Log In

Reset Password
BERMUDA | RSS PODCAST

Montpelier Re agrees to sell US unit for $55m

Bermuda re/insurer Montpelier Re Holdings Ltd has agreed to sell its US excess and surplus lines business to Selective Insurance Group in a deal worth $55 million.

The sale of Montpelier US Insurance Company (MUSIC) will allow the company to allocate more capital to the underwriting of short-tail reinsurance lines, Montpelier’s chief executive officer Christopher Harris said yesterday.

The deal is expected to add 24 cents per share to Montpelier’s book value per share, according to a company statement.

In the 12 months through June 30 this year, MUSIC accounted for eight percent of Montpelier’s net premium written, the company revealed in an investor update document.

“In the current environment, we believe now is an appropriate time to sharpen our underwriting focus on our core short-tail reinsurance lines,” Mr Harris said.

“This transaction will make us more nimble and will allow us to redeploy additional capital into our Bermuda and London platforms, where we are seeing increasingly encouraging market conditions.”

The deal, which is subject to regulatory approvals, is expected to close before the end of the year.

Montpelier Re CEO Chris Harris

You must be Registered or to post comment or to vote.

Published September 21, 2011 at 10:21 am (Updated September 21, 2011 at 10:20 am)

Montpelier Re agrees to sell US unit for $55m

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon