Attached files
| file | filename |
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| 8-K - 8-K - MONTPELIER RE HOLDINGS LTD | a14-5155_18k.htm |
| EX-99.1 - EX-99.1 - MONTPELIER RE HOLDINGS LTD | a14-5155_1ex99d1.htm |
Exhibit 99.2
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Financial Supplement December 31, 2013 |
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contact: Michael Paquette, CFO telephone: +1(441) 278 5012 email: mike.paquette@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 the Company’s control. See “Risk Factors” contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2012, as filed with the Securities and Exchange Commission, for specific important factors that could cause actual results to differ materially from those contained in forward- looking statements. In particular, statements using words such as “may,” “should,” “estimate,” “expect,” “anticipate,” “intend,” “believe,” “predict,” “potential,” or words of similar meaning generally involve forward-looking statements.
Important events and uncertainties that could cause our actual results, future dividends on, or repurchases of, our common shares or preferred shares to differ include, but are not limited to: market conditions affecting the prices of our common shares or preferred shares; the possibility of severe or unanticipated losses from natural or man-made catastrophes, including those that may result from changes in climate conditions, including, but not limited to, global temperatures and expected sea levels; the effectiveness of our loss limitation methods; our dependence on principal employees; our ability to effectively execute the business plans of the Company, its subsidiaries and any new ventures that it may enter into; the cyclical nature of the insurance and reinsurance business; the levels of new and renewal business achieved; opportunities to increase writings in our core property and specialty insurance and reinsurance 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 written premium 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, including our dependency on the loss information we receive from cedants and brokers; 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 the impact of governmental legislation or regulation, including changes in tax laws in the jurisdictions where we conduct business; 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 operating subsidiaries; and the impact of foreign currency and interest rate fluctuations.
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
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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 Insurance and Reinsurance Premiums Written by Line of Business |
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5 |
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Net Insurance and Reinsurance Premiums Earned by Line of Business |
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6 |
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Natural Catastrophe Risk Management |
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7 |
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Rollforward of Loss and LAE Reserves |
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8 |
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Losses and Loss Ratios by Line of Business |
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9 |
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Consolidated Investment Portfolio |
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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 Common Share |
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13 |
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Income (Loss) Available to the Company’s Common Shareholders Per Share |
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14 |
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Non-GAAP Financial Measures |
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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Year ended |
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2013 |
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2012 |
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% change |
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2013 |
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2012 |
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% change |
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Selected financial highlights |
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Gross insurance and reinsurance premiums written |
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$ |
87.6 |
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$ |
94.4 |
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-7 |
% |
$ |
706.0 |
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$ |
735.3 |
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-4 |
% |
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Net insurance and reinsurance premiums written |
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77.8 |
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83.4 |
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-7 |
% |
603.1 |
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615.7 |
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-2 |
% | ||||
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Net insurance and reinsurance premiums earned |
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148.0 |
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156.6 |
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-5 |
% |
599.6 |
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616.5 |
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-3 |
% | ||||
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Net investment income |
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14.2 |
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16.8 |
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-15 |
% |
64.0 |
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67.1 |
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-5 |
% | ||||
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Underwriting income (loss) |
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89.8 |
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(25.0 |
) |
n/m |
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263.4 |
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117.3 |
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125 |
% | ||||
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Operating income (loss) avail. to the Company’s common shareholders (1) |
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90.4 |
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(16.9 |
) |
n/m |
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277.5 |
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150.9 |
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84 |
% | ||||
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Net income (loss) avail. to the Company’s common shareholders |
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73.4 |
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(26.6 |
) |
n/m |
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191.2 |
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214.3 |
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-11 |
% | ||||
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Comprehensive income (loss) avail. to the Company |
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77.7 |
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(23.0 |
) |
n/m |
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205.4 |
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228.4 |
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-10 |
% | ||||
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Total assets |
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3,758.5 |
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3,810.1 |
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-1 |
% | ||||
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Common shareholders’ equity |
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1,492.1 |
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1,479.4 |
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1 |
% | ||||
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Total shareholders’ equity available to the Company |
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1,642.1 |
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1,629.4 |
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1 |
% | ||||
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Amounts per common share |
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Operating income (loss) avail. to the Company’s common shareholders (2) |
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$ |
1.78 |
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$ |
(0.31 |
) |
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$ |
5.24 |
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$ |
2.58 |
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Net income (loss) avail. to the Company’s common shareholders (2) |
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1.44 |
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(0.48 |
) |
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3.61 |
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3.67 |
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Fully converted book value (3) |
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29.42 |
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26.14 |
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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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30.2 |
% |
98.6 |
% |
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45.2 |
% |
60.6 |
% |
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Prior year |
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-28.6 |
% |
-16.9 |
% |
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-24.1 |
% |
-14.2 |
% |
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Loss and loss adjustment expense ratio |
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1.6 |
% |
81.7 |
% |
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21.1 |
% |
46.4 |
% |
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Acquisition cost ratio |
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14.4 |
% |
15.8 |
% |
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15.1 |
% |
15.7 |
% |
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General and administrative expense ratio |
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23.4 |
% |
18.5 |
% |
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19.9 |
% |
18.9 |
% |
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Combined ratio |
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39.4 |
% |
116.0 |
% |
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56.1 |
% |
81.0 |
% |
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Operating income / Average common shareholders’ equity |
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6.2 |
% |
-1.1 |
% |
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18.8 |
% |
10.3 |
% |
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Change in FCBVPCS adjusted for dividends (4) |
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5.3 |
% |
-1.3 |
% |
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14.3 |
% |
17.0 |
% |
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(1) Excludes net investment and foreign exchange gains and losses and any significant non-recurring items.
(2) See Page 13 for calculation and Page 14 for information regarding our use of Non-GAAP Financial Measures.
(3) See Page 12 for calculation and Page 14 for information regarding our use of Non-GAAP Financial Measures.
(4) Change in FCBVPCS adjusted for dividends represents the change in fully converted book value per common share after taking into account dividends declared on common shares during the period. See page 14 for information regarding our use of Non-GAAP Financial Measures.
n/m - not meaningful
MONTPELIER RE HOLDINGS LTD.
Summary Consolidated Balance Sheets (unaudited)
in millions, except per share amounts
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December 31 |
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September 30 |
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June 30 |
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March 31 |
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December 31 |
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2013 |
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2013 |
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2013 |
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2013 |
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2012 |
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ASSETS |
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Investments, cash and cash equivalents |
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$ |
3,309.8 |
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$ |
3,241.0 |
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$ |
3,256.7 |
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$ |
3,240.5 |
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$ |
3,319.4 |
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Insurance and reinsurance premiums receivable |
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203.4 |
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274.3 |
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341.3 |
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281.4 |
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222.9 |
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Deferred insurance and reinsurance acquisition costs |
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51.5 |
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57.6 |
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60.2 |
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52.3 |
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48.4 |
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Reinsurance recoverable on paid and unpaid losses |
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67.2 |
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81.1 |
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107.1 |
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91.5 |
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109.4 |
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Unearned reinsurance premiums ceded |
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22.6 |
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38.8 |
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48.9 |
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36.1 |
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22.2 |
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Unsettled sales of investments |
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58.8 |
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244.9 |
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79.9 |
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306.9 |
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48.9 |
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Other assets |
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45.2 |
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39.3 |
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41.6 |
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42.1 |
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38.9 |
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Total Assets |
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$ |
3,758.5 |
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$ |
3,977.0 |
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$ |
3,935.7 |
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$ |
4,050.8 |
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$ |
3,810.1 |
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LIABILITIES |
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Loss and loss adjustment expense reserves |
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$ |
881.6 |
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$ |
961.1 |
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$ |
1,003.7 |
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$ |
1,035.3 |
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$ |
1,112.4 |
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Unearned insurance and reinsurance premiums |
|
276.7 |
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360.2 |
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413.9 |
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341.9 |
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270.1 |
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Debt |
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399.2 |
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399.1 |
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399.1 |
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399.1 |
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399.1 |
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Liability for investment securities sold short |
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155.6 |
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103.3 |
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110.9 |
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126.8 |
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138.8 |
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Unsettled purchases of investments |
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58.8 |
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334.0 |
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206.9 |
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327.9 |
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148.7 |
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Other liabilities |
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99.6 |
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124.8 |
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131.9 |
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110.9 |
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111.6 |
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Total Liabilities |
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1,871.5 |
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2,282.5 |
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2,266.4 |
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2,341.9 |
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2,180.7 |
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SHAREHOLDERS’ EQUITY |
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Preferred shareholders’ equity |
|
150.0 |
|
150.0 |
|
150.0 |
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150.0 |
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150.0 |
| |||||
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Common shareholders’ equity |
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1,492.1 |
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1,443.6 |
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1,420.0 |
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1,526.3 |
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1,479.4 |
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Total Shareholders’ Equity available to the Company |
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1,642.1 |
|
1,593.6 |
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1,570.0 |
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1,676.3 |
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1,629.4 |
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Non-controlling interest |
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244.9 |
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100.9 |
|
99.3 |
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32.6 |
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— |
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Total Shareholders’ Equity |
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1,887.0 |
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1,694.5 |
|
1,669.3 |
|
1,708.9 |
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1,629.4 |
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Total Liabilities and Shareholders’ Equity |
|
$ |
3,758.5 |
|
$ |
3,977.0 |
|
$ |
3,935.7 |
|
$ |
4,050.8 |
|
$ |
3,810.1 |
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Fully converted book value per common share (1) |
|
$ |
29.42 |
|
$ |
28.06 |
|
$ |
27.03 |
|
$ |
27.49 |
|
$ |
26.14 |
|
(1) See Page 12 for calculation and Page 14 for information regarding our use of Non-GAAP Financial Measures.
MONTPELIER RE HOLDINGS LTD.
Summary Consolidated Income Statements (unaudited)
$ in millions, except per share amounts
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Year |
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Year |
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Q4-13 |
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Q3-13 |
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Q2-13 |
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Q1-13 |
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Q4-12 |
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2013 |
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2012 |
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Underwriting revenues |
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Gross insurance and reinsurance premiums written |
|
$ |
87.6 |
|
$ |
114.5 |
|
$ |
242.7 |
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$ |
261.2 |
|
$ |
94.4 |
|
$ |
706.0 |
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$ |
735.3 |
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Reinsurance premiums ceded |
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(9.8 |
) |
(13.0 |
) |
(44.9 |
) |
(35.2 |
) |
(11.0 |
) |
(102.9 |
) |
(119.6 |
) | |||||||
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Net insurance and reinsurance premiums written |
|
77.8 |
|
101.5 |
|
197.8 |
|
226.0 |
|
83.4 |
|
603.1 |
|
615.7 |
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Gross insurance and reinsurance premiums earned |
|
174.1 |
|
176.7 |
|
171.0 |
|
180.6 |
|
193.0 |
|
702.4 |
|
736.3 |
| |||||||
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Earned reinsurance premiums ceded |
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(26.1 |
) |
(23.7 |
) |
(32.1 |
) |
(20.9 |
) |
(36.4 |
) |
(102.8 |
) |
(119.8 |
) | |||||||
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Net insurance and reinsurance premiums earned |
|
148.0 |
|
153.0 |
|
138.9 |
|
159.7 |
|
156.6 |
|
599.6 |
|
616.5 |
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Underwriting expenses |
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Loss and loss adjustment expenses - current year |
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(44.6 |
) |
(62.8 |
) |
(94.5 |
) |
(69.0 |
) |
(154.2 |
) |
(270.9 |
) |
(373.8 |
) | |||||||
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Loss and loss adjustment expenses - prior year |
|
42.3 |
|
36.0 |
|
47.7 |
|
18.4 |
|
26.3 |
|
144.4 |
|
87.4 |
| |||||||
|
Insurance and reinsurance acquisition costs |
|
(21.3 |
) |
(24.5 |
) |
(22.6 |
) |
(22.1 |
) |
(24.7 |
) |
(90.5 |
) |
(96.6 |
) | |||||||
|
Operating expenses |
|
(19.3 |
) |
(20.6 |
) |
(19.5 |
) |
(20.4 |
) |
(19.6 |
) |
(79.8 |
) |
(79.4 |
) | |||||||
|
Incentive compensation expenses |
|
(15.3 |
) |
(10.7 |
) |
(6.9 |
) |
(6.5 |
) |
(9.4 |
) |
(39.4 |
) |
(36.8 |
) | |||||||
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| |||||||
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Underwriting income (loss) |
|
89.8 |
|
70.4 |
|
43.1 |
|
60.1 |
|
(25.0 |
) |
263.4 |
|
117.3 |
| |||||||
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| |||||||
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Net investment income |
|
14.2 |
|
16.7 |
|
16.7 |
|
16.4 |
|
16.8 |
|
64.0 |
|
67.1 |
| |||||||
|
Other revenue |
|
(0.2 |
) |
— |
|
— |
|
— |
|
— |
|
(0.2 |
) |
0.8 |
| |||||||
|
Interest and other financing expenses |
|
(4.7 |
) |
(4.7 |
) |
(4.7 |
) |
(4.7 |
) |
(5.9 |
) |
(18.8 |
) |
(20.4 |
) | |||||||
|
Net realized and unrealized investment gains (losses) |
|
8.1 |
|
4.6 |
|
(61.2 |
) |
(0.7 |
) |
3.5 |
|
(49.2 |
) |
82.4 |
| |||||||
|
Net foreign currency gains (losses) |
|
(9.4 |
) |
(22.3 |
) |
(5.3 |
) |
21.1 |
|
(2.3 |
) |
(15.9 |
) |
(12.8 |
) | |||||||
|
Net income (loss) from derivative instruments |
|
(11.0 |
) |
(6.7 |
) |
(12.2 |
) |
4.6 |
|
(1.1 |
) |
(25.3 |
) |
3.2 |
| |||||||
|
Non-recurring, non-operating expenses |
|
(7.5 |
) |
— |
|
— |
|
— |
|
(9.7 |
) |
(7.5 |
) |
(9.7 |
) | |||||||
|
Income tax benefit (provision) |
|
— |
|
(0.1 |
) |
0.4 |
|
(0.2 |
) |
0.4 |
|
0.1 |
|
(0.3 |
) | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Net income (loss) |
|
79.3 |
|
57.9 |
|
(23.2 |
) |
96.6 |
|
(23.3 |
) |
210.6 |
|
227.6 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Net income attributable to non-controlling interest |
|
(2.6 |
) |
(1.6 |
) |
(0.7 |
) |
(1.2 |
) |
— |
|
(6.1 |
) |
— |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Net income (loss) available to the Company |
|
76.7 |
|
56.3 |
|
(23.9 |
) |
95.4 |
|
(23.3 |
) |
204.5 |
|
227.6 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Dividends declared on non-cumulative preferred shares |
|
(3.3 |
) |
(3.3 |
) |
(3.4 |
) |
(3.3 |
) |
(3.3 |
) |
(13.3 |
) |
(13.3 |
) | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Net income (loss) available to the Company’s common shareholders |
|
$ |
73.4 |
|
$ |
53.0 |
|
$ |
(27.3 |
) |
$ |
92.1 |
|
$ |
(26.6 |
) |
$ |
191.2 |
|
$ |
214.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Net income (loss) |
|
$ |
79.3 |
|
$ |
57.9 |
|
$ |
(23.2 |
) |
$ |
96.6 |
|
$ |
(23.3 |
) |
$ |
210.6 |
|
$ |
227.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Net change in foreign currency translation |
|
1.0 |
|
3.1 |
|
0.3 |
|
(3.5 |
) |
0.3 |
|
0.9 |
|
0.8 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Comprehensive income (loss) |
|
80.3 |
|
61.0 |
|
(22.9 |
) |
93.1 |
|
(23.0 |
) |
211.5 |
|
228.4 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Net income attributable to non-controlling interest |
|
(2.6 |
) |
(1.6 |
) |
(0.7 |
) |
(1.2 |
) |
— |
|
(6.1 |
) |
— |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Comprehensive income (loss) available to the Company |
|
$ |
77.7 |
|
$ |
59.4 |
|
$ |
(23.6 |
) |
$ |
91.9 |
|
$ |
(23.0 |
) |
$ |
205.4 |
|
$ |
228.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Net income (loss) available to the Company’s common shareholders |
|
$ |
73.4 |
|
$ |
53.0 |
|
$ |
(27.3 |
) |
$ |
92.1 |
|
$ |
(26.6 |
) |
$ |
191.2 |
|
$ |
214.3 |
|
|
Add (subtract): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Net realized and unrealized investment (gains) losses |
|
(8.1 |
) |
(4.6 |
) |
61.2 |
|
0.7 |
|
(3.5 |
) |
49.2 |
|
(82.4 |
) | |||||||
|
Net (gains) losses from investment-related derivative instruments |
|
6.5 |
|
3.6 |
|
7.9 |
|
(6.8 |
) |
0.4 |
|
11.2 |
|
— |
| |||||||
|
Net foreign currency (gains) losses |
|
9.4 |
|
22.3 |
|
5.3 |
|
(21.1 |
) |
2.3 |
|
15.9 |
|
12.8 |
| |||||||
|
Net (gains) losses from fx-related derivative instruments |
|
1.7 |
|
(2.8 |
) |
2.5 |
|
1.1 |
|
0.8 |
|
2.5 |
|
(3.5 |
) | |||||||
|
Non-recurring, non-operating expenses |
|
7.5 |
|
— |
|
— |
|
— |
|
9.7 |
|
7.5 |
|
9.7 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Operating income (loss) available to the Company’s common shareholders |
|
$ |
90.4 |
|
$ |
71.5 |
|
$ |
49.6 |
|
$ |
66.0 |
|
$ |
(16.9 |
) |
$ |
277.5 |
|
$ |
150.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Loss and loss adjustment expense ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Current year |
|
30.2 |
% |
41.0 |
% |
68.0 |
% |
43.2 |
% |
98.6 |
% |
45.2 |
% |
60.6 |
% | |||||||
|
Prior year |
|
-28.6 |
% |
-23.5 |
% |
-34.3 |
% |
-11.5 |
% |
-16.9 |
% |
-24.1 |
% |
-14.2 |
% | |||||||
|
Loss and loss adjustment expense ratio |
|
1.6 |
% |
17.5 |
% |
33.7 |
% |
31.7 |
% |
81.7 |
% |
21.1 |
% |
46.4 |
% | |||||||
|
Acquisition costs ratio |
|
14.4 |
% |
16.0 |
% |
16.3 |
% |
13.9 |
% |
15.8 |
% |
15.1 |
% |
15.7 |
% | |||||||
|
Operating expenses |
|
13.0 |
% |
13.4 |
% |
14.0 |
% |
12.7 |
% |
12.5 |
% |
13.3 |
% |
12.9 |
% | |||||||
|
Incentive compensation expenses |
|
10.4 |
% |
7.0 |
% |
5.0 |
% |
4.1 |
% |
6.0 |
% |
6.6 |
% |
6.0 |
% | |||||||
|
Combined ratio |
|
39.4 |
% |
53.9 |
% |
69.0 |
% |
62.4 |
% |
116.0 |
% |
56.1 |
% |
81.0 |
% | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Operating income (loss) avail. to the Company’s common shareholders per share (1) |
|
$ |
1.78 |
|
$ |
1.38 |
|
$ |
0.93 |
|
$ |
1.18 |
|
$ |
(0.31 |
) |
$ |
5.24 |
|
$ |
2.58 |
|
|
Net income (loss) avail. to the Company’s common shareholders per share (1) |
|
$ |
1.44 |
|
$ |
1.02 |
|
$ |
(0.52 |
) |
$ |
1.65 |
|
$ |
(0.48 |
) |
$ |
3.61 |
|
$ |
3.67 |
|
|
Operating income (loss) / Average common shareholders’ equity |
|
6.2 |
% |
5.0 |
% |
3.4 |
% |
4.4 |
% |
-1.1 |
% |
18.8 |
% |
10.3 |
% | |||||||
(1) See Page 13 for calculation and Page 14 for information regarding our use of Non-GAAP Financial Measures.
MONTPELIER RE HOLDINGS LTD.
Net Premiums Written by Line of Business
(unaudited)
in millions
|
|
|
|
|
|
|
|
|
|
|
|
|
Year |
|
Year |
| |||||||
|
Net Insurance and Reinsurance Premiums Written |
|
Q4-13 |
|
Q3-13 |
|
Q2-13 |
|
Q1-13 |
|
Q4-12 |
|
2013 |
|
2012 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Montpelier Bermuda |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Property Catastrophe - Treaty Reinsurance |
|
$ |
1.9 |
|
$ |
17.4 |
|
$ |
95.6 |
|
$ |
98.3 |
|
$ |
10.2 |
|
$ |
213.2 |
|
$ |
245.2 |
|
|
Property Specialty - Treaty Reinsurance |
|
12.8 |
|
13.5 |
|
12.0 |
|
12.0 |
|
11.7 |
|
50.3 |
|
46.9 |
| |||||||
|
Other Specialty - Treaty Reinsurance |
|
8.9 |
|
12.1 |
|
14.9 |
|
31.1 |
|
12.2 |
|
67.0 |
|
66.4 |
| |||||||
|
Property & Specialty Individual Risk |
|
3.8 |
|
4.9 |
|
5.8 |
|
8.6 |
|
(1.0 |
) |
23.1 |
|
22.2 |
| |||||||
|
|
|
$ |
27.4 |
|
$ |
47.9 |
|
$ |
128.3 |
|
$ |
150.0 |
|
$ |
33.1 |
|
$ |
353.6 |
|
$ |
380.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Montpelier at Lloyd’s |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Property Catastrophe - Treaty Reinsurance |
|
$ |
0.8 |
|
$ |
(0.1 |
) |
$ |
0.9 |
|
$ |
2.5 |
|
$ |
2.0 |
|
$ |
4.1 |
|
$ |
11.2 |
|
|
Property Specialty - Treaty Reinsurance |
|
(0.5 |
) |
1.8 |
|
0.7 |
|
2.6 |
|
0.5 |
|
4.6 |
|
6.5 |
| |||||||
|
Other Specialty - Treaty Reinsurance |
|
18.1 |
|
24.5 |
|
15.1 |
|
21.4 |
|
17.3 |
|
79.1 |
|
81.6 |
| |||||||
|
Property & Specialty Individual Risk |
|
30.7 |
|
26.2 |
|
32.9 |
|
34.6 |
|
30.1 |
|
124.4 |
|
130.8 |
| |||||||
|
|
|
$ |
49.1 |
|
$ |
52.4 |
|
$ |
49.6 |
|
$ |
61.1 |
|
$ |
49.9 |
|
$ |
212.2 |
|
$ |
230.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Collateralized Reinsurance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Property Catastrophe - Treaty Reinsurance |
|
$ |
1.5 |
|
$ |
1.1 |
|
$ |
19.6 |
|
$ |
14.6 |
|
$ |
— |
|
$ |
36.8 |
|
$ |
2.4 |
|
|
Property Specialty - Treaty Reinsurance |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||||
|
Other Specialty - Treaty Reinsurance |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||||
|
Property & Specialty Individual Risk |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||||
|
|
|
$ |
1.5 |
|
$ |
1.1 |
|
$ |
19.6 |
|
$ |
14.6 |
|
$ |
— |
|
$ |
36.8 |
|
$ |
2.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
MUSIC Run-Off |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Property Catastrophe - Treaty Reinsurance |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
Property Specialty - Treaty Reinsurance |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||||
|
Other Specialty - Treaty Reinsurance |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||||
|
Property & Specialty Individual Risk |
|
(0.2 |
) |
0.1 |
|
0.3 |
|
0.3 |
|
0.4 |
|
0.5 |
|
2.5 |
| |||||||
|
|
|
$ |
(0.2 |
) |
$ |
0.1 |
|
$ |
0.3 |
|
$ |
0.3 |
|
$ |
0.4 |
|
$ |
0.5 |
|
$ |
2.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Intercompany Reinsurance Eliminations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Property Catastrophe - Treaty Reinsurance |
|
$ |
— |
|
$ |
(0.1 |
) |
$ |
0.3 |
|
$ |
0.6 |
|
$ |
— |
|
$ |
0.8 |
|
$ |
2.6 |
|
|
Property Specialty - Treaty Reinsurance |
|
— |
|
— |
|
(0.3 |
) |
— |
|
— |
|
(0.3 |
) |
— |
| |||||||
|
Other Specialty - Treaty Reinsurance |
|
— |
|
— |
|
(0.1 |
) |
— |
|
— |
|
(0.1 |
) |
(0.4 |
) | |||||||
|
Property & Specialty Individual Risk |
|
— |
|
0.1 |
|
0.1 |
|
(0.6 |
) |
— |
|
(0.4 |
) |
(2.2 |
) | |||||||
|
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Consolidated Total NWP |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Property Catastrophe - Treaty Reinsurance |
|
$ |
4.2 |
|
$ |
18.3 |
|
$ |
116.4 |
|
$ |
116.0 |
|
$ |
12.2 |
|
$ |
254.9 |
|
$ |
261.4 |
|
|
Property Specialty - Treaty Reinsurance |
|
12.3 |
|
15.3 |
|
12.4 |
|
14.6 |
|
12.2 |
|
54.6 |
|
53.4 |
| |||||||
|
Other Specialty - Treaty Reinsurance |
|
27.0 |
|
36.6 |
|
29.9 |
|
52.5 |
|
29.5 |
|
146.0 |
|
147.6 |
| |||||||
|
Property & Specialty Individual Risk |
|
34.3 |
|
31.3 |
|
39.1 |
|
42.9 |
|
29.5 |
|
147.6 |
|
153.3 |
| |||||||
|
|
|
$ |
77.8 |
|
$ |
101.5 |
|
$ |
197.8 |
|
$ |
226.0 |
|
$ |
83.4 |
|
$ |
603.1 |
|
$ |
615.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Reinstatements included in NWP |
|
$ |
0.1 |
|
$ |
2.8 |
|
$ |
(3.8 |
) |
$ |
2.4 |
|
$ |
6.9 |
|
$ |
1.5 |
|
$ |
13.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Consolidated 12 Mo. Rolling NWP |
|
$ |
603.1 |
|
$ |
608.7 |
|
$ |
608.7 |
|
$ |
621.7 |
|
$ |
615.7 |
|
|
|
|
| ||
MONTPELIER RE HOLDINGS LTD.
Net Premiums Earned by Line of Business
(unaudited)
in millions
|
|
|
|
|
|
|
|
|
|
|
|
|
Year |
|
Year |
| |||||||
|
Net Insurance and Reinsurance Premiums Earned |
|
Q4-13 |
|
Q3-13 |
|
Q2-13 |
|
Q1-13 |
|
Q4-12 |
|
2013 |
|
2012 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Montpelier Bermuda |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Property Catastrophe - Treaty Reinsurance |
|
$ |
52.1 |
|
$ |
56.2 |
|
$ |
59.2 |
|
$ |
62.0 |
|
$ |
60.9 |
|
$ |
229.5 |
|
$ |
235.4 |
|
|
Property Specialty - Treaty Reinsurance |
|
12.0 |
|
12.2 |
|
11.7 |
|
11.4 |
|
11.8 |
|
47.3 |
|
44.5 |
| |||||||
|
Other Specialty - Treaty Reinsurance |
|
14.6 |
|
15.7 |
|
10.4 |
|
18.9 |
|
17.8 |
|
59.6 |
|
63.7 |
| |||||||
|
Property & Specialty Individual Risk |
|
5.4 |
|
5.7 |
|
2.8 |
|
8.9 |
|
3.4 |
|
22.8 |
|
25.9 |
| |||||||
|
|
|
$ |
84.1 |
|
$ |
89.8 |
|
$ |
84.1 |
|
$ |
101.2 |
|
$ |
93.9 |
|
$ |
359.2 |
|
$ |
369.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Montpelier at Lloyd’s |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Property Catastrophe - Treaty Reinsurance |
|
$ |
1.6 |
|
$ |
0.9 |
|
$ |
1.5 |
|
$ |
0.1 |
|
$ |
4.5 |
|
$ |
4.1 |
|
$ |
11.6 |
|
|
Property Specialty - Treaty Reinsurance |
|
0.7 |
|
1.3 |
|
1.7 |
|
1.4 |
|
2.1 |
|
5.1 |
|
7.0 |
| |||||||
|
Other Specialty - Treaty Reinsurance |
|
20.2 |
|
23.5 |
|
17.3 |
|
22.0 |
|
20.3 |
|
83.0 |
|
79.2 |
| |||||||
|
Property & Specialty Individual Risk |
|
32.9 |
|
29.2 |
|
28.5 |
|
30.9 |
|
32.9 |
|
121.5 |
|
119.5 |
| |||||||
|
|
|
$ |
55.4 |
|
$ |
54.9 |
|
$ |
49.0 |
|
$ |
54.4 |
|
$ |
59.8 |
|
$ |
213.7 |
|
$ |
217.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Collateralized Reinsurance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Property Catastrophe - Treaty Reinsurance |
|
$ |
8.7 |
|
$ |
8.2 |
|
$ |
5.5 |
|
$ |
3.8 |
|
$ |
0.9 |
|
$ |
26.2 |
|
$ |
2.4 |
|
|
Property Specialty - Treaty Reinsurance |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||||
|
Other Specialty - Treaty Reinsurance |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||||
|
Property & Specialty Individual Risk |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||||
|
|
|
$ |
8.7 |
|
$ |
8.2 |
|
$ |
5.5 |
|
$ |
3.8 |
|
$ |
0.9 |
|
$ |
26.2 |
|
$ |
2.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
MUSIC Run-Off |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Property Catastrophe - Treaty Reinsurance |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
Property Specialty - Treaty Reinsurance |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||||
|
Other Specialty - Treaty Reinsurance |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
| |||||||
|
Property & Specialty Individual Risk |
|
(0.2 |
) |
0.1 |
|
0.3 |
|
0.3 |
|
2.0 |
|
0.5 |
|
27.3 |
| |||||||
|
|
|
$ |
(0.2 |
) |
$ |
0.1 |
|
$ |
0.3 |
|
$ |
0.3 |
|
$ |
2.0 |
|
$ |
0.5 |
|
$ |
27.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Intercompany Reinsurance Eliminations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Property Catastrophe - Treaty Reinsurance |
|
$ |
— |
|
$ |
(0.1 |
) |
$ |
0.2 |
|
$ |
0.6 |
|
$ |
— |
|
$ |
0.7 |
|
$ |
0.2 |
|
|
Property Specialty - Treaty Reinsurance |
|
— |
|
— |
|
(0.3 |
) |
— |
|
— |
|
(0.3 |
) |
— |
| |||||||
|
Other Specialty - Treaty Reinsurance |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
0.7 |
| |||||||
|
Property & Specialty Individual Risk |
|
— |
|
0.1 |
|
0.1 |
|
(0.6 |
) |
— |
|
(0.4 |
) |
(0.9 |
) | |||||||
|
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Consolidated Total NPE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Property Catastrophe - Treaty Reinsurance |
|
$ |
62.4 |
|
$ |
65.2 |
|
$ |
66.4 |
|
$ |
66.5 |
|
$ |
66.3 |
|
$ |
260.5 |
|
$ |
249.6 |
|
|
Property Specialty - Treaty Reinsurance |
|
12.7 |
|
13.5 |
|
13.1 |
|
12.8 |
|
13.9 |
|
52.1 |
|
51.5 |
| |||||||
|
Other Specialty - Treaty Reinsurance |
|
34.8 |
|
39.2 |
|
27.7 |
|
40.9 |
|
38.1 |
|
142.6 |
|
143.6 |
| |||||||
|
Property & Specialty Individual Risk |
|
38.1 |
|
35.1 |
|
31.7 |
|
39.5 |
|
38.3 |
|
144.4 |
|
171.8 |
| |||||||
|
|
|
$ |
148.0 |
|
$ |
153.0 |
|
$ |
138.9 |
|
$ |
159.7 |
|
$ |
156.6 |
|
$ |
599.6 |
|
$ |
616.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Reinstatements included in NPE |
|
$ |
0.1 |
|
$ |
2.8 |
|
$ |
(3.8 |
) |
$ |
2.4 |
|
$ |
6.9 |
|
$ |
1.5 |
|
$ |
13.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Consolidated 12 Mo. Rolling NPE |
|
$ |
599.6 |
|
$ |
608.2 |
|
$ |
608.2 |
|
$ |
615.7 |
|
$ |
616.5 |
|
|
|
|
| ||
MONTPELIER RE HOLDINGS LTD.
Natural Catastrophe Risk Management (1)
$ in millions
Exposure Management
|
|
|
Net Reinsurance Treaty Limits by Zone (1) |
| ||||||||
|
|
|
As of January 1, 2014 |
|
As of June 1, 2013 |
| ||||||
|
|
|
Treaty Limits |
|
% of Dec. 31, |
|
Treaty Limits |
|
% of Sept 30, |
| ||
|
U.S. Hurricane: |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| ||
|
Mid-Atlantic hurricane |
|
$ |
581 |
|
35 |
% |
$ |
610 |
|
38 |
% |
|
Florida hurricane |
|
462 |
|
28 |
% |
468 |
|
29 |
% | ||
|
Northeast hurricane |
|
438 |
|
27 |
% |
475 |
|
30 |
% | ||
|
Gulf hurricane |
|
412 |
|
25 |
% |
400 |
|
25 |
% | ||
|
Hawaii hurricane |
|
184 |
|
11 |
% |
176 |
|
11 |
% | ||
|
|
|
|
|
|
|
|
|
|
| ||
|
U.S. Earthquake: |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| ||
|
New Madrid earthquake |
|
$ |
546 |
|
33 |
% |
$ |
529 |
|
33 |
% |
|
California earthquake |
|
392 |
|
24 |
% |
352 |
|
22 |
% | ||
|
Northwest earthquake |
|
372 |
|
23 |
% |
369 |
|
23 |
% | ||
|
|
|
|
|
|
|
|
|
|
| ||
|
European Windstorm: |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| ||
|
Western Europe windstorm |
|
$ |
488 |
|
30 |
% |
$ |
409 |
|
26 |
% |
|
UK & Ireland windstorm |
|
419 |
|
26 |
% |
364 |
|
23 |
% | ||
|
Scandinavia windstorm |
|
183 |
|
11 |
% |
128 |
|
8 |
% | ||
|
|
|
|
|
|
|
|
|
|
| ||
|
Other Countries: |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| ||
|
Japan earthquake |
|
$ |
276 |
|
17 |
% |
$ |
255 |
|
16 |
% |
|
Canada earthquake |
|
263 |
|
16 |
% |
203 |
|
13 |
% | ||
|
Australia earthquake |
|
245 |
|
15 |
% |
220 |
|
14 |
% | ||
|
Australia cyclone |
|
243 |
|
15 |
% |
222 |
|
14 |
% | ||
|
New Zealand earthquake |
|
169 |
|
10 |
% |
123 |
|
8 |
% | ||
|
Turkey earthquake |
|
166 |
|
10 |
% |
181 |
|
11 |
% | ||
|
Chile earthquake |
|
152 |
|
9 |
% |
105 |
|
7 |
% | ||
|
Japan windstorm |
|
150 |
|
9 |
% |
116 |
|
7 |
% | ||
Single Event Losses
|
|
|
Net Impact From Single Event Losses by Return Period (2) |
| ||||||||||||||||||
|
|
|
As of January 1, 2014 |
|
As of June 1, 2013 |
| ||||||||||||||||
|
|
|
|
|
|
|
% of Dec. 31, 2013 |
|
|
|
|
|
% of Sept. 30, 2013 |
| ||||||||
|
|
|
Net Impact |
|
Shareholders’ Equity |
|
Net Impact |
|
Shareholders’ Equity |
| ||||||||||||
|
|
|
100-year |
|
250-year |
|
100-year |
|
250-year |
|
100-year |
|
250-year |
|
100-year |
|
250-year |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
U.S. Hurricane |
|
$ |
317 |
|
$ |
375 |
|
20 |
% |
24 |
% |
$ |
339 |
|
$ |
396 |
|
21 |
% |
25 |
% |
|
Europe Windstorm |
|
244 |
|
312 |
|
15 |
% |
20 |
% |
203 |
|
250 |
|
13 |
% |
16 |
% | ||||
|
U.S. Earthquake |
|
187 |
|
286 |
|
12 |
% |
18 |
% |
166 |
|
264 |
|
10 |
% |
17 |
% | ||||
NOTE - These disclosures should be read in conjunction with item 1A “Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the Securities and Exchange Commission.
(1) The treaty limits presented include the Company’s portion of the exposures assumed through its investment in the Blue Capital Global Reinsurance Fund Limited (BCGR) and Blue Capital Reinsurance Holdings Ltd. (BCRH).The treaty limits presented are shown net of any outward reinsurance or other third-party protection we purchase but have not been reduced by any expected reinstatement premiums.
(2) The single event losses presented include the Company’s portion of exposures assumed through its investment in BCGR and BCRH and are shown net of: (i) any outward reinsurance or other third-party protection we purchase; and (ii) the benefit of any expected reinstatement premiums. A “100-year” return period can also be referred to as the 1.0% occurrence exceedance probability (“OEP”) meaning there is a 1.0% chance in any given year that this level will be exceeded. A “250-year” return period can also be referred to as the 0.4% OEP meaning there is a 0.4% chance in any given year that this level will be exceeded.
MONTPELIER RE HOLDINGS LTD.
Rollforward of Loss and LAE Reserves (unaudited)
in millions
|
|
|
Three months ended December 31, 2013 |
|
Three months ended December 31, 2012 |
| ||||||||||||||
|
|
|
Gross |
|
Recoveries |
|
Net |
|
Gross |
|
Recoveries |
|
Net |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Reserve for unpaid losses, beginning of period |
|
$ |
961.1 |
|
$ |
73.7 |
|
$ |
887.4 |
|
$ |
1,039.4 |
|
$ |
80.2 |
|
$ |
959.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Losses incurred: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Current year |
|
44.3 |
|
(0.3 |
) |
44.6 |
|
184.0 |
|
29.8 |
|
154.2 |
| ||||||
|
Prior years |
|
(49.4 |
) |
(7.1 |
) |
(42.3 |
) |
(28.2 |
) |
(1.9 |
) |
(26.3 |
) | ||||||
|
Total losses incurred |
|
(5.1 |
) |
(7.4 |
) |
2.3 |
|
155.8 |
|
27.9 |
|
127.9 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Net foreign currency translation movements |
|
7.6 |
|
0.2 |
|
7.4 |
|
1.5 |
|
— |
|
1.5 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Losses paid and approved for payment: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Current year |
|
(18.6 |
) |
(1.2 |
) |
(17.4 |
) |
(27.6 |
) |
(3.6 |
) |
(24.0 |
) | ||||||
|
Prior years |
|
(63.4 |
) |
(1.7 |
) |
(61.7 |
) |
(56.7 |
) |
(1.8 |
) |
(54.9 |
) | ||||||
|
Total paid losses |
|
(82.0 |
) |
(2.9 |
) |
(79.1 |
) |
(84.3 |
) |
(5.4 |
) |
(78.9 |
) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Reserve for unpaid losses, end of period |
|
$ |
881.6 |
|
$ |
63.6 |
|
$ |
818.0 |
|
$ |
1,112.4 |
|
$ |
102.7 |
|
$ |
1,009.7 |
|
|
|
|
Year ended December 31, 2013 |
|
Year ended December 31, 2012 |
| ||||||||||||||
|
|
|
Gross |
|
Recoveries |
|
Net |
|
Gross |
|
Recoveries |
|
Net |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Reserve for unpaid losses, beginning of period |
|
$ |
1,112.4 |
|
$ |
102.7 |
|
$ |
1,009.7 |
|
$ |
1,077.1 |
|
$ |
77.7 |
|
$ |
999.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Losses incurred: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Current year |
|
289.5 |
|
18.6 |
|
270.9 |
|
419.7 |
|
45.9 |
|
373.8 |
| ||||||
|
Prior years |
|
(159.3 |
) |
(14.9 |
) |
(144.4 |
) |
(94.5 |
) |
(7.1 |
) |
(87.4 |
) | ||||||
|
Total losses incurred |
|
130.2 |
|
3.7 |
|
126.5 |
|
325.2 |
|
38.8 |
|
286.4 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Net foreign currency translation movements |
|
6.7 |
|
0.6 |
|
6.1 |
|
13.3 |
|
1.3 |
|
12.0 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Losses paid and approved for payment: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Current year |
|
(55.8 |
) |
(3.7 |
) |
(52.1 |
) |
(55.9 |
) |
(7.0 |
) |
(48.9 |
) | ||||||
|
Prior years |
|
(311.9 |
) |
(39.7 |
) |
(272.2 |
) |
(247.3 |
) |
(8.1 |
) |
(239.2 |
) | ||||||
|
Total paid losses |
|
(367.7 |
) |
(43.4 |
) |
(324.3 |
) |
(303.2 |
) |
(15.1 |
) |
(288.1 |
) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Reserve for unpaid losses, end of period |
|
$ |
881.6 |
|
$ |
63.6 |
|
$ |
818.0 |
|
$ |
1,112.4 |
|
$ |
102.7 |
|
$ |
1,009.7 |
|
MONTPELIER RE HOLDINGS LTD.
Consolidated Losses and Loss Ratios
(unaudited)
$ in millions
|
|
|
|
|
|
|
|
|
|
|
|
|
Year |
|
Year |
| |||||||
|
|
|
Q4-13 |
|
Q3-13 |
|
Q2-13 |
|
Q1-13 |
|
Q4-12 |
|
2013 |
|
2012 |
| |||||||
|
Property Catastrophe - Treaty |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Net reserves: start |
|
$ |
234.0 |
|
$ |
267.4 |
|
$ |
276.8 |
|
$ |
300.2 |
|
$ |
289.1 |
|
$ |
300.2 |
|
$ |
362.9 |
|
|
Change in prior AY |
|
(10.1 |
) |
(0.2 |
) |
(12.6 |
) |
(17.2 |
) |
(9.7 |
) |
(40.1 |
) |
(30.5 |
) | |||||||
|
Losses paid and approved for payment |
|
(26.8 |
) |
(37.8 |
) |
(25.9 |
) |
(23.1 |
) |
(29.7 |
) |
(113.6 |
) |
(122.7 |
) | |||||||
|
Current yr. incurred losses |
|
(0.5 |
) |
4.6 |
|
29.1 |
|
16.9 |
|
50.5 |
|
50.1 |
|
90.5 |
| |||||||
|
Net reserves: end |
|
$ |
196.6 |
|
$ |
234.0 |
|
$ |
267.4 |
|
$ |
276.8 |
|
$ |
300.2 |
|
$ |
196.6 |
|
$ |
300.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Net earned premium |
|
$ |
62.4 |
|
$ |
65.2 |
|
$ |
66.4 |
|
$ |
66.5 |
|
$ |
66.3 |
|
260.5 |
|
$ |
249.6 |
| |
|
Net loss ratio |
|
-17.0 |
% |
6.7 |
% |
24.8 |
% |
-0.5 |
% |
61.5 |
% |
3.8 |
% |
24.0 |
% | |||||||
|
Net loss ratio excl. prior AY adjusts. |
|
-0.8 |
% |
7.0 |
% |
43.8 |
% |
25.4 |
% |
76.1 |
% |
19.2 |
% |
36.2 |
% | |||||||
|
Net loss ratio - prior AY adjusts. |
|
-16.2 |
% |
-0.3 |
% |
-19.0 |
% |
-25.9 |
% |
-14.6 |
% |
-15.4 |
% |
-12.2 |
% | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
IBNR |
|
$ |
104.0 |
|
$ |
117.3 |
|
$ |
134.0 |
|
$ |
120.1 |
|
$ |
131.2 |
|
|
|
|
| ||
|
IBNR as a % of net reserves |
|
53 |
% |
50 |
% |
50 |
% |
43 |
% |
44 |
% |
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Property Specialty - Treaty |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Net reserves: start |
|
$ |
113.7 |
|
$ |
125.3 |
|
$ |
134.1 |
|
$ |
138.8 |
|
$ |
126.0 |
|
$ |
138.8 |
|
$ |
146.4 |
|
|
Change in prior AY |
|
(10.3 |
) |
(8.2 |
) |
(9.3 |
) |
(1.4 |
) |
(5.9 |
) |
(29.2 |
) |
(18.3 |
) | |||||||
|
Losses paid and approved for payment |
|
(7.5 |
) |
(15.6 |
) |
(8.7 |
) |
(10.5 |
) |
(6.3 |
) |
(42.3 |
) |
(39.0 |
) | |||||||
|
Current yr. incurred losses |
|
3.8 |
|
12.2 |
|
9.2 |
|
7.2 |
|
25.0 |
|
32.4 |
|
49.7 |
| |||||||
|
Net reserves: end |
|
$ |
99.7 |
|
$ |
113.7 |
|
$ |
125.3 |
|
$ |
134.1 |
|
$ |
138.8 |
|
$ |
99.7 |
|
$ |
138.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Net earned premium |
|
$ |
12.7 |
|
$ |
13.5 |
|
$ |
13.1 |
|
$ |
12.8 |
|
$ |
13.9 |
|
52.1 |
|
$ |
51.5 |
| |
|
Net loss ratio |
|
-51.2 |
% |
29.6 |
% |
-0.8 |
% |
45.3 |
% |
137.4 |
% |
6.1 |
% |
61.0 |
% | |||||||
|
Net loss ratio excl. prior AY adjusts. |
|
29.9 |
% |
90.3 |
% |
70.2 |
% |
56.2 |
% |
179.8 |
% |
62.1 |
% |
96.5 |
% | |||||||
|
Net loss ratio - prior AY adjusts. |
|
-81.1 |
% |
-60.7 |
% |
-71.0 |
% |
-10.9 |
% |
-42.4 |
% |
-56.0 |
% |
-35.5 |
% | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
IBNR |
|
$ |
59.0 |
|
$ |
67.1 |
|
$ |
77.8 |
|
$ |
79.9 |
|
$ |
81.9 |
|
|
|
|
| ||
|
IBNR as a % of net reserves |
|
59 |
% |
59 |
% |
62 |
% |
60 |
% |
59 |
% |
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Other Specialty - Treaty |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Net reserves: start |
|
$ |
291.3 |
|
$ |
288.4 |
|
$ |
294.0 |
|
$ |
288.1 |
|
$ |
288.4 |
|
$ |
288.1 |
|
$ |
268.6 |
|
|
Change in prior AY |
|
(7.2 |
) |
(9.6 |
) |
(15.4 |
) |
1.2 |
|
(3.7 |
) |
(31.0 |
) |
(25.9 |
) | |||||||
|
Losses paid and approved for payment |
|
(17.9 |
) |
(10.1 |
) |
(10.5 |
) |
(15.7 |
) |
(14.5 |
) |
(54.2 |
) |
(41.8 |
) | |||||||
|
Current yr. incurred losses |
|
20.4 |
|
22.6 |
|
20.3 |
|
20.4 |
|
17.9 |
|
83.7 |
|
87.2 |
| |||||||
|
Net reserves: end |
|
$ |
286.6 |
|
$ |
291.3 |
|
$ |
288.4 |
|
$ |
294.0 |
|
$ |
288.1 |
|
$ |
286.6 |
|
$ |
288.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Net earned premium |
|
$ |
34.8 |
|
$ |
39.2 |
|
$ |
27.7 |
|
$ |
40.9 |
|
$ |
38.1 |
|
142.6 |
|
$ |
143.6 |
| |
|
Net loss ratio |
|
37.9 |
% |
33.2 |
% |
17.7 |
% |
52.8 |
% |
37.3 |
% |
37.0 |
% |
42.7 |
% | |||||||
|
Net loss ratio excl. prior AY adjusts. |
|
58.6 |
% |
57.7 |
% |
73.3 |
% |
49.9 |
% |
47.0 |
% |
58.7 |
% |
60.7 |
% | |||||||
|
Net loss ratio - prior AY adjusts. |
|
-20.7 |
% |
-24.5 |
% |
-55.6 |
% |
2.9 |
% |
-9.7 |
% |
-21.7 |
% |
-18.0 |
% | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
IBNR |
|
$ |
221.0 |
|
$ |
217.8 |
|
$ |
212.2 |
|
$ |
215.1 |
|
$ |
209.2 |
|
|
|
|
| ||
|
IBNR as a % of net reserves |
|
77 |
% |
75 |
% |
74 |
% |
73 |
% |
73 |
% |
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Property and Specialty Individual Risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Net reserves: start |
|
$ |
242.0 |
|
$ |
255.9 |
|
$ |
259.0 |
|
$ |
275.1 |
|
$ |
249.7 |
|
$ |
275.1 |
|
$ |
226.0 |
|
|
Change in prior AY |
|
(14.7 |
) |
(18.0 |
) |
(10.4 |
) |
(1.0 |
) |
(7.0 |
) |
(44.1 |
) |
(12.7 |
) | |||||||
|
Losses paid and approved for payment |
|
(26.7 |
) |
(19.4 |
) |
(28.5 |
) |
(39.6 |
) |
(28.4 |
) |
(114.2 |
) |
(84.6 |
) | |||||||
|
Current yr. incurred losses |
|
20.9 |
|
23.5 |
|
35.8 |
|
24.5 |
|
60.8 |
|
104.7 |
|
146.4 |
| |||||||
|
Net reserves: end |
|
$ |
221.5 |
|
$ |
242.0 |
|
$ |
255.9 |
|
$ |
259.0 |
|
$ |
275.1 |
|
$ |
221.5 |
|
$ |
275.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Net earned premium |
|
$ |
38.1 |
|
$ |
35.1 |
|
$ |
31.7 |
|
$ |
39.5 |
|
$ |
38.3 |
|
144.4 |
|
$ |
171.8 |
| |
|
Net loss ratio |
|
16.3 |
% |
15.7 |
% |
80.1 |
% |
59.5 |
% |
140.5 |
% |
42.0 |
% |
77.8 |
% | |||||||
|
Net loss ratio excl. prior AY adjusts. |
|
54.9 |
% |
67.0 |
% |
112.9 |
% |
62.0 |
% |
158.8 |
% |
72.5 |
% |
85.2 |
% | |||||||
|
Net loss ratio - prior AY adjusts. |
|
-38.6 |
% |
-51.3 |
% |
-32.8 |
% |
-2.5 |
% |
-18.3 |
% |
-30.5 |
% |
-7.4 |
% | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
IBNR |
|
$ |
131.4 |
|
$ |
143.7 |
|
$ |
157.6 |
|
$ |
152.8 |
|
$ |
154.9 |
|
|
|
|
| ||
|
IBNR as a % of net reserves |
|
59 |
% |
59 |
% |
62 |
% |
59 |
% |
56 |
% |
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
TOTAL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Net reserves: start |
|
$ |
887.2 |
|
$ |
923.2 |
|
$ |
948.7 |
|
$ |
1,009.7 |
|
$ |
959.2 |
|
$ |
1,009.7 |
|
$ |
999.4 |
|
|
Change in prior AY |
|
(42.3 |
) |
(36.0 |
) |
(47.7 |
) |
(18.4 |
) |
(26.3 |
) |
(144.4 |
) |
(87.4 |
) | |||||||
|
Losses paid and approved for payment |
|
(78.9 |
) |
(82.9 |
) |
(73.6 |
) |
(88.9 |
) |
(78.9 |
) |
(324.3 |
) |
(288.1 |
) | |||||||
|
Current yr. incurred losses |
|
44.6 |
|
62.9 |
|
94.4 |
|
69.0 |
|
154.2 |
|
270.9 |
|
373.8 |
| |||||||
|
Net impact of foreign currency |
|
7.4 |
|
20.0 |
|
1.4 |
|
(22.7 |
) |
1.5 |
|
6.1 |
|
12.0 |
| |||||||
|
Net reserves: end |
|
$ |
818.0 |
|
$ |
887.2 |
|
$ |
923.2 |
|
$ |
948.7 |
|
$ |
1,009.7 |
|
$ |
818.0 |
|
$ |
1,009.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Net earned premium |
|
$ |
148.0 |
|
$ |
153.0 |
|
$ |
138.9 |
|
$ |
159.7 |
|
$ |
156.6 |
|
$ |
599.6 |
|
$ |
616.5 |
|
|
Net loss ratio |
|
1.6 |
% |
17.6 |
% |
33.6 |
% |
31.7 |
% |
81.7 |
% |
21.1 |
% |
46.4 |
% | |||||||
|
Net loss ratio excl. prior AY adjusts. |
|
30.2 |
% |
41.1 |
% |
67.9 |
% |
43.2 |
% |
99.5 |
% |
45.2 |
% |
60.6 |
% | |||||||
|
Net loss ratio - prior AY adjusts. |
|
-28.6 |
% |
-23.5 |
% |
-34.3 |
% |
-11.5 |
% |
-16.8 |
% |
-24.1 |
% |
-14.2 |
% | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
IBNR |
|
$ |
515.4 |
|
$ |
545.9 |
|
$ |
581.6 |
|
$ |
567.9 |
|
$ |
577.2 |
|
|
|
|
| ||
|
IBNR as a % of net reserves |
|
63 |
% |
62 |
% |
63 |
% |
60 |
% |
57 |
% |
|
|
|
| |||||||
MONTPELIER RE HOLDINGS LTD.
Consolidated Investment Portfolio (unaudited)
$ in millions
|
|
|
December 31, 2013 |
|
September 30, 2013 |
|
June 30, 2013 |
|
March 31, 2013 |
|
December 31, 2012 |
| |||||||||||||||||||||
|
|
|
Amortized |
|
Unrealized |
|
Fair |
|
|
|
Fair |
|
|
|
Fair |
|
|
|
Fair |
|
|
|
Fair |
|
|
| |||||||
|
|
|
Cost |
|
Gain / (Loss) |
|
Value |
|
% |
|
Value |
|
% |
|
Value |
|
% |
|
Value |
|
% |
|
Value |
|
% |
| |||||||
|
Composition: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturities |
|
$ |
2,421.9 |
|
$ |
8.9 |
|
$ |
2,430.8 |
|
73 |
% |
$ |
2,384.7 |
|
74 |
% |
$ |
2,506.2 |
|
77 |
% |
$ |
2,491.6 |
|
77 |
% |
$ |
2,738.6 |
|
83 |
% |
|
Equity securities |
|
106.6 |
|
10.7 |
|
117.3 |
|
4 |
% |
122.6 |
|
4 |
% |
116.1 |
|
4 |
% |
34.2 |
|
1 |
% |
40.9 |
|
1 |
% | |||||||
|
Other investments |
|
77.7 |
|
1.1 |
|
78.8 |
|
2 |
% |
74.4 |
|
2 |
% |
80.1 |
|
2 |
% |
103.1 |
|
3 |
% |
138.5 |
|
4 |
% | |||||||
|
Cash equivalents |
|
104.4 |
|
— |
|
104.4 |
|
3 |
% |
108.8 |
|
3 |
% |
203.8 |
|
6 |
% |
235.5 |
|
7 |
% |
56.5 |
|
2 |
% | |||||||
|
Cash and restricted cash |
|
578.5 |
|
— |
|
578.5 |
|
18 |
% |
550.5 |
|
17 |
% |
350.5 |
|
11 |
% |
376.1 |
|
12 |
% |
344.9 |
|
10 |
% | |||||||
|
Total investments and cash (1) |
|
$ |
3,289.1 |
|
$ |
20.7 |
|
$ |
3,309.8 |
|
100 |
% |
$ |
3,241.0 |
|
100 |
% |
$ |
3,256.7 |
|
100 |
% |
$ |
3,240.5 |
|
100 |
% |
$ |
3,319.4 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Fixed maturities allocation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Mortgage-backed and asset-backed securities |
|
$ |
845.5 |
|
$ |
(1.3 |
) |
$ |
844.2 |
|
35 |
% |
$ |
921.6 |
|
39 |
% |
$ |
1,071.6 |
|
43 |
% |
$ |
869.3 |
|
34 |
% |
$ |
1,042.3 |
|
38 |
% |
|
Government & government-sponsored entities |
|
642.6 |
|
(9.9 |
) |
632.7 |
|
26 |
% |
554.5 |
|
23 |
% |
523.7 |
|
21 |
% |
592.3 |
|
24 |
% |
586.4 |
|
21 |
% | |||||||
|
Corporate bonds (2) |
|
886.6 |
|
20.2 |
|
906.8 |
|
37 |
% |
856.1 |
|
36 |
% |
854.6 |
|
34 |
% |
961.1 |
|
39 |
% |
1,037.7 |
|
38 |
% | |||||||
|
Municipal bonds |
|
47.2 |
|
(0.1 |
) |
47.1 |
|
2 |
% |
52.5 |
|
2 |
% |
56.3 |
|
2 |
% |
68.9 |
|
3 |
% |
72.2 |
|
3 |
% | |||||||
|
Total fixed maturities |
|
$ |
2,421.9 |
|
$ |
8.9 |
|
$ |
2,430.8 |
|
100 |
% |
$ |
2,384.7 |
|
100 |
% |
$ |
2,506.2 |
|
100 |
% |
$ |
2,491.6 |
|
100 |
% |
$ |
2,738.6 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Other investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Limited partnership interests and private investment funds |
|
$ |
72.6 |
|
$ |
(0.9 |
) |
$ |
71.7 |
|
91 |
% |
$ |
69.3 |
|
93 |
% |
$ |
71.7 |
|
90 |
% |
$ |
98.1 |
|
95 |
% |
$ |
139.2 |
|
101 |
% |
|
Catastrophe bonds |
|
2.0 |
|
— |
|
2.0 |
|
3 |
% |
— |
|
0 |
% |
— |
|
0 |
% |
— |
|
0 |
% |
— |
|
0 |
% | |||||||
|
Derivative instruments |
|
3.1 |
|
2.0 |
|
5.1 |
|
6 |
% |
5.1 |
|
7 |
% |
8.4 |
|
10 |
% |
5.0 |
|
5 |
% |
(0.7 |
) |
-1 |
% | |||||||
|
Total other investments |
|
$ |
77.7 |
|
$ |
1.1 |
|
$ |
78.8 |
|
100 |
% |
$ |
74.4 |
|
100 |
% |
$ |
80.1 |
|
100 |
% |
$ |
103.1 |
|
100 |
% |
$ |
138.5 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Total investment return: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Net investment income |
|
|
|
|
|
$ |
14.2 |
|
|
|
$ |
16.7 |
|
|
|
$ |
16.7 |
|
|
|
$ |
16.4 |
|
|
|
$ |
16.8 |
|
|
| ||
|
Net income (loss) from investment-related derivative instruments |
|
|
|
|
|
(0.5 |
) |
|
|
(0.7 |
) |
|
|
(1.1 |
) |
|
|
(0.8 |
) |
|
|
0.6 |
|
|
| |||||||
|
Net realized investment gains (losses) |
|
|
|
|
|
4.4 |
|
|
|
(22.1 |
) |
|
|
6.9 |
|
|
|
9.1 |
|
|
|
6.2 |
|
|
| |||||||
|
Net unrealized investment gains (losses) |
|
|
|
|
|
3.7 |
|
|
|
26.7 |
|
|
|
(68.1 |
) |
|
|
(9.8 |
) |
|
|
(2.7 |
) |
|
| |||||||
|
Net gains (losses) from investment-related derivative instruments |
|
|
|
|
|
(6.5 |
) |
|
|
(3.6 |
) |
|
|
(7.9 |
) |
|
|
6.8 |
|
|
|
(0.4 |
) |
|
| |||||||
|
Net investment FX gains (losses) from managed cash and investments |
|
|
|
|
|
(1.1 |
) |
|
|
(1.5 |
) |
|
|
2.1 |
|
|
|
(1.8 |
) |
|
|
(1.3 |
) |
|
| |||||||
|
Total investment return |
|
|
|
|
|
$ |
14.2 |
|
|
|
$ |
15.5 |
|
|
|
$ |
(51.4 |
) |
|
|
$ |
19.9 |
|
|
|
$ |
19.2 |
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Total quarterly return on average fair value % (3) |
|
|
|
|
|
0.5 |
% |
|
|
0.6 |
% |
|
|
-1.8 |
% |
|
|
0.7 |
% |
|
|
0.6 |
% |
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Average market yield to worst of fixed maturities, cash and cash equivalents (4) |
|
|
|
|
|
2.5 |
% |
|
|
2.3 |
% |
|
|
2.6 |
% |
|
|
2.1 |
% |
|
|
2.2 |
% |
|
| |||||||
|
Average duration of fixed maturities, cash and cash equivalents (4) |
|
|
|
|
|
2.0 years |
|
|
|
1.8 years |
|
|
|
3.1 years |
|
|
|
2.7 years |
|
|
|
3.1 years |
|
|
| |||||||
|
Average credit quality of fixed maturities, cash and cash equivalents (4) |
|
|
|
|
|
AA- |
|
|
|
AA- |
|
|
|
AA- |
|
|
|
AA- |
|
|
|
AA- |
|
|
| |||||||
|
Average duration of fixed maturities (5) |
|
|
|
|
|
2.2 years |
|
|
|
2.0 years |
|
|
|
3.4 years |
|
|
|
3.1 years |
|
|
|
3.3 years |
|
|
| |||||||
(1) We also hold various short investment positions which are reported as liabilities on our Consolidated Balance Sheets. Some of these short positions fully or partially offset some of the long investment positions presented above.
(2) Corporate bonds includes bank loans. See page 10 for additional details.
(3) Excludes net gains (losses) from non-investment FX contracts which are undertaken solely to hedge our insurance balances that are exposed to FX movements. In accordance with GAAP, these FX contracts are presented within our other investments. Also excludes those cash, cash equivalents and short term investments (which totaled $390.4 million at December 31, 2013) that relate to our Collateralized Reinsurance operations. These assets generate virtually no investment income and the “return” on these invested assets constitutes our Collateralized Reinsurance underwriting result and is included in our combined ratio.
(4) Net of fixed maturity derivative and short positions. Excludes cash held for operations.
(5) Net of fixed maturity derivative and short positions.
MONTPELIER RE HOLDINGS LTD.
Consolidated Investment Detail - Corporate Bonds (net of short positions)
(unaudited)
$ in millions
At December 31, 2013
Corporate Bonds - Quality: (1)
|
|
|
|
|
|
|
|
|
Option |
| |||
|
|
|
|
|
|
|
|
|
Adjusted |
| |||
|
|
|
Amortized |
|
Fair |
|
Gain |
|
Duration |
| |||
|
|
|
Cost |
|
Value |
|
(Loss) |
|
(Years) |
| |||
|
|
|
|
|
|
|
|
|
|
| |||
|
AAA |
|
$ |
25.6 |
|
$ |
25.8 |
|
$ |
0.2 |
|
2.0 |
|
|
AA |
|
43.0 |
|
42.9 |
|
(0.1 |
) |
2.4 |
| |||
|
A |
|
267.9 |
|
271.8 |
|
3.9 |
|
2.6 |
| |||
|
BBB |
|
202.6 |
|
207.0 |
|
4.4 |
|
3.2 |
| |||
|
Below BBB |
|
273.7 |
|
284.6 |
|
10.9 |
|
3.2 |
| |||
|
Not Rated |
|
49.6 |
|
50.4 |
|
0.8 |
|
3.4 |
| |||
|
Total Corporate Bonds |
|
$ |
862.4 |
|
$ |
882.5 |
|
$ |
20.1 |
|
3.2 |
|
Corporate Bonds - By Sector: (1)
|
|
|
|
|
|
|
|
|
Option |
| |||
|
|
|
|
|
|
|
|
|
Adjusted |
| |||
|
|
|
Amortized |
|
Fair |
|
Gain |
|
Duration |
| |||
|
|
|
Cost |
|
Value |
|
(Loss) |
|
(Years) |
| |||
|
|
|
|
|
|
|
|
|
|
| |||
|
Industrial |
|
$ |
534.5 |
|
$ |
546.5 |
|
$ |
12.0 |
|
3.1 |
|
|
Financial |
|
278.9 |
|
286.7 |
|
7.8 |
|
3.2 |
| |||
|
Utility |
|
32.5 |
|
32.8 |
|
0.3 |
|
3.5 |
| |||
|
All Others |
|
16.5 |
|
16.5 |
|
— |
|
2.7 |
| |||
|
Total |
|
$ |
862.4 |
|
$ |
882.5 |
|
$ |
20.1 |
|
3.2 |
|
(1) The Corporate exposures presented above are shown net of $24.3 million of securities sold short which are reported within the liability section of our balance sheet.
Note - this presentation does not include the effects of our credit derivatives which may further offset the credit exposures reported above.
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:
|
|
|
December 31 |
|
September 30 |
|
June 30 |
|
March 31 |
|
December 31 |
| |||||||||||||||
|
|
|
2013 |
|
2013 |
|
2013 |
|
2013 |
|
2012 |
| |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Reinsurance recoverable on paid losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
A++ |
|
$ |
— |
|
— |
% |
$ |
— |
|
— |
% |
$ |
— |
|
— |
% |
$ |
— |
|
— |
% |
$ |
— |
|
— |
% |
|
A+ |
|
0.7 |
|
19 |
|
1.4 |
|
19 |
|
6.5 |
|
24 |
|
1.2 |
|
24 |
|
1.3 |
|
19 |
| |||||
|
A |
|
1.4 |
|
39 |
|
3.1 |
|
42 |
|
10.8 |
|
41 |
|
1.9 |
|
40 |
|
1.7 |
|
26 |
| |||||
|
A- |
|
— |
|
— |
|
0.9 |
|
12 |
|
5.7 |
|
21 |
|
0.8 |
|
16 |
|
1.8 |
|
27 |
| |||||
|
Unrated by AM Best (1) |
|
1.5 |
|
42 |
|
2.0 |
|
27 |
|
3.8 |
|
14 |
|
1.0 |
|
20 |
|
1.9 |
|
28 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
$ |
3.6 |
|
100 |
% |
$ |
7.4 |
|
100 |
% |
$ |
26.8 |
|
100 |
% |
$ |
4.9 |
|
100 |
% |
$ |
6.7 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Reinsurance recoverable on unpaid losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
A++ |
|
$ |
— |
|
— |
% |
$ |
— |
|
— |
% |
$ |
— |
|
— |
% |
$ |
— |
|
— |
% |
$ |
— |
|
— |
% |
|
A+ |
|
28.6 |
|
45 |
|
25.1 |
|
34 |
|
26.4 |
|
33 |
|
26.8 |
|
31 |
|
30.4 |
|
30 |
| |||||
|
A |
|
20.2 |
|
32 |
|
31.8 |
|
43 |
|
34.0 |
|
42 |
|
30.5 |
|
35 |
|
36.9 |
|
36 |
| |||||
|
A- |
|
4.2 |
|
6 |
|
1.6 |
|
2 |
|
2.9 |
|
4 |
|
6.6 |
|
8 |
|
8.3 |
|
8 |
| |||||
|
Unrated by AM Best (1) |
|
10.6 |
|
17 |
|
15.2 |
|
21 |
|
17.0 |
|
21 |
|
22.7 |
|
26 |
|
27.1 |
|
26 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
$ |
63.6 |
|
100 |
% |
$ |
73.7 |
|
100 |
% |
$ |
80.3 |
|
100 |
% |
$ |
86.6 |
|
100 |
% |
$ |
102.7 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total reinsurance recoverable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
A++ |
|
$ |
— |
|
— |
% |
$ |
— |
|
— |
% |
$ |
— |
|
— |
% |
$ |
— |
|
— |
% |
$ |
— |
|
— |
% |
|
A+ |
|
29.3 |
|
44 |
|
26.5 |
|
33 |
|
32.9 |
|
31 |
|
28.0 |
|
31 |
|
31.7 |
|
29 |
| |||||
|
A |
|
21.6 |
|
32 |
|
34.9 |
|
43 |
|
44.8 |
|
42 |
|
32.4 |
|
35 |
|
38.6 |
|
35 |
| |||||
|
A- |
|
4.2 |
|
6 |
|
2.5 |
|
3 |
|
8.6 |
|
8 |
|
7.4 |
|
8 |
|
10.1 |
|
9 |
| |||||
|
Unrated by AM Best (1) |
|
12.1 |
|
18 |
|
17.2 |
|
21 |
|
20.8 |
|
19 |
|
23.7 |
|
26 |
|
29.0 |
|
27 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
$ |
67.2 |
|
100 |
% |
$ |
81.1 |
|
100 |
% |
$ |
107.1 |
|
100 |
% |
$ |
91.5 |
|
100 |
% |
$ |
109.4 |
|
100 |
% |
(1) These obligations are either: (i) fully collateralized; (ii) reinsurer has an S&P financial strength rating equivalent to an A.M. Best rating of A- or better; or (iii) reinsurer is considered by management to be financially sound.
MONTPELIER RE HOLDINGS LTD.
Fully Converted Book Value Per Common Share (unaudited)
$ in millions, except per share amounts
|
|
|
December 31 |
|
September 30 |
|
June 30 |
|
March 31 |
|
December 31 |
| |||||
|
|
|
2013 |
|
2013 |
|
2013 |
|
2013 |
|
2012 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Numerators |
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Book value and fully converted book value per common share numerator (common shareholders’ equity avail. to the Company) |
|
$ |
1,492.1 |
|
$ |
1,443.6 |
|
$ |
1,420.0 |
|
$ |
1,526.3 |
|
$ |
1,479.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Denominators (in common shares) |
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Book value per share common denominator (ending common shares) |
|
49,274,165 |
|
49,784,914 |
|
51,020,107 |
|
54,027,795 |
|
55,269,690 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Common share obligations under benefit plans |
|
1,448,374 |
|
1,670,884 |
|
1,520,762 |
|
1,486,305 |
|
1,326,643 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Fully converted book value per common share denominator |
|
50,722,539 |
|
51,455,798 |
|
52,540,869 |
|
55,514,100 |
|
56,596,333 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Book value per common share |
|
$ |
30.28 |
|
$ |
29.00 |
|
$ |
27.83 |
|
$ |
28.25 |
|
$ |
26.77 |
|
|
Fully converted book value per common share |
|
$ |
29.42 |
|
$ |
28.06 |
|
$ |
27.03 |
|
$ |
27.49 |
|
$ |
26.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Dividends declared per common share |
|
$ |
0.125 |
|
$ |
0.115 |
|
$ |
0.115 |
|
$ |
0.115 |
|
$ |
0.115 |
|
|
Change in FCBVPCS (1) Quarter |
|
4.9 |
% |
3.8 |
% |
-1.7 |
% |
5.2 |
% |
-1.8 |
% | |||||
|
Change in FCBVPCS adjusted for dividends (2) Quarter |
|
5.3 |
% |
4.2 |
% |
-1.3 |
% |
5.6 |
% |
-1.3 |
% | |||||
|
Change in FCBVPCS adjusted for dividends (2) YTD |
|
14.3 |
% |
8.7 |
% |
4.3 |
% |
5.6 |
% |
17.0 |
% | |||||
|
Change in FCBVPCS adjusted for dividends (2) Rolling 12 months |
|
14.3 |
% |
7.2 |
% |
8.4 |
% |
15.0 |
% |
17.0 |
% | |||||
|
Annualized change in FCBVPCS adjusted for dividends (2) Since inception |
|
10.2 |
% |
10.0 |
% |
9.8 |
% |
10.1 |
% |
9.9 |
% | |||||
(1) FCBVPCS = Fully converted book value per common share. See Page 14 for information regarding our use of Non-GAAP Financial Measures.
(2) Change in FCBVPCS adjusted for dividends represents the change in fully converted book value per common share after taking into account common share dividends declared for the period. See page 14 for information regarding our use of Non-GAAP Financial Measures.
MONTPELIER RE HOLDINGS LTD.
Income (Loss) Available to the Company’s Common Shareholders Per Share (unaudited)
$ in millions, except per share amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
Year |
|
Year |
| |||||||
|
|
|
Q4-13 |
|
Q3-13 |
|
Q2-13 |
|
Q1-13 |
|
Q4-12 |
|
2013 |
|
2012 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Numerator |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Operating income (loss) available to the Company’s common shareholders (1) |
|
$ |
90.4 |
|
$ |
71.5 |
|
$ |
49.6 |
|
$ |
66.0 |
|
$ |
(16.9 |
) |
$ |
277.5 |
|
$ |
150.9 |
|
|
Operating income allocated to participating securities |
|
(2.5 |
) |
(2.0 |
) |
(1.2 |
) |
(1.6 |
) |
— |
|
(7.3 |
) |
(3.5 |
) | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Adj. operating income (loss) avail. to the Company’s common shareholders |
|
$ |
87.9 |
|
$ |
69.5 |
|
$ |
48.4 |
|
$ |
64.4 |
|
$ |
(16.9 |
) |
$ |
270.2 |
|
$ |
147.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Net investment and foreign exchange gains (losses) |
|
(9.5 |
) |
(18.5 |
) |
(76.9 |
) |
26.1 |
|
— |
|
(78.8 |
) |
73.1 |
| |||||||
|
Non-recurring, non-operating expenses |
|
(7.5 |
) |
— |
|
— |
|
— |
|
(9.7 |
) |
(7.5 |
) |
(9.7 |
) | |||||||
|
Adjustment to arrive at net income allocated to participating securities |
|
0.4 |
|
0.6 |
|
1.2 |
|
(0.7 |
) |
— |
|
2.5 |
|
(1.4 |
) | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Adj. net income (loss) available to the Company’s common shareholders |
|
$ |
71.3 |
|
$ |
51.6 |
|
$ |
(27.3 |
) |
$ |
89.8 |
|
$ |
(26.6 |
) |
$ |
186.4 |
|
$ |
209.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Denominator |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Average common shares outstanding |
|
49,334,102 |
|
50,308,360 |
|
52,132,724 |
|
54,487,425 |
|
55,438,223 |
|
51,565,653 |
|
57,138,679 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Operating income (loss) available to the Company’s common shareholders |
|
$ |
1.78 |
|
$ |
1.38 |
|
$ |
0.93 |
|
$ |
1.18 |
|
$ |
(0.31 |
) |
$ |
5.24 |
|
$ |
2.58 |
|
|
Net income (loss) available to the Company’s common shareholders |
|
$ |
1.44 |
|
$ |
1.02 |
|
$ |
(0.52 |
) |
$ |
1.65 |
|
$ |
(0.48 |
) |
$ |
3.61 |
|
$ |
3.67 |
|
(1) Excludes net investment and foreign exchange gains and losses and certain non-recurring items. See Page 3 for the computation of our operating income (loss) available to the Company’s common shareholders and page 14 for information regarding our use of Non-GAAP Financial Measures.
MONTPELIER RE HOLDINGS LTD.
Financial Measures Disclosures
Non-GAAP Financial Measures Disclosures
Within this report, we present “operating income (loss) available to the Company’s common shareholders”, which is a “non-GAAP financial measure” as defined in Regulation G pursuant to Section 401 of the Sarbanes - Oxley Act of 2002. This measure represents our GAAP results for the periods presented without consideration of net realized and unrealized investment and foreign exchange gains and losses and certain non-recurring items. A reconciliation of this measure to our most directly comparable GAAP financial measure, net income (loss) available to the Company’s common shareholders, is included herein. We also present a measure referred to as “operating income (loss) available to the Company’s common shareholders per share” which represents our “operating income (loss) available to the Company’s common shareholders”, as adjusted for participating securities, divided by our weighted average common shares outstanding.
Within this report, we also present “book value per common share and fully converted book value per common share”, each of which is a “non-GAAP financial measure” as defined in Regulation G. The computations of these measures are included herein. We also present a measure referred to as “change in fully converted book value per common share” which represents the change in our “fully converted book value per common share”, taking into account dividends declared on our common shares during the period.
We believe that these non-GAAP measures are important to our investors, analysts and other interested parties who benefit from having an objective and consistent basis for comparison with other companies within our industry and we further believe these measures to be more relevant than comparable GAAP measures in evaluating our financial performance.