Montpelier Releases Financial Results

February 10, 2012

Montpelier Re Holdings Ltd., a leading Bermuda provider of short-tail reinsurance and other specialty lines, today [Feb.10] reported financial results for the fourth quarter and the year ended December 31, 2011.

Fully converted book value per common share was $22.71, an increase of 2.5% for the fourth quarter and a decrease of 6.1% for the full year, after taking into account common share dividends declared during the periods.

The operating loss for the quarter was $0.27 per common share [$16 million] and net income was $0.40 per common share [$25 million], each expressed after preferred share dividends. The net income for the quarter includes $30 million of net realized and unrealized gains from investments and foreign exchange and an $11 million net gain from the sale of Montpelier US Insurance Company [MUSIC].

The operating loss for the full year was $2.50 per common share [$154 million] and the net loss was $2.01 per common share [$124 million]). The net loss for the year includes $19 million of net realised and unrealised gains from investments and foreign exchange and the aforementioned gain from the sale of MUSIC.

The loss ratio for the quarter was 81% which includes the net financial impact of $66 million of catastrophe losses, including $40 million from the Thailand floods and $26 million from other catastrophe events occurring during 2011, including those occurring in the fourth quarter.

These losses were partially offset by $18 million of favorable prior year loss reserve development. The combined ratio was 117% for the quarter. The loss ratio for the year was 98% and the combined ratio was 131%.

Net investment income was $17 million for the fourth quarter and $69 million for the full year. The total return on the investment portfolio was 1.6% for the quarter and 3.0% for the full year.

Christopher Harris, President and Chief Executive Officer, said “We made important strategic progress in 2011 with the sale of a non-core business and the expansion of our property catastrophe underwriting partnerships.

“These initiatives enhanced our capital flexibility, improved our competitive positioning, and contributed to a successful January renewal season. While industry challenges still remain, I am confident that Montpelier will continue to build on its strengths in 2012 and capitalise on the increasingly positive prospects for many of our business lines.”

As of December 31, 2011, shareholders’ equity was $1.55 billion and total capital was $1.88 billion. During the fourth quarter, the Company repurchased 1,184,700 common shares at an average price of $17.11 per share, leaving $145 million authorized under its current share repurchase program.

Please refer to Montpelier’s December 31, 2011 Financial Supplement for more detailed financial information, which is posted on the Company’s website at www.montpelierre.bm .

Montpelier, through its operating subsidiaries, is a premier provider of global property and casualty reinsurance and insurance products.

Read More About

Category: All, Business

.