Alterra Capital 8-K Results of Operations and Financial Condition

EXHIBIT 99.1

MAX RE CAPITAL LTD. REPORTS FIRST QUARTER NET INCOME OF $0.74 PER DILUTED SHARE:

Hamilton, Bermuda, April 29, 2005 - Max Re Capital Ltd. (NASDAQ: MXRE) today reported net income for the three months ended March 31, 2005 of $36.8 million, or net income of $0.74 per diluted share, compared to net income of $43.0 million, or net income of $0.87 per diluted share, for the three months ended March 31, 2004. Net operating income, which represents net income reduced by net realized gains on sale of fixed maturities, for the three months ended March 31, 2005 was $36.4 million, or net operating income of $0.73 per diluted share, compared with net operating income of $37.2 million, or net operating income of $0.75 per diluted share, for the three months ended March 31, 2004.

Robert J. Cooney, Chairman, President and Chief Executive Officer, commented, “Our gross premiums written grew in the first quarter largely attributable to increased volume in our life and annuity business. Our property and casualty underwriting produced excellent results with a combined ratio of 87.6% for the period. The strong underwriting performance allowed us to achieve reasonable net operating income for the quarter.”

Gross premiums written for the three months ended March 31, 2005 were $455.7 million, of which $312.5 million came from property and casualty underwriting and $143.2 million from life and annuity underwriting, compared to $439.5 million, all from property and casualty underwriting, for the three months ended March 31, 2004. Reinsurance and insurance products account for 79.4% and 20.6%, respectively, of property and casualty gross premiums written in the three months ended March 31, 2005, compared to 90.5% and 9.5%, respectively, of property and casualty gross premiums written for the three months ended March 31, 2004. The decline in property and casualty premiums written is principally due to the non-renewal of three reinsurance contracts in 2005, which accounted for $164.5 million of gross premiums written in 2004. Net premiums earned for the three months ended March 31, 2005 were $308.3 million compared to $198.9 million for the same period of 2004, the increase principally due to a life and annuity contract written and earned in the first three months of 2005, with no comparative for the same period of 2004.

Net investment income for the three months ended March 31, 2005 increased to $23.7 million, from $18.8 million for the same period in 2004 and is principally attributable to increased holdings of cash and fixed maturities during the three months ended March 31, 2005 compared to the three months ended March 31, 2004. Net gains on alternative investments for the three months ended March 31, 2004 were $14.4 million, or a 1.2% rate of return, compared to net gains on alternative investments of $38.5 million, or a 4.1% rate of return, for the same period of 2004. Invested assets were $3.7 billion as of March 31, 2005, 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 March 31, 2005 increased 32.3% to $348.1 million, compared to $263.2 million of total revenue for the same period in 2004. Growth in revenue in the three months to March 31, 2005 is principally attributable to the 55.0% increase in net premiums earned over the same period in 2004, partially offset by the 62.6% decrease in net gains on alternative investments.

Losses, benefits and experience refunds were $268.3 million for the three months ended March 31, 2005 compared to $166.4 million for the same period in 2004. The increase in losses, benefits and

experience refunds for the three months ended March 31, 2005 is principally attributable to the increase in premiums earned. Loss, benefit and experience refunds expense benefited from net favorable development of $4.0 million during the three months ended March 31, 2005.

Acquisition costs for the three months ended March 31, 2005 decreased by 32.3% to $21.5 million compared to $31.8 million for the three months ended March 31, 2004. The reduction is attributable to the change in premium mix, with life and annuity products typically having lower acquisition costs compared to property and casualty reinsurance and insurance products.

Interest expense for the three months ended March 31, 2005 decreased 47.4% from the same period in 2004. The decrease is principally attributable to a lower average interest crediting rate on funds withheld balances with reinsurers, partially offset by the interest expense on additional funds withheld from those reinsurers during the three months ended March 31, 2005.

General and administrative expenses for the three months ended March 31, 2005 were $15.3 million compared to $10.2 million for the same period in 2004. General and administrative expenses for the three months ended March 31, 2005 were 4.9% of net premiums earned compared to 5.1% of net premiums earned for the three months ended March 31, 2004.

Shareholders’ equity was $964.1 million at March 31, 2005. Book value per share at March 31, 2005 was $20.77 per share, compared to $20.45 at December 31, 2004. Annualized return on average shareholders’ equity for the three months ended March 31, 2004 was 15.3%.

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)

	March 31, 2005			December 31, 2004
	(Unaudited)
ASSETS
Cash and cash equivalents	$	262,739		$	239,188
Fixed maturities, available for sale at fair value		2,245,390			2,156,011
Alternative investments, at fair value		1,170,187			1,119,028
Accrued interest income		26,190			24,257
Premiums receivable		322,668			262,714
Losses recoverable from reinsurers		410,596			388,067
Funds withheld		17,599			17,599
Deferred acquisition costs		90,797			54,770
Deferred charges		6,063			6,958
Prepaid reinsurance premiums		80,978			79,337
Other assets		22,997			19,426
Total assets	$	4,656,204		$	4,367,355
LIABILITIES
Property and casualty losses and experience refunds	$	1,562,269		$	1,455,099
Life and annuity benefits and experience refunds		790,507			666,101
Deposit liabilities		226,829			266,479
Funds withheld from reinsurers		311,767			301,100
Unearned property and casualty premiums		551,513			447,633
Reinsurance balances payable		44,747			50,258
Accounts payable and accrued expenses		54,483			93,694
Bank loan		150,000			150,000
Total liabilities		3,692,115			3,430,364
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; 46,417,878 (2004 - 45,825,880) shares issued and outstanding		46,418			45,826
Additional paid-in capital		663,411			652,029
Loans receivable from common share sales		(465	)		(10,515	)
Unearned stock grant compensation		(21,513	)		(13,294	)
Accumulated other comprehensive income		103			22,227
Retained earnings		276,135			240,718
Total shareholders’ equity		964,089			936,991
Total liabilities and shareholders’ equity	$	4,656,204		$	4,367,355
Book Value Per Share	$	20.77		$	20.45

MAX RE CAPITAL LTD.

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited)

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

	Three Months Ended March 31
	2005			2004
REVENUES
Gross premiums written	$	455,689		$	439,531
Reinsurance premiums ceded		(44,019	)		(42,787	)
Net premiums written	$	411,670		$	396,744
Earned premiums	$	350,328		$	233,290
Earned premiums ceded		(42,004	)		(34,392	)
Net premiums earned		308,324			198,898
Net investment income		23,689			18,846
Net gains on alternative investments		14,377			38,476
Net realized gains on sale of fixed maturities		390			5,781
Other income		1,318			1,168
Total revenues		348,098			263,169
LOSSES AND EXPENSES
Losses, benefits and experience refunds		268,298			166,385
Acquisition costs		21,502			31,783
Interest expense		6,232			11,843
General and administrative expenses		15,257			10,169
Total losses and expenses		311,289			220,180
NET INCOME		36,809			42,989
Change in net unrealized appreciation of fixed maturities		(21,515	)		18,729
Foreign currency translation adjustment		(609	)		(139	)
COMPREHENSIVE INCOME	$	14,685		$	61,579
Basic earnings per share	$	0.80		$	0.94
Diluted earnings per share	$	0.74		$	0.87
Diluted net operating earnings per share	$	0.73		$	0.75
Weighted average shares outstanding - basic		46,166,537			45,547,393
Weighted average shares outstanding - diluted		49,914,515			49,332,004

MAX RE CAPITAL LTD.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

(Expressed in thousands of United States Dollars)

	Three months ended March 31,
	2005			2004
Preferred shares
Balance, beginning of period	$	—		$	—
Balance, end of period		—			—
Common shares
Balance, beginning of period		45,826			45,185
Issue of shares		592			541
Repurchase of shares		—			—
Balance, end of period		46,418			45,726
Additional paid-in capital
Balance, beginning of period		652,029			637,772
Issue of common shares		11,131			12,453
Stock option expense		251			129
Repurchase of shares		—			—
Balance, end of period		663,411			650,354
Loans receivable from common share sales
Balance, beginning of period		(10,515	)		(11,965	)
Loans granted		—			—
Loans repaid		10,050			—
Balance, end of period		(465	)		(11,965	)
Unearned stock grant compensation
Balance, beginning of period		(13,294	)		(4,032	)
Stock grants awarded		(10,463	)		(12,994	)
Amortization		2,244			1,332
Balance, end of period		(21,513	)		(15,694	)
Accumulated other comprehensive income
Balance, beginning of period		22,227			25,790
Holding gains (losses) on fixed maturities arising in period		(21,125	)		24,510
Net realized gains included in net income		(390	)		(5,781	)
Currency translation adjustments		(609	)		(139	)
Balance, end of period		103			44,380
Retained earnings
Balance, beginning of period		240,718			112,480
Net income		36,809			42,989
Dividends paid		(1,392	)		(1,371	)
Balance, end of period		276,135			154,098
Total shareholders’ equity	$	964,089		$	866,899

MAX RE CAPITAL LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(Expressed in thousands of United States Dollars)

	Three Months Ended March 31
	2005			2004
OPERATING ACTIVITIES
Net income	$	36,809		$	42,989
Adjustments to reconcile net income to net cash from operating activities:
Amortization of unearned stock based compensation		2,495			1,461
Amortization of premium on fixed maturities		2,413			2,046
Net realized gains on sale of fixed maturities		(390	)		(5,781	)
Alternative investments		(51,418	)		(157,046	)
Accrued interest income		(1,933	)		(1,232	)
Premiums receivable		(59,954	)		(64,998	)
Losses recoverable from reinsurers		(22,529	)		(31,811	)
Funds withheld		—			(19,160	)
Deferred acquisition costs		(36,027	)		(42,785	)
Deferred charges		895			(4,515	)
Prepaid reinsurance premiums		(1,641	)		(7,905	)
Other assets		(3,571	)		(7,649	)
Property and casualty losses and experience refunds		107,170			146,174
Life and annuity benefits and experience refunds		124,406			(6,074	)
Funds withheld from reinsurers		10,667			25,219
Unearned property and casualty premiums		103,880			206,569
Reinsurance balances payable		(5,511	)		(20,460	)
Accounts payable and accrued expenses		(39,211	)		(19,726	)
Cash from operating activities		166,550			35,316
INVESTING ACTIVITIES
Purchase of fixed maturities		(589,498	)		(374,228	)
Sales of fixed maturities		464,420			322,061
Redemptions of fixed maturities		12,420			12,889
Cash used in investing activities		(112,658	)		(39,278	)
FINANCING ACTIVITIES
Net proceeds from issuance of common shares		1,260			—
Dividends		(1,392	)		(1,371	)
Additions to deposit liabilities		13,916			30,407
Payment of deposit liabilities		(53,566	)		(54,983	)
Notes and loans repaid		10,050			—
Cash used in financing activities		(29,732	)		(25,947	)
Effect of exchange rate on cash		(609	)		(139	)
Net increase (decrease) in cash and cash equivalents		23,551			(30,048	)
Cash and cash equivalents, beginning of period		239,188			201,515
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	262,739		$	171,467

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

Interest paid totaled $1,589 and $1,152 for the three months ended March 31, 2005 and 2004, respectively.

MAX RE CAPITAL LTD.

SCHEDULE OF SUPPLEMENTAL DATA - MARCH 31, 2005

Year to Date Segment Information: (in 000’s US$)	Property & Casualty									Life & Annuity			Corporate		Consolidated
	Reinsurance			Insurance			Total			Reinsurance
Gross premiums written	$	248,210		$	64,255		$	312,465		$	143,224		$	—	$	455,689
Reinsurance premiums ceded		(15,978	)		(28,000	)		(43,978	)		(41	)		—		(44,019	)
Net premiums written	$	232,232		$	36,255		$	268,487		$	143,183		$	—	$	411,670
Earned premiums	$	139,318		$	67,786		$	207,104		$	143,224		$	—	$	350,328
Earned premiums ceded		(12,566	)		(29,397	)		(41,963	)		(41	)		—		(42,004	)
Net premiums earned		126,752			38,389			165,141			143,183			—		308,324
Net investment income		—			—			—			—			23,689		23,689
Net gains on alternative investments		—			—			—			—			14,377		14,377
Net realized gains on sales of fixed maturities		—			—			—			—			390		390
Other income		—			—			—			—			1,318		1,318
Total revenues		126,752			38,389			165,141			143,183			39,774		348,098
Losses, benefits and experience refunds		89,722			27,561			117,283			151,015			—		268,298
Acquisition costs		20,857			424			21,281			221			—		21,502
Interest expense		—			—			—			—			6,232		6,232
General and administrative expenses		3,644			2,529			6,173			1,039			8,045		15,257
Total losses and expenses		114,223			30,514			144,737			152,275			14,277		311,289
Net income (loss) before minority interest	$	12,529		$	7,875		$	20,404		$	(9,092	)	$	25,497	$	36,809
Loss Ratio (a)		70.8	%		71.8	%		71.0	%
Combined Ratio (b)		90.1	%		79.5	%		87.6	%

(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		Last 3 Months		Last 12 Months		Last 36 months**
Cash and Fixed Maturities	$	2,508,129	68.2	%	0.14	%	1.69	%	5.44	%
Global Macro	$	137,284	3.7	%	-1.58	%	5.05	%	12.41	%
Long / Short Equity		129,639	3.5	%	3.51	%	5.16	%	8.96	%
Convertible Arbitrage		43,266	1.2	%	-2.95	%	-4.81	%	5.49	%
Diversified Arbitrage		182,892	5.0	%	1.13	%	4.16	%	7.98	%
Distressed Securities		159,210	4.3	%	2.97	%	19.87	%	22.30	%
Opportunistic		24,556	0.7	%	5.84	%	27.39	%	13.17	%
Emerging Markets		73,239	2.0	%	6.50	%	23.66	%	18.57	%
Fixed Income Arbitrage		85,420	2.3	%	-1.14	%	-1.89	%	9.32	%
Event-Driven Arbitrage		128,446	3.5	%	2.96	%	13.23	%	14.53	%
Commodity Trading Advisers		65,471	1.8	%	-0.92	%	-8.47	%	2.97	%
Credit Long / Short		74,634	2.0	%	0.81	%	9.92	%	8.21	%
MDS		1,104,057	30.0	%	1.22	%	6.60	%	10.48	%
Insurance Underwriting		66,130	1.8	%	0.69	%	-12.04	%	5.15	%
Alternative Investments	$	1,170,187	31.8	%	1.20	%	5.24	%	10.20	%
Total Investments	$	3,678,316	100.0	%	0.46	%	2.87	%	7.10	%

* Expressed in thousands of United States Dollars

** Annualized