One of Bermuda's newest reinsurers Montpelier Re has posted net income of more than $25 million for the third quarter.

The company, which recently went public on the New York Stock Exchange and was one of a wave of new insurance ventures to set up on the Island after the September 11 terrorist attacks, reported net income of $26.5 million for the period ended September 30, 2002 and net income of $78.3 million for the nine month period.

For the quarter, gross premiums written were $193.7 million and $533.8 million for the year to date. Net premiums earned were $106.5 million for the third quarter and $224.5 million for the year to date.

The company, which started writing business less than a year ago in December, 2001, said its strong results were driven by an "encouraging underwriting performance and a solid total return in the investment portfolio".

CEO Anthony Taylor said: "We are very pleased with the premium volumes and rate increases seen in the third quarter and since our inception in December 2001. In the first three quarters of 2002, we benefited from the relatively low level of catastrophe losses."

But the company did have some exposure to the European floods and said it had recorded a related reserve of $25.0 million.

Mr. Taylor added: "Looking forward, the reinsurance market remains strong, our balance sheet is in great shape and, as a result, the outlook for 2003 is excellent."

On the investment side, the company said its net investment income including net realised gains and losses, stood at $16.5 million for the third quarter and $37 million year to date, a total investment return of 2.8 percent for the quarter and 5.7 percent for the nine months. Shareholders' equity at September 30 was $968 million and subsequent to the end of the third quarter, the company's IPO raised net proceeds of $201.2 million.

Despite its status as one of the new kids on the block, Montpelier has some heavyweight insurance veterans at its helm. Mr. Taylor, as CEO and chief underwriting officer , is a veteran of the Lloyd's of London market. Mr. Taylor was formerly deputy chairman of Wellington Underwriting, a publicly traded Lloyd's underwriting vehicle and has 25 years of experience in the world wide reinsurance business. And Montpelier's chairman is John (Jack) Byrne, a legend in the industry with over 50 years experience and honoured earlier this year as Insurance Leader of the Year.