ALTERRA CAPITAL HOLDINGS Ltd - FORM 8-K - EX-99.1 - SLIDES FROM PRESENTATION BY MANAGEMENT.

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Investor Presentation

Year Ended December 31, 2010

Exhibit 99.1

Cautionary Note Regarding Forward-Looking Statements

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

(“Harbor Point”). This presentation 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

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.

These factors include, but are not limited to, the following: (1) the adequacy of loss and benefit 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

effect of cyclical trends, including with respect to demand and pricing in the insurance and reinsurance markets; (4)

changes in general economic conditions, including changes in capital and credit markets; (5) any lowering or loss of

financial ratings; (6) the occurrence of natural or man-made catastrophic events with a frequency or severity exceeding

expectations; (7) actions by competitors, including consolidation; (8) the effects of emerging claims and coverage issues;

(9) the loss of business provided to Alterra by its major brokers; (10) the effect on Alterra’s investment portfolio of

changing financial market conditions including inflation, interest rates, liquidity and other factors; (11) tax and regulatory

changes and conditions; (12) retention of key personnel; (13) the integration of new business ventures Alterra may enter

into; and 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 Securities and Exchange

Commission. Any forward-looking statements made in this presentation 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.

Alterra’s

Franchise is Well Positioned For Success

Global underwriter of specialty insurance and reinsurance

Multiple

operating

platforms

Bermuda,

Ireland,

United States, Lloyd's, Latin America

Strong franchise positions across multiple specialty

classes of business

Opportunistic and disciplined underwriting strategy

Strong culture of risk management

Analytical and quantitative underwriting orientation

Rolling 5 year average combined ratio, with cats, of

87.7%

Strong, liquid balance sheet with conservative reserving

track record

Shareholders equity ~ $2.9 billion at 12/31/10

Low operating and financial leverage provides

enhanced flexibility

Proven track record of active capital management

Returned $559 million or ~18% of pro forma 12/31/09

shareholders' equity

(1)

in 2010 through dividends and

share repurchases

Rated “A”

(Excellent) by AM Best

2010 GPW

(2)

Long-Tail

46%

Short-Tail

54%

Insurance

43%

Reinsurance

57%

(1)

Shareholders' equity of Max Capital and Harbor Point on a combined pro forma basis.

(2)

Pro forma gross premiums written as if the amalgamation occurred on January 1, 2010.

(3)

AM Best ratings reflect the agency’s opinion of our financial strength, operating performance and ability to meet our obligations. The ratings are not evaluation

directed toward the protection of investors in securities of Alterra.

Solid Fourth Quarter Results

Fourth quarter 2010 net operating

diluted EPS of $0.66 per share

Decrease from Q4/09 principally due to

increased outstanding shares from

Harbor Point merger

P&C gross premiums written grew

13.5% to $313.5 million

Driven by the inclusion of Harbor Point,

new business in Latin America, and

expansion at Lloyd’s and U.S.

Specialty

Net investment income up 36.7% to

$61.1 million

Reflects additional cash and invested

assets from inclusion of Harbor Point

Q4 combined ratio of 84.8%

Catastrophe losses from Q4 events of

$13.0 million

Diluted book value per share of $25.99

at 12/31/10

P&C GPW

(13.5% increase)

Operating

Diluted EPS

Growth in Gross Premiums Written…

…With Solid Operating EPS

Operating ROE

15.5%

10.2%

Combined ratio

81.2%

84.8%

= pro forma gross premiums written as if the amalgamation occurred on January 1, 2009

$276.3

$313.5

Q4 '09

Q4 '10

$1.04

$0.66

$335.0

Q4 '09

Q4 '10

Solid 2010 Year Results

Full Year 2010 net operating diluted

EPS of $2.64 per share

Decrease from 2009 principally due to

increased outstanding shares from

Harbor Point merger

P&C gross premiums written grew

5.6% to $1,405.8 million

Driven by the inclusion of Harbor Point,

new business in Latin America, and

expansion at Lloyd’s and U.S.

Specialty

Net investment income up 31.1% to

$222.5 million

Reflects additional cash and invested

assets from inclusion of Harbor Point

Combined ratio of 85.7%

Catastrophe losses from 2010 events

of $54.9 million

Diluted book value per share of $25.99

at 12/31/10

P&C GPW

(5.6% increase)

Operating

Diluted EPS

Growth in Gross Premiums Written…

…With Solid Operating EPS

Operating ROE

14.9%

10.2%

Combined ratio

88.1%

85.7%

= pro forma gross premiums written as of the amalgamation occurred on January 1, 2009

$1,331.2

$1,405.8

$3.62

$2.64

2009

2010

2009

2010

$1,902.6

$1,789.1

Challenging Times for P&C Insurers

Profitable growth opportunities are scarce

Market is stressed by historic low returns on invested assets

Cash flow levels are deteriorating

2010 Industry loss events have generated high catastrophe losses

Reserve redundancies at many companies are diminishing

Self-assessment on certain lines and overall strategy

Excess capital positions managed through share repurchases

Soft markets provide the opportunity to differentiate between the

stronger and weaker players

Pricing Pressure Across Most Platforms

____________________

Rate

commentary

reflects

the

Alterra

renewal

book

1/1/11.

Stringent underwriting and risk management practices

Reward for ROE, not premium growth

Avoid mistakes –

protect the balance sheet

Position for inflection point in pricing

Expense management

Strong controls across the organization

Invest in the future

Latin America, Lloyd’s, Alterra USA

Balance between expenses and expansion

Capital management

Stay alert to accretive M&A opportunities

Soft Market “Playbook”

Stay focused on the message

Positioned to Successfully Execute

____________________

(1) Shareholders' equity of Max Capital and Harbor Point on a

combined

pro forma basis.

2004

Insurance

Property

2003

Insurance

Excess Liability

Professional Liability

2005

Reinsurance

Property / Property Cat

Harbor Point formed

2006

Insurance

Aviation

2008

Lloyd's Insurance

Financial Institutions

Prof. Indemnity

Lloyd's Reinsurance

Accident / Health

Property

2007

U.S. E&S Insurance

Property

Inland Marine

U.S. Casualty

Reinsurance

Multi Peril Crop

Experienced &

highly quantitative

underwriting teams

Lead underwriters average over 20 years in the

business

High percentage of employees hold

professional designations

2009

Lloyd's

Casualty (non U.S.)

A&H Insurance

U.S. Specialty

Professional Liability

Latin America Reinsurance

2002

Traditional Re

Workers' Comp

Medical Malpractice

GL / PL

Aviation

Identifying & Recruiting "Franchise Players" Has Been

Instrumental In Our Success

2010

Alterra formed

by the merger of Max

Capital and Harbor Point

Reinsurance

Insurance

Lloyd’s

U.S. Specialty Insurance

Major

Classes

–

Agriculture

–

Aviation

–

General casualty

–

Life and annuity

–

Marine and energy

–

Medical malpractice

–

Professional liability

–

Property

–

Surety, credit & political risk

–

Whole account

–

Workers’ comp

–

Aviation

–

Excess liability

–

Professional liability

–

Property

–

Aviation

–

Accident and Health

–

Financial institutions

–

International casualty

treaty

–

Personal accident treaty

–

Professional liability

–

Property treaty

–

General liability

–

Marine

–

Miscellaneous

professional liability

–

Property

Operating

Regions

–

Australia

–

Canada

–

European Union

–

Japan

–

Latin America

–

New Zealand

–

United States

–

European Union

–

United States

–

Denmark

–

Japan

–

Latin America

–

United Kingdom

–

United States

Offices

–

Bermuda

–

Bogotá

–

Buenos Aires

–

Dublin

–

London

–

New Jersey

–

Bermuda

–

Dublin

–

Hamburg

–

Zurich

–

Copenhagen

–

Leeds

–

London

–

Rio de Janeiro

–

Tokyo

–

Atlanta

–

Dallas

–

New York

–

Philadelphia

–

Richmond

–

San Francisco

–

Sebastopol

Local Knowledge

Global Reach

____________________

Note:

Pro forma gross premium written (“GPW”) represents the combined GPW of Max Capital and Harbor Point net of intercompany eliminations of GPW.

Insurance

(26.2% of 2010 P&C GPW)

Reinsurance

(36.1% of 2010 P&C GPW)

Professional

Liability

Property

Excess

Liability

Aviation

General Casualty

Property

Aviation

Workers Comp.

Professional Liability

Other

Med. Mal.

Marine & Energy

Agriculture

2010 GPW: $370.1 million

= pro forma

Auto

$1,060.4

$892.4

Alterra Has a Strong Market Position in Specialty Classes …

Credit/ Surety

Whole Account

2010 GPW: $509.1 million

U.S. Specialty

(23.0% of 2010 P&C GPW)

Alterra at Lloyd’s

(14.4% of 2010 P&C GPW)

…With an Attractive Position in the U.S. Market and Lloyd’s

Professional

Liability

Property

Marine

General

Liability

Property

Aviation

Fin. Institutions

Prof. Liability

Accident & Health

2009 GPW: $285.5 million

2009 GPW: $129.0 million

2010 GPW: $324.0 million

2010 GPW: $202.6 million

Launched in 2007

Nationwide niche E&S underwriter

84% non-admitted

2010 combined ratio = 97.9%

Acquired in November 2008

Direct and reinsurance

2010 combined ratio = 83.4%

Int’l Casualty

Surety

Long-Tail

Short-Tail

North America

Europe

Other

Credit/ Surety and

Other Short-Tail

Agriculture

Marine & Energy

Property

Aviation

Auto

Professional

Liability

Medical Malpractice

General Casualty

Workers’

Comp

Whole Account

Insurance

Mixed

2010 GPW = $1,410.7 million

____________________

(1) Pro forma as if Harbor Point merger occurred on January 1, 2010.

(2) Includes Reinsurance segment (49.7%), Life & Annuity reinsurance (0.3%) and reinsurance written through Lloyd’s platform (7.4%).

Diversified and Balanced Business Mix

Global Platform

(1)

Line of Business

(1)

2010 pro forma GPW = $1,794.1 million

Accident & Health

Life & Annuity

Reinsurance

(2)

Losses

$305.7

$95.1

$105.0

$306.0

$60.0

$317.0

$122.7

$112.2

$125.0

$124.0

$77.7

$63.0

$26.0

$58.0

$43.0

____________________

Source:

Company

filings

and

press

releases;

losses

are

generally

disclosed

net

tax

and

net

reinstatement

premiums.

(1)

Q2 net losses reflect only losses from the Chilean earthquake. Initial losses include the Chilean earthquake and Windstorm Xynthia.

(2)

Q2 net losses reflect Q1 estimates plus reported development, if

any.

(3)

Initial loss estimate reflects 50% to 90% of Reuters consensus net operating earnings prior to the earthquake, based on disclosure that net income would remain positive for the quarter.

(4)

Initial estimates based on Chile and Xynthia, ultimate losses include the Chilean, Haitian, and Baja earthquakes, Xynthia and the Australian hailstorms. Based on international catastrophe losses being two-thirds of

total catastrophe losses as disclosed in the earnings conference

call.

(5)

Initial estimate is as of the first quarter conference call. Both initial and revised estimates reflect only the Chilean earthquake.

(6)

Pro forma; includes losses from Harbor Point and Max Capital prior to the merger. Expressed as a percentage of proforma 12/31/09 shareholders’

equity prior to the special dividend.

(1)

(2)

(1)

(2)

(3)

(1)(4)

(1)

(2)

(2)(5)

(6)

Chilean Earthquake / Windstorm Xynthia Ultimate Net Losses as a % of 12/31/09 Common Equity ($ in millions)

Superior Risk Management Skills. . .

6.1%

Initial Estimate

1.5%

7.6%

5.4%

0.2%

5.5%

1.2%

1.3%

2.4%

2.1%

2.5%

3.2%

3.3%

4.4%

4.1%

0.1%

0.2%

0.3%

0.4%

0.3%

0.6%

0.8%

0.9%

1.0%

1.3%

1.5%

1.6%

2.4%

2.5%

3.1%

3.8%

4.4%

5.0%

5.1%

Revised Estimate

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

(1)

(3)

(2)

Losses

$256

$140

$276

$140

$135

$165

$287

$384

$171

$125

$148

$155

$113

$257

$50

(4)

____________________

Source: Company filings, as of 12/31/08. Losses are generally disclosed net of reinstatement premiums.

(1)

Results reflect Ike only.

(2)

Equity includes preferred, which subsequently converted to common.

(3)

Equity includes convertible note, which subsequently converted to common.

(4)

TRH does not disclose specific losses but did lose "$169.7 million principally relating to Hurricane Ike."

$170

$305

Revised Estimate

Initial Estimate

(2)

Ike

Gustav

Ultimate

Net

Losses

6/30/08

Common

Equity

millions)

3.4%

3.8%

3.0%

4.2%

5.2%

6.0%

6.4%

7.2%

5.2%

7.8%

3.7%

5.3%

6.7%

8.3%

10.1%

6.6%

8.0%

4.4%

4.3%

0.0%

0.6%

2.2%

3.0%

4.3%

0.3%

2.6%

0.7%

0.3%

0.8%

1.8%

0.8%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

12.4%

11.0%

10.1%

8.9%

8.4%

8.1%

7.8%

7.2%

7.0%

6.3%

6.0%

5.0%

4.8%

4.6%

3.4%

FSR

RNR

MRH

IPCR

PTP

ACGL

AXS

PRE

AHL

ENH

ORH

TRH

AWH

MXGL

. . . Less Exposed to Swings in the Cat Market

Florida wind

1 in 100 year event -

$368 million net loss

California earthquake

1 in 250 year event -

$333 million net loss

Europe wind

1 in 100 year event -

$195 million net loss

PML’s In-force as of January 1, 2011

____________________

Short tail lines contributed to 77% of total growth over

the 3 years to 2010

Strong Cycle Management Discipline

Long Tail (GPW)

Short Tail (GPW)

($ in millions)

Non-Traditional

Year over year growth:

Lloyd's

61.2%

U.S. Specialty

274.7%

46.5%

4.9%

Reinsurance

(6.1%)

(30.7%)

281.4%

17.2%

(13.7)%

19.2%

(10.0)%

Insurance

141.7%

13.4%

13.5%

25.7%

(23.2%)

Total

(5.0%)

(12.8%)

251.3%

23.0%

5.3%

36.7%

(2.7)%

Lloyd's

49.2%

U.S. Specialty

386.2%

47.8%

32.7%

Reinsurance

(1)

21.8%

72.2%

99.8%

(15.9%)

(8.3%)

16.4%

(21.2%)

Insurance

50.7%

30.5%

(2.3%)

(7.9%)

(2.2%)

3.9%

(9.0%)

Total

38.1%

46.6%

43.9%

(11.4%)

1.5%

18.9%

(8.5%)

(1)

Excludes non-traditional, which is composed of structured contracts that Alterra stopped writing in 2003.

(2)

Gross Premiums written for 2006-2010 include premiums written by both Max Capital and Harbor Point after eliminating the impact of intercompany transactions.

Conservative Reserve Position with High % of IBNR

____________________

Note: Includes the results of Harbor Point from May 12, 2010, the closing date of the merger.

$297

$278

2010

2009

2010

2009

2010

2009

2010

2009

IBNR

Case

Insurance

Reinsurance

Alterra

at Lloyd's

U.S. Specialty

($ in millions)

27%

24%

28%

73%

76%

68%

72%

$1,306

$1,240

$2,042

$1,471

$261

$189

$500

$1,000

$1,500

$2,000

$2,500

32%

75%

25%

36%

64%

38%

62%

50%

Favorable Reserve

Development

$5.9

$45.1

$90.8

$77.2

$105.5

Development as a

% of Net Reserves

0.3%

2.5%

4.1%

3.4%

Consistent Favorable

Reserve Development

Net Loss Reserves

($ in millions)

____________________

Note: Reserve development and net reserves prior to May 12, 2010 are for Max Capital only. Reserve development excludes changes in reserves resulting from changes in

premium estimates on prior years’contracts.

$1,840

$1,796

$2,128

$2,213

$2,985

500

1,000

1,500

2,000

2,500

3,000

3,500

2006

2007

2008

2009

2010

High Quality, Liquid Investment Portfolio

Alterra maintains a high quality, liquid portfolio

95.2% of portfolio in fixed income/cash, which consists of highly

rated securities

Assets are generally matched to liabilities

Cycle

management

extends

investments

–

current

posture

is defensive

Cash balance $905.6 million or 11.5% of portfolio

As of December 31, 2010, average fixed income duration of

approximately 4.2 years, including cash

63.0% of the cash and fixed maturities portfolio is held in cash,

government

agency-backed

securities

and

“AAA”

securities

69.6%

fixed

income

portfolio

rated

“AA”

better

Hedge fund investments are marked-to-market as of December 31,

2010

Minimal exposure to selected asset classes

CMBS

$334.2

million

(4.3%

portfolio)

–

average

rating

AA+/Aa1

ABS of $87.9 million (1.1% of portfolio)

RMBS

$1,168.4

million

(14.9%

portfolio)

–

91.1%

agency-

backed

No CDO’s, CLO’s, SIV’s or other highly structured securities

Less than $6 million of OTTI losses in the last two years

Carrying Value $7.9 billion

December 31, 2010

Cash

12%

Other

Investments

Fixed Income

83%

2011 Plan

Focus on growing book value per share

Opportunistically allocate capital across segments

Emphasize shorter-tail lines more than longer-tail

New initiatives will be weighted more towards specialty lines

Capital management through share repurchases and regular

dividends

Protect our strong, clean balance sheet

____________________

Note:

Primary price / diluted book value multiple as of 2/11/11.

Strongly Positioned to Build Shareholder Value

Franchise positions in attractive specialty markets

Well established operating platforms provide global access to

business

Diversified business portfolio across casualty and property lines

Opportunistic

approach

–

nimble

and

responsive

market

trends

High-quality liquid investment portfolio

Invested asset leverage intended to drive more consistent returns

Balance sheet strength with low leverage / financial flexibility

Attractive entry point –

price / diluted book value of 0.84x

Appendices

December 31,

2010

2009

Cash & Fixed Maturities

7,483

4,944

Other Investments

378

318

Premium Receivables

589

567

Losses Recoverable

956

1,001

Other Assets

511

510

Total Assets

9,917

7,340

Property & Casualty Losses

3,906

3,178

Life & Annuity Benefits

1,276

1,373

Deposit Liabilities

148

153

Funds Withheld

121

140

Unearned Premium

905

628

Senior Notes

440

Other Liabilities

203

213

Total Liabilites

6,999

5,775

Shareholders' Equity

2,918

1,565

9,917

7,340

Strong Balance Sheet

($ in millions)

____________________

(1)

Results for the year ended December 31, 2010 include results from Harbor Point following the close of the merger on May 12, 2010.

YTD Results Comparison

($ in millions)

Years ended

(1)

Pro forma years ended

(2)

December 31,

2010

2009

2010

2009

Gross Premiums Written

1,411

1,375

1,794

1,940

Net Premiums Earned

1,172

834

1,392

1,383

Net Investment Income

222

170

247

239

Net Realized and Unrealized Gains on Investments

Other Than Temporary Impairment Charges

(3)

Other Income

Total Revenues

1,413

1,086

1,666

1,714

Total Losses, Expenses & Taxes

1,111

840

1,373

1,261

Net Income

302

246

293

453

Net Operating Income

252

209

Property & Casualty Underwriting

Loss Ratio

56.1%

62.4%

Expense Ratio

29.6%

25.7%

Combined Ratio

85.7%

88.1%

(1)

Results for the year ended December 31, 2010 include results from Harbor Point following the close of the merger on May 12, 2010.

(2)

Pro forma 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 on January 1, 2009. The pro forma information assumes the elimination of intercompany transactions and the amortization of certain acquisition accounting fair value

adjustments. The pro forma information does not necessarily represent results that would have occurred if the amalgamation had taken place on January 1, 2009, nor is it necessarily

indicative of the future results.

Year ended December 31, 2010

($ in millions)

Differences in table due to rounding. Includes results from Harbor Point following the close of the merger on May 12, 2010.

(1)

Property and Casualty only.

Diversified Operating Platform

Life &

Property & Casualty

Annuity

Corporate

Consolidated

Alterra

Insurance

Reinsurance

U.S. Specialty

Lloyd's

Total

Reinsurance

Gross premiums written

$370.1

$509.1

$324.0

$202.6

$1,405.8

$4.9

$1,410.7

Reinsurance premiums ceded

(170.6)

(64.1)

(98.6)

(37.4)

(370.7)

(0.4)

(371.1)

Net premiums written

$199.5

$445.0

$225.4

$165.2

$1,035.1

$4.5

$1,039.6

Earned premiums

391.7

699.2

312.0

170.8

1,573.7

4.9

1,578.6

Earned premiums ceded

(173.1)

(71.6)

(125.2)

(35.8)

(405.7)

(0.4)

(406.1)

Net premiums earned

$218.6

$627.6

$186.8

$135.0

$1,168.0

$4.5

$1,172.5

Net investment income

$25.1

$60.1

$5.2

$11.6

$102.0

$49.8

$70.7

$222.5

Net realized and unrealized gains (losses) on investments

0.6

0.7

(4.5)

(3.2)

11.4

8.6

16.8

Net impairment losses recognized in earnings

(2.6)

Other income

0.8

0.5

2.5

3.8

0.3

0.7

4.8

Total revenues

$245.1

$688.4

$192.5

$144.6

$1,270.6

$66.0

$77.4

$1,414.0

Net losses and loss expenses

$128.8

$347.8

$118.3

$59.9

$654.8

Claims and policy benefits

65.2

Acquisition costs

3.4

131.1

28.4

24.2

187.1

0.4

187.5

Interest expense

1.0

7.0

8.0

5.8

14.5

28.3

Net foreign exchange losses (gains)

1.7

(1.7)

(0.1)

Merger and acquisition expenses

(48.8)

General and administrative expenses

28.6

66.1

36.0

28.5

159.2

3.0

58.4

220.6

Total losses and expenses

161.8

553.7

182.7

110.9

1,009.1

74.4

24.0

1,107.5

Income before taxes

$83.3

$134.7

$9.8

$33.7

$261.5

($8.4)

$53.4

$306.5

Loss ratio

58.9%

55.4%

63.4%

44.3%

56.1%

Acquisition cost ratio

1.6%

20.9%

15.2%

17.9%

16.0%

General and administrative expense ratio

13.1%

10.5%

19.3%

21.2%

13.6%

Combined ratio

(1)

73.6%

86.8%

97.9%

83.4%

85.7%

ALTERRA CAPITAL HOLDINGS Ltd - FORM 8-K - EX-99.1 - SLIDES FROM PRESENTATION BY MANAGEMENT. - February 14, 2011

Attached files