##### 



Contact:
    
    Robert Giammarco, Chief Financial Officer(212) 978-2803
  Odyssey Re Holdings Corp. Reports Second Quarter 2005 Results




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##### 



(1)
    
    Operating income after taxes is a non-GAAP financial measure often used to evaluate
performance. Operating income after taxes is equal to net income, excluding net realized
capital gains as reported, net realized capital gains of an equity investee included in net
investment income, and the loss on an early extinguishment of debt. Although realized
capital gains or losses are an integral part of the Companys operations, the level
recognized during any particular period can vary significantly. Management believes that
providing operating income after taxes to investors is a useful supplement to GAAP
information. A reconciliation of net income to operating income after taxes and related
amounts per common share is as follows (in millions, except per share amounts):
 Three months ended, (unaudited)June 30, 2005
    
    
    June 30, 2004Per Diluted
    
    
    
    
    
    
    Per Diluted$
    
    
    Share
    
    
    $
    
    
    ShareNet income
    
    $
    43.1
    
    
    $
    0.63
    
    
    $
    59.1
    
    
    $
    0.85Net realized capital gains, after taxes
    
    
    (5.1
    )
    
    
    (0.07
    )
    
    
    (21.1
    )
    
    
    (0.30
    )Net realized capital gains of an equity investee
included in investment income, after taxes
    
    
    (0.9
    )
    
    
    (0.02
    )
    
    
    
    
    
    
    Loss on early extinguishment of debt
    
    
    2.1
    
    
    
    0.03
    
    
    
    
    
    
    
    Operating income, after taxes
    
    $
    39.2
    
    
    $
    0.57
    
    
    $
    38.0
    
    
    $
    0.55
 Six months ended, (unaudited)June 30, 2005
    
    
    June 30, 2004Per Diluted
    
    
    
    
    
    
    Per Diluted$
    
    
    Share
    
    
    $
    
    
    ShareNet income
    
    $
    79.3
    
    
    $
    1.16
    
    
    $
    118.0
    
    
    $
    1.70Net realized capital gains, after taxes
    
    
    (5.2
    )
    
    
    (0.07
    )
    
    
    (43.7
    )
    
    
    (0.62
    )Net realized capital gains of an equity investee
included in investment income, after taxes
    
    
    (17.3
    )
    
    
    (0.26
    )
    
    
    (0.2
    )
    
    
    Loss on early extinguishment of debt
    
    
    2.1
    
    
    
    0.03
    
    
    
    
    
    
    
    Operating income, after taxes
    
    $
    58.9
    
    
    $
    0.86
    
    
    $
    74.1
    
    
    $
    1.08




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##### 








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##### 



ODYSSEY RE HOLDINGS CORP.
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2005 (UNAUDITED) AND DECEMBER 31, 2004
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)
 June 30,
    
    
    December 31,2005
    
    
    2004ASSETSInvestments and cash:Fixed income securities, at fair value (amortized cost $2,576,346 and $2,478,614, respectively)
    
    $
    2,667,729
    
    
    $
    2,505,630Equity securities:Common stocks, at fair value (cost $518,640 and $435,279, respectively)
    
    
    575,124
    
    
    
    453,580Common stocks, at equity
    
    
    467,740
    
    
    
    402,555Short-term investments, at cost which approximates fair value
    
    
    199,004
    
    
    
    213,403Other invested assets
    
    
    222,444
    
    
    
    149,075Cash and cash equivalents
    
    
    1,191,088
    
    
    
    1,150,748Cash collateral for borrowed securities
    
    
    239,577
    
    
    
    176,518Total investments and cash
    
    
    5,562,706
    
    
    
    5,051,509Investment income due and accrued
    
    
    42,076
    
    
    
    39,592Premiums receivable
    
    
    526,552
    
    
    
    550,198Reinsurance recoverables on loss payments
    
    
    138,641
    
    
    
    89,912Reinsurance recoverables on unpaid losses
    
    
    1,061,073
    
    
    
    1,092,082Prepaid reinsurance premiums
    
    
    83,647
    
    
    
    93,774Funds held by ceding insurers
    
    
    176,181
    
    
    
    192,346Deferred acquisition costs
    
    
    171,833
    
    
    
    171,083Federal and foreign income taxes
    
    
    88,788
    
    
    
    102,298Other assets
    
    
    80,713
    
    
    
    138,016Total assets
    
    $
    7,932,210
    
    
    $
    7,520,810LIABILITIESUnpaid losses and loss adjustment expenses
    
    $
    4,388,062
    
    
    $
    4,228,021Unearned premiums
    
    
    829,132
    
    
    
    832,305Reinsurance balances payable
    
    
    136,028
    
    
    
    122,182Funds held under reinsurance contracts
    
    
    178,542
    
    
    
    179,867Debt obligations
    
    
    481,573
    
    
    
    376,040Obligation to return borrowed securities
    
    
    89,801
    
    
    
    56,191Other liabilities
    
    
    115,207
    
    
    
    140,704Total liabilities
    
    
    6,218,345
    
    
    
    5,935,310STOCKHOLDERS EQUITYPreferred 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
    
    
    
    651Additional paid-in capital
    
    
    793,973
    
    
    
    794,055Treasury stock, at cost (277,177 and 387,879 shares, respectively)
    
    
    (6,701
    )
    
    
    (9,426
    )Unearned compensation
    
    
    (6,196
    )
    
    
    (4,977
    )Accumulated other comprehensive income, net of deferred income taxes
    
    
    188,571
    
    
    
    136,849Retained earnings
    
    
    743,567
    
    
    
    668,348Total stockholders equity
    
    
    1,713,865
    
    
    
    1,585,500Total liabilities and stockholders equity
    
    $
    7,932,210
    
    
    $
    7,520,810




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##### 



ODYSSEY RE HOLDINGS CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
SIX AND THREE MONTHS ENDED JUNE 30, 2005 AND 2004 (UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
 Six Months
    
    
    Six Months
    
    
    Three Months
    
    
    Three MonthsEnded
    
    
    Ended
    
    
    Ended
    
    
    EndedJune 30,
    
    
    June 30,
    
    
    June 30,
    
    
    June 30,2005
    
    
    2004
    
    
    2005
    
    
    2004REVENUESGross premiums written
    
    $
    1,283,468
    
    
    $
    1,241,459
    
    
    $
    601,901
    
    
    $
    611,976Ceded premiums written
    
    
    130,170
    
    
    
    138,209
    
    
    
    64,178
    
    
    
    61,965Net premiums written
    
    
    1,153,298
    
    
    
    1,103,250
    
    
    
    537,723
    
    
    
    550,011(Increase) decrease in unearned premiums
    
    
    (11,288
    )
    
    
    23,125
    
    
    
    36,019
    
    
    
    30,103Net premiums earned
    
    
    1,142,010
    
    
    
    1,126,375
    
    
    
    573,742
    
    
    
    580,114Net investment income
    
    
    115,162
    
    
    
    70,567
    
    
    
    50,047
    
    
    
    35,105Net realized investment gains
    
    
    7,943
    
    
    
    67,256
    
    
    
    7,792
    
    
    
    32,417Total revenues
    
    
    1,265,115
    
    
    
    1,264,198
    
    
    
    631,581
    
    
    
    647,636EXPENSESLosses and loss adjustment expenses
    
    
    806,299
    
    
    
    747,318
    
    
    
    392,220
    
    
    
    383,761Acquisition costs
    
    
    241,596
    
    
    
    257,489
    
    
    
    123,076
    
    
    
    132,008Other underwriting expenses
    
    
    67,365
    
    
    
    63,880
    
    
    
    34,959
    
    
    
    33,971Other expense, net
    
    
    14,265
    
    
    
    4,956
    
    
    
    6,038
    
    
    
    2,596Interest expense
    
    
    13,917
    
    
    
    12,799
    
    
    
    7,511
    
    
    
    6,405Loss on early extinguishment of debt
    
    
    2,060
    
    
    
    
    
    
    
    2,060
    
    
    
    Total expenses
    
    
    1,145,502
    
    
    
    1,086,442
    
    
    
    565,864
    
    
    
    558,741Income before income taxes
    
    
    119,613
    
    
    
    177,756
    
    
    
    65,717
    
    
    
    88,895Federal and foreign income tax provision (benefit):Current
    
    
    53,138
    
    
    
    61,013
    
    
    
    24,352
    
    
    
    35,903Deferred
    
    
    (12,796
    )
    
    
    (1,263
    )
    
    
    (1,749
    )
    
    
    (6,059
    )Total federal and foreign income tax provision
    
    
    40,342
    
    
    
    59,750
    
    
    
    22,603
    
    
    
    29,844NET INCOME
    
    $
    79,271
    
    
    $
    118,006
    
    
    $
    43,114
    
    
    $
    59,051BASICWeighted average common shares outstanding
    
    
    64,317,054
    
    
    
    64,385,021
    
    
    
    64,352,281
    
    
    
    64,311,432Basic earnings per common share
    
    $
    1.23
    
    
    $
    1.83
    
    
    $
    0.67
    
    
    $
    0.92DILUTEDWeighted average common shares outstanding
    
    
    69,874,831
    
    
    
    70,384,802
    
    
    
    69,765,394
    
    
    
    70,330,771Diluted earnings per common share
    
    $
    1.16
    
    
    $
    1.70
    
    
    $
    0.63
    
    
    $
    0.85DIVIDENDSDividends declared per common share
    
    $
    0.063
    
    
    $
    0.063
    
    
    $
    0.031
    
    
    $
    0.031COMPREHENSIVE INCOME (LOSS)Net income
    
    $
    79,271
    
    
    $
    118,006
    
    
    $
    43,114
    
    
    $
    59,051Other comprehensive income (loss), net of tax
    
    
    51,722
    
    
    
    (102,848
    )
    
    
    71,532
    
    
    
    (97,617
    )Comprehensive income (loss)
    
    $
    130,993
    
    
    $
    15,158
    
    
    $
    114,646
    
    
    $
    (38,566
    )




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##### 



ODYSSEY RE HOLDINGS CORP.
BUSINESS SEGMENTS
SIX AND THREE MONTHS ENDED
JUNE 30, 2005 AND 2004
(UNAUDITED)
(IN THOUSANDS)
 Six Months
    
    
    Six Months
    
    
    
    
    
    
    Three Months
    
    
    Three MonthsEnded
    
    
    Ended
    
    
    
    
    
    
    Ended
    
    
    EndedJune 30,
    
    
    June 30,
    
    
    %
    
    
    June 30,
    
    
    June 30,
    
    
    %2005
    
    
    2004
    
    
    Change
    
    
    2005
    
    
    2004
    
    
    ChangeGROSS PREMIUMS WRITTENAmericas
    
    $
    557,254
    
    
    $
    618,879
    
    
    
    (10.0
    )%
    
    $
    250,497
    
    
    $
    289,879
    
    
    
    (13.6
    )%EuroAsia
    
    
    282,791
    
    
    
    268,416
    
    
    
    5.4
    
    
    
    143,562
    
    
    
    142,603
    
    
    
    0.7London Market
    
    
    194,811
    
    
    
    187,601
    
    
    
    3.8
    
    
    
    97,468
    
    
    
    102,896
    
    
    
    (5.3
    )U.S. Insurance
    
    
    248,612
    
    
    
    166,563
    
    
    
    49.3
    
    
    
    110,374
    
    
    
    76,598
    
    
    
    44.1Total
    
    $
    1,283,468
    
    
    $
    1,241,459
    
    
    
    3.4
    %
    
    $
    601,901
    
    
    $
    611,976
    
    
    
    (1.6
    )%NET PREMIUMS WRITTENAmericas
    
    $
    536,238
    
    
    $
    592,230
    
    
    
    (9.5
    )%
    
    $
    235,943
    
    
    $
    278,033
    
    
    
    (15.1
    )%EuroAsia
    
    
    270,393
    
    
    
    255,702
    
    
    
    5.7
    
    
    
    142,473
    
    
    
    133,953
    
    
    
    6.4London Market
    
    
    174,312
    
    
    
    161,380
    
    
    
    8.0
    
    
    
    85,102
    
    
    
    91,863
    
    
    
    (7.4
    )U.S. Insurance
    
    
    172,355
    
    
    
    93,938
    
    
    
    83.5
    
    
    
    74,205
    
    
    
    46,162
    
    
    
    60.7Total
    
    $
    1,153,298
    
    
    $
    1,103,250
    
    
    
    4.5
    %
    
    $
    537,723
    
    
    $
    550,011
    
    
    
    (2.2
    )%NET PREMIUMS EARNEDAmericas
    
    $
    548,500
    
    
    $
    607,677
    
    
    
    (9.7
    %
    
    $
    271,533
    
    
    $
    310,453
    
    
    
    (12.5
    )%EuroAsia
    
    
    271,201
    
    
    
    231,822
    
    
    
    17.0
    
    
    
    139,019
    
    
    
    116,197
    
    
    
    19.6London Market
    
    
    177,551
    
    
    
    203,178
    
    
    
    (12.6
    )
    
    
    86,876
    
    
    
    106,515
    
    
    
    (18.4
    )U.S. Insurance
    
    
    144,758
    
    
    
    83,698
    
    
    
    73.0
    
    
    
    76,314
    
    
    
    46,949
    
    
    
    62.5Total
    
    $
    1,142,010
    
    
    $
    1,126,375
    
    
    
    1.4
    %
    
    $
    573,742
    
    
    $
    580,114
    
    
    
    (1.1
    )%
  Six Months
    
    
    Six Months
    
    
    
    
    
    
    Three Months
    
    
    Three MonthsEnded
    
    
    Ended
    
    
    Percentage
    
    
    Ended
    
    
    Ended
    
    
    PercentageJune 30,
    
    
    June 30,
    
    
    Point
    
    
    June 30,
    
    
    June 30,
    
    
    Point2005
    
    
    2004
    
    
    Change
    
    
    2005
    
    
    2004
    
    
    ChangeLOSSES AND LOSS
ADJUSTMENT EXPENSES RATIOAmericas
    
    
    76.8
    %
    
    
    66.8
    %
    
    
    10.0
    
    
    
    78.5
    %
    
    
    68.6
    %
    
    
    9.9EuroAsia
    
    
    67.1
    
    
    
    64.0
    
    
    
    3.1
    
    
    
    57.6
    
    
    
    62.1
    
    
    
    (4.5
    )London Market
    
    
    62.7
    
    
    
    66.1
    
    
    
    (3.4
    )
    
    
    56.9
    
    
    
    62.5
    
    
    
    (5.6
    )U.S. Insurance
    
    
    63.6
    
    
    
    70.6
    
    
    
    (7.0
    )
    
    
    65.0
    
    
    
    68.0
    
    
    
    (3.0
    )Total
    
    
    70.6
    %
    
    
    66.4
    %
    
    
    4.2
    
    
    
    68.4
    %
    
    
    66.2
    %
    
    
    2.2ACQUISITION COSTS AND OTHER
UNDERWRITING EXPENSES RATIOAmericas
    
    
    29.7
    %
    
    
    31.8
    %
    
    
    (2.1
    )
    
    
    30.6
    %
    
    
    30.9
    %
    
    
    (0.3
    )EuroAsia
    
    
    26.5
    
    
    
    26.2
    
    
    
    0.3
    
    
    
    26.9
    
    
    
    27.7
    
    
    
    (0.8
    )London Market
    
    
    24.8
    
    
    
    25.3
    
    
    
    (0.5
    )
    
    
    25.8
    
    
    
    25.0
    
    
    
    0.8U.S. Insurance
    
    
    20.5
    
    
    
    18.7
    
    
    
    1.8
    
    
    
    20.0
    
    
    
    24.2
    
    
    
    (4.2
    )Total
    
    
    27.1
    %
    
    
    28.5
    %
    
    
    (1.4
    )
    
    
    27.5
    %
    
    
    28.6
    %
    
    
    (1.1
    )COMBINED RATIOAmericas
    
    
    106.5
    %
    
    
    98.6
    %
    
    
    7.9
    
    
    
    109.1
    %
    
    
    99.5
    %
    
    
    9.6EuroAsia
    
    
    93.6
    
    
    
    90.2
    
    
    
    3.4
    
    
    
    84.5
    
    
    
    89.8
    
    
    
    (5.3
    )London Market
    
    
    87.5
    
    
    
    91.4
    
    
    
    (3.9
    )
    
    
    82.7
    
    
    
    87.5
    
    
    
    (4.8
    )U.S. Insurance
    
    
    84.1
    
    
    
    89.3
    
    
    
    (5.2
    )
    
    
    85.0
    
    
    
    92.2
    
    
    
    (7.2
    )Total
    
    
    97.7
    %
    
    
    94.9
    %
    
    
    2.8
    
    
    
    95.9
    %
    
    
    94.8
    %
    
    
    1.1