Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, specialty reinsurer Montpelier Re Holdings (NYSE: MRH) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Montpelier's business and see what CAPS investors are saying about the stock right now.

Montpelier facts

Headquarters (Founded)

Pembroke, Bermuda (2001)

Market Cap

$1.15 billion



Trailing-12-Month Revenue

$740.5 million


President/CEO Christopher Harris (since 2008)

CFO Michael Paquette (since 2008)

Return on Equity (Average, Past 3 Years)



$323.1 million / $327.8 million

Dividend Yield



Aspen Insurance (NYSE: AHL)

PartnerRe (NYSE: PRE)

RenaissanceRe (NYSE: RNR)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 96% of the 2,400 members who have rated Montpelier believe the stock will outperform the S&P 500 going forward. These bulls include dmspiff and All-Star NeedaClue7, who is ranked in the top 20% of our community.

Earlier this year, dmspiff listed several of Montpelier's positives: "Great management, reasonable valuations, clean balance sheet. Disaster claims impossible to predict but considering the managements discipline ... this is likely to be a good pick for the long-haul."

Currently, Montpelier even sports a cheapish forward P/E of 7.8. That represents a slight discount to other reinsurance stocks like Aspen (8.5), PartnerRe (9.3), and RenaissanceRe (8.7).

CAPS All-Star NeedaClue7 elaborates on the Montpelier bull case:

After several benign hurricane seasons, the market seems to be getting past its aversion to this stock which originated with their large underwriting losses from Hurricane Katrina. MRH seems on a run to return to more traditional reinsurance company valuation levels which could lead to a mid-$20's stock value .... After that, MRH has to show that it can continue a disciplined approach to pricing and, of course, can diversify its risk portfolio so another Katrina event doesn't happen. I believe they have the right people in place to succeed on all counts.

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