Montpelier Re in record year

Bermuda short-tail and specialty lines reinsurer Montpelier Re reported strong fourth quarter and record full year financial results with an operating income of $271m for the year, up from $93.1m in 2008.

GWP was up from $620.1m to £634.9m, underwriting income was up from $47.5m to $216.9m and the combined ratio fell from 91.0% to 62.2%.

Financial highlights (2008 in brackets)

• Gross premiums written $634.9m ($620.1m)
• Reinsurance premiums ceded -$32.7 (-$78.9m)
• Net premiums written $602.2m ($541.2m)
• Gross premiums earned $613.5m ($607.0
• Earned reinsurance premiums ceded $-40.3m (-$78.5m)
• Net premiums earned $573.2m ($528.5m)
• Underwriting income $216.9m ($47.5m)
• Net investment income $81.0m ($86.4m)
• Net realized investment $30.8m (-$71.7m)
• Operating income £270.8m ($93.1m)
• Net income/loss $463.5 (-$145.5m)
• Combined ratio 62.2% (91.0%)

Christopher Harris, president and chief executive, said: "The fourth quarter rounds off a record year for the Company. For the full year, we produced a 35% growth in fully converted book value per share, our primary measure of delivering value to our shareholders, driven by terrific underwriting results and an 11% return on our investment portfolio.

“While this is a very satisfying result, we will look to build on this success in 2010 by remaining focused on optimizing our use of catastrophe capacity and improving our capital and operating efficiency as the London and US platforms mature."

"2009 was a year of several milestones for the company including Syndicate 5151 generating a full year profit for the first time. We also established a significant marine capability in London and launched Paladin, a UK based specialty MGA platform, both of which will drive growth into 2010 and beyond."