Alterra Capital Holdings To Start Trading Today
Alterra Capital Holdings Limited began trading this morning [May 13] on the NASDAQ Global Select market under the symbol ALTE and on the Bermuda Stock Exchange under the symbol ALTE.BH.
Yesterday they announced the closing of a merger of equals between Max Capital Group Ltd. and Harbor Point Limited to form Alterra. The closing of the merger follows receipt of all necessary regulatory approvals, as well as approval of the transaction by the respective shareholders of Max and Harbor Point on April 29, 2010.
President and CEO Marty Becker said:
We are very pleased to introduce Alterra as a formidable player in the global insurance and reinsurance marketplace. 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.
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.”
Pursuant to the terms of the amalgamation agreement, holders of Harbor Point common shares have received a fixed exchange ratio of 3.7769 Max common shares for each Harbor Point common 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, operating subsidiaries will continue to do business under their existing Max or Harbor Point names, as applicable.
