This excerpt taken from the MRH 10-K filed Mar 1, 2007.
We are a holding company and conduct no operations of our own. We rely primarily on cash dividends from Montpelier Re to pay our operating expenses, interest on our debt and dividends to our shareholders and warrant holders. We currently have in place a regular dividend of $0.075 per common voting share and warrant per quarter. Montpelier Re is subject to Bermuda laws and regulatory constraints which affect its ability to pay dividends to us. In addition, under the Companies Act, the Company and Montpelier Re may only declare or pay a dividend if, among other matters, there are reasonable grounds for believing that each of them is, or would after the payment be, able to pay their respective liabilities as they become due. Accordingly, we cannot assure you that we will declare or pay dividends in the future. Any determination to pay future dividends will be at the discretion of our Board of Directors and will be dependent upon our results of operations and cash flows, our financial position and capital requirements, general business conditions, legal, tax, regulatory and any contractual restrictions on the payment of dividends, and any other factors our Board of Directors deems relevant. For additional information concerning Bermuda regulatory restrictions, see Part 1, Item 1, Bermuda Insurance Regulation.
Quarterly dividends declared on common voting shares and warrants during 2006 amounted to $0.075 per common voting share and warrant at March 15, 2006, June 16, 2006, September 15, 2006 and December 27, 2006 and were paid on April 17, 2006, July 17, 2006, October 16, 2006 and January 16, 2007, respectively. Quarterly dividends declared on common voting shares and warrants during 2005 amounted to $0.36 per common voting share and warrant at March 31, 2005, June 30, 2005, September 30, 2005 and $0.075 per common voting share and warrant for the quarter ended December 31, 2005 and were paid on April 15, 2005, July 15, 2005 October 15, 2005 and January 15, 2006, respectively. On February 25, 2005, we declared a special dividend in the amount of $5.50 per common share and warrant which was paid on March 31, 2005 to shareholders and warrant holders of record at March 15, 2005.