Investors and customers are leaning on reinsurers to merge, acquire, or grow because the bar for an accepted level of capitalization is getting higher all the time, according to Marty Becker, CEO of Bermuda-based re/insurer Alterra, the company recently formed through the merger of max Capital and Harbor Point. In an interview with Bloomberg, Mr Becker said that "10 years ago, $100m was a big reinsurer. Then it became $500m. And today to be a credible, diversified reinsurer, what's the number? Is it $2bn, is it $2.5bn, is it $3bn? It's somewhere in that range". Alterra will have a working capital of about $3bn after paying a $300m special dividend. Lower rates and increased capacity have led to mergers & acquisitions moving up the agenda of Bermudian reinsurers. While Ace, the market leader in the sector, although now domiciled in Europe, is capitalized at nearly $20bn, there are many with capitalization in the sub-$2bn sector. Both Berkshire Hathaway and Wilbur Ross have observed that there is scope for acquisition and consolidation in the Bermudian market.