1165880--2/28/2008--MONTPELIER_RE_HOLDINGS

related topics

{regulation, change, law}

{loss, insurance, financial}

{condition, economic, financial}

{stock, price, share}

{provision, law, control}

{interest, director, officer}

{capital, credit, financial}

{operation, international, foreign}

{operation, natural, condition}

{debt, indebtedness, cash}

{personnel, key, retain}

{product, liability, claim}

{product, market, service}

{acquisition, growth, future}

{competitive, industry, competition}

Risks Related to Our Company Unpredictable disasters and other catastrophic events could adversely affect our financial condition or results of operations. We may not maintain favorable financial strength ratings which could adversely affect our ability to conduct business. We are highly dependent on a small number of insurance and reinsurance brokers for a large portion of our revenues. Additionally, we are subject to credit risk with respect to brokers. We may be unable to purchase reinsurance protection to the extent we desire on acceptable terms. Additionally, we may be unable to collect all amounts due from our reinsurers under our existing reinsurance arrangements. Emerging claims and coverage issues could adversely affect our business. Our loss reserves may be inadequate to cover our ultimate liability for losses and LAE and as a result our financial results could be adversely affected. New lines of business we develop through Syndicate 5151 and MUSIC will change the composition of our overall book of business in ways which could adversely impact our financial results. The integration of our new insurance and reinsurance initiatives into our existing operations presents significant challenges. Our stated catastrophe and enterprise-wide risk management exposures are based on estimates and judgments which are subject to significant uncertainties. Global financial markets and economic conditions, which may change suddenly and dramatically, could adversely affect our investment income and the value of our investment portfolio. We could be adversely affected by the loss of one or more principal employees or by an inability to attract and retain staff. As a holding company, we are dependent upon dividends or distributions from our insurance and reinsurance operating subsidiaries. Our operating results may be adversely affected by foreign currency fluctuations. Competition could reduce our operating margins. Regulation may restrict our ability to operate. Political, regulatory and industry initiatives could adversely affect our business. Risks Related to Our Common Shares Provisions in our charter documents restrict the voting rights of our common shares. Bermuda law differs from the laws in effect in the U.S. and may afford less protection to our shareholders. Holders of common shares may have difficulty effecting service of process on us or enforcing judgments against us in the U.S. We may require our shareholders to sell us their common shares. Our Bermuda companies may be subject to U.S. tax. Proposed U.S. tax legislation could adversely affect U.S. shareholders. We may become subject to taxes in Bermuda after 2016, which may have a material adverse effect on our financial condition.

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1165880--2/28/2008--MONTPELIER_RE_HOLDINGS_LTD