Alterra Capital 8-K Alterra Capital Reports Second Quarter 2010 Results

Exhibit 99.2

ALTERRA CAPITAL HOLDINGS LIMITED

Investor Financial Supplement

Second Quarter 2010

(Unaudited)

This supplement is for information purposes only. It should be read in conjunction with documents filed by Alterra Capital Holdings Limited with the U.S. Securities and Exchange Commission pursuant to the Securities Exchange Act 1934.

Alterra Capital Holdings Limited

Investors:

Susan Spivak Bernstein, +1-212-898-6640

or

Media:

Kekst and Company

Roanne Kulakoff or Peter Hill, +1-212-521-4800

ALTERRA CAPITAL HOLDINGS LIMITED

FINANCIAL SUPPLEMENT TABLE OF CONTENTS

	Page
Financial Highlights	4
Consolidated Balance Sheets	5
Consolidated Statements of Income - Quarterly	6
Consolidated Statements of Income - Year to Date	7
Segment Data and Ratios - Quarterly	8
Gross Premiums Written by Line of Business - Quarterly	16
Segment Data and Ratios - Year to Date	18
Gross Premiums Written by Line of Business - Year to Date	25
Amalgamation with Harbor Point - Purchase Price	26
Investment Portfolio	27
Shareholder Return Analysis	30
Earnings Per Share Information	31
Operating Income Reconciliation	32
Book Value per Share	33
Regulation G	34
Pro forma Consolidated Statements of Income	35

ALTERRA CAPITAL HOLDINGS LIMITED

Cautionary note regarding forward-looking information

This financial supplement may include forward-looking statements that reflect Alterra’s current views with respect to future events and financial performance. Statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “anticipate,” “will,” “may” and similar statements of a future or forward-looking nature identify forward-looking statements. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and you should not place undue reliance on any such statements.

Alterra believes that these factors include, but are not limited to, the following: (1) the adequacy of loss reserves and the need to adjust such reserves as claims develop over time; (2) the failure of any of the loss limitation methods employed; (3) the effects of emerging claims and coverage issues; (4) changes in general economic conditions, including changes in capital and credit markets; (5) the effect of competition and cyclical trends, including with respect to demand and pricing in the insurance and reinsurance markets; (6) any lowering or loss of financial ratings; (7) the occurrence of natural or man-made catastrophic events with a frequency or severity exceeding expectations; (8) the loss of business provided to Alterra by its major brokers; (9) the effect on Alterra’s investment portfolio of changing financial market conditions including inflation, interest rates, liquidity and other factors; (10) tax and regulatory changes and conditions; (11) the integration of Harbor Point or new business ventures Alterra may enter into; and (12) retention of key personnel, as well as management’s response to any of the aforementioned factors.

The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in Alterra’s most recent reports on Form 10-K and Form 10-Q and other documents on file with the Securities and Exchange Commission. Any forward-looking statements made in this financial supplement are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by Alterra will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Alterra or its business or operations. Alterra undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

3

ALTERRA CAPITAL HOLDINGS LIMITED

FINANCIAL HIGHLIGHTS

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

	For The Quarters Ended						For The Six Months Ended
	June 30, 2010			June 30, 2009			June 30, 2010			June 30, 2009			Previous Year Quarter Change		Previous Year to Date Change
HIGHLIGHTS
Net income	$	103,447		$	43,758		$	139,828		$	88,297		136.4	%	58.4	%
Net operating income [a]		58,774			47,773			99,455			94,706		23.0	%	5.0	%
Operating cashflow		126,981			80,123			173,781			52,295		58.5	%	232.3	%
Gross premiums written		398,981			396,509			770,120			830,782		0.6	%	(7.3	%)
Net premiums earned		293,260			228,785			487,500			419,067		28.2	%	16.3	%
Total assets		9,974,936			7,292,559			9,974,936			7,292,559		36.8	%	36.8	%
Total shareholders’ equity		2,926,967			1,363,469			2,926,967			1,363,469		114.7	%	114.7	%
PER SHARE
Basic earnings per share
Net income	$	1.14		$	0.77		$	1.90		$	1.55
Net operating income [a]		0.65			0.84			1.35			1.66
Diluted earnings per share
Net income	$	1.13		$	0.76		$	1.88		$	1.54
Net operating income [a]		0.64			0.83			1.33			1.65
Weighted average shares outstanding - basic		91,042,301			57,066,298			73,779,447			56,851,795
Weighted average shares outstanding - diluted		91,661,430			57,638,446			74,524,919			57,411,744
Book value per common share [b]	$	24.67		$	24.09		$	24.67		$	24.09		2.4	%	2.4	%
Diluted book value per share (treasury stock method) [b]		24.55			23.53			24.55			23.53		4.3	%	4.3	%
Diluted tangible book value per share (treasury stock method) [b]		24.04			22.83			24.04			22.83		5.3	%	5.3	%
RATIOS
Annualized return on average shareholders’ equity [c]		17.8	%		13.3	%		14.3	%		13.7	%
Annualized net operating return on average shareholders’ equity [c]		10.1	%		14.6	%		10.2	%		14.7	%
Loss ratio [d]		54.6	%		65.1	%		58.6	%		65.4	%
Acquisition cost ratio [d]		16.6	%		13.0	%		15.0	%		11.9	%
General and administrative expense ratio [d]		12.1	%		12.7	%		12.6	%		13.0	%
Combined ratio [d]		83.3	%		90.8	%		86.2	%		90.3	%

[a] Net operating income represents net income excluding, as applicable, after-tax net realized and unrealized gains and losses on non-hedge fund investments, after-tax net foreign exchange gains or losses, and after-tax merger and acquisition expenses.

[b] For detailed calculations see page 33.

[c] For detailed calculations see page 30.

[d] For property and casualty business only.

4

ALTERRA CAPITAL HOLDINGS LIMITED

CONSOLIDATED BALANCE SHEETS

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

	June 30, 2010			Mar. 31, 2010			Dec. 31, 2009			Sept. 30, 2009			June 30, 2009
	(Unaudited)			(Unaudited)						(Unaudited)			(Unaudited)
ASSETS
Cash and cash equivalents	$	741,684		$	690,246		$	702,278		$	1,056,011		$	1,008,178
Fixed maturities, trading at fair value		230,251			219,332			228,696			74,337			63,666
Fixed maturities, available for sale at fair value		5,451,969			3,158,131			3,007,356			2,872,146			3,615,549
Fixed maturities, held to maturity at amortized cost		871,651			954,696			1,005,947			1,026,244			—
Other investments, at fair value		436,757			325,359			318,073			390,972			436,603
Accrued interest income		67,561			51,906			57,215			52,145			47,432
Premiums receivable		780,025			617,560			567,301			546,195			670,443
Losses and benefits recoverable from reinsurers		962,442			1,023,224			1,001,373			985,614			930,483
Deferred acquisition costs		89,881			72,195			65,648			66,451			70,097
Prepaid reinsurance premiums		207,102			232,947			190,613			206,924			246,068
Trades pending settlement		—			—			76,031			38,217			95,919
Goodwill and intangible assets		60,670			48,686			48,686			40,488			40,488
Other assets		74,943			79,924			70,529			73,002			67,633
Total assets	$	9,974,936		$	7,474,206		$	7,339,746		$	7,428,746		$	7,292,559
LIABILITIES
Property and casualty losses	$	3,772,622		$	3,220,357		$	3,178,094		$	3,159,156		$	3,058,337
Life and annuity benefits		1,209,031			1,306,916			1,372,513			1,415,836			1,389,052
Deposit liabilities		147,727			149,028			152,629			152,638			153,109
Funds withheld from reinsurers		120,324			138,984			140,079			142,384			140,826
Unearned property and casualty premiums		1,090,323			690,013			628,161			676,342			745,948
Reinsurance balances payable		295,979			168,329			146,085			151,615			190,479
Accounts payable and accrued expenses		81,846			61,955			67,088			92,722			54,964
Trades pending settlement		39,641			35,033			—			—			—
Bank loans		200,000			—			—			—			105,000
Senior notes		90,476			90,475			90,464			91,379			91,375
Total liabilities		7,047,969			5,861,090			5,775,113			5,882,072			5,929,090
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; 118,643,363 shares issued and outstanding		118,643			56,980			55,867			57,013			56,599
Additional paid-in capital		2,157,700			744,466			752,309			773,923			772,047
Accumulated other comprehensive income (loss)		102,718			49,822			25,431			41,602			(49,730	)
Retained earnings		547,906			761,848			731,026			674,136			584,553
Total shareholders’ equity		2,926,967			1,613,116			1,564,633			1,546,674			1,363,469
Total liabilities and shareholders’ equity	$	9,974,936		$	7,474,206		$	7,339,746		$	7,428,746		$	7,292,559
Book value per share	$	24.67		$	28.31		$	28.01		$	27.13		$	24.09
Diluted book value per share (treasury stock method)	$	24.55		$	27.86		$	27.36		$	26.54		$	23.53
Diluted tangible book value per share (treasury stock method)	$	24.04		$	27.02		$	26.51		$	25.85		$	22.83
Debt-to-capital ratio [a]		9.0	%		5.3	%		5.5	%		5.6	%		6.3	%

[a] Calculated as debt, being bank loans (excluding swap loan) and senior notes, divided by shareholders’ equity plus debt.

5

ALTERRA CAPITAL HOLDINGS LIMITED

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

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

	FOR THE QUARTERS ENDED
	June 30, 2010 [f]			Mar. 31, 2010			Dec. 31, 2009			Sept. 30, 2009			June 30, 2009			June 30, 2008
REVENUES
Gross premiums written	$	398,981		$	371,139		$	278,333		$	265,886		$	396,509		$	369,292
Reinsurance premiums ceded		(79,715	)		(153,220	)		(103,143	)		(83,290	)		(129,669	)		(99,115	)
Net premiums written	$	319,266		$	217,919		$	175,190		$	182,596		$	266,840		$	270,177
Earned premiums	$	391,723		$	304,997		$	325,078		$	329,869		$	354,620		$	312,657
Earned premiums ceded		(98,463	)		(110,757	)		(117,805	)		(121,853	)		(125,835	)		(78,047	)
Net premiums earned		293,260			194,240			207,273			208,016			228,785			234,610
Net investment income		53,277			48,390			44,668			42,830			41,755			42,507
Net realized and unrealized (losses) gains on investments		(14,786	)		6,422			17,325			24,528			21,472			40,830
Total other-than-temporary impairment losses		(1,167	)		(698	)		(125	)		—			(5,190	)		(3,130	)
Portion of loss recognized in other comprehensive income (loss) before taxes		867			278			(800	)		(139	)		3,176			—
Net impairment losses recognized in earnings		(300	)		(420	)		(925	)		(139	)		(2,014	)		(3,130	)
Net realized gain on retirement of senior notes		—			—			111			—			—			—
Other income		275			344			(196	)		819			974			201
Total revenues		331,726			248,976			268,256			276,054			290,972			315,018
LOSSES AND EXPENSES
Net losses and loss expenses		159,817			124,965			114,870			131,778			122,228			78,149
Claims and policy benefits		13,943			17,659			16,976			14,378			55,407			108,220
Acquisition costs		48,798			24,244			23,188			27,997			25,059			12,235
Interest expense		7,916			4,942			6,685			5,971			4,744			4,089
Net foreign exchange (gains) losses		(634	)		(2,452	)		702			406			(3,404	)		1
Merger and acquisition expenses		(54,570	)		4,744			(224	)		(41,350	)		4,785			3,988
General and administrative expenses		50,649			36,528			38,458			40,372			36,105			33,502
Total losses and expenses		225,919			210,630			200,655			179,552			244,924			240,184
INCOME BEFORE TAXES		105,807			38,346			67,601			96,502			46,048			74,834
Income tax expense		2,360			1,965			5,009			1,176			2,290			630
NET INCOME		103,447			36,381			62,592			95,326			43,758			74,204
Change in net unrealized gains and losses on fixed maturities securities, net of tax		60,525			34,131			(16,085	)		95,794			36,933			(83,761	)
Foreign currency translation adjustment		(7,629	)		(9,740	)		(86	)		(4,462	)		20,925			(3,427	)
COMPREHENSIVE INCOME (LOSS)	$	156,343		$	60,772		$	46,421		$	186,658		$	101,616		$	(12,984	)
KEY RATIOS/PER SHARE DATA
Loss ratio [a]		54.6	%		64.6	%		55.9	%		63.4	%		65.1	%		55.4	%
Acquisition cost ratio [b]		16.6	%		12.5	%		11.1	%		13.4	%		13.0	%		8.6	%
General and administrative expense ratio [c]		12.1	%		13.4	%		14.2	%		14.1	%		12.7	%		15.4	%
Combined ratio		83.3	%		90.5	%		81.2	%		90.9	%		90.8	%		79.4	%
Basic earnings per share	$	1.14		$	0.64		$	1.10		$	1.67		$	0.77		$	1.31
Diluted earnings per share	$	1.13		$	0.63		$	1.08		$	1.64		$	0.76		$	1.26
Net operating income per share - diluted [d]	$	0.64		$	0.71		$	1.04		$	0.92		$	0.83		$	1.36
Annualized ROAE [e]		17.8	%		9.2	%		16.1	%		26.2	%		13.3	%		19.8	%
Annualized Net Operating ROAE [e]		10.1	%		10.2	%		15.5	%		14.8	%		14.6	%		21.3	%

[a] The loss ratio is calculated by dividing net losses and loss expenses by net premiums earned for the property & casualty business

[b] The acquisition cost ratio is calculated by dividing acquisition costs by net premiums earned for the property & casualty business

[c] The general and administrative expense ratio is calculated by dividing general and administrative expenses by net premiums earned for the property & casualty business

[d] See page 32 for calculation of net operating income per share - diluted.

[e] See page 30 for calculation of annualized return on average shareholders’ equity (ROAE) and annualized net operating ROAE

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

6

ALTERRA CAPITAL HOLDINGS LIMITED

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

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

	SIX MONTHS ENDED									YEAR ENDED
	June 30, 2010 [e]			June 30, 2009			June 30, 2008			Dec. 31, 2009			Dec. 31, 2008
REVENUES
Gross premiums written	$	770,120		$	830,782		$	675,926		$	1,375,001		$	1,254,250
Reinsurance premiums ceded		(232,935	)		(294,048	)		(203,791	)		(480,481	)		(414,047	)
Net premiums written	$	537,185		$	536,734		$	472,135		$	894,520		$	840,203
Earned premiums	$	696,720		$	664,002		$	522,298		$	1,318,949		$	1,170,248
Earned premiums ceded		(209,220	)		(244,935	)		(151,875	)		(484,593	)		(356,738	)
Net premiums earned		487,500			419,067			370,423			834,356			813,510
Net investment income		101,667			82,243			92,133			169,741			181,624
Net realized and unrealized (losses) gains on investments		(8,364	)		39,913			16,535			81,765			(234,965	)
Total other-than-temporary impairment losses		(1,865	)		(5,190	)		(3,130	)		(5,315	)		(16,887	)
Portion of loss recognized in other comprehensive income (loss) before taxes		1,145			3,176			—			2,237			—
Net impairment losses recognized in earnings		(720	)		(2,014	)		(3,130	)		(3,078	)		(16,887	)
Net realized gain on retirement of senior notes		—			—			—			111			2,245
Other income		619			2,280			1,423			2,903			1,458
Total revenues		580,702			541,489			477,384			1,085,798			746,985
LOSSES AND EXPENSES
Net losses and loss expenses		284,782			246,951			171,751			493,599			393,745
Claims and policy benefits		31,602			69,739			123,175			101,093			301,526
Acquisition costs		73,042			45,689			21,848			96,874			52,379
Interest expense		12,858			8,683			16,046			21,339			36,089
Net foreign exchange (gains) losses		(3,086	)		(6,880	)		13			(5,772	)		9,873
Merger and acquisition expenses		(49,826	)		10,008			3,988			(31,566	)		2,944
General and administrative expenses		87,177			75,165			58,210			153,995			124,515
Total losses and expenses		436,549			449,355			395,031			829,562			921,071
INCOME (LOSS) BEFORE TAXES		144,153			92,134			82,353			256,236			(174,086	)
Income tax expense		4,325			3,837			401			10,021			1,232
NET INCOME (LOSS)		139,828			88,297			81,952			246,215			(175,318	)
Change in net unrealized gains and losses on fixed maturities securities, net of tax		94,656			(29,165	)		(68,812	)		50,544			9,882
Foreign currency translation adjustment		(17,369	)		24,834			(8,353	)		20,286			(34,940	)
COMPREHENSIVE INCOME (LOSS)	$	217,115		$	83,966		$	4,787		$	317,045		$	(200,376	)
KEY RATIOS/PER SHARE DATA
Loss ratio [a]		58.6	%		65.4	%		62.1	%		62.4	%		68.9	%
Acquisition cost ratio [b]		15.0	%		11.9	%		7.8	%		12.1	%		9.2	%
General and administrative expense ratio [c]		12.6	%		13.0	%		14.1	%		13.6	%		13.8	%
Combined ratio		86.2	%		90.3	%		84.0	%		88.1	%		91.9	%
Net income per share - basic	$	1.90		$	1.55		$	1.44		$	4.32		$	(3.10	)
Net income per share - diluted	$	1.88		$	1.54		$	1.38		$	4.26		$	(3.10	)
Net operating income per share - diluted	$	1.33		$	1.65		$	1.45		$	3.62		$	(2.54	)
Annualized ROAE [d]		14.3	%		13.7	%		10.8	%		17.6	%		(12.3	%)
Annualized Net Operating ROAE [d]		10.2	%		14.7	%		11.3	%		14.9	%		(10.1	%)

[a] The loss ratio is calculated by dividing net losses and loss expenses by net premiums earned for the property & casualty business

[b] The acquisition cost ratio is calculated by dividing acquisition costs by net premiums earned for the property & casualty business

[c] The general and administrative expense ratio is calculated by dividing general and administrative expenses by net premiums earned for the property & casualty business

[d] See page 30 for calculation of annualized return on average shareholders’ equity (ROAE) and annualized net operating ROAE

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

7

ALTERRA CAPITAL HOLDINGS LIMITED

SCHEDULE OF SUPPLEMENTAL UNDERWRITING DATA–THREE MONTHS ENDED JUNE 30, 2010 (Unaudited) [d]

(Expressed in thousands of United States Dollars)

	Property & Casualty															Life & Annuity
	Insurance			Reinsurance			U.S. Specialty			Alterra at Lloyd’s			Total			Reinsurance			Corporate			Consolidated
Gross premiums written	$	132,312		$	119,578		$	97,487		$	48,802		$	398,179		$	802		$	—		$	398,981
Reinsurance premiums ceded		(46,257	)		(13,348	)		(6,852	)		(13,233	)		(79,690	)		(25	)		—			(79,715	)
Net premiums written	$	86,055		$	106,230		$	90,635		$	35,569		$	318,489		$	777		$	—		$	319,266
Earned premiums	$	99,874		$	174,729		$	76,032		$	40,286		$	390,921		$	802		$	—		$	391,723
Earned premiums ceded		(43,676	)		(19,054	)		(28,588	)		(7,120	)		(98,438	)		(25	)		—			(98,463	)
Net premiums earned		56,198			155,675			47,444			33,166			292,483			777			—			293,260
Net investment income		6,261			13,708			1,315			3,035			24,319			12,420			16,538			53,277
Net realized and unrealized losses on investments		(103	)		(97	)		(1	)		(1,284	)		(1,485	)		(1,860	)		(11,441	)		(14,786	)
Net impairment losses recognized in earnings		—			—			—			—			—			—			(300	)		(300	)
Other income		—			155			97			173			425			—			(150	)		275
Total revenues		62,356			169,441			48,855			35,090			315,742			11,337			4,647			331,726
Net losses and loss expenses		35,927			82,441			29,052			12,397			159,817			—			—			159,817
Claims and policy benefits		—			—			—			—			—			13,943			—			13,943
Acquisition costs		797			32,673			9,135			6,070			48,675			123			—			48,798
Interest expense		240			3,357			—			—			3,597			2,676			1,643			7,916
Net foreign exchange losses (gains)		—			489			—			(1,182	)		(693	)		—			59			(634	)
Merger and acquisition expenses		—			—			—			—			—			—			(54,570	)		(54,570	)
General and administrative expenses		6,501			14,820			7,986			5,826			35,133			642			14,874			50,649
Total losses and expenses		43,465			133,780			46,173			23,111			246,529			17,384			(37,994	)		225,919
Income (loss) before taxes	$	18,891		$	35,661		$	2,682		$	11,979		$	69,213		$	(6,047	)	$	42,641		$	105,807
Loss ratio [a]		63.9	%		53.0	%		61.2	%		37.4	%		54.6	%
Acquisition cost ratio [b]		1.4	%		21.0	%		19.3	%		18.3	%		16.6	%
General and administrative expense ratio [c]		11.6	%		9.5	%		16.8	%		17.5	%		12.1	%
Combined ratio		76.9	%		83.5	%		97.3	%		73.2	%		83.3	%

[a] The loss ratio is calculated by dividing net losses and loss expenses by net premiums earned for the property & casualty business

[b] The acquisition cost ratio is calculated by dividing acquisition costs by net premiums earned for the property & casualty business

[c] The general and administrative expense ratio is calculated by dividing general and administrative expenses by net premiums earned for the property & casualty business

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

8

ALTERRA CAPITAL HOLDINGS LIMITED

CONSOLIDATED UNDERWRITING RATIOS - THREE MONTHS ENDED JUNE 30, 2010 (Unaudited)

	Property & Casualty
	Insurance			Reinsurance [b]		U.S. Specialty		Alterra at Lloyd’s		Total
UNDERWRITING RATIOS
Loss ratio	63.9	%		53.0	%	61.2	%	37.4	%	54.6	%
Acquisition cost ratio	1.4	%	��	21.0	%	19.3	%	18.3	%	16.6	%
General and administrative expense ratio	11.6	%		9.5	%	16.8	%	17.5	%	12.1	%
Combined ratio	76.9	%		83.5	%	97.3	%	73.2	%	83.3	%
EFFECT OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT
FAVORABLE / (UNFAVORABLE)
Loss ratio [a]	16.7	%		7.4	%	0.0	%	9.2	%	8.3	%
NET OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT
UNDERWRITING RATIOS
Loss ratio	80.6	%		60.4	%	61.2	%	46.6	%	62.9	%
Acquisition cost ratio	1.4	%		21.0	%	19.3	%	18.3	%	16.6	%
General and administrative expense ratio	11.6	%		9.5	%	16.8	%	17.5	%	12.1	%
Combined ratio	93.6	%		90.9	%	97.3	%	82.4	%	91.6	%

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

[b] Includes the results for the former Harbor Point Limited from May 12, 2010.

CONSOLIDATED UNDERWRITING RATIOS - THREE MONTHS ENDED JUNE 30, 2009 (Unaudited)

	Property & Casualty
	Insurance		Reinsurance		U.S. Specialty		Alterra at Lloyd’s		Total		Historical Harbor Point [c]
UNDERWRITING RATIOS
Loss ratio	74.4	%	64.4	%	61.4	%	52.1	%	65.1	%	51.1	%
Acquisition cost ratio	(0.9	%)	17.5	%	12.7	%	24.8	%	13.0	%	20.6	%
General and administrative expense ratio	10.6	%	8.1	%	26.3	%	22.1	%	12.7	%	8.7	%
Combined ratio	84.1	%	90.0	%	100.4	%	99.0	%	90.8	%	80.4	%
EFFECT OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT
FAVORABLE / (UNFAVORABLE)
Loss ratio [a]	16.6	%	13.4	%	4.4	%	(5.0	%)	10.7	%	(0.7	%)
NET OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT
UNDERWRITING RATIOS
Loss ratio	91.0	%	77.8	%	65.8	%	47.1	%	75.8	%	50.4	%
Acquisition cost ratio	(0.9	%)	17.5	%	12.7	%	24.8	%	13.0	%	20.6	%
General and administrative expense ratio	10.6	%	8.1	%	26.3	%	22.1	%	12.7	%	8.7	%
Combined ratio	100.7	%	103.4	%	104.8	%	94.0	%	101.5	%	79.7	%

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

[c] Provided for informational purposes only.

9

ALTERRA CAPITAL HOLDINGS LIMITED

INSURANCE SEGMENT DATA (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE QUARTERS ENDED
	June 30, 2010			Mar. 31, 2010			Dec. 31, 2009			Sept. 30, 2009			June 30, 2009			June 30, 2008
Gross premiums written	$	132,312		$	66,421		$	125,040		$	81,134		$	133,911		$	122,176
Reinsurance premiums ceded		(46,257	)		(38,576	)		(66,007	)		(41,884	)		(49,251	)		(49,392	)
Net premiums written	$	86,055		$	27,845		$	59,033		$	39,250		$	84,660		$	72,784
Earned premiums	$	99,874		$	97,041		$	109,381		$	103,961		$	101,551		$	93,037
Earned premiums ceded		(43,676	)		(47,246	)		(53,417	)		(54,814	)		(50,743	)		(44,765	)
Net premiums earned		56,198			49,795			55,964			49,147			50,808			48,272
Net investment income		6,261			6,169			6,014			5,898			5,722			4,325
Net realized and unrealized (losses) gains on investments		(103	)		306			893			1,298			1,003			3,361
Other income		—			(11	)		—			91			—			46
Total revenues		62,356			56,259			62,871			56,434			57,533			56,004
Net losses and loss expenses		35,927			37,279			26,326			31,756			37,809			38,694
Acquisition costs		797			(309	)		270			369			(470	)		(356	)
Interest expense		240			234			781			—			—			—
General and administrative expenses		6,501			5,897			6,798			7,281			5,415			5,572
Total losses and expenses		43,465			43,101			34,175			39,406			42,754			43,910
Income before taxes	$	18,891		$	13,158		$	28,696		$	17,028		$	14,779		$	12,094
Loss ratio		63.9	%		74.9	%		47.0	%		64.6	%		74.4	%		80.2	%
Acquisition cost ratio		1.4	%		(0.6	%)		0.5	%		0.8	%		(0.9	%)		(0.7	%)
General and administrative expense ratio		11.6	%		11.8	%		12.2	%		14.8	%		10.6	%		11.5	%
Combined ratio		76.9	%		86.1	%		59.7	%		80.2	%		84.1	%		91.0	%

10

ALTERRA CAPITAL HOLDINGS LIMITED

REINSURANCE SEGMENT DATA (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE QUARTERS ENDED
	June 30, 2010 [a]			Mar. 31, 2010			Dec. 31, 2009			Sept. 30, 2009			June 30, 2009			June 30, 2008
Gross premiums written	$	119,578		$	154,851		$	66,732		$	94,118		$	95,196		$	101,602
Reinsurance premiums ceded		(13,348	)		(45,351	)		569			(11,106	)		(18,085	)		(18,671	)
Net premiums written	$	106,230		$	109,500		$	67,301		$	83,012		$	77,111		$	82,931
Earned premiums	$	174,729		$	95,743		$	111,440		$	128,458		$	112,550		$	99,917
Earned premiums ceded		(19,054	)		(15,958	)		(13,867	)		(25,367	)		(22,825	)		(16,166	)
Net premiums earned		155,675			79,785			97,573			103,091			89,725			83,751
Net investment income		13,708			10,904			10,613			10,404			9,975			9,555
Net realized and unrealized (losses) gains on investments		(97	)		318			2,073			3,040			2,385			9,483
Other income		155			—			—			—			12			—
Total revenues		169,441			91,007			110,259			116,535			102,097			102,789
Net losses and loss expenses		82,441			50,065			61,718			68,728			57,813			32,699
Acquisition costs		32,673			14,966			17,578			20,299			15,734			12,542
Interest expense		3,357			1,701			4,191			1,706			1,191			(598	)
Net foreign exchange losses		489			—			—			—			—			—
General and administrative expenses		14,820			8,959			8,174			8,857			7,223			9,189
Total losses and expenses		133,780			75,691			91,661			99,590			81,961			53,832
Income before taxes	$	35,661		$	15,316		$	18,598		$	16,945		$	20,136		$	48,957
Loss ratio		53.0	%		62.7	%		63.3	%		66.7	%		64.4	%		39.0	%
Acquisition cost ratio		21.0	%		18.8	%		18.0	%		19.7	%		17.5	%		15.0	%
General and administrative expense ratio		9.5	%		11.2	%		8.3	%		8.5	%		8.1	%		11.0	%
Combined ratio		83.5	%		92.7	%		89.6	%		94.9	%		90.0	%		65.0	%

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

11

ALTERRA CAPITAL HOLDINGS LIMITED

PRO FORMA ALTERRA REINSURANCE SEGMENT SELECTED FINANCIAL INFORMATION [a] (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE QUARTERS ENDED
	June 30, 2010			Mar. 31, 2010			Dec. 31, 2009			Sept. 30, 2009			June 30, 2009			March 31, 2009
Gross premiums written	$	197,146		$	460,618		$	125,447		$	210,882		$	262,938		$	461,141
Net premiums earned		226,291			215,050			230,516			238,953			221,120			220,103
Net losses and loss expenses		136,158			129,727			108,941			113,625			118,613			115,706
Acquisition costs		47,179			42,689			46,708			50,167			42,586			43,280
General and administrative expenses		16,527			16,824			23,680			19,726			18,520			19,201
Loss ratio		60.2	%		60.3	%		47.3	%		47.6	%		53.6	%		52.6	%
Acquisition cost ratio		20.8	%		19.9	%		20.3	%		21.0	%		19.3	%		19.7	%
General and administrative expense ratio		7.3	%		7.8	%		10.2	%		8.2	%		8.4	%		8.7	%
Combined ratio		88.3	%		88.0	%		77.8	%		76.8	%		81.3	%		81.0	%

[a] This information is based on historical Alterra reinsurance segment financial information adjusted to include Harbor Point historical financial information as though the amalgamation with Harbor Point had occurred on January 1, 2009. The financial information also includes adjustments to eliminate any intercompany transactions and to reflect the amortization of certain acquisition accounting fair value adjustments.

The pro forma information is provided for informational purposes only. The pro forma information does not necessarily represent results that would have occurred if the amalgamation had occurred on January 1, 2009, nor is it necessarily indicative of future results.

12

ALTERRA CAPITAL HOLDINGS LIMITED

U.S. SPECIALTY SEGMENT DATA (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE QUARTERS ENDED
	June 30, 2010			Mar. 31, 2010			Dec. 31, 2009			Sept. 30, 2009			June 30, 2009			June 30, 2008
Gross premiums written	$	97,487		$	76,887		$	66,210		$	69,419		$	81,016		$	51,916
Reinsurance premiums ceded		(6,852	)		(49,227	)		(36,517	)		(26,259	)		(51,659	)		(30,897	)
Net premiums written	$	90,635		$	27,660		$	29,693		$	43,160		$	29,357		$	21,019
Earned premiums	$	76,032		$	73,890		$	71,061		$	68,175		$	63,078		$	26,105
Earned premiums ceded		(28,588	)		(39,977	)		(42,886	)		(37,074	)		(41,657	)		(16,961	)
Net premiums earned		47,444			33,913			28,175			31,101			21,421			9,144
Net investment income		1,315			1,341			1,438			1,461			1,495			1,875
Net realized and unrealized (losses) gains on investments		(1	)		—			84			—			—			—
Other income		97			5			42			52			372			—
Total revenues		48,855			35,259			29,739			32,614			23,288			11,019
Net losses and loss expenses		29,052			21,363			16,312			21,266			13,149			6,756
Acquisition costs		9,135			3,674			1,628			1,926			2,723			(58	)
General and administrative expenses		7,986			8,472			10,034			7,804			5,635			7,083
Total losses and expenses		46,173			33,509			27,974			30,996			21,507			13,781
Income (loss) before taxes	$	2,682		$	1,750		$	1,765		$	1,618		$	1,781		$	(2,762	)
Loss ratio		61.2	%		63.0	%		57.9	%		68.4	%		61.4	%		73.9	%
Acquisition cost ratio		19.3	%		10.8	%		5.8	%		6.2	%		12.7	%		(0.7	%)
General and administrative expense ratio		16.8	%		25.0	%		35.6	%		25.1	%		26.3	%		77.5	%
Combined ratio		97.3	%		98.8	%		99.3	%		99.7	%		100.4	%		150.7	%

13

ALTERRA CAPITAL HOLDINGS LIMITED

ALTERRA AT LLOYD’S SEGMENT DATA (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE QUARTERS ENDED
	June 30, 2010			Mar. 31, 2010			Dec. 31, 2009			Sept. 30, 2009			June 30, 2009
Gross premiums written	$	48,802		$	72,117		$	18,344		$	21,087		$	45,363
Reinsurance premiums ceded		(13,233	)		(19,959	)		(921	)		(4,015	)		(10,647	)
Net premiums written	$	35,569		$	52,158		$	17,423		$	17,072		$	34,716
Earned premiums	$	40,286		$	37,460		$	31,189		$	29,147		$	36,418
Earned premiums ceded		(7,120	)		(7,469	)		(7,368	)		(4,572	)		(10,583	)
Net premiums earned		33,166			29,991			23,821			24,575			25,835
Net investment income		3,035			2,017			1,172			1,749			645
Net realized and unrealized (losses) gains on investments		(1,284	)		(182	)		3			1,400			720
Other income		173			178			183			(33	)		436
Total revenues		35,090			32,004			25,179			27,691			27,636
Net losses and loss expenses		12,397			16,258			10,514			10,028			13,457
Acquisition costs		6,070			5,767			3,339			5,250			6,395
Net foreign exchange (gains) losses		(1,182	)		(2,709	)		69			42			(1,656	)
General and administrative expenses		5,826			2,713			4,116			5,423			5,712
Total losses and expenses		23,111			22,029			18,038			20,743			23,908
Income before taxes	$	11,979		$	9,975		$	7,141		$	6,948		$	3,728
Loss ratio		37.4	%		54.2	%		44.1	%		40.8	%		52.1	%
Acquisition cost ratio		18.3	%		19.2	%		14.0	%		21.4	%		24.8	%
General and administrative expense ratio		17.5	%		9.1	%		17.3	%		22.0	%		22.1	%
Combined ratio		73.2	%		82.5	%		75.4	%		84.2	%		99.0	%

14

ALTERRA CAPITAL HOLDINGS LIMITED

LIFE AND ANNUITY REINSURANCE SEGMENT DATA (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE QUARTERS ENDED
	June 30, 2010			Mar. 31, 2010			Dec. 31, 2009			Sept. 30, 2009			June 30, 2009			June 30, 2008
Gross premiums written	$	802		$	863		$	2,007		$	128		$	41,023		$	93,598
Reinsurance premiums ceded		(25	)		(107	)		(267	)		(26	)		(27	)		(155	)
Net premiums written	$	777		$	756		$	1,740		$	102		$	40,996		$	93,443
Earned premiums	$	802		$	863		$	2,007		$	128		$	41,023		$	93,598
Earned premiums ceded		(25	)		(107	)		(267	)		(26	)		(27	)		(155	)
Net premiums earned		777			756			1,740			102			40,996			93,443
Net investment income		12,420			13,099			13,367			13,143			12,917			10,780
Net realized and unrealized (losses) gains on investments		(1,860	)		5,916			8,192			11,932			9,346			16,904
Other income		—			(28	)		(120	)		—			—			—
Total revenues		11,337			19,743			23,179			25,177			63,259			121,127
Claims and policy benefits		13,943			17,659			16,976			14,378			55,407			108,220
Acquisition costs		123			146			373			153			677			107
Interest expense		2,676			1,363			525			2,349			837			(247	)
General and administrative expenses		642			657			606			829			657			880
Total losses and expenses		17,384			19,825			18,480			17,709			57,578			108,960
(Loss) income before taxes	$	(6,047	)	$	(82	)	$	4,699		$	7,468		$	5,681		$	12,167

15

ALTERRA CAPITAL HOLDINGS LIMITED

SEGMENT GROSS PREMIUMS WRITTEN BY LINE OF BUSINESS (Unaudited)

(Expressed in thousands of United States Dollars)

		FOR THE QUARTERS ENDED
Gross Premiums Written by Type of Risk:		June 30, 2010			Mar. 31, 2010		Dec. 31, 2009			Sept. 30, 2009			June 30, 2009			June 30, 2008
Property & Casualty:
Insurance:
Aviation	S	$	6,615		$	2,349	$	39,520		$	13,495		$	10,634		$	9,614
Excess Liability	L		33,198			23,648		26,683			19,084			33,352			41,859
Professional Liability	L		65,216			27,573		45,059			39,146			63,258			48,215
Property	S		27,283			12,851		13,778			9,409			26,667			22,488
			132,312			66,421		125,040			81,134			133,911			122,176
Reinsurance [a]:
Agriculture	S		(2,513	)		35,806		2,212			(95	)		(233	)		62
Auto	S		66			—		—			—			—			—
Aviation	S		8,561			4,822		9,380			10,477			10,699			17,699
Credit/ Surety	L		(1,491	)		—		—			—			—			—
General Casualty	L		(857	)		13,051		5,781			7,279			(2,016	)		2,140
Marine & Energy	S		5,004			4,100		3,599			5,987			(343	)		(1,181	)
Medical Malpractice	L		7,813			27,155		11,086			2,567			17,437			24,694
Other	S		92			989		29			—			402			930
Professional Liability	L		32,005			11,919		25,609			20,992			15,219			11,500
Property	S		61,058			45,933		(2,375	)		13,541			33,692			37,774
Whole Account	S/L		2,362			2,573		2,947			2,546			1,588			2,674
Workers’ Compensation	L		7,478			8,503		8,464			30,824			18,751			5,310
			119,578			154,851		66,732			94,118			95,196			101,602
U.S. Specialty:
General Liability	L		27,625			23,014		18,756			27,267			22,816			11,950
Marine	S		17,996			16,063		15,443			16,168			14,968			10,022
Professional Liability	L		3,667			2,246		576			—			—			—
Property	S		48,199			35,564		31,435			25,984			43,232			29,944
			97,487			76,887		66,210			69,419			81,016			51,916
Alterra at Lloyd’s [b]:
Accident & Health	S		6,022			13,410		1,245			3,692			5,255			—
Aviation	S		2,565			4,403		2,611			—			—			—
Financial Institutions	L		4,846			6,088		5,446			6,873			7,679			—
International Casualty	L		6,182			13,684		—			—			—			—
Professional Liability	L		4,161			6,896		5,290			5,284			6,530			—
Property	S		25,026			27,636		3,752			5,238			25,899			—
			48,802			72,117		18,344			21,087			45,363			—
Aggregate Property & Casualty		$	398,179		$	370,276	$	276,326		$	265,758		$	355,486		$	275,694
Life & Annuity:
Annuity			6		$	—	$	—		$	—		$	—		$	92,821
Life			796			863		2,007			128			41,023			777
Aggregate Life & Annuity			802			863		2,007			128			41,023			93,598
Aggregate P&C and Life & Annuity		$	398,981		$	371,139	$	278,333		$	265,886		$	396,509		$	369,292
[a]    Includes the results for Harbor Point from May 12, 2010.
[b]    Includes the results for Alterra at Lloyd’s from November 6, 2008.
S = Short tail lines		$	207,155		$	203,926	$	120,629		$	103,896		$	170,872		$	127,352
L = Long tail lines			191,024			166,350		155,697			161,862			184,614			148,342
Aggregate Property & Casualty		$	398,179		$	370,276	$	276,326		$	265,758		$	355,486		$	275,694

16

ALTERRA CAPITAL HOLDINGS LIMITED

PRO FORMA ALTERRA REINSURANCE SEGMENT GROSS PREMIUMS WRITTEN BY LINE OF BUSINESS [a] (Unaudited)

(Expressed in thousands of United States Dollars)

		FOR THE QUARTERS ENDED
Gross Premiums Written by Type of Risk:		June 30, 2010			Mar. 31, 2010		Dec. 31, 2009		Sept. 30, 2009			June 30, 2009			Mar. 31, 2009
Agriculture	S	$	(4,643	)	$	55,944	$	2,153	$	(96	)	$	(262	)	$	91,196
Auto	S		14,359			18,063		19,531		12,828			11,288			15,148
Aviation	S		8,586			6,191		9,395		18,154			10,760			4,509
Credit/ Surety	L		1,530			23,555		9,058		369			2,440			8,828
General Casualty	L		6,724			42,398		15,607		31,167			10,225			36,892
Marine & Energy	S		5,220			21,128		4,033		8,565			(3,731	)		37,799
Medical Malpractice	L		6,424			33,804		11,093		7,077			21,783			36,417
Other	S		294			5,664		168		(57	)		485			3,011
Professional Liability	L		51,615			55,812		37,407		60,373			53,705			50,629
Property	S		96,745			138,958		2,260		34,240			118,581			142,118
Whole Account	S/L		3,095			47,135		6,578		4,569			18,503			5,369
Workers’ Compensation	L		7,197			11,966		8,164		33,693			19,161			29,225
Aggregate Pro Forma Reinsurance Segment		$	197,146		$	460,618	$	125,447	$	210,882		$	262,938		$	461,141

[a] This information is based on historical Alterra reinsurance segment gross premiums written adjusted to include Harbor Point historical gross premiums written as though the amalgamation with Harbor Point had occurred on January 1, 2009. The financial information also includes adjustments to eliminate any intercompany transactions. The pro forma information is provided for informational purposes only. The pro forma information does not necessarily represent results that would have occurred if the amalgamation with Harbor Point had occurred on January 1, 2009, nor is it necessarily indicative of future results.

17

ALTERRA CAPITAL HOLDINGS LIMITED

SCHEDULE OF SUPPLEMENTAL UNDERWRITING DATA–SIX MONTHS ENDED JUNE 30, 2010 (Unaudited) [d]

(Expressed in thousands of United States Dollars)

	Property & Casualty															Life & Annuity
	Insurance			Reinsurance			U.S. Specialty			Alterra at Lloyd’s			Total			Reinsurance			Corporate			Consolidated
Gross premiums written	$	198,733		$	274,429		$	174,374		$	120,919		$	768,455		$	1,665		$	—		$	770,120
Reinsurance premiums ceded		(84,833	)		(58,699	)		(56,079	)		(33,192	)		(232,803	)		(132	)		—			(232,935	)
Net premiums written	$	113,900		$	215,730		$	118,295		$	87,727		$	535,652		$	1,533		$	—		$	537,185
Earned premiums	$	196,915		$	270,472		$	149,922		$	77,746		$	695,055		$	1,665		$	—		$	696,720
Earned premiums ceded		(90,922	)		(35,012	)		(68,565	)		(14,589	)		(209,088	)		(132	)		—			(209,220	)
Net premiums earned		105,993			235,460			81,357			63,157			485,967			1,533			—			487,500
Net investment income		12,430			24,612			2,656			5,052			44,750			25,519			31,398			101,667
Net realized and unrealized gains (losses) on investments		203			221			(1	)		(1,466	)		(1,043	)		4,056			(11,377	)		(8,364	)
Net impairment losses recognized in earnings		—			—			—			—			—			—			(720	)		(720	)
Other income		(11	)		155			102			351			597			(28	)		50			619
Total revenues		118,615			260,448			84,114			67,094			530,271			31,080			19,351			580,702
Net losses and loss expenses		73,206			132,506			50,415			28,655			284,782			—			—			284,782
Claims and policy benefits		—			—			—			—			—			31,602			—			31,602
Acquisition costs		488			47,639			12,809			11,837			72,773			269			—			73,042
Interest expense		474			5,058			—			—			5,532			4,039			3,287			12,858
Net foreign exchange losses (gains)		—			489			—			(3,891	)		(3,402	)		—			316			(3,086	)
Merger and acquisition expenses		—			—			—			—			—			—			(49,826	)		(49,826	)
General and administrative expenses		12,398			23,779			16,458			8,539			61,174			1,299			24,704			87,177
Total losses and expenses		86,566			209,471			79,682			45,140			420,859			37,209			(21,519	)		436,549
Income (loss) before taxes	$	32,049		$	50,977		$	4,432		$	21,954		$	109,412		$	(6,129	)	$	40,870		$	144,153
Loss ratio [a]		69.1	%		56.3	%		62.0	%		45.4	%		58.6	%
Acquisition cost ratio [b]		0.5	%		20.2	%		15.7	%		18.7	%		15.0	%
General and administrative expense ratio [c]		11.6	%		10.1	%		20.2	%		13.5	%		12.6	%
Combined ratio		81.2	%		86.6	%		97.9	%		77.6	%		86.2	%

[a] The loss ratio is calculated by dividing net losses and loss expenses by net premiums earned for the property & casualty business

[b] The acquisition cost ratio is calculated by dividing acquisition costs by net premiums earned for the property & casualty business

[c] The general and administrative expense ratio is calculated by dividing general and administrative expenses by net premiums earned for the property & casualty business

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

18

ALTERRA CAPITAL HOLDINGS LIMITED

CONSOLIDATED UNDERWRITING RATIOS - SIX MONTHS ENDED JUNE 30, 2010 (Unaudited)

	Property & Casualty
	Insurance		Reinsurance [b]		U.S. Specialty		Alterra at Lloyd’s		Total
UNDERWRITING RATIOS
Loss ratio	69.1	%	56.3	%	62.0	%	45.4	%	58.6	%
Acquisition cost ratio	0.5	%	20.2	%	15.7	%	18.7	%	15.0	%
General and administrative expense ratio	11.6	%	10.1	%	20.2	%	13.5	%	12.6	%
Combined ratio	81.2	%	86.6	%	97.9	%	77.6	%	86.2	%
EFFECT OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT
FAVORABLE / (UNFAVORABLE)
Loss ratio [a]	14.0	%	8.8	%	0.9	%	7.4	%	8.5	%
NET OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT
UNDERWRITING RATIOS
Loss ratio	83.1	%	65.1	%	62.9	%	52.8	%	67.1	%
Acquisition cost ratio	0.5	%	20.2	%	15.7	%	18.7	%	15.0	%
General and administrative expense ratio	11.6	%	10.1	%	20.2	%	13.5	%	12.6	%
Combined ratio	95.2	%	95.4	%	98.8	%	85.0	%	94.7	%

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

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

CONSOLIDATED UNDERWRITING RATIOS - SIX MONTHS ENDED JUNE 30, 2009 (Unaudited)

	Property & Casualty
	Insurance		Reinsurance		U.S. Specialty		Alterra at Lloyd’s		Total		Historical Harbor Point [c]
UNDERWRITING RATIOS
Loss ratio	73.6	%	66.3	%	58.9	%	50.1	%	65.4	%	49.0	%
Acquisition cost ratio	(1.9	%)	17.7	%	9.2	%	20.5	%	11.9	%	20.9	%
General and administrative expense ratio	10.5	%	7.9	%	31.3	%	22.3	%	13.0	%	9.2	%
Combined ratio	82.2	%	91.9	%	99.4	%	92.9	%	90.3	%	79.1	%
EFFECT OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT
FAVORABLE / (UNFAVORABLE)
Loss ratio [a]	15.3	%	9.0	%	2.2	%	(1.7	%)	8.6	%	(0.2	%)
NET OF PRIOR ACCIDENT YEAR RESERVE DEVELOPMENT
UNDERWRITING RATIOS
Loss ratio	88.9	%	75.3	%	61.1	%	48.4	%	74.0	%	48.8	%
Acquisition cost ratio	(1.9	%)	17.7	%	9.2	%	20.5	%	11.9	%	20.9	%
General and administrative expense ratio	10.5	%	7.9	%	31.3	%	22.3	%	13.0	%	9.2	%
Combined ratio	97.5	%	100.9	%	101.6	%	91.2	%	98.9	%	78.9	%

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

[c] Provided for informational purposes only.

19

ALTERRA CAPITAL HOLDINGS LIMITED

INSURANCE SEGMENT DATA (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE SIX MONTHS ENDED									FOR THE YEARS ENDED
	June 30, 2010			June 30, 2009			June 30, 2008			Dec. 31, 2009			Dec. 31, 2008
Gross premiums written	$	198,733		$	221,593		$	195,380		$	427,767		$	389,368
Reinsurance premiums ceded		(84,833	)		(104,192	)		(94,783	)		(212,083	)		(198,098	)
Net premiums written	$	113,900		$	117,401		$	100,597		$	215,684		$	191,270
Earned premiums	$	196,915		$	203,748		$	184,828		$	417,090		$	371,080
Earned premiums ceded		(90,922	)		(102,896	)		(93,978	)		(211,127	)		(189,125	)
Net premiums earned		105,993			100,852			90,850			205,963			181,955
Net investment income		12,430			10,963			8,380			22,875			18,437
Net realized and unrealized gains (losses) on investments		203			2,239			1,361			4,430			(23,499	)
Other income		(11	)		1,147			1,112			1,238			1,112
Total revenues		118,615			115,201			101,703			234,506			178,005
Net losses and loss expenses		73,206			74,273			69,805			132,355			142,150
Acquisition costs		488			(1,872	)		(1,202	)		(1,233	)		(2,810	)
Interest expense		474			—			—			781			—
General and administrative expenses		12,398			10,544			10,852			24,623			21,101
Total losses and expenses		86,566			82,945			79,455			156,526			160,441
Income before taxes	$	32,049		$	32,256		$	22,248		$	77,980		$	17,564
Loss ratio		69.1	%		73.6	%		76.8	%		64.3	%		78.1	%
Acquisition cost ratio		0.5	%		(1.9	%)		(1.3	%)		(0.6	%)		(1.5	%)
General and administration expense ratio		11.6	%		10.5	%		11.9	%		12.0	%		11.6	%
Combined ratio		81.2	%		82.2	%		87.5	%		75.6	%		88.2	%

20

ALTERRA CAPITAL HOLDINGS LIMITED

REINSURANCE SEGMENT DATA (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE SIX MONTHS ENDED									FOR THE YEARS ENDED
	June 30, 2010 [a]			June 30, 2009			June 30, 2008			Dec. 31, 2009			Dec. 31, 2008
Gross premiums written	$	274,429		$	328,178		$	305,027		$	489,028		$	419,509
Reinsurance premiums ceded		(58,699	)		(69,468	)		(57,923	)		(80,005	)		(92,421	)
Net premiums written	$	215,730		$	258,710		$	247,104		$	409,023		$	327,088
Earned premiums	$	270,472		$	236,536		$	200,531		$	476,434		$	426,157
Earned premiums ceded		(35,012	)		(49,344	)		(29,763	)		(88,578	)		(84,366	)
Net premiums earned		235,460			187,192			170,768			387,856			341,791
Net investment income		24,612			19,203			19,440			40,220			36,069
Net realized and unrealized gains (losses) on investments		221			5,427			2,998			10,540			(51,096	)
Other income		155			12			—			12			—
Total revenues		260,448			211,834			193,206			438,628			326,764
Net losses and loss expenses		132,506			124,028			91,336			254,474			218,749
Acquisition costs		47,639			33,197			22,506			71,074			51,328
Interest expense		5,058			694			2,445			6,591			7,516
Net foreign exchange losses		489			—			—			—			—
General and administrative expenses		23,779			14,747			15,795			31,778			28,548
Total losses and expenses		209,471			172,666			132,082			363,917			306,141
Income before taxes	$	50,977		$	39,168		$	61,124		$	74,711		$	20,623
Loss ratio		56.3	%		66.3	%		53.5	%		65.6	%		64.0	%
Acquisition cost ratio		20.2	%		17.7	%		13.2	%		18.3	%		15.0	%
General and administration expense ratio		10.1	%		7.9	%		9.2	%		8.2	%		8.4	%
Combined ratio		86.6	%		91.9	%		75.9	%		92.1	%		87.4	%

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

21

ALTERRA CAPITAL HOLDINGS LIMITED

U.S. SPECIALTY SEGMENT DATA (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE SIX MONTHS ENDED									FOR THE YEARS ENDED
	June 30, 2010			June 30, 2009			June 30, 2008			Dec. 31, 2009			Dec. 31, 2008
Gross premiums written	$	174,374		$	149,849		$	81,268		$	285,478		$	194,353
Reinsurance premiums ceded		(56,079	)		(92,320	)		(50,799	)		(155,096	)		(118,710	)
Net premiums written	$	118,295		$	57,529		$	30,469		$	130,382		$	75,643
Earned premiums	$	149,922		$	117,434		$	42,688		$	256,670		$	121,172
Earned premiums ceded		(68,565	)		(74,608	)		(27,848	)		(154,568	)		(77,374	)
Net premiums earned		81,357			42,826			14,840			102,102			43,798
Net investment income		2,656			3,088			3,810			5,987			7,235
Net realized and unrealized (losses) gains on investments		(1	)		148			—			232			(523	)
Other income		102			220			—			314			303
Total revenues		84,114			46,282			18,650			108,635			50,813
Net losses and loss expenses		50,415			25,234			10,610			62,812			30,376
Acquisition costs		12,809			3,947			285			7,501			3,039
General and administrative expenses		16,458			13,391			12,276			31,229			27,235
Total losses and expenses		79,682			42,572			23,171			101,542			60,650
Income (loss) before taxes	$	4,432		$	3,710		$	(4,521	)	$	7,093		$	(9,837	)
Loss ratio		62.0	%		58.9	%		71.5	%		61.5	%		69.4	%
Acquisition cost ratio		15.7	%		9.2	%		1.9	%		7.4	%		6.9	%
General and administration expense ratio		20.2	%		31.3	%		82.7	%		30.6	%		62.2	%
Combined ratio		97.9	%		99.4	%		156.1	%		99.5	%		138.5	%

22

ALTERRA CAPITAL HOLDINGS LIMITED

ALTERRA AT LLOYD’S SEGMENT DATA (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE SIX MONTHS ENDED						FOR THE YEARS ENDED
	June 30, 2010			June 30, 2009			Dec. 31, 2009			Dec. 31, 2008 [a]
Gross premiums written	$	120,919		$	89,542		$	128,973		$	8,844
Reinsurance premiums ceded		(33,192	)		(27,948	)		(32,884	)		(4,294	)
Net premiums written	$	87,727		$	61,594		$	96,089		$	4,550
Earned premiums	$	77,746		$	64,664		$	125,000		$	9,663
Earned premiums ceded		(14,589	)		(17,967	)		(29,907	)		(5,349	)
Net premiums earned		63,157			46,697			95,093			4,314
Net investment income		5,052			1,467			4,388			542
Net realized and unrealized (losses) gains on investments		(1,466	)		1,187			2,590			508
Other income		351			508			658			160
Total revenues		67,094			49,859			102,729			5,524
Net losses and loss expenses		28,655			23,416			43,958			2,470
Acquisition costs		11,837			9,547			18,136			981
Net foreign exchange gains		(3,891	)		(5,166	)		(5,055	)		(382	)
General and administrative expenses		8,539			10,433			19,972			2,525
Total losses and expenses		45,140			38,230			77,011			5,594
Income (loss) before taxes	$	21,954		$	11,629		$	25,718		$	(70	)
Loss ratio		45.4	%		50.1	%		46.2	%		57.3	%
Acquisition cost ratio		18.7	%		20.5	%		19.1	%		22.7	%
General and administration expense ratio		13.5	%		22.3	%		21.0	%		58.5	%
Combined ratio		77.6	%		92.9	%		86.3	%		138.5	%

[a] Includes the results for Alterra at Lloyd’s from November 6, 2008.

23

ALTERRA CAPITAL HOLDINGS LIMITED

LIFE AND ANNUITY REINSURANCE SEGMENT DATA (Unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE SIX MONTHS ENDED									FOR THE YEARS ENDED
	June 30, 2010			June 30, 2009			June 30, 2008			Dec. 31, 2009			Dec. 31, 2008
Gross premiums written	$	1,665		$	41,620		$	94,251		$	43,755		$	242,176
Reinsurance premiums ceded		(132	)		(120	)		(286	)		(413	)		(524	)
Net premiums written	$	1,533		$	41,500		$	93,965		$	43,342		$	241,652
Earned premiums	$	1,665		$	41,620		$	94,251		$	43,755		$	242,176
Earned premiums ceded		(132	)		(120	)		(286	)		(413	)		(524	)
Net premiums earned		1,533			41,500			93,965			43,342			241,652
Net investment income		25,519			24,483			20,585			50,993			40,058
Net realized and unrealized gains (losses) on investments		4,056			17,214			6,535			37,338			(100,921	)
Other income		(28	)		—			—			(120	)		—
Total revenues		31,080			83,197			121,085			131,553			180,789
Claims and policy benefits		31,602			69,739			123,175			101,093			301,526
Acquisition costs		269			870			259			1,396			(159	)
Interest expense		4,039			454			2,244			3,328			6,818
General and administrative expenses		1,299			1,351			1,491			2,786			2,917
Total losses and expenses		37,209			72,414			127,169			108,603			311,102
(Loss) income before taxes	$	(6,129	)	$	10,783		$	(6,084	)	$	22,950		$	(130,313	)

24

ALTERRA CAPITAL HOLDINGS LIMITED

SEGMENT GROSS PREMIUMS WRITTEN BY LINE OF BUSINESS (Unaudited)

(Expressed in thousands of United States Dollars)

		FOR THE SIX MONTHS ENDED							FOR THE YEARS ENDED
Gross Premiums Written by Type of Risk:		June 30, 2010			June 30, 2009		June 30, 2008		Dec. 31, 2009		Dec. 31, 2008
Property & Casualty:
Insurance:
Aviation	S	$	8,964		$	16,819	$	12,813	$	69,834	$	53,034
Excess Liability	L		56,846			68,000		75,774		113,767		123,490
Professional Liability	L		92,789			95,699		73,716		179,904		159,140
Property	S		40,134			41,075		33,077		64,262		53,704
			198,733			221,593		195,380		427,767		389,368
Reinsurance [a]:
Agriculture	S		33,293			87,433		85,054		89,550		80,454
Auto	S		66			—		—		—		—
Aviation	S		13,383			14,858		23,520		34,715		31,555
Credit/ Surety	L		(1,491	)		—		—		—		—
General Casualty	L		12,194			16,125		7,352		29,185		10,165
Marine & Energy	S		9,104			8,735		5,274		18,321		12,769
Medical Malpractice	L		34,968			53,830		56,869		67,483		77,133
Other	S		1,081			2,268		4,018		2,297		1,934
Professional Liability	L		43,924			24,930		23,763		71,531		38,718
Property	S		106,991			75,873		79,230		87,039		99,280
Whole Account	S/L		4,935			5,963		7,887		11,456		12,906
Workers’ Compensation	L		15,981			38,163		12,060		77,451		54,595
			274,429			328,178		305,027		489,028		419,509
U.S. Specialty:
General Liability	L		50,639			41,759		20,422		87,782		59,838
Marine	S		34,059			29,749		14,392		61,360		38,667
Professional Liability	L		5,913			—		—		576		—
Property	S		83,763			78,341		46,454		135,760		95,848
			174,374			149,849		81,268		285,478		194,353
Alterra at Lloyd’s [b]:
Accident & Health	S		19,432			17,665		—		22,602		408
Aviation	S		6,968			—		—		2,611		—
Financial Institutions	L		10,934			11,503		—		23,822		4,062
International Casualty	L		19,866			—		—		—		—
Professional Liability	L		11,057			9,315		—		19,889		2,928
Property	S		52,662			51,059		—		60,049		1,446
			120,919			89,542		—		128,973		8,844
Aggregate Property & Casualty		$	768,455		$	789,162	$	581,675	$	1,331,246	$	1,012,074
Life & Annuity:
Annuity		$	6		$	—	$	92,821	$	—	$	239,555
Life			1,659			41,620		1,430		43,755		2,621
Aggregate Life & Annuity			1,665			41,620		94,251		43,755		242,176
Aggregate P&C and Life & Annuity		$	770,120		$	830,782	$	675,926	$	1,375,001	$	1,254,250
[a]    Includes the results for Harbor Point from May 12, 2010.
[b]    Includes the results for Alterra at Lloyd’s from November 6, 2008.
S = Short tail lines		$	412,368		$	423,875	$	303,832	$	648,400	$	469,099
L = Long tail lines			356,087			365,287		277,843		682,846		542,975
Aggregate Property & Casualty		$	768,455		$	789,162	$	581,675	$	1,331,246	$	1,012,074

25

ALTERRA CAPITAL HOLDINGS LIMITED

AMALGAMATION WITH HARBOR POINT (Unaudited)

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

Number of Harbor Point common shares (including unvested restricted Harbor Point common shares) outstanding at May 12, 2010			16,542,489
Exchange ratio			3.7769
Total Alterra common shares issued [a]			62,479,281
Closing price of Alterra common shares on May 12, 2010		$	22.98
Purchase price before adjustments for stock based compensation			1,435,774
Fair value of Harbor Point options and Harbor Point warrants outstanding at May 12, 2010			74,278
Unrecognized compensation on unvested Harbor Point options and restricted Harbor Point common shares			(28,265	)
Total purchase price		$	1,481,787
Fair value of assets acquired:
Cash and investments	2,662,968
Net premiums receivables	354,496
Other assets	30,149
Tangible assets acquired			3,047,613
Fair value of intangible assets [b]			12,200
Fair value of liabilities acquired:
Net loss reserves	836,677
Net unearned premiums	370,500
Other liabilities	275,061
Liabilities acquired			1,482,238
Negative goodwill gain		$	95,788

[a] Adjusted for rounding

[b] Provisional estimate

26

ALTERRA CAPITAL HOLDINGS LIMITED

INVESTMENT PORTFOLIO (Unaudited)

(Expressed in thousands of United States Dollars)

	Carrying Value								Fair Value
Type of Investment	As at June 30, 2010		Investment Distribution		As at Dec. 31, 2009		Investment Distribution		As at June 30, 2010		Investment Distribution		As at Dec. 31, 2009		Investment Distribution
Cash and cash equivalents	$	741,684	9.6	%	$	702,278	13.4	%	$	741,684	9.4	%	$	702,278	13.3	%
U.S. government and agencies		1,130,700	14.6	%		525,427	10.0	%		1,130,700	14.4	%		525,427	9.9	%
Non-U.S. governments		74,108	1.0	%		82,027	1.5	%		74,108	0.9	%		82,027	1.6	%
Corporate securities		2,697,593	34.9	%		1,375,999	26.2	%		2,697,593	34.5	%		1,375,999	26.0	%
Municipal securities		208,628	2.7	%		83,658	1.6	%		208,628	2.7	%		83,658	1.6	%
Asset-backed securities		98,265	1.3	%		102,006	1.9	%		98,265	1.3	%		102,006	1.9	%
Residential mortgage-backed securities		1,115,574	14.4	%		763,974	14.5	%		1,115,574	14.2	%		763,974	14.5	%
Commercial mortgage-backed securities		357,352	4.6	%		302,961	5.8	%		357,352	4.6	%		302,961	5.7	%
Fixed maturities carried at fair value	$	5,682,220	73.5	%	$	3,236,052	61.5	%	$	5,682,220	72.6	%	$	3,236,052	61.2	%
Other investments carried at fair value	$	436,757	5.6	%	$	318,073	6.0	%	$	436,757	5.6	%	$	318,073	6.0	%
Total investments carried at fair value	$	6,860,661	88.7	%	$	4,256,403	80.9	%	$	6,860,661	87.6	%	$	4,256,403	80.5	%
U.S. government and agencies	$	22,688	0.3	%	$	14,050	0.3	%	$	23,852	0.3	%	$	13,535	0.3	%
Non-U.S. governments		492,728	6.4	%		573,250	10.9	%		556,008	7.1	%		584,284	11.0	%
Corporate securities		356,235	4.6	%		418,647	7.9	%		387,443	5.0	%		435,732	8.2	%
Fixed maturities carried at amortized cost	$	871,651	11.3	%	$	1,005,947	19.1	%	$	967,303	12.4	%	$	1,033,551	19.5	%
Total invested assets	$	7,732,312	100.0	%	$	5,262,350	100.0	%	$	7,827,964	100.0	%	$	5,289,954	100.0	%
As at June 30, 2010, the weighted average book yield of the cash and fixed maturities portfolio was 3.33%, and the weighted average duration was 4.0 years.

Credit Ratings	As at June 30, 2010		Ratings Distribution		As at Dec. 31, 2009		Ratings Distribution		As at June 30, 2010		Ratings Distribution		As at Dec. 31, 2009		Ratings Distribution
U.S. government and agencies [a]	$	2,148,230	32.8	%	$	1,214,895	28.6	%	$	2,148,230	32.3	%	$	1,214,895	28.5	%
AAA		1,162,805	17.7	%		720,364	17.0	%		1,162,805	17.5	%		720,364	16.9	%
AA		607,171	9.3	%		325,997	7.7	%		607,171	9.1	%		325,997	7.6	%
A		1,334,267	20.3	%		731,723	17.3	%		1,334,267	20.1	%		731,723	17.1	%
BBB		207,243	3.2	%		100,841	2.4	%		207,243	3.1	%		100,841	2.4	%
BB		29,931	0.5	%		34,781	0.8	%		29,931	0.5	%		34,781	0.8	%
B or lower		192,573	2.9	%		107,451	2.5	%		192,573	2.9	%		107,451	2.5	%
Fixed maturities carried at fair value	$	5,682,220	86.7	%	$	3,236,052	76.3	%	$	5,682,220	85.5	%	$	3,236,052	75.8	%
U.S. Government and Agencies		22,688	0.4	%		14,050	0.3	%		23,852	0.4	%		13,535	0.3	%
AAA		586,033	8.9	%		717,954	16.9	%		660,723	9.9	%		734,595	17.2	%
AA		110,509	1.7	%		101,675	2.4	%		118,070	1.8	%		105,296	2.5	%
A		138,655	2.1	%		158,141	3.7	%		149,101	2.2	%		165,172	3.9	%
BBB		12,498	0.2	%		12,672	0.3	%		14,098	0.2	%		13,478	0.3	%
BB		—	—			—	—			—	—			—	—
B or lower		1,268	0.0	%		1,455	0.1	%		1,459	0.0	%		1,475	0.0	%
Fixed maturities carried at amortized cost	$	871,651	13.3	%	$	1,005,947	23.7	%	$	967,303	14.5	%	$	1,033,551	24.2	%
Total fixed maturities	$	6,553,871	100.0	%	$	4,241,999	100.0	%	$	6,649,523	100.0	%	$	4,269,603	100.0	%
[a]    Included within US government and agencies are agency-issued residential mortgage-backed securities with a fair value of $1,017,530 (December 31, 2009: $689,468)

	Quarter Ended 30-Jun-10			Quarter Ended 31-Mar-10			Quarter Ended 31-Dec-09			Quarter Ended 30-Sep-09			Quarter Ended 30-Jun-09			Quarter Ended 30-Jun-08
Net investment income	$	53,277		$	48,390		$	44,668		$	42,830		$	41,755		$	42,507
Realized and unrealized (losses) gains on trading fixed maturities		(1,284	)		(182	)		3			1,400			720			—
Net realized gains (losses) on available for sale fixed maturities		2,425			838			3,234			(655	)		(654	)		1,337
Change in fair value of hedge funds		(3,323	)		7,370			13,555			23,200			21,514			39,202
Change in fair value of non-hedge fund other investments		(12,604	)		(1,604	)		533			583			(108	)		291
Net realized and unrealized (losses) gains on investments	$	(14,786	)	$	6,422		$	17,325		$	24,528		$	21,472		$	40,830
Net impairment losses recognized in earnings	$	(300	)	$	(420	)	$	(925	)	$	(139	)	$	(2,014	)	$	(3,130	)

27

ALTERRA CAPITAL HOLDINGS LIMITED

INVESTMENT PORTFOLIO (Unaudited)

(Expressed in thousands of United States Dollars)

								Periodic Rate of Return
			As at June 30, 2010					Last 3 Months		Year to Date		Last 12 months		Last 60 months*
Cash and fixed maturities			$	7,295,555				2.58	%	4.31	%	9.22	%	4.71	%
Convertible arbitrage			$	—				0.00	%	0.00	%	0.00	%	0.15	%
Distressed securities				58,131				(0.52	%)	3.75	%	19.73	%	7.55	%
Diversified arbitrage				31,376				0.75	%	4.49	%	12.99	%	(1.67	%)
Emerging markets				16,663				1.75	%	1.60	%	14.85	%	5.63	%
Event-driven arbitrage				36,583				(4.11	%)	(2.89	%)	11.34	%	5.91	%
Fixed income arbitrage				13,541				3.16	%	1.53	%	7.34	%	15.44	%
Fund of funds				50,271				(1.06	%)	(1.06	%)	(1.06	%)	(0.21	%)
Global macro				35,037				1.85	%	4.62	%	8.18	%	6.51	%
Long / short credit				9,733				0.17	%	3.26	%	13.34	%	6.48	%
Long / short equity				104,406				(1.68	%)	0.38	%	5.38	%	4.76	%
Opportunistic				2,724				(0.29	%)	(1.47	%)	(6.12	%)	(7.93	%)
Hedge funds **				358,465				(0.69	%)	1.29	%	8.08	%	3.57	%
Catastrophe bonds				46,252
Derivatives				2,895
Structured deposits				24,250
Equity investments				4,895
Other investments			$	436,757
Total invested assets			$	7,732,312
Hedge Fund Investment Return Data:
HFRI Fund of Funds Composite Index [a]								(2.55	%)	(1.17	%)	4.73	%	2.34	%
Hedge Fund Performance History – 60 months ended June 30, 2010
Annual standard deviation	6.84	%
Monthly performance	2010		2009			2008		2007		2006		2005
January	0.79	%		2.13	%	(1.37	%)	1.28	%	2.75	%
February	0.17	%		0.65	%	1.83	%	1.50	%	0.39	%
March	1.02	%		(0.76	%)	(2.58	%)	1.90	%	1.22	%
April	0.88	%		(0.84	%)	(0.13	%)	2.30	%	1.89	%
May	(0.73	%)		2.45	%	2.51	%	2.59	%	(1.74	%)
June	(0.83	%)		1.53	%	0.93	%	0.85	%	(0.66	%)
July				1.40	%	(4.12	%)	0.99	%	(0.71	%)	1.33	%
August				0.78	%	(2.14	%)	(1.62	%)	0.02	%	0.98	%
September				1.71	%	(7.31	%)	1.85	%	(2.04	%)	1.84	%
October				1.53	%	(4.85	%)	4.15	%	1.37	%	(1.45	%)
November				0.35	%	(1.75	%)	0.10	%	1.81	%	0.61	%
December				0.77	%	(1.92	%)	(0.13	%)	1.96	%	1.37	%
Quarterly performance
Q1	1.99	%		2.00	%	(2.15	%)	4.75	%	4.41	%
Q2	(0.69	%)		3.14	%	3.33	%	5.83	%	(0.54	%)
Q3				3.94	%	(13.03	%)	1.18	%	(2.72	%)	4.21	%
Q4				2.66	%	(8.31	%)	4.11	%	5.22	%	0.51	%
Period return	1.28	%		12.27	%	(19.38	%)	16.78	%	6.30	%	4.75	%

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

[a] As reported by HFRI as at August 2, 2010

* Annualized

** Net of all fees

28

ALTERRA CAPITAL HOLDINGS LIMITED

LARGEST 25 CORPORATE HOLDINGS - AS AT JUNE 30, 2010 (Unaudited)

(Expressed in thousands of United States Dollars)

	JUNE 30, 2010
	Amortized Cost		Fair Value
Issuer
JP Morgan Chase & Co		53,220		54,643
Bank of America		46,671		47,251
Morgan Stanley		41,998		42,312
Goldman Sachs Group Inc		39,968		40,113
Wells Fargo & Co		38,896		39,239
Lloyds Banking Group Plc		33,384		34,389
Citigroup Inc		27,169		27,586
Credit Suisse Group		26,931		27,337
Federal Republic of Germany		26,052		26,788
General Electric		25,847		26,449
Metlife Inc		25,035		25,425
Duke Energy Corp		21,704		22,902
UK Financial Investments Ltd.		21,365		21,241
United Parcel Service Inc		20,584		21,381
XCEL Energy Inc		20,531		21,488
Dominion Resources Inc		18,985		19,236
HSBC Holdings Plc		18,469		18,583
General Dynamics Corp		17,894		18,090
United Technologies Corp		17,016		18,147
Southern Co		16,723		17,726
Berkshire Hathaway Inc		14,170		14,431
Rabobank Nederland NV		14,063		14,176
Deere & Co		13,893		14,141
Deutsche Bank AG		13,712		14,188
Commonwealth Bank of Australia		13,687		13,663
	$	627,967	$	640,925

29

ALTERRA CAPITAL HOLDINGS LIMITED

SHAREHOLDER RETURN ANALYSIS (Unaudited)

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

	FOR THE SIX MONTHS ENDED						FOR THE YEARS ENDED
	June 30, 2010			June 30, 2009			2009			2008
Income and Return on Equity:
Net income (loss)	$	139,828		$	88,297		$	246,215		$	(175,318	)
Net operating income (loss)	$	99,455		$	94,706		$	208,907		$	(143,752	)
Average shareholders’ equity	$	1,955,731		$	1,292,381		$	1,398,872		$	1,426,927
Annualized return on average shareholders’ equity [a]		14.3	%		13.7	%		17.6	%		(12.3	%)
Annualized net operating return on average shareholders’ equity [a]		10.2	%		14.7	%		14.9	%		(10.1	%)
Book value and dividends per share:
Diluted book value per share	$	24.55		$	23.53		$	27.36		$	22.46
Dividends paid per share	$	2.70		$	0.18		$	0.38		$	0.36
Change in diluted book value per share		(10.3	%)		4.8	%		21.8	%		(12.2	%)
Dividend payout ratio [b]		20.6	%		0.8	%		1.7	%		1.3	%
Total return to shareholders [c]		10.3	%		5.6	%		23.5	%		(10.9	%)

[a] Annualized return on average shareholders’ equity is defined as annualized net income divided by the average of the quarterly shareholders’ equity balances. Annualized net operating return on average shareholders’ equity is defined as annualized net operating income divided by the average of the quarterly shareholders’ equity balances. The average shareholders’ equity for the quarter and six months ended June 30, 2010 has been weighted to include Harbor Point from May 12, 2010.

[b] Dividend payout ratio is calculated as dividends paid divided by beginning shareholders’ equity.

[c] Total return to shareholders is calculated as the change in diluted book value per share plus the dividend payout ratio.

30

ALTERRA CAPITAL HOLDINGS LIMITED

EARNINGS PER SHARE INFORMATION (Unaudited)

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

	FOR THE QUARTERS ENDED				FOR THE SIX MONTHS ENDED
	June 30, 2010		June 30, 2009		June 30, 2010		June 30, 2009
Net income available to common shareholders	$	103,447	$	43,758	$	139,828	$	88,297
Denominator:
Weighted average shares - basic
Outstanding [a]		90,745,497		56,667,784		73,429,084		56,467,022
Unvested restricted share units		296,804		398,514		350,363		384,773
		91,042,301		57,066,298		73,779,447		56,851,795
Share equivalents:
Warrants		420,613		473,707		526,539		462,437
Options		193,827		97,225		214,258		96,296
Employee Stock Purchase Plan		4,689		1,216		4,675		1,216
Weighted average shares - diluted [b]		91,661,430		57,638,446		74,524,919		57,411,744
Basic earnings per share	$	1.14	$	0.77	$	1.90	$	1.55
Diluted earnings per share	$	1.13	$	0.76	$	1.88	$	1.54

[a] Includes weighted average unvested restricted shares

[b] Computed using the treasury method. The treasury method assumes that the proceeds received from the exercise of options or warrants will be used to repurchase the Company’s common shares at the average market price during the period of calculation.

31

ALTERRA CAPITAL HOLDINGS LIMITED

OPERATING INCOME RECONCILIATION (Unaudited)

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

	FOR THE QUARTERS ENDED						FOR THE SIX MONTHS ENDED
	June 30, 2010			June 30, 2009			June 30, 2010			June 30, 2009
Net income	$	103,447		$	43,758		$	139,828		$	88,297
Net realized and unrealized losses on non-hedge fund investments, net of tax [a]		11,540			2,162			12,776			1,877
Net foreign exchange gains, net of tax		(298	)		(2,932	)		(1,978	)		(5,476	)
Merger and acquisition expenses, net of tax		(55,915	)		4,785			(51,171	)		10,008
Net operating income		58,774			47,773			99,455			94,706
Weighted average shares outstanding:
Basic		91,042,301			57,066,298			73,779,447			56,851,795
Diluted		91,661,430			57,638,446			74,524,919			57,411,744
Basic per share data
Earnings per share	$	1.14		$	0.77		$	1.90		$	1.55
Net realized and unrealized losses on non-hedge fund investments, net of tax [a]		0.12			0.04			0.17			0.03
Net foreign exchange gains, net of tax		—			(0.05	)		(0.03	)		(0.10	)
Merger and acquisition expenses, net of tax		(0.61	)		0.08			(0.69	)		0.18
Net operating income per share	$	0.65		$	0.84		$	1.35		$	1.66
Diluted per share data
Diluted earnings per share	$	1.13		$	0.76		$	1.88		$	1.54
Net realized and unrealized losses on non-hedge fund investments, net of tax [a]		0.12			0.04			0.17			0.03
Net foreign exchange gains, net of tax		—			(0.05	)		(0.03	)		(0.09	)
Merger and acquisition expenses, net of tax		(0.61	)		0.08			(0.69	)		0.17
Net operating income per diluted share	$	0.64		$	0.83		$	1.33		$	1.65

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

32

ALTERRA CAPITAL HOLDINGS LIMITED

BOOK VALUE PER SHARE (Unaudited)

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

	As at June 30, 2010		As at Dec. 31, 2009
Price per share at period end	$	18.78	$	22.30
Shareholders’ equity	$	2,926,967	$	1,564,633
Goodwill and intangible assets	$	60,670	$	48,686
Tangible book value	$	2,866,297	$	1,515,947
Basic common shares outstanding [a]		118,643,363		55,867,125
Add: unvested restricted stock units		201,618		406,514
Add: dilutive impact of warrants outstanding		197,219		683,163
Add: dilutive impact of options outstanding		198,454		221,656
Diluted shares outstanding [b]		119,240,654		57,178,458
Basic book value per share	$	24.67	$	28.01
Diluted book value per share	$	24.55	$	27.36
Basic tangible book value per share	$	24.16	$	27.13
Diluted tangible book value per share	$	24.04	$	26.51

[a] Includes unvested restricted shares

[b] Computed using the treasury method. The treasury method assumes that the proceeds received from the exercise of options or warrants will be used to repurchase the Company’s common shares at the period-end market price.

33

ALTERRA CAPITAL HOLDINGS LIMITED

REGULATION G

In presenting the Company’s results, management has included and discussed net operating income, net operating income per share, net operating income per diluted share, annualized net operating return on average shareholders’ equity, tangible book value per share and diluted tangible book value per share. These measures are “non-GAAP financial measures” as defined in Regulation G. Management believes that these non-GAAP financial measures, which may be defined differently by other companies, allow for a more complete understanding of the Company’s business. These measures, however, should not be viewed as a substitute for those determined in accordance with U.S. GAAP. The reconciliation of such measures to their respective most directly comparable U.S. GAAP financial measures is presented in the attached financial information in accordance with Regulation G.

Net operating income is defined as net income excluding after-tax net realized and unrealized gains or losses on non- hedge fund investments (this includes net realized and unrealized gains or losses on trading securities, net realized gains or losses on available for sale securities, net impairment losses recognized in earnings, changes in fair value of investment derivatives, catastrophe bonds, structured deposits and earnings from equity method investments), after-tax net foreign exchange gains or losses and after-tax merger and acquisition expenses. Net operating income per share and per diluted share is defined as the net operating income divided by the weighted average common shares or weighted average diluted common shares, respectively. We believe that this non-GAAP measure provides a better indication of management performance as realized and unrealized gains and losses on fixed maturities may fluctuate from period to period and foreign exchange gains and losses are typically outside the control of management. Merger and acquisition expenses are not indicative of expenses fundamental to the business and may fluctuate from period to period.

Annualized net operating return on average shareholders’ equity is defined as annualized net operating income divided by the average of the beginning and ending shareholders’ equity. Tangible book value is defined as shareholders’ equity excluding goodwill and intangible assets. Tangible book value per share and diluted tangible book value per share is defined as the tangible book value divided by the common shares outstanding or diluted common shares outstanding, respectively. These non-GAAP measures allow management to assess how the Company has performed in terms of wealth generated for its shareholders.

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ALTERRA CAPITAL HOLDINGS LIMITED

Pro Forma Combined - Alterra Capital Holdings Limited and Harbor Point Limited

Selected Financial Information

The following presentation is for informational purposes only

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ALTERRA CAPITAL HOLDINGS LIMITED

PRO FORMA COMBINED STATEMENTS OF INCOME [a] (unaudited)

(Expressed in thousands of United States Dollars)

	FOR THE QUARTERS ENDED
	June 30, 2010			Mar. 31, 2010			Dec. 31, 2009			Sept. 30, 2009			June 30, 2009			Mar. 31, 2009
REVENUES
Gross premiums written	$	476,550		$	676,905		$	337,048		$	382,650		$	564,251		$	662,432
Reinsurance premiums ceded		(81,333	)		(159,515	)		(81,627	)		(73,703	)		(126,503	)		(168,155	)
Net premiums written	$	395,217		$	517,390		$	255,421		$	308,947		$	437,748		$	494,277
Net premiums earned	$	368,061		$	338,332		$	347,833		$	351,245		$	366,130		$	317,598
Net investment income		61,562			64,583			60,668			60,068			59,636			58,943
Net realized and unrealized (losses) gains on investments		(13,734	)		13,280			18,004			29,622			22,462			20,722
Net impairment losses recognized in earnings		(300	)		(420	)		(925	)		(139	)		(2,014	)		—
Net realized gain on retirement of senior notes		—			—			111			—			—			—
Other income		339			480			189			964			1,193			1,799
Total revenues		415,928			416,255			425,880			441,760			447,407			399,062
LOSSES AND EXPENSES
Net losses and loss expenses		213,517			210,543			166,573			181,064			186,301			178,130
Claims and policy benefits		13,943			17,659			16,976			14,378			55,407			14,332
Acquisition costs		64,315			53,998			54,042			59,613			53,317			47,611
Interest expense		8,061			5,226			6,978			6,292			5,146			4,351
Net foreign exchange (gains) losses		(1,622	)		(869	)		789			(116	)		(5,571	)		(1,911	)
Merger and acquisition expenses		—			—			—			(41,350	)		4,785			5,223
General and administrative expenses		60,137			51,611			66,157			57,048			53,979			57,508
Total losses and expenses		358,351			338,168			311,515			276,929			353,364			305,244
INCOME BEFORE TAXES		57,577			78,087			114,365			164,831			94,043			93,818
Income tax expense		4,294			1,311			5,686			2,910			3,206			1,990
NET INCOME		53,283			76,776			108,679			161,921			90,837			91,828

[a] The information presented above is on a combined pro forma basis (after the elimination of intercompany transactions and the amortization of certain acquisition accounting fair value adjustments). The pro forma financial information is provided for informational purposes only, to present a summary of the combined results of operations assuming the amalgamation with Harbor Point had occurred at the beginning of each calendar year presented. The pro forma data does not necessarily represent results that would have occurred if the amalgamation had taken place at the beginning of each calendar year presented, nor is it necessarily indicative of the future results.

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