Markel (MKL) 425 Business combination disclosure

Exhibit 99.2

ALTERRA CAPITAL HOLDINGS LIMITED

Investor Financial Supplement

Fourth Quarter 2012

(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

Peter Hill, +1-212-521-4800

ALTERRA CAPITAL HOLDINGS LIMITED

Cautionary note regarding forward-looking information

This supplement includes statements about future economic performance, finances, expectations, plans and prospects of Alterra and Markel, both individually and on a combined basis, that are forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. There are risks and uncertainties that could cause actual results to differ materially from those expressed in or suggested by such statements. For further information regarding factors affecting future results of Alterra and Markel, please refer to their respective Annual Report on Form 10-K for the year ended December 31, 2011 and Quarterly Reports on Form 10-Q and other documents filed by Alterra and Markel since March 1, 2012 with the Securities Exchange Commission (“SEC”). These documents are also available free of charge, in the case of Alterra, by directing a request to Alterra through Joe Roberts, Chief Financial Officer, or Susan Spivak Bernstein, Senior Vice President, Investor Relations, at 441-295-8800 and, in the case of Markel, by directing a request to Bruce Kay, Investor Relations, at 804-747-0136. Neither Alterra nor Markel undertakes any obligation to update or revise publicly any forward-looking statement whether as a result of new information, future developments or otherwise.

This supplement contains certain forward-looking statements within the meaning of the U.S. federal securities laws. Statements that are not historical facts, including statements about Alterra’s and Markel’s beliefs, plans or expectations, are forward-looking statements. These statements are based on Alterra’s or Markel’s current plans, estimates and expectations. Some forward-looking statements may be identified by use of terms such as “believe,” “anticipate,” “intend,” “expect,” “project,” “plan,” “may,” “should,” “could,” “will,” “estimate,” “predict,” “potential,” “continue,” and similar words, terms or statements of a future or forward-looking nature. In light of the inherent risks and uncertainties in all forward-looking statements, the inclusion of such statements in this supplement should not be considered as a representation by Alterra, Markel or any other person that Alterra’s or Markel’s objectives or plans, both individually and on a combined basis, will be achieved. A non-exclusive list of important factors that could cause actual results to differ materially from those in such forward-looking statements includes the following: (a) the occurrence of natural or man-made catastrophic events with a frequency or severity exceeding expectations; (b) the adequacy of loss reserves and the need to adjust such reserves as claims develop over time; (c) the failure of any of the loss limitation methods the parties employ; (d) any adverse change in financial ratings of either company or their subsidiaries; (e) the effect of competition on market trends and pricing; (f) cyclical trends, including with respect to demand and pricing in the insurance and reinsurance markets; (g) changes in general economic conditions, including changes in interest rates and/or equity values in the United States of America and elsewhere; and (h) other factors set forth in Alterra’s and Markel’s recent reports on Form 10-K, Form 10-Q and other documents filed with the SEC by Alterra and Markel.

Risks and uncertainties relating to the proposed transaction include the risks that: (1) the parties will not obtain the requisite shareholder or regulatory approvals for the transaction; (2) the anticipated benefits of the transaction will not be realized or the parties may experience difficulties in successfully integrating the two companies; (3) the parties may not be able to retain key personnel; (4) the conditions to the closing of the proposed merger may not be satisfied or waived; (5) the outcome of any legal proceedings to the extent initiated against Alterra or Markel or its respective directors and officers following the announcement of the proposed merger is uncertain; (6) the acquisition may involve unexpected costs; and (7) the businesses may suffer as a result of uncertainty surrounding the acquisition. These risks, as well as other risks of the combined company and its subsidiaries may be different from what the companies expect, or have previously experienced, and each party’s management may respond differently to any of the aforementioned factors. These risks, as well as other risks associated with the merger, are more fully discussed in the joint proxy statement/prospectus of Markel and Alterra that has been filed with the SEC. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made.

Additional information about the proposed merger and where to find it:

This supplement relates to a proposed merger between Alterra and Markel. On December 27, 2012, Markel filed with the SEC a registration statement on Form S-4, and on January 18, 2013, Markel and Alterra each filed the definitive joint proxy statement/prospectus. This supplement is not a substitute for the definitive joint proxy statement/prospectus or any other document that Markel or Alterra filed or may file with the SEC or send to its shareholders in connection with the proposed merger. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS AND ALL OTHER RELEVANT DOCUMENTS FILED OR THAT MAY BE FILED WITH THE SEC OR SENT TO SHAREHOLDERS AS THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED MERGER. All documents, when filed, will be available free of charge at the SEC’s website (www.sec.gov) or, in the case of Alterra, by directing a request to Joe Roberts, Chief Financial Officer, or Susan Spivak Bernstein, Senior Vice President, Investor Relations, at 441-295-8800 and, in the case of Markel, by directing a request to Bruce Kay, Investor Relations, at 804-747-0136.

Participants in the solicitation:

Alterra and Markel and their respective directors and executive officers may be deemed to be participants in any solicitation of proxies from both Alterra’s and Markel’s shareholders in favor of the proposed transaction. Information about Alterra’s directors and executive officers and their ownership in Alterra common stock is available in the proxy statement dated March 26, 2012 for Alterra’s 2012 annual general meeting of shareholders. Information about Markel’s directors and executive officers and their ownership of Markel common stock is available in the proxy statement dated March 16, 2012 for Markel’s 2012 annual meeting of shareholders.

ALTERRA CAPITAL HOLDINGS LIMITED

FINANCIAL SUPPLEMENT TABLE OF CONTENTS

	Page
Financial Highlights		4
Consolidated Balance Sheets		5
Consolidated Statements of Operations - Quarterly		6
Consolidated Statements of Operations - Year to date		7
Segment Data and Ratios - Quarterly		8
Gross Premiums Written by Line of Business - Quarterly		15
Segment Data and Ratios - Year to date		16
Gross Premiums Written by Line of Business - Year to date		23
Investment Portfolio		24
New Point IV Summary		29
Shareholder Return Analysis		30
Earnings Per Share Information		31
Operating Income Reconciliation		32
Book Value per Share		33
Regulation G		34

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 Years Ended
	Dec. 31, 2012			Dec. 31, 2011			Dec. 31, 2012			Dec. 31, 2011			Previous Year Quarter Change			Previous Year to Date Change
HIGHLIGHTS
Net income (loss)	$	(51,810	)	$	30,948		$	143,806		$	65,282			(267.4	%)		120.3	%
Net operating income (loss) [a]		(49,713	)		31,685			119,103			96,600			(256.9	%)		23.3	%
Operating cashflow		55,875			(39,908	)		313,113			235,567			(240.0	%)		32.9	%
Gross premiums written		357,043			325,983			1,971,458			1,904,066			9.5	%		3.5	%
Net premiums earned		343,632			349,104			1,365,223			1,424,974			(1.6	%)		(4.2	%)
Total assets		10,658,250			10,185,847			10,658,250			10,185,847			4.6	%		4.6	%
Total shareholders’ equity		2,839,722			2,809,235			2,839,722			2,809,235			1.1	%		1.1	%
PER SHARE
Basic earnings per share
Net income (loss)	$	(0.54	)	$	0.30		$	1.47		$	0.62
Net operating income (loss) [a]		(0.52	)		0.31			1.22			0.92
Diluted earnings per share
Net income (loss)	$	(0.54	)	$	0.30		$	1.43		$	0.61
Net operating income (loss) [a]		(0.52	)		0.30			1.18			0.91
Weighted average shares outstanding - basic		95,691,699			103,323,377			98,012,424			105,249,683
Weighted average shares outstanding - diluted		95,691,699			104,672,891			100,557,352			106,502,893
Book value per common share [b]	$	29.56		$	27.51		$	29.56		$	27.51			7.4	%		7.4	%
Diluted book value per share (treasury stock method) [b]		28.34			26.91			28.34			26.91			5.3	%		5.3	%
Diluted tangible book value per share (treasury stock method) [b]		27.79			26.37			27.79			26.37			5.4	%		5.4	%
RATIOS
Annualized return on average shareholders’ equity [c]		(7.2	%)		4.4	%		5.0	%		2.3	%
Annualized net operating return on average shareholders’ equity [c]		(6.9	%)		4.5	%		4.2	%		3.4	%
Loss ratio [d]		86.0	%		66.5	%		68.0	%		66.5	%
Acquisition cost ratio [d]		19.4	%		18.5	%		18.4	%		18.3	%
General and administrative expense ratio [d]		13.5	%		12.4	%		13.1	%		13.4	%
Combined ratio [d]		119.0	%		97.4	%		99.5	%		98.2	%

[a] Non-GAAP financial measure. For definition and calculation see page 32.

[b] For calculations see page 33.

[c] Non-GAAP financial measure. For 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)

	Dec. 31, 2012			Sept. 30, 2012			June 30, 2012			Mar. 31, 2012			Dec. 31, 2011
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
ASSETS
Cash and cash equivalents	$	440,298		$	405,809		$	427,704		$	394,514		$	469,477
Fixed maturities, trading at fair value		429,246			376,498			211,796			223,592			229,206
Fixed maturities, available for sale at fair value		5,647,303			5,728,640			5,709,850			5,518,102			5,501,925
Fixed maturities, held to maturity at amortized cost		852,266			837,348			833,990			885,214			874,259
Equity method investments		92,050			86,797			90,323			80,430			13,670
Other investments, at fair value		316,955			290,073			276,081			252,454			272,845
Restricted cash and cash equivalents		254,458			245,747			336,253			450,229			453,367
Accrued interest income		65,361			65,236			65,252			64,295			71,322
Premiums receivable		729,877			872,948			991,927			869,800			715,154
Losses and benefits recoverable from reinsurers		1,289,577			1,149,684			1,083,840			1,108,036			1,068,119
Deferred acquisition costs		146,328			166,128			170,904			176,199			145,850
Prepaid reinsurance premiums		247,740			303,171			326,014			299,163			212,238
Trades pending settlement		27,768			77,802			31,925			111,194			22,887
Goodwill and intangible assets		54,751			55,371			55,431			55,771			56,111
Other assets		64,272			72,758			85,296			86,785			79,417
Total assets	$	10,658,250		$	10,734,010		$	10,696,586		$	10,575,778		$	10,185,847
LIABILITIES
Property and casualty losses	$	4,690,344		$	4,460,045		$	4,308,316		$	4,322,847		$	4,216,538
Life and annuity benefits		1,159,545			1,148,317			1,148,304			1,203,752			1,190,697
Deposit liabilities		132,910			139,518			158,412			151,058			151,035
Funds withheld from reinsurers		92,733			93,190			93,510			92,793			112,469
Unearned property and casualty premiums		1,031,633			1,192,203			1,281,406			1,221,788			1,020,639
Reinsurance balances payable		157,199			214,202			260,351			201,409			134,354
Accounts payable and accrued expenses		107,742			93,810			116,575			90,359			110,380
Trades pending settlement		5,890			29,022			37,455			—			—
Senior notes		440,532			440,527			440,521			440,510			440,500
Total liabilities		7,818,528			7,810,834			7,844,850			7,724,516			7,376,612
SHAREHOLDERS’ EQUITY
Common shares (par value $1.00) 96,059,645 shares issued and outstanding		96,060			95,985			96,853			100,707			102,102
Additional paid-in capital		1,721,241			1,715,748			1,729,311			1,807,287			1,847,034
Accumulated other comprehensive income		244,172			265,232			202,229			185,146			166,957
Retained earnings		778,249			846,211			823,343			758,122			693,142
Total shareholders’ equity		2,839,722			2,923,176			2,851,736			2,851,262			2,809,235
Total liabilities and shareholders’ equity	$	10,658,250		$	10,734,010		$	10,696,586		$	10,575,778		$	10,185,847
Book value per share	$	29.56		$	30.45		$	29.44		$	28.31		$	27.51
Diluted book value per share (treasury stock method)	$	28.34		$	29.57		$	28.68		$	27.67		$	26.91
Diluted tangible book value per share (treasury stock method) [a]	$	27.79		$	29.01		$	28.12		$	27.13		$	26.37
Debt-to-capital ratio [b]		13.4	%		13.1	%		13.4	%		13.4	%		13.6	%

[a] Non-GAAP financial measure. For calculations see page 33.

[b] Calculated as debt, being senior notes divided by shareholders’ equity plus debt.

5

ALTERRA CAPITAL HOLDINGS LIMITED

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

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

	FOR THE QUARTERS ENDED
	Dec. 31, 2012			Sept. 30, 2012			June 30, 2012			Mar. 31, 2012			Dec. 31, 2011			Dec. 31, 2010
REVENUES
Gross premiums written	$	357,043		$	386,228		$	566,857		$	661,330		$	325,983		$	315,398
Reinsurance premiums ceded		(113,881	)		(123,477	)		(189,879	)		(224,462	)		(107,203	)		(77,617	)
Net premiums written	$	243,162		$	262,751		$	376,978		$	436,868		$	218,780		$	237,781
Earned premiums	$	504,757		$	483,222		$	496,839		$	477,867		$	460,636		$	445,683
Earned premiums ceded		(161,125	)		(150,584	)		(146,061	)		(139,692	)		(111,532	)		(103,129	)
Net premiums earned		343,632			332,638			350,778			338,175			349,104			342,554
Net investment income		52,039			53,518			54,729			58,678			57,080			61,080
Net realized and unrealized gains (losses) on investments		11,476			20,436			13,481			25,493			(5,775	)		9,825
Total other-than-temporary impairment losses		(3,143	)		(522	)		(420	)		(5,467	)		(703	)		(3,918	)
Portion of loss recognized in other comprehensive income (loss) before taxes		2,766			(70	)		(150	)		98			1			2,144
Net impairment losses recognized in earnings		(377	)		(592	)		(570	)		(5,369	)		(702	)		(1,774	)
Other income		1,425			1,586			1,928			5,362			2,017			2,862
Total revenues		408,195			407,586			420,346			422,339			401,724			414,547
LOSSES AND EXPENSES
Net losses and loss expenses		295,123			228,529			196,764			206,029			231,533			179,047
Claims and policy benefits		17,006			11,838			13,272			13,466			14,564			18,551
Acquisition costs		66,595			61,923			62,171			59,724			64,380			53,563
Interest expense		8,355			9,026			9,635			8,628			13,296			7,866
Net foreign exchange (gains) losses		(71	)		(82	)		25			(32	)		(753	)		(382	)
Merger and acquisition expenses		3,289			—			—			—			—			500
General and administrative expenses		55,188			57,515			58,777			60,082			54,657			76,759
Total losses and expenses		445,485			368,749			340,644			347,897			377,677			335,904
INCOME (LOSS) BEFORE TAXES		(37,290	)		38,837			79,702			74,442			24,047			78,643
Income tax expense (benefit)		14,520			1,185			762			(4,582	)		(6,901	)		(1,027	)
NET INCOME (LOSS)		(51,810	)		37,652			78,940			79,024			30,948			79,670
Change in net unrealized gains and losses on fixed maturities, net of tax		(11,752	)		54,301			23,444			16,819			(3,670	)		(87,633	)
Foreign currency translation adjustment		(9,308	)		8,702			(6,361	)		1,370			(2,398	)		(3,746	)
COMPREHENSIVE INCOME (LOSS)	$	(72,870	)	$	100,655		$	96,023		$	97,213		$	24,880		$	(11,709	)
KEY RATIOS/PER SHARE DATA
Loss ratio [a]		86.0	%		68.8	%		56.2	%		61.0	%		66.5	%		52.5	%
Acquisition cost ratio [b]		19.4	%		18.6	%		17.7	%		17.6	%		18.5	%		15.7	%
General and administrative expense ratio [c]		13.5	%		12.4	%		12.6	%		14.0	%		12.4	%		16.5	%
Combined ratio [d]		119.0	%		99.9	%		86.6	%		92.6	%		97.4	%		84.8	%
Net income (loss) per share	$	(0.54	)	$	0.39		$	0.79		$	0.78		$	0.30		$	0.70
Net income (loss) per diluted share	$	(0.54	)	$	0.38		$	0.77		$	0.77		$	0.30		$	0.69
Net operating income (loss) per share - diluted [e]	$	(0.52	)	$	0.33		$	0.68		$	0.66		$	0.30		$	0.66
Annualized ROAE [f]		(7.2	%)		5.2	%		11.1	%		11.2	%		4.4	%		10.7	%
Annualized net operating ROAE [f]		(6.9	%)		4.5	%		9.7	%		9.6	%		4.5	%		10.2	%

[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] 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 for the property & casualty business.

[e] Non-GAAP financial measure. See page 32 for calculation of net operating income per share - diluted.

[f] Non-GAAP financial measure. See page 30 for calculation of annualized return on average shareholders’ equity (ROAE) and annualized net operating ROAE.

Percentage totals may not add due to rounding.

6

ALTERRA CAPITAL HOLDINGS LIMITED

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

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

	FOR THE YEARS ENDED
	Dec. 31, 2012			Dec. 31, 2011			Dec. 31, 2010 [g]
REVENUES
Gross premiums written	$	1,971,458		$	1,904,066		$	1,410,731
Reinsurance premiums ceded		(651,699	)		(472,077	)		(371,163	)
Net premiums written	$	1,319,759		$	1,431,989		$	1,039,568
Earned premiums	$	1,962,685		$	1,845,837		$	1,578,647
Earned premiums ceded		(597,462	)		(420,863	)		(406,161	)
Net premiums earned		1,365,223			1,424,974			1,172,486
Net investment income		218,964			234,846			222,458
Net realized and unrealized gains (losses) on investments		70,886			(38,339	)		16,872
Total other-than-temporary impairment losses		(9,552	)		(2,706	)		(5,873	)
Portion of loss recognized in other comprehensive income (loss) before taxes		2,644			(239	)		3,228
Net impairment losses recognized in earnings		(6,908	)		(2,945	)		(2,645	)
Other income		10,301			5,396			4,808
Total revenues		1,658,466			1,623,932			1,413,979
LOSSES AND EXPENSES
Net losses and loss expenses		926,445			945,593			654,841
Claims and policy benefits		55,582			59,382			65,213
Acquisition costs		250,413			261,102			187,464
Interest expense		35,644			43,688			28,275
Net foreign exchange (gains) losses		(160	)		1,312			(115	)
Merger and acquisition expenses		3,289			—			(48,776	)
General and administrative expenses		231,562			257,074			220,586
Total losses and expenses		1,502,775			1,568,151			1,107,488
INCOME BEFORE TAXES		155,691			55,781			306,491
Income tax expense (benefit)		11,885			(9,501	)		4,156
NET INCOME		143,806			65,282			302,335
Change in net unrealized gains and losses on fixed maturities, net of tax		82,812			86,104			81,406
Foreign currency translation adjustment		(5,597	)		(18,093	)		(7,891	)
COMPREHENSIVE INCOME	$	221,021		$	133,293		$	375,850
KEY RATIOS/PER SHARE DATA
Loss ratio [a]		68.0	%		66.5	%		56.1	%
Acquisition cost ratio [b]		18.4	%		18.3	%		16.0	%
General and administrative expense ratio [c]		13.1	%		13.4	%		13.6	%
Combined ratio [d]		99.5	%		98.2	%		85.7	%
Net income per share - basic	$	1.47		$	0.62		$	3.19
Net income per share - diluted	$	1.43		$	0.61		$	3.17
Net operating income per share - diluted [e]	$	1.18		$	0.91		$	2.64
Annualized ROAE [f]		5.0	%		2.3	%		12.3	%
Annualized Net Operating ROAE [f]		4.2	%		3.4	%		10.2	%

[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] 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 for the property & casualty business.

[e] Non-GAAP financial measure. See page 32 for calculation of net operating income per share - diluted.

[f] Non-GAAP financial measure. See page 30 for calculation of annualized return on average shareholders’ equity (ROAE) and annualized net operating ROAE.

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

Percentage totals may not add due to rounding.

7

ALTERRA CAPITAL HOLDINGS LIMITED

SCHEDULE OF SUPPLEMENTAL UNDERWRITING DATA - QUARTER ENDED DECEMBER, 2012 (Unaudited)

(Expressed in thousands of United States Dollars)

	Property & Casualty
	Global Insurance			U.S. Insurance			Reinsurance			Alterra at Lloyd’s			Total			Life & Annuity Reinsurance			Corporate			Consolidated
Gross premiums written	$	97,964		$	94,587		$	125,630		$	38,233		$	356,414		$	629		$	—		$	357,043
Reinsurance premiums ceded		(48,698	)		(55,863	)		(10,950	)		1,704			(113,807	)		(74	)		—			(113,881	)
Net premiums written	$	49,266		$	38,724		$	114,680		$	39,937		$	242,607		$	555		$	—		$	243,162
Earned premiums	$	94,486		$	98,142		$	240,252		$	71,248		$	504,128		$	629		$	—		$	504,757
Earned premiums ceded		(47,524	)		(62,839	)		(41,447	)		(9,241	)		(161,051	)		(74	)		—			(161,125	)
Net premiums earned		46,962			35,303			198,805			62,007			343,077			555			—			343,632
Net losses and loss expenses		(39,503	)		(85,476	)		(130,869	)		(39,275	)		(295,123	)		—			—			(295,123	)
Claims and policy benefits		—			—			—			—			—			(17,006	)		—			(17,006	)
Acquisition costs		(552	)		(4,915	)		(49,339	)		(11,880	)		(66,686	)		91			—			(66,595	)
General and administrative expenses		(7,871	)		(10,849	)		(19,002	)		(8,722	)		(46,444	)		(76	)		—			(46,520	)
Other income		—			—			1,400			—			1,400			—			—			1,400
Underwriting income (loss)	$	(964	)	$	(65,937	)	$	995		$	2,130		$	(63,776	)		n/a			—			n/a
Net investment income																	13,727			38,312			52,039
Net realized and unrealized gains on investments																				11,476			11,476
Net impairment losses recognized in earnings																				(377	)		(377	)
Corporate other income																				25			25
Interest expense																				(8,355	)		(8,355	)
Net foreign exchange gains																				71			71
Merger and acquisition expense																				(3,289	)		(3,289	)
Corporate general and administrative expenses																				(8,668	)		(8,668	)
Income (loss) before taxes																$	(2,709	)	$	29,195		$	(37,290	)
Loss ratio [a]		84.1	%		242.1	%		65.8	%		63.3	%		86.0	%
Acquisition cost ratio [b]		1.2	%		13.9	%		24.8	%		19.2	%		19.4	%
General and administrative expense ratio [c]		16.8	%		30.7	%		9.6	%		14.1	%		13.5	%
Combined ratio [d]		102.1	%		286.8	%		100.2	%		96.6	%		119.0	%

[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.

[d] 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 for the property & casualty business.

n/a Not applicable.

Percentage totals may not add due to rounding.

8

ALTERRA CAPITAL HOLDINGS LIMITED

CONSOLIDATED UNDERWRITING RATIOS - QUARTER ENDED DECEMBER 31, 2012 (Unaudited)

	Property & Casualty
	Global Insurance			U.S. Insurance			Reinsurance			Alterra at Lloyd’s			Total
UNDERWRITING RATIOS
Loss ratio		84.1	%		242.1	%		65.8	%		63.3	%		86.0	%
Acquisition cost ratio		1.2	%		13.9	%		24.8	%		19.2	%		19.4	%
General and administrative expense ratio		16.8	%		30.7	%		9.6	%		14.1	%		13.5	%
Combined ratio		102.1	%		286.8	%		100.2	%		96.6	%		119.0	%
EFFECT OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT FAVORABLE / (UNFAVORABLE)
Loss ratio [a]		29.8	%		(19.8	%)		13.1	%		6.3	%		10.8	%
NET OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT UNDERWRITING RATIOS
Loss ratio		113.9	%		222.3	%		78.9	%		69.6	%		96.8	%
Acquisition cost ratio		1.2	%		13.9	%		24.8	%		19.2	%		19.4	%
General and administrative expense ratio		16.8	%		30.7	%		9.6	%		14.1	%		13.5	%
Combined ratio		131.9	%		267.0	%		113.3	%		102.9	%		129.8	%

CONSOLIDATED UNDERWRITING RATIOS - QUARTER ENDED DECEMBER 30, 2011 (Unaudited)

	Property & Casualty
	Global Insurance			U.S. Insurance			Reinsurance			Alterra at Lloyd’s			Total
UNDERWRITING RATIOS
Loss ratio		31.4	%		80.6	%		51.9	%		169.8	%		66.5	%
Acquisition cost ratio		2.2	%		14.9	%		22.7	%		21.0	%		18.5	%
General and administrative expense ratio		14.4	%		22.0	%		8.1	%		19.2	%		12.4	%
Combined ratio		48.1	%		117.5	%		82.7	%		210.0	%		97.4	%
EFFECT OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT FAVORABLE / (UNFAVORABLE)
Loss ratio [a]		51.4	%		(17.0	%)		10.8	%		14.5	%		12.3	%
NET OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT UNDERWRITING RATIOS
Loss ratio		82.8	%		63.6	%		62.7	%		184.3	%		78.9	%
Acquisition cost ratio		2.2	%		14.9	%		22.7	%		21.0	%		18.5	%
General and administrative expense ratio		14.4	%		22.0	%		8.1	%		19.2	%		12.4	%
Combined ratio		99.4	%		100.5	%		93.5	%		224.5	%		109.7	%

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

Percentage totals may not add due to rounding.

9

ALTERRA CAPITAL HOLDINGS LIMITED

GLOBAL INSURANCE SEGMENT DATA (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE QUARTERS ENDED
	Dec. 31, 2012			Sept. 30, 2012			June 30, 2012			Mar. 31, 2012			Dec. 31, 2011			Dec. 31, 2010
Gross premiums written	$	97,964		$	81,627		$	125,276		$	66,771		$	97,660		$	101,116
Reinsurance premiums ceded		(48,698	)		(44,157	)		(53,224	)		(43,251	)		(50,172	)		(51,700	)
Net premiums written	$	49,266		$	37,470		$	72,052		$	23,520		$	47,488		$	49,416
Earned premiums	$	94,486		$	92,526		$	92,803		$	94,103		$	91,077		$	98,024
Earned premiums ceded		(47,524	)		(48,392	)		(45,367	)		(47,133	)		(42,827	)		(41,104	)
Net premiums earned		46,962			44,134			47,436			46,970			48,250			56,920
Net losses and loss expenses		(39,503	)		(31,631	)		(22,745	)		(18,061	)		(15,152	)		(31,842	)
Acquisition costs		(552	)		(124	)		(239	)		(59	)		(1,084	)		(1,628	)
General and administrative expenses		(7,871	)		(6,328	)		(6,913	)		(6,481	)		(6,952	)		(9,782	)
Other income (loss)		—			—			1			815			(128	)		—
Underwriting income (loss)	$	(964	)	$	6,051		$	17,540		$	23,184		$	24,934		$	13,668
Loss ratio		84.1	%		71.7	%		47.9	%		38.5	%		31.4	%		55.9	%
Acquisition cost ratio		1.2	%		0.3	%		0.5	%		0.1	%		2.2	%		2.9	%
General and administrative expense ratio		16.8	%		14.3	%		14.6	%		13.8	%		14.4	%		17.2	%
Combined ratio		102.1	%		86.3	%		63.0	%		52.4	%		48.1	%		76.0	%

10

ALTERRA CAPITAL HOLDINGS LIMITED

U.S. INSURANCE SEGMENT DATA (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE QUARTERS ENDED
	Dec. 31, 2012			Sept. 30, 2012			June 30, 2012			Mar. 31, 2012			Dec. 31, 2011			Dec. 31, 2010
Gross premiums written	$	94,587		$	88,006		$	112,186		$	104,282		$	102,279		$	77,745
Reinsurance premiums ceded		(55,863	)		(40,083	)		(51,524	)		(70,494	)		(45,443	)		(20,984	)
Net premiums written	$	38,724		$	47,923		$	60,662		$	33,788		$	56,836		$	56,761
Earned premiums	$	98,142		$	100,187		$	100,300		$	96,241		$	90,048		$	82,828
Earned premiums ceded		(62,839	)		(52,222	)		(44,490	)		(40,456	)		(34,078	)		(28,883	)
Net premiums earned		35,303			47,965			55,810			55,785			55,970			53,945
Net losses and loss expenses		(85,476	)		(46,489	)		(37,333	)		(37,564	)		(45,129	)		(35,723	)
Acquisition costs		(4,915	)		(4,404	)		(6,169	)		(7,696	)		(8,349	)		(8,755	)
General and administrative expenses		(10,849	)		(11,337	)		(12,215	)		(12,257	)		(12,299	)		(9,582	)
Other income		—			—			—			81			84			68
Underwriting income (loss)	$	(65,937	)	$	(14,265	)	$	93		$	(1,651	)	$	(9,723	)	$	(47	)
Loss ratio		242.1	%		96.9	%		66.9	%		67.3	%		80.6	%		66.2	%
Acquisition cost ratio		13.9	%		9.2	%		11.1	%		13.8	%		14.9	%		16.2	%
General and administrative expense ratio		30.7	%		23.6	%		21.9	%		22.0	%		22.0	%		17.8	%
Combined ratio		286.8	%		129.7	%		99.8	%		103.1	%		117.5	%		100.2	%

11

ALTERRA CAPITAL HOLDINGS LIMITED

REINSURANCE SEGMENT DATA (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE QUARTERS ENDED
	Dec. 31, 2012			Sept. 30, 2012			June 30, 2012			Mar. 31, 2012			Dec. 31, 2011			Dec. 31, 2010
Gross premiums written	$	125,630		$	172,796		$	256,333		$	343,694		$	96,942		$	114,173
Reinsurance premiums ceded		(10,950	)		(30,318	)		(57,908	)		(72,109	)		(2,546	)		(2,908	)
Net premiums written	$	114,680		$	142,478		$	198,425		$	271,585		$	94,396		$	111,265
Earned premiums	$	240,252		$	223,231		$	233,352		$	214,184		$	225,492		$	218,513
Earned premiums ceded		(41,447	)		(36,446	)		(32,941	)		(32,036	)		(19,521	)		(21,082	)
Net premiums earned		198,805			186,785			200,411			182,148			205,971			197,431
Net losses and loss expenses		(130,869	)		(98,067	)		(103,656	)		(111,729	)		(106,906	)		(100,126	)
Acquisition costs		(49,339	)		(47,159	)		(48,164	)		(42,416	)		(46,839	)		(39,296	)
General and administrative expenses		(19,002	)		(16,259	)		(17,061	)		(19,311	)		(16,690	)		(26,640	)
Other income (loss)		1,400			1,560			1,895			4,441			(100	)		(216	)
Underwriting income	$	995		$	26,860		$	33,425		$	13,133		$	35,436		$	31,153
Loss ratio		65.8	%		52.5	%		51.7	%		61.3	%		51.9	%		50.7	%
Acquisition cost ratio		24.8	%		25.2	%		24.0	%		23.3	%		22.7	%		19.9	%
General and administrative expense ratio		9.6	%		8.7	%		8.5	%		10.6	%		8.1	%		13.5	%
Combined ratio		100.2	%		86.5	%		84.3	%		95.2	%		82.7	%		84.1	%

12

ALTERRA CAPITAL HOLDINGS LIMITED

ALTERRA AT LLOYD’S SEGMENT DATA (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE QUARTERS ENDED
	Dec. 31, 2012			Sept. 30, 2012			June 30, 2012			Mar. 31, 2012			Dec. 31, 2011			Dec. 31, 2010
Gross premiums written	$	38,233		$	43,074		$	72,008		$	146,143		$	27,933		$	20,427
Reinsurance premiums ceded		1,704			(8,835	)		(27,068	)		(38,590	)		(8,888	)		(1,859	)
Net premiums written	$	39,937		$	34,239		$	44,940		$	107,553		$	19,045		$	18,568
Earned premiums	$	71,248		$	66,553		$	69,330		$	72,899		$	52,850		$	44,381
Earned premiums ceded		(9,241	)		(13,440	)		(23,108	)		(20,049	)		(14,952	)		(11,894	)
Net premiums earned		62,007			53,113			46,222			52,850			37,898			32,487
Net losses and loss expenses		(39,275	)		(52,342	)		(33,030	)		(38,675	)		(64,346	)		(11,356	)
Acquisition costs		(11,880	)		(10,104	)		(7,443	)		(9,434	)		(7,977	)		(3,963	)
General and administrative expenses		(8,722	)		(7,342	)		(7,856	)		(9,095	)		(7,271	)		(10,260	)
Other income		—			1			7			—			851			2,006
Underwriting income (loss)	$	2,130		$	(16,674	)	$	(2,100	)	$	(4,354	)	$	(40,845	)	$	8,914
Loss ratio		63.3	%		98.5	%		71.5	%		73.2	%		169.8	%		35.0	%
Acquisition cost ratio		19.2	%		19.0	%		16.1	%		17.9	%		21.0	%		12.2	%
General and administrative expense ratio		14.1	%		13.8	%		17.0	%		17.2	%		19.2	%		31.6	%
Combined ratio		96.6	%		131.4	%		104.6	%		108.2	%		210.0	%		78.7	%

13

ALTERRA CAPITAL HOLDINGS LIMITED

LIFE AND ANNUITY REINSURANCE SEGMENT DATA (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE QUARTERS ENDED
	Dec. 31, 2012			Sept. 30, 2012			June 30, 2012			Mar. 31, 2012			Dec. 31, 2011			Dec. 31, 2010
Gross premiums written	$	629		$	725		$	1,054		$	440		$	1,169		$	1,937
Reinsurance premiums ceded		(74	)		(84	)		(155	)		(18	)		(154	)		(166	)
Net premiums written	$	555		$	641		$	899		$	422		$	1,015		$	1,771
Earned premiums	$	629		$	725		$	1,054		$	440		$	1,169		$	1,937
Earned premiums ceded		(74	)		(84	)		(155	)		(18	)		(154	)		(166	)
Net premiums earned		555			641			899			422			1,015			1,771
Net investment income		13,727			13,224			13,466			14,776			11,515			12,084
Net realized and unrealized (losses) gains on investments		—			—			—			—			(5,509	)		3,981
Other income		—			—			—			—			413			357
Claims and policy benefits		(17,006	)		(11,838	)		(13,272	)		(13,466	)		(14,564	)		(18,551	)
Acquisition costs		91			(132	)		(156	)		(119	)		(131	)		79
General and administrative expenses		(76	)		(74	)		(119	)		(34	)		(67	)		(1,088	)
Income (loss) before taxes	$	(2,709	)	$	1,821		$	818		$	1,579		$	(7,328	)	$	(1,367	)

14

ALTERRA CAPITAL HOLDINGS LIMITED

SEGMENT GROSS PREMIUMS WRITTEN BY LINE OF BUSINESS (Unaudited)

(Expressed in thousands of United States Dollars)

			FOR THE QUARTERS ENDED
			Dec. 31, 2012			Sept. 30, 2012			June 30, 2012			Mar. 31, 2012		Dec. 31, 2011			Dec. 31, 2010
Property & Casualty:
Global Insurance:
Aviation		S	$	16,262		$	5,996		$	3,954		$	1,302	$	20,410		$	22,677
Excess Liability		L		22,387			23,746			31,435			25,186		21,281			18,703
Professional Liability		L		46,026			36,558			59,407			24,466		40,360			47,737
Property		S		13,289			15,327			30,480			15,817		15,609			11,999
				97,964			81,627			125,276			66,771		97,660			101,116
U.S. Insurance:
General/ Excess Liability		L		23,675			18,240			23,683			34,667		31,618			28,572
Marine		S		21,719			25,333			28,634			25,201		23,806			17,758
Professional Liability		L		19,712			17,185			13,133			11,208		15,720			2,928
Property		S		29,481			27,248			46,736			33,206		31,135			28,487
				94,587			88,006			112,186			104,282		102,279			77,745
Reinsurance:
Agriculture		S		(305	)		576			5,298			17,505		186			(1,406	)
Auto		S		10,850			2,491			39,590			512		20,548			22,578
Aviation		S		531			16,456			5,820			5,525		337			2,596
Credit/ Surety		S		6,844			19,018			3,266			35,850		6,764			1,557
General Casualty		L		33,449			11,182			23,625			14,956		13,130			18,078
Marine & Energy		S		2,587			3,259			6,610			13,395		3,407			(1,549	)
Medical Malpractice		L		(2,238	)		5,565			8,105			11,276		1,673			19,554
Other		S		(23	)		(882	)		549			4,437		(181	)		520
Professional Liability		L		33,430			34,585			37,246			59,458		20,270			28,538
Property		S		35,547			68,266			117,629			161,124		21,645			9,134
Whole Account		S/L		1,824			2,879			191			1,408		2,408			289
Workers’ Compensation		L		3,134			9,401			8,404			18,248		6,755			14,284
				125,630			172,796			256,333			343,694		96,942			114,173
Alterra at Lloyd’s:
Accident & Health		S		7,789			9,574			8,250			17,432		5,646			5,570
Agriculture		S		(35	)		(2,627	)		613			20,370		—			—
Aviation		S		7,667			2,914			3,220			2,486		5,562			5,224
Financial Institutions		L		7,368			6,566			5,400			6,904		8,137			384
International Casualty		L		2,135			6,093			8,423			49,268		1,947			1,930
Marine		S		2,240			2,014			2,282			2,726		1,493			—
Professional Liability		L		3,537			4,980			6,108			5,428		1,868			4,204
Property		S		7,532			13,560			37,712			41,529		3,280			3,115
				38,233			43,074			72,008			146,143		27,933			20,427
Aggregate Property & Casualty			$	356,414		$	385,503		$	565,803		$	660,890	$	324,814		$	313,461
Life & Annuity:
Life			$	629		$	725		$	1,407		$	87	$	399		$	808
Annuity				—			—			(353	)		353		770			1,129
Aggregate Life & Annuity			$	629		$	725		$	1,054		$	440	$	1,169		$	1,937
Aggregate Property & Casualty and Life & Annuity			$	357,043		$	386,228		$	566,857		$	661,330	$	325,983		$	315,398
S = Short tail lines			$	162,887		$	209,963		$	340,739		$	399,121	$	160,851		$	128,405
L = Long tail lines				193,527			175,540			225,064			261,769		163,963			185,056
Aggregate Property & Casualty			$	356,414		$	385,503		$	565,803		$	660,890	$	324,814		$	313,461
Property [a]			$	85,849		$	124,401		$	232,557		$	251,676	$	71,669		$	52,735
Casualty [b]				192,615			174,101			224,969			261,065		162,759			184,912
Specialty [c]				77,950			87,001			108,277			148,149		90,386			75,814
	��
Aggregate Property & Casualty			$	356,414		$	385,503		$	565,803		$	660,890	$	324,814		$	313,461

[a] Property includes property lines of business.

[b] Casualty includes excess liability, financial institutions, general liability, general casualty, international casualty, medical malpractice, professional liability and workers’ compensation lines of business.

[c] Specialty includes accident & health, agriculture, auto, aviation, credit/surety, energy, marine, other, and whole account lines of business.

15

ALTERRA CAPITAL HOLDINGS LIMITED

SCHEDULE OF SUPPLEMENTAL UNDERWRITING DATA - YEAR ENDED DECEMBER 31, 2012 (Unaudited)

(Expressed in thousands of United States Dollars)

	Property & Casualty															Life & Annuity Reinsurance
	Global Insurance			U.S. Insurance			Reinsurance			Alterra at Lloyd’s			Total						Corporate			Consolidated
Gross premiums written	$	371,638		$	399,061		$	898,453		$	299,458		$	1,968,610		$	2,848		$	—		$	1,971,458
Reinsurance premiums ceded		(189,330	)		(217,964	)		(171,285	)		(72,789	)		(651,368	)		(331	)		—			(651,699	)
Net premiums written	$	182,308		$	181,097		$	727,168		$	226,669		$	1,317,242		$	2,517		$	—		$	1,319,759
Earned premiums	$	373,918		$	394,870		$	911,019		$	280,030		$	1,959,837		$	2,848		$	—		$	1,962,685
Earned premiums ceded		(188,416	)		(200,007	)		(142,870	)		(65,838	)		(597,131	)		(331	)		—			(597,462	)
Net premiums earned		185,502			194,863			768,149			214,192			1,362,706			2,517			—			1,365,223
Net losses and loss expenses		(111,940	)		(206,862	)		(444,321	)		(163,322	)		(926,445	)		—			—			(926,445	)
Claims and policy benefits		—			—			—			—			—			(55,582	)		—			(55,582	)
Acquisition costs		(974	)		(23,184	)		(187,078	)		(38,861	)		(250,097	)		(316	)		—			(250,413	)
General and administrative expenses		(27,593	)		(46,658	)		(71,633	)		(33,015	)		(178,899	)		(303	)		—			(179,202	)
Other income		816			81			9,296			8			10,201			—			—			10,201
Underwriting income (loss)		45,811			(81,760	)		74,413			(20,998	)		17,466			n/a			—			n/a
Net investment income																	55,193			163,771			218,964
Net realized and unrealized gains on investments																				70,886			70,886
Net impairment losses recognized in earnings																				(6,908	)		(6,908	)
Corporate other income																				100			100
Interest expense																				(35,644	)		(35,644	)
Net foreign exchange gains																				160			160
Merger and acquisition expenses																				(3,289	)		(3,289	)
Corporate general and administrative expenses																				(52,360	)		(52,360	)
Income before taxes																$	1,509		$	136,716		$	155,691
Loss ratio [a]		60.3	%		106.2	%		57.8	%		76.3	%		68.0	%
Acquisition cost ratio [b]		0.5	%		11.9	%		24.4	%		18.1	%		18.4	%
General and administrative expense ratio [c]		14.9	%		23.9	%		9.3	%		15.4	%		13.1	%
Combined ratio [d]		75.7	%		142.0	%		91.5	%		109.8	%		99.5	%

[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] 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 for the property & casualty business.

n/a Not applicable.

Percentage totals may not add due to rounding.

16

ALTERRA CAPITAL HOLDINGS LIMITED

CONSOLIDATED UNDERWRITING RATIOS - YEAR ENDED DECEMBER 31, 2012 (Unaudited)

	Property & Casualty
	Global Insurance			U.S. Insurance			Reinsurance			Alterra at Lloyd’s			Total
UNDERWRITING RATIOS
Loss ratio		60.3	%		106.2	%		57.8	%		76.3	%		68.0	%
Acquisition cost ratio		0.5	%		11.9	%		24.4	%		18.1	%		18.4	%
General and administrative expense ratio		14.9	%		23.9	%		9.3	%		15.4	%		13.1	%
Combined ratio		75.7	%		142.0	%		91.5	%		109.8	%		99.5	%
EFFECT OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT FAVORABLE / (UNFAVORABLE)
Loss ratio [a]		23.9	%		(4.1	%)		6.9	%		0.5	%		6.7	%
NET OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT UNDERWRITING RATIOS
Loss ratio		84.2	%		102.1	%		64.8	%		76.8	%		74.6	%
Acquisition cost ratio		0.5	%		11.9	%		24.4	%		18.1	%		18.4	%
General and administrative expense ratio		14.9	%		23.9	%		9.3	%		15.4	%		13.1	%
Combined ratio		99.6	%		137.9	%		98.5	%		110.3	%		106.1	%

CONSOLIDATED UNDERWRITING RATIOS - YEAR ENDED DECEMBER 31, 2011 (Unaudited)

	Property & Casualty
	Global Insurance			U.S. Insurance			Reinsurance			Alterra at Lloyd’s			Total
UNDERWRITING RATIOS
Loss ratio		48.6	%		68.8	%		64.0	%		96.7	%		66.5	%
Acquisition cost ratio		(0.3	%)		16.3	%		22.2	%		22.5	%		18.3	%
General and administrative expense ratio		15.0	%		20.2	%		10.0	%		19.1	%		13.4	%
Combined ratio		63.4	%		105.3	%		96.3	%		138.3	%		98.2	%
EFFECT OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT FAVORABLE / (UNFAVORABLE)
Loss ratio [a]		34.6	%		(4.5	%)		9.5	%		10.6	%		10.8	%
NET OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT UNDERWRITING RATIOS
Loss ratio		83.2	%		64.3	%		73.6	%		107.3	%		77.3	%
Acquisition cost ratio		(0.3	%)		16.3	%		22.2	%		22.5	%		18.3	%
General and administrative expense ratio		15.0	%		20.2	%		10.0	%		19.1	%		13.4	%
Combined ratio		98.0	%		100.8	%		105.8	%		148.9	%		109.0	%

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

Percentage totals may not add due to rounding.

17

ALTERRA CAPITAL HOLDINGS LIMITED

GLOBAL INSURANCE SEGMENT DATA (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE YEARS ENDED
	Dec. 31, 2012			Dec. 31, 2011			Dec. 31, 2010
Gross premiums written	$	371,638		$	365,761		$	370,120
Reinsurance premiums ceded		(189,330	)		(181,454	)		(170,608	)
Net premiums written	$	182,308		$	184,307		$	199,512
Earned premiums	$	373,918		$	364,087		$	391,716
Earned premiums ceded		(188,416	)		(175,348	)		(173,123	)
Net premiums earned		185,502			188,739			218,593
Net losses and loss expenses		(111,940	)		(91,753	)		(128,823	)
Acquisition costs		(974	)		517			(3,381	)
General and administrative expenses		(27,593	)		(28,377	)		(28,615	)
Other income		816			686			760
Underwriting income	$	45,811		$	69,812		$	58,534
Loss ratio		60.3	%		48.6	%		58.9	%
Acquisition cost ratio		0.5	%		(0.3	%)		1.5	%
General and administrative expense ratio		14.9	%		15.0	%		13.1	%
Combined ratio		75.7	%		63.4	%		73.6	%

18

ALTERRA CAPITAL HOLDINGS LIMITED

U.S. INSURANCE SEGMENT DATA (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE YEARS ENDED
	Dec. 31, 2012			Dec. 31, 2011			Dec. 31, 2010
Gross premiums written	$	399,061		$	374,696		$	323,990
Reinsurance premiums ceded		(217,964	)		(142,566	)		(98,576	)
Net premiums written	$	181,097		$	232,130		$	225,414
Earned premiums	$	394,870		$	337,041		$	311,950
Earned premiums ceded		(200,007	)		(113,718	)		(125,218	)
Net premiums earned		194,863			223,323			186,732
Net losses and loss expenses		(206,862	)		(153,558	)		(118,337	)
Acquisition costs		(23,184	)		(36,404	)		(28,444	)
General and administrative expenses		(46,658	)		(45,171	)		(36,015	)
Other income		81			279			507
Underwriting income (loss)	$	(81,760	)	$	(11,531	)	$	4,443
Loss ratio		106.2	%		68.8	%		63.4	%
Acquisition cost ratio		11.9	%		16.3	%		15.2	%
General and administrative expense ratio		23.9	%		20.2	%		19.3	%
Combined ratio		142.0	%		105.3	%		97.9	%

19

ALTERRA CAPITAL HOLDINGS LIMITED

REINSURANCE SEGMENT DATA (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE YEARS ENDED
	Dec. 31, 2012			Dec. 31, 2011			Dec. 31, 2010
Gross premiums written	$	898,453		$	907,186		$	531,912
Reinsurance premiums ceded		(171,285	)		(83,984	)		(64,131	)
Net premiums written	$	727,168		$	823,202		$	467,781
Earned premiums	$	911,019		$	916,688		$	705,398
Earned premiums ceded		(142,870	)		(70,510	)		(71,627	)
Net premiums earned		768,149			846,178			633,771
Net losses and loss expenses		(444,321	)		(541,959	)		(352,491	)
Acquisition costs		(187,078	)		(187,853	)		(132,831	)
General and administrative expenses		(71,633	)		(85,019	)		(70,639	)
Other income		9,296			1,225			—
Underwriting income	$	74,413		$	32,572		$	77,810
Loss ratio		57.8	%		64.0	%		55.6	%
Acquisition cost ratio		24.4	%		22.2	%		21.0	%
General and administrative expense ratio		9.3	%		10.0	%		11.1	%
Combined ratio		91.5	%		96.3	%		87.7	%

20

ALTERRA CAPITAL HOLDINGS LIMITED

ALTERRA AT LLOYD’S SEGMENT DATA (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE YEARS ENDED
	Dec. 31, 2012			Dec. 31, 2011			Dec. 31, 2010
Gross premiums written	$	299,458		$	253,067		$	179,774
Reinsurance premiums ceded		(72,789	)		(63,708	)		(37,448	)
Net premiums written	$	226,669		$	189,359		$	142,326
Earned premiums	$	280,030		$	224,665		$	164,648
Earned premiums ceded		(65,838	)		(60,922	)		(35,793	)
Net premiums earned		214,192			163,743			128,855
Net losses and loss expenses		(163,322	)		(158,323	)		(55,190	)
Acquisition costs		(38,861	)		(36,805	)		(22,447	)
General and administrative expenses		(33,015	)		(31,304	)		(23,965	)
Other income		8			1,204			2,534
Underwriting income (loss)	$	(20,998	)	$	(61,485	)	$	29,787
Loss ratio		76.3	%		96.7	%		42.8	%
Acquisition cost ratio		18.1	%		22.5	%		17.4	%
General and administrative expense ratio		15.4	%		19.1	%		18.6	%
Combined ratio		109.8	%		138.3	%		78.8	%

21

ALTERRA CAPITAL HOLDINGS LIMITED

LIFE AND ANNUITY REINSURANCE SEGMENT DATA (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE YEARS ENDED
	Dec. 31, 2012			Dec. 31, 2011			Dec. 31, 2010
Gross premiums written	$	2,848		$	3,356		$	4,935
Reinsurance premiums ceded		(331	)		(365	)		(400	)
Net premiums written	$	2,517		$	2,991		$	4,535
Earned premiums	$	2,848		$	3,356		$	4,935
Earned premiums ceded		(331	)		(365	)		(400	)
Net premiums earned		2,517			2,991			4,535
Net investment income		55,193			48,534			49,785
Net realized and unrealized (losses) gains on investments		—			(10,408	)		11,358
Other income		—			382			286
Claims and policy benefits		(55,582	)		(59,382	)		(65,213	)
Acquisition costs		(316	)		(557	)		(361	)
General and administrative expenses		(303	)		(648	)		(2,964	)
Income (loss) before taxes	$	1,509		$	(19,088	)	$	(2,574	)

22

ALTERRA CAPITAL HOLDINGS LIMITED

SEGMENT GROSS PREMIUMS WRITTEN BY LINE OF BUSINESS (Unaudited)

(Expressed in thousands of United States Dollars)

		FOR THE YEARS ENDED
		Dec. 31, 2012			Dec. 31, 2011		Dec. 31, 2010
Property & Casualty:
Global Insurance:
Aviation	S	$	27,514		$	32,376	$	39,888
Excess Liability	L		102,754			98,582		89,933
Professional Liability	L		166,457			157,881		177,199
Property	S		74,913			76,922		63,100
				��
			371,638			365,761		370,120
U.S. Insurance:
General Liability	L		100,265			104,654		104,777
Marine	S		100,887			88,493		67,454
Professional Liability	L		61,238			44,169		12,454
Property	S		136,671			137,380		139,305
			399,061			374,696		323,990
Reinsurance [a]:
Agriculture	S		23,074			30,682		29,222
Auto	S		53,443			98,360		32,285
Aviation	S		28,332			15,991		31,292
Credit/ Surety	S		64,978			41,210		7,004
General Casualty	L		83,212			74,652		50,394
Marine & Energy	S		25,851			24,012		16,381
Medical Malpractice	L		22,708			37,345		51,391
Other	S		4,081			3,071		2,729
Professional Liability	L		164,719			159,293		110,388
Property	S		382,566			351,791		166,129
Whole Account	S/L		6,302			35,800		3,871
Workers’ Compensation	L		39,187			34,979		30,826
			898,453			907,186		531,912
Alterra at Lloyd’s:
Accident & Health	S		43,045			37,093		30,921
Agriculture	S		18,321			—		—
Aviation	S		16,287			13,269		16,138
Financial Institutions	L		26,238			27,205		19,448
International Casualty	L		65,919			51,902		25,489
Marine	S		9,262			1,493		—
Professional Liability	L		20,053			20,696		19,591
Property	S		100,333			101,409		68,187
			299,458			253,067		179,774
Aggregate Property & Casualty		$	1,968,610		$	1,900,710	$	1,405,796
Life & Annuity:
Life		$	2,848		$	1,530	$	3,800
Annuity			—			1,826		1,135
Aggregate Life & Annuity		$	2,848		$	3,356	$	4,935
Aggregate Property & Casualty and Life & Annuity		$	1,971,458		$	1,904,066	$	1,410,731
S = Short tail lines		$	1,112,708		$	1,071,452	$	711,971
L = Long tail lines			855,902			829,258		693,825
Aggregate Property & Casualty		$	1,968,610		$	1,900,710	$	1,405,796
Property [b]		$	694,483		$	667,502	$	436,721
Casualty [c]			852,750			811,358		691,890
Specialty [d]			421,377			421,850		277,185
Aggregate Property & Casualty		$	1,968,610		$	1,900,710	$	1,405,796

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

[b] Property includes property lines of business.

[c] Casualty includes excess liability, financial institutions, general liability, general casualty, international casualty, medical malpractice, professional liability and workers’ compensation lines of business.

[d] Specialty includes accident & health, agriculture, auto, aviation, credit/surety, energy, marine, other, and whole account lines of business.

Percentage totals may not add due to rounding.

23

ALTERRA CAPITAL HOLDINGS LIMITED

INVESTMENT PORTFOLIO (Unaudited)

(Expressed in thousands of United States Dollars)

	Carrying Value										Fair Value
Type of Investment	As of Dec. 31, 2012		Investment Distribution			As of Dec. 31, 2011		Investment Distribution			As of Dec. 31, 2012		Investment Distribution			As of Dec. 31, 2011		Investment Distribution
Cash and cash equivalents	$	694,756		8.6	%	$	922,844		11.8	%	$	694,756		8.4	%	$	922,844		11.6	%
U.S. government and agencies		885,370		11.0	%		751,806		9.6	%		885,370		10.7	%		751,806		9.5	%
Non-U.S. governments		246,712		3.1	%		164,621		2.1	%		246,712		3.0	%		164,621		2.1	%
Corporate securities		2,610,605		32.5	%		2,646,358		33.9	%		2,610,605		31.6	%		2,646,358		33.3	%
Municipal securities		273,336		3.4	%		263,007		3.4	%		273,336		3.3	%		263,007		3.3	%
Asset-backed securities		371,597		4.6	%		247,965		3.2	%		371,597		4.5	%		247,965		3.1	%
Residential mortgage-backed securities		1,234,670		15.4	%		1,296,277		16.6	%		1,234,670		15.0	%		1,296,277		16.3	%
Commercial mortgage-backed securities		454,259		5.7	%		361,097		4.6	%		454,259		5.5	%		361,097		4.5	%
Fixed maturities carried at fair value	$	6,076,549		75.6	%	$	5,731,131		73.3	%	$	6,076,549		73.6	%	$	5,731,131		72.1	%
Other investments	$	316,955		3.9	%	$	272,845		3.5	%	$	316,955		3.8	%	$	272,845		3.4	%
Total investments carried at fair value	$	7,088,260		88.2	%	$	6,926,820		88.6	%	$	7,088,260		85.9	%	$	6,926,820		87.1	%
U.S. government and agencies	$	27,639		0.3	%	$	29,201		0.4	%	$	31,481		0.4	%	$	32,906		0.4	%
Non-U.S. governments		527,843		6.6	%		524,449		6.7	%		680,094		8.2	%		623,080		7.8	%
Corporate securities		296,360		3.7	%		319,609		4.1	%		358,308		4.3	%		354,504		4.5	%
Asset-backed securities		424		0.0	%		1,000		0.0	%		425		0.0	%		1,003		0.0	%
Fixed maturities carried at amortized cost	$	852,266		10.6	%	$	874,259		11.2	%	$	1,070,308		13.0	%	$	1,011,493		12.7	%
Equity method investments	$	92,050		1.1	%	$	13,670		0.2	%	$	92,050		1.1	%	$	13,670		0.2	%
Total invested assets	$	8,032,576		100.0	%	$	7,814,749		100.0	%	$	8,250,618		100.0	%	$	7,951,983		100.0	%

As of December 31, 2012, the weighted average book yield of the cash and fixed maturities portfolio was 3.15%, and the weighted average duration was 4.5 years.

	Carrying Value										Fair Value
Credit Ratings	As of Dec. 31, 2012		Ratings Distribution			As of Dec. 31, 2011		Ratings Distribution			As of Dec. 31, 2012		Ratings Distribution			As of Dec. 31, 2011		Ratings Distribution
U.S. government and agencies [a]	$	2,092,893		30.2	%	$	1,869,405		28.3	%	$	2,092,893		29.3	%	$	1,869,405		27.7	%
AAA		1,170,299		16.9	%		948,861		14.4	%		1,170,299		16.4	%		948,861		14.1	%
AA		693,411		10.0	%		883,783		13.4	%		693,411		9.7	%		883,783		13.1	%
A		1,520,959		22.0	%		1,378,361		20.9	%		1,520,959		21.3	%		1,378,361		20.4	%
BBB		320,215		4.6	%		281,983		4.3	%		320,215		4.5	%		281,983		4.2	%
BB		67,041		1.0	%		84,803		1.3	%		67,041		0.9	%		84,803		1.3	%
B		158,934		2.3	%		131,159		2.0	%		158,934		2.2	%		131,159		1.9	%
CCC or lower		38,420		0.6	%		53,157		0.8	%		38,420		0.5	%		53,157		0.8	%
Not rated		14,377		0.2	%		99,619		1.5	%		14,377		0.2	%		99,619		1.5	%
Fixed maturities carried at fair value	$	6,076,549		87.7	%	$	5,731,131		86.8	%	$	6,076,549		85.0	%	$	5,731,131		85.0	%
U.S. government and agencies	$	27,639		0.4	%	$	29,201		0.4	%	$	31,481		0.4	%	$	32,907		0.5	%
AAA		406,659		5.9	%		619,832		9.4	%		532,741		7.5	%		733,631		10.9	%
AA		284,282		4.1	%		82,511		1.2	%		344,170		4.8	%		88,631		1.3	%
A		99,235		1.4	%		117,600		1.8	%		119,756		1.7	%		129,791		1.9	%
BBB		32,031		0.5	%		24,117		0.4	%		39,755		0.6	%		25,705		0.4	%
BB		2,420		0.0	%		998		0.0	%		2,405		0.0	%		828		0.0	%
Fixed maturities carried at amortized cost	$	852,266		12.3	%	$	874,259		13.2	%	$	1,070,308		15.0	%	$	1,011,493		15.0	%
Total fixed maturities	$	6,928,815		100.0	%	$	6,605,390		100.0	%	$	7,146,857		100.0	%	$	6,742,624		100.0	%

[a] Included within U.S. government and agencies are agency-issued residential mortgage-backed securities with a fair value of $1,207,523 (December 31, 2011: $1,117,599).

Percentage totals may not add due to rounding.

	Quarter Ended Dec. 31, 2012			Quarter Ended Sept. 30, 2012			Quarter Ended June 30, 2012			Quarter Ended Mar. 31, 2012			Quarter Ended Dec. 31, 2011			Quarter Ended Dec. 31, 2010
Net investment income	$	52,039		$	53,518		$	54,729		$	58,678		$	57,080		$	61,080
Realized and unrealized (losses) gains on trading fixed maturities	$	(1,322	)	$	3,621		$	587		$	1,066		$	763		$	(3,893	)
Net realized gains on available for sale fixed maturities		3,312			3,087			11,990			7,759			1,990			5,816
Increase (decrease) in fair value of hedge funds		4,871			8,245			(2,894	)		3,679			(5,415	)		5,465
(Decrease) increase in fair value of structured deposit		(1,004	)		1,003			(655	)		365			(313	)		1,773
Income from equity method investments		5,253			5,167			5,583			4,927			1,024			239
Decrease in fair value of catastrophe bonds		—			—			—			—			—			(52	)
Increase (decrease) in fair value of derivatives		366			(687	)		(1,130	)		7,697			(3,824	)		477
Net realized and unrealized gains (losses) on investments	$	11,476		$	20,436		$	13,481		$	25,493		$	(5,775	)	$	9,825
Net impairment losses recognized in earnings	$	(377	)	$	(592	)	$	(570	)	$	(5,369	)	$	(702	)	$	(1,774	)

24

ALTERRA CAPITAL HOLDINGS LIMITED

INVESTMENT PORTFOLIO (Unaudited)

(Expressed in thousands of United States Dollars)

				Periodic Rate of Return
				Last			Year			Last			Last
	As of			3 Months			to Date			12 months			60 months*
	Dec. 31, 2012
Cash and fixed maturities	$	7,623,571			0.71	%		5.43	%		5.43	%		5.40	%
Distressed securities	$	11,214			5.30	%		12.42	%		12.42	%		2.77	%
Diversified arbitrage		12,171			2.78	%		13.01	%		13.01	%		(3.03	%)
Emerging markets		3,576			1.23	%		(27.45	%)		(27.45	%)		(6.23	%)
Event-driven arbitrage		7,026			1.88	%		(10.83	%)		(10.83	%)		(10.59	%)
Fixed income arbitrage		—			0.00	%		0.00	%		0.00	%		7.73	%
Fund of funds		18,316			2.34	%		8.45	%		8.45	%		2.63	%
Global macro		61,145			1.73	%		7.77	%		7.77	%		4.11	%
Long / short credit		377			(3.25	%)		(7.59	%)		(7.59	%)		(1.92	%)
Long / short equity		177,708			0.86	%		7.78	%		7.78	%		1.34	%
Opportunistic		1,660			0.00	%		(2.00	%)		(2.00	%)		(24.89	%)
Hedge funds **		293,193			0.80	%		3.80	%		3.80	%		(1.14	%)
Derivatives		(488	)
Structured deposits		24,250
Total other investments	$	316,955
Equity method investments	$	92,050
Total invested assets	$	8,032,576
Hedge Fund Investment Return Data:
HFRI Fund of Funds Composite Index [a]					1.34	%		4.81	%		4.81	%		(1.75	%)
Hedge Fund Performance History - 60 months ended December 31, 2012

Monthly performance	2012			2011			2010			2009			2008
January		1.53	%		0.13	%		0.79	%		2.13	%		(1.37	%)
February		0.02	%		0.57	%		0.17	%		0.65	%		1.83	%
March		(0.21	%)		0.29	%		1.02	%		(0.76	%)		(2.58	%)
April		(0.02	%)		0.73	%		0.88	%		(0.84	%)		(0.13	%)
May		(0.41	%)		(0.28	%)		(0.73	%)		2.45	%		2.51	%
June		(0.48	%)		(0.89	%)		(0.83	%)		1.53	%		0.93	%
July		0.81	%		0.15	%		0.36	%		1.40	%		(4.12	%)
August		1.20	%		(1.37	%)		(0.28	%)		0.78	%		(2.14	%)
September		0.53	%		(1.13	%)		1.28	%		1.71	%		(7.31	%)
October		(0.59	%)		0.07	%		0.84	%		1.53	%		(4.85	%)
November		0.73	%		(0.19	%)		0.40	%		0.35	%		(1.75	%)
December		0.65	%		(1.67	%)		0.31	%		0.77	%		(1.92	%)
Quarterly performance
Q1		1.33	%		0.98	%		1.99	%		2.00	%		(2.15	%)
Q2		(0.91	%)		(0.45	%)		(0.69	%)		3.14	%		3.33	%
Q3		2.56	%		(2.33	%)		1.35	%		3.94	%		(13.03	%)
Q4		0.80	%		(1.79	%)		1.56	%		2.66	%		(8.31	%)
Period return		3.80	%		(3.57	%)		4.25	%		12.27	%		(19.38	%)

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

[a] As reported by HFRI as of January 23, 2013

* Annualized

** Net of all fees

25

ALTERRA CAPITAL HOLDINGS LIMITED

LARGEST 25 CORPORATE HOLDINGS [a] (Unaudited)

(Expressed in thousands of United States Dollars)

	As of December 31, 2012
	Amortized		Fair
Issuer	Cost		Value
European Investment Bank	$	65,085	$	78,601
General Electric Co.		65,774		72,593
KFW		51,615		61,032
JP Morgan Chase & Co		57,442		60,953
Bank of America Corp		46,983		51,404
Wells Fargo & Co		41,479		45,563
Goldman Sachs Group Inc		41,459		44,064
Verizon Communications Inc		39,024		40,680
Citigroup Inc		32,822		37,114
Metlife Inc		34,011		36,971
Novartis AG		33,574		35,285
Credit Suisse Group AG		32,573		34,913
UBS AG		30,109		34,557
AT&T Inc		31,465		33,521
Pepsico Inc		31,055		33,054
HSBC Holdings plc		31,466		32,914
BP plc		29,935		31,557
Barclays plc		29,509		31,011
Wal-Mart Stores Inc		27,374		29,945
Canadian Imperial Bank of Commerce		29,403		29,780
Morgan Stanley		27,370		29,459
Duke Energy Corp		26,927		29,213
Lloyds Banking Group plc		24,540		27,246
Costco Wholesale Corp		26,354		26,846
Coca-Cola Co		24,343		26,723
	$	911,691	$	994,999

[a] Corporate holdings includes supranationals and government-guaranteed corporate securities.

26

ALTERRA CAPITAL HOLDINGS LIMITED

EUROPEAN GOVERNMENT AND EUROPEAN BANKING INSTITUTION HOLDINGS (Unaudited)

(Expressed in thousands of United States Dollars)

	As of December 31, 2012
	Fair
Largest European Government Holdings	Value		% of Total
France	$	297,590		35.6	%
Germany		281,758		33.7	%
Netherlands		161,638		19.4	%
United Kingdom		53,218		6.4	%
Belgium		23,077		2.8	%
Norway		7,381		0.9	%
Denmark		4,487		0.5	%
All Other European Governments		6,183		0.7	%
Total European Government Holdings	$	835,332		100.0	%
	As of December 31, 2012
	Fair
Largest European Banking Institution Holdings	Value		% of Total
European Investment Bank	$	78,601		16.0	%
KFW		61,032		12.5	%
UBS AG		34,557		7.1	%
Credit Suisse Group AG		33,296		6.8	%
HSBC Holdings plc		30,691		6.3	%
Barclays plc		29,190		6.0	%
Lloyds Banking Group plc		27,246		5.5	%
Nordea Bank AB		21,916		4.5	%
BNP Paribas SA		20,673		4.2	%
All Other		152,512		31.1	%
Total European Banking Institutions	$	489,714		100.0	%

Percentage totals may not add due to rounding.

27

ALTERRA CAPITAL HOLDINGS LIMITED

EUROPEAN CORPORATE FIXED MATURITIES INVESTMENT EXPOSURES (Unaudited)

(Expressed in thousands of United States Dollars)

	As of December 31, 2012
	Banking Institutions		Other Financial Institutions		Other Corporates		Total
Country
United Kingdom	$	103,614	$	33,053	$	106,889	$	243,556
Netherlands		46,632		1,561		61,089		109,282
Germany		88,409		—		13,043		101,452
France		40,610		851		58,446		99,907
Supranational		86,238		—		—		86,238
Switzerland		65,878		1,617		1,086		68,581
Norway		20,739		—		23,314		44,053
Sweden		32,593		—		—		32,593
Luxembourg		—		—		12,095		12,095
Ireland		1,237		—		3,172		4,409
Spain		3,764		—		515		4,279
Jersey		—		—		1,679		1,679
Fair value	$	489,714	$	37,082	$	281,328	$	808,124
Balance sheet carrying value [a]	$	445,227	$	34,348	$	261,608	$	741,183
Credit rating
AAA	$	262,645	$	27,617	$	1,822	$	292,084
AA		76,827		1,561		58,863		137,251
A		130,893		5,185		186,110		322,188
BBB		12,156		2,223		26,248		40,627
BB		4,977		496		1,944		7,417
B		2,216		—		5,129		7,345
Not Rated		—		—		1,212		1,212
Fair value	$	489,714	$	37,082	$	281,328	$	808,124
Balance sheet carrying value [a]	$	445,227	$	34,348	$	261,608	$	741,183

[a] The trading and available for sale portfolios are carried at fair value and the held to maturity portfolio is carried at amortized cost.

28

ALTERRA CAPITAL HOLDINGS LIMITED

NEW POINT IV SUMMARY (Unaudited)

(Expressed in thousands of United States Dollars)

New Point IV Limited (“New Point IV”) is a side car vehicle established in 2011 to provide capacity to write property catastrophe collateralized retrocessional coverage. New Point IV is sponsored by Alterra in partnership with Stone Point Capital LLC and other investors. Alterra provides underwriting services to New Point Re IV Limited (“New Point Re IV), a wholly-owned subsidiary of New Point IV.

Alterra owns 34.8% of the common shares of New Point IV and accounts for it as an equity method investment.

	FOR THE QUARTERS ENDED				FOR THE YEAR ENDED
	Dec. 31, 2012		Dec. 31, 2011		Dec. 31, 2012		Dec. 31, 2011
Gross Premiums Written by New Point IV [a]	$	370	$	—	$	75,710	$	8,843
The following is included in Alterra’s consolidated financial statements for the respective periods:
Balance Sheet
Other investments [b]	$	88,469	$	9,686	$	88,469	$	9,686
Statement of Operations and Comprehensive Income
Other income [c]	$	1,531	$	260	$	9,153	$	797
Income from equity method investment [d]	$	5,342	$	640	$	21,114	$	1,049

[a] New Point IV is not consolidated by Alterra. Consequently, these gross premiums written are not included in Alterra’s gross premiums written.

[b] Represents Alterra’s 34.8% investment in New Point IV under the equity method of accounting.

[c] Represents the underwriting fees and profit commissions earned by Alterra in connection with New Point Re IV. This is included in the reinsurance segment and is included in net operating income.

[d] Represents Alterra’s 34.8% share of the net income of New Point IV. This is included within net realized and unrealized gains on investments in Alterra’s statement of operations and comprehensive income and is included in net operating income.

29

ALTERRA CAPITAL HOLDINGS LIMITED

SHAREHOLDER RETURN ANALYSIS (Unaudited)

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

	FOR THE QUARTERS ENDED						FOR THE YEARS ENDED
	Dec. 31, 2012			Dec. 31, 2011			Dec. 31, 2012			Dec. 31, 2011
Income and Return on Equity:
Net income (loss)	$	(51,810	)	$	30,948		$	143,806		$	65,282
Net operating income (loss)	$	(49,713	)	$	31,685		$	119,103		$	96,600
Average shareholders’ equity	$	2,881,449		$	2,826,987		$	2,862,663		$	2,806,191
Annualized return on average shareholders’ equity [a]		(7.2	%)		4.4	%		5.0	%		2.3	%
Annualized net operating return on average shareholders’ equity [a]		(6.9	%)		4.5	%		4.2	%		3.4	%
Book value and dividends per share:
Diluted book value per share	$	28.34		$	26.91		$	28.34		$	26.91
Dividends paid per share	$	0.16		$	0.14		$	0.60		$	0.52
Change in diluted book value per share		(4.2	%)		(1.0	%)		5.3	%		3.5	%
Dividend payout ratio [b]		0.6	%		0.5	%		2.1	%		1.9	%
Total return to shareholders [c]		(3.6	%)		(0.5	%)		7.4	%		5.4	%

[a] Annualized return on average shareholders’ equity is defined as annualized net income divided by the average of the quarterly average 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 average shareholders’ equity balances.

[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.

Percentage totals may not add due to rounding.

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 YEARS ENDED
	Dec. 31, 2012			Dec. 31, 2011		Dec. 31, 2012		Dec. 31, 2011
Net income (loss) available to common shareholders	$	(51,810	)	$	30,948	$	143,806	$	65,282
Denominator:
Weighted average shares - basic
Outstanding [a]		95,361,754			103,081,593		97,700,159		105,022,397
Unvested restricted share units		329,945			241,784		312,265		227,286
		95,691,699			103,323,377		98,012,424		105,249,683
Share equivalents:
Warrants		—			1,247,101		2,012,786		1,023,278
Options		—			101,285		128,204		124,022
Employee stock purchase plan		—			1,128		3,390		1,386
Non participating restricted shares		—			—		400,548		104,524
Weighted average shares - diluted [b]		95,691,699			104,672,891		100,557,352		106,502,893
Net income (loss) per share	$	(0.54	)	$	0.30	$	1.47	$	0.62
Net income (loss) per diluted share	$	(0.54	)	$	0.30	$	1.43	$	0.61

[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 YEARS ENDED
	Dec. 31, 2012			Dec. 31, 2011			Dec. 31, 2012			Dec. 31, 2011
Before tax
Net income (loss)	$	(37,290	)	$	24,047		$	155,691		$	55,781
Net realized and unrealized (gains) losses on investments excluded from operating income, before tax [a]		(888	)		1,059			(28,964	)		29,486
Foreign exchange (gains) losses, before tax		(71	)		(753	)		(160	)		1,312
Merger and acquisition expenses, before tax		3,239			—			3,239			—
Net operating income (loss)	$	(35,010	)	$	24,353		$	129,806		$	86,579
Net of tax
Net income (loss)	$	(51,810	)	$	30,948		$	143,806		$	65,282
Net realized and unrealized (gains) losses on investments excluded from operating income, net of tax [a]		(1,094	)		1,271			(27,826	)		30,391
Foreign exchange (gains) losses, before tax		(48	)		(534	)		(116	)		927
Merger and acquisition expenses, net of tax		3,239			—			3,239			—
Net operating income (loss)	$	(49,713	)	$	31,685		$	119,103		$	96,600
Weighted average shares outstanding:
Basic		95,691,699			103,323,377			98,012,424			105,249,683
Diluted		95,691,699			104,672,891			100,557,352			106,502,893
Basic per share data
Net income (loss)	$	(0.54	)	$	0.30		$	1.47		$	0.62
Net realized and unrealized (gains) losses on investments excluded from operating income, net of tax [a]		(0.01	)		0.01			(0.28	)		0.29
Foreign exchange (gains) losses, net of tax		—			(0.01	)		—			0.01
Merger and acquisition expenses, net of tax		0.03			—			0.03			—
Net operating income (loss)	$	(0.52	)	$	0.31		$	1.22		$	0.92
Diluted per share data
Net income (loss)	$	(0.54	)	$	0.30		$	1.43		$	0.61
Net realized and unrealized (gains) losses on investments excluded from operating income, net of tax [a]		(0.01	)		0.01			(0.28	)		0.29
Foreign exchange (gains) losses, net of tax		—			(0.01	)		—			0.02
Merger and acquisition expenses, net of tax		0.03			—			0.03			—
Net operating income (loss)	$	(0.52	)	$	0.30		$	1.18		$	0.91

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

Per share totals may not add due to rounding.

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 Dec. 31, 2012		As of Dec. 31, 2011
Price per share at period end	$	28.19	$	23.63
Shareholders’ equity	$	2,839,722	$	2,809,235
Goodwill and intangible assets	$	54,751	$	56,111
Tangible book value	$	2,784,971	$	2,753,124
Basic common shares outstanding [a]		96,059,645		102,101,950
Add: unvested restricted stock units		354,015		241,108
Add: dilutive impact of warrants outstanding		3,546,067		1,938,297
Add: dilutive impact of options outstanding		253,598		125,424
Add: unvested performance based restricted shares		—		—
Diluted shares outstanding [b]		100,213,325		104,406,779
Basic book value per share	$	29.56	$	27.51
Diluted book value per share	$	28.34	$	26.91
Basic tangible book value per share	$	28.99	$	26.96
Diluted tangible book value per share	$	27.79	$	26.37

[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.

[c] Not included in shareholders’ equity as of December 31, 2012 were $218.0 million of unrecognized net gains on held-to-maturity securities, which if included, would increase diluted book value per share by $2.18 as of December 31, 2012.

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 investments excluded from operating income (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 derivatives, catastrophe bonds, structured deposits and earnings from equity method investments in run-off), 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 and the underlying fundamentals of our operations as realized and unrealized gains and losses on investments excluded from operating income and foreign exchange gains and losses may fluctuate from period to period and 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 quarterly average shareholders’ equity balances. 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