Max Re Capital Ltd. expects to post income for the three months ended March 31, 2006 of $74.2 million, or $1.17 per share subject to the results of a previously announced internal probe into risk transfer issues of three finite risk contracts as well as accounting for certain other contractual features.

The company is unable to release its quarterly results as its Audit and Risk Management Committee has not completed the internal investigation and consequently the company's auditors cannot complete their review of financial information.

If the investigation results in a restatement, the cumulative effect to retained earnings at December 31, 2005 would be not more than approximately $50 million, the company said.

There can be no assurance that the internal investigation, the SAS 100 review or any SEC inquiry or review will not result in material changes to retained earnings as of December 31, 2005 or net income for the quarter ended March 31, 2006 or to information contained in the Company's past SEC filings, including financial statements and financial information, the company said.