Just ahead of a merger, Bermuda-based Alterra reported a net loss of $51.8 million for the fourth quarter of 2012, citing heavy Sandy losses, but recorded an annual profit.The company’s fourth quarter loss of 54 cents per share, exceeded analysts’ estimates of 42 cents as a result of a $115 million hit due to October’s Superstorm Sandy. This compares to a net income of $30.9 million for the same quarter of 2011.Overall for the year, Alterra reported a net income of $143.8 million or $1.43 per share, compared to $65.3 million in 2011. Net operating return on average shareholders’ equity for the year ended December 31, 2012 was 4.2 percent.“Alterra’s fourth-quarter operating results were impacted heavily by Hurricane Sandy,” said Marty Becker, president and CEO of Alterra. “However, for the year, we are pleased to report net income of $143.8 million and growth in diluted book value per share of 7.5 percent, including dividends. Our 2012 results reflect the diversified underwriting strategy and risk management discipline that has served us well, particularly in years with major industry losses such as Sandy.”In December Alterra announced that it agreed to be acquired by US insurer Markel Corporation, a deal which is currently going through the shareholder and regulatory approval process. Alterra expects the deal to close in the first half of 2013.“We believe the combined company will establish itself as a leading specialty insurance and reinsurance company with greater capacity and a broader range of products and services, and will be better positioned for long-term success, including the creation of superior shareholder value,” said Mr Becker.Alterra wrote more property and casualty business during the quarter and over the year, with gross premium written up 9.7 percent and 3.6 percent, respectively. The company recorded a combined ratio of 119 percent for the quarter and 99.5 percent for the year.The company also recorded an income of $30.3 million from its Bermuda-based sidecar New Point Re IV, in which it has a 34.8 percent equity interest.Alterra’s book value at year end was $28.34, an increase of 7.5 percent including dividends.