Allied World Repurchases Warrants from AIG for $53.6M

Allied World Assurance Co. Holdings A.G., the insurer whose co-founders include Chubb Corp. and American International Group Inc. (AIG), has repurchased warrants from AIG for $53.6 million.  AIG was one of Allied World's founding shareholders when the company was established in 2001 along with Goldman Sachs, Swiss Re and The Chubb Corp. None of the founding shareholders has any warrants remaining or any other disclosed equity interests in the company.

Allied, based in Zug, Switzerland, funded the transaction with cash on hand, the insurer reported in a PR Newswire-issued statement.

The warrant, the last one held by AIG, allowed it to purchase 2 million Allied World shares for $34.20 apiece.

The provider of property, casualty and specialty insurance and reinsurance solutions, yesterday saw its stock price climb to $61.68 on the New York Stock Exchange, its highest level since July, 2006. Over the past year, Allied has climbed 35%.

Allied World has been systematically repurchasing securities from founding shareholders. In November, it agreed to buy 3.2 million shares and warrants to purchase 1.5 million shares from Goldman Sachs Group Inc. and other founding investors for $222.6 million. In August, the insurer bought back from Chubb a remaining warrant to purchase 2 million shares for $32.8 million, reports Bloomberg.

Allied World reports that the repurchase transactions are to be considered separate from a $500 million share-repurchase program approved in May 2010.

 

 

 

 

For reprint and licensing requests for this article, click here.
Core systems Data security Policy adminstration Security risk
MORE FROM DIGITAL INSURANCE