Montpelier Re Has $78.2M 3Q Loss
NU Online News Service, Oct. 29, 11:12 a.m. EDT?Montpelier Re Holdings Ltd. posted a net loss of $78.2 million for the third quarter–a big negative swing from the $91 million profit from the year-ago period–reflecting the huge losses the company suffered from the four hurricanes that devastated parts of the Southeastern United States this past quarter.[@@]
Montpelier Re chief financial officer Kip Oberting noted that the expected financial impact of the recent storms is within the previously announced range of $185 million to $235 million.
" Montpelier was tested by an unusually intense wind season this year and came through it with greater confidence than ever that our business plan is a sound one," said Montpelier Re chief executive Anthony Taylor.
He assured that since Montpelier Re has a disciplined focus on multi-line property reinsurance, he expects his company to produce strong returns in the majority of quarters which don't contain major loss events like this year's unprecedented hurricane season.
"We anticipate that this approach is likely to produce superior returns for our shareholders over the cycle," Mr. Taylor said.
For the third quarter, the reinsurer posted net premiums written of $170.9 million, up from $147.7 million during the year-ago period. Net investment income for the third quarter was $18 million, up from $12.3 million one year ago.
On the other hand, Montpelier Re loss and loss-adjustment expenses for the third quarter were $263.4 million, significantly higher than $35.1 million in the 2003 third quarter.
The combined ratio for the third quarter was reported at 145.2. In comparison, the combined ratio for the 2003 third quarter was a stellar 49.2.
Montpelier Re Holdings focuses on facultative coverage for commercial property and property catastrophe reinsurance, protecting against earthquakes, hurricanes, floods, fires and storms. Montpelier Re also writes marine, aviation, casualty and personal accident risks.
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