<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: JUNE 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 August 10, 1999, was 25,033,932.

                                 TOTAL PAGES 16
                        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
                                                             June 30, 1999   December 31, 1998
                                                             -------------   -----------------
                                                              (unaudited)        (audited)
<S>                                                          <C>             <C>
ASSETS:

Fixed maturity investments:
   Available for sale, at fair market value (Amortized
   cost 1999: $497,706; 1998: $478,806)                        $ 489,214         $ 484,863
Equity investments, available for sale (Cost 1999:
$77,345; 1998: $69,268)                                           80,810            94,152
Cash and cash equivalents                                         33,822            20,966
Reinsurance balances receivable (Related party 1999:
$6,966; 1998: $3,653)                                             52,695            20,747
Funds held by reinsured companies                                      0             2,434
Deferred premiums ceded                                            1,381                 0
Loss reserves recoverable                                          3,740                 0
Accrued investment income                                          9,765            14,752
Deferred acquisition costs                                         5,653             2,048
Prepaid expenses and other assets                                  4,102             3,129
                                                               ---------         ---------
    TOTAL ASSETS                                               $ 681,182         $ 643,091
                                                               =========         =========

LIABILITIES:

Reserve for losses and loss adjustment expenses                $  91,494         $  52,226
Unearned premiums                                                 48,873            17,602
Reinsurance balances payable (Related party 1999: $167;
1998: $0)                                                          1,669                 0
Deferred commissions                                                  89                 0
Accounts payable and accrued liabilities (Related party
1999: $1,396; 1998: $1,689)                                        6,860             7,311
                                                               ---------         ---------
    TOTAL LIABILITIES                                            148,985            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                                                237,162           234,928
Accumulated other comprehensive income                            (5,048)           30,941
                                                               ---------         ---------
   TOTAL SHAREHOLDERS' EQUITY                                    532,197           565,952
                                                               ---------         ---------

                                                               ---------         ---------
   TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                  $ 681,182         $ 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 June 30,           Six Months ended June 30,
                                                      ------------------------------     ------------------------------
                                                           1999              1998             1999              1998
                                                      ------------      ------------     ------------      ------------
REVENUES:                                              (Unaudited)       (Unaudited)      (Unaudited)       (Unaudited)
<S>                                                   <C>               <C>              <C>               <C>
Gross premiums written                                $     18,384      $     18,398     $     83,699      $     90,571
Premiums ceded                                                (260)                0           (3,099)                0
                                                      ------------      ------------     ------------      ------------
Net written premiums                                        18,124            18,398           80,600            90,571
Change in unearned premium reserve                           8,808            12,866          (29,890)          (30,363)
                                                      ------------      ------------     ------------      ------------
Net premiums earned                                         26,932            31,264           50,710            60,208
Net investment income                                        7,651             7,450           15,064            14,712
Realized gains/(losses), net on investments                 23,633             1,084           30,178             3,688
                                                      ------------      ------------     ------------      ------------
   TOTAL REVENUES                                           58,216            39,798           95,952            78,608
                                                      ============      ============     ============      ============

EXPENSES:

Losses and loss adjustment expenses, net                    49,142            10,332           65,915            14,457
Acquisition costs, net                                       3,631             4,776            7,001             8,036
General and administrative expenses                          2,460             2,327            4,736             4,962
Exchange loss / (gain)                                          70               207              171               205
                                                      ------------      ------------     ------------      ------------
   TOTAL EXPENSES                                           55,303            17,642           77,823            27,660
                                                      ------------      ------------     ------------      ------------

                                                      ------------      ------------     ------------      ------------
NET INCOME                                            $      2,913      $     22,156     $     18,129      $     50,948
                                                      ============      ============     ============      ============


Basic net income per common share                     $       0.12      $       0.89     $       0.72      $       2.04
Diluted net income per common share                   $       0.11      $       0.83     $       0.70      $       1.91

Weighted average number of common share - basic         25,033,932        25,033,932       25,033,932        25,028,489
Weighted average number of common share - diluted       25,990,215        26,702,589       26,081,456        26,700,869
</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>
                                                          Six months ended June 30,
                                                          --------------------------
                                                              1999           1998
                                                          -----------    -----------
                                                          (unaudited)    (unaudited)
<S>                                                        <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:

Net income                                                 $  18,129      $  50,948
Adjustments to reconcile net income to cash provided
    by operating activities:
    Amortization of investment premium, net                       38            503
    Realized (gains) losses, net on investments              (30,178)        (3,688)
    Changes in, net:
       Reinsurance balances receivable                       (31,948)       (27,574)
       Funds held by reinsured companies                       2,434         (2,409)
       Deferred premiums ceded                                (1,381)             0
       Loss reserves recoverable                              (3,740)             0
       Accrued investment income                               4,987          4,335
       Deferred acquisition costs                             (3,605)        (4,065)
       Prepaid expenses and other assets                        (973)          (781)
       Reserve for losses and loss adjustment expenses        39,268          3,224
       Unearned premiums                                      31,271         30,363
       Reinsurance balances payable                            1,669              0
       Deferred commissions                                       89              0
       Accounts payable and accrued liabilities                 (451)         2,700
                                                           ---------      ---------
                                                              25,609         53,556
                                                           ---------      ---------

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of fixed maturity investments                      (195,566)      (155,809)
Proceeds from sale of fixed maturity investments             147,438        115,365
Proceeds from maturities of fixed maturity investments        29,500          7,000
Purchases of equity investments                              (79,141)        (1,146)
Proceeds from sale of equity investments                     100,912         15,773
                                                           ---------      ---------
                                                               3,143        (18,817)
                                                           ---------      ---------

CASH FLOWS FROM FINANCING ACTIVITIES:

Additional share capital                                           0            300
Cash dividends paid to shareholders                          (15,896)       (35,924)
                                                           ---------      ---------
                                                             (15,896)       (35,624)
                                                           ---------      ---------
Net increase (decrease) in cash and cash equivalents          12,856           (885)
Cash and cash equivalents, beginning of period                20,966          9,746
                                                           ---------      ---------
Cash and cash equivalents, end of period                   $  33,822      $   8,861
                                                           =========      =========
</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 June 30,      Six Months ended June 30,
                                                       ----------------------      -------------------------
                                                         1999          1998          1999             1998
                                                       --------      --------      --------         --------
<S>                                                    <C>           <C>           <C>              <C>
Net income                                             $  2,913      $ 22,156      $ 18,129         $ 50,948
                                                       --------      --------      --------         --------
Other comprehensive income:
    Holding (losses ) gains, net on investments
  during period                                          (3,798)        2,904        (5,811)          15,150
    Reclassification adjustment for (gains) losses
  included in net income                                (23,633)       (1,084)      (30,178)          (3,688)
                                                       --------      --------      --------         --------
                                                        (27,431)        1,820       (35,989)          11,462
                                                       --------      --------      --------         --------
Comprehensive income                                   $(24,518)     $ 23,976      $(17,860)        $ 62,410
                                                       ========      ========      ========         ========
</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 six month
    periods ended June 30, 1999 and 1998, respectively, the balance sheet at
    June 30, 1999 and the cash flows for the six month periods ended June 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 on September 24, 1999 to shareholders of record on September
    8, 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 JUNE 30, 1999 AND 1998

    In the quarters ended June 30, 1999 and 1998, IPCRe wrote premiums of $18.4
    million and $18.4 million, respectively. Written premiums were impacted by
    rate reductions in the period, generally in the range of 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 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 $4.8 million, were partially offset by increased
    signings and additional business from existing clients, and selectively
    written business for new clients, which totaled approximately $0.7 million.
    Premiums were also boosted by reinstatement premiums of $4.1 million from
    increased claim activity. Net premiums written were also impacted by further
    cessions to IPCRe's proportional reinsurance facility, which had the effect
    of reducing premiums by a further $0.3 million. Net premiums earned in the
    three months ended June 30, 1999 were $26.9 million, compared to $31.3
    million in the same period in 1998, a decrease of 13.9%. Earned premiums are
    reduced because less premiums were written in the latter half of 1998, which
    are being earned in 1999, than in the corresponding period in 1997. This has
    been partially offset by the impact of reinstatement premiums, which are
    fully earned when written.

    Net investment income was $7.7 million in the quarter ended June 30, 1999,
    compared to $7.5 million for the quarter ended June 30, 1998, an increase of
    2.7%. The increase arises from the average amount of invested assets being
    9.2% higher, offset by decreases in short term interest rates.

    There was a net realized gain from the sale of investments in the quarter
    ended June 30, 1999 of $23.6 million, compared to $1.1 million in the second
    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. All of the securities in IPCRe's equity
    portfolio were sold and subsequently repurchased in May, realizing the
    gains which had accumulated since the original purchases.

    In the three months ended June 30, 1999, incurred losses were $49.1 million,
    compared to $10.3 million in the corresponding period of 1998. Claim
    activity in the three months ended June 30, 1999 included a hailstorm in
    Sydney, Australia which was the cause of the largest insured loss in
    Australian history, and the tornadoes which struck Oklahoma, Tennessee and
    Texas in early May. These two events accounted for approximately $45 million
    of incurred losses in the second quarter of 1999. IPC's loss and loss
    expense ratio (the ratio of losses and loss adjustment expenses to premiums
    earned) was 182.5% in the second quarter of 1999, compared to 33.1% 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
    $3.6 million for the quarter ended June 30, 1999, compared to $4.8 million
    in the same period of 1998, a decrease of 24.0%. The reduction is due
    primarily to the decrease in earned premiums, as well as the impact of
    increased claim activity on no-claims bonuses and profit commissions
    accrued. General and administrative expenses were $2.5 million in the
    quarter ended June 30, 1999, compared to the $2.3 million incurred in the
    corresponding period in 1998. The increase is due primarily to the fees for
    IPCRe's $300 million standby credit facility, which became effective July 1,
    1998. IPC's expense ratio (the ratio of acquisition costs plus general and
    administrative expenses to premiums earned) was 22.6% for the quarter ended
    June 30, 1999 compared to 22.7% 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 June 30, 1999 and 1998, respectively:

<TABLE>
<CAPTION>
                                                           Quarter ended June 30,
                                                           ----------------------
                                                            1999             1998
                                                           -----             ----
<S>                                                        <C>               <C>
Loss & loss expense ratio                                  182.5%            33.1%
Expense ratio                                               22.6%            22.7%
Combined ratio                                             205.1%            55.8%
</TABLE>

    Net income for the quarter ended June 30, 1999 was $2.9 million, compared to
    $22.2 million for the corresponding period in 1998, a decrease of 86.9%.
    Excluding the effects of net realized gains and losses arising from the sale
    of investments, the net operating loss for the second quarter of 1999 was
    $(20.7) million, compared to net operating income of $21.1 million for the
    second quarter of 1998, a decrease of 198.3%. The decrease is a result of
    the significant increases in claims, as discussed above.


                                       7
<PAGE>   8
       RESULTS OF OPERATIONS, SIX MONTHS ENDED JUNE 30, 1999 AND 1998

    In the six months ended June 30, 1999 and 1998, IPCRe wrote premiums of
    $83.7 million and $90.6 million, respectively, a decrease of 7.6%. 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 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
    $16.8 million, were partially offset by increased signings and additional
    business from existing clients, and selectively written business for new
    clients, which totaled approximately $4.7 million. Premiums were also
    boosted by reinstatement premiums of $5.5 million from increased claim
    activity. Net premiums written were also impacted by IPCRe's cession to its
    proportional reinsurance facility, which had the effect of reducing written
    premium by a further $3.1 million. Net premiums earned in the six months
    ended June 30, 1999 were $50.7 million, compared to $60.2 million in the
    same period in 1998, a decrease of 15.8%. 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 $15.1 million in the six months ended June 30,
    1999, compared to $14.7 million for the six months ended June 30, 1998, an
    increase of 2.4%. The increase arises from the average amount of invested
    assets being 8.4% higher, offset by decreases in short term interest rates.

    There was a net realized gain from the sale of investments in the six months
    ended June 30, 1999 of $30.2 million, compared to $ 3.7 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 six months ended June 30, 1999, incurred losses were $65.9 million,
    compared to $14.5 million in the corresponding period of 1998. Claim
    activity in the six months ended June 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, and the tornadoes which struck Oklahoma,
    Tennessee and Texas in May of this year, as well as some development from
    Hurricanes Georges and Mitch and Typhoon Vicki. IPC's loss and loss expense
    ratio was 130.0% in the first six months of 1999 compared to 24.0% in the
    corresponding period of 1998.

    Acquisition costs incurred were $7.0 million for the six months ended June
    30, 1999, compared to $8.0 million in the same period of 1998. The reduction
    is reflective of the decrease in net earned premiums. General and
    administrative expenses were $4.7 million in the six months ended June 30,
    1999, compared to the $5.0 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, partially offset by fees paid
    in respect of IPCRe's $300 million standby credit facility. IPC's expense
    ratio was 23.1% for the six months ended June 30, 1999 compared to 21.6% for
    the corresponding period in 1998.

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

<TABLE>
<CAPTION>
                                                          Six months ended June 30,
                                                          -------------------------
                                                            1999             1998
                                                           -----             ----
<S>                                                        <C>               <C>
Loss & loss expense ratio                                  130.0%            24.0%
Expense ratio                                               23.1%            21.6%
Combined ratio                                             153.1%            45.6%
</TABLE>

    Net income for the six months ended June 30, 1999 was $18.1 million,
    compared to $50.9 million for the corresponding period in 1998, a decrease
    of 64.4%. Excluding the effects of net realized gains and losses arising
    from the sale of investments, the net operating loss for the first six
    months of 1999 was $(12.0) million, compared to net operating income of
    $47.3 million for the corresponding period of 1998, a decrease of 125.5%.
    The decrease is a result of the significant increase in claims, 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 six months ended June 30, 1999
    were $25.6 million compared to $53.6 million in the corresponding period in
    1998, which represents a decrease of 52.2%. The decrease arises primarily
    from the reduction in operating income, as noted above.

    Net cash flows derived from investing activities in the first six months of
    1999 were $3.1 million. In addition, a total of $15.9 million were paid to
    shareholders in dividends on March 26, 1999 and June 25, 1999, respectively.
    Cash and cash equivalents increased by $12.9 million in the six months,
    resulting in a balance of $33.8 million at June 30, 1999. At June 30, 1999,
    52.0% of IPC's fixed maturity portfolio (based on market value) was held in
    cash, United States Treasury notes and in securities rated AAA, and 34.7%
    was held in securities rated AA. The average modified duration of IPC's
    fixed maturity portfolio was 2.7 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 to an
    administrative services agreement (the "Administrative Services Agreement").
    Services and facilities provided


                                       9
<PAGE>   10
    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
    successfully 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 June 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 June 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.  QUALITATIVE AND QUANTITATIVE 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 six months to June 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 six 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 June 30, 1999 IPCRe
held U.S.$13.8 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 June 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.

PART II-OTHER INFORMATION

    ITEM 1.  LEGAL PROCEEDINGS

             NONE

    ITEM 2.  CHANGES IN SECURITIES

             NONE

    ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

             NONE

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

             On June 18, 1999, 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). electing the following persons as directors of the Company to
             serve until the 2000 Annual General Meeting -

<TABLE>
<CAPTION>
                                                                FOR               AGAINST      WITHHELD
                                                                ---               -------      --------
<S>                                                     <C>                       <C>          <C>
                 Joseph C.H. Johnson                              15,818,701         -          25,978
                 Russell S. Fisher                                15,818,701         -          25,978
                 John P. Dowling                                  15,818,701         -          25,978
                 Anthony M. Pilling                               15,818,701         -          25,978
                 Dr. the Honourable Clarence James                15,818,701         -          25,978
                 Frank Mutch                                      15,818,235         -          25,978
                 John T. Schmidt                                  15,818,701         -          25,978
</TABLE>


                                       11
<PAGE>   12
             ii). approving the proposal to compensate members of the Executive
             Committee of the Board of Directors for their service -

                      FOR                AGAINST       WITHHELD
                      ---                -------       --------

                    14,965,562           131,230         747,821

             iii). approving an amendment to the IPC Holdings, Ltd. Stock Option
             Plan to increase the number of Common Shares subject thereto and to
             extend the expiration date of the plan -

                      FOR                AGAINST       WITHHELD
                      ---                -------       --------

                    11,608,711         3,546,711         223,761


             iv). appointing Arthur Andersen & Co. as auditors of the Company
             for its fiscal year ending December 31, 1999

                      FOR                AGAINST       WITHHELD
                      ---                -------       --------

                    15,107,918          9,932             726,763

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


    ITEM 5.  OTHER INFORMATION

             NONE


    ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

             (a) Exhibits

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

  EXHIBIT
  NUMBER     DESCRIPTION

    3.1      Memorandum of Association of the Company

    3.2      Amended and Restated Bye-laws of the Company

    3.3      Form of Memorandum of Increase of Share Capital

   11.1 *    Reconciliation of the numerator and denominator for basic and
             diluted net income per common share ("EPS").

   27.1 *    Financial Data Schedule

       * Filed herewith

             (b) Reports on Form 8-K

             NONE


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




       DATE  AUGUST 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

        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