Montpelier Re Holdings Ltd. posted second quarter 2006 income of $57.6 million, a 47 percent decline from $108.7 million posted in the same quarter 2005.

This year?s quarter includes $19 million of adverse development, mostly from Hurricane Wilma.

Broken down, earnings per share were 63 cents in the second quarter of 2006 compared to $1.62 in the second quarter of 2005.

Operating income for the second quarter 2006 was $53.5 million or 58 cents per share compared with $95.6 million or $1.43 per share in the second quarter of 2005.

The Bermuda-based property and casualty reinsurer was expected to earn 73 cents a share, according to 19 analysts in a Thomson First Call survey.

Anthony Taylor, Chairman and CEO, said the quarter was ?satisfactory? as pricing in the company?s core markets continued to be firm and there was ample opportunity, particularly in the US, to deploy capital at attractive expected returns.

During the quarter, Montpelier completed a $100 million private equity investment by WL Ross and Co., which enabled it to take increased advantage of attractive opportunities in June and July renewals.

The company also agreed to a $180 million forward sale agreement with Credit Suisse on May 31, 2006.

Montpelier shares closed at $18.15, down 49 cents or 2.63 percent on a volume of 1.1 million shares on the New York Stock Exchange.

Net Income: $57.6 million, a 47 percent decline from $108.7 million in the second quarter 2005

Net income broken down per share: 63 cents per share compared to $1.62 per share a year ago

Operating income: $53.5 million, a 44 percent decline from $95.6 million in the same quarter a year ago

Gross premiums written: $296.2 million, an 8 percent improvement from $275.6 million in the same period a year ago

Net premiums written: $271.9 million, a 17 percent improvement from $231.6 million in the same period a year ago

Net investment income: $30.4 million, a 60 percent improvement from $19.1 million a year ago

Combined ratio: 72.9 percent compared to 64.6 percent during the same period a year ago

Shareholders? equity increased to $1.3 billion at June 30, 2006 compared to $1.1 billion at December 31, 2005