Max Re Capital Ltd. Reports Third Quarter Results

Hamilton, Bermuda: October 28, 2005 - Max Re Capital Ltd. (NASDAQ: MXRE) today reported a net loss for the three months ended September 30, 2005 of $41.0 million, or a net loss of $0.89 per diluted share, compared to a net loss of $9.0 million, or a net loss of $0.20 per diluted share, for the three months ended September 30, 2004. Net operating loss, which represents net loss reduced by net realized gains on sale of fixed maturities, for the three months ended September 30, 2005, was $42.6 million, or a net operating loss of $0.92 per diluted share, compared with a net operating loss of $9.9 million, or a net operating loss of $0.22 per diluted share, for the three months ended September 30, 2004. For the nine months ended September 30, 2005, the Company had net income of $18.1 million, or net income of $0.36 per diluted share, compared to $46.6 million, or $0.96 per diluted share, for the nine months ended September 30, 2004. For the nine months ended September 30, 2005, the Company had net operating income of $15.3 million, or net operating income of $0.31 per diluted share, compared to $42.5 million, or $0.87 per diluted share, for the nine months ended September 30, 2004.

Robert J. Cooney, Chairman, President and Chief Executive Officer, commented, "Losses from natural catastrophes, principally Hurricane Katrina, during the period had a $112.0 million negative impact on our third quarter results. We were pleased with our MDS portfolio return for the period which exceeded our quarterly expectation and partially mitigated the natural catastrophe losses. Max Re's diversification allowed us to produce better results in the third quarter than most of our competitors which, along with our $246.0 million secondary common share offering in October 2005, leaves us well positioned to participate in the expected attractive market for our products in upcoming months."

Gross premiums written for the three months ended September 30, 2005 were $288.0 million, of which $196.3 million came from property and casualty underwriting and $91.7 million from life and annuity underwriting, compared to $280.8 million, $105.8 million coming from property and casualty underwriting and $175.0 million of life and annuity underwriting, for the three months ended September 30, 2004. Net premiums earned for the three months ended September 30, 2005 were $282.5 million compared to $331.1 million for the same period of 2004, the decrease is principally due to $83.2 million less life and annuity premiums written and earned in the three months ended September 30, 2005. Gross premiums written for the nine months ended September 30, 2005 were $988.8 million compared to $904.0 million for the first nine months of 2004. Property and casualty reinsurance, property and casualty insurance and life and annuity reinsurance accounted for 48.0%, 24.8% and 27.2%, respectively, of gross premiums written for the first nine months of 2005. Net premiums earned for the first nine months of 2005 increased 11.5% to $782.7 million compared to $701.8 million for the same period in 2004. The increase principally relates to increased life and annuity business written and earned in the first two quarters of 2005.

Net investment income for the three months ended September 30, 2005 increased to $27.0 million, from $20.1 million for the same period in 2004 and is principally attributable to increased cash and fixed maturities balances held. Net investment income for the nine months ended September 30, 2005 increased $17.1 million, to $75.7 million from $58.6 million for the same period in 2004.

Net gains on alternative investments for the three months ended September 30, 2005 were $35.6 million, net of $12.0 million in reinsurance private equity losses related to hurricane activity, or a 3.00% rate of return, compared to net losses on alternative investments of $14.6 million, net of $15.0 million in reinsurance private equity losses related to hurricane activity, or a negative 1.39% rate of return, for the same period of 2004. For the nine months ended September 30, 2005, alternative investments have returned 4.50%, compared to 2.73% for the same period in 2004. Invested assets were $3.9 billion as of September 30, 2005, with an allocation of approximately 69.0% to cash and fixed maturities and 31.0% to alternative investments.

Acquisition costs for the three months ended September 30, 2005 decreased by 21.2% to $20.5 million compared to $26.0 million for the three months ended September 30, 2004. Acquisition costs for the nine months ended September 30, 2005 decreased by 31.1% to $59.9 million from $87.0 million for the nine months ended September 30, 2004. The reduction is attributable to the change in premium mix, with life and annuity products and property and casualty insurance products typically having lower acquisition costs compared to property and casualty reinsurance products.

Interest expense for the three months ended September 30, 2005 decreased to $6.7 million from

$12.0 million for the same period in 2004. Interest expense for the nine months ended September 30, 2005 increased to $26.4 million from $23.9 million for the same period in 2004.

General and administrative expenses for the three months ended September 30, 2005 were $14.5 million compared to $10.5 million for the same period in 2004 principally due to increased personnel and related costs in 2005, compared to 2004. General and administrative expenses for the nine months ended September 30, 2005 were 5.4% of net premiums earned compared to 4.9% of net premiums earned for the nine months ended September 30, 2004.

Shareholders' equity was $954.3 million at September 30, 2005, compared to $937.0 million at December 31, 2004. Book value per share at September 30, 2005 was $20.69 per share, compared to $20.45 at December 31, 2004. Annualized return on average shareholders' equity for the nine months ended September 30, 2005 was 1.9%.

Max Re Capital Ltd., through its principal operating subsidiaries, Max Re Ltd., Max Insurance Europe Limited and Max Re Europe Limited, offers customized risk financing 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 Prospectus Supplement dated October 11, 2005 to the Company's Prospectus dated October 4, 2005 and other documents previously 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

jimt@maxre.bm