Bermuda-based Montpelier Re Holdings Ltd. has reported an operating loss of $55 million (or $0.65 per share), which excludes net investment and foreign exchange gains and losses, income taxes and extraordinary gains, for the quarter ended September 30, 2008.
The Company’s net loss for the period was $142.2 million (or $1.69 per share), compared to a profit of $101.3 million in Q3, 2007. Montpelier Re said these losses reflect “$27 million of net realized losses, $48 million of net unrealized losses and $13 million of net foreign exchange losses.”
It also explained that, “as a result of the adoption of FAS 159 in January 2007, it reports virtually all of its net unrealized investment gains and losses, whether considered temporary or permanent, as a component of net income.”
Montpelier Re also reported a net loss of $97.8 million for the first 9 months of 2008, compared to a net profit of $225.3 million for the first 9 months of 2007.
The Company’s operating loss “reflects a combined net financial impact from Hurricanes Gustav and Ike of $130 million, which is in line with our prior announcement,” said the bulletin.
“Fully converted book value per share was $16.61 as of September 30, 2008, a decrease of 8.5 percent for the quarter and 5.8 percent for the year, inclusive of dividend,” the report continued.
“The Company’s loss ratio for the third quarter of 2008 was 119.9 percent versus 26.8 percent for the comparable 2007 period. The current period includes $23 million of favorable releases from prior year loss reserves versus $5 million included in the comparable 2007 period.
President and CEO Chris Harris commented: “The third quarter was a challenging period for our industry with results impacted by both major storms and investment market volatility. While it is disappointing to suffer a loss in any quarter, our Ike and Gustav losses were in line with expectations.
“Additionally, our conservatively positioned investment portfolio held up well in a difficult investing climate. We enter the January renewal season with a strong balance sheet and plan to take full advantage of the attractive opportunities that we believe will increasingly present themselves.”
The full report as well as additional supplemental information and access to the earnings conference call may be obtained on the Company’s web site at: www.montpelierre.bm.
Source: Montpelier Re
Was this article valuable?
Here are more articles you may enjoy.