Alterra Capital 8-K Max Re Capital Reports Third Quarter Net Income of $0.42 Per Diluted Share

Exhibit 99.1

Max Re Capital Reports Third Quarter Net Income of $0.42 Per Diluted Share

Attractive Underwriting Opportunities Lead to Reduction in Alternative Investment Allocation

Hamilton, Bermuda, November 13, 2006 - Max Re Capital Ltd. (NASDAQ: MXRE) today reported net income for the three months ended September 30, 2006 of $26.5 million, or net income of $0.42 per diluted share, compared to a net loss of $44.2 million, or a net loss of $0.96 per diluted share, for the three months ended September 30, 2005. Net operating income, which represents net income adjusted for net realized gains and losses on sales of fixed maturities, for the three months ended September 30, 2006 was $26.8 million, or net operating income of $0.42 per diluted share, compared with a net operating loss of $45.9 million, or a net operating loss of $0.99 per diluted share, for the three months ended September 30, 2005. For the nine months ended September 30, 2006, the Company had net income of $121.5 million, or net income of $1.91 per diluted share, compared to $22.1 million, or $0.44 per diluted share, for the nine months ended September 30, 2005. For the nine months ended September 30, 2006, the Company had net operating income of $128.8 million, or net operating income of $2.03 per diluted share, compared to $19.3 million, or $0.39 per diluted share, for the nine months ended September 30, 2005.

W. Marston Becker, Chairman and acting Chief Executive Officer, commented, “During the third quarter the Company produced the best property and casualty underwriting results in its history principally due to the favorable maturing of general liability insurance reserves and benign catastrophe activity. Our insurance business continues to be our fastest growing segment. The underwriting results were partially offset by disappointing returns on our alternative investment portfolio. The opportunity to continue to write attractive property and casualty premium volume, has led us to establish a reduced target range for alternative investments of 15% to 20% of invested assets”.

Gross premiums written for the three months ended September 30, 2006 were $177.9 million, of which $177.3 million came from property and casualty underwriting and $0.6 million came from life and annuity underwriting, compared to $288.0 million, of which $196.3 million came from property and casualty underwriting and $91.7 million came from life and annuity underwriting, for the three months ended September 30, 2005. Net premiums earned for the three months ended September 30, 2006 were $147.1 million compared to $295.8 million for the same period of 2005. Gross premiums written for the nine months ended September 30, 2006 were $717.7 million compared to $988.8 million for the first nine months of 2005. Property and casualty reinsurance, property and casualty insurance and life and annuity reinsurance accounted for 55%, 39% and 6%, respectively, of gross premiums written for the first nine months of 2006, compared to 48%, 25% and 27%, respectively, for the same period in 2005. Net premiums earned for the first nine months of 2006 decreased 36.5% to $506.0 million compared to $796.8 million for the same period in 2005. The decline in gross premiums written and net premiums earned for the first nine months of 2006 principally relates to decreased life and annuity business written and earned.

Net investment income for the three months ended September 30, 2006 increased to $38.7 million, from $27.0 million for the same period in 2005 and is attributable to a year over year increase in cash and fixed maturities balances and higher yields on fixed maturities investments. Net investment income for the nine months ended September 30, 2006 increased $33.5 million, to $109.2 million, compared to $75.7 million for the same period in 2005. Net losses on alternative investments for the three months ended September 30, 2006 were $31.0 million, or a (2.33)% rate of return, compared to net gains on alternative investments of $35.6 million, or a 3.0% rate of return, for the same period in 2005. For the nine months ended September 30, 2006, alternative investments have returned 1.57%, compared to 4.50% for the same period in 2005. Invested assets were $4.6 billion as of September 30, 2006, with an allocation of approximately 72% to cash and fixed maturities and 28% to alternative investments.

Losses and benefits were $89.2 million for the three months ended September 30, 2006 compared to $367.7 million for the same period in 2005. The decrease in 2006 is principally attributable to the lower volume of life and annuity underwriting, a reduction in prior years general liability insurance reserves of $20.5 million and the absence of significant natural catastrophe losses compared to $100.0 million in natural catastrophe losses included in the three months ended September 30, 2005. Losses and benefits for the nine months ended September 30, 2006 were $380.1 million compared to $792.4 million for the same period in 2005. The decrease for the nine months ended September 30, 2006 compared to the same period in 2005 is principally attributable to the decrease in life and annuity underwriting, reduction in prior year general liability insurance reserves and the recording of natural catastrophe losses in the 2005 period.

Acquisition costs for the three months ended September 30, 2006 were $19.0 million compared to $20.5 million for the three months ended September 30, 2005, the decrease resulting from lower net premiums earned in 2006. Acquisition costs are principally related to our property and casualty reinsurance and insurance segments.

Interest expense for the three months ended September 30, 2006 was ($1.7) million compared to $2.7 million for the same period in 2005, principally attributable to favorable development of $12.0 million on a reinsurance contract that was recorded as a deposit liability.

General and administrative expenses for the three months ended September 30, 2006 were $21.6 million compared to $14.5 million for the same period in 2005. General and administrative expenses for the three months ended September 30, 2006 increased principally due to increased personnel costs and additional costs related to the internal investigation.

Shareholders’ equity was $1,294.5 million at September 30, 2006. Book value per share at September 30, 2006 was $21.74 per share, compared to $20.16 at December 31, 2005. Annualized operating return on average shareholders’ equity for the nine months ended September 30, 2006 was 13.8%.

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.

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.

Contact Information:
Keith S. Hynes	N. James Tees
Executive Vice President & CFO	Senior Vice President & Treasurer
441-296-8800	441-296-8800
keithh@maxre.bm	jimt@maxre.bm

MAX RE CAPITAL LTD.

CONSOLIDATED BALANCE SHEETS

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

	September 30, 2006			December 31, 2005
	(Unaudited)			(Restated)
ASSETS
Cash and cash equivalents	$	327,294		$	314,031
Fixed maturities, available for sale at fair value		2,948,285			2,682,864
Alternative investments, at fair value		1,282,710			1,230,889
Accrued interest income		35,597			32,632
Premiums receivable		410,378			398,666
Losses and benefits recoverable from reinsurers		509,421			453,641
Funds withheld		15,570			16,932
Deferred acquisition costs		77,824			69,015
Prepaid reinsurance premiums		102,432			83,493
Other assets		23,754			23,001
Total assets	$	5,733,265		$	5,305,164
LIABILITIES
Property and casualty losses	$	2,238,482		$	2,006,032
Life and annuity benefits		886,183			854,224
Deposit liabilities		203,570			225,328
Funds withheld from reinsurers		256,371			271,992
Unearned property and casualty premiums		505,547			442,976
Reinsurance balances payable		83,559			90,781
Accounts payable and accrued expenses		115,007			78,111
Bank loan		150,000			150,000
Total liabilities		4,438,719			4,119,444
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; 59,549,893 (2005 - 58,829,354) shares issued and outstanding		59,550			58,829
Additional paid-in capital		937,089			921,384
Loans receivable from common share sales		—			(465	)
Unearned stock grant compensation		(17,832	)		(14,574	)
Accumulated other comprehensive income (loss)		(11,230	)		4,981
Retained earnings		326,969			215,565
Total shareholders’ equity		1,294,546			1,185,720
Total liabilities and shareholders’ equity	$	5,733,265		$	5,305,164
Book Value Per Share	$	21.74		$	20.16

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 September 30						Nine Months Ended September 30
	2006			2005			2006			2005
				(Restated)						(Restated)
REVENUES
Gross premiums written	$	177,854		$	288,047		$	717,745		$	988,843
Reinsurance premiums ceded		(39,005	)		(34,481	)		(170,406	)		(130,628	)
Net premiums written	$	138,849		$	253,566		$	547,339		$	858,215
Earned premiums	$	202,831		$	343,437		$	658,240		$	929,364
Earned premiums ceded		(55,750	)		(47,660	)		(152,213	)		(132,606	)
Net premiums earned		147,081			295,777			506,027			796,758
Net investment income		38,668			27,002			109,195			75,654
Net gains (losses) on alternative investments		(31,004	)		35,642			18,219			53,617
Net realized gains (losses) on sale of fixed maturities		(288	)		1,624			(7,249	)		2,827
Other income		167			1,088			831			3,588
Total revenues		154,624			361,133			627,023			932,444
LOSSES AND EXPENSES
Losses and benefits		89,186			367,681			380,110			792,436
Acquisition costs		18,979			20,492			59,369			59,914
Interest expense		(1,650	)		2,720			6,317			15,916
General and administrative expenses		21,612			14,484			59,725			42,052
Total losses and expenses		128,127			405,377			505,521			910,318
NET INCOME		26,497			(44,244	)		121,502			22,126
Change in net unrealized appreciation of fixed maturities		61,110			(31,393	)		(20,064	)		(3,660	)
Foreign currency translation adjustment		2,371			1,011			3,853			(3,314	)
COMPREHENSIVE INCOME (LOSS)	$	89,978		$	(74,626	)	$	105,291		$	15,152
Basic earnings (loss) per share	$	0.45		$	(0.96	)	$	2.05		$	0.48
Diluted earnings (loss) per share	$	0.42		$	(0.96	)	$	1.91		$	0.44
Diluted net operating earnings (loss) per share	$	0.42		$	(0.99	)	$	2.03		$	0.39
Weighted average shares outstanding - basic		59,447,853			46,104,424			59,373,409			46,160,067
Weighted average shares outstanding - diluted		63,249,815			46,104,424			63,511,226			49,850,390

MAX RE CAPITAL LTD.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

(Expressed in thousands of United States Dollars)

	Nine Months Ended September 30,
	2006			2005
				(Restated)
Preferred shares
Balance, beginning of period	$	—		$	—
Balance, end of period		—			—
Common shares
Balance, beginning of period		58,829			45,826
Issue of shares		722			621
Repurchase of shares		(1	)		(335	)
Balance, end of period		59,550			46,112
Additional paid-in capital
Balance, beginning of period		921,384			643,444
Issue of common shares		15,106			11,673
Stock option expense		616			574
Repurchase of shares		(17	)		(7,025	)
Balance, end of period		937,089			648,666
Loans receivable from common share sales
Balance, beginning of period		(465	)		(10,515	)
Loans repaid		465			10,050
Balance, end of period		—			(465	)
Unearned stock grant compensation
Balance, beginning of period		(14,574	)		(13,294	)
Stock grants awarded		(13,052	)		(10,847	)
Amortization		9,794			7,416
Balance, end of period		(17,832	)		(16,725	)
Accumulated other comprehensive income (loss)
Balance, beginning of period		4,981			22,227
Holding losses on fixed maturities arising in period		(27,313	)		(833	)
Net realized losses (gains) included in net income		7,249			(2,827	)
Currency translation adjustments		3,853			(3,314	)
Balance, end of period		(11,230	)		15,253
Retained earnings
Balance, beginning of period		215,565			215,015
Net income		121,502			22,126
Dividends paid		(10,098	)		(6,015	)
Balance, end of period		326,969			231,126
Total shareholders’ equity	$	1,294,546		$	923,967

MAX RE CAPITAL LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(Expressed in thousands of United States Dollars)

	Nine Months Ended September 30
	2006			2005
				(Restated)
OPERATING ACTIVITIES
Net income	$	121,502		$	22,126
Adjustments to reconcile net income to net cash from operating activities:
Amortization of unearned stock based compensation		10,410			7,990
Amortization of premium on fixed maturities		5,053			7,071
Accretion of deposit liabilities		(10,474	)		2,516
Net realized (gains) losses on sale of fixed maturities		7,249			(2,827	)
Alternative investments		(51,552	)		(88,928	)
Accrued interest income		(2,965	)		(5,559	)
Premiums receivable		(11,712	)		(38,975	)
Losses and benefits recoverable from reinsurers		(55,780	)		(55,932	)
Funds withheld		1,362			724
Deferred acquisition costs		(8,809	)		(30,971	)
Prepaid reinsurance premiums		(18,939	)		2,961
Other assets		(753	)		1,950
Property and casualty losses		232,450			308,904
Life and annuity benefits		31,959			198,011
Funds withheld from reinsurers		(15,621	)		(10,399	)
Unearned property and casualty premiums		62,571			55,347
Reinsurance balances payable		(7,222	)		(2,568	)
Accounts payable and accrued expenses		36,896			(19,005	)
Cash from operating activities		325,625			352,436
INVESTING ACTIVITIES
Purchase of fixed maturities		(852,365	)		(1,257,224	)
Sales of fixed maturities		425,485			918,799
Redemptions of fixed maturities		128,824			23,530
Cash used in investing activities		(298,056	)		(314,895	)
FINANCING ACTIVITIES
Net proceeds from issuance of common shares		2,776			1,447
Repurchase of common shares		(18	)		(7,360	)
Dividends		(10,098	)		(6,015	)
Additions to deposit liabilities		25,297			9,128
Payment of deposit liabilities		(36,581	)		(53,269	)
Notes and loans repaid		465			10,050
Cash used in financing activities		(18,159	)		(46,019	)
Effect of exchange rate on cash		3,853			(3,314	)
Net increase in cash and cash equivalents		13,263			(11,792	)
Cash and cash equivalents, beginning of period		314,031			239,188
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	327,294		$	227,396

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

Interest paid totaled $9,096 and $5,580 for the nine months ended September 30, 2006 and 2005, respectively.

MAX RE CAPITAL LTD.

SCHEDULE OF SUPPLEMENTAL DATA - NINE MONTHS TO SEPTEMBER 30, 2006 (Unaudited)

Year to Date Segment Information: (in 000’s US$)	Property & Casualty									Life & Annuity Reinsurance			Corporate			Consolidated
	Reinsurance			Insurance			Total
Gross premiums written	$	397,481		$	276,078		$	673,559		$	44,186		$	—		$	717,745
Reinsurance premiums ceded		(33,653	)		(136,196	)		(169,849	)		(557	)		—			(170,406	)
Net premiums written	$	363,828		$	139,882		$	503,710		$	43,629		$	—		$	547,339
Earned premiums	$	339,880		$	274,174		$	614,054		$	44,186		$	—		$	658,240
Earned premiums ceded		(24,471	)		(127,185	)		(151,656	)		(557	)		—			(152,213	)
Net premiums earned		315,409			146,989			462,398			43,629			—			506,027
Net investment income		—			—			—			—			109,195			109,195
Net gains on alternative investments		—			—			—			—			18,219			18,219
Net realized losses on sales of fixed maturities		—			—			—			—			(7,249	)		(7,249	)
Other income		—			—			—			—			831			831
Total revenues		315,409			146,989			462,398			43,629			120,996			627,023
Losses and benefits		224,960			83,315			308,275			71,835			—			380,110
Acquisition costs		57,360			554			57,914			1,455			—			59,369
Interest expense		—			—			—			—			6,317			6,317
General and administrative expenses		16,957			10,767			27,724			2,169			29,832			59,725
Total losses and expenses		299,277			94,636			393,913			75,459			36,149			505,521
Net income (loss)	$	16,132		$	52,353		$	68,485		$	(31,830	)	$	84,847		$	121,502
Loss Ratio (a)		71.3	%		56.7	%		66.7	%
Combined Ratio (b)		94.9	%		64.4	%		85.2	%

SCHEDULE OF SUPPLEMENTAL DATA - THREE MONTHS TO SEPTEMBER 30, 2006 (Unaudited)

Quarter Segment Information: (in 000’s US$)	Property & Casualty									Life & Annuity Reinsurance			Corporate			Consolidated
	Reinsurance			Insurance			Total
Gross premiums written	$	98,708		$	78,531		$	177,239		$	615		$	—		$	177,854
Reinsurance premiums ceded		(6,130	)		(32,579	)		(38,709	)		(296	)		—			(39,005	)
Net premiums written	$	92,578		$	45,952		$	138,530		$	319		$	—		$	138,849
Earned premiums	$	107,209		$	95,007		$	202,216		$	615		$	—		$	202,831
Earned premiums ceded		(9,164	)		(46,290	)		(55,454	)		(296	)		—			(55,750	)
Net premiums earned		98,045			48,717			146,762			319			—			147,081
Net investment income		—			—			—			—			38,668			38,668
Net losses on alternative investments		—			—			—			—			(31,004	)		(31,004	)
Net realized losses on sales of fixed maturities		—			—			—			—			(288	)		(288	)
Other income		—			—			—			—			167			167
Total revenues		98,045			48,717			146,762			319			7,543			154,624
Losses and benefits		71,735			8,483			80,218			8,968			—			89,186
Acquisition costs		17,957			111			18,068			911			—			18,979
Interest expense		—			—			—			—			(1,650	)		(1,650	)
General and administrative expenses		5,985			3,894			9,879			853			10,880			21,612
Total losses and expenses		95,677			12,488			108,165			10,732			9,230			128,127
Net income (loss)	$	2,368		$	36,229		$	38,597		$	(10,413	)	$	(1,687	)	$	26,497
Loss Ratio (a)		73.2	%		17.4	%		54.7	%
Combined Ratio (b)		97.6	%		25.6	%		73.7	%

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

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

MAX RE CAPITAL LTD.

SCHEDULE OF SUPPLEMENTAL DATA - SEPTEMBER 30, 2006 (Unaudited)

Selected Investment Return Data:	Fair Value*		Investment %’s		Last 3 Months		Periodic Rate of Return				Last 60 months**
							Year to Date		Last 12 Months
Cash and Fixed Maturities	$	3,275,579	71.9	%	3.28	%	2.79	%	3.41	%	4.58	%
Global Macro	$	85,202	1.9	%	1.20	%	1.15	%	3.13	%	9.58	%
Long / Short Equity		203,189	4.5	%	-1.17	%	-2.53	%	-5.65	%	5.02	%
Diversified Arbitrage		211,268	4.6	%	-13.61	%	-6.89	%	-3.67	%	6.22	%
Distressed Securities		213,576	4.7	%	0.82	%	9.32	%	10.43	%	17.55	%
Opportunistic		28,430	0.6	%	2.73	%	19.06	%	25.63	%	14.57	%
Emerging Markets		134,840	3.0	%	-0.34	%	5.33	%	5.79	%	15.41	%
Fixed Income Arbitrage		25,575	0.6	%	-0.18	%	10.87	%	8.81	%	5.95	%
Event-Driven Arbitrage		172,317	3.8	%	-1.16	%	2.70	%	2.62	%	10.05	%
Commodity Trading Advisers		50,805	1.1	%	-2.02	%	-2.70	%	-2.20	%	3.84	%
Credit Long / Short		116,728	2.6	%	1.67	%	7.81	%	9.42	%	8.81	%
MDS		1,241,929	27.2	%	-2.72	%	1.02	%	1.53	%	7.93	%
Reinsurance Private Equity		40,781	0.9	%	11.20	%	22.11	%	-22.31	%	-4.17	%
Alternative Investments	$	1,282,710	28.1	%	-2.33	%	1.57	%	0.45	%	7.39	%
Total Investments	$	4,558,289	100.0	%	1.64	%	2.52	%	2.57	%	5.64	%

* Expressed in thousands of United States Dollars

** Annualized