Montpelier Announces Formation of Lloyd's Managing Agent

HAMILTON, Bermuda--(Business Wire)--
Montpelier Re Holdings Ltd. (NYSE:MRH) announced today that it has
received approval from the Financial Services Authority and Lloyd's to
establish a wholly-owned Lloyd's Managing Agent subsidiary, Montpelier
Underwriting Agencies Limited ("MUA"), which will assume the
management of Montpelier Syndicate 5151 for the 2009 Underwriting Year
of Account with effect from 1st January 2009.

Syndicate 5151, which underwrites a book of non-marine property
and engineering classes and a limited amount of specialty casualty
business sourced from the London, U.S. and European markets, began
trading on 1st July 2007, under the management of Spectrum Syndicate
Management Limited.

Giuseppe Perdoni has been appointed Managing Director of MUA, and
Peter Rand has been appointed Director of Underwriting. John Goldsmith
and Terry O'Neill have been appointed independent Non-Executive
Directors.

Richard Chattock, active underwriter of Syndicate 5151 since its
inception, also joins the board, along with Mike Paquette, Chief
Financial Officer of Montpelier, who has been appointed Finance
Director. Chris Harris, President and Chief Executive Officer of
Montpelier, and Nicholas Newman-Young, former Managing Director of
Montpelier Marketing Services (UK) Limited, become Non-Executive
Directors while Tom Busher, Deputy Chairman of Montpelier and Head of
European Operations, assumes the role of Chairman.

Montpelier Chairman, Anthony Taylor, said: "The establishment of
our own Lloyd's Managing Agency begins a new chapter in the
development of our international platform."

Montpelier Re Holdings Ltd., through its operating subsidiaries in
Bermuda and the U.S. and in its Lloyd's syndicate in the UK is a
premier provider of global property and casualty reinsurance and
insurance products. Additional information can be found in
Montpelier's public filings with the Securities and Exchange
Commission.

Notes for Editors:

Giuseppe Perdoni (ACA ACII)

Giuseppe Perdoni is a Chartered Accountant and was formerly
Company Secretary of Advent Capital (Holdings) PLC, an AIM admitted
company, and the Director of Advent Underwriting Limited responsible
for Compliance, Risk Management and Internal Audit.

Peter Rand

Peter Rand was formerly a Non-Executive Director and independent
Peer Reviewer of Argenta Syndicate Management Limited and served as
Non-Executive Chairman between 2004 and 2005. Peter was formerly the
Active Underwriter of Mitsui Sumitomo Syndicate 3210 and the
International Property Reinsurance Underwriter at the Jago Managing
Agency and a Director of DP Mann Underwriting Agencies Ltd.

John Goldsmith

John Goldsmith was Chairman of Denis M Clayton & Co Ltd (Towers
Perrin Claytons) and Clayton Group Ltd, a London insurance and
reinsurance broking operation which now forms part of the Reinsurance
business of Towers Perrin, until his retirement on 30th September
2007.

He was also a director of The Griffin Insurance Association Ltd, a
UK insurer of professional indemnity risks of a selected group of
insurance broking firms, and served on the London Market Brokers'
Committee (LMBC) and was Chairman of the Brokers' Reinsurance
Committee, a sub committee reporting to the LMBC, also until his
retirement.

John is also a Non-Executive Director of THB Group PLC and Lloyd's
Managing Agency Cathedral Underwriting Ltd.

Terry O'Neill

Terry O'Neill is a Consultant in the Insurance and Reinsurance
practice of the London office of Clifford Chance. He was a partner
with the firm from 1980 to 2007. He has worked on all aspects of
insurance and reinsurance and many major issues which have affected
the market. He became a Solicitor Advocate in 1994. He is the joint
author, with Jan Woloniecki, of The Law of Reinsurance (2nd Edition,
2004, published by Thomson Sweet & Maxwell). In 2006 he became a non
executive director of Arthur J Gallagher (UK) Limited where he chairs
the Risk Management and Compliance Committee and sits on the Audit
Committee. He is a member of the City of London Law Society Insurance
Committee.

Application of the Safe Harbor of the Private Securities
Litigation Reform Act of 1995:

This press release contains, and Montpelier Re may from time to
time make, written or oral "forward-looking" statements within the
meaning of the United States (the "U.S.") federal securities laws,
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, that are not historical facts,
including statements about our beliefs and expectations. All
forward-looking statements are based upon current plans, estimates and
projections. Forward-looking statements rely on a number of
assumptions concerning future events and are subject to a number of
uncertainties and various risk factors, many of which are outside the
Company's control, that could cause actual results to differ
materially from such statements. See "Risk Factors" contained in our
Annual Report on Form 10-K for the fiscal year ended December 31,
2007, as filed with the Securities and Exchange Commission. In
particular, statements using words such as "may," "should,"
"estimate," "expect," "anticipate," "intend," "believe," "predict,"
"potential," or words of similar import generally involve
forward-looking statements.

Important events and uncertainties that could cause the actual
results, future dividends or future common share repurchases to differ
include, but are not necessarily limited to: market conditions
affecting our common share price; the possibility of severe or
unanticipated losses from natural or man-made catastrophes; the
effectiveness of our loss limitation methods; our dependence on
principal employees; our ability to execute the business plan of our
new insurance and reinsurance initiatives effectively, including the
integration of those operations into our existing operations;
increases in our general and administrative expenses due to new
business ventures, which expenses may not be recoverable through
additional profits; the cyclical nature of the reinsurance business;
the levels of new and renewal business achieved; opportunities to
increase writings in our core property and specialty reinsurance and
insurance lines of business and in specific areas of the casualty
reinsurance market; the sensitivity of our business to financial
strength ratings established by independent rating agencies; the
estimates reported by cedants and brokers on pro-rata contracts and
certain excess of loss contracts where the deposit premium is not
specified in the contract; the inherent uncertainties of establishing
reserves for loss and loss adjustment expenses, particularly on
longer-tail classes of business such as casualty; our reliance on
industry loss estimates and those generated by modeling techniques;
unanticipated adjustments to premium estimates; changes in the
availability, cost or quality of reinsurance or retrocessional
coverage; changes in general economic conditions; changes in
governmental regulation or tax laws in the jurisdictions where we
conduct business; our ability to assimilate effectively the additional
regulatory issues created by our entry into new markets; the amount
and timing of reinsurance recoverables and reimbursements we actually
receive from our reinsurers; the overall level of competition, and the
related demand and supply dynamics in our markets relating to growing
capital levels in the reinsurance industry; declining demand due to
increased retentions by cedants and other factors; the impact of
terrorist activities on the economy; and rating agency policies and
practices. These and other events that could cause actual results to
differ are discussed in detail in "Risk Factors" contained in our
annual report on Form 10-K for the year ended December 31, 2007, which
we have filed with the Securities and Exchange Commission.

Montpelier undertakes no obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise. Readers are cautioned not to
place undue reliance on these forward-looking statements, which speak
only as of the dates on which they are made.

Montpelier Re Holdings Ltd., Hamilton
Investors:
William Pollett, Treasurer & SVP, 441-297-9576
or
Media:
Jeannine Klein Menzies, Corporate Affairs Manager
441-297-9570

Copyright Business Wire 2008