Shareholders of Bermuda re/insurers IPC Holdings Ltd. and Max Capital Group Ltd. will today decide whether the two companies should merge.

The two companies finalised their amalgamation deal just over two months ago and shareholders will vote on it in simultaneous annual general meetings starting at 11 a.m. today.

If the shareholders back the deal, it would create the Island's sixth biggest global underwriter with shareholders' equity of $3 billion and total assets of around $10 billion.

The new company would be known as Max Capital Group Ltd. and will be headed by the current Max chief executive officer Marston Becker.

A third Bermuda insurance company, Validus Holdings Ltd. is urging IPC shareholders to reject the merger, as it is aiming to mount a hostile takeover of IPC.

The IPC board has rejected Validus' offer, which includes a $3.75 cash payment per share to shareholders, and is urging shareholders to vote for the merger.

If the amalgamation happens, then IPC shareholders will receive special dividend payments totalling $2.50, while Max shareholders will also receive a $1 per share dividend.

The battle for IPC has produced a blizzard of press releases and regulatory filings in recent weeks, with claims and counter-claims disputing who is making the superior offer.

Log on to The Royal Gazette website (www.theroyalgazette.com) today to find out how shareholders voted.