Odyssey Re Holdings Corp. Announces 2Q Results

August 10, 2001

Odyssey Re Holdings Corp. reported its second quarter 2001 net income of $21.9 million, an increase of 110.6 percent compared to $10.4 million in the same quarter of the prior year.

Catastrophe losses included in the second quarter were within normal expectations. Net income for the 2001 second quarter was $0.33 per common share, based on 65,527,029 shares issued and outstanding at June 30, 2001.

For the first six months of 2001, net income totaled $40.6 million, or $0.62 per common share based on 65,527,029 shares issued and outstanding at June 30, 2001, compared to $24.3 million for the first six months of 2000. Catastrophe losses were, in aggregate, within expectations in the first six months of 2001, with no single event exceeding $5 million.

Income before taxes increased 118.7 percent in the second quarter of 2001 to $32.8 million compared to $15.0 million in the second quarter of 2000. For the first six months of 2001, income before taxes totaled $60.9 million compared to $35.1 million for the comparable prior year period, a 73.5 percent increase.

Gross premiums written in the second quarter of 2001 were $260.6 million, an increase of 21.7 percent from $214.2 million in the second quarter of 2000. For the first six months of 2001, gross premiums written increased 26.4 percent to $512.4 million from $405.5 million in the comparable prior year period. Included in the increase in gross premiums written is $67.6 million written in the new EuroAsia division for the first six months of 2001.

The combined ratio was 101.8 percent for the second quarter of 2001 versus 108.2 percent for the comparable 2000 quarter. For the first six months of 2001, the combined ratio was 102.5 percent compared to 108.4 percent for the first six months of 2000.

Net investment income was $31.1 million in the second quarter of 2001 compared to $28.1 million in the second quarter of 2000, an increase of 10.7 percent. For the first six months of 2001, net investment income fell 2.7 percent to $60.4 million from $62.1 million in the comparable prior year period.

Net realized investment gains were $5.0 million for the second quarter of 2001 compared to $0.8 million net realized losses in the second quarter of 2000. For the first six months of 2001, net realized gains were $8.5 million compared to net realized losses of $2.4 million for the first six months of 2000.

At June 30, 2001, investments and cash totaled $2.6 billion and consolidated assets and stockholders’ equity were $4.4 billion and $862.8 million, respectively. Book value per common share outstanding at June 30, 2001 was $13.17.

Prior to the Company’s release of its second quarter earnings, Standard & Poor’s, in its press release dated August 3, 2001, raised OdysseyRe’s counterparty credit and financial strength ratings to “A-” from “BBB+.”

OdysseyRe is a leading U.S.-based underwriter of property and casualty reinsurance on a worldwide basis, with principal locations in the U.S., London, Paris, Singapore, Latin America and Toronto.

Visit OdysseyRe’s website, www.odysseyre.com, for additional information about the company. In addition, anyone may visit OdysseyRe’s website to view the company’s press releases and its filings with the Securities and Exchange Commission, which provide additional data regarding the company’s quarterly and year-to-date results. These documents may be found on OdysseyRe’s website under “Financial Information.”

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