$450 Million Financing Agreement for Montpelier Re.

Business Editors

BOSTON--(BUSINESS WIRE)--July 2, 2003

The Capital Markets division of Fleet Securities, Inc. today said it arranged a $450 million secured committed revolving letter of credit facility for Montpelier Reinsurance Ltd. Fleet National Bank acted as administrative agent on the transaction. Seven other institutions participated in the financing, including: Barclays Bank plc, ING Bank N.V., The Royal Bank of Scotland, The Bank of New York, Credit Suisse First Boston, Bank One, and Bank of America. Proceeds will be used to support Montpelier Re's letter of credit needs.

Located in Bermuda, Montpelier Reinsurance Ltd. is a leader in global specialty reinsurance. "Our new letter of credit facility allows us to support our existing operations, while providing the financial flexibility for future strategic growth," said Anthony Taylor, President and Chief Executive Officer of Montpelier Re.

David Bosselait, Director - Financial Institutions, at Fleet added, "We appreciated the opportunity to work with Montpelier Re and lead this strategically important credit facility for them. This leadership underscores Fleet's commitment to the insurance industry and our understanding of this segment's unique needs."

Montpelier Re Holdings Ltd., through its operating subsidiary Montpelier Reinsurance Ltd., is a premier provider of global specialty property insurance and reinsurance products. Montpelier Reinsurance Ltd. is rated "A" (Excellent) by A.M. Best Company and "A3" (Good) by Moody's Investors Service. During the three months ended March 31, 2003, Montpelier Reinsurance Ltd. underwrote $366.6 million in gross premiums. Shareholders' equity at March 31, 2003 was $1.36 billion. Montpelier Re Holdings Ltd. is headquartered in Bermuda and is traded on the New York Stock Exchange under the symbol 'MRH'. Additional information can be found at www.montpelierre.bm.

FleetBoston Financial is the seventh-largest financial holding company in the United States, with assets of $200 billion. The company's principal businesses, Personal Financial Services and Commercial Financial Services, offer a comprehensive array of innovative financial solutions to 20 million customers. Through its Personal Financial Services franchise, Fleet offers retail banking, wealth management and investment services, nationwide brokerage, credit card and consumer lending services. These services are available through approximately 1,500 branches and more than 3,500 ATMs in the Northeast; through Fleet HomeLinkSM online banking, one of the nation's leading online banking platforms; and through telephone banking. Fleet is the leading small business services and commercial banking provider in the Northeast. Fleet's Commercial Financial Services division provides commercial lending, syndications, capital raising and advisory, leasing, cash management, asset-based finance, foreign exchange and interest rate derivatives to clients. FleetBoston Financial is headquartered in Boston and listed on the New York Stock Exchange (NYSE: FBF) and the Boston Stock Exchange (BSE: FBF).

Application of the Safe Harbor of the Private Securities Litigation Reform Act of 1995:

This press release contains, and Montpelier may from time-to-time make, written or oral "forward-looking statements" within the meaning of the U.S. federal securities laws. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

All forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and other factors, many of which are outside Montpelier's control that could cause actual results to differ materially from such statements. Important events that could cause the actual results to differ include, but are not necessarily limited to, market conditions affecting Montpelier's common share price; the requesting shareholders' ability to revoke the registration request; our short operating and trading history; our dependence on principal employees; the cyclical nature of the reinsurance business; the levels of new and renewal business achieved; the possibility of severe or unanticipated losses from natural or man-made catastrophes; the impact of terrorist activities on the economy; competition in the reinsurance industry and rating agency policies and practices. For a more detailed description of these uncertainties and other factors, please see the "Risk Factors" section in Montpelier's Annual Report on Form 10-K for the year ended December 31, 2002 and its Form S-1 Registration Statement with respect to the common shares, each filed with the Securities and Exchange Commission. Montpelier undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.