Alterra Capital Holdings Ltd. announced on Friday that its board of directors declared a special dividend of $2.50 per share.

The dividend realises the promise made to shareholders of both Max Capital Group and Harbor Point Re before the two companies merged.

The total payout will be around $300 million which is payable on June 16, 2010 to shareholders of record as of June 2, 2010.

The dividend amounts to nearly 11.4 percent of Alterra's closing share price last Thursday of $21.98.