Bermuda-based reinsurer Alterra Capital Holdings Ltd yesterday announced it had agreed to sell the renewal rights and assets of part of its US-based excess and surplus lines carrier, Alterra Excess & Surplus Insurance Company to Selective Insurance Company of America.The deal involves only the commercial excess and specialty lines business written under contract binding authority (CBA) by Alterra E&S’s contracted general agents and not Alterra E&S’s specialty personal lines business.In a statement yesterday, Alterra said: “Substantially all of the employees in the CBA division are expected to be offered employment with Selective.”The transactions contemplated by the agreement, which are subject to certain closing conditions but no regulatory approvals, are expected to close in the third quarter of 2011. In 2010, the CBA division, excluding the specialty personal lines business, produced aggregate gross premiums written of $77 million.Alterra CEO Marston Becker said: “We are pleased to have reached an agreement with Selective. Although the CBA division produces a good book of business, we do not believe it is consistent with Alterra’s long term strategy. Our agreement with Selective recognises the value of our CBA division and ensures its continued operations, which we considered of importance in negotiating the transaction.”Steve Vaccaro, chief executive officer of Alterra Specialty, Alterra’s US specialty insurance operation, saidd: “We believe this transaction will represent a very nice transition for our CBA division and provide an attractive home and seamless transition for our employees and agents.”