Montpelier Re Reports Second Quarter 2013 Financial Results

HAMILTON, Bermuda: 26 July 2013 - Montpelier Re Holdings Ltd. (NYSE: MRH), (“Montpelier” or the “Company”), a leading provider of short-tail reinsurance and other specialty lines, today reported its financial results for the quarter ended June 30, 2013.

Fully converted book value per common share was $27.03, a decrease of 1.3% from March 31, 2013 and an increase of 4.3% from December 31, 2012, after taking into account common share dividends declared during the period.

Operating income for the quarter was $0.93 per share ($50 million), representing a quarterly return on common equity of 3.4%. The net loss to the Company’s common shareholders was $0.52 per common share ($27 million). The net impact of realized and unrealized losses from investments and foreign exchange, which is included in the net loss, was $77 million for the quarter.

The loss ratio for the quarter was 34%, which includes $26 million of net losses from known catastrophe events in the quarter, offset by $48 million of favorable prior year loss reserve movements. The combined ratio was 69% for the quarter.

Net investment income was $17 million and the total return on the investment portfolio was -1.8% for the quarter, –1.1% year-to-date.

Christopher Harris, President and Chief Executive Officer, commented, “In a quarter marked by several industry catastrophe loss events and increasingly competitive market conditions, our insurance teams turned in another strong operating performance. Both our Bermuda and London platforms produced solid profitability and executed well in the important mid-year renewal cycle. We are well positioned to continue executing our focused underwriting and capital management strategy in the second half of 2013.”

During the second quarter of 2013, the Company repurchased a total of 3,033,773 shares at an average price of $25.35 per share ($77 million). During the third quarter of 2013 to date, the Company has repurchased an additional 285,452 shares, at an average price of $25.72 ($7 million).

As of June 30, 2013, the Company’s total shareholders’ equity was $1,670 million, and its total capital was $2,069 million.

Please refer to Montpelier’s June 30, 2013 Financial Supplement for more detailed financial information, which is posted on the Company’s website at www.montpelierre.bm.

Montpelier, 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.

Earnings Conference Call:

The Company will conduct a conference call, including a question and answer period, on Friday, July 26, 2013 at 8:00 a.m. Eastern Time.

The presentation will be available via a live audio webcast accessible on the Company's website at www.montpelierre.bm or by dialing 1-888-317-6016 (US toll free), 1-412-317-6016 (international) or 1-855-669-9657 (Canada toll free). A telephone replay of the conference call will be available through August 8, 2013 by dialing 1-877-344-7529 (toll-free) or 1-412-317-0088 (international) and entering the passcode 10030451.

More: http://www.snl.com/irweblinkx/file.aspx? IID=4076538&FID=18448808

Application of the Safe Harbor of the Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements within the meaning of the United States federal securities laws, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, that are not historical facts, including statements about our beliefs and expectations. These statements are based upon current plans, estimates and projections. Forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and various risk factors, many of which are outside the Company's control. See “Risk Factors” contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2012, as filed with the Securities and Exchange Commission, for specific important factors that could cause actual results to differ materially from those contained in forward- looking statements. In particular, statements using words such as “may,” “should,” “estimate,” “expect,” “anticipate,” “intend,” “believe,” “predict,” “potential,” or words of similar meaning generally involve forward-looking statements.