Montpelier Re Q3 2013 Financial Results
Bermuda-based Montpelier Re Holdings Ltd. reported its financial results for the quarter ended September 30, 2013.
Fully converted book value per common share was $28.06, an increase of 4.2% from June 30, 2013 and 8.7% from December 31, 2012, after taking into account common share dividends declared during the period.
Operating income for the quarter was $72 million, or $1.38 per common share, representing a quarterly return on common equity of 5.0%. Net income was $53 million, or $1.02 per common share. The net impact of realized and unrealized losses from investments and foreign exchange, which is included in net income, was $19 million for the quarter.
Net premiums written and earned in the quarter were consistent with those of a year ago. The loss ratio for the quarter was 18%, which includes $36 million of favorable prior year loss reserve movements. The combined ratio was 54% for the quarter.
Net investment income was $17 million and the total return on the investment portfolio was 0.6% for the quarter.
Christopher Harris, President and Chief Executive Officer, commented, “Our focused business strategy and solid underwriting execution contributed to a strong third quarter. Montpelier Re Bermuda, Montpelier at Lloyd’s, and Blue Capital combined to deliver strong profitability with a 5.0% quarterly operating ROE and a 54% quarterly combined ratio. We also continued to strengthen the quality of risk analytic services we can bring to clients with the successful launch of the Montpelier Risk Institute.”
