Montpelier Re Holdings Releases Q1 Earnings
Montpelier Re Holdings Ltd., a Bermuda-based provider of short-tail reinsurance and other specialty lines, reported its financial results for the quarter ended March 31, 2013 on Wednesday [Apr. 24].
Fully converted book value per common share was $27.49, an increase of 5.6 percent from December 31, 2012, after taking into account common share dividends declared during the quarter.
Net premiums written increased by 3% in the quarter to $226 million. The loss ratio was 32 percent, which includes $18 million of favorable prior year loss reserve movements, and the combined ratio was 62 percent.
Net investment income was $16 million, and the total return on the investment portfolio was 0.7 percent.
Operating income available to the company’s common shareholders was $1.18 per common share [$66 million], representing a return on common equity of 4.4 percent. Net income available to the company’s common shareholders was $1.65 per common share [$92 million]. The net impact of realized and unrealised gains from investments and foreign exchange, which is included in net income but is not a component of operating income, was $26 million.
Christopher Harris, President and Chief Executive Officer, said, “We kicked off 2013 with a very successful first quarter. Our strong underwriting results, solid investment performance, and active capital management all contributed to 5.6 percent growth in fully converted book value per common share. Both our London and Bermuda underwriting platforms produced strong profitability, and we are well positioned to navigate through a more complex operating environment, maintaining our sharp focus on delivering returns to shareholders.”
During the first quarter of 2013, the company repurchased a total of 1,494,022 common shares at an average price of $24.60 per share [$37 million]. During the second quarter of 2013 to date, the Company has repurchased a further 600,000 shares at an average price of $25.75 [$15 million].
As of March 31, 2013, shareholders’ equity was $1,709 million and total capital was $2,109 million.
