THURSDAY, FEB. 9: Alterra Capital Holdings Limited (NASDAQ: ALTE; BSX: ALTE.BH) reported net income of $30.9 million, or $0.30 per diluted share, for the fourth quarter of 2011, compared to net income of $79.7 million, or $0.69 per diluted share, for the same quarter of 2010.

Net operating income for the fourth quarter of 2011 was $31.7 million, or $0.30 per diluted share, compared to net operating income of $76.2 million, or $0.66 per diluted share, for the same quarter of 2010. Annualized net operating return on average shareholders’ equity for the fourth quarter of 2011 was 4.5%.

For the year ended December 31, 2011, Alterra reported net income of $65.3 million, or $0.61 per diluted share, compared to net income of $302.3 million, or $3.17 per diluted share, in 2010. Net operating income for the year ended December 31, 2011 was $96.6 million, or $0.91 per diluted share, compared to net operating income of $251.7 million, or $2.64 per diluted share, in 2010. Net operating return on average shareholders’ equity for the year ended December 31, 2011 was 3.4%.

W. Marston (Marty) Becker, President and Chief Executive Officer of Alterra, said: “We are pleased with Alterra’s relative performance in 2011. We have reported positive operating income and a positive return on equity. Importantly, we have grown our book value per share over the year. Considering the record level of industry property catastrophe losses in 2011, we believe our results highlight the benefits of our diversified underwriting strategy, measured cat risk appetite and sophisticated risk management discipline.

"We have worked hard these past few years to build a global organization with a geographic and product footprint that can meet the needs of our clients and enable us to capture opportunity. As a result, with the industry apparently on the cusp of change, we believe Alterra is particularly well positioned to take advantage of the expected improvement in prices.”

Alterra’s 2010 results of operations reflect the impact of the May 12, 2010 merger with Harbor Point Limited. Accordingly, a comparison of Alterra’s gross premiums written, net premiums written and other results of operations for the current and prior year are not meaningful. The complete text of this press release and selected pro forma combined results of operations for periods prior to the merger for the reinsurance segment are provided in Alterra’s fourth quarter financial supplement available on Alterra’s website at www.alterracap.com.