Montpelier Re Reports Q3 2013 Results (Excerpt)

Hamilton, Bermuda – 29 October, 2013 – Montpelier Re Holdings Ltd. (the “Company”; Ticker: MRH.BH), a leading provider of short-tail reinsurance and other specialty lines, has reported its financial results for the quarter ended September 30, 2013.

Fully converted book value per common share was $28.06, an increase of 4.2% from June 30, 2013 and 8.7% from December 31, 2012, after taking into account common share dividends declared during the period.

Operating income for the quarter was $72 million, or $1.38 per common share, representing a quarterly return on common equity of 5.0%. Net income was $53 million, or $1.02 per common share. The net impact of realized and unrealized losses from investments and foreign exchange, which is included in net income, was $19 million for the quarter.

Net premiums written and earned in the quarter were consistent with those of a year ago. The loss ratio for the quarter was 18%, which includes $36 million of favorable prior year loss reserve movements. The combined ratio was 54% for the quarter.

Net investment income was $17 million and the total return on the investment portfolio was 0.6% for the quarter.

Christopher Harris, President and Chief Executive Officer, commented, “Our focused business strategy and solid underwriting execution contributed to a strong third quarter. Montpelier Re Bermuda, Montpelier at Lloyd’s, and Blue Capital combined to deliver strong profitability with a 5.0% quarterly operating ROE and a 54% quarterly combined ratio. We also continued to strengthen the quality of risk analytic services we can bring to clients with the successful launch of the Montpelier Risk Institute.”

During the third quarter of 2013, the Company repurchased a total of 1,235,193 shares at an average price of $25.53 per share. During the fourth quarter of 2013, the Company has thus far repurchased an additional 330,176 shares, at an average price per share of $26.66.

As of September 30, 2013, the Company’s total shareholders’ equity was $1,695 million, and its total capital was $2,094 million.

In June 2013 the Company established Blue Capital Reinsurance Holdings Ltd. (“BCRH”), a Bermuda reinsurance holding company. BCRH intends to offer collateralized reinsurance in the property catastrophe market through its wholly-owned subsidiary Blue Capital Re Ltd., a registered Bermuda Class 3A insurer. BCRH may also enter into industry loss warranty contracts through its wholly-owned subsidiary, Blue Capital Re ILS Ltd., a Bermuda exempted company. BCRH's underwriting decisions and operations will be managed by Montpelier and BCRH will use Montpelier’s reinsurance underwriting expertise and infrastructure to conduct its business.

On October 7, 2013, BCRH publicly filed its initial Registration Statement on Form S-1 with the SEC for a potential offering of BCRH common shares to the public (the “Offering”). The common shares would be listed on the New York Stock Exchange.

Montpelier expects to purchase common shares of BCRH in a concurrent private placement transaction upon completion of the Offering.

Please refer to Montpelier’s September 30, 2013 Financial Supplement for more detailed financial information, which is posted on the Company’s website at www.montpelierre.bm along with the full text of this release.

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.

Montpelier Re Holdings Ltd.

Investors:

Michael Paquette, +1-441-278-5012

Chief Financial Officer

or

Media:

Jeannine Menzies, +1-441-299-7570

Corporate Affairs Manager