##### Table of Contents



| |                                                                        
| | -----------------------------------------------------------------------
| | As filed with the Securities and Exchange Commission on
    May 9, 2005







SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-Q


QUARTERLY REPORT UNDER SECTION 13 OR 15(d)


OF THE SECURITIES EXCHANGE ACT OF 1934


|                                          |  |                                    
|----------------------------------------- |  | -----------------------------------
|For the Quarter Ended:
    March 31, 2005 |  | Commission File Number:
    1-16535




Odyssey Re Holdings Corp.


(Exact Name of Registrant as Specified in its Charter)


|                                                                   |  |                                                              |  |                                            
|------------------------------------------------------------------ |  | ------------------------------------------------------------ |  | -------------------------------------------
|Delaware                                                           |  | 6719                                                         |  | 52-2301683                                 
|(State or Other Jurisdiction Of
    Incorporation or Organization) |  | (Primary Standard Industrial
    Classification Code Number) |  | (I.R.S. Employer
    Identification Number)

Odyssey Re Holdings Corp.


300 First Stamford Place, Stamford, CT 06902


(203) 977-8000


(Address, including zip code, and telephone number,


including area code, of registrants principal executive
offices)


Donald L. Smith, Esq.


Senior Vice President, General Counsel and Corporate
Secretary


Odyssey Re Holdings Corp.


300 First Stamford Place, Stamford, CT 06902


(203) 977-8000


(Name, address, including zip code, and telephone number,


including area code, of agent for service)


þ o


þ o




|                             |  |  |  |                                             |            | 
|---------------------------- |  |  |  | ------------------------------------------- | ---------- | 
|Class                        |  |  |  | Number of Shares Outstanding at May 2, 2005
|                             |  |  |  |                                            
|Common Stock, $.01 Par Value |  |  |  |                                             | 64,847,265 | 









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TABLE OF CONTENTS


ODYSSEY RE HOLDINGS CORP.


INDEX TO FORM 10-Q


|                                 |  |                                                                                                                                       |  |      |    | 
|-------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | -- | 
|                                 |  |                                                                                                                                       |  | Page
|                                 |  |                                                                                                                                       |  |     
|PART I
    FINANCIAL INFORMATION
|Item 1.                          |  | Financial Statements                                                                                                                  |  |      | 2  | 
|                                 |  | Consolidated Balance Sheets as of
    March 31, 2005 (unaudited) and December 31, 2004                                                |  |      | 2  | 
|                                 |  | Consolidated Statements of Operations and
    Comprehensive Income for the three months ended March 31,
    2005 and 2004 (unaudited) |  |      | 3  | 
|                                 |  | Consolidated Statements of
    Stockholders Equity for the three months ended
    March 31, 2005 and 2004 (unaudited)                |  |      | 4  | 
|                                 |  | Consolidated Statements of Cash Flows for
    the three months ended March 31, 2005 and 2004
    (unaudited)                          |  |      | 5  | 
|                                 |  | Notes to Consolidated Financial Statements
    (unaudited)                                                                            |  |      | 6  | 
|Item 2.                          |  | Managements Discussion and
    Analysis of Financial Condition and Results of Operations                                             |  |      | 19 | 
|Item 3.                          |  | Quantitative and Qualitative Disclosures
    About Market Risk                                                                        |  |      | 29 | 
|Item 4.                          |  | Controls and Procedures                                                                                                               |  |      | 32 | 
|PART II
    OTHER INFORMATION   
|Item 1.                          |  | Legal Proceedings                                                                                                                     |  |      | 33 | 
|Item 2.                          |  | Unregistered Sales of Equity Securities
    and Use of Proceeds                                                                       |  |      | 33 | 
|Item 3.                          |  | Defaults Upon Senior Securities                                                                                                       |  |      | 33 | 
|Item 4.                          |  | Submission of Matters to a Vote of
    Security Holders                                                                               |  |      | 33 | 
|Item 5.                          |  | Other Information  Forward
    Looking Statements                                                                                    |  |      | 33 | 
|Item 6.                          |  | Exhibits                                                                                                                              |  |      | 35 | 
|                                 |  | Signatures                                                                                                                            |  |      | 36 | 
|EX-10.37                        
|EX-31.1                         
|EX-31.2                         
|EX-32.1                         
|EX-32.2                         



1



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##### Table of Contents






PART I  FINANCIAL INFORMATION





PART I 
Item 1.Financial
Statements


ODYSSEY RE HOLDINGS CORP.





CONSOLIDATED BALANCE SHEETS


MARCH 31, 2005 (UNAUDITED) AND DECEMBER 31, 2004


(In thousands, except share amounts)


|                                                                                           |                                                                                                     |                                                                             |                                            |              |           |           |           |           |         |           | 
|------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------- | ------------------------------------------ | ------------ | --------- | --------- | --------- | --------- | ------- | --------- | 
|                                                                                           |                                                                                                     | March 31,                                                                   |                                            | December 31,
|                                                                                           |                                                                                                     | 2005                                                                        |                                            | 2004        
|                                                                                           |                                                                                                     |                                                                             |                                            |             
|ASSETS                                                                                    
|Investments and cash:                                                                      |                                                                                                     |                                                                             |                                            |              |           |           |           |          
|                                                                                           | Fixed income securities, at fair value (amortized cost
    $2,611,460 and $2,478,614, respectively) |                                                                             | $                                          | 2,595,261    |           |           | $         | 2,505,630 |        
|                                                                                           | Equity securities:                                                                                  |                                                                             |                                            |              |           |           |           |           |        
|                                                                                           |                                                                                                     | Common stocks, at fair value (cost $839,350 and $736,212,
    respectively) |                                            |              | 1,001,989 |           |           |           | 869,871 |          
|                                                                                           |                                                                                                     | Common stocks, at equity                                                    |                                            |              | 165,400   |           |           |           | 165,507 |          
|                                                                                           | Short-term investments, at cost which approximates fair value                                       |                                                                             |                                            | 212,484      |           |           |           | 213,403   |        
|                                                                                           | Cash and cash equivalents                                                                           |                                                                             |                                            | 1,071,423    |           |           |           | 1,156,447 |        
|                                                                                           | Cash collateral for borrowed securities                                                             |                                                                             |                                            | 178,861      |           |           |           | 176,518   |        
|                                                                                           | Other invested assets                                                                               |                                                                             |                                            | 184,095      |           |           |           | 149,075   |        
|                                                                                           |                                                                                                     |                                                                             |                                            |              |           |           |           |          
|                                                                                           |                                                                                                     |                                                                             | Total investments and cash                 |              |           | 5,409,513 |           |           |         | 5,236,451 | 
|Investment income due and accrued                                                          |                                                                                                     |                                                                             | 27,549                                     |              |           |           | 39,609    |          
|Premiums receivable                                                                        |                                                                                                     |                                                                             | 574,104                                    |              |           |           | 550,198   |          
|Reinsurance recoverables on loss payments                                                  |                                                                                                     |                                                                             | 130,411                                    |              |           |           | 89,912    |          
|Reinsurance recoverables on unpaid losses                                                  |                                                                                                     |                                                                             | 1,061,159                                  |              |           |           | 1,092,082 |          
|Prepaid reinsurance premiums                                                               |                                                                                                     |                                                                             | 93,986                                     |              |           |           | 93,774    |          
|Funds held by ceding insurers                                                              |                                                                                                     |                                                                             | 180,854                                    |              |           |           | 192,346   |          
|Deferred acquisition costs                                                                 |                                                                                                     |                                                                             | 179,401                                    |              |           |           | 171,083   |          
|Federal and foreign income taxes                                                           |                                                                                                     |                                                                             | 115,621                                    |              |           |           | 102,298   |          
|Other assets                                                                               |                                                                                                     |                                                                             | 111,610                                    |              |           |           | 138,022   |          
|                                                                                           |                                                                                                     |                                                                             |                                            |              |           |           |           |          
|                                                                                           |                                                                                                     |                                                                             | Total assets                               |              | $         | 7,884,208 |           |           | $       | 7,705,775 | 
|                                                                                           |                                                                                                     |                                                                             |                                            |              |           |           |           |          
|                                                                                          
|LIABILITIES                                                                               
|Unpaid losses and loss adjustment expenses                                                 |                                                                                                     | $                                                                           | 4,333,325                                  |              |           | $         | 4,228,021 |          
|Unearned premiums                                                                          |                                                                                                     |                                                                             | 879,480                                    |              |           |           | 832,305   |          
|Reinsurance balances payable                                                               |                                                                                                     |                                                                             | 134,660                                    |              |           |           | 122,182   |          
|Funds held under reinsurance contracts                                                     |                                                                                                     |                                                                             | 176,841                                    |              |           |           | 179,867   |          
|Debt obligations                                                                           |                                                                                                     |                                                                             | 375,852                                    |              |           |           | 376,040   |          
|Obligations to return borrowed securities                                                  |                                                                                                     |                                                                             | 43,357                                     |              |           |           | 56,191    |          
|Other liabilities                                                                          |                                                                                                     |                                                                             | 135,255                                    |              |           |           | 140,874   |          
|                                                                                           |                                                                                                     |                                                                             |                                            |              |           |           |           |          
|                                                                                           |                                                                                                     |                                                                             | Total liabilities                          |              |           | 6,078,770 |           |           |         | 5,935,480 | 
|                                                                                           |                                                                                                     |                                                                             |                                            |              |           |           |           |          
|Minority interests                                                                         |                                                                                                     |                                                                             | 205,448                                    |              |           |           | 184,795   |          
|                                                                                           |                                                                                                     |                                                                             |                                            |              |           |           |           |          
|                                                                                          
|STOCKHOLDERS EQUITY                                                                      
|Preferred stock, $0.01 par value; 200,000,000 shares authorized;
    0 shares issued       |                                                                                                     |                                                                             |                                           |              |           |           |          |          
|Common stock, $0.01 par value; 500,000,000 shares authorized;
    65,142,857 shares issued |                                                                                                     |                                                                             | 651                                        |              |           |           | 651       |          
|Additional paid-in capital                                                                 |                                                                                                     |                                                                             | 794,063                                    |              |           |           | 794,055   |          
|Treasury stock, at cost (295,592 and 387,879 shares,
    respectively)                     |                                                                                                     |                                                                             | (7,146                                     | )            |           |           | (9,426    | )        
|Unearned compensation                                                                      |                                                                                                     |                                                                             | (7,096                                     | )            |           |           | (4,977    | )        
|Accumulated other comprehensive income, net of deferred income
    taxes                   |                                                                                                     |                                                                             | 117,039                                    |              |           |           | 136,849   |          
|Retained earnings                                                                          |                                                                                                     |                                                                             | 702,479                                    |              |           |           | 668,348   |          
|                                                                                           |                                                                                                     |                                                                             |                                            |              |           |           |           |          
|                                                                                           |                                                                                                     |                                                                             | Total stockholders equity                 |              |           | 1,599,990 |           |           |         | 1,585,500 | 
|                                                                                           |                                                                                                     |                                                                             |                                            |              |           |           |           |          
|                                                                                           |                                                                                                     |                                                                             | Total liabilities and stockholders equity |              | $         | 7,884,208 |           |           | $       | 7,705,775 | 
|                                                                                           |                                                                                                     |                                                                             |                                            |              |           |           |           |          



2



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##### Table of Contents



ODYSSEY RE HOLDINGS CORP.





CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME


THREE MONTHS ENDED MARCH 31, 2005 AND 2004 (UNAUDITED)


(In thousands, except share and per share amounts)


|                                                    |                                                |              |            |              |   |   |            |         | 
|--------------------------------------------------- | ---------------------------------------------- | ------------ | ---------- | ------------ | - | - | ---------- | ------- | 
|                                                    |                                                | Three Months |            | Three Months
|                                                    |                                                | Ended        |            | Ended       
|                                                    |                                                | March 31,    |            | March 31,   
|                                                    |                                                | 2005         |            | 2004        
|                                                    |                                                |              |            |             
|REVENUES                                            |                                                |              |            |              |   |   |            |        
|Gross premiums written                              |                                                | $            | 681,567    |              |   | $ | 629,483    |        
|Ceded premiums written                              |                                                |              | 65,992     |              |   |   | 76,244     |        
|                                                    |                                                |              |            |              |   |   |            |        
|                                                    | Net premiums written                           |              |            | 615,575      |   |   |            | 553,239 | 
|Increase in unearned premiums                       |                                                |              | (47,307    | )            |   |   | (6,978     | )      
|                                                    |                                                |              |            |              |   |   |            |        
|                                                    | Net premiums earned                            |              |            | 568,268      |   |   |            | 546,261 | 
|Net investment income                               |                                                |              | 39,628     |              |   |   | 35,496     |        
|Net realized investment gains                       |                                                |              | 45,174     |              |   |   | 34,839     |        
|                                                    |                                                |              |            |              |   |   |            |        
|                                                    | Total revenues                                 |              |            | 653,070      |   |   |            | 616,596 | 
|                                                    |                                                |              |            |              |   |   |            |        
|EXPENSES                                            |                                                |              |            |              |   |   |            |        
|Losses and loss adjustment expenses                 |                                                |              | 414,079    |              |   |   | 363,557    |        
|Acquisition costs                                   |                                                |              | 118,520    |              |   |   | 125,481    |        
|Other underwriting expenses                         |                                                |              | 32,406     |              |   |   | 29,909     |        
|Other expense, net                                  |                                                |              | 8,227      |              |   |   | 2,360      |        
|Interest expense                                    |                                                |              | 6,406      |              |   |   | 6,394      |        
|                                                    |                                                |              |            |              |   |   |            |        
|                                                    | Total expenses                                 |              |            | 579,638      |   |   |            | 527,701 | 
|                                                    |                                                |              |            |              |   |   |            |        
|Income before income taxes and minority interests   |                                                |              | 73,432     |              |   |   | 88,895     |        
|                                                    |                                                |              |            |              |   |   |            |        
|Federal and foreign income tax provision (benefit): |                                                |              |            |              |   |   |            |        
|                                                    | Current                                        |              |            | 35,624       |   |   |            | 25,122  | 
|                                                    | Deferred                                       |              |            | (11,047      | ) |   |            | 4,796   | 
|                                                    |                                                |              |            |              |   |   |            |        
|                                                    | Total federal and foreign income tax provision |              |            | 24,577       |   |   |            | 29,918  | 
|                                                    |                                                |              |            |              |   |   |            |        
|Minority interests                                  |                                                |              | (12,698    | )            |   |   | (22        | )      
|                                                    |                                                |              |            |              |   |   |            |        
|NET INCOME                                          |                                                | $            | 36,157     |              |   | $ | 58,955     |        
|                                                    |                                                |              |            |              |   |   |            |        
|BASIC                                               |                                                |              |            |              |   |   |            |        
|Weighted average shares outstanding                 |                                                |              | 64,236,299 |              |   |   | 64,418,098 |        
|                                                    |                                                |              |            |              |   |   |            |        
|Basic earnings per common share                     |                                                | $            | 0.56       |              |   | $ | 0.92       |        
|                                                    |                                                |              |            |              |   |   |            |        
|DILUTED                                             |                                                |              |            |              |   |   |            |        
|Weighted average common shares outstanding          |                                                |              | 69,913,234 |              |   |   | 70,453,070 |        
|                                                    |                                                |              |            |              |   |   |            |        
|Diluted earnings per common share                   |                                                | $            | 0.53       |              |   | $ | 0.85       |        
|                                                    |                                                |              |            |              |   |   |            |        
|DIVIDENDS                                           |                                                |              |            |              |   |   |            |        
|Dividends declared per common share                 |                                                | $            | 0.031      |              |   | $ | 0.031      |        
|                                                    |                                                |              |            |              |   |   |            |        
|COMPREHENSIVE INCOME (LOSS)                         |                                                |              |            |              |   |   |            |        
|Net income                                          |                                                | $            | 36,157     |              |   | $ | 58,955     |        
|Other comprehensive loss, net of tax                |                                                |              | (19,810    | )            |   |   | (5,231     | )      
|                                                    |                                                |              |            |              |   |   |            |        
|Comprehensive income                                |                                                | $            | 16,347     |              |   | $ | 53,724     |        
|                                                    |                                                |              |            |              |   |   |            |        



3



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##### Table of Contents



ODYSSEY RE HOLDINGS CORP.





CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY


THREE MONTHS ENDED MARCH 31, 2005 AND 2004
(UNAUDITED)


(In thousands, except share amounts)


|                                                                                    |  |              |            |              |  |   |            |  
|----------------------------------------------------------------------------------- |  | ------------ | ---------- | ------------ |  | - | ---------- | -
|                                                                                    |  | Three Months |            | Three Months
|                                                                                    |  | Ended        |            | Ended       
|                                                                                    |  | March 31,    |            | March 31,   
|                                                                                    |  | 2005         |            | 2004        
|                                                                                    |  |              |            |             
|COMMON STOCK                                                                        |  |              |            |              |  |   |            |  
|Balance, beginning and end of period                                                |  | $            | 651        |              |  | $ | 651        |  
|                                                                                    |  |              |            |              |  |   |            |  
|ADDITIONAL PAID-IN CAPITAL                                                          |  |              |            |              |  |   |            |  
|Balance, beginning of period                                                        |  |              | 794,055    |              |  |   | 793,586    |  
|Net increase during the period                                                      |  |              | 8          |              |  |   | 481        |  
|                                                                                    |  |              |            |              |  |   |            |  
|Balance, end of period                                                              |  |              | 794,063    |              |  |   | 794,067    |  
|                                                                                    |  |              |            |              |  |   |            |  
|TREASURY STOCK                                                                      |  |              |            |              |  |   |            |  
|Balance, beginning of period                                                        |  |              | (9,426     | )            |  |   | (2,549     | )
|Purchases during the period                                                         |  |              | (556       | )            |  |   | (5,198     | )
|Reissuance during the period                                                        |  |              | 2,836      |              |  |   | 3,871      |  
|                                                                                    |  |              |            |              |  |   |            |  
|Balance, end of period                                                              |  |              | (7,146     | )            |  |   | (3,876     | )
|                                                                                    |  |              |            |              |  |   |            |  
|UNEARNED COMPENSATION                                                               |  |              |            |              |  |   |            |  
|Balance, beginning of period                                                        |  |              | (4,977     | )            |  |   | (3,439     | )
|Issuance of restricted stock during the period                                      |  |              | (2,579     | )            |  |   | (4,239     | )
|Amortization during the period                                                      |  |              | 460        |              |  |   | 316        |  
|                                                                                    |  |              |            |              |  |   |            |  
|Balance, end of period                                                              |  |              | (7,096     | )            |  |   | (7,362     | )
|                                                                                    |  |              |            |              |  |   |            |  
|ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), NET OF
    DEFERRED INCOME TAXES     |  |              |            |              |  |   |            |  
|Balance, beginning of period                                                        |  |              | 136,849    |              |  |   | 112,430    |  
|Unrealized net (losses) gains on securities, net of
    reclassification adjustment |  |              | (9,163     | )            |  |   | 843        |  
|Foreign currency translation adjustments                                            |  |              | (10,647    | )            |  |   | (6,074     | )
|                                                                                    |  |              |            |              |  |   |            |  
|Balance, end of period                                                              |  |              | 117,039    |              |  |   | 107,199    |  
|                                                                                    |  |              |            |              |  |   |            |  
|RETAINED EARNINGS                                                                   |  |              |            |              |  |   |            |  
|Balance, beginning of period                                                        |  |              | 668,348    |              |  |   | 489,556    |  
|Net income                                                                          |  |              | 36,157     |              |  |   | 58,955     |  
|Dividends to stockholders                                                           |  |              | (2,026     | )            |  |   | (2,034     | )
|                                                                                    |  |              |            |              |  |   |            |  
|Balance, end of period                                                              |  |              | 702,479    |              |  |   | 546,477    |  
|                                                                                    |  |              |            |              |  |   |            |  
|TOTAL STOCKHOLDERS EQUITY                                                          |  | $            | 1,599,990  |              |  | $ | 1,437,156  |  
|                                                                                    |  |              |            |              |  |   |            |  
|COMMON SHARES OUTSTANDING                                                           |  |              |            |              |  |   |            |  
|Balance, beginning of period                                                        |  |              | 64,754,978 |              |  |   | 64,996,166 |  
|Net treasury shares issued (acquired) during the period                             |  |              | 92,287     |              |  |   | (15,078    | )
|                                                                                    |  |              |            |              |  |   |            |  
|Balance, end of period                                                              |  |              | 64,847,265 |              |  |   | 64,981,088 |  
|                                                                                    |  |              |            |              |  |   |            |  



4



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##### Table of Contents



ODYSSEY RE HOLDINGS CORP.





CONSOLIDATED STATEMENTS OF CASH FLOWS


THREE MONTHS ENDED MARCH 31, 2005 AND 2004 (UNAUDITED)


(In thousands)


|                                                                                      |                                            |                                           |           |              |           |   |            |         |          |  
|------------------------------------------------------------------------------------- | ------------------------------------------ | ----------------------------------------- | --------- | ------------ | --------- | - | ---------- | ------- | -------- | -
|                                                                                      |                                            | Three Months                              |           | Three Months
|                                                                                      |                                            | Ended                                     |           | Ended       
|                                                                                      |                                            | March 31,                                 |           | March 31,   
|                                                                                      |                                            | 2005                                      |           | 2004        
|                                                                                      |                                            |                                           |           |             
|OPERATING ACTIVITIES                                                                  |                                            |                                           |           |              |           |   |            |        
|Net income                                                                            |                                            | $                                         | 36,157    |              |           | $ | 58,955     |        
|Adjustments to reconcile net income to net cash provided by
    operating activities: |                                            |                                           |           |              |           |   |            |        
|                                                                                      | Premiums receivable and funds held, net    |                                           |           | (43,461      | )         |   |            | 3,930   |         
|                                                                                      | Unearned premiums                          |                                           |           | 46,963       |           |   |            | 10,679  |         
|                                                                                      | Unpaid losses and loss adjustment expenses |                                           |           | 136,228      |           |   |            | 123,309 |         
|                                                                                      | Federal and foreign income taxes           |                                           |           | (2,645       | )         |   |            | (5,264  | )       
|                                                                                      | Other assets and liabilities, net          |                                           |           | 35,283       |           |   |            | (15,951 | )       
|                                                                                      | Deferred acquisition costs                 |                                           |           | (8,318       | )         |   |            | (2,905  | )       
|                                                                                      | Net realized investment gains              |                                           |           | (45,174      | )         |   |            | (34,839 | )       
|                                                                                      | Bond discount amortization, net            |                                           |           | (2,204       | )         |   |            | (3,468  | )       
|                                                                                      |                                            |                                           |           |              |           |   |            |        
|                                                                                      |                                            | Net cash provided by operating activities |           |              | 152,829   |   |            |         | 134,446  |  
|                                                                                      |                                            |                                           |           |              |           |   |            |        
|INVESTING ACTIVITIES                                                                  |                                            |                                           |           |              |           |   |            |        
|Maturities of fixed income securities                                                 |                                            |                                           | 68        |              |           |   | 2,837      |        
|Sales of fixed income securities                                                      |                                            |                                           | 225,886   |              |           |   | 691,322    |        
|Purchases of fixed income securities                                                  |                                            |                                           | (343,431  | )            |           |   | (1,495,941 | )      
|Sales of equity securities                                                            |                                            |                                           | 126,490   |              |           |   | 47,747     |        
|Purchases of equity securities                                                        |                                            |                                           | (202,891  | )            |           |   | (74,861    | )      
|Purchases of other invested assets                                                    |                                            |                                           | (25,350   | )            |           |   | (43,133    | )      
|Decrease related to cash collateral for borrowed securities                           |                                            |                                           | (2,343    | )            |           |   |           |        
|Decrease related to obligation to return borrowed securities                          |                                            |                                           | (9,449    | )            |           |   |           |        
|Increase in short-term investments                                                    |                                            |                                           | (1,777    | )            |           |   | (8,127     | )      
|                                                                                      |                                            |                                           |           |              |           |   |            |        
|                                                                                      |                                            | Net cash used in investing activities     |           |              | (232,797  | ) |            |         | (880,156 | )
|                                                                                      |                                            |                                           |           |              |           |   |            |        
|FINANCING ACTIVITIES                                                                  |                                            |                                           |           |              |           |   |            |        
|Dividends                                                                             |                                            |                                           | (2,026    | )            |           |   | (2,034     | )      
|Purchase of treasury stock                                                            |                                            |                                           | (556      | )            |           |   | (5,198     | )      
|                                                                                      |                                            |                                           |           |              |           |   |            |        
|                                                                                      |                                            | Net cash used in financing activities     |           |              | (2,582    | ) |            |         | (7,232   | )
|                                                                                      |                                            |                                           |           |              |           |   |            |        
|Effect of exchange rate changes on cash and cash equivalents                          |                                            |                                           | (2,474    | )            |           |   | 981        |        
|                                                                                      |                                            |                                           |           |              |           |   |            |        
|Decrease in cash and cash equivalents                                                 |                                            |                                           | (85,024   | )            |           |   | (751,961   | )      
|Cash and cash equivalents, beginning of period                                        |                                            |                                           | 1,156,447 |              |           |   | 1,588,659  |        
|                                                                                      |                                            |                                           |           |              |           |   |            |        
|                                                                                      |                                            | Cash and cash equivalents, end of period  |           | $            | 1,071,423 |   |            | $       | 836,698  |  
|                                                                                      |                                            |                                           |           |              |           |   |            |        



5



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##### Table of Contents



ODYSSEY RE HOLDINGS CORP.





NOTES TO CONSOLIDATED FINANCIAL STATEMENTS




|   |                                       
|-- | --------------------------------------
|1. | Organization and Basis of Presentation









|   |                                       
|-- | --------------------------------------
|2. | Accumulated Other Comprehensive Income



|                                                                  |  |              |         |              |  |   |         |  
|----------------------------------------------------------------- |  | ------------ | ------- | ------------ |  | - | ------- | -
|                                                                  |  | Three Months |         | Three Months
|                                                                  |  | Ended        |         | Ended       
|                                                                  |  | March 31,    |         | March 31,   
|                                                                  |  | 2005         |         | 2004        
|                                                                  |  |              |         |             
|Beginning balance of accumulated other comprehensive income       |  | $            | 136,849 |              |  | $ | 112,430 |  
|                                                                  |  |              |         |              |  |   |         |  
|Beginning balance of unrealized net gains on securities           |  |              | 84,412  |              |  |   | 73,756  |  
|Ending balance of unrealized net gains on securities              |  |              | 75,249  |              |  |   | 74,599  |  
|                                                                  |  |              |         |              |  |   |         |  
|Current period change in unrealized net gains on securities       |  |              | (9,163  | )            |  |   | 843     |  
|                                                                  |  |              |         |              |  |   |         |  
|Beginning balance of foreign currency translation adjustments     |  |              | 53,662  |              |  |   | 39,896  |  
|Ending balance of foreign currency translation adjustments        |  |              | 43,015  |              |  |   | 33,822  |  
|                                                                  |  |              |         |              |  |   |         |  
|Current period change in foreign currency translation adjustments |  |              | (10,647 | )            |  |   | (6,074  | )
|                                                                  |  |              |         |              |  |   |         |  
|Beginning balance of minimum pension liability                    |  |              | (1,225  | )            |  |   | (1,222  | )
|Ending balance of minimum pension liability                       |  |              | (1,225  | )            |  |   | (1,222  | )
|                                                                  |  |              |         |              |  |   |         |  
|Current period change of minimum pension liability                |  |              |        |              |  |   |        |  
|                                                                  |  |              |         |              |  |   |         |  
|Current period change in accumulated other comprehensive income   |  |              | (19,810 | )            |  |   | (5,231  | )
|                                                                  |  |              |         |              |  |   |         |  
|Ending balance of accumulated other comprehensive income          |  | $            | 117,039 |              |  | $ | 107,199 |  
|                                                                  |  |              |         |              |  |   |         |  

6



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##### Table of Contents



ODYSSEY RE HOLDINGS CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                   |  |              |         |              |  |   |         |  
|---------------------------------------------------------------------------------- |  | ------------ | ------- | ------------ |  | - | ------- | -
|                                                                                   |  | Three Months |         | Three Months
|                                                                                   |  | Ended        |         | Ended       
|                                                                                   |  | March 31,    |         | March 31,   
|                                                                                   |  | 2005         |         | 2004        
|                                                                                   |  |              |         |             
|Net income                                                                         |  | $            | 36,157  |              |  | $ | 58,955  |  
|                                                                                   |  |              |         |              |  |   |         |  
|Other comprehensive (loss) income, before tax:                                     |  |              |         |              |  |   |         |  
|Unrealized net (losses) gains on securities arising during the
    period          |  |              | (16,084 | )            |  |   | 21,482  |  
|Reclassification adjustment for realized gains (losses) included
    in net income |  |              | 1,987   |              |  |   | (20,185 | )
|Foreign currency translation adjustments                                           |  |              | (16,380 | )            |  |   | (9,345  | )
|                                                                                   |  |              |         |              |  |   |         |  
|Other comprehensive loss, before tax                                               |  |              | (30,477 | )            |  |   | (8,048  | )
|                                                                                   |  |              |         |              |  |   |         |  
|Tax benefit (expense):                                                             |  |              |         |              |  |   |         |  
|Unrealized net gains (losses) on securities arising during the
    period          |  |              | 5,629   |              |  |   | (7,519  | )
|Reclassification adjustment for realized (losses) gains included
    in net income |  |              | (695    | )            |  |   | 7,065   |  
|Foreign currency translation adjustments                                           |  |              | 5,733   |              |  |   | 3,271   |  
|                                                                                   |  |              |         |              |  |   |         |  
|Total tax expense                                                                  |  |              | 10,667  |              |  |   | 2,817   |  
|                                                                                   |  |              |         |              |  |   |         |  
|Other comprehensive loss, net of tax                                               |  |              | (19,810 | )            |  |   | (5,231  | )
|                                                                                   |  |              |         |              |  |   |         |  
|Comprehensive income                                                               |  | $            | 16,347  |              |  | $ | 53,724  |  
|                                                                                   |  |              |         |              |  |   |         |  

7



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##### Table of Contents



ODYSSEY RE HOLDINGS CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                   
|-- | ------------------
|3. | Earnings Per Share



|                                                                        |         |              |            |              |  |   |            |      | 
|----------------------------------------------------------------------- | ------- | ------------ | ---------- | ------------ |  | - | ---------- | ---- | 
|                                                                        |         | Three Months |            | Three Months
|                                                                        |         | Ended        |            | Ended       
|                                                                        |         | March 31,    |            | March 31,   
|                                                                        |         | 2005         |            | 2004        
|                                                                        |         |              |            |             
|Net income available to stockholders  basic                            |         | $            | 36,157     |              |  | $ | 58,955     |     
|Effect of 4.375% Convertible Senior Debentures interest, net of
    tax |         |              | 782        |              |  |   | 782        |     
|                                                                        |         |              |            |              |  |   |            |     
|Income available to common stockholders  diluted                       |         | $            | 36,939     |              |  | $ | 59,737     |     
|                                                                        |         |              |            |              |  |   |            |     
|Weighted average common shares outstanding  basic                      |         |              | 64,236,299 |              |  |   | 64,418,098 |     
|                                                                        |         |              |            |              |  |   |            |     
|Effect of dilutive shares:                                              |         |              |            |              |  |   |            |     
|4.375% Convertible Senior Debentures                                    |         |              | 5,164,476  |              |  |   | 5,169,175  |     
|Stock options                                                           |         |              | 188,017    |              |  |   | 192,808    |     
|Incremental value of restricted stock                                   |         |              | 324,442    |              |  |   | 672,989    |     
|                                                                        |         |              |            |              |  |   |            |     
|Total effect of dilutive shares                                         |         |              | 5,676,935  |              |  |   | 6,034,972  |     
|                                                                        |         |              |            |              |  |   |            |     
|Weighted average common shares outstanding  diluted                    |         |              | 69,913,234 |              |  |   | 70,453,070 |     
|                                                                        |         |              |            |              |  |   |            |     
|Earnings per common share:                                              |         |              |            |              |  |   |            |     
|                                                                        | Basic   |              | $          | 0.56         |  |   | $          | 0.92 | 
|                                                                        |         |              |            |              |  |   |            |     
|                                                                        | Diluted |              | $          | 0.53         |  |   | $          | 0.85 | 
|                                                                        |         |              |            |              |  |   |            |     



|   |                         
|-- | ------------------------
|4. | Stock Based Compensation



8



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##### Table of Contents



ODYSSEY RE HOLDINGS CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                             |                                                                                                                                            |              |        |              |      |   |        |      |      | 
|---------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------ | ------------ | ------ | ------------ | ---- | - | ------ | ---- | ---- | 
|                             |                                                                                                                                            | Three Months |        | Three Months
|                             |                                                                                                                                            | Ended        |        | Ended       
|                             |                                                                                                                                            | March 31,    |        | March 31,   
|                             |                                                                                                                                            | 2005         |        | 2004        
|                             |                                                                                                                                            |              |        |             
|Net income, as reported      |                                                                                                                                            | $            | 36,157 |              |      | $ | 58,955 |     
|                             | Add: Stock-based employee compensation expense included in
    reported net income, net of related tax effects                             |              |        | 79           |      |   |        | 75   |     
|                             | Deduct: Total stock-based compensation expense determined under
    fair value based method for all awards, net of related tax
    effects |              |        | (172         | )    |   |        | (170 | )   
|                             |                                                                                                                                            |              |        |              |      |   |        |     
|Pro forma net income         |                                                                                                                                            | $            | 36,064 |              |      | $ | 58,860 |     
|                             |                                                                                                                                            |              |        |              |      |   |        |     
|Net income per common share: |                                                                                                                                            |              |        |              |      |   |        |     
|                             | As reported:                                                                                                                               |              |        |              |      |   |        |      |     
|                             |                                                                                                                                            | Basic        |        | $            | 0.56 |   |        | $    | 0.92 | 
|                             |                                                                                                                                            | Diluted      |        |              | 0.53 |   |        |      | 0.85 | 
|                             | Pro forma:                                                                                                                                 |              |        |              |      |   |        |      |     
|                             |                                                                                                                                            | Basic        |        | $            | 0.56 |   |        | $    | 0.91 | 
|                             |                                                                                                                                            | Diluted      |        |              | 0.53 |   |        |      | 0.85 | 



|   |                                           
|-- | ------------------------------------------
|5. | Unpaid Losses and Loss Adjustment Expenses



|                                                                               |              |              |           |              |  |   |           |         | 
|------------------------------------------------------------------------------ | ------------ | ------------ | --------- | ------------ |  | - | --------- | ------- | 
|                                                                               |              | Three Months |           | Three Months
|                                                                               |              | Ended        |           | Ended       
|                                                                               |              | March 31,    |           | March 31,   
|                                                                               |              | 2005         |           | 2004        
|                                                                               |              |              |           |             
|Gross unpaid losses and loss adjustment expenses, beginning of
    period      |              | $            | 4,228,021 |              |  | $ | 3,400,277 |        
|Less ceded unpaid losses and loss adjustment expenses, beginning
    of period |              |              | 1,092,082 |              |  |   | 1,058,623 |        
|                                                                               |              |              |           |              |  |   |           |        
|Net unpaid losses and loss adjustment expenses, beginning of
    period        |              |              | 3,135,939 |              |  |   | 2,341,654 |        
|                                                                               |              |              |           |              |  |   |           |        
|Losses and loss adjustment expenses incurred related to:                       |              |              |           |              |  |   |           |        
|                                                                               | Current year |              |           | 366,874      |  |   |           | 337,156 | 
|                                                                               | Prior years  |              |           | 47,205       |  |   |           | 26,401  | 
|                                                                               |              |              |           |              |  |   |           |        
|Total losses and loss adjustment expenses incurred                             |              |              | 414,079   |              |  |   | 363,557   |        
|                                                                               |              |              |           |              |  |   |           |        
|Paid losses and loss adjustment expenses related to:                           |              |              |           |              |  |   |           |        
|                                                                               | Current year |              |           | 58,541       |  |   |           | 26,939  | 
|                                                                               | Prior years  |              |           | 218,502      |  |   |           | 219,830 | 
|                                                                               |              |              |           |              |  |   |           |        
|Total paid losses and loss adjustment expenses                                 |              |              | 277,043   |              |  |   | 246,769   |        
|                                                                               |              |              |           |              |  |   |           |        
|Effects of exchange rate changes                                               |              |              | (809      | )            |  |   | 6,521     |        
|                                                                               |              |              |           |              |  |   |           |        
|Net unpaid losses and loss adjustment expenses, end of period                  |              |              | 3,272,166 |              |  |   | 2,464,963 |        
|Add ceded unpaid losses and loss adjustment expenses, end of
    period        |              |              | 1,061,159 |              |  |   | 1,070,448 |        
|                                                                               |              |              |           |              |  |   |           |        
|Gross unpaid losses and loss adjustment expenses, end of period                |              | $            | 4,333,325 |              |  | $ | 3,535,411 |        
|                                                                               |              |              |           |              |  |   |           |        

9



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##### Table of Contents



ODYSSEY RE HOLDINGS CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










|   |                                                                   
|-- | ------------------------------------------------------------------
|6. | Asbestos and Environmental Losses and Loss Adjustment
    Expenses







10



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##### Table of Contents



ODYSSEY RE HOLDINGS CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                               |  |              |         |              |  |   |         | 
|------------------------------------------------------------------------------ |  | ------------ | ------- | ------------ |  | - | ------- | 
|                                                                               |  | Three Months |         | Three Months
|                                                                               |  | Ended        |         | Ended       
|                                                                               |  | March 31,    |         | March 31,   
|                                                                               |  | 2005         |         | 2004        
|                                                                               |  |              |         |             
|ASBESTOS                                                                       |  |              |         |              |  |   |         | 
|Gross unpaid losses and loss adjustment expenses, beginning of
    period      |  | $            | 242,151 |              |  | $ | 215,662 | 
|Less ceded unpaid losses and loss adjustment expenses, beginning
    of period |  |              | 191,422 |              |  |   | 186,178 | 
|                                                                               |  |              |         |              |  |   |         | 
|Net unpaid losses and loss adjustment expenses, beginning of
    period        |  |              | 50,729  |              |  |   | 29,484  | 
|Net losses and loss adjustment expenses incurred                               |  |              |        |              |  |   |        | 
|Net paid losses and loss adjustment expenses                                   |  |              |        |              |  |   |        | 
|                                                                               |  |              |         |              |  |   |         | 
|Net unpaid losses and loss adjustment expenses, end of period                  |  |              | 50,729  |              |  |   | 29,484  | 
|Add ceded unpaid losses and loss adjustment expenses, end of
    period        |  |              | 183,799 |              |  |   | 195,812 | 
|                                                                               |  |              |         |              |  |   |         | 
|Gross unpaid losses and loss adjustment expenses, end of period                |  | $            | 234,528 |              |  | $ | 225,296 | 
|                                                                               |  |              |         |              |  |   |         | 
|ENVIRONMENTAL                                                                  |  |              |         |              |  |   |         | 
|Gross unpaid losses and loss adjustment expenses, beginning of
    period      |  | $            | 29,898  |              |  | $ | 33,372  | 
|Less ceded unpaid losses and loss adjustment expenses, beginning
    of period |  |              | 19,006  |              |  |   | 1,135   | 
|                                                                               |  |              |         |              |  |   |         | 
|Net unpaid losses and loss adjustment expenses, beginning of
    period        |  |              | 10,892  |              |  |   | 32,137  | 
|Net losses and loss adjustment expenses incurred                               |  |              |        |              |  |   |        | 
|Net paid losses and loss adjustment expenses                                   |  |              |        |              |  |   |        | 
|                                                                               |  |              |         |              |  |   |         | 
|Net unpaid losses and loss adjustment expenses, end of period                  |  |              | 10,892  |              |  |   | 32,137  | 
|Add ceded unpaid losses and loss adjustment expenses, end of
    period        |  |              | 22,187  |              |  |   | 2,193   | 
|                                                                               |  |              |         |              |  |   |         | 
|Gross unpaid losses and loss adjustment expenses, end of period                |  | $            | 33,079  |              |  | $ | 34,330  | 
|                                                                               |  |              |         |              |  |   |         | 





|   |                  
|-- | -----------------
|7. | Segment Reporting



11



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##### Table of Contents



ODYSSEY RE HOLDINGS CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                                                  |                                                       |          |         |          |   |        |         |           |   |       |        |       |   |   |         |        |   |   |         |        |  
|------------------------------------------------- | ----------------------------------------------------- | -------- | ------- | -------- | - | ------ | ------- | --------- | - | ----- | ------ | ----- | - | - | ------- | ------ | - | - | ------- | ------ | -
|                                                  |                                                       |          |         |          |   | London |         | U.S.      |   |      
|Three months ended March 31, 2005                 |                                                       | Americas |         | EuroAsia |   | Market |         | Insurance |   | Total
|                                                  |                                                       |          |         |          |   |        |         |           |   |      
|Gross premiums written                            |                                                       | $        | 306,757 |          |   | $      | 139,229 |           |   | $     | 97,343 |       |   | $ | 138,238 |        |   | $ | 681,567 |       
|Net premiums written                              |                                                       |          | 300,295 |          |   |        | 127,920 |           |   |       | 89,210 |       |   |   | 98,150  |        |   |   | 615,575 |       
|Net premiums earned                               |                                                       | $        | 276,967 |          |   | $      | 132,182 |           |   | $     | 90,675 |       |   | $ | 68,444  |        |   | $ | 568,268 |       
|                                                  |                                                       |          |         |          |   |        |         |           |   |       |        |       |   |   |         |        |   |   |         |       
|Losses and loss adjustment expenses               |                                                       |          | 207,951 |          |   |        | 101,854 |           |   |       | 61,848 |       |   |   | 42,426  |        |   |   | 414,079 |       
|Acquisition costs and other underwriting expenses |                                                       |          | 80,314  |          |   |        | 34,603  |           |   |       | 21,618 |       |   |   | 14,391  |        |   |   | 150,926 |       
|                                                  |                                                       |          |         |          |   |        |         |           |   |       |        |       |   |   |         |        |   |   |         |       
|Total underwriting deductions                     |                                                       |          | 288,265 |          |   |        | 136,457 |           |   |       | 83,466 |       |   |   | 56,817  |        |   |   | 565,005 |       
|                                                  |                                                       |          |         |          |   |        |         |           |   |       |        |       |   |   |         |        |   |   |         |       
|                                                  | Underwriting (loss) income                            |          | $       | (11,298  | ) |        | $       | (4,275    | ) |       | $      | 7,209 |   |   | $       | 11,627 |   |   |         | 3,263  |  
|                                                  |                                                       |          |         |          |   |        |         |           |   |       |        |       |   |   |         |        |   |   |         |       
|Net investment income                             |                                                       |          |         |          |   |        |         |           |   |       |        |       |   |   |         |        |   |   | 39,628  |       
|Net realized investment gains                     |                                                       |          |         |          |   |        |         |           |   |       |        |       |   |   |         |        |   |   | 45,174  |       
|Other expense, net                                |                                                       |          |         |          |   |        |         |           |   |       |        |       |   |   |         |        |   |   | (8,227  | )     
|Interest expense                                  |                                                       |          |         |          |   |        |         |           |   |       |        |       |   |   |         |        |   |   | (6,406  | )     
|                                                  |                                                       |          |         |          |   |        |         |           |   |       |        |       |   |   |         |        |   |   |         |       
|                                                  | Income before income taxes and
    minority interests |          |         |          |   |        |         |           |   |       |        |       |   |   |         |        |   |   | $       | 73,432 |  
|                                                  |                                                       |          |         |          |   |        |         |           |   |       |        |       |   |   |         |        |   |   |         |       
|Underwriting ratios:                              |                                                       |          |         |          |   |        |         |           |   |       |        |       |   |   |         |        |   |   |         |       
|                                                  | Losses and loss adjustment expenses                   |          |         | 75.1     | % |        |         | 77.0      | % |       |        | 68.2  | % |   |         | 62.0   | % |   |         | 72.9   | %
|                                                  | Acquisition costs and other underwriting expenses     |          |         | 29.0     |   |        |         | 26.2      |   |       |        | 23.8  |   |   |         | 21.0   |   |   |         | 26.5   |  
|                                                  |                                                       |          |         |          |   |        |         |           |   |       |        |       |   |   |         |        |   |   |         |       
|                                                  | Combined ratio                                        |          |         | 104.1    | % |        |         | 103.2     | % |       |        | 92.0  | % |   |         | 83.0   | % |   |         | 99.4   | %
|                                                  |                                                       |          |         |          |   |        |         |           |   |       |        |       |   |   |         |        |   |   |         |       

12



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##### Table of Contents



ODYSSEY RE HOLDINGS CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                  |                                                       |          |         |          |   |        |         |           |   |       |        |       |   |   |        |       |   |   |         |        |  
|------------------------------------------------- | ----------------------------------------------------- | -------- | ------- | -------- | - | ------ | ------- | --------- | - | ----- | ------ | ----- | - | - | ------ | ----- | - | - | ------- | ------ | -
|                                                  |                                                       |          |         |          |   | London |         | U.S.      |   |      
|Three months ended March 31, 2004                 |                                                       | Americas |         | EuroAsia |   | Market |         | Insurance |   | Total
|                                                  |                                                       |          |         |          |   |        |         |           |   |      
|Gross premiums written                            |                                                       | $        | 329,000 |          |   | $      | 125,813 |           |   | $     | 84,705 |       |   | $ | 89,965 |       |   | $ | 629,483 |       
|Net premiums written                              |                                                       |          | 314,197 |          |   |        | 121,749 |           |   |       | 69,517 |       |   |   | 47,776 |       |   |   | 553,239 |       
|Net premiums earned                               |                                                       | $        | 297,224 |          |   | $      | 115,625 |           |   | $     | 96,663 |       |   | $ | 36,749 |       |   | $ | 546,261 |       
|                                                  |                                                       |          |         |          |   |        |         |           |   |       |        |       |   |   |        |       |   |   |         |       
|Losses and loss adjustment expenses               |                                                       |          | 192,691 |          |   |        | 76,095  |           |   |       | 67,571 |       |   |   | 27,200 |       |   |   | 363,557 |       
|Acquisition costs and other underwriting expenses |                                                       |          | 97,629  |          |   |        | 28,703  |           |   |       | 24,763 |       |   |   | 4,295  |       |   |   | 155,390 |       
|                                                  |                                                       |          |         |          |   |        |         |           |   |       |        |       |   |   |        |       |   |   |         |       
|Total underwriting deductions                     |                                                       |          | 290,320 |          |   |        | 104,798 |           |   |       | 92,334 |       |   |   | 31,495 |       |   |   | 518,947 |       
|                                                  |                                                       |          |         |          |   |        |         |           |   |       |        |       |   |   |        |       |   |   |         |       
|                                                  | Underwriting income                                   |          | $       | 6,904    |   |        | $       | 10,827    |   |       | $      | 4,329 |   |   | $      | 5,254 |   |   |         | 27,314 |  
|                                                  |                                                       |          |         |          |   |        |         |           |   |       |        |       |   |   |        |       |   |   |         |       
|Net investment income                             |                                                       |          |         |          |   |        |         |           |   |       |        |       |   |   |        |       |   |   | 35,496  |       
|Net realized investment gains                     |                                                       |          |         |          |   |        |         |           |   |       |        |       |   |   |        |       |   |   | 34,839  |       
|Other expense, net                                |                                                       |          |         |          |   |        |         |           |   |       |        |       |   |   |        |       |   |   | (2,360  | )     
|Interest expense                                  |                                                       |          |         |          |   |        |         |           |   |       |        |       |   |   |        |       |   |   | (6,394  | )     
|                                                  |                                                       |          |         |          |   |        |         |           |   |       |        |       |   |   |        |       |   |   |         |       
|                                                  | Income before income taxes and
    minority interests |          |         |          |   |        |         |           |   |       |        |       |   |   |        |       |   |   | $       | 88,895 |  
|                                                  |                                                       |          |         |          |   |        |         |           |   |       |        |       |   |   |        |       |   |   |         |       
|Underwriting ratios:                              |                                                       |          |         |          |   |        |         |           |   |       |        |       |   |   |        |       |   |   |         |       
|                                                  | Losses and loss adjustment expenses                   |          |         | 64.8     | % |        |         | 65.8      | % |       |        | 69.9  | % |   |        | 74.0  | % |   |         | 66.5   | %
|                                                  | Acquisition costs and other underwriting expenses     |          |         | 32.9     |   |        |         | 24.8      |   |       |        | 25.6  |   |   |        | 11.7  |   |   |         | 28.5   |  
|                                                  |                                                       |          |         |          |   |        |         |           |   |       |        |       |   |   |        |       |   |   |         |       
|                                                  | Combined ratio                                        |          |         | 97.7     | % |        |         | 90.6      | % |       |        | 95.5  | % |   |        | 85.7  | % |   |         | 95.0   | %
|                                                  |                                                       |          |         |          |   |        |         |           |   |       |        |       |   |   |        |       |   |   |         |       





|   |                 
|-- | ----------------
|8. | Debt Obligations



|                                     |  |           |         |              |  |   |         | 
|------------------------------------ |  | --------- | ------- | ------------ |  | - | ------- | 
|                                     |  | As of     |         | As of       
|                                     |  | March 31, |         | December 31,
|                                     |  | 2005      |         | 2004        
|                                     |  |           |         |             
|7.65% Senior Notes                   |  | $         | 224,627 |              |  | $ | 224,616 | 
|4.375% Convertible Senior Debentures |  |           | 109,900 |              |  |   | 109,900 | 
|7.49% Senior Notes                   |  |           | 41,325  |              |  |   | 41,524  | 
|                                     |  |           |         |              |  |   |         | 
|Total debt obligations               |  | $         | 375,852 |              |  | $ | 376,040 | 
|                                     |  |           |         |              |  |   |         | 





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ODYSSEY RE HOLDINGS CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|      |  |        |         | 
|----- |  | ------ | ------- | 
|Years |  | Amount
|      |  |       
|2006  |  | $      | 40,000  | 
|2013  |  |        | 225,000 | 
|2022  |  |        | 109,900 | 
|      |  |        |         | 
|Total |  | $      | 374,900 | 
|      |  |        |         | 





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ODYSSEY RE HOLDINGS CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


9.     Employee Benefits






|                              |                   |              |      |              |  |   |      |     | 
|----------------------------- | ----------------- | ------------ | ---- | ------------ |  | - | ---- | --- | 
|                              |                   | Three Months |      | Three Months
|                              |                   | Ended        |      | Ended       
|                              |                   | March 31,    |      | March 31,   
|                              |                   | 2005         |      | 2004        
|                              |                   |              |      |             
|Qualified Plan:               |                   |              |      |              |  |   |      |    
|Service cost                  |                   | $            | 836  |              |  | $ | 553  |    
|Interest cost                 |                   |              | 590  |              |  |   | 526  |    
|Return on assets              |                   |              | (572 | )            |  |   | (411 | )  
|Recognized net actuarial loss |                   |              | 12   |              |  |   |     |    
|Net amortization and deferral |                   |              | 14   |              |  |   | 2    |    
|                              |                   |              |      |              |  |   |      |    
|                              | Net periodic cost |              | $    | 880          |  |   | $    | 670 | 
|                              |                   |              |      |              |  |   |      |    
|Excess Plans:                 |                   |              |      |              |  |   |      |    
|Service cost                  |                   | $            | 172  |              |  | $ | 136  |    
|Interest cost                 |                   |              | 200  |              |  |   | 174  |    
|Recognized net actuarial loss |                   |              | 83   |              |  |   | 44   |    
|Recognized prior service cost |                   |              | (9   | )            |  |   | (9   | )  
|Other                         |                   |              | 17   |              |  |   | 17   |    
|                              |                   |              |      |              |  |   |      |    
|                              | Net periodic cost |              | $    | 463          |  |   | $    | 362 | 
|                              |                   |              |      |              |  |   |      |    
|Postretirement Plan:          |                   |              |      |              |  |   |      |    
|Service cost                  |                   | $            | 282  |              |  | $ | 300  |    
|Interest cost                 |                   |              | 121  |              |  |   | 137  |    
|Other                         |                   |              | (26  | )            |  |   | 13   |    
|                              |                   |              |      |              |  |   |      |    
|                              | Net periodic cost |              | $    | 377          |  |   | $    | 450 | 
|                              |                   |              |      |              |  |   |      |    



10.     Contingencies




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ODYSSEY RE HOLDINGS CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












16



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ODYSSEY RE HOLDINGS CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










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ODYSSEY RE HOLDINGS CORP.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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|                 |                                                                                          
|---------------- | -----------------------------------------------------------------------------------------
|PART 1  Item 2. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations

Overview
















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|              |  |                          |       |          |  |             |       |           |  |          |       |             |  |   |       |  |  |   |       |  |  |   |       |  
|------------- |  | ------------------------ | ----- | -------- |  | ----------- | ----- | --------- |  | -------- | ----- | ----------- |  | - | ----- |  |  | - | ----- |  |  | - | ----- | -
|              |  | 2005                     |       | 2004    
|              |  |                          |       |         
|              |  | As of                    |       | As of    |  |             |       | As of     |  | As of    |       |            
|              |  | March 31,                |       | Dec. 31, |  | Change Year |       | March 31, |  | Dec. 31, |       | Change Year
|Division      |  | 2005                     |       | 2004     |  | to Date     |       | 2004      |  | 2003     |       | to Date    
|              |  |                          |       |          |  |             |       |           |  |          |       |            
|              |  | Gross Premiums Written  
|Americas      |  | $                        | 280.2 |          |  | $           | 269.0 |           |  | $        | 11.2  |             |  | $ | 259.4 |  |  | $ | 270.7 |  |  | $ | (11.3 | )
|EuroAsia      |  |                          | 121.9 |          |  |             | 115.6 |           |  |          | 6.3   |             |  |   | 84.7  |  |  |   | 76.0  |  |  |   | 8.7   |  
|London Market |  |                          | 57.5  |          |  |             | 61.2  |           |  |          | (3.7  | )           |  |   | 47.8  |  |  |   | 55.6  |  |  |   | (7.8  | )
|              |  |                          |       |          |  |             |       |           |  |          |       |             |  |   |       |  |  |   |       |  |  |   |       |  
|Total         |  | $                        | 459.6 |          |  | $           | 445.8 |           |  | $        | 13.8  |             |  | $ | 391.9 |  |  | $ | 402.3 |  |  | $ | (10.4 | )
|              |  |                          |       |          |  |             |       |           |  |          |       |             |  |   |       |  |  |   |       |  |  |   |       |  
|             
|              |  | Acquisition Costs       
|Americas      |  | $                        | 65.6  |          |  | $           | 88.6  |           |  | $        | (23.0 | )           |  | $ | 69.7  |  |  | $ | 96.3  |  |  | $ | (26.6 | )
|EuroAsia      |  |                          | 41.2  |          |  |             | 33.1  |           |  |          | 8.1   |             |  |   | 29.9  |  |  |   | 23.8  |  |  |   | 6.1   |  
|London Market |  |                          | 11.1  |          |  |             | 10.7  |           |  |          | 0.4   |             |  |   | 8.4   |  |  |   | 12.9  |  |  |   | (4.5  | )
|              |  |                          |       |          |  |             |       |           |  |          |       |             |  |   |       |  |  |   |       |  |  |   |       |  
|Total         |  | $                        | 117.9 |          |  | $           | 132.4 |           |  | $        | (14.5 | )           |  | $ | 108.0 |  |  | $ | 133.0 |  |  | $ | (25.0 | )
|              |  |                          |       |          |  |             |       |           |  |          |       |             |  |   |       |  |  |   |       |  |  |   |       |  
|             
|              |  | Premiums Receivable     
|Americas      |  | $                        | 213.8 |          |  | $           | 186.8 |           |  | $        | 27.0  |             |  | $ | 183.4 |  |  | $ | 194.4 |  |  | $ | (11.0 | )
|EuroAsia      |  |                          | 80.7  |          |  |             | 79.6  |           |  |          | 1.1   |             |  |   | 55.9  |  |  |   | 52.4  |  |  |   | 3.5   |  
|London Market |  |                          | 52.8  |          |  |             | 36.8  |           |  |          | 16.0  |             |  |   | 44.0  |  |  |   | 45.6  |  |  |   | (1.6  | )
|              |  |                          |       |          |  |             |       |           |  |          |       |             |  |   |       |  |  |   |       |  |  |   |       |  
|Total         |  | $                        | 347.3 |          |  | $           | 303.2 |           |  | $        | 44.1  |             |  | $ | 283.3 |  |  | $ | 292.4 |  |  | $ | (9.1  | )
|              |  |                          |       |          |  |             |       |           |  |          |       |             |  |   |       |  |  |   |       |  |  |   |       |  
|             
|              |  | Unearned Premium Reserve
|Americas      |  | $                        | 190.6 |          |  | $           | 162.7 |           |  | $        | 27.9  |             |  | $ | 173.1 |  |  | $ | 167.6 |  |  | $ | 5.5   |  
|EuroAsia      |  |                          | 79.9  |          |  |             | 97.3  |           |  |          | (17.4 | )           |  |   | 51.2  |  |  |   | 55.7  |  |  |   | (4.5  | )
|London Market |  |                          | 13.5  |          |  |             | 13.6  |           |  |          | (0.1  | )           |  |   | 8.2   |  |  |   | 18.9  |  |  |   | (10.7 | )
|              |  |                          |       |          |  |             |       |           |  |          |       |             |  |   |       |  |  |   |       |  |  |   |       |  
|Total         |  | $                        | 284.0 |          |  | $           | 273.6 |           |  | $        | 10.4  |             |  | $ | 232.5 |  |  | $ | 242.2 |  |  | $ | (9.7  | )
|              |  |                          |       |          |  |             |       |           |  |          |       |             |  |   |       |  |  |   |       |  |  |   |       |  





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|                                                                        |  |          |         |          |  |        |       |                |  |       |       |  |  |   |       |  |  |   |         | 
|----------------------------------------------------------------------- |  | -------- | ------- | -------- |  | ------ | ----- | -------------- |  | ----- | ----- |  |  | - | ----- |  |  | - | ------- | 
|                                                                        |  | Americas |         | EuroAsia |  | London |       | U.S. Insurance |  | Total
|                                                                        |  |          |         |          |  |        |       |                |  |      
|Gross case reserves                                                     |  | $        | 1,684.2 |          |  | $      | 227.9 |                |  | $     | 260.1 |  |  | $ | 97.4  |  |  | $ | 2,269.6 | 
|Gross IBNR                                                              |  |          | 1,026.8 |          |  |        | 211.2 |                |  |       | 536.7 |  |  |   | 289.0 |  |  |   | 2,063.7 | 
|                                                                        |  |          |         |          |  |        |       |                |  |       |       |  |  |   |       |  |  |   |         | 
|Total gross reserves for unpaid
    losses and loss adjustment expenses |  |          | 2,711.0 |          |  |        | 439.1 |                |  |       | 796.8 |  |  |   | 386.4 |  |  |   | 4,333.3 | 
|                                                                        |  |          |         |          |  |        |       |                |  |       |       |  |  |   |       |  |  |   |         | 
|Ceded case reserves                                                     |  |          | 533.5   |          |  |        | 12.2  |                |  |       | 65.8  |  |  |   | 43.5  |  |  |   | 655.0   | 
|Ceded IBNR                                                              |  |          | 181.3   |          |  |        | 3.0   |                |  |       | 110.6 |  |  |   | 111.3 |  |  |   | 406.2   | 
|                                                                        |  |          |         |          |  |        |       |                |  |       |       |  |  |   |       |  |  |   |         | 
|Total ceded reserves for unpaid
    losses and loss adjustment expenses |  |          | 714.8   |          |  |        | 15.2  |                |  |       | 176.4 |  |  |   | 154.8 |  |  |   | 1,061.2 | 
|                                                                        |  |          |         |          |  |        |       |                |  |       |       |  |  |   |       |  |  |   |         | 
|Net case reserves                                                       |  |          | 1,150.7 |          |  |        | 215.7 |                |  |       | 194.3 |  |  |   | 53.9  |  |  |   | 1,614.6 | 
|Net IBNR                                                                |  |          | 845.5   |          |  |        | 208.2 |                |  |       | 426.1 |  |  |   | 177.7 |  |  |   | 1,657.5 | 
|                                                                        |  |          |         |          |  |        |       |                |  |       |       |  |  |   |       |  |  |   |         | 
|Total net reserves for unpaid
    losses and loss adjustment expenses   |  | $        | 1,996.2 |          |  | $      | 423.9 |                |  | $     | 620.4 |  |  | $ | 231.6 |  |  | $ | 3,272.1 | 
|                                                                        |  |          |         |          |  |        |       |                |  |       |       |  |  |   |       |  |  |   |         | 





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Results of Operations




| |                                                                                    
| | -----------------------------------------------------------------------------------
| | Three Months Ended March 31, 2005 Compared to Three
    Months Ended March 31, 2004

Gross Premiums Written.












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Ceded Premiums Written.


Net Premiums Written.


Net Premiums Earned.


Net Investment Income.


Net Realized Investment Gains.


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Losses and Loss Adjustment Expenses.








25



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Acquisition Costs.


Other Underwriting Expenses.


Other Expenses, Net.


Interest Expense.


Federal and Foreign Income Tax Provision.


Minority interest.


Liquidity and Capital Resources




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Financial Strength and Credit Ratings






Accounting Pronouncements








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Off-Balance Sheet Arrangements









|                 |                                                               
|---------------- | --------------------------------------------------------------
|PART I  Item 3. | Quantitative and Qualitative Disclosures About Market
    Risk

Market Sensitive Instruments




Interest Rate Risk




|                                 |  |                       |         |                         |  |              |        |           |  |              |       |              |  |   |         |  |  |   |        |   |  |  |       |   
|-------------------------------- |  | --------------------- | ------- | ----------------------- |  | ------------ | ------ | --------- |  | ------------ | ----- | ------------ |  | - | ------- |  |  | - | ------ | - |  |  | ----- | --
|                                 |  | As of March 31, 2005  |         | As of December 31, 2004
|                                 |  |                       |         |                        
|                                 |  | Fair Value            |         |                         |  | Fair Value   |        |          
|                                 |  | of Fixed              |         |                         |  | of Fixed     |        |          
|                                 |  | Income                |         | Hypothetical            |  | Hypothetical |        | Income    |  | Hypothetical |       | Hypothetical
|Percent Change in Interest Rates |  | Portfolio             |         | $ Change                |  | % Change     |        | Portfolio |  | $ Change     |       | % Change    
|                                 |  |                       |         |                         |  |              |        |           |  |              |       |             
|                                 |  | (Dollars in millions)
|200 basis point rise             |  | $                     | 2,136.2 |                         |  | $            | (459.1 | )         |  |              | (17.7 | )%           |  | $ | 2,073.7 |  |  | $ | (431.9 | ) |  |  | (17.2 | )%
|100 basis point rise             |  |                       | 2,337.9 |                         |  |              | (257.4 | )         |  |              | (9.9  | )            |  |   | 2,271.5 |  |  |   | (234.1 | ) |  |  | (9.3  | ) 
|Base Scenario                    |  |                       | 2,595.3 |                         |  |              |       |           |  |              |      |              |  |   | 2,505.6 |  |  |   |       |   |  |  |      |   
|100 basis point decline          |  |                       | 2,865.6 |                         |  |              | 270.3  |           |  |              | 10.4  |              |  |   | 2,795.1 |  |  |   | 289.5  |   |  |  | 11.6  |   
|200 basis point decline          |  |                       | 3,216.2 |                         |  |              | 620.9  |           |  |              | 23.9  |              |  |   | 3,110.4 |  |  |   | 604.8  |   |  |  | 24.1  |   



29



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| |                                                                       
| | ----------------------------------------------------------------------
| | Disclosure about Limitations of Interest Rate Sensitivity
    Analysis







| |            
| | -----------
| | Credit Risk







| |                  
| | -----------------
| | Equity Price Risk







30



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| |                      
| | ---------------------
| | Foreign Currency Risk





| |                           
| | --------------------------
| | Investment Impairment Risk





31



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##### Table of Contents





|                                          |                                                   |                             |         |                        |         |            |         |            |         |              |    |            |    |            |           |              |           |            |          |         |         |   |    |    |    |   |           |           |           |   |          |         |          |   |    |    |    | 
|----------------------------------------- | ------------------------------------------------- | --------------------------- | ------- | ---------------------- | ------- | ---------- | ------- | ---------- | ------- | ------------ | -- | ---------- | -- | ---------- | --------- | ------------ | --------- | ---------- | -------- | ------- | ------- | - | -- | -- | -- | - | --------- | --------- | --------- | - | -------- | ------- | -------- | - | -- | -- | -- | 
|                                          |                                                   | Duration of Unrealized Loss |         |                        |         |            |         |           
|                                          |                                                   |                             |         |                        |         |            |         |           
|                                          |                                                   | Less than 12 Months         |         | Greater than 12 Months |         | Total     
|                                          |                                                   |                             |         |                        |         |           
|                                          |                                                   |                             |         | Gross                  |         | Number     |         |            |         | Gross        |    | Number     |    |            |           | Gross        |           | Number    
|                                          |                                                   |                             |         | Unrealized             |         | of         |         |            |         | Unrealized   |    | of         |    |            |           | Unrealized   |           | of        
|                                          |                                                   | Fair Value                  |         | Depreciation           |         | Securities |         | Fair Value |         | Depreciation |    | Securities |    | Fair Value |           | Depreciation |           | Securities
|                                          |                                                   |                             |         |                        |         |            |         |            |         |              |    |            |    |            |           |              |           |           
|Fixed income securities investment grade: |                                                   |                             |         |                        |         |            |         |            |         |              |    |            |    |            |           |              |           |            |          |         |         |   |    |    |    |   |           |           |           |   |          |         |          |   |    |   
|                                          | United States government agencies and authorities |                             | $       | 317,435                |         |            | $       | (8,885     | )       |              |    | 12         |    |            | $         | 1,079,179    |           |            | $        | (51,510 | )       |   |    | 12 |    |   | $         | 1,396,614 |           |   | $        | (60,395 | )        |   |    | 24 |   
|                                          | Foreign government                                |                             |         | 184,611                |         |            |         | (1,189     | )       |              |    | 3          |    |            |           |             |           |            |          |        |         |   |    |   |    |   |           | 184,611   |           |   |          | (1,189  | )        |   |    | 3  |   
|                                          | States, municipalities and political subdivisions |                             |         | 71,762                 |         |            |         | (585       | )       |              |    | 13         |    |            |           | 33,968       |           |            |          | (1,276  | )       |   |    | 6  |    |   |           | 105,730   |           |   |          | (1,861  | )        |   |    | 19 |   
|                                          | All other corporate                               |                             |         | 488                    |         |            |         | (10        | )       |              |    | 1          |    |            |           | 164,810      |           |            |          | (11,854 | )       |   |    | 1  |    |   |           | 165,298   |           |   |          | (11,864 | )        |   |    | 2  |   
|                                          |                                                   |                             |         |                        |         |            |         |            |         |              |    |            |    |            |           |              |           |            |          |         |         |   |    |    |    |   |           |           |           |   |          |         |          |   |    |   
|                                          |                                                   | Total investment grade      |         |                        | 574,296 |            |         |            | (10,669 | )            |    |            | 29 |            |           |              | 1,277,957 |            |          |         | (64,640 | ) |    |    | 19 |   |           |           | 1,852,253 |   |          |         | (75,309  | ) |    |    | 48 | 
|                                          |                                                   |                             |         |                        |         |            |         |            |         |              |    |            |    |            |           |              |           |            |          |         |         |   |    |    |    |   |           |           |           |   |          |         |          |   |    |   
|Fixed income securities                   |                                                   |                             |         |                        |         |            |         |            |         |              |    |            |    |            |           |              |           |            |          |         |         |   |    |    |    |   |           |           |           |   |          |         |          |   |    |   
|                                          | Non-investment grade:                             |                             |         |                        |         |            |         |            |         |              |    |            |    |            |           |              |           |            |          |         |         |   |    |    |    |   |           |           |           |   |          |         |          |   |    |    |   
|                                          | All other corporate                               |                             |         | 24,227                 |         |            |         | (5,483     | )       |              |    | 5          |    |            |           | 93,304       |           |            |          | (29,755 | )       |   |    | 6  |    |   |           | 117,531   |           |   |          | (35,238 | )        |   |    | 11 |   
|                                          |                                                   |                             |         |                        |         |            |         |            |         |              |    |            |    |            |           |              |           |            |          |         |         |   |    |    |    |   |           |           |           |   |          |         |          |   |    |   
|                                          |                                                   | Total non-investment grade  |         |                        | 24,227  |            |         |            | (5,483  | )            |    |            | 5  |            |           |              | 93,304    |            |          |         | (29,755 | ) |    |    | 6  |   |           |           | 117,531   |   |          |         | (35,238  | ) |    |    | 11 | 
|                                          |                                                   |                             |         |                        |         |            |         |            |         |              |    |            |    |            |           |              |           |            |          |         |         |   |    |    |    |   |           |           |           |   |          |         |          |   |    |   
|                                          |                                                   | Total fixed income          |         |                        | 598,523 |            |         |            | (16,152 | )            |    |            | 34 |            |           |              | 1,371,261 |            |          |         | (94,395 | ) |    |    | 25 |   |           |           | 1,969,784 |   |          |         | (110,547 | ) |    |    | 59 | 
|                                          |                                                   |                             |         |                        |         |            |         |            |         |              |    |            |    |            |           |              |           |            |          |         |         |   |    |    |    |   |           |           |           |   |          |         |          |   |    |   
|Common stocks, at fair value              |                                                   |                             | 96,083  |                        |         |            | (1,854  | )          |         |              | 5  |            |    |            | 208,014   |              |           |            | (26,162  | )       |         |   | 2  |    |    |   | 304,097   |           |           |   | (28,016  | )       |          |   | 7  |   
|                                          |                                                   |                             |         |                        |         |            |         |            |         |              |    |            |    |            |           |              |           |            |          |         |         |   |    |    |    |   |           |           |           |   |          |         |          |   |    |   
|Totals                                    |                                                   | $                           | 694,606 |                        |         | $          | (18,006 | )          |         |              | 39 |            |    | $          | 1,579,275 |              |           | $          | (120,557 | )       |         |   | 27 |    |    | $ | 2,273,881 |           |           | $ | (138,563 | )       |          |   | 66 |   
|                                          |                                                   |                             |         |                        |         |            |         |            |         |              |    |            |    |            |           |              |           |            |          |         |         |   |    |    |    |   |           |           |           |   |          |         |          |   |    |   










|                 |                        
|---------------- | -----------------------
|PART I  Item 4. | Controls and Procedures

Evaluation of disclosure controls and procedures.


Changes in internal controls over financial
reporting.




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##### Table of Contents






PART II  OTHER INFORMATION





PART II 
Item 1.     Legal
Proceedings









|                  |                                                                
|----------------- | ---------------------------------------------------------------
|PART II  Item 2. | Unregistered Sales of Equity Securities and Use of
    Proceeds



| |                                      
| | -------------------------------------
| | Issuer Purchases of Equity Securities



|                               |  |              |        |               |  |                  |       |                 |  |  |        |  |  |  |         | 
|------------------------------ |  | ------------ | ------ | ------------- |  | ---------------- | ----- | --------------- |  |  | ------ |  |  |  | ------- | 
|                               |  |              |        |               |  | Total Number     |       |                
|                               |  |              |        |               |  | of Shares        |       | Maximum Number 
|                               |  |              |        |               |  | Purchased as     |       | of Shares that 
|                               |  |              |        |               |  | Part of Publicly |       | may yet be     
|                               |  | Total Number |        | Average Price |  | Announced        |       | Purchased Under
|                               |  | of Shares    |        | Paid Per      |  | Plans or         |       | the Plans or   
|Period                         |  | Purchased    |        | Share         |  | Programs(1)      |       | Programs       
|                               |  |              |        |               |  |                  |       |                
|January 1  January 31, 2005   |  |              |       |               |  |                  |      |                 |  |  |       |  |  |  | 587,000 | 
|February 1  February 28, 2005 |  |              | 5,000  |               |  | $                | 24.65 |                 |  |  | 5,000  |  |  |  | 582,000 | 
|March 1  March 31, 2005       |  |              | 17,400 |               |  | $                | 24.93 |                 |  |  | 17,400 |  |  |  | 564,600 | 
|                               |  |              |        |               |  |                  |       |                 |  |  |        |  |  |  |         | 
|Total                          |  |              | 22,400 |               |  | $                | 24.86 |                 |  |  | 22,400 |  |  |  |         | 
|                               |  |              |        |               |  |                  |       |                 |  |  |        |  |  |  |         | 






|    |                                                                                                                                                                                                                                                                                                                                                                                         
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The Odyssey Re Holdings Corp. stock repurchase program was
    publicly announced on December 19, 2003, was effective as
    of such date and expires two years following such date. Under
    the announced repurchase program, the Company may repurchase up
    to 1,000,000 shares of its common stock from time to time, in
    the open market, through block trades or otherwise.






|                  |                                
|----------------- | -------------------------------
|PART II  Item 3. | Defaults Upon Senior Securities








|                  |                                                    
|----------------- | ---------------------------------------------------
|PART II  Item 4. | Submission of Matters to a Vote of Security Holders








|                  |                                                   
|----------------- | --------------------------------------------------
|PART II  Item 5. | Other Information  Forward Looking
    Statements





| |   |                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------
| |  | a reduction in net income if our loss reserves are insufficient;                                                          
|
| |  | the occurrence of catastrophic events with a frequency or
    severity exceeding our estimates;                           
|
| |  | the lowering or loss of one of our financial or claims-paying
    ratings, including those of our subsidiaries;           
|
| |  | an inability to realize our investment objectives;                                                                        
|
| |  | a decrease in the level of demand for our reinsurance or
    insurance business, or increased competition in the industry;

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##### Table of Contents





| |   |                                                                                                                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | emerging claim and coverage issues, which could expand our
    obligations beyond the amount we intend to underwrite;                                                                                                         
|
| |  | a change in the requirements of one or more of our current or
    potential customers relating to counterparty financial strength,
    claims-paying ratings, or collateral requirements;                                     
|
| |  | actions of our competitors, including industry consolidation,
    and increased competition from alternative sources of risk
    management products, such as the capital markets;                                            
|
| |  | the risk that ongoing regulatory developments will disrupt our
    business or mandate changes in industry practices in a fashion
    that increases our costs or requires us to alter aspects of the
    way we do business; 
|
| |  | risks relating to our controlling stockholders ability to
    determine the outcome of our corporate actions requiring board
    or stockholder approval;                                                                    
|
| |  | changes in economic conditions, including interest rate,
    currency, equity and credit conditions which could affect our
    investment portfolio;                                                                          
|
| |  | risks related to covenants in our debt agreements;                                                                                                                                                                            
|
| |  | our inability to access our subsidiaries cash;                                                                                                                                                                               
|
| |  | loss of services of any of our key employees;                                                                                                                                                                                 
|
| |  | risks related to our use of reinsurance brokers;                                                                                                                                                                              
|
| |  | risks related to our computer and data processing systems;                                                                                                                                                                    
|
| |  | failure of our reinsurers to honor their obligations;                                                                                                                                                                         
|
| |  | the passage of federal or state legislation subjecting our
    business to additional supervision or regulation, including
    additional tax regulation, in the United States or other
    jurisdictions in which we operate;
|
| |  | risks associated with the growth of our specialty insurance
    business and the development of our infrastructure to support
    this growth;                                                                                
|
| |  | operational and financial risks relating to our utilization of
    program managers, third-party administrators, and other vendors
    to support our specialty insurance operations; and                                     
|
| |  | acts of war, terrorism or political unrest.                                                                                                                                                                                   



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##### Table of Contents








|                  |         
|----------------- | --------
|PART II  Item 6. | Exhibits

| |        |  |  |                                                                                                                                                                                                                                             
| | ------ |  |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | *10.37 |  |  | Separation Agreement between Charles D. Troiano and Odyssey
    Re Holdings Corp.                                                                                                                                                           
| | *31.1  |  |  | Certification of President and Chief Executive Officer pursuant
    to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                        
| | *31.2  |  |  | Certification of Executive Vice President and Chief Financial
    Officer pursuant to Section 302 of the Sarbanes-Oxley Act
    of 2002                                                                                                     
| | *32.1  |  |  | Certification of President and Chief Executive Officer pursuant
    to 18 U.S.C. Section 1350, as adopted pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002                                                                     
| | *32.2  |  |  | Certification of Executive Vice President and Chief Financial
    Officer pursuant to 18 U.S.C. Section 1350, as adopted
    pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                      
| | 99.1   |  |  | Risk Factors (incorporated into Part II of this Form 10-Q
    by reference to the section entitled Risk Factors in
    the registrants Annual Report on Form 10-K filed with
    the Securities and Exchange Commission on March 7, 2005)






|  |                
|- | ---------------
|* | Filed herewith.

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SIGNATURES




|                  |  |                                                                                                    
|----------------- |  | ---------------------------------------------------------------------------------------------------
|                  |  | Odyssey Re Holdings Corp.                                                                          
|                 
|                 
|                 
|Date: May 9, 2005 |  | By /s/ Andrew A.
    BarnardAndrew
    A. BarnardPresident and Chief Executive Officer             
|                 
|                 
|                 
|Date: May 9, 2005 |  | By /s/ Robert GiammarcoRobert
    GiammarcoExecutive Vice President and
    Chief Financial Officer

36