Claim Losses Drop Montpelier Re Net Income 100%

Hamilton, Bermuda-based reinsurer Montelier Re Holdings Ltd. reported first-quarter net income dropped 100 percent, driven down by catastrophe and other losses.

Net income stood at $300,000, dropping $73 million from the comparative period. Earnings per share fell 76 cents to zero. Net premium written rose 17 percent during the period, or $33 million, to $222 million.

The company's combined ratio jumped 24.1 points to 89.7.

"After eight straight quarters of very solid results, it is a little disappointing to report the reduced result we achieved in quarter one of 2008," said Anthony Taylor, chairman and chief executive officer.

The company had net aggregate claims of $42.8 million of large individual risk losses and $14 million in losses from European windstorm Emma, the company's only catastrophe event in the quarter.

The company said it is building business outside of Bermuda and said premium increased from the United States and United Kingdom while decreasing in Bermuda. The company reported spending $9.4 million on building its U.S. and U.K. business.

Mr. Taylor said the company expects to see greater contribution to its business from the United States in the second quarter.

Christopher L. Harris, president and chief underwriting risk officer, said among some of the market changes expected during the year, Florida is expected to produce more demand for private reinsurance due to a shift in market share from the state's insurer of last resort, Citizens, to private companies. "However, things can change daily in the Florida marketplace, so stay tuned," he said.