Transatlantic Board of Directors Rejects Unsolicited, Conditional Exchange Offer by Validus

Transatlantic Holdings, Inc.

today announced that its Board of Directors, after consultation with its independent financial and legal advisors, has unanimously determined to recommend that stockholders reject Validus Holdings, Ltd.'s

Exchange Offer to acquire all the outstanding common shares of Transatlantic. Transatlantic remains committed to the terms of the merger agreement that it entered into with Allied World Assurance Company Holdings, AG

on June 12, 2011. Under the terms of the Allied World Merger Agreement, Transatlantic stockholders will receive 0.88 Allied World common shares for each share of Transatlantic common stock. The Transatlantic Board of Directors believes that the transaction with Allied World will provide greater long-term value potential to Transatlantic's stockholders than Validus' Exchange Offer. The Transatlantic Board reaffirms its recommendation of, and its declaration of advisability with respect to, the Allied World Merger Agreement.