Bermuda's Max Capital, Harbor Point to merge-source

NEW YORK, March 3 Wed Mar 3, 2010 1:44pm EST

NEW YORK, March 3 (Reuters) - Max Capital Group Ltd MXGL.O is expected to merge with reinsurer Harbor Point Ltd in a deal that would create a company with $3.5 billion in book value, a source familiar with the matter said on Wednesday.

A deal between the two Bermuda-based companies is expected to be announced later on Wednesday, the source said, requesting anonymity because the agreement is not yet public.

Harbor Point had a book value of about $1.63 billion, the source said.

Max Capital, a specialty insurer and reinsurer, and Harbor Point were not immediately available for comment. (Reporting by Paritosh Bansal; Editing by Lisa Von Ahn) (For more M&A news and our DealZone blog, go to www.reuters.com/deals)