Best Sees No Ratings Change from Allied World, Transatlantic Merger

June 14, 2011

A.M. Best Co. has commented that the ratings of the subsidiaries of Swiss-based Allied World Assurance Company Holdings, AG and New York-based Transatlantic Holdings, Inc. and its subsidiaries, are unchanged following the announcement of a definitive agreement to merge.

Best stated that “all of the rated operating companies of both organizations maintain financial strength ratings of ‘A’ (Excellent) and issuer credit ratings of “a”, and all ratings have a stable outlook.

In addition Best noted that the merger agreement is “complementary” for both companies, as it brings two organizations together that fit well. Allied World is “predominately a primary writer and Transatlantic a pure reinsurer,” said Best. “The merged entity is expected to enjoy an enhanced business profile that will likely inure benefits in the form of an improved competitive position”

In addition best pointed out that the “merged entity should also benefit from broader distribution channels, broader product diversity and the benefits of a significant global presence. The transaction is expected to be finalized in the fourth quarter of 2011, subject to regulatory approvals.

The ratings of Allied World and Transatlantic will continue to be actively monitored throughout the transaction period, and the ratings of the merged entity will be reviewed once the transaction is completed and A.M. Best has completed its analysis.”

Source: A.M. Best

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