On April 25, Montpelier Re
- Net income skyrocketed to $73.3 million from $39.8 million, helped by a nearly 10% improvement in the combined ratio.
- The first-quarter loss ratio included $35 million in losses from the windstorm Kyrill, which accounted for 24.5 points of the combined ratio.
- Other big drivers of income improvement were a big drop in acquisition costs and a swing from a net realized loss in the investment portfolio in last year's first quarter to a $15 million net realized gain this year.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
% Change* |
|
|---|---|---|---|
|
$143 |
$131 |
8.6% |
|
|
Investment Income |
$33 |
$29 |
14.9% |
|
Net Income |
$73 |
$40 |
84.2% |
|
EPS |
$0.76 |
$0.44 |
72.7% |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Loss Ratio |
41.8% |
38.7% |
3.10% |
|
Expense Ratio |
23.8% |
37.0% |
(13.20%) |
|
65.6% |
75.7% |
(10.10%) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
% Change |
|---|---|---|---|
|
Investments |
$2,709 |
$2,791 |
(2.9%) |
|
Cash and Equivalent |
$408 |
$230 |
77.3% |
|
Liabilities |
|||
|---|---|---|---|
|
$1,006 |
$1,685 |
(40.3%) |
|
|
Unearned Premiums |
$305 |
$291 |
5.1% |
|
Long-Term Debt |
$427 |
$352 |
21.3% |
The balance sheet reflects the company's health.
Related Foolishness:
- Foolish Forecast: Montpelier Re Awaits Storm Surge
- Montpelier Re Ensures Profits
- Disaster Relief for Montpelier
Montpelier Re is a Motley Fool Hidden Gems recommendation and a Stock Advisor pick. Try any of our investing services free for 30 days.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Fool contributor Emil Lee is an analyst and a disciple of value investing. He owns shares in Montpelier Re. Emil appreciates your comments, concerns, and complaints. The Motley Fool has a disclosure policy.
