A.M. Best Comments on Proposed Acquisition by Validus Holdings, Ltd. of Transatlantic Holdings, Inc.; No Rating Revisions

OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has commented that the financial strength rating of A- (Excellent) and issuer credit rating (ICR) of “a-” of Validus Reinsurance Ltd. (Validus) (Bermuda), as well as the ICR of “bbb-” and the indicative ratings of “bbb-”, “bb+” and “bb” of senior debt, subordinated debt and preferred stock shelf registration, respectively, of Validus Holdings, Ltd. (Validus Holdings) (Bermuda) (NYSE: VR) are unchanged following the recent unsolicited offer by Validus Holdings to acquire Transatlantic Holdings Inc. (Transatlantic). Presently, all the above ratings have a positive outlook.

“Risk Management and the Rating Process for Insurance Companies”

On July 13, 2011, Validus Holdings announced an unsolicited competing offer to acquire Transatlantic in a stock-for-stock merger, with a total consideration of $55.95 per Transatlantic share, which includes a pre-closing special cash dividend of $500 million. While A.M. Best believes the proposed transaction would be material to Validus, there are no rating implications at this time resulting from the offer itself.

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; “Understanding Universal BCAR”; “Rating Members of Insurance Groups”; and “A.M. Best’s Ratings & the Treatment of Debt.” Methodologies can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2011 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.