Alterra Capital 8-K Regulation FD Disclosure

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         LLOYD’S

A World Class Specialty

Insurer and Reinsurer

Investor Presentation

Third Quarter 2009

Exhibit 99.1

2

INFORMATION CONCERNING

FORWARD LOOKING STATEMENTS

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

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

update

or

revise

publicly

any

forward-looking

statement

whether

as

a

result

of

new

information,

future

developments

or otherwise.

3

Global underwriter of specialty insurance and reinsurance

Multiple

operating

platforms

-

Bermuda,

Dublin,

United

States,

and

Lloyd’s

Diversified business profile across specialty classes of business

Highly experienced management with proven track record 

Opportunistic and disciplined underwriting strategy

Analytical and quantitative underwriting orientation

5 year average combined ratio, with cats, of 93%

Generates more stable underwriting results and ROE

Strong, liquid balance sheet with conservative reserving track record

Shareholders

equity

-

$1.55

billion

at

9/30/09

Prudent capital management -

$315 million in dividends/repurchases over last 5 years

Significant expansion of underwriting platforms with minimal goodwill

Gross premiums written (YTD 2009) of ~ $1.1 billion and 9/30/09 equity of $1.55 billion

High quality investment portfolio repositioned to reflect traditional underwriting base

Hedge funds are now a much smaller part of Max’s asset base at 7.2% and are to be reduced to 5%

to 7% by year end 2009

Max Capital –

Core Operations

Short-Tail

Long-Tail

62%

38%

Insurance

Reinsurance

53%

47%

4

$1,054.9

$787.9

Q3'08 YTD

Q3'09 YTD

Strong YTD Results

Reflects continued build-out of our global platform

Max Specialty -

$219 million GPW

Reflects first year of Max at Lloyd’s -

$110 million GPW

Combined ratio reflects higher casualty mix

Market conditions are improving / stabilizing

Rate increases on short-tail lines

Casualty rates have stabilized

Strong YTD results despite high cash balances

Once invested ROE will increase by 1% to 2% ROE points

Return on invested portfolio is ~ 4.82%

Hedge funds reduced to 7.2% of invested assets as of

9/30/09

Down from 14.1% at 12/31/08

Diluted book value per share increased 12.8% YTD

2009 to $26.54

Profitable Growth in Gross Premiums Written…

…With Strong Operating EPS

P&C GPW

(34% increase)

Operating

EPS

ROE (annualized)

(5.4%)

14.1%

Combined ratio

89.1%

90.5%

____________________

(1)

Excludes $0.54 per share in merger and acquisition expenses.

($1.03)

$2.58

Q3'08 YTD

Q3'09 YTD

(1)

5

Opportunistic Expansion Across our Business

Opportunistic approach to growing our business

Underserved market niches which allow for technical underwriting

orientation

Disciplined approach in building teams

Identify sound underwriters with multiple years of experience

Create sophisticated pricing models and utilize strong risk management platform

Size business based on market conditions

Selected recent/future expansion examples

International casualty reinsurance team at Max at Lloyd’s

Personal accident and financial institution team at Max at Lloyd’s

Professional liability team at Max Specialty

U.S. Insurance platform has full ability to write admitted and E&S business

The addition of California gives Max a 50 state franchise for admitted Marine products on

both inland and ocean

Recently approved in Puerto Rico, Max Specialty can now write non-admitted E&S

business throughout the U.S. and Puerto Rico

6

2004

Insurance

Property

2003

Insurance

Excess Liability

Professional Liability

2005

Reinsurance

Property / Property Cat

2006

Insurance

Aviation

2008

Lloyd’s Reinsurance

Accident / Health

Property

Lloyd’s Insurance

Financial Institutions

Prof. Indemnity

2007

U.S. E&S Insurance

Property

Inland Marine

U.S. Casualty

Reinsurance

Multi Peril Crop

Experienced &

highly quantitative

underwriting teams

Lead underwriters average over 20

years in the business

High percentage of employees hold

professional designations

2009

Lloyd’s Reinsurance

Casualty (non U.S.)

Accident / Health

U.S. Specialty

Professional Liability

2002

Traditional Re

Workers’

Comp

Medical Malpractice

GL / PL

Aviation

Identifying & Recruiting “Franchise Players”

Has Been

Instrumental In Our Success

7

Bermuda / Dublin

Reinsurance

Bermuda / Dublin  

Insurance

Lloyd’s

U.S Specialty Insurance

Major

Classes

Agriculture

Aviation

Excess liability

Medical malpractice

Professional liability

Property 

Marine and energy

Whole account

Workers’ comp

Life and annuity

Aviation

Excess liability

Professional liability

Property 

Personal accident

Financial institutions

Professional liability

Property 

International casualty

treaty reinsurance

General liability

Marine

Property

Miscellaneous

professional liability

Operating

Regions

United States

Latin America

Canada

European Union

Japan

Australia

New Zealand

United States

European Union

United Kingdom

Japan

Denmark

United States

Offices

Bermuda

Dublin

Bermuda

Dublin

Hamburg

London

Leeds

Tokyo

Copenhagen

New York

Philadelphia

Richmond

Atlanta

Dallas

San Francisco

Global Reach Through Established Platforms

8

140%

33%

50%

56%

49%

66%

252%

60%

73%

92%

79%

110%

0%

25%

50%

75%

100%

125%

150%

300%

2005

2006

2007

2008

1H'09

Average

82%

79%

84%

75%

77%

96%

104%

97%

101%

96%

96%

124%

0%

25%

50%

75%

100%

125%

150%

300%

Average

2005

2006

2007

2008

1H'09

Median

201%

55%

61%

89%

68%

95%

Median

115%

85%

84%

95%

88%

93%

Max

106%

86%

88%

92%

90%

93%

____________________

Source:  Company filings.

Diversified reinsurers include RE, AXS, ACGL, TRH, PRE, ORH, AWH, ENH, AHL, PTP, AGII and MXGL. Property focused reinsurers include RNR, IPC, VR, MRH and FSR.

Diversified Reinsurers

Property Focused Reinsurers

Max has performed well within its diversified peer group with less volatility than

property focused reinsurers

Diversified Platforms Generate More Consistent Margins

9

____________________

Source: Company filings, as of 12/31/08.  Losses are generally disclosed net of reinstatement premiums.

(1)

Results reflect Ike only.

(2)

Equity includes preferred, which subsequently converted to common.

(3) TRH

does

not

disclose

specific

losses

but

did

lose

“$169.7

million

principally

relating

to

Hurricane

Ike”

or

5.0%

of

6/30/08

common

equity.

Max had the lowest losses from Ike/Gustav as a % of equity

Ike/Gustav Ultimate Net Losses as a % of 6/30/08 Common Equity ($ in millions)

(% of capital)

1:100 yr

1:250 yr

Target

8%-12%

15% - 20%

6/30/09E

11%

20%

PMLs

3.4%

4.6%

4.8%

5.0%

6.0%

6.3%

6.7%

7.0%

7.8%

8.1%

8.1%

8.4%

8.9%

10.1%

11.0%

12.4%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Initial Estimate

Revised Estimate

VR

FSR

RNR

MRH

PTP

ACGL

AXS

PRE

AHL

IPCR

ENH

ORH

TRH

AWH

RE

MXGL

(1)

(2)

(2)

Losses

$256

$140

$276

$140

$165

$287

$384

$305

$171

$135

$148

$155

$113

$257

$50

(3)

$170

Max is less exposed to swings in the cat market than peers

10

High quality, defensively postured portfolio

Low OTTI during volatile periods in 2008-09

73% of fixed income portfolio rated Aa or better;

diversification by sector and issuer

Less than 7% rated Baa or below

70% of the cash and fixed maturities portfolio is held in cash,

government / agency-backed securities, or AAA securities

No CDO’s, CLO’s, SIV’s

or other highly structured securities

Hedge funds reduced from 21% at 12/31/07 with a 5-7% target

Larger than normal cash position provides incremental

investment income as cash is redeployed

Cash balance of $1.0 billion or 19% of portfolio

Hedge funds

7.2%

Cash

19.5%

Fixed income

73.3%

Target Allocation

Cash

5%

Hedge funds

5%-7%

Fixed income

87%-90%

As of September 30, 2009

Max Investment Portfolio Highlights

11

Favorable Earnings Growth Prospects

Investments / Equity

Max Full Year P&C GPW

____________________

(1)

Source:  Company filings. Includes ACGL, AGII, AHL, AWH, AXS, ENH, FSR, IPCR, MRH, ORH, PRE, PTP, RE, RNR, TRH and VR.

2.2x

3.8x

Max

Peers (1)

2008

2009E

$1,012

$1,275

26% Growth

Selected growth in premiums

Opportunistic expansion in specialty areas

Full year impact of Lloyd’s platform

Generate combined ratios of 90% +/-

Diversified portfolio will result in less volatility

Max Specialty & Lloyds are growing into their expense base

Expense ratio expected to normalize into 2010

Strong invested asset leverage

Invested assets of $5.4 billion are 3.5x equity

Reduced impact from hedge funds as our exposure is reduced

Redeploy significant cash balances over time

Approximately $1.1 billion in cash and equivalents at Sept 30, 2009

Prudent and cautious approach to capital management

1H 2009

12

____________________

Source:

Company filings.

(1)

Based on full year 2008 property and casualty gross premiums written.  Certain allocations have been estimated.

(2)

Market data as of 8/31/09.

(3)

Max premium growth and combined ratios exclude Life segment.

June 30, 2009 YTD

2008

2008

2008 GPW Distribution

(1)

GPW %

Combined

Combined

Price /

GPW

Reinsurance

Insurance

Property

Casualty

Change

Ratio

Ratio

Tang. BV

(2)

Diversified

Transatlantic

$4,423.2

100%

0%

30%

70%

0.2%

94.3%

98.5%

0.91x

PartnerRe

4,028.2

100%

0%

61%

39%

(9.2%)

85.3%

94.1%

1.10x

Everest Re

3,678.1

79%

21%

59%

41%

10.6%

88.8%

95.6%

0.93x

Arch Capital

3,669.1

41%

59%

37%

63%

(0.2%)

87.0%

95.0%

1.07x

AXIS

3,390.4

46%

54%

54%

46%

4.7%

83.4%

89.8%

0.97x

OdysseyRe

2,294.5

65%

35%

45%

55%

(6.8%)

96.5%

101.2%

0.99x

Endurance

2,246.4

37%

63%

65%

35%

(3.2%)

90.8%

93.5%

1.01x

Aspen

2,001.7

50%

50%

58%

42%

4.1%

86.0%

95.6%

0.81x

Argo Group

1,601.5

8%

92%

30%

70%

43.5%

96.0%

100.5%

0.90x

Allied World

1,445.6

30%

70%

34%

66%

15.3%

79.3%

84.2%

0.95x

Platinum Re

1,066.6

100%

0%

58%

42%

(13.2%)

78.5%

91.9%

0.92x

Mean

60%

40%

48%

52%

4.2%

87.8%

94.5%

0.96x

Max Capital

(3)

$1,254.3

42%

58%

48%

52%

35.7%

90.3%

91.9%

0.88x

Property Focused

RenaissanceRe

$1,736.0

66%

34%

87%

13%

8.9%

49.4%

79.0%

1.27x

Validus

1,362.5

57%

43%

94%

6%

72.2%

73.5%

92.2%

0.97x

FlagstoneRe

781.9

90%

10%

90%

10%

34.4%

74.3%

89.4%

0.89x

Montpelier Re

614.5

99%

1%

91%

9%

(2.1%)

67.6%

91.0%

0.87x

IPC Holdings

403.4

100%

0%

100%

0%

19.5%

49.2%

56.4%

0.90x

Mean

82%

18%

92%

8%

26.6%

62.8%

81.6%

0.98x

Max’s Diversification and Growth are Attractive

13

Max Has a Strong Market Position in Specialty Classes …

Working layer excess business

Focus on Fortune 1000 customers

2008 combined ratio = 88%

2008 GPW -

$389 million

2008 GPW -

$420 million

Bermuda / Dublin Insurance

Bermuda / Dublin Reinsurance

Working layer excess / quota share

business

Cross class capability

2008 combined ratio = 87%

Excess

Liability

Professional

Liability

Aviation

Property

14%

14%

41%

32%

Other

General

Liability

Marine &

Energy

Whole

Account

Aviation

Prof.

Liabliity

Workers

Comp

Med. Mal.

Agriculture

Property

25%

19%

18%

13%

9%

8%

3%

3%

14

…

With an Attractive Position in the U.S. Market and Lloyd’s

Launched in 2007

Nationwide niche E&S underwriter

Growing into expense base –

target combined

ratio of 85% to 90%

Expected GPW of $275 million in 2009

2008 GPW -

$194 million

2008 GPW -

£65 million

(1)

U.S. Insurance

Max at Lloyd’s

Acquired in November 2008

Direct and reinsurance

Expected GPW of $150 million in 2009

____________________

(1)

GPW

reflects

full

year

of

business,

which

includes

periods

prior

to

the

acquisition

by

Max.

Marine

General

Casualty

Property

20%

31%

49%

Accident &

Health

Fin.

Institutions

Prof.

Indemnity /

Med. Mal.

Employers'

Public Liability

Property

Treaty

45%

1%

19%

18%

17%

15

Overview of Life Reinsurance

Spread management business, comparable to basic full Loss Portfolio Transfer

Purchase blocks of existing policy or claim reserves (reserve buy outs)

All originated transactions –

winner takes all

Known data files –

no unreported exposures, minimal IBNR

Access to historic experience data

Only products with highly predictable and non-volatile cash flows

Full asset transfer –

the economic value of the liabilities

It is NOT …

Risk premium reinsurance (mainstream life reinsurance)

Automatic reinsurance of new business (treaty business)

Mega-sized transactions

Variable or deferred annuities, XXX, term insurance, life settlements, COLI/BOLI

U.S. Specialty

15%

Max at Lloyd's

(1)

1%

Bermuda/Dublin

Insurance

31%

Life & Annuity

Reinsurance

19%

Bermuda/Dublin

Reinsurance

34%

____________________

(1)

Max at Lloyd’s acquired in November 2008 and includes partial year GPW.

2008 GPW

16

Max Bermuda and Dublin (Insurance/Reinsurance)  

Rates favorable in short-tail property cat and energy

Long-tail lines have stabilized and stopped declining

Max at Lloyd’s

Provides access to global specialty business, high credit ratings,

worldwide licenses

Experienced team underwriting a seasoned book of business

Building out the platform recruiting new teams with recent additions

International casualty reinsurance

Marine and personal accident insurance

Max Specialty

Strong distribution relationships continue to generate a high flow of business

Market

dislocations

provide

the

opportunity

to

add

teams

and

new

products

Benefiting from improving property rates

Profitability

improving

as

the

business

matures

into

its

expense

base

Life Reinsurance

Only writes “closed”

blocks of business with no variable annuity exposure

Provides capital relief which will be in high demand as many life insurers are capital constrained

Max is Strongly Positioned For Profitable Growth

2009E GPW

Life

Reinsurance

Max

Specialty

Max

at Lloyd's

Bermuda / Dublin

Insurance /

Reinsurance

63%

11%

20%

6%

17

Well established operating platforms provide full access to business

Diversified portfolio of business across casualty and property

lines

Specialty orientation with a balance of insurance vs. reinsurance

Opportunistic approach –

nimble and responsive to market trends

Defensive, high quality investment portfolio

Invested asset leverage will drive more consistent returns

Balance sheet strength with low leverage / financial flexibility

Max Offers a Compelling Story

We believe we can generate an average ROE of 13% to 16% across the cycle

Attractive entry point –

current price / book value of 0.79x

____________________

Note:

Price / book multiple as of 11/3/09.

18

APPENDIX

19

($ in millions)

Strong Balance Sheet

September 30,

December 31,

2009

2008

Cash & Fixed Maturities

$5,029

$4,603

Other Investments

390

754

Premium Receivables

546

555

Losses Recoverable

986

847

Other Assets

478

493

     Total Assets

$7,429

$7,252

Property & Casualty Losses

$3,159

$2,938

Life & Annuity Benefits

1,416

1,367

Deposit Liabilities

153

219

Funds Withheld

142

164

Unearned Premium

676

574

Bank Loan

-

375

Senior Notes

91

91

Other Liabilities

245

244

     Total Liabilites

$5,882

$5,972

Shareholders' Equity

1,547

1,280

$7,429

$7,252

20

($ in millions)

Nine-Month Results Comparison

2009

2008

Gross Premiums Written

$1,097

$882

Net Premiums Earned

627

512

Net Investment Income

125

137

Net Gains on Other Investments

63

(145)

Net Realized Losses on  Fixed Maturities

-

(18)

Other Income

3

1

Total Revenues

818

487

Total Losses, Expenses & Taxes

634

568

Net Income

$184

($81)

Property & Casualty Underwriting

Loss Ratio

65%

67%

Expense Ratio

26%

22%

Combined Ratio

91%

89%

Nine months ended September 30,

21

Nine months ended September 30, 2009

($ in millions)

Diversified Operating Platform 

Life &

Property & Casualty

Annuity

Corporate

Consolidated

Bermuda / Dublin

Max at

Insurance

Reinsurance

U.S. Specialty

Lloyd's

Total

Reinsurance

Gross premiums written

$302.7

$422.3

$219.3

$110.6

$1,054.9

$41.7

$0.0

$1,096.6

Reinsurance premiums ceded

(146.1)

(80.6)

(118.6)

(31.9)

(377.2)

(0.1)

0.0

(377.3)

Net premiums written

$156.6

$341.7

$100.7

$78.7

$677.7

$41.6

$0.0

$719.3

Earned premiums

307.7

365.0

185.6

93.8

952.1

41.7

0.0

993.8

Earned premiums ceded

(157.7)

(74.7)

(111.7)

(22.5)

(366.6)

(0.1)

0.0

(366.7)

Net premiums earned

$150.0

$290.3

$73.9

$71.3

$585.5

$41.6

$0.0

$627.1

Net investment income

$16.9

$29.6

$4.5

$3.2

$54.2

$37.6

$33.2

$125.0

Net gains on other investments

3.5

8.5

0.0

0.0

12.0

29.1

21.6

62.7

Net realized gains (losses) on fixed maturiti

0.0

0.0

0.2

2.6

2.8

0.0

(1.0)

1.8

Net impairment losses recognized in earnin

0.0

0.0

0.0

0.0

0.0

0.0

(2.1)

(2.1)

Other income

1.2

0.0

0.3

0.5

2.0

0.0

1.1

3.1

Total revenues

$171.6

$328.4

$78.9

$77.6

$656.5

$108.3

$52.8

$817.6

Net losses and loss expenses

$106.0

$192.8

$46.5

$33.4

$378.7

$0.0

$0.0

$378.7

Claims and policy benefits

0.0

0.0

0.0

0.0

0.0

84.1

0.0

84.1

Acquisition costs

(1.5)

53.5

5.9

14.8

72.7

1.0

0.0

73.7

Interest expense

0.0

2.4

0.0

0.0

2.4

2.8

9.5

14.7

Net foreign exchange losses

0.0

0.0

0.0

(5.1)

(5.1)

0.0

(1.4)

(6.5)

Merger and acquisition expenses

0.0

0.0

0.0

0.0

0.0

0.0

(31.3)

(31.3)

General and administrative expenses

17.8

23.6

21.2

15.9

78.5

2.2

34.9

115.6

Total losses and expenses

122.3

272.3

73.6

59.0

527.2

90.1

11.7

629.0

Income before taxes

$49.3

$56.1

$5.3

$18.6

$129.3

$18.2

$41.1

$188.6

Loss ratio

70.7%

66.4%

62.9%

46.9%

64.7%

Acquisition cost ratio

-1.0%

18.4%

8.0%

20.8%

12.4%

General and administrative expense ratio

11.9%

8.2%

28.6%

22.2%

13.4%

Combined ratio

(1)

81.6%

93.0%

99.5%

89.9%

90.5%

____________________

(1) Property and Casualty only.

22

($2.59)

$4.81

$3.52

$0.19

$2.70

($4.00)

($2.00)

$0.00

$2.00

$4.00

$6.00

2004

2005

2006

2007

2008

92%

88%

86%

106%

94%

0%

20%

40%

60%

80%

100%

120%

2004

2005

2006

2007

2008

(10.2%)

20.7%

17.3%

1.0%

15.8%

(20.0%)

(10.0%)

0.0%

10.0%

20.0%

30.0%

2004

2005

2006

2007

2008

Profitable Underwriting Trends

Gross Premiums Written ($ in millions)

P&C Combined Ratio

Operating EPS

Operating ROE

$212

$275

$45

$302

$242

$0

$300

$600

$900

$1,200

$1,500

Life

P&C

2004

2005

2006

2007

2008

$1,044

$1,246

$865

$1,078

$1,254

23

$1,280

$1,584

$1,390

$1,186

$903

$20.16

$19.70

$23.06

$22.77

$27.54

$0

$300

$600

$900

$1,200

$1,500

$1,800

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

Shareholders' Equity

Book Value per Share

2004

2005

2006

2007

2008

$5,357

$5,123

$4,536

$4,223

$3,515

3.9x

3.6x

3.3x

3.9x

3.2x

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

Invested Assets

Leverage

2004

2005

2006

2007

2008

$508

$252

$273

$447

$799

$0

$200

$400

$600

$800

$1,000

2004

2005

2006

2007

2008

$0.36

$0.32

$0.24

$0.18

$0.12

$0.00

$0.10

$0.20

$0.30

$0.40

2004

2005

2006

2007

2008

Investment

Leverage

Shareholders' Equity

Book Value per Share

A Growing, Global Insurance / Reinsurance Company

Invested Assets ($ in millions)

Shareholders Equity and BVPS ($ in millions)

Operating Cash Flow ($ in millions)

Dividends

24

Reinsurance / Bermuda –

Investment Portfolio Peer Review

____________________

Source:

Company filings.

(1)

Includes cash and short-term investments.

As of June 30, 2009

% of Total Cash & Investments

Equity / Other

Cash & Cash

Fixed Income

Equity / Other

Total Cash &

Investment

as a % of

Equivalents

(1)

Securities

Securities

Investments

Leverage

Equity

Everest Re

11.1%

83.4%

5.5%

$14,207.3

2.6x

14.0%

Arch Capital

9.1%

81.4%

9.5%

10,983.6

2.7x

25.9%

AXIS

14.0%

80.3%

5.8%

11,055.3

2.3x

13.0%

PartnerRe

5.6%

89.1%

5.2%

12,070.2

2.5x

13.3%

Transatlantic

5.9%

87.4%

6.7%

11,298.5

3.2x

21.4%

RenaissanceRe

20.1%

66.2%

13.6%

6,385.9

1.9x

25.6%

OdysseyRe

17.5%

55.0%

27.5%

8,090.1

2.6x

70.8%

Aspen

17.2%

82.4%

0.4%

6,002.6

2.0x

0.8%

Endurance

23.4%

70.8%

5.8%

5,733.8

2.3x

13.5%

Validus

20.2%

79.8%

0.0%

3,530.6

1.6x

0.0%

Allied World

7.4%

90.7%

1.8%

7,187.6

2.6x

4.8%

Platinum Re

8.0%

92.0%

0.1%

4,399.3

2.3x

0.2%

IPC Holdings

11.8%

73.9%

14.3%

2,308.5

1.1x

16.4%

Montpelier Re

10.0%

80.3%

9.7%

2,597.6

1.6x

15.8%

FlagstoneRe

37.7%

59.1%

3.1%

1,822.0

1.4x

4.4%

Argo Group

16.8%

75.3%

7.9%

4,103.8

2.8x

22.1%

Mean

14.7%

78.0%

7.3%

2.2x

16.4%

Max Capital

19.7%

71.8%

8.5%

$5,124.0

3.8x

32.0%