Montpelier Re Holdings Ltd. has announced that its board of directors has agreed to increase the regular quarterly dividend payable on the company's issued common shares by 11 percent.

The board has declared a quarterly dividend of 10 cents per share, payable on January 14, 2011, to all shareholders of record as of December 31, 2010.

The board currently intends to maintain the regular dividend at the increased level in future periods, and will consider further adjustments in dividend policy periodically.

Any future determination to pay dividends or distributions to shareholders will remain at the discretion of the board and will be dependent upon a number of factors, including the company's results of operations, cash flows, financial position, capital requirements, general business opportunities, legal, tax, regulatory and contractual restrictions.