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Montpelier Re Holdings Ltd. Reports Operating Results (10-Q)

November 05, 2012 | About:
10qk

10qk

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Montpelier Re Holdings Ltd. (MRH) filed Quarterly Report for the period ended 2012-09-30.

Montpelier Re Holdings Ltd has a market cap of $1.31 billion; its shares were traded at around $21.55 with a P/E ratio of 17 and P/S ratio of 1.9. The dividend yield of Montpelier Re Holdings Ltd stocks is 1.8%.
This is the annual revenues and earnings per share of MRH over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of MRH.


Highlight of Business Operations:

Sales of investments totaled $2,869.1 million and $1,928.4 million for the nine month periods ended September 30, 2012 and 2011, respectively. Maturities, calls and paydowns of investments totaled $464.8 million and $329.0 million for the nine month periods ended September 30, 2012 and 2011, respectively. There were no non-cash exchanges or involuntary sales of investment securities during these periods.

The following table outlines the Company’s computation of its basic and diluted earnings (loss) per Common Share for the three and nine month periods ended September 30, 2012 and 2011:

Profit commissions, which are paid by assuming companies to ceding companies in the event of favorable loss experience, change as Montpelier Bermuda’s estimates of loss and LAE fluctuate. Montpelier Bermuda pays profit commissions on certain assumed reinsurance contracts, and receives profit commission on certain ceded reinsurance contracts. Increases (decreases) in net profit commission expense, which are accrued based on the estimated results of the subject contracts, totaled $(1.5) million and $0.2 million for the third quarter of 2012 and 2011, respectively, and $(4.1) million and $0.3 million for the nine month periods ended September 30, 2012 and 2011, respectively. Only a few of Montpelier Bermuda’s assumed reinsurance contracts contain profit commission clauses and the terms of any profit commissions are specific to the individual contracts and vary as a percentage of the contract results.

Profit commissions, which are paid by assuming companies to ceding companies in the event of a favorable loss experience, change as Montpelier Syndicate 5151’s estimates of loss and LAE fluctuate. Increases in profit commissions, which are accrued based on the estimated results of the subject contract, totaled $0.6 million and $0.9 million for the three month periods ended September 30, 2012 and 2011, respectively, and $0.4 million and $2.1 million for the nine month periods ended September 30, 2012 and 2011, respectively.

The significant increase in the MUSIC Run-Off segment’s acquisition cost ratio for the three and nine months ended September 30, 2012, versus that of the comparable 2011 periods, is due to the ceding commission (the “MUSIC Ceding Commission”) associated with the business we have assumed from Selective in connection with the MUSIC Sale. The MUSIC Ceding Commission was designed to reimburse Selective for its general and administrative costs incurred in support of the business it cedes to us. As a result, the MUSIC Run-Off segment is not expected to incur any general and administrative expenses for 2012 and beyond. Prior to the MUSIC Sale, the MUSIC Run-Off segment’s acquisition cost ratio consisted of commissions, premium taxes, excise taxes and profit commissions.

Read the The complete Report

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