Bermuda reinsurer Montpelier Re Holdings Ltd yesterday posted second-quarter earnings figures highlighted by strong underwriting profitability.

A leading provider of short-tail reinsurance and other speciality lines, Montpelier’s results included a 77 percent combined ratio and a loss ratio of 41 percent for the three months to June 30. Operating earnings per share were 76 cents — falling short of the 99 cents per share consensus forecast of analysts tracked by Yahoo Finance.

The company also reported a fully converted book value per common share of $31.74, a 2.8 percent increase from March 31 and an increase of 8.7 percent from December 31, 2013, each after taking into account common share dividends declared during the period.

Operating income for the quarter was $36 million, or 76 cents per share. Net income was $37 million, or 78 cents per share.

Net income for the quarter included $12 million of realised and unrealised investment gains and $11 million of net foreign exchange losses.

Net premiums written in the second quarter were flat year-over-year, when adjusting for reinstatements, with increased writings within the company’s Montpelier at Lloyd’s and Collateralized Reinsurance segments, offsetting a decrease in writings at Montpelier Bermuda.

The 41 percent loss ratio for the quarter included $24 million of net losses from known catastrophe events in the quarter, offset by $38 million of favourable prior year loss reserve movements.

Net investment income was $12 million for the quarter, and the total return on the investment portfolio was 0.9 percent.

Christopher Harris, President and chief executive officer, said, “Despite a high frequency of smaller industry loss events, we produced solid underwriting profitability with a 77 percent combined ratio, reflecting strong contributions from our growing Montpelier at Lloyd’s and Collateralized Re segments, as well as the benefit of prior period development.

“We believe our nimble underwriting approach, flexible capital base, and excellent client relationships continue to position us well in the current environment.”

During the second quarter of 2014, the company repurchased a total of 863,911 common shares at an average price of $30.18 per share.

During the third quarter of 2014, the company has thus far repurchased an additional 343,800 shares at an average price per share of $31.85.

As of June 30, 2014, the company’s shareholders’ equity was $1.668 billion, and its total capital was $2.067 billion.