Montpelier Re 1st Q: $10 Million Net Income

April 28, 2010

Bermuda based Montpelier Re Holdings Ltd reported a $10 million net income for the first quarter of 2010, after the company saw a loss of $94 million associated with the Chilean earthquake. This compares to a $52.3 million gain in last year’s first quarter.

Fully converted book value per share was $21.36 at March 31, 2010, an increase of 1.5% for the quarter including dividends.

The Company reported net income of $10 million ($0.13 per share) for the first quarter of 2010, and an operating loss of $23 million (-$0.31 per share). Realized and unrealized gains on investments and foreign exchange, which are included in net income, were $33 million for the quarter.

The loss ratio for the quarter was 91%, which includes 15 points ($24 million) in favorable releases from prior years’ loss reserves. The combined ratio was 123% for the quarter compared with 74% in the first quarter of 2009.

The Chilean earthquake resulted in a loss of $94 million, net of $10 million of reinstatement premiums. The loss from Windstorm Xynthia in Europe was $3 million. Montpelier had predicted a loss of osses of $75 million to $100 million for the Chile earthquake in March.

Net written premiums grew by 10% for the quarter compared to the first quarter of 2009, or 5% excluding the impact of reinstatement premiums.

Christopher Harris, President and Chief Executive Officer said:

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%. 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.

Montpelier repurchased 9,195,400 shares during the first quarter at an average price of $18.65, consistent with the Company’s focus on improving its capital and operating efficiency. Montpelier’s total capital of $1.9 billion at March 31, 2010 is strong relative to its underwriting plans for 2010.

An a separate note, Dick Nenaber has been named CEO of Montpelier US Insurance Company. Mr. Nenaber has 33 years of industry experience. He is replacing Stanley Kott, CEO of Montpelier US, who is stepping down from that role, but will remain a special advisor for the next twelve months.

Other 2010 first quarter results of Bermuda based companies here.

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