* Deal to create company with $3.5 bln in book value
* Announcement expected later on Wednesday
* Max shares off slightly
(Adds details about Harbor Point, background about Max bid for
IPC last year, share price, byline)
By Paritosh Bansal
NEW YORK, March 3 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
Max Capital, a specialty insurer and reinsurer, and Harbor
Point were not immediately available for comment.
Harbor Point was formed in late 2005 by a group of
investors led by the Chubb Corp (CB.N) and private equity firm
Stone Point Capital, according to its website.
It writes property, casualty and specialty reinsurance and
when it was formed it acquired the operations of Chubb Re,
including the renewal rights to Chubb Re's in force book of
assumed reinsurance business.
For Max Capital, the deal comes after its bid last year to
buy Bermuda reinsurer IPC Holdings Ltd was derailed by Validus
Holdings Ltd (VR.N) after a months-long battle.
Max Capital's shares were off 3 cents at $23.89 at
mid-afternoon on Nasdaq.
(Reporting by Paritosh Bansal; Editing by Lisa Von Ahn and
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