Bermuda-based Montpelier Re Holdings Ltd. last night reported a third-quarter net loss of $78.2 million, as a consequence of the hurricane season.

This compares to profits of $91 million during the same period in 2003.

Broken down per share, Montpelier Re reported losses of $1.26 per share compared to earnings of $1.44 per share in the third quarter of 2003.

Net unrealised gains on investments were $18.4 million for the quarter and a loss of $3.0 million for the year to date.

In its earnings release, the company reported a combined ratio of 145.2 percent in the quarter compared to 49.2 percent in the same period in 2003.

Montpellier Re wrote $184.5 million in gross premiums during the quarter compared to $146 million the year earlier. Anthony Taylor, president and CEO, said in the earnings statement: ?Montpelier was tested by an unusually intense wind season this year and came through it with greater confidence than ever that our business plan is a sound one.

?With our disciplined focus on multi-line property reinsurance, we expect to produce strong returns in the majority of quarters which don?t contain major loss events, and to suffer a manageable negative return in the infrequent quarters which see significant claim activity.

?We anticipate that this approach is likely to produce superior returns for our shareholders over the cycle.?

Montpelier Re forecasts overall property renewal rates in January will be higher particularly in Florida and the Southeast than seen in 2004 as a consequence of the four large hurricanes.

International property rates are expected to stabilise. Kip Oberting, chief financial officer, said: ?The expected financial impact of the recent storms remains within the range of $185 million to $235 million previously announced.

? The third quarter of 2004 saw our capital reduced by $100.8 million.

?This includes our quarterly dividend of $23.5 million and a share repurchase of $21.9 million.

?Despite the catastrophes and the return of capital to owners we have more capital now than we did at the start of the year.

?We have $84.5 million remaining in our original $150.0 million share repurchase authorisation and will continue to manage capital to meet the underwriting opportunities available.?