Competition also a factor behind $23.3m loss
Montpelier Re posted a second-quarter loss of $23.3m because of catastrophe losses and stiff competition.
In the same period last year, the firm posted a profit of $65.5m.
Montpelier’s net insurance and reinsurance premiums were $197.8m for the second quarter, down from $210.8m for the same period last year.
The combined ratio was 69% for Q2 2013, compared with 76.5% in the prior year quarter.
The company had an operating income of $0.93 a share for the second quarter, equivalent to a 13.6% operating annualised return on equity. In Q2 2012, this figure was $0.74 a share.
Montpelier Re president and chief executive Christopher Harris said: “In a quarter marked by several industry catastrophe loss events and increasingly competitive market conditions, our insurance teams turned in another strong operating performance.
“Both our Bermuda and London platforms produced solid profitability and executed well in the important mid-year renewal cycle. We are well positioned to continue executing our focused underwriting and capital management strategy in the second half of 2013.”
For the first half of the year, the firm’s net written insurance and reinsurance premiums were $423.8m, down from $430.8m for the same period in 2012.
The firm posted a combined operating ratio of 65.5% for the half year, improved from 67.2% for H1 2012.