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Alterra Agrees to Sell its US Contract Binding Authority Division
Hamilton, Bermuda – 12 July, 2011 - Alterra Capital Holdings Limited (NASDAQ: ALTE; BSX: ALTE.BH) announced today that its US excess and surplus lines carrier, Alterra Excess & Surplus Insurance Company (“Alterra E&S”), has executed a renewal rights and asset purchase agreement with Selective Insurance Company of America (“Selective”), a member of the Selective Insurance Group, Inc., in respect of the commercial excess and specialty lines business written under contract binding authority (“CBA”) by Alterra E&S’s contracted general agents.
Alterra E&S’s specialty personal lines business is not included as part of this transaction. Joe Mossbrook, the head of the CBA division of Alterra E&S (the “CBA division”), will join Selective and substantially all of the employees in the CBA division are expected to be offered employment with Selective. The transactions contemplated by the agreement, which are subject to certain closing conditions but no regulatory approvals, are expected to close in the third quarter of 2011. In 2010, the CBA division, excluding the specialty personal lines business, produced aggregate gross premiums written of $77 million.
W. Marston (Marty) Becker, President and Chief Executive Officer of Alterra, commented: “We are pleased to have reached an agreement with Selective. Although the CBA division produces a good book of business, we do not believe it is consistent with Alterra’s long term strategy. Our agreement with Selective recognizes the value of our CBA division and ensures its continued operations, which we considered of importance in negotiating the transaction.”
Steve Vaccaro, Chief Executive Officer of Alterra Specialty, Alterra’s US specialty insurance operation, commented: “We believe this transaction will represent a very nice transition for our CBA division and provide an attractive home and seamless transition for our employees and agents.”
About Alterra Capital Holdings Limited
Alterra Capital Holdings Limited is a global enterprise dedicated to providing diversified specialty insurance and reinsurance products to corporations, public entities, and property and casualty insurers.
Contacts
Susan Spivak Bernstein
Senior Vice President susan.spivak@alterra-bm.com 1-212-898-6640
Melissa Sheer or Peter Hill
Kekst and Company melissa-sheer@kekst.com or peter-hill@kekst.com 1-212-521-4800