Max Re Reports Fourth Quarter Growth

December 31, 2001 was $2.5 million, or $0.08 per share, compared with net income of$8.7 million, or $0.36 per share, for the year ended December 31, 2000.

Robert J. Cooney, Chairman, President and Chief Executive Officer, commented, "We were pleased that Max Re recorded strong premium growth combined with satisfactory investment returns for the fourth quarter 2001. This allowed us to rebound from the poor third quarter financial result, impacted by the September 11 tragedy, and produce a profit for 2001."

Gross written premiums and deposits received for the three months ended December 31, 2001 were $243.7 million, compared to $103.5 million for the same period of 2000, which represents an increase of 135%. Net written premiums for the three months ended December 31, 2001 were $202.3 million, compared to $95.6 million for the same period of 2000. Net earned premiums for the three months ended December 31, 2001 were $243.7 million, compared to $112.9 million for the same period of 2000.

Our gross written premiums and deposits received increased 97% to $806.7 million for the year ended December 31, 2001, from $409.7 million for 2000. Net written premiums for the year ended December 31, 2001 were $594.1 million, compared to $401.8 million for the year ended December 31, 2000. Net earned premiums for the year ended

December 31, 2001 were $500.9 million, compared to $401.4 million for the year ended December 31, 2000.

Total revenue for the three months ended December 31, 2001 was $272.8 million, compared to $146.7 million for the same period of 2000. Total revenue for the yearended December 31, 2001 was $581.0 million, an increase of 29%, compared to $451.3 million for 2000.

The Company's cost of funds declined to 6.31% as of December 31, 2001 from 6.33% as of September 30, 2001. General and administrative expenses for the three months endedDecember 31, 2001 were $6.4 million, a 3.2% increase over the $6.2 million for the sameperiod of 2000. General and administrative expenses for the year ended December 31, 2001 were $21.0 million, or 3.61% of net earned premium and deposits received,

compared to $16.4 million, or 4.09% of net earned premium and deposits received for the year ended December 31, 2000.

The total return on the fixed maturities portfolio was 0.51% for the three months ended

December 31, 2001, which resulted in a total return of 8.55% for the year ended December 31, 2001. The total return on the fixed maturities portfolio was 9.61% for the year ended December 31, 2000.

Net gains on alternative investments for the three months ended December 31, 2001 was

$14.4 million, or 2.61%, compared to net gains on alternative investments of $9.4

million, or 2.40%, for the same period of 2000. Net gains on alternative investments for

the year ended December 31, 2001 were $29.8 million, or 6.69%, compared to $9.6, or

4.22%, for the year ended December 31, 2000.

The rate of return on our invested asset portfolio (both fixed maturities and alternative

investments) was 7.78% for the year ended December 31, 2001, compared to 7.81% for

the year ended December 31, 2000.

Invested assets increased to $1.6 billion as of December 31, 2001, with an allocation of

61.0% to cash and fixed maturities and an allocation of 39.0% to alternative investments.

The ratio of invested assets to minority interest and total shareholders' equity was 2.32 at

December 31, 2001, compared to 1.67 at December 31, 2000.

Minority interest and shareholders' equity reached $699.7 million at December 31, 2001.

Combined book value per share, including conversion of the non-voting Max Re Ltd.

common shares held by the founding investors, at December 31, 2001 was $14.92.

Max Re Capital Ltd., through its principal operating subsidiary, Max Re Ltd., offers

customized reinsurance solutions to property and casualty insurers, life and health

insurers, and large corporations.

The above remarks about future expectations, plans and prospects for the Company are

forward-looking statements for purposes of the safe harbor provisions of the Private

Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and

uncertainties. The factors that could cause actual results to differ materially from those

suggested by such statements include but are not limited to those discussed in the

Company's prospectus filed with the Securities and Exchange Commission. Max Re

undertakes no obligation to publicly update or revise any forward-looking statement

whether as a result of new information, future developments or otherwise.