Montpelier Re reported 2010 second-quarter net income down 57 percent, resulting from a sharp drop in net unrealized investment gains compared to the 2009 second quarter, but the company's operating income grew compared to a year ago.
The Hamilton, Bermuda-based reinsurer said 2010 second-quarter net income was $69.9 million compared to $159 million in the 2009 second quarter.
The company suffered a $4.1 million net unrealized investment loss in the quarter compared to net unrealized investment gains of $85.6 million a year ago.
Net written premiums increased 7 percent in the quarter to $196 million, compared to 2009 second-quarter net written premiums of $183.9 million, and operating income increased to $72.5 million from $68.4 million.
The 2010 second-quarter combined ratio dropped two points to 60.
In a statement, Christopher Harris, Montpelier Re president and chief executive officer, said the company produced a strong quarter with solid underwriting results. He added, "The midyear renewal season was challenging, and we reduced some catastrophe exposures accordingly. However, we also identified some attractive growth opportunities in our U.S. and U.K. platforms, most notably within our marine book."
In a conference call, Mr. Harris said the 2010 second quarter was "relatively quiet" with respect to losses, aside from a $20 million impact from the Deepwater Horizon oil rig explosion.
