Montpelier Re files for $1 bln mixed shelf Mon Sep 26, 2005 09:51 AM ET WASHINGTON, Sept 26 (Reuters) - Montpelier Re Holdings Ltd. (MRH.N: Quote, Profile, Research) filed with regulators on Monday to periodically sell up to $1 billion in common and preference shares, debt securities and other securities. The Bermuda-based provider of property and casualty reinsurance and insurance products said in a registration statement with the U.S. Securities and Exchange Commission that it will use the proceeds for working capital, capital expenditures, acquisitions and general corporate purposes.
Subj: Re: Montpelier -files for more dilution By: benanglin2 Date: 09/26/05 06:57 pm
Pelorus, The big negative in MRH is the hurricane season is here until Nov. 30......it ain't done. And there is a distinct likelihood it will be here year after year for at least the next 10 yrs...could be 20 yrs. We are in a bad hurricane cycle, and they are very predictable now. Tropical storm weather is the big culprit. I don't see how you MRH can make any money given that scenario. ______________________________________________
<<"We are in a bad hurricane cycle, and they are very predictable now.">>
Couldn't have said it better myself. Predictability is a great thing for an insurer (or a re-insurer). Given that these events are "VERY PREDICTABLE" [emphasis added], insurers price their products accordingly
<<"I don't see how you MRH can make any money given that scenario.">>
Easy. It's called pricing power.
And once this year's policies are up for renewal, guess what direction the pricing will go?
Ps: I am sorry that you missed the ride up from the low 20s (hitting $22 and change just last week), all the way up to $26 bucks. Must suck to have missed the train; must suck even more that your hopes of Rita sticking it to MRH didn't play out as planned.