Bermuda re/insurers Max Capital Group Ltd. and Harbor Point Ltd. said today their boards of directors had agreed to “a merger of equals” to create a new company.

Holders of Harbor Point common stock will each receive a fixed exchange ratio of 3.7769 Max common shares for each Harbor Point share.

The combined company will be renamed and rebranded as Alterra Capital Holdings Ltd. and will trade on the Nasdaq Global Select market under the symbol ALTE.

Max chairman and CEO Marston Becker will be president and CEO of Alterra and serve as a director, while Harbor Point CEO John Berger will be CEO of reinsurance of Alterra and vice-chairman of the board of directors.

“With capital of approximately $3 billion, in a market that values strength and size as a sign of franchise safety and sustainability, Alterra will be well positioned to take full advantage of profitable growth opportunities in the P&C insurance and reinsurance markets,” Mr. Becker said in a statement yesterday.

Both Max and Harbor Point intend for the board of the combined company to declare a special cash dividend of $2.50 per share following closing to all shareholders of the combined company.

Harbor Point shareholders will own approximately 52 percent of the combined company on a fully diluted basis, with Max shareholders owning approximately 48 percent.

* Full story in tomorrow’s business section.