Exhibit 99.1

MAX CAPITAL GROUP LTD. REPORTS FIRST-QUARTER FINANCIAL RESULTS

HAMILTON, BERMUDA, May 7, 2007—Max Capital Group Ltd. (NASDAQ: MXGL; BSX: MXGL BH) today reported net income for the three months ended March 31, 2007, of $80.0 million, or $1.24 per diluted share, compared to net income of $75.3 million, or $1.19 per diluted share, for the three months ended March 31, 2006. Net operating income, which represents net income adjusted for net realized gains and losses on sales of fixed maturities, for the three months ended March 31, 2007, was $81.0 million, or $1.26 per diluted share, compared with net operating income of $76.9 million, or $1.21 per diluted share, for the three months ended March 31, 2006.

W. Marston Becker, Chairman and Chief Executive Officer of Max Capital, said: “Our solid underwriting results, coupled with strong investment returns, have provided a great start to 2007. We continue to emphasize balance and diversification in our underwriting, which we believe will result in consistent positive returns over time. While our first quarter 2007 gross premium written is lower than the same period in 2006, it is in line with our 2007 budgeted production. I am also pleased to note that subsequent to March 31, 2007, as previously announced, we completed the establishment of our U.S.-based excess and surplus lines platform, Max Specialty Insurance Company, and have commenced underwriting excess and surplus lines business in niche markets.”

Gross premiums written for the three months ended March 31, 2007 were $213.6 million, of which $213.0 million came from property and casualty underwriting and $0.6 million from life and annuity underwriting, compared to $255.9 million, of which $255.1 million came from property and casualty underwriting and $0.8 million from life and annuity underwriting, for the three months ended March 31, 2006. Gross premiums written include neither any new life and annuity reinsurance premiums nor any premiums for our recently established excess and surplus lines business. Reinsurance and insurance products accounted for 63.4% and 36.6%, respectively, of property and casualty gross premiums written in the three months ended March 31, 2007, compared to 72.5% and 27.5%, respectively, of property and casualty gross premiums written for the three months ended March 31, 2006. Net premiums earned for the three months ended March 31, 2007 were $139.4 million compared to $159.8 million for the same period of 2006. The decline in net premiums earned for the three months ended March 31, 2007, principally reflects the increase in our use of reinsurance in order to manage our net exposure retained.

Net investment income for the three months ended March 31, 2007, increased to $42.8 million from $34.0 million for the same period in 2006. The increase is principally attributable to a year-over-year increase in cash and fixed maturities balances and higher yields on fixed-maturity investments. Net gains on alternative investments for the three months ended March 31, 2007, were $54.1 million, or a 4.8% rate of return, compared to net gains on alternative investments of $54.9 million, or a 4.4% rate of return, for the same period of 2006. Invested assets were $4.8 billion as of March 31, 2007, with an allocation of 76.7% to cash and fixed maturities and 23.3% to alternative investments.

Total revenue for the three months ended March 31, 2007, decreased 4.8% to $235.6 million, compared to $247.5 million for the same period in 2006. The decline in revenue in the three months to March 31, 2007, is principally attributable to the 12.7% decrease in net premiums earned over the same period in 2006, partially offset by the increase in net investment income.

Losses and benefits were $107.0 million for the three months ended March 31, 2007, compared to $125.6 million for the same period in 2006. The decrease in losses and benefits for the three months ended March 31, 2007, is principally attributable to the decrease in premiums earned. There were no significant changes in prior-period reserves during the three months ended March 31, 2007.

Acquisition costs for the three months ended March 31, 2007, were $14.9 million compared to $21.5 million for the same period in 2006. The decrease reflects the lower net premiums earned in 2007 compared to 2006.

Interest expense for the three months ended March 31, 2007, was $8.1 million compared to $3.3 million for the same period in 2006, principally attributable to interest crediting rates on funds withheld balances, which are based on the total return of two fixed income indices. The total return was positive in the three months ended March 31, 2007, compared to a negative return for the three months ended March 31, 2006.

General and administrative expenses for the three months ended March 31, 2007, were $25.4 million compared to $21.8 million for the same period in 2006. The increase in general and administrative expenses for the three months ended March 31, 2007, principally reflects start-up costs associated with our newly launched U.S.-based excess and surplus lines operations.

Shareholders’ equity was $1,448.1 million at March 31, 2007. Book value per share at March 31, 2007 was $24.01 per share, compared to $23.06 at December 31, 2006. Annualized return on average shareholders’ equity for the three months ended March 31, 2007, was 22.5%.

During the three months ended March 31, 2007, Max Capital repurchased 795,100 common shares at an average price per share of $24.69 under the board-approved share repurchase plan. On May 4, 2007, Max Capital’s Board of Directors approved an increase in the share repurchase plan, increasing the dollar value of shares that may be repurchased to $50.0 million from the $16.4 million remaining under the previous share repurchase authorization.

Certain non-GAAP financial measures that are included in this press release are defined in the Company’s Annual Report on Form 10-K for the year ended December 31, 2006.

Max Capital Group Ltd., through its operating subsidiaries, provides specialty insurance and reinsurance products to corporations, public entities, property and casualty insurers and life and health insurers.

This release includes statements about future expectations, plans and prospects of the Company that constitute forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those suggested by such statements, including the risk that the SEC’s view of the conclusions reached by the Audit and Risk Management Committee of the Company’s Board of Directors in connection with the internal review of three finite risk retrocessional contracts written in 2001 and 2003, which caused the Company to restate its audited financial statements for the years ended December 31, 2005, 2004, 2003, 2002 and 2001 and unaudited financial statements for the periods ended March 31, 2006, and June 30, 2006, may differ, perhaps materially, and result in material changes to information contained in the Company’s past SEC filings, including financial statements and financial information. For further information regarding cautionary statements and factors affecting future results, please refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2006, and other documents filed by the Company with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statement whether as a result of new information, future developments or otherwise.

Contacts
N. James Tees	Roy Winnick
Executive Vice President	Kekst and Company
jim.tees@maxcapgroup.com	roy-winnick@kekst.com
1-441-296-8800	1-212-521-4842

(tables follow)

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MAX CAPITAL GROUP LTD.

CONSOLIDATED BALANCE SHEETS

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

	March 31, 2007			December 31, 2006
	(Unaudited)
ASSETS
Cash and cash equivalents	$	358,037		$	441,895
Fixed maturities, available for sale at fair value		3,285,414			3,028,108
Alternative investments, at fair value		1,107,890			1,065,874
Accrued interest income		38,142			38,922
Premiums receivable		417,295			390,889
Losses and benefits recoverable from reinsurers		569,682			538,009
Funds withheld		14,498			15,385
Deferred acquisition costs		51,742			49,064
Prepaid reinsurance premiums		118,533			104,443
Receivable for securities redeemed		17,798			136,563
Other assets		42,938			39,832
Total assets	$	6,021,969		$	5,848,984
LIABILITIES
Property and casualty losses	$	2,421,616		$	2,335,109
Life and annuity benefits		882,830			895,560
Deposit liabilities		204,618			204,389
Funds withheld from reinsurers		254,880			254,723
Unearned property and casualty premiums		448,293			436,476
Reinsurance balances payable		86,230			79,506
Accounts payable and accrued expenses		40,389			103,160
Bank loan		235,000			150,000
Total liabilities		4,573,856			4,458,923
SHAREHOLDERS’ EQUITY
Preferred shares (par value $1.00) 20,000,000 shares authorized; no shares issued or outstanding		—			—
Common shares (par value $1.00) 200,000,000 shares authorized; 60,305,517 (2006—60,276,560) shares issued and outstanding		60,306			60,277
Additional paid-in capital		949,257			950,862
Unearned stock grant compensation		(29,303	)		(17,570	)
Accumulated other comprehensive loss		(26,044	)		(21,688	)
Retained earnings		493,897			418,180
Total shareholders’ equity		1,448,113			1,390,061
Total liabilities and shareholders’ equity	$	6,021,969		$	5,848,984
Book Value Per Share	$	24.01		$	23.06

3

MAX CAPITAL GROUP LTD.

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited)

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

	Three Months Ended March 31
	2007			2006
REVENUES
Gross premiums written	$	213,598		$	255,924
Reinsurance premiums ceded		(76,208	)		(57,762	)
Net premiums written	$	137,390		$	198,162
Earned premiums	$	201,492		$	206,126
Earned premiums ceded		(62,070	)		(46,369	)
Net premiums earned		139,422			159,757
Net investment income		42,817			34,029
Net gains on alternative investments		54,112			54,859
Net realized losses on sale of fixed maturities		(1,043	)		(1,676	)
Other income		174			500
Total revenues		235,482			247,469
LOSSES AND EXPENSES
Losses and benefits		107,015			125,599
Acquisition costs		14,926			21,543
Interest expense		8,107			3,295
General and administrative expenses		25,441			21,759
Total losses and expenses		155,489			172,196
NET INCOME		79,993			75,273
Change in net unrealized appreciation of fixed maturities		(4,740	)		(50,069	)
Foreign currency translation adjustment		384			1,098
COMPREHENSIVE INCOME	$	75,637		$	26,302
Basic earnings per share	$	1.32		$	1.27
Diluted earnings per share	$	1.24		$	1.19
Diluted net operating earnings per share	$	1.26		$	1.21
Weighted average shares outstanding—basic		60,799,481			59,104,352
Weighted average shares outstanding—diluted		64,491,168			63,516,268

4

MAX CAPITAL GROUP LTD.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

(Expressed in thousands of United States Dollars)

	Three Months Ended March 31,
	2007			2006
Preferred shares
Balance, beginning of period	$	—		$	—
Balance, end of period		—			—
Common shares
Balance, beginning of period		60,277			58,829
Issue of shares		824			544
Repurchase of shares		(795	)		—
Balance, end of period		60,306			59,373
Additional paid-in capital
Balance, beginning of period		950,862			921,384
Issue of common shares		16,544			12,529
Stock option expense		689			278
Repurchase of shares		(18,838	)		—
Balance, end of period		949,257			934,191
Loans receivable from common share sales
Balance, beginning of period		—			(465	)
Loans repaid		—			165
Balance, end of period		—			(300	)
Unearned stock grant compensation
Balance, beginning of period		(17,570	)		(14,574	)
Stock grants awarded		(15,734	)		(12,596	)
Amortization		4,001			3,096
Balance, end of period		(29,303	)		(24,074	)
Accumulated other comprehensive income (loss)
Balance, beginning of period		(21,688	)		4,981
Holding losses on fixed maturities arising in period		(5,783	)		(51,745	)
Net realized losses included in net income		1,043			1,676
Currency translation adjustments		384			1,098
Balance, end of period		(26,044	)		(43,990	)
Retained earnings
Balance, beginning of period		418,180			215,565
Net income		79,993			75,273
Dividends paid		(4,276	)		(2,969	)
Balance, end of period		493,897			287,869
Total shareholders’ equity	$	1,448,113		$	1,213,069

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MAX CAPITAL GROUP LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(Expressed in thousands of United States Dollars)

	Three Months Ended March 31
	2007			2006
OPERATING ACTIVITIES
Net income	$	79,993		$	75,273
Adjustments to reconcile net income to net cash from operating activities:
Stock based compensation		4,691			3,374
Amortization of premium on fixed maturities		1,298			1,864
Accretion of deposit liabilities		1,584			1,013
Net realized losses on sale of fixed maturities		1,043			1,676
Alternative investments		(42,053	)		(40,091	)
Accrued interest income		780			1,072
Premiums receivable		(26,406	)		(18,548	)
Losses and benefits recoverable from reinsurers		(31,673	)		(13,676	)
Funds withheld		887			294
Deferred acquisition costs		(2,678	)		(7,696	)
Prepaid reinsurance premiums		(14,090	)		(11,669	)
Receivable for securities redeemed		118,765			4,534
Other assets		(3,106	)		(2,562	)
Property and casualty losses		86,507			81,033
Life and annuity benefits		(12,730	)		(582	)
Funds withheld from reinsurers		157			(15,404	)
Unearned property and casualty premiums		11,817			50,720
Reinsurance balances payable		6,724			(5,181	)
Accounts payable and accrued expenses		(62,771	)		10,614
Cash provided by operating activities		118,739			116,058
INVESTING ACTIVITIES
Purchases of fixed maturities		(469,761	)		(211,424	)
Sales of fixed maturities		81,531			113,290
Redemptions of fixed maturities		123,880			31,570
Cash used in investing activities		(264,350	)		(66,564	)
FINANCING ACTIVITIES
Net proceeds from issuance of common shares		1,633			477
Repurchase of common shares		(19,633	)		—
Proceeds from bank loan		85,000			—
Dividends		(4,276	)		(2,969	)
Additions to deposit liabilities		239			4,524
Payment of deposit liabilities		(1,594	)		(30,034	)
Notes and loans repaid		—			165
Cash provided by (used in) financing activities		61,369			(27,837	)
Effect of exchange rate on cash		384			1,098
Net (decrease) increase in cash and cash equivalents		(83,858	)		22,755
Cash and cash equivalents, beginning of period		441,895			314,031
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	358,037		$	336,786
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid totaled $3,411 and $2,716 for the three months ended March 31, 2007 and 2006, respectively.
No corporate taxes were paid during the three months ended March 31, 2007 and 2006.

6

MAX CAPITAL GROUP LTD.

SCHEDULE OF SUPPLEMENTAL DATA—THREE MONTHS TO MARCH 31, 2007 (Unaudited)

Quarter Segment Information: (in 000’s US$)	Property & Casualty									Life & Annuity			Corporate			Consolidated
	Reinsurance			Insurance			Total			Reinsurance
Gross premiums written	$	135,014		$	78,034		$	213,048		$	550		$	—		$	213,598
Reinsurance premiums ceded		(23,549	)		(52,549	)		(76,098	)		(110	)		—			(76,208	)
Net premiums written	$	111,465		$	25,485		$	136,950		$	440		$	—		$	137,390
Earned premiums	$	98,896		$	102,046		$	200,942		$	550		$	—		$	201,492
Earned premiums ceded		(10,476	)		(51,484	)		(61,960	)		(110	)		—			(62,070	)
Net premiums earned		88,420			50,562			138,982			440			—			139,422
Net investment income		10,735			3,944			14,679			7,356			20,782			42,817
Net gains on alternative investments		16,422			4,375			20,797			17,496			15,819			54,112
Net realized losses on sales of fixed maturities		—			—			—			—			(1,043	)		(1,043	)
Other income		—			—			—			—			174			174
Total revenues		115,577			58,881			174,458			25,292			35,732			235,482
Losses and benefits		59,764			36,834			96,598			10,417			—			107,015
Acquisition costs		15,256			(591	)		14,665			261			—			14,926
Interest expense		3,031			—			3,031			1,664			3,412			8,107
General and administrative expenses		7,270			4,384			11,654			711			13,076			25,441
Total losses and expenses		85,321			40,627			125,948			13,053			16,488			155,489
Net income	$	30,256		$	18,254		$	48,510		$	12,239		$	19,244		$	79,993
Loss Ratio (a)		67.6	%		72.8	%		69.5	%
Combined Ratio (b)		93.1	%		80.4	%		88.4	%
SCHEDULE OF SUPPLEMENTAL DATA—THREE MONTHS TO MARCH 31, 2006 (Unaudited)
Quarter Segment Information: (in 000’s US$)	Property & Casualty									Life & Annuity			Corporate			Consolidated
	Reinsurance			Insurance			Total			Reinsurance
Gross premiums written	$	184,983		$	70,166		$	255,149		$	775		$	—		$	255,924
Reinsurance premiums ceded		(16,059	)		(41,548	)		(57,607	)		(155	)		—			(57,762	)
Net premiums written	$	168,924		$	28,618		$	197,542		$	620		$	—		$	198,162
Earned premiums	$	117,034		$	88,317		$	205,351		$	775		$	—		$	206,126
Earned premiums ceded		(7,916	)		(38,298	)		(46,214	)		(155	)		—			(46,369	)
Net premiums earned		109,118			50,019			159,137			620			—			159,757
Net investment income		8,452			3,365			11,817			7,497			14,715			34,029
Net gains on alternative investments		13,059			3,923			16,982			15,657			22,220			54,859
Net realized gains on sales of fixed maturities		—			—			—			—			(1,676	)		(1,676	)
Other income		—			—			—			—			500			500
Total revenues		130,629			57,307			187,936			23,774			35,759			247,469
Losses and benefits		77,447			37,109			114,556			11,043			—			125,599
Acquisition costs		20,831			453			21,284			259			—			21,543
Interest expense		(540	)		—			(540	)		1,075			2,760			3,295
General and administrative expenses		5,761			3,690			9,451			644			11,664			21,759
Total losses and expenses		103,499			41,252			144,751			13,021			14,424			172,196
Net income	$	27,130		$	16,055		$	43,185		$	10,753		$	21,335		$	75,273
Loss Ratio (a)		71.0	%		74.2	%		72.0	%
Combined Ratio (b)		95.3	%		82.5	%		91.3	%

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

(b) The combined ratio is calculated by dividing the sum of losses and benefits, acquisition costs and general and administrative expenses by net premiums earned.

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MAX CAPITAL GROUP LTD.

SCHEDULE OF SUPPLEMENTAL DATA—THREE MONTHS TO MARCH 31, 2007 (Unaudited)

	Three months to March 31, 2007				Three months to March 31, 2006
	Gross Premiums Written*		Percentage of Total Premiums Written		Gross Premiums Written*		Percentage of Total Premiums Written
Gross Premiums Written by Type of Risk:
Property and Casualty Reinsurance:
Accident & Health	$	—	0.0	%	$	6,333	2.5	%
Aviation		8,131	3.8	%		13,415	5.2	%
Excess Liability		6,330	3.0	%		30,255	11.8	%
Medical Malpractice		21,286	9.9	%		23,834	9.3	%
Other		390	0.2	%		3,413	1.4	%
Professional Liability		9,340	4.4	%		14,868	5.8	%
Property, Marine & Energy		65,528	30.7	%		40,486	15.8	%
Whole Account		5,880	2.7	%		30,175	11.8	%
Workers’ Compensation		18,129	8.5	%		22,204	8.7	%
		135,014	63.2	%		184,983	72.3	%
Property and Casualty Insurance:
Aviation		4,048	1.9	%		1,932	0.8	%
Excess Liability		38,199	17.9	%		36,494	14.2	%
Professional Liability		25,359	11.8	%		22,834	8.9	%
Property		10,428	4.9	%		8,906	3.5	%
		78,034	36.5	%		70,166	27.4	%
Aggregate Property and Casualty	$	213,048	99.7	%	$	255,149	99.7	%
Life & Annuity:
Annuity	$	—	0.0	%	$	—	0.0	%
Health		—	0.0	%		—	0.0	%
Life		550	0.3	%		775	0.3	%
Aggregate Life & Annuity		550	0.3	%		775	0.3	%
Aggregate P&C and Life & Annuity	$	213,598	100.0	%	$	255,924	100.0	%

					Periodic Rate of Return
	Fair Value*		Investment %’s		Last 3 Months		Year to Date		Last 60 months**
Selected Investment Return Data:
Cash and Fixed Maturities	$	3,643,451	76.7	%	1.18	%	1.18	%	5.00	%
Commodity Trading Advisers	$	27,580	0.6	%	-0.64	%	-0.64	%	5.69	%
Distressed Securities		216,658	4.5	%	5.05	%	5.05	%	19.43	%
Diversified Arbitrage		173,802	3.7	%	4.56	%	4.56	%	7.17	%
Emerging Markets		113,166	2.4	%	4.65	%	4.65	%	15.81	%
Event-Driven Arbitrage		169,005	3.5	%	9.55	%	9.55	%	13.20	%
Fixed Income Arbitrage		26,674	0.6	%	3.97	%	3.97	%	7.18	%
Global Macro		62,093	1.3	%	2.73	%	2.73	%	9.73	%
Long / Short Credit		83,908	1.8	%	3.94	%	3.94	%	12.71	%
Long / Short Equity		201,106	4.2	%	5.16	%	5.16	%	7.17	%
Opportunistic		31,254	0.6	%	6.27	%	6.27	%	17.32	%
MDS		1,105,246	23.2	%	4.75	%	4.75	%	9.44	%
Reinsurance Private Equity		2,644	0.1	%	6.05	%	6.05	%	-1.68	%
Alternative Investments	$	1,107,890	23.3	%	4.75	%	4.75	%	8.89	%
Total Investments	$	4,751,341	100.0	%	2.07	%	2.07	%	6.27	%

* Expressed in thousands of United States Dollars

** Annualized

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