Healthy Q1 for Montpelier as reserve releases boost combined ratio

Bermuda-based Montpelier Re reported operating income of $72.2 million, or $1.48 per common share, and a healthy combined ratio of 50.4 percent in Q1, of which $35 million of prior year loss reserves helped to obtain an 18 percent loss ratio.

The company’s net income rose to $90 million, or $1.84 per common share, which included $23 million of realised and unrealised investment gains and $5 million of net foreign exchange losses.

Meanwhile, net written premiums were up by 5 percent to $237.1 million due to increased writings within the Montpelier at Lloyd’s and collateralised reinsurance segments. Underwriting income rose to $77.8 million.

“We had an excellent first quarter with underwriting, investments and capital management all contributing to book value per common share growth of 5.8 percent for the period. Each of our platforms delivered strong profitability as we continue to focus on executing our specialist underwriting approach,” said Christopher Harris, president and chief executive officer of Montpelier Re.

Net investment income was $13 million for the quarter and the total return on the investment portfolio was 1.1 percent.

As of March 31, 2014, the Company’s shareholders’ equity was $1,657 million, and its total capital was $2,056 million.