Montpelier Re boosted its profits by almost $18 million in the third quarter despite losses incurred by July’s UK floods.

Net income rose from $83.4 million a year ago to $101.3 million.

The company also reported a fully converted book value per share of $17.03 as at the end of September, representing an increase of 6.6 percent for the quarter inclusive of dividends.

The loss ratio for the quarter was 26.8 percent, which includes $11.4 million, or 8.2 points, of losses incurred as a result of the UK floods in July, offset partially by net favourable prior year reserve development of $4.6 million, or 3.3 points.

Anthony Taylor, chairman and CEO said: “This was a strong quarter, resulting in a 6.6 percent increase in book value per share.

“Since the beginning of 2006, we have grown book value per share by over 48 percent inclusive of dividends.

“Notwithstanding the impact of expenses associated with the roll-out of our first half initiatives, the combined ratio was a very strong 57.9 percent, reflecting what turned out to be a relatively benign catastrophe quarter.

“We continue to make steady progress building out our Lloyd’s and US platforms with both operations biding their first policies in the quarter.

“On the capital front, we have initiated a share repurchase programme, repurchasing approximately 450,000 common shares during the quarter at an average price of $16.02.”