Montpelier Releases 3rd Quarter 2014 Financial Results

Montpelier Re Holdings has reported its financial results for the quarter ended Sept. 30.

In its release on Oct. 27, the Company said fully converted book value per common share was $32.27, an increase of 2.3 percent from June 30, and an increase of 11.2 percent from Dec. 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 percent 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 percent on the same basis.

The loss ratio for the quarter was 38 percent, 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 percent for the quarter.

Net investment income was $12 million for the quarter, and the total return on the investment portfolio was -0.3 percent.

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 percent 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, were 44.3 million, down more than 10 percent from year-end.

During the fourth quarter of 2014, the Company has repurchased an additional 939,395 common shares.

Montpelier, through its operating subsidiaries, is a global provider of global property and casualty reinsurance and insurance products.

More information and complete details:

www.montpelierre.bm

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