Allied World Committed to Transatlantic Merger
Allied World Assurance Company Holdings today [July 18] affirmed that it remains fully committed to the terms of the merger with Transatlantic Holdings, Inc., which it believes provides the best value for all shareholders and the best prospects for long-term growth.
Allied World Chairman, President & Chief Executive Officer, Scott Carmilani, stated, “The TransAllied merger provides significant financial and strategic benefits and the best long-term value for shareholders of both of our companies. Our transaction fully satisfies the key strategic goals outlined by Transatlantic with greater certainty.”
“We believe that Validus’ proposal is inferior. It cannot provide Transatlantic’s shareholders with the same value that our merger of equals can. Validus’ unsolicited proposal is an attempt to acquire Transatlantic at a significant discount to book value.”
“In addition, the needed reduction to Transatlantic’s property catastrophe business in the inferior Validus takeover to a level compliant with Transatlantic’s enterprise risk management risk tolerances would lead to limited property catastrophe writing flexibility.”
Allied World noted that both Standard & Poors’ (A strong) and Moody’s (A2) have made positive indications relating to Allied World’s financial strength ratings, and A.M. Best has affirmed our A “Excellent” financial strength rating.
Mr. Carmilani continued, “The rating agencies have reacted favorably to our superior transaction indicating that Transatlantic’s operating companies’ financial strength ratings will remain unchanged after the transaction.”
“These stronger indicative ratings (as compared to the indicative ratings direction under the Validus proposal) will benefit the combined company. With a month of productive integration planning and Hart-Scott-Rodino clearance already in hand, Transatlantic and Allied World have established considerable momentum together. We look forward to completing our merger.”
Deutsche Bank Securities Inc. is acting as financial advisor and Willkie Farr & Gallagher LLP and Baker & McKenzie are acting as U.S. and Swiss legal counsel, respectively, to Allied World.
