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Monday, June 23, 2014

Reinsurer Validus to purchase Western World Insurance for $690 mln, (NYSE: VR)

Reinsurer Validus Holdings Ltd said it would purchase specialty insurer Western World Insurance Group Inc for about $690 million in cash to strengthen its presence in the United States.Validus said it intends to use existing funds for the deal, which is expected to close in or about the end of the third quarter of 2014.Franklin Lakes, New Jersey-based Western World offers auto and property insurance and, within Validus, it will operate as an independent business led by its current management team.Validus provides reinsurance and insurance services and operates through its three Bermuda-based units - Reinsurance Ltd, Talbot Holdings Ltd and AlphaCat Managers Ltd.

Validus Holdings, Ltd. is a holding company. The Company, through its subsidiaries, provides reinsurance coverage in the property, marine and specialty lines markets and insurance coverage in the same markets. Shares of VR fell by 0.3% or $-0.11/share to $36.88. In the past year, the shares have traded as low as $33.40 and as high as $40.71. On average, 683050 shares of VR exchange hands on a given day and today's volume is recorded at 463857.