NU Online News Service, Oct. 27, 1:47 p.m.EDT

Two Bermuda-based insurers say catastrophes hurt theirthird-quarter earnings, with Everest Re reporting a 64 percent dropin net income and Montpelier Re posting a net loss.

Hamilton, Bermuda-based Everest Re says third-quarter net incomedropped by $111 million to $63 million. Total revenues were down 13percent, or $153 million, to $1.02 billion.

For the first nine months of this year, Everest Re reports a netloss of $122 million compared to net income of $308 million for theprior year. Revenues are down 1 percent, or $39 million, to $3.4billion.

For the quarter, catastrophe losses were $119 million, comparedto $89 million for the prior year’s third quarter. The lossesinclude $35 million for Hurricane Irene. The remainder isattributable to increased loss estimates on first-quarter eventsrelated to the earthquakes in Japan and New Zealand.

During a conference call with financial analysts, Joseph V.Taranto, chairman and chief executive officer, calls the results“solid,” especially considering the catastrophes and poorinvestment results.

The company is getting rate increases, he says, especially inproperty catastrophe, where rates for exposures without loss areexpected to increase 5 percent and risks with losses “are facingsome meaningful rate increases.”

Montpelier Re, also based in Hamilton, reports a third-quarternet loss of $66 million, compared to net income of $90 million forthe same period last year. The company reports net insurance andreinsurance premiums written of $122 million, up close to 2percent, or $2 million. The company’s combined ratio for the periodrose 52.1 points to 121.5.

For the first nine months of this year, Montpelier Re reported anet loss of $142 million, compared to net income of $167 millionfor the prior year. The combined ratio during that period jumped50.7 points to 135.5.

The company says catastrophe losses in the third quarter were$60 million, including $30 million from Hurricane Irene, Texaswildfires and other U.S. events.

Christopher Harris, president and CEO of Montpelier, addressinganalysts, calls the third quarter a dynamic period, but admits thatit was “disappointing to report a loss.”

He says the company is well positioned to support business goingforward and take part in a hardening cycle.

Michael S. Paquette, the company’s chief financial officer notesthe company is selling Montpelier U.S. Insurance Company, its U.S.excess and surplus lines insurance business representing $55million in premium, to Selective Insurance Group. The transactionis expected to close in the fourth quarter of this year.