Stone Point sells reinsurer Alterra Capital to Markel Corp


Stone Point Capital-backed reinsurer Alterra Capital has been bought for $3.13bn by speciality insurance underwriter Markel Corp.

Markel will merge Alterra’s operations with its own following the deal, with each Alterra common share being converted into the right to receive about 0.04 Markel common shares, plus a cash payment of $10.

Following the merger Markel’s existing shareholders will own about 69 per cent of the combined entity once the deal is completed, which is expected to happen in the first half of 2013.

Stone Point created Alterra in 2010 through the merger of Max Capital and Harbor Point, which it bought in December 2005 through its $1.1bn Trident Fund III vehicle.

The global insurance and reinsurance company provides diversified speciality products to corporations, public entities, property and casualty insurers and life and health insurers

Stone Point has raised about $9bn across five Trident funds since 1994, with its most recent closing on $3.5bn in 2010.

The firm focuses on deals in the financial services sector.

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