Montpelier Re Reports Higher Income
NU Online News Service, Oct. 29, 4 :17 p.m. EST?Montpelier Re Holdings, a Bermuda-based reinsurance company, posted a $91 million profit for its third quarter, compared to $26.6 million reported during the year-ago period.
The reinsurer's net premiums written fell during the third quarter, to $147.7 million from $172.8 million one year ago, while net premiums earned rose, to $162.9 million from $106.4 posted last year. The company's loss and loss adjustment expenses also improved, falling to $35.1 million from $69 million recorded year ago.
"Given the high level of loss events to hit the industry in the quarter, we are very happy to be reporting such positive results. I believe that the loss ratios we have experienced are driven in large part by Montpelier's strong underwriting focus together with our sophisticated risk management capabilities," said Tom Kemp, chief financial officer at Montpelier
Montpelier's chief executive officer Anthony Taylor also noted that his company's core lines of business "continue to perform strongly, with excellent growth and consistently low loss ratios."
"The planned expansion of our specialty and casualty writings is proceeding for 2004 and is attracting strong support from our key producers," he said.
Mr. Taylor added that for the first nine months of 2003, gross premiums written for the core property and specialty lines grew 75 percent compared to one year ago, while their net premiums earned rose 186 percent. "I expect that we will achieve further growth in these lines in 2004," he forecast.
"The market is witnessing rating downgrades and continuing deterioration on back-year reserves which, when coupled with changes to industry standard modeling software, put pressure on the availability of quality capacity in the reinsurance market as we move into the renewal season," Mr. Taylor 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.
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