Max Re Capital Reports Lower 2Q Net Income

August 2, 2004

Max Re Capital Ltd., based in Bermuda, reported lower net income for the second quarter of 2004, compared with the same period in 2003. Income for the first six months of this year remains higher than that of the first half of 2003.

For the three months ended June 30, 2004, the company reported net income of $12.6 million, or net income of $0.26 per diluted share, significantly lower than its net income of $30.8 million, or net income of $0.81 per diluted share, for the three months ended June 30, 2003.

Net operating income before minority interest, which represents net income before minority interest reduced/increased by net realized gains/(losses) on sale of fixed maturities, for the three months ended June 30, 2004 was $15.2 million, or net operating income of $0.32 per diluted share. For the three months ended June 30, 2003 net
operating income before minority interest of $36.0 million, or net operating income of $0.79 per diluted share.

For the six months ended June 30, 2004, the company had net income of $55.6 million, or net income of $1.13 per diluted share, compared to $45.4 million, or $1.19 per diluted share, for the six months ended June 30, 2003.

For the six months ended June 30, 2004, the company had net operating income before minority interest of $52.4 million, or net operating income of $1.07 per diluted share, compared to $50.7 million, or $1.12 per diluted share, for the six months ended June 30, 2003.

The company also announced the addition of Peter A. Minton to its Board of Directors.

Minton serves as executive vice president and chief risk officer of the company’s principal operating subsidiary, Max Re Ltd.

From 1999 to 2000, Minton served as managing director and head of Fixed Income Research for Scudder Kemper Investments. From 1996 to 1999, he served as a senior vice president of Investments at General Reinsurance Company. From 1991 to 1996, Minton held the position of principal and head of Fixed Income Strategy at Morgan, Stanley & Company. From 1984 to 1991, he served as vice president and portfolio manager at CMB Investment Counselors. Prior to joining CMB Investment Counselors, Minton served as a tax planner in the Tax Department of Ernst & Whinney between 1981 and 1984.

Max Re Capital also renewed the employment contract of Robert J. Cooney to serve as its chairman, president and CEO for a term of five years.

The company’s Board of Directors recently declared a dividend of $0.03 per common share. The dividend is payable on Aug. 27, 2004, to shareholders of record on Aug. 13, 2004.

Max Re Capital Ltd., through its principal operating subsidiaries, Max Re Ltd., Max Insurance Europe Limited and Max Europe Limited, offers customized risk financing solutions to property and casualty insurers, life insurers, life and health insurers and large corporations.

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