Bermuda-based Montpelier Re posted growth in profits and gross written premiums despite a contraction in its Bermuda hub.
The Bermudian reinsurer’s profits hit $248 million in the year ended December 31, 2014, compared with $210.6 million in 2013.
In Montpelier Bermuda, net written premiums fell to $314.3 million in 2013, compared with $353.6 million in 2013. This was driven by a decrease in property catastrophe treaty reinsurance to $165.8 million in 2014, compared with $213.2 million in 2013.Its gross written premiums grew to $740.3 million in 2014, compared with $706 million in 2013.
However, this was partially offset by strong growth in its Lloyd’s segment and collateralised reinsurance. The Lloyd’s segment posted net written premiums of $253.3 million for 2014, compared with $212.2 million for 2013. Its collateralised reinsurance segment posted net written premiums of $83.4 million for 2014, compared with $36.8 million for 2013.
Its combined ratio deteriorated 9 percentage points to 65.6 percent, compared with 56.1 percent for 2013.
Christopher Harris, president and chief executive officer, said: “The fourth quarter marked a strong end to a successful year for Montpelier. All operating segments delivered strong profitability, driving an increase in book value per share of 15 percent for the year. Our underwriting teams executed well, and we continued to see steady growth in capital under management at Blue Capital, which now stands at $790 million.
“Based on the January renewals, we expect our net written premiums for the first quarter of 2015 to be flat versus the prior year, with planned growth in individual risk and other specialty lines offsetting the impact of targeted reductions in property catastrophe.”
Bermuda, Montpelier Re, Lloyd's, Reinsurance, Christopher Harris