Montpelier Re's Profit Up Sharply

Montpelier Re's Profit Up Sharply

NU Online News Service, July 28, 10:05 a.m. EDT?Montpelier Re Holdings, a Bermuda-based reinsurance company, said its second-quarter net profit increased more than threefold to $112.5 million from $33.1 million it reported one year ago.

The company also noted that its gross premiums written for the second quarter was $ 194 million, up from $136.3 million recorded a year ago. Net premiums written similarly rose, to $186.6 million from $131.8 million posted in the 2002 second quarter.

"Montpelier has followed a strong first quarter in 2003 with an even stronger second quarter," said Anthony Taylor, chief executive officer for Montpelier Re. "Our overall book of business continued to grow, we were able to develop our portfolio of risks to an even greater degree, and we have diversified further by taking advantage of opportunities in areas in which we have competitive strengths," Mr. Taylor added.

Montpelier Re, founded by White Mountains Insurance and U.K.-based insurer Benfield Group, was one of the new Bermuda-based reinsurers that got started in the wake of 9/11 terror attacks.

Commenting on Montpelier Re's latest financial results, Chief Financial Officer Tom Kemp said his company is now becoming increasingly recognized as one of the key lead markets. "The innovative reputation of our underwriting team is growing, and our modeling and capital allocation capabilities are among the most sophisticated in the industry," Mr. Kemp said.

Montpelier Re specializes in facultative coverage for commercial property-property catastrophe reinsurance, offering coverage for damages against earthquakes, hurricanes, floods, fires and storms. The company also underwrites marine, aviation, casualty and personal accident risks.