In line with the hurricane losses it announced earlier, Montpelier reported its 3rd quarter results:
Montpelier Re Holdings Ltd. (the "Company") reported an operating loss of $55 million (or $0.65 per share), which excludes net investment and foreign exchange gains and losses, income taxes and extraordinary gains, for the quarter ended September 30, 2008. The Company’s operating loss reflects a combined net financial impact from Hurricanes Gustav and Ike of $130 million, which is in line with our prior announcement.
The Company reported a net loss of $142 million (or $1.69 per share) for the quarter ended September 30, 2008. The Company’s net loss reflects $27 million of net realized losses, $48 million of net unrealized losses and $13 million of net foreign exchange losses. The Company noted that, as a result of the adoption of FAS 159 in January 2007, it reports virtually all of its net unrealized investment gains and losses, whether considered temporary or permanent, as a component of net income.
Fully converted book value per share was $16.61 as of September 30, 2008, a decrease of 8.5% for the quarter and 5.8% for the year, inclusive of dividends.
Not great results but it's reasonable given the low hurricane losses. It's difficult to say what the actual situation happens to be given that around half of the reported losses are unrealized portfolio losses. It's not clear if these mark-to-market losses will reverse. The stock has totally collapsed this year (although it's up today) but I don't think it has anything to do with the performance. Tags: Montpelier Re (MRH)