Montpelier Re Posts $49 Million Q4 Net Income; $210.6 Million Full Year

February 10, 2015

Bermuda-based Montpelier Re Holdings Ltd. has reported its financial results for the fourth quarter and year ended December 31, 2014. Net income available to common shareholders was $48.8 million in the fourth quarter of 2014, compared to $73.4 million in Q4, 2013.

For the full year net income available to common shareholders was $210.6 million, compared to $191.2 million in 2013.

Other highlights cited in the earnings report were listed as follows:
– Fully converted book value per common share was $33.19, an increase of 3.5 percent for the fourth quarter and an increase of 15.0 percent for the full year, each computed after taking into account common share dividends declared.
– Operating income for the quarter was $60 million, or $1.34 per common share, representing a quarterly return on common equity of 4.0 percent.
– Net income was $49 million, or $1.09 per common share. The $11 million difference between the Company’s operating income and net income for the quarter represented net realized and unrealized investment and foreign exchange losses.
– Net premiums written in the fourth quarter were up 20 percent year-over-year as increased writings within the Company’s Montpelier at Lloyd’s and Collateralized Reinsurance segments offset a decrease in writings at Montpelier Bermuda.
– Net premiums earned in the fourth quarter were up 9 percent.
– The loss ratio for the quarter of 21 percent benefitted from $42 million of favorable prior year loss reserve movements and included no individually significant losses from catastrophe events.
– The combined ratio was 61 percent for the quarter.
– Net investment income was $10 million and the total return on the investment portfolio was -0.5 percent for the quarter.

President and CEO Christopher Harris commented: “The fourth quarter marked a strong end to a successful year for Montpelier. All operating segments delivered strong profitability, driving an increase in book value per share of 15 percent for the year. Our underwriting teams executed well, and we continued to see steady growth in capital under management at Blue Capital, which now stands at $790 million.

“Based on the January renewals, we expect our net written premiums for the first quarter of 2015 to be flat versus the prior year, with planned growth in Individual Risk and Other Specialty lines offsetting the impact of targeted reductions in Property Catastrophe.”

The earnings bulletin also noted that “during the fourth quarter of 2014, the Company repurchased a total of 1,005,093 common shares at an average price of $31.75 per share.

“As of December 31, 2014, the Company’s total shareholders’ equity was $1.65 billion, and its total capital was $2.05 billion.”

Source: Montpelier Re

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