Montpelier Re Q4 Net $140 Million; $362 Million FY; Book Value up 33%

February 16, 2007

Bermuda-based Montpelier Re Holdings Ltd. reported comprehensive income for the quarter and year ended December 31, 2006 of $140 million and $362 million for the full year, or $1.44 and $3.86 per diluted common share, respectively.

Operating income, which excludes realized investment and foreign exchange gains and losses, was $111 million for the fourth quarter and $286 million for the year, or $1.14 and $3.05 per diluted common share respectively.

The bulletin noted that Montpelier Re “ended 2006 with a fully converted book value per share of $15.46, a return of 10.4 percent for the quarter and 33.2 percent for the year, inclusive of dividends.”

Chairman and CEO Anthony Taylor commented: “Our quarterly combined ratio was 35.7 percent, a reflection of a favorable pricing environment, the low level of catastrophe losses, zero development of the 2004 and 2005 hurricane reserves and $17 million of net favorable reserve development on prior accident years.”

He noted that “a 33.2 percent return represents a fine result for a transitional year. We believe that our focus on short-tail lines of business is the optimal strategy to maximize growth in book value per share over the long run. We continue to explore creative ways to leverage our platform through traditional and non-traditional channels to enhance that return.”

The full report and more detailed information may be obtained on the Company’s web site at: A replay of the earnings conference call is also available on the web site until March 15, or by calling1-877-660-6853 (toll-free) or 1-201-612-7415 (international) and entering the account # 286 and the conference ID # 227515.

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