NEW YORK (Bloomberg) ? Montpelier Re Holdings Ltd., which reported a third-quarter net loss of $875 million from hurricane claims, lowered its quarterly dividend by 79 percent.

Montpelier, a Bermuda-based reinsurer, cut the dividend to 7.5 cents a share from 36 cents, the company said in a statement today. It is payable on January 13, 2006, to shareholders as of Dec. 31, 2005.

Reinsurers including Montpelier are saving funds after Hurricane Katrina and other storms wiped out as much as 19 percent of the industry?s capital.

Montpelier said instead it will invest the capital in new business as the unprecedented claims justify higher prices.

Price increases should help the company ?deliver very satisfactory returns in 2006,? Chief Executive Officer Anthony Taylor said in the statement.

Natural catastrophes would have wiped out about two thirds of the company?s shareholders? equity had Montpelier not raised $620 million in a share sale.