Montpelier Re Posts First Quarter Results
Montpelier Re Holdings Ltd., a leading Bermuda-based provider of short-tail reinsurance and other specialty lines, today [Apr. 28] reported financial results for the first quarter ended March 31, 2011.
Fully converted book value per share was $23.10, a decrease of 5.7 percent from December 31, 2010, after taking into account dividends declared during the quarter, reflecting a period of significant natural catastrophes.
The operating loss for the quarter was $1.90 per share ($119 million) and the comprehensive loss was $1.66 per share ($104 million). The net impact of realized and unrealized gains from investments and foreign exchange, which is included in comprehensive income, was $15 million for the quarter.
The first quarter results include $200 million of catastrophe losses net of reinsurance and reinstatement premiums resulting from the March Tohoku earthquake in Japan ($130 million), the February New Zealand earthquake ($65 million) and the January Australian floods ($5 million).
The loss ratio for the first quarter was 150 percent, which includes the $200 million of current year catastrophe losses partially offset by $34 million of favorable prior year loss reserve movements. The combined ratio was 179 percent for the quarter.
Net investment income for the first quarter of 2011 was $18 million, down from $19 million reported a year ago and up from the $16 million last quarter. The total return on the investment portfolio was 1.2 percent for the quarter.
Christopher Harris, president and CEO, said, “The industry faced a series of catastrophe losses during the quarter, and we were pleased our portfolio performed as we expected for events of this magnitude.”
Mr. Harris continued, “As planned, we reduced our underwriting portfolio during the quarter in response to a challenging market environment. However, based on the accumulation of worldwide catastrophe losses over the past five quarters and early signs of increased demand from clients, we are more optimistic about pricing prospects for the remainder of this year and into 2012, particularly within the property catastrophe segment.”
“Our concentration in short-tail lines of business and our strong capital base positions us well to provide additional capacity to meet the needs of our clients in what we expect will be an improving market,” Mr. Harris concluded.
During the first quarter of 2011 the Company repurchased a total of 2,353,252 shares at an average price of $20.16 per share. As at March 31, 2011, shareholders’ equity was $1,472 million and total capital was $1,800 million.
