An increase in Montpelier Re’s premiums written out of Lloyd’s and collateralised reinsurance offset a decrease in the business it wrote out of Bermuda, the company revealed in its third quarter results.
The reinsurer’s net premiums written in the third quarter were up 13 percent year-over-year, when adjusting for reinstatements, with increased writings within the company’s Montpelier at Lloyd’s and collateralised reinsurance segments offsetting a decrease in writings at Montpelier Bermuda, the company said.
Overall in its results, Montpelier Re’s profits fell in the third quarter of 2014 while its gross written premiums increased.
The reinsurer’s net profit fell to $42.3 million in the quarter compared with $57.9 million in the third quarter of 2013. Its gross written premiums, however, increased to $128.9 million in the quarter compared with $114.5 million a year earlier.
Its operating income for the quarter was $40 million compared with $71.5 million a year earlier. Its combined ratio also deteriorated sharply to 74 percent compared with 53.9 percent in the third quarter of 2013.
Its book value per common share was $32.27, an increase of 2.3 percent from June 30, 2014 and an increase of 11.2 percent from December 31, 2013.
“Our underwriting teams executed well in a competitive market environment during the third quarter, driving solid profitability with a 74 percent combined ratio. We are well positioned to navigate a challenging market by building on our strengths as a long-term partner for our investors and clients,” said Christopher Harris, president and chief executive of Montpelier Re.
Montpelier Re, Third Quarter 2014 Results, Bermuda, Christopher Harris