Montpelier Re’s fully converted book value per common share was $31.74 for the quarter ending 30 June 2014 (Q2), an increase of 2.8 percent from 31 March 2014 and an increase of 8.7 percent from 31 December 2013.
Operating income for the quarter was $36 million, or $0.76 per common share, while net income stood at $37 million, or $0.78 per common share.
Net income for the quarter included $12 million of realised and unrealised investment gains and $11 million of net foreign exchange losses.
Net premiums written in the Q2 were flat 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 loss ratio for the quarter was 41 percent, which includes $24 million of net losses from known catastrophe events in Q2, offset by $38 million of favourable prior year loss reserve movements.
Net investment income was $12 million for Q2, and the total return on the investment portfolio was 0.9 percent.
The company’s president and CEO, Christopher Harris, said: "Despite a high frequency of smaller industry loss events, we produced solid underwriting profitability with a 77 percent combined ratio.”
“We believe our nimble underwriting approach, flexible capital base and excellent client relationships continue to position us well in the current environment."
During Q2 of 2014, the company repurchased a total of 863,911 common shares at an average price of $30.18 per share. So far in Q3 of 2014, the company has repurchased an additional 343,800 shares at an average price per share of $31.85.
As of 30 June 2014, Montpelier Re shareholders' equity was $1.7 billion and the company’s total capital was $2 billion.
