Markel Corp. says it has completed its $3 billion buy of AlterraCapital Holdings and has added two new business units.

CEO Alan I. Kirshner says joining Markel's existing specialty,wholesale and international units will be Markel Global Reinsuranceand Markel Global Insurance, for large commercial accounts.

He says the acquisition will “create a strong company in globalspecialty insurance and investments, with a demonstrated trackrecord of underwriting discipline in niche market segments andproven asset management strengths that should benefit all ourstakeholders.”

Kirshner tells broker and client partners the transition will be“seamless,” as Markel and Alterra have been “working diligently onintegration.”

“The people you dealt with yesterday are the people you willdeal with today,” he says in a statement.

Markel stood 7th among the largest E&S insurers in the U.S.in 2012, with $819.8 million in direct premiums written, accordingto SNL Financial. Alterra Capital was 29th, with $244.7 million ingross premiums.

Adding the two, Markel would become the fifth-largest E&Sinsurer in the U.S., with about $1.06 billion in premiums, saysSNL.

Meanwhile, Markel says first quarter net income increased 54.7percent to about $89.3 million, compared to the same time a yearago.

The combined ratio was 91 versus 100 for 2012's firstquarter.

Recent acquisitions of THOMCO and Essentia Insurance Co., whichunderwrites exclusively for classic-car insurance provider HagertyInsurance Agency, boosted overall gross written premiums in thefirst quarter to $743 million—a 15 percent increase compared to thesame time in 2012.

Specifically in North America, gross written premium increased10 percent as the insurer received rate increases of about 4percent on North America business.

During a conference call on earnings F. Michael Crowley,president and co-COO, says Markel's E&S segment improvedefficiency by reducing agency appointments, limiting access tocertain products and better educating agents “about what to submitand what not to submit based on Markel's appetite and success inour target product lines.”

Crowley says Markel continues a review its specialty productlines for those that need improvement in terms of rates.