Montpelier Re Reports Third Quarter Financial Results
Montpelier Re Holdings Ltd. (NYSE: MRH), (“Montpelier” or the “Company”), a leading provider of short-tail reinsurance and other specialty lines, today reported financial results for the third quarter ended September 30, 2012.
Fully converted tangible book value per common share was $26.61, an increase of 5.3% for the quarter and 18.6% year-to-date, including common share dividends declared during the periods.
Operating income for the quarter was $0.85 per common share ($49 million) and net income was $1.25 per common share ($72 million), each expressed after preferred share dividends. The net impact of realized and unrealized gains from investments and foreign exchange, which is included in net income, was $23 million for the quarter.
Net premiums written decreased by 17% in the quarter, but were down 6% when adjusting for reinstatement premiums ($2 million) and the sale of MUSIC ($11 million). Net premiums earned decreased by 2% in the quarter, but were up 5% when adjusting for reinstatement premiums ($2 million) and the sale of MUSIC ($7 million).
The loss ratio for the quarter was 37%, which includes a $16 million loss estimate for a number of smaller catastrophe events in the quarter, including crop losses resulting from the severe drought in the United States, offset by $16 million of favorable prior year loss reserve movements. The combined ratio was 73% for the quarter. Net investment income was $16 million, and the total return on the investment portfolio was $47 million or 1.6% for the quarter. Christopher Harris, President and Chief Executive Officer, said, “I am pleased with our year-to-date operating performance. We have generated 18.6% growth in fully converted book value per share, and both our Bermuda and Lloyd’s underwriting platforms have delivered strong profitability. Our successful $300 million senior debt refinancing earlier this month further increases our capital flexibility and positions us well as we head into the 2013 renewal season.”Select the service that is right for you!
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