MontpelierRe saw its net income plummet 99.5 percent during the first quarter compared to the same period in 2007.

In 2008 it reported $0.3 million in net income during the first quarter, compared to $73.3 million in 2007.

The company also reported a comprehensive loss of $1.8 million during the three month period in 2008. A comprehensive income or loss figure is net income minus recognised changes in equity.

The loss ratio for the quarter was 54.5 percent, which includes $42.8 million of large individual risk losses, slightly above the $30 million to 40 million range pre-announced by the company on February 19 due to subsequent claims notices, and $14 million of losses due to European windstorm Emma.

This was offset in part by net favourable prior year reserve development of $21 million, mainly as a result of adjustments to the 2004, 2005 and 2007 catastrophe losses. The combined ratio was 89.7 percent compared to 65.6 percent in the first quarter of 2007.

Anthony Taylor, chairman and CEO, said: "As we indicated in February, the first quarter of 2008 was marked by an unusual frequency and severity of individual risk losses. Current market estimates have increased from our initial February estimate of over $2 billion to as much as $6 billion.

"Turning to the quarter's investment performance, despite the extreme volatility in financial markets which impacted a wide range of asset classes our overall portfolio has stood up well, incurring a slight loss of 0.2 percent on a total return basis."

MontpelierRe repurchased 4,784,764 common shares during the quarter at an average price of $16.33 per share. Since the end of the quarter it has repurchased a further 1,038,080 common shares at an average price of $16.57 per share.

The company reported a book value per share of $17.76 at the end of the quarter, an increase of 12.3 percent over the past 12 months and a decrease of 0.3 percent for the past three months, inclusive of dividends.