8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): November 2, 2010

Alterra Capital Holdings Limited

(Exact name of registrant as specified in its charter)

Bermuda	000-33047	98-0584464
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

Alterra House, 2 Front Street, Hamilton, Bermuda	HM 11
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (441) 295-8800

Not Applicable

Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On November 2, 2010, the Registrant issued a news release announcing financial results for the three and nine months ended September 30, 2010. In addition, on the same date, the Alterra Capital Holdings Limited Investor Financial Supplement for the quarter ended September 30, 2010 was made available on the Registrant’s website.

A copy of the news release and financial supplement are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, and are incorporated herein by reference.

In accordance with general instruction B.2 to Form 8-K, the information set forth in this Item 2.02 (including Exhibit 99.1 and Exhibit 99.2) shall be deemed “furnished” and not “filed” with the Securities and Exchange Commission for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended.

Item 8.01 Other Events.

On November 2, 2010, the Registrant issued a news release announcing the declaration by the Board of Directors of a dividend of $0.12 per share and the approval by the Board of Directors of an increase in the Registrant’s share repurchase plan by an additional $200.0 million resulting in an aggregate amount currently authorized under the share repurchase plan of $222.7 million. The news release is attached hereto as Exhibit 99.3 and incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1	News Release of Alterra Capital Holdings Limited, dated November 2, 2010, announcing financial results.
99.2	Investor Financial Supplement for the quarter ended September 30, 2010.
99.3	News Release of Alterra Capital Holdings Limited, dated November 2, 2010, announcing a dividend declaration and increase in share repurchase authorization.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Alterra Capital Holdings Limited
November 4, 2010	By:	/S/    PETER A. MINTON
	Name:	Peter A. Minton
	Title:	Executive Vice President and Chief Operating Officer

Exhibit Index

99.1	News Release of Alterra Capital Holdings Limited, dated November 2, 2010, announcing financial results.
99.2	Investor Financial Supplement for the quarter ended September 30, 2010.
99.3	News Release of Alterra Capital Holdings Limited, dated November 2, 2010, announcing a dividend declaration and increase in share repurchase authorization.

EX-99.1

Exhibit 99.1

ALTERRA CAPITAL REPORTS THIRD QUARTER 2010 RESULTS

Net Operating Income of $0.64 per Diluted Share

Book Value per Diluted Share Grows 5.4%

HAMILTON, BERMUDA, November 2, 2010—Alterra Capital Holdings Limited (NASDAQ: ALTE; BSX: ALTE.BH) (“Alterra”) today reported net income of $82.8 million, or $0.70 per diluted share, for the third quarter of 2010, compared to net income of $95.3 million, or $1.64 per diluted share, for the same quarter of 2009. Alterra, formerly known as Max Capital Group Ltd. (“Max”), was formed on May 12, 2010 by the merger of Max and Harbor Point Limited, a privately held company (“Harbor Point”).

Net operating income for the third quarter of 2010 was $76.0 million, or $0.64 per diluted share, compared to net operating income of $53.7 million, or $0.92 per diluted share, for the same quarter of 2009. Annualized net operating return on average shareholders’ equity for the third quarter of 2010 was 10.2%.

For the nine months ended September 30, 2010, Alterra reported net income of $222.7 million, or $2.50 per diluted share, compared to net income of $183.6 million, or $3.18 per diluted share, for the same period of 2009. Net operating income for the nine months ended September 30, 2010 was $175.5 million, or $1.97 per diluted share, compared to net operating income of $148.4 million, or $2.57 per diluted share, for the same period of 2009. Annualized net operating return on average shareholders’ equity for the nine months ended September 30, 2010 was 10.2%.

The results for Alterra include the results for Harbor Point and its subsidiaries from the date of the consummation of the merger on May 12, 2010. Comparative figures for 2009 represent the former Max results only. As a result, a comparison of Alterra’s gross premiums written from property and casualty underwriting and results of operations for the reinsurance segment for current and prior periods are not meaningful. Selected pro forma combined results of operations for periods prior to the merger for the reinsurance segment are provided in the third quarter financial supplement available on Alterra’s website at www.alterracap.com.

W. Marston (Marty) Becker, President and Chief Executive Officer of Alterra, said: “Alterra had a very solid quarter financially, and also operationally, with the Harbor Point merger integration proceeding as planned and now largely completed. Our balance sheet is very strong, and we are well positioned to respond to market opportunities as they arise.”

Mr. Becker added: “Our gross premiums written during the quarter were down on a pro forma basis, due in part to Alterra’s continued underwriting discipline in the face of a softening market, and to a related trend among primary companies to retain a greater share of business. Coupled with declining yields on invested assets, these factors added pressure to current operating income. We are pleased with the early results of our expansion into Latin America and the continued strong performance of our late 2008 Lloyd’s acquisition. Taken together with the quality underwriting teams that joined us as a result of our recent merger, we are strongly positioned both for today and for the future, with proven insurance and reinsurance capabilities in Bermuda, Dublin, London, and the U.S. – and now Latin America reinsurance as well.

“We remain focused and committed to prudent capital allocation as a means for delivering consistent shareholder value. During the quarter we continued our share repurchase program, buying back shares at an attractive discount to book value. For the year to date, we have returned over $435 million to shareholders in the form of dividends and share repurchases. We have also increased our capital flexibility this quarter by issuing long term debt at a favorable fixed rate of interest, reducing our allocation to short term variable rate borrowing. We believe this will prove beneficial in the future as interest rates inevitably rise from their current levels,” Mr. Becker concluded.

Third quarter 2010 results for Alterra include:

• Property and casualty gross premiums written of $323.9 million, representing an increase of $58.1 million, or 21.9%; net premiums written of $263.4 million, representing an increase of $80.9 million, or 44.3%; and net premiums earned of $341.2 million, representing an increase of $133.3 million, or 64.1%; each as compared to the same quarter of 2009. The percentage increases in these figures primarily reflect incremental growth from recent expansion initiatives, including the merger with Harbor Point - whose premiums are not included in the comparative 2009 results of operations - as well as from new operations in Latin America and new product offerings at Alterra at Lloyd’s. These increases were partially offset by decreases in previously existing operations where writings were reduced due to unattractive returns;

• Property and casualty combined ratio of 86.0% compared to 90.9% in the same quarter of 2009;

• Property catastrophe event and significant per-risk net losses of $14.1 million compared to no material property catastrophe losses in the same quarter of 2009;

• Net favorable development on prior years’ loss reserves of $36.4 million, or 10.6 combined ratio points, compared to $15.2 million, or 7.3 combined ratio points, in the same quarter of 2009;

• Net investment income of $59.7 million compared to $42.8 million in the same quarter of 2009, an increase of 39.5%; and

• Net operating income of $76.0 million, or $0.64 per diluted share, representing an annualized net operating return on average shareholders’ equity of 10.2%.

Gross premiums written from property and casualty underwriting for the third quarter of 2010 were $323.9 million, generated by the segments as follows: insurance - $70.3 million, a decrease of $10.8 million, or (13.3)%; reinsurance - $124.0 million, an increase of $29.9 million, or 31.8%; U.S. specialty - $71.9 million, an increase of $2.5 million, or 3.6%; and Alterra at Lloyd’s - $57.7 million, an increase of $36.6 million, or 173.5%. Gross premiums written included $30.2 million from our operations in Latin America, which started in the first quarter.

Segment combined ratios for the third quarter of 2010 were 56.5% for insurance, 91.1% for reinsurance, 95.4% for U.S. specialty and 90.4% for Alterra at Lloyd’s.

Results for the nine months ended September 30, 2010 include:

• Property and casualty gross premiums written of $1,092.3 million, representing an increase of $37.4 million, or 3.5%; net premiums written of $799.0 million, representing an increase of $121.3 million, or 17.9%; and net premiums earned of $827.2 million, representing an increase of $241.7 million, or 41.3%; each as compared to the same period of 2009. The percentage increases in these figures primarily reflect incremental growth from recent expansion initiatives, including the merger with Harbor Point - whose premiums are not included in the comparative 2009 results of operations - as well as from new operations in Latin America and new product offerings at Alterra at Lloyd’s. These increases were partially offset by decreases in previously existing operations where writings were reduced due to unattractive returns;

• Property and casualty combined ratio of 86.1% compared to 90.5% in the same period of 2009;

• Property catastrophe event and significant per-risk losses of $44.0 million compared to $3.4 million in the same period of 2009;

• Net favorable development on prior years’ loss reserves of $77.6 million, or 9.4 combined ratio points, compared to $47.5 million, or 8.1 combined ratio points, in the same period of 2009;

• Net investment income of $161.4 million compared to $125.1 million in the same period of 2009, an increase of 29.0%; and

• Net operating income of $175.5 million, or $1.97 per diluted share, representing an annualized net operating return on average shareholders’ equity of 10.2%.

Gross premiums written from property and casualty underwriting for the nine months ended September 30, 2010 were $1,092.3 million, generated by the segments as follows: insurance - $269.0 million, a decrease of $33.7 million, or (11.1)%; reinsurance - $398.4 million, a decrease of $23.9 million, or (5.7)%; U.S. specialty - $246.2 million, an increase of $26.9 million, or 12.3%; and Alterra at Lloyd’s - $178.7 million, an increase of $68.1 million, or 61.6%. There were no new contracts written within the life and annuity segment during the nine months ended September 30, 2010.

Segment combined ratios for the nine months ended September 30, 2010 were 72.7% for insurance, 88.7% for reinsurance, 96.9% for U.S. specialty and 82.3% for Alterra at Lloyd’s.

Balance Sheet

Total invested assets, including cash and cash equivalents, were $8.0 billion at September 30, 2010, an increase of $2.7 billion from December 31, 2009, primarily as a result of the merger. The credit quality of Alterra’s fixed maturities investment portfolio as of September 30, 2010 was high. As of September 30, 2010, 96.6% of the fixed maturities portfolio (by carrying value) was investment-grade, unchanged from December 31, 2009. As of September 30, 2010, the weighted average book yield of Alterra’s cash and fixed maturities portfolio was 3.23% and the weighted average duration was 4.1 years.

Net investment income for the third quarter of 2010 increased to $59.7 million from $42.8 million for the same quarter of 2009, and to $161.4 million from $125.1 million for the nine months ended September 30, 2010 and 2009, respectively. The increase in net investment income reflects the additional investment income from the Harbor Point investment portfolio since the consummation of the merger on May 12, 2010, and an increased allocation to higher-yielding fixed maturity securities.

Under the Board-approved share repurchase authorization, Alterra repurchased 2,845,356 of its common shares during the quarter ended September 30, 2010 at an average price of $19.00 per share for a total of $54.1 million. Share repurchases for the nine months ended September 30, 2010 were 5,052,349 common shares at an average price of $19.48 per share for a total of $98.4 million. As of September 30, 2010, $37.1 million remained under the Board-approved share repurchase authorization. On October 29, 2010, Alterra’s Rule 10b5-1 share repurchase plan expired by its terms. During October 2010, under the 10b5-1 plan, Alterra repurchased 699,900 common shares at an average price of $20.55 per share for a total of $14.4 million. Upon expiration of the 10b5-1 plan, $22.7 million remained available under the Board-approved share repurchase authorization.

Shareholders’ equity was $3,036.5 million as of September 30, 2010, an increase of 3.7% from June 30, 2010. Book value per diluted share as of September 30, 2010 was $25.88, an increase of 5.4% from June 30, 2010. Including the unrecognized change in fair value on Alterra’s held to maturity investment portfolio for the quarter ended September 30, 2010, the increase in book value per diluted share would have been 7.4%.

A copy of Alterra’s financial supplement for the third quarter will be available on Alterra’s website at www.alterracap.com shortly after the release of earnings.

Alterra will host a conference call on Wednesday, November 3, 2010 at 10:00am (EDT) to discuss its third quarter results with interested investors and shareholders. The conference call can be accessed via telephone by dialing 1-888-713-4218 (toll-free U.S.) or 1-617-213-4870 (international) and using access code 55954665. A live broadcast of the conference call will also be available through Alterra’s website at www.alterracap.com.

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.

Non-GAAP Financial Measures

In presenting Alterra’s results, management has included and discussed net operating income, net operating income per diluted share, annualized net operating return on average shareholders’ equity and diluted tangible book value per share. These measures are “non-GAAP financial measures” as defined in Regulation G. Management believes that these non-GAAP financial measures, which may be defined differently by other companies, allow for a more complete understanding of Alterra’s business. These measures, however, should not be viewed as a substitute for those determined in accordance with U.S. GAAP. The reconciliation of these measures to their respective most directly comparable U.S. GAAP financial measures is presented in the attached financial information in accordance with Regulation G.

Cautionary Note Regarding Forward-Looking Statements

This release may include forward-looking statements that reflect Alterra’s current views with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those suggested by such statements. For further information regarding cautionary statements and factors affecting Alterra’s future results, please refer to the most recent reports on Form 10-K and Form 10-Q and other documents filed by Alterra with the SEC. Alterra undertakes no obligation to update or revise publicly any forward-looking statement whether as a result of new information, future developments or otherwise.

ALTERRA CAPITAL HOLDINGS LIMITED

CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of United States Dollars, except per share and share amounts)

	September 30, 2010		December 31, 2009
	(unaudited)
ASSETS
Cash and cash equivalents	$	925,752	$	702,278
Fixed maturities, trading at fair value		243,158		228,696
Fixed maturities, available for sale at fair value		5,425,955		3,007,356
Fixed maturities, held to maturity at amortized cost (fair value $1,106,057)		954,623		1,005,947
Other investments, at fair value		411,275		318,073
Accrued interest income		73,622		57,215
Premiums receivable		664,603		567,301
Losses and benefits recoverable from reinsurers		976,819		1,001,373
Deferred acquisition costs		106,728		65,648
Prepaid reinsurance premiums		173,140		190,613
Trades pending settlement		24,364		76,031
Goodwill and intangible assets		60,670		48,686
Other assets		78,225		70,529
Total assets	$	10,118,934	$	7,339,746
LIABILITIES
Property and casualty losses	$	3,847,366	$	3,178,094
Life and annuity benefits		1,299,190		1,372,513
Deposit liabilities		147,212		152,629
Funds withheld from reinsurers		119,859		140,079
Unearned property and casualty premiums		1,015,831		628,161
Reinsurance balances payable		122,184		146,085
Accounts payable and accrued expenses		90,282		67,088
Senior notes		440,473		90,464
Total liabilities		7,082,397		5,775,113
SHAREHOLDERS’ EQUITY
Preferred shares (par value $1.00) 20,000,000 shares authorized; no shares issued or outstanding		—		—
Common shares (par value $1.00) 200,000,000 shares authorized; 115,898,860 (2009 - 55,867,125) shares issued and outstanding		115,899		55,867
Additional paid-in capital		2,113,732		752,309
Accumulated other comprehensive income		190,325		25,431
Retained earnings		616,581		731,026
Total shareholders’ equity		3,036,537		1,564,633
Total liabilities and shareholders’ equity	$	10,118,934	$	7,339,746
Book value per share	$	26.20	$	28.01
Diluted book value per share	$	25.88	$	27.36
Diluted tangible book value per share [a]	$	25.37	$	26.51
Diluted shares outstanding		117,321,004		57,178,458

[a] Non-Gaap measure as defined by Regulation G.

ALTERRA CAPITAL HOLDINGS LIMITED

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited)

(Expressed in thousands of United States Dollars, except per share and share amounts)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009
REVENUES
Gross premiums written	$	325,213		$	265,886		$	1,095,333		$	1,096,668
Reinsurance premiums ceded		(60,611	)		(83,290	)		(293,546	)		(377,338	)
Net premiums written	$	264,602		$	182,596		$	801,787		$	719,330
Earned premiums	$	436,244		$	329,869		$	1,132,964		$	993,871
Earned premiums ceded		(93,812	)		(121,853	)		(303,032	)		(366,788	)
Net premiums earned		342,432			208,016			829,932			627,083
Net investment income		59,711			42,830			161,378			125,073
Net realized and unrealized gains on investments		15,411			24,528			7,047			64,440
Total other-than-temporary impairment losses		(90	)		—			(1,955	)		(5,190	)
Portion of loss recognized in other comprehensive income (loss), before taxes		(61	)		(139	)		1,084			3,037
Net impairment losses recognized in earnings		(151	)		(139	)		(871	)		(2,153	)
Other income		1,327			819			1,946			3,099
Total revenues		418,730			276,054			999,432			817,542
LOSSES AND EXPENSES
Net losses and loss expenses		191,012			131,778			475,794			378,729
Claims and policy benefits		15,060			14,378			46,662			84,117
Acquisition costs		60,859			27,997			133,901			73,686
Interest expense		7,551			5,971			20,409			14,654
Net foreign exchange losses (gains)		3,353			406			267			(6,474	)
Merger and acquisition expenses		550			(41,350	)		(49,276	)		(31,342	)
General and administrative expenses		56,650			40,372			143,827			115,537
Total losses and expenses		335,035			179,552			771,584			628,907
INCOME BEFORE TAXES		83,695			96,502			227,848			188,635
Income tax expense		858			1,176			5,183			5,012
NET INCOME [a]		82,837			95,326			222,665			183,623
Change in net unrealized gains and losses on fixed maturities, net of tax		74,383			95,794			169,039			66,629
Foreign currency translation adjustment		13,224			(4,462	)		(4,145	)		20,372
COMPREHENSIVE INCOME [a]	$	170,444		$	186,658		$	387,559		$	270,624
Basic earnings per share	$	0.71		$	1.67		$	2.52		$	3.22
Diluted earnings per share	$	0.70		$	1.64		$	2.50		$	3.18
Net operating income per diluted share	$	0.64		$	0.92		$	1.97		$	2.57
Weighted average shares outstanding - basic		117,200,505			57,233,115			88,253,609			56,978,901
Weighted average shares outstanding - diluted		117,957,942			58,210,501			89,001,515			57,677,996

[a] Includes the results of Harbor Point Limited from May 12, 2010.

ALTERRA CAPITAL HOLDINGS LIMITED

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

(Expressed in thousands of United States Dollars)

	Nine Months Ended September 30
	2010			2009
Common shares
Balance, beginning of period	$	55,867		$	55,806
Issuance of common shares, net		65,084			1,529
Repurchase of shares		(5,052	)		(322	)
Balance, end of period		115,899			57,013
Additional paid-in capital
Balance, beginning of period		752,309			763,391
Issuance of common shares, net		1,418,214			457
Stock based compensation expense		36,600			16,124
Repurchase of shares		(93,391	)		(6,049	)
Balance, end of period		2,113,732			773,923
Accumulated other comprehensive income (loss)
Balance, beginning of period		25,431			(45,399	)
Holding gains on available for sale securities arising in period [a]		179,482			66,650
Net realized (gains) losses on available for sale securities included in net income [a]		(9,359	)		3,016
Portion of other-than-temporary impairment losses recognised in other comprehensive income [a]		(1,084	)		(3,037	)
Foreign currency translation adjustment		(4,145	)		20,372
Balance, end of period		190,325			41,602
Retained earnings
Balance, beginning of period		731,026			506,533
Net income		222,665			183,623
Dividends		(337,110	)		(16,020	)
Balance, end of period		616,581			674,136
Total shareholders’ equity	$	3,036,537		$	1,546,674

[a] Net of tax

ALTERRA CAPITAL HOLDINGS LIMITED

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(Expressed in thousands of United States Dollars)

	Nine Months Ended September 30
	2010			2009
OPERATING ACTIVITIES
Net income	$	222,665		$	183,623
Adjustments to reconcile net income to net cash provided by operating activities:
Stock based compensation		36,600			16,124
Amortization of premium on fixed maturities		10,973			2,503
Accretion of deposit liabilities		3,940			2,078
Net realized and unrealized gains on investments		(7,047	)		(64,440	)
Net impairment losses recognized in earnings		871			2,153
Negative goodwill gain		(95,788	)		—
Changes in:
Accrued interest income		(822	)		820
Premiums receivable		266,878			12,894
Losses and benefits recoverable from reinsurers		(9,975	)		(130,985	)
Deferred acquisition costs		(38,485	)		(13,645	)
Prepaid reinsurance premiums		10,865			(11,907	)
Other assets		3,407			(2,624	)
Property and casualty losses		(166,930	)		183,163
Life and annuity benefits		(24,819	)		508
Funds withheld from reinsurers		(20,220	)		(21,773	)
Unearned property and casualty premiums		12,092			92,046
Reinsurance balances payable		(28,025	)		(10,515	)
Accounts payable and accrued expenses		(7,167	)		9,828
Cash provided by operating activities		169,013			249,851
INVESTING ACTIVITIES
Purchases of available for sale securities		(1,752,420	)		(783,451	)
Sales of available for sale securities		892,465			175,465
Redemptions/maturities of available for sale securities		702,506			479,310
Purchases of trading securities		(55,812	)		(40,691	)
Sales of trading securities		14,097			28,887
Redemptions/maturities of trading securities		19,361			5,094
Purchases of held to maturity securities		(16,961	)		(33,647	)
Redemptions/maturities of held to maturity securities		23,599			—
Net purchases/sales of other investments		78,985			462,501
Acquisition of subsidiary, net of cash acquired		446,819			—
Cash provided by investing activities		352,639			293,468
FINANCING ACTIVITIES
Net proceeds from issuance of common shares		1,478			1,986
Repurchase of common shares		(98,443	)		(6,371	)
Net proceeds from issuance of senior notes		349,997			—
Net repayments of bank loans		(200,000	)		(375,000	)
Dividends paid		(335,560	)		(16,020	)
Additions to deposit liabilities		3,453			12,422
Payment of deposit liabilities		(12,747	)		(80,748	)
Cash used in financing activities		(291,822	)		(463,731	)
Effect of exchange rate changes on foreign currency cash and cash equivalents		(6,356	)		27,019
Net increase in cash and cash equivalents		223,474			106,607
Cash and cash equivalents, beginning of period		702,278			949,404
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	925,752		$	1,056,011
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

Interest paid totaled $5,394 and $4,943 for the nine months ended September 30, 2010 and 2009, respectively.

Income taxes paid totaled $4,068 and $310 for the nine months ended September 30, 2010 and 2009, respectively.

ALTERRA CAPITAL HOLDINGS LIMITED

SCHEDULE OF SUPPLEMENTAL UNDERWRITING DATA–THREE MONTHS ENDED SEPTEMBER 30, 2010 (Unaudited)

(Expressed in thousands of United States Dollars)

	Property & Casualty															Life & Annuity
Quarter Segment Information:	Insurance			Reinsurance			U.S. Specialty			Alterra at Lloyd’s			Total			Reinsurance			Corporate			Consolidated
Gross premiums written	$	70,271		$	124,004		$	71,871		$	57,734		$	323,880		$	1,333		$	—		$	325,213
Reinsurance premiums ceded		(34,075	)		(2,524	)		(21,513	)		(2,397	)		(60,509	)		(102	)		—			(60,611	)
Net premiums written	$	36,196		$	121,480		$	50,358		$	55,337		$	263,371		$	1,231		$	—		$	264,602
Earned premiums	$	96,777		$	213,510		$	79,200		$	45,424		$	434,911		$	1,333		$	—		$	436,244
Earned premiums ceded		(41,097	)		(15,533	)		(27,770	)		(9,310	)		(93,710	)		(102	)		—			(93,812	)
Net premiums earned		55,680			197,977			51,430			36,114			341,201			1,231			—			342,432
Net investment income		6,209			17,495			1,295			2,256			27,255			12,182			20,274			59,711
Net realized and unrealized gains on investments		188			197			30			883			1,298			3,321			10,792			15,411
Net impairment losses recognized in earnings		—			—			—			—			—			—			(151	)		(151	)
Other income		771			61			337			177			1,346			(43	)		24			1,327
Total revenues		62,848			215,730			53,092			39,430			371,100			16,691			30,939			418,730
Net losses and loss expenses		23,775			117,671			32,199			17,367			191,012			—			—			191,012
Claims and policy benefits		—			—			—			—			—			15,060			—			15,060
Acquisition costs		1,265			45,069			6,880			7,474			60,688			171			—			60,859
Interest expense		80			1,149			—			—			1,229			2,311			4,011			7,551
Net foreign exchange losses (gains)		—			1,478			—			2,089			3,567			—			(214	)		3,353
Merger and acquisition expenses		—			—			—			—			—			—			550			550
General and administrative expenses		6,435			17,580			9,975			7,806			41,796			577			14,277			56,650
Total losses and expenses		31,555			182,947			49,054			34,736			298,292			18,119			18,624			335,035
Income (loss) before taxes	$	31,293		$	32,783		$	4,038		$	4,694		$	72,808		$	(1,428	)	$	12,315		$	83,695
Loss Ratio [a]		42.7	%		59.4	%		62.6	%		48.1	%		56.0	%
Combined Ratio [b]		56.5	%		91.1	%		95.4	%		90.4	%		86.0	%
SCHEDULE OF SUPPLEMENTAL UNDERWRITING DATA–NINE MONTHS ENDED SEPTEMBER 30, 2010 (Unaudited) (Expressed in thousands of United States Dollars)
	Property & Casualty															Life & Annuity
Year to Date Segment Information [c]:	Insurance			Reinsurance			U.S. Specialty			Alterra at Lloyd’s			Total			Reinsurance			Corporate			Consolidated
Gross premiums written	$	269,004		$	398,433		$	246,245		$	178,653		$	1,092,335		$	2,998		$	—		$	1,095,333
Reinsurance premiums ceded		(118,908	)		(61,223	)		(77,592	)		(35,589	)		(293,312	)		(234	)		—			(293,546	)
Net premiums written	$	150,096		$	337,210		$	168,653		$	143,064		$	799,023		$	2,764		$	—		$	801,787
Earned premiums	$	293,692		$	483,982		$	229,122		$	123,170		$	1,129,966		$	2,998		$	—		$	1,132,964
Earned premiums ceded		(132,019	)		(50,545	)		(96,335	)		(23,899	)		(302,798	)		(234	)		—			(303,032	)
Net premiums earned		161,673			433,437			132,787			99,271			827,168			2,764			—			829,932
Net investment income		18,639			42,107			3,951			7,308			72,005			37,701			51,672			161,378
Net realized and unrealized gains (losses) on investments		391			418			29			(583	)		255			7,377			(585	)		7,047
Net impairment losses recognized in earnings		—			—			—			—			—			—			(871	)		(871	)
Other income		760			216			439			528			1,943			(71	)		74			1,946
Total revenues		181,463			476,178			137,206			106,524			901,371			47,771			50,290			999,432
Net losses and loss expenses		96,981			250,177			82,614			46,022			475,794			—			—			475,794
Claims and policy benefits		—			—			—			—			—			46,662			—			46,662
Acquisition costs		1,753			92,708			19,689			19,311			133,461			440			—			133,901
Interest expense		554			6,207			—			—			6,761			6,350			7,298			20,409
Net foreign exchange losses (gains)		—			1,967			—			(1,802	)		165			—			102			267
Merger and acquisition expenses		—			—			—			—			—			—			(49,276	)		(49,276	)
General and administrative expenses		18,833			41,359			26,433			16,345			102,970			1,876			38,981			143,827
Total losses and expenses		118,121			392,418			128,736			79,876			719,151			55,328			(2,895	)		771,584
Income (loss) before taxes	$	63,342		$	83,760		$	8,470		$	26,648		$	182,220		$	(7,557	)	$	53,185		$	227,848
Loss Ratio [a]		60.0	%		57.7	%		62.2	%		46.4	%		57.5	%
Combined Ratio [b]		72.7	%		88.7	%		96.9	%		82.3	%		86.1	%

[a] The loss ratio is calculated by dividing net losses and loss expenses by net premiums earned.

[b] The combined ratio is calculated by dividing the sum of net losses and loss expenses, acquisition costs and general and administrative expenses by net premiums earned.

[c] Includes the results of Harbor Point Limited from May 12, 2010.

ALTERRA CAPITAL HOLDINGS LIMITED

SCHEDULE OF SUPPLEMENTAL UNDERWRITING DATA–THREE MONTHS ENDED SEPTEMBER 30, 2009 (Unaudited)

(Expressed in thousands of United States Dollars)

	Property & Casualty															Life & Annuity
Quarter Segment Information:	Insurance			Reinsurance			U.S. Specialty			Alterra at Lloyd’s			Total			Reinsurance			Corporate			Consolidated
Gross premiums written	$	81,134		$	94,118		$	69,419		$	21,087		$	265,758		$	128		$	—		$	265,886
Reinsurance premiums ceded		(41,884	)		(11,106	)		(26,259	)		(4,015	)		(83,264	)		(26	)		—			(83,290	)
Net premiums written	$	39,250		$	83,012		$	43,160		$	17,072		$	182,494		$	102		$	—		$	182,596
Earned premiums	$	103,961		$	128,458		$	68,175		$	29,147		$	329,741		$	128		$	—		$	329,869
Earned premiums ceded		(54,814	)		(25,367	)		(37,074	)		(4,572	)		(121,827	)		(26	)		—			(121,853	)
Net premiums earned		49,147			103,091			31,101			24,575			207,914			102			—			208,016
Net investment income		5,898			10,404			1,461			1,749			19,512			13,143			10,175			42,830
Net realized and unrealized gains on investments		1,298			3,040			—			1,400			5,738			11,932			6,858			24,528
Net impairment losses recognized in earnings		—			—			—			—			—			—			(139	)		(139	)
Other income		91			—			52			(33	)		110			—			709			819
Total revenues		56,434			116,535			32,614			27,691			233,274			25,177			17,603			276,054
Net losses and loss expenses		31,756			68,728			21,266			10,028			131,778			—			—			131,778
Claims and policy benefits		—			—			—			—			—			14,378			—			14,378
Acquisition costs		369			20,299			1,926			5,250			27,844			153			—			27,997
Interest expense		—			1,706			—			—			1,706			2,349			1,916			5,971
Net foreign exchange losses		—			—			—			42			42			—			364			406
Merger and acquisition expenses		—			—			—			—			—			—			(41,350	)		(41,350	)
General and administrative expenses		7,281			8,857			7,804			5,423			29,365			829			10,178			40,372
Total losses and expenses		39,406			99,590			30,996			20,743			190,735			17,709			(28,892	)		179,552
Income before taxes	$	17,028		$	16,945		$	1,618		$	6,948		$	42,539		$	7,468		$	46,495		$	96,502
Loss Ratio [a]		64.6	%		66.7	%		68.4	%		40.8	%		63.4	%
Combined Ratio [b]		80.2	%		94.9	%		99.7	%		84.2	%		90.9	%
SCHEDULE OF SUPPLEMENTAL UNDERWRITING DATA–NINE MONTHS ENDED SEPTEMBER 30, 2009 (Unaudited) (Expressed in thousands of United States Dollars)
	Property & Casualty															Life & Annuity
Year to Date Segment Information:	Insurance			Reinsurance			U.S. Specialty			Alterra at Lloyd’s			Total			Reinsurance			Corporate			Consolidated
Gross premiums written	$	302,727		$	422,296		$	219,268		$	110,629		$	1,054,920		$	41,748		$	—		$	1,096,668
Reinsurance premiums ceded		(146,076	)		(80,574	)		(118,579	)		(31,963	)		(377,192	)		(146	)		—			(377,338	)
Net premiums written	$	156,651		$	341,722		$	100,689		$	78,666		$	677,728		$	41,602		$	—		$	719,330
Earned premiums	$	307,709		$	364,994		$	185,609		$	93,811		$	952,123		$	41,748		$	—		$	993,871
Earned premiums ceded		(157,710	)		(74,711	)		(111,682	)		(22,539	)		(366,642	)		(146	)		—			(366,788	)
Net premiums earned		149,999			290,283			73,927			71,272			585,481			41,602			—			627,083
Net investment income		16,861			29,607			4,549			3,216			54,233			37,626			33,214			125,073
Net realized and unrealized gains on investments		3,537			8,467			148			2,587			14,739			29,146			20,555			64,440
Net impairment losses recognized in earnings		—			—			—			—			—			—			(2,153	)		(2,153	)
Other income		1,238			12			272			475			1,997			—			1,102			3,099
Total revenues		171,635			328,369			78,896			77,550			656,450			108,374			52,718			817,542
Net losses and loss expenses		106,029			192,756			46,500			33,444			378,729			—			—			378,729
Claims and policy benefits		—			—			—			—			—			84,117			—			84,117
Acquisition costs		(1,503	)		53,496			5,873			14,797			72,663			1,023			—			73,686
Interest expense		—			2,400			—			—			2,400			2,803			9,451			14,654
Net foreign exchange gains		—			—			—			(5,124	)		(5,124	)		—			(1,350	)		(6,474	)
Merger and acquisition expenses		—			—			—			—			—			—			(31,342	)		(31,342	)
General and administrative expenses		17,825			23,604			21,195			15,856			78,480			2,180			34,877			115,537
Total losses and expenses		122,351			272,256			73,568			58,973			527,148			90,123			11,636			628,907
Income before taxes	$	49,284		$	56,113		$	5,328		$	18,577		$	129,302		$	18,251		$	41,082		$	188,635
Loss Ratio [a]		70.7	%		66.4	%		62.9	%		46.9	%		64.7	%
Combined Ratio [b]		81.6	%		93.0	%		99.5	%		89.9	%		90.5	%

[a] The loss ratio is calculated by dividing net losses and loss expenses by net premiums earned.

[b] The combined ratio is calculated by dividing the sum of net losses and loss expenses, acquisition costs and general and administrative expenses by net premiums earned.

ALTERRA CAPITAL HOLDINGS LIMITED

SCHEDULE OF SUPPLEMENTAL PREMIUM DATA–NINE MONTHS ENDED SEPTEMBER 30, 2010 (Unaudited)

(Expressed in thousands of United States Dollars)

		Nine Months Ended September 30, 2010					Movement on Prior Year Period			Nine Months Ended September 30, 2009
Gross Premiums Written by Type of Risk:		Gross Premiums Written		Percentage of Total Gross Premiums Written						Gross Premiums Written		Percentage of Total Gross Premiums Written
Property & Casualty:
Insurance:
Aviation	S	$	17,211		1.6	%		(43.2	%)	$	30,314		2.8	%
Excess Liability	L		71,230		6.5	%		(18.2	%)		87,084		7.9	%
Professional Liability	L		129,462		11.8	%		(4.0	%)		134,845		12.3	%
Property	S		51,101		4.7	%		1.2	%		50,484		4.6	%
			269,004		24.6	%		(11.1	%)		302,727		27.6	%
Reinsurance [a]:
Agriculture	S		30,628		2.8	%		(64.9	%)		87,338		8.0	%
Auto	S		10,317		0.9	%		n/a			—		—
Aviation	S		28,696		2.6	%		13.3	%		25,335		2.3	%
Credit/ Surety	L		1,078		0.1	%		n/a			—		—
General Casualty	L		30,699		2.8	%		31.2	%		23,404		2.1	%
Marine & Energy	S		17,930		1.6	%		21.8	%		14,722		1.3	%
Medical Malpractice	L		31,837		3.0	%		(43.5	%)		56,397		5.1	%
Other	S		2,264		0.2	%		(0.2	%)		2,268		0.2	%
Professional Liability	L		81,889		7.5	%		78.3	%		45,922		4.2	%
Property	S		141,850		13.0	%		58.6	%		89,414		8.2	%
Whole Account	S/L		4,703		0.4	%		(44.7	%)		8,509		0.8	%
Workers’ Compensation	L		16,542		1.5	%		(76.0	%)		68,987		6.3	%
			398,433		36.4	%		(5.7	%)		422,296		38.5	%
U.S. Specialty:
General Liability	L		76,205		7.0	%		10.4	%		69,026		6.3	%
Marine	S		49,696		4.5	%		8.2	%		45,917		4.2	%
Professional Liability	L		9,526		0.8	%		n/a			—		—
Property	S		110,818		10.1	%		6.2	%		104,325		9.5	%
			246,245		22.4	%		12.3	%		219,268		20.0	%
Alterra at Lloyd’s:
Accident & Health	S		25,351		2.3	%		18.7	%		21,357		2.0	%
Aviation	S		10,914		1.0	%		n/a			—		—
Financial Institutions	L		19,064		1.7	%		3.7	%		18,376		1.7	%
International Casualty	L		28,330		2.6	%		n/a			—		—
Professional Liability	L		15,387		1.4	%		5.4	%		14,599		1.3	%
Property	S		79,607		7.3	%		41.4	%		56,297		5.1	%
			178,653		16.3	%		61.5	%		110,629		10.1	%
Aggregate Property & Casualty		$	1,092,335		99.7	%		3.5	%	$	1,054,920		96.2	%
Life & Annuity:
Annuity		$	6		0.0	%		n/a		$	—		—
Life			2,992		0.3	%		(92.8	%)		41,748		3.8	%
Aggregate Life & Annuity		$	2,998		0.3	%		(92.8	%)	$	41,748		3.8	%
Aggregate Property & Casualty and Life & Annuity		$	1,095,333		100.0	%		(0.1	%)	$	1,096,668		100.0	%
S = Short tail lines		$	578,735		53.0	%				$	532,026		50.4	%
L = Long tail lines			513,600		47.0	%					522,894		49.6	%
Aggregate Property & Casualty		$	1,092,335							$	1,054,920

[a] Includes the results of Harbor Point Limited from May 12, 2010.

ALTERRA CAPITAL HOLDINGS LIMITED

NON-GAAP FINANCIAL MEASURE RECONCILIATIONS (Unaudited)

Net Operating Income and Net Operating Income per Diluted Share

(Expressed in thousands of United States Dollars, except per share and share amounts)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009
Net income before tax	$	83,695		$	96,502		$	227,848		$	188,635
Net realized and unrealized (gains) losses on non-hedge fund investments, before tax [a]		(10,440	)		(1,189	)		2,692			(109	)
Foreign exchange losses (gains), before tax		3,353			406			267			(6,474	)
Merger and acquisition expenses, before tax		550			(41,350	)		(49,276	)		(31,342	)
Net operating income before tax	$	77,158		$	54,369		$	181,531		$	150,710
Net income	$	82,837		$	95,326		$	222,665		$	183,623
Net realized and unrealized (gains) losses on non-hedge fund investments, net of tax [a]		(10,104	)		(711	)		2,672			1,166
Foreign exchange losses (gains), net of tax		2,758			395			780			(5,043	)
Merger and acquisition expenses, net of tax		550			(41,350	)		(50,621	)		(31,342	)
Net operating income	$	76,041		$	53,660		$	175,496		$	148,404
Net income per diluted share	$	0.70		$	1.64		$	2.50		$	3.18
Net realized and unrealized (gains) losses on non-hedge fund investments, net of tax [a]		(0.08	)		(0.01	)		0.03			0.02
Foreign exchange losses (gains), net of tax		0.02			0.01			0.01			(0.09	)
Merger and acquisition expenses, net of tax		—			(0.72	)		(0.57	)		(0.54	)
Net operating income per diluted share	$	0.64		$	0.92		$	1.97		$	2.57
Weighted average shares outstanding - basic		117,200,505			57,233,115			88,253,609			56,978,901
Weighted average shares outstanding - diluted		117,957,942			58,210,501			89,001,515			57,677,996

[a] Net realized and unrealized (gains) losses on non-hedge fund investments includes realized and unrealized (gains) losses on trading securities, realised (gains) losses on available for sale securities, net impairment losses recognized in earnings, earnings from equity method investments and changes in fair value of investment derivatives, catastrophe bonds and structured deposits.

Annualized Net Operating Return on Average Shareholders’ Equity

(Expressed in thousands of United States Dollars)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009
Net income	$	82,837		$	95,326		$	222,665		$	183,623
Annualized net income		331,348			381,304			296,887			244,831
Net operating income	$	76,041		$	53,660		$	175,496		$	148,404
Annualized net operating income		304,164			214,640			233,995			197,872
Average shareholders’ equity [b]	$	2,981,752		$	1,455,072		$	2,297,438		$	1,346,611
Annualized return on average shareholders’ equity		11.1	%		26.2	%		12.9	%		18.2	%
Annualized net operating return on average shareholders’ equity		10.2	%		14.8	%		10.2	%		14.7	%

[b] Average shareholders’ equity is computed as the average of the quarterly shareholders’ equity balances. The average for the nine months ended September 30, 2010 has been weighted to include Harbor Point Limited from May 12, 2010.

Diluted Tangible Book Value Per Share

(Expressed in thousands of United States Dollars, except per share and share amounts)

	September 30, 2010			December 31, 2009
Shareholders’ equity	$	3,036,537		$	1,564,633
Goodwill and intangible assets		(60,670	)		(48,686	)
Tangible book value	$	2,975,867		$	1,515,947
Diluted shares outstanding		117,321,004			57,178,458
Diluted tangible book value per share	$	25.37		$	26.51

ALTERRA CAPITAL HOLDINGS LIMITED

SCHEDULE OF SUPPLEMENTAL INVESTMENT DATA–SEPTEMBER 30, 2010 (Unaudited)

(Expressed in thousands of United States Dollars)

Type of Investment	As of September 30, 2010		Investment Distribution			As of December 31, 2009		Investment Distribution
Cash and cash equivalents	$	925,752		11.6	%	$	702,278		13.4	%
U.S. government and agencies		1,049,245		13.2	%		525,427		10.0	%
Non-U.S. governments		81,878		1.0	%		82,027		1.5	%
Corporate securities		2,766,645		34.7	%		1,375,999		26.2	%
Municipal securities		226,946		2.9	%		83,658		1.6	%
Asset-backed securities		82,982		1.0	%		102,006		1.9	%
Residential mortgage-backed securities		1,112,602		14.0	%		763,974		14.5	%
Commercial mortgage-backed securities		348,815		4.4	%		302,961		5.8	%
Fixed maturities at fair value	$	5,669,113		71.2	%	$	3,236,052		61.5	%
U.S. government and agencies	$	22,690		0.3	%	$	14,050		0.3	%
Non-U.S. governments		549,238		6.9	%		573,250		10.9	%
Corporate securities		381,695		4.8	%		418,647		7.9	%
Asset-backed securities		1,000		0.0	%		—		0.0	%
Fixed maturities at amortized cost	$	954,623		12.0	%	$	1,005,947		19.1	%
Other investments	$	411,275		5.2	%	$	318,073		6.0	%
Total invested assets	$	7,960,763		100.0	%	$	5,262,350		100.0	%
Credit Rating	As of September  30, 2010		Ratings Distribution			As of December  31, 2009		Ratings Distribution
U.S. government and agencies [a]	$	2,064,495		31.2	%	$	1,214,895		28.6	%
AAA		1,155,082		17.4	%		720,364		17.0	%
AA		634,250		9.6	%		325,997		7.7	%
A		1,364,226		20.6	%		731,723		17.3	%
BBB		227,276		3.4	%		100,841		2.4	%
BB		33,378		0.5	%		34,781		0.8	%
B or lower		190,406		2.9	%		107,451		2.5	%
Fixed maturities at fair value	$	5,669,113		85.6	%	$	3,236,052		76.3	%
U.S. government and agencies	$	22,690		0.3	%	$	14,050		0.3	%
AAA		654,700		9.9	%		717,954		16.9	%
AA		113,634		1.7	%		101,675		2.4	%
A		149,422		2.3	%		158,141		3.7	%
BBB		12,749		0.2	%		12,672		0.3	%
BB		—		—			—		—
B or lower		1,428		0.0	%		1,455		0.1	%
Fixed maturities at amortized cost	$	954,623		14.4	%	$	1,005,947		23.7	%
Total fixed maturities	$	6,623,736		100.0	%	$	4,241,999		100.0	%

[a] Included within U.S. government and agencies are agency-issued residential mortgage-backed securities with a fair value of $1,015,250 (December 31, 2009: $689,468)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009
Net investment income	$	59,711		$	42,830		$	161,378		$	125,073
Realized and unrealized gains (losses) on trading fixed maturities		883			1,400			(583	)		2,587
Net realized gains (losses) on available for sale fixed maturities		6,395			(655	)		9,658			(1,348	)
Change in fair value of hedge funds		4,820			23,200			8,868			62,178
Change in fair value of non-hedge fund other investments		3,313			583			(10,896	)		1,023
Net realized and unrealized gains on investments	$	15,411		$	24,528		$	7,047		$	64,440
Net impairment losses recognized in earnings	$	(151	)	$	(139	)	$	(871	)	$	(2,153	)

Contacts
Susan Spivak Bernstein Senior Vice President susan.spivak@alterra-bm.com 1-212-898-6640	Roanne Kulakoff or Peter Hill Kekst and Company roanne-kulakoff@kekst.com peter-hill@kekst.com 1-212-521-4800

EX-99.2

Exhibit 99.2

ALTERRA CAPITAL HOLDINGS LIMITED

Investor Financial Supplement

Third Quarter 2010

(Unaudited)

This supplement is for information purposes only. It should be read in conjunction with documents filed by Alterra Capital Holdings Limited with the U.S. Securities and Exchange Commission pursuant to the Securities Exchange Act 1934.

Alterra Capital Holdings Limited

Investors:

Susan Spivak Bernstein, +1-212-898-6640

or

Media:

Kekst and Company

Roanne Kulakoff or Peter Hill, +1-212-521-4800

ALTERRA CAPITAL HOLDINGS LIMITED

FINANCIAL SUPPLEMENT TABLE OF CONTENTS

	Page
Financial Highlights		4
Consolidated Balance Sheets		5
Consolidated Statements of Income - Quarterly		6
Consolidated Statements of Income - Year to Date		7
Segment Data and Ratios - Quarterly		8
Gross Premiums Written by Line of Business - Quarterly		16
Segment Data and Ratios - Year to Date		18
Gross Premiums Written by Line of Business - Year to Date		25
Amalgamation with Harbor Point - Purchase Price		26
Investment Portfolio		27
Shareholder Return Analysis		30
Earnings Per Share Information		31
Operating Income Reconciliation		32
Book Value per Share		33
Regulation G		34
Pro forma Consolidated Statements of Income		35

ALTERRA CAPITAL HOLDINGS LIMITED

Cautionary note regarding forward-looking information

This financial supplement may include forward-looking statements that reflect Alterra’s current views with respect to future events and financial performance. Statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “anticipate,” “will,” “may” and similar statements of a future or forward-looking nature identify forward-looking statements. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and you should not place undue reliance on any such statements.

Alterra believes that these factors include, but are not limited to, the following: (1) the adequacy of loss reserves and the need to adjust such reserves as claims develop over time; (2) the failure of any of the loss limitation methods employed; (3) the effects of emerging claims and coverage issues; (4) changes in general economic conditions, including changes in capital and credit markets; (5) the effect of competition and cyclical trends, including with respect to demand and pricing in the insurance and reinsurance markets; (6) any lowering or loss of financial ratings; (7) the occurrence of natural or man-made catastrophic events with a frequency or severity exceeding expectations; (8) the loss of business provided to Alterra by its major brokers; (9) the effect on Alterra’s investment portfolio of changing financial market conditions including inflation, interest rates, liquidity and other factors; (10) tax and regulatory changes and conditions; (11) the integration of Harbor Point Limited or new business ventures Alterra may enter into; and (12) retention of key personnel, as well as management’s response to any of the aforementioned factors.

The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in Alterra’s most recent reports on Form 10-K and Form 10-Q and other documents on file with the U.S. Securities and Exchange Commission. Any forward-looking statements made in this financial supplement are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by Alterra will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Alterra or its business or operations. Alterra undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

3

ALTERRA CAPITAL HOLDINGS LIMITED

FINANCIAL HIGHLIGHTS

(Expressed in thousands of United States Dollars, except per share and share amounts)

	For The Quarters Ended						For The Nine Months Ended
	September 30, 2010			September 30, 2009			September 30, 2010			September 30, 2009			Previous Year  Quarter Change			Previous Year to  Date Change
HIGHLIGHTS
Net income	$	82,837		$	95,326		$	222,665		$	183,623			(13.1	%)		21.3	%
Net operating income [a]		76,041			53,660			175,496			148,404			41.7	%		18.3	%
Operating cashflow		(4,768	)		197,556			169,013			249,851			(102.4	%)		(32.4	%)
Gross premiums written		325,213			265,886			1,095,333			1,096,668			22.3	%		(0.1	%)
Net premiums earned		342,432			208,016			829,932			627,083			64.6	%		32.3	%
Total assets		10,118,934			7,428,746			10,118,934			7,428,746			36.2	%		36.2	%
Total shareholders’ equity		3,036,537			1,546,674			3,036,537			1,546,674			96.3	%		96.3	%
PER SHARE
Basic earnings per share
Net income	$	0.71		$	1.67		$	2.52		$	3.22
Net operating income [a]		0.65			0.95			1.99			2.61
Diluted earnings per share
Net income	$	0.70		$	1.64		$	2.50		$	3.18
Net operating income [a]		0.64			0.92			1.97			2.57
Weighted average shares outstanding - basic		117,200,505			57,233,115			88,253,609			56,978,901
Weighted average shares outstanding - diluted		117,957,942			58,210,501			89,001,515			57,677,996
Book value per common share [b]	$	26.20		$	27.13		$	26.20		$	27.13			(3.4	%)		(3.4	%)
Diluted book value per share (treasury stock method) [b]		25.88			26.54			25.88		$	26.54			(2.5	%)		(2.5	%)
Diluted tangible book value per share (treasury stock method) [b]		25.37			25.85			25.37		$	25.85			(1.8	%)		(1.8	%)
RATIOS
Annualized return on average shareholders’ equity [c]		11.1	%		26.2	%		12.9	%		18.2	%
Annualized net operating return on average shareholders’ equity [c]		10.2	%		14.8	%		10.2	%		14.7	%
Loss ratio [d]		56.0	%		63.4	%		57.5	%		64.7	%
Acquisition cost ratio [d]		17.8	%		13.4	%		16.1	%		12.4	%
General and administrative expense ratio [d]		12.2	%		14.1	%		12.5	%		13.4	%
Combined ratio [d]		86.0	%		90.9	%		86.1	%		90.5	%

[a] Net operating income represents net income excluding, as applicable, after-tax net realized and unrealized gains and losses on non-hedge fund investments, after-tax net foreign exchange gains or losses, and after-tax merger and acquisition expenses.

[b] For detailed calculations see page 33.

[c] For detailed calculations see page 30.

[d] For property and casualty business only.

4

ALTERRA CAPITAL HOLDINGS LIMITED

CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of United States Dollars, except per share and share amounts)

	Sept. 30, 2010			June 30, 2010			Mar. 31, 2010			Dec. 31, 2009			Sept. 30, 2009			Sept. 30, 2008
	(Unaudited)			(Unaudited)			(Unaudited)						(Unaudited)			(Unaudited)
ASSETS
Cash and cash equivalents	$	925,752		$	741,684		$	690,246		$	702,278		$	1,056,011		$	652,929
Fixed maturities, trading, at fair value		243,158			230,251			219,332			228,696			74,337			—
Fixed maturities, available for sale, at fair value		5,425,955			5,451,969			3,158,131			3,007,356			2,872,146			3,410,672
Fixed maturities, held to maturity, at amortized cost		954,623			871,651			954,696			1,005,947			1,026,244			—
Other investments, at fair value		411,275			436,757			325,359			318,073			390,972			930,315
Accrued interest income		73,622			67,561			51,906			57,215			52,145			47,639
Premiums receivable		664,603			780,025			617,560			567,301			546,195			505,260
Losses and benefits recoverable from reinsurers		976,819			962,442			1,023,224			1,001,373			985,614			716,186
Deferred acquisition costs		106,728			89,881			72,195			65,648			66,451			51,568
Prepaid reinsurance premiums		173,140			207,102			232,947			190,613			206,924			180,322
Trades pending settlement		24,364			—			—			76,031			38,217			62,384
Goodwill and intangible assets		60,670			60,670			48,686			48,686			40,488			32,375
Other assets		78,225			74,943			79,924			70,529			73,002			49,283
Total assets	$	10,118,934		$	9,974,936		$	7,474,206		$	7,339,746		$	7,428,746		$	6,638,933
LIABILITIES
Property and casualty losses	$	3,847,366		$	3,772,622		$	3,220,357		$	3,178,094		$	3,159,156		$	2,568,020
Life and annuity benefits		1,299,190			1,209,031			1,306,916			1,372,513			1,415,836			1,222,016
Deposit liabilities		147,212			147,727			149,028			152,629			152,638			219,524
Funds withheld from reinsurers		119,859			120,324			138,984			140,079			142,384			158,957
Unearned property and casualty premiums		1,015,831			1,090,323			690,013			628,161			676,342			557,845
Reinsurance balances payable		122,184			295,979			168,329			146,085			151,615			147,579
Accounts payable and accrued expenses		90,282			81,846			61,955			67,088			92,722			95,713
Trades pending settlement		—			39,641			35,033			—			—			—
Bank loans		—			200,000			—			—			—			295,000
Senior notes		440,473			90,476			90,475			90,464			91,379			99,797
Total liabilities		7,082,397			7,047,969			5,861,090			5,775,113			5,882,072			5,364,451
SHAREHOLDERS’ EQUITY
Preferred shares (par value $1.00) 20,000,000 shares authorized; no shares issued or outstanding		—			—			—			—			—			—
Common shares (par value $1.00) 200,000,000 shares authorized; 115,898,860 shares issued and outstanding		115,899			118,643			56,980			55,867			57,013			55,970
Additional paid-in capital		2,113,732			2,157,700			744,466			752,309			773,923			759,478
Accumulated other comprehensive income (loss)		190,325			102,718			49,822			25,431			41,602			(146,749	)
Retained earnings		616,581			547,906			761,848			731,026			674,136			605,783
Total shareholders’ equity		3,036,537			2,926,967			1,613,116			1,564,633			1,546,674			1,274,482
Total liabilities and shareholders’ equity	$	10,118,934		$	9,974,936		$	7,474,206		$	7,339,746		$	7,428,746		$	6,638,933
Book value per share	$	26.20		$	24.67		$	28.31		$	28.01		$	27.13		$	22.77
Diluted book value per share (treasury stock method)	$	25.88		$	24.55		$	27.86		$	27.36		$	26.54		$	21.88
Diluted tangible book value per share (treasury stock method)	$	25.37		$	24.04		$	27.02		$	26.51		$	25.85		$	21.32
Debt-to-capital ratio [a]		12.7	%		9.0	%		5.3	%		5.5	%		5.6	%		10.5	%

[a] Calculated as debt, being bank loans (excluding swap loan) and senior notes, divided by shareholders’ equity plus debt.

5

ALTERRA CAPITAL HOLDINGS LIMITED

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - QUARTERLY (Unaudited)

(Expressed in thousands of United States Dollars, except per share and share amounts)

	FOR THE QUARTERS ENDED
	Sept. 30, 2010			June 30, 2010 [f]			Mar. 31, 2010			Dec. 31, 2009			Sept. 30, 2009			Sept. 30, 2008
REVENUES
Gross premiums written	$	325,213		$	398,981		$	371,139		$	278,333		$	265,886		$	206,260
Reinsurance premiums ceded		(60,611	)		(79,715	)		(153,220	)		(103,143	)		(83,290	)		(96,061	)
Net premiums written	$	264,602		$	319,266		$	217,919		$	175,190		$	182,596		$	110,199
Earned premiums	$	436,244		$	391,723		$	304,997		$	325,078		$	329,869		$	238,378
Earned premiums ceded		(93,812	)		(98,463	)		(110,757	)		(117,805	)		(121,853	)		(96,789	)
Net premiums earned		342,432			293,260			194,240			207,273			208,016			141,589
Net investment income		59,711			53,277			48,390			44,668			42,830			45,265
Net realized and unrealized gains (losses) on investments		15,411			(14,786	)		6,422			17,325			24,528			(162,549	)
Total other-than-temporary impairment losses		(90	)		(1,167	)		(698	)		(125	)		—			(13,757	)
Portion of loss recognized in other comprehensive income (loss) before taxes		(61	)		867			278			(800	)		(139	)		—
Net impairment losses recognized in earnings		(151	)		(300	)		(420	)		(925	)		(139	)		(13,757	)
Net realized gain on retirement of senior notes		—			—			—			111			—			—
Other income		1,327			275			344			(196	)		819			(423	)
Total revenues		418,730			331,726			248,976			268,256			276,054			10,125
LOSSES AND EXPENSES
Net losses and loss expenses		191,012			159,817			124,965			114,870			131,778			106,834
Claims and policy benefits		15,060			13,943			17,659			16,976			14,378			14,000
Acquisition costs		60,859			48,798			24,244			23,188			27,997			13,896
Interest expense		7,551			7,916			4,942			6,685			5,971			4,501
Net foreign exchange losses (gains)		3,353			(634	)		(2,452	)		702			406			1,971
Merger and acquisition expenses		550			(54,570	)		4,744			(224	)		(41,350	)		(500	)
General and administrative expenses		56,650			50,649			36,528			38,458			40,372			31,837
Total losses and expenses		335,035			225,919			210,630			200,655			179,552			172,539
INCOME (LOSS) BEFORE TAXES		83,695			105,807			38,346			67,601			96,502			(162,414	)
Income tax expense		858			2,360			1,965			5,009			1,176			773
NET INCOME (LOSS)		82,837			103,447			36,381			62,592			95,326			(163,187	)
Change in net unrealized gains and losses on fixed maturities securities, net of tax		74,383			60,525			34,131			(16,085	)		95,794			(40,127	)
Foreign currency translation adjustment		13,224			(7,629	)		(9,740	)		(86	)		(4,462	)		(9,116	)
COMPREHENSIVE INCOME (LOSS)	$	170,444		$	156,343		$	60,772		$	46,421		$	186,658		$	(212,430	)
KEY RATIOS/PER SHARE DATA
Loss ratio [a]		56.0	%		54.6	%		64.6	%		55.9	%		63.4	%		75.5	%
Acquisition cost ratio [b]		17.8	%		16.6	%		12.5	%		11.1	%		13.4	%		9.7	%
General and administrative expense ratio [c]		12.2	%		12.1	%		13.4	%		14.2	%		14.1	%		13.8	%
Combined ratio		86.0	%		83.3	%		90.5	%		81.2	%		90.9	%		99.0	%
Basic earnings per share	$	0.71		$	1.14		$	0.64		$	1.10		$	1.67		$	(2.89	)
Diluted earnings per share	$	0.70		$	1.13		$	0.63		$	1.08		$	1.64		$	(2.89	)
Net operating income per share - diluted [d]	$	0.64		$	0.64		$	0.71		$	1.04		$	0.92		$	(2.57	)
Annualized ROAE [e]		11.1	%		17.8	%		9.2	%		16.1	%		26.2	%		(47.2	%)
Annualized Net Operating ROAE [e]		10.2	%		10.1	%		10.2	%		15.5	%		14.8	%		(41.9	%)

[a] The loss ratio is calculated by dividing net losses and loss expenses by net premiums earned for the property & casualty business

[b] The acquisition cost ratio is calculated by dividing acquisition costs by net premiums earned for the property & casualty business

[c] The general and administrative expense ratio is calculated by dividing general and administrative expenses by net premiums earned for the property & casualty business

[d] See page 32 for calculation of net operating income per share - diluted.

[e] See page 30 for calculation of annualized return on average shareholders’ equity (ROAE) and annualized net operating ROAE

[f] Includes the results for Harbor Point Limited (“Harbor Point”) from May 12, 2010.

6

ALTERRA CAPITAL HOLDINGS LIMITED

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - YEAR TO DATE AND PRIOR YEARS (Unaudited)

(Expressed in thousands of United States Dollars, except per share and share amounts)

	NINE MONTHS ENDED									YEAR ENDED
	Sept. 30, 2010 [e]			Sept. 30, 2009			Sept. 30, 2008			Dec. 31, 2009			Dec. 31, 2008
REVENUES
Gross premiums written	$	1,095,333		$	1,096,668		$	882,186		$	1,375,001		$	1,254,250
Reinsurance premiums ceded		(293,546	)		(377,338	)		(299,851	)		(480,481	)		(414,047	)
Net premiums written	$	801,787		$	719,330		$	582,335		$	894,520		$	840,203
Earned premiums	$	1,132,964		$	993,871		$	760,676		$	1,318,949		$	1,170,248
Earned premiums ceded		(303,032	)		(366,788	)		(248,665	)		(484,593	)		(356,738	)
Net premiums earned		829,932			627,083			512,011			834,356			813,510
Net investment income		161,378			125,073			137,398			169,741			181,624
Net realized and unrealized gains (losses) on investments		7,047			64,440			(146,014	)		81,765			(234,965	)
Total other-than-temporary impairment losses		(1,955	)		(5,190	)		(16,887	)		(5,315	)		(16,887	)
Portion of loss recognized in other comprehensive income (loss) before taxes		1,084			3,037			—			2,237			—
Net impairment losses recognized in earnings		(871	)		(2,153	)		(16,887	)		(3,078	)		(16,887	)
Net realized gain on retirement of senior notes		—			—			—			111			2,245
Other income		1,946			3,099			1,001			2,903			1,458
Total revenues		999,432			817,542			487,509			1,085,798			746,985
LOSSES AND EXPENSES
Net losses and loss expenses		475,794			378,729			278,585			493,599			393,745
Claims and policy benefits		46,662			84,117			137,175			101,093			301,526
Acquisition costs		133,901			73,686			35,743			96,874			52,379
Interest expense		20,409			14,654			20,547			21,339			36,089
Net foreign exchange losses (gains)		267			(6,474	)		1,984			(5,772	)		9,873
Merger and acquisition expenses		(49,276	)		(31,342	)		3,488			(31,566	)		2,944
General and administrative expenses		143,827			115,537			90,048			153,995			124,515
Total losses and expenses		771,584			628,907			567,570			829,562			921,071
INCOME (LOSS) BEFORE TAXES		227,848			188,635			(80,061	)		256,236			(174,086	)
Income tax expense		5,183			5,012			1,174			10,021			1,232
NET INCOME (LOSS)		222,665			183,623			(81,235	)		246,215			(175,318	)
Change in net unrealized gains and losses on fixed maturities securities, net of tax		169,039			66,629			(108,939	)		50,544			9,882
Foreign currency translation adjustment		(4,145	)		20,372			(17,469	)		20,286			(34,940	)
COMPREHENSIVE INCOME (LOSS)	$	387,559		$	270,624		$	(207,643	)	$	317,045		$	(200,376	)
KEY RATIOS/PER SHARE DATA
Loss ratio [a]		57.5	%		64.7	%		66.6	%		62.4	%		68.9	%
Acquisition cost ratio [b]		16.1	%		12.4	%		8.4	%		12.1	%		9.2	%
General and administrative expense ratio [c]		12.5	%		13.4	%		14.1	%		13.6	%		13.8	%
Combined ratio		86.1	%		90.5	%		89.1	%		88.1	%		91.9	%
Net income per share - basic	$	2.52		$	3.22		$	(1.43	)	$	4.32		$	(3.10	)
Net income per share - diluted	$	2.50		$	3.18		$	(1.43	)	$	4.26		$	(3.10	)
Net operating income per share - diluted	$	1.97		$	2.57		$	(1.03	)	$	3.62		$	(2.54	)
Annualized ROAE [d]		12.9	%		18.2	%		(7.3	%)		17.6	%		(12.3	%)
Annualized Net Operating ROAE [d]		10.2	%		14.7	%		(5.3	%)		14.9	%		(10.1	%)

[a] The loss ratio is calculated by dividing net losses and loss expenses by net premiums earned for the property & casualty business

[b] The acquisition cost ratio is calculated by dividing acquisition costs by net premiums earned for the property & casualty business

[c] The general and administrative expense ratio is calculated by dividing general and administrative expenses by net premiums earned for the property & casualty business

[d] See page 30 for calculation of annualized return on average shareholders’ equity (ROAE) and annualized net operating ROAE

[e] Includes the results for Harbor Point from May 12, 2010.

7

ALTERRA CAPITAL HOLDINGS LIMITED

SCHEDULE OF SUPPLEMENTAL UNDERWRITING DATA–THREE MONTHS ENDED SEPTEMBER 30, 2010 (Unaudited)

(Expressed in thousands of United States Dollars)

	Property & Casualty															Life & Annuity
	Insurance			Reinsurance			U.S. Specialty			Alterra at Lloyd’s			Total			Reinsurance			Corporate			Consolidated
Gross premiums written	$	70,271		$	124,004		$	71,871		$	57,734		$	323,880		$	1,333		$	—		$	325,213
Reinsurance premiums ceded		(34,075	)		(2,524	)		(21,513	)		(2,397	)		(60,509	)		(102	)		—			(60,611	)
Net premiums written	$	36,196		$	121,480		$	50,358		$	55,337		$	263,371		$	1,231		$	—		$	264,602
Earned premiums	$	96,777		$	213,510		$	79,200		$	45,424		$	434,911		$	1,333		$	—		$	436,244
Earned premiums ceded		(41,097	)		(15,533	)		(27,770	)		(9,310	)		(93,710	)		(102	)		—			(93,812	)
Net premiums earned		55,680			197,977			51,430			36,114			341,201			1,231			—			342,432
Net investment income		6,209			17,495			1,295			2,256			27,255			12,182			20,274			59,711
Net realized and unrealized gains on investments		188			197			30			883			1,298			3,321			10,792			15,411
Net impairment losses recognized in earnings		—			—			—			—			—			—			(151	)		(151	)
Other income		771			61			337			177			1,346			(43	)		24			1,327
Total revenues		62,848			215,730			53,092			39,430			371,100			16,691			30,939			418,730
Net losses and loss expenses		23,775			117,671			32,199			17,367			191,012			—			—			191,012
Claims and policy benefits		—			—			—			—			—			15,060			—			15,060
Acquisition costs		1,265			45,069			6,880			7,474			60,688			171			—			60,859
Interest expense		80			1,149			—			—			1,229			2,311			4,011			7,551
Net foreign exchange losses (gains)		—			1,478			—			2,089			3,567			—			(214	)		3,353
Merger and acquisition expenses		—			—			—			—			—			—			550			550
General and administrative expenses		6,435			17,580			9,975			7,806			41,796			577			14,277			56,650
Total losses and expenses		31,555			182,947			49,054			34,736			298,292			18,119			18,624			335,035
Income (loss) before taxes	$	31,293		$	32,783		$	4,038		$	4,694		$	72,808		$	(1,428	)	$	12,315		$	83,695
Loss ratio [a]		42.7	%		59.4	%		62.6	%		48.1	%		56.0	%
Acquisition cost ratio [b]		2.3	%		22.8	%		13.4	%		20.7	%		17.8	%
General and administrative expense ratio [c]		11.5	%		8.9	%		19.4	%		21.6	%		12.2	%
Combined ratio		56.5	%		91.1	%		95.4	%		90.4	%		86.0	%

[a] The loss ratio is calculated by dividing net losses and loss expenses by net premiums earned for the property & casualty business

[b] The acquisition cost ratio is calculated by dividing acquisition costs by net premiums earned for the property & casualty business

[c] The general and administrative expense ratio is calculated by dividing general and administrative expenses by net premiums earned for the property & casualty business

8

ALTERRA CAPITAL HOLDINGS LIMITED

CONSOLIDATED UNDERWRITING RATIOS - THREE MONTHS ENDED SEPTEMBER 30, 2010 (Unaudited)

	Property & Casualty
	Insurance			Reinsurance			U.S. Specialty			Alterra at Lloyd’s			Total
UNDERWRITING RATIOS
Loss ratio		42.7	%		59.4	%		62.6	%		48.1	%		56.0	%
Acquisition cost ratio		2.3	%		22.8	%		13.4	%		20.7	%		17.8	%
General and administrative expense ratio		11.5	%		8.9	%		19.4	%		21.6	%		12.2	%
Combined ratio		56.5	%		91.1	%		95.4	%		90.4	%		86.0	%
EFFECT OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT
FAVORABLE / (UNFAVORABLE)
Loss ratio [a]		32.2	%		7.2	%		0.0	%		12.1	%		10.6	%
NET OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT
UNDERWRITING RATIOS
Loss ratio		74.9	%		66.6	%		62.6	%		60.2	%		66.6	%
Acquisition cost ratio		2.3	%		22.8	%		13.4	%		20.7	%		17.8	%
General and administrative expense ratio		11.5	%		8.9	%		19.4	%		21.6	%		12.2	%
Combined ratio		88.7	%		98.3	%		95.4	%		102.5	%		96.6	%

[a] Prior accident year reserve development excludes changes in reserves resulting from changes in premium estimates on prior years’ contracts.

CONSOLIDATED UNDERWRITING RATIOS - THREE MONTHS ENDED SEPTEMBER 30, 2009 (Unaudited)

	Property & Casualty
	Insurance			Reinsurance			U.S. Specialty			Alterra at Lloyd’s			Total			Historical Harbor Point [b]
UNDERWRITING RATIOS
Loss ratio		64.6	%		66.7	%		68.4	%		40.8	%		63.4	%		38.7	%
Acquisition cost ratio		0.8	%		19.7	%		6.2	%		21.4	%		13.4	%		22.1	%
General and administrative expense ratio		14.8	%		8.5	%		25.1	%		22.0	%		14.1	%		8.0	%
Combined ratio		80.2	%		94.9	%		99.7	%		84.2	%		90.9	%		68.8	%
EFFECT OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT
FAVORABLE / (UNFAVORABLE)
Loss ratio [a]		22.4	%		3.1	%		(8.7	%)		14.6	%		7.2	%		9.7	%
NET OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT
UNDERWRITING RATIOS
Loss ratio		87.0	%		69.8	%		59.7	%		55.4	%		70.6	%		48.4	%
Acquisition cost ratio		0.8	%		19.7	%		6.2	%		21.4	%		13.4	%		22.1	%
General and administrative expense ratio		14.8	%		8.5	%		25.1	%		22.0	%		14.1	%		8.0	%
Combined ratio		102.6	%		98.0	%		91.0	%		98.8	%		98.1	%		78.5	%

[a] Prior accident year reserve development excludes changes in reserves resulting from changes in premium estimates on prior years’ contracts.

[b] Provided for informational purposes only.

9

ALTERRA CAPITAL HOLDINGS LIMITED

INSURANCE SEGMENT DATA (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE QUARTERS ENDED
	Sept. 30, 2010			June 30, 2010			Mar. 31, 2010			Dec. 31, 2009			Sept. 30, 2009			Sept. 30, 2008
Gross premiums written	$	70,271		$	132,312		$	66,421		$	125,040		$	81,134		$	80,908
Reinsurance premiums ceded		(34,075	)		(46,257	)		(38,576	)		(66,007	)		(41,884	)		(38,316	)
Net premiums written	$	36,196		$	86,055		$	27,845		$	59,033		$	39,250		$	42,592
Earned premiums	$	96,777		$	99,874		$	97,041		$	109,381		$	103,961		$	93,264
Earned premiums ceded		(41,097	)		(43,676	)		(47,246	)		(53,417	)		(54,814	)		(47,013	)
Net premiums earned		55,680			56,198			49,795			55,964			49,147			46,251
Net investment income		6,209			6,261			6,169			6,014			5,898			4,933
Net realized and unrealized gains (losses) on investments		188			(103	)		306			893			1,298			(14,937	)
Other income		771			—			(11	)		—			91			—
Total revenues		62,848			62,356			56,259			62,871			56,434			36,247
Net losses and loss expenses		23,775			35,927			37,279			26,326			31,756			39,014
Acquisition costs		1,265			797			(309	)		270			369			(743	)
Interest expense		80			240			234			781			—			—
General and administrative expenses		6,435			6,501			5,897			6,798			7,281			5,200
Total losses and expenses		31,555			43,465			43,101			34,175			39,406			43,471
Income (loss) before taxes	$	31,293		$	18,891		$	13,158		$	28,696		$	17,028		$	(7,224	)
Loss ratio		42.7	%		63.9	%		74.9	%		47.0	%		64.6	%		84.4	%
Acquisition cost ratio		2.3	%		1.4	%		(0.6	%)		0.5	%		0.8	%		(1.6	%)
General and administrative expense ratio		11.5	%		11.6	%		11.8	%		12.2	%		14.8	%		11.2	%
Combined ratio		56.5	%		76.9	%		86.1	%		59.7	%		80.2	%		94.0	%

10

ALTERRA CAPITAL HOLDINGS LIMITED

REINSURANCE SEGMENT DATA (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE QUARTERS ENDED
	Sept. 30, 2010			June 30, 2010 [a]			Mar. 31, 2010			Dec. 31, 2009			Sept. 30, 2009			Sept. 30, 2008
Gross premiums written	$	124,004		$	119,578		$	154,851		$	66,732		$	94,118		$	72,458
Reinsurance premiums ceded		(2,524	)		(13,348	)		(45,351	)		569			(11,106	)		(27,210	)
Net premiums written	$	121,480		$	106,230		$	109,500		$	67,301		$	83,012		$	45,248
Earned premiums	$	213,510		$	174,729		$	95,743		$	111,440		$	128,458		$	110,132
Earned premiums ceded		(15,533	)		(19,054	)		(15,958	)		(13,867	)		(25,367	)		(28,054	)
Net premiums earned		197,977			155,675			79,785			97,573			103,091			82,078
Net investment income		17,495			13,708			10,904			10,613			10,404			8,360
Net realized and unrealized gains (losses) on investments		197			(97	)		318			2,073			3,040			(32,637	)
Other income		61			155			—			—			—			—
Total revenues		215,730			169,441			91,007			110,259			116,535			57,801
Net losses and loss expenses		117,671			82,441			50,065			61,718			68,728			58,990
Acquisition costs		45,069			32,673			14,966			17,578			20,299			12,668
Interest expense		1,149			3,357			1,701			4,191			1,706			(63	)
Net foreign exchange losses		1,478			489			—			—			—			—
General and administrative expenses		17,580			14,820			8,959			8,174			8,857			6,186
Total losses and expenses		182,947			133,780			75,691			91,661			99,590			77,781
Income (loss) before taxes	$	32,783		$	35,661		$	15,316		$	18,598		$	16,945		$	(19,980	)
Loss ratio		59.4	%		53.0	%		62.7	%		63.3	%		66.7	%		71.9	%
Acquisition cost ratio		22.8	%		21.0	%		18.8	%		18.0	%		19.7	%		15.4	%
General and administrative expense ratio		8.9	%		9.5	%		11.2	%		8.3	%		8.5	%		7.5	%
Combined ratio		91.1	%		83.5	%		92.7	%		89.6	%		94.9	%		94.8	%

[a] Includes the results for Harbor Point from May 12, 2010.

11

ALTERRA CAPITAL HOLDINGS LIMITED

PRO FORMA ALTERRA REINSURANCE SEGMENT SELECTED FINANCIAL INFORMATION [a] (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE QUARTERS ENDED
	Sept. 30, 2010			June 30, 2010			Mar. 31, 2010			Dec. 31, 2009			Sept. 30, 2009			June 30, 2009			Mar. 31, 2009
Gross premiums written	$	124,004		$	197,146		$	460,618		$	125,447		$	210,882		$	262,938		$	461,141
Net premiums earned		197,977			226,291			215,050			230,516			238,953			221,120			220,103
Net losses and loss expenses		117,671			136,158			129,727			108,941			113,625			118,613			115,706
Acquisition costs		45,069			47,179			42,689			46,708			50,167			42,586			43,280
General and administrative expenses		17,580			16,527			16,824			23,680			19,726			18,520			19,201
Loss ratio		59.4	%		60.2	%		60.3	%		47.3	%		47.6	%		53.6	%		52.6	%
Acquisition cost ratio		22.8	%		20.8	%		19.9	%		20.3	%		21.0	%		19.3	%		19.7	%
General and administrative expense ratio		8.9	%		7.3	%		7.8	%		10.2	%		8.2	%		8.4	%		8.7	%
Combined ratio		91.1	%		88.3	%		88.0	%		77.8	%		76.8	%		81.3	%		81.0	%

[a] This information is based on historical Alterra reinsurance segment financial information adjusted to include Harbor Point historical financial information as though the amalgamation with Harbor Point had occurred on January 1, 2009. The financial information also includes adjustments to eliminate any intercompany transactions and to reflect the amortization of certain acquisition accounting fair value adjustments.

The pro forma information is provided for informational purposes only. The pro forma information does not necessarily represent results that would have occurred if the amalgamation had occurred on January 1, 2009, nor is it necessarily indicative of future results.

12

ALTERRA CAPITAL HOLDINGS LIMITED

U.S. SPECIALTY SEGMENT DATA (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE QUARTERS ENDED
	Sept. 30, 2010			June 30, 2010			Mar. 31, 2010			Dec. 31, 2009			Sept. 30, 2009			Sept. 30, 2008
Gross premiums written	$	71,871		$	97,487		$	76,887		$	66,210		$	69,419		$	52,894
Reinsurance premiums ceded		(21,513	)		(6,852	)		(49,227	)		(36,517	)		(26,259	)		(30,535	)
Net premiums written	$	50,358		$	90,635		$	27,660		$	29,693		$	43,160		$	22,359
Earned premiums	$	79,200		$	76,032		$	73,890		$	71,061		$	68,175		$	34,982
Earned premiums ceded		(27,770	)		(28,588	)		(39,977	)		(42,886	)		(37,074	)		(21,722	)
Net premiums earned		51,430			47,444			33,913			28,175			31,101			13,260
Net investment income		1,295			1,315			1,341			1,438			1,461			1,753
Net realized and unrealized gains (losses) on investments		30			(1	)		—			84			—			(523	)
Other income		337			97			5			42			52			140
Total revenues		53,092			48,855			35,259			29,739			32,614			14,630
Net losses and loss expenses		32,199			29,052			21,363			16,312			21,266			8,830
Acquisition costs		6,880			9,135			3,674			1,628			1,926			1,773
General and administrative expenses		9,975			7,986			8,472			10,034			7,804			8,323
Total losses and expenses		49,054			46,173			33,509			27,974			30,996			18,926
Income (loss) before taxes	$	4,038		$	2,682		$	1,750		$	1,765		$	1,618		$	(4,296	)
Loss ratio		62.6	%		61.2	%		63.0	%		57.9	%		68.4	%		66.6	%
Acquisition cost ratio		13.4	%		19.3	%		10.8	%		5.8	%		6.2	%		13.4	%
General and administrative expense ratio		19.4	%		16.8	%		25.0	%		35.6	%		25.1	%		62.7	%
Combined ratio		95.4	%		97.3	%		98.8	%		99.3	%		99.7	%		142.7	%

13

ALTERRA CAPITAL HOLDINGS LIMITED

ALTERRA AT LLOYD’S SEGMENT DATA (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE QUARTERS ENDED
	Sept. 30, 2010			June 30, 2010			Mar. 31, 2010			Dec. 31, 2009			Sept. 30, 2009
Gross premiums written	$	57,734		$	48,802		$	72,117		$	18,344		$	21,087
Reinsurance premiums ceded		(2,397	)		(13,233	)		(19,959	)		(921	)		(4,015	)
Net premiums written	$	55,337		$	35,569		$	52,158		$	17,423		$	17,072
Earned premiums	$	45,424		$	40,286		$	37,460		$	31,189		$	29,147
Earned premiums ceded		(9,310	)		(7,120	)		(7,469	)		(7,368	)		(4,572	)
Net premiums earned		36,114			33,166			29,991			23,821			24,575
Net investment income		2,256			3,035			2,017			1,172			1,749
Net realized and unrealized gains (losses) on investments		883			(1,284	)		(182	)		3			1,400
Other income		177			173			178			183			(33	)
Total revenues		39,430			35,090			32,004			25,179			27,691
Net losses and loss expenses		17,367			12,397			16,258			10,514			10,028
Acquisition costs		7,474			6,070			5,767			3,339			5,250
Net foreign exchange losses (gains)		2,089			(1,182	)		(2,709	)		69			42
General and administrative expenses		7,806			5,826			2,713			4,116			5,423
Total losses and expenses		34,736			23,111			22,029			18,038			20,743
Income before taxes	$	4,694		$	11,979		$	9,975		$	7,141		$	6,948
Loss ratio		48.1	%		37.4	%		54.2	%		44.1	%		40.8	%
Acquisition cost ratio		20.7	%		18.3	%		19.2	%		14.0	%		21.4	%
General and administrative expense ratio		21.6	%		17.5	%		9.1	%		17.3	%		22.0	%
Combined ratio		90.4	%		73.2	%		82.5	%		75.4	%		84.2	%

14

ALTERRA CAPITAL HOLDINGS LIMITED

LIFE AND ANNUITY REINSURANCE SEGMENT DATA (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE QUARTERS ENDED
	Sept. 30, 2010			June 30, 2010			Mar. 31, 2010			Dec. 31, 2009			Sept. 30, 2009			Sept. 30, 2008
Gross premiums written	$	1,333		$	802		$	863		$	2,007		$	128		$	—
Reinsurance premiums ceded		(102	)		(25	)		(107	)		(267	)		(26	)		—
Net premiums written	$	1,231		$	777		$	756		$	1,740		$	102		$	—
Earned premiums	$	1,333		$	802		$	863		$	2,007		$	128		$	—
Earned premiums ceded		(102	)		(25	)		(107	)		(267	)		(26	)		—
Net premiums earned		1,231			777			756			1,740			102			—
Net investment income		12,182			12,420			13,099			13,367			13,143			9,347
Net realized and unrealized gains (losses) on investments		3,321			(1,860	)		5,916			8,192			11,932			(65,286	)
Other income		(43	)		—			(28	)		(120	)		—			—
Total revenues		16,691			11,337			19,743			23,179			25,177			(55,939	)
Claims and policy benefits		15,060			13,943			17,659			16,976			14,378			14,000
Acquisition costs		171			123			146			373			153			198
Interest expense		2,311			2,676			1,363			525			2,349			(148	)
General and administrative expenses		577			642			657			606			829			782
Total losses and expenses		18,119			17,384			19,825			18,480			17,709			14,832
(Loss) income before taxes	$	(1,428	)	$	(6,047	)	$	(82	)	$	4,699		$	7,468		$	(70,771	)

15

ALTERRA CAPITAL HOLDINGS LIMITED

SEGMENT GROSS PREMIUMS WRITTEN BY LINE OF BUSINESS (Unaudited)

(Expressed in thousands of United States Dollars)

Gross Premiums Written by Type of Risk:		FOR THE QUARTERS ENDED
		Sept. 30, 2010			June 30, 2010			Mar. 31, 2010		Dec. 31, 2009			Sept. 30, 2009			Sept. 30, 2008
Property & Casualty:
Insurance:
Aviation	S	$	8,247		$	6,615		$	2,349	$	39,520		$	13,495		$	9,057
Excess Liability	L		14,384			33,198			23,648		26,683			19,084			20,783
Professional Liability	L		36,673			65,216			27,573		45,059			39,146			42,849
Property	S		10,967			27,283			12,851		13,778			9,409			8,219
			70,271			132,312			66,421		125,040			81,134			80,908
Reinsurance [a]:
Agriculture	S		(2,665	)		(2,513	)		35,806		2,212			(95	)		(4,834	)
Auto	S		10,251			66			—		—			—			—
Aviation	S		15,313			8,561			4,822		9,380			10,477			4,226
Credit/ Surety	L		2,569			(1,491	)		—		—			—			—
General Casualty	L		18,505			(857	)		13,051		5,781			7,279			887
Marine & Energy	S		8,826			5,004			4,100		3,599			5,987			2,618
Medical Malpractice	L		(3,131	)		7,813			27,155		11,086			2,567			7,686
Other	S		1,183			92			989		29			—			(1,169	)
Professional Liability	L		37,965			32,005			11,919		25,609			20,992			5,543
Property	S		34,859			61,058			45,933		(2,375	)		13,541			18,544
Whole Account	S/L		(232	)		2,362			2,573		2,947			2,546			2,594
Workers’ Compensation	L		561			7,478			8,503		8,464			30,824			36,363
			124,004			119,578			154,851		66,732			94,118			72,458
U.S. Specialty:
General Liability	L		25,566			27,625			23,014		18,756			27,267			22,427
Marine	S		15,637			17,996			16,063		15,443			16,168			11,331
Professional Liability	L		3,613			3,667			2,246		576			—			—
Property	S		27,055			48,199			35,564		31,435			25,984			19,136
			71,871			97,487			76,887		66,210			69,419			52,894
Alterra at Lloyd’s [b]:
Accident & Health	S		5,919			6,022			13,410		1,245			3,692			—
Aviation	S		3,946			2,565			4,403		2,611			—			—
Financial Institutions	L		8,130			4,846			6,088		5,446			6,873			—
International Casualty	L		8,464			6,182			13,684		—			—			—
Professional Liability	L		4,330			4,161			6,896		5,290			5,284			—
Property	S		26,945			25,026			27,636		3,752			5,238			—
			57,734			48,802			72,117		18,344			21,087			—
Aggregate Property & Casualty		$	323,880		$	398,179		$	370,276	$	276,326		$	265,758		$	206,260
Life & Annuity:
Annuity		$	—		$	6		$	—	$	—		$	—		$	—
Life			1,333			796			863		2,007			128			—
Aggregate Life & Annuity			1,333			802			863		2,007			128			—
Aggregate Property & Casualty and Life & Annuity		$	325,213		$	398,981		$	371,139	$	278,333		$	265,886		$	206,260
[a]     Includes the results for Harbor Point from May 12, 2010.
[b]     Includes the results for Alterra at Lloyd’s from November 6, 2008.
S = Short tail lines		$	166,367		$	207,155		$	205,213	$	122,103		$	105,169		$	68,425
L = Long tail lines			157,513			191,024			165,063		154,223			160,589			137,835
Aggregate Property & Casualty		$	323,880		$	398,179		$	370,276	$	276,326		$	265,758		$	206,260

16

ALTERRA CAPITAL HOLDINGS LIMITED

PRO FORMA ALTERRA REINSURANCE SEGMENT GROSS PREMIUMS WRITTEN BY LINE OF BUSINESS [a] (Unaudited)

(Expressed in thousands of United States Dollars)

		FOR THE QUARTERS ENDED
Gross Premiums Written by Type of Risk:		Sept. 30, 2010			June 30, 2010			Mar. 31, 2010		Dec. 31, 2009		Sept. 30, 2009			June 30, 2009			Mar. 31, 2009
Agriculture	S	$	(2,665	)	$	(4,643	)	$	55,944	$	2,153	$	(96	)	$	(262	)	$	91,196
Auto	S		10,251			14,359			18,063		19,531		12,828			11,288			15,148
Aviation	S		15,313			8,586			6,191		9,395		18,154			10,760			4,509
Credit/ Surety	L		2,569			1,530			23,555		9,058		369			2,440			8,828
General Casualty	L		18,505			6,724			42,398		15,607		31,167			10,225			36,892
Marine & Energy	S		8,826			5,220			21,128		4,033		8,565			(3,731	)		37,799
Medical Malpractice	L		(3,131	)		6,424			33,804		11,093		7,077			21,783			36,417
Other	S		1,183			294			5,664		168		(57	)		485			3,011
Professional Liability	L		37,965			51,615			55,812		37,407		60,373			53,705			50,629
Property	S		34,859			96,745			138,958		2,260		34,240			118,581			142,118
Whole Account	S/L		(232	)		3,095			47,135		6,578		4,569			18,503			5,369
Workers’ Compensation	L		561			7,197			11,966		8,164		33,693			19,161			29,225
Aggregate Pro Forma Reinsurance Segment		$	124,004		$	197,146		$	460,618	$	125,447	$	210,882		$	262,938		$	461,141

[a] This information is based on historical Alterra reinsurance segment gross premiums written adjusted to include Harbor Point historical gross premiums written as though the amalgamation with Harbor Point had occurred on January 1, 2009. The financial information also includes adjustments to eliminate any intercompany transactions.

The pro forma information is provided for informational purposes only. The pro forma information does not necessarily represent results that would have occurred if the amalgamation with Harbor Point had occurred on January 1, 2009, nor is it necessarily indicative of future results.

17

ALTERRA CAPITAL HOLDINGS LIMITED

SCHEDULE OF SUPPLEMENTAL UNDERWRITING DATA–NINE MONTHS ENDED SEPTEMBER 30, 2010 (Unaudited) [d]

(Expressed in thousands of United States Dollars)

	Property & Casualty															Life & Annuity			Corporate			Consolidated
	Insurance			Reinsurance			U.S. Specialty			Alterra at Lloyd’s			Total			Reinsurance
Gross premiums written	$	269,004		$	398,433		$	246,245		$	178,653		$	1,092,335		$	2,998		$	—		$	1,095,333
Reinsurance premiums ceded		(118,908	)		(61,223	)		(77,592	)		(35,589	)		(293,312	)		(234	)		—			(293,546	)
Net premiums written	$	150,096		$	337,210		$	168,653		$	143,064		$	799,023		$	2,764		$	—		$	801,787
Earned premiums	$	293,692		$	483,982		$	229,122		$	123,170		$	1,129,966		$	2,998		$	—		$	1,132,964
Earned premiums ceded		(132,019	)		(50,545	)		(96,335	)		(23,899	)		(302,798	)		(234	)		—			(303,032	)
Net premiums earned		161,673			433,437			132,787			99,271			827,168			2,764			—			829,932
Net investment income		18,639			42,107			3,951			7,308			72,005			37,701			51,672			161,378
Net realized and unrealized gains (losses) on investments		391			418			29			(583	)		255			7,377			(585	)		7,047
Net impairment losses recognized in earnings		—			—			—			—			—			—			(871	)		(871	)
Other income		760			216			439			528			1,943			(71	)		74			1,946
Total revenues		181,463			476,178			137,206			106,524			901,371			47,771			50,290			999,432
Net losses and loss expenses		96,981			250,177			82,614			46,022			475,794			—			—			475,794
Claims and policy benefits		—			—			—			—			—			46,662			—			46,662
Acquisition costs		1,753			92,708			19,689			19,311			133,461			440			—			133,901
Interest expense		554			6,207			—			—			6,761			6,350			7,298			20,409
Net foreign exchange losses (gains)		—			1,967			—			(1,802	)		165			—			102			267
Merger and acquisition expenses		—			—			—			—			—			—			(49,276	)		(49,276	)
General and administrative expenses		18,833			41,359			26,433			16,345			102,970			1,876			38,981			143,827
Total losses and expenses		118,121			392,418			128,736			79,876			719,151			55,328			(2,895	)		771,584
Income (loss) before taxes	$	63,342		$	83,760		$	8,470		$	26,648		$	182,220		$	(7,557	)	$	53,185		$	227,848
Loss ratio [a]		60.0	%		57.7	%		62.2	%		46.4	%		57.5	%
Acquisition cost ratio [b]		1.1	%		21.4	%		14.8	%		19.5	%		16.1	%
General and administrative expense ratio [c]		11.6	%		9.6	%		19.9	%		16.4	%		12.5	%
Combined ratio		72.7	%		88.7	%		96.9	%		82.3	%		86.1	%

[a] The loss ratio is calculated by dividing net losses and loss expenses by net premiums earned for the property & casualty business

[b] The acquisition cost ratio is calculated by dividing acquisition costs by net premiums earned for the property & casualty business

[c] The general and administrative expense ratio is calculated by dividing general and administrative expenses by net premiums earned for the property & casualty business

[d] Includes the results for Harbor Point from May 12, 2010.

18

ALTERRA CAPITAL HOLDINGS LIMITED

CONSOLIDATED UNDERWRITING RATIOS - NINE MONTHS ENDED SEPTEMBER 30, 2010 (Unaudited)

	Property & Casualty
	Insurance			Reinsurance [b]			U.S. Specialty			Alterra at Lloyd’s			Total
UNDERWRITING RATIOS
Loss ratio		60.0	%		57.7	%		62.2	%		46.4	%		57.5	%
Acquisition cost ratio		1.1	%		21.4	%		14.8	%		19.5	%		16.1	%
General and administrative expense ratio		11.6	%		9.6	%		19.9	%		16.4	%		12.5	%
Combined ratio		72.7	%		88.7	%		96.9	%		82.3	%		86.1	%
EFFECT OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT
FAVORABLE / (UNFAVORABLE)
Loss ratio [a]		20.3	%		8.1	%		0.6	%		9.1	%		9.4	%
NET OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT
UNDERWRITING RATIOS
Loss ratio		80.3	%		65.8	%		62.8	%		55.5	%		66.9	%
Acquisition cost ratio		1.1	%		21.4	%		14.8	%		19.5	%		16.1	%
General and administrative expense ratio		11.6	%		9.6	%		19.9	%		16.4	%		12.5	%
Combined ratio		93.0	%		96.8	%		97.5	%		91.4	%		95.5	%

[a] Prior accident year reserve development excludes changes in reserves resulting from changes in premium estimates on prior years’ contracts.

[b] Includes the results for Harbor Point from May 12, 2010.

CONSOLIDATED UNDERWRITING RATIOS - NINE MONTHS ENDED SEPTEMBER 30, 2009 (Unaudited)

	Property & Casualty
	Insurance			Reinsurance			U.S. Specialty			Alterra at Lloyd’s			Total			Historical Harbor Point [c]
UNDERWRITING RATIOS
Loss ratio		70.7	%		66.4	%		62.9	%		46.9	%		64.7	%		45.4	%
Acquisition cost ratio		(1.0	%)		18.5	%		7.9	%		20.8	%		12.4	%		21.3	%
General and administrative expense ratio		11.9	%		8.1	%		28.7	%		22.2	%		13.4	%		8.8	%
Combined ratio		81.6	%		93.0	%		99.5	%		89.9	%		90.5	%		75.5	%
EFFECT OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT
FAVORABLE / (UNFAVORABLE)
Loss ratio [a]		17.6	%		6.9	%		(2.4	%)		3.9	%		8.1	%		3.2	%
NET OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT
UNDERWRITING RATIOS
Loss ratio		88.3	%		73.3	%		60.5	%		50.8	%		72.8	%		48.6	%
Acquisition cost ratio		(1.0	%)		18.5	%		7.9	%		20.8	%		12.4	%		21.3	%
General and administrative expense ratio		11.9	%		8.1	%		28.7	%		22.2	%		13.4	%		8.8	%
Combined ratio		99.2	%		99.9	%		97.1	%		93.8	%		98.6	%		78.7	%

[a] Prior accident year reserve development excludes changes in reserves resulting from changes in premium estimates on prior years’ contracts.

[c] Provided for informational purposes only.

19

ALTERRA CAPITAL HOLDINGS LIMITED

INSURANCE SEGMENT DATA (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE NINE MONTHS ENDED									FOR THE YEARS ENDED
	Sept. 30, 2010			Sept. 30, 2009			Sept. 30, 2008			Dec. 31, 2009			Dec. 31, 2008
Gross premiums written	$	269,004		$	302,727		$	276,288		$	427,767		$	389,368
Reinsurance premiums ceded		(118,908	)		(146,076	)		(133,099	)		(212,083	)		(198,098	)
Net premiums written	$	150,096		$	156,651		$	143,189		$	215,684		$	191,270
Earned premiums	$	293,692		$	307,709		$	278,092		$	417,090		$	371,080
Earned premiums ceded		(132,019	)		(157,710	)		(140,991	)		(211,127	)		(189,125	)
Net premiums earned		161,673			149,999			137,101			205,963			181,955
Net investment income		18,639			16,861			13,313			22,875			18,437
Net realized and unrealized gains (losses) on investments		391			3,537			(13,576	)		4,430			(23,499	)
Other income		760			1,238			1,112			1,238			1,112
Total revenues		181,463			171,635			137,950			234,506			178,005
Net losses and loss expenses		96,981			106,029			108,819			132,355			142,150
Acquisition costs		1,753			(1,503	)		(1,945	)		(1,233	)		(2,810	)
Interest expense		554			—			—			781			—
General and administrative expenses		18,833			17,825			16,052			24,623			21,101
Total losses and expenses		118,121			122,351			122,926			156,526			160,441
Income before taxes	$	63,342		$	49,284		$	15,024		$	77,980		$	17,564
Loss ratio		60.0	%		70.7	%		79.4	%		64.3	%		78.1	%
Acquisition cost ratio		1.1	%		(1.0	%)		(1.3	%)		(0.6	%)		(1.5	%)
General and administration expense ratio		11.6	%		11.9	%		11.6	%		12.0	%		11.6	%
Combined ratio		72.7	%		81.6	%		89.7	%		75.6	%		88.2	%

20

ALTERRA CAPITAL HOLDINGS LIMITED

REINSURANCE SEGMENT DATA (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE NINE MONTHS ENDED									FOR THE YEARS ENDED
	Sept. 30, 2010 [a]			Sept. 30, 2009			Sept. 30, 2008			Dec. 31, 2009			Dec. 31, 2008
Gross premiums written	$	398,433		$	422,296		$	377,485		$	489,028		$	419,509
Reinsurance premiums ceded		(61,223	)		(80,574	)		(85,133	)		(80,005	)		(92,421	)
Net premiums written	$	337,210		$	341,722		$	292,352		$	409,023		$	327,088
Earned premiums	$	483,982		$	364,994		$	310,663		$	476,434		$	426,157
Earned premiums ceded		(50,545	)		(74,711	)		(57,817	)		(88,578	)		(84,366	)
Net premiums earned		433,437			290,283			252,846			387,856			341,791
Net investment income		42,107			29,607			27,797			40,220			36,069
Net realized and unrealized gains (losses) on investments		418			8,467			(29,638	)		10,540			(51,096	)
Other income		216			12			—			12			—
Total revenues		476,178			328,369			251,005			438,628			326,764
Net losses and loss expenses		250,177			192,756			150,326			254,474			218,749
Acquisition costs		92,708			53,496			35,174			71,074			51,328
Interest expense		6,207			2,400			2,382			6,591			7,516
Net foreign exchange losses		1,967			—			—			—			—
General and administrative expenses		41,359			23,604			21,981			31,778			28,548
Total losses and expenses		392,418			272,256			209,863			363,917			306,141
Income before taxes	$	83,760		$	56,113		$	41,142		$	74,711		$	20,623
Loss ratio		57.7	%		66.4	%		59.5	%		65.6	%		64.0	%
Acquisition cost ratio		21.4	%		18.5	%		13.9	%		18.3	%		15.0	%
General and administration expense ratio		9.6	%		8.1	%		8.7	%		8.2	%		8.4	%
Combined ratio		88.7	%		93.0	%		82.1	%		92.1	%		87.4	%

[a] Includes the results for Harbor Point from May 12, 2010.

21

ALTERRA CAPITAL HOLDINGS LIMITED

U.S. SPECIALTY SEGMENT DATA (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE NINE MONTHS ENDED									FOR THE YEARS ENDED
	Sept. 30, 2010			Sept. 30, 2009			Sept. 30, 2008			Dec. 31, 2009			Dec. 31, 2008
Gross premiums written	$	246,245		$	219,268		$	134,162		$	285,478		$	194,353
Reinsurance premiums ceded		(77,592	)		(118,579	)		(81,334	)		(155,096	)		(118,710	)
Net premiums written	$	168,653		$	100,689		$	52,828		$	130,382		$	75,643
Earned premiums	$	229,122		$	185,609		$	77,670		$	256,670		$	121,172
Earned premiums ceded		(96,335	)		(111,682	)		(49,571	)		(154,568	)		(77,374	)
Net premiums earned		132,787			73,927			28,099			102,102			43,798
Net investment income		3,951			4,549			5,563			5,987			7,235
Net realized and unrealized gains (losses) on investments		29			148			(523	)		232			(523	)
Other income		439			272			140			314			303
Total revenues		137,206			78,896			33,279			108,635			50,813
Net losses and loss expenses		82,614			46,500			19,440			62,812			30,376
Acquisition costs		19,689			5,873			2,058			7,501			3,039
General and administrative expenses		26,433			21,195			20,599			31,229			27,235
Total losses and expenses		128,736			73,568			42,097			101,542			60,650
Income (loss) before taxes	$	8,470		$	5,328		$	(8,818	)	$	7,093		$	(9,837	)
Loss ratio		62.2	%		62.9	%		69.2	%		61.5	%		69.4	%
Acquisition cost ratio		14.8	%		7.9	%		7.3	%		7.4	%		6.9	%
General and administration expense ratio		19.9	%		28.7	%		73.3	%		30.6	%		62.2	%
Combined ratio		96.9	%		99.5	%		149.8	%		99.5	%		138.5	%

22

ALTERRA CAPITAL HOLDINGS LIMITED

ALTERRA AT LLOYD’S SEGMENT DATA (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE NINE MONTHS ENDED						FOR THE YEARS ENDED
	Sept. 30, 2010			Sept. 30, 2009			Dec. 31, 2009			Dec. 31, 2008 [a]
Gross premiums written	$	178,653		$	110,629		$	128,973		$	8,844
Reinsurance premiums ceded		(35,589	)		(31,963	)		(32,884	)		(4,294	)
Net premiums written	$	143,064		$	78,666		$	96,089		$	4,550
Earned premiums	$	123,170		$	93,811		$	125,000		$	9,663
Earned premiums ceded		(23,899	)		(22,539	)		(29,907	)		(5,349	)
Net premiums earned		99,271			71,272			95,093			4,314
Net investment income		7,308			3,216			4,388			542
Net realized and unrealized (losses) gains on investments		(583	)		2,587			2,590			508
Other income		528			475			658			160
Total revenues		106,524			77,550			102,729			5,524
Net losses and loss expenses		46,022			33,444			43,958			2,470
Acquisition costs		19,311			14,797			18,136			981
Net foreign exchange gains		(1,802	)		(5,124	)		(5,055	)		(382	)
General and administrative expenses		16,345			15,856			19,972			2,525
Total losses and expenses		79,876			58,973			77,011			5,594
Income (loss) before taxes	$	26,648		$	18,577		$	25,718		$	(70	)
Loss ratio		46.4	%		46.9	%		46.2	%		57.3	%
Acquisition cost ratio		19.5	%		20.8	%		19.1	%		22.7	%
General and administration expense ratio		16.4	%		22.2	%		21.0	%		58.5	%
Combined ratio		82.3	%		89.9	%		86.3	%		138.5	%

[a] Includes the results for Alterra at Lloyd’s from November 6, 2008.

23

ALTERRA CAPITAL HOLDINGS LIMITED

LIFE AND ANNUITY REINSURANCE SEGMENT DATA (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE NINE MONTHS ENDED									FOR THE YEARS ENDED
	Sept. 30, 2010			Sept. 30, 2009			Sept. 30, 2008			Dec. 31, 2009			Dec. 31, 2008
Gross premiums written	$	2,998		$	41,748		$	94,251		$	43,755		$	242,176
Reinsurance premiums ceded		(234	)		(146	)		(286	)		(413	)		(524	)
Net premiums written	$	2,764		$	41,602		$	93,965		$	43,342		$	241,652
Earned premiums	$	2,998		$	41,748		$	94,251		$	43,755		$	242,176
Earned premiums ceded		(234	)		(146	)		(286	)		(413	)		(524	)
Net premiums earned		2,764			41,602			93,965			43,342			241,652
Net investment income		37,701			37,626			29,932			50,993			40,058
Net realized and unrealized gains (losses) on investments		7,377			29,146			(58,751	)		37,338			(100,921	)
Other income		(71	)		—			—			(120	)		—
Total revenues		47,771			108,374			65,146			131,553			180,789
Claims and policy benefits		46,662			84,117			137,175			101,093			301,526
Acquisition costs		440			1,023			456			1,396			(159	)
Interest expense		6,350			2,803			2,096			3,328			6,818
General and administrative expenses		1,876			2,180			2,273			2,786			2,917
Total losses and expenses		55,328			90,123			142,000			108,603			311,102
(Loss) income before taxes	$	(7,557	)	$	18,251		$	(76,854	)	$	22,950		$	(130,313	)

24

ALTERRA CAPITAL HOLDINGS LIMITED

SEGMENT GROSS PREMIUMS WRITTEN BY LINE OF BUSINESS (Unaudited)

(Expressed in thousands of United States Dollars)

		FOR THE NINE MONTHS ENDED						FOR THE YEARS ENDED
Gross Premiums Written by Type of Risk:		Sept. 30, 2010		Sept. 30, 2009		Sept. 30, 2008		Dec. 31, 2009		Dec. 31, 2008
Property & Casualty:
Insurance:
Aviation	S	$	17,211	$	30,314	$	21,870	$	69,834	$	53,034
Excess Liability	L		71,230		87,084		96,557		113,767		123,490
Professional Liability	L		129,462		134,845		116,565		179,904		159,140
Property	S		51,101		50,484		41,296		64,262		53,704
			269,004		302,727		276,288		427,767		389,368
Reinsurance [a]:
Agriculture	S		30,628		87,338		80,220		89,550		80,454
Auto	S		10,317		—		—		—		—
Aviation	S		28,696		25,335		27,746		34,715		31,555
Credit/ Surety	L		1,078		—		—		—		—
General Casualty	L		30,699		23,404		8,239		29,185		10,165
Marine & Energy	S		17,930		14,722		7,892		18,321		12,769
Medical Malpractice	L		31,837		56,397		64,555		67,483		77,133
Other	S		2,264		2,268		2,849		2,297		1,934
Professional Liability	L		81,889		45,922		29,306		71,531		38,718
Property	S		141,850		89,414		97,774		87,039		99,280
Whole Account	S/L		4,703		8,509		10,481		11,456		12,906
Workers’ Compensation	L		16,542		68,987		48,423		77,451		54,595
			398,433		422,296		377,485		489,028		419,509
U.S. Specialty:
General Liability	L		76,205		69,026		42,849		87,782		59,838
Marine	S		49,696		45,917		25,723		61,360		38,667
Professional Liability	L		9,526		—		—		576		—
Property	S		110,818		104,325		65,590		135,760		95,848
			246,245		219,268		134,162		285,478		194,353
Alterra at Lloyd’s [b]:
Accident & Health	S		25,351		21,357		—		22,602		408
Aviation	S		10,914		—		—		2,611		—
Financial Institutions	L		19,064		18,376		—		23,822		4,062
International Casualty	L		28,330		—		—		—		—
Professional Liability	L		15,387		14,599		—		19,889		2,928
Property	S		79,607		56,297		—		60,049		1,446
			178,653		110,629		—		128,973		8,844
Aggregate Property & Casualty		$	1,092,335	$	1,054,920	$	787,935	$	1,331,246	$	1,012,074
Life & Annuity:
Annuity		$	6	$	—	$	92,821	$	—	$	239,555
Life			2,992		41,748		1,430		43,755		2,621
Aggregate Life & Annuity			2,998		41,748		94,251		43,755		242,176
Aggregate Property & Casualty and Life & Annuity		$	1,095,333	$	1,096,668	$	882,186	$	1,375,001	$	1,254,250
[a]    Includes the results for Harbor Point from May 12, 2010.
[b]    Includes the results for Alterra at Lloyd’s from November 6, 2008.
S = Short tail lines		$	578,735	$	532,025	$	376,200	$	654,128	$	475,552
L = Long tail lines			513,600		522,895		411,735		677,118		536,522
Aggregate Property & Casualty		$	1,092,335	$	1,054,920	$	787,935	$	1,331,246	$	1,012,074

25

ALTERRA CAPITAL HOLDINGS LIMITED

AMALGAMATION WITH HARBOR POINT (Unaudited)

(Expressed in thousands of United States Dollars, except per share and share amounts)

Number of Harbor Point common shares (including unvested restricted Harbor Point common shares) outstanding at May 12, 2010			16,542,489
Exchange ratio			3.7769
Total Alterra common shares issued [a]			62,479,281
Closing price of Alterra common shares on May 12, 2010		$	22.98
Purchase price before adjustments for stock based compensation			1,435,774
Fair value of Harbor Point options and Harbor Point warrants outstanding at May 12, 2010			74,278
Unrecognized compensation on unvested Harbor Point options and restricted Harbor Point common shares			(28,265	)
Total purchase price		$	1,481,787
Fair value of assets acquired:
Cash and investments	2,662,968
Net premiums receivables	354,496
Other assets	30,149
Tangible assets acquired			3,047,613
Fair value of intangible assets [b]			12,200
Fair value of liabilities acquired:
Net loss reserves	836,677
Net unearned premiums	370,500
Other liabilities	275,061
Liabilities acquired			1,482,238
Negative goodwill gain		$	95,788

[a] Adjusted for rounding

[b] Provisional estimate

26

ALTERRA CAPITAL HOLDINGS LIMITED

INVESTMENT PORTFOLIO (Unaudited)

(Expressed in thousands of United States Dollars)

	Carrying Value										Fair Value
Type of Investment	As of Sept 30, 2010		Investment Distribution			As of Dec. 31, 2009		Investment Distribution			As of Sept 30, 2010		Investment Distribution			As of Dec. 31, 2009		Investment Distribution
Cash and cash equivalents	$	925,752		11.6	%	$	702,278		13.4	%	$	925,752		11.4	%	$	702,278		13.3	%
U.S. government and agencies		1,049,245		13.2	%		525,427		10.0	%		1,049,245		13.0	%		525,427		9.9	%
Non-U.S. governments		81,878		1.0	%		82,027		1.5	%		81,878		1.0	%		82,027		1.6	%
Corporate securities		2,766,645		34.7	%		1,375,999		26.2	%		2,766,645		34.1	%		1,375,999		26.0	%
Municipal securities		226,946		2.9	%		83,658		1.6	%		226,946		2.8	%		83,658		1.6	%
Asset-backed securities		82,982		1.0	%		102,006		1.9	%		82,982		1.0	%		102,006		1.9	%
Residential mortgage-backed securities		1,112,602		14.0	%		763,974		14.5	%		1,112,602		13.7	%		763,974		14.5	%
Commercial mortgage-backed securities		348,815		4.4	%		302,961		5.8	%		348,815		4.3	%		302,961		5.7	%
Fixed maturities carried at fair value	$	5,669,113		71.2	%	$	3,236,052		61.5	%	$	5,669,113		69.9	%	$	3,236,052		61.2	%
Other investments carried at fair value	$	411,275		5.2	%	$	318,073		6.0	%	$	411,275		5.1	%	$	318,073		6.0	%
Total investments carried at fair value	$	7,006,140		88.0	%	$	4,256,403		80.9	%	$	7,006,140		86.4	%	$	4,256,403		80.5	%
U.S. government and agencies	$	22,690		0.3	%	$	14,050		0.3	%	$	24,751		0.3	%	$	13,535		0.3	%
Non-U.S. governments		549,238		6.9	%		573,250		10.9	%		653,524		8.0	%		584,284		11.0	%
Corporate securities		381,695		4.8	%		418,647		7.9	%		426,777		5.3	%		435,732		8.2	%
Asset-backed securities		1,000		0.0	%		—		—			1,005		0.0	%		—		—
Fixed maturities carried at amortized cost	$	954,623		12.0	%	$	1,005,947		19.1	%	$	1,106,057		13.6	%	$	1,033,551		19.5	%
Total invested assets	$	7,960,763		100.0	%	$	5,262,350		100.0	%	$	8,112,197		100.0	%	$	5,289,954		100.0	%

As of September 30, 2010, the weighted average book yield of the cash and fixed maturities portfolio was 3.23%, and the weighted average duration was 4.1 years.

Credit Ratings	As of Sept 30, 2010		Ratings Distribution			As of Dec. 31, 2009		Ratings Distribution			As of Sept 30, 2010		Ratings Distribution			As of Dec. 31, 2009		Ratings Distribution
U.S. government and agencies [a]	$	2,064,495		31.2	%	$	1,214,895		28.6	%	$	2,064,495		30.5	%	$	1,214,895		28.5	%
AAA		1,155,082		17.4	%		720,364		17.0	%		1,155,082		17.0	%		720,364		16.9	%
AA		634,250		9.6	%		325,997		7.7	%		634,250		9.4	%		325,997		7.6	%
A		1,364,226		20.6	%		731,723		17.3	%		1,364,226		20.1	%		731,723		17.1	%
BBB		227,276		3.4	%		100,841		2.4	%		227,276		3.4	%		100,841		2.4	%
BB		33,378		0.5	%		34,781		0.8	%		33,378		0.5	%		34,781		0.8	%
B or lower		190,406		2.9	%		107,451		2.5	%		190,406		2.8	%		107,451		2.5	%
Fixed maturities carried at fair value	$	5,669,113		85.6	%	$	3,236,052		76.3	%	$	5,669,113		83.7	%	$	3,236,052		75.8	%
U.S. government and agencies		22,690		0.3	%		14,050		0.3	%		24,751		0.4	%		13,535		0.3	%
AAA		654,700		9.9	%		717,954		16.9	%		775,537		11.5	%		734,595		17.2	%
AA		113,634		1.7	%		101,675		2.4	%		123,442		1.8	%		105,296		2.5	%
A		149,422		2.3	%		158,141		3.7	%		165,392		2.4	%		165,172		3.9	%
BBB		12,749		0.2	%		12,672		0.3	%		15,209		0.2	%		13,478		0.3	%
BB		—		—			—		—			—		—			—		—
B or lower		1,428		0.0	%		1,455		0.1	%		1,726		0.0	%		1,475		0.0	%
Fixed maturities carried at amortized cost	$	954,623		14.4	%	$	1,005,947		23.7	%	$	1,106,057		16.3	%	$	1,033,551		24.2	%
Total fixed maturities	$	6,623,736		100.0	%	$	4,241,999		100.0	%	$	6,775,170		100.0	%	$	4,269,603		100.0	%

[a] Included within US government and agencies are agency-issued residential mortgage-backed securities with a fair value of $1,015,250 (December 31, 2009: $689,468)

	Quarter Ended Sept. 30, 2010			Quarter Ended June 30, 2010			Quarter Ended Mar. 31, 2010			Quarter Ended Dec. 31, 2009			Quarter Ended Sept. 30, 2009			Quarter Ended Sept. 30, 2008
Net investment income	$	59,711		$	53,277		$	48,390		$	44,668		$	42,830		$	45,265
Realized and unrealized gains (losses) on trading fixed maturities		883			(1,284	)		(182	)		3			1,400			—
Net realized gains (losses) on available for sale fixed maturities		6,395			2,425			838			3,234			(655	)		(3,793	)
Change in fair value of hedge funds		4,820			(3,323	)		7,370			13,555			23,200			(158,623	)
Change in fair value of non-hedge fund other investments		3,313			(12,604	)		(1,604	)		533			583			(133	)
Net realized and unrealized gains (losses) on investments	$	15,411		$	(14,786	)	$	6,422		$	17,325		$	24,528		$	(162,549	)
Net impairment losses recognized in earnings	$	(151	)	$	(300	)	$	(420	)	$	(925	)	$	(139	)	$	(13,757	)

27

ALTERRA CAPITAL HOLDINGS LIMITED

INVESTMENT PORTFOLIO (Unaudited)

(Expressed in thousands of United States Dollars)

										Periodic Rate of Return
				As of Sept. 30, 2010						Last 3 Months			Year to Date			Last 12 months			Last 60 months*
Cash and fixed maturities				$	7,549,488						2.56	%		6.98	%		7.31	%		5.30	%
Convertible arbitrage				$	—						0.00	%		0.00	%		0.00	%		0.38	%
Distressed securities					58,575						1.05	%		4.83	%		11.09	%		6.73	%
Diversified arbitrage					30,808						2.50	%		7.10	%		10.91	%		(2.48	%)
Emerging markets					14,259						2.07	%		3.71	%		6.49	%		5.03	%
Event-driven arbitrage					33,581						(4.59	%)		(7.34	%)		1.85	%		3.99	%
Fixed income arbitrage					—						0.00	%		1.53	%		3.59	%		14.93	%
Fund of funds					41,642						2.59	%		1.50	%		1.50	%		0.30	%
Global macro					47,647						1.51	%		6.21	%		7.81	%		5.88	%
Long / short credit					9,817						0.86	%		4.15	%		7.37	%		5.74	%
Long / short equity					90,866						2.48	%		2.86	%		3.16	%		4.61	%
Opportunistic					2,681						(1.60	%)		(3.05	%)		(2.44	%)		(9.36	%)
Hedge funds **					329,876						1.35	%		2.65	%		5.39	%		3.00	%
Catastrophe bonds					47,364
Derivatives					3,762
Structured deposits					25,036
Equity investments					5,237
Other investments				$	411,275
Total invested assets				$	7,960,763
Hedge Fund Investment Return Data:
HFRI Fund of Funds Composite Index [a]											3.23	%		2.01	%		3.51	%		2.15	%
Hedge Fund Performance History – 60 months ended Sept. 30, 2010
Annual standard deviation		6.80	%
Monthly performance	2010			2009			2008			2007			2006			2005
January		0.79	%		2.13	%		(1.37	%)		1.28	%		2.75	%
February		0.17	%		0.65	%		1.83	%		1.50	%		0.39	%
March		1.02	%		(0.76	%)		(2.58	%)		1.90	%		1.22	%
April		0.88	%		(0.84	%)		(0.13	%)		2.30	%		1.89	%
May		(0.73	%)		2.45	%		2.51	%		2.59	%		(1.74	%)
June		(0.83	%)		1.53	%		0.93	%		0.85	%		(0.66	%)
July		0.36	%		1.40	%		(4.12	%)		0.99	%		(0.71	%)
August		(0.28	%)		0.78	%		(2.14	%)		(1.62	%)		0.02	%
September		1.28	%		1.71	%		(7.31	%)		1.85	%		(2.04	%)
October					1.53	%		(4.85	%)		4.15	%		1.37	%		(1.45	%)
November					0.35	%		(1.75	%)		0.10	%		1.81	%		0.61	%
December					0.77	%		(1.92	%)		(0.13	%)		1.96	%		1.37	%
Quarterly performance
Q1		1.99	%		2.00	%		(2.15	%)		4.75	%		4.41	%
Q2		(0.69	%)		3.14	%		3.33	%		5.83	%		(0.54	%)
Q3		1.35	%		3.94	%		(13.03	%)		1.18	%		(2.72	%)
Q4					2.66	%		(8.31	%)		4.11	%		5.22	%		0.51	%
Period return		2.65	%		12.27	%		(19.38	%)		16.78	%		6.30	%		0.51	%

Past performance should not be considered to be a reliable indicator of future performance.

[a] As reported by HFRI as of October 28, 2010

* Annualized

** Net of all fees

28

ALTERRA CAPITAL HOLDINGS LIMITED

LARGEST 25 CORPORATE HOLDINGS (Unaudited)

(Expressed in thousands of United States Dollars)

	As of Sept. 30, 2010
	Amortized Cost		Fair Value
Issuer
JP Morgan Chase & Co		72,967		75,203
Bank of America Corp		60,493		62,243
General Electric		55,965		60,583
Wells Fargo & Co		58,496		59,879
Lloyds Banking Group Plc		54,375		55,639
Kreditanstalt Fuer Wiederaufbau		50,169		55,038
Morgan Stanley		45,983		47,954
Goldman Sachs Group Inc		42,107		43,393
Novartis AG		38,365		40,630
Verizon Communications Inc		37,499		39,813
Credit Suisse Group		37,942		39,618
Pfizer Inc		35,422		37,248
Citigroup Inc		33,140		33,761
Pepsico Inc		31,216		33,192
BP plc		32,110		32,651
AT&T Inc		29,748		31,378
UBS AG		29,538		30,898
Metlife Inc		26,437		27,723
Roche Holdings AG		23,987		26,314
HSBC Holdings Plc		25,012		25,572
Berkshire Hathaway Inc		24,417		25,255
Network Rail Ltd		24,280		24,650
Wal-Mart Stores Inc		22,399		23,723
Duke Energy Corp		21,672		23,310
Merck & Co Inc		22,216		23,062
	$	935,955	$	978,730

29

ALTERRA CAPITAL HOLDINGS LIMITED

SHAREHOLDER RETURN ANALYSIS (Unaudited)

(Expressed in thousands of United States Dollars, except per share and share amounts)

	FOR THE NINE MONTHS ENDED						FOR THE YEARS ENDED
	Sept. 30, 2010			Sept. 30, 2009			2009			2008
Income and Return on Equity:
Net income (loss)	$	222,665		$	183,623		$	246,215		$	(175,318	)
Net operating income (loss)	$	175,496		$	148,404		$	208,907		$	(143,752	)
Average shareholders’ equity	$	2,297,438		$	1,346,611		$	1,398,872		$	1,426,927
Annualized return on average shareholders’ equity [a]		12.9	%		18.2	%		17.6	%		(12.3	%)
Annualized net operating return on average shareholders’ equity [a]		10.2	%		14.7	%		14.9	%		(10.1	%)
Book value and dividends per share:
Diluted book value per share	$	25.88		$	26.54		$	27.36		$	22.46
Dividends paid per share	$	2.82		$	0.28		$	0.38		$	0.36
Change in diluted book value per share		(5.4	%)		18.2	%		21.8	%		(12.2	%)
Dividend payout ratio [b]		21.5	%		1.3	%		1.7	%		1.3	%
Total return to shareholders [c]		16.1	%		19.5	%		23.5	%		(10.9	%)

[a] Annualized return on average shareholders’ equity is defined as annualized net income divided by the average of the quarterly shareholders’ equity balances. Annualized net operating return on average shareholders’ equity is defined as annualized net operating income divided by the average of the quarterly shareholders’ equity balances. The average shareholders’ equity for the nine months ended September 30, 2010 has been weighted to include Harbor Point from May 12, 2010.

[b] Dividend payout ratio is calculated as dividends paid divided by beginning shareholders’ equity.

[c] Total return to shareholders is calculated as the change in diluted book value per share plus the dividend payout ratio.

30

ALTERRA CAPITAL HOLDINGS LIMITED

EARNINGS PER SHARE INFORMATION (Unaudited)

(Expressed in thousands of United States Dollars, except per share and share amounts)

	FOR THE QUARTERS ENDED				FOR THE NINE MONTHS ENDED
	Sept. 30, 2010		Sept. 30, 2009		Sept. 30, 2010		Sept. 30, 2009
Net income available to common shareholders	$	82,837	$	95,326	$	222,665	$	183,623
Denominator:
Weighted average shares - basic
Outstanding [a]		117,036,803		56,834,601		87,965,467		56,590,983
Unvested restricted share units		163,702		398,514		288,142		387,918
		117,200,505		57,233,115		88,253,609		56,978,901
Share equivalents:
Warrants		492,718		787,738		515,265		570,871
Options		154,142		189,648		194,219		127,413
Employee Stock Purchase Plan		2,301		—		2,330		811
Non participating restricted shares		108,276		—		36,092		—
Weighted average shares - diluted [b]		117,957,942		58,210,501		89,001,515		57,677,996
Basic earnings per share	$	0.71	$	1.67	$	2.52	$	3.22
Diluted earnings per share	$	0.70	$	1.64	$	2.50	$	3.18

[a] Includes weighted average unvested participating restricted shares

[b] Computed using the treasury method. The treasury method assumes that the proceeds received from the exercise of options or warrants will be used to repurchase the Company’s common shares at the average market price during the period of calculation.

31

ALTERRA CAPITAL HOLDINGS LIMITED

OPERATING INCOME RECONCILIATION (Unaudited)

(Expressed in thousands of United States Dollars, except per share and share amounts)

	FOR THE QUARTERS ENDED						FOR THE NINE MONTHS ENDED
	Sept. 30, 2010			Sept. 30, 2009			Sept. 30, 2010			Sept. 30, 2009
Before Tax
Net income	$	83,695		$	96,502		$	227,848		$	188,635
Net realized and unrealized (gains) losses on non-hedge fund investments, before tax [a]		(10,440	)		(1,189	)		2,692			(109	)
Foreign exchange losses (gains), before tax		3,353			406			267			(6,474	)
Merger and acquisition expenses, before tax		550			(41,350	)		(49,276	)		(31,342	)
Net operating income		77,158			54,369			181,531			150,710
Net of tax
Net income	$	82,837		$	95,326		$	222,665		$	183,623
Net realized and unrealized (gains) losses on non-hedge fund investments, net of tax [a]		(10,104	)		(711	)		2,672			1,166
Foreign exchange losses (gains), net of tax		2,758			395			780			(5,043	)
Merger and acquisition expenses, net of tax		550			(41,350	)		(50,621	)		(31,342	)
Net operating income		76,041			53,660			175,496			148,404
Weighted average shares outstanding:
Basic		117,200,505			57,233,115			88,253,609			56,978,901
Diluted		117,957,942			58,210,501			89,001,515			57,677,996
Basic per share data
Earnings per share	$	0.71		$	1.67		$	2.52		$	3.22
Net realized and unrealized (gains) losses on non-hedge fund investments, net of tax [a]		(0.09	)		(0.01	)		0.03			0.02
Foreign exchange losses (gains), net of tax		0.03			0.01			0.01			(0.09	)
Merger and acquisition expenses, net of tax		—			(0.72	)		(0.57	)		(0.54	)
Net operating income per share	$	0.65		$	0.95		$	1.99		$	2.61
Diluted per share data
Diluted earnings per share	$	0.70		$	1.64		$	2.50		$	3.18
Net realized and unrealized (gains) losses on non-hedge fund investments, net of tax [a]		(0.08	)		(0.01	)		0.03			0.02
Foreign exchange losses (gains), net of tax		0.02			0.01			0.01			(0.09	)
Merger and acquisition expenses, net of tax		—			(0.72	)		(0.57	)		(0.54	)
Net operating income per diluted share	$	0.64		$	0.92		$	1.97		$	2.57

[a] Net realized and unrealized losses (gains) on non-hedge fund investments includes realized and unrealized (gains) losses on trading securities, realized (gains) losses on available for sale securities, net impairment losses recognized in earnings, changes in fair value of investment derivatives, catastrophe bonds, structured deposits and income from equity method investments.

32

ALTERRA CAPITAL HOLDINGS LIMITED

BOOK VALUE PER SHARE (Unaudited)

(Expressed in thousands of United States Dollars, except per share and share amounts)

	As of Sept. 30, 2010		As of Dec. 31, 2009
Price per share at period end	$	19.92	$	22.30
Shareholders’ equity	$	3,036,537	$	1,564,633
Goodwill and intangible assets	$	60,670	$	48,686
Tangible book value	$	2,975,867	$	1,515,947
Basic common shares outstanding [a]		115,898,860		55,867,125
Add: unvested restricted stock units		167,971		406,514
Add: dilutive impact of warrants outstanding		1,100,626		683,163
Add: dilutive impact of options outstanding		153,547		221,656
Diluted shares outstanding [b]		117,321,004		57,178,458
Basic book value per share	$	26.20	$	28.01
Diluted book value per share	$	25.88	$	27.36
Basic tangible book value per share	$	25.68	$	27.13
Diluted tangible book value per share	$	25.37	$	26.51

[a] Includes unvested restricted shares

[b] Computed using the treasury method. The treasury method assumes that the proceeds received from the exercise of options or warrants will be used to repurchase the Company’s common shares at the period-end market price.

33

ALTERRA CAPITAL HOLDINGS LIMITED

REGULATION G

In presenting the Company’s results, management has included and discussed net operating income, net operating income per share, net operating income per diluted share, annualized net operating return on average shareholders’ equity, tangible book value per share and diluted tangible book value per share. These measures are “non-GAAP financial measures” as defined in Regulation G. Management believes that these non-GAAP financial measures, which may be defined differently by other companies, allow for a more complete understanding of the Company’s business. These measures, however, should not be viewed as a substitute for those determined in accordance with U.S. GAAP. The reconciliation of such measures to their respective most directly comparable U.S. GAAP financial measures is presented in the attached financial information in accordance with Regulation G.

Net operating income is defined as net income excluding after-tax net realized and unrealized gains or losses on non- hedge fund investments (this includes net realized and unrealized gains or losses on trading securities, net realized gains or losses on available for sale securities, net impairment losses recognized in earnings, changes in fair value of investment derivatives, catastrophe bonds, structured deposits and earnings from equity method investments), after-tax net foreign exchange gains or losses and after-tax merger and acquisition expenses. Net operating income per share and per diluted share is defined as the net operating income divided by the weighted average common shares or weighted average diluted common shares, respectively. We believe that this non-GAAP measure provides a better indication of management performance as realized and unrealized gains and losses on fixed maturities may fluctuate from period to period and foreign exchange gains and losses are typically outside the control of management. Merger and acquisition expenses are not indicative of expenses fundamental to the business and may fluctuate from period to period.

Annualized net operating return on average shareholders’ equity is defined as annualized net operating income divided by the average of the beginning and ending shareholders’ equity. Tangible book value is defined as shareholders’ equity excluding goodwill and intangible assets. Tangible book value per share and diluted tangible book value per share is defined as the tangible book value divided by the common shares outstanding or diluted common shares outstanding, respectively. These non-GAAP measures allow management to assess how the Company has performed in terms of wealth generated for its shareholders.

34

ALTERRA CAPITAL HOLDINGS LIMITED

Pro Forma Combined - Alterra Capital Holdings Limited and Harbor Point Limited

Selected Financial Information

The following presentation is for informational purposes only

35

ALTERRA CAPITAL HOLDINGS LIMITED

PRO FORMA COMBINED STATEMENTS OF INCOME [a] (unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE QUARTERS ENDED
	June 30, 2010			Mar. 31, 2010			Dec. 31, 2009			Sept. 30, 2009			June 30, 2009			Mar. 31, 2009
REVENUES
Gross premiums written	$	476,550		$	676,905		$	337,048		$	382,650		$	564,251		$	662,432
Reinsurance premiums ceded		(81,333	)		(159,515	)		(81,627	)		(73,703	)		(126,503	)		(168,155	)
Net premiums written	$	395,217		$	517,390		$	255,421		$	308,947		$	437,748		$	494,277
Net premiums earned	$	368,061		$	338,332		$	347,833		$	351,245		$	366,130		$	317,598
Net investment income		61,562			64,583			60,668			60,068			59,636			58,943
Net realized and unrealized (losses) gains on investments		(13,734	)		13,280			18,004			29,622			22,462			20,722
Net impairment losses recognized in earnings		(300	)		(420	)		(925	)		(139	)		(2,014	)		—
Net realized gain on retirement of senior notes		—			—			111			—			—			—
Other income		339			480			189			964			1,193			1,799
Total revenues		415,928			416,255			425,880			441,760			447,407			399,062
LOSSES AND EXPENSES
Net losses and loss expenses		213,517			210,543			166,573			181,064			186,301			178,130
Claims and policy benefits		13,943			17,659			16,976			14,378			55,407			14,332
Acquisition costs		64,315			53,998			54,042			59,613			53,317			47,611
Interest expense		8,061			5,226			6,978			6,292			5,146			4,351
Net foreign exchange (gains) losses		(1,622	)		(869	)		789			(116	)		(5,571	)		(1,911	)
Merger and acquisition expenses		—			—			—			(41,350	)		4,785			5,223
General and administrative expenses		60,137			51,611			66,157			57,048			53,979			57,508
Total losses and expenses		358,351			338,168			311,515			276,929			353,364			305,244
INCOME BEFORE TAXES		57,577			78,087			114,365			164,831			94,043			93,818
Income tax expense		4,294			1,311			5,686			2,910			3,206			1,990
NET INCOME		53,283			76,776			108,679			161,921			90,837			91,828

[a] The information presented above is on a combined pro forma basis (after the elimination of intercompany transactions and the amortization of certain acquisition accounting fair value adjustments). The pro forma financial information is provided for informational purposes only, to present a summary of the combined results of operations assuming the amalgamation with Harbor Point had occurred at the beginning of each calendar year presented. The pro forma data does not necessarily represent results that would have occurred if the amalgamation had taken place at the beginning of each calendar year presented, nor is it necessarily indicative of the future results.

36

EX-99.3

Exhibit 99.3

ALTERRA CAPITAL ANNOUNCES $0.12 DIVIDEND AND INCREASE IN SHARE REPURCHASE PLAN OF $200 MILLION

HAMILTON, BERMUDA, November 2, 2010—Alterra Capital Holdings Limited (NASDAQ: ALTE; BSX: ALTE.BH) (“Alterra”) announced today that the Company’s Board of Directors declared a dividend of $0.12 per share. The dividend is payable on November 30, 2010, to shareholders of record as of November 16, 2010.

In addition, on November 2, 2010, Alterra’s Board of Directors authorized an increase in the share repurchase plan of $200.0 million. Following this authorization, the amount available as of November 2, 2010 is $222.7 million.

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. Alterra was formed on May 12, 2010 by the merger of Max Capital Group Ltd. and Harbor Point Limited.

Cautionary Note Regarding Forward-Looking Statements

This release may include forward-looking statements that reflect Alterra’s current views with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those suggested by such statements. For further information regarding cautionary statements and factors affecting Alterra’s future results, please refer to the most recent reports on Form 10-K and Form 10-Q and other documents filed by Alterra with the SEC. Alterra undertakes no obligation to update or revise publicly any forward-looking statement whether as a result of new information, future developments or otherwise.

Contacts Susan Spivak Bernstein Senior Vice President susan.spivak@alterra-bm.com 1-212-898-6640   Roanne Kulakoff or Peter Hill Kekst and Company roanne-kulakoff@kekst.com peter-hill@kekst.com 1-212-521-4800