This is the text of a press release from Montpeleier Re Holdings Ltd.

Montpelier Re Announces Three Year Extension Of Anthony Taylor's Service Agreement

Hamilton, Bermuda: 27 July 2004 - Montpelier Re Holdings Ltd. (NYSE: MRH) today announced that it has agreed terms for an extension of Anthony Taylor's employment. Pursuant to such terms, Mr. Taylor will continue as the Company's Chairman, President and Chief Executive Officer for an additional three years through December 31, 2007. Once finalized, the new service agreement will be filed on Form 8-K.

Montpelier Re Holdings Ltd., through its operating subsidiary, Montpelier Reinsurance Ltd., is a premier provider of global property and casualty reinsurance and insurance products. Montpelier Reinsurance Ltd. is rated "A" (Excellent) by A.M. Best Company, "A-" (Strong) by Standard & Poor's and "A3" (Good) by Moody's Investors Service.