Q2 results also show $63m operating income following share buy-backs
Montpelier Re Holdings has reported operating income of US$63m, or $0.73 per share. This excludes net investment and foreign exchange gains and losses, income taxes and extraordinary gains, for the quarter ended June 30. Comprehensive income was $44m, or $0.51 per share.
Fully converted book value per share was $18.24 as of June 30, 2008, an increase of 3.1% for the quarter and 15.7% for the last 12 months, inclusive of dividends.
The company’s loss ratio for the quarter was 20.5% versus 38.9% for the comparable 2007 period. The current period includes a $15m provision for weather-related losses in the US which was more than offset by $28m of net subrogation collections and favorable releases from prior year reserves. The combined ratio was 57.7% compared to 70.0% in the second quarter of 2007.
Chris Harris, president and CEO, said: "We achieved a strong second quarter operating result, benefiting from low catastrophe losses and favourable prior period reserve development. Notwithstanding the difficult investment markets, the total return on our investment portfolio was a slightly positive 0.1%."
Harris added: “During the second quarter we repurchased 2,341,651 shares at an average price per share of $16.05 and since the quarter-end we have repurchased a further 672,404 shares at an average price of $14.87.”
