TRANSAT HLDS 
By NEW YORK, Nov. 8, 2011 /PRNewswire/ -- Transatlantic Holdings, Inc. (NYSE: TRH) ("Transatlantic") today commented on Standard & Poor's ("S&P") affirmation of the Company's A+ credit rating and stable outlook. The Company also commented on Validus Holdings, Ltd.'s (NYSE: VR) ("Validus") unwarranted attacks.
Transatlantic believes that S&P's announcement on November 7, 2011, underscores the strength of the Company's franchise. As S&P noted, "The ratings on Transatlantic and its core operating subsidiaries are based on the group's stand-alone capabilities including its well-diversified mix of business, strong reputation with brokers and clients, strong and disciplined underwriting culture, very strong capital adequacy and liquidity, and conservative investment portfolio."*
In contrast to S&P's view of Transatlantic's standalone capabilities, Validus filed an investor presentation on Monday, November 7, 2011, questioning the Company's balance sheet and prospects. Further, they continued their campaign of inaccurate and misleading statements in their effort to acquire Transatlantic's well-regarded franchise for less than full and fair value.
After failing to submit an offer that adequately values Transatlantic, Validus made a second inadequate and hostile offer on Thursday, November 3, 2011. Transatlantic filed an investor presentation on Friday, November 4, 2011, responding to the inadequate offer. The Company's response noted, among other things, that Validus' inadequate offer:
- writes down Transatlantic's balance sheet by $500 million through an unwarranted reserve charge;
- results in a pro forma balance sheet that is highly leveraged from both a debt-to-capital and catastrophe risk-to-surplus perspective;
- likely results in lower ratings than those currently enjoyed by Transatlantic;
- is unlikely to result in a pro forma company able to responsibly achieve indicated synergies while meeting the suggested return of capital; and
- dilutes Transatlantic's book value by 10 percent.(1)
While Validus has criticized the Transatlantic Board of Directors, the Company notes that the Board continues to oversee discussions with two other parties, as previously announced. Furthermore, Transatlantic has a clear path to provide long-term value creation for stockholders should nothing more attractive emerge from these other discussions.
The Board has always acted and will continue to act in the best interests of stockholders. It is fully committed to concluding this process in a responsible timeframe, not one dictated by Validus' self-interested deadlines.
Given its desire to focus on customers and brokers as the Company enters renewal season, as well as to conclude discussions with all third parties in a timely manner, Transatlantic is not interested in engaging in an ongoing daily public debate with Validus or any other party.
The investor presentation is available on Transatlantic's website at www.transre.com by clicking on the "Investor Information" tab and selecting "Presentations," and can be accessed on the SEC's website at www.sec.gov.
Goldman, Sachs & Co. and Moelis & Company LLC are acting as financial advisors and Gibson, Dunn & Crutcher LLP is acting as legal counsel to Transatlantic.
*Permission to use quote was neither sought nor obtained.
About Transatlantic Holdings, Inc.
Transatlantic Holdings, Inc. is a leading international reinsurance organization headquartered in New York, with operations on six continents. Its subsidiaries, Transatlantic Reinsurance Company®, Trans Re Zurich Reinsurance Company Ltd. and Putnam Reinsurance Company, offer reinsurance capacity on both a treaty and facultative basis
