Alterra Capital 8-K Max Re Capital Announces Director Resignation

Exhibit 99.3

MAX RE CAPITAL LTD. REPORTS FOURTH

QUARTER NET INCOME OF $0.29 PER DILUTED SHARE:

Hamilton, Bermuda, February 3, 2003 – Max Re Capital Ltd. (NASDAQ: MXRE) today reported net income for the three months ended December 31, 2002 of $11.0 million, or income of $0.29 per diluted share, compared to net income of $10.1 million, or income of $0.26 per diluted share for the same period in 2001. Net operating income before minority interest, which represents net income before minority interest reduced by net realized gains on fixed maturities, for the three months ended December 31, 2002 was $10.8 million, or income of $0.24 per diluted share, compared with net operating income before minority interest of $10.9 million, or income of $0.23 per diluted share for the three months ended December 31, 2001. For the year ended December 31, 2002, the Company had a net loss of $5.7 million, or a loss of $0.15 per diluted share, compared to net income of $2.5 million, or income of $0.06 per diluted share, for the year ended December 31, 2001. For the year ended December 31, 2002, the Company had a net operating loss before minority interest of $12.4 million, or a loss of $0.27 per diluted share, compared to net operating income before minority interest of $0.1 million, or nil per diluted share, for the year ended December 31, 2001.

Robert J. Cooney, Chairman, President and Chief Executive Officer, commented, “Our favorable results this quarter are primarily attributable to a 4% return on the alternative investment portfolio and emerging profits from property and casualty risk underwriting. We continue to be pleased by the market acceptance of our traditional property and casualty reinsurance capability, which accounted for over $78 million in gross premiums written during the quarter.”

Gross premiums written for the three months ended December 31, 2002 was $124.9 million, comprised entirely from property and casualty underwriting, compared to $239.4 million, comprised of $139.3 million from property and casualty underwriting and $100.1 million from life and annuity underwriting, for the three months ended December 31, 2001. Included in gross premiums written for the three months ended December 31, 2002 is $32.3 million of premium stemming from contractual provisions contained in a contract written in a previous year which provided for additional premium in the event of additional reported losses. For the year ended December 31, 2002, gross premiums written was $656.0 million, comprised of $641.3 million from property and casualty underwriting and $14.7 million from life and annuity underwriting, compared to 2001 gross premiums written of $710.6 million, comprised of property and casualty underwriting of $496.5 million and life and annuity underwriting of $214.1 million. Net premiums written for the three months ended December 31, 2002 were $122.3 million, compared to $202.3 million for the same period of 2001. Net premiums written were $600.0 million for the year ended December 31, 2002 versus $594.1 million for the year ended December 31, 2001. Deposits received from underwriting activities that do not meet the criteria for being classified as premiums was $90.5 million in 2002 compared to $96.1 million in 2001.

Total revenue for the three months ended December 31, 2002 was $201.6 million, compared to $272.8 million of total revenue for the same period in 2001. For 2002, total revenue was $503.9 million compared to $581.0 million for 2001. The decrease in total revenue for both the fourth quarter and the year results principally from a drop in the Company’s life and annuity underwriting production during 2002 versus 2001, which was partially mitigated by increased net investment income from growth in fixed maturities securities and increased gains on alternative investments.

Net investment income, excluding realized and unrealized gains and losses, for the three months ended December 31, 2002 increased to $25.4 million, compared to $11.9 million for the same period in 2001. Net investment income, excluding realized and unrealized gains and losses, for the year ended December 31, 2002 increased $21.1 million, to $65.0 million, compared to $43.9 million for the same period in 2001. Included in net investment income for the three months and year ended December 31, 2002 is $9.8 million of interest income from the reinsurance contract discussed above, which also provided for the receipt of interest when additional premiums are received. Net gains on alternative investments for the three months ended December 31, 2002 was $26.0 million, or 4.02%, compared to net gains on alternative investments of $14.4 million, or 2.61%, for the same period of 2001. For the year ended December 31, 2002, the return on alternative investments was 5.18%, compared to a 6.69% return in 2001. Invested assets were $2.0 billion as of December 31, 2002, with an allocation of approximately 68% to cash and fixed maturities and an allocation of approximately 32% to alternative investments. The ratio of invested assets to minority interest and total shareholders’ equity was 2.87 at December 31, 2002, compared to 2.32 as of December 31, 2001.

General and administrative expenses for the three months ended December 31, 2002 were $7.7 million compared to $6.4 million for the three months ended December 31, 2001. General and administrative expenses for the year ended December 31, 2002 were $23.2 million compared to $21.0 million for the year ended December 31, 2001. Personnel costs are a substantial component of general and administrative expenses, and such costs continued to increase from the prior year consistent with the Company’s plan for increasing headcount to support its growing operations. General and administrative expenses for the year ended December 31, 2002 were 5.9% of net premiums earned, compared to 4.2% of net premiums earned for the year 2001.

Minority interest and shareholders’ equity was $709.8 million at December 31, 2002. Combined book value per share at December 31, 2002, including conversion of the non-voting Max Re Ltd. common shares held by the founding investors, was $15.73 per share compared to $14.92 at December 31, 2001.

Max Re Capital Ltd., through its principal operating subsidiary, Max Re Ltd., offers customized reinsurance solutions to property and casualty insurers, life and health insurers, and large corporations.

The above remarks about future expectations, plans and prospects for the Company are forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those suggested by such statements. For further information regarding cautionary statements and factors affecting future operating results, please refer to the Company’s most recent Annual Report on Form 10-K and other documents filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statement whether as a result of new information, future developments or otherwise.

Contact Information:
Keith S. Hynes	N. James Tees
Executive Vice President & CFO	Senior Vice President & Treasurer
441-296-8800	441-296-8800
keithh@maxre.bm	jimt@maxre.bm

MAX RE CAPITAL LTD.

CONSOLIDATED BALANCE SHEETS (Unaudited)
(Expressed in thousands of United States Dollars, except share amounts)
	December 31, 2002			December 31, 2001
ASSETS
Cash and cash equivalents	$	92,103		$	98,322
Fixed maturities, available for sale at fair value		1,279,564			884,069
Alternative investments, at fair value		652,744			627,793
Accrued interest income		12,304			10,896
Premiums receivable		198,037			89,607
Losses recoverable from reinsurers		217,172			173,663
Funds withheld		55,276			55,480
Deferred acquisition costs		79,551			39,835
Deferred charges		32,086			44,437
Prepaid reinsurance premiums		25,519			17,373
Other assets		11,631			7,075
Total assets	$	2,655,987		$	2,048,550
LIABILITIES
Property and casualty losses and experience refunds	$	787,737		$	596,377
Life and annuity benefits and experience refunds		405,008			423,767
Reinsurance balances payable		195,642			129,655
Deposit liabilities		115,513			79,389
Unearned property and casualty premiums		324,387			110,963
Accounts payable and accrued expenses		17,870			8,736
Bank loan		100,000			—
Total liabilities		1,946,157			1,348,887
Minority interest		116,424			115,593
SHAREHOLDERS’ EQUITY
Preferred shares
par value $1; 20,000,000 shares authorized
no shares issued or outstanding		—			—
Common shares
par value $1; 200,000,000 shares authorized
37,998,779 shares issued and outstanding (2001 - 39,582,379)		37,999			39,582
Additional paid-in capital		526,582			543,438
Loans receivable from common share sales		(12,575	)		(12,575	)
Unearned stock grant compensation		(2,656	)		(2,894	)
Accumulated other comprehensive income		48,318			13,475
Retained earnings (deficit)		(4,262	)		3,044
Total shareholders’ equity		593,406			584,070
Total liabilities, minority interest and shareholders’ equity	$	2,655,987		$	2,048,550

MAX RE CAPITAL LTD.

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited)

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

	Three Months Ended December 31						Years Ended December 31
	2002			2001			2002			2001
REVENUES
Gross premiums written	$	124,874		$	239,448		$	655,970		$	710,551
Reinsurance premiums ceded		(2,585	)		(37,167	)		(56,000	)		(116,417	)
Net premiums written	$	122,289		$	202,281		$	599,970		$	594,134
Earned premiums	$	160,716		$	289,807		$	442,546		$	599,991
Earned premiums ceded		(13,669	)		(46,150	)		(47,854	)		(99,044	)
Net premiums earned		147,047			243,657			394,692			500,947
Net investment income		25,387			11,872			64,962			43,870
Net gains on alternative investments		25,977			14,401			32,643			29,784
Net realized gains on fixed maturities		2,139			1,543			5,390			2,512
Other income		1,028			1,359			6,181			3,857
Total revenues		201,578			272,832			503,868			580,970
LOSSES AND EXPENSES
Losses, benefits and experience refunds		140,023			245,156			384,019			524,365
Acquisition costs		37,133			9,598			98,885			30,860
Interest expense		3,755			(767	)		4,833			2,079
General and administrative expenses		7,734			6,422			23,188			21,042
Total losses and expenses		188,645			260,409			510,925			578,346
INCOME (LOSS) BEFORE MINORITY INTEREST		12,933			12,423			(7,057	)		2,624
Minority interest		(1,910	)		(2,274	)		1,340			(93	)
NET INCOME (LOSS)		11,023			10,149			(5,717	)		2,531
Change in net unrealized appreciation of fixed maturities		(3,889	)		(6,269	)		34,860			6,674
COMPREHENSIVE INCOME (LOSS)	$	7,134		$	3,880		$	29,143		$	9,205
Basic earnings (loss) per share	$	0.29		$	0.26		$	(0.15	)	$	0.08
Diluted earnings (loss) per share	$	0.29		$	0.26		$	(0.15	)	$	0.06
Diluted net operating earnings (loss) per share	$	0.24		$	0.23		$	(0.27	)	$	—
Weighted average shares outstanding—basic		38,159,508			39,657,841			39,097,059			32,710,380
Weighted average shares outstanding—diluted		45,279,397			47,588,449			46,352,678			40,597,763

MAX RE CAPITAL LTD.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

(Expressed in thousands of United States Dollars)

	Years ended December 31
	2002			2001
Preferred shares
Balance, beginning of period	$	—		$	—
Balance, end of period		—			—
Common shares
Balance, beginning of period		39,582			27,683
Issuance shares		262			13,102
Repurchase of shares		(1,845	)		(1,203	)
Balance, end of period		37,999			39,582
Additional paid-in capital
Balance, beginning of period		543,438			376,905
Issuance shares		3,736			198,210
Repurchase of shares		(19,058	)		(15,856	)
Direct equity offering expenses					(15,821	)
Distribution of capital		(1,534	)
Balance, end of period		526,582			543,438
Loans receivable from common share sales
Balance, beginning of period		(12,575	)		(11,650	)
Loans granted		—			(1,025	)
Loans repaid		—			100
Balance, end of period		(12,575	)		(12,575	)
Unearned stock grant compensation
Balance, beginning of period		(2,894	)		(630	)
Stock grants awarded		(971	)		(3,288	)
Amortization		1,209			1,024
Balance, end of period		(2,656	)		(2,894	)
Accumulated other comprehensive income
Balance, beginning of period		13,475			6,801
Holding gains on fixed maturities		46,004			10,652
Gains included in net income		(5,390	)		(2,512	)
Allocation to minority interest		(5,771	)		(1,466	)
Balance, end of period		48,318			13,475
Retained earnings (deficit)
Balance, beginning of period		3,044			1,306
Net income (loss)		(5,717	)		2,531
Dividends paid		(1,589	)		(793	)
Balance, end of period		(4,262	)		3,044
Total shareholders’ equity	$	593,406		$	584,070

MAX RE CAPITAL LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(Expressed in thousands of United States Dollars)

	Years ended December 31
	2002			2001
OPERATING ACTIVITIES
Net income (loss)	$	(5,717	)	$	2,531
Adjustments to reconcile net income (loss) to net cash from operating activities:
Minority share of income (loss)		(1,340	)		93
Amortization of unearned stock grant compensation		1,210			1,024
Amortization of discount on fixed maturities		1,378			(1,015	)
Realized gains on fixed maturities		(5,390	)		(2,512	)
Net gains on alternative investments		(32,643	)		(29,784	)
Accrued interest income		(1,408	)		(4,477	)
Premiums receivable		(108,430	)		(86,899	)
Losses recoverable from reinsurers		(43,509	)		(168,293	)
Funds withheld		204			(13,489	)
Deferred acquisition costs		(39,716	)		(39,835	)
Deferred charges		12,351			(22,756	)
Prepaid reinsurance premiums		(8,146	)		(17,373	)
Other assets		(4,556	)		(4,108	)
Property and casualty losses and experience refunds		191,360			460,039
Life and annuity benefits and experience refunds		(18,759	)		169,848
Reinsurance balances payable		65,987			106,988
Unearned property and casualty premiums		213,424			110,560
Accounts payable and accrued expenses		9,134			1,158
Cash from operating activities		225,434			461,700
INVESTING ACTIVITIES
Purchase of fixed maturities		(746,259	)		(588,120	)
Sales (purchases) of alternative investments, net		7,936			(250,910	)
Sales of fixed maturities		306,241			178,571
Redemptions of fixed maturities		88,905			16,780
Cash used in investing activities		(343,177	)		(643,679	)
FINANCING ACTIVITIES
Net proceeds from issue of common shares		3,027			191,179
Repurchases of common shares		(20,903	)		(17,059	)
Proceeds from bank loan		100,000			—
Dividends paid / distributions of capital		(3,123	)		(793	)
Distributions to / conversion of minority shareholders		(3,600	)		(146	)
Deposit liabilities, net		36,124			79,389
Notes and loans repaid		—			100
Cash from financing activities		111,525			252,670
Changes in cash and cash equivalents		(6,218	)		70,691
Cash and cash equivalents, beginning of period		98,322			27,631
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	92,104		$	98,322

MAX RE CAPITAL LTD.

SCHEDULE OF SUPPLEMENTAL DATA—DECEMBER 31, 2002

Computation of Combined Book Value per Common Share:
	$	Shares	Per Share
Shareholders’ Equity	593,406,668	37,998,779	$	15.62
Minority Interest	116,424,147	7,119,332
Total Combined Equity	709,830,815	45,118,111	$	15.73
		As of
Selected Performance Measurements:	Year Ended 12/31/2002	12/31/2002	12/31/2001
Return on Average Combined Equity	-1.00%
Invested Assets to Combined Equity		2.87		2.32
General & Administrative Expense Ratio	5.87%

Year to Date Segment Information: (in 000’s US$)	Structured			Property & Casualty Alternative Risk			Traditional			Life & Annuity			Other		Consolidated
Gross premiums written	$	317,195		$	186,200		$	137,919		$	14,656		$	—	$	655,970
Reinsurance premiums ceded		(44,914	)		(8,888	)		—			(2,198	)		—		(56,000	)
Net premiums written	$	272,281		$	177,312		$	137,919		$	12,458		$	—	$	599,970
Earned premiums	$	291,828		$	97,152		$	38,910		$	14,656		$	—	$	442,546
Earned premiums ceded		(40,471	)		(5,185	)		—			(2,198	)		—		(47,854	)
Net premiums earned		251,357			91,967			38,910			12,458			—		394,692
Net investment income		—			—			—			—			64,962		64,962
Net gains on alternative investments		—			—			—			—			32,643		32,643
Net realized gains on fixed maturities		—			—			—			—			5,390		5,390
Other income		2,763			638			—			—			2,780		6,181
Total revenues		254,120			92,605			38,910			12,458			105,775		503,868
Losses, benefits and experience refunds		240,588			64,038			28,152			51,241			—		384,019
Acquisition costs		68,663			21,210			9,218			(206	)		—		98,885
Interest expense		910			—			—			1,610			2,313		4,833
General and administrative expenses		3,626			2,129			1,577			6,616			9,240		23,188
Total losses and expenses		313,787			87,377			38,947			59,261			11,553		510,925
Net income (loss) before minority interest	$	(59,667	)	$	5,228		$	(37	)	$	(46,803	)	$	94,222	$	(7,057	)
Loss Ratio					69.6	%		72.4	%
Combined Ratio					95.0	%		100.1	%
Expected Cost of Funds
Gross deposits	$	90,462		$	—		$	—		$	—		$	—	$	90,462
Net deposits	$	68,115		$	—		$	—		$	—		$	—	$	68,115

MAX RE CAPITAL LTD.

SCHEDULE OF SUPPLEMENTAL DATA—DECEMBER 31, 2002

	Periodic Rate of Return
Selected Investment Return Data:	Market Value*		Investment %’s		Quarter Ended		Year Ended		Inception to Date**
Cash and Fixed Maturities	$	1,371,667	67.8	%	0.84	%	8.59	%	9.04	%
Global Macro	$	93,240	4.6	%	4.16	%	7.35	%	8.49	%
Long / Short Equity		59,222	2.9	%	0.65	%	-2.40	%	0.75	%
Convertible Arbitrage		36,290	1.8	%	7.88	%	10.00	%	13.83	%
Merger Arbitrage		—	0.0	%	0.00	%	-0.43	%	3.95	%
Diversified Arbitrage		123,173	6.1	%	4.48	%	8.58	%	12.72	%
Distressed Securities		79,445	3.9	%	7.20	%	3.00	%	2.90	%
Opportunistic		33,617	1.7	%	4.11	%	1.74	%	6.80	%
Emerging Markets		24,971	1.2	%	0.97	%	0.33	%	0.33	%
Fixed Income Arbitrage		47,164	2.3	%	6.61	%	15.91	%	9.50	%
Event-Driven Arbitrage		48,286	2.4	%	2.27	%	-0.53	%	7.88	%
Commodity Trading Advisers		33,440	1.7	%	-6.50	%	-2.37	%	-2.37	%
MDS		578,848	28.6	%	4.02	%	4.15	%	5.01	%
Insurance Underwriting		73,896	3.6	%	4.06	%	14.19	%	7.04	%
Alternative Investments	$	652,744	32.2	%	4.02	%	5.18	%	5.32	%
Total Investments	$	2,024,411	100.0	%	1.88	%	7.35	%	7.62	%
Comparative returns
Lehman Aggregate Bond Index					1.59	%	10.41	%	10.14	%
Standard & Poors 500 Stock Index					8.43	%	-22.09	%	-14.54	%
80% Lehman Index and 20% S&P Index					3.07	%	3.92	%	5.22	%

* Expressed in thousands of United States Dollars

** Annualized