Transatlantic — Merger or Acquisition (November 2011)
11 slides from Transatlantic's merger presentation, Nov 29, 2011
Slide 1: Transatlantic Re: The Way Ahead
Transatlantic Re(r) The Way Ahead Paul Bonny, President - International Operations November 2011
Slide 2: Cautionary Note Regarding Forward Looking Statements
Cautionary Note Regarding Forward Looking Statements In addition to historical information, this document contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. The
Slide 3: Additional Information and Participants in Solicitation
Alleghany and Transatlantic and their respective directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information about Alleghany's directors and executive officers is av
Slide 4: The Length & Strength Of Our Relationships
Notes Percentage of Transatlantic 2011 in-force business by client tenure. Excludes AIG. Measures years in which business written with current clients . Based on premium volume. By Region By Channel < 5 yrs 9% 6-10 yrs 18% 20+ yrs 51% 11-15 yrs 10% 16-20 yrs 13% < 5 yrs 10% 6-10 yrs 17% 20+ yrs 45%
Slide 5: The Strength Of Our Diversity
USA 50.2% London 18.9% Paris/ Munich Zurich 11.8% Toronto Latin America & Caribbean HK/SYD/TKY Other Property 2.1% Homeowners MP 2.1% Auto PD 2.2% Allied 10.0% Fire 12.8% Surety & Credit Accident & Health Auto Liability Ocean Marine & Aviation Medical Malpractice Other Liability* 27.3% Other Casualt
Slide 6: Our Latest Operating Highlights
$ millions US 48% Int'l Other 15% Int'l Europe 37% By Office By Product Solid third quarter Strong underwriting performance, ex cat Includes $71m pre-tax net cat costs, due principally to Hurricane Irene (US), floods (Denmark) and net changes in estimated costs of earlier events Catastrophe rates mo
Slide 7: Recap Of Timeline To Alleghany
Recap Of Timeline To Alleghany June We announce merger of equals with Allied World July Validus makes unsolicited approach We advise Validus that offer is not superior Validus goes hostile with a 'no vote' campaign August Berkshire Hathaway makes unsolicited cash offer through National Indemnity We
Slide 8: Alleghany Corporation
$ millions Founded 1929 Headquartered in New York Total Investments of $4.8B Stockholders' Equity $2.8B Owns and manages operating subsidiaries and investments Core position in E&S insurance - GWP $1.1B Distinctive total return investment strategy RSUI 1,410 Capitol America 309 Other Insurance Opera
Slide 9: Transatlantic + Alleghany Transaction
Transaction Consideration Deal Value Pro Forma Ownership Board Of Directors Management Approvals Investor Support Expected Closing Merger of Transatlantic into a wholly owned subsidiary of Alleghany 0.145 Alleghany shares ($45.57) and $14.22 cash - implied price $59.79* Total deal value* $3,431m - $
Slide 10: The Response To Our Announcement
Rating Agencies Positive "The transaction brings two complementary organizations together. Alleghany's specialty insurance platform and Transatlantic's reinsurance platform, combined with a shared philosophy of underwriting discipline, will bring greater diversification of earnings, cash flow source
Slide 11: The Impact On Customers and Brokers
11 Complementary no reinsurance overlap no international overlap Cultures no change in risk appetite Capital increased capital base, increased flexibility Ratings no change Execution should not feel any impact - seamless and limited integration The Impact On Customers and Brokers
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