Alterra Capital Merges Its Bermuda Holdings

A.M. Best Co. said it has affirmed the financial strength rating A and issuer credit ratings ICR of "a" for the operating company, Alterra Bermuda Limited (Alterra Bermuda) (formerly Alterra Insurance Limited).

All ratings have a stable outlook, A.M. Best said, noting that the rating action also applies to Alterra Bermuda's affiliated operating companies.

A.M. Best added that partially offsetting the positive rating factors are the current pricing pressures that exist in the casualty insurance and reinsurance markets and the remote yet looming threat of inflation, which could take its toll on casualty writers, including Alterra, in the intermediate and longer term.

W. Marston (Marty) Becker, president and chief executive officer of Alterra, said, "The amalgamation of Alterra Insurance and Harbor Point Re to form Alterra Bermuda has produced a Bermuda underwriting company with $2.3 billion of shareholders' equity, based on pro-forma numbers at June 30, 2010."

He noted that the enhanced scale is "expected to provide superior security and improved efficiencies for our business partners, who will continue to be served by our existing insurance and reinsurance underwriting teams. We believe that the streamlining of our corporate structure is an important step toward maximizing the value of Alterra for the benefit of all stakeholders."

Alterra Capital Holdings Limited is a global enterprise dedicated to providing diversified specialty insurance and reinsurance products to corporations, public entities, property and casualty insurers, and life and health insurers, the company said.