Montpelier Re Reports A First-Quarter Drop

NU Online News Service, April 28, 3:19 p.m.EDT?Montpelier Re Holdings reported a high frequency oflarge property losses drove first-quarter net income down by $34.5million to $74.5 million.[@@]

The Bermuda-based reinsurer also saw its net premiums writtenfall for the quarter, declining to $279.4 million from $297.3million one year ago. Net investment income rose slightly to $21.4million from $15.3 million.

The reinsurer suffered significantly higher loss andloss-adjustment expenses of $79.5 million for the quarter,increasing from $46.2 million. The quarterly combined ratio was aprofitable 73.2, but a deterioration from 50.1 one year ago.

Anthony Taylor, chief executive officer of Montpelier Re,observed that while property catastrophe losses were reasonablylight, "the market experienced a high frequency of large propertyrisk excess events."

"Losses from the storms in the third quarter of 2004 continuedto develop, notably in the case of the Japanese typhoons. Given theincreased level of market loss activity, we are pleased to havegenerated a combined ratio of 73 percent."