Bermuda-based Montpelier Holdings reported earnings last year of $240.3 million, or $3.55 per share.

For the fourth quarter, the company said net income stood at $102.4 million, or $1.53 per share. This compared to $99.9 million, or $1.46 per share, during the same period a year prior.

Year on year, 2004's earnings were well below the $407.1 million, or $6.05 per share, posted in the prior period.

Anthony Taylor, president and CEO, said: "Montpelier has produced another strong set of results in the fourth quarter and in 2004. For a property reinsurance company such as ours to achieve a 51.4 percent loss ratio in the worst year ever for natural catastrophes is no mean feat."

The company's combined ratio, a measure of underwriting profitability, stood at a respectable 77.8 percent for the year.

Mr. Taylor, who is to be honoured as leader of the year by the Bermuda Insurance Institute next month, added: "The January renewal season has seen increasing price competition, more acute in the international market than the US market, resulting in a reduced number of risks meeting our return criteria. While pricing remains adequate on the business we have renewed, we have declined a significant number of programs. As a consequence, our bound premium in respect of January 1 renewals has reduced by approximately 20 percent compared to 2004. However, in light of the opportunities we see for the balance of the year, we expect the annual reduction in our overall written premiums to be closer to 10 percent. We continue to believe that superior long-term returns for shareholders will be driven by disciplined underwriting through the cycle."

Kip Oberting, chief financial officer, said: "Net of dividends our capital grew a further $88.4 million in the fourth quarter. Book value growth since our inception, coupled with a reduction in exposures in our insurance portfolio following the January renewals, means that we have a surfeit of capital. We already have in place a meaningful regular dividend and a share repurchase program, and we are actively considering additional capital management measures."

Book value per share at December 31, 2004, on a fully converted basis stood at $26.75, which incorporates the accrual of a 34 cent dividend per share for the quarter.

Montpelier also announced that the net impact expected from storms in the third quarter had risen to $34.7 million, up 16.9 percent from a previous estimate of $239.7 million.

Montpelier management will discuss their results further this morning at 11 a.m.on an investment conference call.

The presentation will be available via a live audio webcast accessible on the Earnings Call page of the Investor Information section of the Company's website at www.montpelierre.bm. A telephone replay of the conference call will be available through February 25, 2005 by dialing 888-286-8010 (toll-free) or 617-801-6888 (international) and entering the pass code: 56182101.