|[August 21, 2014]
Allied World to Acquire the Hong Kong and Singapore Operations of RSA, Significantly Expanding International Insurance Platform
ZUG, Switzerland --(Business Wire)--
Allied World Assurance Company Holdings, AG announced today that Allied
World Assurance Company, Ltd has reached definitive agreements to
acquire the Hong Kong and Singapore operations of Royal & Sun Alliance
Insurance plc ("RSA (News - Alert)") for approximately $215 million. The transaction
complements Allied World's global specialist insurance strategy by
providing meaningful additional scale in the region.
The business includes a niche group of specialty lines, including
casualty, construction and engineering, marine and property. RSA has a
long history in the region, with connections that go back over 40 years
in Hong Kong and over 180 years in Singapore. In 2013, the businesses
had total gross premiums written of approximately $250 million.
"This is a truly unique opportunity to acquire leading specialty
businesses in key Asian markets. This transaction will significantly
deepen and broaden our presence in Asia," said Scott Carmilani,
President and Chief Executive Officer. "The business brings regional
market leadership, complementary product offerings, extensive
distribution and an experienced and talented management team to Allied
World, strengthening our global insurance franchise."
Under the terms of the transaction, Allied World will acquire the
in-force portfolio and related assets and liabilities of both branches.
Allied World's current operations in Hong Kong and Singapore include an
established commercial insurance business.
Subject to adjustments, on completion, Allied World will fund the
purchase price of $215 million with cash on hand. In addition to the
purchase price, Allied World expects that an additional $90 million will
likely be required to appropriately capitalize the business on an
ongoing basis. The transaction, which is subject to regulatory approvals
in Singapore and Hong Kong as well as court approval in Singapore, is
expected to be completed during the first half of 2015 and to be
accretive to Allied World's earnings immediately.
Barclays is acting as financial advisor to Allied World and Baker &
McKenzie is acting as legal counsel.
About Allied World
Allied World Assurance Company Holdings, AG, through its subsidiaries
and brand known as Allied World, is a global provider of innovative
property, casualty and specialty insurance and reinsurance solutions.
Allied World offers superior client service through a global network of
offices and branches. All of Allied World's rated insurance and
reinsurance subsidiaries are rated A by A.M. Best Company, A by Standard
& Poor's, and A2 by Mody's, and our Lloyd's Syndicate 2232 is rated A+
by Standard & Poor's and Fitch.
Please visit the following for further information on Allied World: Web: www.awac.com |
Facebook (News - Alert): www.facebook.com/alliedworld |
LinkedIn (News - Alert): http://www.linkedin.com/company/Allied-World.
Conference Call and Investor Presentation
Allied World will host a conference call for analysts and investors on
Monday, August 25, 2014 at 9:00 a.m. (Eastern Time) to discuss the
details of this announcement. The public may access a live webcast of
the conference call at the "Investor Relations" section of the company's
website at http://www.awac.com.
In addition, the conference call can be accessed by dialing (888)
317-6003 (U.S. callers) or (412) 317-6061 (international callers) and
entering the passcode 1590703 approximately ten minutes prior to the
Following the conclusion of the presentation, a replay of the call will
be available through Friday, September 5, 2014 by dialing (877) 344-7529
(U.S. callers) or (412) 317-0088 (international callers) and entering
the passcode 10050964. In addition, the webcast will remain available
online through Friday, September 5, 2014 at http://www.awac.com.
An investor presentation detailing the transaction will be available at
the "Investor Relations" section of the company's website at http://www.awac.com.
Cautionary Statement Regarding Forward-Looking Statements
Any forward-looking statements made in this press release reflect our
current views with respect to future events and financial performance
and are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Such statements involve risks
and uncertainties, which may cause actual results to differ materially
from those set forth in these statements. For example, our
forward-looking statements could be affected by the occurrence of any
event, change or other circumstance that could give rise to the
termination of the definitive agreements with RSA; the inability to
receive the required regulatory approvals to complete the acquisitions;
risks that the proposed acquisitions disrupt each company's current
plans and operations; the ability to retain key personnel; the ability
to recognize the benefits of the acquisitions; the amount of costs,
fees, expenses and charges related to the acquisitions; pricing and
policy term trends; increased competition; the adequacy of our loss
reserves; negative rating agency actions; greater frequency or severity
of unpredictable catastrophic events; the impact of acts of terrorism
and acts of war; the company or its subsidiaries becoming subject to
significant income taxes in the United States or elsewhere; changes in
regulations or tax laws; changes in the availability, cost or quality of
reinsurance or retrocessional coverage; adverse general economic
conditions; and judicial, legislative, political and other governmental
developments, as well as management's response to these factors, and
other factors identified in our filings with the U.S. Securities and
Exchange Commission. You are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date on
which they are made. We are under no obligation (and expressly disclaim
any such obligation) to update or revise any forward-looking statement
that may be made from time to time, whether as a result of new
information, future developments or otherwise.
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