Montpelier Reports 2014 Q2 Financial Results
Bermuda-based Montpelier Re Holdings Ltd., a leading provider of short-tail reinsurance and other specialty lines, today reported its financial results for the quarter ended June 30, 2014.
Fully converted book value per common share was $31.74, an increase of 2.8% from March 31, 2014 and an increase of 8.7% from December 31, 2013, each after taking into account common share dividends declared during the period.
Operating income for the quarter was $36 million, or $0.76 per common share. Net income was $37 million, or $0.78 per common share. Net income for the quarter included $12 million of realized and unrealized investment gains and $11 million of net foreign exchange losses.
Net premiums written in the second quarter were flat year-over-year, when adjusting for reinstatements, with increased writings within the Company’s Montpelier at Lloyd’s and Collateralized Reinsurance segments, offsetting a decrease in writings at Montpelier Bermuda.
The loss ratio for the quarter was 41%, which includes $24 million of net losses from known catastrophe events in the quarter, offset by $38 million of favorable prior year loss reserve movements. The combined ratio was 77% for the quarter.
Net investment income was $12 million for the quarter, and the total return on the investment portfolio was 0.9%.
Christopher Harris, President and Chief Executive Officer, said, “Despite a high frequency of smaller industry loss events, we produced solid underwriting profitability with a 77% combined ratio, reflecting strong contributions from our growing Montpelier at Lloyd’s and Collateralized Re segments, as well as the benefit of prior period development. We believe our nimble underwriting approach, flexible capital base, and excellent client relationships continue to position us well in the current environment.”
During the second quarter of 2014, the Company repurchased a total of 863,911 common shares at an average price of $30.18 per share. During the third quarter of 2014, the Company has thus far repurchased an additional 343,800 shares at an average price per share of $31.85.
As of June 30, 2014, the Company’s shareholders’ equity was $1,668 million, and its total capital was $2,067 million.
