Alterra Capital Holdings Limited, the company formed by the merger of Max Capital Group and Harbor Point Re, has amalgamated its Bermuda operating subsidiaries.

The merging of the two units, Alterra Insurance Ltd. and Harbor Point Re Ltd., will create an entity known as Alterra Bermuda Ltd., which will write both insurance and reinsurance out of its Hamilton offices. Alterra Capital chief executive officer Marty Becker said "The amalgamation of Alterra Insurance and Harbor Point Re to form Alterra Bermuda has produced a Bermuda underwriting company with $2.3 billion of shareholders' equity, based on pro-forma numbers at June 30, 2010.

"This enhanced scale is expected to provide superior security and improved efficiencies for our business partners, who will continue to be served by our existing insurance and reinsurance underwriting teams.

"We believe that the streamlining of our corporate structure is an important step towards maximising the value of Alterra for the benefit of all stakeholders."

After the move was announced, ratings agency AM Best Co. affirmed Alterra's financial strength rating of A (excellent) and its stable outlook.

In its commentary, Best stated: "A single operating company in Bermuda is more efficient for the organisation and provides a larger base of capital for policyholders."