Montpelier Announces New US Property Treaty Business

Montpelier's Lloyd's Syndicate 5151 has granted a binder to Montpelier Underwriting Inc. ("MUI"), Montpelier's wholly-owned U.S. Managing General Agent. This represents the second binder granted to MUI by Syndicate 5151 in the past two months. The first binder was for Property Brokerage Facultative reinsurance business.

Based in Hartford, Connecticut, MUI is the centerpiece of Montpelier's growing U.S. insurance and reinsurance underwriting platform.

The new Property Treaty division of MUI will be headed by Kevin Sullivan, Senior Vice President. Mr. Sullivan has over 18 years of profitable underwriting experience to his credit, including the last 3 years at Wellington (now Catlin) Underwriting. He will be joined by Bin Bai, Vice President, who has over 17 years of underwriting experience.

MUI's treaty team will provide proportional and working layer excess of loss protection for property and multi-line programs specializing in the Excess and Surplus Lines market. All other US property treaty business will continue to be written through Montpelier Reinsurance Ltd. in Bermuda.

Stan Kott, CEO of Montpelier's U.S. insurance operations, said: "We are pleased to announce the launch of our second product line and welcome Kevin and Bin to our growing team. Both have strong track records that will be a benefit to the company as we develop our presence in the US market."

About Montpelier Re

Through our operations in Bermuda, the U.S. and Europe, the Montpelier Group provides customized, innovative, and timely reinsurance and insurance solutions to the global market. For further information about Montpelier Re, please visit our website at www.montpelierre.bm.

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 U.S. federal securities laws, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and other factors, many of which are outside Montpelier's control, that could cause actual results to differ materially from such statements. 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 for Montpelier Syndicate 5151 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, 2006, and Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2007 and June 30, 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.