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Daily Insurance Industry News
Wednesday 18th of July 2018
October 28, 2008

Montpelier Re posts $55m Q3 loss

by David Masters

Story link: Montpelier Re posts $55m Q3 loss

Bermuda-based reinsurer Montpelier Re Holdings Ltd has posted its third quarter results with an operating loss of $55 million, or $0.65 per share.

Net loss for the quarter was $142.2 million, or $1.69 per share, compared to a profit of $101.3 million in the same period last year.

Loss ratio for the quarter was 119.9%, compared to 26.8% in the third quarter of 2007.

Losses from hurricanes Gustav and Ike are expected to total $130 million, whilst an additional $88 million was lost in net realised losses, net unrealised losses, and foreign exchange losses.

Fully converted book value per share on 30th September 2008 was $16.61, down 8.5% on quarter and 5.8% on year, inclusive of dividends.

For the first nine months of 2008 Montpelier has posted a net loss of $97.8 million, compared to a net profit of $225.3 million in the first nine months of 2007.

Chris Harris, president and CEO, said it was a ‘challenging’ quarter with results hit by major storms and volatility in the investment market.

Harris said the loss is ‘disappointing’ but in line with expectations given the severity of hurricanes Gustav and Ike.

He added that the company’s conservative approach to investment ‘held up well’ amidst the turmoil on global financial markets.

Montpelier, said Harris, plans to take ‘full advantage’ of ‘attractive opportunities’ that present themselves as a result of the credit crisis.

 

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