ZUG, Switzerland, Oct. 9, 2012 /PRNewswire/ -- Allied World Assurance Company Holdings, AG announced plans to expand its asset management business through the creation of a strategic partnership between MatlinPatterson and Allied World Financial Services Company, Inc., an Allied World subsidiary. Under the terms of the transaction, Allied World will become a minority owner of MatlinPatterson and will provide growth capital for the continued expansion of their asset management platform. Additionally, MatlinPatterson will manage $500 million of Allied World's portfolio, over time, in existing and future liquid credit strategies.
Scott Carmilani, Chairman and CEO of Allied World, commented: "This partnership solidifies a long-standing association between Allied World and MatlinPatterson co-founder Mark Patterson, who previously served on our Board of Directors. His advice and financial acumen have helped Allied World mature into the company it is today. This agreement will allow for a collaborative approach to investing in liquid credit strategies and is designed to maximize flexibility while maintaining a multi-year capital commitment. Both firms believe that this approach is best suited for the current investment environment."
Allied World recently launched its Financial Services Company under the direction of John Gauthier. This is part of our broader effort to diversify Allied World's earnings stream with business relationships that will complement our core property and casualty business, and will add further value to our shareholders.
Mr. Gauthier commented: "The goal of the Financial Services Company is to further the expertise of Allied World, while participating in the returns, as an owner, with trusted investment management and other business leaders."
Mark Patterson added: "The strategic partnership with Allied World provides us with additional strength and flexibility in the current market. I know the Allied World leadership very well and believe the combination of our teams will result in a strong and lasting partnership."
Allied World was advised by Berkshire Capital Securities LLC in this transaction.
About Allied World Assurance Company
Allied World Assurance Company Holdings, AG, through its subsidiaries, is a global provider of innovative property, casualty and specialty insurance and reinsurance solutions, offering 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 Moody's, and our Lloyd's Syndicate 2232 is rated A+ by Standard & Poor's and Fitch. Please visit www.awac.com for further information on Allied World.
MatlinPatterson comprises MatlinPatterson Global Advisers LLC, MatlinPatterson Capital Management L.P., MatlinPatterson Asset Management L.P. and their affiliates. MatlinPatterson sponsors and manages private equity funds, hedge funds and other alternative investment vehicles that participate in the distressed and credit markets on a global basis. The firm is headquartered in New York and has offices in London, Hong Kong and Cleveland.
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 pricing and policy term trends; increased competition; the impact of acts of terrorism and acts of war; greater frequency or severity of unpredictable catastrophic events; negative rating agency actions; the adequacy of our loss reserves; 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.
SOURCE Allied World Assurance Company Holdings, AG