Max Re Capital Ltd. to Establish a U.S.-Based Excess and Surplus Lines Platform to Be Headed by Stephen J. Vaccaro, Jr. as Presi

  
    
  
  
    
      Max Re Capital Ltd. (NASDAQ: MXRE; BSX: MXRE BH) today announced plans 
      to establish a U.S.-based excess and surplus lines platform that will 
      complement the company’s existing insurance 
      and reinsurance operations based in Bermuda and Dublin, Ireland. The 
      proposed new subsidiary, which Max Re Capital intends to launch in the 
      first quarter of 2007, will be named Max Specialty Insurance Company (“Max 
      Specialty”) and will be based in Richmond, 
      Virginia, with regional offices in Atlanta, San Francisco and 
      Philadelphia.
    
    
      Joining Max Specialty as its President and Chief Executive Officer will 
      be Stephen J. Vaccaro, Jr., a thirty-year insurance industry veteran 
      best known for his leadership role in the dramatic growth and 
      performance of the Essex Insurance Company, an affiliate of the Markel 
      Corporation, from 1993 to 2004. During his tenure there, Mr. Vaccaro 
      helped grow Essex revenues five-fold, from $100 million to more than 
      $500 million, achieving a nine-year combined ratio of less than 80% 
      while significantly expanding the company’s 
      product base.
    
    
      W. Marston Becker, Chairman and Chief Executive Officer of Max Re 
      Capital, said: “We look forward to the launch 
      of Max Specialty, which will add a significant new distribution channel 
      and base of potential clients to Max Re Capital’s 
      global insurance and reinsurance businesses, and enable us to provide a 
      broader range of insurance products and services to customers in the 
      United States and around the world.
    
    
      “We are particularly delighted to welcome 
      Steve Vaccaro and his talented team of underwriting professionals to our 
      organization. Steve has a proven ability to lead insurance operations 
      and consistently deliver underwriting profits in both soft and hard 
      market conditions. Having Steve and his team aboard will allow us to tap 
      into the excess and surplus segment of the insurance business, which has 
      been the industry’s fastest-growing segment 
      for two decades. It will also enhance our ability to generate 
      underwriting profits and to produce a growing and diversified book of 
      business. Most importantly, Steve and his team will enable us to provide 
      a more complete range of solutions for our existing and prospective 
      insurance clients, building our value to them and, in turn, for our 
      shareholders,” Mr. Becker said.
    
    
      Mr. Vaccaro said: “I am pleased to be joining 
      the Max Re Capital organization and look forward to working with them 
      and my team of underwriting professionals to launch Max Specialty as a 
      first-class excess and surplus lines insurance company early next year.”
    
    
      Max Specialty is expected to operate across two divisions, Brokerage and 
      Managing General Agency (“MGA”). 
      Brokerage, to be headed by Jonathan Hahn, and MGA, to be headed by Bryan 
      Sanders, will both offer property, inland marine, casualty, excess 
      liability, and umbrella insurance products.
    
    
      Mr. Hahn has more than fifteen years of insurance industry experience; 
      since 1995, he has been associated with the Markel Corporation, where he 
      was responsible for the profitable growth of a significant excess 
      property book. Mr. Sanders has more than twenty-five years of experience 
      in excess and surplus lines insurance, and particularly in building and 
      developing a national wholesale operation.
    
    
      Located in Hamilton, Bermuda, Max Re Capital Ltd., through its principal 
      operating subsidiaries, Max Re Ltd., Max Insurance Europe Limited and 
      Max Re Europe Limited, offers insurance and reinsurance solutions to 
      property and casualty insurers, life and health insurers and large 
      corporations.
    
    
      This release includes statements about future expectations, plans and 
      prospects of the Company which constitute forward-looking statements for 
      purposes of the safe harbor provisions of the Private Securities 
      Litigation Reform Act of 1995. Such forward-looking statements are 
      subject to certain risks and uncertainties that could cause actual 
      results to differ materially from those suggested by such statements, 
      including the risk that the SEC’s view of the 
      conclusions reached by the Audit and Risk Management Committee of our 
      Board of Directors in connection with the internal review of three 
      finite risk retrocessional contracts written in 2001 and 2003, which 
      caused the Company to restate its audited financial statements for the 
      years ended December 31, 2005, 2004, 2003, 2002 and 2001 and unaudited 
      financial statements for the periods ended March 31, 2006 and June 30, 
      2006, may differ, perhaps materially, and result in material changes to 
      information contained in the Company’s past 
      SEC filings, including financial statements and financial information. 
      For further information regarding cautionary statements and factors 
      affecting future results, please refer to the Company’s 
      Annual Report on Form 10-K/A (Amendment No. 2) for the year ended 
      December 31, 2005 and other documents filed by the Company with the SEC. 
      The Company undertakes no obligation to publicly update or revise any 
      forward-looking statement whether as a result of new information, future 
      developments or otherwise.