Montpelier Re’s business slipped somewhat this quarter as the company reported operating profits of $36 million, down from $49.6 million in the second quarter of 2013.
The reinsurer’s combined ratio was also hit hard, deteriorating to 76.7 percent from 69 percent in the prior year quarter.
Its gross written premiums (GWP) decreased marginally to $239 million in the quarter, from $242.7 in the same period of the year before. However, its net premiums written increased to $204.9 million, from $197.8 million in the second quarter of 2013.
Christopher Harris, president and CEO, says: “Despite a high frequency of smaller industry loss events, we produced solid underwriting profitability with a 77 percent combined ratio, reflecting strong contributions from our growing Montpelier at Lloyd’s and Collateralized Re segments, as well as the benefit of prior period development.”
He concludes: “We believe our nimble underwriting approach, flexible capital base, and excellent client relationships continue to position us well in the current environment.”
Montpelier Re, Q2, results, Christopher Harris