Montpelier Re Holdings Ltd.MRH

Morningstar Rating

Stock Research and Analysis

by Morningstar Analysts

Montpelier Re specializes in property catastrophe reinsurance. The firm's leaders inspire significant market respect, yielding cohesive relationships with ceding insurers and brokers, and garnering the firm a narrow economic moat. Our fair value estimate Read more

Bulls Say

The reinsurer is backed by significant shareholder White Mountains WTM, whose capital and connections give Montpelier a useful advantage.

Because Montpelier is backed by deep pockets, it should have little trouble raising incremental capital and winning new business.

Montpelier's investments are outsourced to White Mountains, which reduces operating expenses and enables shareholders to participate in the excellent long-term performance of that group. Read more

Bears Say

New market entry and new capital market instruments have led to more fierce competition and reduced profit prospects for Montpelier.

Montpelier's longer-term potential as an independent entity is constrained by a lack of management depth.

The huge 2005 losses raised still-nagging questions about Montpelier's risk selection and loss controls. Read more

Strategy

Montpelier Re is committed to generating underwriting profitability on primarily short-duration property and specialty products. In addition, the reinsurer intends to reduce some of the volatility in Read more

Management

CEO Anthony Taylor has more than 20 years of underwriting experience at Lloyd's of London and boasts a profitable underwriting record, apart from 2005's immense hurricane losses. Previously, we valued the firm's incentive compensation structure highly, Read more

Profile

Montpelier Re is a Bermuda-based reinsurance company founded by White Mountains Insurance and British reinsurance broker Benfield Group in December 2001. The firm's three Read more

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