JSM Financial: Max Capital Group Ltd and Harbor Point Ltd agree to merge.

March 4, 2010 - PRLog -- JSM Financial has learned of a merger agreement between two Bermuda based reinsurers. Max Capital Group Ltd and Harbor Point Ltd have agreed to merge in a deal that would see Harbor Point shareholders take a 52% stake in the combined company.

Under the terms of the definitive amalgamation agreement Harbor Point shareholders will receive 3.7769 of Max Capital common share for every share they own.

The privately held Harbor Point ltd is believed to have shareholder equity of around $1.9 billion, while the new firm is expected to have approximately $3 billion in equity.


JSM Financial believes the two reinsurers plan to declare a special cash dividend of $2.50 once the deal is closed which would amount to about $300 million in total.

Sources with knowledge of the deal indicate that after the merger the new united company will be renamed and rebranded as Altera Capital Holdings Ltd and will be listed on the Nasdaq.

Once the transaction is closed, the Chairman and Chief Executive Officer of Max Capital, W. Marston Becker will become President and Chief Executive Officer of Alterra and also serve as Director, JSM Financial was informed.

 
“The Max – Harbor Point transaction is a true merger of equals and brings together two strong and vibrant organizations with good balance at both the Board and senior management level, and robust balance sheets to create Alterra Capital Holdings Limited, a diversified and balanced global insurance company with much greater scale, capital, and financial strength.” JSM Financial believes Marty Becker was quoted as saying. “We have chosen Alterra, “high ground,” as our new brand name, as we believe the company will be a provider of superior security for our clients – a market leader at the pinnacle of our industry.”

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JSM Financial is an independent broker focused on the realization of superior returns from seed stage and early-stage equity investment and active partnerships with exceptional entrepreneurs building market-leading technology companies.