Transatlantic Re and Allied World agree to a Merger of Equals
On June 12, 2011, Transatlantic Holdings, Inc. (NYSE: TRH) and Allied World Assurance Company Holdings, AG (NYSE: AWH) signed a definitive merger agreement that will create a leading, global specialty insurance and reinsurance company. The combined entity will have total invested assets of USD 21 billion, total shareholders' equity of nearly USD 7 billion, and total capital of USD 8.5 billion. The combined company will operate under a holding company structure with the corporate name TransAllied Group Holdings, AG with registered seat in Zug, Switzerland. The transaction is structured as a merger of equals. Following the merger, Transatlantic shareholders will own approximately 58% of the combined company on a fully diluted basis, with Allied World shareholders owning approximately 43%.
Lenz & Staehelin acted as Swiss legal counsel to Transatlantic. The team includes Hans-Jakob Diem, Harald Bärtschi and Andreas Hinsen (all Corporate and M&A), Pascal Hinny (Tax), Matthias Oertle (Employment and Pensions) and Philipp Jermann (Regulatory).