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Montpelier Re Prevails in Arbitration Proceedings
Hamilton, Bermuda – 24 June, 2010 - Montpelier Re Holdings Ltd. (the “Company”; Tickers: NYSE: MRH; BSX: MRH.BH) has been informed that its principal operating subsidiary Montpelier Reinsurance Ltd. (“Montpelier Re”) has prevailed in its previously disclosed arbitration proceedings with Manufacturers Property & Casualty Limited (“MPCL”). The arbitration proceedings involved a dispute concerning two contracts pursuant to which Montpelier Re purchased reinsurance protection from MPCL in 2005 (the “Disputed Contracts”).
The award dismisses MPCL’s claim for rescission of the Disputed Contracts and calls for MPCL to pay Montpelier Re the outstanding losses on the Disputed Contracts plus accrued interest through the date payment is made. The amount of accrued interest due Montpelier Re, calculated through the date of this release, is approximately $2.5 million.
The Company also reports that it does not anticipate any increase in its net loss estimates associated with the Chilean earthquake and windstorm Xynthia over those previously recorded as of March 31, 2010, and also reaffirms its previously announced pre-tax net loss estimate of $20 million from the Deepwater Horizon rig loss.
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.
Contacts
Montpelier Re Holdings Ltd., Hamilton
Investors:
William Pollett, Treasurer & SVP, 441-299-7576
or
Media:
Jeannine Klein Menzies, Corporate Affairs Manager, 441-299-7570