Validus Holdings Ltd., a company offering reinsurance, insurance and insurance-linked securities management operating through Validus Reinsurance Ltd., Talbot Holdings Ltd. and AlphaCat Managers Ltd., has signed a definitive agreement to acquire Western World Insurance Group Inc.
Western World, through its subsidiaries, is a specialty lines insurance company. Validus intends to have Western World operate as a standalone business within Validus, led by its current management team and preserving Western World’s name and brand equity.
Western World’s owners will receive $690 million in cash in exchange for 100 percent of the outstanding stock of Western World. Western World’s March 31, 2014, adjusted GAAP book value is estimated to be $518.3 million. Validus will use existing funds for the transaction and anticipates the closing to take place on or about the end of the third quarter of 2014. The closing is subject to the obtaining of required regulatory approvals and the satisfaction of other customary closing conditions.
Validus brings capital and expertise in short-tail classes of business, said Western World. This will advance all of Western World’s underwriting divisions.
