Moody's affirms Transatlantic, Allied World

Moody's Investors Service said it affirmed Transatlantic Holdings, Inc. senior debt rating at Baa1, along with Allied World Assurance Co. Holdings, Ltd.'s senior debt ratings at Baa1.

The outlook is stable.

The ratings were affirmed following the merger between Transatlantic Holdings and Allied World Assurance Co. Holdings, AG.

The proposed transaction is an all-stock merger that is not expected to put additional pressure on either party's capital structure, Moody's said.

Following the merger, Transatlantic shareholders will own about 58% of the combined company on a fully diluted basis, with Allied World shareholders owning about 42%, the agency said.

The agency said it believes the merger will provide both franchises with strategic benefits.

Transatlantic focuses solely on reinsurance while Allied World focuses more on insurance. The two platforms will give management the flexibility to trade between reinsurance or insurance, depending on market conditions, Moody's said.

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