Montpelier Re Holdings Q3 Net Income $110 Million

October 27, 2006

Bermuda-based Montpelier Re Holdings Ltd. reported comprehensive (overall net) income for the quarter ended September 30, 2006 of $110 million, or $1.13 per diluted common share. Net income excluding net realized investment gains and losses was $76 million for the third quarter, or 78 cents per diluted common share.

“Fully converted book value per share is $14.07 at September 30, 2006, which represents a return of 8.8 percent for the quarter and 20.5 percent for the year to date, inclusive of quarterly dividends of 7.5 cents per share,” the bulletin noted.

Chairman and CEO Anthony Taylor, commented: “Our combined ratio was 58.3 percent, a reflection of a favorable pricing environment, the low level of catastrophe losses in the quarter, net zero development of the 2004 and 2005 hurricane reserves and $8 million of net favorable reserve development on prior accident years. The factors driving the strong pricing environment in our core lines of business show no immediate signs of abating.”

“A year-to-date return of 20.5 percent represents a solid result. We continue to believe that our focus on short-tail lines of business will prove to be the optimal strategy to maximize growth in book value per share over the long run.”

The Company, which is part of the White Mountains Group, has done some serious retrenching in 2006. Net premiums written for the third quarter were $107.8 million, compared to $237.7million in Q3 2005. For the first nine months they dropped to $525.4 million from $748.7 million.

However, Montpelier Re significantly reversed its underwriting loss of $907.9 million in the third quarter of 2005 – largely due to hurricane related claims – with a $63 underwriting million profit in Q3 2006. Its combined ration for the period was 58.3 percent, compared to a whopping 422.7 percent in 2005.

The full report and a Financial Supplement is posted on the Company’s Website at:, for more detailed financial information. A telephone replay of the investors and analysts conference call is also available through November 26, 2006 by dialing 1-877-660-6853 (toll-free) or 1-201-612-7415 (international) and entering the account # 286 and the conference ID # 215508.

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