Montpelier Re Holdings Ltd. Welcomes Revision of Rating Outlook to Stable by Standard & Poor's

Hamilton, Bermuda: May 12, 2008 -- Montpelier Re Holdings Ltd. (NYSE:MRH) today welcomed the announcement by Standard & Poor's Ratings Services that it had revised its outlook on Montpelier Re Holdings Ltd. and its core subsidiary, Montpelier Reinsurance Ltd., to stable from negative. At the same time, Standard & Poor's affirmed its 'BBB' counterparty credit rating on Montpelier Re Holdings Ltd. and its 'A-' counterparty credit and financial strength ratings on Montpelier Reinsurance Ltd.

In their May 9, 2008 bulletin, Standard and Poor's said, "The revised outlook reflects the companies' (collectively referred to as Montpelier) meaningful improvements in enterprise risk management (ERM) over the past two years. It is also based on management's reduction of the group's risk exposure to a single event after hurricanes Katrina, Rita and Wilma in 2005, which revealed a higher risk profile than expected."

The bulletin continued, "The ratings on Montpelier reflect the group's strong competitive position based on its market position and scale within the Bermudian reinsurance market, improved ERM, and strong capital adequacy. Offsetting these positive factors are a higher risk profile than that of its more diversified peers, good but volatile operating performance, a transitioning management team in new roles, and execution risk of its diversification strategy involving its new operating platforms."

Montpelier Re Holdings Ltd., through its operating subsidiaries, is a premier provider of global property and casualty reinsurance and insurance products. Additional information can be found in Montpelier's public filings with the Securities and Exchange Commission.

Source: Montpelier Re Holdings Ltd.