AIG Closes Secondary Offering Of Transatlantic Holdings, Inc. Shares

NEW YORK -- Jun. 10, 2009 -- American International Group, Inc. (AIG) announced today that it has closed the previously announced public offering of 29.9 million shares of Transatlantic Holdings, Inc. (NYSE: TRH) common stock owned by AIG and its indirect subsidiary, American Home Assurance Company (AHAC) for aggregate gross proceeds of $1.136 billion. TRH will not receive any of the proceeds from the secondary offering.

This transaction enabled AHAC, a subsidiary of AIU Holdings, Inc. (together with AIU Holdings LLC, “AIU Holdings”), to monetize part of its investment in TRH to improve the quality of its capital and help position AIU Holdings for continued success.

Article continues below...

The secondary offering was made through a syndicate of underwriters, led by J.P. Morgan Securities Inc., Goldman, Sachs & Co., and Morgan Stanley & Co. as joint book-running managers with Lazard Capital Markets LLC as co-lead underwriter. Dowling & Partners and Fox-Pitt Kelton Cochran Caronia Waller acted as co-managers of the offering.

At the close of the secondary offering AHAC owns 9,192,662 common shares of Transatlantic Holdings, Inc. representing approximately 13.9 percent of Transatlantic Holdings Inc.’s common shares issued and outstanding.

Source: American International Group, Inc.