Montpelier Re Holdings Ltd. yesterday raised its fourth quarter and full year 2002 estimates ahead of releasing its results in two weeks time.

For the fourth quarter of 2002, Montpelier Re said it expects to report diluted earnings per share of between $1.05 and $1.15, representing annual diluted earnings per share of between $2.70 and $2.80.

Like several other insurers, Montpelier Re chief executive officer Anthony Taylor also predicted that 2003 would be a strong year based on insurance premiums it had secured in the January rate renewal season.

"The fourth quarter was an excellent one for us, especially in terms of lower than expected levels of catastrophe losses," Mr. Taylor said in a press release. "We have completed a full scale review of loss reserves and have benefited from positive development in previously recorded reserves - the European floods being one such example.

"Based on the First Quarter 2003 renewal season, overall rates have been as good as or better than 2002 rates, and volumes and signings are significantly higher than seen twelve months earlier."

Montpelier Re will announce its earnings announcement on February 26.