Alts.-Founded Reinsurers Max Capital, Harbor Point In Tie-Up

Mar 5 2010 | 2:51am ET

A pair of reinsurers backed by alternative investment firms have agreed to merge. Max Capital Group, co-founded by Moore Capital Management founder Louis Bacon, and Harbor Point, backed by private equity firm Stone Point Capital, will form Alterra Capital Holdings.

Moore—the largest shareholder of Max Capital—and Harbor Point have agreed to vote their shares in favor of the deal.

Alterra, which will have a book value of $3.5 billion, will trade on the Nasdaq Stock Market. Harbor Point shareholders will own 52% of the combined firm, and Max Capital shareholders 48%.

Alterra will pay a $300 million special cash dividend when the deal closes.

Stone Point helped set up Harbor Point with the insurer Chubb Corp. in 2005. Chubb wanted to spin-off its reinsurance business following huge losses suffered due to Hurricane Katrina and other natural disasters. Stone Point’s Trident III Fund invested $200 million in Stone Point.

Bacon helped co-found Max Capital in 1999.


In Depth

Humble in Hofstra...One Debate an Election Can Make

Sep 26 2016 | 10:20am ET

Tonight's U.S. Presidential debate, infamously coined the “Humbling in Hofstra...

Lifestyle

Quattrex Sports AG Debuts Soccer-Focused UCITS Fund

Sep 9 2016 | 9:54pm ET

Innovative alternative investment company Quattrex Sports has unveiled a new UCITS...

Guest Contributor

Malik: The Ever-Changing Middle Market and The Entering Class of 2016

Sep 2 2016 | 5:01pm ET

Deal sourcing and origination is only going to get more competitive given current...