Bermuda-based Montpelier Re Holdings reported net income of $9.9 million ($0.13 per share) for the first quarter of 2010, and an operating loss of $23 million (-$0.31 per share). The reinsurer posted a $94 million loss, net of reinstatement premiums, from the Chilean earthquake, and an estimated $3 million loss from European windstorm Xynthia.
“Realized and unrealized gains on investments and foreign exchange, which are included in net income, were $33 million for the quarter,” said the bulletin. “Fully converted book value per share was $21.36 at March 31, 2010, an increase of 1.5 percent for the quarter including dividends.”
The loss ratio for the quarter was 91 percent, which, Montpelier Re said, “includes 15 points ($24 million) in favorable releases from prior years’ loss reserves. The combined ratio was 123 percent for the quarter compared with 74 percent in the first quarter of 2009.”
However, net written premiums “grew by 10 percent for the quarter compared to the first quarter of 2009, or 5 percent excluding the impact of reinstatement premiums.”
President and CEO Christopher Harris commented: “In a quarter marked by high levels of catastrophe activity, most notably the Chilean earthquake, we were pleased to report a small profit and growth in book value per share of 1.5 percent.
“We remain one of the leading players in the property catastrophe reinsurance industry, and the losses we experienced in Chile this quarter were well within our expectations for an event of this magnitude. The overall positive result for the quarter highlights both the balance in our global catastrophe portfolio and the growing importance of our other portfolio segments.”
The full report, additional information and a replay of the earnings conference call held Wednesday, April 28, may be obtained on the Company’s website at www.montpelierre.bm.
Source: Montpelier Re
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