Montpelier Re a Buy Pre-Earnings - Analyst Blog
Incorporated in 2001, Montpelier Re (MRH) was formed by White Mountains Insurance Group, Ltd. and Benfield Holdings, Ltd. to take advantage of the enhanced insurance demand following the September 11 attacks. The company went public in October 2002.
Montpelier Re intends to release its 3Q08 results after market close on October 23, 2008, with a conference call scheduled for the next day. 3Q08 results will include approximately $130 million impact from hurricanes Gustav and Ike.
While we remain concerned about the general softening in the reinsurance industry and increased competition, the company has begun to experience the benefits from its new initiatives -- premium declines from Bermuda have been replaced by premiums generated by the new Lloyds (LYG) and U.S. platforms, with the London operation issuing an operating underwriting profit for the first time.
Revenues are expected to grow from additional acquisitions, office expansions and recent initiatives and we therefore, continue to rate the shares a Buy.
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