Montpelier Re has reported comprehensive income for the first quarter of $48.5m compared with $36m for the same quarter last year.
Net income for the first quarter was $46.1m compared with $65.5m for the same quarter of last year. Return on equity for the period was 4.5%.
Anthony Taylor, chairman and CEO, said: "This was a satisfactory transitional quarter in a number of important respects. Firstly, our net income and combined ratio returned to acceptable levels.
"Secondly, our net loss reserve position on the 2005 storms was stable.
"Thirdly, we successfully launched Blue Ocean Re, the vehicle through which we now participate alongside third party capital in property retrocessional business."
Taylor added, "As we previously communicated, our gross written premiums were down in comparison to the first quarter of 2005 [from $306.3m to $224.9m]. There are both continuing and one-off factors driving this reduction.
"These include our decision to decrease gross aggregate exposures in peak zones, the end of a three year contract with Aspen Insurance, and our tactical decision to non-renew certain lines at January 1st such as standard offshore marine business.
"In addition, we turned down a significant amount of renewal and new business early in the quarter which did not meet our return targets. The good news is that pricing in US property business has increased significantly of late and we are well positioned to participate in the forthcoming renewals."
