Bermuda-based Montpelier Re Holdings Ltd. reported operating income of $0.86 per share, $60.7 million total, and comprehensive income of $1.28 per share, $90.8 million total, slightly higher than the net income figure due to the inclusion of other income items.
The report noted that “fully converted book value per share was $23.76, an increase of 6.9 percent for the quarter and 13.7 percent for the year to date, including dividends.”
It also explained that the “net impact of realized and unrealized gains from investments and foreign exchange, which is included in comprehensive income, was $30 million. Net written premiums grew by 13 percent compared to the third quarter of 2009 with growth in the Company’s Lloyd’s and US operations more than offsetting a decrease in the Bermuda property catastrophe book.
“The loss ratio was 33 percent, which includes 8 points ($12 million) of loss resulting from the New Zealand earthquake and 5 points ($9 million) from large risk losses. The quarter benefited from 14 points ($21 million) in favorable releases from prior years’ loss reserves. The combined ratio was 69 percent versus 66 percent a year ago.
“Net investment income was down 7 percent from a year ago at $19 million. The total return on the investment portfolio was 1.8 percent for the quarter and 4.9 percent year to date.
President and CEO Christopher Harris commented: “We produced another strong quarter in the face of challenging market conditions with solid underwriting results, steady investment performance and active capital management all contributing to the 6.9 percent growth in fully converted book value per share. While the September earthquake in New Zealand was a large industry event, our loss was well within our internal expectations and reflects our relative underweighting in this region of the world.
“We continue to be pleased with the development of Syndicate 5151, both in terms of underwriting results and the strong market support it has attracted. Looking ahead to 2011, our group capital base is at the high end of the range required to support our underwriting plans, and share repurchases remain a compelling option as part of our ongoing cycle management strategy.”
Montpelier Re also said that it had “repurchased 2,634,000 shares during the third quarter at an average price of $15.90. The Company repurchased a further 1,573,000 shares in October and November at an average price of $17.81. During the year to date period, the Company repurchased a total of 13,652,400 shares at an average price of $17.96.”
The Company will conduct a conference call, including a question and answer period, on Wednesday, November 3, 2010 at 8:00 a.m. Eastern Time. The presentation will be available via a live audio webcast accessible on the Company’s web site or by dialing 1-877-317-6789 (toll free) or 1-412-317-6789 (international). A telephone replay of the conference call will be available through November 11, 2010 by dialing 1-877-344-7529 (toll-free) or 1-412-317-0088 (international) and entering the passcode 444417. The complete earnings report may also be obtained on the web site.
Source: Montpelier Re