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Quieter catastrophe season boosts Bermuda reinsurers' profits

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Quieter catastrophe season boosts Bermuda reinsurers' profits

Bermuda reinsurers continued to report generally positive financial results for 2013 as they benefited from a quieter catastrophe period than they had suffered in 2012.

Hamilton, Bermuda-based Aspen Insurance Holdings Ltd. posted net income of $90.0 million for the three months ending Dec. 31, compared with $2.0 million in the same period the previous year, the company said in a statement Thursday.

Fourth-quarter net written premiums totaled $548.0 million, an increase of 4.5% over the same period the previous year. Net investment income was $47.2 million, off 8.3% from the fourth quarter of 2012.

Aspen's fourth-quarter combined ratio was 91.1% compared with 108.0% during the fourth quarter of 2012.

“In 2013 we continued to advance our three levers for enhancing return on equity — capital management, enhancing investment returns and business portfolio optimization,” said Aspen CEO Chris O'Kane in a statement. “Our insurance segment benefited from the success of the build-out of our U.S. platform, which achieved profitability in each quarter last year and is positioned to drive meaningful operating leverage going forward. The reinsurance business had outstanding results in 2013 and we are pleased with our Jan.1 renewals.”

For 2013 as a whole, Aspen had net income of $329.3 million, a 17.4% increase over 2012.

Net written premiums for the year totaled $1.22 billion, down 5.4% from 2012. Net investment income was $186.4 million, down 9.0% from the year-ago period. Aspen's 2013 combined ratio was 92.6% compared with 94.3% for 2012.

Endurance Specialty Holdings Ltd. reported fourth-quarter 2013 net income of $59.0 million, compared with a loss of $40.8 million during the same period in 2012, the Pembroke, Bermuda-based company said in a statement Thursday.

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Fourth-quarter net written premiums totaled $280.1 million, up 6.9% from the fourth quarter of 2012. Net investment income for the quarter was $46.3 million, up 19.9% from the same period in 2012.

For fourth quarter 2013, Endurance posted a combined ratio of 93.0%, compared with 119.2% in the year-ago period.

For all of 2013, Endurance generated net income of $279.2 million, up from $129.8 million in 2012.

Full year 2013 net written premiums totaled $2.67 billion, up 4.7% from 2012. Net investment income for 2013 was $166.2 million, down 4.1% from the previous year.

The company's 2013 combined ratio was 90.2%, compared with 102.3% in 2012.

“Against the backdrop of the strategic reunderwriting and rebalancing of our underwriting portfolios, Endurance generated solid financial results in the fourth quarter and full year of 2013,” said Endurance Chairman and CEO John Charman in a statement. “Our results benefited from lower levels of catastrophe losses and strong favorable reserve development, and we are just beginning to see the positive impact of the significant underwriting investments we have made over the last year.”

Hamilton-based Montpelier Re Holdings Ltd. also reported results on Thursday, posting fourth-quarter net income of $73.4 million, compared with a loss of $26.6 million in the fourth quarter of 2012.

Net written premiums totaled $77.8 million, down 6.7% from those of the same period a year earlier, while net investment income fell 15.5% to $14.2 million.

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The fourth-quarter combined ratio improved to 39.4% compared with 116.0% in the fourth quarter of 2012, when the company sustained significant catastrophe losses.

For all of 2013, Montpelier posted net income of $191.2 million, down 10.8% from 2012.

Net written premiums for the year totaled $603.1 million, down 2.0% from the previous year. Investment income was $64.0 million, off 4.6% from the previous year.

The combined ratio for 2013 improved to 56.1% from 81.0% in 2012.

“The fourth quarter marked a strong end to a successful year for Montpelier,” said Montpelier Re President and CEO Christopher Harris in a statement.

“Despite competitive market conditions during the January renewals, we continued to succeed in achieving preferred signings and in expanding our product mix,” he said. “With our strong balance sheet and specialist underwriting approach, we believe we are positioned to perform well across market cycles.”