Alterra Capital 8-K Results of Operations and Financial Condition

Exhibit 99.1

MAX RE CAPITAL LTD. REPORTS RECORD NET INCOME FOR 2004:

Hamilton, Bermuda, February 4, 2005 - Max Re Capital Ltd. (NASDAQ: MXRE) reported net income for the three months ended December 31, 2004 of $87.1 million, or net income of $1.82 per diluted share, compared to net income of $36.4 million, or net income of $0.76 per diluted share, for the three months ended December 31, 2003. Net operating income before minority interest, which represents net income before minority interest reduced by net realized gains on sale of fixed maturities, for the three months ended December 31, 2004 was $80.8 million, or net operating income of $1.67 per diluted share, compared with net operating income before minority interest of $31.7 million, or net operating income of $0.66 per diluted share, for the three months ended December 31, 2003.

For the year ended December 31, 2004, the Company had net income of $133.7 million, or net income of $2.75 per diluted share, compared to net income of $120.6 million, or net income of $2.84 per diluted share, for the year ended December 31, 2003. For the year ended December 31, 2004, the Company had net operating income before minority interest of $123.3 million, or net operating income of $2.54 per diluted share, compared to a net income before minority interest of $111.6 million, or net operating income of $2.42 per diluted share, for the year ended December 31, 2003.

Robert J. Cooney, Chairman, President and Chief Executive Officer, commented, “The Company continued to perform well in 2004. Improved performance in our property and casualty business produced underwriting profits of $47.8 million during the year which combined with reasonable returns from our alternative investment portfolio of 8.23%, resulted in record net operating income for the year.”

Gross premiums written for the three months ended December 31, 2004 were $139.6 million, comprised of $104.6 million from property and casualty underwriting and $35.0 million from life and annuity underwriting, compared to $224.9 million, comprised of $116.6 million from property and casualty underwriting and $108.3 million from life and annuity underwriting, for the three months ended December 31, 2003. Net premiums earned for the three months ended December 31, 2004 were $216.0 million compared to $261.4 million for the same period of 2003. For the year ended December 31, 2004, gross premiums written were $1,043.6 million, comprised of $831.3 million from property and casualty underwriting and $212.3 million from life and annuity underwriting, compared to $1,009.8 million in the year ended December 31, 2003, comprised of $901.5 million from property and casualty underwriting and $108.3 million from life and annuity underwriting. Net premiums earned for the year ended December 31, 2004 were $917.8 million compared to $727.2 million for 2003.

Net investment income for the three months ended December 31, 2004, increased to $24.2 million, from $16.7 million for the same period in 2003. Net investment income for the year ended December 31, 2004 increased to $82.8 million from $60.1 million for the same period in 2003. The increase is principally attributable to increased holdings of cash and fixed maturities, resulting from strong cash flows from operations. Net gains on alternative investments for the three months ended December 31, 2004 were $56.8 million, or a 5.36% rate of return, compared to net gains on alternative investments of $28.9 million, or a 3.37% rate of return, for the same period of 2003. For the year ended December 31, 2004, alternative investments returned $81.6 million, or 8.23%, compared to $124.0 million, or 16.57%, for the same period in 2003. For the year the Company’s MDS fund of funds produced a 9.81% return, while the Company’s insurance private equity investments produced a (11.06%) return, principally because of losses sustained in DaVinci Re Holdings Ltd. from the third quarter hurricanes. Invested assets were $3.5 billion as of December 31, 2004, with an allocation of approximately 68.2% to cash and fixed maturities and 31.8% to alternative investments.

Total revenue for the three months ended December 31, 2004 decreased 4% to $304.5 million, compared to $317.1 million of total revenue for the same period in 2003. Total revenue for the year ended December 31, 2004 increased 17% to $1,097.6 million from $941.4 million for 2003. This increase is principally due to the increase in net premiums earned and net investment income offset by the decrease in returns on the alternative investments.

Losses, benefits and experience refunds were $163.4 million for the three months ended December 31, 2004 compared to $223.8 million for the same period in 2003. The decrease in losses, benefits and experience refunds for the three months ended December 31, 2004 is principally attributable to $108.3 million of life and annuity premiums earned in the three months ended December 31, 2003 compared to $35.0 million for the same period for 2004. Losses, benefits and experience refunds for the year ended December 31, 2004 were $764.3 million compared to $592.3 million for the same period in 2003. The increase for the year ended December 31, 2004 was principally attributable to the increase in premiums earned.

General and administrative expenses for the three months ended December 31, 2004 were $14.4 million compared to $10.0 million for the same period in 2003. General and administrative expenses for the year ended December 31, 2004 were $49.0 million compared to $39.8 million for the same period in 2003. General and administrative expenses for the year ended December 31, 2004 were 5.3% of net premiums earned compared to 5.5% of net premiums earned for the year ended December 31, 2003.

Shareholders’ equity was $937.0 million at December 31, 2004. Book value per share at December 31, 2004 was $20.45 per share, compared to $17.82 at December 31, 2003 an increase of 14.8%. Return on average shareholders’ equity for 2004 was 14.2%.

Max Re Capital Ltd., through its principal operating subsidiaries, Max Re Ltd., Max Insurance Europe Limited and Max Re Europe Limited, offers customized insurance and reinsurance solutions to property and casualty insurers, life and health insurers and large corporations.

The above remarks about future expectations, plans and prospects for the Company are forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those suggested by such statements. For further information regarding cautionary statements and factors affecting future operating results, please refer to the Company’s most recent Annual Report on Form 10-K and other documents filed with the Securities and Exchange Commission. 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.

Contact Information:

Keith S. Hynes

Executive Vice President & CFO

441-296-8800

keithh@maxre.bm

N. James Tees

Senior Vice President & Treasurer

441-296-8800

jimt@maxre.bm

MAX RE CAPITAL LTD.

CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of United States Dollars, except per share and share amounts)

	December 31, 2004			December 31, 2003
	(Unaudited)
ASSETS
Cash and cash equivalents	$	239,188		$	201,515
Fixed maturities, available for sale at fair value		2,156,011			1,604,430
Alternative investments, at fair value		1,119,028			831,359
Accrued interest income		24,257			14,608
Premiums receivable		262,714			389,393
Losses recoverable from reinsurers		388,067			273,711
Funds withheld		17,599			56
Deferred acquisition costs		54,770			87,116
Deferred charges		6,958			5,259
Prepaid reinsurance premiums		79,337			67,343
Other assets		19,426			20,769
Total assets	$	4,367,355		$	3,495,559
LIABILITIES
Property and casualty losses and experience refunds	$	1,455,099		$	991,687
Life and annuity benefits and experience refunds		666,101			480,099
Deposit liabilities		266,479			267,350
Funds withheld from reinsurers		301,100			213,483
Unearned property and casualty premiums		447,633			471,625
Reinsurance balances payable		50,258			74,693
Accounts payable and accrued expenses		50,839			26,635
Net payable for investments purchased		42,855			14,757
Bank loan		150,000			150,000
Total liabilities		3,430,364			2,690,329
SHAREHOLDERS’ EQUITY
Preferred shares (par value $1.00) 20,000,000 shares authorized; no shares issued or outstanding		—			—
Common shares (par value $1.00) 200,000,000 shares authorized; 45,825,880 (2003 - 45,184,611) shares issued and outstanding		45,826			45,185
Additional paid-in capital		652,029			637,772
Loans receivable from common share sales		(10,515	)		(11,965	)
Unearned stock grant compensation		(13,294	)		(4,032	)
Accumulated other comprehensive income		22,227			25,790
Retained earnings		240,718			112,480
Total shareholders’ equity		936,991			805,230
Total liabilities and shareholders’ equity	$	4,367,355		$	3,495,559
Book Value Per Share	$	20.45		$	17.82

MAX RE CAPITAL LTD.

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited)

(Expressed in thousands of United States Dollars, except shares and per share amounts)

	Three Months Ended December 31						Years Ended December 31
	2004			2003			2004			2003
REVENUES
Gross premiums written	$	139,568		$	224,858		$	1,043,601		$	1,009,779
Reinsurance premiums ceded		(42,442	)		(51,954	)		(162,573	)		(154,574	)
Net premiums written	$	97,126		$	172,904		$	881,028		$	855,205
Earned premiums	$	258,870		$	311,547		$	1,068,172		$	835,449
Earned premiums ceded		(42,883	)		(50,122	)		(150,398	)		(108,245	)
Net premiums earned		215,987			261,425			917,774			727,204
Net investment income		24,167			16,665			82,815			60,132
Net gains (losses) on alternative investments		56,758			28,874			81,648			124,036
Net realized gains on sale of fixed maturities		6,325			4,712			10,447			19,259
Other income		1,226			5,407			4,890			10,743
Total revenues		304,463			317,083			1,097,574			941,374
LOSSES AND EXPENSES
Losses, benefits and experience refunds		163,390			223,785			764,296			592,274
Acquisition costs		29,848			38,411			116,862			149,534
Interest expense		9,727			8,513			33,644			28,829
General and administrative expenses		14,384			9,968			49,047			39,845
Total losses and expenses		217,349			280,677			963,849			810,482
INCOME BEFORE MINORITY INTEREST		87,114			36,406			133,725			130,892
Minority interest		—			—			—			(10,325	)
NET INCOME		87,114			36,406			133,725			120,567
Change in net unrealized appreciation of fixed maturities		(3,535	)		(19,821	)		(7,140	)		(23,491	)
Foreign currency translation adjustment		3,401			173			3,577			173
COMPREHENSIVE INCOME	$	86,980		$	16,758		$	130,162		$	97,249
Basic earnings per share	$	1.91		$	0.81		$	2.93		$	2.91
Diluted earnings per share	$	1.82		$	0.76		$	2.75		$	2.84
Diluted net operating earnings per share	$	1.67		$	0.66		$	2.54		$	2.42
Weighted average shares outstanding - basic		45,753,252			45,183,404			45,703,410			41,094,393
Weighted average shares outstanding - diluted		48,183,656			47,684,508			48,568,769			45,995,615

MAX RE CAPITAL LTD.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

(Expressed in thousands of United States Dollars)

	Years ended December 31,
	2004			2003
Preferred shares
Balance, beginning of year	$	—		$	—
Balance, end of year		—			—
Common shares
Balance, beginning of year		45,185			37,999
Issue of shares		910			371
Issue of shares on elimination of minority interest		—			7,120
Repurchase of shares		(269	)		(305	)
Balance, end of year		45,826			45,185
Additional paid-in capital
Balance, beginning of year		637,772			526,582
Issue of common shares		18,266			4,127
Issue of common shares on elimination of minority interest		—			110,285
Repurchase of shares		(4,581	)		(3,591	)
Stock option expense		572			369
Balance, end of year		652,029			637,772
Loans receivable from common share sales
Balance, beginning of year		(11,965	)		(12,575	)
Loans granted		—			—
Loans repaid		1,450			610
Balance, end of year		(10,515	)		(11,965	)
Unearned stock grant compensation
Balance, beginning of year		(4,032	)		(2,656	)
Stock grants awarded		(15,983	)		(3,740	)
Amortization		6,721			2,364
Balance, end of year		(13,294	)		(4,032	)
Accumulated other comprehensive income
Balance, beginning of year		25,790			49,108
Holding gains on fixed maturities arising in year		3,134			(13,433	)
Net realized gains included in net income		(10,447	)		(19,259	)
Currency translation adjustments		3,750			173
Allocation to minority interest		—			6,504
Holding gains transferred on elimination of minority interest		—			2,697
Balance, end of year		22,227			25,790
Retained earnings (deficit)
Balance, beginning of year		112,480			(4,299	)
Net income		133,725			120,567
Dividends paid		(5,487	)		(3,788	)
Balance, end of year		240,718			112,480
Total shareholders’ equity	$	936,991		$	805,230

MAX RE CAPITAL LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(Expressed in thousands of United States Dollars)

	Years Ended December 31
	2004			2003
OPERATING ACTIVITIES
Net income	$	133,725		$	120,567
Adjustments to reconcile net income to net cash from operating activities:
Minority interest share of income		—			10,325
Amortization of unearned stock based compensation		7,293			2,733
Amortization of discount on fixed maturities		9,186			5,986
Net realized gains on sale of fixed maturities		(10,447	)		(19,259	)
Alternative investments		(288,132	)		(178,560	)
Accrued interest income		(9,649	)		(2,304	)
Premiums receivable		126,679			(199,179	)
Losses recoverable from reinsurers		(114,356	)		(85,570	)
Funds withheld		(17,543	)		55,220
Deferred acquisition costs		32,346			(8,402	)
Deferred charges		(1,699	)		7,398
Prepaid reinsurance premiums		(11,994	)		(45,979	)
Other assets		1,343			(9,136	)
Property and casualty losses and experience refunds		463,412			374,283
Life and annuity benefits and experience refunds		186,002			75,091
Funds withheld from reinsurers		87,617			61,311
Unearned property and casualty premiums		(23,992	)		174,916
Reinsurance balances payable		(24,435	)		32,429
Accounts payable and accrued expenses		24,204			12,076
Net payable for investments purchased		28,098			13,297
Cash from operating activities		597,658			397,243
INVESTING ACTIVITIES
Purchase of fixed maturities		(1,683,884	)		(1,210,559	)
Sales of fixed maturities		1,100,398			785,383
Redemptions of fixed maturities		26,489			83,407
Cash used in investing activities		(556,997	)		(341,769	)
FINANCING ACTIVITIES
Net proceeds from issuance of common shares		3,193			758
Repurchases of common shares		(4,850	)		(3,896	)
Proceeds from bank loan		—			50,000
Dividends		(5,487	)		(3,788	)
Distributions to minority shareholders		—			(285	)
Additions to deposit liabilities		55,253			55,448
Payment of deposit liabilities		(56,124	)		(45,082	)
Notes and loans repaid		1,450			610
Cash from (used in) financing activities		(6,565	)		53,765
Effect of exchange rate on cash		3,577			173
Net increase in cash and cash equivalents		37,673			109,412
Cash and cash equivalents, beginning of period		201,515			92,103
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	239,188		$	201,515

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

Interest paid totaled $4,281 and $3,370 for the years ended December 31, 2004 and 2003, respectively.

MAX RE CAPITAL LTD.

SCHEDULE OF SUPPLEMENTAL DATA - DECEMBER 31, 2004

Year to Date Segment Information: (in 000’s US$)	Property & Casualty												Life & Annuity			Corporate		Consolidated
	Traditional Reinsurance			Alternative Risk			Traditional Insurance			Total
Gross premiums written	$	334,557		$	248,677		$	248,068		$	831,302		$	212,299		$	—	$	1,043,601
Reinsurance premiums ceded		(20,818	)		(26,807	)		(114,241	)		(161,866	)		(707	)		—		(162,573	)
Net premiums written	$	313,739		$	221,870		$	133,827		$	669,436		$	211,592		$	—	$	881,028
Earned premiums	$	291,524		$	346,806		$	217,543		$	855,873		$	212,299		$	—	$	1,068,172
Earned premiums ceded		(18,534	)		(37,653	)		(93,504	)		(149,691	)		(707	)		—		(150,398	)
Net premiums earned		272,990			309,153			124,039			706,182			211,592			—		917,774
Net investment income		—			—			—			—			—			82,815		82,815
Net gains on alternative investments		—			—			—			—			—			81,648		81,648
Net realized gains on sales of fixed maturities		—			—			—			—			—			10,447		10,447
Other income		—			—			—			—			—			4,890		4,890
Total revenues		272,990			309,153			124,039			706,182			211,592			179,800		1,097,574
Losses, benefits and experience refunds		174,240			261,204			90,604			526,048			238,248			—		764,296
Acquisition costs		51,280			59,560			2,502			113,342			3,520			—		116,862
Interest expense		—			—			—			—			—			33,644		33,644
General and administrative expenses		4,972			7,144			6,797			18,913			4,488			25,646		49,047
Total losses and expenses		230,492			327,908			99,903			658,303			246,256			59,290		963,849
Net income (loss) before minority interest	$	42,498		$	(18,755	)	$	24,136		$	47,879		$	(34,664	)	$	120,510	$	133,725
Loss Ratio (a)		63.8	%		84.5	%		73.0	%		74.5	%
Combined Ratio (a)		84.4	%		106.1	%		80.5	%		93.2	%

(a) The loss ratio is calculated by dividing losses, benefits and experience refunds by net premiums earned.

(b) The combined ratio is calculated by dividing total losses and expenses by net premiums earned.

					Periodic Rate of Return
Selected Investment Return Data:	Fair Value*		Investment %’s		Quarter Ended		Year Ended		Last 36 months**
Cash and Fixed Maturities	$	2,395,199	68.2	%	0.85	%	4.22	%	5.33	%
Global Macro	$	139,110	4.0	%	9.73	%	10.26	%	12.14	%
Long / Short Equity		99,084	2.8	%	0.72	%	8.23	%	7.60	%
Convertible Arbitrage		90,275	2.6	%	0.19	%	1.31	%	7.07	%
Diversified Arbitrage		170,409	4.8	%	4.36	%	6.73	%	8.45	%
Distressed Securities		154,196	4.4	%	10.06	%	23.12	%	21.90	%
Opportunistic		24,221	0.7	%	14.50	%	27.68	%	10.28	%
Emerging Markets		68,584	2.0	%	7.73	%	22.15	%	17.67	%
Fixed Income Arbitrage		86,175	2.5	%	0.83	%	2.17	%	10.98	%
Event-Driven Arbitrage		94,554	2.7	%	9.26	%	17.31	%	13.38	%
Commodity Trading Advisers		55,946	1.6	%	1.97	%	-2.03	%	3.67	%
Credit Long / Short		70,797	2.0	%	6.16	%	13.14	%	9.11	%
MDS		1,053,351	30.0	%	5.41	%	9.81	%	10.09	%
Insurance Underwriting		65,677	1.9	%	4.54	%	-11.06	%	5.76	%
Alternative Investments	$	1,119,028	31.8	%	5.36	%	8.23	%	9.91	%
Total Investments	$	3,514,227	100.0	%	2.37	%	5.63	%	6.91	%
Comparative returns
Merrill Lynch Master Bond Index					0.96	%	4.34	%	6.25	%
Standard & Poors 500 Stock Index					9.23	%	10.87	%	3.58	%
80% Merrill Lynch Master Index and 20% S&P Index					2.58	%	5.67	%	5.94	%

* Expressed in thousands of United States Dollars

** Annualized