Montpelier Re Holdings Ltd . ( MRH ) reported
first-quarter 2013 operating income of $1.18 per share, better than
the Zacks Consensus Estimate of 89 cents. However, earnings were
4.1% lower than $1.23 per share in the year-ago quarter.ASPEN INS HLDGS (AHL): Free Stock Analysis
ReportMONTPELIER RE (MRH): Free Stock Analysis ReportEVEREST RE LTD (RE): Free Stock Analysis ReportRLI CORP (RLI): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment
Including net realized investment gains of $9.1 million, net
unrealized investment losses of $9.8 million, net gains from
investment-related derivative instruments of $6.8 million, net
foreign exchange gains of $21.1 million and net losses from foreign
exchange-related derivative instruments of $1.1 million, Montpelier
reported net income of $92.1 million or $1.65 per share in the
first quarter. It compared unfavorably with net income of $107.1
million or $1.74 per share in the prior-year quarter.
Quarterly Operational Update
Montpelier's gross premiums written increased 0.6% year over year.
Net insurance and reinsurance premiums earned inched down 0.5% year
over year to $159.7 million.
Underwriting income declined 8.9% year over year to $60.1
Net investment income of Montpelier came in at $16.4 million, down
6.8% from $17.6 million in the year-ago quarter.
The loss ratio was 32% in the reported quarter. Combined ratio
deteriorated 350 basis points from the year-ago quarter to
Montpelier exited the first quarter of 2013 with cash and cash
equivalents of $3.2 million, down 2.4% from the end of 2012.
At the end of the first quarter, total debt was $399.1 million,
flat with the 2012 end level.
Book value per share as of Mar 31, 2013, came in at $27.49, up
13.1% year over year.
Share Repurchase and Dividend Update
Montpelier spent $37 million to buyback 1.494 million common
shares in the first quarter. Following the end of the first quarter
to date, the company has already spent $15 million to repurchase
0.6 million shares.
Performance of Other Property and Casualty
RLI Corporation ( RLI ) reported
first-quarter 2013 operating earnings of $1.04 per share. The
result lagged the Zacks Consensus Estimate of $1.06 by 1.89% but
surpassed the year-ago level of 96 cents by 8.3%. The
year-over-year improvement came on the back of better underwriting
results at Casualty and Surety.
Everest Re Group Ltd . ( RE ) reported the
first-quarter operating earnings of $5.88 per share, substantially
beating the Zacks Consensus Estimate of $4.32 per share. Earnings
were also up 31.3% year over year.
Aspen Insurance Holdings Limited 's ( AHL ) first-quarter
2013 operating earnings per share of $1.06 per share were a penny
ahead of the Zacks Consensus Estimate and 20.5% above the year-ago
quarter earnings of 88 cents a share.
Montpelier is well positioned to deliver robust numbers going
forward, given its increased exposure in the property catastrophe
lines of business. In addition, focusing on underwriting
operations, augmenting capital flexibility and strengthening its
competitive position augur well going forward. It also expanded
underwriting partnerships. Moreover, the company benefits from tax
exemptions in Bermuda.
Montpelier currently carries a Zacks Rank #1 (Strong Buy).