<PAGE>   1
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

      [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

      FOR THE QUARTERLY PERIOD ENDED: SEPTEMBER 30, 1999

                                       OR

      [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

      FOR THE TRANSITION PERIOD FROM                        TO

      COMMISSION FILE NUMBER:          0-27662

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

            BERMUDA                                        NOT APPLICABLE
(State or other jurisdiction of                           (I.R.S. Employer
incorporation or organization)                           Identification No.)

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


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


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


The number of outstanding common shares par value U.S. $0.01 per share of IPC
Holdings, Ltd., as of November 10, 1999, was 25,033,932.

                                 TOTAL PAGES 30
                        EXHIBIT INDEX LOCATED ON PAGE 14
<PAGE>   2
                          PART I. FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                       IPC HOLDINGS, LTD. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

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


<TABLE>
<CAPTION>
                                                                          As of                       As of
                                                                   September 30, 1999           December 31, 1998
                                                                   ------------------           -----------------
                                                                       (unaudited)                  (audited)
<S>                                                                <C>                          <C>
ASSETS:

Fixed maturity investments:
   Available for sale, at fair market value (Amortized
   cost 1999: $510,210; 1998: $478,806)                                 $ 500,617                  $ 484,863
Equity investments, available for sale (Cost 1999:
$70,474; 1998: $69,268)                                                    68,732                     94,152
Cash and cash equivalents                                                  27,560                     20,966
Reinsurance balances receivable (Related party 1999:
$4,325; 1998: $3,653)                                                      36,925                     20,747
Funds held by reinsured companies                                               0                      2,434
Deferred premiums ceded                                                     1,059                          0
Loss reserves recoverable (Related party 1999: $432;
1998: $0)                                                                   4,321                          0
Accrued investment income                                                  12,205                     14,752
Deferred acquisition costs                                                  4,219                      2,048
Prepaid expenses and other assets                                           3,920                      3,129
                                                                        ---------                  ---------
    TOTAL ASSETS                                                        $ 659,558                  $ 643,091
                                                                        =========                  =========

LIABILITIES:

Reserve for losses and loss adjustment expenses                         $  89,046                  $  52,226
Unearned premiums                                                          35,486                     17,602
Reinsurance balances payable (Related party 1999: $212;
1998: $0)                                                                   2,119                          0
Deferred commissions                                                           90                          0
Accounts payable and accrued liabilities (Related party
1999: $900; 1998: $1,689)                                                   7,059                      7,311
                                                                        ---------                  ---------
    TOTAL LIABILITIES                                                     133,800                     77,139
                                                                        ---------                  ---------

SHAREHOLDERS' EQUITY:

Share capital (Common shares outstanding, par value
U.S.$0.01:1999: 25,033,932; 1998: 25,033,932 shares)                          250                        250
Additional paid-in capital                                                299,833                    299,833
Retained earnings                                                         237,010                    234,928
Accumulated other comprehensive income                                    (11,335)                    30,941
                                                                        ---------                  ---------
   TOTAL SHAREHOLDERS' EQUITY                                             525,758                    565,952
                                                                        ---------                  ---------

                                                                        ---------                  ---------
   TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                           $ 659,558                  $ 643,091
                                                                        =========                  =========
</TABLE>

           See accompanying Notes to Consolidated Financial Statements


                                      -2-
<PAGE>   3
                       IPC HOLDINGS, LTD. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME

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


<TABLE>
<CAPTION>
                                                           Quarter ended September 30,           Nine Months ended September 30,
                                                           ---------------------------           -------------------------------
                                                              1999            1998                   1999               1998
                                                           ------------   ------------           ------------       ------------
REVENUES:                                                  (Unaudited)    (Unaudited)             (Unaudited)        (Unaudited)

<S>                                                        <C>            <C>                    <C>                <C>
Gross premiums written                                     $      8,750   $     15,671           $     92,449       $    106,242
Premiums ceded                                                     (516)             0                 (3,615)                 0
                                                           ------------   ------------           ------------       ------------
Net written premiums                                              8,234         15,671                 88,834            106,242
Change in unearned premium reserve                               13,065         13,756                (16,825)           (16,607)
                                                           ------------   ------------           ------------       ------------
Net premiums earned                                              21,299         29,427                 72,009             89,635
Net investment income                                             7,511          7,726                 22,575             22,438
Realized gains/(losses), net on investments                         286            342                 30,464              4,030
                                                           ------------   ------------           ------------       ------------
   TOTAL REVENUES                                                29,096         37,495                125,048            116,103
                                                           ============   ============           ============       ============

EXPENSES:

Losses and loss adjustment expenses, net                         16,109         18,922                 82,024             33,379
Acquisition costs, net                                            3,199          4,212                 10,200             12,248
General and administrative expenses                               2,191          2,960                  6,927              7,922
Exchange loss / (gain)                                             (200)           340                    (29)               545
                                                           ------------   ------------           ------------       ------------
   TOTAL EXPENSES                                                21,299         26,434                 99,122             54,094
                                                           ------------   ------------           ------------       ------------

                                                           ------------   ------------           ------------       ------------
NET INCOME                                                 $      7,797   $     11,061           $     25,926       $     62,009
                                                           ============   ============           ============       ============


Basic net income per common share                          $       0.31   $       0.44           $       1.04       $       2.48
Diluted net income per common share                        $       0.30   $       0.42           $       0.99       $       2.33

Weighted average number of common share - basic              25,033,932     25,033,932             25,033,932         25,030,303
Weighted average number of common share - diluted            26,051,096     26,474,892             26,071,336         26,625,544
</TABLE>


           See accompanying Notes to Consolidated Financial Statements


                                      -3-
<PAGE>   4
                       IPC HOLDINGS, LTD. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                (Expressed in thousands of United States dollars)

<TABLE>
<CAPTION>
                                                                Nine months ended September 30,
                                                                -------------------------------
                                                                   1999                1998
                                                                ---------           ---------
                                                                (unaudited)         (unaudited)
<S>                                                             <C>                 <C>
CASH FLOWS FROM OPERATING ACTIVITIES:

Net income                                                      $  25,926           $  62,009
Adjustments to reconcile net income to cash provided
    by operating activities:
    Amortization of investment premium, net                            25                 663
    Realized (gains) losses, net on investments                   (30,464)             (4,030)
    Changes in, net:
       Reinsurance balances receivable                            (16,178)             (8,198)
       Funds held by reinsured companies                            2,434              (2,410)
       Deferred premiums ceded                                     (1,059)                  0
       Loss reserves recoverable                                   (4,321)                  0
       Accrued investment income                                    2,547                 602
       Deferred acquisition costs                                  (2,171)             (2,459)
       Prepaid expenses and other assets                             (791)             (1,007)
       Reserve for losses and loss adjustment expenses             36,820              15,628
       Unearned premiums                                           17,884              16,607
       Reinsurance balances payable                                 2,119                   0
       Deferred commissions                                            90                   0
       Accounts payable and accrued liabilities                      (252)              3,540
                                                                ---------           ---------
                                                                   32,609              80,945
                                                                ---------           ---------

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of fixed maturity investments                           (267,208)           (227,041)
Proceeds from sale of fixed maturity investments                  191,000             170,417
Proceeds from maturities of fixed maturity investments             45,050               8,000
Purchases of equity investments                                   (80,754)             (2,204)
Proceeds from sale of equity investments                          109,741              16,621
                                                                ---------           ---------
                                                                   (2,171)            (34,207)
                                                                ---------           ---------

CASH FLOWS FROM FINANCING ACTIVITIES:

Additional share capital                                                0                 300
Cash dividends paid to shareholders                               (23,844)            (43,872)
                                                                ---------           ---------
                                                                  (23,844)            (43,572)
                                                                ---------           ---------
Net increase (decrease) in cash and cash equivalents                6,594               3,166
Cash and cash equivalents, beginning of period                     20,966               9,746
                                                                ---------           ---------
Cash and cash equivalents, end of period                        $  27,560           $  12,912
                                                                =========           =========
</TABLE>


           See accompanying Notes to Consolidated Financial Statements


                                      -4-
<PAGE>   5
                       IPC HOLDINGS, LTD. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

                (Expressed in thousands of United States dollars)


<TABLE>
<CAPTION>
                                                         Quarter ended September 30,         Nine Months ended September 30,
                                                         ---------------------------         -------------------------------
                                                           1999               1998               1999               1998
                                                         --------           --------           --------           --------
<S>                                                      <C>                <C>                <C>                <C>
Net income                                               $  7,797           $ 11,061           $ 25,926           $ 62,009
                                                         --------           --------           --------           --------
Other comprehensive income:
    Holding (losses ) gains, net on investments
    during period                                          (6,001)             1,488            (11,812)            16,638
    Reclassification adjustment for (gains)
    losses included in net income                            (286)              (342)           (30,464)            (4,030)
                                                         --------           --------           --------           --------
                                                           (6,287)             1,146            (42,276)            12,608
                                                         --------           --------           --------           --------
Comprehensive income                                     $  1,510           $ 12,207           $(16,350)          $ 74,617
                                                         ========           ========           ========           ========
</TABLE>


           See accompanying Notes to Consolidated Financial Statements


                                      -5-
<PAGE>   6
                       IPC HOLDINGS, LTD. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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


1.  GENERAL:

    The consolidated interim financial statements presented herein have been
    prepared on the basis of United States generally accepted accounting
    principles ("GAAP") and include the accounts of IPC Holdings, Ltd. (the
    "Company"), and its wholly owned subsidiaries, IPCRe Limited ("IPCRe") and
    IPCRe Services Limited ("Services" and, together with the Company and IPCRe,
    "IPC") and IPCRe Europe Limited, which is a wholly-owned subsidiary of
    IPCRe. In the opinion of management, these financial statements reflect all
    adjustments (consisting of normal recurring accruals) necessary for a fair
    presentation of the results of operations for the three and nine month
    periods ended September 30, 1999 and 1998, respectively, the balance sheet
    at September 30, 1999 and the cash flows for the nine month periods ended
    September 30, 1999 and 1998, respectively. These interim consolidated
    financial statements should be read in conjunction with the audited
    consolidated financial statements for the year ended December 31, 1998. The
    results of operations for any interim period are not necessarily indicative
    of results for the full year.

2.  DIVIDENDS:

    On February 28, 1999, the Directors declared a quarterly dividend of $0.3175
    per share, payable to shareholders of record on March 9, 1999. Such
    dividends were paid March 25, 1999.

    On April 27, 1999, the Directors declared a quarterly dividend of $0.3175
    per share, payable to shareholders of record on June 8, 1999. Such dividends
    were paid on June 24, 1999.

    On July 27, 1999, the Directors declared a quarterly dividend of $0.3175 per
    share payable to shareholders of record on September 7, 1999. Such dividends
    were paid on September 23, 1999.

    On October 25, 1999, the Directors declared a quarterly dividend of $0.16
    per share payable on December 16, 1999, to shareholders of record on
    November 30, 1999.

3.  NET INCOME PER SHARE:

    The Company has adopted Statement of Financial Accounting Standards No. 128,
    "Earnings per Share", which requires dual presentation of basic and diluted
    earnings per share. Diluted net income per common share is computed by
    dividing net income by the weighted average number of shares of common stock
    and common stock equivalents outstanding during the year. Stock options held
    by a shareholder of the Company were considered common stock equivalents and
    were included in the number of weighted average shares outstanding using the
    treasury stock method. Stock options granted to employees on February 15,
    1996, July 25, 1996, January 2, 1997, January 2, 1998 and January 5, 1999
    were also considered common stock equivalents for the purpose of calculating
    diluted net income per common share.

4.  ACCOUNTING FOR DERIVATIVES:

    The Financial Accounting Standards Board has also recently issued Statement
    of Financial Accounting Standard No. 137 ("SFAS 137"), which is an amendment
    to Statement of Financial Accounting Standard No. 133, "Accounting for
    Derivative Instruments and Hedging Activities," ("SFAS 133"), deferring the
    effective date thereof to periods beginning after June 15, 2000. Management
    does not expect the impact of the adoption of SFAS 137/133 on the Company's
    financial position or results to be material.

5.  DEPOSIT ACCOUNTING:

     In October, 1998 the American Institute of Certified Public Accountants
     ("AICPA") issued Statement of Position 98-7, "Accounting for Insurance and
     Reinsurance Contracts that do not Transfer Insurance Risk", which is
     effective for fiscal years beginning after June 15, 1999. IPCRe does not
     currently write or cede business which would be affected by this Statement.


                                      -6-
<PAGE>   7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

       RESULTS OF OPERATIONS, QUARTERS ENDED SEPTEMBER 30, 1999 AND 1998

    In the quarters ended September 30, 1999 and 1998, IPCRe wrote premiums of
    $8.8 million and $15.7 million, respectively. Written premiums were impacted
    by rate reductions in the period, generally in the range of 5-10% but as
    high as 15 to 20% in some cases, and the non-renewal of some contracts by
    IPCRe, where the rates and/or terms were considered unsatisfactory. In
    addition, IPCRe has not renewed, or has declined to write, multi-year
    treaties from April 1, 1999 onwards, unless the proposed rates are
    significantly higher than current levels. The reductions in written premiums
    resulting from the above, which totaled approximately $7.0 million, were
    partially offset by increased signings and additional business from existing
    clients, and selectively written business for new clients, which totaled
    approximately $0.4 million. Written premiums also included reinstatement
    premiums of $1.0 million in the third quarter of 1999, which was $0.5
    million less than the third quarter of 1998. Net premiums written were also
    impacted by further cessions to IPCRe's proportional reinsurance facility,
    which had the effect of reducing written premiums by a further $0.5 million.
    Net premiums earned in the three months ended September 30, 1999 were $21.3
    million, compared to $29.4 million in the same period in 1998, a decrease of
    27.6%. Earned premiums are lower primarily because of the reduction in net
    written premiums.

    Net investment income was $7.5 million in the quarter ended September 30,
    1999, compared to $7.7 million for the quarter ended September 30, 1998, a
    decrease of 2.8%. The decrease arises from decreases in the net yield of the
    portfolio, offset in part by the average amount of invested assets being
    3.2% higher.

    There was a net realized gain from the sale of investments in the quarter
    ended September 30, 1999 of $0.3 million, compared to $0.3 million in the
    third quarter of 1998. Net realized gains and losses fluctuate from period
    to period, depending on the individual securities sold, as recommended by
    IPCRe's investment advisor.

    In the three months ended September 30, 1999, incurred losses were $16.1
    million, compared to $18.9 million in the corresponding quarter of 1998.
    Claim activity in the three months ended September 30, 1999 included
    Hurricane Floyd, which caused severe flooding and other damage to north and
    mid-Atlantic coastal states in September of this year, Cat.#90 which was a
    hail and wind storm which affected Nebraska in June, 1999, the earthquake in
    Turkey, Cyclone Davina, and Typhoon Bart, which struck Japan in late
    September 1999. IPC's loss and loss expense ratio (the ratio of losses and
    loss adjustment expenses to premiums earned) was 75.6% in the third quarter
    of 1999, compared to 64.3% in the corresponding period in 1998.

    Acquisition costs incurred, which consist primarily of commissions and
    brokerage fees paid to intermediaries for the production of business, were
    $3.2 million for the quarter ended September 30, 1999, compared to $4.2
    million in the same period of 1998, a decrease of 24.1%. The reduction is
    due primarily to the decrease in earned premiums. General and administrative
    expenses were $2.2 million in the quarter ended September 30, 1999, compared
    to the $3.0 million incurred in the corresponding period in 1998. The
    decrease is due primarily to the initial fees for IPCRe's $300 million
    standby credit facility, which became effective July 1, 1998. Such fees were
    paid shortly thereafter. In addition, fees paid under an administrative
    services agreement are based on earned premiums, and have declined in 1999
    accordingly. IPC's expense ratio (the ratio of acquisition costs plus
    general and administrative expenses to premiums earned) was 25.3% for the
    quarter ended September 30, 1999 compared to 24.4% for the corresponding
    period in 1998.

    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 September 30, 1999 and 1998, respectively:

<TABLE>
<CAPTION>
                                               Quarter ended September 30,
                                               ---------------------------
                                                1999                 1998
                                               ------               ------
<S>                                            <C>                  <C>
    Loss & loss expense ratio                   75.6%                64.3%
    Expense ratio                               25.3%                24.4%
    Combined ratio                             100.9%                88.7%
</TABLE>

    Net income for the quarter ended September 30, 1999 was $7.8 million,
    compared to $11.1 million for the corresponding period in 1998, a decrease
    of 29.5%. Excluding the effects of net realized gains and losses arising
    from the sale of investments, net operating income for the third quarter of
    1999 was $7.5 million, compared to $10.7 million for the third quarter of
    1998, a decrease of 29.9%. The decrease is primarily the result of the
    reduction in earned premium, as discussed above.


                                      -7-
<PAGE>   8
       RESULTS OF OPERATIONS, NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998

    In the nine months ended September 30, 1999 and 1998, IPCRe wrote premiums
    of $92.4 million and $106.2 million, respectively, a decrease of 13.0%.
    Written premiums were impacted by the following: rate reductions in the
    period, generally in the range of 10% but as high as 15 to 20% in some
    cases; program restructuring where ceding companies have consolidated; and
    the non-renewal of some contracts by IPCRe, where the rates and/or terms
    were considered unsatisfactory. In addition, IPCRe has not renewed, or has
    declined to write, multi-year treaties from April 1, 1999 onwards, unless
    the proposed rates are significantly higher than current levels. The
    reductions in written premiums resulting from the above, which totaled
    approximately $22.8 million, were partially offset by increased signings and
    additional business from existing clients, and selectively written business
    for new clients, which totaled approximately $5.1 million. Premiums were
    also boosted by reinstatement premiums of $6.5 million from increased claim
    activity, compared to $3.1 million for the nine months ended September 30,
    1998. Net premiums written were also impacted by IPCRe's cessions to its
    proportional reinsurance facility, which had the effect of reducing written
    premiums by a further $3.6 million. Net premiums earned in the nine months
    ended September 30, 1999 were $72.0 million, compared to $89.6 million in
    the same period in 1998, a decrease of 19.7%. This reduction is primarily
    due to the decrease in net premiums written, in the current year, as well as
    in the latter half of 1998.

    Net investment income was $22.6 million in the nine months ended September
    30, 1999, compared to $22.4 million for the nine months ended September 30,
    1998, an increase of 0.6%. The increase arises from the average amount of
    invested assets being 5.8% higher, offset by decreases in short term
    interest rates.

    There were net realized gains from the sales of investments in the nine
    months ended September 30, 1999 of $30.5 million, compared to $4.0 million
    in the corresponding period of 1998. Net realized gains and losses fluctuate
    from period to period, depending on the individual securities sold, as
    recommended by IPCRe's investment advisor. Portfolio restructuring in the
    first quarter of 1999, followed by the sale and subsequent repurchase of all
    of the securities in IPCRe's equity portfolio during the second quarter,
    resulted in the realization of significant gains which had accumulated since
    the original purchases.

    In the nine months ended September 30, 1999, incurred losses were $82.0
    million, compared to $33.4 million in the corresponding period of 1998.
    Claim activity in the nine months ended September 30, 1999 included the
    Rouge Industries steel mill explosion in Michigan, losses from crop hail
    damage during 1998, storms which took place in Australia and Ireland in late
    December 1998, the hailstorm in Sydney, Australia, tornadoes which struck
    Oklahoma, Tennessee and Texas in May of this year, Hurricane Floyd, the
    earthquake which struck Turkey, as well as some development from Cat.# 51
    (the May 1998 hailstorm which struck Minnesota), Hurricanes Georges and
    Mitch, Typhoon Vicki and the cyclone which struck India. IPC's loss and loss
    expense ratio was 113.9% in the first nine months of 1999 compared to 37.2%
    in the corresponding period of 1998.

    Acquisition costs incurred were $10.2 million for the nine months ended
    September 30, 1999, compared to $12.2 million in the same period of 1998.
    The reduction is reflective of the decrease in net earned premiums. General
    and administrative expenses were $6.9 million in the nine months ended
    September 30, 1999, compared to the $7.9 million incurred in the
    corresponding period in 1998. The decrease is primarily due to a reduction
    in fees based on earned premiums, which are paid under the administrative
    services agreement, a decrease in the accrual of certain deferred benefits
    for executives, and reduced insurance costs and professional fees. IPC's
    expense ratio was 23.8% for the nine months ended September 30, 1999
    compared to 22.5% for the corresponding period in 1998.

    The following table summarizes the loss and loss expense ratio, expense
    ratio and combined ratio for the nine months ended September 30, 1999 and
    1998, respectively:

<TABLE>
<CAPTION>
                                             Nine months ended September 30,
                                             -------------------------------
                                              1999                     1998
                                             ------                   ------
<S>                                          <C>                      <C>
    Loss & loss expense ratio                113.9%                    37.2%
    Expense ratio                             23.8%                    22.5%
    Combined ratio                           137.7%                    59.7%
</TABLE>

    Net income for the nine months ended September 30, 1999 was $25.9 million,
    compared to $62.0 million for the corresponding period in 1998, a decrease
    of 58.2%. Excluding the effects of net realized gains and losses arising
    from the sale of investments, the net operating loss for the first nine
    months of 1999 was $(4.5) million, compared to net operating income of $58.0
    million for the corresponding period of 1998, a decrease of 107.8%. The
    decrease is a result of the significant increase in claims, and reductions
    in net earned premiums, as discussed above.


                                      -8-
<PAGE>   9
    LIQUIDITY AND CAPITAL RESOURCES

    The Company is a holding company that conducts no reinsurance operations of
    its own. The Company's cash flows are limited to distributions from IPCRe
    and Services by way of loans or dividends. The dividends that IPCRe may pay
    are limited under Bermuda legislation and IPCRe's revolving credit facility.
    The Bermuda Insurance Act of 1978, and subsequent amendments thereto
    ("Bermuda regulations"), 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, 1999 was approximately
    $141 million.

    IPCRe's sources of funds consist of premiums written, investment income and
    proceeds from sales and redemptions of investments. Cash is used primarily
    to pay losses and loss adjustment expenses, premiums retroceded, brokerage
    commissions, excise taxes, general and administrative expenses and
    dividends. The potential for a large catastrophe means that unpredictable
    and substantial payments may need to be made within relatively short periods
    of time. Hence the Company's cash flows may fluctuate significantly from
    period to period.

    Cash flows from operating activities in the nine months ended September 30,
    1999 were $32.6 million compared to $80.9 million in the corresponding
    period in 1998, which represents a decrease of 59.7%. The decrease arises
    primarily from the reduction in operating income, as noted above.

    Net cash outflows from investing activities in the first nine months of 1999
    were $(2.2) million. In addition, a total of $23.8 million were paid to
    shareholders in dividends on March 25, June 24 and September 23, 1999,
    respectively. Cash and cash equivalents increased by $6.6 million in the
    nine months, resulting in a balance of $27.6 million at September 30, 1999.
    At September 30, 1999, 51.9% of IPC's fixed maturity portfolio (based on
    market value) was held in cash, United States Treasury notes and in
    securities rated AAA, and 34.4% was held in securities rated AA. The average
    modified duration of IPC's fixed maturity portfolio was 2.2 years. IPC's
    portfolio does not contain any investments in real estate or mortgage loans.
    Management believes that IPCRe's $300 million revolving credit facility, and
    the relatively high quality of its investment portfolio, provides sufficient
    liquidity to meet IPC's cash demands.

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

    YEAR 2000 READINESS DISCLOSURE STATEMENT

        Certain computer programs use only the last two digits to refer to a
    year. Therefore, these computer programs do not properly recognize the
    century in which a particular year occurs and may, for example, treat "00"
    as being the year 1900, instead of the year 2000. These computer programs
    may be used in software applications or may be embedded in microprocessors
    used to control the operation of computer hardware and other devices. If not
    corrected, many computer programs could fail or create erroneous results.
    This problem is commonly known as the "Y2K", "Millennium Bug" and/or "Year
    2000" issue and systems and equipment which use computer programs and
    microprocessors that do not have this problem are generally referred to as
    being "compliant".

        IPC's Critical Systems

        IPC believes that all of its critical systems, including its hardware
    and software, are currently compliant. IPC's critical systems include those
    used in assessing underwriting risk, recording policy details, processing
    related premium and claims transactions and communicating with brokers who
    produce the business. Following minor remedial work to some computer
    hardware and the upgrading of some software, a test programme was undertaken
    on these systems and the results were completed by September 30, 1998 and
    subjected to audit by technology consultants provided through American
    International Group, Inc. ("AIG"). Accordingly, while there can be no
    assurance that these systems will be free from failure, IPC believes that
    any failure will not result in material adverse impact on IPC's results of
    operations or financial condition.

        Third Party Dependencies

        IPC's Y2K compliance programme also includes a review of third party
    dependencies, which includes non-information technology areas, including
    office equipment, power supply, telecommunications and building
    infrastructure.

         Administrative Services

         IPC's day-to-day administrative services, including the provision of
    non-information technology, are performed by American International Company,
    Limited ("AICL"), a wholly-owned subsidiary of AIG, pursuant


                                      -9-
<PAGE>   10
    to an administrative services agreement (the "Administrative Services
    Agreement"). Services and facilities provided pursuant to the Administrative
    Services Agreement include legal and accounting services, office space in
    Bermuda, the use of office equipment, electronic data services and other
    services required by IPC in the ordinary course of business. IPC and AICL
    have worked jointly to ensure compliance of systems used in the processing
    of IPC's business and this work was completed by September 30, 1998.

         In addition, AICL is monitoring progress towards compliance by
    significant third parties from whom IPC receives non-information technology
    services, such as the suppliers of electric power and local and
    long-distance telephone services. In the event that such third parties are
    unable to achieve compliance, AICL has developed contingency plans, for
    example, independent power supply, which are designed to mitigate the
    effects of a failure on the part of such third parties to supply services.

         Accordingly, while there can be no assurance that these systems will be
    free from failure, IPC believes that any failure will not result in material
    adverse impact on IPC's results of operations or financial condition.

         Other Third Parties

         As of September 30, 1999, IPC has contacted other third parties, such
    as brokers and depository institutions, with whom IPC currently has a
    relationship which, in IPC's judgement, involves material Y2K compliance
    concerns, in order to establish their degree of compliance and/or their
    plans to become compliant prior to December 31, 1999. Among other things,
    IPC's brokers collect, and maintain records of, premiums and claims and, as
    such, make payments into IPC's depository institutions. Responses to IPC's
    requests for compliance status indicate that, where this is not yet the
    case, such third parties are planning to achieve Y2K compliance prior to
    December 31, 1999. IPC continues to periodically request updates of
    compliance status from third parties. In the event that such third parties
    are unable to achieve compliance, IPC has developed contingency plans, which
    are designed to mitigate the effects of failure of such third party systems
    on IPC's business operations, by the creation of hard-copy records and
    backed-up PC records. There can be no assurance that the systems of such
    third parties will be timely converted, that IPC's contingency plans will
    prove to be adequate or that failure of such systems in any event would not
    have a material adverse effect on IPC's results of operations or financial
    condition.

         Costs

         The costs incurred by IPC up to September 30, 1999 in effecting Y2K
    compliance of its own systems are nominal and it is not anticipated that the
    future costs of IPC's Year 2000 evaluation, compliance implementation and
    contingency planning will be material. In addition, AICL is responsible for
    the cost of compliance of the administrative services it supplies to IPC.
    Therefore, assuming compliance has been achieved as aforesaid, it is not
    anticipated that the total costs incurred in relation to the Y2K issue will
    have a material adverse effect on IPC's results of operations.

         Policy Risks

         The extent of worldwide property damage (whether insured or uninsured)
    which could result from failure or malfunction of non-compliant systems is
    not known. Many of the insurance markets around the world in which IPC's
    clients operate have not established a clear position on whether to include
    or exclude Y2K risk in policies available in those markets. Although Y2K
    exclusion clauses have been produced by some individual companies and some
    insurance and reinsurance industry associations, to date they have not been
    applied in a uniform manner. The Y2K issue is unique. Therefore,
    notwithstanding the presence or absence of an exclusion of the Y2K risk in
    insurance or reinsurance policies, in the general absence of legal
    precedent, courts may determine, on a case-by-case basis, that coverage
    exists for property damage resulting from failure or malfunction of
    non-compliant systems.

         IPCRe is principally an excess of loss property catastrophe reinsurer.
    Currently, IPCRe's reinsurance policies do not specifically include Y2K as a
    covered event and IPCRe currently does not intend to provide specific
    coverage for losses arising from Y2K events. However, in the future, it is
    possible that market forces could oblige IPCRe to provide such coverage, or
    that certain of IPCRe's policies could be held to cover such losses. IPC
    carefully monitors the terms of policy renewals with respect to the extent
    that they oblige IPC to provide such coverage and, with respect to renewals
    on or after January 1, 1999, declined certain business. Regardless of
    IPCRe's intent not to provide specific coverage for losses arising from Y2K
    events and IPCRe's actions to avoid obligations to provide such coverage, if
    IPCRe is obliged to provide such coverage or its policies are held to cover
    such losses, there can be no assurance that such losses would not have a
    material adverse effect on IPCRe's future results of operations or financial
    condition, commencing in the year 2000.


                                      -10-
<PAGE>   11
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

    IPCRe commissioned an independent Value at Risk analysis, to estimate the
maximum potential loss of fair value for each segment of market risk, as of
December 31, 1998. There have been no material changes to the composition of
IPCRe's investment portfolio during the nine months to September 30, 1999. The
equity element of the total portfolio was reduced from approximately 15% to 12%
in February, 1999, and the proceeds were used to purchase money-market
instruments. In addition, there were no material changes to interest rates or
foreign exchange rates in the nine months. In addition, to reduce the potential
impact of exchange rate movements between the U.S. dollar and Australian dollar,
on the liabilities arising out of the Sydney hailstorm, IPCRe has purchased
U.S.$20 million of Australian dollars in May and June of 1999. At September
30, 1999 IPCRe held U.S.$9.7 million in Australian dollar time deposits.

    Accordingly, management does not believe that there has been any material
change to the amount of market risk to which the Company is exposed, in the
period from January 1 to September 30, 1999.

    NOTE ON FORWARD-LOOKING STATEMENTS

    This report contains certain forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Exchange Act. Forward-looking statements are statements other than historical
information or statements of current condition. Some forward-looking statements
may be identified by use of terms such as "believes", "anticipates", "intends",
or "expects". These forward-looking statements relate to Year 2000 issues,
including policy coverage issues and the effect of the future adoption of
accounting standards. In light of the risks and uncertainties inherent in all
forward-looking statements, the inclusion of such statements in this report
should not be considered as a representation by the Company or any other person
that the objectives or plans of the Company will be achieved. Numerous factors
could cause the Company's actual results to differ materially from those in the
forward-looking statements, including unanticipated consequences of the
Millennium bug with respect to IPC or third parties.


                                      -11-
<PAGE>   12
PART II - OTHER INFORMATION

    ITEM 1.           LEGAL PROCEEDINGS

                NONE

    ITEM 2.           CHANGES IN SECURITIES AND USE OF PROCEEDS

                NONE

    ITEM 3.           DEFAULTS UPON SENIOR SECURITIES

                NONE

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

                NONE

    ITEM 5.           OTHER INFORMATION

       NONE


    ITEM 6.           EXHIBITS AND REPORTS ON FORM 8-K

                      (a) Exhibits

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

       EXHIBIT
       NUMBER         DESCRIPTION

         3.1          Memorandum of Association of the Company
         3.2          Amended and Restated Bye-laws of the Company
         3.3          Form of Memorandum of Increase of Share Capital
        10.1   *      Amended and Restated IPC Holdings, Ltd. Deferred
                        Compensation Plan
        10.2   *      Form of Limited Waiver to Credit Agreement between IPCRe
                        Limited, Bank One N.A.and other Lenders named therein
        11.1   *      Reconciliation of the numerator and denominator for basic
                        and diluted net income per common share ("EPS").
        27.1   *      Financial Data Schedule

               *   Filed herewith

       (b) Reports on Form 8-K

                      NONE


                                      -12-
<PAGE>   13
                               IPC HOLDINGS, LTD.

                                   SIGNATURES



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



                                     IPC HOLDINGS, LTD.
                                     ------------------
                                        (REGISTRANT)




     DATE  NOVEMBER 10, 1999         /s/ John P. Dowling
           -----------------         ----------------------------------
                                     JOHN P. DOWLING
                                     PRESIDENT AND CHIEF EXECUTIVE OFFICER




     DATE  NOVEMBER 10, 1999         /s/ John R. Weale
           -----------------         ----------------------------------
                                     JOHN R. WEALE
                                     VICE PRESIDENT AND CHIEF FINANCIAL OFFICER


                                      -13-
<PAGE>   14
                                  EXHIBIT INDEX


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

       EXHIBIT
       NUMBER         DESCRIPTION
       -------        -----------
         3.1          Memorandum of Association of the Company
         3.2          Amended and Restated Bye-laws of the Company
         3.3          Form of Memorandum of Increase of Share Capital
        10.1  *       Amended and Restated IPC Holdings, Ltd. Deferred
                        Compensation Plan
        10.2  *       Form of Limited Waiver to Credit Agreement between IPCRe
                        Limited, Bank One N.A. and other Lenders named therein
        11.1  *       Reconciliation of the numerator and denominator for basic
                        and diluted net income per common share ("EPS")
        27.1  *       Financial Data Schedule

         *     Filed herewith


                                      -14-