Alterra Capital 8-K Max Capital Group LTD. Reports Record Net Income for 2007

I N S U R A N C E   /   R E I N S U R A N C E

B E R M U D A         I R E L A N D         U N I T E D   S T A T E S

MAX CAPITAL GROUP LTD.

Nasdaq: MXGL

Investor Presentation

as of / year ended December 31, 2007

Exhibit 99.2

2

INFORMATION CONCERNING

FORWARD LOOKING STATEMENTS

This presentation includes statements about future economic performance, finances,

expectations,

plans

and

prospects

of

the

Company

that

constitute

forward-looking

statements for purposes of the safe harbor provisions of the Private Securities

Litigation Reform Act of 1995. Such forward-looking 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

results,

please

refer

to

the

Company’s

most

recent

Annual

Report

on

Form 10-K

,

Quarterly Reports on Form 10-Q filed subsequent to the Annual Report

and other documents filed by the Company with the SEC. 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.

3

Max Capital Today

Global underwriter of specialty insurance and reinsurance focused on risk

adjusted returns and book value growth

Operating subsidiaries in Bermuda, Ireland and United States

Highly

experienced

management

and

underwriting

teams

with

proven

track

record

through all market cycles

Over 200 employees worldwide

Diversified business mix balanced between insurance and reinsurance, long

and short tail exposures and geographic spread of risk

Growth through opportunistic expansion and addition of product lines

Strategic initiatives focus on value creation through all product cycles

Portfolio approach to risk through integration of asset / liabilities for all

transactions

Culture focused on risk and capital management

Custom pricing models for each class of business with emphasis on ROE

Total invested assets of $5.1 billion represents a 3.2:1 ratio of invested assets

to capital deployed in a risk averse, enhanced return investment

strategy

$1.6 billion of shareholders’

equity at December 31, 2007

4

Property Insurance

Strategic Diversification & Expansion Of The Company

Traditional

Casualty Reinsurance

Property / Cat Reinsurance

$23.50 / share Common

Offering

Structured & Alternative

Life & Annuity

Insurance

Reinsurance

Specialty

MDS allocation %

-

5%

200

400

600

800

1,000

1,200

1,400

32.2%

31.5%

31.8%

29.1%

23.5%

20.7%

10%

15%

20%

25%

30%

35%

40%

2002

2003

2004

2005

2006

2007

35.0%

Casualty Insurance

Bermuda / Dublin

Property / Cat

Reinsurance

$23.50 / share

Common Offering

U.S. E&S insurance

Max USA $100m

Senior Debt Issue

2004

2005

2006

2007

2003

2002

5

Identifying & Recruiting “Franchise Players”

Has Been

Instrumental In Our Success

Experienced &

highly quantitative

underwriting teams

Lead underwriters average over 20

years in the business

High percentage of employees hold

professional designations

2004

Property

2003

Excess Liability

Professional Liability

2005

Property / Property -

Cat Reinsurance

2006

Aviation

2007

U.S. Excess

& Surplus Property

Ocean Cargo / Inland

Marine

U.S. Casualty

Multi –

peril crop

6

Enterprise Risk Management

Diversified Product Offering

Operating Strategy

Focused on niches / specialties

Opportunities that reward our  specialized knowledge

and relationships

Marketing and distribution efforts that emphasize building

brand awareness

Dedication to customer service

Expand Excess and Surplus lines business in the U.S.

Manage property catastrophe aggregate exposure on a

1:250 year basis not to exceed 25% of beginning year equity

2008 Target –

less than 20%

Target product classes where we can invest resources and

“intellectual capital,”

which leads to long–term franchise value

Strong balance sheet supported by prudent reserving

practices

Maintain financial strength ratings and pursue an upgrade

Reinsurance purchased to manage exposures and pricing

cycles

State-of-the-art systems, risk controls

Capital allocated to maximize return on every transaction

Specialty Lines

Underwriting Operations

7

Seek to achieve high quality, stable and consistent ROEs

Target ROE of 15% over the market cycle

Operating ROE > 15% in 4 of last 5 fiscal years, 2005 positive ROE despite Hurricanes KRW

Compound annual ROE of 14.7% over last 5 years

Lower volatility of ROE

Do well in the good years -

15% to 20% ROE

Have a positive ROE in the bad years

Our most highly respected and valued competitors have high Sharpe ratios

Willing to trade some expected ROE for lower volatility of ROE

Financial Objective –

Grow Book Value / Create

Shareholder Value

Mean ROE vs

Std Dev of ROE

Annual Data 2003 to 2007

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0%

5%

10%

15%

20%

25%

30%

35%

Std Deviation of ROE

ACGL

AXS

ACE

PRE

MXGL

TRH

RE

ENH

RNR

AWH

AHL

PTP*

XL

IPCR*

MRH*

* 2007 ROE is based on annualized 9/30/07 information

8

5 Years Of Growth: Annualized ROE of 14.8%

Book Value Increased 88.5%

* Year of Hurricanes KRW.  Max was one of the few insurance/reinsurance companies among its peers that were profitable in 2005.

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

2003

2004

2005*

2006

2007

2%

6%

10%

14%

18%

22%

26%

30%

19.1%

17.0%

0.9%

16.8%

20.4%

$16.88

$19.70

$20.16

$23.06

$27.54

9

Efficient Capital Management

Dividends

Repurchases   ($ in thousands)

Strong and flexible capital structure

2005: $258 million Equity Offering -

launched Property Cat Reinsurance Operations

2007: Max USA $100 million Senior Debt

Offering -

launched U.S. Excess and Surplus

Lines Insurance Company

Manage exposures to preserve capital

Opportunistic share repurchases

$100 million of Repurchase Authorization

as of Feb. 12, 2008

Increased dividends each year since inception

($ in thousands)

$3,788

$5,487

$8,955

$14,273

$19,164

$3,095

$4,850

$7,360

$17,624

$114,755

$0

$25,000

$50,000

$75,000

$100,000

$125,000

$150,000

2003

2004

2005

2006

2007

Dividends

$ 51,667

Share Repurchases

147,684

Total

$199,351

2003-

2007 Summary

10

(1) Defined as share price appreciation plus reinvested dividends cumulatively over the time period, as of 2/8/2008.

(2) Note: Figures are calculated from the IPO date.

Source: Merrill Lynch

Cumulative Total Shareholder Returns

(1)

(2)

(2)

(2)

1 Year

2 Years

5 Years

75.8%

37.4%

171.4%

150.1%

136.8%

104.5%

89.2%

81.3%

53.7%

47.2%

41.5%

6.4%

(18.9)%

S&P 500

S&P P&C

MXGL

ORH

ACGL

ENH

AXS

PRE

RNR

PTP

AHL

IPCR

MRH

(5.1)%

(4.9)%

(2.9)%

5.0%

5.7%

9.2%

15.5%

15.7%

16.0%

18.2%

18.8%

(23.2)%

(6.3)%

S&P 500

S&P P&C

ENH

MXGL

AXS

PRE

AHL

PTP

RNR

ACGL

MRH

ORH

IPCR

(6.4)%

4.3%

11.2%

16.6%

26.8%

27.8%

31.8%

34.0%

39.5%

40.1%

56.9%

(13.6)%

9.3%

S&P 500

S&P P&C

ORH

AHL

PRE

ENH

ACGL

RNR

AXS

PTP

MXGL

IPCR

MRH

Peer Comparison: Max Has Outperformed The S&P 500,  The S&P

Insurance Sub-Index And Many Of Its Peers Over The Past 5 Years

11

Diversified Premium Mix: A Key Differentiator

Property

Casualty

Insurance

Reinsurance

Incumbent (Re) Insurers

Class of 2001

Class of 2005

Ariel Re

FSR

IPCR

VR

Lancashire

Ironshore

MRH

PTP

AWH

RNR

AHL

ENH

ACGL

AXS

PRE

TRH

RE

WTM

XL

ACE

Harbor

Point

Source: Merrill Lynch

Max Capital Group Ltd.

Bermuda Underwriters:

12

Diversified Revenue Sources / Product Lines

P&C Annual Gross Premiums Written

($ in millions)

Non-recurring additional premiums on prior years’

contracts of $182 million

Total P&C Insurance / Reinsurance excluding Alternative Risk and non-

recurring additional premiums on prior years’

contracts (year-on-year change)

0

100

200

300

400

500

600

700

800

900

1000

2004

2005

2006

2007

2008 Plan

Max Specialty

P&C Insurance

P&C Reinsurance

P&C Alternative

Revenue not dependent on single source

Capital & risk allocated rationally

10% ROE without writing business

$831

$971

$820

$776

$895

(+17%)

(-16%)

(-5%)

(+15%)

13

P&C Insurance: Bermuda / Dublin

Niche –

Oriented Focus

Target:

Working layer excess business

Larger customer -

Fortune 1000

Customer-oriented approach:

Responsive and innovative

Consider toughest classes of

business

Offer multi-year programs

Flexible in program attachment points

Work with all leading brokers

Underwritten in Bermuda and Dublin

Sub-prime related reserves -

approximately $18 million

Combined ratio:

2007:      86%

2006:      71%

Gross

Premiums

Written

–

2007

$383 million

By Exposure

Aviation

8%

Excess

Liability

35%

Professional

Liability

41%

Property

16%

14

P&C Reinsurance: Bermuda / Dublin

Diversification & Flexibility Emphasized

Target:

Working layer excess business /

quota share business

Specialty / niche focus

Customer-oriented approach:

Quick turnaround

Line-specific expertise

Net line underwriter (stability of capacity)

Cross-class capability

Modeling and structuring capabilities

Work with all leading brokers

Underwritten in Bermuda and Dublin

Combined ratio:

2007:        84%

2006:        94%

By Exposure

Gross

Premiums

Written

–

2007

$345 million

Aviation

10%

Excess Liability

5%

Medical

Malpractice

15%

Other

2%

Professional Liability

10%

Property

26%

Marine & Energy

14%

Whole Account

4%

Workers

Compensation

14%

15

Growth Initiative:

Max Specialty Insurance Company

2007 Start-Up:

Nationwide underwriter of excess and surplus

lines niches based in Richmond, VA

Delaware licensed

Approved on a non-admitted basis in

46 other states

Brokerage and Contract Binding operations

commenced April 2007

Select group of national brokers and regional

MGA’s with 20+ years relationships

Current Products

Property-cat & non cat

Umbrella / xs Liability

Inland Marine / Ocean Cargo (New 2008)

Specialty Casualty (New 2008)

90 employees / 6 U.S. locations

Long-term underwriting objectives:

Products priced and underwritten so net

incurred loss ratios approximate 55%

Expense ratio:   approximately 35%

Combined ratio: approximately 85%

Gross

Premiums

Written

-

2007

$48 million

By Exposure

Property

71%

Excess

liability/general

liability

26%

Marine

3%

* As of February 14, 2008

16

Life Reinsurance: Long-Tail, Reserve Buy-Out Business

Specialize in:

Investment spread business

In force, closed / ring-fenced books

Mortality, morbidity & longevity

Predictable cash flows

Asset heavy –

no interest sensitive

liabilities

Strategy:

Leveraging underwriting skills with low

volatility alternative investments

Focus on closed block reserve

buy-out  transactions

Almost no IBNR

Differentiated by:

Detailed data focus

Strong actuarial analysis

Bermuda efficiencies

Gross Premiums Written

Reserves & Deposits 12/31/2007

$1.3 billion

Annuity

70%

Life

16%

Health

14%

Number of Deals Written

0

50

100

150

200

250

300

350

2003

2004

2005

2006

2007

$108

$212

$275

$45

$302

3

3

1

6

US$ Millions

17

Diversified And Strategic Asset Allocation

Average quality of AA / Maximum Baa of 2%

Diversification by sector and issuer

No CDO’s, CLO’s, SIV’s

or other highly

structured securities

Duration and currency matched to liabilities

Portfolio externally managed by investment

managers who compete for assets based on

performance

Diversification by strategy with concentration

limits in any particular fund

Rapid liquidity required

Return

objective

–

300

bps

over

risk

free

rates

with bond like volatility

Rigorous manager selection and monitoring

process

Hedge fund accounting requires quarterly mark

to market to flow through operating income

0%

5%

10%

15%

20%

25%

30%

35%

40%

Distressed

Diversified

Equity

Long / Short

Event Driven

Arbitrage

Global

Macro

Credit

Long / Short

Emerging

Markets

Fixed Income

Arbitrage

Opportunistic

Tsy / Agy

Aaa

Aa

Baa

Investment Portfolio:

Traditional       Alternative

Allocation

79%

21%

Target

80%

20%

Alternative investments part of “capital”

Fixed maturities portfolio supports reserves

18

Investment Strategy: Risk Averse Enhanced Returns

Standard Deviation

60 Months

as of December 31, 2007

Max Fixed Maturities

Merrill Lynch Master Bond Index

MDS

(Max Fund of  Funds)

Max Total Portfolio

S&P 500

MFIX

MLMBI

MDS

SP500

MAX

0

-0.5

-1

-1.5

-2

-2.5

-3

-3.5

-4

-4.5

-5

-5.5

-6

-6.5

-7

-7.5

-8

-8.5

-9

-3.24

-3.65

-4.34

-8.61

-3.05

Annual Return

60 months

as of December 31, 2007

MFIX

MLMBI

MDS

SP500

MAX

12.5

12

11.5

11

10.5

10

9.5

9

8.5

8

7.5

7

6.5

6

5.5

5

4.5

4

3.5

3

2.5

2

1.5

1

0.5

0

3.99

4.49

10.98

12.12

6.40

19

Investments With Exposure To Sub-prime And Alt-A

Significant and growing over-collateralization

Most with 30-50% over-collateralization

Over-collateralization on most is growing, and has increased in the last 3 months

Through December 31 default and delinquency rates are generally in the low single digits to

low teens range

At December 31, 2007, unrealized loss is approximately $4.2 million

Alternative asset portfolio net short sub-prime at December 31, 2007

Based upon stress testing, we expect no principal losses from sub-prime-backed bonds

Assets with Sub prime content

Weighted

AA

Amortized

Market Value

Average Life

Senior

Junior

Cost

Subprime Exposure

Pre-2005

3.5

7.8

$                  

0.5

$                          

2.6

$                    

10.9

$                  

10.6

$                     

2005

2.4

3.3

$                  

-

$                         

3.4

$                    

6.7

$                    

6.4

$                       

2006

3.0

32.9

$                

5.0

$                          

-

$                    

37.9

$                  

34.9

$                     

2007

3.3

2.5

$                  

-

$                         

-

$                    

2.5

$                    

2.3

$                       

Total Subprime Exposure

3.0

46.5

$                

5.5

$                          

6.0

$                    

58.0

$                  

54.2

$                     

Alt-A Exposure

Pre-2005

4.2

7.1

$                  

-

$                         

-

$                    

7.1

$                    

7.0

$                       

2005

1.7

-

$                  

20.6

$                       

-

$                    

20.6

$                  

20.5

$                     

2006

1.4

6.9

$                  

10.0

$                       

-

$                    

16.9

$                  

16.8

$                     

2007

3.0

4.5

$                  

-

$                         

-

$                    

4.5

$                    

4.4

$                       

Total Alt-A Exposure

2.1

18.5

$                

30.6

$                       

-

$                    

49.1

$                  

48.7

$                     

SUBPRIME + ALT- A Exposure

2.6

65.0

$                

36.1

$                       

6.0

$                    

107.1

$                

102.9

$                   

Outstanding Exposure by Vintage

AAA

($ millions)

20

Profitable Financial Trends Despite Hurricanes in 2005

Gross Premiums Written

($ in millions)

P&C Combined Ratio

Operating Earnings Per Share (Diluted)

Operating ROE

$1,010

$1,044

$1,246

$865

$1,078

0

$300

$600

$900

$1,200

$1,500

2003

2004

2005

2006

2007

Life $108

Life $212

Life $275

Life $45

Life $302

88%

86%

106%

94%

100%

0%

20%

40%

60%

80%

100%

120%

2003

2004

2005

2006

2007

$2.58

$2.70

$3.52

$4.81

$-

$1.00

$2.00

$3.00

$4.00

$5.00

2003

2004

2005

2006

2007

$0.19

2003

2004

2005

2006

2007

16.5%

15.8%

17.3%

20.7%

0%

5%

10%

15%

20%

25%

1.0%

21

A Growing, Global Insurance / Reinsurance Company

Invested

Assets

(Ratio

to

Shareholders’

Equity)

Operating Cash Flow

Shareholders’

Equity (Book Value per Share)

Dividends Per Share

($ in millions)

$2,637

(3.5:1)

$3,515

(3.9:1

$4,223

(3.6:1)

$4,536

(3.3:1)

$5,123

(3.2:1)

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

2003

2004

2005

2006

2007

$397

$607

$395

$529

$443

$0

$100

$200

$300

$400

$500

$600

$700

2003

2004

2005

2006

2007

$763

($16.88)

$903

($19.70)

$1,186

($20.16)

$1,390

($23.06)

$1,584

($27.54)

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

2003

2004

2005

2006

2007

$0.09

$0.12

$0.18

$0.24

$0.32

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

$0.35

2003

2004

2005

2006

2007

22

Gross Premiums Written -

$1,045 billion

2008 Est.

2007 Actual

Property & Casualty Insurance

$390 million

$383 million

Property & Casualty Reinsurance

$350 million

$345 million

Max Specialty

$155 million

$  48 million

Life & Annuity Reinsurance

$150 million

$302 million

Combined Ratio

Property & Casualty Insurance

88%

86%

Property & Casualty Reinsurance

92%

84%

Max Specialty

120% (57% loss ratio)

530% (82% loss ratio)

Operating Earnings Per Share (diluted)

$3.90

-

$4.20               

Alternative investments return

8%

16.97%

Key Assumptions

2008 Guidance

No reserve releases/commutations

Continued capital management –

share repurchases

No acquisitions

Normal catastrophes (P&C combined ratio

includes approx. 4%-6% for normally

expected catastrophes)

$4.81

Additional Financial Information

24

Gross Premiums Written

$1,078

$865

Net Premiums Earned

$818

$665

Net Investment Income

188

150

Net Gains on Alternative Investments

187

85

Net Realized Gains (Losses) on Sale of Fixed Maturities

(4)

(6)

Other Income

1

1

Total Revenues

1,190

895

Total Losses, Expenses & Taxes

887

678

Net Income

$303

$217

Property & Casualty Underwriting

Loss Ratio

64%

68%

Expense Ratio

24%

18%

Combined Ratio

88%

86%

Year -

End Results

2006

($ in millions)

2007

25

Cash & Fixed Maturities

$4,061

$3,470

Alternative Investments

1,062

1,066

Premium Receivables

433

391

Losses Recoverable

578

538

Other Assets

403

384

     Total Assets

$6,537

$5,849

Property & Casualty Losses

$2,334

$2,335

Life & Annuity Benefits

1,204

896

Deposit Liabilities

221

204

Funds Withheld

169

255

Unearned Premium

440

436

Bank Loan

330

210

Senior Notes

100

-

Other Liabilities

155

123

     Total Liabilites

$4,953

$4,459

Shareholders' Equity

$1,584

$1,390

$6,537

$5,849

Strong Balance Sheet

December 31, 2006

December 31, 2007

($ in millions)

26

Supplemental Investment Data –

December 31, 2007

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

Fair Value

Investment

Last

Year

Last

(in 000's)

Distribution

3 Months

to Date

60 months*

Cash and Fixed Maturities

4,060,883

$          

79.3%

1.86%

5.11%

3.99%

Commodity Trading Advisers

-

$                      

0.0%

0.00%

6.63%

7.31%

Distressed Securities

168,050

3.3%

5.28%

15.74%

21.52%

Diversified Arbitrage

161,870

3.2%

-3.47%

15.87%

8.12%

Emerging Markets

98,882

1.9%

3.33%

18.53%

18.36%

Event-Driven Arbitrage

170,563

3.3%

8.14%

36.14%

18.32%

Fixed Income Arbitrage

32,265

0.6%

8.78%

25.04%

8.71%

Global Macro

69,092

1.3%

6.48%

13.67%

9.89%

Long / Short Credit

51,512

1.0%

1.19%

3.41%

10.32%

Long / Short Equity

269,959

5.3%

8.94%

26.94%

11.75%

Opportunistic

35,600

0.7%

2.73%

20.38%

19.37%

MDS ***

1,057,793

20.6%

4.11%

16.78%

10.98%

Reinsurance Private Equity

3,941

0.1%

68.23%

97.33%

8.81%

Alternative Investments

1,061,734

$          

20.7%

4.27%

16.97%

10.28%

Total Investments

5,122,617

$          

100.0%

2.45%

10.38%

6.40%

Alternative Investment Return Data **:

MDS Performance History *** –

60 months ended December 31, 2007

Largest monthly gain

4.15%

Largest monthly loss

(2.04%)

Largest quarterly gain

6.07%

Largest quarterly loss

(2.72%)

Average monthly gain

1.40%

Average monthly loss

(0.83%)

Average quarterly gain

3.56%

Average quarterly loss

(0.89%)

Months with a gain

46

Months with a loss

14

Quarters with a gain

16

Quarters with a loss

4

% of months with a gain

77%

Quarterly standard deviation

2.47%

% of quarters with a gain

80%

Annual standard deviation

4.35%

Largest drawdown ****

(5.04%)

Monthly performance

2003

2004

2005

2006

2007

January

1.63%

1.75%

0.16%

2.75%

1.28%

February

1.40%

1.28%

1.69%

0.39%

1.50%

March

(0.18%)

1.18%

(0.61%)

1.22%

1.90%

April

2.03%

0.03%

(0.65%)

1.89%

2.30%

May

3.02%

(0.87%)

(0.68%)

(1.74%)

2.59%

June

0.92%

0.70%

1.20%

(0.66%)

0.85%

July

(0.24%)

0.03%

1.33%

(0.71%)

0.99%

August

0.96%

(0.02%)

0.98%

0.02%

(1.62%)

September

2.63%

0.04%

1.84%

(2.04%)

1.85%

October

0.98%

1.04%

(1.45%)

1.37%

4.15%

November

0.56%

2.54%

0.61%

1.81%

0.10%

December

1.85%

1.74%

1.37%

1.96%

(0.13%)

Quarterly performance

Q1

2.88%

4.27%

1.22%

4.41%

4.75%

Q2

6.07%

(0.15%)

(0.14%)

(0.54%)

5.83%

Q3

3.37%

0.06%

4.21%

(2.72%)

1.18%

Q4

3.43%

5.41%

0.51%

5.22%

4.11%

Annual return

16.67%

9.81%

5.88%

6.30%

16.78%

*  Annualized

**The

percentages

shown

under

the

alternative

investment

return

data

relate

only

to

the

performance

of

our

alternative

investments

held

by

MDS.

*** Net of all fees

**** Largest drawdown represents the largest decline in value between two NAV peak values.

Periodic Rate of Return

I N S U R A N C E   /   R E I N S U R A N C E

B E R M U D A         I R E L A N D         U N I T E D   S T A T E S

MAX CAPITAL GROUP LTD.

Nasdaq: MXGL

Investor Presentation

as of / year ended December 31, 2007