Alterra Capital 8-K Max Capital Group LTD. Reports Fourth-quarter and Year-end 2009

Exhibit 99.1

MAX CAPITAL GROUP LTD. REPORTS FOURTH-QUARTER AND YEAR-END 2009

RESULTS

Book Value per Diluted Share increased by 21.8% to $27.36 in 2009

Net Operating Income of $3.62 per Diluted Share in 2009

HAMILTON, BERMUDA, February 9, 2010—Max Capital Group Ltd. (NASDAQ: MXGL; BSX: MXGL BH) today reported net income of $62.6 million, or $1.08 per diluted share for the quarter ended December 31, 2009, compared to a net loss of $94.1 million, or $1.67 per diluted share for the quarter ended December 31, 2008.

Net operating income for the 2009 fourth quarter was $60.5 million, or $1.04 per diluted share, compared to a net operating loss of $85.5 million, or $1.52 per diluted share last year. Annualized net operating return on average shareholders’ equity for the 2009 fourth quarter was 15.5%.

For the full year 2009, the Company reported net income of $246.2 million, or $4.26 per diluted share, compared to a net loss of $175.3 million, or $3.10 per diluted share last year. Net operating income for 2009 was $208.9 million, or $3.62 per diluted share, compared to a net operating loss of $143.8 million, or $2.54 per diluted share last year. Net operating return on average shareholders’ equity for 2009 was 14.7%.

W. Marston (Marty) Becker, Chairman and Chief Executive Officer of Max Capital Group Ltd., said: “Max’s financial results for 2009 reflect another very successful year both operationally and financially, producing a significant increase in book value for our shareholders. We have continued to emphasize diversification and the maintenance of a good balance between specialty insurance and reinsurance, and short- and long-tail business, finely tuning proportions based on prevailing market conditions. In 2009, as our long-tail lines experienced more competition and softer market conditions, across the Group we achieved more robust growth in short-tail lines. We believe our balanced underwriting portfolio helps drive consistency in underwriting results throughout the cycle. Our investment portfolio rebounded significantly from 2008, generating a total return of 6.7%.

“While our core Bermuda/Dublin insurance and reinsurance segments generated over 68% of our property and casualty gross premiums written in 2009, we successfully expanded our other underwriting operations. Max Specialty continued to develop on target, and Max at Lloyd’s had a very successful first full year as a member of Max, contributing meaningfully to group profitability with a combined ratio of 86.3% . In late 2009, we announced the establishment of a Latin American reinsurance operation and the appointment of experienced, leading underwriters for that market. We believe this dedicated local presence will enable us to develop Latin America into a strong source of attractive business for Max.

“Looking forward, we will remain strongly focused on executing a business model designed to produce a 15% return on equity across the cycle; however, in this softer portion of the cycle, we are anticipating an ROE of approximately 13% in 2010, with some incremental benefit from share repurchases,” Becker added.

Fourth quarter 2009 highlights include:

• Property and casualty gross premiums written increased by $52.2 million (or 23.3%) to $276.3 million, net premiums written increased $63.3 million (or 57.4%) to $173.5 million and net premiums earned increased $51.7 million (or 33.6%) to $205.5 million compared to 2008;

• Property and casualty combined ratio improved 18.4 percentage points to 81.2% compared to 2008;

• Net favorable development on prior year loss reserves of $30.9 million, or 15.0 points on the combined ratio;

• Net gains on other investments of $13.8 million compared to a net loss of $88.0 million in 2008;

• Net operating income of $60.5 million or $1.04 per diluted share, representing an annualized net operating return on average shareholders’ equity of 15.5%; and

• Book value per diluted share increased by 3.1% during the quarter to $27.36 at December 31, 2009.

Gross premiums written from property and casualty underwriting for the quarter ended December 31, 2009 were $276.3 million, generated by segments as follows: Bermuda/Dublin insurance $125.0 million; Bermuda/Dublin reinsurance $66.7 million; U.S. specialty $66.2 million; and Max at Lloyd’s $18.3 million.

Segment combined ratios were 59.7% for Bermuda/Dublin insurance, 89.6% for Bermuda/Dublin reinsurance, 99.3% for U.S. specialty and 75.4% for Max at Lloyd’s for the fourth quarter of 2009.

Gross premiums written increased by $12.0 million (or 10.6%) for Bermuda/Dublin insurance, $24.7 million (or 58.8%) for Bermuda/Dublin reinsurance and $6.0 million (or 10.0%) for U.S. specialty compared with the quarter ended December 31, 2008. There were no new contracts written within the life and annuity segment during the fourth quarter of 2009.

Full year 2009 highlights include:

• Property and casualty gross premiums written increased $319.2 million (or 31.5%) to $1,331.2 million, net premiums written increased $252.6 million (or 42.2%) to $851.2 million and net premiums earned increased $219.2 million (or 38.3%) to $791.0 million compared to 2008;

• Life and annuity gross premiums written declined by $198.4 million compared to 2008;

• Property and casualty combined ratio decreased 3.8 percentage points to 88.1% compared to 2008;

• Net favorable development on prior year loss reserves of $78.3 million, or 9.9 points on the combined ratio;

• Net gains on other investments of $76.5 million compared to a net loss of $233.0 million in 2008;

• Net operating income of $208.9 million or $3.62 per diluted share, representing a net operating return on average shareholders’ equity of 14.7%; and

• Book value per diluted share increased by 21.8% to $27.36 at December 31, 2009.

Gross premiums written from property and casualty underwriting for the year ended December 31, 2009 were $1,331.2 million, generated by segments as follows: Bermuda/Dublin insurance $427.8 million; Bermuda/Dublin reinsurance $489.0 million; U.S. specialty $285.5 million; and Max at Lloyd’s $129.0 million.

For the full year 2009, segment combined ratios were 75.6% for Bermuda/Dublin insurance, 92.1% for Bermuda/Dublin reinsurance, 99.5% for U.S. specialty and 86.3% for Max at Lloyd’s.

Gross premiums written increased $38.4 million (or 9.9%) for Bermuda/Dublin insurance, $69.5 million (or 16.6%) for Bermuda/Dublin reinsurance and $91.1 million (or 46.9%) for U.S. specialty compared with results in 2008. Gross premiums written for the life and annuity segment were $43.8 million in 2009, a decrease of $198.4 million compared with 2008.

Balance Sheet

Cash and fixed maturity investments were $4.9 billion as of December 31, 2009, an increase of $341.0 million from December 31, 2008. Other investments, principally hedge funds, were $314.8 million as of December 31, 2009 representing 6.0% of invested assets, a decrease from 14.1% of invested assets a year prior. The Company’s liquidity position at December 31, 2009 is strong, with 94.8% or $4.7 billion of the Company’s $4.9 billion cash and fixed maturities portfolio held in cash, government and government agency-backed securities and A-rated or better securities. The Company recognized other-than-temporary impairment losses through earnings of $0.9 million for the fourth quarter of 2009, compared to no impairment losses during the same period in 2008. Net impairment losses recognized in earnings for the year were $3.1 million, compared to $16.9 million in 2008.

Net investment income for the fourth quarter 2009 increased to $44.7 million from $44.2 million for the same period in 2008. Net investment income for the full year 2009 declined to $169.7 million from $181.6 million for 2008. The decrease in net investment income in 2009 compared to 2008 reflects the lower-yield investment environment and a deliberately higher than normal cash position.

The Company significantly reduced its external borrowings in 2009. Total debt of $375.0 million has been repaid during 2009, reducing the Company’s debt to $90.5 million at December 31, 2009.

During the fourth quarter of 2009, under the Board-approved share repurchase authorization, the Company repurchased 1,221,171 of its common shares at an average price of $22.89 per share for a total amount of $28.0 million. In 2009, the Company repurchased 1,543,571 of its common shares at an average price of $22.24 per share for a total amount of $34.3 million.

Shareholders’ equity was $1,564.6 million at December 31, 2009. Book value per share at December 31, 2009 was $28.01, compared to $22.94 at December 31, 2008, an increase of 22.1% . Book value per diluted share at December 31, 2009 was $27.36 compared to $22.46 at December 31, 2008, an increase of 21.8% .

A copy of the Company’s financial supplement for the fourth quarter and year will be available on the Company’s website atwww.maxcapgroup.com shortly after the release of earnings.

The Company will host a conference call on Wednesday, February 10, 2010 at 10:00am (ET) to discuss this release with interested investors and shareholders. The conference call can be accessed via telephone by dialing 1-888-679-8033 (toll-free U.S.) or 1-617-213-4846 (international) and using access code 13868883. Live broadcast of the conference call will also be available through the Company’s website atwww.maxcapgroup.com.

Operating from offices in Bermuda, Ireland, the USA, Latin America and at Lloyd’s, Max Capital Group Ltd. is a global enterprise dedicated to providing diversified specialty insurance and reinsurance products to corporations, public entities, property and casualty insurers, and life and health insurers.

In presenting the Company’s results, management has included and discussed net operating income per diluted share, net operating return on average shareholders’ equity, book value per share and diluted book value per share. Such 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 GAAP. The reconciliation of such measures to their respective most directly comparable GAAP financial measures is presented in the attached financial information in accordance with Regulation G.

This release includes statements about future economic performance, finances, expectations, plans and prospects of Max Capital Group Ltd. 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.

MAX CAPITAL GROUP LTD.

CONSOLIDATED BALANCE SHEETS

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

	December 31, 2009		December 31, 2008
	(unaudited)
ASSETS
Cash and cash equivalents	$	702,278	$	949,404
Fixed maturities, trading at fair value		228,696		61,820
Fixed maturities, available for sale at fair value		3,007,356		3,592,039
Fixed maturities, held to maturity at amortized cost (fair value $1,033,551)		1,005,947		—
Other investments, at fair value		314,849		753,658
Accrued interest income		57,215		52,882
Premiums receivable		567,301		554,845
Losses and benefits recoverable from reinsurers		1,001,373		846,622
Deferred acquisition costs		65,648		51,337
Prepaid reinsurance premiums		190,613		192,889
Trades pending settlement		76,031		85,727
Other assets		122,439		110,772
Total assets	$	7,339,746	$	7,251,995
LIABILITIES
Property and casualty losses	$	3,178,094	$	2,938,171
Life and annuity benefits		1,372,513		1,366,976
Deposit liabilities		152,629		219,260
Funds withheld from reinsurers		140,079		164,157
Unearned property and casualty premiums		628,161		574,134
Reinsurance balances payable		146,085		160,686
Accounts payable and accrued expenses		67,088		81,916
Bank loans		—		375,000
Senior notes		90,464		91,364
Total liabilities		5,775,113		5,971,664
SHAREHOLDERS’ EQUITY
Preferred shares (par value $1.00) 20,000,000 shares authorized; no shares issued or outstanding		—		—
Common shares (par value $1.00) 200,000,000 shares authorized; 55,867,125 (2008 - 55,805,790) shares issued and outstanding		55,867		55,806
Additional paid-in capital		752,309		763,391
Accumulated other comprehensive income (loss)		25,431		(45,399	)
Retained earnings		731,026		506,533
Total shareholders’ equity		1,564,633		1,280,331
Total liabilities and shareholders’ equity	$	7,339,746	$	7,251,995
Book Value Per Share	$	28.01	$	22.94
Diluted Book Value Per Share	$	27.36	$	22.46
Diluted Shares Outstanding		57,178,458		57,017,157

MAX CAPITAL GROUP LTD.

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited)

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

	Three Months Ended December 31						Year Ended December 31
	2009			2008			2009			2008
REVENUES
Gross premiums written	$	278,333		$	372,065		$	1,375,001		$	1,254,250
Reinsurance premiums ceded		(103,143	)		(114,196	)		(480,481	)		(414,047	)
Net premiums written	$	175,190		$	257,869		$	894,520		$	840,203
Earned premiums	$	325,078		$	409,572		$	1,318,949		$	1,170,248
Earned premiums ceded		(117,805	)		(108,073	)		(484,593	)		(356,738	)
Net premiums earned		207,273			301,499			834,356			813,510
Net investment income		44,668			44,226			169,741			181,624
Net realized and unrealized gains (losses) on investments		17,325			(88,951	)		81,765			(234,965	)
Total other-than-temporary impairment losses		(125	)		—			(5,315	)		(16,887	)
Portion of loss recognized in other comprehensive income (loss), before taxes		(800	)		—			2,237			—
Net impairment losses recognized in earnings		(925	)		—			(3,078	)		(16,887	)
Net realized gain on retirement of senior notes		111			2,245			111			2,245
Other income		(196	)		457			2,903			1,458
Total revenues		268,256			259,476			1,085,798			746,985
LOSSES AND EXPENSES
Net losses and loss expenses		114,870			115,160			493,599			393,745
Claims and policy benefits		16,976			164,351			101,093			301,526
Acquisition costs		23,188			16,635			96,874			52,379
Interest expense		6,685			15,542			21,339			36,089
Net foreign exchange losses (gains)		702			7,889			(5,772	)		9,873
Merger and acquisition expenses		(224	)		(544	)		(31,566	)		2,944
General and administrative expenses		38,458			34,468			153,995			124,515
Total losses and expenses		200,655			353,501			829,562			921,071
INCOME (LOSS) BEFORE TAXES		67,601			(94,025	)		256,236			(174,086	)
Income tax expense		5,009			58			10,021			1,232
NET INCOME (LOSS)		62,592			(94,083	)		246,215			(175,318	)
Change in net unrealized gains and losses on fixed maturities, net of tax		(16,085	)		118,821			50,544			9,882
Foreign currency translation adjustment		(86	)		(17,471	)		20,286			(34,940	)
COMPREHENSIVE INCOME (LOSS)	$	46,421		$	7,267		$	317,045		$	(200,376	)
Basic earnings per share	$	1.10		$	(1.67	)	$	4.32		$	(3.10	)
Diluted earnings per share (1)	$	1.08		$	(1.67	)	$	4.26		$	(3.10	)
Net operating income per diluted share	$	1.04		$	(1.52	)	$	3.62		$	(2.54	)
Weighted average shares outstanding - basic		57,090,930			56,296,064			57,006,908			56,565,588
Weighted average shares outstanding - diluted (1)		58,035,775			56,296,064			57,767,137			56,565,588

(1) In accordance with U.S. generally accepted accounting principles, diluted earnings per share calculations use weighted average common shares outstanding - basic, for periods with a net loss

MAX CAPITAL GROUP LTD.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

(Expressed in thousands of United States Dollars)

	Year Ended December 31
	2009			2008
Common shares
Balance, beginning of year	$	55,806		$	57,515
Issuance of common shares, net		1,604			2,439
Repurchase of shares		(1,543	)		(4,148	)
Balance, end of year		55,867			55,806
Additional paid-in capital
Balance, beginning of year		763,391			844,455
Issuance of common shares, net		789			4,379
Stock based compensation expense		20,907			20,248
Repurchase of shares		(32,778	)		(105,691	)
Balance, end of year		752,309			763,391
Accumulated other comprehensive income (loss)
Balance, beginning of year		(45,399	)		(20,341	)
Holding gains (losses) on available for sale securities arising in year, net of tax		51,563			(5,327	)
Net realized losses on available for sale securities included in net income, net of tax		1,218			15,209
Portion of other-than-temporary impairment losses recognised in other comprehensive income, net of tax		(2,237	)		—
Foreign currency translation adjustment		20,286			(34,940	)
Balance, end of year		25,431			(45,399	)
Retained earnings
Balance, beginning of year		506,533			702,265
Net income (loss)		246,215			(175,318	)
Dividends paid		(21,722	)		(20,414	)
Balance, end of year		731,026			506,533
Total shareholders’ equity	$	1,564,633		$	1,280,331

MAX CAPITAL GROUP LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(Expressed in thousands of United States Dollars)

	Year Ended December 31
	2009			2008
OPERATING ACTIVITIES
Net income (loss)	$	246,215		$	(175,318	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Stock based compensation		20,907			20,248
Amortization of premium on fixed maturities		3,921			5,095
Accretion of deposit liabilities		2,907			4,507
Net realized and unrealized (gains) losses on investments		(81,765	)		234,965
Net impairment losses recognized in earnings		3,078			16,887
Net realized gain on retirement of senior notes		(111	)		(2,245	)
Changes in:
Accrued interest income		(4,206	)		(3,498	)
Premiums receivable		(7,551	)		(52,844	)
Losses and benefits recoverable from reinsurers		(145,863	)		(223,188	)
Deferred acquisition costs		(12,913	)		2,934
Prepaid reinsurance premiums		3,932			(55,801	)
Other assets		(2,050	)		(3,006	)
Property and casualty losses		199,201			373,625
Life and annuity benefits		(21,070	)		200,434
Funds withheld from reinsurers		(24,079	)		(5,106	)
Unearned property and casualty premiums		44,490			84,563
Reinsurance balances payable		(15,579	)		46,934
Accounts payable and accrued expenses		(16,312	)		12,799
Cash provided by operating activities		193,152			481,985
INVESTING ACTIVITIES
Purchases of available for sale securities		(1,212,911	)		(930,864	)
Sales of available for sale securities		281,495			421,425
Redemptions of available for sale securities		625,434			511,787
Purchases of trading securities		(195,151	)		(21,194	)
Sales of trading securities		29,578			17,209
Redemptions of trading securities		8,347			3,201
Purchases of held to maturity securities		(33,647	)		—
Net sales of other investments		534,244			89,231
Acquisition of subsidiary, net of cash acquired		(8,198	)		103,155
Cash provided by investing activities		29,191			193,950
FINANCING ACTIVITIES
Net proceeds from issuance of common shares		2,393			6,818
Repurchase of common shares		(34,321	)		(109,839	)
Net repayments of bank loans		(375,000	)		45,000
Net repayments of senior notes		(811	)		(8,415	)
Dividends paid		(21,722	)		(20,414	)
Additions to deposit liabilities		14,630			16,681
Payment of deposit liabilities		(84,168	)		(23,000	)
Cash used in financing activities		(498,999	)		(93,169	)
Effect of exchange rate on cash		29,530			(31,018	)
Net (decrease) increase in cash and cash equivalents		(247,126	)		551,748
Cash and cash equivalents, beginning of year		949,404			397,656
CASH AND CASH EQUIVALENTS, END OF YEAR	$	702,278		$	949,404

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

Interest paid totaled $6,896 and $21,416 for the years ended December 31, 2009 and 2008, respectively.

Corporate taxes paid totaled $609 and $199 for the year ended December 31, 2009 and 2008, respectively.

MAX CAPITAL GROUP LTD.

SCHEDULE OF SUPPLEMENTAL UNDERWRITING DATA–YEAR ENDED DECEMBER 31, 2009 (Unaudited)

(Expressed in thousands of United States Dollars)

Year to Date Segment Information:

	Property & Casualty															Life & Annuity			Corporate			Consolidated
	Bermuda/Dublin						U.S. Specialty			Max at Lloyd’s			Total			Reinsurance
	Insurance			Reinsurance
Gross premiums written	$	427,767		$	489,028		$	285,478		$	128,973		$	1,331,246		$	43,755		$	—		$	1,375,001
Reinsurance premiums ceded		(212,083	)		(80,005	)		(155,096	)		(32,884	)		(480,068	)		(413	)		—			(480,481	)
Net premiums written	$	215,684		$	409,023		$	130,382		$	96,089		$	851,178		$	43,342		$	—		$	894,520
Earned premiums	$	417,090		$	476,434		$	256,670		$	125,000		$	1,275,194		$	43,755		$	—		$	1,318,949
Earned premiums ceded		(211,127	)		(88,578	)		(154,568	)		(29,907	)		(484,180	)		(413	)		—			(484,593	)
Net premiums earned		205,963			387,856			102,102			95,093			791,014			43,342			—			834,356
Net investment income		22,875			40,220			5,987			4,388			73,470			50,993			45,278			169,741
Net realized and unrealized gains on investments		4,430			10,540			232			2,590			17,792			37,338			26,635			81,765
Net impairment losses recognized in earnings		—			—			—			—			—			—			(3,078	)		(3,078	)
Net realized gain on retirement of senior notes		—			—			—			—			—			—			111			111
Other income		1,238			12			314			658			2,222			(120	)		801			2,903
Total revenues		234,506			438,628			108,635			102,729			884,498			131,553			69,747			1,085,798
Net losses and loss expenses		132,355			254,474			62,812			43,958			493,599			—			—			493,599
Claims and policy benefits		—			—			—			—			—			101,093			—			101,093
Acquisition costs		(1,233	)		71,074			7,501			18,136			95,478			1,396			—			96,874
Interest expense		781			6,591			—			—			7,372			3,328			10,639			21,339
Net foreign exchange gains		—			—			—			(5,055	)		(5,055	)		—			(717	)		(5,772	)
Merger and acquisition expenses		—			—			—			—			—			—			(31,566	)		(31,566	)
General and administrative expenses		24,623			31,778			31,229			19,972			107,602			2,786			43,607			153,995
Total losses and expenses		156,526			363,917			101,542			77,011			698,996			108,603			21,963			829,562
Income before taxes	$	77,980		$	74,711		$	7,093		$	25,718		$	185,502		$	22,950		$	47,784		$	256,236
Loss Ratio (a)		64.3	%		65.6	%		61.5	%		46.2	%		62.4	%
Combined Ratio (b)		75.6	%		92.1	%		99.5	%		86.3	%		88.1	%

SCHEDULE OF SUPPLEMENTAL UNDERWRITING DATA–THREE MONTHS ENDED DECEMBER 31, 2009 (Unaudited)

(Expressed in thousands of United States Dollars)

Quarter Segment Information:

	Property & Casualty															Life & Annuity			Corporate			Consolidated
	Bermuda/Dublin						U.S. Specialty			Max at Lloyd’s			Total			Reinsurance
	Insurance			Reinsurance
Gross premiums written	$	125,040		$	66,732		$	66,210		$	18,344		$	276,326		$	2,007		$	—		$	278,333
Reinsurance premiums ceded		(66,007	)		569			(36,517	)		(921	)		(102,876	)		(267	)		—			(103,143	)
Net premiums written	$	59,033		$	67,301		$	29,693		$	17,423		$	173,450		$	1,740		$	—		$	175,190
Earned premiums	$	109,381		$	111,440		$	71,061		$	31,189		$	323,071		$	2,007		$	—		$	325,078
Earned premiums ceded		(53,417	)		(13,867	)		(42,886	)		(7,368	)		(117,538	)		(267	)		—			(117,805	)
Net premiums earned		55,964			97,573			28,175			23,821			205,533			1,740			—			207,273
Net investment income		6,014			10,613			1,438			1,172			19,237			13,367			12,064			44,668
Net realized and unrealized gains on investments		893			2,073			84			3			3,053			8,192			6,080			17,325
Net impairment losses recognized in earnings		—			—			—			—			—			—			(925	)		(925	)
Net realized gain on retirement of senior notes		—			—			—			—			—			—			111			111
Other income		—			—			42			183			225			(120	)		(301	)		(196	)
Total revenues		62,871			110,259			29,739			25,179			228,048			23,179			17,029			268,256
Net losses and loss expenses		26,326			61,718			16,312			10,514			114,870			—			—			114,870
Claims and policy benefits		—			—			—			—			—			16,976			—			16,976
Acquisition costs		270			17,578			1,628			3,339			22,815			373			—			23,188
Interest expense		781			4,191			—			—			4,972			525			1,188			6,685
Net foreign exchange losses		—			—			—			69			69			—			633			702
Merger and acquisition expenses		—			—			—			—			—			—			(224	)		(224	)
General and administrative expenses		6,798			8,174			10,034			4,116			29,122			606			8,730			38,458
Total losses and expenses		34,175			91,661			27,974			18,038			171,848			18,480			10,327			200,655
Income before taxes	$	28,696		$	18,598		$	1,765		$	7,141		$	56,200		$	4,699		$	6,702		$	67,601
Loss Ratio (a)		47.0	%		63.3	%		57.9	%		44.1	%		55.9	%
Combined Ratio (b)		59.7	%		89.6	%		99.3	%		75.4	%		81.2	%

(a) The loss ratio is calculated by dividing net losses and loss expenses by net premiums earned.

(b) 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.

MAX CAPITAL GROUP LTD.

SCHEDULE OF SUPPLEMENTAL UNDERWRITING DATA–YEAR ENDED DECEMBER 31, 2008 (Unaudited)

(Expressed in thousands of United States Dollars)

Year to Date Segment Information:

	Property & Casualty															Life & Annuity			Corporate			Consolidated
	Bermuda/Dublin						U.S. Specialty			Max at Lloyd’s (c)			Total			Reinsurance
	Insurance			Reinsurance
Gross premiums written	$	389,368		$	419,509		$	194,353		$	8,844		$	1,012,074		$	242,176		$	—		$	1,254,250
Reinsurance premiums ceded		(198,098	)		(92,421	)		(118,710	)		(4,294	)		(413,523	)		(524	)		—			(414,047	)
Net premiums written	$	191,270		$	327,088		$	75,643		$	4,550		$	598,551		$	241,652		$	—		$	840,203
Earned premiums	$	371,080		$	426,157		$	121,172		$	9,663		$	928,072		$	242,176		$	—		$	1,170,248
Earned premiums ceded		(189,125	)		(84,366	)		(77,374	)		(5,349	)		(356,214	)		(524	)		—			(356,738	)
Net premiums earned		181,955			341,791			43,798			4,314			571,858			241,652			—			813,510
Net investment income		18,437			36,069			7,235			542			62,283			40,058			79,283			181,624
Net realized and unrealized (losses) gains on investments		(23,499	)		(51,096	)		(523	)		508			(74,610	)		(100,921	)		(59,434	)		(234,965	)
Net impairment losses recognized in earnings		—			—			—			—			—			—			(16,887	)		(16,887	)
Net realized gain on retirement of senior notes		—			—			—			—			—			—			2,245			2,245
Other income		1,112			—			303			160			1,575			—			(117	)		1,458
Total revenues		178,005			326,764			50,813			5,524			561,106			180,789			5,090			746,985
Net losses and loss expenses		142,150			218,749			30,376			2,470			393,745			—			—			393,745
Claims and policy benefits		—			—			—			—			—			301,526			—			301,526
Acquisition costs		(2,810	)		51,328			3,039			981			52,538			(159	)		—			52,379
Interest expense		—			7,516			—			—			7,516			6,818			21,755			36,089
Net foreign exchange losses		—			—			—			(382	)		(382	)		—			10,255			9,873
Merger and acquisition expenses		—			—			—			—			—			—			2,944			2,944
General and administrative expenses		21,101			28,548			27,235			2,525			79,409			2,917			42,189			124,515
Total losses and expenses		160,441			306,141			60,650			5,594			532,826			311,102			77,143			921,071
Income (loss) before taxes	$	17,564		$	20,623		$	(9,837	)	$	(70	)	$	28,280		$	(130,313	)	$	(72,053	)	$	(174,086	)
Loss Ratio (a)		78.1	%		64.0	%		69.4	%		57.3	%		68.9	%
Combined Ratio (b)		88.2	%		87.4	%		138.5	%		138.5	%		91.9	%

SCHEDULE OF SUPPLEMENTAL UNDERWRITING DATA–THREE MONTHS ENDED DECEMBER 31, 2008 (Unaudited)

(Expressed in thousands of United States Dollars)

Quarter Segment Information:

	Property & Casualty															Life & Annuity			Corporate			Consolidated
	Bermuda/Dublin						U.S. Specialty			Max at Lloyd’s (c)			Total			Reinsurance
	Insurance			Reinsurance
Gross premiums written	$	113,080		$	42,025		$	60,191		$	8,844		$	224,140		$	147,925		$	—		$	372,065
Reinsurance premiums ceded		(64,999	)		(7,288	)		(37,376	)		(4,294	)		(113,957	)		(239	)		—			(114,196	)
Net premiums written	$	48,081		$	34,737		$	22,815		$	4,550		$	110,183		$	147,686		$	—		$	257,869
Earned premiums	$	92,988		$	115,494		$	43,502		$	9,663		$	261,647		$	147,925		$	—		$	409,572
Earned premiums ceded		(48,134	)		(26,549	)		(27,803	)		(5,349	)		(107,835	)		(238	)		—			(108,073	)
Net premiums earned		44,854			88,945			15,699			4,314			153,812			147,687			—			301,499
Net investment income		5,124			8,272			1,672			542			15,610			10,126			18,490			44,226
Net realized and unrealized (losses) gains on investments		(9,923	)		(21,458	)		—			508			(30,873	)		(42,170	)		(15,908	)		(88,951	)
Net impairment losses recognized in earnings		—			—			—			—			—			—			—			—
Net realized gain on retirement of senior notes		—			—			—			—			—			—			2,245			2,245
Other income		—			—			163			160			323			—			134			457
Total revenues		40,055			75,759			17,534			5,524			138,872			115,643			4,961			259,476
Net losses and loss expenses		33,331			68,423			10,936			2,470			115,160			—			—			115,160
Claims and policy benefits		—			—			—			—			—			164,351			—			164,351
Acquisition costs		(865	)		16,154			980			981			17,250			(615	)		—			16,635
Interest expense		—			5,134			—			—			5,134			4,722			5,686			15,542
Net foreign exchange losses		—			—			—			(382	)		(382	)		—			8,271			7,889
Merger and acquisition expenses		—			—			—			—			—			—			(544	)		(544	)
General and administrative expenses		5,049			6,567			6,636			2,525			20,777			644			13,047			34,468
Total losses and expenses		37,515			96,278			18,552			5,594			157,939			169,102			26,460			353,501
Income (loss) before taxes	$	2,540		$	(20,519	)	$	(1,018	)	$	(70	)	$	(19,067	)	$	(53,459	)	$	(21,499	)	$	(94,025	)
Loss Ratio (a)		74.3	%		76.9	%		69.7	%		57.3	%		74.9	%
Combined Ratio (b)		83.6	%		102.5	%		118.2	%		138.5	%		99.6	%

(a) The loss ratio is calculated by dividing net losses and loss expenses by net premiums earned.

(b) 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.

(c) The results of operations for the Max at Lloyd’s segment are consolidated only from the November 6, 2008 date of acquisition.

MAX CAPITAL GROUP LTD.

SCHEDULE OF SUPPLEMENTAL PREMIUM DATA–YEAR ENDED DECEMBER 31, 2009 (Unaudited)

(Expressed in thousands of United States Dollars)

Gross Premiums Written by Type of Risk:

		Year Ended December 31, 2009						Year Ended December 31, 2008
		Gross Premiums Written		Percentage of Total Gross Premiums Written		Movement on Prior Year Period		Gross Premiums Written		Percentage of Total Gross Premiums Written
Property & Casualty:
Bermuda/Dublin Insurance:
Aviation	S	$	69,834	5.1	%	31.7	%	$	53,034	4.2	%
Excess Liability	L		113,767	8.3	%	(7.9	%)		123,490	9.8	%
Professional Liability	L		179,904	13.1	%	13.0	%		159,140	12.7	%
Property	S		64,262	4.6	%	19.7	%		53,704	4.3	%
			427,767	31.1	%	9.9	%		389,368	31.0	%
Bermuda/Dublin Reinsurance:
Agriculture	S		89,550	6.5	%	11.3	%		80,454	6.4	%
Aviation	S		34,715	2.5	%	10.0	%		31,555	2.5	%
General Casualty	L		29,185	2.1	%	187.1	%		10,165	0.8	%
Marine & Energy	S		18,321	1.3	%	43.5	%		12,769	1.0	%
Medical Malpractice	L		67,483	4.9	%	(12.5	%)		77,133	6.1	%
Other	S		2,297	0.2	%	18.8	%		1,934	0.2	%
Professional Liability	L		71,531	5.2	%	84.7	%		38,718	3.1	%
Property	S		87,039	6.4	%	(12.3	%)		99,280	7.9	%
Whole Account	L		11,456	0.9	%	(11.2	%)		12,906	1.0	%
Workers’ Compensation	L		77,451	5.6	%	41.9	%		54,595	4.4	%
			489,028	35.6	%	16.6	%		419,509	33.4	%
U.S. Specialty:
General Casualty	L		87,782	6.5	%	46.7	%		59,838	4.8	%
Marine	S		61,360	4.5	%	58.7	%		38,667	3.1	%
Professional Liability	L		576	0.0	%	n/a			—	—
Property	S		135,760	9.8	%	41.6	%		95,848	7.6	%
			285,478	20.8	%	46.9	%		194,353	15.5	%
Max at Lloyd’s (a):
Accident & Health	S		22,602	1.6	%	n/a			408	0.0	%
Aviation	S		2,611	0.2	%	n/a			—	—
Financial Institutions	L		23,822	1.7	%	n/a			4,062	0.3	%
Professional Liability	L		19,889	1.4	%	n/a			2,928	0.3	%
Property	S		60,049	4.4	%	n/a			1,446	0.1	%
						��
			128,973	9.3	%	n/a			8,844	0.7	%
Aggregate Property & Casualty		$	1,331,246	96.8	%	31.5	%	$	1,012,074	80.7	%
Life & Annuity:
Annuity		$	—	—		n/a		$	239,555	19.1	%
Life			43,755	3.2	%	n/a			2,621	0.2	%
Aggregate Life & Annuity		$	43,755	3.2	%	(81.9	%)	$	242,176	19.3	%
Aggregate P&C and Life & Annuity		$	1,375,001	100.0	%	9.6	%	$	1,254,250	100.0	%
(a)    The results of operations for the Max at Lloyd’s segment are consolidated only from November 6, 2008, the date Max at Lloyd’s was acquired
S = Short tail lines		$	648,400	48.7	%			$	469,099	46.4	%
L = Long tail lines			682,846	51.3	%				542,975	53.6	%
Aggregate Property & Casualty		$	1,331,246					$	1,012,074

MAX CAPITAL GROUP LTD.

NON-GAAP FINANCIAL MEASURE RECONCILIATIONS (Unaudited)

Net Operating Income per Diluted Share

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

	Three Months Ended December 31						Year Ended December 31
	2009			2008			2009			2008
Net income (loss)	$	62,592		$	(94,083	)	$	246,215		$	(175,318	)
Net realized and unrealized (gains) losses on fixed maturities, net of tax (1)		(2,576	)		1,108			(1,411	)		18,640
Foreign exchange losses (gains), net of tax		682			7,999			(4,331	)		9,982
Merger and acquisition expenses, net of tax		(224	)		(544	)		(31,566	)		2,944
Net operating income (loss)	$	60,474		$	(85,520	)	$	208,907		$	(143,752	)
Net income (loss) per diluted share	$	1.08		$	(1.67	)	$	4.26		$	(3.10	)
Net realized and unrealized (gains) losses on fixed maturities, net of tax (1)		(0.05	)		0.02			(0.02	)		0.33
Foreign exchange losses (gains), net of tax		0.01			0.14			(0.07	)		0.18
Merger and acquisition expenses, net of tax		—			(0.01	)		(0.55	)		0.05
Net operating income (loss) per diluted share	$	1.04		$	(1.52	)	$	3.62		$	(2.54	)
Weighted average shares outstanding - basic		57,090,930			56,296,064			57,006,908			56,565,588
Weighted average shares outstanding - diluted (2)		58,035,775			56,296,064			57,767,137			56,565,588

(1) Net realized and unrealized (gains) losses on fixed maturities includes realized and unrealized (gains) losses on trading securities, realised (gains) losses on available for sale securities, net impairment losses recognized in earnings, and changes in fair value of investment derivatives.

(2) In accordance with U.S. generally accepted accounting principles, diluted earnings per share calculations use weighted average common shares outstanding - basic, for periods with a net loss

Annualized Return and Annualized Net Operating Return on Average Shareholders’ Equity

(Expressed in thousands of United States Dollars)

	Three Months Ended December 31						Year Ended December 31
	2009			2008			2009			2008
Net income (loss)	$	62,592		$	(94,083	)	$	246,215		$	(175,318	)
Annualized net income (loss)		250,368			(376,332	)		246,215			(175,318	)
Net operating income (loss)	$	60,474		$	(85,520	)	$	208,907		$	(143,752	)
Annualized net operating income (loss)		241,896			(342,080	)		208,907			(143,752	)
Beginning shareholders’ equity	$	1,546,674		$	1,274,482		$	1,280,331		$	1,583,894
Ending shareholders’ equity		1,564,633			1,280,331			1,564,633			1,280,331
Average shareholders’ equity		1,555,654			1,277,407			1,422,482			1,432,113
Annualized return on average shareholders’ equity		16.1	%		(29.5	%)		17.3	%		(12.2	%)
Annualized net operating return on average shareholders’ equity		15.5	%		(26.8	%)		14.7	%		(10.0	%)

MAX CAPITAL GROUP LTD.

SCHEDULE OF SUPPLEMENTAL INVESTMENT DATA–YEAR ENDED DECEMBER 31, 2009 (Unaudited)

Expressed in thousands of United States Dollars

	As at December 31, 2009		Investment Distribution		Credit Rating	As at December 31, 2009		Ratings Distribution
Cash and Cash Equivalents	$	702,278	13.4	%	U.S. Government and Agencies (1)	$	1,214,895	28.6	%
					AAA		720,364	17.0	%
U.S. Government and Agencies		525,427	10.0	%	AA		325,997	7.7	%
Non-U.S. Government		82,027	1.5	%	A		731,723	17.3	%
Corporate Securities		1,375,999	26.2	%	BBB		100,841	2.4	%
Municipal Securities		83,658	1.6	%	BB		34,781	0.8	%
Asset-Backed Securities		102,006	1.9	%	B or lower		107,451	2.5	%
Residential Mortgage-Backed Securities		763,974	14.5	%	Fixed Maturities at fair value	$	3,236,052	76.3	%
Commercial Mortgage-Backed Securities		302,961	5.8	%
					U.S. Government and Agencies	$	14,050	0.3	%
Fixed Maturities at fair value	$	3,236,052	61.5	%	AAA		717,954	16.9	%
					AA		101,675	2.4	%
U.S. Government and Agencies	$	14,050	0.3	%	A		158,141	3.7	%
Non-U.S. Government		573,250	10.9	%	BBB		12,672	0.3	%
Corporate Securities		418,647	7.9	%	BB		—	0.0	%
					B or lower		1,455	0.1	%
Fixed Maturities at amortised cost	$	1,005,947	19.1	%	Fixed Maturities at amortised cost	$	1,005,947	23.7	%
Other Investments	$	314,849	6.0	%	Total Fixed Maturities	$	4,241,999
Total Investments	$	5,259,126	100.0	%

(1) Included within U.S. Government and Agencies are Agency-issued Residential Mortgage-Backed Securities with a fair value of $689,468.

Contacts
Susan Spivak Bernstein	Roanne Kulakoff
Senior Vice President	Kekst and Company
susan.spivak@maxcapservices.com	roanne-kulakoff@kekst.com
1-212-898-6640	1-212-521-4837