Transatlantic to Merge With Allied World in $3.2 Billion Deal

Transatlantic Holdings Inc. and Switzerland’s Allied World Assurance Company Holdings AG agreed to merge in a $3.2 billion deal that creates a reinsurer with operations in 18 countries.

Allied will exchange 0.88 of a share for each Transatlantic share to form TransAllied Group Holdings AG, with Transatlantic shareholders owning about 58 percent of the combined firm, the companies said yesterday in a statement. The combination of New York-based Transatlantic, which gets more than half its revenue from the U.S., and Allied, which received approval last year to establish a syndicate at Lloyd’s of London, will have total invested assets of $21 billion.