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Tel.

+44 (0)20 7232 3090 Traded on
AIM, London
Fax +44 (0)20 7232 3099 Stock Exchange

www.iirgroup.com Regulated and
LSE: IIR authorised by

Max Capital Group Ltd. 30 June 2008

Company News Alert

Significant decline in NASDAQ common stock price since our last update report

NASDAQ BUY Max Capital Group Ltd.’s (Max Capital) NASDAQ common stock price has witnessed a significant
decline since our previous update report, reflecting investor concerns regarding broad-based
Common weakness in the global financial markets and its impact on insurance and reinsurance stocks, in line
with the performance of the US financial market. Although we intend to reduce our target price in our
Stock next update report, we believe that the recent decline in the NASDAQ common stock has left the stock
Ticker: MXGL undervalued and thus we believe that it offers an attractive investment opportunity at current levels.
Target price: US$31.86 Therefore, we maintain our current BUY rating for the Max Capital NASDAQ common stock.
Current price: US$21.75

Price change since (21.2%)
last report: We will reassess the NASDAQ common stock rating for Max Capital in our next full update report.

European BUY We maintain our current BUY rating for the European stock based on our fundamental outlook. We do
not expect a significant currency impact on the European common stock over our investment horizon.
Stock1
Ticker: MXGL.F
Target price: €24.78
Current price: €13.84
Price change since (26.7%) We will reassess the European stock rating for Max Capital in our next full update report.
last report:

Supervisor: Somnath Banerjee
Analyst: Dewanshi Doshi Investment horizon - short term actionable trading strategies
Editor: Heloise Capon This report addresses the needs of strategic investors with a long term investment horizon of 6-12 months. If this
Global Research Director: report is provided to you by your broker under the Global Settlement, you may now also access (free of charge) the
short term trading outlook that we publish from time to time for this issuer, looking at the coming 5-30 days for
Satish Betadpur, CFA readers with a shorter trading horizon. These are available online only at www.researchoracle.com

Next news due:
2Q 08 results, 05 August 2008 In our 3Q 07 update report, dated 12 December 2007, we reiterated the Max Capital NASDAQ
common stock a BUY on fundamental grounds with a 6-12 month target price of US$31.86, indicating
a potential upside of 15%.
The Max Capital NASDAQ common stock price has declined 21.2% since our previous update report to
close at a 52-week low of US$21.75 on 27 June 2008. We believe that the decline in the common
stock price reflects investor concerns regarding weakness in global financial markets and its impact on
insurance and reinsurance stocks, in line with the performance of the US financial market. Concern
over increasing competition and softening premium rates in the industry has also contributed to the
overall decline in the NASDAQ common stock price.
In view of the softening premium rates in the industry and weakness in global financial markets, we
are likely to revise our estimates and target prices downwards when we come to revalue the stock in
our next full update report. However, we believe that the recent decline in the price has created an
investment opportunity. Therefore, we maintain our BUY rating for the NASDAQ common stock at
current price levels.

Footnotes
1 The MXGL.F stock had a low average daily trading volume of below US$1 mn over last 12 months.

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