Montpelier Re Holdings Ltd. (NYSE: MRH), (“Montpelier” or the “Company”), a leading provider of short-tail reinsurance and other specialty lines, today reported its financial results for the quarter ended June 30, 2013.
Fully converted book value per common share was $27.03, a decrease of 1.3% from March 31, 2013 and an increase of 4.3% from December 31, 2012, after taking into account common share dividends declared during the period.
Operating income for the quarter was $0.93 per share ($50 million), representing a quarterly return on common equity of 3.4%. The net loss to the Company’s common shareholders was $0.52 per common share ($27 million). The net impact of realized and unrealized losses from investments and foreign exchange, which is included in the net loss, was $77 million for the quarter.
The loss ratio for the quarter was 34%, which includes $26 million of net losses from known catastrophe events in the quarter, offset by $48 million of favorable prior year loss reserve movements. The combined ratio was 69% for the quarter.Net investment income was $17 million and the total return on the investment portfolio was -1.8% for the quarter, –1.1% year-to-date. Christopher Harris, President and Chief Executive Officer, commented, “In a quarter marked by several industry catastrophe loss events and increasingly competitive market conditions, our insurance teams turned in another strong operating performance. Both our Bermuda and London platforms produced solid profitability and executed well in the important mid-year renewal cycle. We are well positioned to continue executing our focused underwriting and capital management strategy in the second half of 2013.” During the second quarter of 2013, the Company repurchased a total of 3,033,773 shares at an average price of $25.35 per share ($77 million). During the third quarter of 2013 to date, the Company has repurchased an additional 285,452 shares, at an average price of $25.72 ($7 million).