December 19, 2012 -- Markel Corporation ("Markel") and Alterra Capital Holdings Limited (“Alterra”) announced today that their respective boards of directors have each unanimously approved a definitive merger agreement. Under the terms of the agreement, the aggregate consideration for Alterra is approximately $3.13 billion at closing, each Alterra common share will be converted into the right to receive 0.04315 Markel common shares (with cash paid for fractional shares) plus a cash payment of $10. Following the merger, Markel’s existing shareholders will own approximately 69% of the combined company on a fully diluted basis, with Alterra’s shareholders owning approximately 31%. Completion of the transaction is contingent upon customary closing conditions, including shareholder and regulatory approvals, and it is expected to close in the first half of 2013.
Upon closing, two directors designated by Alterra’s current board will be added to the board of directors of Markel.
William Stovin, President and Chief Operating Officer of Markel International, the London based subsidiary of Markel Corporation comprising its international operations, said: “This is a major strategic step for the group, building on a number of earlier acquisitions we have made, including those in Canada, the Netherlands, Germany, Sweden and France. We are looking forward to working with the Alterra team to continue the development of their business within Markel and to grow successfully together.”
For further information, please contact:
Markel International 020 7953 6000
Michael Henman, Director of Communications
Notes to Editors:
• Alterra Capital writes insurance and reinsurance business in Bermuda through Alterra Bermuda, a Class 4 Insurer.
• In Europe non-Lloyd’s business is written from Dublin, through Alterra Europe, which also has a branch office in London
• Alterra at Lloyds operates through Syndicate 1400 for which it supplies 100% capacity. In addition it has a minority participation on Syndicate 2526 (20%). Syndicate 1400 has offices in London, Dublin and Zurich.
• In the United States its reinsurance operations are conducted through Alterra Re USA, based in Connecticut. The US Insurance operations are conducted through Alterra E&S and Alterra America for admitted business.
• In Latin America Alterra provides reinsurance through Alterra at Lloyds and Alterra Europe with offices in Rio de Janeiro, Buenos Aires and Bogota. In January 2012, Alterra established a reinsurance company located in Brazil.
• Alterra employs 500 people worldwide
• The planned acquisition is subject to various regulatory approvals and is expected to complete at in the first half of 2013
• Alterra , which is headquartered in Bermuda, was formed in May 2010 by the amalgamation of Max Capital, itself founded in July 1999, and Harbor Point, formed in December 2005 through the acquisition of Chubb Re
• Together, on the basis of 2011 figures, the combined group will have gross written premium of $4.2bn and shareholders’ equity of approximately $6bn
• Combined syndicate capacity at Lloyds will be $920m
Markel International is a subsidiary of Markel Corporation. Based in London and comprising the international operations of Markel Corporation, Markel International wrote gross premiums of $825 million in 2011. It has seven operating divisions and nine overseas offices writing business either through Markel Syndicate 3000 or Markel International Insurance Company Limited. Markel Corporation is a US listed business, capitalised at around $5.0 billion. In 2011, it wrote gross premiums of $2.3 billion. See www.markelintl.com