This page includes Regulatory news filings supplied by issuers listed on the BSX. Please note the BSX is not responsible for the content, accuracy or completeness of announcements filed by issuers and disclaims all liability for any loss arising from reliance on information contained within issuer announcements.

Montpelier Re Holdings Limited Announces Secondary Offering Of Common Shares

10 10 2004

HAMILTON, Bermuda: March 8, 2004 - Montpelier Re Holdings Ltd. (NYSE -- MRH) announced today that affiliates of White Mountains Insurance Group, Ltd. and funds managed by Prospector Partners, LLC plan to offer approximately 4,785,540 common shares of Montpelier pursuant to an effective shelf registration statement. Notwithstanding the offering, White Mountains' beneficial ownership of shares of Montpelier will only decline to 13,472,357.5, as White Mountains has also indicated it intends to purchase currently exercisable warrants to acquire 2,390,785.8 shares of Montpelier from an existing warrantholder on March 15, 2004. Montpelier will not be selling any common shares in connection with the offering and will not receive any proceeds from the offering.

White Mountains has indicated that this offering is being made in connection with an internal restructuring of its business and that, together with additional steps White Mountains may take, a change in the treatment of its Montpelier investment under US generally accepted accounting principles may result. White Mountains has further indicated that, after giving effect to both the sale of the shares in this offering and the acquisition of the warrants, its fully converted ownership percentage of Montpelier common shares will be approximately 18.4%.

The joint book-running managers for the offering are Banc of America Securities LLC and Morgan Stanley. Co-managers for the offering are Credit Suisse First Boston, Deutsche Bank Securities and Lehman Brothers.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the common shares in any state in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.

Any offering will be made only by means of a written prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. Copies of the written prospectus, when available, may be obtained from Banc of America Securities LLC, 9 West 57th Street, New York, New York 10019 or Morgan Stanley, 1585 Broadway, New York, New York 10036.

Montpelier Re Holdings Ltd., through its operating subsidiary Montpelier Reinsurance Ltd., is a premier provider of global property and casualty reinsurance and insurance products. Montpelier Reinsurance Ltd. is rated "A" (Excellent) by A.M. Best Company, "A3" (Good) by Moody's Investor Service and "A-" (Strong) by Standard & Poors, and was founded in December 2001. During the 12 months ended December 31, 2003, Montpelier underwrote $809.7 million in gross premiums written. Shareholders' equity at December 31, 2003 was $1.7 billion. Additional information can be found in Montpelier's public filings with the Securities and Exchange Commission.

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

This press release contains, and Montpelier may from time to time make,written or oral "forward-looking statements" within the meaning of the U.S. federal securities laws. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.