MONTPELIER’S Q1 INCOME FALLS ON LOWER INVESTMENT RETURNS

Bermudian re/insurer Montpelier Re Holdings saw its Q1 net income drop 2.4% to $89.9m, as lower investment returns and higher income attributable to non-controlling interest offset improved underwriting. Underwriting income climbed 29% to $77.8m, as earned premiums fell 1.8% to $156.8m and incurred losses fell 46% to $27.4m. The combined ratio improved by 12 full points to 50.4%. Offsetting that improvement, investment income fell 21% to $12.9m, returns on derivatives swung to $5.1m in losses from year-earlier gains of $4.6m and income attributable to non-controlling interest rose to $9m from $1.2m. The group saw a swing to $22.7m in realized and unrealized gains from losses of $700,000 but that was offset by a swing to $1.8m in foreign exchange losses from gains of $21.1m.