Montpelier Re Quarterly Profit Up Slightly
NU Online News Service, April 29, 3:33 p.m. EDT? Montpelier Re Holdings, a Bermuda-based reinsurance company, reported net profit of $109 million for its first quarter, representing a 5 percent rise from the 2003 first quarter, when the company reported $103.8 million in profit.[@@]
The reinsurer's gross premiums written for the first quarter were $333.2 million, compared with $366.6 million reported one year earlier. Net premiums written for the quarter were reported at $297.3 million, lower than $332.3 million reported one year earlier.
The net premiums earned for the quarter were reported at $190.8 million, up slightly from $184.7 million reported one year earlier, while net investment income was reported at $15.3 million, up from $11.7 million during the year-ago period.
The company's combined ratio was 50.1 for the quarter, compared to 52.8 during the first quarter in 2003. Continuing lines of business saw 14.4 percent premium growth.
Commenting on the results, Montpelier Re Chief Executive Anthony Taylor observed that the company had a successful January renewal season.
"The range and quality of business we have seen continues to improve as the reputation of our underwriting and risk-management skills develops, leading to further growth in our core lines of business," Mr. Taylor said.
He added that the financial improvements were offset somewhat by "small overall decline" in rates on the business.
Mr. Taylor also noted that the April renewal season saw a continued healthy showing of business. "Overall in the lines of business we write, at the layers we tend to participate in, rates remain favorable," he said.
He forecast that notwithstanding modest reductions in certain classes, "we remain confident that we will experience an increase in gross written premium in 2004 over 2003 despite the planned nonrenewal of the Lloyd's QQS business."
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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