JUNE 19 (BUSINESS WIRE) — Montpelier Re Holdings Limited has announced that it has received approval from Lloyd's for the commencement of trading on July 1 of a new Syndicate, to be known as Montpelier Syndicate 5151, pseudonym MRE.

The Syndicate will underwrite a book of non-marine property and engineering classes and a limited amount of specialty casualty business sourced from the London, US and European markets.

Stamp capacity for 2007 is set at $47m, but is planned to increase to $143m in 2008, subject to market conditions.

Funds at Lloyd's will be provided by a sole corporate member wholly-owned by Montpelier. The active underwriter of the Syndicate will be Richard Chattock, who has been with Montpelier as a senior underwriter since the Company's inception and was formerly underwriting manager, property and casualty division at Cox Syndicates Limited.

Other existing Montpelier underwriting staff will join Mr. Chattock in London and Montpelier's existing proprietary underwriting, pricing and risk management systems will be employed.

One of the early initiatives of the Syndicate will be to accept business from a new US MGA, Montpelier Underwriting Inc. (MUI), which is wholly-owned by Montpelier and is headed by Stanley Kott, formerly CEO of Wellington Underwriting Inc.

Headquartered in Hartford, Connecticut, MUI will introduce a variety of reinsurance and insurance business, predominantly short-tail in nature, to the Syndicate.

Initially, Montpelier is partnering with Spectrum Syndicate Management Ltd., who will act as the managing agent of the Syndicate. Montpelier chairman and CEO, Anthony Taylor, said: "We have concluded that now is the appropriate time to expand our platform beyond the shores of Bermuda.