Allied World To Buy Transatlantic For $3.2B

Allied World Assurance Co Holdings (NYSE: AWH) agreed to buy Transatlantic Holdings (NYSE: TRH) for $3.2 billion in stock.

Transatlantic shareholders will receive 0.88 AWH share each, or $51.10 per share, representing a 16.1% premium over TRH's closing price on Friday.

Robert Orlich, President and Chief Executive Officer of Transatlantic, who will retire upon the closing of the transaction, said, “Transatlantic and Allied World make great merger partners in every sense of the term. For Transatlantic in particular, the transaction delivers strategic and financial benefits, including primary insurance operations, a Lloyd's presence and a bigger capital base outside the U.S., allowing for greater capital allocation flexibility. I look forward to helping see this transaction through to completion, after which Scott and Mike are the right team to move this forward and capitalize on the great opportunity for the new company to create value for shareholders.”

AWH shares fell 1.04% to close at $58.07 on Friday, while TRH shares dropped 1.08% to close at $44.01 on Friday.

Read more from Benzinga's Company news.