Montpelier Re Holdings Ltd., one of the Bermuda reinsurers worst hit by losses from last year?s hurricanes, yesterday saw its shares fall to an all-time low in intra-day trading, on the heels of the company?s chief underwriting officer being replaced.

Chief risk officer Christopher L. Harris is replacing Russell Fletcher III as chief underwriting officer, subject to immigration approvals, Montpelier said in a late-afternoon announcement on Monday.

Montpelier treasurer William Pollett said it was the company?s decision to ?part ways, on an amicable basis? with Mr. Fletcher, who wasn?t leaving because of being poached by one of the Island?s new reinsurers. ?His plans are unknown at this time.?

Neil McConachie, former treasurer and chief accounting officer, left Montpelier in January to join rival start-up Lancashire Holdings. Mr. Pollett said the two departures were the extent of the company?s recent senior management changes.

Montpelier also saw four directors decide to step down in recent weeks ? two left because of new employment commitments, and two directors, who are principals in private equity firms that were initial investors, decided to resign after reducing their stake in the reinsurer.

?The ?retirement? of Russ Fletcher, the second highest paid employee at Montpelier Re is a concern in light of the string of management changes that have occurred over the past few months,? Credit Suisse research analyst Vinay Misquith wrote in an investor note. Credit Suisse said it was maintaining its ?underperform? rating on the reinsurer.

Montpelier?s shares fell by as much as 18 cents, or 1.12 percent, to $15.88, in intraday trading yesterday, down from a previous low of $16.01. The shares, which have traded as high as $36.35 in the last year, recovered their losses by the end of the day, gaining 12 cents to $16.18 on the New York Stock Exchange.

Montpelier?s shares have slumped since the reinsurer recorded losses from last year?s hurricanes exceeding $1 billion. The company has since tapped capital markets to replenish the losses, issued a catastrophe bond and stepped up its ability to participate in the retrocessional reinsurance market by establishing ?sidecar? reinsurer Blue Ocean.

A continuing convergence between the capital markets and the insurance sector is creating the need for insurance executives to have increasing investment knowledge, Mr. Pollett said.

Mr. Harris is qualified as an actuary, an underwriter and a certified financial analyst. He joined Montpelier in May, 2002, five months ahead of the company?s initial public offering on the New York Stock Exchange.

?It made sense to have the risk management side under the same umbrella as underwriting,? Mr. Pollett said of the decision to put Mr. Harris in charge of risk management, a division that comprises modelling and actuarial functions, and underwriting.

David Sinnott, chief reinsurance officer, will continue to oversee the company?s reinsurance business, which accounts for 90 percent of Montpelier?s business.