Montpelier Reports $90 Million Q1 Net Income; Operating $72 Million

May 1, 2014

Bermuda-based Montpelier Re Holdings Ltd. Reported operating income for the first quarter of 2014 at $72 million, or $1.48 per common share, representing a quarterly return on common equity of 4.8 percent.

Net income was $90 million, or $1.84 per common share. The figure includes $23 million of realized and unrealized investment gains and $5 million of net foreign exchange losses.

Net premiums written in the first quarter were up 5 percent in comparison to a year ago at $273.5 million, “primarily as a result of increased writings within our Montpelier at Lloyd’s and Collateralized Reinsurance segments,” said the report.

Net premiums earned were down 2 percent from Q1 2013 at $156.8 million, from $159.7 million.

The Company’s loss ratio for the quarter was 18 percent, which included $35 million of favorable prior year loss reserve movements. The combined ratio was 50 percent for the quarter.

Net investment income was $13 million for the quarter and the total return on the investment portfolio was 1.1 percent.

President and CEO Christopher Harris commented: “We had an excellent first quarter with underwriting, investments and capital management all contributing to book value per common share growth of 5.8 percent for the period. Each of our platforms delivered strong profitability as we continue to focus on executing our specialist underwriting approach.”

The bulletin also noted that during the first quarter of 2014, the “Company repurchased a total of 2,492,685 common shares at an average price of $28.22 per share. During the second quarter of 2014, the Company has thus far repurchased an additional 571,000 shares, at an average price per share of $29.70.

“As of March 31, 2014, the Company’s shareholders’ equity was $1.657 billion, and its total capital was $2.056 billion.”

Source: Montpelier Re Holdings

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