J.P. Morgan Announces Merger Between Allied World Assurance And Transatlantic Holdings

According to J.P. Morgan, Allied World Assurance Company Holdings AWH and Transatlantic Holdings (TRH: N) announced a merger that would create a company with over $21 billion in invested assets and $7 billion in equity capitalization. J.P. Morgan said that AWH will issue 0.88 shares for each share of TRH, which values the company at $51.10 (vs. current book value per share of $63.57) based on AWH's last closing price. “The combined company, under the new TransAllied holding company name, will essentially operate two distinct businesses (insurance under Allied World and reinsurance under Transatlantic Re).” Allied World Assurance Company Holdings closed yesterday at $58.07.