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8-K - FORM 8-K - ALTERRA CAPITAL HOLDINGS Ltdd446060d8k.htm
Investor Presentation
Quarter Ended September 30, 2012
Exhibit 99.1


2
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 (14) 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.
Cautionary Note Regarding Forward-Looking Statements


3
Alterra’s Franchise is Well Positioned For Success
Global underwriter of specialty insurance and reinsurance
Multiple
operating
platforms
-
Bermuda,
Ireland,
United
States, Lloyd's and 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
Business mix shift towards shorter-tail lines
5 year average combined ratio (including cats) of 91.9%
Liquid balance sheet with conservative reserving track record
Shareholders’
equity ~ $2.9 billion at 9/30/12
Low operating and financial leverage
S&P rating and AM Best ratings of “A”
Proven track record of active capital management
Q3 YTD 2012 repurchases of $158.7 million and dividends
of
$42.5
million,
or
7.2%
of
1/1/12
shareholders’
equity
2011 repurchases of $223.1 million and dividends of $54.5
million,
or
9.5%
of
1/1/11
shareholders’
equity
Increased quarterly dividend in August 2012 from $0.14 to
$0.16 per share
Q3 YTD 2012 GPW


4
Third Quarter 2012 Results
Q3 2012 net operating diluted EPS of $0.33 per
share
Overall P&C gross premiums written remained
consistent with the same period in 2011
Premium growth in US Insurance and
shorter-tail lines offset by declines in longer-
tail reinsurance lines
P&C net premiums written decreased 11.1% to
$262.1 million
Driven by increased reinsurance purchases
to manage aggregate exposures
Net investment income of $53.5 million
compared to $60.3 million in Q3 2011 reflects
continued impact of low investment yields
Combined ratio of 99.9% compared to 87.7% in
Q3 2011 reflects higher cat and crop losses
Diluted book value per share of $29.57 at
9/30/12 up from $26.91 at 12/31/11.  Additional
$1.97 per diluted share of unrecorded unrealized
gains in the held to maturity investment portfolio².
Q3 2012 impacted by $7.6 million of equity
earnings and fee income from New Point Re IV.
P&C GPW
Growth in Book Value
87.7%
99.9%
Diluted Book Value per Share
(9.9% increase¹)
Expansion into new lines and regions
1
Including adding back $0.44 per share of dividends through 9/30/2012.
2
Unrealized gains on the held to maturity fixed maturity investments are not included in equity as the investments are carried
on the balance sheet at amortized cost.
$385.5
$385.5
Sep 30, 2011
Sep 30, 2012
$26.91
$29.57
Dec 31, 2011
Sep 30, 2012
Combined Ratio


GPW $’millions
Q3 YTD 2012
Q3 YTD 2011
Period over Period
Growth %
Bermuda/ Dublin
242.7
215.4³
US Reinsurance
41.7
28.5
GPW on contracts bound by Alterra in the period¹
284.4
243.9
16.6%
Alterra’s share of New Point Re IV premiums
2
26.2
3.1
Total property reinsurance gross premiums
310.6
247.0
25.7%
Total property reinsurance net premiums
4
191.7
179.3
6.9%
Growth in Reinsurance Segment Property Premiums
1
Excluding premium adjustments and reinstatement premiums.
2
34.8% share of New Point Re IV gross premiums written. These premiums are not included in Alterra’s reported gross premiums written as the investment in New
Point Re IV is accounted for under the equity method.
3
Q3 YTD 2011 includes $13.4 million of New Point Re III gross premiums written. These premiums are included in Alterra’s reported gross premiums written as Alterra
owns 100% of New Point Re III.
4
Includes Alterra’s share of New Point Re IV net premiums written.
16.6% growth in Alterra’s reinsurance segment property premiums reflects
improved market conditions
Participation
in
New
Point
Re
IV
increased
year
over
year
growth
to
25.7%
5


6
New Point IV and V
Sidecar vehicles formed to create additional capacity for the property
catastrophe collateralized marketplace 
“Just in time”
capital as it is called down and utilized when needed
New Point IV -
$200 million of capital fully deployed in 2012
Alterra has a 34.8% equity interest
GPW was $75.4 million for the nine months ended September 30, 2012
Income of $15.8 million recognized for nine months ended
September 30, 2012
New
Point
V
-
$223
million
of
available
capacity
as
of
September
30,
2012
New Point vehicles allow us to leverage our underwriting skills to earn fees
while providing additional capacity to brokers and clients  


7
2011 global industry cat losses were over $105 billion
Market stressed by historic low returns on invested assets
Cash flow levels deteriorating
Industry reserve redundancies diminishing
Property cat rate increases have slowed but losses from Hurricane
Sandy likely to reverse the trend
Casualty lines continue to show modest improvement
Pricing poised to positively move further with the next catalyst
Market Transitioning. . .
Alterra is positioned to be a beneficiary of improving market conditions


8
Pricing Is Improving For The First Time Since 1999. . .
More Rate Improvement Is Needed To Meaningfully Increase Exposure
Source:  RBC Capital Markets and CIAB Commercial Property and Casualty Market Index Survey
Large Accounts:
Rates Remain Below 1999
Medium Accounts:
Rates ~3% Above 1999
Small Accounts: 
Rates ~13% Above 1999
170
160
150
140
130
120
110
100
90
Small
Medium
Large


9
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
2011
Lloyd’s
Property Direct &
Facultative
U.S. Specialty
Excess Casualty


10
Local Knowledge —
Global Reach
Reinsurance
Major
Classes
Operating
Regions
Offices
Insurance
Lloyd’s
> Auto
> Aviation
> Environmental Impairment
> Financial Institutions
> General Casualty
> Marine and Energy
> Medical Malpractice
> Professional Liability
> Property
> Surety, Credit and
Political Risk
> Terror
> Whole Account
>
Workers’
Compensation
> Worldwide
> Worldwide
> Worldwide
> Activation
> Excess Casualty
> Excess Liability
> General Liability
> Marine
> Professional Liability
> Property 
> Accident & Health
> Agriculture
> Aviation
> Casualty
> Financial Institutions
> Marine
> Professional Lines
> Property
> Surety
> Bermuda
> Bogotá
> Buenos Aires
> Dublin
> London
> Rio de Janeiro
> Summit, NJ
> Atlanta
> Bermuda
> Chicago
> Dallas
> Dublin
> Hamburg
> London
> New York
> Richmond
> San Francisco
> Sebastopol, CA
> Zurich
> London
> Rio de Janeiro
> Tokyo
> Zurich


____________________
Note:
Pro forma gross premium written (“GPW”) represents the combined GPW of Max Capital and Harbor Point net of intercompany eliminations of GPW.
Global Insurance
(17.0% of Q3 YTD 2012 P&C GPW)
Reinsurance
(47.9% of  Q3 YTD 2012 P&C GPW)
Professional
Liability
Property
Excess
Liability
Aviation
General Casualty
Property
Aviation
Workers Comp.
Professional Liability
Other
Med. Mal.
Marine & Energy
Agriculture
Q3 YTD 2012 GPW: $273.7 million
= pro forma
$1,060.4
$907.2
Alterra Has a Strong Market Position in Specialty Classes …
Credit/ Surety
Q3 YTD 2012 GPW: $772.8 million
$870.4
Auto
23%
4%
44%
29%
6%
5%
8%
3%
3%
6%
3%
3%
45%
17%
$500.0
$400.0
$300.0
$200.0
$100.0
$0.0
2008
2007
2011
2009
2012
Q3 YTD
$382.9
$389.4
$370.1
$365.8
$273.7
2010
2008
2007
2011
2009
2012
Q3 YTD
2010
$1,200.0
$800.0
$600.0
$400.0
$200.0
$0.0
$1,000.0
$447.3
$998.3
$900.4
$772.8
$423.6
$345.2
$419.5
$531.9
11
1%


U.S. Insurance
(18.9% of Q3 YTD 2012 P&C GPW)
Alterra at Lloyd’s
(16.2% of Q3 YTD 2012 P&C GPW)
…With an Attractive Position in the U.S. Market and Lloyd’s
Professional
Liability
Property
Marine
Excess/
General
Liability
Property
Agriculture
Aviation
Financial Institutions
Accident & Health
Q3 YTD 2012 GPW: $304.5 million
Q3 YTD 2012 GPW: $261.2 million
Int’l Casualty
Marine
Professional  Liability
12
14%
25%
35%
26%
35%
14%
24%
7%
7%
7%
3%
3%
2009
2010
2011
2012
Q3 YTD
$400.0
$300.0
$200.0
$100.0
$0.0
$194.3
$265.9
$324.0
$374.7
$304.5
$300.0
$200.0
$100.0
$0.0
2008
2009
2010
2011
2012
Q3 YTD
2008
$8.8
$129.0
$179.8
$253.1
$261.2


North America
Europe
Other
Reinsurance
(1)
Insurance
Q3 YTD 2012 GPW  = $1,614.4 million
____________________
(1) Includes
Reinsurance
segment,
Life
&
Annuity
reinsurance
and
reinsurance
written
through
Lloyd’s
platform.
Diversified and Balanced Business Mix
Global Platform
Q3 YTD 2012
Line of Business
Q3 YTD 2012
Auto
Aviation
Marine & Energy
Agriculture
Accident & Health
Other Short-Tail
Credit/Surety
Medical Malpractice
Workers' Comp
Financial Institutions
Professional Liability
General Casualty
Property
2%
3%
7%
3%
2%
1%
37%
19%
17%
3%
13
17%
10%
73%
59%
41%
2%
1%
2%
1%
Whole Account


14
____________________
Source:  Company filings, SNL Financial.
Diversified reinsurers include RE, AXS, ACGL, TRH, PRE, AWH, ENH, AHL, PTP, AGII, ALTE . Property focused reinsurers include RNR, VR, MRH and FSR.
Diversified Reinsurers
Property Focused Reinsurers
Diversified Platforms Generate More Consistent Margins
Alterra has had one of
the lowest combined
ratios of its peer group
Alterra has performed well within its diversified peer group with less volatility than property focused reinsurers
25%
50%
75%
100%
125%
150%
175%
200%
225%
140%
48%
59%
79%
21%
45%
99%
38%
66%
201%
60%
73%
92%
75%
100%
154%
96%
106%
0%
2005
2006
2007
2008
2009
2010
2011
H2 2012
Average
96%
77%
75%
84%
76%
85%
96%
82%
84%
124%
96%
99%
101%
97%
103%
143%
103%
108%
0%
25%
50%
75%
100%
125%
150%
175%
200%
225%
2005
2006
2007
2008
2009
2010
2011
H2 2012
Average
Median
115%
84%
83%
94%
84%
93%
115%
89%
95%
Alterra
106%
86%
88%
92%
88%
86%
98%
90%
92%
Median
170%
56%
62%
90%
66%
84%
125%
71%
90%


15
3 Year Return on Equity
Alterra’s ROEs Have Been Less Volatile Than Most Peers
____________________
Source:
JMP
Research,
SNL
Financial.
Three
years
ended
December
31,
2011.
Alterra ROE reflects Pro-Forma data for Max and Harbor Point prior to the merger in May 2010.
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
4%
6%
8%
10%
12%
14%
16%
ACGL
AWH
ALTE
VR
AXS
AHL
RNR
ENH
MRH
PRE
PTP
Std. Dev.


16
Average Annual Capital Returned to Shareholders as a % of Opening Shareholders Equity
For the three years ended December 31, 2011
Active Capital Management
____________________
Source:  SNL Financial and FactSet
Note: Capital returned  to shareholders includes dividends and share repurchases.  
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
ACGL
AHL
ALTE
PTP
ENH
VR
MRH
PRE
RNR
AXS
AGII
FSR
XL
RE
ACE
AWH
20.6%
18.4%
16.3%
15.1%
13.6%
12.0%
11.7%
9.9%
9.3%
8.9%
7.5%
6.3%
6.3%
5.8%
12.7%
4.0%


Our strategy is to diversify our book of business so that property cat
is one of many components of our business
Results demonstrate that we adequately manage our risk exposure
Our reserving process has been tested by large, recent loss events
including: 
2011 Australia floods, New Zealand earthquake, Japan
earthquake and tsunami, U.S. spring storms, Hurricane Irene, Thai   
floods
2010 Chile earthquake, New Zealand earthquake
2008 Hurricanes Ike/Gustav
Superior Risk Management
Alterra’s losses from catastrophe events as a % of equity are
below our peer group average
17


Peer PML’s as a Percent of Shareholder’s Equity 
____________________
Source:  Dowling & Partners Research
*As of July 1, 2012
Note: ALTE includes proportionate share of New Point Re IV. RNR and PRE do not disclose their PMLs for either 1-in-100 year events or 1-in-250 year events.  All data
is based on RMS 11 except RE which is based on AIR.  
18
As of October 1, 2012
35%
30%
25%
20%
15%
10%
5%
0%
VR
1 in 100
1 in 250
ENH*
AHL
MRH*
ALTE
AWH
FSR*
ACGL
AXS
Y*
RE
PTP


2011 –
“The Year of The Cat”
Alterra’s Ratio Of Losses To Equity Are Below The Peer Group  
__________________
Source:  Company reports and SNL Financial
19
1,000
1,200
1,400
1,600
1,800
2,000
800
600
400
200
0
FSR
PRE
PTP
MRH
RE
TRH
AHL
VR
ENH
RNR
AGII
ACGL
AWH
ALTE
Losses
Percentage of January 1, 2011 Capital and Surplus
0%
40%
45%
35%
30%
25%
20%
15%
10%
5%


2010 –
Chile Earthquake / Windstorm Xynthia/
September New Zealand Earthquake
___________________
Source:
Company
filings
and
press
releases;
losses
are
generally
disclosed
net
of
tax
and
net
of
reinstatement
premiums.
(1)
Q2
net
losses
reflect
Q1
estimates
plus
reported
development,
if
any.
(2)
Q2
net
losses
reflect
only
losses
from
the
Chile
earthquake.
Initial
losses
include
the
Chile
earthquake
and
Windstorm
Xynthia.
(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 Chile, Haiti, and Baja earthquakes, Xynthia and the Australia 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
Chile
earthquake.
(6)
Pro
forma;
includes
losses
from
Harbor
Point
and
Max
Capital
prior
to
the
merger.
Expressed
as
a
percentage
of
combined
12/31/09
equity
prior
to
the
special
dividend.
20
Alterra’s 2010 Losses Are Below Peer Group
250
200
150
100
50
0
300
350
400
450
Ultimate Net Losses Reported
Percentage of January 1, 2010 Capital and Surplus
FSR
PTP (1)
VR (2)
RNR (3)
MRH
RE
PRE
AHL
AXS (2)
TRH (2)
AWH
(2)(4)
ENH
AGII
(1)(5)
ACGL(1)
ALTE (6)
10%
8%
6%
4%
2%
0%


21
2008 –
Hurricanes Ike / Gustav
____________________
Source: Company filings, as of 12/31/08. Losses are generally disclosed net of reinstatement premiums.
(1)
Equity includes preferred shares, which subsequently converted to common shares.
(2)
Results reflect Ike only.
(3)
Equity includes preferred shares, which subsequently converted to common shares.
(4)
TRH does not disclose specific losses but did lose "$169.7 million principally relating to Hurricane Ike."
450
400
350
300
250
200
150
100
50
0
14%
12%
10%
8%
6%
4%
2%
0%
VR
FSR
RNR
MRH
IPCR(1)
PTR(1)
ACGL
AXS
PRE(2)
HP(3)
AHL
ENH
ORH
TRH(4)
AWH
RE
MXGL
Percentage of June 30, 2008 Capital and Surplus
Ultimate Net Losses Reported


22
PML goal of no more than 25% of starting capital in 1 in 250 year event
Adjust position as market pricing makes risk/reward attractive
Use RMS with “all switches on”
and gross-up factors on standard model
Incorporate AIR, market share, industry and client historical loss data
Capture detailed location data and put a premium on data quality
Historically our losses for events have been close to expected ranges
PML and aggregate usage is incorporated into our pricing models
Key In-force PMLs as of October 1, 2012
US wind
1 in 100 year event -
$467 million net loss (16.6% of 1/1/12 shareholders’
equity)
California earthquake
1 in 250 year event -
$330 million net loss (11.7% of 1/1/12 shareholders’
equity)
Europe wind
1 in 100 year event -
$145 million net loss (5.2% of 1/1/12 shareholders’
equity)
Cat Aggregate & PML Management
22


Disciplined Underwriting Management 
Expands our market clout and
footprint
Reduces underwriting risk
Increases fee income
Earlier recognition of profits
Assists
in
the
risk
management
process
Can dial down as market
pricing improves
Reduces Volatility and
Improves the Near-term ROE
The
following
is
a
hypothetical
example
and
not
line
of
business
specific:
Gross Premium
$     100
$     100
Ceded Premium
-
(50)
Net Premium
100
50
Losses
60
30
Acquisition Expenses
20
10
Override Commission Income
-
(5)
G&A Expenses
3
3
83
38
Net income
$       17
$       12
Capital Used
$     200
$     100
ROE
8.5%
12.0%
Gross
Position
Net Position (after 50% Cession)
23
Benefits of Ceding Premium Include:


Reserve for Losses and Loss Expenses
24
As of September 30, 2012 and December 31, 2011
2,500
2,000
1,500
1,000
500
0
Q3 2012
Q4 2011
Q3 2012
Q4 2011
Q3 2012
Q4 2011
Q3 2012
Q4 2011
Global Insurance
U.S. Insurance
Reinsurance
Alterra Lloyd’s
$1,333
$1,286
$ 431
$357
$527
$451
$2,169
$2,122
66%
67%
67%
64%
63%
63%
70%
65%
35%
30%
37%
37%
36%
33%
33%
34%
IBNR
Case


Favorable Reserve
Development
$5.9
$45.1
$90.8
$77.2
$105.5
$153.3
Development as a
% of Net Reserves
prior to
development
0.3%
2.5%
4.1%
3.4%
3.4%
4.6%
Reserve Development History
($ 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.
Net Loss Reserves
$1,840
$1,796
$2,128
$2,213
$2,985
$3,182
2006
2007
2008
2009
2010
2011
3,500
3,000
2,500
2,000
1,500
1,000
500
-
25


High Quality, Liquid Investment Portfolio
Alterra maintains a high quality, liquid portfolio
95.3% of portfolio in fixed income/cash, which consists of highly
rated securities
Assets are generally matched to liabilities
Cycle management extends to investments
Cash balance $651.6 million or 8.2% of portfolio
Average fixed income duration of approximately 4.4 years, including
cash 
59.9% of the cash and fixed maturities portfolio is held in cash, 
government
/
agency-backed
securities
and
“AAA”
securities
68.4%
of
fixed
income
portfolio
rated
“AA”
or
better
Hedge fund investments are marked-to-market
Minimal exposure to selected asset classes
CMBS
of
$443.7
million
(6.4%
of
portfolio)
average
rating
of
AA+/Aa1
ABS of $355.4 million (5.1% of portfolio)
RMBS
of
$1,310.1
million
(18.9%
of
portfolio)
97.1%
agency-
backed
No CDO’s, CLO’s, SIV’s or other highly structured securities
Less than $14 million of OTTI losses over the last eight
quarters
Carrying Value $8.0 billion
As of September 30, 2012
Carrying Value $8.0 billion
26


European Government Holdings
Total European government holdings
represent $803.1 million, or 10.1%, of the
$8.0
billion investment portfolio.
No exposure to Greece, Portugal, Italy,
Ireland or Spain
European financial institutions
Total European financial institution
holdings represent $471.1 million, or
5.9%, of the $8.0 billion investment
portfolio.
Two largest holdings, which total $134.3
million, are with government-backed
financial institutions.
European Exposure
As of September 30, 2012
27


____________________
Note:
Primary price / diluted book value multiple as of November 27, 2012. 
Well Positioned to Build Shareholder Value 
Attractive entry point –
price / diluted book value of 0.75x
28
Balance sheet strength with low leverage / financial flexibility
Invested asset leverage intended to drive more consistent returns
High-quality, liquid investment portfolio
Opportunistic approach –
nimble and responsive to market trends
Diversified business portfolio across casualty and property lines
Established operating platforms provide global access to business
Franchise positions in attractive specialty markets


Appendices
29


September 30,
December 31,
2012
2011
Cash & Fixed Maturities
7,594
$                    
7,528
$                    
Other Investments
377
                          
287
                          
Premium Receivables
873
                          
715
                          
Losses Recoverable
1,150
                       
1,068
                       
Other Assets
740
                          
588
                          
     Total Assets
10,734
$                  
10,186
$                  
Property & Casualty Losses
4,460
$                    
4,217
$                    
Life & Annuity Benefits
1,148
                       
1,191
                       
Deposit Liabilities
140
                          
151
                          
Funds Withheld
93
                            
112
                          
Unearned Premium
1,192
                       
1,021
                       
Senior Notes
441
                          
441
                          
Other Liabilities
337
                          
244
                          
     Total Liabilites
7,811
$                    
7,377
$                    
Shareholders' Equity
2,923
                       
2,809
                       
10,734
$                  
10,186
$                  
Strong Balance Sheet
($ in millions)
30


YTD Results Comparison
($ in millions)
Nine months ended
September 30,
September 30,
2012
2011
Gross Premiums Written
1,614
$         
1,578
$         
Net Premiums Earned
1,022
           
1,076
           
Net Investment Income
167
              
178
              
Net Realized and Unrealized Gains (Losses) on Investments
59
                
(33)
               
Other Than Temporary Impairment Charges
(7)
                 
(2)
                 
Other Income
9
                   
3
                   
Total Revenues
1,250
           
1,222
           
Total Losses, Expenses & Taxes
1,054
           
1,188
           
Net Income (Loss)
196
$            
34
$              
Net Operating Income
169
$            
65
$              
Property & Casualty Underwriting
Loss Ratio
61.9%
66.5%
Expense Ratio
31.0%
32.0%
Combined Ratio
92.9%
98.4%
31


Property & Casualty
Global
Insurance
U.S.
Insurance
Reinsurance
Alterra at
Lloyd's
Total
Life & Annuity
Reinsurance
Corporate
Consolidated
Gross premiums written
$273.7
$304.5
$772.8
$261.2
$1,612.2
$2.2
-
$          
1,614.4
$      
Reinsurance premiums ceded
(140.7)
(162.1)
(160.3)
(74.5)
(537.6)
(0.2)
               
-
           
(537.8)
          
Net premiums written
$133.0
$142.4
$612.5
$186.7
$1,074.6
$2.0
-
$          
1,076.6
$      
Earned premiums
$279.4
$296.7
$670.8
$208.8
$1,455.7
$2.2
-
$          
1,457.9
$      
Earned premiums ceded
(140.9)
(137.2)
(101.4)
(56.6)
(436.1)
(0.2)
               
-
           
(436.3)
          
Net premiums earned
138.5
       
159.6
       
569.3
            
152.2
       
1,019.6
      
2.0
                
-
           
1,021.6
        
Net losses and loss expenses
(72.4)
        
(121.4)
      
(313.5)
           
(124.0)
      
(631.3)
        
-
                
-
           
(631.3)
          
Claims and policy benefits
-
           
-
           
-
               
-
           
-
            
(38.6)
-
           
(38.6)
           
Acquisition costs
(0.4)
          
(18.3)
        
(137.7)
           
(27.0)
        
(183.4)
        
(0.4)
               
-
           
(183.8)
          
General and administrative expenses
(19.7)
        
(35.8)
        
(52.6)
             
(24.3)
        
(132.4)
        
(0.2)
               
-
           
(132.7)
          
Other income
0.8
0.1
7.9
               
-
           
8.8
-
                
-
           
8.8
              
Underwriting income (loss)
46.8
         
(15.8)
        
73.4
              
(23.1)
        
81.3
           
n/a
-
           
n/a
Net investment income
41.5
125.5
167.0
59.4
          
59.4
            
(6.5)
          
(6.5)
             
Corporate other income
0.1
           
0.1
              
Interest expense
(27.3)
(27.3)
Net foreign exchange gains
0.1
           
0.1
              
Corporate general and administrative expenses
(43.7)
(43.7)
Income before taxes
$4.2
$107.5
$193.0
Loss ratio
52.3%
76.1%
55.1%
81.5%
61.9%
Acquisition cost ratio
0.3%
11.4%
24.2%
17.7%
18.0%
14.2%
22.4%
9.2%
16.0%
13.0%
Combined ratio
(1)
66.8%
110.0%
88.5%
115.2%
92.9%
Net realized and unrealized gains on investments
Net impairment losses recognized in earnings
General and administrative expense ratio
Nine months ended September 30, 2012
($ in millions)
____________________
Totals in table may not add due to rounding.  (1) Property and Casualty only.
32
Diversified Operating Platform