Transatlantic Re to merge with Allied World Assurance Company

Transatlantic Holdings Inc. (NYSE: TRH) and Allied World Assurance Company Holdings AG will merge to form a global specialty insurance and reinsurance company under a holding company structure with the name TransAllied Group Holdings AG.
The merger is expected to be completed in 2011 Q4.
The deal will see Allied pay Transatlantic $3.2 billion, reported Bloomberg.com.
The new entity will offer specialty insurance and reinsurance products via two distinct brands, Transatlantic Reinsurance and Allied World Insurance, a joint Transatlantic and Allied release says.
Allied World writes $1.8 billion in gross premium written, and Transatlantic Re writes $4.1 billion. The combined entity will have a total capital of $8.5 billion and total invested assets of $21 billion, the release continued.
Transatlantic shareholders will own approximately 58% of the combined company on a fully diluted basis, with Allied World shareholders owning approximately 42%.
Once the deal is completed, Scott Carmilani, chairman, president and CEO of Allied World Assurance Company Holdings AG, will serve as the president and CEO of the new company.
Mike Sapnar, executive vice president and chief operating officer of Transatlantic, will serve as president and CEO of the company’s global reinsurance segment.
Robert Orlich, president and CEO of Transatlantic, will retire upon the closing of the transaction.