Montpelier Re Reports $148 Million Q3 Net Income; $359 Million 9-Months

November 5, 2009

Bermuda-based Montpelier Re Holdings Ltd. reported net income of $148 million ($1.68 per share) for the third quarter and $359 million ($4.11 per share) for the nine months ended September 30, 2009.

Operating income, which excludes investment gains/losses, was $62 million ($0.71 per share) for the third quarter and $178 million ($2.03 per share) for the nine months ended September 30, 2009.

Realized and unrealized gains on investments and foreign exchange, which are included in net income, were $87 million for the quarter and $176 million year-to-date.

“Fully converted book value per share was $19.78 at September 30, 2009, an increase of 9.6 percent for the quarter and 25.5 percent from December 31, 2008, inclusive of dividends,” said the bulletin. “The Company repurchased 1,178,097 shares in September at an average price of $16.26 per share and a further 1,460,904 shares in October at an average price per share of $17.11.”

Montpelier Re’s combined ratio was 66.3 percent for the third quarter and 67.1 percent for the nine months ended September 30, 2009. “The third quarter 2009 loss ratio totaled 29.0 percent, which includes 13.5 points ($19.4 million) in favorable releases from prior years’ loss reserves,” the bulletin added.

President and CEO Chris Harris commented: “We produced an excellent quarterly result with a low loss ratio and solid investment results leading to 9.6 percent growth in our fully converted book value per share. Net written premiums grew by 16 percent for the quarter due to strong property catastrophe rate levels and increased opportunities in our Lloyds’ and U.S. operations.

“In light of the strong growth in our capital base since the beginning of year, we resumed our share repurchase program in September and have deployed a portion of that increased capital in a manner that is accretive to our book value per share.”

The complete earnings report, additional information and access to Wednesday’s earnings conference call may be obtained on the Company’s web site at: www.montpelierre.bm.

Source: Montpelier Re

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