<PAGE>
================================================================================

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

           [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

                         SECURITIES EXCHANGE ACT OF 1934

                  FOR THE QUARTERLY PERIOD ENDED: JUNE 30, 2002

                                       OR

     [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

                              EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM ..................... TO ........................

              COMMISSION FILE NUMBER:               0-27662
                                                    -------

                               IPC HOLDINGS, LTD.
             (Exact name of registrant as specified in its charter)

<TABLE>
<S>                                                      <C>
            BERMUDA                                        NOT APPLICABLE
            -------                                        --------------
(State or other jurisdiction of                           (I.R.S. Employer
 incorporation or organization)                          Identification No.)
</TABLE>

   AMERICAN INTERNATIONAL BUILDING, 29 RICHMOND ROAD, PEMBROKE, HM 08, BERMUDA
   ---------------------------------------------------------------------------
                    (Address of principal executive offices)

                                 (441) 298-5100
                                 --------------
                         (Registrant's telephone number,
                              including area code)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes ..X.. No .....


The number of outstanding common shares par value U.S. $0.01 per share of IPC
Holdings, Ltd., as of August 12, 2002, was 48,172,776.








                        EXHIBIT INDEX LOCATED ON PAGE 16

================================================================================
<PAGE>
                          PART I. FINANCIAL INFORMATION

On June 14, 2002 our shareholders appointed KPMG as the Company's independent
auditors. KPMG have subsequently reviewed our financial statements for the
quarterly period ended March 31, 2002. There were no material changes to the
statements for that period as a result of that review. Changes were made to the
Transactions with Non-independent Parties disclosure, as filed in our Form
10-Q/A on August 13, 2002.

ITEM 1.  FINANCIAL STATEMENTS

                       IPC HOLDINGS, LTD. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

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

--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                        As of                     As of
                                                                    June 30, 2002           December 31, 2001
                                                                    -------------           -----------------
                                                                     (unaudited)
<S>                                                                 <C>                     <C>
ASSETS:

Fixed maturity investments:
   Available for sale, at fair market value (amortized
     cost 2002: $1,037,600; 2001: $740,734)                           $ 1,061,611                  $ 758,224
Equity investments, available for sale at fair market value
   (cost 2002: $219,396; 2001: $163,828)                                  193,905                    158,870
Cash and cash equivalents                                                  29,206                    315,207
Accrued investment income                                                  19,937                     18,841
Reinsurance premiums receivable (Related party 2002:
   $17,796; 2001: $3,644)                                                 125,110                     42,356
Deferred premiums ceded                                                     2,972                      1,228
Loss reserves recoverable (Related party 2002: $56; 2001:
   $68)                                                                       563                        681
Deferred acquisition costs                                                 13,641                      2,833
Prepaid expenses and other assets                                           6,436                      3,476
                                                                      -----------                -----------
    TOTAL ASSETS                                                      $ 1,453,381                $ 1,301,716
                                                                      ===========                ===========

LIABILITIES:

Reserve for losses and loss adjustment expenses                         $ 129,848                  $ 162,207
Unearned premiums                                                         125,384                     24,440
Reinsurance premiums payable (Related party 2002: $440;
   2001: $197)                                                              3,504                      1,732
Deferred commissions                                                          452                        218
Accounts payable and accrued liabilities (Related party
   2002: $3,972; 2001: $1,212)                                             10,284                      7,325
                                                                      -----------                -----------
                                                                          269,472                    195,922
                                                                      -----------                -----------

SHAREHOLDERS' EQUITY:

Share capital (Common shares outstanding, par value U.S.

  $0.01: 2002: 48,172,776; 2001: 48,172,776 shares)                           482                        482
Additional paid-in capital                                                846,186                    846,101
Retained earnings                                                         338,721                    246,568
                                                                      -----------                -----------
Accumulated other comprehensive (loss) income                              (1,480)                    12,643
                                                                        1,183,909                  1,105,794
                                                                      -----------                -----------
                                                                      -----------                -----------

  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                          $ 1,453,381                $ 1,301,716
                                                                      ===========                ===========
</TABLE>


              The accompanying notes are an integral part of these
                        consolidated financial statements

                                       2
<PAGE>
                       IPC HOLDINGS, LTD. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME

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


<TABLE>
<CAPTION>
                                                              Quarter ended June 30,                   Six months ended June 30,
                                                              ----------------------                   -------------------------
                                                            2002                  2001                2002                 2001
                                                            ----                  ----                ----                 ----
                                                         (unaudited)          (unaudited)          (unaudited)          (unaudited)
<S>                                                      <C>                  <C>                  <C>                  <C>
REVENUES:

Gross premiums written                                   $   60,110           $   26,965           $  207,158           $   92,587
Premiums ceded                                               (2,029)              (2,487)              (5,069)              (3,404)
                                                         ----------           ----------           ----------           ----------
Net premiums written                                         58,081               24,478              202,089               89,183
Change in unearned premium reserve, net                      (1,603)                 367              (99,200)             (39,851)
                                                         ----------           ----------           ----------           ----------
Net premiums earned                                          56,478               24,845              102,889               49,332
Net investment income                                        13,075                7,574               24,957               15,635
Realized (losses) gains, net on investments                  (6,658)                 587               (7,425)               4,451
Other income                                                    854                    0                2,261                    0
                                                         ----------           ----------           ----------           ----------
                                                             63,749               33,006              122,682               69,418
                                                         ----------           ----------           ----------           ----------

EXPENSES:

Losses and loss adjustment expenses, net                      7,765                7,212               15,372               14,179
Acquisition costs, net                                        6,421                2,706               11,465                5,753
General and administrative expenses                           3,555                2,225                6,412                4,349
Exchange (gain) loss, net                                    (2,638)                  28               (2,720)                 397
                                                         ----------           ----------           ----------           ----------
                                                             15,103               12,171               30,529               24,678
                                                         ----------           ----------           ----------           ----------

                                                         ----------           ----------           ----------           ----------
NET INCOME                                               $   48,646           $   20,835           $   92,153           $   44,740
                                                         ==========           ==========           ==========           ==========


Basic net income per common share                        $     1.01           $     0.83           $     1.91           $     1.79
Diluted net income per common share                      $     1.01           $     0.79           $     1.91           $     1.70

Weighted average number of common shares - basic          48,172,776           25,063,072           48,172,776           25,061,854
Weighted average number of common shares - diluted        48,272,420           26,330,576           48,269,061           26,300,139
</TABLE>


              The accompanying notes are an integral part of these
                       consolidated financial statements


                                      3
<PAGE>
                       IPC HOLDINGS, LTD. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

                (Expressed in thousands of United States dollars)
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                   Quarter ended June 30,          Six months ended June 30,
                                                   ----------------------          -------------------------
                                                    2002            2001             2002             2001
                                                    ----            ----             ----             ----
                                                 (unaudited)     (unaudited)      (unaudited)      (unaudited)
<S>                                              <C>             <C>              <C>              <C>
NET INCOME                                        $ 48,646         $ 20,835         $ 92,153         $ 44,740
OTHER COMPREHENSIVE (LOSS) INCOME:
    Holding (losses) gains, net on
      investments during period                     (7,023)             853          (21,548)           2,084
    Reclassification adjustment for losses
      (gains) included in net income                 6,658             (587)           7,425           (4,451)
                                                  --------         --------         --------         --------
                                                      (365)             266          (14,123)          (2,367)
                                                  --------         --------         --------         --------
COMPREHENSIVE INCOME                              $ 48,281         $ 21,101         $ 78,030         $ 42,373
                                                  ========         ========         ========         ========
</TABLE>

              The accompanying notes are an integral part of these
                        consolidated financial statements


                                       4
<PAGE>
                       IPC HOLDINGS, LTD. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                (Expressed in thousands of United States dollars)
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                               Six months ended June 30,
                                                               -------------------------
                                                                2002               2001
                                                                ----               ----
                                                             (unaudited)       (unaudited)
<S>                                                          <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES:

Net income                                                    $  92,153         $  44,740
Adjustments to reconcile net income to cash provided
    by operating activities:
    Amortization of investment premium, net                       3,599                (8)
    Realized losses (gains), net on investments                   7,425            (4,451)
    Changes in, net:
       Reinsurance premiums receivable                          (82,754)          (34,373)
       Deferred premiums ceded                                   (1,744)           (1,551)
       Loss reserves recoverable                                    118               233
       Accrued investment income                                 (1,096)            3,715
       Deferred acquisition costs                               (10,808)           (4,352)
       Prepaid expenses and other assets                         (2,960)             (823)
       Reserve for losses and loss adjustment expenses          (32,359)           (1,637)
       Unearned premiums                                        100,944            41,403
       Reinsurance premiums payable                               1,772             2,036
       Deferred commissions                                         234               277
       Accounts payable and accrued liabilities                   2,959               796
                                                              ---------         ---------
                                                                 77,483            46,005
                                                              ---------         ---------

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of fixed maturity investments                        (626,232)         (290,379)
Proceeds from sale of fixed maturity investments                318,023           275,411
Proceeds from maturities of fixed maturity investments            9,000            11,000
Purchases of equity investments                                 (64,793)          (39,283)
Proceeds from sale of equity investments                            518             1,011
                                                              ---------         ---------
                                                               (363,484)          (42,240)
                                                              ---------         ---------

CASH FLOWS FROM FINANCING ACTIVITIES:

Additional share capital                                              0               377
                                                              ---------         ---------
                                                                      0               377
                                                              ---------         ---------
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS           (286,001)            4,142
CASH AND CASH EQUIVALENTS, beginning of period                  315,207             9,409
                                                              ---------         ---------
CASH AND CASH EQUIVALENTS, end of period                      $  29,206         $  13,551
                                                              =========         =========
</TABLE>

              The accompanying notes are an integral part of these
                       consolidated financial statements


                                       5
<PAGE>
                       IPC HOLDINGS, LTD. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

1.  GENERAL:

    The consolidated interim financial statements presented herein have been
    prepared on the basis of accounting principles generally accepted in the
    United States of America and include the accounts of IPC Holdings, Ltd. (the
    "Company"), and its wholly owned subsidiaries, IPCRe Limited ("IPCRe") and
    IPCRe Underwriting Services Limited ("IPCUSL" and, together with the Company
    and IPCRe, "IPC") and IPCRe Europe Limited, which is a wholly-owned
    subsidiary of IPCRe. In the opinion of management, these financial
    statements reflect all adjustments (consisting of normal recurring accruals)
    necessary for a fair presentation of the results of operations for the six
    month periods ended June 30, 2002 and 2001, respectively, the balance sheet
    as of June 30, 2002 and the cash flows for the six month periods ended June
    30, 2002 and 2001, respectively. These interim consolidated financial
    statements should be read in conjunction with the audited consolidated
    financial statements for the year ended December 31, 2001. The results of
    operations for any interim period are not necessarily indicative of results
    for the full year.

2.  DIVIDENDS:

    No dividends have been declared or paid in 2002 to date.


                                       6
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

      CRITICAL ACCOUNTING POLICIES

      The following is a summary of the accounting policies for the three main
      components of our balance sheet and statement of income: premiums, losses
      (claims) including reserves and investments/investment income.

      Premiums are recorded at the beginning of each policy, based upon
      information received from ceding companies and their brokers. For excess
      of loss contracts, the amount of premium is usually contractually
      documented at inception, and no management judgement is necessary in
      accounting for this. Premiums are earned on a pro rata basis over the
      policy period. For proportional treaties, the amount of premium is
      normally estimated at inception by the ceding company. We account for such
      premium using the initial estimates, and then adjust them once a
      sufficient period for actual premium reporting has elapsed, normally
      around three years. For the six months ended June 30, 2002 the net amount
      of premium written resulting from estimate accruals was approximately 4%
      of total premiums written. We also accrue for reinstatement premiums on
      loss reserves. Such accruals are based upon actual contractual terms, and
      the only element of management judgement involved is with respect to the
      amount of loss reserves, as described below. The amount accrued at June
      30, 2002 for reinstatement premiums on Reported But Not Enough losses
      ("RBNE") and Incurred But Not Reported ("IBNR") loss reserves was $2.6
      million, the majority of which related to claims from the World Trade
      Center tragedy.

      Under accounting principles generally accepted in the United States Of
      America , we are not permitted to establish loss reserves with respect to
      property catastrophe reinsurance until the occurrence of an event which
      may give rise to a claim. As a result, only loss reserves applicable to
      losses incurred up to the reporting date may be set aside, with no
      allowance for the provision of a contingency reserve to account for
      expected future losses. Claims arising from future catastrophic events can
      be expected to require the establishment of substantial reserves from time
      to time.

      Setting appropriate reserves for catastrophes is an inherently uncertain
      process. Loss reserves represent our estimates, at a given point in time,
      of ultimate settlement and administration costs of losses incurred
      (including IBNR losses). We regularly review and update these estimates,
      using the most current information available to us. Consequently, the
      ultimate liability for a catastrophic loss is likely to differ from the
      original estimate. Whenever we determine that any existing loss reserves
      are inadequate, we are required to increase the loss reserves with a
      corresponding reduction, which could be material, in our operating results
      in the period in which the deficiency is identified. The establishment of
      new reserves, or the adjustment of reserves for reported claims, could
      result in significant upward or downward changes to our financial
      condition or results of operations in any particular period.

      The reserve for losses and loss adjustment expenses is based upon reports,
      individual case estimates received from ceding companies, and management's
      estimates. Management's estimates are used mostly to estimate IBNR or RBNE
      loss amounts. For certain catastrophic events there is considerable
      uncertainty underlying the assumptions and associated estimated reserves
      for losses and loss adjustment expenses. Reserves are reviewed regularly
      and, as experience develops and additional information becomes known, the
      reserves are adjusted as necessary. Such adjustments, if necessary, are
      reflected in results of operations in the period in which they become
      known. In addition, we have an independent firm of actuaries review our
      reserves semi-annually. At June 30, 2002 management's estimates for
      IBNR/RBNE represented approximately 24.3% of total loss reserves. The
      largest component of the estimate related to additional reserves for
      claims from the attack on the World Trade Center.

      In accordance with our investment guidelines, our investments consist of
      certain equity securities and high-grade marketable fixed income
      securities. Investments are carried at market value as determined by the
      most recently traded price of each security at the balance sheet date. In
      accordance with SFAS 115, unrealized gains and losses are included as a
      separate component of shareholders' investment. Realized gains and losses
      on sales of investments are determined on a first-in, first-out basis. In
      addition, unrealized depreciation in the value of individual securities
      considered by management to be other than temporary is charged to income
      in the period it is determined. Our determination of whether or not the
      decline in the value of securities is temporary is based upon the extent
      of decline, the length of time such decline has existed, and other
      quantitative and qualitative issues. Investment income is recorded when
      earned and includes the amortization of premiums and discounts on
      investments.

      RESULTS OF OPERATIONS, QUARTERS ENDED JUNE 30, 2002 AND 2001

      The following is a discussion of the results of operations and financial
      position of IPC Holdings, Ltd. References to "we", "our" or "IPC" mean IPC
      Holdings together with its wholly-owned subsidiaries, IPCRe and IPCUSL.
      This discussion should be read in conjunction with our Consolidated
      Financial Statements and related notes for the six months ended June 30,
      2002.

      In the quarters ended June 30, 2002 and 2001, we wrote premiums of $60.1
      million and $27.0 million, respectively, an increase of 122.9%. Written
      premiums in the quarter were higher primarily because we used our
      increased capacity


                                       7
<PAGE>
      resulting from the additional capital that we raised in December 2001 to
      write additional business for our existing clients, as well as new
      business. Premiums were also higher because of increases in premium rates,
      which were generally in the range of 10% to 15% for loss-free contracts,
      and greater increases for loss-impacted contracts. The additional premium
      from existing clients resulting from additional business written and rate
      increases amounted to approximately $20.1 million. Premiums from new
      business amounted to $13.5 million. These increases were partly offset by
      business which was not renewed because of unsatisfactory terms and
      conditions, which totaled approximately $2.2 million. Reinstatement
      premiums were $0.6 million lower in the second quarter of 2002 when
      compared to the corresponding quarter in 2001. We retroceded premiums of
      $2.0 million in the second quarter of 2002, compared to $2.5 million ceded
      in the second quarter of 2001. Net premiums earned in the three months
      ended June 30, 2002 were $56.5 million, compared to $24.8 million in the
      same period in 2001, an increase of 127.3%. Earned premiums were higher
      due to the increase in written premiums.

      Net investment income was $13.1 million in the quarter ended June 30,
      2002, compared to $7.6 million for the quarter ended June 30, 2001. The
      overall yield of the fixed income portfolio was less for the quarter ended
      June 30, 2002, than for the corresponding quarter in 2001. In addition,
      the amount of equity investments in the portfolio represented a greater
      proportion of the total portfolio in the second quarter of 2002, than they
      did for the corresponding period of 2001. These negative factors were more
      than offset by the increase in the average balance of invested assets in
      the second quarter of 2002, which was 99.1% higher than the second quarter
      of 2001.

      There was a net realized loss from investments in the quarter ended June
      30, 2002 of $(6.7) million, compared to a net realized gain of $0.6
      million in the second quarter of 2001. Generally, net realized gains and
      losses fluctuate from period to period, depending on the individual
      securities sold, as recommended by IPCRe's investment advisor. In
      addition, in June 2002, we wrote down the cost basis of equity investments
      in certain S & P 500 stocks, where the decline in value was considered
      other than temporary. In accordance with FAS 115, such a write-down is
      recognized as a realized loss in the income statement, even though there
      were no sales of the securities. The amount of the write-down was $(7.1)
      million.

      In the three months ended June 30, 2002, we incurred losses of $7.8
      million, compared to $7.2 million in the second quarter of 2001. Losses
      included approximately $6.0 million for various 2002 events, including
      Cats.# 58-65, which were various hail storms & tornados which struck s
      parts of the United States, and minor development from some 2001 events.
      The largest of the 2002 losses was $2.0 million arising from Cat.#61. Our
      loss and loss expense ratio (the ratio of losses and loss adjustment
      expenses to premiums earned) was 13.7% in the second quarter of 2002,
      compared to 29.0% in the second quarter of 2001.

      Acquisition costs incurred, which consist primarily of commissions and
      brokerage fees paid to intermediaries for the production of business, were
      $6.4 million for the quarter ended June 30, 2002, compared to $2.7 million
      in the corresponding period of 2001, an increase of 137.3%. Acquisition
      costs have increased primarily because of the increase in earned premiums.
      General and administrative expenses were $3.5 million in the quarter ended
      June 30, 2002, compared to the $2.2 million incurred in the second quarter
      of 2001. This increase is due primarily to an increase in administrative
      fees which are based on earned premiums, as well as some minor increases
      in certain operating expenses, including salaries and benefits and bank
      charges. IPC's expense ratio (the ratio of acquisition costs plus general
      and administrative expenses to premiums earned) was 17.7% for the quarter
      ended June 30, 2002 compared to 19.9% for the quarter ended June 30, 2001.

      The following table summarizes the loss and loss expense ratio, expense
      ratio and combined ratio (sum of loss and loss expense ratio, plus expense
      ratio) for the quarters ended June 30, 2002 and 2001, respectively:

<TABLE>
<CAPTION>
                                                                         Quarter ended June 30,
                                                                         ----------------------
                                                                       2002                   2001
                                                                       ----                   ----
<S>                                                                   <C>                    <C>
      Loss & loss expense ratio                                       13.7%                  29.0%
      Expense ratio                                                   17.7%                  19.9%
      Combined ratio                                                  31.4%                  48.9%
</TABLE>

      Our net income for the quarter ended June 30, 2002 was $48.6 million,
      compared to $20.8 million for the second quarter of 2001, an increase of
      133.5%. Excluding the effects of net realized gains and losses from
      investments, our net operating income for the quarter ended June 30, 2002
      was $55.3 million, compared to $20.2 million for the second quarter of
      2001, an increase of 173.1%. This increase is primarily the result of the
      significant increase in premiums, and the reduction in loss ratio, as
      discussed above.

      RESULTS OF OPERATIONS, SIX MONTHS ENDED JUNE 30, 2002 AND 2001

      In the six months ended June 30, 2002 and 2001, we wrote premiums of
      $207.2 million and $92.6 million, respectively, an increase of 123.7%.
      Written premiums in the six months were higher due to the utilization of
      our increased capacity resulting from the additional capital raised in
      December 2001. We wrote an additional $72.3 million for our existing
      clients, and $51.7 million for new clients. The increase also includes the
      impact of increases in premium rates, which


                                       8
<PAGE>
      were generally in the range of 10% to 20% for loss-free contracts, and
      greater increases for loss-impacted contracts. These increases were partly
      offset by business which was not renewed because of unsatisfactory terms
      and conditions, and by decreases in foreign currency exchange rates. These
      reductions totaled approximately $10.4 million. We ceded premiums of $5.1
      million to IPCRe's proportional reinsurance facilities in the first six
      months of 2002, compared to $3.4 million ceded in the first six months of
      2001. Net premiums earned in the six months ended June 30, 2002 were
      $102.9 million, compared to $49.3 million in the same period in 2001, an
      increase of 108.6%. Earned premiums were higher due to the significant
      increase in written premiums.

      Net investment income was $25.0 million in the six months ended June 30,
      2002, compared to $15.6 million for the six months ended June 30, 2001, an
      increase of 59.6%. This increase is a result of the 102.1% increase in the
      average amount of invested assets, offset by the effect of the reduction
      in the average yield generated by the portfolio.

      There was a net realized loss from investments in the six months ended
      June 30, 2002 of $(7.4) million, compared to a net gain of $4.5 million in
      the first six months of 2001. Net realized gains and losses fluctuate from
      period to period, depending on the individual securities sold, as
      recommended by IPCRe's investment advisor. In addition, in March and June
      of this year, we wrote down the cost basis of equity investments in
      certain S & P 500 stocks, where the decline in value was considered other
      than temporary. In accordance with FAS 115, such a write-down is
      recognized as a realized loss in the income statement, even though there
      were no sales of the securities. The amount of the write-down was $(8.4)
      million, for the six months ended June 30, 2002.

      In the six months ended June 30, 2002, we incurred losses of $15.4
      million, compared to $14.2 million in the first six months of 2001.
      Incurred losses in the first six months included reserves on various minor
      catastrophic events which took place during the six months, including
      North American hail storms and tornadoes, and some minor development of
      losses from 2001. In the first six months of 2001, incurred losses were
      primarily the reserves on certain events which took place during the six
      months, including North American winter storms, storms in Northeast
      Australia, Tropical Storm Allison and the hail storms which struck St.
      Louis and other parts of the mid-West. Our loss and loss expense ratio was
      14.9% in the first six months of 2002, compared to 28.7% in the first six
      months of 2001.

      Acquisition costs incurred, which consist primarily of commissions and
      brokerage fees paid to intermediaries for the production of business, were
      $11.5 million for the six months ended June 30, 2002, compared to $5.8
      million in the same period of 2001, an increase of 99.3%. This increase is
      due to the increase in earned premiums. General and administrative
      expenses were $6.4 million in the six months ended June 30, 2002, compared
      to the $4.3 million incurred in the corresponding period in 2001. This
      increase is due primarily to the increase in administrative fees which are
      based on earned premiums, and some minor increases in certain operating
      expenses, including salaries and benefits. IPC's expense ratio was 17.4%
      for the six months ended June 30, 2002 compared to 20.5% for the
      corresponding period in 2001.

      The following table summarizes the loss and loss expense ratio, expense
      ratio and combined ratio for the six months ended June 30, 2002 and 2001,
      respectively:

<TABLE>
<CAPTION>
                                                   Six months ended June 30,
                                                   -------------------------
                                                  2002                   2001
                                                  ----                   ----
<S>                                              <C>                    <C>
      Loss & loss expense ratio                  14.9%                  28.7%
      Expense ratio                              17.4%                  20.5%
      Combined ratio                             32.3%                  49.2%
</TABLE>

      Our net income for the six months ended June 30, 2002 was $92.2 million,
      compared to $44.7 million for the corresponding period in 2001, an
      increase of 106.0%. Excluding the effects of net realized gains and losses
      arising from investments, net operating income for the first six months of
      2002 was $99.6 million, compared to $40.3 million for the first six months
      of 2001, an increase of 147.1%. This increase is primarily the result of
      higher premiums and lower loss ratio, as discussed above.

      LIQUIDITY AND CAPITAL RESOURCES

      IPC Holdings is a holding company that conducts no reinsurance operations
      of its own. Its cash flows are limited to distributions from IPCRe and
      IPCUSL by way of loans or dividends. The dividends that IPCRe may pay are
      limited under Bermuda legislation and IPCRe's revolving credit facility.
      The Bermuda Insurance Act of 1978, and subsequent amendments thereto,
      require IPCRe to maintain a minimum solvency margin and a minimum
      liquidity ratio. The maximum dividend payable by IPCRe in accordance with
      Bermuda regulations as of January 1, 2002 was approximately $276 million.
      The maximum amount IPCRe could have paid in the second quarter under the
      terms of the credit facility was $15.5 million.

      IPCRe's sources of funds consist of premiums written, investment income,
      paid losses recovered from retrocedants and proceeds from sales and
      redemptions of investments. Cash is used primarily to pay losses and loss
      adjustment expenses, premiums retroceded, brokerage commissions, excise
      taxes, general and administrative expenses and dividends. The


                                       9
<PAGE>
      potential for a large catastrophe means that unpredictable and substantial
      payments may need to be made within relatively short periods of time, and
      therefore our cash flows fluctuate significantly from period to period.

      Net cash flows from operating activities in the six months ended June 30,
      2002 were $77.5 million compared to $46.0 million in the corresponding
      period in 2001. The increase is primarily the result of the significant
      increase in premium volume, offset in part by an increase in claims paid
      during the period, which were $49.1 million in the six months ended June
      30, 2002, compared to $14.1 million in the second quarter of 2001. A
      significant proportion of the claims paid in 2002 relate to Cat. #48 (the
      attack on the World Trade Center). We expect to continue to pay
      significant amounts in respect of that event during the next six to nine
      months.

      Net cash outflows from investing activities in the six months ended June
      30, 2002 were $(363.5) million. Cash and cash equivalents decreased by
      $(286.0) million in the six months ended June 30, 2002, resulting in a
      balance of $29.2 million at June 30, 2002. The decrease is due to the fact
      that at December 31, 2001, a significant proportion of the proceeds of our
      capital raising in December had been invested in commercial paper, time
      deposits and other short term instruments with maturities of less than
      ninety days, which we classify as cash equivalents. During the first
      quarter of 2002, our investment managers reinvested these funds in longer
      dated fixed income securities and equities. At June 30, 2002, 34.5% of
      IPC's fixed maturity portfolio (based on market value) was held in cash,
      United States Government/Agency issues and in securities rated AAA, and
      43.9% was held in securities rated AA. The average modified duration of
      IPC's fixed maturity portfolio was 2.4 years. We believe that IPCRe's $150
      million revolving credit facility which expires in June 2003, and the
      relatively short duration and high quality of IPC's investment portfolio,
      will provide sufficient liquidity to meet IPC's cash demands.

      IPCRe is not a licensed insurer in the United States and therefore, under
      the terms of most of its contracts with U.S.-based companies, must provide
      security to reinsureds to cover unpaid liabilities in a form acceptable to
      state insurance commissioners. Typically, this type of security takes the
      form of a letter of credit issued by an acceptable bank, the establishment
      of a trust, or a cash advance. Currently IPCRe obtains letters of credit
      through one commercial bank pursuant to a $100.0 million facility. In
      turn, IPCRe provides the bank security by giving the bank a lien over
      certain of IPCRe's investments in an amount not to exceed the aggregate
      letters of credit outstanding to a maximum of $118.0 million. At June 30,
      2002, there were outstanding letters of credit of $89.2 million. If we
      were unable to obtain the necessary credit, IPCRe could be limited in its
      ability to write business for our clients in the United States.

      Our investment portfolio does not currently include options, warrants,
      swaps, collars or similar derivative instruments. Our investment policy
      guidelines provide that financial futures and options and foreign exchange
      contracts may not be used in a speculative manner, but may be used,
      subject to certain numerical limits, only as part of a defensive strategy
      to protect the market value of the portfolio. Also, our portfolio does not
      contain any investments in real estate or mortgage loans. Neither the
      Company nor any of its subsidiaries has any other forms of off-balance
      sheet arrangements, or cash obligations or commitments.

      Neither the Company, IPCRe nor IPCUSL have any material commitments for
      capital expenditures.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

      The investment portfolio of IPCRe is exposed to market risk. Market risk
      is the risk of loss of fair value resulting from adverse fluctuations in
      interest rates, foreign currency exchange rates and equity prices.

      Measuring potential losses in fair values has become the focus of risk
      management efforts by many companies. Such measurements are performed
      through the application of various statistical techniques. One such
      technique is Value at Risk ("VaR"). VaR is a summary statistical measure
      that uses historical interest and foreign currency exchange rates and
      equity prices and estimates of the volatility and correlation of each of
      these rates and prices to calculate the maximum loss that could occur
      within a given statistical confidence level and time horizon.

      We believe that statistical models alone do not provide a reliable method
      of monitoring and controlling market risk. While VaR models are relatively
      sophisticated, the quantitative market risk information is limited by the
      assumptions and parameters established in creating the related models.
      Therefore, such models are tools and do not substitute for the experience
      or judgement of senior management.

      Our investment managers performed a VaR analysis to estimate the maximum
      potential loss of fair value for each segment of market risk for our
      investment portfolio, as of June 30, 2002, March 31, 2002 and December 31,
      2001. The analysis calculated the VaR with respect to the net fair value
      of our financial instrument assets, which includes cash and cash
      equivalents, certain equity and high grade fixed maturity securities, as
      of June 30, 2002 using historical simulation methodology. As of June 30,
      2002 the VaR of IPCRe's investment portfolio was approximately $16.3
      million, which represents a 95th percentile value change over a one-month
      time horizon. This result was obtained through historical simulation using
      approximately 750 days (3 years) of historical interest rate, foreign
      exchange rate and equity market data.


                                       10
<PAGE>
      The following table presents the VaR of each component of market risk of
      IPCRe's investment portfolio as of June 30, 2002, March 31, 2002, and
      December 31, 2001, respectively, and the average for the six months ended
      June 30, 2002, calculated using the beginning, ending and quarterly points
      (expressed in thousands of U.S. dollars):

<TABLE>
<CAPTION>
           MARKET RISK                       At              At                At        Average for six
                                          June 30,        March 31,       December 31,     months ended
                                            2002             2002             2001        June 30, 2002
                                            ----             ----             ----        -------------
<S>                                       <C>             <C>             <C>            <C>
           Currency                       $  1,283         $  1,351         $  1,101         $  1,245
           Interest Rate                     9,554           11,404            7,296            9,418
           Equity                           17,029           18,625           13,222           16,292
                                          --------         --------         --------         --------
           Sum of Risk                      27,866           31,380           21,619           26,955
           Diversification Benefit         (11,576)         (12,666)          (8,305)         (10,849)
                                          --------         --------         --------         --------
           TOTAL NET RISK                 $ 16,290         $ 18,714         $ 13,314         $ 16,106
                                          --------         --------         --------         --------
</TABLE>

      The primary reasons for the increase in VaR from $13.3 million at December
      31, 2001 to $16.3 million at June 30, 2002 are the additional investment
      in equities, which took place at the beginning of January, 2002, growth in
      our bond holdings and a slight increase in the duration of the fixed
      maturity portfolio.

      IPCRe's premiums receivable and liabilities for losses from reinsurance
      contracts it has written, are also exposed to the risk of changes in value
      resulting from adverse fluctuations in foreign currency exchange rates. To
      an extent, the impact on loss reserves of a movement in an exchange rate,
      will be partly offset by the impact on assets (receivables and
      cash/investments) denominated in the same currency, or vice versa. As of
      June 30, 2002 an estimated 36% (approximately $45 million) of reinsurance
      premiums receivable, and an estimated $20 million of loss reserves, were
      denominated in non-U.S. currencies. In addition, we held U.S.$3.3 million
      of Australian dollar cash deposits which are to be used to settle
      hailstorm claims from 1999. Accordingly, we do not believe that the impact
      of exchange rate movements in respect of receivables or loss reserves on
      our overall VaR as of June 30, 2002 to be material.

      TRANSACTIONS WITH NON-INDEPENDENT PARTIES

      The following is a summary of amounts in respect of significant related
      party transactions during the six month periods ended June 30, 2002 and
      June 30, 2001, respectively, (expressed in thousands of U.S. dollars):

<TABLE>
<CAPTION>
                                                                           June 30, 2002       June 30, 2001
                                                                           -------------       -------------
<S>                                                                        <C>                 <C>
      Administrative services fees (included in Operating expenses)            $ 2,655            $ 1,279

      Investment fees netted against investment income:

      Investment management services fees                                      $ 1,092            $   616
      Investment custodian services fees                                       $   249            $   159

      Underwriting services fee income (included in Other income)              $ 2,261            $     0

      Premiums written                                                         $28,737            $12,116
      Premiums ceded                                                           $   581            $   340
</TABLE>

      Underwriting service fees are a percentage of the premiums written on
      behalf of one client, a company in which AIG has a 23.4% ownership
      interest. Fees are accrued and taken into income based on the premiums
      written each quarter.

      In addition, IPCRe assumes premiums through brokers related to
      shareholders of the Company. Generally, such premiums represent less than
      5% of total premiums assumed. Brokerage fees incurred on such premiums are
      generally 10% of the premium.

      For a discussion of certain of our contractual relationships with
      non-independent parties, please see "Certain Relationships and Related
      Transactions" in our definitive Proxy Statement on Schedule 14A, filed
      with the Securities and Exchange Commission on April 26, 2002 and
      incorporated by reference into our Form 10-K for the year ended December
      31, 2001.

      All transactions with related parties are conducted at arm's length, with
      normal terms and conditions applicable. To our knowledge, neither the
      Company nor any of its subsidiaries have entered into any other
      significant transactions with non-independent parties.

      NOTE ON FORWARD-LOOKING STATEMENTS

      This report contains certain forward-looking statements within the meaning
      of Section 27A of the Securities Act of 1933, as amended, and Section 21E
      of the Securities Exchange Act of 1934, as amended. Forward-looking
      statements are


                                       11
<PAGE>
      statements other than historical information or statements of current
      condition, including but not limited to expectations regarding renewals
      and our ability to increase written premium volume and improve profit
      margins, market conditions, the impact of current market conditions and
      trends on future periods, the impact of our business strategy on our
      results, trends in pricing and claims and the insurance and reinsurance
      market response to catastrophic events. Some forward-looking statements
      may be identified by our use of terms such as "believes," "anticipates,"
      "intends," or "expects" and relate to our plans and objectives for future
      operations. In light of the risks and uncertainties inherent in all
      forward-looking statements, the inclusion of such statements in this
      document should not be considered as a representation by us or any other
      person that our objectives or plans will be achieved. We do not intend,
      and are under no obligation, to update any forward-looking statement
      contained in this report. The largest single factor in our results has
      been and will continue to be the severity or frequency of catastrophic
      events, which is inherently unpredictable. Numerous factors could cause
      our actual results to differ materially from those in the forward-looking
      statements, including, but not limited to, the following: (i) the
      occurrence of natural or man-made catastrophic events with a frequency or
      severity exceeding our estimates; (ii) any lowering or loss of one of the
      financial ratings of our wholly owned subsidiary, IPCRe Limited; (iii) a
      decrease in the level of demand for property catastrophe reinsurance, or
      increased competition owing to increased capacity of property catastrophe
      reinsurers; (iv) the effect of competition on market trends and pricing;
      (v) the adequacy of our loss reserves; (vi) loss of our non-admitted
      status in United States jurisdictions or the passage of federal or state
      legislation subjecting us to supervision or regulation in the United
      States; (vii) the impact of the September 11 terrorist attacks and their
      aftermath on our reinsureds, on the insurance and reinsurance industry and
      on the future coverage for terrorist acts and on the economy in general,
      and potential governmental intervention in the insurance and reinsurance
      industry in the aftermath of the September 11 terrorist attacks; (viii)
      challenges by insurance regulators in the United States to our claim of
      exemption from insurance regulation under current laws; (ix) a contention
      by the United States Internal Revenue Service that we are engaged in the
      conduct of a trade or business within the U.S.; (x) loss of services of
      any one of our executive officers; or (xi) changes in exchange rates and
      greater than expected currency exposure.


                                       12
<PAGE>
PART II - OTHER INFORMATION

    ITEM 1.           LEGAL PROCEEDINGS

                NONE

    ITEM 2.           CHANGES IN SECURITIES AND USE OF PROCEEDS

                NONE

    ITEM 3.           DEFAULTS UPON SENIOR SECURITIES

                NONE

    ITEM 4.           SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

                      On June 14, 2002 the Annual General Meeting of
                      Shareholders of the Company was held. At the meeting,
                      shareholders were asked to vote upon resolutions set forth
                      below. The following tabulation indicates the number of
                      shares present in person or by proxy at such meeting and
                      the number of such shares for or against, or withheld, or
                      abstaining, with respect to each resolution after giving
                      effect to the voting limitations contained in the
                      Company's Bye-Laws:

                      i). amending the Company's Bye-Laws to permit and require
                      the Board of Directors fill casual vacancies of the
                      Company's independent Auditor until the following Annual
                      General Meeting -

<TABLE>
<CAPTION>
                                                                FOR                AGAINST       WITHHELD
                                                                ---                -------       --------
<S>                                                          <C>                   <C>           <C>
                                                             37,369,573            125,681        41,826
</TABLE>

                      ii). authorizing the Board to appoint a seventh director
                      to hold office until the Company's next Annual General
                      Meeting -

<TABLE>
<CAPTION>
                                                                FOR                AGAINST       WITHHELD
                                                                ---                -------       --------
<S>                                                          <C>                   <C>           <C>
                                                             37,340,429            152,412        44,239
</TABLE>

                      iii). electing the following persons as directors of the
                      Company to serve until the 2003 Annual General Meeting -

<TABLE>
<CAPTION>
                                                                FOR                AGAINST       WITHHELD
                                                                ---                -------       --------
<S>                                                          <C>                   <C>           <C>
                      Joseph C.H. Johnson                    37,393,540               -          143,540
                      Anthony M. Pilling                     37,509,156               -           27,924
                      Dr. the Honourable Clarence James      37,509,000               -           28,080
                      Frank Mutch                            37,510,540               -           26,540
                      James P. Bryce                         37,511,156               -           25,924
                      Jackie Clegg                           37,510,366               -           26,714
</TABLE>

                      iv). appointing KPMG as auditors of the Company for its
                      fiscal year ending December 31, 2002 -

<TABLE>
<CAPTION>
                                                                FOR                AGAINST       WITHHELD
                                                                ---                -------       --------
<S>                                                          <C>                   <C>           <C>
                                                             37,392,740            119,551        24,789
</TABLE>

                      All resolutions were passed by show of hands. No other
                      business of substance was transacted.

    ITEM 5.           OTHER INFORMATION

                NONE


                                       13
<PAGE>
    ITEM 6.           EXHIBITS AND REPORTS ON FORM 8-K

                      (a) Exhibits

                      Unless otherwise indicated, exhibits are incorporated by
                      reference to the corresponding numbered exhibits to the
                      Company's Registration Statement on Form S-1 (Registration
                      No. 333-00088).

<TABLE>
<CAPTION>
       EXHIBIT
       NUMBER         DESCRIPTION
       ------         -----------
<S>                   <C>
         3.1          Memorandum of Association of the Company
         3.2 +        Amended and Restated Bye-laws of the Company
         3.3          Form of Memorandum of Increase of Share Capital
        11.1 *        Reconciliation of basic and diluted net income per common share ("EPS").
</TABLE>

             +     Incorporated by reference to Exhibit 4.2 to our Registration
                   Statement on Form S-3 (No. 333-73828).

             *     Filed herewith

                      (b) Reports on Form 8-K

                (i)   The Company filed a Form 8-K current report (date of
                      earliest event reported: April 17, 2002) advising that
                      the Board of Directors were proposing to IPC's
                      shareholders that KPMG be appointed in place of Arthur
                      Andersen as the Company's independent auditors, at its
                      Annual General Meeting on June 14, 2002.

                (ii)  The Company filed a Form 8-K/A current report (date of
                      earliest event reported: June 14, 2002) confirming that
                      there had been no disagreements between IPC and Arthur
                      Andersen on any matter of accounting principle or
                      practice, or financial statements disclosure, or any
                      reportable events, during IPC's two most recent fiscal
                      years ended December 31, 2001 and during the interim
                      period between December 31, 2001 and June 14, 2002. The
                      filing also confirmed that IPC's shareholders had
                      resolved to appoint KPMG as IPC's independent auditors
                      to serve until the next Annual General meeting of the
                      shareholders.


                                       14
<PAGE>
                               IPC HOLDINGS, LTD.

                                   SIGNATURES

PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE
REGISTRANT HAS DULY CAUSED THIS REPORT TO BE SIGNED ON ITS BEHALF BY THE
UNDERSIGNED THEREUNTO DULY AUTHORIZED.

<TABLE>
<S>                           <C>
                                            IPC HOLDINGS, LTD.
                                               (REGISTRANT)

DATE  AUGUST 14, 2002                      /s/ James P. Bryce
      ---------------         -------------------------------------------------
                                             JAMES P. BRYCE
                                  PRESIDENT AND CHIEF EXECUTIVE OFFICER

DATE  AUGUST 14, 2002                      /s/ John R. Weale
      ---------------         -------------------------------------------------
                                             JOHN R. WEALE
                              SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
</TABLE>


                                       15
<PAGE>
                                 EXHIBIT INDEX

    Unless otherwise indicated, exhibits are incorporated by reference to the
corresponding numbered exhibits to the Company's Registration Statement on Form
S-1 (Registration No. 333-00088).

<TABLE>
<CAPTION>
       EXHIBIT
       NUMBER     DESCRIPTION
       ------     -----------
<S>               <C>
         3.1      Memorandum of Association of the Company
         3.2 +    Amended and Restated Bye-laws of the Company
         3.3      Form of Memorandum of Increase of Share Capital
        11.1 *    Reconciliation of basic and diluted net income per common share ("EPS")
</TABLE>
             +    Incorporated by reference to Exhibit 4.2 to our Registration
                  Statement on Form S-3 (No. 333-73828).

             *    Filed herewith


                                       16