Max Re Capital Ltd. Reports First Quarter Net Income Of $0.74 Per Diluted Share

Hamilton. Bermuda. April 29. 2005 - Max Re Capital Ltd. (NASDAQ: MXRE) today reported net income for the three months ended March 31, 2005 of $36.8 million, or net income of $0.74 per diluted share, compared to net income of $43.0 million, or net income of S0.87 per diluted share, for the three months ended March 31, 2004. Net operating income, which represents net income reduced by net realized gains on sale of fixed maturities, for the three months ended March 31, 2005 was $36.4 million, or net operating income of $0.73 per diluted share, compared with net operating income of $37.2 million, or net operating income of $0.75 per diluted share, for the three months ended March 31,2004.

Robert J. Cooney, Chairman, President and Chief Executive Officer, commented, "Our gross premiums written grew in the first quarter largely attributable to increased volume in our life and annuity business. Our property and casualty underwriting produced excellent results with a combined ratio of 87.6% for the period. The strong underwriting performance allowed us to achieve reasonable net operating income for the quarter."

Gross premiums written for the three months ended March 31, 2005 were $455.7 million, of which $312.5 million came from property and casualty underwriting and $143.2 million from life and annuity underwriting, compared to $439.5 million, all from property and casualty underwriting, for the three months ended March 31, 2004. Reinsurance and insurance products account for 79.4% and 20.6%, respectively, of property and casualty gross premiums written in the three months ended March 31,2005, compared to 90.5% and 9.5%, respectively, of property and casualty gross premiums written for the three months ended March 31, 2004. The decline in property and casualty premiums written is principally due to the non-renewal of three reinsurance contracts in 2005, which accounted for $164.5 million of gross premiums written in 2004. Net premiums earned for the three months ended March 31, 2005 were $308.3 million compared to $198.9 million for the same period of 2004, the increase principally due to a life and annuity contract written and earned in the first three months of 2005, with no comparative for the same period of 2004.

Net investment income for the three months ended March 31, 2005 increased to $23.7 million, from $18.8 million for the same period in 2004 and is principally attributable to increased holdings of cash and fixed maturities during the three months ended March 31, 2005 compared to the three months ended March 31, 2004. Net gains on alternative investments for the three months ended March 31, 2004 were $14.4 million, or a 1.2% rate of return, compared to net gains on alternative investments of $38.5 million, or a 4.1% rate of return, for the same period of 2004. Invested assets were $3.7 billion as of March 31, 2005, with an allocation of approximately 68.2% to cash and fixed maturities and 31.8% to alternative investments.

Total revenue for the three months ended March 31, 2005 increased 32.3% to $348.1 million, compared to $263.2 million of total revenue for the same period in 2004. Growth in revenue in the three months to March 31, 2005 is principally attributable to the 55.0% increase in net premiums earned over the same period in 2004, partially offset by the 62.6% decrease in net gains on alternative investments.

Losses, benefits and experience refunds were $268.3 million for the three months ended March 31, 2005 compared to $166.4 million for the same period in 2004. The increase in losses, benefits and experience refunds for the three months ended March 31, 2005 is principally attributable to the increase in premiums earned. Loss, benefit and experience refunds expense benefited from net favorable development of $4.0 million during the three months ended March 31, 2005.

Acquisition costs for the three months ended March 31, 2005 decreased by 32.3% to $21.5 million compared to $31.8 million for the three months ended March 31, 2004. The reduction is attributable to the change in premium mix, with life and annuity products typically having lower acquisition costs compared to property and casualty reinsurance and insurance products.

Interest expense for the three months ended March 31, 2005 decreased 47.4% from the same period in 2004. The decrease is principally attributable to a lower average interest crediting rate on funds withheld balances with reinsurers, partially offset by the interest expense on additional funds withheld from those reinsurers during the three months ended March 31, 2005.

General and administrative expenses for the three months ended March 31, 2005 were $15.3 million compared to $10.2 million for the same period in 2004. General and administrative expenses for the three months ended March 31, 2005 were 4.9% of net premiums earned compared to 5.1% of net premiums earned for the three months ended March 31, 2004.

Shareholders' equity was $964.1 million at March 31,2005. Book value per share at March 31,2005 was $20.77 per share, compared to $20.45 at December 31, 2004. Annualized return on average shareholders' equity for the three months ended March 31,2004 was 15.3%.

Max Re Capital Ltd., through its principal operating subsidiaries, Max Re Ltd., Max Insurance Europe Limited and Max Re Europe Limited, offers customized insurance and 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 forwardlooking 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 that could cause actual results to differ materially from those suggested by such statements. For further information regarding cautionary statements and factors affecting future operating results, please refer to the Company's most recent Annual Report on Form 10-K and other documents filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statement whether as a result of new information, future developments or otherwise.

Contact Information:

Keith S. Hynes

Executive Vice President & CFO

441-296-8800

keithh@maxre.bm

N. James Tees

Senior Vice President & Treasurer

441-296-8800

iimt@maxre.brn