Validus To Acquire Western World Insurance

Bermuda-based Validus Holdings, Ltd. announced the signing of a definitive agreement to acquire Western World Insurance Group, Inc.

Western World, through its subsidiaries, is a specialty lines insurance company with a 50 year track record of profitability and is a pioneer in the binding authority business model, based in Franklin Lakes, New Jersey.

Validus intends to have Western World operate as a standalone business within Validus led by its current management team and preserving Western World’s name, strong brand equity and market reputation.

Ed Noonan, Validus’ Chairman and Chief Executive Officer, commented, “I am very pleased to welcome Western World to the Validus Group and am excited about the potential of combining these two companies.

“Bringing together Validus, a leader in the short-tail insurance and reinsurance market, and Western World, with its excellent U.S. distribution platform, outstanding management and industry leading technology, creates a franchise that will provide compelling products and services for our customers.”

Mr. Noonan added, “We continue to think of ourselves as first and foremost a Bermudian company, and a great supporter of the Island. This acquisition supports our commitment to growth and continues to provide opportunity for our Bermuda staff and the wider community.”

Tom Mulligan, Western World’s Chief Executive Officer, commented, “Joining Validus is a great outcome for Western World. Validus brings capital and expertise in short tail classes of business which will advance the competitive advantages in all of our underwriting divisions. My colleagues and I look forward to working with Validus to provide additional products and capacity to our agents and customers.”

Under the terms of the transaction, Western World’s owners will receive $690.0 million in cash in exchange for 100% of the outstanding stock of Western World. Western World’s March 31, 2014 adjusted GAAP book value is estimated to be $518.3 million.

Validus intends to use existing funds for the transaction. Validus anticipates the closing to take place on or about the end of the third quarter of 2014 and is subject to the obtaining of required regulatory approvals and the satisfaction of other customary closing conditions.

Greenhill & Co. is acting as financial advisor to Validus and Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal counsel. For Western World, Goldman, Sachs & Co. is acting as financial advisor and Sullivan & Cromwell LLP and Morrison Cohen LLP are acting as legal counsel.

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