This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Alterra Capital Reports First Quarter 2012 Results

Cautionary Note Regarding Forward-Looking Statements

This release includes forward-looking statements that reflect Alterra’s current views with respect to future events and financial performance. In particular, statements regarding future rate movements are forward looking statements. These 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 Alterra’s future results, please refer to the most recent reports on Form 10-K and Form 10-Q and other documents filed by Alterra with the SEC. Alterra undertakes no obligation to update or revise publicly any forward-looking statement whether as a result of new information, future developments or otherwise.

       

ALTERRA CAPITAL HOLDINGS LIMITED

 
CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of United States Dollars, except per share and share amounts)
March 31, 2012 December 31, 2011
(unaudited)
ASSETS
Cash and cash equivalents $ 844,743 $ 922,844
Fixed maturities, trading at fair value 223,592 229,206
Fixed maturities, available for sale at fair value 5,518,102 5,501,925
Fixed maturities, held to maturity at amortized cost (fair value $1,029,502) 885,214 874,259
Other investments, at fair value 332,884 286,515
Accrued interest income 64,295 71,322
Premiums receivable 869,800 715,154
Losses and benefits recoverable from reinsurers 1,108,036 1,068,119
Deferred acquisition costs 176,199 145,850
Prepaid reinsurance premiums 299,163 212,238
Trades pending settlement 111,194 22,887
Goodwill and intangible assets 55,771 56,111
Other assets 86,785 79,417
   
Total assets $ 10,575,778 $ 10,185,847
 
LIABILITIES
Property and casualty losses $ 4,322,847 $ 4,216,538
Life and annuity benefits 1,203,752 1,190,697
Deposit liabilities 151,058 151,035
Funds withheld from reinsurers 92,793 112,469
Unearned property and casualty premiums 1,221,788 1,020,639
Reinsurance balances payable 201,409 134,354
Accounts payable and accrued expenses 90,359 110,380
Senior notes 440,510 440,500
   
Total liabilities   7,724,516   7,376,612
 
SHAREHOLDERS' EQUITY
Common shares (par value $1.00)
100,707,484 (2011 - 102,101,950) shares issued and outstanding 100,707 102,102
Additional paid-in capital 1,807,287 1,847,034
Accumulated other comprehensive income 185,146 166,957
Retained earnings 758,122 693,142
   
Total shareholders' equity   2,851,262   2,809,235
 
Total liabilities and shareholders' equity $ 10,575,778 $ 10,185,847
 
Book value per share $ 28.31 $ 27.51
 
Diluted book value per share $ 27.67 $ 26.91
 
Diluted tangible book value per share [a] $ 27.13 $ 26.37
 
Diluted shares outstanding 103,036,630 104,406,779
 
[a]   Non-GAAP financial measure as defined by Regulation G.
 

ALTERRA CAPITAL HOLDINGS LIMITED

     
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited)
(Expressed in thousands of United States Dollars, except per share and share amounts)
 
Three Months Ended March 31,
  2012     2011  
REVENUES
Gross premiums written $ 661,330 $ 627,848
Reinsurance premiums ceded   (224,462 )   (137,357 )
Net premiums written $ 436,868   $ 490,491  
 
Earned premiums $ 477,867 $ 489,262
Earned premiums ceded   (139,692 )   (109,375 )
Net premiums earned 338,175 379,887
 
Net investment income 58,678 57,766
Net realized and unrealized gains (losses) on investments 25,493 (18,818 )
 
Total other-than-temporary impairment losses (5,467 ) (1,124 )
Portion of loss recognized in other comprehensive income (loss), before taxes   98     95  
Net impairment losses recognized in earnings (5,369 ) (1,029 )
 
Other income 5,362 1,315
   
Total revenues   422,339     419,121  
 
LOSSES AND EXPENSES
Net losses and loss expenses 206,029 304,406
Claims and policy benefits 13,466 14,710
Acquisition costs 59,724 70,608
Interest expense 8,628 8,459
Net foreign exchange gains (32 ) (878 )
General and administrative expenses 60,082 71,203
   
Total losses and expenses   347,897     468,508  
 
INCOME (LOSS) BEFORE TAXES 74,442 (49,387 )
 
Income tax benefit   (4,582 )   (2,700 )
 
NET INCOME (LOSS) 79,024 (46,687 )
 
Holding gains (losses) on available for sale securities arising in period [a] 24,675 (11,993 )
Net realized gains on available for sale securities included in net income [a] (7,758 ) (2,498 )
Portion of other-than-temporary impairment losses recognized in other comprehensive income [a] (98 ) (95 )
Foreign currency translation adjustment   1,370     4,873  
Other comprehensive income (loss) 18,189 (9,713 )
   
COMPREHENSIVE INCOME (LOSS) $ 97,213   $ (56,400 )
 
Net income (loss) per share $ 0.78   $ (0.44 )
Net income (loss) per diluted share $ 0.77   $ (0.44 )
Net operating income (loss) per diluted share [b] $ 0.66   $ (0.23 )
 
Weighted average shares outstanding - basic   101,002,884     107,165,228  
Weighted average shares outstanding - diluted   103,154,081     107,165,228  
 

[a]

 

Net of tax

[b]

Non-GAAP measure as defined by Regulation G.

       

ALTERRA CAPITAL HOLDINGS LIMITED

 
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited)
(Expressed in thousands of United States Dollars)

Three Months Ended March 31,

  2012     2011  
Common shares
Balance, beginning of period $ 102,102 $ 110,963
Issuance of common shares, net 677 1,034
Repurchase of common shares   (2,072 )   (6,263 )
Balance, end of period   100,707     105,734  
 
Additional paid-in capital
Balance, beginning of period 1,847,034 2,026,045
Issuance of common shares, net (472 ) (920 )
Stock based compensation expense 7,486 10,902
Repurchase of common shares   (46,761 )   (130,883 )
Balance, end of period   1,807,287     1,905,144  
 
Accumulated other comprehensive income
Balance, beginning of period 166,957 98,946
Change in net unrealized gains and losses of fixed maturities, net of tax 16,819 (14,586 )
Foreign currency translation adjustments   1,370     4,873  
Balance, end of period   185,146     89,233  
 
Retained earnings
Balance, beginning of period 693,142 682,316
Net income (loss) 79,024 (46,687 )
Dividends   (14,044 )   (12,546 )
Balance, end of period   758,122     623,083  
 
Total shareholders' equity $ 2,851,262   $ 2,723,194  
 
       

ALTERRA CAPITAL HOLDINGS LIMITED

 
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(Expressed in thousands of United States Dollars)

Three Months Ended March 31,

  2012     2011  
OPERATING ACTIVITIES
Net income (loss) $ 79,024 $ (46,687 )
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Stock based compensation 7,486 10,902
Amortization of premium on fixed maturities 5,616 5,266
Accretion of deposit liabilities 960 1,496
Net realized and unrealized (gains) losses on investments (25,493 ) 18,818
Net impairment losses recognized in earnings 5,369 1,029
Changes in:
Accrued interest income 7,108 6,004
Premiums receivable (146,066 ) (217,335 )
Losses and benefits recoverable from reinsurers (32,372 ) (95,272 )
Deferred acquisition costs (28,975 ) (36,853 )
Prepaid reinsurance premiums (85,417 ) (27,503 )
Other assets (7,625 ) (1,966 )
Property and casualty losses 81,529 256,939
Life and annuity benefits (11,836 ) (11,599 )
Funds withheld from reinsurers (19,676 ) 965
Unearned property and casualty premiums 193,161 154,908
Reinsurance balances payable 66,102 24,283
Accounts payable and accrued expenses (20,853 ) 3,514
   
Cash provided by operating activities   68,042     46,909  
 
INVESTING ACTIVITIES
Purchases of available for sale securities (520,816 ) (579,728 )
Sales of available for sale securities 290,644 423,344
Redemptions/maturities of available for sale securities 213,629 275,420
Purchases of trading securities (24,898 ) (7,783 )
Sales of trading securities 21,001 24,564
Redemptions/maturities of trading securities 14,190 16,730
Purchases of held to maturity securities - (2,580 )
Redemptions/maturities of held to maturity securities 8,821 8,546
Net (purchases) sales of other investments (95,004 ) 34,334
   
Cash (used in) provided by investing activities   (92,433 )   192,847  
 
FINANCING ACTIVITIES
Net proceeds from issuance of common shares 205 114
Repurchase of common shares (48,833 ) (137,146 )
Dividends paid (13,734 ) (12,546 )
Additions to deposit liabilities 427 283
Payment of deposit liabilities (1,363 ) (1,967 )
   
Cash used in financing activities   (63,298 )   (151,262 )
 
Effect of exchange rate changes on foreign currency cash and cash equivalents 9,588 6,951
 
Net (decrease) increase in cash and cash equivalents (78,101 ) 95,445
 
Cash and cash equivalents, beginning of period 922,844 905,606
   
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 844,743   $ 1,001,051  
 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
 
Interest paid totaled $11,137 and $11,120 for the three months ended March 31, 2012 and 2011, respectively.
Income taxes paid totaled $4,197 and $79 for the three months ended March 31, 2012 and 2011, respectively.
 
             

ALTERRA CAPITAL HOLDINGS LIMITED

       
SCHEDULE OF SUPPLEMENTAL SEGMENT DATA–THREE MONTHS ENDED MARCH 31, 2012 (Unaudited)
(Expressed in thousands of United States Dollars)
 
Quarter Segment Information: Property & Casualty

 

Global Insurance

 

U.S. Insurance

  Reinsurance  

Alterra at Lloyd's

  Latin America   Total  

Life & Annuity Reinsurance

  Corporate   Consolidated
 
Gross premiums written $ 66,771 $ 104,282 $ 318,354 $ 146,143 $ 25,340 $ 660,890 $ 440 $ - $ 661,330
Reinsurance premiums ceded   (43,251 )     (70,494 )     (59,493 )     (38,590 )     (12,616 )     (224,444 )     (18 )     -       (224,462 )
Net premiums written $ 23,520     $ 33,788     $ 258,861     $ 107,553     $ 12,724     $ 436,446     $ 422     $ -     $ 436,868  
 
Earned premiums $ 94,103 $ 96,241 $ 194,661 $ 72,899 $ 19,523 $ 477,427 $ 440 $ - $ 477,867
Earned premiums ceded   (47,133 )     (40,456 )     (26,753 )     (20,049 )     (5,283 )     (139,674 )     (18 )     -       (139,692 )
Net premiums earned 46,970 55,785 167,908 52,850 14,240 337,753 422 - 338,175
 
Net losses and loss expenses (18,061 ) (37,564 ) (101,195 ) (38,675 ) (10,534 ) (206,029 ) - - (206,029 )
Claims and policy benefits - - - - - - (13,466 ) - (13,466 )
Acquisition costs (59 ) (7,696 ) (38,661 ) (9,434 ) (3,755 ) (59,605 ) (119 ) - (59,724 )
General and administrative expenses (6,481 ) (12,257 ) (17,052 ) (9,095 ) (2,259 ) (47,144 ) (34 ) - (47,178 )
Other income (loss)   815       81       4,441       -       -       5,337       -       -       5,337  
 
Underwriting income (loss) $ 23,184 $ (1,651 ) $ 15,441 $ (4,354 ) $ (2,308 ) $ 30,312 n/a - n/a
 
Net investment income 14,776 43,902 58,678
Net realized and unrealized gains on investments - 25,493 25,493
Net impairment losses recognized in earnings (5,369 ) (5,369 )
Corporate other income 25 25
Interest expense (8,628 ) (8,628 )
Net foreign exchange gains 32 32
Corporate general and administrative expenses (12,904 ) (12,904 )
         
Income before taxes $ 1,579     $ 42,551     $ 74,442  
 
Loss ratio [a] 38.5 % 67.3 % 60.3 % 73.2 % 74.0 % 61.0 %
Acquisition cost ratio [b] 0.1 % 13.8 % 23.0 % 17.9 % 26.4 % 17.6 %

General and administrative expense ratio [c]

  13.8 %     22.0 %     10.2 %     17.2 %     15.9 %     14.0 %
Combined ratio [d]   52.4 %     103.1 %     93.4 %     108.2 %     116.2 %     92.6 %
 
SCHEDULE OF SUPPLEMENTAL SEGMENT DATA–THREE MONTHS ENDED MARCH 31, 2011 (Unaudited)
(Expressed in thousands of United States Dollars)
 
Quarter Segment Information: Property & Casualty

 

Global Insurance

 

U.S. Insurance

  Reinsurance  

Alterra at Lloyd's

  Latin America   Total  

Life & Annuity Reinsurance

  Corporate   Consolidated
 
Gross premiums written $ 63,895 $ 77,765 $ 360,727 $ 107,890 $ 17,136 $ 627,413 $ 435 $ - $ 627,848
Reinsurance premiums ceded   (38,524 )     (38,317 )     (35,252 )     (23,179 )     (2,065 )     (137,337 )     (20 )     -       (137,357 )
Net premiums written $ 25,371     $ 39,448     $ 325,475     $ 84,711     $ 15,071     $ 490,076     $ 415     $ -     $ 490,491  
 
Earned premiums $ 90,651 $ 81,470 $ 244,340 $ 63,164 $ 9,202 $ 488,827 $ 435 $ - $ 489,262
Earned premiums ceded   (40,779 )     (27,801 )     (19,901 )     (20,580 )     (294 )     (109,355 )     (20 )     -       (109,375 )
Net premiums earned 49,872 53,669 224,439 42,584 8,908 379,472 415 - 379,887
 
Net losses and loss expenses (31,624 ) (34,415 ) (183,908 ) (48,443 ) (6,016 ) (304,406 ) - - (304,406 )
Claims and policy benefits - - - - - (14,710 ) - (14,710 )
Acquisition costs (264 ) (7,986 ) (47,760 ) (12,652 ) (1,787 ) (70,449 ) (159 ) - (70,608 )
General and administrative expenses (7,952 ) (11,270 ) (22,272 ) (8,253 ) (2,456 ) (52,203 ) (177 ) - (52,380 )
Other income (loss)   729       83       -       215       -       1,027       -       -       1,027  
 
Underwriting income (loss) $ 10,761 $ 81 $ (29,501 ) $ (26,549 ) $ (1,351 ) $ (46,559 ) n/a - n/a
 
Net investment income 12,343 45,423 57,766
Net realized and unrealized gains (losses) on investments 2,807 (21,625 ) (18,818 )
Net impairment losses recognized in earnings (1,029 ) (1,029 )
Corporate other income 288 288
Interest expense (8,459 ) (8,459 )
Net foreign exchange losses 878 878
Corporate general and administrative expenses (18,823 ) (18,823 )
         
Income (loss) before taxes $ 519     $ (3,347 )   $ (49,387 )
 
Loss ratio [a] 63.4 % 64.1 % 81.9 % 113.8 % 67.5 % 80.2 %
Acquisition cost ratio [b] 0.5 % 14.9 % 21.3 % 29.7 % 20.1 % 18.6 %
General and adminstrative expense ratio [c]   15.9 %     21.0 %     9.9 %     19.4 %     27.6 %     13.8 %
Combined ratio [d]   79.9 %     100.0 %     113.1 %     162.8 %     115.2 %     112.5 %
 
[a]   The loss ratio is calculated by dividing net losses and loss expenses by net premiums earned.
[b] The acquisition cost ratio is calculated by dividing acquisition costs by net premiums earned.
[c] The general and administrative expense ratio is calculated by dividing general and administrative expenses by net premiums earned.
[d] 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.
n/a Not applicable.
Percentage totals may not add due to rounding.
Segment Re-presentation

Effective January 1, 2012, the Company redefined its operating and reporting segments. Reinsurance business written within Latin America, which was previously reported within the reinsurance or Alterra at Lloyd’s segments, has been reclassified to a new Latin America segment. In addition, business written by the Company's recently incorporated Brazilian reinsurance company, Alterra Resseguradora do Brasil Limitada ("Alterra Brazil"), is included in the Latin America segment. Insurance business written by Alterra Insurance USA Inc., which was previously reported within the global insurance segment (formerly the insurance segment), has been reclassified to the U.S. insurance segment (formerly the U.S. specialty segment).

Re-presented comparative financial information was filed on a Form 8-K on April 20, 2012.

       

ALTERRA CAPITAL HOLDINGS LIMITED

       
SCHEDULE OF SUPPLEMENTAL PREMIUM DATA–THREE MONTHS ENDED MARCH 31, 2012 (Unaudited)
(Expressed in thousands of United States Dollars)
 
Gross Premiums Written by Type of Risk: Three Months Ended March 31, 2012

 

Three Months Ended March 31, 2011 [a]
 

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:
Global Insurance:
Aviation S $ 1,302 0.2 % (8.1 %) $ 1,416 0.2 %
Excess Liability L 25,186 3.8 % 13.1 % 22,277 3.5 %
Professional Liability L 24,466 3.7 % (0.3 %) 24,529 3.9 %
Property S   15,817 2.4 % 0.9 %   15,673 2.5 %
66,771 10.1 % 4.5 % 63,895 10.2 %
U.S. Insurance:
General/Excess Liability L 34,667 5.2 % 50.8 % 22,993 3.7 %
Marine S 25,201 3.8 % 47.3 % 17,109 2.7 %
Professional Liability L 11,208 1.7 % 69.3 % 6,622 1.1 %
Property S   33,206 5.0 % 7.0 %   31,041 4.9 %
104,282 15.8 % 34.1 % 77,765 12.4 %
Reinsurance:
Agriculture S 17,505 2.6 % (15.8 %) 20,785 3.3 %
Auto S 512 0.1 % (96.6 %) 15,024 2.4 %
Aviation S 5,460 0.8 % 504.0 % 904 0.1 %
Credit/ Surety S 31,409 4.7 % 38.3 % 22,707 3.6 %
General Casualty L 12,521 1.9 % (18.8 %) 15,427 2.5 %
Marine & Energy S 11,707 1.8 % (29.3 %) 16,549 2.6 %
Medical Malpractice L 11,276 1.7 % (35.9 %) 17,582 2.8 %
Other S 4,437 0.7 % 162.1 % 1,693 0.3 %
Professional Liability L 59,458 9.0 % (0.4 %) 59,684 9.5 %
Property S 144,413 21.8 % 4.0 % 138,866 22.1 %
Whole Account S/L 1,408 0.2 % (96.0 %) 35,070 5.6 %
Workers' Compensation L   18,248 2.8 % 11.0 %   16,436 2.6 %
318,354 48.1 % (11.7 %) 360,727 57.5 %
Alterra at Lloyd's:
Accident & Health S 17,432 2.6 % 28.7 % 13,544 2.2 %
Agriculture S 20,370 3.1 % n/m - 0.0 %
Aviation S 2,486 0.4 % 40.7 % 1,767 0.3 %
Financial Institutions L 6,904 1.0 % (23.6 %) 9,036 1.4 %
International Casualty L 49,268 7.4 % 45.8 % 33,789 5.4 %
Marine S 2,726 0.4 % n/m - 0.0 %
Professional Liability L 5,428 0.8 % (31.5 %) 7,922 1.3 %
Property S   41,529 6.3 % (0.7 %)   41,832 6.7 %
146,143 22.1 % 35.5 % 107,890 17.2 %
Latin America:
Aviation S 65 0.0 % n/m - 0.0 %
General Casualty L 2,435 0.4 % 154.4 % 957 0.2 %
Marine S 1,688 0.3 % 210.3 % 544 0.1 %
Property S 16,711 2.5 % 19.9 % 13,935 2.2 %
Surety S   4,441 0.7 % 161.2 %   1,700 0.3 %
25,340 3.8 % 47.9 % 17,136 2.7 %
         
Aggregate Property & Casualty $ 660,890 99.9 % 5.3 % $ 627,413 99.9 %
 
Life & Annuity:
Annuity $ 353 0.1 % 5.1 % $ 336 0.1 %
Life   87 0.0 % (12.1 %)   99 0.0 %
 
Aggregate Life & Annuity $ 440 0.1 % 1.1 % $ 435 0.1 %
         
Aggregate Property & Casualty and Life & Annuity $ 661,330 100.0 % 5.3 % $ 627,848 100.0 %
 
 
S = Short tail lines $ 399,121 60.4 % $ 372,624 59.4 %
L = Long tail lines   261,769 39.6 %   254,789 40.6 %
Aggregate Property & Casualty $ 660,890 $ 627,413
 
Property [b] $ 251,676 38.1 % $ 241,347 38.5 %
Casualty [c] 261,065 39.5 % 237,254 37.8 %
Specialty [d]   148,149 22.4 %   148,812 23.7 %
$ 660,890 $ 627,413
 
[a]   Comparative periods have been re-presented to conform with the current period's presentation.
[b] Property includes property lines of business.
[c] Casualty includes excess liability, financial institutions, general liability, general casualty, international casualty, medical malpractice,
professional liability and workers' compensation lines of business.
[d] Specialty includes accident & health, agriculture, auto, aviation, credit, energy, marine, other, surety and whole account lines of business.
 
Percentage totals may not add due to rounding.
n/m Not meaningful.
         

ALTERRA CAPITAL HOLDINGS LIMITED

 
NON-GAAP FINANCIAL MEASURE RECONCILIATIONS (Unaudited)
 
Net Operating Income and Net Operating Income per Diluted Share
(Expressed in thousands of United States Dollars, except per share and share amounts)
Three Months Ended March 31,
  2012     2011  
 
Net income (loss) before tax $ 74,442 $ (49,387 )
Net realized and unrealized (gains) losses on investments not included in operating income, before tax [a] (11,551 ) 23,109
Foreign exchange (gains) losses, before tax   (32 )   (878 )
Net operating income (loss) before tax $ 62,859   $ (27,156 )
 
Net income (loss) $ 79,024 $ (46,687 )
Net realized and unrealized (gains) losses on investments not included in operating income, net of tax [a] (11,247 ) 22,602
Foreign exchange (gains) losses, net of tax   (21 )   (640 )
Net operating income (loss) $ 67,756   $ (24,725 )
 
Net income (loss) per diluted share $ 0.77 $ (0.44 )
Net realized and unrealized (gains) losses on investments not included in operating income, net of tax [a] (0.11 ) 0.21
Foreign exchange (gains) losses, net of tax   (0.00 )   (0.01 )
Net operating income (loss) per diluted share $ 0.66   $ (0.23 )
 
Weighted average shares outstanding - basic   101,002,884     107,165,228  
Weighted average shares outstanding - diluted   103,154,081     107,165,228  
 

[a]

Net realized and unrealized (gains) losses on investments not included in operating income includes realized and unrealized (gains) losses on trading securities,

realized (gains) losses on available for sale securities, net impairment losses recognized in earnings, earnings from equity method investments in run-off
and changes in fair value of derivatives, catastrophe bonds and structured deposits.
 
Per share totals may not add due to rounding.
 
Annualized Net Operating Return on Average Shareholders' Equity
(Expressed in thousands of United States Dollars)
Three Months Ended March 31,
  2012     2011  
 
Net income (loss) $ 79,024 $ (46,687 )
Annualized net income (loss) 316,096 (186,748 )
 
Net operating income (loss) $ 67,756 $ (24,725 )
Annualized net operating income (loss) 271,024 (98,900 )
 
Average shareholders' equity [b] $ 2,830,249 $ 2,820,732
 
Annualized return on average shareholders' equity 11.2 % (6.6 %)
Annualized net operating return on average shareholders' equity 9.6 % (3.5 %)
 

[b]

Average shareholders' equity is computed as the quarterly average shareholders' equity balances.

 
 
Diluted Tangible Book Value Per Share
(Expressed in thousands of United States Dollars, except per share and share amounts)
March 31, 2012 December 31, 2011
 
Shareholders' equity $ 2,851,262 $ 2,809,235
Goodwill and intangible assets   55,771     56,111  
Tangible book value $ 2,795,491   $ 2,753,124  
 
Diluted shares outstanding 103,036,630 104,406,779
 
Diluted tangible book value per share $ 27.13 $ 26.37
 
           

ALTERRA CAPITAL HOLDINGS LIMITED

 
SCHEDULE OF SUPPLEMENTAL INVESTMENT DATA– MARCH 31, 2012 (Unaudited)
(Expressed in thousands of United States Dollars)
 
Type of Investment

As of March 31, 2012

Investment Distribution

As of December 31, 2011

Investment Distribution

 
Cash and cash equivalents $ 844,743     10.8 % $ 922,844 11.8 %
 
U.S. government and agencies 773,635 9.9 % 751,806 9.6 %
Non-U.S. governments 172,921 2.2 % 164,621 2.1 %
Corporate securities 2,586,702 33.1 % 2,646,358 33.9 %
Municipal securities 268,658 3.4 % 263,007 3.4 %
Asset-backed securities 263,481 3.4 % 247,965 3.2 %
Residential mortgage-backed securities 1,311,184 16.8 % 1,296,277 16.6 %
Commercial mortgage-backed securities   365,113     4.7 %   361,097 4.6 %
 
Fixed maturities at fair value $ 5,741,694     73.6 % $ 5,731,131 73.3 %
 
U.S. government and agencies $ 29,206 0.4 % $ 29,201 0.4 %
Non-U.S. governments 537,824 6.9 % 524,449 6.7 %
Corporate securities 317,184 4.1 % 319,609 4.1 %
Asset-backed securities   1,000     0.0 %   1,000 0.0 %
 
Fixed maturities at amortized cost $ 885,214     11.3 % $ 874,259 11.2 %
 
Other investments $ 332,884     4.3 % $ 286,515 3.7 %
 
Total invested assets $ 7,804,535     100.0 % $ 7,814,749 100.0 %
 
 
Credit Rating

As of March 31, 2012

Ratings Distribution

As of December 31, 2011

Ratings Distribution

 
U.S. government and agencies [a] $ 1,986,689 30.0 % $ 1,869,405 28.3 %
AAA 1,007,269 15.2 % 948,861 14.4 %
AA 828,916 12.5 % 883,783 13.4 %
A 1,363,572 20.6 % 1,378,361 20.9 %
BBB 284,843 4.3 % 281,983 4.3 %
BB 64,343 1.0 % 84,803 1.3 %
B 121,783 1.8 % 131,159 2.0 %
CCC or lower 43,005 0.6 % 53,157 0.8 %
Not rated   41,274     0.6 %   99,619 1.5 %
Fixed maturities at fair value $ 5,741,694 86.6 % $ 5,731,131 86.8 %
 
U.S. government and agencies $ 29,206 0.4 % $ 29,201 0.4 %
AAA 612,593 9.2 % 619,832 9.4 %
AA 99,451 1.5 % 82,511 1.2 %
A 121,952 1.8 % 117,600 1.8 %
BBB 21,014 0.3 % 24,117 0.4 %
BB   998     0.0 %   998 0.0 %
Fixed maturities at amortized cost $ 885,214 13.4 % $ 874,259 13.2 %
       
Total fixed maturities $ 6,626,908     100.0 % $ 6,605,390 100.0 %
 

[a] Included within U.S. government and agencies are agency-issued residential mortgage-backed securities with a fair value of $1,213,054 (December 31, 2011: $1,117,599).

Percentage totals may not add due to rounding.
 
Three Months Ended March 31,
  2012     2011  
 
Net investment income $ 58,678   $ 57,766  
 
Realized and unrealized gains (losses) on trading fixed maturities 1,066 (1,827 )
Net realized gains on available for sale fixed maturities 7,759 3,369
Increase in fair value of hedge funds 3,679 3,167
Decrease in fair value of catastrophe bonds - (25,390 )
Increase in fair value of structured deposit 365 1,334
Income (loss) from equity method investments 4,927 (145 )
Increase in fair value of derivatives   7,697     674  
Net realized and unrealized gains (losses) on investments $ 25,493   $ (18,818 )
 
Net impairment losses recognized in earnings $ (5,369 ) $ (1,029 )




3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,265.99 +109.14 0.64%
S&P 500 2,011.36 +9.79 0.49%
NASDAQ 4,593.4250 +31.2360 0.68%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs