Montpelier Re Holdings Ltd reported an operating income of $1.23 per share for the first quarter 2012, crushing analysts expectations of 65 cents.The company, which provides short-tail reinsurance and other specialty lines, beat the average estimates of five analysts according to Yahoo Finance, and recorded a quarterly return on common equity of 5.3 percent.Montpelier Re reported a $107 million profit, or $1.74 per share, compared to a $104.3 million net loss during the same quarter last year.The company also reported a book value of $24.30 per share, representing a 7.5 percent increase from December 31, 2011, after taking into account common share dividends declared during the quarter.Gross premiums written increased by two percent in the quarter, but were up 13 percent when adjusting for reinstatement premiums ($14 million) and the fourth quarter 2011 sale of its US excess and surplus lines business, MUSIC ($10 million).“We were very pleased to kick off 2012 with solid performance across the board,” said Christopher Harris, president and CEO. “The underwriting and investment teams at Montpelier executed well and combined to deliver 7.5 percent growth in book value per common share, and we are well positioned to respond to opportunities as the year develops.”Montpelier Re reported a combined ratio of 59 percent for the quarter.Net investment income was $18 million, and the total return on the investment portfolio was 1.7 percent for the first quarter of 2012.During the first quarter of 2012, Montpelier Re spent $37 million repurchasing a total of 1.9 million shares at an average price of $19.14 per share. The company also reported that so far during the second quarter of 2012, it has spent $20 million repurchasing a further 1.02 million shares at an average price of $19.50.As of March 31, 2012, shareholders’ equity was $1.6 million and total capital was $1.9 million.