Global specialty insurer Alleghany Corporation and reinsurer Transatlantic Holdings announced this week the completion of their previously announced merger. With the closing of the transaction, Transatlantic is now an independent stand-alone subsidiary of Alleghany.
Alleghany CEO Weston Hicks commented on the transaction’s closing, stating, “I am very pleased to welcome Transatlantic into the Alleghany family. Together we expect to have the flexibility to allocate our capital to the highest risk-adjusted return opportunities in insurance and reinsurance.”
Transatlantic CEO Michael Sapnar added, “I am grateful to our clients, staff, stockholders and board of directors for their support as we worked to achieve a successful outcome to this process.”
The cash-and-stock deal, which was first announced on Nov. 20, 2011, is valued at around $3.4 billion. The merger puts to an end months-long takeover talks involving Transatlantic. Last September, Transatlantic and Switzerland-based Allied World Assurance called off their previously announced merger deal. Several other suitors including Validus Holdings and National Indemnity had also expressed interest in acquiring Transatlantic.
Headquartered in New York, Alleghany offers property/casualty and surety insurance. It provides specialty insurance coverages in the property, umbrella/excess, general liability, directors and officers liability, professional liability lines of business, and homeowners insurance.
Transatlantic, based in New York, offers reinsurance for property/casualty, including general liability, medical malpractice, architects’ and engineers’ liability, automobile liability, and surety lines.