Montpelier Re has entered into a new two-year agreement that keeps current chairman and CEO Anthony Taylor at the company until at least the end of 2009.

The new agreement makes provision for Mr. Taylor to set down from the role of CEO on or after the end of June next year and move on to be executive chairman.

At the same time as announcing the new agreement, which is part of Montpelier's succession plan, the company's board of directors has approved two executive officer appointments, linked to the new deal with Mr. Taylor.

Chief underwriting and risk officer Christopher Harris is to assume the role of company president, while director and chief operating officer Thomas Busher is stepping up to the role of deputy chairman.

In a statement the company said that, in both cases, the appointments are in addition to Mr. Harris' and Mr. Busher's existing responsibilities.

Mr. Taylor's new service agreement is for two years but may be extended by agreement.

John Shettle, lead director of the board, said: "The board is delighted to have secured Tony's services for at least another two years in the most senior position in the company. And in Chris and Tom we have two long-standing and experienced executives who have demonstrated their ability to establish and achieve the company's strategic goals."

Montpelier Re said that, in advance of Mr. Taylor becoming Executive Chairman, it will provide further details of the succession plan.