Attached files
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8-K - 8-K - MONTPELIER RE HOLDINGS LTD | a10-8812_18k.htm |
EX-10.1 - EX-10.1 - MONTPELIER RE HOLDINGS LTD | a10-8812_1ex10d1.htm |
EX-99.1 - EX-99.1 - MONTPELIER RE HOLDINGS LTD | a10-8812_1ex99d1.htm |
Exhibit 99.2
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Financial Supplement |
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March 31, 2010 |
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contact: telephone: email: |
William Pollett, Treasurer +1(441) 299 7576 bill.pollett@montpelierre.bm |
This report is for informational purposes only. It should be read in conjunction with other documents filed by Montpelier Re Holdings Ltd. pursuant to the Securities Exchange Act of 1934. |
Application of the Safe Harbor of the Private Securities Litigation Reform Act of 1995:
This financial supplement contains forward-looking statements within the meaning of the United States federal securities laws, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, that are not historical facts, including statements about our beliefs and expectations. These statements are based upon current plans, estimates and projections. Forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and various risk factors, many of which are outside our control, that could cause actual results to differ materially from such statements. See Risk Factors contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2009 as filed with the Securities and Exchange Commission. In particular, statements using words such as may, should, estimate, expect, anticipate, intend, believe, predict, potential, or words of similar importance generally involve forward-looking statements.
Important events and uncertainties that could cause our actual results, future dividends or future common share repurchases to differ include, but are not necessarily limited to: market conditions affecting our common share price; the possibility of severe or unanticipated losses from natural or man-made catastrophes, in particular catastrophes that are weather-related; the effectiveness of our loss limitation methods; our dependence on principal employees; our ability to execute the business plans of Syndicate 5151 and MUSIC effectively; increases in our general and administrative expenses due to new business ventures, which expenses may not be recoverable through additional profits; the cyclical nature of the reinsurance business; the levels of new and renewal business achieved; opportunities to increase writings in our core property and specialty reinsurance and insurance lines of business and in specific areas of the casualty reinsurance market and our ability to capitalize on those opportunities; the sensitivity of our business to financial strength ratings established by independent rating agencies; the inherent uncertainty of our risk management process, which is subject to, among other things, industry loss estimates and estimates generated by modeling techniques; the accuracy of estimates reported by cedants and brokers on pro rata contracts and certain excess of loss contracts where a deposit or minimum premium is not specified in the contract; the inherent uncertainties of establishing reserves for loss and loss adjustment expenses, particularly on longer-tail classes of business such as casualty; unanticipated adjustments to premium estimates; changes in the availability, cost or quality of reinsurance or retrocessional coverage; changes in general economic and financial market conditions; changes in and impact of governmental legislation or regulation, including changes in tax laws in the jurisdictions where we conduct business; our ability to assimilate effectively the additional regulatory issues created by our entry into new markets; the amount and timing of reinsurance recoverables and reimbursements we actually receive from our reinsurers; the overall level of competition, and the related demand and supply dynamics in our markets relating to growing capital levels in our industry; declining demand due to increased retentions by cedants and other factors; the impact of terrorist activities on the economy; rating agency policies and practices; unexpected developments concerning the small number of insurance and reinsurance brokers upon whom we rely for a large portion of revenues; our dependence as a holding company upon dividends or distributions from our insurance and reinsurance operating subsidiaries; and the impact of foreign currency fluctuation.
We undertake no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.
MONTPELIER RE HOLDINGS LTD.
Table of Contents
Page |
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1 |
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Consolidated Financial Highlights |
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2 |
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Summary Consolidated Balance Sheets |
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3 |
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Summary Consolidated Income Statements |
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4 |
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Net Premiums Written by Line of Business |
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5 |
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Net Premiums Earned by Line of Business |
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6 |
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Losses Paid to Incurred Analysis |
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7 |
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Losses and Loss Ratios by Line of Business |
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8 |
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Consolidated Investment Portfolio |
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9 |
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Consolidated Investment Detail - Mortgage-Backed and Asset-Backed Securities |
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10 |
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Consolidated Investment Detail - Corporate Bonds |
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11 |
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Reinsurance Recoverable by Rating |
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12 |
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Fully Converted Book Value Per Share |
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13 |
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Basic and Diluted Earnings Per Share |
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14 |
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Financial Measures Disclosures |
MONTPELIER RE HOLDINGS LTD.
Consolidated Financial Highlights (unaudited)
$ in millions, except per share amounts
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Three months ended |
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March 31 |
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2010 |
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2009 |
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% change |
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Highlights |
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Gross premiums written |
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$ |
274.8 |
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$ |
250.6 |
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10 |
% |
Net premiums written |
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$ |
261.9 |
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$ |
237.8 |
|
10 |
% |
Net premiums earned |
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$ |
158.5 |
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$ |
133.4 |
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19 |
% |
Net investment income |
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$ |
18.5 |
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$ |
19.0 |
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-3 |
% |
Operating income (loss) (1) |
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$ |
(23.1 |
) |
$ |
48.1 |
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n/m |
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Net income |
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$ |
9.9 |
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$ |
52.3 |
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-81 |
% |
Comprehensive income |
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$ |
5.5 |
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$ |
51.1 |
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-89 |
% |
Total assets |
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$ |
3,126.9 |
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$ |
2,955.7 |
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Common shareholders equity |
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$ |
1,558.5 |
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$ |
1,437.3 |
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Per share data |
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Operating income (loss) per share (2) |
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$ |
(0.31 |
) |
$ |
0.56 |
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Comprehensive income per share (2) |
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$ |
0.07 |
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$ |
0.59 |
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Fully converted book value per share (3) |
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$ |
21.36 |
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$ |
16.37 |
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Fully converted tangible book value per share (3) |
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$ |
21.29 |
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$ |
16.31 |
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Financial ratios |
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Loss and loss adjustment expense ratio: |
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Current year |
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106.2 |
% |
45.7 |
% |
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Prior year |
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-15.2 |
% |
-11.0 |
% |
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Loss and loss adjustment expense ratio |
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91.0 |
% |
34.7 |
% |
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Acquisition costs ratio |
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14.2 |
% |
17.9 |
% |
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General and administrative expense ratio |
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18.3 |
% |
21.5 |
% |
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Combined ratio |
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123.5 |
% |
74.1 |
% |
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Operating income / Avg shareholders equity |
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-1.4 |
% |
3.4 |
% |
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Change in FCBVPS adj for dividends (4) |
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1.5 |
% |
3.2 |
% |
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(1) Excludes net investment and foreign exchange gains and losses and gain on early extinguishment of debt.
(2) See Page 13 for calculation and Page 14 for a discussion of our use of certain Financial Measures Disclosures.
(3) See Page 12 for calculation and Page 14 for a discussion of our use of certain Financial Measures Disclosures.
(4) Change in FCBVPS adj for dividends represents the change in fully converted book value per share in the period adjusted for dividends declared. See page 14 for a discussion of our use of certain Financial Measures Disclosures.
MONTPELIER RE HOLDINGS LTD.
Summary Consolidated Balance Sheets (unaudited)
in millions, except per share amounts
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Mar 31 |
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Dec 31 |
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Sept 30 |
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June 30 |
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Mar 31 |
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2010 |
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2009 |
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2009 |
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2009 |
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2009 |
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ASSETS |
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Investments, cash and cash equivalents |
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$ |
2,623.0 |
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$ |
2,708.7 |
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$ |
2,717.2 |
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$ |
2,594.5 |
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$ |
2,448.1 |
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Premiums receivable |
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250.3 |
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161.5 |
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223.4 |
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287.2 |
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236.0 |
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Deferred acquisition costs |
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47.5 |
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38.2 |
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45.0 |
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46.7 |
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39.2 |
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Reinsurance recoverable on paid and unpaid losses |
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111.7 |
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114.1 |
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121.3 |
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131.2 |
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147.4 |
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Unearned premium ceded |
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20.0 |
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14.7 |
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18.0 |
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12.1 |
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19.4 |
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Other assets |
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74.4 |
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62.0 |
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77.9 |
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69.3 |
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65.6 |
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Total Assets |
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$ |
3,126.9 |
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$ |
3,099.2 |
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$ |
3,202.8 |
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$ |
3,141.0 |
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$ |
2,955.7 |
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LIABILITIES |
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Loss and loss adjustment expense reserves |
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$ |
779.4 |
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$ |
680.8 |
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$ |
719.0 |
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$ |
750.3 |
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$ |
778.5 |
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Unearned premium |
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318.4 |
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215.4 |
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299.5 |
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333.1 |
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286.6 |
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Debt |
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328.6 |
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328.6 |
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328.6 |
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328.5 |
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328.5 |
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Other liabilities |
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142.0 |
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145.9 |
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133.5 |
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132.1 |
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124.8 |
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Total Liabilities |
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1,568.4 |
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1,370.7 |
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1,480.6 |
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1,544.0 |
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1,518.4 |
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SHAREHOLDERS EQUITY |
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Common shareholders equity |
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1,558.5 |
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1,728.5 |
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1,722.2 |
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1,597.0 |
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1,437.3 |
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Total Liabilities and Shareholders Equity |
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$ |
3,126.9 |
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$ |
3,099.2 |
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$ |
3,202.8 |
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$ |
3,141.0 |
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$ |
2,955.7 |
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Fully converted book value per share (1) |
|
$ |
21.36 |
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$ |
21.14 |
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$ |
19.78 |
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$ |
18.12 |
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$ |
16.37 |
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Fully converted tangible book value per share (1) |
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$ |
21.29 |
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$ |
21.08 |
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$ |
19.73 |
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$ |
18.06 |
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$ |
16.31 |
|
(1) See Page 12 for calculation and Page 14 for a discussion of our use of certain Financial Measures Disclosures.
MONTPELIER RE HOLDINGS LTD.
Summary Consolidated Income Statements (unaudited)
$ in millions, except per share amounts
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Q1-10 |
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Q4-09 |
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Q3-09 |
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Q2-09 |
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Q1-09 |
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Underwriting revenues |
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Gross premiums written |
|
$ |
274.8 |
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$ |
79.1 |
|
$ |
120.8 |
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$ |
184.4 |
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$ |
250.6 |
|
Reinsurance premiums ceded |
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(12.9 |
) |
(4.9 |
) |
(14.5 |
) |
(0.5 |
) |
(12.8 |
) |
|||||
Net premiums written |
|
261.9 |
|
74.2 |
|
106.3 |
|
183.9 |
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237.8 |
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|||||
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Gross premiums earned |
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165.4 |
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163.1 |
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152.9 |
|
149.7 |
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147.8 |
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|||||
Earned reinsurance premiums ceded |
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(6.9 |
) |
(8.3 |
) |
(9.3 |
) |
(8.3 |
) |
(14.4 |
) |
|||||
Net premiums earned |
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158.5 |
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154.8 |
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143.6 |
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141.4 |
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133.4 |
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Loss and loss adjustment expenses |
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(144.2 |
) |
(17.7 |
) |
(41.5 |
) |
(33.3 |
) |
(46.2 |
) |
|||||
Acquisition costs |
|
(22.4 |
) |
(19.7 |
) |
(17.4 |
) |
(19.5 |
) |
(23.9 |
) |
|||||
General and administrative expenses |
|
(29.1 |
) |
(38.0 |
) |
(36.2 |
) |
(34.2 |
) |
(28.7 |
) |
|||||
Underwriting income (loss) |
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(37.2 |
) |
79.4 |
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48.5 |
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54.4 |
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34.6 |
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Net investment income |
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18.5 |
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21.3 |
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20.2 |
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20.5 |
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19.0 |
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Interest and other financing expenses |
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(6.5 |
) |
(6.5 |
) |
(6.6 |
) |
(6.7 |
) |
(6.5 |
) |
|||||
Other revenue |
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0.2 |
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0.1 |
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0.2 |
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0.2 |
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Other non-underwriting expenses |
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(0.2 |
) |
|||||
Income tax benefit (provision) |
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1.9 |
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(0.1 |
) |
(2.0 |
) |
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1.0 |
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|||||
Operating income (loss) (1) |
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(23.1 |
) |
94.1 |
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60.2 |
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68.4 |
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48.1 |
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Net realized investment gains (losses) |
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9.1 |
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23.9 |
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4.9 |
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7.4 |
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(5.4 |
) |
|||||
Net unrealized investment gains (losses) |
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17.7 |
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(11.9 |
) |
76.3 |
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85.6 |
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9.1 |
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Gain on early extinguishment of debt |
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5.9 |
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Net foreign exchange gains (losses) |
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6.2 |
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(1.4 |
) |
6.1 |
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(2.4 |
) |
(5.4 |
) |
|||||
Net income |
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9.9 |
|
104.7 |
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147.5 |
|
159.0 |
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52.3 |
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|||||
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Other comprehensive income (loss) items |
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(4.4 |
) |
(1.7 |
) |
(0.3 |
) |
3.5 |
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(1.2 |
) |
|||||
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Comprehensive income |
|
$ |
5.5 |
|
$ |
103.0 |
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$ |
147.2 |
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$ |
162.5 |
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$ |
51.1 |
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Loss and loss adjustment expense ratio: |
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|
|||||
Current year |
|
106.2 |
% |
27.1 |
% |
42.5 |
% |
35.8 |
% |
45.7 |
% |
|||||
Prior year |
|
-15.2 |
% |
-15.7 |
% |
-13.5 |
% |
-12.2 |
% |
-11.0 |
% |
|||||
Loss and loss adjustment expense ratio |
|
91.0 |
% |
11.4 |
% |
29.0 |
% |
23.6 |
% |
34.7 |
% |
|||||
Acquisition costs ratio |
|
14.2 |
% |
12.7 |
% |
12.1 |
% |
13.7 |
% |
17.9 |
% |
|||||
General and administrative expense ratio |
|
18.3 |
% |
24.6 |
% |
25.2 |
% |
24.2 |
% |
21.5 |
% |
|||||
Combined ratio |
|
123.5 |
% |
48.7 |
% |
66.3 |
% |
61.5 |
% |
74.1 |
% |
|||||
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Operating income (loss) per share (2) |
|
$ |
(0.31 |
) |
$ |
1.12 |
|
$ |
0.69 |
|
$ |
0.78 |
|
$ |
0.56 |
|
Comprehensive income per share (2) |
|
$ |
0.07 |
|
$ |
1.23 |
|
$ |
1.68 |
|
$ |
1.85 |
|
$ |
0.59 |
|
Operating income / Avg shareholders equity |
|
-1.4 |
% |
5.5 |
% |
3.6 |
% |
4.5 |
% |
3.4 |
% |
|||||
Comprehensive income / Avg shareholders equity |
|
0.3 |
% |
6.0 |
% |
8.9 |
% |
10.7 |
% |
3.7 |
% |
(1) Excludes net investment and foreign exchange gains and losses and gain on early extinguishment of debt.
(2) See Page 13 for calculation and Page 14 for a discussion of our use of certain Financial Measures Disclosures.
MONTPELIER RE HOLDINGS LTD.
Net Premiums Written by Line of Business
(unaudited)
in millions
Net Premiums Written |
|
Q1-10 |
|
Q4-09 |
|
Q3-09 |
|
Q2-09 |
|
Q1-09 |
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Bermuda |
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|||||
Property Catastrophe - Treaty Reinsurance |
|
$ |
112.9 |
|
$ |
12.9 |
|
$ |
28.4 |
|
$ |
111.4 |
|
$ |
102.5 |
|
Property Specialty - Treaty Reinsurance |
|
11.6 |
|
12.8 |
|
12.0 |
|
13.3 |
|
27.9 |
|
|||||
Other Specialty - Treaty Reinsurance |
|
42.6 |
|
5.3 |
|
13.0 |
|
15.5 |
|
35.4 |
|
|||||
Property & Specialty Individual Risk |
|
7.7 |
|
4.9 |
|
11.2 |
|
14.1 |
|
7.0 |
|
|||||
|
|
$ |
174.8 |
|
$ |
35.9 |
|
$ |
64.6 |
|
$ |
154.3 |
|
$ |
172.8 |
|
|
|
|
|
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|
|||||
Syndicate 5151 |
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|
|||||
Property Catastrophe - Treaty Reinsurance |
|
$ |
30.2 |
|
$ |
0.5 |
|
$ |
3.1 |
|
$ |
2.4 |
|
$ |
24.8 |
|
Property Specialty - Treaty Reinsurance |
|
7.2 |
|
5.2 |
|
6.2 |
|
2.8 |
|
11.1 |
|
|||||
Other Specialty - Treaty Reinsurance |
|
22.2 |
|
7.2 |
|
11.5 |
|
7.7 |
|
18.5 |
|
|||||
Property & Specialty Individual Risk |
|
19.0 |
|
17.1 |
|
12.9 |
|
12.7 |
|
7.2 |
|
|||||
|
|
$ |
78.6 |
|
$ |
30.0 |
|
$ |
33.7 |
|
$ |
25.6 |
|
$ |
61.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
MUSIC |
|
|
|
|
|
|
|
|
|
|
|
|||||
Property Catastrophe - Treaty Reinsurance |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
Property Specialty - Treaty Reinsurance |
|
|
|
|
|
|
|
|
|
|
|
|||||
Other Specialty - Treaty Reinsurance |
|
|
|
|
|
|
|
|
|
|
|
|||||
Property & Specialty Individual Risk |
|
8.5 |
|
8.3 |
|
8.0 |
|
4.0 |
|
3.4 |
|
|||||
|
|
$ |
8.5 |
|
$ |
8.3 |
|
$ |
8.0 |
|
$ |
4.0 |
|
$ |
3.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Consolidated Total NWP |
|
|
|
|
|
|
|
|
|
|
|
|||||
Property Catastrophe - Treaty Reinsurance |
|
$ |
143.1 |
|
$ |
13.4 |
|
$ |
31.5 |
|
$ |
113.8 |
|
$ |
127.3 |
|
Property Specialty - Treaty Reinsurance |
|
18.8 |
|
18.0 |
|
18.2 |
|
16.1 |
|
39.0 |
|
|||||
Other Specialty - Treaty Reinsurance |
|
64.8 |
|
12.5 |
|
24.5 |
|
23.2 |
|
53.9 |
|
|||||
Property & Specialty Individual Risk |
|
35.2 |
|
30.3 |
|
32.1 |
|
30.8 |
|
17.6 |
|
|||||
|
|
$ |
261.9 |
|
$ |
74.2 |
|
$ |
106.3 |
|
$ |
183.9 |
|
$ |
237.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Reinstatements included in NWP |
|
$ |
11.7 |
|
$ |
(1.8 |
) |
$ |
3.0 |
|
$ |
|
|
$ |
0.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Consolidated 12 Mo. Rolling NWP |
|
$ |
626.3 |
|
$ |
602.2 |
|
$ |
601.5 |
|
$ |
586.9 |
|
$ |
556.9 |
|
MONTPELIER RE HOLDINGS LTD.
Net Premiums Earned by Line of Business
(unaudited)
in millions
Net Premiums Earned |
|
Q1-10 |
|
Q4-09 |
|
Q3-09 |
|
Q2-09 |
|
Q1-09 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Bermuda |
|
|
|
|
|
|
|
|
|
|
|
|||||
Property Catastrophe - Treaty Reinsurance |
|
$ |
68.0 |
|
$ |
66.1 |
|
$ |
66.7 |
|
$ |
59.6 |
|
$ |
57.5 |
|
Property Specialty - Treaty Reinsurance |
|
11.7 |
|
16.0 |
|
12.7 |
|
17.6 |
|
22.1 |
|
|||||
Other Specialty - Treaty Reinsurance |
|
17.9 |
|
15.8 |
|
17.7 |
|
19.6 |
|
19.5 |
|
|||||
Property & Specialty Individual Risk |
|
11.5 |
|
10.2 |
|
9.5 |
|
7.5 |
|
7.9 |
|
|||||
|
|
$ |
109.1 |
|
$ |
108.1 |
|
$ |
106.6 |
|
$ |
104.3 |
|
$ |
107.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Syndicate 5151 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Property Catastrophe - Treaty Reinsurance |
|
$ |
11.5 |
|
$ |
8.8 |
|
$ |
10.2 |
|
$ |
8.5 |
|
$ |
7.0 |
|
Property Specialty - Treaty Reinsurance |
|
5.1 |
|
7.1 |
|
6.9 |
|
10.2 |
|
5.1 |
|
|||||
Other Specialty - Treaty Reinsurance |
|
12.0 |
|
13.1 |
|
6.3 |
|
5.9 |
|
5.6 |
|
|||||
Property & Specialty Individual Risk |
|
14.0 |
|
12.2 |
|
9.6 |
|
9.6 |
|
7.0 |
|
|||||
|
|
$ |
42.6 |
|
$ |
41.2 |
|
$ |
33.0 |
|
$ |
34.2 |
|
$ |
24.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
MUSIC |
|
|
|
|
|
|
|
|
|
|
|
|||||
Property Catastrophe - Treaty Reinsurance |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
Property Specialty - Treaty Reinsurance |
|
|
|
|
|
|
|
|
|
|
|
|||||
Other Specialty - Treaty Reinsurance |
|
|
|
|
|
|
|
|
|
|
|
|||||
Property & Specialty Individual Risk |
|
6.8 |
|
5.5 |
|
4.0 |
|
2.9 |
|
1.7 |
|
|||||
|
|
$ |
6.8 |
|
$ |
5.5 |
|
$ |
4.0 |
|
$ |
2.9 |
|
$ |
1.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Consolidated Total NPE |
|
|
|
|
|
|
|
|
|
|
|
|||||
Property Catastrophe - Treaty Reinsurance |
|
$ |
79.5 |
|
$ |
74.9 |
|
$ |
76.9 |
|
$ |
68.1 |
|
$ |
64.5 |
|
Property Specialty - Treaty Reinsurance |
|
16.8 |
|
23.1 |
|
19.6 |
|
27.8 |
|
27.2 |
|
|||||
Other Specialty - Treaty Reinsurance |
|
29.9 |
|
28.9 |
|
24.0 |
|
25.5 |
|
25.1 |
|
|||||
Property & Specialty Individual Risk |
|
32.3 |
|
27.9 |
|
23.1 |
|
20.0 |
|
16.6 |
|
|||||
|
|
$ |
158.5 |
|
$ |
154.8 |
|
$ |
143.6 |
|
$ |
141.4 |
|
$ |
133.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Reinstatements included in NPE |
|
$ |
11.7 |
|
$ |
(1.8 |
) |
$ |
3.0 |
|
$ |
|
|
$ |
0.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Consolidated 12 Mo. Rolling NPE |
|
$ |
598.3 |
|
$ |
573.2 |
|
$ |
553.2 |
|
$ |
543.8 |
|
$ |
521.6 |
|
MONTPELIER RE HOLDINGS LTD.
Losses Paid to Incurred Analysis (unaudited)
in millions
|
|
Three months ended March 31, 2010 |
|
Three months ended March 31, 2009 |
|
||||||||||||||
|
|
Gross |
|
Recoveries |
|
Net |
|
Gross |
|
Recoveries |
|
Net |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Reserve for losses, beginning of period |
|
$ |
680.8 |
|
$ |
69.6 |
|
$ |
611.2 |
|
$ |
808.9 |
|
$ |
122.9 |
|
$ |
686.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Losses incurred: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current year |
|
169.6 |
|
1.3 |
|
168.3 |
|
62.9 |
|
2.0 |
|
60.9 |
|
||||||
Prior years |
|
(24.4 |
) |
(0.3 |
) |
(24.1 |
) |
(26.2 |
) |
(11.5 |
) |
(14.7 |
) |
||||||
Total losses incurred |
|
145.2 |
|
1.0 |
|
144.2 |
|
36.7 |
|
(9.5 |
) |
46.2 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net impact of foreign currency movements |
|
(6.2 |
) |
(0.1 |
) |
(6.1 |
) |
(0.6 |
) |
|
|
(0.6 |
) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Paid losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current year |
|
1.3 |
|
0.3 |
|
1.0 |
|
2.0 |
|
|
|
2.0 |
|
||||||
Prior years |
|
39.1 |
|
2.4 |
|
36.7 |
|
64.5 |
|
7.5 |
|
57.0 |
|
||||||
Total paid losses |
|
40.4 |
|
2.7 |
|
37.7 |
|
66.5 |
|
7.5 |
|
59.0 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Reserve for losses, end of period |
|
$ |
779.4 |
|
$ |
67.8 |
|
$ |
711.6 |
|
$ |
778.5 |
|
$ |
105.9 |
|
$ |
672.6 |
|
MONTPELIER RE HOLDINGS LTD.
Consolidated Losses and Loss Ratios
(unaudited)
$ in millions
|
|
Q1-10 |
|
Q4-09 |
|
Q3-09 |
|
Q2-09 |
|
Q1-09 |
|
|||||
Property Catastrophe - Treaty |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net reserves: start |
|
$ |
155.8 |
|
$ |
167.0 |
|
$ |
168.5 |
|
$ |
181.9 |
|
$ |
209.6 |
|
Change in prior AY |
|
(5.4 |
) |
(6.0 |
) |
(9.5 |
) |
(3.9 |
) |
(5.5 |
) |
|||||
Paid losses |
|
(13.9 |
) |
(12.3 |
) |
(15.7 |
) |
(22.3 |
) |
(36.5 |
) |
|||||
Current yr. incurred losses |
|
106.0 |
|
7.1 |
|
23.7 |
|
12.8 |
|
14.3 |
|
|||||
Net reserves: end |
|
$ |
242.5 |
|
$ |
155.8 |
|
$ |
167.0 |
|
$ |
168.5 |
|
$ |
181.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net earned premium |
|
$ |
79.5 |
|
$ |
74.9 |
|
$ |
76.9 |
|
$ |
68.1 |
|
$ |
64.5 |
|
Net loss ratio |
|
126.5 |
% |
1.5 |
% |
18.5 |
% |
13.1 |
% |
13.6 |
% |
|||||
Net loss ratio excl. prior AY adjusts. |
|
133.3 |
% |
9.5 |
% |
30.8 |
% |
18.8 |
% |
22.2 |
% |
|||||
Net loss ratio - prior AY adjusts. |
|
-6.8 |
% |
-8.0 |
% |
-12.4 |
% |
-5.7 |
% |
-8.5 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
IBNR |
|
$ |
161.3 |
|
$ |
93.5 |
|
$ |
94.9 |
|
$ |
98.0 |
|
$ |
81.3 |
|
IBNR as a % of net reserves |
|
67 |
% |
60 |
% |
57 |
% |
58 |
% |
45 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Property Specialty - Treaty |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net reserves: start |
|
$ |
140.8 |
|
$ |
145.7 |
|
$ |
156.2 |
|
$ |
158.5 |
|
$ |
152.1 |
|
Change in prior AY |
|
(4.8 |
) |
(6.3 |
) |
0.4 |
|
(4.9 |
) |
(2.2 |
) |
|||||
Paid losses |
|
(11.2 |
) |
(9.0 |
) |
(22.0 |
) |
(9.1 |
) |
(13.5 |
) |
|||||
Current yr. incurred losses |
|
23.1 |
|
10.4 |
|
11.1 |
|
11.7 |
|
22.1 |
|
|||||
Net reserves: end |
|
$ |
147.9 |
|
$ |
140.8 |
|
$ |
145.7 |
|
$ |
156.2 |
|
$ |
158.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net earned premium |
|
$ |
16.8 |
|
$ |
23.1 |
|
$ |
19.6 |
|
$ |
27.8 |
|
$ |
27.2 |
|
Net loss ratio |
|
108.9 |
% |
17.7 |
% |
58.7 |
% |
24.5 |
% |
73.2 |
% |
|||||
Net loss ratio excl. prior AY adjusts. |
|
137.5 |
% |
45.0 |
% |
56.6 |
% |
42.1 |
% |
81.3 |
% |
|||||
Net loss ratio - prior AY adjusts. |
|
-28.6 |
% |
-27.3 |
% |
2.0 |
% |
-17.6 |
% |
-8.1 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
IBNR |
|
$ |
102.9 |
|
$ |
90.8 |
|
$ |
89.2 |
|
$ |
90.6 |
|
$ |
93.3 |
|
IBNR as a % of net reserves |
|
70 |
% |
64 |
% |
61 |
% |
58 |
% |
59 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Other Specialty - Treaty |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net reserves: start |
|
$ |
217.3 |
|
$ |
232.7 |
|
$ |
243.0 |
|
$ |
245.8 |
|
$ |
246.7 |
|
Change in prior AY |
|
(8.0 |
) |
(9.4 |
) |
(5.2 |
) |
(5.0 |
) |
(6.6 |
) |
|||||
Paid losses |
|
(10.2 |
) |
(23.7 |
) |
(18.9 |
) |
(11.0 |
) |
(7.5 |
) |
|||||
Current yr. incurred losses |
|
21.6 |
|
17.7 |
|
13.8 |
|
13.2 |
|
13.2 |
|
|||||
Net reserves: end |
|
$ |
220.7 |
|
$ |
217.3 |
|
$ |
232.7 |
|
$ |
243.0 |
|
$ |
245.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net earned premium |
|
$ |
29.9 |
|
$ |
28.9 |
|
$ |
24.0 |
|
$ |
25.5 |
|
$ |
25.1 |
|
Net loss ratio |
|
45.5 |
% |
28.7 |
% |
35.8 |
% |
32.2 |
% |
26.3 |
% |
|||||
Net loss ratio excl. prior AY adjusts. |
|
72.2 |
% |
61.2 |
% |
57.5 |
% |
51.8 |
% |
52.6 |
% |
|||||
Net loss ratio - prior AY adjusts. |
|
-26.8 |
% |
-32.5 |
% |
-21.7 |
% |
-19.6 |
% |
-26.3 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
IBNR |
|
$ |
170.7 |
|
$ |
165.4 |
|
$ |
165.8 |
|
$ |
167.5 |
|
$ |
167.8 |
|
IBNR as a % of net reserves |
|
77 |
% |
76 |
% |
71 |
% |
69 |
% |
68 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Property and Specialty Individual Risk |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net reserves: start |
|
$ |
97.8 |
|
$ |
95.6 |
|
$ |
94.7 |
|
$ |
87.0 |
|
$ |
77.6 |
|
Change in prior AY |
|
(5.9 |
) |
(2.6 |
) |
(5.1 |
) |
(3.5 |
) |
(0.4 |
) |
|||||
Paid losses |
|
(2.4 |
) |
(2.0 |
) |
(6.3 |
) |
(1.7 |
) |
(1.5 |
) |
|||||
Current yr. incurred losses |
|
17.6 |
|
6.8 |
|
12.3 |
|
12.9 |
|
11.3 |
|
|||||
Net reserves: end |
|
$ |
107.1 |
|
$ |
97.8 |
|
$ |
95.6 |
|
$ |
94.7 |
|
$ |
87.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net earned premium |
|
$ |
32.3 |
|
$ |
27.9 |
|
$ |
23.1 |
|
$ |
20.0 |
|
$ |
16.6 |
|
Net loss ratio |
|
36.2 |
% |
15.1 |
% |
31.2 |
% |
47.0 |
% |
65.7 |
% |
|||||
Net loss ratio excl. prior AY adjusts. |
|
54.5 |
% |
24.4 |
% |
53.2 |
% |
64.5 |
% |
68.1 |
% |
|||||
Net loss ratio - prior AY adjusts. |
|
-18.3 |
% |
-9.3 |
% |
-22.1 |
% |
-17.5 |
% |
-2.4 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
IBNR |
|
$ |
69.6 |
|
$ |
62.0 |
|
$ |
52.7 |
|
$ |
49.1 |
|
$ |
40.7 |
|
IBNR as a % of net reserves |
|
65 |
% |
63 |
% |
55 |
% |
52 |
% |
47 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
TOTAL |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net reserves: start |
|
$ |
611.2 |
|
$ |
640.3 |
|
$ |
662.1 |
|
$ |
672.6 |
|
$ |
686.0 |
|
Change in prior AY |
|
(24.1 |
) |
(24.3 |
) |
(19.4 |
) |
(17.3 |
) |
(14.7 |
) |
|||||
Paid losses |
|
(37.7 |
) |
(47.0 |
) |
(62.9 |
) |
(44.1 |
) |
(59.0 |
) |
|||||
Current yr. incurred losses |
|
168.3 |
|
42.0 |
|
60.9 |
|
50.6 |
|
60.9 |
|
|||||
Net impact of foreign currency |
|
(6.1 |
) |
0.2 |
|
(0.4 |
) |
0.3 |
|
(0.6 |
) |
|||||
Net reserves: end |
|
$ |
711.6 |
|
$ |
611.2 |
|
$ |
640.3 |
|
$ |
662.1 |
|
$ |
672.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net earned premium |
|
$ |
158.5 |
|
$ |
154.8 |
|
$ |
143.6 |
|
$ |
141.4 |
|
$ |
133.4 |
|
Net loss ratio |
|
91.0 |
% |
11.4 |
% |
28.9 |
% |
23.6 |
% |
34.6 |
% |
|||||
Net loss ratio excl. prior AY adjusts. |
|
106.2 |
% |
27.1 |
% |
42.5 |
% |
35.8 |
% |
45.7 |
% |
|||||
Net loss ratio - prior AY adjusts. |
|
-15.2 |
% |
-15.7 |
% |
-13.5 |
% |
-12.2 |
% |
-11.0 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
IBNR |
|
$ |
504.5 |
|
$ |
411.7 |
|
$ |
402.6 |
|
$ |
405.2 |
|
$ |
383.1 |
|
IBNR as a % of net reserves |
|
71 |
% |
67 |
% |
63 |
% |
61 |
% |
57 |
% |
MONTPELIER RE HOLDINGS LTD.
Consolidated Investment Portfolio (unaudited)
$ in millions
|
|
March 31, 2010 |
|
December 31, 2009 |
|
September 30, 2009 |
|
June 30, 2009 |
|
March 31, 2009 |
|
|||||||||||||||||||||
|
|
Amortized |
|
|
|
Fair |
|
|
|
Fair |
|
|
|
Fair |
|
|
|
Fair |
|
|
|
Fair |
|
|
|
|||||||
|
|
Cost |
|
Gain |
|
Value |
|
% |
|
Value |
|
% |
|
Value |
|
% |
|
Value |
|
% |
|
Value |
|
% |
|
|||||||
Composition: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Fixed maturities |
|
$ |
2,076.5 |
|
$ |
35.0 |
|
$ |
2,111.5 |
|
81 |
% |
$ |
2,207.5 |
|
82 |
% |
$ |
2,228.4 |
|
81 |
% |
$ |
2,086.5 |
|
80 |
% |
$ |
1,828.5 |
|
75 |
% |
Equity securities |
|
111.7 |
|
27.0 |
|
138.7 |
|
5 |
% |
167.2 |
|
6 |
% |
156.4 |
|
6 |
% |
173.3 |
|
7 |
% |
202.5 |
|
8 |
% |
|||||||
Other investments |
|
75.5 |
|
1.5 |
|
77.0 |
|
3 |
% |
91.0 |
|
3 |
% |
82.4 |
|
3 |
% |
76.0 |
|
3 |
% |
132.8 |
|
5 |
% |
|||||||
Cash equivalents |
|
86.4 |
|
|
|
86.4 |
|
3 |
% |
8.0 |
|
0 |
% |
71.7 |
|
3 |
% |
26.6 |
|
1 |
% |
79.0 |
|
3 |
% |
|||||||
Cash and restricted cash |
|
209.4 |
|
|
|
209.4 |
|
8 |
% |
235.0 |
|
9 |
% |
178.3 |
|
7 |
% |
232.1 |
|
9 |
% |
205.2 |
|
8 |
% |
|||||||
Total investments and cash |
|
$ |
2,559.5 |
|
$ |
63.5 |
|
$ |
2,623.0 |
|
100 |
% |
$ |
2,708.7 |
|
100 |
% |
$ |
2,717.2 |
|
100 |
% |
$ |
2,594.5 |
|
100 |
% |
$ |
2,448.0 |
|
99 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Fixed maturities allocation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Mortgage-backed and asset-backed securities (1) |
|
$ |
799.0 |
|
$ |
2.8 |
|
$ |
801.8 |
|
37 |
% |
$ |
815.0 |
|
37 |
% |
$ |
828.8 |
|
38 |
% |
$ |
762.6 |
|
37 |
% |
$ |
688.4 |
|
38 |
% |
Government & government-sponsored entities |
|
709.1 |
|
0.9 |
|
710.0 |
|
34 |
% |
796.2 |
|
36 |
% |
745.1 |
|
33 |
% |
671.0 |
|
32 |
% |
542.8 |
|
30 |
% |
|||||||
Corporate bonds (2) |
|
530.7 |
|
30.6 |
|
561.3 |
|
27 |
% |
571.7 |
|
26 |
% |
629.7 |
|
28 |
% |
628.3 |
|
30 |
% |
557.4 |
|
30 |
% |
|||||||
Municipal bonds |
|
37.7 |
|
0.7 |
|
38.4 |
|
2 |
% |
24.6 |
|
1 |
% |
24.8 |
|
1 |
% |
24.6 |
|
1 |
% |
39.9 |
|
2 |
% |
|||||||
Total fixed maturities |
|
$ |
2,076.5 |
|
$ |
35.0 |
|
$ |
2,111.5 |
|
100 |
% |
$ |
2,207.5 |
|
100 |
% |
$ |
2,228.4 |
|
100 |
% |
$ |
2,086.5 |
|
100 |
% |
$ |
1,828.5 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Other investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Limited partnership interests and private investment funds |
|
$ |
63.4 |
|
$ |
0.6 |
|
$ |
64.0 |
|
83 |
% |
$ |
57.3 |
|
63 |
% |
$ |
54.1 |
|
66 |
% |
$ |
51.5 |
|
68 |
% |
$ |
51.0 |
|
38 |
% |
Catastrophe bonds |
|
10.0 |
|
0.3 |
|
10.3 |
|
13 |
% |
10.0 |
|
11 |
% |
|
|
|
% |
|
|
|
% |
57.0 |
|
43 |
% |
|||||||
Symetra Financial (3) |
|
|
|
|
|
|
|
0 |
% |
22.6 |
|
25 |
% |
24.1 |
|
29 |
% |
23.4 |
|
31 |
% |
23.0 |
|
17 |
% |
|||||||
Derivative instruments |
|
2.1 |
|
0.6 |
|
2.7 |
|
4 |
% |
1.1 |
|
1 |
% |
4.2 |
|
5 |
% |
1.1 |
|
1 |
% |
1.8 |
|
1 |
% |
|||||||
Total other investments |
|
$ |
75.5 |
|
$ |
1.5 |
|
$ |
77.0 |
|
100 |
% |
$ |
91.0 |
|
100 |
% |
$ |
82.4 |
|
100 |
% |
$ |
76.0 |
|
100 |
% |
$ |
132.8 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total investment return: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net investment income |
|
|
|
|
|
$ |
18.5 |
|
|
|
$ |
21.3 |
|
|
|
20.2 |
|
|
|
$ |
20.5 |
|
|
|
$ |
19.0 |
|
|
|
|||
Net realized investment gains (losses) |
|
|
|
|
|
9.1 |
|
|
|
23.9 |
|
|
|
4.9 |
|
|
|
7.4 |
|
|
|
(5.4 |
) |
|
|
|||||||
Net unrealized investment gains (losses) (4) |
|
|
|
|
|
15.1 |
|
|
|
(13.3 |
) |
|
|
77.0 |
|
|
|
86.0 |
|
|
|
8.9 |
|
|
|
|||||||
Net derivative investment and FX gains (losses) |
|
|
|
|
|
8.6 |
|
|
|
(0.1 |
) |
|
|
6.1 |
|
|
|
(3.2 |
) |
|
|
(3.4 |
) |
|
|
|||||||
Total investment return |
|
|
|
|
|
$ |
51.3 |
|
|
|
$ |
31.8 |
|
|
|
108.2 |
|
|
|
$ |
110.7 |
|
|
|
$ |
19.1 |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total quarterly return on average fair value % |
|
|
|
|
|
1.6 |
% |
|
|
1.1 |
% |
|
|
4.0 |
% |
|
|
4.4 |
% |
|
|
0.6 |
% |
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Average yield to worst of fixed maturities and cash equivalents |
|
|
|
|
|
3.4 |
% |
|
|
3.7 |
% |
|
|
3.8 |
% |
|
|
4.4 |
% |
|
|
4.8 |
% |
|
|
|||||||
Average duration of fixed maturities, cash and cash equivalents |
|
|
|
|
|
2.2 years |
|
|
|
2.1 years |
|
|
|
2.0 years |
|
|
|
2.1 years |
|
|
|
1.6 years |
|
|
|
|||||||
Average credit quality of fixed maturities and cash equivalents |
|
|
|
|
|
AA+ |
|
|
|
AA+ |
|
|
|
AA+ |
|
|
|
AA+ |
|
|
|
AA+ |
|
|
|
|||||||
Average duration of fixed maturities |
|
|
|
|
|
2.5 years |
|
|
|
2.5 years |
|
|
|
2.4 years |
|
|
|
2.5 years |
|
|
|
1.9 years |
|
|
|
(1) See Page 9 for additional detail regarding our investments in mortgage-backed and asset-backed securities.
(2) Corporate bonds includes bank loans. See page 10 for additional details.
(3) Symetra Financial went public in 1Q10 and is now presented as an equity security.
(4) Includes changes in comprehensive income from Symetra.
MONTPELIER RE HOLDINGS LTD.
Consolidated Investment Detail
Mortgage-Backed and Asset-Backed Securities
(unaudited)
$ in millions
At March 31, 2010
|
|
|
|
|
|
|
|
|
|
Option |
|
|
|
Fair Value |
|
||||||||||
|
|
Amortized |
|
Fair |
|
Gain |
|
|
|
Adjusted |
|
Average |
|
|
|
|
|
Insurance (1) |
|
||||||
|
|
Cost |
|
Value |
|
(Loss) |
|
Rating |
|
Duration |
|
Life |
|
Subprime |
|
Alt-A |
|
wrapped |
|
||||||
Mortgage-backed and asset-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Residential-Mortgage Backed: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
GNMA |
|
$ |
46.8 |
|
$ |
49.4 |
|
$ |
2.6 |
|
AAA |
|
|
|
|
|
|
|
|
|
|
|
|||
FNMA |
|
71.1 |
|
73.1 |
|
2.0 |
|
AAA |
|
|
|
|
|
|
|
|
|
|
|
||||||
Freddie Mac |
|
71.8 |
|
72.6 |
|
0.8 |
|
AAA |
|
|
|
|
|
|
|
|
|
|
|
||||||
Total Residential Mortgage-Backed |
|
$ |
189.7 |
|
$ |
195.1 |
|
$ |
5.4 |
|
AAA |
|
2.2 |
|
3.2 |
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Collateralized Residential Mortgage Obligations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
GNMA |
|
$ |
117.0 |
|
$ |
114.4 |
|
$ |
(2.6 |
) |
AAA |
|
|
|
|
|
|
|
|
|
|
|
|||
FNMA |
|
125.4 |
|
127.2 |
|
1.8 |
|
AAA |
|
|
|
|
|
|
|
|
|
|
|
||||||
Freddie Mac |
|
136.8 |
|
138.3 |
|
1.5 |
|
AAA |
|
|
|
|
|
|
|
|
|
|
|
||||||
Total agency CMOS |
|
379.2 |
|
379.9 |
|
0.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Non-agency CMOS |
|
12.7 |
|
12.4 |
|
(0.3 |
) |
AAA |
|
|
|
|
|
|
|
$ |
4.8 |
|
|
|
|||||
Non-agency CMOS |
|
0.9 |
|
0.9 |
|
|
|
AA |
|
|
|
|
|
|
|
|
|
|
|
||||||
Non-agency CMOS |
|
1.2 |
|
1.2 |
|
|
|
BBB |
|
|
|
|
|
|
|
1.1 |
|
|
|
||||||
Non-agency CMOS |
|
9.1 |
|
8.4 |
|
(0.7 |
) |
B |
|
|
|
|
|
|
|
|
|
|
|
||||||
Non-agency CMOS |
|
8.3 |
|
7.8 |
|
(0.5 |
) |
CCC |
|
|
|
|
|
|
|
3.7 |
|
|
|
||||||
Non-agency CMOS |
|
0.1 |
|
0.1 |
|
|
|
D |
|
|
|
|
|
|
|
|
|
|
|
||||||
Total Non-agency CMOS |
|
32.3 |
|
30.8 |
|
(1.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total Collateralized Residential Mortgage Obligations |
|
$ |
411.5 |
|
$ |
410.7 |
|
$ |
(0.8 |
) |
AAA |
|
1.6 |
|
2.5 |
|
|
|
$ |
9.6 |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Asset-Backed Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Credit card |
|
$ |
39.0 |
|
$ |
39.6 |
|
0.6 |
|
AAA |
|
|
|
|
|
|
|
|
|
|
|
||||
Auto |
|
34.5 |
|
34.9 |
|
0.4 |
|
AAA |
|
|
|
|
|
|
|
|
|
|
|
||||||
Auto |
|
4.7 |
|
4.7 |
|
|
|
BBB |
|
|
|
|
|
|
|
|
|
$ |
4.7 |
|
|||||
Home Equity |
|
3.2 |
|
3.3 |
|
0.1 |
|
AAA |
|
|
|
|
|
$ |
3.3 |
|
|
|
|
|
|||||
Home Equity |
|
5.0 |
|
4.8 |
|
(0.2 |
) |
A |
|
|
|
|
|
4.8 |
|
|
|
|
|
||||||
Home Equity |
|
8.3 |
|
8.2 |
|
(0.1 |
) |
BB |
|
|
|
|
|
5.1 |
|
|
|
|
|
||||||
Home Equity |
|
0.5 |
|
0.4 |
|
(0.1 |
) |
CCC |
|
|
|
|
|
0.4 |
|
|
|
|
|
||||||
Home Equity |
|
0.2 |
|
0.1 |
|
(0.1 |
) |
CC |
|
|
|
|
|
0.1 |
|
|
|
|
|
||||||
Home Equity |
|
0.0 |
|
0.0 |
|
(0.0 |
) |
NR |
|
|
|
|
|
|
|
|
|
|
|
||||||
Equipment |
|
1.6 |
|
1.6 |
|
|
|
AAA |
|
|
|
|
|
|
|
|
|
|
|
||||||
Equipment |
|
7.3 |
|
6.1 |
|
(1.2 |
) |
BBB- |
|
|
|
|
|
|
|
|
|
6.1 |
|
||||||
Commercial Mortgage Backed Securities |
|
46.3 |
|
47.8 |
|
1.5 |
|
AAA |
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial Mortgage Backed Securities |
|
30.9 |
|
28.1 |
|
(2.8 |
) |
AA |
|
|
|
|
|
|
|
|
|
|
|
||||||
Miscellaneous |
|
4.5 |
|
4.5 |
|
|
|
AAA |
|
|
|
|
|
|
|
|
|
|
|
||||||
Miscellaneous |
|
8.0 |
|
8.0 |
|
|
|
A |
|
|
|
|
|
|
|
|
|
3.9 |
|
||||||
Miscellaneous |
|
3.8 |
|
3.9 |
|
0.1 |
|
BBB- |
|
|
|
|
|
|
|
|
|
|
|
||||||
Total Asset-Backed Securities |
|
$ |
197.8 |
|
$ |
196.0 |
|
$ |
(1.8 |
) |
AA+ |
|
1.4 |
|
2.0 |
|
$ |
13.7 |
|
$ |
|
|
$ |
14.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total Mortgage-Backed and Asset-Backed Securities |
|
$ |
799.0 |
|
$ |
801.8 |
|
$ |
2.8 |
|
|
|
|
|
|
|
$ |
13.7 |
|
$ |
9.6 |
|
$ |
14.7 |
|
(1) We estimate that our insurance wrapped investments at March 31, 2010 would be BBB- or better, if they were rated, excluding the effects of financial guarantee enhancements.
MONTPELIER RE HOLDINGS LTD.
Consolidated Investment Detail - Corporate Bonds
(unaudited)
$ in millions
At March 31, 2010
Corporate Bonds - Quality:
|
|
|
|
|
|
|
|
Option |
|
|||
|
|
|
|
|
|
|
|
Adjusted |
|
|||
|
|
Amortized |
|
Fair |
|
|
|
Duration |
|
|||
|
|
Cost |
|
Value |
|
Gain |
|
(Years) |
|
|||
|
|
|
|
|
|
|
|
|
|
|||
AAA |
|
$ |
27.2 |
|
$ |
28.3 |
|
$ |
1.1 |
|
1.8 |
|
AA |
|
99.1 |
|
102.9 |
|
3.8 |
|
3.5 |
|
|||
A |
|
208.2 |
|
219.4 |
|
11.2 |
|
3.5 |
|
|||
BBB |
|
113.7 |
|
120.8 |
|
7.1 |
|
5.7 |
|
|||
Below BBB |
|
71.5 |
|
76.2 |
|
4.7 |
|
1.9 |
|
|||
Not Rated |
|
11.0 |
|
13.7 |
|
2.7 |
|
2.5 |
|
|||
|
|
|
|
|
|
|
|
|
|
|||
Total Corporate Bonds |
|
$ |
530.7 |
|
$ |
561.3 |
|
$ |
30.6 |
|
3.6 |
|
Corporate Bonds - Top Ten Holdings:
|
|
|
|
|
|
|
|
% of |
|
|||
|
|
Amortized |
|
Fair |
|
|
|
Total Corp. |
|
|||
|
|
Cost |
|
Value |
|
Gain |
|
Bonds |
|
|||
|
|
|
|
|
|
|
|
|
|
|||
ConocoPhillips |
|
$ |
19.3 |
|
$ |
20.5 |
|
$ |
1.2 |
|
4 |
% |
General Electric |
|
16.9 |
|
18.4 |
|
1.5 |
|
3 |
% |
|||
BA Covered Bond issuer |
|
16.0 |
|
17.1 |
|
1.1 |
|
3 |
% |
|||
Morgan Stanley |
|
14.6 |
|
14.9 |
|
0.3 |
|
3 |
% |
|||
Merrill Lynch |
|
14.0 |
|
14.6 |
|
0.6 |
|
3 |
% |
|||
BP Capital |
|
13.7 |
|
14.5 |
|
0.8 |
|
3 |
% |
|||
Verizon Communications Inc |
|
13.1 |
|
14.0 |
|
0.9 |
|
2 |
% |
|||
Wachovia Bank |
|
12.8 |
|
13.0 |
|
0.2 |
|
2 |
% |
|||
Diageo Capital |
|
11.9 |
|
12.6 |
|
0.7 |
|
2 |
% |
|||
Wyeth |
|
12.0 |
|
12.3 |
|
0.3 |
|
2 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|||
Total |
|
$ |
144.3 |
|
$ |
151.9 |
|
$ |
7.6 |
|
27 |
% |
Corporate Bonds - By Sector:
|
|
|
|
|
|
|
|
Option |
|
|||
|
|
|
|
|
|
|
|
Adjusted |
|
|||
|
|
Amortized |
|
Fair |
|
Gain |
|
Duration |
|
|||
|
|
Cost |
|
Value |
|
(Loss) |
|
(Years) |
|
|||
|
|
|
|
|
|
|
|
|
|
|||
Industrial |
|
$ |
279.9 |
|
$ |
298.2 |
|
$ |
18.3 |
|
4.0 |
|
Financial |
|
182.1 |
|
193.2 |
|
11.1 |
|
3.3 |
|
|||
Utility |
|
14.9 |
|
15.3 |
|
0.4 |
|
8.7 |
|
|||
All Others |
|
53.8 |
|
54.6 |
|
0.8 |
|
1.4 |
|
|||
Total |
|
$ |
530.7 |
|
$ |
561.3 |
|
$ |
30.6 |
|
3.6 |
|
MONTPELIER RE HOLDINGS LTD.
Reinsurance Recoverable by Rating (unaudited)
$ in millions
The A.M. Best ratings of our reinsurers related to reinsurance recoverable on paid and unpaid losses as of the dates presented are as follows:
|
|
Mar 31 |
|
Dec 31 |
|
Sept 30 |
|
Jun 30 |
|
Mar 31 |
|
|||||||||||||||
|
|
2010 |
|
2009 |
|
2009 |
|
2009 |
|
2009 |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Reinsurance recoverable on paid losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
A++ |
|
$ |
|
|
|
% |
$ |
|
|
|
% |
$ |
|
|
|
% |
$ |
|
|
|
% |
$ |
33.5 |
|
81 |
% |
A+ |
|
43.3 |
|
98 |
|
42.7 |
|
96 |
|
39.9 |
|
94 |
|
36.6 |
|
86 |
|
1.7 |
|
4 |
|
|||||
A |
|
0.3 |
|
1 |
|
1.7 |
|
4 |
|
1.9 |
|
4 |
|
0.5 |
|
1 |
|
0.7 |
|
2 |
|
|||||
A- |
|
0.3 |
|
1 |
|
0.1 |
|
|
|
0.8 |
|
2 |
|
5.7 |
|
13 |
|
5.6 |
|
13 |
|
|||||
Unrated (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
0.2 |
|
|
|
|
|
|
|
|||||
Recoverable under MUSIC guarantee (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
$ |
43.9 |
|
100 |
% |
$ |
44.5 |
|
100 |
% |
$ |
42.6 |
|
100 |
% |
$ |
43.0 |
|
100 |
% |
$ |
41.5 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Reinsurance recoverable on unpaid losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
A++ |
|
$ |
|
|
|
% |
$ |
0.4 |
|
1 |
% |
$ |
0.7 |
|
1 |
% |
$ |
1.5 |
|
2 |
% |
$ |
23.8 |
|
23 |
% |
A+ |
|
26.2 |
|
39 |
|
27.7 |
|
40 |
|
31.9 |
|
40 |
|
35.4 |
|
40 |
|
17.2 |
|
16 |
|
|||||
A |
|
29.9 |
|
44 |
|
30.1 |
|
43 |
|
33.6 |
|
43 |
|
36.5 |
|
40 |
|
37.4 |
|
36 |
|
|||||
A- |
|
1.9 |
|
3 |
|
2.3 |
|
3 |
|
2.6 |
|
3 |
|
3.1 |
|
4 |
|
6.7 |
|
6 |
|
|||||
Unrated (1) |
|
3.1 |
|
4 |
|
3.0 |
|
4 |
|
3.1 |
|
4 |
|
3.1 |
|
4 |
|
11.9 |
|
11 |
|
|||||
Recoverable under MUSIC guarantee (2) |
|
6.7 |
|
10 |
|
6.1 |
|
9 |
|
6.8 |
|
9 |
|
8.6 |
|
10 |
|
8.9 |
|
8 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
$ |
67.8 |
|
100 |
% |
$ |
69.6 |
|
100 |
% |
$ |
78.7 |
|
100 |
% |
$ |
88.2 |
|
100 |
% |
$ |
105.9 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total reinsurance recoverable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
A++ |
|
$ |
|
|
|
% |
$ |
0.4 |
|
|
% |
$ |
0.7 |
|
1 |
% |
$ |
1.5 |
|
1 |
% |
$ |
57.3 |
|
39 |
% |
A+ |
|
69.5 |
|
62 |
|
70.4 |
|
62 |
|
71.8 |
|
58 |
|
72.0 |
|
54 |
|
18.9 |
|
13 |
|
|||||
A |
|
30.2 |
|
27 |
|
31.8 |
|
28 |
|
35.5 |
|
29 |
|
37.0 |
|
28 |
|
38.1 |
|
26 |
|
|||||
A- |
|
2.2 |
|
2 |
|
2.4 |
|
2 |
|
3.4 |
|
3 |
|
8.8 |
|
7 |
|
12.3 |
|
8 |
|
|||||
Unrated (1) |
|
3.1 |
|
3 |
|
3.0 |
|
3 |
|
3.1 |
|
3 |
|
3.3 |
|
3 |
|
11.9 |
|
8 |
|
|||||
Recoverable under MUSIC guarantee (2) |
|
6.7 |
|
6 |
|
6.1 |
|
5 |
|
6.8 |
|
6 |
|
8.6 |
|
7 |
|
8.9 |
|
6 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
$ |
111.7 |
|
100 |
% |
$ |
114.1 |
|
100 |
% |
$ |
121.3 |
|
100 |
% |
$ |
131.2 |
|
100 |
% |
$ |
147.4 |
|
100 |
% |
(1) Obligation either fully collateralized or reinsurer has an S&P financial strength rating equivalent to an A.M. Best rating of A- or better.
(2) In support of MUSICs remaining loss reserves acquired in 2007, MUSIC benefits from a trust deposit maintained by the seller and reinsurance from third party reinsurers (each rated A- or better) which collectively exceeded the $6.7 million in remaining reserves at March 31, 2010. In addition, MUSIC has a full indemnification from the seller covering any adverse development from its past business.
MONTPELIER RE HOLDINGS LTD.
Fully Converted Book Value Per Share (unaudited)
$ in millions, except per share amounts
|
|
Mar 31 |
|
Dec 31 |
|
Sept 30 |
|
Jun 30 |
|
Mar 31 |
|
|||||
|
|
2010 |
|
2009 |
|
2009 |
|
2009 |
|
2009 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Numerator |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Book value per share and fully converted book value per share numerator (common shareholders equity) |
|
$ |
1,558.5 |
|
$ |
1,728.5 |
|
$ |
1,722.2 |
|
$ |
1,597.0 |
|
$ |
1,437.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Intangible asset |
|
(4.7 |
) |
(4.7 |
) |
(4.7 |
) |
(4.7 |
) |
(4.7 |
) |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Fully converted tangible book value per share numerator |
|
$ |
1,553.8 |
|
$ |
1,723.8 |
|
$ |
1,717.5 |
|
$ |
1,592.3 |
|
$ |
1,432.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Denominator (in shares) |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Book value per share denominator |
|
71,082,196 |
|
79,998,795 |
|
85,208,223 |
|
86,383,542 |
|
86,329,283 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Dilutive effect of share based obligations under benefit plans |
|
1,889,904 |
|
1,768,769 |
|
1,841,469 |
|
1,764,763 |
|
1,487,195 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Fully converted book value per share and fully converted tangible book value per share denominator |
|
72,972,100 |
|
81,767,564 |
|
87,049,692 |
|
88,148,305 |
|
87,816,478 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Book value per share |
|
$ |
21.93 |
|
$ |
21.61 |
|
$ |
20.21 |
|
$ |
18.49 |
|
$ |
16.65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Fully converted book value per share |
|
$ |
21.36 |
|
$ |
21.14 |
|
$ |
19.78 |
|
$ |
18.12 |
|
$ |
16.37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Fully converted tangible book value per share |
|
$ |
21.29 |
|
$ |
21.08 |
|
$ |
19.73 |
|
$ |
18.06 |
|
$ |
16.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Dividends declared per common share |
|
$ |
0.09 |
|
$ |
0.09 |
|
$ |
0.075 |
|
$ |
0.075 |
|
$ |
0.075 |
|
Change in FCBVPS (1) Quarter |
|
1.0 |
% |
6.8 |
% |
9.2 |
% |
10.7 |
% |
2.7 |
% |
|||||
Change in FCBVPS adj for dividends (2) Quarter |
|
1.5 |
% |
7.3 |
% |
9.6 |
% |
11.1 |
% |
3.2 |
% |
|||||
Change in FCBVPS adj for dividends (2) Rolling 12 months |
|
32.7 |
% |
34.6 |
% |
21.0 |
% |
0.9 |
% |
-6.2 |
% |
|||||
Annualized Change in FCBVPS adj for dividends (2) Since inception |
|
10.0 |
% |
|
|
|
|
|
|
|
|
(1) FCBVPS = Fully converted book value per share. See Page 14 for a discussion of our use of certain Financial Measures Disclosures.
(2) Change in FCBVPS adj for dividends is the internal rate of return of the increase in fully converted book value per share in the period plus dividends accrued. See Page 14 for a discussion of our use of certain Financial Measures Disclosures.
MONTPELIER RE HOLDINGS LTD.
Basic and Diluted Earnings Per Share (unaudited)
$ in millions, except per share amounts
|
|
Q1-10 |
|
Q4-09 |
|
Q3-09 |
|
Q2-09 |
|
Q1-09 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Numerator |
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating income(1) |
|
$ |
(23.1 |
) |
$ |
94.1 |
|
$ |
60.2 |
|
$ |
68.4 |
|
$ |
48.1 |
|
Adjustment to operating income related to participating securities |
|
|
|
(1.8 |
) |
(1.3 |
) |
(1.2 |
) |
(0.7 |
) |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating income per share numerator |
|
$ |
(23.1 |
) |
$ |
92.3 |
|
$ |
58.9 |
|
$ |
67.2 |
|
$ |
47.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net investment and foreign exchange gains and losses and income taxes |
|
33.0 |
|
10.6 |
|
87.3 |
|
90.6 |
|
(1.7 |
) |
|||||
Gain on early extinguishment of debt |
|
|
|
|
|
|
|
|
|
5.9 |
|
|||||
Adjustment to net income related to participating securities |
|
(0.1 |
) |
(0.3 |
) |
(1.6 |
) |
(1.6 |
) |
(0.1 |
) |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Earnings per share numerator |
|
$ |
9.8 |
|
$ |
102.6 |
|
$ |
144.6 |
|
$ |
156.2 |
|
$ |
51.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Other comprehensive income (loss) items |
|
(4.4 |
) |
(1.7 |
) |
(0.3 |
) |
3.5 |
|
(1.2 |
) |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Comprehensive income (loss) per share numerator |
|
$ |
5.4 |
|
$ |
100.9 |
|
$ |
144.3 |
|
$ |
159.7 |
|
$ |
50.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Denominator |
|
|
|
|
|
|
|
|
|
|
|
|||||
Average common shares outstanding |
|
73,481,396 |
|
82,121,535 |
|
85,991,769 |
|
86,365,456 |
|
90,275,950 |
|
|||||
Less: average common shares subject to the share issuance agreement |
|
|
|
|
|
|
|
|
|
(5,280,000 |
) |
|||||
Adjusted average common shares outstanding |
|
73,481,396 |
|
82,121,535 |
|
85,991,769 |
|
86,365,456 |
|
84,995,950 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Average vested participating securities |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Per share denominator |
|
73,481,396 |
|
82,121,535 |
|
85,991,769 |
|
86,365,456 |
|
84,995,950 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating income (loss) per share (1) |
|
$ |
(0.31 |
) |
$ |
1.12 |
|
$ |
0.69 |
|
$ |
0.78 |
|
$ |
0.56 |
|
Net income per share |
|
$ |
0.13 |
|
$ |
1.25 |
|
$ |
1.68 |
|
$ |
1.81 |
|
$ |
0.61 |
|
Comprehensive income per share |
|
$ |
0.07 |
|
$ |
1.23 |
|
$ |
1.68 |
|
$ |
1.85 |
|
$ |
0.59 |
|
(1) Excludes net investment and foreign exchange gains and losses and early extinguishment of debt. See Page 14 for a discussion of the use of certain Financial Measures Disclosures.
MONTPELIER RE HOLDINGS LTD.
Financial Measures Disclosures
Financial Measures Disclosures
In presenting our results, we have included and discussed certain financial measures. These measures are important for an understanding of our overall results of operations. We believe that these measures are important to investors and other interested parties, and that such persons benefit from having a consistent basis for comparison with other companies within the industry. However, these measures may not be comparable to similarly titled measures used by companies either inside or outside of the insurance industry.
In addition to presenting net income, management believes that showing operating income, which is net income excluding net investment and foreign exchange gains and losses and gain on early extinguishment of debt, enables investors and other users of our financial information to analyze our performance in a manner similar to how management analyzes the Companys performance. These measures focus on the underlying fundamentals of our operations without the influence of realized and unrealized gains and losses from investments, which is driven by the timing of the disposition of investments and the change in our investments market value and not by our operating performance, foreign exchange movements, income taxes or non-recurring transactions, which are unrelated to our underlying business. We believe that analysts and certain rating agencies who evaluate us exclude these items from their analysis for the same reasons.
This financial supplement also contains presentations of book value per share, fully converted book value per share and fully converted tangible book value per share. These calculations are based on total shareholders equity (as adjusted in certain circumstances as indicated on page 12) divided by our common shares outstanding in the case of book value per share and by the sum of our common shares and dilutive common share equivalents outstanding (assuming their issuance) in the case of fully converted book value per share and fully converted tangible book value per share. The Company believes that these measures, in particular fully converted book value per share, reflect the value attributable to a common share and are of interest to both our shareholders and the investment community.
This financial supplement also contains the presentation of change in fully converted book value adjusted for dividends. This calculation represents the change in fully converted book value per share in the period adjusted for dividends declared. We believe that this measure accurately reflects the return provided to our shareholders, as it takes into account the effect of all dilutive securities and the effect of dividends.