Montpelier Re in $450 Financing Deal with Fleet; To List Shares on Bermuda Exchange

July 3, 2003

Bermuda-based Montpelier Reinsurance Ltd. has concluded an arrangement with The Capital Markets division of Fleet Securities, which will provide it with a $450 million secured committed revolving letter of credit facility. It also announced plans for a secondary listing of its common shares on the Bermuda Stock Exchange.

Fleet National Bank announced that it had acted as administrative agent on the transaction, and noted that participating banks included: “Barclays Bank plc, ING Bank N.V., The Royal Bank of Scotland, The Bank of New York, Credit Suisse First Boston, Bank One, and Bank of America,” and that the “proceeds will be used to support Montpelier Re’s letter of credit needs.”

Montpelier Re President and CEO Anthony Taylor stated: “Our new letter of credit facility allows us to support our existing operations, while providing the financial flexibility for future strategic growth.”

Fleet’s Director of Financial Institutions, David Bosselait, indicated that the bank had “appreciated the opportunity to work with Montpelier Re and lead this strategically important credit facility for them. This leadership underscores Fleet’s commitment to the insurance industry and our understanding of this segment’s unique needs.”

In a separate announcement the company said that the Listing Committee of the Bermuda Stock Exchange (BSX) had approved the listing of up to 73,526,150 of its Common Shares. James S. McKirdy, Listings and Compliance Manager of the BSX, indicated that the exchange welcomed Montpelier Re’s listing, and noted that it “joins the growing list of Bermuda-domiciled insurance companies to list on the Exchange on a secondary basis.” The company’s primary listing is on the New York Stock Exchange.

“We are delighted to join the Bermuda Stock Exchange. Montpelier Re is very proud of its Bermuda base, and we look forward to being listed as a member of such an innovative and respected international market,” Taylor stated.

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