The long-awaited merger between Max Capital Group Ltd. and Harbor Point Ltd. to form Alterra Capital Holdings Ltd. has been successfully concluded, it was announced yesterday, writes Alex Wright.

The closure on the deal followed the receipt of all necessary regulatory approvals and approval by both companies' shareholders last month. The new company will have a capital base of approximately $3 billion.

Alterra will start trading on the Bermuda Stock Exchange and the Nasdaq Global Select market at the opening of business today. "We are very pleased to introduce Alterra as a formidable player in the global insurance and reinsurance marketplace," said Marston (Marty) Becker, president and CEO. "Alterra itself means 'high ground' — a fitting name for a company that will be a provider of superior security and a market leader at the pinnacle of our industry.

"With approximately $3 billion in capital, Alterra has the kind of strength and scale that will drive results — both by supporting our proven, profitable worldwide underwriting platforms, and by allowing more effective capital management at the enterprise level."

John Berger, CEO of reinsurance for Alterra and vice-chairman of the board of directors, said: "In addition to the financial strength and flexibility that comes from our larger capital base and more diversified and balanced book of business, Alterra's clients and shareholders should benefit greatly from the impressive set of underwriting and risk management resources we have assembled around the world.

"Our combined human capital is terrific. We believe we have every meaningful advantage a company in our business can have."

Michael O'Reilly, Alterra's non-executive chairman, said: "One of Alterra's greatest assets is the solid track record of its new management team.

"Alterra's clients, partners and shareholders can be confident that the company has the resources in place to consistently execute its business strategy, respond to market needs, and take full advantage of opportunities as they arise."

Mr. Becker said: "John and I would like to express our appreciation for the hard work of our employees — who have been instrumental not only in building our business lines to where they are today, but also in making Alterra come together for the benefit of all of our stakeholders.

"I believe both Max and Harbor Point had well-earned reputations for consistently providing superior and valuable service to business partners, and Alterra is committed to continuing, without interruption, these same high standards in the months and years ahead."

Max employs 100 of its 430-strong global workforce in Bermuda and Harbor Point has around 20 of its total staff of 70 working on the Island.

Pursuant to the terms of the amalgamation agreement, holders of Harbor Point shares have received a fixed exchange ratio of 3.7769 Max shares for each Harbor Point share. In addition, the Alterra board of directors expects to declare a special cash dividend of $2.50 per share to all shareholders of Alterra (approximately $300 million in total).

Alterra has commenced the processes necessary to change the names of its subsidiaries to include 'Alterra'. Until those processes are completed, its operating subsidiaries will continue to do business under their existing Max or Harbor Point names.