A former AIG subsidiary company gives birth to a reinsurance giant

Transatlantic Holdings, a former AIG subsidiary company, has merged with its rival Allied World Assurance Company giving birth to a big player in the insurance and reinsurance business.

The new entity, TransAllied Group Holding, will hold approximately 7 billion USD of shareholder's equity and will be valued at nearly 5 billion USD. After the merger, shareholders of Transatlantic will have 58% of TransAllied Group’s shares while those of Allied World Assurance will own 42%.