Dec. 19--Henrico County-based specialty insurer Markel Corp. said today it has agreed to buy Alterra Capital Holdings Ltd. for about $3.13 billion in cash and stock.

The deal would expand Markel's reinsurance and large account insurance portfolio.

Shareholders of Bermuda-based Alterra will get .043 Markel shares and $10 in cash for each share they own, the companies said in a statement today.

Following the merger, Markel's shareholders will own about 69 percent of the combined company, with Alterra's shareholders owning approximately 31 percent.

The deal, which requires shareholder and regulatory approvals, is expected to close in the first half of 2013.

jblackwell@timesdispatch.com

(804) 775-8123

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