Bermuda-based reinsurers Arch Capital and Montpelier Re both missed analyst expectations as they turned in their first quarter results last night.

Montpelier Re Holdings said net income for the three months to March 31 came in at $48.5 million, or 54 cents a share, versus $36 million, or 54 cents a share, in the same quarter last year.

Excluding net realised and unrealised gains and losses, profit was $46.1 million, or 51 cents a share, compared with $65.5 million, or 97 cents a share, a year earlier, Montpelier said.

The Marketwatch business news website reported that the reinsurer, which was hit hard in the 2005 hurricane season, was expected to earn 84 cents a share in the period, according to the average estimate of ten analysts in a Thomson First Call survey.

Net written premiums almost halved in the period to $145.7 million as the company cut some of its exposure to high risk areas, ended a three-year contract with Bermuda-based Aspen Insurance and didn?t re-new certain types of reinsurance, such as standard offshore marine business.

Montpelier also turned down a significant amount of renewal and new business early in the first quarter because it didn?t meet the company?s return targets.

Pricing of US property reinsurance has increased ?significantly? recently and Montpelier is well positioned to participate in upcoming renewals, chief executive Anthony Taylor said in a statement.

Montpelier closed up one cent to $16.35 at the close of trading yesterday, but was down 17 cents to $16.18 in after-hours trading.

Meanwhile, Arch Capital Ltd. last night said first-quarter profit rose 14 percent from the year-ago period on an increase in premiums written.

The Bermuda-based company reported quarterly profit available to shareholders rose to $129.6 million, or $1.71 per share, from $115.9 million, or $1.57 per share.

Operating income available to common shareholders rose to $143.1 million, or $1.89 per share, from $111.9 million, or $1.51 per share, a year earlier.

Analysts, on average, projected earnings of $1.77 per share.

Gross premiums written rose to $1.17 billion from $980.7 billion in the year-ago period.

Revenue rose to $840.3 million from $753.6 million.

Arch Capital shares lost 86 cents, to $58.92 in after-market electronic trading.

Shares closed on the Nasdaq at $59.78.