      |  | Page   |       
|Item     |  |                                                                                                                      |  |        | Number | 
|         |  |                                                                                                                      |  |        |        | 
|         |  |                                                                                                                      |  | PART I |        |  |  | 
|1.       |  | Business                                                                                                             |  |        | 3      | 
|2.       |  | Properties                                                                                                           |  |        | 24     | 
|3.       |  | Legal Proceedings                                                                                                    |  |        | 24     | 
|4.       |  | Submission of Matters to a Vote of Security
    Holders                                                              |  |        | 24     | 
|PART II 
|5.       |  | Market for Registrants Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities |  |        | 25     | 
|6.       |  | Selected Financial Data                                                                                              |  |        | 26     | 
|7.       |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations                            |  |        | 27     | 
|7A.      |  | Quantitative and Qualitative Disclosures
    about Market Risk                                                       |  |        | 27     | 
|8.       |  | Financial Statements and Supplementary
    Data                                                                      |  |        | 28     | 
|9.       |  | Changes in and Disagreements with
    Accountants on Accounting and Financial Disclosure                             |  |        | 28     | 
|9A.      |  | Controls and Procedures                                                                                              |  |        | 28     | 
|9B.      |  | Other Information                                                                                                    |  |        | 30     | 
|PART III
|10.      |  | Directors and Executive Officers of the
    Registrant                                                               |  |        | 30     | 
|11.      |  | Executive Compensation                                                                                               |  |        | 30     | 
|12.      |  | Security Ownership of Certain Beneficial
    Owners and Management and Related Stockholder Matters                   |  |        | 30     | 
|13.      |  | Certain Relationships and Related
    Transactions                                                                   |  |        | 30     | 
|14.      |  | Principal Accounting Fees and Services                                                                               |  |        | 30     | 
|PART IV 
|15.      |  | Exhibits and Financial Statement
    Schedules                                                                       |  |        | 30     | 

2



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PART I


Special Note Regarding Forward-Looking Information









|        |         
|------- | --------
|Item 1. | Business

General Development of the Business


Overview.




3



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Internet Address: www.ipcre.bm www.ipcre.bm/sections/financial-info/frms quarterlies.html.


Recent Industry and Legislative Developments




4



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Business Strategy




5



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Disciplined Risk Management.


Capital-Based Exposure Limits.


Client Selection and Profile.


Capital Management and Shareholder Returns.


Disciplined Investment Management.


Business


General.


6



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Excess of Loss Reinsurance Contracts.




7



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|                           |       |                         |         |            |          |  |        |           |                |  |            |       |  |          |         |                |           |            |      |          |   |  |          |       |  |           |         |         |  |  |      |       |   |  |       |       | 
|-------------------------- | ----- | ----------------------- | ------- | ---------- | -------- |  | ------ | --------- | -------------- |  | ---------- | ----- |  | -------- | ------- | -------------- | --------- | ---------- | ---- | -------- | - |  | -------- | ----- |  | --------- | ------- | ------- |  |  | ---- | ----- | - |  | ----- | ----- | 
|                           |       | Year Ended December 31, |        
|                           |       |                         |        
|                           |       | 2004                    |         |            | 2003     |  |        | 2002      |               
|                           |       |                         |         |            |          |  |        |           |               
|                           |       |                         |         | Percentage |          |  |        |           |                |  | Percentage |       |  |          |         |                |           | Percentage |      |          |  
|                           |       |                         |         | of         |          |  | Number |           |                |  |            | of    |  |          | Number  |                |           |            |      | of       |   |  | Number   |      
|Type of Reinsurance        |       | Premiums                |         |            | Premiums |  |        | of        |                |  | Premiums   |       |  | Premiums |         |                | of        |            |      | Premiums |   |  | Premiums |       |  | of        |        
|Assumed                    |       | Written                 |         |            | Written  |  |        | Contracts |                |  | Written    |       |  | Written  |         |                | Contracts |            |      | Written  |   |  | Written  |       |  | Contracts |        
|                           |       |                         |         |            |          |  |        |           |                |  |            |       |  |          |         |                |           |            |      |          |   |  |          |       |  |           |        
|                           |       | (In thousands)          |         |            |          |  |        |           | (In thousands) |  |            |       |  |          |         | (In thousands) |           |            |      |          |  
|Catastrophe excess of loss |       | $                       | 328,261 |            |          |  | 86.7   | %         |                |  | 1,808      |       |  | $        | 272,507 |                |           |            | 84.4 | %        |   |  | 1,859    |       |  | $         | 208,930 |         |  |  | 80.4 | %     |   |  | 1,550 |      
|Risk excess of loss        |       |                         | 10,895  |            |          |  | 2.9    | %         |                |  | 61         |       |  |          | 10,341  |                |           |            | 3.2  | %        |   |  | 89       |       |  |           | 10,547  |         |  |  | 4.1  | %     |   |  | 76    |      
|Retrocessional reinsurance |       |                         | 15,783  |            |          |  | 4.2    | %         |                |  | 106        |       |  |          | 16,956  |                |           |            | 5.3  | %        |   |  | 85       |       |  |           | 15,578  |         |  |  | 6.0  | %     |   |  | 87    |      
|Aviation(1)                |       |                         | 15,028  |            |          |  | 4.0    | %         |                |  | 64         |       |  |          | 10,621  |                |           |            | 3.3  | %        |   |  | 43       |       |  |           | 9,304   |         |  |  | 3.6  | %     |   |  | 34    |      
|Other                      |       |                         | 8,442   |            |          |  | 2.2    | %         |                |  | 84         |       |  |          | 12,337  |                |           |            | 3.8  | %        |   |  | 94       |       |  |           | 15,326  |         |  |  | 5.9  | %     |   |  | 83    |      
|                           |       |                         |         |            |          |  |        |           |                |  |            |       |  |          |         |                |           |            |      |          |   |  |          |       |  |           |        
|                           | Total |                         | $       | 378,409    |          |  |        | 100.0     | %              |  |            | 2,123 |  |          | $       | 322,762        |           |            |      | 100.0    | % |  |          | 2,170 |  |           | $       | 259,685 |  |  |      | 100.0 | % |  |       | 1,830 | 
|                           |       |                         |         |            |          |  |        |           |                |  |            |       |  |          |         |                |           |            |      |          |   |  |          |       |  |           |        






|    |                                                                                                                                                                                                                                                                                  
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | For the 2004, 2003 and 2002 underwriting years, aviation
    included three aviation contracts and two satellite contracts,
    written on a pro rata basis rather than excess of loss. The
    majority of other aviation contracts were written on an excess
    of loss basis.

Catastrophe Excess of Loss Reinsurance.


Risk Excess of Loss Reinsurance.


Retrocessional Reinsurance.


Aviation Reinsurance.


Other Lines of Business.


8



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Policy Features.


Underwriting Services.


Geographic Diversification










9



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|                                  |  |                         |         |            |          |  |        |           |                |  |            |    |  |          |         |                |           |            |       |          |  |  |          |  |  |           |         |  |  |  |       |   |  |  |       | 
|--------------------------------- |  | ----------------------- | ------- | ---------- | -------- |  | ------ | --------- | -------------- |  | ---------- | -- |  | -------- | ------- | -------------- | --------- | ---------- | ----- | -------- |  |  | -------- |  |  | --------- | ------- |  |  |  | ----- | - |  |  | ----- | 
|                                  |  | Year Ended December 31, |        
|                                  |  |                         |        
|                                  |  | 2004                    |         |            | 2003     |  |        | 2002      |               
|                                  |  |                         |         |            |          |  |        |           |               
|                                  |  |                         |         | Percentage |          |  |        |           |                |  | Percentage |    |  |          |         |                |           | Percentage |       |          | 
|                                  |  |                         |         | of         |          |  | Number |           |                |  |            | of |  |          | Number  |                |           |            |       | of       |  |  | Number   | 
|Geographic                        |  | Premiums                |         |            | Premiums |  |        | of        |                |  | Premiums   |    |  | Premiums |         |                | of        |            |       | Premiums |  |  | Premiums |  |  | of        |        
|Area(1)                           |  | Written                 |         |            | Written  |  |        | Contracts |                |  | Written    |    |  | Written  |         |                | Contracts |            |       | Written  |  |  | Written  |  |  | Contracts |        
|                                  |  |                         |         |            |          |  |        |           |                |  |            |    |  |          |         |                |           |            |       |          |  |  |          |  |  |           |        
|                                  |  | (In thousands)          |         |            |          |  |        |           | (In thousands) |  |            |    |  |          |         | (In thousands) |           |            |       |          | 
|United States                     |  | $                       | 147,986 |            |          |  | 39.1   | %         |                |  | 937        |    |  | $        | 136,319 |                |           |            | 42.2  | %        |  |  | 922      |  |  | $         | 117,904 |  |  |  | 45.4  | % |  |  | 707   | 
|Worldwide(2)                      |  |                         | 63,029  |            |          |  | 16.7   | %         |                |  | 204        |    |  |          | 54,491  |                |           |            | 16.9  | %        |  |  | 210      |  |  |           | 36,804  |  |  |  | 14.2  | % |  |  | 206   | 
|Worldwide (excluding the U.S.)(3) |  |                         | 6,523   |            |          |  | 1.7    | %         |                |  | 61         |    |  |          | 15,747  |                |           |            | 4.9   | %        |  |  | 78       |  |  |           | 16,312  |  |  |  | 6.3   | % |  |  | 71    | 
|Europe (including the U.K.)       |  |                         | 109,753 |            |          |  | 29.0   | %         |                |  | 640        |    |  |          | 87,594  |                |           |            | 27.2  | %        |  |  | 629      |  |  |           | 62,861  |  |  |  | 24.2  | % |  |  | 506   | 
|Japan                             |  |                         | 28,124  |            |          |  | 7.4    | %         |                |  | 88         |    |  |          | 15,597  |                |           |            | 4.8   | %        |  |  | 99       |  |  |           | 15,432  |  |  |  | 5.9   | % |  |  | 79    | 
|Australia and New Zealand         |  |                         | 20,422  |            |          |  | 5.4    | %         |                |  | 105        |    |  |          | 10,276  |                |           |            | 3.2   | %        |  |  | 98       |  |  |           | 6,102   |  |  |  | 2.4   | % |  |  | 82    | 
|Other                             |  |                         | 2,572   |            |          |  | 0.7    | %         |                |  | 88         |    |  |          | 2,738   |                |           |            | 0.8   | %        |  |  | 134      |  |  |           | 4,270   |  |  |  | 1.6   | % |  |  | 179   | 
|                                  |  |                         |         |            |          |  |        |           |                |  |            |    |  |          |         |                |           |            |       |          |  |  |          |  |  |           |        
|Total                             |  | $                       | 378,409 |            |          |  | 100.0  | %         |                |  | 2,123      |    |  | $        | 322,762 |                |           |            | 100.0 | %        |  |  | 2,170    |  |  | $         | 259,685 |  |  |  | 100.0 | % |  |  | 1,830 | 
|                                  |  |                         |         |            |          |  |        |           |                |  |            |    |  |          |         |                |           |            |       |          |  |  |          |  |  |           |        








|    |                                                                                                                                                     
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Except as otherwise noted, each of these categories includes
    contracts that cover risks primarily located in the designated
    geographic area.
|   
|(2) | Includes contracts that cover risks primarily in two or more
    geographic zones, including the United States.                                     
|   
|(3) | Includes contracts that cover risks primarily in two or more
    geographic zones, excluding the United States.                                     

10



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|                                  |               |                                            |         |           |                |  |         |                |           |  |         |         |         | 
|--------------------------------- | ------------- | ------------------------------------------ | ------- | --------- | -------------- |  | ------- | -------------- | --------- |  | ------- | ------- | ------- | 
|                                  |               | Aggregate Limit of Liability at January 1, |        
|                                  |               |                                            |        
|Geographic Area                   |               | 2005                                       |         |           | 2004           |  |         | 2003           |          
|                                  |               |                                            |         |           |                |  |         |                |          
|                                  |               | (In thousands)                             |         |           | (In thousands) |  |         | (In thousands) |          
|United States                     |               |                                            |         |           |                |  |         |                |           |  |         |        
|                                  | New England   |                                            | $       | 1,087,617 |                |  | $       | 977,208        |           |  | $       | 742,061 |        
|                                  | Atlantic      |                                            |         | 1,098,190 |                |  |         | 1,034,551      |           |  |         | 776,912 |        
|                                  | Gulf          |                                            |         | 1,053,427 |                |  |         | 978,042        |           |  |         | 740,047 |        
|                                  | North Central |                                            |         | 1,075,801 |                |  |         | 980,491        |           |  |         | 766,722 |        
|                                  | Mid West      |                                            |         | 1,034,271 |                |  |         | 963,394        |           |  |         | 734,521 |        
|                                  | West          |                                            |         | 1,048,816 |                |  |         | 956,375        |           |  |         | 735,521 |        
|                                  | Alaska        |                                            |         | 669,674   |                |  |         | 591,250        |           |  |         | 420,620 |        
|                                  | Hawaii        |                                            |         | 601,819   |                |  |         | 545,847        |           |  |         | 388,733 |        
|                                  |               | Total United States(1)                     |         |           | 1,301,813      |  |         |                | 1,218,265 |  |         |         | 928,784 | 
|Canada                            |               |                                            | 216,977 |           |                |  | 169,402 |                |           |  | 127,134 |        
|Worldwide(2)                      |               |                                            | 272,039 |           |                |  | 212,433 |                |           |  | 150,172 |        
|Worldwide (excluding the U.S.)(3) |               |                                            | 81,417  |           |                |  | 80,139  |                |           |  | 119,852 |        
|Northern Europe                   |               |                                            | 992,525 |           |                |  | 934,122 |                |           |  | 667,887 |        
|Japan                             |               |                                            | 275,210 |           |                |  | 227,655 |                |           |  | 182,008 |        
|Australia and New Zealand         |               |                                            | 312,950 |           |                |  | 233,080 |                |           |  | 60,683  |        








|    |                                                                                                                                                                                                                                                                                   
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The United States in aggregate is not a zone. The degree of
    double-counting in the 8 U.S. zones is
    illustrated by the relation of the aggregate in-force limit of
    liability for the United States compared to the individual
    limits of liability in the 8 zones.
|   
|(2) | Includes contracts that cover risks primarily in two or more
    geographic zones, including the United States.                                                                                                                                                                   
|   
|(3) | Includes contracts that cover risks primarily in two or more
    geographic zones, excluding the United States.                                                                                                                                                                   





Underwriting and Program Limits




11



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12



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Retrocessional Reinsurance Purchased






Marketing








13



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Reserves for Losses and Loss Adjustment Expenses










14



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Investments


General.




|                                    |                                         |                |           |         |      |   |           |         | 
|----------------------------------- | --------------------------------------- | -------------- | --------- | ------- | ---- | - | --------- | ------- | 
|                                    |                                         | December 31,   |          
|                                    |                                         |                |          
|Type of Investment                  |                                         | 2004           |           |         | 2003 |  
|                                    |                                         |                |           |         |      |  
|                                    |                                         | (In thousands) |          
|Fixed Maturities available for sale |                                         |                |           |         |      |   |           |        
|                                    | U.S. Government and government agencies |                | $         | 317,356 |      |   | $         | 311,626 | 
|                                    | Other governments                       |                |           | 156,075 |      |   |           | 260,719 | 
|                                    | Corporate                               |                |           | 778,886 |      |   |           | 612,098 | 
|                                    | Supranational entities                  |                |           | 192,259 |      |   |           | 76,024  | 
|                                    |                                         |                |           |         |      |  
|                                    |                                         |                | 1,444,576 |         |      |   | 1,260,467 |        
|Equities, available for sale        |                                         |                | 428,620   |         |      |   | 319,007   |        
|Cash and cash equivalents           |                                         |                | 27,898    |         |      |   | 91,949    |        
|                                    |                                         |                |           |         |      |  
|                                    |                                         | $              | 1,901,094 |         |      | $ | 1,671,423 |        
|                                    |                                         |                |           |         |      |  







| |   |                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------
| |  | The extent of decline in value                                                                          
|
| |  | The length of time the security is below cost                                                           
|
| |  | The future prospects of the issuer, or in the case of mutual
    funds, the future prospects of the fund

15



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| |   |                                                                                                              
| | - | -------------------------------------------------------------------------------------------------------------
| |  | Whether the decline appears to be related to general market or
    industry conditions, or is issuer-specific
|
| |  | Our intent and ability to hold the security                                                                  
|
| |  | Other qualitative and quantitative factors                                                                   



Maturity and Duration of Portfolio.




|                                       |  |                |           |  |      |   |           | 
|-------------------------------------- |  | -------------- | --------- |  | ---- | - | --------- | 
|                                       |  | December 31,   |          
|                                       |  |                |          
|                                       |  | 2004           |           |  | 2003 |  
|                                       |  |                |           |  |      |  
|                                       |  | (In thousands) |          
|Due in one year or less                |  | $              | 211,795   |  |      | $ | 91,731    | 
|Due after one year through five years  |  |                | 1,187,731 |  |      |   | 1,143,842 | 
|Due after five years through ten years |  |                | 45,050    |  |      |   | 24,894    | 
|                                       |  |                |           |  |      |  
|                                       |  | $              | 1,444,576 |  |      | $ | 1,260,467 | 
|                                       |  |                |           |  |      |  

Quality of Debt Securities in Portfolio.




|                                        |  |              |       |   |      |  |       |  
|--------------------------------------- |  | ------------ | ----- | - | ---- |  | ----- | -
|                                        |  | December 31, |      
|                                        |  |              |      
|                                        |  | 2004         |       |   | 2003 | 
|                                        |  |              |       |   |      | 
|Cash and cash equivalents               |  |              | 1.9   | % |      |  | 6.8   | %
|U.S. Government and government agencies |  |              | 21.6  | % |      |  | 23.1  | %
|AAA                                     |  |              | 31.7  | % |      |  | 26.6  | %
|AA                                      |  |              | 25.7  | % |      |  | 26.4  | %
|A                                       |  |              | 18.5  | % |      |  | 16.6  | %
|BBB                                     |  |              | 0.6   | % |      |  | 0.5   | %
|                                        |  |              |       |   |      | 
|                                        |  |              | 100.0 | % |      |  | 100.0 | %
|                                        |  |              |       |   |      | 



Equities.


16



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Real Estate.


Foreign Currency Exposure.


Derivatives.


Investment Advisory and Custodial Services.


Competition




17



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Employees






Regulation




| |                                                                                                    
| | ---------------------------------------------------------------------------------------------------
| | Bermuda  The Insurance Act of 1978, as amended,
    and Related Regulations (the Insurance Act).



18



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Classification of Insurers.


Cancellation of Insurers Registration.


Principal Representative.


Approved Auditor.


Loss Reserve Specialist.


Statutory Financial Statements.


19



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Annual Statutory Financial Return.


Minimum Solvency Margin and Restrictions on Dividends and
Distributions.








| |                                                                                                                                                                                                           
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (A) $100,000,000,                                                                                                                                                                                         
|
| | (B) 50% of net premiums written (being gross premiums
    written less any premiums ceded by IPCRe. IPCRe may not deduct
    more than 25% of gross premiums when computing net premiums
    written), and
|
| | (C) 15% of net losses and loss expense reserves,;                                                                                                                                                         









Minimum Liquidity Ratio.


20



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Supervision, Investigation and Intervention.




Disclosure of Information.


Certain Other Considerations.






21



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| |              
| | -------------
| | United States









| |               
| | --------------
| | European Union



Certain United States Federal Income Tax Considerations


The discussion below is only a general summary of certain
United States federal income tax considerations that are
relevant to certain holders of common shares of IPC Holdings. It
does not address all relevant tax considerations that may be
relevant to holders of common shares nor does it address tax
considerations that may be relevant to certain holders.
Investors and prospective investors should consult their own tax
advisors concerning federal, state, local and non-U.S. tax
consequences of ownership and disposition of common shares.


Dividends.


22



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Taxation of IPCBDA.




Controlled Foreign Corporation Rules.


Related Person Insurance Income Rules.


23



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Tax-Exempt Shareholders.







|        |           
|------- | ----------
|Item 2. | Properties








|        |                  
|------- | -----------------
|Item 3. | Legal Proceedings








|        |                                                    
|------- | ---------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security Holders



24



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PART II







|        |                                                                                                                     
|------- | --------------------------------------------------------------------------------------------------------------------
|Item 5. | Market for Registrants Common Equity, Related
    Stockholder Matters and Issuer Purchases of Equity
    Securities



|                             |                |      |   |       |     |  |   |       | 
|---------------------------- | -------------- | ---- | - | ----- | --- |  | - | ----- | 
|                             |                | High |   |       | Low | 
|                             |                |      |   |       |     | 
|Year ended December 31, 2004 |                |      |   |       |     |  |   |      
|                             | First Quarter  |      | $ | 43.10 |     |  | $ | 37.80 | 
|                             | Second Quarter |      |   | 40.95 |     |  |   | 34.78 | 
|                             | Third Quarter  |      |   | 39.00 |     |  |   | 36.04 | 
|                             | Fourth Quarter |      |   | 45.00 |     |  |   | 36.50 | 
|Year ended December 31, 2003 |                |      |   |       |     |  |   |      
|                             | First Quarter  |      | $ | 32.38 |     |  | $ | 26.94 | 
|                             | Second Quarter |      |   | 35.90 |     |  |   | 29.95 | 
|                             | Third Quarter  |      |   | 36.59 |     |  |   | 33.30 | 
|                             | Fourth Quarter |      |   | 39.39 |     |  |   | 34.93 | 











25



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|        |                        
|------- | -----------------------
|Item 6. | Selected Financial Data



|                          |                                                |                                          |   |            |      |  |   |            |   |  |      |            |   |      |   |            |    |  |   |            |  
|------------------------- | ---------------------------------------------- | ---------------------------------------- | - | ---------- | ---- |  | - | ---------- | - |  | ---- | ---------- | - | ---- | - | ---------- | -- |  | - | ---------- | -
|                          |                                                | Year Ended December 31,                  |  
|                          |                                                |                                          |  
|                          |                                                | 2004                                     |   |            | 2003 |  |   | 2002       |   |  | 2001 |            |   | 2000 |  
|                          |                                                |                                          |   |            |      |  |   |            |   |  |      |            |   |      |  
|                          |                                                | (In thousands, except per share amounts) |  
|Statement of Income Data: |                                                |                                          |   |            |      |  |   |            |   |  |      |            |   |      |   |            |    |  |   |           
|                          | Gross premiums written                         |                                          | $ | 378,409    |      |  | $ | 322,762    |   |  | $    | 259,685    |   |      | $ | 133,057    |    |  | $ | 93,757     |  
|                          | Net premiums earned                            |                                          |   | 354,882    |      |  |   | 298,901    |   |  |      | 226,404    |   |      |   | 123,375    |    |  |   | 86,961     |  
|                          | Net investment income                          |                                          |   | 51,220     |      |  |   | 47,089     |   |  |      | 49,320     |   |      |   | 32,245     |    |  |   | 31,089     |  
|                          | Other income                                   |                                          |   | 4,296      |      |  |   | 3,348      |   |  |      | 2,684      |   |      |   |           |    |  |   |           |  
|                          | Net loss and loss adjustment expenses incurred |                                          |   | 215,608    |      |  |   | 54,382     |   |  |      | 38,775     |   |      |   | 137,551    |    |  |   | 53,661     |  
|                          | Net acquisition costs                          |                                          |   | 37,682     |      |  |   | 30,867     |   |  |      | 24,521     |   |      |   | 12,686     |    |  |   | 9,049      |  
|                          | General and administrative expenses            |                                          |   | 23,151     |      |  |   | 19,103     |   |  |      | 13,893     |   |      |   | 9,381      |    |  |   | 9,311      |  
|                          | Net foreign exchange loss/(gain)               |                                          |   | 1,290      |      |  |   | (1,910     | ) |  |      | (1,554     | ) |      |   | 551        |    |  |   | 2,348      |  
|                          | Net realized gains/(losses), on investments    |                                          |   | 5,946      |      |  |   | 13,733     |   |  |      | (44,867    | ) |      |   | 616        |    |  |   | 544        |  
|                          | Net income (loss)                              |                                          | $ | 138,613    |      |  | $ | 260,629    |   |  | $    | 157,906    |   |      | $ | (3,933     | )  |  | $ | 44,225     |  
|                          | Net income (loss) per common share(1)          |                                          | $ | 2.87       |      |  | $ | 5.40       |   |  | $    | 3.27       |   |      | $ | (0.15      | )  |  | $ | 1.73       |  
|                          | Weighted average shares outstanding(1)         |                                          |   | 48,376,865 |      |  |   | 48,302,579 |   |  |      | 48,266,444 |   |      |   | 26,266,019 |    |  |   | 25,497,671 |  
|                          | Cash dividend per common share                 |                                          | $ | 0.88       |      |  | $ | 0.72       |   |  | $    |           |   |      | $ | 0.16       |    |  | $ |           |  
|                          | Other Data:                                    |                                          |   |            |      |  |   |            |   |  |      |            |   |      |   |            |    |  |   |            |  
|                          | Loss and loss adjustment expense ratio(2)      |                                          |   | 60.8       | %    |  |   | 18.2       | % |  |      | 17.1       | % |      |   | 111.5      | %  |  |   | 61.7       | %
|                          | Expense ratio(2)                               |                                          |   | 17.1       | %    |  |   | 16.7       | % |  |      | 17.0       | % |      |   | 17.9       | %  |  |   | 21.1       | %
|                          | Combined ratio(2)                              |                                          |   | 77.9       | %    |  |   | 34.9       | % |  |      | 34.1       | % |      |   | 129.4      | %  |  |   | 82.8       | %
|                          | Return on average equity(3)                    |                                          |   | 8.6        | %    |  |   | 18.2       | % |  |      | 16.6       | % |      |   | (0.7       | )% |  |   | 8.3        | %

26



---



##### 



|                                                |  |                                          |           |  |      |   |           |      |  |   |           |  |  |      |           |  |  |   |         | 
|----------------------------------------------- |  | ---------------------------------------- | --------- |  | ---- | - | --------- | ---- |  | - | --------- |  |  | ---- | --------- |  |  | - | ------- | 
|                                                |  | Year Ended December 31,                  |          
|                                                |  |                                          |          
|                                                |  | 2004                                     |           |  | 2003 |   |           | 2002 |  |   | 2001      |  |  | 2000 |          
|                                                |  |                                          |           |  |      |   |           |      |  |   |           |  |  |      |          
|                                                |  | (In thousands, except per share amounts) |          
|Balance Sheet Data (at end of period):          |  |                                          |           |  |      |   |           |      |  |   |           |  |  |      |           |  |  |   |         | 
|Total cash and investments                      |  | $                                        | 1,901,094 |  |      | $ | 1,671,423 |      |  | $ | 1,387,162 |  |  | $    | 1,232,301 |  |  | $ | 598,531 | 
|Reinsurance premiums receivable                 |  |                                          | 80,706    |  |      |   | 61,194    |      |  |   | 50,328    |  |  |      | 42,356    |  |  |   | 25,419  | 
|Total assets                                    |  |                                          | 2,028,290 |  |      |   | 1,769,458 |      |  |   | 1,473,975 |  |  |      | 1,301,716 |  |  |   | 647,490 | 
|Reserve for losses and loss adjustment expenses |  |                                          | 274,463   |  |      |   | 123,320   |      |  |   | 119,355   |  |  |      | 162,207   |  |  |   | 61,358  | 
|Unearned premiums                               |  |                                          | 68,465    |  |      |   | 61,795    |      |  |   | 51,902    |  |  |      | 24,440    |  |  |   | 19,068  | 
|Total shareholders equity                      |  | $                                        | 1,668,439 |  |      | $ | 1,569,159 |      |  | $ | 1,291,483 |  |  | $    | 1,105,794 |  |  | $ | 559,270 | 
|Basic book value per common share(4)            |  | $                                        | 34.53     |  |      | $ | 32.53     |      |  | $ | 26.81     |  |  | $    | 22.95     |  |  | $ | 22.34   | 
|Diluted book value per common share(5)          |  | $                                        | 34.44     |  |      | $ | 32.46     |      |  | $ | 26.75     |  |  | $    | 22.92     |  |  | $ | 21.93   | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Net income per common share is calculated upon the weighted
    average number of common shares outstanding during the relevant
    year. The weighted average number of shares includes common
    shares and the dilutive effect of the AIG Option (where
    applicable), employee stock options and stock grants, using the
    treasury stock method. The net (loss) per common share for the
    year ended December 31, 2001 is calculated on the weighted
    average number of shares outstanding during the year, excluding
    the anti-dilutive effect of the AIG Option and employee stock
    options.
|   
|(2) | The loss and loss adjustment expense ratio is calculated by
    dividing the net losses and loss expenses incurred by the net
    premiums earned. The expense ratio is calculated by dividing the
    sum of acquisition costs and general and administrative expenses
    by net premiums earned. The combined ratio is the sum of the
    loss and loss expense ratio and the expense ratio.                                                                                                                                                                                                                     
|   
|(3) | Return on average equity is calculated as the annual net income
    (loss) divided by the average of the shareholders equity
    on the first and last day of the respective year.                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   
|(4) | Basic book value per common share is calculated as
    shareholders equity divided by the number of common shares
    outstanding on the balance sheet date.                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   
|(5) | Diluted book value per common share is calculated as
    shareholders equity divided by the number of common shares
    outstanding on the balance sheet date, after considering the
    dilutive effects of the AIG Option (where applicable), stock
    grants and the options granted to employees, calculated using
    the treasury stock method. At December 31, 2004 the average
    weighted number of shares outstanding, including the dilutive
    effect of employee stock options and stock grants using the
    treasury stock method was 48,440,140.                                                






|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 7. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations








|         |                                                               
|-------- | --------------------------------------------------------------
|Item 7A. | Quantitative and Qualitative Disclosures About Market
    Risk



27



---



##### 








|        |                                            
|------- | -------------------------------------------
|Item 8. | Financial Statements and Supplementary Data








|        |                                                                                         
|------- | ----------------------------------------------------------------------------------------
|Item 9. | Changes in and Disagreements with Accountants on
    Accounting and Financial Disclosure








|         |                        
|-------- | -----------------------
|Item 9A. | Controls and Procedures

Evaluation of Disclosure Controls and Procedures 




Managements Report on Internal Control Over Financial
Reporting  Internal Control  Integrated
Framework Internal
Control  Integrated Framework




28



---



##### 



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
























29



---



##### 








|         |                  
|-------- | -----------------
|Item 9B. | Other Information






PART III







|         |                                                   
|-------- | --------------------------------------------------
|Item 10. | Directors and Executive Officers of the Registrant

Code of Conduct Code of Ethics www.ipcre.bm,







|         |                       
|-------- | ----------------------
|Item 11. | Executive Compensation








|         |                                                                                                   
|-------- | --------------------------------------------------------------------------------------------------
|Item 12. | Security Ownership of Certain Beneficial Owners and
    Management and Related Stockholder Matters








|         |                                               
|-------- | ----------------------------------------------
|Item 13. | Certain Relationships and Related Transactions








|         |                                       
|-------- | --------------------------------------
|Item 14. | Principal Accounting Fees and Services






PART IV







|         |                                           
|-------- | ------------------------------------------
|Item 15. | Exhibits and Financial Statement Schedules













30



---



##### 



























|        |    |     |             |                                                                                                                                        |                  |  |    | 
|------- | -- | --- | ----------- | -------------------------------------------------------------------------------------------------------------------------------------- | ---------------- |  | -- | 
|Exhibit |    |     |             |                                                                                                                                        |                 
|Number  |    |     | Description |                                                                                                                                        | Method of filing | 
|        |    |     |             |                                                                                                                                        |                  | 
|        | 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                                                                                        |                  |  | *  | 
|       
|        | 3  | .4  |             | Form of Registration Rights Agreement                                                                                                  |                  |  | *  | 
|       
|        | 4  | .1  |             | Form of Share Certificate                                                                                                              |                  |  | *  | 
|       
|        | 10 | .1  |             | Termination Agreement among the Company and the shareholders
    named therein                                                         |                  |  | *  | 
|       
|        | 10 | .2 |             | Amended and Restated IPC Holdings, Ltd. Stock Option Plan                                                                              |                  |  | ll | 
|       
|        | 10 | .3 |             | Amended and Restated IPC Holdings, Ltd. Deferred Compensation
    Plan                                                                 |                  |  | l  | 
|       
|        | 10 | .4 |             | IPCRe Defined Contribution Retirement Plan                                                                                             |                  |  | *  | 
|       
|        | 10 | .5  |             | Amended and Restated Administrative Services Agreement among the
    Company, IPCRe and American International Company, Limited        |                  |  | *  | 
|       
|        | 10 | .6  |             | Investment Management Agreement between IPCRe and AIG Global
    Investment Corp. (Ireland) Limited (AIGIC), as
    amended          |                  |  | ** | 
|       
|        | 10 | .7  |             | Investment Sub-Advisory Agreement between AIGIC and AIGIC
    (Europe) (formerly known as Dempsey & Company
    International Limited) |                  |  | *  | 
|       
|        | 10 | .8  |             | Custodial Agreement between AIG Global Trust Services and
    IPCRe                                                                    |                  |  | *  | 
|       
|        | 10 | .9 |             | Retirement Agreement between IPCRe and James P. Bryce                                                                                  |                  |  | *  | 

31



---



##### 



|        |    |      |             |                                                                                                                 |                  |  |                    | 
|------- | -- | ---- | ----------- | --------------------------------------------------------------------------------------------------------------- | ---------------- |  | ------------------ | 
|Exhibit |    |      |             |                                                                                                                 |                 
|Number  |    |      | Description |                                                                                                                 | Method of filing | 
|        |    |      |             |                                                                                                                 |                  | 
|       
|        | 10 | .10 |             | Retirement Agreement between IPCRe and Peter J.A. Cozens                                                        |                  |  | *                  | 
|       
|        | 10 | .11  |             | Credit Agreement between IPCRe Limited, Bank One NA, and other
    Lenders named therein                        |                  |  | +                  | 
|       
|        | 10 | .12  |             | Underwriting Agency Agreement between Allied World Assurance
    Company, Ltd and IPCUSL                        |                  |  | ¢                  | 
|       
|        | 10 | .13  |             | Amended and Restated Amendment No. 1 to Underwriting Agency
    Agreement, dated December 1, 2001               |                  |  | ¢¢                 | 
|       
|        | 10 | .14  |             | Amended Schedule I (Investment Policy Guideline) to
    Investment Management Agreement between IPCRe and AIGIC |                  |  | ++                 | 
|       
|        | 10 | .15 |             | IPC Holdings, Ltd. 2003 Stock Incentive Plan                                                                    |                  |  | §§                 | 
|       
|        | 10 | .16  |             | Form of Stock Option Agreement                                                                                  |                  |  | Filed herewith     | 
|       
|        | 10 | .17  |             | Form of Restricted Stock Unit Award                                                                             |                  |  | Filed herewith     | 
|       
|        | 10 | .18 |             | The IPCRe Limited International Retirement Plan Level 2
    Trust, as of December 31, 2003                      |                  |  | Filed herewith     | 
|       
|        | 10 | .19  |             | Letters of Credit Master Agreement between Citibank N.A. and
    IPCRe Limited                                  |                  |  | Filed herewith     | 
|       
|        | 11 | .1   |             | Statement regarding Computation of Per Share Earnings                                                           |                  |  | Filed herewith     | 
|       
|        | 13 | .1   |             | Portions of the Annual Report incorporated herein by reference                                                  |                  |  | Filed herewith     | 
|       
|        | 21 | .1   |             | Subsidiaries of the Registrant                                                                                  |                  |  | Filed herewith     | 
|       
|        | 23 | .1   |             | Consent of KPMG                                                                                                 |                  |  | Filed herewith     | 
|       
|        | 31 | .1   |             | Certification by Chief Executive Officer, as required by
    Section 302 of the Sarbanes-Oxley Act of 2002      |                  |  | Filed herewith     | 
|       
|        | 31 | .2   |             | Certification by Chief Financial Officer, as required by
    Section 302 of the Sarbanes-Oxley Act of 2002      |                  |  | Filed herewith     | 
|       
|        | 32 | .1©  |             | Certification by Chief Executive Officer, as required by
    Section 906 of the Sarbanes-Oxley Act of 2002      |                  |  | Furnished herewith | 
|       
|        | 32 | .2©  |             | Certification by Chief Financial Officer, as required by
    Section 906 of the Sarbanes-Oxley Act of 2002      |                  |  | Furnished herewith | 






|  |                                                                                                                      
|- | ---------------------------------------------------------------------------------------------------------------------
|* | Incorporated by reference to the corresponding exhibit in our
    Registration Statement on Form S-1 (No. 333-00088).



|  |                                                                                                                           
|- | --------------------------------------------------------------------------------------------------------------------------
|+ | Incorporated by reference to Exhibit 10.1 to our
    Form 10-Q for the quarter ended June 30, 2003 (File
    No. 0-27662).



|   |                                                                                                                           
|-- | --------------------------------------------------------------------------------------------------------------------------
|** | Incorporated by reference to Exhibit 10.1 to our
    Form 10-Q for the quarter ended June 30, 1997 (File
    No. 0-27662).



|  |                                                                                                                                
|- | -------------------------------------------------------------------------------------------------------------------------------
|l | Incorporated by reference to Exhibit 10.1 to our
    Form 10-Q for the quarter ended September 30, 1999
    (File No. 0-27662).



|   |                                                                                                          
|-- | ---------------------------------------------------------------------------------------------------------
|ll | Incorporated by reference to Exhibit 4.1 to our filing on
    Form S-8 of July 15, 2003 (No. 333-107052).



|  |                                                                                                                             
|- | ----------------------------------------------------------------------------------------------------------------------------
|¢ | Incorporated by reference to Exhibit 10.15 to our
    Form 10-K for the year ended December 31, 2001 (File
    No. 0-27662).
| 
|§ | Incorporated by reference to Exhibit 3.2 to our
    Form 8-A of July 13, 2003 (File No. 0-27662).                           



|   |                                                                                         
|-- | ----------------------------------------------------------------------------------------
|§§ | Incorporated by reference to Exhibit 4.2 to our filing on
    Form S-8 of July 15, 2003.

32



---



##### 





|   |                                                                                                                            
|-- | ---------------------------------------------------------------------------------------------------------------------------
|++ | Incorporated by reference to Exhibit 10.1 to our
    Form 10-Q for the quarter ended March 31, 2004 (File
    No. 0-27662).



|   |                                                                                                                            
|-- | ---------------------------------------------------------------------------------------------------------------------------
|¢¢ | Incorporated by reference to Exhibit 10.2 to our
    Form 10-Q for the quarter ended March 31, 2004 (File
    No. 0-27662).



|  |                                                                       
|- | ----------------------------------------------------------------------
| | Management contract or compensatory plan, contract or
    arrangement.



|  |                                                                                                                                                                                                                                                                      
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|© | These certifications are being furnished solely pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002 (sub-sections
    (a) and (b) of Section 1350, Chapter 63 of
    Title 18, United States Code), and are not being filed as
    exhibits to this report.

33



---



##### 



IPC HOLDINGS, LTD.


INDEX TO SCHEDULES


|                                                                         |              |  |    |                                                                                                            |      |  |    | 
|------------------------------------------------------------------------ | ------------ |  | -- | ---------------------------------------------------------------------------------------------------------- | ---- |  | -- | 
|Schedule/ Report                                                         |              |  |    |                                                                                                            | Page | 
|                                                                         |              |  |    |                                                                                                            |      | 
|Report of Independent Registered Public Accounting Firm on
    Schedules |              |  | 35 |                                                                                                           
|                                                                         | Schedule I   |  |    | Summary of Investments  Other than Investments in
    Related Parties                                     |      |  | 36 | 
|                                                                         | Schedule II  |  |    | Condensed Financial Information of the Registrant                                                          |      |  | 37 | 
|                                                                         | Schedule III |  |    | Supplementary Insurance Information of Subsidiary for the years
    ended December 31, 2004, 2003 and 2002 |      |  | 40 | 
|                                                                         | Schedule IV  |  |    | Supplementary Information concerning Reinsurance for the years
    ended December 31, 2004, 2003 and 2002  |      |  | 41 | 

34



---



##### 



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM










|                      | 
|--------------------- | 
|/s/ KPMG              | 
|                      | 
|Chartered Accountants | 





35



---



##### 



SCHEDULE I


IPC HOLDINGS, LTD.


SUMMARY OF INVESTMENTS  OTHER THAN INVESTMENTS IN
RELATED PARTIES


(Expressed in thousands of United States Dollars)


|                                             |                                         |                        |           |         |             |   |           |               |           |   |           |         |           | 
|-------------------------------------------- | --------------------------------------- | ---------------------- | --------- | ------- | ----------- | - | --------- | ------------- | --------- | - | --------- | ------- | --------- | 
|                                             |                                         | Year Ended             |           |         |            
|                                             |                                         | December 31, 2004      |           |         | Amount at   |  
|                                             |                                         |                        |           |         | which shown |  
|                                             |                                         | Amortized              |           |         | Market      |   |           | in the        |          
|                                             |                                         | Cost                   |           |         | Value       |   |           | Balance Sheet |          
|                                             |                                         |                        |           |         |             |   |           |               |          
|Type of investment:                          |                                         |                        |           |         |             |   |           |               |           |   |           |        
|Fixed maturities                             |                                         |                        |           |         |             |   |           |               |           |   |           |        
|                                             | U.S. Government and government agencies |                        | $         | 320,158 |             |   | $         | 317,356       |           |   | $         | 317,356 |          
|                                             | Other governments                       |                        |           | 157,314 |             |   |           | 156,075       |           |   |           | 156,075 |          
|                                             | Corporate                               |                        |           | 776,186 |             |   |           | 778,886       |           |   |           | 778,886 |          
|                                             | Supranational entities                  |                        |           | 192,669 |             |   |           | 192,259       |           |   |           | 192,259 |          
|                                             |                                         |                        |           |         |             |   |           |               |          
|                                             |                                         | Total fixed maturities |           |         | 1,446,327   |   |           |               | 1,444,576 |   |           |         | 1,444,576 | 
|                                             |                                         |                        |           |         |             |   |           |               |          
|Equity investments                           |                                         |                        | 335,719   |         |             |   | 428,620   |               |           |   | 428,620   |        
|Cash and cash equivalents                    |                                         |                        | 27,898    |         |             |   | 27,898    |               |           |   | 27,898    |        
|                                             |                                         |                        |           |         |             |   |           |               |          
|Total investments, cash and cash equivalents |                                         | $                      | 1,809,944 |         |             | $ | 1,901,094 |               |           | $ | 1,901,094 |        
|                                             |                                         |                        |           |         |             |   |           |               |          

36



---



##### 



SCHEDULE II


IPC HOLDINGS, LTD.


CONDENSED FINANCIAL INFORMATION OF REGISTRANT


BALANCE SHEET


(PARENT COMPANY)


(Expressed in thousands of United States Dollars)


|                                                                                                                                   |  |                    |           |   |      |   |           |  
|---------------------------------------------------------------------------------------------------------------------------------- |  | ------------------ | --------- | - | ---- | - | --------- | -
|                                                                                                                                   |  | As of December 31, |          
|                                                                                                                                   |  |                    |          
|                                                                                                                                   |  | 2004               |           |   | 2003 |  
|                                                                                                                                   |  |                    |           |   |      |  
|ASSETS:                                                                                                                           
|Cash                                                                                                                               |  | $                  | 100       |   |      | $ | 99        |  
|Investment in wholly-owned subsidiaries                                                                                            |  |                    | 1,670,324 |   |      |   | 1,569,150 |  
|Receivable from subsidiaries                                                                                                       |  |                    |          |   |      |   | 2,429     |  
|Other assets                                                                                                                       |  |                    | 278       |   |      |   | 295       |  
|                                                                                                                                   |  |                    |           |   |      |  
|                                                                                                                                   |  | $                  | 1,670,702 |   |      | $ | 1,571,973 |  
|                                                                                                                                   |  |                    |           |   |      |  
|                                                                                                                                  
|LIABILITIES:                                                                                                                      
|Payable to subsidiaries                                                                                                            |  | $                  | 1,923     |   |      | $ | 2,607     |  
|Other liabilities                                                                                                                  |  |                    | 340       |   |      |   | 207       |  
|                                                                                                                                   |  |                    |           |   |      |  
|                                                                                                                                   |  |                    | 2,263     |   |      |   | 2,814     |  
|                                                                                                                                   |  |                    |           |   |      |  
|SHAREHOLDERS EQUITY:                                                                                                             
|Share capital  2004: 48,407,203 shares
    outstanding, par value $0.01; 2003: 48,292,270 shares
    outstanding, par value $0.01 |  |                    | 484       |   |      |   | 483       |  
|Additional paid in capital                                                                                                         |  |                    | 854,797   |   |      |   | 850,133   |  
|Deferred stock grant compensation                                                                                                  |  |                    | (2,899    | ) |      |   | (1,495    | )
|Retained earnings                                                                                                                  |  |                    | 724,907   |   |      |   | 628,931   |  
|Accumulated other comprehensive income                                                                                             |  |                    | 91,150    |   |      |   | 91,107    |  
|                                                                                                                                   |  |                    |           |   |      |  
|                                                                                                                                   |  |                    | 1,668,439 |   |      |   | 1,569,159 |  
|                                                                                                                                   |  |                    |           |   |      |  
|                                                                                                                                   |  | $                  | 1,670,702 |   |      | $ | 1,571,973 |  
|                                                                                                                                   |  |                    |           |   |      |  

37



---



##### 



SCHEDULE II


continued


IPC HOLDINGS, LTD.


CONDENSED FINANCIAL INFORMATION OF REGISTRANT 
continued


STATEMENT OF INCOME


(PARENT COMPANY)


(Expressed in thousands of United States Dollars)


|                                                                |                                   |                         |         |       |      |   |         |       |  |   |         |       | 
|--------------------------------------------------------------- | --------------------------------- | ----------------------- | ------- | ----- | ---- | - | ------- | ----- |  | - | ------- | ----- | 
|                                                                |                                   | Year Ended December 31, |        
|                                                                |                                   |                         |        
|                                                                |                                   | 2004                    |         |       | 2003 |   |         | 2002  | 
|                                                                |                                   |                         |         |       |      |   |         |       | 
|Interest income                                                 |                                   | $                       | 0       |       |      | $ | 0       |       |  | $ | 0       |      
|Expenses:                                                       |                                   |                         |         |       |      |   |         |       |  |   |         |      
|                                                                | Operating costs and expenses, net |                         |         | 2,167 |      |   |         | 1,568 |  |   |         | 1,256 | 
|                                                                |                                   |                         |         |       |      |   |         |       | 
|(Loss) before equity in net income of wholly-owned subsidiaries |                                   |                         | (2,167  | )     |      |   | (1,568  | )     |  |   | (1,256  | )    
|Equity in net income of wholly-owned subsidiaries               |                                   |                         | 140,780 |       |      |   | 262,197 |       |  |   | 159,162 |      
|                                                                |                                   |                         |         |       |      |   |         |       | 
|Net income available to common shareholders                     |                                   | $                       | 138,613 |       |      | $ | 260,629 |       |  | $ | 157,906 |      
|                                                                |                                   |                         |         |       |      |   |         |       | 

STATEMENT OF COMPREHENSIVE INCOME


(PARENT COMPANY)


(Expressed in thousands of United States Dollars)


|                            |                                                                           |                         |         |        |      |   |         |         |   |   |         |         |  
|--------------------------- | ------------------------------------------------------------------------- | ----------------------- | ------- | ------ | ---- | - | ------- | ------- | - | - | ------- | ------- | -
|                            |                                                                           | Year Ended December 31, |        
|                            |                                                                           |                         |        
|                            |                                                                           | 2004                    |         |        | 2003 |   |         | 2002    |  
|                            |                                                                           |                         |         |        |      |   |         |         |  
|Net income                  |                                                                           | $                       | 138,613 |        |      | $ | 260,629 |         |   | $ | 157,906 |        
|                            |                                                                           |                         |         |        |      |   |         |         |  
|Other comprehensive income: |                                                                           |                         |         |        |      |   |         |         |   |   |         |        
|                            | Holding gains (losses), net on investments during period                  |                         |         | 5,989  |      |   |         | 64,581  |   |   |         | (17,251 | )
|                            | Reclassification adjustment for (gains) losses included in
    net income |                         |         | (5,946 | )    |   |         | (13,733 | ) |   |         | 44,867  |  
|                            |                                                                           |                         |         |        |      |   |         |         |  
|                            |                                                                           |                         | 43      |        |      |   | 50,848  |         |   |   | 27,616  |        
|                            |                                                                           |                         |         |        |      |   |         |         |  
|Comprehensive income        |                                                                           | $                       | 138,656 |        |      | $ | 311,477 |         |   | $ | 185,522 |        
|                            |                                                                           |                         |         |        |      |   |         |         |  

38



---



##### 



SCHEDULE II


continued


IPC HOLDINGS, LTD.


CONDENSED FINANCIAL INFORMATION OF REGISTRANT 
continued


STATEMENT OF CASH FLOWS


(PARENT COMPANY)


(Expressed in thousands of United States Dollars)


|                                                         |                                          |                              |         |          |       |   |         |          |        |   |         |          |      |  
|-------------------------------------------------------- | ---------------------------------------- | ---------------------------- | ------- | -------- | ----- | - | ------- | -------- | ------ | - | ------- | -------- | ---- | -
|                                                         |                                          | Year Ended December 31,      |        
|                                                         |                                          |                              |        
|                                                         |                                          | 2004                         |         |          | 2003  |   |         | 2002     |       
|                                                         |                                          |                              |         |          |       |   |         |          |       
|CASH FLOWS FROM OPERATING ACTIVITIES                     |                                          |                              |         |          |       |   |         |          |        |   |         |         
|Net income                                               |                                          | $                            | 138,613 |          |       | $ | 260,629 |          |        | $ | 157,906 |         
|Adjustments to reconcile net income to cash provided by: |                                          |                              |         |          |       |   |         |          |        |   |         |         
|                                                         | Equity in net (income) from subsidiaries |                              |         | (140,781 | )     |   |         | (262,197 | )      |   |         | (159,162 | )   
|                                                         | Stock compensation                       |                              |         | 2,461    |       |   |         | 842      |        |   |         |         |     
|                                                         | Changes in, net:                         |                              |         |          |       |   |         |          |        |   |         |          |     
|                                                         |                                          | Other assets                 |         |          | 17    |   |         |          | (67    | ) |         |          | (129 | )
|                                                         |                                          | Receivable from subsidiaries |         |          | 2,429 |   |         |          | (2,429 | ) |         |          |     |  
|                                                         |                                          | Payable to subsidiaries      |         |          | (684  | ) |         |          | 1,297  |   |         |          | (915 | )
|                                                         |                                          | Other liabilities            |         |          | 133   |   |         |          | 60     |   |         |          | (424 | )
|                                                         |                                          |                              |         |          |       |   |         |          |       
|                                                         |                                          |                              | 2,188   |          |       |   | (1,865  | )        |        |   | (2,724  | )       
|                                                         |                                          |                              |         |          |       |   |         |          |       
|CASH FLOWS FROM FINANCING ACTIVITIES                     |                                          |                              |         |          |       |   |         |          |        |   |         |         
|Additional share capital received                        |                                          |                              | 645     |          |       |   | 67      |          |        |   | 167     |         
|Additional investment in subsidiaries                    |                                          |                              |        |          |       |   |        |          |        |   |        |         
|Dividends received from subsidiaries                     |                                          |                              | 39,650  |          |       |   | 36,500  |          |        |   | 2,500   |         
|Dividends paid to shareholders                           |                                          |                              | (42,482 | )        |       |   | (34,709 | )        |        |   |        |         
|                                                         |                                          |                              |         |          |       |   |         |          |       
|                                                         |                                          |                              | (2,187  | )        |       |   | 1,858   |          |        |   | 2,667   |         
|                                                         |                                          |                              |         |          |       |   |         |          |       
|Net increase (decrease) in cash and cash equivalents     |                                          |                              | 1       |          |       |   | (7      | )        |        |   | (57     | )       
|Cash and cash equivalents, beginning of year             |                                          |                              | 99      |          |       |   | 106     |          |        |   | 163     |         
|                                                         |                                          |                              |         |          |       |   |         |          |       
|Cash and cash equivalents, end of year                   |                                          | $                            | 100     |          |       | $ | 99      |          |        | $ | 106     |         
|                                                         |                                          |                              |         |          |       |   |         |          |       

39



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##### 



SCHEDULE III


IPC HOLDINGS, LTD. AND SUBSIDIARIES


SUBSIDIARY SUPPLEMENTARY INSURANCE INFORMATION


(Expressed in thousands of United States Dollars)


|                         |  |                    |       |               |                |   |         |          |  |   |         |     |           |              |            |          |            |        |        |             |       |   |           |       |  |          |        |  |  |   |        |  |  |   |         | 
|------------------------ |  | ------------------ | ----- | ------------- | -------------- | - | ------- | -------- |  | - | ------- | --- | --------- | ------------ | ---------- | -------- | ---------- | ------ | ------ | ----------- | ----- | - | --------- | ----- |  | -------- | ------ |  |  | - | ------ |  |  | - | ------- | 
|                         |  |                    |       |               |                |   |         |          |  |   |         |     |           | Amortization |            |          |            |        |       
|                         |  |                    |       | Future policy |                |   |         |          |  |   |         |     | Benefits, |              |            | of       |            |        |        |             |      
|                         |  |                    |       | benefits,     |                |   |         |          |  |   |         |     | claims,   |              |            | deferred |            |        |        |             |      
|                         |  | Deferred           |       |               | losses, claims |   |         |          |  |   |         | Net |           |              | losses and |          |            | policy |        |             | Other |   |           | Gross | 
|                         |  | policy acquisition |       |               | and loss       |   |         | Unearned |  |   | Premium |     |           | investment   |            |          | settlement |        |        | acquisition |       |   | operating |       |  | premiums |       
|Segment                  |  | costs              |       |               | expenses       |   |         | premiums |  |   | revenue |     |           | income       |            |          | expenses   |        |        | costs       |       |   | expenses  |       |  | written  |       
|                         |  |                    |       |               |                |   |         |          |  |   |         |     |           |              |            |          |            |        |        |             |       |   |           |       |  |          |       
|2004: Property & Similar |  | $                  | 8,424 |               |                | $ | 274,463 |          |  | $ | 68,465  |     |           | $            | 354,882    |          |            | $      | 51,220 |             |       | $ | 215,608   |       |  | $        | 37,682 |  |  | $ | 20,983 |  |  | $ | 378,409 | 
|2003: Property & Similar |  | $                  | 8,035 |               |                | $ | 123,320 |          |  | $ | 61,795  |     |           | $            | 298,901    |          |            | $      | 47,089 |             |       | $ | 54,382    |       |  | $        | 30,867 |  |  | $ | 17,532 |  |  | $ | 322,762 | 
|2002: Property & Similar |  | $                  | 6,095 |               |                | $ | 119,355 |          |  | $ | 51,902  |     |           | $            | 226,404    |          |            | $      | 49,320 |             |       | $ | 38,775    |       |  | $        | 24,521 |  |  | $ | 12,633 |  |  | $ | 259,685 | 

40



---



##### 



SCHEDULE IV


REINSURANCE


(Expressed in thousands of United States Dollars)


|                         |  |              |   |           |  |   |              |  |  |               |         |               |                |   |         |  |  |  |     |  
|------------------------ |  | ------------ | - | --------- |  | - | ------------ |  |  | ------------- | ------- | ------------- | -------------- | - | ------- |  |  |  | --- | -
|                         |  |              |   | Ceded to  |  |   | Assumed from |  |  |               |         | Percentage of |               
|                         |  |              |   | other     |  |   | other        |  |  |               |         | amount        |               
|                         |  | Gross Amount |   | companies |  |   | companies    |  |  | Net Amount(1) |         |               | assumed to net |  
|                         |  |              |   |           |  |   |              |  |  |               |         |               |                |  
|2004: Property & Similar |  | $            |  |           |  | $ | 20,098       |  |  | $             | 378,409 |               |                | $ | 358,311 |  |  |  | 106 | %
|2003: Property & Similar |  | $            |  |           |  | $ | 14,466       |  |  | $             | 322,762 |               |                | $ | 308,296 |  |  |  | 105 | %
|2002: Property & Similar |  | $            |  |           |  | $ | 5,410        |  |  | $             | 259,685 |               |                | $ | 254,275 |  |  |  | 102 | %






|    |                 
|--- | ----------------
|(1) | Premiums Written

41



---



##### 



IPC HOLDINGS, LTD.


SIGNATURES


th




| |                                      
| | -------------------------------------
| | IPC Holdings, LTD.                   
|
| | /s/ James P. Bryce                   
| |                                      
| | By: James P. Bryce                   
| | President and Chief Executive Officer



|                                                           |  |                                                                                     |  |               |  | 
|---------------------------------------------------------- |  | ----------------------------------------------------------------------------------- |  | ------------- |  | 
|Signature                                                  |  | Title                                                                               |  | Date         
|                                                           |  |                                                                                     |  |              
|                                                          
|/s/ Joseph C.H. JohnsonJoseph
    C.H. Johnson             |  | Chairman of the Board of Directors                                                  |  | March 4, 2005
|                                                          
|/s/ James P. BryceJames
    P. Bryce                       |  | President, Chief Executive Officer and Director                                     |  | March 4, 2005
|                                                          
|/s/ John R. WealeJohn
    R. Weale                         |  | Senior Vice President, Chief Financial Officer and principal
    accounting officer |  | March 4, 2005
|                                                          
|/s/ Frank MutchFrank
    Mutch                             |  | Deputy Chairman of the Board of Directors                                           |  | March 4, 2005
|                                                          
|/s/ Anthony PillingAnthony
    M. Pilling                  |  | Director                                                                            |  | March 4, 2005
|                                                          
|/s/ Clarence JamesDr.
    The Honourable Clarence E. James |  | Director                                                                            |  | March 4, 2005
|                                                          
|/s/ Kenneth HammondKenneth
    Hammond                     |  | Director                                                                            |  | March 4, 2005

42



---



##### 



EXHIBIT INDEX


|        |    |      |             |                                                                                                                                        |                  |  |                | 
|------- | -- | ---- | ----------- | -------------------------------------------------------------------------------------------------------------------------------------- | ---------------- |  | -------------- | 
|Exhibit |    |      |             |                                                                                                                                        |                 
|Number  |    |      | Description |                                                                                                                                        | Method of filing | 
|        |    |      |             |                                                                                                                                        |                  | 
|        | 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                                                                                        |                  |  | *              | 
|       
|        | 3  | .4   |             | Form of Registration Rights Agreement                                                                                                  |                  |  | *              | 
|       
|        | 4  | .1   |             | Form of Share Certificate                                                                                                              |                  |  | *              | 
|       
|        | 10 | .1   |             | Termination Agreement among the Company and the shareholders
    named therein                                                         |                  |  | *              | 
|       
|        | 10 | .2  |             | Amended and Restated IPC Holdings, Ltd. Stock Option Plan                                                                              |                  |  | ll             | 
|       
|        | 10 | .3  |             | Amended and Restated IPC Holdings, Ltd. Deferred Compensation
    Plan                                                                 |                  |  | l              | 
|       
|        | 10 | .4  |             | IPCRe Defined Contribution Retirement Plan                                                                                             |                  |  | *              | 
|       
|        | 10 | .5   |             | Amended and Restated Administrative Services Agreement among the
    Company, IPCRe and American International Company, Limited        |                  |  | *              | 
|       
|        | 10 | .6   |             | Investment Management Agreement between IPCRe and AIG Global
    Investment Corp. (Ireland) Limited (AIGIC), as
    amended          |                  |  | **             | 
|       
|        | 10 | .7   |             | Investment Sub-Advisory Agreement between AIGIC and AIGIC
    (Europe) (formerly known as Dempsey & Company
    International Limited) |                  |  | *              | 
|       
|        | 10 | .8   |             | Custodial Agreement between AIG Global Trust Services and
    IPCRe                                                                    |                  |  | *              | 
|       
|        | 10 | .9  |             | Retirement Agreement between IPCRe and James P. Bryce                                                                                  |                  |  | *              | 
|       
|        | 10 | .10 |             | Retirement Agreement between IPCRe and Peter J.A. Cozens                                                                               |                  |  | *              | 
|       
|        | 10 | .11  |             | Credit Agreement between IPCRe Limited, Bank One NA, and other
    Lenders named therein                                               |                  |  | +              | 
|       
|        | 10 | .12  |             | Underwriting Agency Agreement between Allied World Assurance
    Company, Ltd and IPCUSL                                               |                  |  | ¢              | 
|       
|        | 10 | .13  |             | Amended and Restated Amendment No. 1 to Underwriting Agency
    Agreement, dated December 1, 2001                                      |                  |  | ¢¢             | 
|       
|        | 10 | .14  |             | Amended Schedule I (Investment Policy Guideline) to
    Investment Management Agreement between IPCRe and AIGIC                        |                  |  | ++             | 
|       
|        | 10 | .15  |             | IPC Holdings, Ltd. 2003 Stock Incentive Plan                                                                                           |                  |  | §§             | 
|       
|        | 10 | .16  |             | Form of Stock Option Agreement                                                                                                         |                  |  | Filed herewith | 
|       
|        | 10 | .17  |             | Form of Restricted Stock Unit Award                                                                                                    |                  |  | Filed herewith | 
|       
|        | 10 | .18 |             | The IPCRe Limited International Retirement Plan Level 2
    Trust, as of December 31, 2003                                             |                  |  | Filed herewith | 
|       
|        | 10 | .19  |             | Letters of Credit Master Agreement between Citibank N.A. and
    IPCRe Limited                                                         |                  |  | Filed herewith | 
|       
|        | 11 | .1   |             | Statement regarding Computation of Per Share Earnings                                                                                  |                  |  | Filed herewith | 
|       
|        | 13 | .1   |             | Portions of the Annual Report incorporated herein by reference                                                                         |                  |  | Filed herewith | 
|       
|        | 21 | .1   |             | Subsidiaries of the Registrant                                                                                                         |                  |  | Filed herewith | 
|       
|        | 23 | .1   |             | Consent of KPMG                                                                                                                        |                  |  | Filed herewith | 
|       
|        | 31 | .1   |             | Certification by Chief Executive Officer, as required by
    Section 302 of the Sarbanes-Oxley Act of 2002                             |                  |  | Filed herewith | 
|       
|        | 31 | .2   |             | Certification by Chief Financial Officer, as required by
    Section 302 of the Sarbanes-Oxley Act of 2002                             |                  |  | Filed herewith | 

43



---



##### 



|        |    |     |             |                                                                                                            |                  |  |                    | 
|------- | -- | --- | ----------- | ---------------------------------------------------------------------------------------------------------- | ---------------- |  | ------------------ | 
|Exhibit |    |     |             |                                                                                                            |                 
|Number  |    |     | Description |                                                                                                            | Method of filing | 
|        |    |     |             |                                                                                                            |                  | 
|       
|        | 32 | .1© |             | Certification by Chief Executive Officer, as required by
    Section 906 of the Sarbanes-Oxley Act of 2002 |                  |  | Furnished herewith | 
|       
|        | 32 | .2© |             | Certification by Chief Financial Officer, as required by
    Section 906 of the Sarbanes-Oxley Act of 2002 |                  |  | Furnished herewith | 






|  |                                                                                                                      
|- | ---------------------------------------------------------------------------------------------------------------------
|* | Incorporated by reference to the corresponding exhibit in our
    Registration Statement on Form S-1 (No. 333-00088).



|  |                                                                                                                           
|- | --------------------------------------------------------------------------------------------------------------------------
|+ | Incorporated by reference to Exhibit 10.1 to our
    Form 10-Q for the quarter ended June 30, 2003 (File
    No. 0-27662).



|   |                                                                                                                           
|-- | --------------------------------------------------------------------------------------------------------------------------
|** | Incorporated by reference to Exhibit 10.1 to our
    Form 10-Q for the quarter ended June 30, 1997 (File
    No. 0-27662).



|  |                                                                                                                                
|- | -------------------------------------------------------------------------------------------------------------------------------
|l | Incorporated by reference to Exhibit 10.1 to our
    Form 10-Q for the quarter ended September 30, 1999
    (File No. 0-27662).



|   |                                                                                                          
|-- | ---------------------------------------------------------------------------------------------------------
|ll | Incorporated by reference to Exhibit 4.1 to our filing on
    Form S-8 of July 15, 2003 (No. 333-107052).



|  |                                                                                                                             
|- | ----------------------------------------------------------------------------------------------------------------------------
|¢ | Incorporated by reference to Exhibit 10.15 to our
    Form 10-K for the year ended December 31, 2001 (File
    No. 0-27662).
| 
|§ | Incorporated by reference to Exhibit 3.2 to our
    Form 8-A of July 13, 2003 (File No. 0-27662).                           



|   |                                                                                         
|-- | ----------------------------------------------------------------------------------------
|§§ | Incorporated by reference to Exhibit 4.2 to our filing on
    Form S-8 of July 15, 2003.



|   |                                                                                                                            
|-- | ---------------------------------------------------------------------------------------------------------------------------
|++ | Incorporated by reference to Exhibit 10.1 to our
    Form 10-Q for the quarter ended March 31, 2004 (File
    No. 0-27662).



|   |                                                                                                                            
|-- | ---------------------------------------------------------------------------------------------------------------------------
|¢¢ | Incorporated by reference to Exhibit 10.2 to our
    Form 10-Q for the quarter ended March 31, 2004 (File
    No. 0-27662).



|  |                                                                       
|- | ----------------------------------------------------------------------
| | Management contract or compensatory plan, contract or
    arrangement.



|  |                                                                                                                                                                                                                                                                      
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|© | These certifications are being furnished solely pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002 (sub-sections
    (a) and (b) of Section 1350, Chapter 63 of
    Title 18, United States Code), and are not being filed as
    exhibits to this report.

44