Montpelier Reports Q3 2014 Financial Results (Excerpt)

Hamilton, Bermuda – 28 October, 2014 – Montpelier Re Holdings Ltd., (“Montpelier“ or the “Company“; Tickers: NYSE: MRH; Bermuda: MRH.BH), a leading provider of short-tail reinsurance and other specialty lines, today reported its financial results for the quarter ended September 30, 2014.

•               Operating EPS of $0.86, highlighted by a 38% loss ratio and 74% combined ratio.

•               Fully converted book value per share of $32.27, a 2.3% increase from June 30, 2014.

Fully converted book value per common share was $32.27, an increase of 2.3% from June 30, 2014 and an increase of 11.2% from December 31, 2013, each after taking into account common share dividends declared during the periods.

Operating income for the quarter was $40 million, or $0.86 per common share. Net income was $35 million, or $0.75 per common share. Net income for the quarter included $16 million of net foreign exchange gains and $21 million of realized and unrealized investment losses.

Net premiums written in the third quarter were up 13% year-over-year, when adjusting for reinstatements, with increased writings within the Company’s Montpelier at Lloyd’s and Collateralized Reinsurance segments offsetting a decrease in writings at Montpelier Bermuda. Net premiums earned in the third quarter were up 7% on the same basis.

The loss ratio for the quarter was 38%, which includes $20 million of net losses from June 2014 catastrophe events, offset by $37 million of favorable prior year loss reserve movements. The combined ratio was 74% for the quarter.

Net investment income was $12 million for the quarter, and the total return on the investment portfolio was -0.3%.

Christopher Harris, President and Chief Executive Officer, said, “Our underwriting teams executed well in a competitive market environment during the third quarter, driving solid profitability with a 74% combined ratio. We are well positioned to navigate a challenging market by building on our strengths as a long-term partner for our investors and clients.”

During the third quarter of 2014, the Company repurchased a total of 1,848,726 common shares at an average price of $31.12 per share. The Company’s common shares outstanding at September 30, 2014 were 44.3 million, down more than 10% from year-end. During the fourth quarter of 2014, the Company has repurchased an additional 939,395 common shares.

Please refer to Montpelier’s September 30, 2014 Financial Supplement for more detailed financial information, including the full text of this release,which is posted on the Company’s website at www.montpelierre.bm

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

Earnings Conference Call:

The Company will conduct a conference call, including a question and answer period, on Tuesday, October 28, 2014 at 8:00 a.m. Eastern Time.

The call will be available via a live audio webcast accessible on the Company's website at www.montpelierre.bm  or by dialing 1-877-444-2208 (toll free) or 1-412-317-0779 (international) or 1-855-669-9657 (Canada toll free). The archived webcast will be available at www.montpelierre.bm  approximately one hour after the call. The telephone replay will be available by dialing 1-877-344-7529 (toll-free) or 1-412-317-0088 (international) and entering the conference ID number 10052196.

Contact Montpelier Re Holdings Ltd.

Investors:

Laura Newhook, 441-278-5067

or

Media:

Jeannine Menzies, 441-299-7570