Max Re Expects to Post 3Q Loss

October 4, 2002

Max Re Capital Ltd., one of Bermuda’s larger p/c reinsurers, announced that it expects to report a net operating loss for the three months ended September 30, 2002, mainly due to lowered returns on its investments.

The company stated that the operating loss “stems principally from the continued low return from the Company’s alternative investment portfolio.” Max Re said it had gotten a “small positive return” on its investment but that the amount wasn’t enough to generate net income.

Robert J. Cooney, Chairman, President and CEO stated, “While we are disappointed in the absolute return of our alternative investment portfolio this quarter, it is reassuring that in the continuing, challenging investment climate, our risk management disciplines result in our alternative investment portfolio producing positive quarterly returns. I’m pleased that appreciation of our fixed maturities portfolio and the impact of our share repurchase program will result in an increase in book value per share as of September 30, 2002, compared to June 30, 2002.”

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