Montpelier Re Holdings Ltd. (NYSE:MRH)

Still recovering from disasterous Hurricane Katrina. But as a surviving company with new

Book was crippled in 2005, but earning power is undervalued. Have faith in management ( even though they put the company in jeopardy in the first place)...

The re-insurance industry is still recovering from Katrina's aftermath. Good things have happened to rates and smart people are buying into the business now. You should too!

good times for re

Reinsurance will make money, though direct insurance companies may not. Rates are high post-Katrina and with vigilance against disasters also high post-Katrina, teh potential for insurance and reinsurance companies to pocket the difference is enticing.

well run company that has been overlooked and unloved for a while, well capitalized and has a good deal of liberty in choosing the right policies (aka walking away from the wrong policies). has good ROIC numbers

First off, one hundred years is a hundred years. Second, the management is diversifying risk and is committed to the business. Third, they are innovating.

Providing reinsurance, MRH was hit hard after Hurricane Katrina as they had not prepared for such a scale of natural disaster. The fact that they had no way *to* prepare has been seen as irrelevant to many investors and the stock has suffered.

The coming years should show steady gains as investors regain their confidence in this excellent company.

I like at $22 target if the 1/1 renewals went well. I know the profitability should be there with no storms, but we need some growth to really help.

This pitch is not going to be real detailed, but I want to put my thoughts out there.

MRH is trading at a low price to book value.
They've taken steps to write better business since Katrina.
Their credit rating is increasing.
I anticipate a steady and increasing dividend from this point.

We didn't have any hurricanes this year, so the 4th quarter report should increase EPS, Book Value, and further strengthen their financial position.

The "Stock Advisor" recommended this stock in the past and I have done some research and concur that the re-insurance industry will continue to do well if you truly believe in global warming leading to more freuqent and severe storm activity. Montpelier is well positioned in this industry.

Business model and strategy for growth are strong, but has recently fallen out of favor as investors focus less on earnings and more on premiums. MRH has dramatically lessened its exposure to risk. Price to book sits at around 1.33. I think $40 per share is reasonable in 2-5 years, and I expect it to occur sooner than later. I also expect the dividend will increase in 12-24 months. (Already sits at 1.6%)

good weather

Reinsurance premiums will generate substancial cash with few disasterous hurricanes in next five years.

premiums are high, payouts are low by historical standards

Next year will bring more upside.

These guys took a big hit in '05 and the

Financials look solid and at 18ish I'm buying.

Good value at this point.