Montpelier Reports 2014 Q3 Financial Results
Bermuda-based Montpelier Re Holdings Ltd. reported its financial results for the quarter ended September 30, 2014.
Fully converted book value per common share was $32.27, an increase of 2.3% from June 30, 2014 and an increase of 11.2% from December 31, 2013, each after taking into account common share dividends declared during the periods.
Operating income for the quarter was $40 million, or $0.86 per common share. Net income was $35 million, or $0.75 per common share. Net income for the quarter included $16 million of net foreign exchange gains and $21 million of realized and unrealized investment losses.
Net premiums written in the third quarter were up 13% 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. Net premiums earned in the third quarter were up 7% on the same basis.
The loss ratio for the quarter was 38%, which includes $20 million of net losses from June 2014 catastrophe events, offset by $37 million of favorable prior year loss reserve movements. The combined ratio was 74% for the quarter.
Net investment income was $12 million for the quarter, and the total return on the investment portfolio was -0.3%.
Christopher Harris, President and Chief Executive Officer, said, “Our underwriting teams executed well in a competitive market environment during the third quarter, driving solid profitability with a 74% combined ratio. We are well positioned to navigate a challenging market by building on our strengths as a long-term partner for our investors and clients.”
During the third quarter of 2014, the Company repurchased a total of 1,848,726 common shares at an average price of $31.12 per share. The Company’s common shares outstanding at September 30, 2014 were 44.3 million, down more than 10% from year-end. During the fourth quarter of 2014, the Company has repurchased an additional 939,395 common shares.
