Montpelier achieved a combined ratio of 39 percent during the fourth quarter of 2013 thanks to a benign catastrophe year and in spite of headwinds associated with rising competition.
Net income and gross premiums written were largely consistent with those in 2012, although the reinsurer was able to drive book value per common share up by 14.3 percent in 2013.
Montpelier was able to achieve an enviable operating ROE of 18.8 percent during 2013, while its IPO of its subsidiary Blue Capital has further strengthened its franchise.
In the face of tough market conditions, the reinsurer repurchased approximately 2 million common shares during the fourth quarter of 2013 and the first quarter of 2014.
Such a move follow a common trend within the Bermuda market, which has seen a flurry of share repurchasing in recent months as companies put their capital to work to drive shareholder value.
Commenting on their results, Chris Harris CEO of Montpelier Re says: “Despite competitive market conditions during the January renewals, we continued to succedd in achieving preferred signings and expanding our product mix.”
“With our strong balance sheet and specialist underwriting approach, we believe we are positioned to perform well across market cycles”.
Montpelier Re, annual results, Bermuda, reinsurance