Alterra Capital Appoints Peter Andersen Vice President of Alterra USA

Alterra Capital Holdings Limited ("Alterra”) (NASDAQ: ALTE; BSX: ALTE.BH) today announced the appointment of Peter A. Andersen as Vice President, Underwriter of Alterra USA.

W. Marston (Marty) Becker, President and Chief Executive Officer of Alterra, commented: "We are pleased that Peter Andersen is joining Alterra USA to further strengthen its casualty underwriting team. Peter has demonstrated his casualty insurance expertise throughout a fine career, and we expect that he will make an important contribution as we seek to build out the underwriting capability of our US insurance operations to complement Alterra’s successful insurance businesses in Bermuda and Dublin.”

Doug Worman, President and Chief Executive Officer of Alterra USA and Executive Vice President of Alterra, commented: "We see Pete as an underwriter with tremendous insight into the US casualty markets, and we expect him to be a valuable asset as we gear up our US casualty capabilities. Pete joins Alterra at a time when our industry is challenged by soft premium rates and historically low investment returns, but we believe his excellent track record will serve us well as we implement our diversification strategy ahead of anticipated rate improvements.”

Peter Andersen has more than 20 years of casualty insurance experience, most recently as Senior Vice President and Casualty Manager at Mercator Risk Services. Prior to joining Mercator, Peter served as Director at Conative Capital Management and as a Director at Interfor Inc., in both cases working on insurance due diligence projects. Peter spent his earlier career at Marsh & McLennan, where he held various management positions, including Senior Vice President - National Energy / Chemical Practice leader for excess casualty, and manager and team leader in the excess casualty placement group. Peter also spent seven years working in Marsh’s Marine and Energy practice. Peter graduated from Fordham University with a degree in Finance, and holds a Lloyd’s broker license, having spent a year in London with J. Besso Co.

Peter will be moving to Alterra USA as soon as his current employment obligations are fulfilled, which is expected to be by February 28, 2011.

About Alterra Capital Holdings Limited

Alterra Capital Holdings Limited is a global enterprise dedicated to providing diversified specialty insurance and reinsurance products to corporations, public entities, and property and casualty insurers. Alterra was formed on May 12, 2010 by the merger of Max Capital Group Ltd. and Harbor Point Limited.

Cautionary Note Regarding Forward-Looking Statements

This release may include forward-looking statements that reflect Alterra’s current views with respect to future events and financial performance. 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.