Montpelier Re Announces New US Direct Property Facultative Business

Business Wire, Nov 26, 2007

HAMILTON, Bermuda -- Montpelier Re Holdings Ltd/ (NYSE: MRH) today announced further expansion in the US with the launch of Montpelier Underwriting Inc.'s (MUI) new Direct Property Facultative (DPF) division. This launch follows closely on the August start of both its Brokered Property Facultative (BPF) and Property Treaty divisions. All three have been established to write business on behalf of Montpelier Syndicate 5151 at Lloyd's of London.

The DPF division will open its first office in Kansas City. Doug Johnson, Vice President and Manager of the Western Region, with over 16 years of profitable underwriting experience to his credit, most recently as VP and Manager of the Kansas City office of Catlin (formerly Wellington) Underwriting Inc., will be the leader of this office. Previously he was employed by Employers Re and Lumberman's Underwriting Alliance. Doug Dudleston has also joined the company as Vice President and Senior Underwriter. Mr. Dudleston was previously employed by Catlin, Westrope Associates, Employers Re and Kemper.

MUI's DPF division will underwrite largely non-catastrophe, property business. This business is characterized by large limits, low frequency and is produced directly from US insurers.

Stan Kott, CEO of MUI, said: "This is exciting news for our US operation. Doug Johnson and Doug Dudleston bring experience and expertise plus a commitment to provide the very best response and service standards to their clients. We have known and worked with both Dougs for several years. This continues our aim to underwrite business we know and understand with people we know and trust. We continue to assemble an excellent team of reinsurance professionals and are cautiously and patiently implementing our business plan."

About Montpelier Re

Through our operations in Bermuda, the US and Europe, the Montpelier Group provides customized, innovative, and timely reinsurance and insurance solutions to the global market. For further information about Montpelier Re, please visit our website at www.montpelierre.bm.

Application of the Safe Harbor of the Private Securities Litigation Reform Act of 1995:

This press release contains, and Montpelier Re may from time to time make, written or oral "forward-looking statements" within the meaning of the U.S. federal securities laws, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and other factors, many of which are outside Montpelier's control, that could cause actual results to differ materially from such statements. In particular, statements using words such as "may," "should," "estimate," "expect," "anticipate," "intend," "believe," "predict," "potential," or words of similar import generally involve forward-looking statements.

Important events and uncertainties that could cause the actual results, future dividends or future common share repurchases to differ include, but are not necessarily limited to: market conditions affecting our common share price; the possibility of severe or unanticipated losses from natural or man-made catastrophes; the effectiveness of our loss limitation methods; our dependence on principal employees; our ability to execute the business plan of Montpelier's new insurance and reinsurance initiatives effectively, including the integration of those operations into our existing operations; increases in our general and administrative expenses due to new business ventures, which expenses may not be recoverable through additional profits; the cyclical nature of the reinsurance business; the levels of new and renewal business achieved; opportunities to increase writings in our core property and specialty reinsurance and insurance lines of business and in specific areas of the casualty reinsurance market; the sensitivity of our business to financial strength ratings established by independent rating agencies; the estimates reported by cedants and brokers on pro-rata contracts and certain excess of loss contracts where the deposit premium is not specified in the contract; the inherent uncertainties of establishing reserves for loss and loss adjustment expenses, particularly on longer-tail classes of business such as casualty; our reliance on industry loss estimates and those generated by modeling techniques; unanticipated adjustments to premium estimates; changes in the availability, cost or quality of reinsurance or retrocessional coverage; changes in general economic conditions; changes in governmental regulation or tax laws in the jurisdictions where we conduct business; our ability to assimilate effectively the additional regulatory issues created by our entry into new markets; the amount and timing of reinsurance recoverables and reimbursements we actually receive from our reinsurers; the overall level of competition, and the related demand and supply dynamics in our markets relating to growing capital levels in the reinsurance industry; declining demand due to increased retentions by cedants and other factors; the impact of terrorist activities on the economy; and rating agency policies and practices. These and other events that could cause actual results to differ are discussed in detail in "Risk Factors" contained in our annual report on Form 10-K for the year ended December 31, 2006, and Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2007, June 30, 2007 and September 30, 2007 which we have filed with the Securities and Exchange Commission.