Hamilton, Bermuda's Montpelier Re Holdings reports asecond-quarter net income loss of $23.2 million.

A year ago, during the same period, Montpelier Re turned in aprofit of $65.5 million.

The short-tail reinsurer and specialty insurer says it booked anet loss of $77 million in realized and unrealized losses frominvestments and foreign exchange in the second quarter.

The company also says it absorbed $26 million in losses fromcatastrophes during the second quarter—offset by $48 million inreserve releases.

Despite the net income loss, CEO Christopher Harris says, “In aquarter marked by several industry catastrophe loss events andincreasingly competitive market conditions, our insurance teamsturned in another strong operating performance.”

Second-quarter underwriting income increased 24.6 percent to$43.1 million. The combined ratio for the same period was 69,compared to 76.5 a year ago.

For the first six months of the year, net income, compared tolast year, is down about 58.3 percent to $73.4 million.