Montpelier Re Holdings reported its third quarter net income swung to $71.7 million from a loss of $66.2 million in the same period last year, thanks to lower catastrophe losses.The company easily beat the expectations of Wall Street analysts posting a net operating income of $49 million — compared to a loss of $24.9 million in the third quarter of 2011. The net operating income of 85 cents per common share comfortably exceeded the 65 cents consensus of analysts polled by Yahoo Finance.Montpelier said net income available to common shareholders was $1.25 per common share or $72 million, each expressed after preferred share dividends.The net impact of realised and unrealised gains from investments and foreign exchange, which is included in net income, was $23 million for the quarter.The Bermuda-based reinsurer said gross premiums written were down 21 percent in the quarter, to $127.7 million.Net investment income was $16 million, and the total return on the company’s investment portfolio was 1.6 percent or $47 million for the quarter.The loss ratio for the quarter was 37 percent, which Montpelier said includes a $16 million loss for a number of smaller catastrophe events in the quarter, including crop losses resulting from the severe drought in the US. The combined ratio was 73 percent for the quarter.Montpelier president and CEO Christopher Harris said: “I am pleased with our year-to-date operating performance. We have generated 18.6 percent growth in fully converted book value per share, and both our Bermuda and Lloyd’s underwriting platforms have delivered strong profitability. Our successful $300 million senior debt refinancing earlier this month further increases our capital flexibility and positions us well as we head into the 2013 renewal season.”As of September 30, 2012, shareholders’ equity was $1.7 billion and total capital was $2 billion.