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Subsequent Events
6 Months Ended
Jun. 30, 2011
Subsequent Events  
Subsequent Events
17. SUBSEQUENT EVENTS
     Allied World Switzerland entered into a definitive agreement and plan of merger (the "Merger Agreement") on June 12, 2011 with GO Sub, LLC, a newly formed Delaware limited liability company and a wholly-owned subsidiary of Allied World Switzerland ("Merger Sub"), and Transatlantic Holdings, Inc. ("Transatlantic"), a Delaware corporation. The Merger Agreement provides for the merger of Merger Sub with and into Transatlantic, with Transatlantic continuing as the surviving corporation and a wholly-owned subsidiary of Allied World Switzerland. Transatlantic offers reinsurance capacity for a full range of property and casualty products, directly and through brokers, to insurance and reinsurance companies, in both the domestic and international markets on both a treaty and facultative basis. Upon completion of the merger, Allied World Switzerland will be the parent company of Transatlantic and Allied World Switzerland's name will be changed to "TransAllied Group Holdings, AG."

     Pursuant to the terms of the Merger Agreement, stockholders of Transatlantic will be entitled to receive 0.88 shares of Allied World Switzerland for each share of Transatlantic together with cash in lieu of any fractional shares, as applicable. The transaction is expected to be completed during the fourth quarter of 2011 subject to the satisfaction of customary closing conditions, including regulatory approvals. The transaction will be accounted for using the acquisition method of accounting with Transatlantic being considered the acquirer for accounting purposes. Accordingly, the assets, liabilities and commitments of Allied World Switzerland will be recorded at their fair values on the acquisition date.
     On May 5, 2011, the shareholders approved the Company's proposal to pay dividends in the form of a distribution by way of par value reduction. The aggregate reduction amount will be paid to shareholders in quarterly installments of $0.375 per share. The Company made the first such quarterly dividend payment on August 5, 2011 to shareholders of record on July 27, 2011. The amount of the par value reduction was CHF 0.30, based on the exchange rate as of July 18, 2011.