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Max Re Capital To Expense Stock Options

Hamilton, Bermuda, September 9, 2002 -- Max Re Capital Ltd. (NASDAQ: MXRE: BSX: MXREBH)announced today that it would expense the fair value of employee stock options starting January 1, 2003. The Company has been disclosing the cost of options in the footnotes of its financial statements, but investors want these expenses incorporated into operating results, and the Company will do so.

Max Re Capital Ltd. estimates that under current accounting rules, expensing options will reduce

2003 net income by approximately $1 million. The expense will increase annually over the next four to five years as the cost is phased in, as prescribed by FASB rules.

Robert J. Cooney, Chairman, President & CEO said, "Options are an important part of our

compensation program. They align employee nterests with shareholder interests. Every Max Re

employee owns common shares of the Company and has received option grants."

Max Re Capital Ltd., through its principal operating subsidiary, Max Re Ltd., offers customized reinsurance solutions to property and casualty insurers, life and health insurers, and large corporations.

The above remarks about future expectations, plans and prospects for the Company are forwardlooking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those suggested by such statements. For further information regarding cautionary statements and factors affecting future operating results, please refer to the Company's most recent Annual Report on Form 10-K and other documents filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statement whether as a result of new information, future developments or otherwise.