Swiss insurer Allied World Assurance Co. Holdings AG, with Farmington operations, is reasserting its offer as the best for a New York reinsurer in the wake of billionaire Warren Buffett’s rival $3.25 billion play for the company.
Allied World CEO Scott Carmilani said the insurer is “fully committed” to its $3.2 billion offer for Transatlantic Holdings Inc. and still plans to close the deal in the fourth quarter.
On Sunday, the National Indemnity Co. unit of Buffett’s Berkshire-Hathaway Corp. submitted a proposal to acquire Transatlantic. A third suitor, Validus Holdings Ltd., also is in the bidding.
Carmilani said in a statement Allied’s offer of cash and stock offers Transatlantic the best opportunity to cash in their stakes while sharing any future upside from the deal.
“In contrast, National Indemnity’s proposal is,” he said, “at best, opportunistic and seeks to acquire Transatlantic for cash at a significant discount to book value, leaving Transatlantic shareholders no upside potential.”
