Reinsurer Validus Holdings Ltd (VR.N) defended its $3.25 billion bid for Transatlantic Holdings Inc (TRH.N), saying a deal would create more than $1 billion of earnings power that it could put toward more share repurchases. Validus offered to purchase Transatlantic on Tuesday, trumping a $3.06 billion stock deal that Transatlantic has already signed with rival Allied World Assurance Co Holdings. (AWH.N) Bermuda-based Validus said it believes its bid would create more than the $80 million in synergies touted by Allied World and Transatlantic. It said it would seek to retain the Transatlantic management team. It also said it projects that the combination would create a better spread of risk for Validus and increase the combined companies' excess capital by over $500 million.
Validus Holdings, Ltd. provides reinsurance and insurance coverage in the property, marine and specialty lines markets, and insurance coverage. Shares of VR traded higher by 30.86% or $0.2273/share to $505540704.00. In the past year, the shares have traded as low as $3.07 and as high as $23.42. On average, 1108069581 shares of VR exchange hands on a given day and today's volume is recorded at 869342.
Transatlantic Holdings, Inc. (TRH) is a holding company. Shares of TRH traded higher by 44.45% or $0.6793/share to $505545472.00. In the past year, the shares have traded as low as $3.06 and as high as $43.90. On average, 1113084396 shares of TRH exchange hands on a given day and today's volume is recorded at 656738.
Allied World Assurance Company Holdings, AG, formerly Allied World Assurance Company Holdings, Ltd. Shares of AWH traded higher by 59.09% or $-0.0676/share to $505545024.00. In the past year, the shares have traded as low as $11.54 and as high as $43.34. On average, 1115907686 shares of AWH exchange hands on a given day and today's volume is recorded at 231688.
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