##### Table of Contents





As filed with the U.S. Securities and
    Exchange Commission on July 7, 2011
 Registration
    No. 333-
    UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION
 Washington, D.C.
    20549
  Form S-4
 REGISTRATION STATEMENT
 UNDER
 THE SECURITIES ACT OF 1933
  Allied World Assurance Company
    Holdings, AG
 (Exact name of registrant as
    specified in its charter)
 Switzerland

6331

98-0681223(State or Other Jurisdiction of
    Incorporation or Organization)

(Primary Standard Industrial
    Classification Code Number)

(I.R.S. Employer
    Identification No.)   Lindenstrasse 8, 6340
    Baar
 Zug, Switzerland
 41-41-768-1080
 (Address, including ZIP Code,
    and Telephone Number, including Area Code, of Registrants
    Principal Executive Offices)
  CT Corporation System
 111 Eighth Avenue, 13th
    Floor
 New York, New York
    10011
 (212) 894-8940
 (Name, Address, including ZIP
    Code, and Telephone Number, including Area Code, of Agent for
    Service)
  Copies to:
  Steven A. Seidman, Esq.
    Jeffrey S. Hochman, Esq.
    Willkie Farr & Gallagher LLP
    787 Seventh Avenue
    New York, NY 10019
    (212) 728-8000

Wesley D. Dupont, Esq.
    Allied World Assurance Company Holdings, AG
    Lindenstrasse 8
    6340 Baar
    Zug, Switzerland
    (441) 278-5400

Gary A. Schwartz, Esq.
    Transatlantic Holdings, Inc.
    80 Pine Street
    New York, NY 10005
    (212) 365-2200

Lois Herzeca, Esq.
    Gibson, Dunn & Crutcher LLP
    200 Park Avenue
    New York, NY 10166
    (212) 351-4000    Approximate date of commencement of proposed sale of the
    securities to the public:
  o
  o
  o
  12b-2
  Large
    accelerated
    filer þ
    Accelerated
    filer o
    Non-accelerated
    filer o
    Smaller reporting
    company o (Do not check if a smaller
    reporting company)
    o
  o
  CALCULATION OF REGISTRATION
    FEE
  Proposed Maximum


Proposed Maximum


Amount ofTitle of Each Class of


Amount


Offering


Aggregate


RegistrationSecurities to be Registered


to be Registered


Price per Share


Offering Price


FeeCommon Shares


57,016,384(1)


N/A


$3,172,184,251.20(2)


$368,290.59(3)   (1)
    Represents the estimated maximum number of the Registrants
    common shares to be issued pursuant to the merger agreement
    described herein. The number of common shares is based on the
    number of shares of Transatlantic Holdings, Inc.
    (Transatlantic) common stock (Transatlantic
    common stock) outstanding as of July 5, 2011 and
    potentially issuable pursuant to Transatlantic stock options and
    stock-based awards prior to closing.(2)
    Estimated solely for purposes of calculating the registration
    fee required by Section 6(b) of the Securities Act and
    calculated pursuant to Rules 457(f)(1) and 457(c) under the
    Securities Act. The proposed maximum aggregate offering price of
    the Registrants common shares was calculated based upon
    the market value of shares of Transatlantic common stock (the
    securities to be cancelled in the merger) in accordance with
    Rule 457(c) under the Securities Act as follows: the
    product of (a) $48.96, the average of the high and low prices
    per share of Transatlantic common stock on July 5, 2011, as
    quoted on the New York Stock Exchange, multiplied by
    (b) 64,791,345, the estimated number of shares of
    Transatlantic common stock outstanding as of July 5, 2011
    and potentially issuable pursuant to Transatlantic options and
    stock-based awards prior to closing.(3)
    Determined in accordance with Section 6(b) of the
    Securities Act at a rate equal to $116.10 per $1,000,000 of the
    proposed maximum aggregate offering price.  The Registrant hereby amends this Registration Statement on
    such date or dates as may be necessary to delay its effective
    date until the Registrant shall file a further amendment which
    specifically states that this Registration Statement shall
    thereafter become effective in accordance with Section 8(a)
    of the Securities Act, or until the Registration Statement shall
    become effective on such dates as the Securities and Exchange
    Commission, acting pursuant to said Section 8(a), may
    determine.




---



##### Table of Contents



Information
contained herein is subject to completion or amendment. A
registration statement relating to these securities has been
filed with the Securities and Exchange Commission. These
securities may not be sold nor may offers to buy be accepted
prior to the time the registration statement becomes effective.
This joint proxy statement/prospectus shall not constitute an
offer to sell or the solicitation of an offer to buy, nor shall
there be any sale of such securities, in any jurisdiction in
which such offer, solicitation or sale would be unlawful prior
to appropriate registration or qualification under the
securities laws of such jurisdiction.


PRELIMINARY  SUBJECT
    TO COMPLETION  DATED July 7, 2011
     PROPOSED MERGER  YOUR VOTE IS VERY IMPORTANT
    Namenaktien We urge you to obtain current market
    quotations of Allied World shares and Transatlantic common
    stock.
      Your vote is very important, regardless of the number
    of shares you own. Whether or not you expect to attend either
    Special Shareholder Meeting in person, please submit a proxy to
    vote your shares as promptly as possible so that your shares may
    be represented and voted at the Allied World or Transatlantic
    Special Shareholder Meeting, as applicable.
  The Allied World board of directors has unanimously approved
    the merger agreement and determined that the merger agreement
    and the transactions contemplated thereby are in the best
    interests of Allied World. The Allied World board of directors
    unanimously recommends that the Allied World shareholders vote
    (i) FOR the proposals to increase the ordinary
    share capital, (ii) FOR the




---



##### Table of Contents



proposal to issue shares of Allied World in the merger,
    (iii) FOR the proposal to amend Allied
    Worlds Articles of Association to change the
    companys name, (iv) FOR the proposal to
    elect directors to the combined companys board of
    directors, (v) FOR the proposal to effect a
    capital reduction to allow for the payment of a dividend to the
    combined companys shareholders after the completion of the
    merger and (vi) FOR the proposal to approve the
    fourth amendment and restatement of the Allied World Third
    Amended and Restated 2004 Stock Incentive Plan.
  The Transatlantic board of directors has unanimously approved
    the merger agreement and determined that the merger agreement
    and the transactions contemplated thereby are in the best
    interests of Transatlantic and its stockholders. The
    Transatlantic board of directors unanimously recommends that
    Transatlantic stockholders vote (i) FOR the
    proposal to adopt the merger agreement,
    (ii) FOR the proposal to approve adjournment of
    the Transatlantic Special Shareholder Meeting, if necessary or
    appropriate, to solicit additional proxies and
    (iii) FOR the proposal to approve, on an
    advisory (non-binding) basis, the compensation that may be paid
    or become payable to Transatlantics named executive
    officers in connection with the merger and the agreements and
    understandings pursuant to which such compensation may be paid
    or become payable.
  You should
    read this joint proxy statement/prospectus carefully and in its
    entirety before voting, including the section entitled
    Risk Factors beginning on page 22.
      Scott A. Carmilani
    Chairman, President and Chief Executive Officer
    Allied World Assurance Company Holdings, AG

Richard S. Press
    Chairman of the Board of Directors
    Transatlantic Holdings, Inc.   Neither the Securities and Exchange Commission nor any state
    securities commission has approved or disapproved of the
    securities to be issued under this joint proxy
    statement/prospectus or determined if this joint proxy
    statement/prospectus is truthful or complete. Any representation
    to the contrary is a criminal offense.




---



##### Table of Contents



ALLIED WORLD ASSURANCE COMPANY
    HOLDINGS, AGLindenstrasse 8, 6340 Baar
    Zug, Switzerland
  NOTICE OF SPECIAL SHAREHOLDER
    MEETING
    TO BE HELD
    ON          ,
    2011
        
    to consider and vote on the proposal to increase Allied
    Worlds ordinary share capital pursuant to
    article 3a(a) of the Articles of Association of Allied
    World, a copy of which is included as Annex D to the joint
    proxy statement/prospectus of which this notice forms a part
    (the Allied World Articles), by
    CHF          (equaling
    USD          )
    to
    CHF          (equaling
    USD          )
    by the issuance
    of          
    Allied World registered shares (Namenaktien)
    (Allied World shares) to Transatlantic Holdings,
    Inc. (Transatlantic) stockholders pursuant to, and
    only in connection with, the merger as contemplated by the
    Agreement and Plan of Merger, dated as of June 12, 2011, by
    and among Allied World, Transatlantic and GO Sub, LLC, a
    Delaware limited liability company and a wholly-owned subsidiary
    of Allied World (the merger agreement), a copy of
    which is included as Annex A to the joint proxy
    statement/prospectus of which this notice forms a part,
    including the exclusion of all preferential subscription rights
    to which Allied World shareholders may be entitled; the
    contributions for the new registered shares are paid by
    converting existing reserves (Kapitalreserven) into share
    capital;
    to consider and vote on the proposal to increase Allied
    Worlds conditional share capital pursuant to
    article 5(a) of the Allied World Articles by
    CHF          (equaling
    USD          )
    to
    CHF          
    (equaling
    USD          ),
    only in connection with the merger;
    to consider and vote on the proposal to increase Allied
    Worlds authorized share capital pursuant to
    article 6(a) of the Allied World Articles by
    CHF          (equaling
    USD          )
    to
    CHF          
    (equaling
    USD          ),
    only in connection with the merger;
    to consider and vote on the proposal to issue Allied World
    shares to Transatlantic stockholders pursuant to the merger and
    as contemplated by the merger agreement as required by New York
    Stock Exchange (NYSE) rules;
    to consider and vote on the proposal to amend article 1 of
    the Allied World Articles to change Allied Worlds name to
    TransAllied Group Holdings, AG
    (TransAllied) immediately following, and conditioned
    upon, the completion of the merger; and
    to elect (x) three Class II directors to hold office
    commencing upon the completion of the merger and ending upon
    TransAllieds Annual Shareholder Meeting in 2012,
    (y) four Class III directors to hold office commencing
    upon the completion of the merger and ending upon
    TransAllieds Annual Shareholder Meeting in 2013 and
    (z) four Class I directors to hold office commencing
    upon the completion of the merger and ending upon
    TransAllieds Annual Shareholder Meeting in 2014.




---



##### Table of Contents




    to consider and vote on the proposal to effect a capital
    reduction to allow for the payment of a dividend to the combined
    companys shareholders after the completion of the
    merger; and
    to consider and vote on the proposal to amend and restate the
    Allied World Third Amended and Restated 2004 Stock Incentive
    Plan (the Stock Incentive Plan), the form of which
    is included as Annex E to the joint proxy
    statement/prospectus of which this notice forms a part, to,
    among other things, increase the number of shares reserved for
    issuance under the Stock Incentive Plan and extend the Stock
    Incentive Plans termination date, effective upon the
    completion of the merger.    The Allied World board of directors unanimously
    recommends that Allied World shareholders vote FOR
    each of the proposals set forth above.
    2 3
  Your vote is very important. Whether or not you expect to
    attend in person, we urge you to submit a proxy to vote your
    shares as promptly as possible by signing and returning the
    enclosed proxy card in the postage-paid envelope provided, so
    that your shares may be represented and voted at the Allied
    World Special Shareholder Meeting. If your shares are held in an
    Allied World plan or in the name of a bank, brokerage firm or
    other nominee, please follow the instructions on the voting
    instruction card furnished by the plan trustee or administrator,
    or record holder, as appropriate.




---



##### Table of Contents



MacKenzie Partners, Inc.
   (800) 322-2885
  (212) 929-5500
 E-mail:




---



##### Table of Contents



TRANSATLANTIC HOLDINGS, INC.80 Pine Street
    New York, NY 10005
  NOTICE OF SPECIAL MEETING OF
    STOCKHOLDERS
    TO BE HELD
    ON          ,
    2011
        
    to consider and vote on the proposal to adopt the Agreement and
    Plan of Merger, dated as of June 12, 2011 (the merger
    agreement), by and among Allied World Assurance Company
    Holdings, AG (Allied World), Transatlantic and GO
    Sub, LLC, a Delaware limited liability company and a
    wholly-owned subsidiary of Allied World, a copy of which is
    included as Annex A to the joint proxy statement/prospectus
    of which this notice forms a part;
    to consider and vote upon the proposal to adjourn the
    Transatlantic Special Shareholder Meeting, if necessary or
    appropriate, to solicit additional proxies if there are not
    sufficient votes to approve the foregoing proposal; and
    to consider and vote on a proposal, on an advisory (non-binding)
    basis, to approve the compensation that may be paid or become
    payable to Transatlantics named executive officers in
    connection with the merger, and the agreements and
    understandings pursuant to which such compensation may be paid
    or become payable, as described in the section entitled
    The Merger  Interests of Transatlantics
    Directors and Executive Officers in the Merger 
    Golden Parachute Compensation.      The Transatlantic board of directors
    unanimously recommends that Transatlantic stockholders vote
    FOR each of the proposals set forth above.




---



##### Table of Contents



Your vote is very important. Whether or not you expect to
    attend the Transatlantic Special Shareholder Meeting in person,
    we urge you to submit a proxy to vote your shares as promptly as
    possible by either: (1) logging
    onto          
    and following the instructions on your proxy card;
    (2) dialing          
    and listening for further directions; or (3) signing and
    returning the enclosed proxy card in the postage-paid envelope
    provided, so that your shares may be represented and voted at
    the Transatlantic Special Shareholder Meeting. If your shares
    are held in the name of a bank, brokerage firm or other nominee,
    please follow the instructions on the voting instruction card
    furnished by the record holder, as appropriate.
    Georgeson Inc.
   (888) 613-9817
 (212) 440-9800)
 E-mail:




---



##### Table of Contents



ADDITIONAL
    INFORMATION
    MacKenzie Partners, Inc.

Georgeson Inc.105 Madison Avenue

199 Water StreetNew York, NY 10016

New York, NY 10038(800)
    322-2885

(888) 613-9817or

(Banks and brokers please call: (212) 440-9800)(212)
    929-5500
    (collect)

E-mail: transatlantic@georgeson.comE-mail: proxy@mackenziepartners.comor

orAllied World Assurance Company Holdings, AG

Transatlantic Holdings, Inc.Lindenstrasse 8, 6340 Baar

80 Pine StreetZug, Switzerland

New York, NY 10005Attn.: Corporate Secretary

Attn.:  Investor Relations(441)
    278-5400

(212) 365-2200   www.awac.com www.transre.com not
  If you would like to request any documents, please do so
    by          ,
    2011 in order to receive them before the meetings.




---



##### Table of Contents



ABOUT
    THIS JOINT PROXY STATEMENT/PROSPECTUS
  Form S-4
    This joint proxy statement/prospectus does not constitute an
    offer to sell, or a solicitation of an offer to buy, any
    securities, or the solicitation of a proxy, in any jurisdiction
    to or from any person to whom it is unlawful to make any such
    offer or solicitation. Information contained in this joint proxy
    statement/prospectus regarding Allied World has been provided by
    Allied World and information contained in this joint proxy
    statement/prospectus regarding Transatlantic has been provided
    by Transatlantic.




---



##### Table of Contents



TABLE OF
    CONTENTS
   
 PageQUESTIONS AND ANSWERS


iiiSUMMARY


1The Companies


1The Merger


2The Meetings


10Summary Historical Consolidated Financial Data


13Summary Unaudited Pro Forma Condensed
    Consolidated Financial Information of Allied World and
    Transatlantic


17Unaudited Comparative Per Share Data


20SPECIAL NOTE REGARDING FORWARD-LOOKING
    STATEMENTS


21RISK FACTORS


22Risk Factors Relating to the Merger


22Risk Factors Relating to the Combined Company
    Following the Merger


25Other Risk Factors of Allied World and
    Transatlantic


28THE COMPANIES


29THE ALLIED WORLD SPECIAL SHAREHOLDER MEETING


30THE TRANSATLANTIC SPECIAL SHAREHOLDER MEETING


36THE MERGER


42Effects of the Merger


42Background of the Merger


42Allied Worlds Reasons for the Merger;
    Recommendations of the Allied World Board of Directors


51Opinion of Allied Worlds Financial
    Advisor


53Certain Allied World Prospective Financial
    Information


63Transatlantics Reasons for the Merger;
    Recommendations of the Transatlantic Board of Directors


64Opinion of Transatlantics Financial
    Advisor


68Certain Information Regarding
    Transatlantics Financial Advisor  Goldman
    Sachs


76Certain Transatlantic Prospective Financial
    Information


76Interests of Allied Worlds Directors and
    Executive Officers in the Merger


78Interests of Transatlantics Directors and
    Executive Officers in the Merger


78Board of Directors and Management Following the
    Merger


81Regulatory Clearances Required for the Merger


82Exchange of Shares in the Merger


83Treatment of Transatlantic Stock Options and
    Other
    Long-Term
    Incentive Awards


84Dividend Policy


84Listing of Allied World Shares


85De-Listing and Deregistration of Transatlantic
    Common Stock


85No Appraisal Rights


85Litigation Related to the Merger


85The Combined Companys Share Repurchase
    Program Post-Merger


86THE MERGER AGREEMENT


87Terms of the Merger; Merger Consideration


87Completion of the Merger


88Exchange of Shares in the Merger


88Representations and Warranties


88Conduct of Business


91No Solicitation of Alternative Proposals


92Changes in Board Recommendations


93Efforts to Obtain Required Stockholder Votes


93Efforts to Complete the Merger


94Governance Matters After the Merger


95Transatlantic Common Stock Purchase


96Cantonal Tax Ruling


96Swiss Commercial Register Ruling


96Retention Program and Employee Waivers


96Treatment of Transatlantic Stock Options and
    Other Stock-Based Awards and Programs


96




---



##### Table of Contents



PageOther Covenants and Agreements


97Conditions to Completion of the Merger


98Termination of the Merger Agreement


99Expenses and Termination Fees; Liability for
    Breach


99Amendments, Extensions and Waivers


101No Third Party Beneficiaries


102Specific Performance


102CAPITAL INCREASES


103NYSE SHARE ISSUANCE


105AMENDED AND RESTATED ARTICLES OF ASSOCIATION
    OF ALLIED WORLD


106CAPITAL REDUCTION


107ELECTION OF DIRECTORS


113TRANSALLIED GROUP HOLDINGS, AG FOURTH AMENDED AND
    RESTATED 2004 STOCK INCENTIVE PLAN


115MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES


121ACCOUNTING TREATMENT


123UNAUDITED PRO FORMA CONDENSED CONSOLIDATED
    FINANCIAL INFORMATION


124Pro Forma Condensed Consolidated Balance Sheet as
    of March 31, 2011


125Pro Forma Condensed Consolidated Statement of
    Operations for the Three Months Ended March 31, 2011


126Pro Forma Condensed Consolidated Statement of
    Operations for the Twelve Months Ended December 31, 2010


127Notes to the Pro Forma Condensed
    Consolidated Financial Information


128COMPARATIVE STOCK PRICE DATA AND DIVIDENDS


137DESCRIPTION OF ALLIED WORLD SHARE CAPITAL


138Authorized Share Capital


138Other Classes or Series of Shares


138Voting Rights


138Compulsory Acquisitions; Appraisal Rights


140Quorum


141Dividends and Other Payments to Shareholders


141Preemptive Rights and Advance Subscription
    Rights


142Participation Certificates


143New Shares


144Antitakeover Provisions


144Liquidation Rights


145No Redemption; Repurchase


145Stock Exchange Listing


145No Sinking Fund


145Transfer; Transfer Agent


145COMPARISON OF RIGHTS OF TRANSALLIED SHAREHOLDERS
    AND TRANSATLANTIC STOCKHOLDERS


146LEGAL MATTERS


157EXPERTS


157FUTURE STOCKHOLDER PROPOSALS


158HOUSEHOLDING OF JOINT PROXY
    STATEMENT/PROSPECTUS


158OTHER MATTERS


159WHERE YOU CAN FIND MORE INFORMATION


159Annex A  Agreement and Plan
    of Merger, dated as of June 12, 2011


A-1Annex B  Opinion of Deutsche
    Bank Securities Inc.


B-1Annex C  Opinion of Moelis
    & Company LLC


C-1Annex D  Form of Articles of
    Association of TransAllied Group Holdings, AG


D-1Annex E  Form of TransAllied
    Group Holdings, AG Fourth Amended and Restated 2004 Stock
    Incentive Plan


E-1PART II INFORMATION NOT REQUIRED IN
    PROSPECTUS; UNDERTAKINGS


II-1EX-23.2EX-23.3EX-99.1EX-99.2EX-99.3EX-99.4   ii




---



##### Table of Contents



QUESTIONS
    AND ANSWERS    Q:
    
    Why am I receiving this joint proxy statement/prospectus?A:
    
    Allied World and Transatlantic have agreed to a strategic
    business combination pursuant to the terms of the merger
    agreement that is described in this joint proxy
    statement/prospectus. A copy of the merger agreement is included
    in this joint proxy statement/prospectus as Annex A.In order to complete the merger, among other things: Allied World shareholders must approve the proposal
    to increase Allied Worlds ordinary share capital pursuant
    to article 3a(a) of the Articles of Association of Allied
    World Assurance Company Holdings, AG (the Allied World
    Articles), by
    CHF          (equaling
    USD          )
    to
    CHF          (equaling
    USD          )
    by the issuance
    of          
    registered shares (Namenaktien) of Allied World Assurance
    Company Holdings, AG (Allied World shares) to
    Transatlantic stockholders pursuant to, and only in connection
    with, the merger as contemplated by the merger agreement,
    including the exclusion of all preferential subscription rights
    to which Allied World shareholders may be entitled (the
    article 3 share capital increase
    proposal); the contributions for the new registered shares
    are paid by converting existing reserves
    (Kapitalreserven) into share capital; Allied World shareholders must approve the proposal
    to increase Allied Worlds conditional share capital
    pursuant to article 5(a) of the Allied World Articles by
    CHF          (equaling
    USD          )
    to
    CHF          (equaling
    USD          ),
    only in connection with the completion of the merger (the
    article 5 share capital increase proposal); Allied World shareholders must approve the proposal
    to increase Allied Worlds authorized share capital
    pursuant to article 6(a) of the Allied World Articles by
    CHF          (equaling
    USD          )
    to
    CHF          (equaling
    USD          ),
    only in connection with the merger (the
    article 6 share capital increase proposal
    and, together with the article 3 share capital
    increase proposal and the article 5 share capital
    increase proposal, the share capital increase
    proposals); Allied World shareholders must approve the proposal
    to issue Allied World shares to Transatlantic stockholders
    pursuant to the merger and as contemplated by the merger
    agreement as required by NYSE rules (the NYSE share
    issuance proposal); Allied World shareholders must approve the proposal
    to amend the Allied World Articles to change Allied Worlds
    name to TransAllied Group Holdings, AG (Allied World
    and Transatlantic after the merger, TransAllied or
    the combined company) immediately following, and
    conditioned upon, the completion of the merger (the name
    change proposal); Allied World shareholders must approve the proposal
    to elect (x) three Class II directors to hold office
    commencing upon the completion of the merger and ending upon
    TransAllieds annual general meeting of shareholders
    (Annual Shareholder Meeting) in 2012, (y) four
    Class III directors to hold office commencing upon the
    completion of the merger and ending upon TransAllieds
    Annual Shareholder Meeting in 2013 and (z) four
    Class I directors to hold office commencing upon the
    completion of the merger and ending upon TransAllieds
    Annual Shareholder Meeting in 2014 (the election of
    directors proposal); and iii




---



##### Table of Contents



 Transatlantic stockholders must approve the proposal
    to adopt the merger agreement (the adoption of the merger
    agreement proposal).In addition, Allied World is soliciting proxies from its
    shareholders with respect to two additional proposals, the
    approval of the second proposal is conditioned upon the
    completion of the merger; however, completion of the merger is
    not conditioned upon receipt of either of these approvals: Allied World shareholders are being asked to
    consider and vote upon the proposal to effect a capital
    reduction to allow for the payment of a dividend to the combined
    companys shareholders after the completion of the merger
    (the capital reduction proposal); and Allied World shareholders are being asked to
    consider and vote on the proposal to amend and restate the
    Allied World Third Amended and Restated 2004 Stock Incentive
    Plan (the Stock Incentive Plan), the form of which
    is included as Annex E to this joint proxy
    statement/prospectus, to, among other things, increase the
    number of shares reserved for issuance under the Plan and to
    extend the Plans termination date, effective upon the
    completion of the merger (the Stock Incentive Plan
    proposal).In addition, Transatlantic is soliciting proxies from its
    stockholders with respect to two additional proposals;
    completion of the merger is not conditioned upon receipt of
    these approvals: Transatlantic stockholders are being asked to
    consider and vote upon the proposal to adjourn the special
    meeting of Transatlantic stockholders (the Transatlantic
    Special Shareholder Meeting), if necessary or appropriate,
    to solicit additional proxies if there are not sufficient votes
    to approve the adoption of the merger agreement proposal (the
    adjournment proposal); and Transatlantic stockholders are being asked to
    consider and vote on a proposal, on an advisory (non-binding)
    basis, to approve the compensation that may be paid or become
    payable to Transatlantics named executive officers in
    connection with the merger, and the agreements and
    understandings pursuant to which such compensation may be paid
    or become payable, as described in the section entitled
    The Merger  Interests of Transatlantics
    Directors and Executive Officers in the Merger 
    Golden Parachute Compensation (the golden parachute
    proposal).Allied World and Transatlantic will hold separate meetings of
    the holders of their shares to obtain these approvals. This
    joint proxy statement/prospectus, including its Annexes,
    contains and incorporates by reference important information
    about Allied World and Transatlantic, the merger and the
    meetings of the holders of shares of Allied World and
    Transatlantic. You should read all the available information
    carefully and in its entirety.Q:
    
    What will I receive in the merger?A:
    
    Allied World Shareholders:  If the merger is
    completed, Allied World shareholders will not receive any merger
    consideration and will continue to hold the shares of Allied
    World which they currently hold. The share capital of Allied
    World consists of the outstanding Allied World shares and
    non-voting participation certificates (Allied World
    non-voting shares).Transatlantic Stockholders:  If the merger is
    completed, holders of Transatlantic common stock will receive
    0.88 Allied World shares for each share of Transatlantic common
    stock they hold at the effective time of the merger.
    Transatlantic stockholders will not receive any Allied World
    fractional shares in the merger. Instead, Allied World will pay
    cash in lieu of any Allied World fractional shares that a
    Transatlantic stockholder would otherwise have been entitled to
    receive.Following the merger, the combined companys common shares
    will be traded on the NYSE under the symbol TAG.Q:
    
    What is the value of the merger consideration?A:
    
    Because Allied World will issue 0.88 Allied World shares in
    exchange for each share of Transatlantic common stock, the value
    of the merger consideration that Transatlantic stockholders
    receive will depend on the price of Allied World shares at the
    effective time of the merger. That price will not be known at
    the time of the Special Shareholder Meetings and may be more or
    less than the current price or the price at the time of the
    meetings. We urge you to obtain current market quotations of
    Allied World shares and Transatlantic common stock. iv




---



##### Table of Contents



Q:
    
    When and where will the meetings be held?A:
    
    Allied World Shareholders:  The extraordinary
    general meeting of Allied World shareholders (the Allied
    World Special Shareholder Meeting) will be held at Allied
    Worlds corporate headquarters, Lindenstrasse 8, 6340 Baar,
    Zug, Switzerland,
    on          ,
    2011, at [2:00] p.m. local time.Transatlantic Stockholders:  The Transatlantic
    Special Shareholder Meeting will be held
    at          ,
    on          ,
    2011, at [8:00] a.m. local time.Q:
    
    Who is entitled to vote at the meetings?A:
    
    Allied World Shareholders:  The Allied World
    board of directors has
    set          ,
    2011 (the Allied World record date) as the record
    date for the Allied World Special Shareholder Meeting. Only
    holders of record of Allied World shares as of the close of
    business on the Allied World record date are entitled to notice
    of, and to vote at, the Allied World Special Shareholder Meeting
    or any adjournment or postponement of the Allied World Special
    Shareholder Meeting. Holders of Allied World non-voting shares
    will receive this joint proxy statement/prospectus but are not
    entitled to participate in or vote at the Allied World Special
    Shareholder Meeting. As of the Allied World record date, there
    were          
    Allied World shares
    and          Allied
    World non-voting shares outstanding. Beneficial owners of Allied
    World shares and shareholders registered in the Allied World
    share register with Allied World shares at the close of business
    on the Allied World record date are entitled to vote at the
    Allied World Special Shareholder Meeting, except as provided
    below. If you ask to be registered as a shareholder of record
    with respect to your Allied World shares in Allied Worlds
    share register and become a shareholder of record for those
    shares (as opposed to a beneficial holder of shares held in
    street name) after the Allied World record date, but
    on or
    before          ,
    2011, and want to vote those shares at the Allied World Special
    Shareholder Meeting, you will need for identification purposes
    to obtain a proxy from the registered voting rights record
    holder of those shares as of the Allied World record date to
    vote your shares in person at the Allied World Special
    Shareholder Meeting. Alternatively, you may also obtain the
    proxy materials by contacting the Corporate Secretary,
    attention: Wesley D. Dupont, at Allied World Assurance Company
    Holdings, AG, Lindenstrasse 8, 6340 Baar, Zug, Switzerland, or
    via e-mail
    at secretary@awac.com. If you are a record holder of Allied
    World shares (as opposed to a beneficial holder of shares held
    in street name) on the record date but sell your
    Allied World shares prior
    to          ,
    2011 you will not be entitled to vote those shares at the Allied
    World Special Shareholder Meeting.Transatlantic Stockholders:  The Transatlantic
    board of directors has
    set          ,
    2011 (the Transatlantic record date) as the record
    date for the Transatlantic Special Shareholder Meeting. Only
    holders of record of outstanding shares of Transatlantic common
    stock as of the close of business on the Transatlantic record
    date are entitled to notice of, and to vote at, the
    Transatlantic Special Shareholder Meeting or any adjournment or
    postponement of the Transatlantic Special Shareholder Meeting.
    As of the Transatlantic record date, there
    were           shares
    of Transatlantic common stock outstanding.Q:
    
    What constitutes a quorum at the meetings?A:
    
    Allied World Shareholders:  A quorum is
    required to transact business at the Allied World Special
    Shareholder Meeting. Without giving effect to the limitation on
    voting rights described below, the quorum required at the Allied
    World Special Shareholder Meeting is that two or more persons
    present in person and representing in person or by proxy
    throughout the meeting more than 50% of the total issued and
    outstanding Allied World shares are present throughout the
    meeting. The Allied World board of directors or chairman of the
    Allied World board of directors may postpone the meeting with
    sufficient factual reason, provided that notice of postponement
    is given to the shareholders in the same form as the invitation
    before the time for such meeting. A new notice is then required
    to hold the postponed meeting. Under Swiss law, a general
    meeting of shareholders for which a notice of meeting has been
    duly published may not be adjourned without publishing a new
    notice of meeting.With respect to the article 3 share capital increase
    proposal, the article 5 share capital increase
    proposal, the article 6 share capital increase
    proposal, the name change proposal, the election of directors
    proposal and the capital reduction proposal, abstentions will be
    counted toward the presence of a quorum at, but v




---



##### Table of Contents



will not be considered votes cast on any of these proposals
    brought before the Allied World Special Shareholder Meeting.
    With respect to the NYSE share issuance proposal and the Stock
    Incentive Plan proposal abstentions will count as votes cast on
    these proposals brought before the Allied World Special
    Shareholder Meeting.While broker non-votes would generally be counted
    for purposes of establishing a quorum for the Allied World
    Special Shareholder Meeting, because the nature of the proposals
    to be voted on by the Allied World shareholders at the Allied
    World Special Shareholder Meeting are all
    non-routine matters for which your broker does not
    have discretionary voting authority, there will be no
    broker non-votes for purposes of the Allied World
    Special Shareholder Meeting.Transatlantic Stockholders:  Stockholders who
    hold shares representing at least a majority of the aggregate
    voting power of the outstanding capital stock entitled to vote
    at the Transatlantic Special Shareholder Meeting must be present
    in person or represented by proxy to constitute a quorum for the
    transaction of business at the Transatlantic Special Shareholder
    Meeting. The Transatlantic stockholders, by a majority vote at
    the meeting by the holders of Transatlantic common stock
    entitled to vote and present in person or by proxy, whether or
    not a quorum is present, may adjourn the meeting to another time
    or place without further notice unless the adjournment is for
    more than 30 days or, if after the adjournment, a new
    record date is fixed for the adjourned meeting, in which case a
    notice of the adjourned meeting shall be given to each
    stockholder of record entitled to vote at the adjourned meeting.Abstentions will be included in the calculation of the number of
    shares of Transatlantic common stock represented at the
    Transatlantic Special Shareholder Meeting for purposes of
    determining whether a quorum has been achieved. However, broker
    non-votes will not be included in the calculation of the number
    of shares of Transatlantic common stock represented at the
    Transatlantic Special Shareholder Meeting for purposes of
    determining whether a quorum has been achieved.Q:
    
    How do I vote?A:
    
    Allied World Shareholders.  The manner in which
    your shares may be voted depends on how your shares are held. If
    you are a shareholder of record of Allied World, meaning that
    your Allied World shares are represented by certificates or book
    entries in your name so that you appear as a shareholder of
    record in Allied Worlds share register maintained by its
    transfer agent, Continental Stock Transfer &
    Trust Company, a proxy card for voting these shares will be
    included with this joint proxy statement/prospectus. You may
    direct how your shares are to be voted by completing, signing
    and returning the proxy card in the enclosed envelope. You may
    also vote your Allied World shares in person at the Allied World
    Special Shareholder Meeting.If you hold Allied World shares in street name
    through a bank or brokerage firm, you may instead receive from
    your bank or brokerage firm a voting instruction form with the
    joint proxy statement/prospectus that you may use to instruct
    them on how your shares are to be voted. As with a proxy card,
    you may direct how your shares are to be voted by completing,
    signing and returning the voting instructions form in the
    envelope provided. Many banks and brokerage firms have arranged
    for internet or telephonic voting of shares and provide
    instructions for using those services on the voting instruction
    form. If you want to vote your Allied World shares in person at
    the Allied World Special Shareholder Meeting, you must obtain a
    proxy from your bank, brokerage firm or other nominee giving you
    the right to vote your Allied World shares at the Allied World
    Special Shareholder Meeting.Transatlantic Stockholders.  If you are a
    stockholder of record of Transatlantic as of the close of
    business on the Transatlantic record date, you may vote in
    person by attending the Transatlantic Special Shareholder
    Meeting or, to ensure your shares are represented at the
    Transatlantic Special Shareholder Meeting, you may authorize a
    proxy to vote by: logging
    onto          
    and following the instructions on your proxy card to vote via
    the internet anytime up
    to               ,
    on          ,
    2011 and following the instructions provided on that site; vi




---



##### Table of Contents



 dialing          
    and listening for further directions to vote by telephone
    anytime up
    to               
    on          ,
    2011 and following the instructions provided in the recorded
    message; or signing and returning the accompanying proxy card in
    the enclosed postage-paid envelope. Transatlantic stockholders
    of record may submit their proxies through the mail by
    completing their proxy card, and signing, dating and returning
    it in the enclosed, pre-addressed, postage-paid envelope. To be
    valid, a returned proxy card must be signed and dated.If you hold Transatlantic common stock in street
    name through a bank, brokerage firm or other nominee,
    please follow the voting instructions provided by your bank,
    brokerage firm or other nominee to ensure that your shares of
    Transatlantic common stock are represented at the Transatlantic
    Special Shareholder Meeting. If you want to vote your
    Transatlantic common stock in person at the Transatlantic
    Special Shareholder Meeting, you must obtain a proxy from your
    bank, brokerage firm or other nominee giving you the right to
    vote your Transatlantic common stock at the Transatlantic
    Special Shareholder Meeting.Q:
    
    How many votes do I have?A:
    
    Allied World Shareholders:  Holders of Allied
    World shares are entitled to one vote per Allied World share
    owned as of the close of business on the Allied World record
    date, unless you own controlled shares that
    constitute 10% or more of the issued Allied World shares as of
    the close of business on the Allied World record date, in which
    case your voting rights with respect to those controlled shares
    will be limited, in the aggregate, to a voting power of
    approximately 10% pursuant to a formula specified in
    article 14 of the Allied World Articles. The Allied World
    Articles define controlled shares generally to include all
    shares of Allied World directly, indirectly or constructively
    owned or beneficially owned by any person or group of persons.
    As of the close of business on the Allied World record date,
    there
    were          
    Allied World shares outstanding and entitled to vote at the
    Allied World Special Shareholder Meeting.Transatlantic Stockholders:  Holders of
    Transatlantic common stock are entitled to one vote for each
    share owned as of the close of business on the Transatlantic
    record date. However, to satisfy the requirements of New York
    State Insurance regulators, on June 1, 2009, Davis Selected
    Advisors, L.P. (Davis Advisors) entered into a
    binding agreement with Transatlantic whereby Davis Advisors
    agreed to vote the number of shares of Transatlantic common
    stock owned by Davis Advisors in excess of 9.9% of
    Transatlantics outstanding shares in a manner
    proportionate to the vote of the owners of the shares (excluding
    Davis Advisors, shareholders beneficially owning more than 10%
    of Transatlantics outstanding shares, and directors and
    officers of Transatlantic ) voting on such matters. As of the
    close of business on the Transatlantic record date, there
    were           shares
    of Transatlantic common stock outstanding and entitled to vote
    at the Transatlantic Special Shareholder Meeting.Q:
    
    What vote is required to approve each proposal?A:
    
    Allied World Shareholders:  Approval of each of
    the following proposals require the affirmative vote of at least
    662/3%
    of the votes represented at the Allied World Special Shareholder
    Meeting and a majority of the nominal value of the Allied World
    shares represented at such meeting, where holders of at least
    50% of the total outstanding Allied World shares are represented
    and voting and who are entitled to vote on such proposal:
    (i) the article 3 share capital increase
    proposal, (ii) the article 5 share capital
    increase proposal and (iii) the article 6 share
    capital increase proposal. Abstentions will not be considered
    votes cast and will have no effect on these proposals, assuming
    a quorum is present.The approval of the NYSE share issuance proposal and the Stock
    Incentive Plan proposal requires the affirmative vote of the
    holders of a majority of shares entitled to vote on the proposal
    and present in person or represented by proxy at the Allied
    World Special Shareholder Meeting, provided that the total votes
    cast on this proposal represent over 50% of the outstanding
    Allied World shares entitled to vote on such proposal. Votes
    for, votes against and abstentions count
    as votes cast. All outstanding Allied World shares count as
    shares entitled to vote. Thus, the total sum of votes
    for, plus votes against, plus
    abstentions, which we refer to as the NYSE votes
    cast, must be greater than 50% of the total outstanding
    Allied World shares. The number of votes for the
    proposal must be greater than 50% of the NYSE votes cast. vii




---



##### Table of Contents



Approval of each of the following proposals requires a majority
    of the votes cast voting in favor of such proposal at the Allied
    World Special Shareholder Meeting where holders of at least 50%
    of the total outstanding Allied World shares are represented and
    voting and who are entitled to vote on such proposal:
    (i) the name change proposal, (ii) the election of
    directors proposal and (iii) the capital reduction
    proposal. Abstentions will not be considered votes cast and will
    have no effect on these proposals, assuming a quorum is present.Because the nature of the proposals to be voted on by the Allied
    World shareholders at the Allied World Special Shareholder
    Meeting are all non-routine matters, there will be
    no broker non-votes for purposes of the Allied World
    Special Shareholder Meeting. Accordingly, if a bank or brokerage
    firm holds your shares you are urged to instruct your bank or
    brokerage firm on how to vote your shares to ensure your shares
    are voted on each of the proposals to be brought before the
    Allied World Special Shareholder Meeting.Transatlantic Stockholders:  The adoption of
    the merger agreement proposal requires the affirmative vote of
    the holders of a majority of the outstanding shares of
    Transatlantic common stock entitled to vote thereon. Failures to
    vote, votes to abstain and broker non-votes, if any, will have
    the effect of a vote AGAINST the adoption of the
    merger agreement proposal.Approval of the adjournment proposal requires the affirmative
    vote of the holders of a majority of the shares of Transatlantic
    common stock entitled to vote and present in person or
    represented by proxy, whether or not a quorum is present.
    Abstentions will have the same effect as a vote
    AGAINST the adjournment proposal. Failures to vote
    and broker non-votes, if any, will not be voted, but this will
    not have an effect on the adjournment proposal.Approval of the golden parachute proposal requires the
    affirmative vote of the holders of a majority of the shares of
    Transatlantic common stock present in person or represented by
    proxy and entitled to vote thereon, assuming a quorum is
    present. Abstentions will have the same effect as a vote
    AGAINST the golden parachute proposal. Failures to
    vote and broker non-votes, if any, will not be voted, but this
    will not have an effect on the golden parachute proposal,
    assuming a quorum is present.Q:
    
    My shares are held in street name by my bank,
    brokerage firm or other nominee. Will my bank, brokerage firm or
    other nominee automatically vote my shares for me?A:
    
    No. If your shares are held in the name of a bank,
    brokerage firm or other nominee, you are considered the
    beneficial holder of the shares held for you in what
    is known as street name. You are not the
    record holder of such shares. If this is the case,
    this joint proxy statement/prospectus has been forwarded to you
    by your bank, broker or other nominee. As the beneficial holder,
    unless your bank, brokerage firm or other nominee has
    discretionary authority over your shares, you generally have the
    right to direct your bank, brokerage firm or other nominee as to
    how to vote your shares. If you do not provide voting
    instructions, your shares will not be voted on any proposal on
    which your bank, brokerage firm or other nominee does not have
    discretionary authority, including certain matters to be
    considered at the Special Shareholder Meetings. This is often
    called a broker non-vote. You should provide your
    bank, broker or other nominee with instructions as to how to
    vote your Allied World shares and Transatlantic common stock, as
    applicable.Please follow the voting instructions provided by your bank,
    broker or other nominee so that it may vote your shares on your
    behalf. Please note that you may not vote shares held in street
    name by returning a proxy card directly to Allied World or
    Transatlantic or by voting in person at your meeting unless you
    first obtain a proxy from your bank, brokerage firm or other
    nominee.Q:
    
    How does the Allied World board of directors recommend that
    Allied World shareholders vote?A:
    
    The Allied World board of directors has unanimously determined
    that the merger agreement and the transactions contemplated by
    the merger agreement, including the merger, are advisable and in
    the best interests of Allied World. The Allied World board of
    directors unanimously recommends that the Allied World
    shareholders vote (i) FOR the share capital
    increase proposals, (ii) FOR the NYSE share
    issuance proposal, (iii) FOR the name change
    proposal , (iv) FOR the election of directors
    proposal, (v) FOR the capital reduction
    proposal and (vi) FOR the Stock Incentive Plan
    proposal. viii




---



##### Table of Contents



Q:
    
    How does the Transatlantic board of directors recommend that
    Transatlantic stockholders vote?A:
    
    The Transatlantic board of directors has unanimously determined
    that the merger agreement and the transactions contemplated by
    the merger agreement, including the merger, are advisable and in
    the best interests of Transatlantic and its stockholders. The
    Transatlantic board of directors unanimously recommends that
    Transatlantic stockholders vote (i) FOR the
    adoption of the merger agreement proposal,
    (ii) FOR the adjournment proposal and
    (iii) FOR the golden parachute proposal.Q:
    
    What will happen if I return my proxy card without indicating
    how to vote?A:
    
    Allied World Shareholders:  If you properly
    complete and sign your proxy card but do not indicate how your
    Allied World shares should be voted on a matter, the Allied
    World shares represented by your proxy will be voted as the
    Allied World board of directors recommends and, therefore,
    FOR the proposals brought before the Allied World
    Special Shareholder Meeting.Transatlantic Stockholders:  If you properly
    complete and sign your proxy card but do not indicate how your
    shares of Transatlantic common stock should be voted on a
    matter, the shares of Transatlantic common stock represented by
    your proxy will be voted as the Transatlantic board of directors
    recommends and, therefore, FOR the proposals brought
    before the Transatlantic Special Shareholder Meeting.Q:
    
    How do I appoint and vote via the independent proxy if I am
    an Allied World shareholder of record?A:
    
    If you are an Allied World shareholder of record as of the
    Allied World record date, under Swiss law you may authorize the
    independent proxy, Mr. Paul Buergi, of Buis Buergi AG,
    Muehlebachstrasse 7, P.O Box 672, CH-8024, Zurich, Switzerland,
    with full rights of substitution, to vote your Allied World
    shares on your behalf instead of using the enclosed proxy card.
    If you authorize the independent proxy to vote your shares
    without giving instructions, your shares will be voted in
    accordance with the recommendations of the Allied World board of
    directors with regard to the items listed in the notice of
    meeting. If new agenda items (other than those in the notice of
    meeting) or new proposals or motions with respect to those
    agenda items set forth in the notice of meeting are being put
    forth before the Allied World Special Shareholder Meeting, the
    independent proxy will, in the absence of other specific
    instructions, vote in accordance with the recommendations of the
    Allied World board of directors. An optional form of proxy card
    that may be used by the independent proxy to vote your Allied
    World shares is included with this joint proxy
    statement/prospectus. Proxy cards authorizing the independent
    proxy to vote your shares must be sent directly to the
    independent proxy, arriving no later
    than          ,
    local
    time,          ,
    2011.Q:
    
    Can I change my vote or revoke my proxy after I have returned
    a proxy or voting instruction card?A:
    
    Yes.If you are the holder of record of Allied World
    shares:  If you are the holder of record of Allied
    World shares, you can change your vote or revoke your proxy at
    any time before your proxy is voted at your meeting. You can do
    this in one of the following ways: you can provide the Allied World corporate secretary
    with written notice of revocation, by voting in person at the
    Allied World Special Shareholder Meeting or by executing a
    later-dated proxy card; provided, however, that the action is
    taken in sufficient time to permit the necessary examination and
    tabulation of the subsequent proxy or revocation before the vote
    is taken; or if you have granted your proxy to the independent
    proxy, you can provide Mr. Paul Buergi, of Buis Buergi AG,
    Muehlebachstrasse 7, P.O. Box 672, CH-8024, Zurich,
    Switzerland, with written notice of revocation, by voting in
    person at the Allied World Special Shareholder Meeting or by
    executing a later-dated independent proxy card. Revocation of,
    or changes to, proxies issued to the independent proxy must be
    received by the independent proxy
    by          ,
    local time,
    on          ,
    2011.Attendance at the Allied World Special Shareholder Meeting by an
    Allied World shareholder who has executed and delivered a proxy
    card to Allied World shall not in and of itself constitute a
    revocation of such proxy. Only your vote at the Allied World
    Special Shareholder Meeting will revoke your proxy. ix




---



##### Table of Contents



If you hold Allied World shares in street
    name:  If your Allied World shares are held
    in street name, you must obtain a proxy from your bank,
    brokerage firm or other nominee giving you the right to vote
    your Allied World shares at the Allied World Special Shareholder
    Meeting.If you are the holder of record of Transatlantic common
    stock:  If you are the holder of record of
    Transatlantic common stock, you can change your vote or revoke
    your proxy at any time before your proxy is voted at your
    meeting. You can do this in one of the following ways: you can grant a new, valid proxy bearing a later
    date (including by telephone or via the internet); you can send a signed notice of revocation; or you can attend the Transatlantic Special Shareholder
    Meeting and vote in person, which will automatically cancel any
    proxy previously given, or you may revoke your proxy in person.
    Simply attending the Transatlantic Special Shareholder Meeting
    without voting will not revoke any proxy that you have
    previously given or change your vote.If you choose either of the first two methods, your notice of
    revocation or your new proxy must be received by Transatlantic
    no later than the beginning of the Transatlantic Special
    Shareholder Meeting. If you have submitted a proxy for your
    shares by telephone or via the internet, you may revoke your
    prior telephone or internet proxy by any manner described above.If you hold shares of Transatlantic common stock in
    street name:  If your shares of
    Transatlantic common stock are held in street name, you must
    contact your bank, brokerage firm or other nominee to change
    your vote.Q:
    
    What are the material U.S. federal income tax consequences of
    the merger to U.S. holders of Allied World shares?A:
    
    No gain or loss will be recognized by Allied World shareholders
    as a consequence of the merger.Q:
    
    What are the material U.S. federal income tax consequences of
    the merger to U.S. holders of Transatlantic common stock?A:
    
    The receipt of Allied World shares (and cash, if any, received
    in lieu of fractional shares) in exchange for shares of
    Transatlantic common stock pursuant to the merger agreement will
    be a taxable transaction for U.S. federal income tax purposes.Q:
    
    When do you expect the merger to be completed?A:
    
    Allied World and Transatlantic hope to complete the merger as
    soon as reasonably possible and expect the closing of the merger
    to occur in the fourth quarter of 2011. However, the merger is
    subject to various regulatory clearances and the satisfaction or
    waiver of other conditions, and it is possible that factors
    outside the control of Allied World and Transatlantic could
    result in the merger being completed at an earlier time, a later
    time or not at all. There may be a substantial amount of time
    between the Special Shareholder Meetings and the completion of
    the merger.Q:
    
    Do I need to do anything with my shares other than voting for
    the proposals at the meeting?A:
    
    Allied World Shareholders:  If you are an
    Allied World shareholder, after the merger is completed, you are
    not required to take any action with respect to your Allied
    World shares.Transatlantic Stockholders:  If you are a
    Transatlantic stockholder, after the merger is completed, each
    share of Transatlantic common stock you hold will be converted
    automatically into the right to receive 0.88 Allied World shares
    together with cash in lieu of any fractional Allied World
    shares, as applicable. You will receive instructions at that
    time regarding exchanging your shares of Transatlantic common
    stock for Allied World shares. You do not need to take any
    action at this time. Please do not send your Transatlantic
    stock certificates with your proxy card.Q:
    
    Are holders of shares entitled to appraisal rights?A:
    
    No. Neither the Allied World shareholders, under Swiss law,
    nor the Transatlantic stockholders, under Delaware law, are
    entitled to appraisal rights in connection with the merger. x




---



##### Table of Contents



Q:
    
    What happens if I sell my shares of Transatlantic common
    stock before the Transatlantic Special Shareholder Meeting?A:
    
    The record date for the Transatlantic Special Shareholder
    Meeting is earlier than the date of the Transatlantic Special
    Shareholder Meeting and the date that the merger is expected to
    be completed. If you transfer your shares of Transatlantic
    common stock after the Transatlantic record date but before the
    Transatlantic Special Shareholder Meeting, you will retain your
    right to vote at the Transatlantic Special Shareholder Meeting,
    but will have transferred the right to receive the merger
    consideration in the merger. In order to receive the merger
    consideration, you must hold your shares through the effective
    date of the merger.Q:
    
    What if I hold shares in both Allied World and
    Transatlantic?A:
    
    If you are a holder of shares of both Allied World and
    Transatlantic you will receive two separate packages of proxy
    materials. A vote cast as an Allied World shareholder will not
    count as a vote cast as a Transatlantic stockholder, and a vote
    cast as a Transatlantic stockholder will not count as a vote
    cast as an Allied World shareholder. Therefore, please
    separately submit a proxy for your Allied World shares and your
    Transatlantic common stock.Q:
    
    Who can help answer my questions?A:
    
    Allied World shareholders or Transatlantic stockholders who have
    questions about the merger, the other matters to be voted on at
    the Special Shareholder Meetings, how to submit a proxy or
    desire additional copies of this joint proxy
    statement/prospectus or additional proxy cards should contact:  If you are an Allied World shareholder:

If you are a Transatlantic stockholder:MacKenzie Partners, Inc.105 Madison Avenue
    New York, NY 10016(800) 322-2885
    or(212) 929-5500
    (collect)E-mail:
    proxy@mackenziepartners.com

Georgeson Inc.199 Water Street
    New York, NY 10038
    (888) 613-9817
    (Banks and brokers please call: (212) 440-9800)
    E-mail: transatlantic@georgeson.comor

orAllied World Assurance Company Holdings, AGLindenstrasse 8, 6340 Baar
    Zug, Switzerland
    Attn.: Corporate Secretary(441) 278-5400

Transatlantic Holdings, Inc.80 Pine Street
    New York, NY 10005
    Attn.:  Investor Relations
    (212) 365-2200  xi




---



##### Table of Contents



SUMMARY  This summary highlights information contained elsewhere in
    this joint proxy statement/prospectus and may not contain all
    the information that is important to you with respect to the
    merger and the other matters being considered at the Special
    Shareholder Meetings. Allied World and Transatlantic urge you to
    read the remainder of this joint proxy statement/prospectus
    carefully, including the attached Annexes, and the other
    documents to which we have referred you. See also the section
    entitled Where You Can Find More Information
    beginning on page 159. We have included page references in
    this summary to direct you to a more complete description of the
    topics presented below.
 The
    Companies  Allied
    World Assurance Company Holdings, AG
      41-41-768-1080.
  Transatlantic
    Holdings, Inc.
  ®
 1




---



##### Table of Contents



212-365-2200.
  GO Sub,
    LLC
  wholly-owned
 The
    Merger    Effects
    of the Merger (see page 42)
    Merger
    Consideration (see page 87)
    Material
    U.S. Federal Income Tax Consequences of the Merger (see
    page 121)
 2




---



##### Table of Contents



Recommendations
    of the Board of Directors of Allied World (see
    page 51)
  The Allied World board of directors
    unanimously recommends that the Allied World shareholders vote
    (i) FOR the share capital increase proposals,
    (ii) FOR the NYSE share issuance proposal,
    (iii) FOR the name change proposal,
    (iv) FOR the election of directors proposal,
    (v) FOR the capital reduction proposal and
    (vi) FOR the Stock Incentive Plan proposal.
  Recommendations
    of the Board of Directors of Transatlantic (see
    page 64)
  The Transatlantic board of
    directors unanimously recommends that Transatlantic stockholders
    vote (i) FOR the adoption of the merger
    agreement proposal, (ii) FOR the adjournment
    proposal and (iii) FOR the golden parachute
    proposal.
  Opinion
    of Allied Worlds Financial Advisor (see
    page 53)
      Opinion
    of Transatlantics Financial Advisor (see
    page 68)
 3




---



##### Table of Contents



Interests
    of Allied Worlds Directors and Executive Officers in the
    Merger (see page 78)
          Interests
    of Transatlantics Directors and Executive Officers in the
    Merger (see page 78)
 4




---



##### Table of Contents



Board of
    Directors and Management Following the Merger (see
    page 81)
    
    Class II (to hold office commencing upon the completion of
    the merger and ending upon TransAllieds Annual Shareholder
    Meeting in 2012) consisting of two former independent
    Transatlantic directors and a former independent Allied World
    director;
    Class III (to hold office commencing upon the completion of
    the merger and ending upon TransAllieds Annual Shareholder
    Meeting in 2013) consisting of two former independent
    Transatlantic directors and two former independent Allied World
    directors; and
    Class I (to hold office commencing upon the completion of
    the merger and ending upon TransAllieds Annual Shareholder
    Meeting in 2014): Scott A. Carmilani, Richard S. Press, Michael
    C. Sapnar and a former independent Allied World director.
 5




---



##### Table of Contents



Treatment
    of Transatlantic Stock Options and Other Stock-Based Awards and
    Programs (see page 84)
    Stock Options.
  Stock-Based Awards.
    Regulatory
    Clearances Required for the Merger (see page 82)
  Hart-Scott-Rodino
      Amended
    and Restated Articles of Association of Allied World (see
    page 106)
 6




---



##### Table of Contents



Expected
    Timing of the Merger
    Conditions
    to Completion of the Merger (see page 98)
    
    approval by the Allied World shareholders of (i) the share
    capital increase proposals, (ii) the NYSE share issuance
    proposal and (iii) the name change proposal;
    approval by the Transatlantic stockholders of the adoption of
    the merger agreement proposal;
    authorization of the listing of the Allied World shares to be
    issued in the merger on the NYSE, subject to official notice of
    issuance;
    the waiting period (and any extension thereof) applicable to the
    merger under the HSR Act having expired or been earlier
    terminated;
    obtaining any necessary approvals of the applicable insurance
    regulatory authorities in New York, Bermuda and Switzerland;
    receipt of other requisite regulatory approvals;
    all consents and approvals of, and filings with, governmental
    agencies having been made, obtained and in full force, other
    than those that would not reasonably be expected to have a
    material adverse effect on Allied World and Transatlantic after
    giving effect to the merger;
    effectiveness of the registration statement of which this joint
    proxy statement/prospectus forms a part and the absence of a
    stop order or proceedings threatened or initiated by the SEC for
    that purpose;
    absence of any order, injunction, decree, statute, rule or
    regulation by a court or other governmental entity that makes
    illegal or prohibits the completion of the merger or the other
    transactions contemplated by the merger agreement;
    approval by the Allied World shareholders of the election of
    directors proposal and execution of a written consent of the
    TransAllied board approving certain committee and officer
    appointments;
    a ruling from the Swiss Commercial Register having been
    obtained; and
    the purchase by Allied World, following receipt of the requisite
    Allied World and Transatlantic shareholder approvals, of
    45,000 shares of Transatlantic common stock having been
    completed.    
    the representations and warranties of each party, other than the
    representations related to the shares issued and outstanding or
    reserved for issuance, the necessary corporate power and
    authority to execute and deliver the merger agreement, and the
    brokers and finders fees, will be true and correct
    (without giving effect to any materiality qualifications
    contained in such representations and warranties) as of the date
    of the merger agreement and as of the closing date (other than
    those representations and warranties that were made only as of a
    specified date, which need only be true and correct as of such
    specified date), except where the failure of such
    representations and warranties to be so true and correct
 7




---



##### Table of Contents



(without giving effect to any limitation as to
    materiality or to material adverse effect set forth
    therein), individually or in the aggregate, has not had, and
    would not reasonably be expected to have, a material adverse
    effect on such party;  
    the representations and warranties of each party relating to the
    shares issued and outstanding or reserved for issuance, the
    necessary corporate power and authority to execute and deliver
    the merger agreement, and the brokers and finders fees,
    will be true and correct in all material respects as of the date
    of the merger agreement and as of the closing date (except to
    the extent such representations or warranties were made as of an
    earlier date, in which case, as of such earlier date);
    each party having performed or complied with, in all material
    respects, all its obligations under the merger agreement at or
    prior to the effective time of the merger; and
    receipt of a certificate executed by each partys chief
    executive officer or chief financial officer as to the
    satisfaction of the conditions described in the preceding three
    bullet points.    No
    Solicitation of Alternative Proposals (see
    page 92)
      Termination
    of the Merger Agreement (see page 99)
    
    by mutual written consent of Allied World and
    Transatlantic; or
    by either party, if:  
    a governmental entity issues a final and nonappealable order,
    decree or ruling or takes any other action (including the
    failure to have taken an action) having the effect of
    permanently enjoining or otherwise prohibiting the merger or the
    other transactions contemplated by the merger agreement;
    the required approval by the shareholders of Allied World or the
    stockholders of Transatlantic has not been obtained at the
    respective Special Shareholder Meeting (or at any adjournment or
    postponement thereof);
    the merger has not been completed on or before January 31,
    2012 (the end date), subject to extension by the
    mutual agreement of Allied World and Transatlantic;
    the other party has breached any of its agreements or
    representations in the merger agreement, in a way that the
    conditions to such non-breaching partys obligation to
    complete the merger would not then be satisfied and such breach
    is either incurable or not cured by the end date; or
 8




---



##### Table of Contents




    prior to obtaining the requisite stockholder approval, the board
    of directors of the other party changes its recommendation that
    its stockholders vote in favor of the merger and the
    transactions contemplated by the merger agreement.    Expenses
    and Termination Fees; Liability for Breach (see
    page 99)
  and/or
  and/or
  Accounting
    Treatment (see page 123)
      No
    Appraisal Rights (see page 85)
      Comparison
    of Stockholder Rights and Corporate Governance Matters (see
    page 146)
    Listing
    of Allied World Shares; De-listing and Deregistration of Shares
    of Transatlantic Common Stock (see page 85)
 9




---



##### Table of Contents



The
    Combined Companys Share Repurchase Program Post-Merger
    (see page 86)
   The
    Meetings  The
    Allied World Special Shareholder Meeting (see
    page 30)
    
    the proposal to increase Allied Worlds ordinary share
    capital pursuant to article 3a(a) of the Allied World
    Articles by CHF     (equaling
    USD     ) to
    CHF     (equaling
    USD     ) by the issuance
    of          
    Allied World shares to Transatlantic stockholders pursuant to,
    and only in connection with, the merger as contemplated by the
    merger agreement, including the exclusion of all preferential
    subscription rights to which Allied World shareholders may be
    entitled, referred to herein as the
    article 3 share capital increase proposal;
    the contributions for the new registered shares are paid by
    converting existing reserves (Kapitalreserven) into share
    capital;
    the proposal to increase Allied Worlds conditional share
    capital pursuant to article 5(a) of the Allied World Articles by
    CHF     (equaling
    USD     ) to
    CHF     (equaling
    USD     ), only in connection with the
    merger, referred to herein as the
    article 5 share capital increase proposal;
    the proposal to increase Allied Worlds authorized share
    capital pursuant to article 6(a) of the Allied World Articles by
    CHF     (equaling
    USD     ) to
    CHF     (equaling
    USD     ), only in connection with the
    merger, referred to herein as the
    article 6 share capital increase proposal
    and, together with the article 3 share capital
    increase proposal and the article 5 share capital
    increase proposal, the share capital increase
    proposals;
    the proposal to issue Allied World shares to Transatlantic
    stockholders pursuant to the merger and as contemplated by the
    merger agreement as required by NYSE rules, referred to herein
    as the NYSE share issuance proposal;
    the proposal to amend article 1 of the Allied World
    Articles to change Allied Worlds name to TransAllied
    Group Holdings, AG immediately following, and conditioned
    upon, the completion of the merger, referred to herein as the
    name change proposal;
    the proposal to elect (x) three Class II directors to
    hold office commencing upon the completion of the merger and
    ending upon TransAllieds Annual Shareholder Meeting in
    2012, (y) four Class III directors to hold office
    commencing upon the completion of the merger and ending upon
    TransAllieds Annual Shareholder Meeting in 2013 and
    (z) four Class I directors to hold office commencing
    upon the completion of the merger and ending upon
    TransAllieds Annual Shareholder Meeting in 2014, referred
    to herein as the election of directors proposal;
    the proposal to effect a capital reduction to allow for the
    payment of a dividend to the combined companys
    shareholders after the completion of the merger, referred to
    herein as the capital reduction proposal; and
 10




---



##### Table of Contents




    the proposal to amend and restate the Stock Incentive Plan, the
    form of which is included as Annex E to the joint proxy
    statement/prospectus, as required by NYSE rules, to, among other
    things, increase the number of shares reserved for issuance
    under the Stock Incentive Plan and to extend the Plans
    termination date effective upon the completion of the merger,
    referred to herein as the Stock Incentive Plan
    proposal.      2 3
  The
    Transatlantic Special Shareholder Meeting (see
    page 36)
    
    the proposal to adopt the merger agreement, which is further
    described in the sections entitled The Merger and
    The Merger Agreement, beginning on pages 42 and
    87, respectively, referred to herein as the adoption of
    the merger agreement proposal;
    the proposal to adjourn the Transatlantic Special Shareholder
    Meeting, if necessary or appropriate, to solicit additional
    proxies if there are not sufficient votes to approve the
    foregoing proposal, referred to herein as the adjournment
    proposal; and
    the proposal, on an advisory (non-binding) basis, to approve the
    compensation that may be paid or become payable to
    Transatlantics named executive officers in connection with
    the merger, and the agreements and understandings pursuant to
    which such compensation may be paid or become payable as
    described in the section entitled The Merger 
    Interests of Transatlantics Directors and Executive
    Officers in the Merger  Golden Parachute
    Compensation, referred to herein as the golden
    parachute proposal.
 11




---



##### Table of Contents



12




---



##### Table of Contents



Summary
    Historical Consolidated Financial Data  Summary
    Historical Consolidated Financial Data of Allied World
  Form 10-K Form 10-Q
  Statement
    of Operations Data of Allied World
  Three Months EndedMarch 31,


Year Ended December 31,2011


2010


2010


2009


2008


2007


2006($ in millions, except per share amounts and ratios)Summary Statement of Operations Data:Gross premiums written

$
560.7


$
504.2


$
1,758.4


$
1,696.3


$
1,445.6


$
1,505.5


$
1,659.0Net premiums written

$
480.9


$
433.3


$
1,392.4


$
1,321.1


$
1,107.2


$
1,153.1


$
1,306.6Net premiums earned

$
334.9


$
338.3


$
1,359.5


$
1,316.9


$
1,117.0


$
1,159.9


$
1,252.0Net investment income


50.2



68.9



244.1



300.7



308.8



297.9



244.4Net realized investment gains (losses)


50.4



77.5



285.6



126.4



(60.0
)


37.0



(4.8
)Net impairment charges recognized in earnings






(0.2
)


(0.2
)


(49.6
)


(212.9
)


(44.6
)


(23.9
)Other income






0.3



0.9



1.5



0.7







Net losses and loss expenses


304.4



232.1



707.9



604.1



641.1



682.3



739.1Acquisition costs


38.1



40.8



159.5



148.9



112.6



119.0



141.5General and administrative expenses


68.0



63.5



286.5



248.6



185.9



141.6



106.1Amortization and impairment of intangible assets


0.8



0.9



3.5



11.1



0.7







Interest expense


13.7



9.5



40.2



39.0



38.7



37.8



32.6Foreign exchange (gain) loss


(0.4
)


1.1



0.4



0.7



(1.4
)


(0.8
)


0.6Income tax expense (benefit)


2.3



3.2



26.9



36.6



(7.6
)


1.1



5.0Net income

$
8.6


$
133.7


$
665.0


$
606.9


$
183.6


$
469.2


$
442.8Per Share Data:Earnings per share:Basic

$
0.23


$
2.67


$
14.30


$
12.26


$
3.75


$
7.84


$
8.09Diluted


0.21



2.52



13.32



11.67



3.59



7.53



7.75Weighted average number of common shares outstanding:Basic


38,199,867



50,023,816



46,491,279



49,503,438



48,936,912



59,846,987



54,746,613Diluted


40,383,523



53,115,756



49,913,317



51,992,674



51,147,215



62,331,165



57,115,172Dividends declared per share

$

*

$
0.20


$
1.05


$
0.74


$
0.72


$
0.63


$
0.15     *
    
    On August 5, 2011 Allied World expects to distribute the
    first of its quarterly dividends, as approved by the
    shareholders at its 2011 annual general shareholder meeting on
    May 5, 2011.
 13




---



##### Table of Contents



Three Months EndedMarch 31,


Year Ended December 31,2011


2010


2010


2009


2008


2007


2006Selected Ratios:Loss and loss expense ratio(1)


90.9
%


68.6
%


52.1
%


45.9
%


57.4
%


58.8
%


59.0
%Acquisition cost ratio(2)


11.4



12.1



11.7



11.3



10.1



10.3



11.3General and administrative expense ratio(3)


20.3



18.8



21.1



18.9



16.6



12.2



8.5Expense ratio(4)


31.7



30.9



32.8



30.2



26.7



22.5



19.8Combined ratio(5)


122.6



99.5



84.9



76.1



84.1



81.3



78.8   Balance
    Sheet Data of Allied World
  As of March 31,


As of December 31,2011


2010


2010


2009


2008


2007


2006($ in millions, except per share amounts)Summary Balance Sheet Data:Cash and cash equivalents

$
694.0


$
452.1


$
757.0


$
292.2


$
655.8


$
202.6


$
366.8Investments at fair value


7,245.7



7,357.9



7,183.6



7,156.3



6,157.1



6,029.3



5,440.3Reinsurance recoverable


975.5



920.5



927.6



920.0



888.3



682.8



689.1Total assets


10,668.8



10,324.5



10,427.6



9,653.2



9,022.5



7,899.1



7,620.6Reserve for losses and loss expenses


5,100.6



4,853.4



4,879.2



4,761.8



4,576.8



3,919.8



3,637.0Unearned premiums


1,096.3



1,007.9



962.2



928.6



930.4



811.1



813.8Total debt


797.8



499.0



797.7



498.9



742.5



498.7



498.6Total shareholders equity


2,951.0



3,338.8



3,075.8



3,213.3



2,416.9



2,239.8



2,220.1Book value per common share(6)

$
77.86


$
66.17


$
80.75


$
64.61


$
49.29


$
45.95


$
36.82     (1)
    
    Calculated by dividing net losses and loss expenses by net
    premiums earned.(2)
    
    Calculated by dividing acquisition costs by net premiums earned.(3)
    
    Calculated by dividing general and administrative expenses by
    net premiums earned.(4)
    
    Calculated by combining the acquisition cost ratio and the
    general and administrative expense ratio.(5)
    
    Calculated by combining the loss ratio, acquisition cost ratio
    and general and administrative expense ratio.(6)
    
    Book value per common share is total shareholders equity
    divided by common shares outstanding.
 14




---



##### Table of Contents



Summary
    Historical Consolidated Financial Data of
    Transatlantic  Form 10-K Form 10-Q
  Statement
    of Operations Data of Transatlantic
  Three Months EndedMarch 31,


Years Ended December 31,2011


2010


2010


2009


2008


2007


2006(in thousands, except per share amounts and ratios)Net premiums written

$
1,043,824


$
1,026,299


$
3,881,693


$
3,986,101


$
4,108,092


$
3,952,899


$
3,633,440Net premiums earned

$
956,829


$
992,595


$
3,858,620


$
4,039,082


$
4,067,389


$
3,902,669


$
3,604,094Net losses and loss adjustment expenses incurred


(1,169,052
)


(786,324
)


(2,681,774
)


(2,679,171
)


(2,907,227
)


(2,638,033
)


(2,462,666
)Net commissions


(241,001
)


(234,512
)


(932,820
)


(927,918
)


(980,626
)


(980,121
)


(903,666
)Increase (decrease) in deferred policy acquisition costs


32,160



5,500



2,898



(12,406
)


6,956



16,901



13,471Other underwriting expenses


(36,725
)


(44,129
)


(177,624
)


(158,181
)


(131,555
)


(115,760
)


(102,339
)Underwriting (loss) profit(1)


(457,789
)


(66,870
)


69,300



261,406



54,937



185,656



148,894Net investment income


106,840



112,610



473,547



467,402



440,451



469,772



434,540Realized net capital gains (losses)(2)


55,412



(1,889
)


30,101



(70,641
)


(435,541
)


9,389



10,862(Loss) gain on early extinguishment of debt


(1,179
)






(115
)


9,869



10,250







Interest on senior notes


(16,894
)


(17,086
)


(68,272
)


(43,454
)


(43,359
)


(43,421
)


(43,405
)Other expenses, net


(7,152
)


(7,685
)


(31,773
)


(28,549
)


(23,515
)


(25,644
)


(10,983
)(Loss) income before income taxes


(320,762
)


19,080



472,788



596,033



3,223



595,752



539,908Income (taxes) benefits


130,610



(3,205
)


(70,587
)


(118,371
)


99,031



(108,611
)


(111,756
)Net (loss) income

$
(190,152
)

$
15,875


$
402,201


$
477,662


$
102,254


$
487,141


$
428,152Per Common Share:Net (loss) income:Basic

$
(3.05
)

$
0.24


$
6.28


$
7.20


$
1.54


$
7.37


$
6.49Diluted


(3.05
)


0.24



6.19



7.15



1.53



7.31



6.46Cash dividends declared


0.21



0.20



0.83



0.79



0.73



0.62



0.53Share Data:Weighted average common shares outstanding:Basic


62,365



65,879



64,092



66,381



66,270



66,124



65,955Diluted


62,365



66,551



64,930



66,802



66,722



66,654



66,266Ratios:(3)Loss ratio


122.2
%


79.2
%


69.5
%


66.3
%


71.5
%


67.6
%


68.3
%Commission ratio


21.8



23.1



24.1



23.3



23.9



24.7



24.7Other underwriting expense ratio


3.8



4.4



4.6



3.9



3.2



2.9



2.9Underwriting expense ratio


25.6



27.5



28.7



27.2



27.1



27.6



27.6Combined ratio


147.8
%


106.7
%


98.2
%


93.5
%


98.6
%


95.2
%


95.9
%
 15




---



##### Table of Contents



Balance
    Sheet Data of Transatlantic
  As of March 31,


As of December 31,2011


2010


2010


2009


2008


2007


2006($ in thousands, except per share amounts)Total investments

$
13,152,050


$
12,178,336


$
12,972,739


$
12,315,395


$
10,229,557


$
12,500,540


$
11,130,832Cash and cash equivalents


331,307



423,784



284,491



195,723



288,920



255,432



205,264Total assets


16,335,382



15,134,408



15,705,354



14,943,659



13,376,938



15,484,327



14,268,464Unpaid losses and loss adjustment expenses


9,773,978



8,706,265



9,020,610



8,609,105



8,124,482



7,926,261



7,467,949Unearned premiums


1,321,276



1,243,803



1,212,535



1,187,526



1,220,133



1,226,647



1,144,022Senior notes


1,005,683



1,033,193



1,030,511



1,033,087



722,243



746,930



746,633Total stockholders equity


4,041,373



3,985,114



4,284,459



4,034,380



3,198,220



3,349,042



2,958,270Book value per common share(4)

$
64.69


$
61.97


$
68.83


$
60.77


$
48.19


$
50.56


$
44.80     (1)
    
    Includes pre-tax net catastrophe (costs) of ($545) million
    in the first quarter of 2011, ($130) million in the first
    quarter of 2010, ($202) million in the full year 2010,
    $6 million in the full year 2009, ($170) million in
    the full year 2008, ($55) million in the full year 2007 and
    ($29) million in the full year 2006.(2)
    
    Includes
    other-than-temporary
    impairment write-downs charged to earnings of ($2) million
    in the first quarter of 2011, ($6) million in the first
    quarter of 2010, ($8) million in the full year 2010,
    ($83) million in the full year 2009, ($318) million in
    the full year 2008, ($27) million in the full year 2007 and
    ($1) million in the full year 2006.(3)
    
    The loss ratio represents the absolute value of net losses and
    loss adjustment expenses incurred expressed as a percentage of
    net premiums earned. The underwriting expense ratio represents
    the sum of the commission ratio and the other underwriting
    expense ratio. The commission ratio represents the absolute
    value of the sum of net commission and the (decrease) increase
    in deferred policy acquisition costs expressed as a percentage
    of net premiums earned. The other underwriting expense ratio
    represents the absolute value of other underwriting expenses
    expressed as a percentage of net premiums earned. The combined
    ratio represents the sum of the loss ratio and the underwriting
    expense ratio.(4)
    
    Book value per common share is stockholders equity divided
    by common shares outstanding.
 16




---



##### Table of Contents



Summary
    Unaudited Pro Forma Condensed Consolidated
    Financial Information of Allied World and
    Transatlantic
 17




---



##### Table of Contents



Selected
    Pro Forma Condensed Consolidated Balance Sheet Data
    As of March 31, 2011
  As ofMarch 31, 2011(Unaudited)(in thousands of U.S. dollars)ASSETSTotal investments

$
20,397,744Cash and cash equivalents and restricted cash


1,063,544Insurance and reinsurance assets


3,659,542Goodwill


Intangible assets


276,711All other assets


1,376,223Total assets

$
26,773,764LIABILITIES AND SHAREHOLDERS EQUITYUnpaid losses and loss adjustment expenses

$
14,808,258Unearned premiums


2,408,610Senior notes


1,861,890All other liabilities


950,207Total liabilities


20,028,965Total shareholders equity


6,744,799Total liabilities and shareholders equity

$
26,773,764
 18




---



##### Table of Contents



Selected
    Pro Forma Condensed Consolidated Statements of Operations
    Data
    For the Three Months Ended March 31, 2011 and Year Ended
    December 31, 2010
  Three Months Ended


Year EndedMarch 31, 2011


December 31, 2010(Unaudited)(in thousands, except shares outstanding and per share
    data)Revenues:Net premiums written

$
1,524,695


$
5,274,148Increase in net unearned premiums


(232,990
)


(55,980
)Net premiums earned


1,291,705



5,218,168Net investment income


155,767



712,565Realized net capital gains


106,230



315,101Loss on early extinguishment of debt


(1,179
)


(115
)Total revenues


1,552,523



6,245,719Expenses:Net losses and loss adjustment expenses


1,473,504



3,389,657Acquisition costs


246,923



1,089,411Other underwriting expenses


103,529



467,724Interest on senior notes


28,095



99,647Other expenses, net


8,604



146,292Total expenses


1,860,655



5,192,731(Loss) income before income taxes


(308,132
)


1,052,988Income taxes (benefits)


(128,327
)


97,532Net (loss) income

$
(179,805
)

$
955,456Net (loss) income per common share:Basic

$
(1.93
)

$
9.27Diluted


(1.93
)


8.93Dividends per common share






1.05Weighted average common shares outstanding:Basic


93,213,924



103,025,196Diluted


93,213,924



107,045,083
 19




---



##### Table of Contents



Unaudited
    Comparative Per Share Data    Three Months


Year EndedEnded


December 31,Allied World  Historical

March 31, 2011


2010Net income per share:Basic

$
0.23


$
14.30Diluted

$
0.21


$
13.32Book value per share of common stock

$
77.86


$
80.75Transatlantic  HistoricalNet (loss) income per share:Basic

$
(3.05
)

$
6.28Diluted

$
(3.05
)

$
6.19Book value per share of common stock

$
64.69


$
68.83Allied World Unaudited Pro Forma Consolidated AmountsNet (loss) income per share:Basic

$
(1.93
)

$
9.27Diluted

$
(1.93
)

$
8.93Pro forma book value per share of common stock

$
72.52



(1
)Transatlantic Unaudited Pro Forma Equivalent Per Share
    DataNet (loss) income per share:Basic

$
(1.70
)

$
8.16Diluted

$
(1.70
)

$
7.85Pro forma book value per share of common stock

$
63.81



(1
)     (1)
    
    Not applicable.
 20




---



##### Table of Contents



SPECIAL
    NOTE REGARDING FORWARD-LOOKING STATEMENTS    non-U.S. subsidiaries
  Form 10-K, Form 10-Q, Form 8-K,
 21




---



##### Table of Contents



RISK
    FACTORS  In addition to the other information included and
    incorporated by reference in this joint proxy
    statement/prospectus,
    including the matters addressed in the section entitled
    Special Note Regarding Forward-Looking Statements,
    you should carefully consider the following risks before
    deciding whether to vote for the adoption of the merger
    agreement proposal, the adjournment proposal and the golden
    parachute proposal, in the case of Transatlantic stockholders,
    or for the share capital increase proposals, the NYSE share
    issuance proposal, the name change proposal, the election of
    directors proposal, the capital reduction proposal and the Stock
    Incentive Plan proposal, in the case of Allied World
    shareholders. In addition, you should read and consider the
    risks associated with each of the businesses of Allied World and
    Transatlantic because these risks will also affect the combined
    company. These risks can be found in the Annual Reports on
    Form 10-K
    for the fiscal year ended December 31, 2010 for each of
    Allied World and Transatlantic, as such risks may be updated or
    supplemented in each companys subsequently filed Quarterly
    Reports on
    Form 10-Q
    or Current Reports on
    Form 8-K,
    which are incorporated by reference into this joint proxy
    statement/prospectus. You should also read and consider the
    other information in this joint proxy
    statement/prospectus
    and the other documents incorporated by reference in this joint
    proxy statement/prospectus. See the section entitled Where
    You Can Find More Information beginning on
    page 159.
 Risk
    Factors Relating to the Merger  The
    exchange ratio is fixed and will not be adjusted in the event of
    any change in either Allied Worlds or Transatlantics
    stock price.
    
    changes in Allied Worlds and Transatlantics
    respective businesses, operations and prospects, or the market
    assessments thereof;
    market assessments of the likelihood that the merger will be
    completed, including related considerations regarding regulatory
    approvals of the merger; and
    general market and economic conditions and other factors
    generally affecting the price of Allied World shares and
    Transatlantic common stock.    Because
    the merger will be completed after the Special Shareholder
    Meetings, at the time of your Special Shareholder Meeting, you
    will not know the exact market value of the Allied World shares
    that Transatlantic stockholders will receive upon completion of
    the merger.
   22




---



##### Table of Contents



The
    merger is subject to a number of conditions, including certain
    governmental and regulatory conditions that may not be
    satisfied, or may not be completed on a timely basis, or at all.
    Failure to complete the transactions could have material and
    adverse effects on Allied World and Transatlantic.
      Uncertainties
    associated with the merger may cause a loss of management
    personnel and other key employees which could adversely affect
    the future business, operations and financial results of the
    combined company.
   23




---



##### Table of Contents



Several
    lawsuits have been filed against Allied World and Transatlantic
    challenging the merger, and an adverse ruling may prevent the
    merger from being completed.
  agreed-upon
    The
    merger agreement contains provisions that could discourage a
    potential competing acquiror of either Allied World or
    Transatlantic.
  and/or
  and/or
    The
    fairness opinions delivered by Deutsche Bank and Moelis will not
    reflect changes in circumstances between signing the merger
    agreement and the completion of the merger.
     24




---



##### Table of Contents



The
    merger will be taxable to Transatlantic
    stockholders.
   Risk
    Factors Relating to the Combined Company Following the
    Merger  Although
    Allied World and Transatlantic expect to realize certain
    benefits as a result of the merger, there is the possibility
    that the combined company may be unable to integrate
    successfully the businesses of Allied World and Transatlantic in
    order to realize the anticipated benefits of the
    merger.
    
    the inability to successfully combine the businesses in a manner
    that permits the combined company to achieve the full synergies
    anticipated to result from the merger;
    complexities associated with managing the combined businesses,
    including the challenge of integrating complex systems,
    technology, networks and other assets of each company in a
    seamless manner that minimizes any adverse impact on customers,
    suppliers, brokers, employees and other constituencies;
    the costs of integration and compliance and the possibility that
    the full benefits anticipated to result from the merger will not
    be realized;
    any delay in the integration of management teams, strategies,
    operations, products and services;
    diversion of the attention of each companys management as
    a result of the merger;
    differences in business backgrounds, corporate cultures and
    management philosophies that may delay successful integration;
    the ability to retain key employees;
    the ability to create and enforce uniform standards, controls,
    procedures, policies and information systems;
    potential unknown liabilities and unforeseen increased expenses
    or delays associated with the merger, including one-time cash
    costs to integrate the companies beyond current
    estimates; and
    the disruption of, or the loss of momentum in, each
    companys ongoing businesses or inconsistencies in
    standards, controls, procedures and policies,   25




---



##### Table of Contents



Current
    Allied World shareholders and Transatlantic stockholders will
    have a reduced ownership and voting interest after the merger
    and will exercise less influence over management.
    The
    future results of the combined company will suffer if the
    combined company does not effectively manage its expanded
    operations following the merger.
    The
    financial analyses and forecasts considered by Allied World and
    Transatlantic and their respective financial advisors may not be
    realized, which may adversely affect the market price of Allied
    World shares following the merger.
   26




---



##### Table of Contents



The
    combined company is expected to incur substantial expenses
    related to the merger and the integration of the
    companies.
    There
    can be no assurance that the merger will not result in a ratings
    downgrade of Allied Worlds or Transatlantics
    insurance or reinsurance operating companies, which may result
    in an adverse effect on the business, financial condition and
    operating results.
  and/or
    The
    occurrence of severe catastrophic events may cause the combined
    companys financial results to be volatile and may affect
    the financial results of the combined company differently than
    such an event would have affected the financial results of
    either Allied World or Transatlantic on a stand-alone
    basis.
   27




---



##### Table of Contents



Some
    of the executive officers and directors of Allied World and
    Transatlantic have interests in seeing the merger completed that
    are different from, or in addition to, those of the other Allied
    World and Transatlantic stockholders. Therefore, some of the
    executive officers and directors of Allied World may have a
    conflict of interest in recommending the proposals being voted
    on at the Allied World Special Shareholder Meeting and some of
    the executive officers and directors of Transatlantic may have a
    conflict of interest in recommending the proposals being voted
    on at the Transatlantic Special Shareholder
    Meeting.
  and/or and/or
  and/or
    The
    Allied World shares to be received by Transatlantic stockholders
    as a result of the merger will have different rights from the
    shares of Transatlantic common stock.
   Other
    Risk Factors of Allied World and Transatlantic  Form 10-K Form 10-Q Form 8-K,
 28




---



##### Table of Contents



THE
    COMPANIES  Allied
    World Assurance Company Holdings, AG
      41-41-768-1080.
  Transatlantic
    Holdings, Inc.
      (212) 365-2200.
  GO Sub,
    LLC
   29




---



##### Table of Contents



THE
    ALLIED WORLD SPECIAL SHAREHOLDER MEETING  This joint proxy statement/prospectus is being provided to
    the shareholders of Allied World as part of a solicitation of
    proxies by the Allied World board of directors for use at the
    Allied World Special Shareholder Meeting to be held at the time
    and place specified below, and at any properly convened meeting
    following an adjournment or postponement thereof. This joint
    proxy statement/prospectus provides shareholders of Allied World
    with the information they need to know to be able to vote or
    instruct their vote to be cast at the Allied World Special
    Shareholder Meeting.
  Date,
    Time and Place
    Purpose
    of the Allied World Special Shareholder Meeting
    
    the proposal to increase Allied Worlds ordinary share
    capital pursuant to article 3a(a) of the Allied World
    Articles by CHF     (equaling
    USD     ) to
    CHF     (equaling
    USD     ) by the issuance
    of          
    Allied World shares to Transatlantic stockholders pursuant to,
    and only in connection with, the merger as contemplated by the
    merger agreement, including the exclusion of all preferential
    subscription rights to which Allied World shareholders may be
    entitled; the contributions for the new registered shares are
    paid by converting existing reserves (Kapitalreserven)
    into share capital;
    the proposal to increase Allied Worlds conditional share
    capital pursuant to article 5(a) of the Allied World Articles by
    CHF     (equaling
    USD     ) to
    CHF     (equaling
    USD     ), only in connection with the
    merger;
    the proposal to increase Allied Worlds authorized share
    capital pursuant to article 6(a) of the Allied World Articles by
    CHF     (equaling
    USD     ) to
    CHF     (equaling
    USD     ), only in connection with the
    merger;
    the proposal to issue Allied World shares to Transatlantic
    stockholders pursuant to the merger and as contemplated by the
    merger agreement as required by NYSE rules;
    the proposal to amend article 1 of the Allied World
    Articles to change Allied Worlds name to TransAllied
    Group Holdings, AG immediately following, and conditioned
    upon, the completion of the merger;
    the proposal to elect (x) three Class II directors to
    hold office commencing upon the completion of the merger and
    ending upon TransAllieds Annual Shareholder Meeting in
    2012, (y) four Class III directors to hold office
    commencing upon the completion of the merger and ending upon
    TransAllieds Annual Shareholder Meeting in 2013 and
    (z) four Class I directors to hold office commencing
    upon the completion of the merger and ending upon
    TransAllieds Annual Shareholder Meeting in 2014;
    the proposal to effect a capital reduction to allow for the
    payment of a dividend to the combined companys
    shareholders after the completion of the merger; and
    the proposal to amend and restate the Stock Incentive Plan, as
    required by NYSE rules, to, among other things, increase the
    number of shares reserved for issuance under the Stock Incentive
    Plan and to extend the Stock Incentive Plans termination
    date effective upon the completion of the merger.   30




---



##### Table of Contents



Recommendations
    of the Board of Directors of Allied World
    The Allied World board of directors unanimously recommends
    that the Allied World shareholders vote FOR each of
    the proposals set forth above. See the section entitled
    The Merger  Allied Worlds Reasons for the
    Merger; Recommendations of the Allied World Board of
    Directors beginning on page 51 for a more detailed
    discussion of the Allied World board of directors
    recommendation.
  Allied
    World Record Date; Shareholders Entitled to Vote
      Voting by
    Allied Worlds Directors and Executive Officers
    Quorum
     31




---



##### Table of Contents



Required
    Vote; Failures to Vote, Abstentions, Broker Non-Votes
  2 3
          Voting of
    Proxies by Holders of Record
     32




---



##### Table of Contents



Voting by
    Independent Proxy
    Your vote is important. Accordingly, please sign, date and
    return the enclosed proxy card whether or not you plan to attend
    the Allied World Special Shareholder Meeting in person.
  Shares Held
    in Street Name
      Revocation
    of Proxies
    
    timely delivering a new, valid proxy by mail as described on the
    proxy card; or
    attending the Allied World Special Shareholder Meeting and
    voting in person, which will automatically cancel any proxy
    previously given, or you can revoke your proxy in person. Simply
    attending the Allied World Special Shareholder Meeting without
    voting will not revoke any proxy that you have previously given
    or change your vote.     33




---



##### Table of Contents



Tabulation
    of Votes
    Solicitation
    of Proxies
  out-of-pocket
  out-of-pocket
  Adjournments
    Organizational
    Matters Required by Swiss Law with respect to the Allied World
    Special Shareholder Meeting
  Admission
    to the Special Shareholder Meeting
   34




---



##### Table of Contents



Granting
    a Proxy
    Registered Allied World shareholders who have appointed an
    Allied World officer or the independent proxy as a proxy may not
    vote in person at the Allied World Special Shareholder Meeting
    or send a proxy of their choice to the meeting, unless they
    revoke or change their proxies. Revocations to the independent
    proxy must be received by him or her by no later
    than          ,
    local time,
    on          ,
    2011.
    Beneficial owners who have not obtained a power of attorney
    from their bank, brokerage firm or other nominee are not
    entitled to participate in or vote at the Allied World Special
    Shareholder Meeting.
  Proxy
    Holders of Deposited Shares
    Admission
    Office
   35




---



##### Table of Contents



THE
    TRANSATLANTIC SPECIAL SHAREHOLDER MEETING  This joint proxy statement/prospectus is being provided to
    the stockholders of Transatlantic as part of a solicitation of
    proxies by the Transatlantic board of directors for use at the
    Transatlantic Special Shareholder Meeting to be held at the time
    and place specified below, and at any properly convened meeting
    following an adjournment or postponement thereof. This joint
    proxy statement/prospectus provides stockholders of
    Transatlantic with the information they need to know to be able
    to vote or instruct their vote to be cast at the Transatlantic
    Special Shareholder Meeting.
  Date,
    Time and Place
    Purpose
    of the Transatlantic Special Shareholder Meeting
    
    the proposal to adopt the merger agreement, which is further
    described in the sections entitled The Merger and
    The Merger Agreement, beginning on pages 42 and
    87, respectively;
    the proposal to adjourn the Transatlantic Special Shareholder
    Meeting, if necessary or appropriate, to solicit additional
    proxies if there are not sufficient votes to approve the
    foregoing proposal; and
    the proposal, on an advisory basis (non-binding), to approve the
    compensation that may be paid or become payable to
    Transatlantics named executive officers in connection with
    the merger, and the agreements and understandings pursuant to
    which such compensation may be paid or become payable, as
    described below in the section entitled
     Advisory Vote on the Golden Parachute
    Compensation Arrangements for Transatlantics Named
    Executive Officers.    Advisory
    Vote on the Golden Parachute Compensation Arrangements for
    Transatlantics Named Executive Officers
         36




---



##### Table of Contents



Recommendations
    of the Board of Directors of Transatlantic
    The Transatlantic board of directors unanimously recommends
    that Transatlantic stockholders vote FOR each of the
    proposals set forth above. See the section entitled The
    Merger  Transatlantics Reasons for the Merger;
    Recommendations of the Transatlantic Board of Directors
    beginning on page 64 for a more detailed discussion of the
    Transatlantic board of directors recommendation.
  Transatlantic
    Record Date; Stockholders Entitled to Vote
      Voting by
    Transatlantics Directors and Executive Officers
    Quorum
     37




---



##### Table of Contents



Required
    Vote
        Failures
    to Vote, Broker Non-Votes and Abstentions
        Voting at
    the Transatlantic Special Shareholder Meeting
   38




---



##### Table of Contents



Voting in
    Person
      Voting by
    Proxy
    
    logging
    onto          
    and following the instructions on your proxy card to vote via
    the internet anytime up
    to          on          ,
    2011 and following the instructions provided on that site;
    dialing          
    and listening for further directions to vote by telephone
    anytime up
    to          on          ,
    2011 and following the instructions provided in the recorded
    message; or
    signing and returning the accompanying proxy card in the
    enclosed postage-paid envelope. Transatlantic stockholders of
    record may submit their proxies through the mail by completing
    their proxy card, and signing, dating and returning it in the
    enclosed, pre-addressed, postage-paid envelope. To be valid, a
    returned proxy card must be signed and dated.  You should vote your proxy in advance of the Transatlantic
    Special Shareholder Meeting even if you plan to attend the
    Transatlantic Special Shareholder Meeting. You can always change
    your vote at the Transatlantic Special Shareholder Meeting.
      How
    Proxies Are Counted
   39




---



##### Table of Contents



Revocation
    of Proxies
    
    timely delivering a new, valid proxy bearing a later date by
    submitting instructions via the internet, by telephone or by
    mail as described on the proxy card;
    timely delivering a signed written notice of revocation to the
    Secretary of Transatlantic; or
    attending the Transatlantic Special Shareholder Meeting and
    voting in person, which will automatically cancel any proxy
    previously given, or you can revoke your proxy in person. Simply
    attending the Transatlantic Special Shareholder Meeting without
    voting will not revoke any proxy that you have previously given
    or change your vote.             Tabulation
    of Votes
   40




---



##### Table of Contents



Solicitation
    of Proxies
  out-of-pocket
  out-of-pocket
  Adjournments
   41




---



##### Table of Contents



THE
    MERGER Effects
    of the Merger     Background
    of the Merger  Background
    of the Merger
     42




---



##### Table of Contents



and/or
     43




---



##### Table of Contents



44




---



##### Table of Contents



30-day
      30-day
           45




---



##### Table of Contents



stock-for-stock
  market-to-market book-to-book market-to-market book-to-tangible
          book-to-book book-to-book
 46




---



##### Table of Contents



47




---



##### Table of Contents



th th
       48




---



##### Table of Contents



49




---



##### Table of Contents



50




---



##### Table of Contents



Allied
    Worlds Reasons for the Merger; Recommendations of the
    Allied World Board of Directors    
    the potential to create a leading specialty focused insurance
    and reinsurance company with a global reach;
    the potential for revenue growth and synergies to generate
    additional free cash flow available for investment and expansion
    opportunities;
    that although no assurance can be given that any level of
    operating and structural synergies would be achieved following
    the completion of the merger, management estimated significant
    synergies in the principal areas of reduced public company
    costs, consolidated corporate governance, reduced labor, shared
    platform costs and structural flexibility in allocation of
    capital;
    that the greater scale, scope and reach of the combined company,
    including its enhanced business mix diversity and expanded
    European and Asian presence, should make it a more attractive
    partner for potential customers with both national and
    international businesses and help to enhance brand recognition;
    the fact that the merger will create a company with a greater
    size and economies of scale, enabling it to have incremental
    excess capital, greater capital flexibility, ability to respond
    to competitive pressures, greater diversification opportunities
    and an increased opportunity to compete profitably;
    that although no assurance can be given on any level of reaction
    by any independent rating agency, the pro forma independent
    rating agency capital adequacy models of the combined company,
    generate increased quantitative capital adequacy scores and,
    potentially improved debt and financial strength ratings for the
    combined company; 51




---



##### Table of Contents




    the combination of the businesses through the merger will result
    in greater product offerings and improved market positions;
    the combination of the strong and experienced management teams
    from Allied World and Transatlantic will add significant value
    to the combined company;
    the addition of a global reinsurance platform will provide
    Allied World with access to a profitable business segment that
    will allow Allied World to better serve its customers;
    the significant role in the combined company to be played by
    members of management and the current board of directors of
    Allied World, including Scott A. Carmilani, Allied Worlds
    current Chairman, President and Chief Executive Officer (who
    will continue as the combined companys President and Chief
    Executive Officer), and other Allied World employees, which the
    Allied World board of directors believed would enhance the
    prospects of the combined company after completion of the merger
    for the benefit of Allied World shareholders; and
    the financial analyses presented by Deutsche Bank to the Allied
    World board of directors described below under
     Opinion of Allied Worlds Financial
    Advisor, and the opinion of Deutsche Bank rendered to the
    Allied World board of directors that, as of the date such merger
    agreement was signed, based upon and subject to the factors and
    assumptions set forth in its written opinion. See
     Opinion of Allied Worlds Financial
    Advisor.    
    its knowledge of Allied Worlds business, operations,
    financial condition, earnings and prospects and of
    Transatlantics business, operations, financial condition,
    earnings and prospects, taking into account the results of
    Allied Worlds due diligence review of Transatlantic;
    the integration risks, resulting from similar cultures focused
    on underwriting discipline and risk management, the overlap in
    use of information systems, limited business overlap and the
    proven integration track record of Allied World;
    the anticipated market capitalization, liquidity and capital
    structure of the combined company;
    the projected financial results of Allied World as a standalone
    company and the ability of Allied World to achieve strategic
    goals previously established by the Allied World board of
    directors;
    the fact that the exchange ratio of 0.88 Allied World shares for
    each share of Transatlantic common stock is fixed, which the
    Allied World board of directors believed was consistent with
    market practice for mergers of this type and with the strategic
    purpose of the merger; and
    the terms and conditions of the merger agreement and the
    likelihood of completing the merger on the anticipated schedule.    
    the restrictions on the conduct of Allied Worlds business
    during the period between execution of the merger agreement and
    the consummation of the merger, including the inability to
    repurchase shares;
    the potential effect of the merger on Allied Worlds
    overall business, including its relationships with customers,
    employees, suppliers and regulators;
    the challenges inherent in combining the businesses, operations
    and workforces of two companies, including the potential for
    (i) unforeseen difficulties in integrating operations and
    systems, (ii) the possible distraction of management
    attention for an extended period of time and
    (iii) difficulties in assimilating employees;
    the substantial costs to be incurred in connection with the
    merger, including the costs of integrating the businesses of
    Allied World and Transatlantic and the transaction expenses
    arising from the merger; 52




---



##### Table of Contents




    the risk that governmental entities may oppose or refuse to
    approve the merger or impose conditions on Allied World
    and/or
    Transatlantic prior to approving the merger that may adversely
    impact the ability of the combined company to realize synergies
    that are projected to occur in connection with the merger;
    the risk that, despite the combined efforts of Allied World and
    Transatlantic prior to the consummation of the merger, the
    combined company may lose key personnel;
    the possibility of merger arbitrage activity as a result of the
    stock price premium being paid;
    the risk that Transatlantics loss reserves may prove to be
    inadequate;
    the risk that the combined company, with increased policies and
    geographic coverage, will have a level of volatility higher than
    Allied Worlds after the merger as a result of additional
    catastrophe risk exposure;
    the risk of not capturing all of the anticipated operational and
    structural synergies between Allied World and Transatlantic and
    the risk that other anticipated benefits may not be
    realized; and
    the risks of the type and nature described under the heading
    Risk Factors, and the matters described under the
    heading Special Note Regarding Forward-Looking
    Statements.    The Allied World board of directors unanimously approved the
    merger agreement and determined that the merger agreement and
    the transactions contemplated thereby, including the merger, are
    advisable and in the best interests of Allied World. The Allied
    World board of directors unanimously recommends that Allied
    World shareholders vote FOR the proposals set forth
    herein.
 Opinion
    of Allied Worlds Financial Advisor  Opinion
    of Deutsche Bank Securities Inc.
    The full text of the written opinion of Deutsche Bank, dated
    June 12, 2011, which sets forth, among other things, the
    assumptions made, matters considered, and limitations,
    qualifications and conditions of the review undertaken by
    Deutsche Bank in connection with the opinion, is attached as
    Annex B to this joint proxy statement/prospectus and is
    incorporated herein by reference. Allied World shareholders are
    urged to read Deutsche Banks opinion carefully and in its
    entirety. Deutsche Bank expressed no opinion as to the merits of
    the underlying decision by Allied World to engage in the merger
    or the relative
 53




---



##### Table of Contents



merits of the merger as compared to any alternative
    transactions or business strategies, nor did Deutsche Bank
    express an opinion as to how any holder of Allied World shares
    should vote with respect to the merger.
    
    reviewed the reported prices and trading activity for both the
    Allied World shares and the Transatlantic common stock;
    to the extent publicly available, compared certain financial and
    stock market information for Allied World and Transatlantic with
    similar information for certain other companies it considered
    relevant whose securities are publicly traded;
    to the extent publicly available, reviewed the financial terms
    of certain recent business combinations which it deemed relevant;
    reviewed a draft of the merger agreement, dated June 10,
    2011; and
    performed such other studies and analyses and considered such
    other factors as it deemed appropriate.     54




---



##### Table of Contents



55




---



##### Table of Contents



Historical
    Multiples Trends
    Average Multiples of Priceto Book ValueAllied World

TransatlanticCurrent (as of June 10, 2011)


0.78
x


0.69
x10-day


0.76



0.691-month


0.76



0.713-month


0.79



0.736-month


0.78



0.741-year


0.75



0.752-year


0.74



0.805-year


0.92



1.08   Historical
    Exchange Ratio Analysis
    Average Exchange RatiosCurrent (as of June 10, 2011)


0.76
x10-day


0.761-month


0.763-month


0.776-month


0.811-year


0.872-year


0.99     Trading
    Range Analysis
    Contribution
    Analysis
   56




---



##### Table of Contents



Relative ContributionAllied World

TransatlanticFinancial metricsCurrent fully diluted market capitalization (as of 6/10/11)


45
%


55
%Total assets (as of 3/31/2011)


40



60Shareholders equity (as of 3/31/2011)


42



58Shareholders tangible equity (as of 3/31/2011)


39



612010 Actual after-tax operating income


51



492011 Estimated after-tax operating income


52



482011 Estimated after-tax operating income  normalized
    cat losses


39



612012 Estimated after-tax operating income


39



612013 Estimated after-tax operating income


41



59     Implied
    Exchange Ratio Analysis
     57




---



##### Table of Contents



Approximate Implied


ImpliedValue per Share


Exchange RatioAllied World


TransatlanticTrading Multiple Valuation:Price/3/31/2011 Book Value Per Share

$
56-$71


$
45-$64



0.63x-1.15
xPrice/3/31/2011 Tangible Book Value Per Share


53-66



45-67



0.67-1.26Price/2012 Estimated After-Tax Operating Earnings


61-76



43-71



0.56-1.17Dividend Discount Analysis (Price/Book Value)


70-86



57-76



0.67-1.10Dividend Discount Analysis (Price/Earnings)


68-85



56-70



0.66-1.03     Comparable
    Companies Analysis  Allied World
    
    Arch Capital Group Ltd.
    Argo Group International Holdings, Ltd.
    Aspen Insurance Holdings Limited
    Axis Capital Holdings Limited
    Endurance Specialty Holdings Ltd.
    HCC Insurance Holdings, Inc.
    Markel Corporation
    The Navigators Group, Inc.
    RLI Corp.
    W.R. Berkley Corporation      
    the multiple of price to book value per share, which we refer to
    as P/B;
    the multiple of price to tangible book value per share, which we
    refer to as P/B Tangible; and
    the multiple of price to estimated operating earnings per share,
    which we refer to as P/E, for 2012.   58




---



##### Table of Contents



P/B


2012EP/B


Tangible


P/EAllied World


0.78
x


0.88
x


7.6
xSelected CompaniesArch Capital Group Ltd.


1.01



1.01



12.3Argo Group International Holdings, Ltd.


0.62



0.74



12.4Aspen Insurance Holdings Limited


0.62



0.63



8.2Axis Capital Holdings Limited


0.78



0.79



7.5Endurance Specialty Holdings Ltd.


0.75



0.82



8.1HCC Insurance Holdings, Inc.


1.10



1.47



10.9Markel Corporation


1.21



1.59



24.0The Navigators Group, Inc.


0.90



0.91



16.2RLI Corp.


1.54



1.59



13.8W.R. Berkley Corporation


1.25



1.28



12.6     
    Deutsche Bank applied multiples of price to book value per share
    ranging from 0.75x to 0.95x to the book value per Allied World
    share as of March 31, 2011;
    Deutsche Bank applied multiples of price to tangible book value
    per share ranging from 0.80x to 1.00x to the tangible book value
    per Allied World share as of March 31, 2011; and
    Deutsche Bank applied multiples of price to estimated after-tax
    operating earnings ranging from 8.0x to 10.0x to the estimated
    after-tax operating earnings of Allied World for 2012 based on
    the Allied World estimates.    Approximate ImpliedValue per SharePrice/Book Value Per Share3/31/11 Book Value Per Share

$
57 - $713/31/11 Tangible Book Value Per Share


53 - 66Price/2012 Estimated After-Tax Operating Earnings


61 - 76   Comparable
    Companies Analysis  Transatlantic
    
    ACE Limited
    Everest Re Group, Ltd. 59




---



##### Table of Contents




    Münchener Rückversicherungs AG (Munich Re)
    PartnerRe Ltd.
    RenaissanceRe Ltd.
    SCOR SE
    Swiss Reinsurance Co. Ltd.
    Validus Holdings, Ltd.
    XL Capital plc      
    the multiple of price to book value per share, which we refer to
    as P/B;
    the multiple of price to tangible book value per share, which we
    refer to as P/B Tangible; and
    the multiple of price to estimated operating earnings per share,
    which we refer to as P/E, for 2012.      P/B


2012EP/B


Tangible


P/ETransatlantic


0.69
x


0.69
x


6.2
xSelected CompaniesACE Limited


0.96



1.21



8.9Everest Re Group, Ltd.


0.76



0.76



7.4Münchener Rückversicherungs AG (Munich Re)


0.91



1.21



10.1PartnerRe Ltd.


0.79



0.88



8.4RenaissanceRe Ltd.


1.07



1.08



9.3SCOR SE


1.21



1.54



9.8Swiss Reinsurance Co. Ltd.


0.81



0.98



9.6Validus Holdings, Ltd.


0.97



1.02



7.0XL Capital plc


0.64



0.69



9.4  60




---



##### Table of Contents




    Deutsche Bank applied multiples of price to book value per share
    ranging from 0.70x to 1.00x to the book value per share of
    Transatlantic common stock as of March 31, 2011;
    Deutsche Bank applied multiples of price to tangible book value
    per share ranging from 0.70x to 1.05x to the tangible book value
    per share of Transatlantic common stock as of March 31,
    2011; and
    Deutsche Bank applied multiples of price to estimated after-tax
    operating earnings ranging from 6.0x to 10.0x to the estimated
    after-tax operating earnings of Transatlantic for 2012 based on
    the Transatlantic estimates.    Approximate ImpliedValue per SharePrice/Book Value Per Share3/31/11 Book Value Per Share

$
45 - $643/31/11 Tangible Book Value Per Share


45 - 67Price/2012 Estimated After-Tax Operating Earnings


43 - 71   Dividend
    Discount Analysis  Allied World
    Dividend
    Discount Analysis  Transatlantic
   61




---



##### Table of Contents



break-up lock-up
 62




---



##### Table of Contents



out-of-pocket
   Certain
    Allied World Prospective Financial Information     63




---



##### Table of Contents



Form 10-K, Form 10-Q Form 8-K statement/prospectus.
      Fiscal Year

2011


2012


2013


2014


2015(All dollar amounts in millions of dollars)Net Premiums Written

$
1,586


$
1,817


$
2,015


$
2,115


$
2,221Net Income

$
201


$
284


$
325


$
356


$
393Loss Ratio


69.1
%


62.6
%


62.5
%


63.3
%


63.3
%Combined Ratio


99.5
%


92.4
%


91.3
%


92.1
%


92.1
%Total Shareholders Equity

$
3,002


$
3,197


$
3,504


$
3,841


$
4,215  Transatlantics
    Reasons for the Merger; Recommendations of the Transatlantic
    Board of Directors   64




---



##### Table of Contents




    the potential that the merger would create a leading,
    diversified, specialty focused reinsurance and insurance company
    with a global reach and a local presence in key markets;
    managements belief that the combined company would have a
    strengthened balance sheet with $8.5 billion of total
    capital;
    although no assurance can be given on the reaction of any
    independent rating agency, managements belief that the
    combined company would be able to maintain the financial
    strength ratings of Transatlantic, especially at S&P, which
    is a significant asset to Transatlantics international
    business;
    managements belief that the combination would diversify
    risk, which should allow the combined company to weather
    cyclical conditions and reduce volatility of earnings and
    deliver more stable results under a wider range of market
    conditions and economic environments while creating a foundation
    for future growth;
    the fact that Transatlantic would gain multiple platforms,
    including European Union based operating subsidiaries;
    Transatlantic board of directors belief, based upon
    discussions with Transatlantics management and after a
    thorough review of Transatlantics strategic alternatives,
    that the merger would provide greater value to the Transatlantic
    stockholders within a shorter timeframe than other potential
    strategic alternatives available to Transatlantic, including the
    continued operation of Transatlantic as a standalone company;
    managements belief that property catastrophe exposure of
    the combined company would remain at an optimal level, allowing
    for future growth;
    although no assurance can be given that any level of operating
    and structural synergies would be achieved following the
    completion of the merger, managements estimate, consistent
    with Allied Worlds managements estimate, that the
    combination of Transatlantic and Allied World would create
    significant annual synergies on an after tax basis due, in part,
    to more efficient allocation of capital and cost savings;
    the fact that, with a Swiss domicile, the combined company
    should have greater capital flexibility;
    the fact that Transatlantic stockholders immediately prior to
    the merger would hold approximately 58% of the voting power of
    the combined company on a fully diluted basis immediately
    following completion of the merger;
    the fixed exchange ratio of 0.88 Allied World shares for each
    share of Transatlantic common stock, which represented a premium
    of 16% to the closing price of Transatlantic common stock, based
    on the closing price of Allied World shares on June 10,
    2011 (the last trading day before public announcement of the
    merger);
    the complementary nature of Transatlantics and Allied
    Worlds businesses;
    the view of the Transatlantic board of directors that there will
    be limited integration risk due to the similar cultures of
    Transatlantic and Allied World with respect to underwriting
    discipline and risk management, common information technology
    systems, and limited business overlap;
    the structure of the transaction as a merger of equals,
    including the provisions in the merger agreement that:  
    the combined companys board of directors would initially
    be comprised of 11 members, six of which would be designated by
    Transatlantic;
    the combined companys board committee assignments would be
    split evenly between designees from the Transatlantic board of
    directors and designees from the Allied World board of directors; 65




---



##### Table of Contents




    Mr. Press would initially be the non-executive chairman of
    the board of directors of the combined company;
    Mr. Sapnar would be appointed as the President and Chief
    Executive Officer of Global Reinsurance of the combined
    company; and
    the remaining members of management of the combined company
    would be drawn from the two companies on a fair and equitable
    basis with a roughly equal number of people coming from each;  
    the expectation of the Transatlantic board of directors that the
    integration of the two companies will be completed in a timely
    and efficient manner with minimal disruption to customers and
    employees;
    the fact that the combined company would have a highly
    experienced management team with extensive industry experience
    in the most significant facets of the insurance and reinsurance
    industry;
    the Transatlantic board of directors knowledge of
    Transatlantics business, financial condition, results of
    operations and prospects as a standalone company, as well as
    Allied Worlds business, financial condition, results of
    operations and prospects, taking into account the results of
    Transatlantics due diligence review of Allied World;
    the strong commitment on the part of both parties to complete
    the merger pursuant to their respective obligations under the
    terms of the merger agreement;
    the fact that the merger agreement allows the Transatlantic
    board of directors to change or withdraw its recommendation
    regarding the merger proposal if a superior proposal is received
    from a third party or in response to certain material
    developments or changes in circumstances, if in either case the
    Transatlantic board of directors determines that a failure to
    change its recommendation would result in a breach of its
    fiduciary duties under applicable law, subject to the payment of
    a termination fee upon termination under certain circumstances;
    the Transatlantic board of directors belief, after
    consultation with its internal and outside legal counsel, that
    the transactions are likely to receive necessary regulatory
    approvals in a relatively timely manner without material adverse
    conditions, which increases the likelihood the transactions will
    be consummated; and
    the financial analyses presented by Moelis to the Transatlantic
    board of directors described below under
     Opinion of Transatlantics Financial
    Advisor and the opinion of Moelis, delivered orally at the
    Transatlantic board of directors meeting on June 12,
    2011, and subsequently confirmed in writing by delivery of a
    written opinion dated the same date, to the effect that, as of
    that date and based upon and subject to the assumptions,
    procedures, factors, qualifications and limitations set forth in
    such written opinion, the exchange ratio pursuant to the merger
    agreement was fair, from a financial point of view, to the
    holders of Transatlantic common stock. See
     Opinion of Transatlantics Financial
    Advisor.    
    the restrictions on the conduct of Transatlantics business
    during the period between execution of the merger agreement and
    the consummation of the merger;
    the substantial costs to be incurred in connection with the
    merger, including the substantial cash and other costs of
    integrating the businesses of Transatlantic and Allied World, as
    well as the transaction expenses arising from the merger;
    the fact that forecasts of future results of operations and
    synergies are necessarily estimates based on assumptions, and
    that for these and other reasons there is a risk of not
    capturing anticipated operational synergies and cost savings
    between Transatlantic and Allied World and the risk that other
    anticipated benefits might not be realized;
    the potential effect of the merger on Transatlantics
    business and relationships with employees, customers, suppliers,
    brokers, regulators and the communities in which it operates; 66




---



##### Table of Contents




    the fact that the transaction would be taxable to
    Transatlantics stockholders that are U.S. holders for
    U.S. federal income tax purposes;
    the risk that governmental entities may not approve the merger
    or may impose conditions on Transatlantic or Allied World in
    order to gain approval for the merger that may adversely impact
    the ability of the combined company to realize the synergies
    that are projected to occur in connection with the merger;
    the possibility that the merger may not be completed, or that
    completion may be unduly delayed, for reasons beyond the control
    of Transatlantic
    and/or
    Allied World;
    the potential that the termination fee provisions of the merger
    agreement could have the effect of discouraging a bona fidealternative acquisition proposal for Transatlantic;
    the merger agreements requirement that the Transatlantic
    board of directors call and hold a meeting of Transatlantic
    stockholders to vote upon the merger, regardless of whether or
    not the Transatlantic board of directors has withdrawn or
    adversely modified its recommendation to the Transatlantic
    stockholders regarding the merger in response to a superior
    proposal or certain material developments or changes in
    circumstances;
    potential withholding taxes associated with reallocating capital
    among different jurisdictions;
    the risk that Allied Worlds loss reserves may prove to be
    inadequate;
    the challenges of combining Transatlantics business with
    Allied Worlds business, including technical, accounting
    and other challenges, and the risk of diverting management
    resources for an extended period of time to accomplish this
    combination;
    the loss of key personnel could delay or prevent the combined
    entity from fully implementing its business strategy and,
    consequently, significantly and negatively affect its business;
    risks of the type and nature described in the section entitled
    Risk Factors beginning on page 22 and
    Special Note Regarding Forward-Looking Statements
    beginning on page 21; and
    the fact that Transatlantics directors and executive
    officers have interests in the merger that may be different
    from, or in addition to, those of Transatlantic stockholders.
    See the section entitled The Merger  Interests
    of Transatlantics Directors and Executive Officers in the
    Merger beginning on page 78.    The Transatlantic board of directors unanimously approved the
    merger agreement and determined that the merger agreement and
    the transactions contemplated thereby, including the merger, are
    advisable and in the best interests of Transatlantic and its
    stockholders. The Transatlantic board of directors unanimously
    recommends that Transatlantic stockholders vote FOR
    the adoption of the merger agreement proposal.
 67




---



##### Table of Contents



Opinion
    of Transatlantics Financial Advisor  Opinion
    of Moelis & Company LLC
    The full text of Moelis written opinion, dated
    June 12, 2011, which sets forth the assumptions made,
    procedures followed, matters considered and limitations on the
    review undertaken in connection with the opinion, is attached to
    this joint proxy statement/prospectus as Annex C and is
    incorporated into this joint proxy statement/prospectus by
    reference. Holders of Transatlantic common stock are urged to
    read Moelis written opinion and this section carefully and
    in their entirety. The following summary describes the material
    analyses underlying Moelis opinion, but does not purport
    to be a complete description of the analyses performed by Moelis
    in connection with its opinion. Moelis opinion is limited
    solely to the fairness, from a financial point of view, of the
    exchange ratio set forth in the merger agreement to the holders
    of Transatlantic common stock as of the date of the opinion and
    does not address Transatlantics underlying business
    decision to effect the merger or the relative merits of the
    merger as compared to any alternative business strategies or
    transactions that might be available to Transatlantic.
    Moelis opinion does not constitute a recommendation to any
    stockholder of Transatlantic as to how such stockholder should
    vote with respect to the merger or any other matter.
    Moelis opinion was approved by a Moelis fairness opinion
    committee.
    
    reviewed certain publicly available business and financial
    information relating to Transatlantic and Allied World that
    Moelis deemed relevant;
    reviewed certain internal information relating to the business,
    including financial forecasts, earnings, cash flow, assets,
    liabilities and prospects of Transatlantic, furnished to Moelis
    by Transatlantic;
    reviewed certain internal information relating to the business,
    including financial forecasts, earnings, cash flow, assets,
    liabilities and prospects of Allied World, furnished to Moelis
    by Allied World;
    conducted discussions with members of senior management and
    representatives of Transatlantic and Allied World concerning the
    matters described in the foregoing, as well as their respective
    businesses and prospects before and after giving effect to the
    merger;
    reviewed publicly available financial and stock market data,
    including valuation multiples, for Transatlantic and Allied
    World and compared them with those of certain other companies in
    lines of business that Moelis deemed relevant;
    compared the proposed financial terms of the merger with the
    financial terms of certain other transactions that Moelis deemed
    relevant;
    reviewed a draft of the merger agreement, dated June 11,
    2011;
    participated in certain discussions and negotiations among
    representatives of Transatlantic and Allied World and their
    financial and legal advisors; and
    conducted such other financial studies and analyses and took
    into account such other information as Moelis deemed appropriate.   68




---



##### Table of Contents



Dividend
    Discount Model Analysis
     69




---



##### Table of Contents



5-year
      Implied ExchangeRatioHighest Transatlantic equity value per share to lowest Allied
    World equity value per share


0.750
xLowest Transatlantic equity value per share to highest Allied
    World equity value per share


1.081
x   Selected
    Public Companies Analysis
  and/or
  
    ACE Limited;
    Alterra Capital Holdings Limited;
    Arch Capital Group Ltd.;
    Aspen Insurance Holdings Limited;
    AXIS Capital Holdings Limited;
    Endurance Specialty Holdings Ltd.; 70




---



##### Table of Contents




    EverestRe Group Ltd.;
    Flagstone Reinsurance Holdings Limited;
    Montpelier Re Holdings Ltd.;
    PartnerRe Ltd.;
    Platinum Underwriters Holdings, Ltd.;
    RenaissanceRe Holdings Ltd.;
    Validus Holdings, Ltd.; and
    XL Capital Ltd.    
    EverestRe Group Ltd.;
    PartnerRe Ltd.; and
    Platinum Underwriters Holdings, Ltd.    
    ACE Limited;
    Alterra Capital Holdings Limited;
    Arch Capital Group Ltd.;
    Aspen Insurance Holdings Limited;
    AXIS Capital Holdings Limited;
    Endurance Specialty Holdings Ltd; and
    XL Capital Ltd.  price-to-earnings price-to-book price-to-tangible-book
    Transatlantics
    Core Selected Companies
  Median


MeanP/E2012E


7.4
x


7.7
xP/BV2012E


0.77
x


0.80
xP/TBV2012E


0.77
x


0.84
x  71




---



##### Table of Contents



Allied
    Worlds Core Selected Companies
  Median


MeanP/E2012E


8.9
x


9.0
xP/BV2012E


0.85
x


0.87
xP/TBV2012E


0.88
x


0.94
x   Overall 
    All Selected Public Companies
  Median


MeanP/E2012E


8.0
x


8.1
xP/BV2012E


0.83
x


0.87
xP/TBV2012E


0.88
x


0.91
x         Low


HighFY 2012 Operating Income


0.637



1.134Book Value (as of 3/31/11)


0.561



1.044Tangible Book Value (as of 3/31/11)


0.601



1.374  72




---



##### Table of Contents



Selected
    Transactions Analysis
  ,
  
    Max Capital Group Ltd.s merger with Harbor Point, Ltd.
    announced on March 3, 2010;
    Validus Holdings Ltd.s merger with IPC Holdings Ltd.
    announced on July 9, 2009;
    PartnerRe Holdings Ltd.s acquisition of PARIS Re Holdings
    Ltd. announced on July 4, 2009; and
    SCOR Holding (Switzerland) Ltd.s acquisition of Converium
    Holding AG announced on May 10, 2007.    P/BV


P/TBVMax Capital/Harbor Point


0.79
x


0.92
xValidus/IPC


0.85
x


0.85
xPartner Re/PARIS Re


0.97
x


1.09
xSCOR/Converium


1.69
x


1.42
x       Low


HighBook Value (as of 3/31/11)


0.724



1.021Tangible Book Value (as of 3/31/11)


0.779



1.188   52-Week
    Trading Range
    Contribution
    Analysis
    
    implied equity ownership as a result of the merger (based on
    fully diluted shares outstanding) and market capitalization (on
    a fully diluted basis based on closing share price as of
    June 10, 2011); 73




---



##### Table of Contents




    FY 2010 net premiums written;
    FY 2010 and projected FYs 2011 and 2012 operating income as
    provided by Transatlantic and Allied World management
    respectively; and
    cash and investments, net policy reserves, equity (including
    accumulated other comprehensive income (AOCI)), and
    tangible equity (including AOCI), in each case, as per the
    applicable companys March 31, 2011 balance sheet.    Implied ExchangeMetric

Transatlantic

Allied World

RatioImplied Equity Ownership


58.4
%


41.6
%


0.880
xMarket Capitalization


54.7
%


45.3
%


0.758
xIncome Statement2010 Net Premiums Written


73.6
%


26.4
%


1.750
x2010A Operating Income


49.0
%


51.0
%


0.604
x2011E Operating Income


41.2
%


58.8
%


0.439
x2012E Operating Income


61.5
%


38.5
%


1.001
xBalance Sheet as of 3/31/11Cash and Investments


62.8
%


37.2
%


1.059
xNet Policy Reserves


68.4
%


31.6
%


1.356
xEquity (including AOCI)


57.8
%


42.2
%


0.860
xTangible Equity (including AOCI)


60.5
%


39.5
%


0.962
x          74




---



##### Table of Contents



out-of-pocket
  and/or
   75




---



##### Table of Contents



Certain
    Information Regarding Transatlantics Financial
    Advisor  Goldman Sachs     Certain
    Transatlantic Prospective Financial Information   76




---



##### Table of Contents



77




---



##### Table of Contents



2011E


2012E


2013E


2014E


2015ENet premiums written

$
4,050


$
4,150


$
4,250


$
4,400


$
4,550Net income(1)(2)(3)

$
189


$
465


$
476


$
494


$
515Loss ratio


79.1
%


67.0
%


67.0
%


67.0
%


67.0
%Combined ratio


107.2
%


95.6
%


95.6
%


95.7
%


95.7
%Stockholders equity(1)(2)(4)

$
4,395


$
4,815


$
5,240


$
5,680


$
6,135     (1)
    
    Includes impact of assumed continuation of historical dividends.(2)
    
    Excludes impact of repurchases of Transatlantics
    outstanding common stock or senior notes.(3)
    
    Operating income (not provided above) is net income excluding
    realized net capital gains (losses) and the gain (loss) on early
    extinguishment of debt, net of taxes.(4)
    
    As of December 31. Interests
    of Allied Worlds Directors and Executive Officers in the
    Merger         Interests
    of Transatlantics Directors and Executive Officers in the
    Merger   78




---



##### Table of Contents



Treatment
    of Equity Awards
     79




---



##### Table of Contents



Golden
    Parachute Compensation
    Regulation S-K)
  Golden
    Parachute Compensation Table
  CashCash


(Non-





Pension/


Perquisites/


Tax(Severance)


Severance)


Equity


NQDC


Benefits


Reimbursement


Other


TotalName

($)


($)


($)


($)


($)


($)


($)(1)


($)Robert F. Orlich






























Steven S. Skalicky


























1,500,000



1,500,000Paul A. Bonny


























2,000,000



2,000,000Javier E. Vijil


























1,500,000



1,500,000Michael C. Sapnar






























     (1)
    
    As noted above, these amounts assume that the named executive
    officer is entitled to the full amount for which he is eligible
    under the applicable Retention Agreement. These amounts would
    also be paid out, on a pro rata basis pursuant to the applicable
    Retention Agreement upon termination by Transatlantic without
    Cause, or due to death or Disability or
    by the executive with Good Reason prior to
    December 31, 2013, or upon death or disability of the
    executive prior to December 31, 2013. In consideration for
    entering into the Retention Agreements, each executive shall
    provide a limited waiver of the executives right to resign
    for Good Reason in connection with the merger.  Transatlantic Executive Severance Plan.
  
    severance in an amount equal to one-twelfth the sum of:
    (i) the participants annual base salary in the year
    of termination, (ii) any supplemental or quarterly cash
    bonus payable to such participant in respect of the year of
    termination, and (iii) the average of the
    participants annual cash bonus awards earned and paid with
    respect to the three most recently completed fiscal years;
    continued vesting of restricted stock units, earned but unvested
    performance restricted stock units and options as though there
    had been no termination of employment; 80




---



##### Table of Contents




    continued participation in Transatlantics health plan at
    active employee rates and continued service credit for
    eligibility and company contribution levels for purposes of the
    retiree health plan;
    continued vesting and accrual of additional non-qualified
    pension credits; and
    continued life insurance and retiree health plan coverage at
    active employee rates including continued service credit for
    eligibility and company contribution levels in such plans.    
    Each participant is generally prohibited from (i) engaging
    in, being employed by, rendering services to or acquiring
    financial interests in any business that is competitive with
    Transatlantic, (ii) interfering with Transatlantics
    business relationships with customers, suppliers, or
    consultants, or (iii) soliciting or hiring certain key
    employees of Transatlantic. These restrictions apply for the
    earlier of one year after termination or the length of the
    Severance Period.
    Each participant must not disclose Transatlantics
    confidential information. Board of
    Directors and Management Following the Merger    
    Class II (to hold office commencing upon the completion of
    the merger and ending upon TransAllieds Annual Shareholder
    Meeting in 2012): two former independent Transatlantic directors
    and a former independent Allied World director;
    Class III (to hold office commencing upon the completion of
    the merger and ending upon TransAllieds Annual Shareholder
    Meeting in 2013): two former independent Transatlantic directors
    and two former independent Allied World directors; and
    Class I (to hold office commencing upon the completion of
    the merger and ending upon TransAllieds Annual Shareholder
    Meeting in 2014): Scott A. Carmilani, Richard S. Press, Michael
    C. Sapnar, and a former independent Allied World director.     81




---



##### Table of Contents




    For a period of one year from the closing date of the merger,
    the Executive Committee is to be comprised of
    Mr. Carmilani, one former independent Allied World director
    and two former independent Transatlantic directors, and to be
    chaired by Mr. Carmilani;
    For a period of one year from the closing date of the merger,
    each of the Investment Committee and Nominating &
    Corporate Governance Committee are to be comprised of two former
    independent Allied World directors and two former independent
    Transatlantic directors, and to be chaired by one of the former
    independent Allied World directors; and
    For a period of one year from the closing date of the merger,
    each of the Audit Committee, Compensation Committee and
    Enterprise Risk Committee are to be comprised of two former
    independent Allied World directors and two former independent
    Transatlantic directors, and chaired by one of the former
    independent Transatlantic directors.     Regulatory
    Clearances Required for the Merger    and/or
   82




---



##### Table of Contents



Exchange
    of Shares in the Merger           83




---



##### Table of Contents



Treatment
    of Transatlantic Stock Options and Other Long-Term Incentive
    Awards    Stock Options.
  Stock-Based Award
   Dividend
    Policy       84




---



##### Table of Contents



Listing
    of Allied World Shares   De-Listing
    and Deregistration of Transatlantic Common Stock   No
    Appraisal Rights   Litigation
    Related to the Merger  Ivers v. Transatlantic Holdings,
    Inc., et al. Clark v.
    Transatlantic Holdings, Inc., et al. Sutton v.
    Transatlantic Holdings, Inc., et al. Jaroslawicz v. Transatlantic Holdings, Inc.,
    et al. Kramer v.
    Transatlantic Holdings, Inc., et al. Jaroslawicz Sutton and/or
 85




---



##### Table of Contents



Clark
  June 29-30, Clark Sutton Jaroslawicz Ivers
   The
    Combined Companys Share Repurchase Program
    Post-Merger     86




---



##### Table of Contents



THE
    MERGER AGREEMENT  statement/prospectus.
    
    may not be intended as statements of fact, but rather as a way
    of allocating the risk between the parties in the event the
    statements therein prove to be inaccurate;
    have been qualified by certain disclosures that were made
    between the parties in connection with the negotiation of the
    merger agreement, which disclosures are not reflected in the
    merger agreement itself; and
    may apply standards of materiality in a way that is different
    from what may be viewed as material by you or other investors.  proxy statement/prospectus.
   Terms of
    the Merger; Merger Consideration       87




---



##### Table of Contents



Completion
    of the Merger     Exchange
    of Shares in the Merger       Representations
    and Warranties    
    organization and corporate power;
    ownership of subsidiaries; 88




---



##### Table of Contents




    capital structure;
    authority with respect to the execution and delivery of the
    merger agreement, and the due and valid execution and delivery
    and enforceability of the merger agreement;
    required regulatory filings and consents and approvals of
    governmental entities;
    absence of conflicts with, or violations of, organizational
    documents, other contracts and applicable laws;
    SEC documents and financial statements;
    accuracy of information supplied, or to be supplied, for use in
    this joint proxy statement/prospectus;
    absence of certain changes and events from December 31,
    2010 to the date of execution of the merger agreement;
    absence of undisclosed material liabilities;
    compliance with applicable laws and permits;
    absence of certain litigation;
    title to properties and the absence of liens;
    opinions of financial advisors;
    tax matters;
    benefits matters and ERISA compliance;
    collective bargaining agreements and other labor matters;
    environmental matters;
    intellectual property;
    material contracts;
    brokers and finders fees payable in connection with the
    merger;
    inapplicability of takeover statutes;
    absence of transactions, contracts or arrangements with
    affiliates requiring disclosure under the securities laws;
    licensing and authorization of insurance subsidiaries;
    statutory statements and examination reports of any insurance
    regulatory authorities;
    absence of certain agreements with regulators;
    reinsurance and retrocession treaties or agreements;
    rating agency actions;
    insurance policy reserves;
    risk-based capital reports;
    insurance issued by its respective subsidiaries; and
    absence of performance of duties of insurance producer or
    reinsurance intermediary.   89




---



##### Table of Contents




    entering into or complying with the merger agreement or the
    public announcement or pendency of the merger or any of the
    other transactions contemplated by the merger agreement,
    including the impact of so entering into the merger agreement on
    the relationships of such party or any of its subsidiaries with
    employees, customers, brokers, agents, financing sources,
    suppliers or partners, and regulators;
    changes in law following the date of the merger agreement;
    changes in GAAP or SAP following the date of the merger
    agreement (or local equivalents in the applicable jurisdiction)
    prescribed by the applicable insurance regulatory authority,
    including accounting and financial reporting pronouncements by
    the SEC, the National Association of Insurance Commissioners and
    the Financial Accounting Standards Board;
    any change or announcement of a potential change in such
    partys or such partys subsidiaries credit or
    claims paying rating or A.M. Best Company rating or the
    ratings of such party or such partys subsidiaries
    businesses or securities (however, the facts or occurrences
    giving rise to such a change may be deemed to constitute or be
    taken into account in determining whether there has been or will
    be a material adverse effect);
    a suspension of trading or a change in the trading prices of
    such partys common stock (however, the facts or
    occurrences giving rise to such failure may be deemed to
    constitute or be taken into account in determining whether there
    has been or will be a material adverse effect);
    the failure to meet any revenue, earnings or other projections,
    forecasts or predictions for any period ending after the date of
    the merger agreement (however, the facts or occurrences giving
    rise to such failure may be deemed to constitute or be taken
    into account in determining whether there has been or will be a
    material adverse effect);
    any action or failure to act expressly required to be taken by a
    party pursuant to the terms of the merger agreement;
    to the extent the following changes, state of facts,
    circumstances, events or effects do not have a materially
    disproportionate effect on such party and its subsidiaries,
    taken as a whole, relative to other companies of similar size
    operating in the property and casualty insurance
    and/or
    reinsurance industry, as applicable:  
    changes in economic, market, business regulatory or political
    conditions generally in the United States or any other
    jurisdiction in which such party or its subsidiaries operate or
    in the United States or global financial markets;
    changes, circumstances or events generally affecting the
    property and casualty insurance
    and/or
    reinsurance industry in the geographic areas in which such party
    and its subsidiaries operate;
    changes, circumstances or events resulting in liabilities under
    property catastrophe insurance
    and/or
    reinsurance agreements, including any effects resulting from any
    hurricane, tornado, flood, earthquake, windstorm, terrorist act,
    act of war or other natural or man-made disaster; or
    the commencement, occurrence or continuation of any war or armed
    hostilities. 90




---



##### Table of Contents



Conduct
    of Business      
    amend its organizational documents;
    (i) split, combine or reclassify any of its capital stock,
    (ii) declare, set aside or pay dividends or other
    distributions on any of its capital stock (other than Allied
    World and Transatlantic dividends declared and paid in the
    ordinary course of business), or (iii) redeem, repurchase
    or otherwise acquire its own capital stock or other voting
    securities or equity interests;
    issue, deliver, pledge or sell, or authorize the issuance,
    delivery or sale of, any of its or its subsidiaries
    shares, equity equivalents or capital stock, other than the
    issuance of any shares upon the exercise of stock-based awards
    that were outstanding on the date of the merger agreement and
    the issuance of any capital stock of its subsidiary to any other
    subsidiary;
    incur any unbudgeted capital expenditure in excess of $1,000,000
    individually or $2,500,000 in the aggregate;
    acquire any assets, securities, properties, interests or
    businesses, other than (i) arms-length acquisitions
    of supplies, equipment, investment securities or other assets in
    the ordinary course of business consistent with past practice or
    (ii) acquisitions with a net purchase price not in excess
    of $5,000,000 individually or $10,000,000 in the aggregate;
    sell, lease, sublease, exchange or otherwise transfer or create
    a lien on any of its assets, securities, properties, interests
    or businesses or grant an option to do any of the foregoing,
    other than in the ordinary course of business consistent with
    past practice or other sales with a value that does not exceed
    $5,000,000 individually or $10,000,000 in the aggregate;
    make any loans, advances or capital contributions to, or
    investments in, any person or entity, other than in the ordinary
    course of business or to a wholly-owned subsidiary;
    create, incur, assume, suffer to exist or otherwise be liable
    with respect to any indebtedness for borrowed money or
    guarantees thereof (including reimbursement obligations with
    respect to letters of credit), other than (i) in
    replacement of existing or maturing debt, (ii) guarantees
    relating to business written by any wholly-owned subsidiary
    (whether directly or indirectly) in the ordinary course of its
    insurance or reinsurance business consistent with past practice
    and (iii) draw-downs pursuant to existing credit facilities
    and letters of credit in support of its insurance or reinsurance
    business consistent with past practice;
    make material changes to its benefit plans or increase
    compensation and benefits paid to employees;
    make any change in financial or tax accounting methods, except
    as required by a change in GAAP or SAP;
    settle any litigation, actions or proceedings, except
    settlements in the ordinary course of business and settlements
    subject to (and not materially in excess of) reserves; 91




---



##### Table of Contents




    make any material change with respect to taxes, tax returns or
    the accounting thereof;
    amend or modify in any material respect or terminate any
    material contract or waive, release or assign any material
    rights, claims or benefits of it or its subsidiaries under any
    material contract or enter into any material contract except in
    the ordinary course of business consistent with past practice;
    adopt a plan of complete or partial liquidation, dissolution,
    merger, consolidation, restructuring, recapitalization or other
    reorganization; and
    agree, resolve or commit to doing any of the foregoing. No
    Solicitation of Alternative Proposals       92




---



##### Table of Contents



Changes
    in Board Recommendations       Efforts
    to Obtain Required Stockholder Votes   93




---



##### Table of Contents



Efforts
    to Complete the Merger    
    take, or cause to be taken, all actions, and do, or cause to be
    done, and assist and cooperate with the other parties in doing,
    all things necessary to consummate and make effective, as soon
    as reasonably possible, the merger and the other transactions
    contemplated by the merger agreement; and
    take, or cause to be taken, all actions, to file, or cause to be
    filed, all documents and to do, or cause to be done, all things
    necessary, proper or advisable to consummate the transactions
    contemplated by the merger agreement, including preparing and
    filing as promptly as practicable all documentation to effect
    all necessary filings, consents, waivers, approvals,
    authorizations, permits or orders from all third parties and
    governmental entities, so as to enable the completion of the
    merger as soon as reasonably practicable.    
    make and cause to be made all necessary registrations, filings
    and notices relating to the merger with governmental entities
    under certain applicable antitrust laws;
    respond, as promptly as practicable under the circumstances, to
    any inquiries received from any governmental entity for
    additional information or documentation in connection with
    antitrust, competition, trade regulation or similar matters;
    use reasonable best efforts to achieve substantial compliance as
    promptly as practicable with any second request received by the
    Antitrust Division or FTC;
    certify substantial compliance with any second request as
    promptly as practicable after the date of such second request
    (but no later than December 15, 2011) and take all
    actions necessary to assert, defend and support such
    certification; and
    not extend any waiting period under any antitrust law or enter
    into any agreement with a governmental entity or other authority
    to delay, or otherwise not consummate as soon as practicable,
    any of the transactions contemplated by the merger agreement.   94




---



##### Table of Contents



Governance
    Matters After the Merger    
    Class II (to hold office commencing upon the completion of
    the merger and ending upon TransAllieds Annual Shareholder
    Meeting in 2012): two former independent Transatlantic directors
    and a former independent Allied World director;
    Class III (to hold office commencing upon the completion of
    the merger and ending upon TransAllieds Annual Shareholder
    Meeting in 2013): two former independent Transatlantic directors
    and two former independent Allied World directors; and
    Class I (to hold office commencing upon the completion of
    the merger and ending upon TransAllieds Annual Shareholder
    Meeting in 2014): Scott A. Carmilani, Richard S. Press, Michael
    C. Sapnar, and a former independent Allied World director.          
    For a period of one year from the closing date of the merger,
    the Executive Committee is to be comprised of
    Mr. Carmilani, one former independent Allied World director
    and two former independent Transatlantic directors, and to be
    chaired by Mr. Carmilani;
    For a period of one year from the closing date of the merger,
    each of the Investment Committee and Nominating &
    Corporate Governance Committee are to be comprised of two former
    independent Allied World directors and two former independent
    Transatlantic directors, and to be chaired by one of the former
    independent Allied World directors; 95




---



##### Table of Contents




    For a period of one year from the closing date of the merger,
    each of the Audit Committee, Compensation Committee and
    Enterprise Risk Committee are to be comprised of two former
    independent Allied World directors and two former independent
    Transatlantic directors, and to be chaired by one of the former
    independent Transatlantic directors.     Transatlantic
    Common Stock Purchase   Cantonal
    Tax Ruling   Swiss
    Commercial Register Ruling   Retention
    Program and Employee Waivers   Treatment
    of Transatlantic Stock Options and Other Stock-Based Awards and
    Programs    Stock Options.
 96




---



##### Table of Contents



Stock-Based Awards.
   Other
    Covenants and Agreements    
    cooperation between Allied World and Transatlantic in the
    preparation of this joint proxy
    statement/prospectus;
    confidentiality and access by each party to certain information
    about the other party during the period prior to the effective
    time of the merger;
    cooperation between Allied World and Transatlantic in the
    defense or settlement of any shareholder litigation relating to
    the merger;
    causing any dispositions of Transatlantic common stock resulting
    from the merger and any acquisitions of Allied World shares
    resulting from the merger by each individual who may become
    subject to reporting requirements under the securities laws to
    be exempt from Section 16(b) of the Exchange Act;
    on or before the effective date of the merger, either
    (i) the termination of the Allied World secured credit
    facility and the Allied World unsecured credit facility or
    (ii) the use of Allied Worlds reasonable best efforts
    to obtain the necessary consents of lenders party to the Allied
    World secured credit facility and the Allied World unsecured
    credit facility, in each case, to allow the credit facilities to
    remain in effect after the completion of the merger with no
    default or event of default thereunder resulting from the merger
    or the consummation of other transactions contemplated thereby;
    cooperation between Allied World and Transatlantic to enter into
    a supplemental indenture with respect to Transatlantics
    outstanding unsecured notes; and
    cooperation between Allied World and Transatlantic in connection
    with public announcements.   97




---



##### Table of Contents



Conditions
    to Completion of the Merger    
    approval by the Allied World shareholders of (i) the share
    capital increase proposals, (ii) the NYSE share
    issuance proposal and (iii) the name change proposal;
    approval by the Transatlantic stockholders of the adoption of
    the merger agreement proposal;
    authorization of the listing of the Allied World shares to be
    issued in the merger on the NYSE, subject to official notice of
    issuance;
    the waiting period (and any extension thereof) applicable to the
    merger under the HSR Act having expired or been earlier
    terminated;
    obtain any necessary approvals of the applicable insurance
    regulatory authorities in New York, Bermuda and Switzerland;
    receipt of other requisite regulatory approvals;
    all consents and approvals of, and filings with, governmental
    entities having been made, obtained and in full force other than
    those that would not reasonably be expected to have a material
    adverse effect on Allied World or Transatlantic after giving
    effect to the merger;
    effectiveness of the registration statement of which this joint
    proxy statement/prospectus forms a part and the absence of a
    stop order or proceedings threatened or initiated by the SEC for
    that purpose;
    absence of any order, injunction, decree, statute, rule or
    regulation by a court or other governmental entity that makes
    illegal or prohibits the consummation of the merger or the other
    transactions contemplated by the merger agreement;
    approval by the Allied World shareholders of the election of
    directors proposal and execution of a written consent of the
    TransAllied board approving certain committee and officer
    appointments;
    a ruling from the Swiss Commercial Register having been
    obtained; and
    the purchase by Allied World, following receipt of the requisite
    Allied World and Transatlantic shareholder approvals discussed
    herein, of 45,000 shares of Transatlantic common stock
    having been completed.    
    the representations and warranties of each party, other than the
    representations related to the shares issued and outstanding or
    reserved for issuance, the necessary corporate power and
    authority to execute and deliver the merger agreement, and the
    brokers and finders fees, will be true and correct
    (without giving effect to any materiality qualifications
    contained in such representations and warranties) as of the date
    of the merger agreement and as of the closing date (other than
    those representations and warranties that were made only as of a
    specified date, which need only be true and correct as of such
    specified date), except where the failure of such
    representations and warranties to be so true and correct
    (without giving effect to any limitation as to
    materiality or to material adverse effect set forth
    therein), individually or in the aggregate, has not had, and
    would not reasonably be expected to have, a material adverse
    effect on such party;
    the representations and warranties of each party relating to the
    shares issued and outstanding or reserved for issuance, the
    necessary corporate power and authority to execute and deliver
    the merger agreement, and the brokers and finders
    fees, will be true and correct in all material respects as of
    the date of the merger agreement and as of the closing date
    (except to the extent such representations or warranties were
    made as of an earlier date, in which case, as of such earlier
    date); 98




---



##### Table of Contents




    each party having performed or complied with, in all material
    respects, all its obligations under the merger agreement at or
    prior to the effective time of the merger; and
    receipt of a certificate executed by each partys chief
    executive officer or chief financial officer as to the
    satisfaction of the conditions described in the preceding three
    bullet points. Termination
    of the Merger Agreement    
    by mutual written consent of Allied World and Transatlantic;
    by either the Allied World or Transatlantic board of directors:  
    if any governmental entity issues a final and nonappealable
    order permanently enjoining or otherwise prohibiting the
    completion of the merger, except that no party may terminate the
    merger agreement if such partys breach of its obligations
    proximately contributed to the issuance of such order;
    if the Allied World shareholders fail to approve any of the
    share capital increase proposals, the NYSE share issuance
    approval or the name change proposal at the Allied World Special
    Shareholder Meeting;
    if the Transatlantic stockholders fail to approve the adoption
    of the merger agreement proposal at the Transatlantic Special
    Shareholder Meeting; or
    if the merger is not consummated by January 31, 2012,
    subject to extension by mutual agreement of the parties,
    provided that no party may terminate the merger agreement if
    such partys breach of its obligations proximately
    contributed to the failure to close by the merger end date;  
    by the Allied World board of directors upon a breach of any
    covenant or agreement on the part of Transatlantic, or if any
    representation or warranty of Transatlantic fails to be true, in
    either case such that the conditions to Allied Worlds
    obligations to complete the merger would not then be satisfied
    and such failure is not reasonably capable of being cured or
    Transatlantic is not using its reasonable best efforts to cure
    such failure;
    by the Transatlantic board of directors upon a breach of any
    covenant or agreement on the part of Allied World, or if any
    representation or warranty of Allied World fails to be true, in
    either case such that the conditions to Transatlantics
    obligations to complete the merger would not then be satisfied
    and such failure is not reasonably capable of being cured or
    Allied World is not using its reasonable best efforts to cure
    such failure;
    by the Allied World board of directors if, prior to obtaining
    the approval of the Transatlantic stockholders, the
    Transatlantic board of directors makes an adverse recommendation
    change; or
    by the Transatlantic board of directors if, prior to obtaining
    the approval of the Allied World shareholders, the Allied World
    board of directors makes an adverse recommendation change. Expenses
    and Termination Fees; Liability for Breach     99




---



##### Table of Contents



out-of-pocket
    and/or
         100




---



##### Table of Contents



and/or
         Amendments,
    Extensions and Waivers   101




---



##### Table of Contents



No Third
    Party Beneficiaries   Specific
    Performance   102




---



##### Table of Contents



CAPITAL
    INCREASES  Kapitaleinlagen
  Kapitaleinalgen
      and/or
 103




---



##### Table of Contents



2 3
  The Allied World board of directors unanimously recommends a
    vote FOR the ordinary share capital increase,
    including the limitation of the pre-emptive rights of the Allied
    World shareholders and the proposed amendments to
    articles 5(a) and 6(a) of the Allied World Articles, as
    described above.
 104




---



##### Table of Contents



NYSE
    SHARE ISSUANCE      The Allied World board of directors unanimously recommends a
    vote FOR the proposal to issue the Allied World
    shares to Transatlantic stockholders pursuant to the merger and
    as contemplated by the merger agreement as required by NYSE
    rules.
 105




---



##### Table of Contents



AMENDED
    AND RESTATED ARTICLES OF ASSOCIATION OF ALLIED
    WORLD      The Allied World board of directors unanimously recommends a
    vote FOR the proposal to approve the amendment to
    the Allied World Articles to change Allied Worlds name to
    TransAllied Group Holdings, AG.
 106




---



##### Table of Contents



CAPITAL
    REDUCTION    General
    Explanation of the Dividend/Capital Reduction
          Agenda
    Item
     107




---



##### Table of Contents



108




---



##### Table of Contents



USD/CHF
                 109




---



##### Table of Contents



Artikel 3a

Aktienkapital

Article 3a

Share Capitala)

Das Aktienkapital der Gesellschaft beträgt CHF
    [ l ]
    */
    [ l ]
    ** und ist eingeteilt in
    [ l ]
    auf den Namen lautende Aktien im Nennwert von CHF
    [ l ]
    */
    [ l ]
    ** je Aktie. Das Aktienkapital ist vollständig
    liberiert.

a)

The share capital of the Company amounts to CHF
    [ l ]
    */
    [ l ]
    ** and is divided into
    [ l ]
    registered shares with a par value of CHF
    [ l ]
    */
    [ l ]
    ** per share. The share capital is fully paid-in.*

nach der ersten Teilnennwertherabsetzung gemäss Ziffer 3
    bis Ende Dezember 2011 mit konkreter Zahl aufgrund Anpassung
    gemäss Ziffer 4 und 5 und mit Statutendatum [Allied
    World Special Shareholder Meeting Date]

*

Upon completion of the first Partial Par Value Reduction until
    the end of December 2011 with specific numbers based on
    adjustments pursuant to paragraph 4 and 5 above and the Articles
    of Association being dated [Allied World Special Shareholder
    Meeting Date]**

nach der zweiten Teilnennwertherabsetzung gemäss Ziffer 3
    bis April 2012 mit konkreter Zahl aufgrund Anpassung gemäss
    Ziffer 4 und 5 und mit Statutendatum [Allied World Special
    Shareholder Meeting Date]

**

Upon completion of the second Partial Par Value Reduction until
    the end of [     ] with specific
    numbers based on adjustments pursuant to paragraph 4 and 5 above
    and the Articles of Association being dated [Allied World
    Special Shareholder Meeting Date]   Please note that the asterisks above also apply to
    Articles 3b, 4, 5, 5a and 6 below.
    Artikel 3b

Partizipationskapital

Article 3b

Participation Capitala)

Das Partizipationskapital der Gesellschaft beträgt CHF
    [ l ]
    */
    [ l ]
    ** und ist eingeteilt in
    [ l ]
    Partizipationsscheine lautend auf den Namen im Nennwert von CHF
    [ l ]
    */
    [ l ]
    ** je Partizipationsschein. Das Partizipationskapital ist
    vollständig liberiert.

a)

The participation capital of the Company amounts to CHF
    [ l ]
    */
    [ l ]
    ** and is divided into
    [ l ]
    registered participation certificates with a par value of CHF
    [ l ]
    */
    [ l ]
    ** / per participation certificate. The participation capital is
    fully paid-in.  110




---



##### Table of Contents



Bedingtes Aktienkapital



Conditional Share Capitalfür Anleihensobligationen und



for Bonds and Similar DebtArtikel 4

ähnliche Instrumente der Fremdfinanzierung

Article 4

Instrumentsa)

Das Aktienkapital der Gesellschaft wird im Maximalbetrag von
    CHF[ l ]*/[ l ]
    ** durch Ausgabe von höchstens 1,000,000 vollständig
    zu liberierenden Namenaktien mit einem Nennwert von CHF
    [ l ]
    */
    [ l ]
    ** je Aktie erhöht, bei und im Umfang der Ausübung von
    Wandel- und/oder Optionsrechten, welche im Zusammenhang mit von
    der Gesellschaft oder ihren Tochtergesellschaften emittierten
    oder noch zu emittierenden Anleihensobligationen, Notes oder
    ähnlichen Obligationen oder Schuldverpflichtungen
    eingeräumt wurden/werden, einschliesslich
    Wandelanleihen.

a)

The share capital of the Company shall be increased by an amount
    not exceeding
    CHF [ l ]
    */
    [ l ]
    ** through the issue of a maximum of 1,000,000 registered
    shares, payable in full, each with a par value of CHF
    [ l ]
    */
    [ l ]**
    through the exercise of conversion and/or option or warrant
    rights granted in connection with bonds, notes or similar
    instruments, issued or to be issued by the Company or by
    subsidiaries of the Company, including convertible debt
    instruments.   Bedingtes Aktienkapital für



Conditional Share CapitalArtikel 5

Mitarbeiterbeteiligungen

Article 5

for Employee Benefit Plansa)

Das Aktienkapital der Gesellschaft wird im Maximalbetrag von CHF
    [ l ]*/[ l ]**
    durch Ausgabe von höchstens
    [ l ]
    vollständig zu liberierenden Namenaktien mit einem Nennwert
    von CHF
    [ l ]*/[ l ]**
    je Aktie erhöht bei und im Umfang der Ausübung von
    Optionen, welche Mitarbeitern der Gesellschaft oder
    Tochtergesellschaften sowie Beratern, Direktoren oder anderen
    Personen, welche Dienstleistungen für die Gesellschaft oder
    ihre Tochtergesellschaften erbringen, eingeräumt
    wurden/werden.

a)

The share capital of the Company shall be increased by an amount
    not exceeding CHF
    [ l ]*/[ l ]**
    through the issue from time to time of a maximum of
    [ l ]
    registered shares, payable in full, each with a par value of CHF
    [ l ]*/[ l ]**,
    in connection with the exercise of option rights granted to any
    employee of the Company or a subsidiary, and any consultant,
    director or other person providing services to the Company or a
    subsidiary.   Bedingtes Kapital für



Conditional Capital forArtikel 5a

bestehende Aktionärsoptionen

Article 5a

Existing Shareholder Warrantsa)

Das Aktienkapital der Gesellschaft wird im Maximalbetrag von CHF
    [ l ]
    */
    [ l ]
    ** durch Ausgabe von höchstens 2,000,000 vollständig
    zu liberierenden Namenaktien mit einem Nennwert von CHF
    [ l ]*/[ l ]
    ** je Aktie erhöht bei und im Umfang der Ausübung von
    Optionen, welche American International Group, Inc.
    eingeräumt wurden.

a)

The share capital of the Company shall be increased by an amount
    not exceeding CHF
    [ l ]
    */
    [ l ]
    **, through the issue from time to time of a maximum of
    2,000,000 registered shares payable in full, each with a par
    value of CHF
    [ l ]
    */
    [ l ]
    **, in connection with the exercise of shareholder warrants
    granted to American International Group, Inc.   111




---



##### Table of Contents



Genehmigtes Kapital zu



Authorized Share CapitalArtikel 6

allgemeinen Zwecken

Article 6

for General Purposesa)

Der Verwaltungsrat ist ermächtigt, das Aktienkapital
    jederzeit bis (zwei Jahre nach dem Datum der
    Generalversammlung)im Maximalbetrag von CHF
    [ l ]
    */
    [ l ]
    ** durch Ausgabe von höchstens
    [ l ]
    vollständig zu liberierenden Namenaktien mit einem Nennwert
    von CHF
    [ l ]
    */
    [ l ]**
    je Aktie zu erhöhen.

a)

The Board of Directors is authorized to increase the share
    capital from time to time and at any time (two years after
    the Allied World Special Shareholder Meeting) by an amount
    not exceeding CHF
    [ l ]
    */
    [ l ]**
    through the issue of up to
    [ l ]
    fully paid up registered shares with a par value of CHF
    [ l ]
    */
    [ l ]
    ** each.   The Allied World board of directors unanimously recommends a
    vote FOR the proposal to increase the aggregate
    reduction amount, in connection with the previously-approved
    Allied World dividend, to allow for the payment of the dividend
    to all TransAllieds shareholders after the effective time
    of the merger.
 112




---



##### Table of Contents



ELECTION
    OF DIRECTORS    Name

Age

Class

PositionScott A. Carmilani


46



I


Director, President and Chief Executive OfficerRichard S. Press


71



I


Director and Non-Executive ChairmanMichael C. Sapnar


45



I


Director, President and Chief Executive Officer, Global
    Reinsurance          113




---



##### Table of Contents



The Allied World board of directors unanimously recommends a
    vote FOR the election of the named directors to hold
    office commencing upon the completion of the merger.
 114




---



##### Table of Contents



TRANSALLIED
    GROUP HOLDINGS, AG
    FOURTH AMENDED AND RESTATED 2004 STOCK INCENTIVE PLAN        
    Increase by 2,000,000 shares (from 2,000,000 to 4,000,000)
    the total number of registered shares that may be issued under
    the Current Plan;
    Extend the termination date from May 8, 2018
    to          ,
    2021, after which date no awards may be granted;
    Replace references to Allied World Assurance Company Holdings,
    AG with references to TransAllied Group Holdings, AG and
    references to Allied World registered shares with references to
    TransAllied Group Holdings, AG registered shares; and
    Permit the grant of performance-based awards that qualify as
    qualified performance-based compensation within the
    meaning of Section 162(m) of the Internal Revenue Code of
    1986, as amended (Section 162(m)).
    Section 162(m) generally disallows a tax deduction to
    public companies for compensation in excess of $1,000,000 paid
    to the chief executive officer and to certain other executive
    officers whose compensation is required to be reported to
    pursuant to the Exchange Act by reason of being among the four
    most highly paid executive officers. The Amended Plan is
    designed to qualify performance-based awards as qualified
    performance-based compensation to ensure that the tax
    deduction is available to the combined company and its
    subsidiaries.    Form 10-K Form 10-K
   115




---



##### Table of Contents



General
      Administration
    Awards;
    Adjustments
    Restricted Allied World Shares.
  Restricted Share Units.
  Dividend Equivalent Rights.
 116




---



##### Table of Contents



Performance Awards.
  Other Equity-Based Awards.
    Shares Subject
    to the Amended Plan
    Amendment
    and Termination
    Nonassignability;
    No Hedging
   117




---



##### Table of Contents



New Plan
    Benefits
    Allied
    World Equity Compensation Plan Information
    Number of SecuritiesNumber of Securities





Remaining Availableto be Issued


Weighted-Average


for Future IssuanceUpon Exercise of


Exercise Price of


Under Equity CompensationOutstanding Options,


Outstanding Options,


Plans (Excluding SecuritiesPlan Category

Warrants and Rights


Warrants and Rights


Reflected in the First Column)Equity compensation plans approved by Shareholders


2,123,817
(1)

$
38.77



3,196,202
(3)Equity compensation plans not approved by Shareholders


773,411
(2)






0
(4)Total


2,897,228


$
38.77



3,196,202     (1)
    
    Represents 1,272,739 stock options granted under Allied
    Worlds Third Amended and Restated 2001 Employee Stock
    Option Plan, which have a weighted average remaining contractual
    life of 6.8 years and 851,078 Allied World shares granted
    pursuant to restricted share units awarded under the Current
    Plan. The weighted average exercise price reported in column
    (b) does not take the restricted share units into account.(2)
    
    Represents 773,411 performance shares granted under Allied
    Worlds Third Amended and Restated Long-Term Incentive Plan
    (the LTIP). The LTIP provides for performance-based
    equity awards representing the right to receive a number of
    Allied World shares in the future, based upon the achievement of
    established performance criteria during the applicable
    three-year performance period. The performance-based equity
    awards granted under the LTIP do not have an exercise price.(3)
    
    Represents 1,810,557 Allied World shares available for future
    grants in the form of options under Allied Worlds Third
    Amended and Restated 2001 Employee Stock Option Plan, 443,644
    Allied World shares available for future grants in the form of
    restricted share units under the Current Plan and 942,001 Allied
    World shares available for future purchases under Allied
    Worlds Amended and Restated 2008 Employee Share Purchase
    Plan.(4)
    
    As of December 31, 2010, there were no Allied World shares
    remaining for issuance under the LTIP. For more information
    about the LTIP, please see Note 12 to Allied Worlds
    Consolidated Financial Statements included in Allied
    Worlds Annual Report on
    Form 10-K
    for the fiscal year ended December 31, 2010.  Allied
    World and Transatlantic Equity Compensation Plan
    Information
     118




---



##### Table of Contents



Number of SecuritiesNumber of Securities





Remaining Availableto be Issued


Weighted-Average


for Future IssuanceUpon Exercise of


Exercise Price of


Under Equity CompensationOutstanding Options,


Outstanding Options,


Plans (Excluding SecuritiesPlan Category

Warrants and Rights


Warrants and Rights


Reflected in the First Column)Equity compensation plans approved by Allied World Shareholders



(1)

$





(3)Equity compensation plans not approved by Allied World
    Shareholders



(2)

$





(4)Total





$     (1)
    
    Represents          
    stock options granted under Allied Worlds Third Amended
    and Restated 2001 Employee Stock Option Plan, which have a
    weighted average remaining contractual life
    of      years
    and        Allied World
    shares granted pursuant to restricted share units awarded under
    Allied Worlds Current Plan. The weighted average exercise
    price reported in column (b) does not take the restricted
    share units into account.(2)
    
    Represents          
    performance shares granted under the
    LTIP,          
    stock options granted under the Transatlantic Holdings, Inc.
    2000 Stock Option Plan, which have a weighted average remaining
    contractual life of      years,
    and          
    service and performance restricted stock units
    (including          
    vested but unissued restricted stock units) granted under the
    Transatlantic Holdings, Inc. 2003 Stock Incentive Plan,
    Transatlantic Holdings, Inc. 2008 Non-Employee Directors
    Stock Plan, and the Transatlantic Holdings, Inc. 2009 Long Term
    Equity Incentive Plan. Transatlantics 2000 Stock Option
    Plan, 2003 Stock Incentive Plan, 2008 Non-Employee
    Directors Stock Plan, and 2009 Long Term Equity Incentive
    Plan were previously approved by Transatlantics
    shareholders, and future grants under these plans will only be
    made to persons who were employees of Transatlantic prior to the
    merger. The LTIP provides for performance-based equity awards
    representing the right to receive a number of Allied World
    shares in the future, based upon the achievement of established
    performance criteria during the applicable three-year
    performance period. The weighted average exercise price reported
    in column (b) does not take the performance-based equity
    awards granted under the LTIP, the Transatlantic service
    restricted stock units, or the Transatlantic performance
    restricted stock units into account.(3)
    
    Represents          
    registered shares available for future grants in the form of
    options under Allied Worlds Third Amended and Restated
    2001 Employee Stock Option
    Plan,          
    Allied World shares available for future grants in the form of
    restricted share units under the Current Plan
    and        Allied World
    shares available for future purchases under Allied Worlds
    Amended and Restated 2008 Employee Share Purchase Plan.(4)
    
    Represents           shares
    available for future grants in the form of stock options, stock
    appreciation rights, restricted stock, restricted stock units,
    performance awards and share awards under the Transatlantic
    Holdings, Inc. 2009 Long Term Equity Incentive
    Plan,           shares
    available for future grants in the form of equity-based or
    equity-related awards granted to non-employee directors under
    the Transatlantic Holdings, Inc. 2008 Non-Employee
    Directors Stock
    Plan,           shares
    available for future purchases under the Transatlantic Holdings,
    Inc. 1990 Employee Stock Purchase Plan, as amended (to which
    there
    were           shares
    subject to purchase as of July 15, 2011),
    and           shares
    available for future purchases under the Transatlantic Holdings,
    Inc. 2010 U.K. Sharesave Plan (to which there
    were           shares
    subject to purchase as of July 15, 2011). As of
    July 15, 2011, there were no registered shares remaining
    for issuance under the LTIP. Transatlantics 1990 Employee
    Stock Purchase Plan and 2010 U.K. Sharesave Plan were previously
    approved by Transatlantics shareholders, and future grants
    under these plans will only be made to persons who were
    employees of Transatlantic prior to the merger. For more
    information about the LTIP, please see Note 12 to Allied
    Worlds Consolidated Financial 119




---



##### Table of Contents



Statements included in Allied Worlds Annual Report on
    Form 10-K
    for the fiscal year ended December 31, 2010.    The Allied World board of directors unanimously recommends a
    vote FOR the proposal to approve the adoption of the
    Amended Plan effective upon completion of the merger.
 120




---



##### Table of Contents



MATERIAL
    U.S. FEDERAL INCOME TAX CONSEQUENCES    
    banks, insurance companies or other financial institutions;
    broker-dealers;
    traders;
    certain U.S. expatriates;
    tax-exempt organizations;
    pass-through entities and persons that are investors in a
    pass-through entity;
    persons that are subject to alternative minimum tax;
    persons that hold their shares of common stock as a position in
    a straddle or as part of a hedging or
    conversion transaction;
    persons deemed to sell their shares of Transatlantic common
    stock under the constructive sale provisions of the Code;
    persons that have a functional currency other than the
    U.S. dollar; or
    persons that acquired their shares of Transatlantic common stock
    upon the exercise of stock options or otherwise as compensation.          
    an individual that is a citizen or resident of the United States;
    a corporation or an entity treated as a corporation created or
    organized in, or under the laws of, the United States, any state
    thereof or the District of Columbia; 121




---



##### Table of Contents




    an estate, the income of which is subject to U.S. federal
    income taxation regardless of its source; or
    a trust (i) the administration over which a United States
    court can exercise primary supervision and the substantial
    decisions of which one or more United States persons have the
    authority to control or (ii) that has a valid election in
    effect to be treated as a United States person.  Consequences
    of the Merger
      Backup
    Withholding
  Form W-9 non-U.S. status Form W-8 Form W-8BEN)
   122




---



##### Table of Contents



ACCOUNTING
    TREATMENT   123




---



##### Table of Contents



UNAUDITED
    PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION    
    The accompanying notes to the pro forma financial statements;
    Transatlantics and Allied Worlds separate unaudited
    historical condensed consolidated financial statements and notes
    as of and for the three months ended March 31, 2011
    included in their respective March 31, 2011 Quarterly
    Reports on
    Form 10-Q; and
    Transatlantics and Allied Worlds separate audited
    historical consolidated financial statements and notes as of and
    for the year ended December 31, 2010 included in their
    respective 2010 Annual Reports on
    Form 10-K.     124




---



##### Table of Contents



Pro Forma
    Condensed Consolidated Balance SheetAs of March 31, 2011  Historical


Pro FormaTransatlantic


Allied World


Adjustments


Pro Forma


Notes(In thousands of U.S. dollars)(Unaudited)ASSETSInvestments:Fixed maturities:Held to maturity, at amortized cost

$
1,188,705


$



$



$
1,188,705Available for sale, at fair value


10,893,804



543,808







11,437,612Trading, at fair value






5,960,830







5,960,830Equities:Available for sale, at fair value


600,113











600,113Trading, at fair value






271,057







271,057Other investments, trading, at fair value






469,999







469,999Other invested assets


256,193











256,193Short-term investments, at cost (approximates fair value)


213,235











213,235Total investments


13,152,050



7,245,694







20,397,744Cash and cash equivalents


331,307



693,980



(13,765
)


1,011,522



2
(a)Restricted cash






52,022







52,022Accrued investment income


147,838



41,328







189,166Premium balances receivable, net


784,260



569,836



(2,427
)


1,351,669



2
(b)Reinsurance recoverable on paid and unpaid losses and loss
    adjustment expenses


882,007



975,523



(66,363
)


1,791,167



2
(c)Deferred policy acquisition costs


268,484



113,097



(113,097
)


268,484



2
(d)Goodwill






268,376



(268,376
)






2
(e)Prepaid reinsurance premiums


81,800



175,348



(8,926
)


248,222



2
(f)Balances receivable on sale of investments






363,151







363,151Deferred tax assets, net


460,134



20,618



12,674



493,426



2
(g)Intangible assets






56,109



220,602



276,711



2
(h)Other assets


227,502



93,697



9,281



330,480



2
(i)Total assets

$
16,335,382


$
10,668,779


$
(230,397
)

$
26,773,764LIABILITIES AND SHAREHOLDERS EQUITYUnpaid losses and loss adjustment expenses

$
9,773,978


$
5,100,643


$
(66,363
)

$
14,808,258



2
(j)Unearned premiums


1,321,276



1,096,260



(8,926
)


2,408,610



2
(k)Balances payable on sale of investments






567,918







567,918Senior notes


1,005,683



797,761



58,446



1,861,890



2
(l)Reinsurance balances payable


89,740



91,852



(2,427
)


179,165



2
(m)Other liabilities


103,332



63,392



36,400



203,124



2
(n)Total liabilities


12,294,009



7,717,826



17,130



20,028,965Common stock


67,838



600,055



829,367



1,497,260



2
(o)Additional paid-in capital


317,731



75,166



604,596



997,493



2
(p)Treasury stock, at cost


(244,722
)


(127,053
)


244,722



(127,053
)


2
(q)Retained earnings


3,785,736



2,369,822



(1,893,249
)


4,262,309



2
(r)Accumulated other comprehensive income


114,790



32,963



(32,963
)


114,790



2
(s)Total shareholders equity


4,041,373



2,950,953



(247,527
)


6,744,799Total liabilities and shareholders equity

$
16,335,382


$
10,668,779


$
(230,397
)

$
26,773,764  125




---



##### Table of Contents



Pro Forma
    Condensed Consolidated Statement of OperationsFor the Three Months Ended March 31,
    2011 Historical


Pro FormaTransatlantic


Allied World


Adjustments


Pro Forma


Notes(In thousands of U.S. dollars, except shares outstanding and
    per share data)(Unaudited)Revenues:Net premiums written

$
1,043,824


$
480,871


$



$
1,524,695Increase in net unearned premiums


(86,995
)


(145,995
)






(232,990
)Net premiums earned


956,829



334,876







1,291,705Net investment income


106,840



50,208



(1,281
)


155,767



2
(t)Realized net capital gains:Total
    other-than-temporary
    impairments


(1,500
)










(1,500
)Less: Total
    other-than-temporary
    impairments recognized in other comprehensive income (loss)














Other-than-temporary
    impairments charged to earnings


(1,500
)










(1,500
)Other realized net capital gains


56,912



50,818







107,730Total realized net capital gains


55,412



50,818







106,230Loss on early extinguishment of debt


(1,179
)










(1,179
)Total revenues


1,117,902



435,902



(1,281
)


1,552,523Expenses:Net losses and loss adjustment expenses


1,169,052



304,452







1,473,504Acquisition costs


208,841



38,082







246,923Other underwriting expenses


36,725



67,956



(1,152
)


103,529



2
(u)Interest on senior notes


16,894



13,742



(2,541
)


28,095



2
(v)Other expenses, net


7,152



767



685



8,604



2
(w)Total expenses


1,438,664



424,999



(3,008
)


1,860,655(Loss) income before income taxes


(320,762
)


10,903



1,727



(308,132
)Income taxes (benefits)


(130,610
)


2,283







(128,327
)Net (loss) income

$
(190,152
)

$
8,620


$
1,727


$
(179,805
)Net (loss) income per common share:Basic

$
(3.05
)

$
0.23



n/m


$
(1.93
)Diluted


(3.05
)


0.21



n/m



(1.93
)Dividends per common share


0.21







n/m



Weighted average common shares outstanding:Basic


62,364,635



38,199,867



n/m



93,213,924Diluted


62,364,635



40,383,523



n/m



93,213,924



3    126




---



##### Table of Contents



Pro Forma
    Condensed Consolidated Statement of OperationsFor the Twleve Months Ended December 31,
    2010 Historical


Pro FormaTransatlantic


Allied World


Adjustments


Pro Forma


Notes(In thousands of U.S. dollars, except shares outstanding and
    per share data)(Unaudited)Revenues:Net premiums written

$
3,881,693


$
1,392,455


$



$
5,274,148Increase in net unearned premiums


(23,073
)


(32,907
)






(55,980
)Net premiums earned


3,858,620



1,359,548







5,218,168Net investment income


473,547



244,143



(5,125
)


712,565



2
(t)Realized net capital gains:Total
    other-than-temporary
    impairments


(14,685
)


(168
)






(14,853
)Less: Total
    other-than-temporary
    impairments recognized in other comprehensive income (loss)


6,713











6,713Other-than-temporary
    impairments charged to earnings


(7,972
)


(168
)






(8,140
)Other realized net capital gains


38,073



285,168







323,241Total realized net capital gains


30,101



285,000







315,101Loss on early extinguishment of debt


(115
)










(115
)Total revenues


4,362,153



1,888,691



(5,125
)


6,245,719Expenses:Net losses and loss adjustment expenses


2,681,774



707,883







3,389,657Acquisition costs


929,922



159,489







1,089,411Other underwriting expenses


177,624



286,557



3,543



467,724



2
(u)Interest on senior notes


68,272



40,242



(8,867
)


99,647



2
(v)Other expenses, net


31,773



2,570



111,949



146,292



2
(w)Total expenses


3,889,365



1,196,741



106,625



5,192,731Income before income taxes


472,788



691,950



(111,750
)


1,052,988Income taxes


70,587



26,945







97,532Net income

$
402,201


$
665,005


$
(111,750
)

$
955,456Net income per common share:Basic

$
6.28


$
14.30



n/m


$
9.27Diluted


6.19



13.32



n/m



8.93Dividends per common share


0.83



1.05



n/m



1.05Weighted average common shares outstanding:Basic


64,091,749



46,491,279



n/m



103,025,196Diluted


64,930,185



49,913,317



n/m



107,045,083    127




---



##### Table of Contents



Notes to
    the Pro Forma Condensed
    Consolidated Financial Information
    (Unaudited)
  Note 1 
    Pro Forma
    Basis of Presentation          and/or
  Note 2 
    Pro Forma
    Adjustments     128




---



##### Table of Contents



Notes to
    the Pro Forma Condensed
    Consolidated Financial Information 
    (Continued)
      Increase(Decrease)as ofPro Forma Condensed Consolidated Balance Sheet Adjustments

March 31, 2011Assets:(a)

Adjustments to cash and cash equivalents:1.  Recording of estimated transaction costs paid by
    Transatlantic resulting from the merger

$
(8,335
)2.  Recording of estimated transaction costs paid by
    Allied World resulting from the merger


(3,225
)3.  Recording the costs of Allied Worlds
    purchase, pursuant to the merger agreement, of
    45,000 shares of Transatlantic common stock in connection
    with the merger


(2,205
)Total adjustments to
    cash and cash equivalents


(13,765
)(b)

Settlement of pre-existing relationship between Transatlantic
    and Allied World


(2,427
)(c)

Settlement of pre-existing relationship between Transatlantic
    and Allied World


(66,363
)(d)

Adjustment of Allied Worlds deferred acquisition costs to
    their estimated fair value


(113,097
)(e)

Elimination of Allied Worlds carried goodwill


(268,376
)(f)

Settlement of pre-existing relationship between Transatlantic
    and Allied World


(8,926
)(g)

Adjustment of deferred tax assets, net, related to pro forma
    adjustments


12,674(h)

Adjustments to intangible assets:1.  Elimination of Allied Worlds intangible
    assets


(56,109
)2.  Intangible asset resulting from the adjustment for
    the difference between the estimated fair value and the
    historical carrying value of Allied Worlds unpaid losses
    and loss adjustment expenses net of related reinsurance
    recoverable (net loss reserves). The estimated fair
    value consists of the present value of the net loss reserves
    plus a risk premium.


(63,289
)3.  Intangible asset resulting from the adjustment of
    unearned premiums to the estimated fair value of profit within
    Allied Worlds unearned premiums, adjusted for a risk factor


250,0004.  Addition of the estimated fair value of
    identifiable intangible assets resulting from the merger. This
    amount consists primarily of renewal rights and customer
    relationships, with the balance comprised of internally
    developed software, licenses and trademarks.


90,000Total adjustments to
    intangible assets


220,602 129




---



##### Table of Contents



Notes to
    the Pro Forma Condensed
    Consolidated Financial Information 
    (Continued)
  Increase(Decrease)as ofPro Forma Condensed Consolidated Balance Sheet Adjustments

March 31, 2011(i)

Adjustments to other assets:1.  Elimination of deferred debt issuance costs of
    Allied Worlds senior notes


(5,411
)2.  Adjustment to record the current income tax
    recoverable on pro forma adjustments


14,692Total adjustments to
    other assets


9,281Total
    adjustments to assets

$
(230,397
)Liabilities:(j)

Settlement of pre-existing relationship between Transatlantic
    and Allied World

$
(66,363
)(k)

Settlement of pre-existing relationship between Transatlantic
    and Allied World


(8,926
)(l)

Adjustment of Allied Worlds senior notes to their
    estimated fair value


58,446(m)

Settlement of pre-existing relationship between Transatlantic
    and Allied World


(2,427
)(n)

Adjustments to other liabilities:1.  Recording of estimated transaction costs payable
    by Transatlantic resulting from the merger


21,9002.  Recording of estimated transaction costs payable
    by Allied World resulting from the merger


14,500Total adjustments to
    other liabilities


36,400Total
    adjustments to liabilities


17,130Shareholders equity:(o)

Adjustments to common stock:1.  Adjustment to reflect the elimination of
    Transatlantic common stock


(67,838
)2.  Adjustment to reflect the issuance of Allied World
    common shares


897,205Total adjustments to
    common stock


829,367(p)

Adjustment to additional paid-in capital


604,596(q)

Adjustment to eliminate Transatlantics treasury stock


244,722(r)

Adjustments to retained earnings:1.  Adjustment to reflect the elimination of Allied
    Worlds retained earnings


(2,369,822
)2.  Adjustment to record Transatlantics
    estimated transaction costs resulting from the merger, net of tax


(19,653
)3.  Adjustment to record gain on bargain purchase


496,226Total adjustments to
    retained earnings


(1,893,249
)(s)

Adjustment to eliminate Allied Worlds accumulated other
    comprehensive income


(32,963
)Total
    adjustments to shareholders equity


(247,527
)Total
    adjustments to liabilities and shareholders equity

$
(230,397
)   130




---



##### Table of Contents



Notes to
    the Pro Forma Condensed
    Consolidated Financial Information 
    (Continued)
  Increase (Decrease) for the:Three Months Ended


Year EndedPro Forma Condensed Consolidated Statement of Operations
    Adjustments

March 31, 2011


December 31, 2010(t)

Adjustment to amortization expense on Allied Worlds fixed
    maturities available for sale resulting from the adjustment of
    amortized cost to the acquisition date fair value

$
(1,281
)

$
(5,125
)Total
    adjustments to revenues


(1,281
)


(5,125
)(u)

Adjustment to reflect the change in stock-based compensation
    expense related to the change in fair value and modifications to
    Allied Worlds stock based compensation resulting from the
    merger


(1,152
)


3,543(v)

Net reduction of interest on senior notes related to the
    amortization of the fair value adjustment on Allied Worlds
    senior notes


(2,541
)


(8,867
)(w)

Adjustments to other expenses, net:1.  Amortization of intangible asset from the
    adjustment of Allied Worlds unpaid losses and loss
    adjustment expenses for the difference between the estimated
    fair value and historical carrying value


(2,288
)


(18,343
)2.  Amortization of intangible asset resulting from
    the adjustment of Allied Worlds unearned premiums to fair
    value


2,261



127,8583.  Change in amortization of all other intangible
    assets


712



2,434Total adjustments to other
    expenses, net


685



111,949Total
    adjustments to expenses


(3,008
)


106,625Total
    adjustments to net income

$
1,727


$
(111,750
)         131




---



##### Table of Contents



Notes to
    the Pro Forma Condensed
    Consolidated Financial Information 
    (Continued)
  Calculation of Preliminary Estimated Purchase PriceShares of Transatlantic common stock outstanding as of
    March 31, 2011 (in millions)


62.5Shares of Transatlantic common stock purchased by Allied World
    pursuant to the merger agreement (in millions)


(0.1
)Adjusted Transatlantic common stock outstanding as of
    March 31, 2011 (in millions)


62.4Exchange ratio


0.88Exchange ratio adjusted Transatlantic (in millions)


54.9Allied World common shares outstanding as of March 31, 2011
    (in millions)


37.9Allied World stock-based compensation vesting at closing of the
    merger (in millions)


0.2Adjusted Allied World shares outstanding at March 31, 2011
    (in millions)


38.1Pro forma common shares outstanding (in millions)


93.0Adjusted Allied World common shares outstanding as of
    March 31, 2011 (in millions)


38.1Divided by the exchange ratio


0.88Multiplied by Transatlantics closing stock price on
    June 30, 2011

$
49.01Estimated purchase price before adjustments for the fair value
    of 45,000 shares of Transatlantic common stock purchased by
    Allied World pursuant to the merger agreement and stock-based
    compensation (in millions of U.S. dollars)

$
2,120.4Estimated fair value of 45,000 shares of Transatlantic
    common stock purchased by Allied World pursuant to the merger
    agreement (in millions of U.S dollars)


(2.2
)Estimated portion of the fair value of Allied World stock-based
    compensation outstanding as of March 31, 2011 attributable
    to pre-merger service (in millions of U.S dollars)


108.7Estimated purchase price (in millions of U.S. dollars)

$
2,226.9  132




---



##### Table of Contents



Notes to
    the Pro Forma Condensed
    Consolidated Financial Information 
    (Continued)
    Allied World shareholders equity at March 31, 2011

$
2,951.0Less estimated fair value of 45,000 shares of Transatlantic
    common stock purchased by Allied World pursuant to the merger
    agreement


(2.2
)Net book value of net assets acquired prior to fair value
    adjustments


2,948.8Preliminary adjustments for fair value:Reduction of Allied Worlds deferred acquisition costs to
    fair value


(113.1
)Reduction of Allied Worlds goodwill to fair value


(268.4
)Increase in Allied Worlds deferred tax assets, net, to
    fair value


12.7Reduction in intangible assets for the fair value of Allied
    Worlds unpaid losses and loss adjustment expenses


(63.3
)Increase in intangible assets for the fair value of Allied
    Worlds unearned premiums


250.0Increase in other intangible assets to fair value


33.9Reduction of Allied Worlds deferred debt issuance costs to
    fair value


(5.4
)Increase of Allied Worlds senior notes to fair value


(58.5
)Adjustment to record estimated transaction costs incurred by
    Allied World from the merger


(17.7
)Increase in other assets for income taxes recoverable related to
    pro forma adjustments


4.1Fair value of net assets acquired


2,723.1Estimated purchase price


2,226.9Gain on bargain purchase

$
(496.2
)        133




---



##### Table of Contents



Notes to
    the Pro Forma Condensed
    Consolidated Financial Information 
    (Continued)
  Note 3 
    Net
    (Loss) Income per Common Share      Three Months EndedMarch 31, 2011Basic


DilutedPro forma net loss (in thousands of U.S. dollars)

$
(179,805
)

$
(179,805
)Weighted average common shares outstanding (in thousands):Historical Transatlantic


62,365



62,365Adjustment for shares of Transatlantic common stock purchased by
    Allied World pursuant to the merger agreement


(45
)


(45
)Adjusted Transatlantic weighted average common shares outstanding


62,320



62,320Exchange ratio


0.88



0.88Exchange ratio adjusted Transatlantic


54,841



54,841Historical Allied World


38,200



40,384Adjustment for anti-dilutive shares(1)






(2,184
)Allied World stock-based compensation vesting at closing of the
    merger


173



173Pro forma(2)


93,214



93,214Pro forma net loss per common share (in U.S. dollars)

$
(1.93
)

$
(1.93
)     (1)
    
    Due to the pro forma net loss, the potential shares included in
    historical Allied World are excluded from the pro forma net loss
    per share calculation.(2)
    
    If there was pro forma net income for the three months ended
    March 31, 2011, weighted average diluted shares outstanding
    would have been 96,067. 134




---



##### Table of Contents



Notes to
    the Pro Forma Condensed
    Consolidated Financial Information 
    (Continued)
     Year EndedDecember 31, 2010Basic


DilutedPro forma net income (in thousands of U.S. dollars)

$
955,456


$
955,456Weighted average common shares outstanding (in thousands):Historical Transatlantic


64,092



64,930Adjustment for shares of Transatlantic common stock purchased by
    Allied World pursuant to the merger agreement


(45
)


(45
)Adjusted Transatlantic weighted average common shares outstanding


64,047



64,885Exchange ratio


0.88



0.88Exchange ratio adjusted Transatlantic


56,361



57,099Historical Allied World


46,491



49,913Allied World stock-based compensation vesting at closing of the
    merger


173



33Pro forma


103,025



107,045Pro forma net income per common share (in U.S. dollars)

$
9.27


$
8.93   Note 4 
    Debt    As of March 31, 2011Historical


HistoricalTransatlantic


Allied World


Pro Forma(In millions of U.S. Dollars)5.75% Debt due December 14, 2015

$
665.3


$



$
665.38.00% Debt due November 30, 2039


340.4







340.47.50% Debt due August 1, 2016






499.1



558.65.50% Debt due November 1, 2020






298.7



297.6$
1,005.7


$
797.8


$
1,861.9  135




---



##### Table of Contents



Notes to
    the Pro Forma Condensed
    Consolidated Financial Information 
    (Continued)
  Note 5 
    Book
    Value per Common Share    As of March 31, 2011HistoricalTransatlantic


Allied World


Pro FormaShareholders equity (in thousands of U.S. dollars)

$
4,041,373


$
2,950,953


$
6,744,799Common shares outstanding (in thousands):Historical Transatlantic


62,476







62,476Adjustment for shares of Transatlantic common stock purchased by
    Allied World pursuant to the merger agreement










(45
)Adjusted Transatlantic common stock outstanding










62,431Exchange ratio










0.88Exchange ratio adjusted Transatlantic










54,939Historical Allied World






37,900



37,900Allied World stock-based compensation vesting at closing of the
    merger










172Pro forma










93,011Book value per common share (in U.S. dollars)

$
64.69


$
77.86


$
72.52  136




---



##### Table of Contents



COMPARATIVE
    STOCK PRICE DATA AND DIVIDENDS  Stock
    Prices
    
    June 10, 2011, the last full trading day prior to the
    public announcement of the merger, and
    ,
    2011, the last trading day for which this information could be
    calculated prior to the filing of this joint proxy
    statement/prospectus.  TransatlanticTransatlantic


Equivalent PerAllied World shares


Common Stock


Share(1)June 10, 2011

$
58.07


$
44.01


$
51.10,
    2011

$



$



$     (1)
    
    The equivalent per share data for Transatlantic common stock has
    been determined by multiplying the market price of one Allied
    World share on each of the dates by the exchange ratio of 0.88.    Transatlantic


Allied WorldCalendar Period

High


Low


High


LowYear ended December 31, 2008First Quarter

$
73.76


$
62.06


$
50.24


$
38.29Second Quarter

$
69.62


$
56.47


$
46.82


$
39.08Third Quarter

$
66.95


$
51.90


$
42.93


$
34.67Fourth Quarter

$
57.25


$
30.17


$
40.60


$
21.00Year ended December 31, 2009First Quarter

$
40.52


$
26.16


$
42.68


$
32.23Second Quarter

$
46.83


$
34.92


$
41.32


$
35.43Third Quarter

$
51.36


$
41.48


$
49.76


$
39.93Fourth Quarter

$
56.42


$
49.01


$
49.31


$
44.32Year ended December 31, 2010First Quarter

$
54.25


$
46.67


$
47.05


$
43.77Second Quarter

$
53.39


$
44.08


$
47.96


$
40.60Third Quarter

$
51.50


$
46.05


$
57.25


$
44.42Fourth Quarter

$
54.08


$
49.68


$
61.24


$
54.53Year ending December 31, 2011First Quarter

$
52.68


$
46.17


$
63.95


$
57.67Second Quarter

$
51.23


$
43.85


$
65.70


$
53.70Third Quarter
    (through          ,
    2011)

$



$



$



$  137




---



##### Table of Contents



DESCRIPTION
    OF ALLIED WORLD SHARE CAPITAL   Authorized
    Share Capital  Namenaktien Namenaktien
  and/or
 Other
    Classes or Series of Shares  (Vorzugsaktien) (Vorzugsaktien) 2 3
 Voting
    Rights   138




---



##### Table of Contents



non-U.S. persons,
  Aktienregister
    Supermajority
    Voting
  and/or 2 3
  
    a change of the purpose of Allied World;
    the creation of shares with privileged voting rights;
    the restriction on the transferability of voting shares or
    non-voting shares;
    an increase of capital, authorized or subject to a condition;
    an increase of capital out of equity against contributions in
    kind, or for the purpose of acquisition of assets and the
    granting of special benefits;
    the limitation or withdrawal of preemptive rights;
    a change in the domicile of Allied World;
    the liquidation of Allied World;
    the alleviating or withdrawal of restrictions upon the transfer
    of Allied World shares or Allied World non-voting shares;
    the conversion of voting shares into bearer shares and vice
    versa as well as the conversion of Allied World non-voting
    shares into Allied World shares;
    the dismissal of any member of the Allied World board of
    directors according to Article 705, paragraph 1 of the
    Swiss Code; and
    any alteration or amendment of articles 8, 14, 15 or 16 of
    the Allied World Articles, which relate to the voting rights of
    shareholders of Allied World.   139




---



##### Table of Contents



2 3
 Compulsory
    Acquisitions; Appraisal Rights  2 3
  
    a legal entity may divide all of its assets and transfer such
    assets to other legal entities, with the shareholders of the
    transferring entity receiving equity securities in the acquiring
    entities and the transferring entity dissolving upon
    deregistration in the commercial register; or
    a legal entity may transfer all or a portion of its assets to
    other legal entities, with the shareholders of the transferring
    entity receiving equity securities in the acquiring entities (in
    addition to the current shareholdings).    2 3
    
    the company sells a core part of its business, without which it
    is economically impracticable or unreasonable to continue to
    operate the remaining business;
    the companys assets, after the divestment, are not
    invested in accordance with the companys statutory
    business purpose; and
    the proceeds of the divestment are not earmarked for
    reinvestment in accordance with the companys business
    purpose but, instead, are intended for distribution to
    shareholders or for financial investments unrelated to the
    companys business.   140




---



##### Table of Contents



Quorum   Dividends
    and Other Payments to Shareholders           141




---



##### Table of Contents



Preemptive
    Rights and Advance Subscription Rights  2 3
    Rights
    with Respect to Authorized Share Capital
    
    mergers, acquisitions of enterprises or participations,
    financing
    and/or
    refinancing of such mergers and acquisitions and other
    investment projects (including by way of private placements);
    improving the regulatory capital position of Allied World or its
    subsidiaries (including by way of private placements);
    broadening the shareholder constituency;
    the participation of employees; or
    exchanging Allied World non-voting shares as well as a buy-back
    of Allied World non-voting shares in exchange for Allied World
    shares out of authorized share capital.  Rights
    with Respect to Conditional Share Capital
   142




---



##### Table of Contents




    the instruments have to be placed at market conditions;
    the exercise period is not to exceed ten years from the date of
    issue for warrants and twenty years for conversion
    rights; and
    the conversion or exercise price for the new shares is to be set
    at least in line with the market conditions prevailing at the
    date on which the instruments are issued. Preemptive rights are
    excluded with respect to the conditional share capital created
    for a shareholder warrant previously granted to AIG at the time
    of Allied Worlds formation.   Participation
    Certificates      and/or
  
    right to orientation on the invitation to shareholders meetings;
    similar to shareholders, rights to request access or information
    on corporate matters;
    right to make a motion to appoint a special commissioner;
    right to be informed about the resolutions of the shareholders
    meetings; and
    right to initiate certain legal proceedings (e.g., challenge of
    shareholders resolutions and (limited rights under Swiss law)
    board resolutions, dissolution of the company, appointment of
    special commissioner and directors liability law suits).    one-for-one
 143




---



##### Table of Contents



New
    Shares  Kapitalreserven
  Globalurkunde Verwahrungsstelle Bucheffekten
 Antitakeover
    Provisions    2 3
       144




---



##### Table of Contents



Liquidation
    Rights  paid-up
 No
    Redemption; Repurchase   Stock
    Exchange Listing   No
    Sinking Fund   Transfer;
    Transfer Agent   145




---



##### Table of Contents



COMPARISON
    OF RIGHTS OF TRANSALLIED SHAREHOLDERS AND
    TRANSATLANTIC STOCKHOLDERS          TransAllied Group Holdings, AG

TransatlanticAuthorized Capital Shares

The authorized share capital of TransAllied will consist
    of          common
    shares with a nominal value of CHF 15.00 (as may be adjusted in
    connection with the payment of dividends by virtue of a par
    value reduction as approved by the shareholders) per share and
    the conditional share capital will continue to consist of a
    total
    of          common
    shares with a nominal value of CHF 15.00 per share. The
    participation capital of TransAllied amounts to CHF 3,035,100
    and is divided into 202,340 registered participation
    certificates with a par value of CHF 15.00 per participation
    certificate (as may be adjusted in connection with the payment
    of dividends by virtue of a par value reduction as approved by
    the shareholders).

The aggregated number of shares which Transatlantic is
    authorized to issue is 210,000,000, consisting of (i)
    10,000,000 shares of preferred stock, par value $1.00 per
    share, and (ii) 200,000,000 shares of common stock, par
    value $1.00 per share. As
    of          ,
    2011, the Transatlantic record date, Transatlantic had issued
    and
    outstanding          shares
    of common stock and no shares of preferred stock.Pursuant to Swiss law, dividend payments out of earnings and
    similar payments are subject to Swiss withholding tax. Dividend
    payments in the form of a return of 146




---



##### Table of Contents



TransAllied Group Holdings, AG

Transatlanticcapital by reducing the par value of the underlying shares are
    not subject to Swiss withholding tax.Voting Rights

Under the TransAllied Articles, each holder of a common share
    shall be entitled to one vote for each common share registered
    in his or her name in the TransAllied share register
    (Aktienregister).  Participation certificates are not
    entitled to any votes. Controlled Shares voting
    rights will be limited, in the aggregate, to a voting power of
    approximately 10% pursuant to a formula specified in the
    TransAllied Articles. Controlled Shares are defined generally to
    include all shares of TransAllied directly, indirectly or
    constructively owned or beneficially owned by any person or
    group of persons.

Under the Transatlantic charter, each holder of common stock
    shall be entitled to one vote for each share of common stock
    standing in his or her name on the stock transfer books of
    Transatlantic. Except as otherwise provided in the rights,
    powers or preferences in any class or series of preferred stock
    of Transatlantic, all voting rights of Transatlantic shall be
    vested in the common stock.Supermajority Voting

The Swiss Code and the TransAllied Articles require the
    affirmative vote of at least two-thirds of the voting rights and
    a majority of the par value of TransAllied shares, each as
    represented at a general meeting, to approve the following
    matters:
     
        a change in TransAllieds purpose;
    
       the creation of shares with privileged
    voting rights;
    
       the restriction on transferability of
    TransAllied shares or TransAllied non-voting shares;
    
       an increase of capital, authorized or
    subject to a condition;
    
       an increase in the share capital out of
    equity through a contribution in kind or for an acquisition of
    assets, or a grant of special benefits;
    
       the limitation or withdrawal of
    preemptive rights;
    
       the alleviating or withdrawal of

Under the Transatlantic by-laws, the affirmative vote of the
    holders of a majority of the outstanding shares of Transatlantic
    stock is all that is required for certain transactions that by
    applicable law must be submitted to shareholders for their
    approval, such as, a merger, the sale of substantially all of
    Transatlantics assets, an amendment to the Transatlantic
    charter or a proposal to dissolve Transatlantic. 147




---



##### Table of Contents



TransAllied Group Holdings, AG

Transatlanticrestrictions upon the transfer of voting shares or TransAllied
    non-voting shares;     the dismissal of any member of the
    TransAllied board according to Article 705, paragraph 1 of the
    Swiss Code;
    
       a change in TransAllieds
    domicile;
    
       the conversion of TransAllied shares
    into bearer shares and vice versa and the conversion of
    TransAllied non- voting shares into TransAllied shares;
    
       any alteration or amendment of articles
    8, 14, 15 or 16 of the TransAllied Articles, which relate to the
    voting rights of shareholders TransAllied; and
    
       TransAllieds liquidation.
     The
    same supermajority voting requirements apply to resolutions in
    relation to transactions among corporations based on the Merger
    Act, including a merger, demerger or conversion of a
    corporation, other than a cash-out or certain squeeze-out
    mergers (in which minority shareholders of the company being
    acquired may be compensated in a form other than through shares
    of the acquiring company) where an affirmative vote of 90% of
    the outstanding common shares is required. Swiss Law also may
    impose this supermajority voting requirement in connection with
    the sale of all or substantially all of its assets.Number of Directors

The TransAllied Articles provide that the TransAllied board
    shall consist of no less than three and no more than thirteen
    members. The shareholders have an exclusive right to change the
    size of the TransAllied board by amending the Articles of
    Association. TransAllied will have 11 directors initially.

The Transatlantic bylaws provide that the number of directors
    will not be less than three nor more than twelve, which number
    may be fixed from time to time by the Transatlantic board of
    directors.  Under the Transatlantic charter, only the
    Transatlantic board of directors may change the size of 148




---



##### Table of Contents



TransAllied Group Holdings, AG

Transatlanticthe Transatlantic board of directors. The size of
    Transatlantics board is currently fixed at seven directors
    and there are currently seven directors serving on the
    Transatlantic board of directors.Classification of Directors

Under the TransAllied Articles, TransAllied the board of
    directors is divided into three classes of directors,
    Class I, Class II and Class III, each of approximately
    equal size.  Each year the TransAllied board shall be renewed by
    rotation, to the extent possible in equal numbers and in such
    manner that, after a period of three years, all members will
    have been subject to re-election.  The TransAllied board shall
    establish the order of rotation, whereas the first term of some
    members may be less than three years.

The Transatlantic board of directors is not divided into
    classes.  Each director is elected at the annual meeting of
    stockholders, to hold office until the next annual meeting and
    until his or her respective successor is duly elected and
    qualified or until his or her prior death, resignation or
    removal.Election of Directors

Under the TransAllied Articles, a vote of a simple majority of
    the votes cast at a general meeting of the shareholders, is
    required to elect the directors to succeed those whose terms
    expire (whereby abstentions, broker non- votes, blank or invalid
    ballots shall be disregarded for purposes of establishing the
    majority).

Under the Transatlantic bylaws, each director shall be elected
    by the vote of the majority of the votes cast with respect to
    the nominee at any meeting at which directors are to be elected
    at which a quorum is present; provided, however, that the
    directors shall be elected by a plurality of votes cast on an
    election that is contested.  An election is deemed to be
    contested if as of a date that is 14 days in advance of the
    filing date of Transatlantics proxy statement for the
    relevant meeting with the SEC, the number of nominees exceeds
    the number of directors to be elected.For purposes of the foregoing, a majority of votes cast means
    that the number of shares voted for a nominee must
    exceed the votes cast against such nominee.Vacancies on the Board of Directors

Under the Swiss Code, a shareholder vote is required to fill

Under the Transatlantic bylaws, if the office of any director
    becomes 149




---



##### Table of Contents



TransAllied Group Holdings, AG

Transatlanticvacancies on the TransAllied board.

vacant, by reason of death, resignation or removal, the
    directors remaining in office, although less than a quorum, may
    fill the vacancy by the affirmative vote of a majority of such
    remaining directors.A Transatlantic director elected to fill a vacancy shall serve
    for the unexpired term of his predecessor in office.  Any
    directorship filled by reason of an increase in the number of
    directors may be filled by election at a regular meeting or a
    special meeting of the Transatlantic board of directors or
    stockholders of Transatlantic, called for that purpose.Removal of Directors

Under the Swiss Code and the TransAllied Articles, only the
    shareholders may remove a director, and they may do so with or
    without cause by the affirmative vote of at least
    662/3%
    of the voting rights and a majority of the par value of
    TransAllied shares, at a shareholders meeting where such
    removal was properly set on the agenda.

Under the Transatlantic charter, a director may be removed from
    office with or without cause, and only by the affirmative vote
    of the holders of a majority of the voting power of all of the
    outstanding capital stock of Transatlantic entitled to vote in
    respect thereof.Amendment of Charter Documents

Under the Swiss Code and the TransAllied Articles, only the
    shareholders, acting at the general shareholders meeting,
    have the power to amend the TransAllied Articles.  A resolution
    of the general shareholders meeting passed by at least
    662/3%
    of the represented share votes and the majority of the
    represented shares par value is required to amend those sections
    of the TransAllied Articles pertaining to the share register,
    matters requiring a supermajority vote, the voting rights of
    shares, matters relating to resolutions of the shareholders,
    restrictions on transferability and shareholder proxies. To
    amend other sections requires passage of a

Under the Transatlantic charter, Transatlantic has reserved the
    right to amend the Transatlantic charter. However, the DGCL
    provides that any amendment to the certificate of incorporation
    of a Delaware corporation shall be approved by the Transatlantic
    board of directors, by an affirmative vote of a majority of the
    outstanding stock entitled to vote thereon, and a majority of
    the outstanding stock of each class entitled to vote thereon as
    a class. As
    permitted by the Transatlantic charter, the Transatlantic board
    of directors may determine the preferences, limitations, and
    relative rights of preferred stock 150




---



##### Table of Contents



TransAllied Group Holdings, AG

Transatlanticshareholder resolution upon a majority of the votes cast.

prior to issuance by adopting a resolution or resolutions
    without stockholder approval.  For more information on
    Transatlantic preferred stock, see the section of this chart
    entitled Preferred Shares on page 156.Amendment to Organizational Regulations or Bylaws

Under the TransAllied Articles, the TransAllied board may amend,
    by majority vote, the organizational regulations at any time
    without the approval of the shareholders. Under Swiss law,
    shareholders may not pass or amend organizational regulations
    but may pass resolutions amending the TransAllied Articles to
    effectively supersede certain provisions in the TransAllied
    organizational resolutions, provided that this does not violate
    the separation of responsibilities.

Under the Transatlantic charter, the Transatlantic board of
    directors may amend the Transatlantic bylaws without the
    approval of the stockholders of Transatlantic in any manner that
    is not inconsistent with the DGCL or the Transatlantic charter.
    In addition, under the Transatlantic bylaws, either of the board
    of directors, by majority vote, or the stockholders, by the
    affirmative vote of holders of record of at least a majority of
    the combined voting power of all of the outstanding capital
    stock entitled to vote thereon, may amend or repeal the bylaws
    of Transatlantic.Extraordinary Shareholder Meetings

Under the TransAllied Articles, extraordinary general
    shareholders meetings may be called by resolution of the
    shareholders at a general shareholders meeting, the
    auditors or the TransAllied board, or by shareholders with
    voting power representing at least 10% of the share capital.

Under the Transatlantic bylaws, a special meeting of
    stockholders for any purpose or purposes may be called by (i)
    the Transatlantic board of directors, the chairman of the board
    of directors, the lead director (as appointed under the
    Transatlantic bylaws), the president or a committee of the
    Transatlantic board of directors given such power or (ii) the
    secretary of Transatlantic, upon the request in writing of
    stockholders holding of record at least 25% of the voting power
    of the outstanding shares of capital stock of Transatlantic
    entitled to vote at such meeting.Nomination of Directors and Shareholder Proposals

Under the Swiss Code, nominations of persons for election to the
    TransAllied board may be made at any time prior to, or at, the
    general shareholders meeting, provided that the election
    of

Under the Transatlantic bylaws, for nominations of directors and
    other proposals properly brought before an annual meeting of
    stockholders by a stockholder, timely notice must be given. In
    general, to be considered timely, a stockholders 151




---



##### Table of Contents



TransAllied Group Holdings, AG

Transatlanticdirectors is a matter that has been included in the agenda.
    
    Pursuant to the Swiss Code, any shareholder or group of
    shareholders holding voting shares representing either an
    aggregate par value of CHF 1 million or 10% of the share capital
    registered in the commercial register may request that an item
    be included on the agenda for the general meeting. Under the
    TransAllied Articles, such request must be in writing and
    submitted to the chairman up to 60 days before the date of
    the meeting. Once included on the agenda, under the Swiss Code,
    no prior notice is required to bring motions related to that
    item.

notice must be received by Transatlantics secretary at
    the principal office of Transatlantic not later than the close
    of business on the 90th day nor earlier than the close of
    business on the 60th day prior to the first anniversary of
    the preceding years annual meeting or in the case of the
    special meeting, not later than the close of the 10th business
    day following the day on which notice of the special meeting was
    mailed or public announcement thereof was made, whichever occurs
    first.Limitation of Liability of Directors

Under the Swiss Code, a limitation of directors liability
    is not possible. However, the general meeting of shareholders
    may pass a resolution discharging the directors from certain
    limited actions under certain conditions. Consequently,
    TransAllieds Articles and the TransAllied organizational
    regulations contain no provisions limiting the personal
    liability of directors.

The DGCL permits the adoption of a provision in the certificate
    of incorporation limiting or eliminating the monetary liability
    of a director to the corporation or its stockholders by reason
    of a directors breach of the fiduciary duty of care.
    
    However, the law does not permit any limitation of the liability
    of a director for:
     
        breaching the duty of loyalty to the
    corporation or its stockholders;
    
       failing to act in good faith;
    
       obtaining an improper personal benefit
    from the corporation; or
    
       paying a dividend or approving a stock
    repurchase that was illegal under Delaware law.
     Under
    the Transatlantic charter, to the fullest extent permitted by
    Delaware law, a director of Transatlantic shall not be liable to
    Transatlantic or its stockholders for monetary damages for
    breach of fiduciary duty as a director. However, if the DGCL is
    amended 152




---



##### Table of Contents



TransAllied Group Holdings, AG

Transatlanticso that it eliminates or further limits the personal liability
    of directors, then liability of a director of Transatlantic with
    respect to actions taken prior to such DGCL amendment shall be
    eliminated or limited to the fullest extent provided by the
    DGCL, as so amended.Indemnification of Directors and Officers

The TransAllied Articles provide that TransAllied shall
    indemnify and hold harmless, to the fullest extent permitted by
    law, each of the members of the TransAllied board and officers
    out of the assets of TransAllied from and against all actions,
    costs, charges, losses, damages and expenses which they or any
    of them may incur or sustain by or by reason of any act done,
    concurred in or omitted in or about the execution of their duty,
    or supposed duty on behalf of TransAllied; provided that this
    indemnity shall not extend to any matter in which any of said
    persons is found, in a final judgment or decree not subject to
    appeal, to have committed with intent or gross negligence.
    Additionally, TransAllied shall advance court costs and
    attorneys fees to the members of the board of directors
    and officers, except in cases where TransAllied itself is
    plaintiff. TransAllied may however recover such advanced cost if
    a court or another competent authority holds that the member of
    the TransAllied board or the officer in question has breached
    its duties to TransAllied.

Under the Transatlantic bylaws, Transatlantic shall indemnify,
    to the full extent of the law, any person made or threatened to
    be made a party to or is otherwise involved in any threatened,
    pending or completed action, suit or proceeding by reason of the
    fact that such person is or was a director or officer of
    Transatlantic or serves or served at the request of
    Transatlantic as a director, officer, employee or agent of
    another corporation, partnership, joint venture, trust, or other
    enterprise, including service with respect to an employee
    benefit plan, against expenses (including attorneys fees),
    judgments, fines and amounts paid in settlement actually and
    reasonably incurred by him or her in connection with such a
    proceeding, if he or she acted in good faith and in a manner
    reasonably believed to be in or not opposed to the best
    interests of Transatlantic, and, with respect to any criminal
    action or proceeding, had no reasonable cause to believe his or
    her conduct was unlawful.
     Such
    rights shall be contract rights and shall include the right to
    be paid by Transatlantic expenses incurred in defending any
    action, suit or proceeding in advance of its final disposition,
    provided that such person shall repay all amounts advanced if it
    is ultimately determined that such person is not entitled to 153




---



##### Table of Contents



TransAllied Group Holdings, AG

Transatlanticindemnification under the Transatlantic bylaws.Preemptive Rights

Under the Swiss Code, TransAllied shareholders are generally
    entitled to preemptive rights in relation to new shares or
    rights in proportion to the par value that the new shares bear
    to the par value of shares outstanding before a new issuance.
    These preemptive rights, however, are limited under the Swiss
    Code and the TransAllied Articles.  Under the TransAllied
    Articles, shareholders with the affirmative vote of shareholders
    holding
    662/3%
    of the voting rights and a majority of the par value of the
    shares, each as represented at the general shareholders
    meeting, may withdraw or limit the preemptive rights for valid
    reasons, such as a merger or acquisition.  In addition, a
    general shareholders meeting that approves the creation of
    authorized or conditional share capital thereby may delegate the
    decision whether to withdraw or limit the preemptive or advance
    subscription rights for valid reasons to the TransAllied board.

Under the Transatlantic charter, the holders of common stock and
    preferred stock are not entitled to preemptive or other similar
    subscription rights to purchase any of Transatlantics
    securities.Dividends

Under the Swiss Code and the TransAllied Articles, TransAllied
    shareholders are entitled to receive, from funds legally
    available for the payment thereof, pro rata dividends as and
    when declared.  Under Swiss law, dividends may be paid out only
    if a corporation has sufficient distributable profits from
    previous fiscal years or if a corporation has freely
    distributable reserves, which may include contributed surplus.

Under the Transatlantic bylaws, subject to the express terms of
    any outstanding series of preferred stock, the Transatlantic
    board of directors may, out of funds legally available therefor
    at any regular or special meeting, declare dividends upon the
    capital stock of Transatlantic as and when they deem expedient.Under the Swiss Code and the TransAllied Articles, the board of
    directors may propose to shareholders that a dividend be paid
    but cannot itself authorize the dividend. The affirmative vote
    of 154




---



##### Table of Contents



TransAllied Group Holdings, AG

Transatlanticshareholders holding a majority of shares represented at a
    general meeting must approve distributions of dividends.Under Swiss law, dividend payments out of earnings and similar
    payments are subject to Swiss withholding tax.  Dividend
    payments in the form of a return of capital by reducing the par
    value are not subject to Swiss withholding tax.  Until at least
    TransAllieds Annual Shareholder Meeting in 2012,
    TransAllied intends to make further payments to shareholders in
    the form of reductions to registered share capital.Mergers and Consolidations, Generally

Business combinations and other such transactions that are
    binding on all shareholders of TransAllied are governed by the
    Merger Act.  As described above under Supermajority
    Voting, a statutory merger or demerger requires that at
    least
    662/3%
    of the shares and a majority of the par value of the shares,
    each as represented at the general shareholders meeting,
    vote in favor of the transaction.

Under the DGCL, the vote of the holders of a majority of the
    outstanding shares of Transatlantic common stock is required to
    approve a business combination, unless the Transatlantic board
    of directors conditions the submission of the business
    combination on receipt of a greater vote.Restrictions on Business Combinations with Interested
    Shareholders

Under the Swiss Code, there generally is no prohibition of
    business combinations with interested shareholders.  However,
    the TransAllied Articles provides that no individual or legal
    entity may, directly or through Constructive Ownership (as
    defined in Article 14 of the TransAllied Articles) or otherwise
    control voting rights with respect to 10% or more of the
    registered share capital recorded in the Swiss Commercial
    Register, unless otherwise approved by the TransAllied board.

The DGCL prohibits a Delaware corporation from engaging in a
    business combination with an interested
    stockholder owning 15% or more of the corporations
    voting stock for three years following the time that the
    interested stockholder becomes such, subject to
    certain exceptions. Transatlantic has not opted out of Section
    203 in the Transatlantic charter and is therefore governed by
    the terms of this provision of the DGCL.Appraisal Rights

For business combinations effected in the form of a statutory
    merger

Under Delaware law, in certain situations, appraisal rights may
    be 155




---



##### Table of Contents



TransAllied Group Holdings, AG

Transatlanticor de-merger, the Merger Act provides that, if the equity
    rights have not been adequately preserved or compensation
    payments in the transaction are unreasonable, a shareholder may
    request the competent court to determine a reasonable amount of
    compensation.

available in connection with a merger or a consolidation.
    Appraisal rights are not available under Delaware law to
    stockholders of the surviving corporation when a corporation is
    to be the surviving corporation and no vote of its stockholders
    is required to approve the merger in accordance with Section
    251(f) of the DGCL.  In addition, no appraisal rights are
    available under Delaware law to holders of shares of any class
    of or series of stock which is either:     listed on a national securities
    exchange; or
    
       held of record by more than 2,000
    stockholders.
    
    Notwithstanding the above, appraisal rights shall be available
    to those stockholders who are required by the terms of the
    agreement of merger or consolidation to accept for that stock
    anything other than:
    
       shares of stock of the corporation
    surviving or resulting from the merger or consolidation, or
    depository receipts in respect thereof;
    
       shares of stock of another corporation,
    or depository receipts in respect thereof, which, as of the
    effective date of the merger or consolidation, are listed on a
    national securities exchange or held of record by more than
    2,000 stockholders;
    
       cash in lieu of fractional shares or
    fractional depository receipts described in the foregoing
    paragraphs; or
    
       any combination of the items listed
    above.Preferred Shares

Blank check preferred stock, which generally allows
    a

Under the Transatlantic charter, Transatlantic has 10,000,000 156




---



##### Table of Contents



TransAllied Group Holdings, AG

Transatlanticcompanys board of directors to determine the preferences,
    limitations and relative rights of an unissued class of
    preferred stock, is not a recognized concept under Swiss law.
    Therefore, the TransAllieds board of directors may create
    shares with a liquidation preference or dividend preference only
    upon the approval of a majority of the voting rights represented
    at a general meeting. Similarly, the TransAllied board may only
    create shares with preferential voting rights with the approval
    of at least
    662/3%
    of the voting rights and a majority of the par value of the
    shares represented at a general shareholders meeting.  To
    date, no such shares have been created.

authorized shares of blank check preferred stock,
    par value $1.00. As such, the Transatlantic board of directors
    may determine the preferences, limitations, and relative rights
    of this preferred stock by adopting resolutions fixing the
    same.  Such a determination may include, without limitation,
    provisions with respect to voting rights (including rights with
    respect to any transaction of a specified nature), redemption,
    convertibility, distribution and preference on dissolution or
    otherwise. To date, Transatlantic has no preferred stock issued
    and outstanding.  LEGAL
    MATTERS   EXPERTS  Allied
    World
  Form 10-K other-than-temporary
  Transatlantic
  Form 10-K
 157




---



##### Table of Contents



FUTURE
    STOCKHOLDER PROPOSALS  Allied
    World
    Submission
    of an Additional Item for the Proxy Statement Related to the
    Annual Shareholder Meeting in 2012
  e-mail
  e-mail
  Submission
    of an Additional Item for the Agenda at an Annual Shareholder
    Meeting
  e-mail
  Transatlantic
     HOUSEHOLDING
    OF JOINT PROXY STATEMENT/PROSPECTUS   158




---



##### Table of Contents



441-278-5400 212-365-2200.
 OTHER
    MATTERS  Other
    Matters Presented at the Special Meetings
   WHERE YOU
    CAN FIND MORE INFORMATION  1-800-SEC-0330
  www.awac.com. www.transre.com.
     159




---



##### Table of Contents



Form 8-K).
  
    Annual Report on
    Form 10-K
    for the fiscal year ended December 31, 2010 filed
    March 1, 2011.
    Proxy Statement on Schedule 14A filed March 17, 2011.
    Sections entitled Summary  Tax
    Considerations and Material Tax Considerations
    of the Proxy Statement on Schedule 14A filed
    October 14, 2010.
    Quarterly Reports on
    Form 10-Q
    for the quarterly period ended March 31, 2011 filed
    May 10, 2011.
    Current Reports on
    Form 8-K
    or 8-K/A,
    filed January 5, 2011, February 3, 2011,
    April 22, 2011, May 11, 2011, June 13, 2011,
    June 14, 2011 and June 15, 2011.
    The description of the Allied World shares contained in Allied
    Worlds registration statements on
    Form 8-A/A
    (SEC File
    No. 001-32938)
    filed with the SEC under Section 12 of the Exchange Act on
    December 1, 2010.  Form 8-K,
       (441) 278-5400
   Form 8-K).
  
    Annual Report on
    Form 10-K
    for the fiscal year ended December 31, 2010 filed on
    February 22, 2011.
    Proxy Statement on Schedule 14A filed April 8, 2011.
    Quarterly Report on
    Form 10-Q
    for the quarterly period ended March 31, 2011 filed on
    May 4, 2011.
    Current Reports on
    Form 8-K,
    filed March 29, 2011, May 20, 2011, June 1, 2011,
    June 13, 2011 (both filings), June 15, 2011 and
    July 7, 2011.  Form 8-K,
     160




---



##### Table of Contents



(212) 365-2200
       161




---



##### Table of Contents



Annex A   AGREEMENT
    AND PLAN OF MERGER
    BY AND AMONG
    ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG,
    GO SUB, LLC
    AND
    TRANSATLANTIC HOLDINGS, INC.
    DATED AS OF JUNE 12, 2011




---



##### Table of Contents



TABLE OF
    CONTENTS
  PageARTICLE I. THE MERGER


A-21.1


The Merger


A-21.2


Closing


A-21.3


Effective Time


A-21.4


Effects


A-31.5


Certificates of Incorporation and Bylaws


A-3ARTICLE II. EFFECT ON CAPITAL STOCK; EXCHANGE OF
    CERTIFICATES


A-32.1


Effect on Capital Stock


A-32.2


Exchange of Certificates


A-42.3


Transatlantic Stock Options and Other Equity Awards


A-62.4


Further Assurances


A-7ARTICLE III. REPRESENTATIONS AND WARRANTIES OF ALLIED WORLD
    AND MERGER SUB


A-83.1


Corporate Organization


A-83.2


Capitalization


A-93.3


Corporate Authorization


A-103.4


Governmental Authorization


A-113.5


Non-Contravention


A-123.6


Allied World SEC Filings, Etc.


A-123.7


Allied World Financial Statements


A-133.8


Form S-4


A-143.9


Absence of Certain Changes or Events


A-143.10


No Undisclosed Material Liabilities


A-143.11


Compliance with Laws


A-143.12


Litigation


A-153.13


Title to Properties; Absence of Liens


A-153.14


Opinion of Financial Advisor


A-153.15


Taxes


A-153.16


Employee Benefit Plans


A-163.17


Employees, Labor Matters


A-183.18


Environmental Matters


A-183.19


Intellectual Property


A-193.20


Allied World Material Contracts


A-193.21


Brokers and Finders Fees


A-203.22


Takeover Laws


A-203.23


Affiliate Transactions


A-203.24


Insurance Subsidiaries


A-203.25


Statutory Statements; Examinations


A-203.26


Agreements with Regulators


A-213.27


Reinsurance and Retrocession


A-21 A-i




---



##### Table of Contents



Page3.28


Rating Agency


A-223.29


Reserves


A-223.30


Risk-Based Capital


A-233.31


Insurance Issued by the Allied World P/C Subsidiaries


A-233.32


Other Allied World Insurance Business


A-243.33


Redomestication


A-243.34


No Other Representations and Warranties; Disclaimer


A-24ARTICLE  IV. REPRESENTATIONS AND WARRANTIES OF TRANSATLANTIC


A-244.1


Corporate Organization


A-254.2


Capitalization


A-254.3


Corporate Authorization


A-264.4


Governmental Authorization


A-274.5


Non-Contravention


A-274.6


Transatlantic SEC Filings, Etc.


A-274.7


Transatlantic Financial Statements


A-294.8


Form S-4


A-294.9


Absence of Certain Changes or Events


A-294.10


No Undisclosed Material Liabilities


A-294.11


Compliance with Laws


A-294.12


Litigation


A-304.13


Title to Properties; Absence of Liens


A-304.14


Opinion of Financial Advisor


A-314.15


Taxes


A-314.16


Employee Benefit Plans


A-324.17


Employees, Labor Matters


A-334.18


Environmental Matters


A-344.19


Intellectual Property


A-344.20


Transatlantic Material Contracts


A-344.21


Brokers and Finders Fees


A-354.22


Takeover Laws


A-354.23


Affiliate Transactions


A-354.24


Insurance Subsidiaries


A-354.25


Statutory Statements; Examinations


A-354.26


Agreements with Regulators


A-364.27


Reinsurance and Retrocession


A-364.28


Rating Agency


A-374.29


Reserves


A-384.30


Risk-Based Capital


A-384.31


Transatlantic Insurance Business


A-384.32


Other Transatlantic Insurance Business


A-384.33


No Other Representations and Warranties; Disclaimer


A-39 A-ii




---



##### Table of Contents



PageARTICLE V. COVENANTS RELATING TO CONDUCT OF BUSINESS


A-395.1


Conduct of Businesses Prior to the Effective Time


A-395.2


Allied World Forbearances


A-405.3


Transatlantic Forbearances


A-425.4


Control of Other Partys Business


A-445.5


No Solicitation


A-44ARTICLE VI. ADDITIONAL AGREEMENTS


A-476.1


Preparation of the
    Form S-4
    and the Joint Proxy Statement; Stockholders Meetings


A-476.2


Access to Information; Confidentiality


A-496.3


Required Actions


A-506.4


Actions with Respect to Certain Existing Indebtedness


A-526.5


Indemnification and Directors and Officers Insurance


A-526.6


Fees and Expenses


A-536.7


Transaction Litigation


A-566.8


Section 16 Matters


A-566.9


Governance Matters


A-566.10


Retention Program and Employee Waivers


A-586.11


Transatlantic Common Stock Purchase


A-586.12


Cantonal Tax Ruling


A-586.13


Commercial Register Ruling


A-59ARTICLE VII. CONDITIONS PRECEDENT


A-597.1


Conditions to Each Partys Obligation to Effect the Merger


A-597.2


Conditions to Obligations of Allied World


A-607.3


Conditions to Obligations of Transatlantic


A-60ARTICLE VIII. TERMINATION AND AMENDMENT


A-618.1


Termination


A-618.2


Effect of Termination


A-618.3


Amendment


A-628.4


Extension; Waiver


A-62ARTICLE IX. GENERAL PROVISIONS


A-629.1


Nonsurvival of Representations and Warranties


A-629.2


Notices


A-629.3


Definitions


A-639.4


Interpretation


A-689.5


Severability


A-689.6


Counterparts


A-69 A-iii




---



##### Table of Contents



Page9.7


Entire Agreement; No Third-Party Beneficiaries


A-699.8


Governing Law


A-699.9


Assignment; Successors; Tax Treatment


A-699.10


Specific Enforcement


A-699.11


Submission to Jurisdiction


A-709.12


Waiver of Jury Trial


A-709.13


No Presumption Against Drafting Party


A-709.14


Publicity


A-70Annex A Defined Terms


A-72Exhibit A Certificate of Incorporation of the Surviving
    CorporationExhibit B Bylaws of the Surviving CorporationExhibit C Restated Articles of Association of Allied WorldExhibit D Amended and Restated Organizational Regulations
    of Allied World  A-iv




---



##### Table of Contents



AGREEMENT
    AND PLAN OF MERGER
  Agreement Allied World Merger Sub Transatlantic
            ARTICLE I.
  THE MERGER
  The Merger. Delaware Law Merger Surviving Corporation
  Closing. Closing Article VII Closing Date
  Effective Time. Certificate of
    Merger
 A-2




---



##### Table of Contents



Effective Time
  Effects.
  Certificates of Incorporation and Bylaws.
  Surviving Corporation Certificate of
    Incorporation and Bylaws. Exhibit A Exhibit B
  Allied World Articles of
    Association. Allied World
    Articles Amendment Exhibit C Restated
    Articles
  Allied World Organizational
    Regulations. Exhibit D
  ARTICLE II.
  EFFECT ON
    CAPITAL STOCK;
 EXCHANGE OF
    CERTIFICATES
  Effect on Capital Stock.
    Limited Liability Company Interest of Merger
    Sub. Merger Sub Common
    Stock
  Cancellation of Certain
    Stock. Transatlantic Common Stock
  Conversion of Transatlantic Common
    Stock. Section 2.2(e) Section 2.1(a)(ii)
 A-3




---



##### Table of Contents



Exchange
    Ratio Allied World Shares Section 2.1(a)(iii) Section 2.2(e) Merger
    Consideration Section 2.1(a)(iii) Section 2.2(c)
  Certain Adjustments. Article V
  Exchange of Certificates.
  Exchange Agent. Exchange Agent Certificates Book-Entry
    Shares Section 2.1 Section 2.2(e) Section 2.2(c) Section 2.2(a) Exchange Fund
  Exchange Procedures. Section 2.1(a)(iii) Section 2.2(c) Section 2.1
 A-4




---



##### Table of Contents



Section 2.2(e) Section 2.2(c) Section 2.2 Section 2.1 Section 2.2(c)
  Treatment of Unexchanged
    Shares. Section 2.2(e) Article II Section 2.2(e) Section 2.1(a)(iii) Section 2.1(a)(iii)
  No Further Ownership Rights in Transatlantic
    Common Stock. Article II Section 2.2(c) Article II
  No Fractional Shares. Section 2.1 NYSE The Wall Street
    Journal
  Termination of Exchange
    Fund.
 A-5




---



##### Table of Contents



Article II Article II
  No Liability. Article II
  Investment of Exchange
    Fund. provided Section 2.2(g)
  Withholding Rights.
  Lost Certificates. Section 2.2(g)
  Transatlantic Stock Options and Other Equity
    Awards.
  Transatlantic Board
  Transatlantic Rollover Option provided however Code
 A-6




---



##### Table of Contents



Converted Transatlantic
    Stock-Based Award
        Section 2.3(a) Section 2.3 Section 2.3
  Section 2.3 Form S-8
  Further Assurances.
 A-7




---



##### Table of Contents



ARTICLE III.
  REPRESENTATIONS
    AND WARRANTIES OF ALLIED WORLD AND MERGER SUB
  SEC Allied
    World Disclosure Schedule Article III Article III Prior Allied World Parent
  Corporate Organization.
  Allied World.
  clauses (ii) (iii)
  Allied
    World Articles Allied World
    Bylaws
  clauses (i) (ii) (iii)
  Merger Sub.
   A-8




---



##### Table of Contents



Liens
  Capitalization.
  Authorized and Issued Shares.
  Measurement Date Allied World Board and/or Section 3.2
  Participation Certificate
   A-9




---



##### Table of Contents



Grant
    Date
    Regulation S-X Subsidiary Subsidiaries Allied World
    Subsidiary Transatlantic
    Subsidiary
  Corporate Authorization.
   A-10




---



##### Table of Contents



Section 5.5 Allied World Board Recommendation Allied World Stockholders
    Meeting Allied World
    Articles Amendment Stockholder Approval Allied World
    Share Issuance Stockholder Approval Allied World Requisite Stockholder Vote
  Bankruptcy and Equity
    Exception
    Governmental Authorization.
 A-11




---



##### Table of Contents



Hart-Scott-Rodino HSR Act Section 3.4 Allied World
    Insurance Approvals Section 4.4(f) Section 4.4(f)
  Non-Contravention. Section 3.4 Section 4.4 Section 4.4(f) Section 4.4(f) clause (b) (c) (d)
  Allied World SEC Filings, Etc.
  Form 8-K Allied World SEC
    Documents
  Rules 13a-15(f) 15d-15(f)
 A-12




---



##### Table of Contents



Rules 13a-15(e) 15d-15(e) clauses (A) (B)
  Regulation S-K
  SOX
  FCPA
  Allied World Financial
    Statements.
 A-13




---



##### Table of Contents



Form S-4. Form S-4 Form S-4 Form S-4 Form S-4.
  Absence of Certain Changes or Events.
      No Undisclosed Material
    Liabilities.
  Compliance with Laws.
     A-14




---



##### Table of Contents



Litigation.
  Title to Properties; Absence of
    Liens. Section 3.13 Allied World Leased Real
    Properties Allied World
    Real Property Leases
  Opinion of Financial
    Advisor. DB
  Taxes.
   A-15




---



##### Table of Contents



Section 1.6011-4 Section 1.6011-4(b)
      Employee Benefit Plans.
  Section 3.16(a) ERISA change-in-control,
 A-16




---



##### Table of Contents



Allied World Benefit
    Plan IRS non-U.S. jurisdiction
      Allied World ERISA
    Affiliate PBGC
     A-17




---



##### Table of Contents



gross-up
  Section 3.16(h) Section 1.280G-1)
  Employees, Labor Matters.
      and/or
  Environmental Matters. et seq
 A-18




---



##### Table of Contents



Intellectual Property.
      and/or
  Allied World Material Contracts.
  Regulation S-K Allied World Material
    Contract
   A-19




---



##### Table of Contents



Brokers and Finders
    Fees.
  Takeover Laws.
  Affiliate Transactions. Regulation S-K
  Insurance Subsidiaries. Allied World P/C
    Subsidiary Section 3.24
  Statutory Statements; Examinations.
  Allied World Statutory Statements
   A-20




---



##### Table of Contents



Section 3.25(c)
  Section 3.25(d)
  Agreements with
    Regulators. Section 3.26 cease-and-desist
  Reinsurance and Retrocession.
  Allied World Reinsurance Contracts
 A-21




---



##### Table of Contents



Rating Agency. Section 3.28
  Reserves.
     A-22




---



##### Table of Contents



Risk-Based Capital. Allied World Risk-Based Capital Reports
  Insurance Issued by the Allied World P/C
    Subsidiaries.
  Insurance
    Contracts
        Allied
    World Agents
 A-23




---



##### Table of Contents



Other Allied World Insurance
    Business.
  Redomestication. Redomestication
  No Other Representations and Warranties;
    Disclaimer.
  Article III Article III
  Article IV
  ARTICLE IV.
  REPRESENTATIONS
    AND WARRANTIES OF TRANSATLANTIC
  Transatlantic Disclosure Schedule Article IV
 A-24




---



##### Table of Contents



Corporate Organization.
  clauses (ii) (iii)
  Transatlantic Charter Transatlantic
    Bylaws
  clauses (i) (ii) (iii)
  Capitalization.
  Authorized and Issued Shares.
  Transatlantic Preferred
    Stock Section 4.2
   A-25




---



##### Table of Contents



Regulation S-X
  Corporate Authorization.
  Section 5.5 Transatlantic Board
 A-26




---



##### Table of Contents



Recommendation Transatlantic Stockholders
    Meeting Transatlantic Requisite Stockholder
    Vote
    Governmental Authorization. Section 4.4 Transatlantic Insurance Approvals Section 3.4(f) Section 3.4(f)
  Non-Contravention. Section 3.4 Section 4.4 Section 3.4(f) Section 3.4(f) clause (b) (c) (d)
  Transatlantic SEC Filings, Etc.
  Form 8-K
 A-27




---



##### Table of Contents



Transatlantic SEC Documents
  Rules 13a-15(f) 15d-15(f) Rules 13a-15(e) 15d-15(e) clauses (A) (B)
  Regulation S-K
     A-28




---



##### Table of Contents



Transatlantic Financial
    Statements.
  Form S-4. Form S-4 Form S-4 Form S-4.
  Absence of Certain Changes or Events.
      No Undisclosed Material
    Liabilities.
  Compliance with Laws.
   A-29




---



##### Table of Contents



Litigation.
  Title to Properties; Absence of
    Liens. Section 4.13 Transatlantic Leased Real
    Properties Transatlantic
    Real Property Leases
 A-30




---



##### Table of Contents



Opinion of Financial
    Advisor. Moelis Moelis Fairness Opinion
  Taxes.
              Section 1.6011-4 Section 1.6011-4(b)
 A-31




---



##### Table of Contents



Employee Benefit Plans.
  Section 4.16(a) change-in-control, Transatlantic Benefit Plan non-U.S. jurisdiction
      Transatlantic ERISA
    Affiliate
 A-32




---



##### Table of Contents



gross-up
  Section 4.16(h) Section 1.280G-1)
  Employees, Labor Matters.
       A-33




---



##### Table of Contents



and/or
  Environmental Matters. et seq
  Intellectual Property.
      and/or
  Transatlantic Material Contracts.
  Regulation S-K Transatlantic Material
    Contract
 A-34




---



##### Table of Contents



Brokers and Finders
    Fees.
  Takeover Laws.
  Affiliate Transactions. Regulation S-K
  Insurance Subsidiaries. Transatlantic P/C
    Subsidiary Section 4.24
  Statutory Statements; Examinations.
  Transatlantic Statutory Statements
   A-35




---



##### Table of Contents



Section 4.25(c)
  Section 4.25(d)
  Agreements with
    Regulators. Section 4.26 cease-and-desist
  Reinsurance and Retrocession.
   A-36




---



##### Table of Contents



Transatlantic Reinsurance
    Contracts
    Rating Agency. Section 4.28 Section 4.28
 A-37




---



##### Table of Contents



Reserves.
      Risk-Based
    Capital. Transatlantic
    Risk-Based Capital Reports
  Transatlantic Insurance Business.
    Transatlantic
    Agents
  Other Transatlantic Insurance
    Business. Transatlantic Insurance Intermediaries
 A-38




---



##### Table of Contents



No Other Representations and Warranties;
    Disclaimer.
  Article IV Article IV
  Article III
  ARTICLE V.
  COVENANTS
    RELATING TO CONDUCT OF BUSINESS
  Conduct of Businesses Prior to the Effective
    Time. Section 5.2 Section 5.3 Section 5.1 Section 5.1 Section 5.1 Section 5.2 Section 5.3 Section 5.1 Section 5.1
 A-39




---



##### Table of Contents



Section 5.2 Section 5.3
  Allied World
    Forbearances. Section 5.2
        Section 5.2(d)
  and/or
  and/or
 A-40




---



##### Table of Contents



Section 5.2(d) Section 5.2(e)
    provided
         A-41




---



##### Table of Contents



Section 5.2 Section 5.2
  Transatlantic
    Forbearances. Section 5.3
        Section 5.3(d)
  and/or
   A-42




---



##### Table of Contents



and/or
  Section 5.3(d) Section 5.3(e)
               A-43




---



##### Table of Contents



Section 5.3 Section 5.3
  Control of Other Partys
    Business.
  No Solicitation.
  Allied World
    Acquisition Proposal Allied
    World Acquisition Agreement
  Transatlantic Acquisition
    Proposal Acquisition
    Proposal
 A-44




---



##### Table of Contents



Transatlantic Acquisition Agreement
  Competing
    Transaction Target Party Non-Target
    Party Rule 13d-3 clause (ii) provided however Rule 13d-3
   A-45




---



##### Table of Contents



provided however clause (ii) Section 5.5
  Section 5.5 Section 5.5(a) Section 5.5(b) Target
    Board Section 5.5(e) clause (ii)
  Superior
    Proposal Section 5.5
  Section 5.5(g) Section 5.5(g)(i) Adverse Recommendation Change Section 5.5(e) Section 5.5
 A-46




---



##### Table of Contents



Section 5.5(g) provided however Section 6.6
  Section 5.5 Rule 14e-2(a) Rule 14d-9 provided however Section 5.5(g)
    Section 5.5 Section 5.5
  ARTICLE VI.
  ADDITIONAL
    AGREEMENTS
  Preparation of the
    Form S-4
    and the Joint Proxy Statement; Stockholders Meetings.
  Form S-4, Joint Proxy
    Statement/Prospectus
 A-47




---



##### Table of Contents



Form S-4 Form S-4 Form S-4 Form S-4 Form S-4 Form S-4 Form S-4,
  Form S-4, Form S-4, Form S-4 Section 6.1(b) Section 6.1(a)
  Form S-4, Form S-4, Form S-4 Section 6.1(c) Section 6.1(a)
  Form S-4
 A-48




---



##### Table of Contents



Form S-4 Section 5.5(g) Section 6.1
  Form S-4 Form S-4 Form S-4 Section 5.5(g) Section 6.1
  Access to Information;
    Confidentiality. provided however provided provided provided Rule 14a-7(a)(2)(ii) Section 6.2 Confidentiality Agreement Section 6.2 Section 6.2
 A-49




---



##### Table of Contents



Required Actions.
  provided however Section 6.3 Section 5.5
  Section 6.3(a) Section 7.1(d) Section 7.1(f) provided however Section 6.3(b) Section 7.1(d) Section 7.1(f) and/or Section 7.1(d) Section 7.1(f) provided
    clause (A) Section 7.1(d) Section 7.1(d)
 A-50




---



##### Table of Contents



Section 6.3(b)
  Section 6.3(b)
    Section 6.3(c)(iv) Second
    Request
  Section 6.3(c) and/or
  provided however provided further Section 6.3(d) Article VII Article VII
 A-51




---



##### Table of Contents



Actions with Respect to Certain Existing
    Indebtedness.
  Allied World Credit
    Facilities. Requisite Lender Consents provided however Section 6.4(a)
  Supplemental Indenture. Supplemental Indenture Transatlantic Indenture
  Indemnification and Directors and Officers
    Insurance.
  Indemnified Party
  provided however Maximum Premium
 A-52




---



##### Table of Contents



Section 6.5 Section 6.5 Section 6.5(a)
  Section 6.5
  Fees and Expenses.
  Section 6.6 provided however Form S-4 clause (i) clause (ii)
    Section 8.1(f)
  Section 8.1(g)
  out-of-pocket Expense Reimbursement provided Section 8.1(f) Section 5.5 Section 6.1(d) Section 8.1(g) Section 5.5 Section 6.1(e) provided further and/or Section 6.6(b) Section 6.6(e)(iv) Section 6.6(f)(iv) Section 6.6(e) Section 6.6(f) Section 6.6(b)
  Section 8.1(d) Alternate Termination Fee provided Section 8.1(c) Section 6.6(c) Section 6.6(e)(ii) Section 6.6(e)
 A-53




---



##### Table of Contents



Section 8.1(c) provided Section 8.1(d) Section 6.6(d) Section 6.6(f)(ii) Section 6.6(f)
    Section 8.1(h)
  Section 8.1(d) provided however clause (ii)
  Section 8.1(e) provided however clause
    (iii)
  Section 8.1(f) Section 5.5 Section 6.1(d) provided however clause
    (iv)
  Termination Fee and/or
 A-54




---



##### Table of Contents



Section 6.6(e)(ii) Section 6.6(e)(iii) Section 6.6(e)(iv) Section 6.6(e)(i)
    Section 8.1(i)
  Section 8.1(c) provided however clause (ii) clauses (x) (y)
  Section 8.1(e) provided however clause
    (iii)
  Section 8.1(g) Section 5.5 Section 6.1(e) provided however clause (iv)
  and/or Section 6.6(f)(ii) Section 6.6(f)(iii) Section 6.6(f)(iv) Section 6.6(f)(i)
 A-55




---



##### Table of Contents



Section 6.6 Section 6.6 Section 6.6 Section 6.6 The Wall Street
    Journal Section 9.10 Section 8.2 Section 9.7 Section 5.5
  Transaction
    Litigation. and/or and/or
  Section 16 Matters. Rule 16b-3 Rule 16b-3
  Governance Matters.
  Board of Directors.
 A-56




---



##### Table of Contents



Section 6.9(a) Reconstituted Allied World
    Board
  Allied World Board Written
    Consent. Reconstituted Allied World Board Written
    Consent
        Section 6.9(b)(iv) Section 6.9(b)(iv)
           A-57




---



##### Table of Contents



Exhibit D
  Non-Executive
    Chairman. Section 6.9(c)
  Transatlantic Chief Executive
    Officer.
  Headquarters.
  Vesting.
  Retention Program and Employee
    Waivers. Schedule 6.10 gross-up
  Transatlantic Common Stock
    Purchase. Stock Purchase Contract Transatlantic Common Stock
    Purchase
  Cantonal Tax Ruling.
 A-58




---



##### Table of Contents



Cantonal Tax Ruling
  Commercial Register
    Ruling. Commercial Register Ruling
  ARTICLE VII.
  CONDITIONS
    PRECEDENT
  Conditions to Each Partys Obligation to
    Effect the Merger.
  Allied World Requisite Stockholder
    Vote.
  Transatlantic Requisite Stockholder
    Vote.
  Listing.
  Regulatory
    Approvals. Section 7.1(d) Section 7.1(d) Section 7.1(d) Section 7.1(d) Requisite Regulatory
    Approvals
  Form S-4. Form S-4 Form S-4
  No Injunctions or
    Restraints.
 A-59




---



##### Table of Contents



Governance Matters.
  Commercial Register
    Ruling.
  Transatlantic Common Stock
    Purchase.
  Conditions to Obligations of Allied
    World.
  Representations and
    Warranties. Section 4.2 Section 4.3 Section 4.21
  Performance of Obligations of
    Transatlantic.
  Conditions to Obligations of
    Transatlantic.
  Representations and
    Warranties. Section 3.2 Section 3.3 Section 3.21
  Performance of Obligations of Allied
    World.
 A-60




---



##### Table of Contents



ARTICLE VIII.
  TERMINATION
    AND AMENDMENT
  Termination.
    Section 8.1(b)
      End
    Date provided however Section 8.1(e)
  Section 7.2(a) (b)
  Section 7.3(a) (b)
      Effect of Termination. Section 8.1 Section 3.21 Section 4.21 Section 6.6 Article IX Section 9.14 provided however Section 8.2
 A-61




---



##### Table of Contents



Amendment. provided however
  Extension; Waiver.
  ARTICLE IX.
  GENERAL
    PROVISIONS
  Nonsurvival of Representations and
    Warranties.
  Notices. next-day next-day
    41-41-768-1080  (441) 295-5753
    (212) 728-8000  (212) 728-9763
 A-62




---



##### Table of Contents



(212) 365-2200  (212) 365-2360
    (212) 351-4000  (212) 351-4035
  Definitions.
  Affiliate
  Allied World Board Election Stockholder
    Approval Section 6.9(a)
  Allied World Capital Stock
  Allied World Material Adverse Effect
 A-63




---



##### Table of Contents



provided clause (viii) provided clause (ix) provided clause (x) clauses
    (ii) (iii) (iv) (v) and/or
  Allied World Permits
  Allied World RSU
  Allied World Secured Credit Facility
  Allied World Stock-Based Award
  Allied World Stock Option
  Allied World Stock Plans Section 9.3
  Allied World Unsecured Credit Facility
  Antitrust Law
 A-64




---



##### Table of Contents



Business Day
  Contract
  Environmental Law
  Equity Equivalents
  Exchange Act
  Forfeitures and Cashless Settlements
  GAAP
  Governmental Entity
  Independent Director Regulation S-K.
  Independent Allied World Director
  Independent Transatlantic Director
  Injunction
 A-65




---



##### Table of Contents



Insurance Law
  Insurance Regulators
  Intellectual Property
  knowledge of Allied World knowledge Section 9.3
  knowledge of Transatlantic knowledge Section 9.3
  Law
  Order
  Organizational Documents
  Permitted Liens Section 9.3 Section 9.3
  Person
  Representatives
  SAP
  Securities Act
 A-66




---



##### Table of Contents



Share Issuance Form S-4
  Stock-Based Awards
  Stock Options
  Substantial Compliance
  Tax
  Tax Return
  Taxing Authority
  Transatlantic Material Adverse Effect provided clause (viii) provided clause (ix)
 A-67




---



##### Table of Contents



provided clause (x) clauses (ii) (iii) (iv) (v) and/or
  Transatlantic Permits
  Transatlantic Restricted Shares
  Transatlantic RSU
  Transatlantic SAR
  Transatlantic Stock-Based Award
  Transatlantic Stock Option
  Transatlantic Stock Plans Section 9.3
  Interpretation.
  Severability.
 A-68




---



##### Table of Contents



Counterparts.
  Entire Agreement; No Third-Party
    Beneficiaries. Section 6.5
  Governing Law.
  Assignment; Successors; Tax Treatment.
  Section 9.9(b)
  Newco Holdings Section 2.2(a)
    Specific Enforcement. provided Section 9.10 Section 9.10
 A-69




---



##### Table of Contents



Submission to
    Jurisdiction. provided
  Waiver of Jury Trial.
  No Presumption Against Drafting
    Party.
  Publicity. Section 9.14 provided however Section 9.14
 A-70




---



##### Table of Contents



ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
   By:
    /s/  Scott
    A. CarmilaniName:     Scott
    A. Carmilani Title:
    President and Chief Executive Officer  By:
    /s/  Wesley
    D. DupontName:     Wesley
    D. Dupont Title:
    Executive Vice President, General Counsel   GO SUB, LLC
  By:
    Ocean Holdings (U.S.) Inc., its Sole and Managing MemberBy:
    /s/  Wesley
    D. DupontName:     Wesley
    D. Dupont Title:
    Secretary  TRANSATLANTIC HOLDINGS, INC.
  By:
    /s/  Gary
    A. SchwartzName:     Gary
    A. Schwartz Title:
    Senior Vice President and 
    General Counsel A-71




---



##### Table of Contents



ANNEX A
  DEFINED
    TERMS
  SectionDefined Term

NumberAcquisition Proposal

5.5(b)Adverse Recommendation Change

5.5(g)Affiliate

9.3Agreement

PreambleAllied World

PreambleAllied World Acquisition Agreement

5.5(a)Allied World Acquisition Proposal

5.5(a)Allied World Agents

3.31(e)Allied World Articles

3.1(a)(ii)Allied World Articles Amendment

1.5(b)Allied World Articles Amendment Stockholder Approval

3.3(a)Allied World Benefit Plan

3.16(a)Allied World Board

3.2(a)(i)Allied World Board Election Stockholder Approval

9.3Allied World Board Recommendation

3.3(a)Allied World Bylaws

3.1(a)(ii)Allied World Capital Stock

9.3Allied World Disclosure Schedule

Article IIIAllied World Equity Award Shares

3.2(a)(i)Allied World ERISA Affiliate

3.16(d)Allied World Insurance Approvals

3.4Allied World Leased Real Properties

3.13Allied World Material Adverse Effect

9.3Allied World Material Contract

3.20(a)Allied World Measurement Shares

3.2(a)(i)Allied World Outstanding Shares

3.2(a)(i)Allied World P/C Subsidiary

3.24Allied World Permits

9.3Allied World Real Property Leases

3.13Allied World Reinsurance Contracts

3.27(a)Allied World Requisite Stockholder Vote

3.3(a)Allied World Risk-Based Capital Reports

3.30Allied World RSU

9.3Allied World SEC Documents

3.6(a)Allied World Secured Credit Facility

9.3Allied World Share Issuance Stockholder Approval

3.3(a)Allied World Shares

2.1(a)(iii)Allied World Statutory Statements

3.25(a)Allied World Stock Option

9.3 A-72




---



##### Table of Contents



SectionDefined Term

NumberAllied World Stock Plans

9.3Allied World Stock-Based Award

9.3Allied World Stockholders Meeting

3.3(a)Allied World Subsidiary

3.2(c)Allied World Unsecured Credit Facility

9.3Alternate Termination Fee

6.6(c)Antitrust Law

9.3Bankruptcy and Equity Exception

3.3(b)Book-Entry Shares

2.2(a)Business Day

9.3Certificate of Merger

1.3Certificates

2.2(a)Closing

1.2Closing Date

1.2Code

2.3(a)(i)Commercial Register Ruling

6.13Competing Transaction

5.5(c)Confidentiality Agreement

6.2Contract

9.3Converted Transatlantic Stock-Based Award

2.3(a)(ii)DB

3.14Delaware Law

1.1Effective Time

1.3End Date

8.1(e)Environmental Law

9.3Equity Equivalents

9.3ERISA

3.16(a)Exchange Act

9.3Exchange Agent

2.2(a)Exchange Fund

2.2(a)Exchange Ratio

2.1(a)(iii)Expense Reimbursement

6.6(b)FCPA

3.6(e)Forfeitures and Cashless Settlement

9.3Form S-4

3.8GAAP

9.3Governmental Entity

9.3Grant Date

3.2(a)(iii)HSR Act

3.4Indemnified Party

6.5(a)Independent Director

9.3 A-73




---



##### Table of Contents



SectionDefined Term

NumberIndependent Allied World Director

9.3Independent Transatlantic Director

9.3Injunction

9.3Insurance Contracts

3.31(a)Insurance Law

9.3Insurance Regulators

9.3Intellectual Property

9.3IRS

3.16(a)Joint Proxy Statement/Prospectus

6.1(a)knowledge of Allied World

9.3knowledge of Transatlantic

9.3Law

9.3Liens

3.1(b)(ii)Maximum Premium

6.5(b)Measurement Date

3.2(a)(i)Merger

1.1Merger Consideration

2.1(a)(iii)Merger Sub

PreambleMerger Sub Common Stock

2.1(a)(i)Merger Sub Member Approval

3.3(a)Moelis

4.14Moelis Fairness Opinion

4.14Newco Holdings

9.9(b)Non-Target Party

5.5(c)NYSE

2.2(e)Order

9.3Organizational Documents

9.3Participation Certificate

3.2(a)(ii)Partner Agent

9.3Partner Agent Agreement

9.3PBGC

3.16(d)Permitted Liens

9.3Person

9.3Prior Allied World Parent

Article IIIReconstituted Allied World Board

6.9(a)Reconstituted Allied World Board Written Consent

6.9(b)Redomestication

3.33Representatives

9.3Requisite Lender Consents

6.4(a)Requisite Regulatory Approvals

7.1(d)Restated Articles

1.5(b) A-74




---



##### Table of Contents



SectionDefined Term

NumberSAP

9.3SEC

Article IIISecond Request

6.3(c)(v)Securities Act

9.3Share Issuance

9.3SOX

3.6(d)Stock Options

9.3Stock-Based Awards

9.3Subsidiaries

3.2(c)Subsidiary

3.2(c)Substantial Compliance

9.3Superior Proposal

5.5(f)Supplemental Indenture

6.4(b)Surviving Corporation

1.1Target Board

5.5(e)Target Party

5.5(c)Tax

9.3Tax Return

9.3Taxing Authority

9.3Termination Fee

6.6(e)Transatlantic

PreambleTransatlantic Acquisition Agreement

5.5(b)Transatlantic Acquisition Proposal

5.5(b)Transatlantic Agents

4.31(b)Transatlantic Benefit Plan

4.16(a)Transatlantic Board

2.3(a)Transatlantic Board Recommendation

4.3(a)Transatlantic Bylaws

4.1(b)Transatlantic Charter

4.1(b)Transatlantic Common Stock

2.1(a)(ii)Transatlantic Disclosure Schedule

Article IVTransatlantic ERISA Affiliate

4.16(d)Transatlantic Indenture

6.4(b)Transatlantic Insurance Approvals

4.4Transatlantic Insurance Intermediaries

4.32Transatlantic Leased Real Properties

4.13Transatlantic Material Adverse Effect

9.3Transatlantic Material Contract

4.20(a)Transatlantic P/C Subsidiary

4.24Transatlantic Permits

9.3Transatlantic Preferred Stock

4.2(a)(i) A-75




---



##### Table of Contents



SectionDefined Term

NumberTransatlantic Real Property Leases

4.13Transatlantic Reinsurance Contracts

4.27(a)Transatlantic Requisite Stockholder Vote

4.3(a)Transatlantic Restricted Shares

9.3Transatlantic Risk-Based Capital Reports

4.30Transatlantic Rollover Option

2.3(a)(i)Transatlantic RSU

9.3Transatlantic SAR

9.3Transatlantic SEC Documents

4.6(a)Transatlantic Statutory Statements

4.25(a)Transatlantic Stock Option

9.3Transatlantic Stock Plans

9.3Transatlantic Stock-Based Award

9.3Transatlantic Stockholders Meeting

4.3(a)Transatlantic Subsidiary

3.2(c)  A-76




---



##### Table of Contents



Annex B




---



##### Table of Contents



B-2




---



##### Table of Contents



DEUTSCHE
    BANK SECURITIES INC.
   B-3




---



##### Table of Contents



Annex C          Company Common
    Stock Company Agreement Allied World Merger
    Sub Transaction Exchange Ratio Allied World Shares




---



##### Table of Contents



MOELIS &
    COMPANY LLC
   C-2




---



##### Table of Contents



Annex
    D  STATUTEN

ARTICLES OF ASSOCIATIONder

ofTransAllied Group Holdings, Ltd

TransAllied Group Holdings, LtdTransAllied Group Holdings, AG

TransAllied Group Holdings, AGI.  Firma, Sitz und Zweck der Gesellschaft

I.  Name, Domicile and Purpose of the CompanyArtikel 1  Firma, Sitz und Dauer der
    Gesellschaft

Article 1  Corporate Name, Registered Office and
    DurationUnter der Firma

Under the corporate nameTransAllied Group Holdings, Ltd

TransAllied Group Holdings, LtdTransAllied Group Holdings, AG

TransAllied Group Holdings, AGbesteht eine Aktiengesellschaft gemäss Artikel 620 ff. OR
    mit Sitz in Baar. Die Dauer der Gesellschaft ist
    unbeschränkt.

a Company exists pursuant to Article 620 et seq. of the Swiss
    Code of Obligations (hereinafter CO) having its
    registered office in Baar. The duration of the Company is
    unlimited.Artikel 2  Zweck

Article 2  Purposea)

Hauptzweck der Gesellschaft ist der Erwerb, das Halten und der
    Verkauf von Beteiligungen an Unternehmen, insbesondere, jedoch
    nicht ausschliesslich, solcher der Direkt- und
    Rückversicherungsbranche.

a)

The main purpose of the Company is to acquire, hold, manage and
    to sell equity participations, including in insurance and
    reinsurance companies as well as in other companies.Die Gesellschaft kann Finanz- und Management-Transaktionen
    ausführen. Sie kann Zweigniederlassungen und
    Tochtergesellschaften im In- und Ausland errichten.



The Company may carry out finance and management transactions
    and set up branches and subsidiaries in Switzerland and abroad.Die Gesellschaft kann im In- und Ausland Grundstücke
    erwerben, halten und veräussern.



The Company may acquire, hold and sell real estate in
    Switzerland and abroad.b)

Die Gesellschaft kann alle Geschäfte tätigen, die
    geeignet sind, den Zweck der Gesellschaft zu fördern und
    mit dem Zweck im Zusammenhang stehen.

b)

The Company may engage in all types of transactions and may take
    all measures that appear appropriate to promote the purpose of
    the Company or that are related to the same.II.  Aktienkapital und Aktien
    Partizipationskapital

II.  Share Capital and Shares, Participation
    CapitalArtikel 3a  Aktienkapital

Article 3a  Share Capitala)

Das Aktienkapital der Gesellschaft beträgt CHF
    [          ]
    und ist eingeteilt in
    [          ]
    auf den Namen lautende Aktien im Nennwert von CHF 15.00 je
    Aktie. Das Aktienkapital ist vollständig liberiert.

a)

The share capital of the Company amounts to CHF
    [          ]
    and is divided into
    [          ]
    registered shares with a par value of CHF 15.00 per share. The
    share capital is fully paid-in.b)

Auf Beschluss der Generalversammlung können jederzeit
    Namenaktien in Inhaberaktien und Inhaberaktien in Namenaktien
    umgewandelt werden.

b)

Upon resolution of the General Meeting of Shareholders,
    registered shares may be converted into bearer shares and bearer
    shares may be converted into registered shares, at any time.




---



##### Table of Contents



Artikel 3b  Partizipationskapital

Article 3b  Participation Capitala)

Das Partizipationskapital der Gesellschaft beträgt CHF
    3035100 und ist eingeteilt in 202340
    Partizipationsscheine lautend auf den Namen im Nennwert von CHF
    15.00 je Partizipationsschein. Das Partizipationskapital ist
    vollständig liberiert.

a)

The participation capital of the Company amounts to CHF
    3,035,100 and is divided into 202,340 registered participation
    certificates with a par value of CHF 15.00 per participation
    certificate. The participation capital is fully paid-in.b)

Partizipationsscheine haben dieselben Rechte auf Dividenden und
    einen Liquidationsanteil wie Namenaktien.
    Partizipationsscheine haben keine Stimm- oder andere
    Mitwirkungsrechte in der Generalversammlung.
    Wird das Aktienkapital und das Partizipationskapital
    gleichzeitig im gleichen Verhältnis erhöht, haben die
    Aktionäre nur Bezugsrechte auf Aktien und die Partizipanten
    nur auf Partizipationsscheine. Bezugsrechte und
    Vorwegzeichnungsrechte von Partizipanten sind ausgeschlossen,
    wenn und soweit diese Rechte der Aktionäre ausgeschlossen
    werden.

b)

The participation certificates have the same entitlement to
    dividends and liquidation distributions as the registered
    shares.
    Participation certificates have no voting or other participation
    rights in the General Meeting of Shareholders.
    If the share capital and the participation capital are increased
    at the same time and in the same proportion, shareholders may
    subscribe only to shares and participants only to participation
    certificates. Pre-emptive and advance subscription rights of
    participants are excluded, if and to the extent such rights of
    the shareholders are excluded.Änderungen dieses Artikels 3b lit. b) bedürfen
    der Zustimmung der absoluten Mehrheit der an der
    Partizipantenversammlung vertretenen Partizipationsscheine.



Any amendment to this Article 3b paragraph b) requires the
    consent of the participants holding the absolute majority of the
    participation certificates represented at a meeting of the
    participants.c)

Auf Beschluss der Generalversammlung können jederzeit
    Partizipationsscheine in Namenaktien umgewandelt werden, wobei
    diese Umwandlung (sowie die Änderung dieses Artikles 3b
    lit. c)) nur mit Zustimmung der Partizipanten, welche die
    absolute Mehrheit der an der Partizipantenversammlung
    vertretenen Partizipationsscheine halten, zulässig ist.
    Eine solche Umwandlung bedarf einer Herabsetzung des
    Partizipationskapitals unter gleichzeitiger Erhöhung des
    Aktienkapitals.

c)

Upon resolution of the General Meeting of Shareholders, all or
    any portion of the participation certificates may be converted
    into registered shares, at any time, whereby any such conversion
    (as well as any amendment to this Article 3b paragraph c))
    requires the consent of the participants holding the absolute
    majority of the participation certificates represented at a
    meeting of the participants. Any such conversion requires a
    decrease of the participation capital with a simultaneous
    increase of the share capital.d)

Die Gesellschaft ist im Rahmen des gesetzlich Zulässigen
    berechtigt, mit Partizipanten Vereinbarungen über den
    Rückkauf der Partizipationsscheine, insbesondere
    Andienungsrechte (Put Optionen) der Partizipanten, im Austausch
    gegen Bargeld oder Namenaktien (aus dem Eigenbestand oder
    Namenaktien aus genehmigtem Kapital) im Verhältnis 1:1 zu
    vereinbaren.

d)

As far as legally admissible the Company has, at any time, the
    right to buy back, in particular by granting put rights, all or
    any portion of the participation certificates in exchange for
    cash, registered shares out of the treasury shares or registered
    shares out of authorized share capital at an exchange ratio of
    1:1. D-2




---



##### Table of Contents



e)

Den Partizipanten wird, gleichzeitig mit und in der gleichen
    Form wie den Aktionären, die Einberufung der
    Generalversammlung zusammen mit den
    Verhandlungsgegenständen und den Anträgen des
    Verwaltungsrats sowie derjeniger Aktionäre, welche die
    Traktandierung oder die Durchführung einer
    Generalversammlung verlangt haben, bekannt gegeben. Jeder
    Beschluss der Generalversammlung ist unverzüglich am
    Gesellschaftssitz und allfälligen eingetragenen
    Zweigniederlassungen zur Einsicht der Partizipanten aufzulegen.
    Die Partizipanten sind in der Bekanntgabe darauf hinzuweisen.

e)

The summon of a General Meeting of Shareholders shall be
    notified to the participants, together with the matters on the
    agenda and the proposals of the Board of Directors and of those
    shareholders who have demanded that a meeting be called or that
    matters be included in the agenda, on the same date and in the
    same manner as notified to the shareholders. Each resolution of
    the General Meeting of Shareholders shall promptly be made
    available for inspection by the participants at the
    Companys registered office and registered branch offices
    (if any). The participants shall be informed thereof in the
    notice.Artikel 4  Bedingtes Aktienkapital für
    Anleihensobligationen und ähnliche Instrumente der
    Fremdfinanzierung

Article 4  Conditional Share Capital for Bonds and
    Similar Debt Instrumentsa)

Das Aktienkapital der Gesellschaft wird im Maximalbetrag von CHF
    15000000 durch Ausgabe von höchstens
    1000000 vollständig zu liberierenden
    Namenaktien mit einem Nennwert von CHF 15.00 je Aktie
    erhöht, bei und im Umfang der Ausübung von Wandel-
    und/oder Optionsrechten, welche im Zusammenhang mit von der
    Gesellschaft oder ihren Tochtergesellschaften emittierten oder
    noch zu emittierenden Anleihensobligationen, Notes oder
    ähnlichen Obligationen oder Schuldverpflichtungen
    eingeräumt wurden/werden, einschliesslich Wandelanleihen.

a)

The share capital of the Company shall be increased by an amount
    not exceeding CHF 15,000,000 through the issue of a maximum of
    1,000,000 registered shares, payable in full, each with a par
    value of CHF 15.00 through the exercise of conversion
    and/or
    option or warrant rights granted in connection with bonds, notes
    or similar instruments, issued or to be issued by the Company or
    by subsidiaries of the Company, including convertible debt
    instruments. D-3




---



##### Table of Contents



b)

Das Bezugsrecht der Aktionäre ist für diese Aktien
    ausgeschlossen. Das Vorwegzeichnungsrecht der Aktionäre
    und, soweit vorhanden, dasjenige der Partizipanten in Bezug auf
    neue Anleihensobligationen, Notes oder ähnlichen
    Obligationen oder Schuldverpflichtungen kann durch Beschluss des
    Verwaltungsrats zu folgenden Zwecken eingeschränkt oder
    ausgeschlossen werden: Finanzierung und Refinanzierung des
    Erwerbs von Unternehmen, Unternehmensteilen oder Beteiligungen,
    von durch die Gesellschaft geplanten neuen Investitionen oder
    bei der Emission von Options- und Wandelanleihen über
    internationale Kapitalmärkte sowie im Rahmen von
    Privatplatzierungen. Der Ausschluss des Vorwegszeichnungsrechts
    ist ausschliesslich unter folgenden kumulativen Bedingungen
    zulässig: (1) Die Instrumente müssen zu
    Marktkonditionen emittiert werden, (2) die Frist,
    innerhalb welcher die Options- und Wandelrechte ausgeübt
    werden können, darf ab Zeitpunkt der Emission des
    betreffenden Instruments bei Optionsrechten 10 Jahre und bei
    Wandelrechten 20 Jahre nicht überschreiten
    und (3) der Umwandlungs- oder Ausübungspreis
    für die neuen Aktien hat mindestens dem Marktpreis zum
    Zeitpunkt der Emission des betreffenden Instruments zu
    entsprechen.

b)

Shareholders pre-emptive rights are excluded with respect
    to these shares. Shareholders advance subscription rights
    and, if existing, such rights of participants with regard to new
    bonds, notes or similar instruments may be restricted or
    excluded by decision of the Board of Directors in order to
    finance or re-finance the acquisition of companies, parts of
    companies or holdings, or new investments planned by the
    Company, or in order to issue convertible bonds and warrants on
    the international capital markets or through private placement.
    If advance subscription rights are excluded, then (1) the
    instruments are to be placed at market conditions, (2) the
    exercise period is not to exceed ten years from the date of
    issue for warrants and twenty years for conversion rights and
    (3) the conversion or exercise price for the new shares is to be
    set at least in line with the market conditions prevailing at
    the date on which the instruments are issued.c)

Der Erwerb von Namenaktien durch Ausübung von Wandel- und
    Optionsrechten sowie sämtliche weiteren Übertragungen
    von Namenaktien unterliegen den
    Übertragungsbeschränkungen gemäss Artikel 8 der
    Statuten.

c)

The acquisition of registered shares through the exercise of
    conversion rights or warrants and any further transfers of
    registered shares shall be subject to the restrictions specified
    in Article 8 of the Articles of Association.Artikel 5  Bedingtes Aktienkapital für
    Mitarbeiterbeteiligungen

Article 5  Conditional Share Capital for Employee
    Benefit Plansa)

Das Aktienkapital der Gesellschaft wird im Maximalbetrag von CHF
    [          ]
    durch Ausgabe von höchstens
    [          ]
    vollständig zu liberierenden Namenaktien mit einem Nennwert
    von CHF 15.00 je Aktie erhöht bei und im Umfang der
    Ausübung von Optionen, welche Mitarbeitern der Gesellschaft
    oder Tochtergesellschaften sowie Beratern, Direktoren oder
    anderen Personen, welche Dienstleistungen für die
    Gesellschaft oder ihre Tochtergesellschaften erbringen,
    eingeräumt wurden/werden.

a)

The share capital of the Company shall be increased by an amount
    not exceeding CHF
    [          ]
    through the issue from time to time of a maximum of
    [          ]
    registered shares, payable in full, each with a par value of CHF
    15.00, in connection with the exercise of option rights granted
    to any employee of the Company or a subsidiary, and any
    consultant, director or other person providing services to the
    Company or a subsidiary. D-4




---



##### Table of Contents



b)

Bezüglich dieser Aktien ist das Bezugsrecht der
    Aktionäre ausgeschlossen. Neue Aktien dieser Art
    können unter dem aktuellen Marktpreis ausgegeben werden.
    Der Verwaltungsrat bestimmt bei einer solchen Emission die
    spezifischen Konditionen, inkl. den Preis der Aktien.

b)

Shareholders pre-emptive rights shall be excluded with
    regard to the issuance of these shares. These new registered
    shares may be issued at a price below the current market price.
    The Board of Directors shall specify the precise conditions of
    issue including the issue price of the shares.c)

Der Erwerb von Namenaktien im Zusammenhang mit
    Mitarbeiterbeteiligungen sowie sämtliche weiteren
    Übertragungen von Namenaktien unterliegen den
    Übertragungsbeschränkungen gemäss Artikel 8 der
    Statuten.

c)

The acquisition of registered shares in connection with employee
    participation and any further transfers of registered shares
    shall be subject to the restrictions specified in Article 8 of
    the Articles of Association.Artikel 5a  Bedingtes Kapital für bestehende
    Aktionärsoptionen

Article 5a  Conditional Capital for Existing
    Shareholder Warrantsa)

Das Aktienkapital der Gesellschaft wird im Maximalbetrag von CHF
    30000000 durch Ausgabe von höchstens
    2000000 vollständig zu liberierenden
    Namenaktien mit einem Nennwert von CHF 15.00 je Aktie
    erhöht bei und im Umfang der Ausübung von Optionen,
    welche American International Group, Inc. eingeräumt wurden.

a)

The share capital of the Company shall be increased by an amount
    not exceeding CHF 30,000,000, through the issue from time to
    time of a maximum of 2,000,000 registered shares payable in
    full, each with a par value of CHF 15.00, in connection with the
    exercise of shareholder warrants granted to American
    International Group, Inc.b)

Bezüglich dieser Aktien ist das Bezugsrecht der
    Aktionäre bzw. Partizipanten ausgeschlossen. Neue Aktien
    dieser Art können zum oder unter dem aktuellen Marktpreis
    ausgegeben werden. Der Verwaltungsrat bestimmt bei einer solchen
    Emission die spezifischen Konditionen, inkl. den Ausgabepreis
    der Aktien.

b)

Shareholders and participants pre-emptive rights
    shall be excluded with regard to the issuance of these shares.
    These new registered shares may be issued at a price equal to or
    below the current market price. The Board of Directors shall
    specify the precise conditions of issue including the issue
    price of the shares.c)

Der Erwerb von Namenaktien im Zusammenhang mit
    Aktionärsoptionen sowie sämtliche weiteren
    Übertragungen von Namenaktien unterliegen den
    Übertragungsbeschränkungen gemäss Artikel 8 der
    Statuten.

c)

The acquisition of registered shares in connection with the
    shareholder warrants and any further transfers of registered
    shares shall be subject to the restrictions specified in Article
    8 of the Articles of Association.Artikel 6  Genehmigtes Kapital zu allgemeinen
    Zwecken

Article 6  Authorized Share Capital for General
    Purposesa)

Der Verwaltungsrat ist ermächtigt, das Aktienkapital
    jederzeit bis
    [          ]
    im Maximalbetrag von CHF
    [          ]
    durch Ausgabe von höchstens
    [          ]
    vollständig zu liberierenden Namenaktien mit einem Nennwert
    von CHF 15.00 je Aktie zu erhöhen.

a)

The Board of Directors is authorized to increase the share
    capital from time to time and at any time until [two years
    from special meeting date] by an amount not exceeding CHF
    [          ]
    through the issue of up to
    [          ]
    fully paid up registered shares with a par value of CHF 15.00
    each.b)

Erhöhungen auf dem Weg der Festübernahme sowie
    Erhöhungen in Teilbeträgen sind gestattet. Der
    Ausgabebetrag, die Art der Einlage, der Zeitpunkt der
    Dividendenberechtigung sowie die Zuweisung nicht ausgeübter
    Bezugsrechte werden durch den Verwaltungsrat bestimmt.

b)

Increases through firm underwriting or in partial amounts are
    permitted. The issue price, the date of dividend entitlement,
    the type of consideration (including the contribution or
    underwriting in kind) as well as the allocation of non exercised
    pre-emptive rights shall be determined by the Board of
    Directors. D-5




---



##### Table of Contents



c)

Der Verwaltungsrat ist ermächtigt, Bezugsrechte der
    Aktionäre auszuschliessen und diese Dritten zuzuweisen,
    wenn die neu auszugebenden Aktien zu folgenden Zwecken verwendet
    werden: (1) Fusionen, Übernahmen von Unternehmen
    oder Beteiligungen, Finanzierungen und Refinanzierungen solcher
    Fusionen und Übernahmen sowie anderweitige
    Investitionsvorhaben (unter Einschluss von
    Privatplatzierungen), (2) Stärkung der
    regulatorischen Kapitalbasis der Gesellschaft oder ihrer
    Tochtergesellschaften (unter Einschluss von
    Privatplatzierungen), (3) zur Erweiterung des
    Aktionariats, (4) zum Zwecke der
    Mitarbeiterbeteiligung oder (5) zum Umtausch von
    Partizipationsscheinen sowie zum Rückkauf von
    Partizipationsscheinen gemäss Artikel 3b lit. d) der
    Statuten im Austausch gegen Namenaktien aus genehmigtem Kapital.

c)

The Board of Directors is authorized to exclude the pre-emptive
    rights of the shareholders and to allocate them to third parties
    in the event of the use of shares for the purpose of (1)
    mergers, acquisitions of enterprises or participations,
    financing
    and/or
    refinancing of such mergers and acquisitions and of other
    investment projects (including by way of private placements);
    (2) improving the regulatory capital position of the company or
    its subsidiaries (including by way of private placements); (3)
    broadening the shareholder constituency; (4) the participation
    of employees; or (5) an exchange of participation certificates
    as well as a buy-back of participation certificates in exchange
    of registered shares according to Article 3b paragraph d) of the
    Articles of Association out of authorized share capital.d)

Die Zeichnung sowie der Erwerb von Namenaktien aus genehmigtem
    Kapital zu allgemeinen Zwecken sowie sämtliche weiteren
    Übertragungen von Namenaktien unterliegen den
    Übertragungsbeschränkungen gemäss Artikel 8 der
    Statuten.

d)

The subscription as well as the acquisition of registered shares
    out of authorized share capital for general purposes and any
    further transfers of registered shares shall be subject to the
    restrictions specified in Article 8 of the Articles of
    Association.Artikel 7  Form der Aktien, Bucheffekten

Article 7  Form of Shares, Intermediated
    Securitiesa)

Die Gesellschaft kann ihre Namenaktien in der Form von
    Einzelurkunden, Globalurkunden oder Wertrechte ausgeben und
    jederzeit ohne Genehmigung der Aktionare eine bestehende Form in
    eine andere Form von Namenaktien umwandeln. Ein Aktionär
    oder eine Aktionärin hat keinen Anspruch auf Umwandlung
    seiner oder ihrer Namenaktien in eine andere Form oder auf Druck
    und Auslieferung von Urkunden. Mit der Zustimmung des
    Aktionärs oder der Aktionärin kann die Gesellschaft
    ausgestellte Urkunden, die bei ihr eingeliefert werden,
    ersatzlos annullieren. Jeder Aktionar und jede Aktionarin
    können jedoch von der Gesellschaft jederzeit die
    Ausstellung einer Bescheinigung über die von ihm oder ihr
    gemass Aktienregister gehaltenen Namenaktien verlangen.

a)

The Company may issue its registered shares in the form of
    individual certificates, global certificates
    and/or
    uncertificated securities and convert one form into another form
    of registered shares at any time and without the approval of the
    shareholders. A shareholder has no entitlement to demand a
    conversion of the form of the registered shares or the printing
    and delivery of share certificates. With the consent of the
    shareholder, the Company may cancel issued certificates which
    are returned to it without replacement. Each shareholder may,
    however, at any time request a written confirmation from the
    Company of the registered shares held by such shareholder, as
    reflected in the share register of the Company.b)

Die Gesellschaft kann für die Namenaktien Bucheffekten
    schaffen. Die Übertragung von Bucheffekten und die
    Bestellung von Sicherheiten an Bucheffekten richten sich nach
    den Bestimmungen des Bucheffektengesetzes. Die Gesellschaft kann
    als Bucheffekten ausgestaltete Namenaktien aus dem
    entsprechenden Verwahrungssystem zurückziehen.

b)

The Company may create intermediated securities for the
    registered shares. The transfer of intermediated securities and
    furnishing of collateral in intermediated securities must
    conform with the regulations of the Intermediary-Held Securities
    Act. The Company may withdraw registered shares issued as
    intermediary-held securities from the respective custody system. D-6




---



##### Table of Contents



c)

Die Übertragung von Namenaktien, einschliesslich der daraus
    entspringenden Rechte, richtet sich nach dem anwendbaren Recht
    und diesen Statuten. Eine Übertragung durch Zession bedarf
    zusätzlich der Anzeige an die Gesellschaft; die Bank,
    welche abgetretene Namenaktien für die Aktionäre
    verwaltet, kann von der Gesellschaft über die erfolgte
    Zession benachrichtigt werden. Die Übertragungen
    unterliegen den Beschränkungen von Artikel 8 der Statuten.

c)

Transfers of registered shares and the rights arising therefrom
    are subject to the applicable law and these Articles of
    Association. A transfer by way of assignment, in addition,
    requires notice of the assignment to the Company; the bank which
    handles the book entries of the assigned registered shares on
    behalf of the shareholders may be notified by the Company of
    such assignment. Transfers are subject to the limitations of
    Article 8 of the Articles of Association.d)

Für den Fall, dass die Gesellschaft Aktienzertifikate
    druckt und ausgibt, müssen die Aktienzertifikate die
    Unterschrift von zwei zeichnungsberechtigten Personen tragen.
    Mindestens eine dieser Personen muss Mitglied des
    Verwaltungsrats sein. Faksimile-Unterschriften sind erlaubt.

d)

If the Company prints and issues share certificates, such share
    certificates shall bear the signature of two duly authorized
    signatories of the Company, at least one of which shall be a
    member of the Board of Directors. These signatures may be
    facsimile signatures.e)

Die vorstehenden Bestimmungen dieses Artikels 7 der Statuten
    gelten mutatis mutandis auch für Partizipationsscheine.

e)

The foregoing provisions of this Article 7 of the Articles of
    Association apply mutatis mutandis to participation certificates.Artikel 8  Aktienregister,
    Partizipationsscheinregister und Beschränkungen der
    Übertragbarkeit

Article 8  Share Register, Participation
    Certificate Register and Transfer Restrictionsa)

Für die Namenaktien und die Partizipationsscheine wird je
    ein Register (Aktienbuch oder Partizipationsscheinregister)
    geführt. Darin werden die Eigentümer und Nutzniesser
    mit Namen und Vornamen, Wohnort, Adresse und
    Staatsangehörigkeit (bei juristischen Personen mit Sitz)
    eingetragen.

a)

Registered shares and participation certificates are registered
    in a register (share register and participation certificate
    register, respectively). The name of the owner or the
    usufructuary shall be entered in either the share register or
    the participation certificate register with his/her name,
    address, domicile and citizenship (domicile in case of legal
    entities).b)

Zur Eintragung ins Aktienbuch als Aktionär mit Stimmrecht
    ist die Zustimmung des Verwaltungsrats notwendig. Die Eintragung
    als Aktionär mit Stimmrecht kann in den in Artikel 8 lit.
    c), e), f) und g) der Statuten festgehaltenen
    Fällen abgelehnt werden. Lehnt der Verwaltungsrat die
    Eintragung des Erwerbers als Aktionär mit Stimmrecht ab,
    benachrichtigt er diesen innerhalb von 20 Tagen seit dem Eingang
    des Eintragungsgesuchs. Nicht anerkannte Erwerber werden als
    Aktionäre ohne Stimmrecht ins Aktienbuch eingetragen. Die
    entsprechenden Aktien gelten in der Generalversammlung als nicht
    vertreten. Diese Regelung gilt mutatis mutandis auch für
    Partizipationsscheine bzw. die Eintragung im
    Partizipationsscheinregister.

b)

Entry in the share register of registered shares with voting
    rights is subject to the approval of the Board of Directors.
    Entry of registered shares with voting rights may be refused
    based on the grounds set out in Article 8 paragraph c), e), f)
    and g) of the Articles of Association. If the Board of Directors
    refuses to register the acquirer as shareholder with voting
    rights it shall notify the acquirer of such refusal within 20
    days upon receipt of the application. Non-recognized acquirers
    shall be entered in the share register as shareholders without
    voting rights. The corresponding shares shall be considered as
    not represented in the General Meeting of Shareholders. D-7




---



##### Table of Contents



c)

Eine natürliche oder juristische Person wird in dem Umfang
    nicht als Aktionärin mit Stimmrecht im Aktienbuch
    eingetragen, in welchem die von ihr direkt oder indirekt im
    Sinne von Artikel 14 der Statuten gehaltene oder sonstwie
    kontrollierte Beteiligung 10% oder mehr des im Handelsregister
    eingetragenen Aktienkapitals beträgt. Dabei gelten
    Personen, die durch Absprache, Kapital, Stimmkraft, Leitung,
    Syndikat oder auf andere Weise miteinander verbunden sind, als
    eine Person. Im Umfang, in welchem eine derartige Beteiligung
    10% oder mehr des Aktienkapitals beträgt, werden die
    entsprechenden Aktien ohne Stimmrecht ins Aktienbuch eingetragen.

c)

No individual or legal entity may, directly or through
    Constructive Ownership (as defined in Article 14 of the Articles
    of Association below) or otherwise control voting rights with
    respect to 10% or more of the registered share capital recorded
    in the Commercial Register.  Those associated through capital,
    voting power, joint management or in any other way, or joining
    for the acquisition of shares, shall be regarded as one person.
    The registered shares exceeding the limit of 10% shall be
    entered in the share register as shares without voting rights.d)

[reserviert]

d)

[reserved]e)

Die oben erwähnte 10% Limite gilt auch bei der Zeichnung
    oder dem Erwerb von Aktien, welche mittels Ausübung von
    Options- oder Wandelrechten aus Namen- oder Inhaberpapieren oder
    sonstigen von der Gesellschaft oder Dritten ausgestellten
    Wertpapieren oder welche mittels Ausübung von erworbenen
    Bezugsrechten aus Namen- oder Inhaberaktien gezeichnet oder
    erworben werden oder welche durch Umwandlung von
    Partizipationsscheinen in Namenaktien gemäss Artikel 3b
    lit. c) der Statuten ausgegeben werden. Im Umfang, in
    welchem eine daraus resultierende Beteiligung 10% oder mehr des
    Aktienkapitals beträgt, werden die entsprechenden Aktien
    ohne Stimmrecht ins Aktienbuch eingetragen.

e)

The limit of 10% of the registered share capital also applies to
    the subscription for, or acquisition of, registered shares by
    exercising option or convertible rights arising from registered
    or bearer securities or any other securities issued by the
    Company or third parties, as well as by means of exercising
    purchased pre-emptive rights arising from either registered or
    bearer shares or which arise out of the conversion of
    participation certificates into registered shares according to
    Article 3b paragraph c) of the Articles of Association. The
    registered shares exceeding the limit of 10% shall be entered in
    the share register as shares without voting rights.f)

Der Verwaltungsrat verweigert die Eintragung ins Aktienbuch als
    Aktionär mit Stimmrecht oder entscheidet über die
    Löschung eines bereits eingetragenen Aktionärs mit
    Stimmrecht aus dem Aktienbuch, wenn der Erwerber auf sein
    Verlangen hin nicht ausdrücklich erklärt, dass er die
    Aktien im eigenen Namen und auf eigene Rechnung erworben hat.

f)

The Board of Directors shall reject entry of registered shares
    with voting rights in the share register or shall decide on
    their cancellation when the acquirer or shareholder upon request
    does not expressly state that he/she has acquired or holds the
    shares in his/her own name and for his/her own account.g)

Der Verwaltungsrat verweigert die Eintragung natürlicher
    und juristischer Personen, welche Namenaktien für Dritte
    halten und dies schriftlich gegenüber der Gesellschaft
    erklären, als Treuhänder/Nominees mit
    unbeschränktem Stimmrecht ins Aktienbuch oder entscheidet
    über die Löschung aus dem Aktienbuch, wenn sie sich
    nicht dazu verpflichten, gegenüber der Gesellschaft auf
    deren schriftliches Verlangen hin jederzeit die Namen, Adressen
    und Beteiligungsquoten derjenigen Personen offenzulegen,
    für welche sie die Namenaktien halten.

g)

The Board of Directors shall reject entry of individuals and
    legal entities who hold registered shares for third parties and
    state this in writing to the Company, as nominees in the share
    register with voting rights without limitation or shall decide
    on their cancellation when the nominee does not undertake the
    obligation to disclose at any time to the Company at its written
    request the names, addresses and share holdings of each person
    for whom such nominee is holding shares. D-8




---



##### Table of Contents



h)

Der Verwaltungsrat kann in besonderen Fällen Ausnahmen von
    den obgenannten Beschränkungen (Artikel 8 lit. c), e),
    f) und g) der Statuten) genehmigen. Sodann kann der
    Verwaltungsrat nach Anhörung der betroffenen Personen deren
    Eintragungen im Aktienbuch als Aktionäre rückwirkend
    streichen, wenn diese durch falsche Angaben zustande gekommen
    sind oder wenn die betroffene Person die Auskunft gemäss
    Artikel 8 lit. f) der Statuten verweigert.

h)

The Board of Directors may in special cases approve exceptions
    to the above regulations (Article 8 paragraph c), e), f) and g)
    of the Articles of Association). The Board of Directors is in
    addition authorized, after due consultation with the person
    concerned, to delete with retroactive effect entries in the
    share register which were effected on the basis of false
    information
    and/or to
    delete entries in case the respective person refuses to make the
    disclosers according to Article 8 paragraph f) of the Articles
    of Association.i)

Solange ein Erwerber nicht Aktionär mit Stimmrecht im Sinne
    von Artikel 8 der Statuten geworden ist, kann er weder die
    entsprechenden Stimmrechte noch die weiteren mit diesem in
    Zusammenhang stehenden Rechte wahrnehmen.

i)

Until an acquirer becomes a shareholder with voting rights for
    the shares in accordance with this Article 8 of the Articles of
    Association, he/she may neither exercise the voting rights
    connected with the shares nor other rights associated with the
    voting rights.III.  Organisation

III.  OrganizationA.  Die Generalversammlung

A.  The General Meeting of ShareholdersArtikel 9  Befugnisse

Article 9  AuthoritiesDie Generalversammlung ist das oberste Organ der Gesellschaft.
    Sie hat die folgenden unübertragbaren Befugnisse:

The General Meeting of Shareholders is the supreme corporate
    body of the Company. It has the following non-transferable
    powers:1.

die Festsetzung und Änderung der Statuten;

1.

to adopt and amend the Articles of Association;2.

die Wahl der Mitglieder des Verwaltungsrats und der
    Revisionsstelle;

2.

to elect and remove the members of the Board of Directors and
    the Auditors;3.

die Genehmigung des Jahresberichts, der Jahresrechnung und der
    Konzernrechnung sowie die Beschlussfassung über die
    Verwendung des Bilanzgewinns, insbesondere die Festsetzung der
    Dividende;

3.

to approve the statutory required annual report, the annual
    accounts and the consolidated financial statements as well as to
    pass resolutions regarding the allocation of profits as shown on
    the balance sheet, in particular to determine the dividends;4.

die Entlastung der Mitglieder des Verwaltungsrats; und

4.

to grant discharge to the members of the Board of Directors; and5.

die Beschlussfassung über die Gegenstände, die der
    Generalversammlung durch das Gesetz oder die Statuten
    vorbehalten sind oder welche ihr vom Verwaltungsrat vorgelegt
    werden.

5.

to pass resolutions regarding items which are reserved to the
    General Meeting of Shareholders by law or by the Articles of
    Association or which are presented to it by the Board of
    Directors.Artikel 10  Generalversammlungen sowie deren
    Einberufung

Article 10  Meetings and Convening the Meetinga)

Die ordentliche Generalversammlung findet alljährlich
    innerhalb von sechs Monaten nach Abschluss des
    Geschäftsjahres statt. Zeitpunkt und Ort, welcher im In-
    oder Ausland sein kann, werden durch den Verwaltungsrat bestimmt.

a)

The ordinary General Meeting of Shareholders shall be held
    annually within six months after the close of the business year
    at such time and at such location, which may be within or
    outside Switzerland, as determined by the Board of Directors. D-9




---



##### Table of Contents



b)

Ausserordentliche Generalversammlungen werden gemäss den
    gesetzlichen Bestimmungen durch Beschluss der
    Generalversammlung, durch die Revisionsstelle oder den
    Verwaltungsrat einberufen. Ausserdem müssen
    ausserordentliche Generalversammlungen einberufen werden, wenn
    stimmberechtigte Aktionäre, welche zusammen mindestens 10%
    des Aktienkapitals vertreten, es verlangen.

b)

Extraordinary General Meetings of Shareholders may be called in
    accordance with statutory provisions by resolution of the
    General Meeting of Shareholders, the Auditors or the Board of
    Directors, or by shareholders with voting powers, provided they
    represent at least 10% of the share capital.Artikel 11  Einladung

Article 11  NoticeDie Einladung erfolgt mindestens 20 Tage vor der Versammlung
    durch Publikation im Schweizerischen Handelsamtsblatt (SHAB).

Notice of the General Meeting of Shareholders shall be given by
    publication in the Swiss Official Gazette of Commerce (SOGC) at
    least 20 days before the date of the meeting.Artikel 12  Traktanden

Article 12  Agendaa)

Der Verwaltungsrat nimmt die Traktandierung der
    Verhandlungsgegenstände vor.

a)

The Board of Directors shall state the matters on the agenda.b)

Ein oder mehrere mit Stimmrecht eingetragene Aktionäre
    können, gemäss den gesetzlichen Bestimmungen, vom
    Verwaltungsrat die Traktandierung eines Verhandlungsgegenstandes
    verlangen. Das Begehren um Traktandierung ist schriftlich unter
    Angabe der Verhandlungsgegenstände und der Anträge an
    den Präsidenten des Verwaltungsrats mindestens 60 Tage vor
    der Generalversammlung einzureichen.

b)

One or more registered shareholders may in compliance with the
    legal requirements demand that matters be included in the
    agenda. Such demands shall be in writing and shall specify the
    items and the proposals and has to be submitted to the Chairman
    up to 60 days before the date of the meeting.c)

Über Anträge zu nicht gehörig angekündigten
    Verhandlungsgegenständen, welche auch nicht im Zusammenhang
    mit einem gehörig traktandierten Verhandlungsgegenstand
    stehen, können keine Beschlüsse gefasst werden, ausser
    in den gesetzlich vorgesehenen Fällen.

c)

No resolution shall be passed on matters proposed only at the
    General Meeting of Shareholders and which have no bearing on any
    of the proposed items of the agenda, apart from those exceptions
    permitted by law.d)

In der Einberufung der Versammlung werden die Traktanden und die
    Anträge des Verwaltungsrats sowie derjenigen Aktionäre
    bekanntgegeben, welche die Traktandierung oder die
    Durchführung einer Generalversammlung verlangt haben.

d)

The notice of the meeting shall state the matters on the agenda
    and the proposals of the Board of Directors and of those
    shareholders who have demanded that a meeting be called or that
    matters be included in the agenda.Artikel 13  Vorsitz und Protokoll

Article 13  Chair, Minutesa)

Den Vorsitz in der Generalversammlung führt der
    Präsident des Verwaltungsrats, bei dessen Verhinderung ein
    anderes vom Verwaltungsrat bezeichnetes Mitglied des
    Verwaltungsrats oder ein anderer von der Generalversammlung
    für den betreffenden Tag bezeichneter Vorsitzender.

a)

The General Meeting of Shareholders shall be chaired by the
    Chairman, or, in his absence, by another member of the Board of
    Directors, or by another Chairman elected for that day by the
    General Meeting of Shareholders. D-10




---



##### Table of Contents



b)

Der Vorsitzende bezeichnet einen Protokollführer sowie die
    Stimmenzähler, welche keine Aktionäre sein müssen.

b)

The Chairman designates a Secretary for the minutes as well as
    the scrutinizers who need not be shareholders.c)

Der Verwaltungsrat ist verantwortlich für die
    Protokollführung. Das Protokoll wird vom Vorsitzenden und
    vom Protokollführer unterzeichnet.

c)

The Board of Directors is responsible for the keeping of the
    minutes, which are to be signed by the Chairman and by the
    Secretary.Artikel 14  Stimmrecht und Vertreter

Article 14  Voting Rights and Shareholders
    Proxiesa)

Jede Aktie berechtigt, unter Vorbehalt der Einschränkungen
    gemäss Artikel 8 der Statuten und Artikel 14 lit.
    b) und c) untenstehend, zu einer Stimme. Jeder
    stimmberechtigte Aktionär kann seine Aktien durch eine
    andere von ihm schriftlich bevollmächtigte Person vertreten
    lassen, welche kein Aktionär sein muss.

a)

Each share is entitled to one vote subject to the provisions of
    Article 8 of the Articles of Association and Article 14
    paragraph b) and c) below. Each shareholder may be represented
    at the General Meeting of Shareholders by another person who is
    authorized by a written proxy and who does not need to be a
    shareholder.b)

Ungeachtet lit. a) vorstehend gilt Folgendes: Sobald und
    solange eine natürliche oder juristische Person Namenaktien
    entsprechend 10% oder mehr des im Handelsregister eingetragenen
    Aktienkapitals der Gesellschaft kontrolliert, ist diese bei
    ordentlichen oder ausserordentlichen Generalversammlungen
    maximal zu den gemäss nachfolgender Formel zu eruierenden
    Stimmen (abgerundet auf die nächst tiefere, runde Zahl)
    berechtigt:

b)

Notwithstanding paragraph a) above, if and so long as there are
    Controlled Shares representing 10% or more of the registered
    share capital recorded in the Commercial Register, regardless of
    the identity of the holder thereof, such Controlled Shares shall
    be entitled to cast votes at any General Meeting of Shareholders
    or Extraordinary General Meeting of Shareholders in the
    aggregate equal to the number (rounded down to the nearest whole
    number) obtained from the following formula:[(T
     ̧
    100) x 10] − 1



[(T
     ̧
    100) x 10] − 1Wobei gilt:  T ist gleich der Gesamtanzahl
    der Stimmrechte, welche auf dem im Handelsregister eingetragenen
    gesamten Aktienkapital der Gesellschaft verliehen werden.



Where:  T is the aggregate number of votes
    conferred by all the registered share capital recorded in the
    Commercial Register.c)

Als kontrolliert im Sinne dieser Statuten gilt die
    Gesamtheit der einer stimmberechtigten Klasse angehörenden
    Aktien der Gesellschaft, welche von einer Person:

c)

For purposes of these Articles, Controlled Shares
    means all shares of the Company, of all classes entitled to vote
    owned by a person in the aggregate whether:(aa)

direkt, als auch



(aa)

directly or(bb)

ndirekt, definiert aufgrund der nachfolgenden
    Zuordnungskriterien, gehalten werden:



(bb)

due to Constructive Ownership, defined as ownership deemed to
    exist after application of the following rules of ownership
    attribution:(i)

Zuordnung aufgrund einer Personengesellschaft (Partnership)
    oder einer anderen Gesellschaft, einem Trust oder eines
    Nachlasses.





(i)

Attribution from any partnership, estate, trust, or
    corporation.Mit Ausnahme der Regelung in
    Unterabsatz (D) untenstehend:







Except as provided in subparagraph (D) below: D-11




---



##### Table of Contents



(A)

Aktien, welche direkt oder indirekt von oder für einer/eine
    Personengesellschaft (Partnership) oder einem/einen
    Nachlass gehalten werden, gelten als anteilsmässig von den
    betreffenden Partnern oder Begünstigten gehalten.







(A)

Shares owned, directly or indirectly, by or for a partnership or
    estate shall be considered as owned proportionately by its
    partners or beneficiaries.(B)

Aktien, welche direkt oder indirekt von oder für
    einem/einen Trust gehalten werden, gelten als von den
    Begünstigten dieses Trusts im Verhältnis ihres
    rechnungsmässigen Anteils gehalten; allerdings
    gelten Aktien, welche direkt oder indirekt von oder für
    einem/einen Teil eines Trusts gehalten werden, der gemäss
    den anwendbaren Steuergesetzen (einschliesslich US
    Bundeseinkommenssteuerrechts) einer Person gehört, als von
    dieser Person gehalten gelten. Im hier verwendeten Sinne wird
    unter einem Trust, wenn vom Verwaltungsrat so bestimmt, nicht
    auch ein Trust verstanden, der in den Vereinigten Staaten oder
    einer anderen Jurisdiktion gegründet oder organisiert ist
    und der Teil eines von der US Bundeseinkommenssteuer bzw. von
    den Steuern der betreffenden anderen Jurisdiktionen befreiten
    Aktienvergütungs-, Renten- oder Gewinnbeteiligungsplans
    eines Mitarbeiters ist, welcher ausschliesslich dem Zweck der
    Begünstigung von Mitarbeitern oder deren Begünstigten
    dient.







(B)

Shares owned, directly or indirectly by or for a trust shall be
    considered as owned by its beneficiaries in proportion to the
    actuarial interest of such beneficiaries in such trust;
    provided, however, that shares owned, directly or
    indirectly, by or for any portion of a trust of which a person
    is considered to be the owner by applicable tax laws, including
    for U.S. federal income tax purposes, shall be considered owned
    by such person.  For purposes of the foregoing, if so determined
    by the Board of Directors, a trust shall not include a trust
    created or organized in the United States or any other
    jurisdiction and forming part of a stock bonus, pension or
    profit sharing plan of an employer for the exclusive benefit of
    employees or their beneficiaries that is exempt from U.S.
    federal income taxation respectively from applicable taxes of
    such other jurisdiction.(C)

Wenn eine Person direkt oder indirekt wertmässig mit 10%
    oder mehr an einer Gesellschaft beteiligt ist oder die Anteile
    für diese Person gehalten werden, so gelten die der
    Gesellschaft direkt oder indirekt gehörenden Aktien als von
    dieser Person gehalten, dies im Verhältnis des Werts der
    dieser Person gehörenden Aktien zum Gesamtwert aller Aktien
    der Gesellschaft.







(C)

If 10% or more in value of the shares in a corporation is owned
    directly or indirectly, by or for any person, such person shall
    be considered as owning the shares owned, directly or
    indirectly, by or for such corporation, in that proportion which
    the value of the shares which such person so owns bears to the
    value of all the shares in such corporation. D-12




---



##### Table of Contents



(D)

Wenn mehr als 50% der Stimmrechte aller stimmberechtigten
    Aktienklassen einer Gesellschaft von einer Personengesellschaft
    (Partnership) oder einer anderen Gesellschaft, einem
    Nachlass oder einem Trust direkt oder indirekt gehalten werden,
    so werden Betreffenden im Rahmen dieses
    Unterabsatzes (i) sämtliche Stimmrechte der
    betreffenden Gesellschaft zugerechnet.







(D)

For purposes of this subparagraph (i), if a partnership, estate,
    trust, or corporation owns, directly or indirectly, more than
    50% of the total combined voting power of all classes of shares
    entitled to vote in a corporation, it shall be considered as
    owning all the shares entitled to vote.(ii)

Zuordnung bei Personengesellschaften (Partnerships) oder
    anderen Gesellschaften, bei einem Nachlass oder einem Trust:





(ii)

Attribution to partnerships, estates, trusts, and corporations:(A)

Aktien, welche direkt oder indirekt von oder für
    einem/einen Partner oder einem/einen Berechtigten eines
    Nachlasses gehalten werden, gelten als von der betreffenden
    Personengesellschaft (Partnership) oder vom betreffenden
    Nachlass gehalten.







(A)

Shares owned, directly or indirectly, by or for a partner or a
    beneficiary of an estate shall be considered as owned by the
    partnership or estate. D-13




---



##### Table of Contents



(B)

Aktien, welche direkt oder indirekt von oder für
    einem/einen Begünstigten eines Trusts gehalten werden,
    gelten als vom Trust gehalten, sofern der Anspruch des
    Begünstigten am Trust nicht lediglich geringer und
    ungewisser Natur ist (remote contingent interest);
    vorausgesetzt aber, dass direkt oder indirekt einer
    Person gehörende Aktien, welche gemäss den anwendbaren
    Steuergesetzen (einschliesslich US Bundeseinkommenssteuer)
    Eigentümerin eines Trustanteils ist, als vom Trust gehalten
    gelten. Ein ungewisser Anspruch eines Begünstigten eines
    Trusts ist im Rahmen des voranstehenden Satzes gering, wenn
    unter grösstmöglicher Ausschöpfung des
    Ermessensbereichs des Trustees zugunsten dieses
    Begünstigten, der rechnungsmässige Wert des Anspruchs
    5% oder weniger des Trustvermögens ausmacht. Unter einem
    Trust im Sinne des Unterabsatzes (B) wird, wenn vom
    Verwaltungsrat so bestimmt, nicht auch ein Trust verstanden, der
    in den Vereinigten Staaten oder einer anderen Jurisdiktion
    gegründet oder organisiert ist und der Teil eines von der
    US Bundeseinkommenssteuer bzw. von den Steuern der betreffenden
    anderen Jurisdiktionen befreiten Aktienvergütungs-, Renten-
    oder Gewinnbeteiligungsplans eines Mitarbeiters ist, welcher
    ausschliesslich dem Zweck der Begünstigung von Mitarbeitern
    oder deren Begünstigten dient.







(B)

Shares owned, directly or indirectly, by or for a beneficiary of
    a trust shall be considered as owned by the trust, unless such
    beneficiarys interest in the trust is a remote contingent
    interest; provided, however, that shares owned,
    directly or indirectly, by or for a person who is considered the
    owner of any portion of a trust by applicable tax laws,
    including for U.S. federal income tax purposes, shall be
    considered owned by the trust.  For purposes of the preceding
    sentence, a contingent interest of a beneficiary in a trust
    shall be considered remote if, under the maximum exercise of
    discretion by the trustee in favour of such beneficiary, the
    value of such interest, computed actuarially, is 5% or less of
    the value of the trust property.  For purposes of this
    subparagraph (B), if so determined by the Board of Directors, a
    trust shall not include a trust created or organized in the
    United States or any other jurisdiction and forming part of a
    stock bonus, pension or profit sharing plan of an employer for
    the exclusive benefit of employees or their beneficiaries that
    is exempt from U.S. federal income taxation respectively from
    applicable taxes of such other jurisdiction. D-14




---



##### Table of Contents



(C)

Wenn eine Person direkt oder indirekt wertmässig mit 50%
    oder mehr an einer Gesellschaft beteiligt ist oder die Anteile
    für diese Person gehalten werden, so gelten die der
    Gesellschaft direkt oder indirekt gehörenden Aktien als von
    dieser Person gehalten; allerdings ist die vorangehende
    Bestimmung nicht anwendbar, wenn sie aufgrund des Haltens
    eigener Aktien durch die Gesellschaft zur Anwendung käme.







(C)

If 50% or more in value of the shares in a corporation is owned,
    directly or indirectly, by or for any person, such corporation
    shall be considered as owning the shares owned, directly or
    indirectly, by or for such person; provided,
    however, the foregoing rule shall not be applied so as to
    consider a corporation as owning its own shares.(iii)

Kontrollvereinbarungen.  Wenn einer Person
    aufgrund einer Vereinbarung, eines Vertrages, einer
    Übereinkunft oder einer sonstigen Beziehung betreffend eine
    oder mehrere Aktien der Gesellschaft ganz oder
    anteilsmässig (A) Einfluss auf Stimmrechte
    zukommt (einschliesslich das Recht zur Ausübung oder zur
    Bestimmung der Ausübung des Stimmrechts an diesen Aktien);
    und/oder (B) Einfluss auf die
    Verfügungsberechtigung dieser Aktien zukommt
    (einschliesslich das Recht, diese Aktien zu veräussern oder
    die Veräusserung anzuordnen), so gelten diese Aktien als
    von der betreffenden Person gehalten.





(iii)

Control arrangements.  If a person through any
    arrangement, contract, understanding, relationship, or otherwise
    regarding one or more shares of the Company has or shares (A)
    voting power which includes the power to vote, or to direct the
    voting of, such share;
    and/or (B)
    investment power which includes the power to dispose, or to
    direct the disposition of, such share(s), such share(s) shall be
    considered as owned by such person.(iv)

Optionsrechte, Wandelrechte oder ähnliche
    Rechte.  Wenn eine Person ein Recht hat, eine oder
    mehrere Aktien zu erwerben, einschliesslich (A) durch
    Ausübung eines Options-, Wandel- oder eines ähnlichen
    Rechts, (B) durch Wandlung einer
    Sicherheit; (C) durch die Möglichkeit, einen
    Trust, ein Vermögensverwaltungskonto oder eine
    ähnliche Vereinbarung für nichtig zu erklären;
    oder (D) durch die automatische Aufhebung eines
    Trusts, eines Vermögensverwaltungskontos oder einer
    ähnlichen Vereinbarung, so gelten diese Aktien als von der
    betreffenden Person gehalten. Als Option, mit welcher Aktien
    erworben werden können, gelten in diesem Sinne
    Optionsrechte (und jede einzelne einer Serie von Optionen), mit
    denen erstgenannte Option erhalten werden kann.





(iv)

Options, warrants or similar rights.  If any
    person has a right to acquire one or more shares, including (A)
    by way of an option, warrant or similar right; (B) through the
    conversion of a security; (C) pursuant to the power to revoke a
    trust, discretionary account, or similar arrangement; or (D)
    pursuant to the automatic termination of a trust, discretionary
    account or similar arrangement, such shares shall be considered
    as owned by such person. For this purpose, an option to acquire
    such an option, and each one of a series of such options, shall
    be considered as an option to acquire such shares. D-15




---



##### Table of Contents



(v)

Familienmitglieder. Eine natürliche Person hält
    ihre Aktien direkt oder indirekt von oder
    für (A) ihren oder seine Ehepartner/in
    (ausgenommen Ehepartner, die rechtlich aufgrund eines
    Scheidungsurteils oder einer Verfügung zum Getrenntleben
    [separate maintenance] getrennt sind);
    und (B) ihre oder seine Kinder, Enkel und Eltern. Ein
    im Rechtssinne adoptiertes Kind gilt im Sinne dieses
    Unterabsatzes (v) als Kind der betreffenden
    natürlichen Person.





(v)

Members of a family.  An individual shall be considered
    as owning the shares owned, directly or indirectly by or for (A)
    his or her spouse (other than a spouse who is legally separated
    from the individual under a decree of divorce or separate
    maintenance); and (B) his or her children, grandchildren and
    parents.  For purposes of this subparagraph (v), a legally
    adopted child of an individual shall be treated as a child of
    such individual by blood.(vi)

Keine Umgehung.  Wenn eine Person Trusts,
    Vollmachten, übrige Vertretungsberechtigungen oder sonstige
    vertragliche Abreden errichtet oder benutzt in der Absicht, die
    wirtschaftliche Berechtigung an den Aktien zu verdecken oder die
    Fälligkeit einer wirtschaftlichen Berechtigung an den
    Aktien, die sich gemäss einem Plan oder Programm ergeben
    würde, verhindert, um die Bestimmungen dieser Statuten zu
    umgehen, so gelten die Aktien als von dieser Person gehalten.





(vi)

No circumvention.  If a person creates or uses
    a trust, proxy, power of attorney, pooling arrangement or any
    other contract, arrangement, or device with the purpose or
    effect of divesting such person of beneficial ownership of
    shares of the Company or preventing the vesting of such
    beneficial ownership as part of a plan or scheme to evade the
    provisions of these articles of association, such shares shall
    be considered as owned by such person.(vii)

Anwendbarkeitsbestimmungen.  Im Rahmen der
    obenstehenden Unterabsätze (i)  (vi)
    dieses Artikels 14 lit. c) (bb) gilt folgendes:





(vii)

Rules of application.  For purposes of
    subparagraphs (i) to  (vi) of this subparagraph (bb) of
    subparagraph c) of Article 14, the following shall apply: D-16




---



##### Table of Contents



(A)

Aktien, die indirekt von einer Person gemäss den
    Unterabsätzen (i), (ii), (iii),
    (iv), (v) und (vi) gehalten werden, gelten im
    Rahmen der Anwendung dieser Unterabsätze als
    tatsächlich dieser Person gehörend; allerdings
    sollen (I) Aktien, die indirekt von einer
    natürlichen Person gemäss
    Unterabsatz (v) obenstehend gehalten werden, nicht in
    der Weise von ihm oder ihr als gehalten gelten, dass unter
    (nochmaliger) Anwendung von Unterabsatz (v) der/die
    entsprechend andere als indirekt berechtigt gilt;
    (II) Aktien, die gemäss Unterabsatz
    (ii) obenstehend indirekt von einer Personengesellschaft
    (Partnership) oder einer anderen Gesellschaft, einem
    Nachlass oder Trust gehalten werden, nicht in der Weise als
    gehalten gelten, dass unter Anwendung von
    Unterabsatz (i) obenstehend (betreffend Zuordnung an
    einen Partner, Begünstigten, Eigentümer oder
    Gesellschafter einer Personengesellschaft (Partnership) oder
    anderen Gesellschaft, eines Nachlasses oder Trusts) der/die
    entsprechend andere als indirekt berechtigt gilt; und
    (III) Aktien, die als von einer natürlichen Person
    gemäss den Unterabsätzen
    (iv) oder (v) obenstehend gehalten gelten, von
    ihm oder ihr als gemäss Unterabsatz (iv) gehalten
    gelten.







(A)

Shares constructively owned by a person by reasons of the
    application of subparagraphs (i), (ii), (iii), (iv), (v) and
    (vi) shall, for purposes of applying such subparagraphs, be
    considered as actually owned by such person; provided,
    however, that (I) shares constructively owned by an
    individual by reason of the application of subparagraph (v)
    above shall not be considered as owned by him or her for
    purposes of again applying such subparagraph (v) in order to
    make another the constructive owner of such shares; (II) shares
    constructively owned by a partnership, estate, trust or
    corporation by reason of the application of subparagraph (ii)
    above shall not be considered as owned by it for purposes of
    applying subparagraph (i) above (relating to attribution to a
    partner, beneficiary, owner or shareholder from a partnership,
    estate, trust or corporation) in order to make another the
    constructive owner of such shares; and (III) if shares may be
    considered as owned by an individual under subparagraphs (iv) or
    (v) above, such shares shall be considered as owned by him or
    her under subparagraph (iv).(B)

Aktien, welche aufgrund mehrerer Bestimmungen gemäss den
    Unterabsätzen (i)  (v) dieses Artikels
    14 lit. c) (bb) gehalten werden oder von mehreren Personen,
    sollen gemäss derjenigen Regel zugeordnet werden, welche
    der betreffenden Person/den betreffenden Personen den
    höchsten Prozentsatz an Aktien zuweist.







(B)

For purposes of any one determination, shares which may be owned
    under more than one of the rules of subparagraphs (i) through
    (v) above of subparagraph (bb) of subparagraph c) of Article 14,
    or by more than one person, shall be owned under that
    attribution rule which imputes to the person, or persons,
    concerned the largest total percentage of such shares. D-17




---



##### Table of Contents



d)

[reserviert]

d)

[reserved]e)

Der Verwaltungsrat hat das Recht, die Bestimmungen dieses
    Artikels 14 auszulegen, die Berechtigung von natürlichen
    und juristischen Personen an Aktien der Gesellschaft zur
    Sicherstellung der Umsetzung der Bestimmungen dieses Artikels 14
    festzulegen sowie letzte Berichtigungen (welche er nach den
    Umständen für gerecht und vernünftig hält)
    an der Gesamtzahl der mit den Aktien verbundenen Stimmen
    vorzunehmen, um sicherzustellen, dass keine Person gesamthaft
    direkt oder indirekt 10% oder mehr der gesamten Stimmkraft aller
    stimmberechtigten Aktienklassen erhält. Bei der Auslegung
    kann der Verwaltungsrat Gesetze, Reglemente und übrige
    Bestimmungen sowie Rechtsprechung aus dem In- und Ausland
    beiziehen, welche diesem Artikel 14 grundsätzlich
    ähnlich sind.

e)

The Board of Directors shall have the authority to interpret the
    provisions of this Article 14 and to determine the ownership of
    shares by any individual or entity so as to fully implement the
    provisions of this Article 14 and to make such final adjustments
    to the aggregate number of votes attaching to any shares that
    they consider fair and reasonable in all the circumstances to
    ensure that no Person will have in the aggregate direct or
    Constructive Ownership of 10% or more of the total combined
    voting power of all classes of shares entitled to vote.  In so
    interpreting this Article 14, the Board of Directors may look to
    laws, rules, regulations and court decisions (including of
    countries outside of Switzerland) having language substantially
    similar to this Article 14.f)

Der Verwaltungsrat kann in besonderen Fällen Ausnahmen von
    den vorerwähnten Stimmrechtsbeschränkungen
    gewähren.

f)

The Board of Directors may in special cases allow exceptions
    from this limitation on voting rights.Artikel 15  Beschlüsse

Article 15  Resolutionsa)

Die Generalversammlung ist beschlussfähig, wenn zwei oder
    mehr Personen, welche als Aktionäre oder
    Stimmrechtsvertreter mindestens fünfzig Prozent (50%) der
    gesamten ausstehenden Aktien (entsprechend den im
    Handelsregister eingetragenen Aktien minus den von der
    Gesellschaft direkt oder indirekt gehaltenen eigenen Aktien)
    vertreten, während der Generalversammlung anwesend sind.
    Falls die Gesellschaft einen Aktionär hat, genügt die
    Anwesenheit eines Aktionärs oder Stimmrechtsvertreters, um
    ein gültiges Quorum zu erstellen.

a)

The General Meeting of Shareholders can validly pass resolutions
    if two or more persons present in person and representing in
    person or by proxy in excess of fifty percent (50%) of the total
    issued and outstanding shares (being the total number of issued
    shares as registered in the commercial register minus shares
    held in treasury) are present throughout the meeting; provided,
    that if the Company shall at any time have only one shareholder,
    one shareholder present in person or by proxy shall constitute a
    quorum.b)

Die Generalversammlung fasst ihre Beschlüsse und vollzieht
    ihre Wahlen, soweit das Gesetz oder diese Statuten nichts
    anderes vorsehen, mit der einfachen Mehrheit der abgegebenen
    Stimmen (wobei Enthaltungen, sog. Broker Nonvotes, leere oder
    ungültige Stimmen für die Bestimmung des Mehrs nicht
    berücksichtigt werden).

b)

Unless otherwise required by law or the Articles of Association,
    the General Meeting of Shareholders shall pass its resolutions
    and carry out its elections with the simple majority of the
    votes cast (whereby abstentions, broker non-votes, blank or
    invalid ballots shall be disregarded for purposes of
    establishing the majority). D-18




---



##### Table of Contents



c)

Der Vorsitzende bestimmt das Abstimmungsverfahren. Erfolgen die
    Wahlen nicht elektronisch, haben sie mittels Stimmzettel zu
    erfolgen, wenn mindestens 50 anwesende Aktionäre dies per
    Handzeichen verlangen. Die Weisungserteilung durch die
    Aktionäre an ihre an der Versammlung anwesenden Vertreter
    via Internet oder Telefon kann durch den Vorsitzenden gestattet
    werden.

c)

The Chairman of the General Meeting of Shareholders shall
    determine the voting procedure. Provided that the voting is not
    done electronically, voting shall be by ballot if more than 50
    of the shareholders present so demand by a show of hands. The
    Chairman may permit the shareholders to give their instructions
    by means of the internet or telephone to their representatives
    who are present at the meeting.Artikel 16  Quorum

Article 16  QuorumsEin Beschluss der Generalversammlung, der mindestens zwei
    Drittel der vertretenen Stimmen und die absolute Mehrheit der
    vertretenen Aktiennennwerte auf sich vereinigt, ist erforderlich
    für:

A resolution of the General Meeting of Shareholders passed by at
    least two thirds of the represented share votes and the absolute
    majority of the represented shares par value is required for:1.

die in Artikel 704 Absatz 1 OR aufgeführten
    Geschäfte, d.h. für:

1.

the cases listed in Article 704 paragraph 1 CO, i.e.:(a)

die Änderung des Gesellschaftszwecks;



(a)

the change of the company purpose;(b)

die Einführung von Stimmrechtsaktien;



(b)

the creation of shares with privileged voting rights;(c)

die Beschränkung der Übertragbarkeit von Namenaktien
    oder Partizipationsscheinen;



(c)

the restriction of the transferability of registered shares or
    participation certificates;(d)

eine genehmigte oder bedingte Kapitalerhöhung;



(d)

an increase of capital, authorized or subject to a condition;(e)

die Kapitalerhöhung aus Eigenkapital, gegen Sacheinlage
    oder zwecks Sachübernahme und die Gewährung von
    besonderen Vorteilen;



(e)

an increase of capital out of equity, against contribution in
    kind, or for the purpose of acquisition of assets and the
    granting of special benefits;(f)

die Einschränkung oder Aufhebung des Bezugsrechts;



(f)

the limitation or withdrawal of pre-emptive rights;(g)

die Verlegung des Sitzes der Gesellschaft;



(g)

the change of the domicile of the Company;(h)

die Auflösung der Gesellschaft.



(h)

the liquidation of the Company.2.

Fusion, Spaltung und Umwandlung der Gesellschaft (zwingende
    gesetzliche Bestimmungen vorbehalten);

2.

the merger, de-merger or conversion of the Company (subject to
    mandatory law);3.

die Lockerung und die Aufhebung von
    Übertragungsbeschränkungen der Namenaktien oder
    Partizipationsscheine;

3.

the alleviating or withdrawal of restrictions upon the transfer
    of registered shares or participation certificates;4.

die Umwandlung von Namenaktien in Inhaberaktien und umgekehrt
    sowie die Umwandlung von Partizipationsscheinen in Aktien;

4.

the conversion of registered shares into bearer shares and vice
    versa as well as the conversion of participation certificates
    into shares;5.

die Abberufung von Mitgliedern des Verwaltungsrats im Sinne von
    Artikel 705 Absatz 1 OR; und

5.

the dismissal of any member of the Board of Directors according
    to Article 705 paragraph 1 CO; and D-19




---



##### Table of Contents



6.

die Änderung oder Aufhebung der Artikel 8, 14, 15 und 16
    der Statuten.

6.

the amendment or elimination of the provisions of Article 8,
    Article 14 and Article 15 of the Articles of Association as well
    as those contained in this Article 16.B.  Der Verwaltungsrat

B.  The Board of DirectorsArtikel 17  Wahl, Konstituierung und
    Entschädigung

Article 17  Election, Constitution and
    Indemnificationa)

Der Verwaltungsrat besteht aus wenigstens 3 und höchstens
    13 Mitgliedern. Die Amtsdauer des Verwaltungsrats beträgt
    drei Jahre. Die erste Amtsdauer wird für jedes Mitglied bei
    der ersten Wahl durch den Verwaltungsrat so festgelegt, dass
    jedes Jahr eine gleiche Anzahl Verwaltungsräte neu bzw.
    wiedergewählt werden müssen und spätestens nach
    drei Jahren sämtliche Mitglieder des Verwaltungsrats sich
    einer Wiederwahl haben stellen müssen. Der Verwaltungsrat
    bestimmt die Reihenfolge der Wiederwahl, wobei die erste
    Amtszeit einzelner Mitglieder des Verwaltungsrats weniger als
    drei Jahre betragen wird. Diesbezüglich ist unter einem
    Jahr der Zeitraum zwischen zwei ordentlichen,
    aufeinanderfolgenden Generalversammlungen zu verstehen. Im Falle
    einer Zu- oder Abnahme der Anzahl der Mitglieder des
    Verwaltungsrats, bestimmt der Verwaltungsrat die neue
    Reihenfolge der Wiederwahlen. Infolgedessen kann die Amtsdauer
    einzelner Mitglieder des Verwaltungsrats weniger als drei Jahre
    betragen. Die Amtsdauer läuft mit dem Tag der nächsten
    ordentlichen Generalversammlung ab, vorbehältlich
    vorgängigen Rücktritts oder Abwahl. Wenn vor Ablauf
    dieser Amtsdauer Verwaltungsräte ersetzt werden, läuft
    die Amtsdauer der neu hinzu gewählten Mitglieder mit der
    ordentlichen Amtsdauer ihrer Vorgänger ab.

a)

The Board of Directors shall consist of a minimum of three and a
    maximum of thirteen members. The term shall be three years. Each
    year the Board of Directors shall be renewed by rotation, to the
    extent possible in equal numbers and in such manner that, after
    a period of three years, all members will have been subject to
    re-election. The Board of Directors shall establish the order of
    rotation, whereas the first term of some members may be less
    than three years. In this regard, one year shall mean the period
    between two ordinary General Meetings of Shareholders. In the
    event of increase or a decrease in the number of Directors, the
    Board of Directors shall establish a new order of rotation. In
    this context the terms of office of some members may be less
    than three years. The term of office of a member of the Board of
    Directors shall, subject to prior resignation or removal, expire
    upon the day of the next ordinary General Meeting of
    Shareholders. Newly-appointed members shall complete the term of
    office of their predecessors.Die Mitglieder des Verwaltungsrats können
    wiedergewählt werden.



Members of the Board of Directors may be re-elected.b)

Der Verwaltungsrat konstituiert sich selber. Der Verwaltungsrat
    wählt seinen Präsidenten sowie einen
    Vizepräsidenten. Er bezeichnet einen Sekretär; dieser
    braucht nicht dem Verwaltungsrat anzugehören. Die
    Organisation des Verwaltungsrats wird im Organisationsregelement
    festgelegt. Der Vorsitzende hat den Stichentscheid.

b)

The Board of Directors shall constitute itself. It appoints its
    Chairman, a Vice-Chairman and a Secretary who does not need to
    be a member of the Board of Directors. The Organization of the
    Board of Directors is provided for in the Organizational
    Regulations. The Chairman shall have the casting vote. D-20




---



##### Table of Contents



c)

Die Mitglieder des Verwaltungsrats erhalten für ihre
    Tätigkeit eine Entschädigung, deren Höhe vom
    Verwaltungsrat festgelegt wird. Die Mitglieder des
    Verwaltungsrats sind ebenfalls berechtigt, an
    Mitarbeiterbeteiligungsprogrammen der Gesellschaft teilzunehmen.

c)

Members of the Board of Directors shall receive compensation for
    their work in an amount to be determined by the Board. They may
    also participate in the Companys employee benefit plans.d)

Soweit es das Gesetz zulässt, werden die Mitglieder des
    Verwaltungsrats sowie der Geschäftsleitung aus dem
    Gesellschaftsvermögen schadlos gehalten für
    Forderungen, Kosten, Verluste, Schäden, Bussen, und
    sonstige Auslagen, welche ihnen im Zusammenhang mit ihrer
    Tätigkeit für die Gesellschaft entstehen bzw. gegen
    diese erhoben werden, es sei denn, ein rechtskräftiger
    Entscheid eines Gerichts oder einer anderen Behörde stelle
    fest, dass die betreffende Person die obgenannten Auslagen und
    Verpflichtungen aufgrund einer vorsätzlichen oder
    grobfahrlässigen Pflichtverletzung verursacht hat.

d)

The Company shall indemnify and hold harmless, to the fullest
    extent permitted by law, each of the members of the Board of
    Directors and officers out of the assets of the Company from and
    against all actions, costs, charges, losses, damages and
    expenses which they or any of them may incur or sustain by or by
    reason of any act done, concurred in or omitted in or about the
    execution of their duty, or supposed duty on behalf of the
    Company; provided that this indemnity shall not extend to any
    matter in which any of said persons is found, in a final
    judgement or decree not subject to appeal, to have committed
    with intent or gross negligence.Unabhängig von vorstehender Bestimmung schiesst die
    Gesellschaft den Mitgliedern des Verwaltungsrats sowie der
    Geschäftsleitung die im Zusammenhang mit oben
    erwähnten Angelegenheiten entstehenden Gerichts- und
    Anwaltskosten vor. Ausgenommen sind jene Fälle, in denen
    die Gesellschaft selbst gegen die betreffenden Personen vorgeht.
    Die Gesellschaft kann die aufgewendeten Auslagen
    zurückfordern, wenn ein Gericht oder eine andere
    zuständige Behörde rechtskräftig feststellt, dass
    die betreffende Person gegenüber der Gesellschaft eine
    Pflichtverletzung begangen hat.



Without limiting the foregoing paragraph, the Company shall
    advance court costs and attorneys fees to the members of
    the Board of Directors and officers, except in cases where the
    Company itself is plaintiff. The Company may however recover
    such advanced cost if a court or another competent authority
    holds that the member of the Board of Directors or the officer
    in question has breached its duties to the Company.Artikel 18  Oberleitung und
    -aufsicht,
    Delegation

Article 18  Ultimate Direction, Delegationa)

Der Verwaltungsrat hat die Oberleitung der Gesellschaft sowie
    die Aufsicht über die Geschäftsleitung. Er vertritt
    die Gesellschaft gegenüber Dritten und kann in allen
    Angelegenheiten Beschluss fassen, welche nicht gemäss
    Gesetz, Statuten oder Organisationsreglement einem anderen Organ
    zugewiesen sind.

a)

The Board of Directors is entrusted with the ultimate direction
    of the Company as well as the supervision of the management. It
    represents the Company towards third parties and attends to all
    matters which are not delegated to or reserved for another
    corporate body of the Company by law, the Articles of
    Association or the regulations. D-21




---



##### Table of Contents



b)

Der Verwaltungsrat kann aus seiner Mitte Ausschüssen
    bestellen oder einzelne Mitglieder bestimmen, welche mit der
    Vorbereitung und/oder Ausführung seiner Beschlüsse
    oder der Überwachung bestimmter Geschäfte betraut
    sind. Der Verwaltungsrat erlässt hierzu die notwendigen
    organisatorischen Weisungen. Mit Ausnahme der
    unübertragbaren Befugnisse kann der Verwaltungsrat die
    Geschäftsführung ganz oder teilweise an einzelne
    Mitglieder, an einen Ausschuss oder an Dritte, welche keine
    Aktionäre zu sein brauchen, übertragen. Ebenso kann
    der Verwaltungsrat vorgenannten Personen die Befugnis erteilen,
    im Namen der Gesellschaft zu zeichnen. Der Verwaltungsrat
    erlässt hierzu die notwendigen Organisationsreglemente und
    erstellt die erforderlichen Vertragsdokumente.

b)

The Board of Directors may delegate preparation
    and/or
    implementation of its decisions and supervision of the business
    to committees or to individual members of the Board of
    Directors. The organizational regulations will be defined by the
    Board of Directors. While reserving its non-transferable powers,
    the Board of Directors may further delegate the management of
    the business or parts thereof and representation of the Company
    to one or more persons, members of the Board of Directors or
    others who need not be shareholders. The Board of Directors
    shall record all such arrangements in a set of regulations for
    the Company and set up the necessary contractual framework.Artikel 19  Aufgaben

Article 19  DutiesDer Verwaltungsrat hat folgende unübertragbare und
    unentziehbare Aufgaben:

The Board of Directors has the following non-transferable and
    inalienable duties:1.

die Oberleitung der Gesellschaft und die Erteilung der
    nötigen Weisungen;



1.

to ultimately manage the Company and issue the necessary
    directives;2.

die Festlegung der Organisation;



2.

to determine the organization;3.

die Ausgestaltung des Rechnungswesens, der Finanzkontrolle sowie
    der Finanzplanung, sofern diese für die Führung der
    Gesellschaft notwendig ist;



3.

to organize the accounting, the financial control, as well as
    the financial planning if necessary for the administration of
    the Company;4.

die Ernennung und Abberufung der mit der
    Geschäftsführung und der Vertretung betrauten
    Personen, sowie die Erteilung der Zeichnungsberechtigungen;



4.

to appoint and remove the persons entrusted with the management
    and representation of the Company and to grant signatory power;5.

die Oberaufsicht über die mit der
    Geschäftsführung und der Vertretung betrauten
    Personen, namentlich im Hinblick auf die Befolgung der Gesetze,
    Statuten, Reglemente und Weisungen;



5.

to ultimately supervise the persons entrusted with the
    management, in particular with respect to compliance with the
    law and with the Articles of Association, regulations and
    directives;6.

die Erstellung des Geschäftsberichtes sowie die
    Vorbereitung der Generalversammlung und die Ausführung
    ihrer Beschlüsse;



6.

to issue the business report, as well as the preparation of the
    General Meeting of Shareholders and to implement the
    latters resolutions;7.

die Benachrichtigung des Richters im Falle der
    Überschuldung;



7.

to inform the judge in the event of over-indebtedness;8.

die Beschlussfassung über die nachträgliche
    Liberierung von nicht vollständig liberierten Aktien;



8.

to pass resolutions regarding the subsequent payment of capital
    with respect to non-fully paid-in shares; D-22




---



##### Table of Contents



9.

die Beschlussfassung über die Feststellung von
    Kapitalerhöhungen und die entsprechenden
    Statutenänderungen; und



9.

to pass resolutions confirming increases in share capital and
    regarding the amendments to the Articles of Association entailed
    thereby; and10.

die Überwachung der Fachkenntnisse der
    Spezialrevisionsstelle in den Fällen, in denen das Gesetz
    den Einsatz einer solchen vorsieht.



10.

to examine the professional qualifications of the specially
    qualified Auditors in the cases in which the law foresees the
    use of such Auditors.C.  Revisionsstelle und Spezialrevisionsstelle

C.  Auditors and Special AuditorArtikel 20  Amtsdauer, Befugnisse und Pflichten

Article 20  Term, Powers and Dutiesa)

Die Revisionsstelle wird von der Generalversammlung
    gewählt. Rechte und Pflichten der Revisionsstelle bestimmen
    sich nach den gesetzlichen Vorschriften.

a)

The Auditors shall be elected by the General Meeting of
    Shareholders and shall have the powers and duties vested in them
    by law.b)

Die Generalversammlung kann eine Spezialrevisionsstelle
    ernennen, welche die vom Gesetz bei Kapitalerhöhungen durch
    Sacheinlage oder Verrechnung verlangten
    Prüfungsbestätigungen abgibt.

b)

The General Meeting of Shareholders may appoint a special
    auditing firm entrusted with the examinations required by
    applicable law in connection with capital increases against
    contribution in kind or set-off.c)

Die Amtsdauer der Revisionsstelle und (falls eingesetzt) der
    Spezialrevisionsstelle beträgt ein Jahr. Die Amtsdauer
    beginnt mit dem Tag der Wahl und endet mit der ersten
    darauffolgenden ordentlichen Generalversammlung.

c)

The term of office of the Auditors and (if appointed) the
    special auditors shall be one year. The term of office shall
    commence on the day of election, and shall terminate on the
    first annual ordinary General Meeting of Shareholders following
    their election.IV.  Liquidation

IV.  LiquidationArtikel 21  Auflösung und Liquidation

Article 21  Dissolution and Liquidationa)

Die Generalversammlung kann jederzeit in Übereinstimmung
    mit den gesetzlichen und statutarischen Bestimmungen die
    Auflösung und die Liquidation der Gesellschaft beschliessen.

a)

The General Meeting of Shareholders may at any time resolve the
    dissolution and liquidation of the Company in accordance with
    the provisions of the law and of the Articles of Association.b)

Die Liquidation wird durch den Verwaltungsrat besorgt, sofern
    sie nicht durch einen Beschluss der Generalversammlung anderen
    Personen übertragen wird.

b)

The liquidation shall be carried out by the Board of Directors
    to the extent that the General Meeting of Shareholders has not
    entrusted the same to other persons.c)

Die Liquidation ist gemäss Artikel 742 ff. OR
    durchzuführen. Dabei können die Liquidatoren über
    das Vermögen der Gesellschaft (einschliesslich Immobilien)
    durch privaten Rechtsakt verfügen.

c)

The liquidation of the Company shall take place in accordance
    with Article 742 et seq. CO. The liquidators are authorized to
    dispose of the assets (including real estate) by way of private
    contract.d)

Das Vermögen der aufgelösten Gesellschaft wird nach
    Tilgung ihrer Schulden unter die Aktionäre nach Massgabe
    der einbezahlten Beträge verteilt.

d)

After all debts have been satisfied, the net proceeds shall be
    distributed among the shareholders in proportion to the amounts
    paid-in. D-23




---



##### Table of Contents



V.  Mitteilungen und Sprache der Statuten

V.  Notices and Language of the Articles of
    AssociationArtikel 22  Mitteilungen und Bekanntmachungen

Article 22  Communications and Announcementsa)

Das Schweizerische Handelsamtsblatt ist das offizielle
    Publikationsmittel der Gesellschaft.

a)

The official means of publication of the Company shall be the
    Swiss Official Gazette of Commerce.b)

Mitteilungen der Gesellschaft an die Aktionäre oder
    Partizipanten sowie andere Bekanntmachungen erfolgen durch
    Publikation im Schweizerischen Handelsamtsblatt.

b)

Invitations to shareholders or participants and other
    communications of the Company shall be published in the Swiss
    Official Gazette of Commerce.Artikel 23  Sprache der Statuten

Article 23  Language of the Articles of
    AssociationIm Falle eines Widerspruchs zwischen der deutschen und jeder
    anderen Fassung dieser Statuten ist die deutsche Fassung
    massgeblich.

In the event of deviations between the German version of these
    Articles of Association and any version in another language, the
    German authentic text prevails.VI.  Übergangsbestimmungen

VI.  Transitional ProvisionsArtikel 24  Sacheinlage

Article 24  Contribution in KindDie Gesellschaft übernimmt bei der Kapitalerhöhung vom
    30. November 2010 gemäss einem Sacheinlagevertrag von
    30. November 2010 (Sacheinlagevertrag) in
    Verbindung mit einem Urteil des Supreme Court von Bermuda vom
    26. November 2010 zum Umstrukturierungsplan (Scheme
    of Arrangement) vom 18. November 2010 zwischen der
    Allied World Assurance Company Holdings, Ltd, einer Gesellschaft
    mit beschränkter Haftung gemäss Bermuda Recht mit Sitz
    in Bermuda und Kotierung am New York Stock Exchange
    (Allied World Bermuda), und ihren Aktionären,
    der von den Aktionären der Allied World Bermuda genehmigt
    wurde, alle 39794636 Aktien mit Stimmrecht der
    Allied World Bermuda, welche einen Wert von insgesamt CHF
    2337536918.64 haben. Als Gegenleistung
    für diese Sacheinlage gibt die Gesellschaft insgesamt
    39794636 voll einbezahlte Namenaktien mit einem
    Nennwert von insgesamt CHF 596919540 aus an die
    Allied World Bermuda, die (1) in Bezug auf
    38313836 Namenaktien der Gesellschaft, mit einem
    Nennwert von je CHF 15.00, als indirekte Stellvertreterin
    für die Aktionäre aller Aktien mit Stimmrechten der
    Allied World Bermuda, die bei Handelsschluss an der New York
    Stock Exchange (NYSE) am 30. November 2010
    (Stichzeitpunkt) ausgegeben sind,
    und (2) in Bezug auf 1480800 Namenaktien
    der Gesellschaft, mit einem Nennwert von je CHF 15.00, im
    eigenen Namen und auf eigene Rechnung handelt. Die Gesellschaft
    weist die Differenz zwischen dem totalen Nennwert der
    ausgegebenen Namenaktien und dem Übernahmewert der
    Sacheinlage im Gesamtbetrag von CHF
    1740617378.64 den Reserven der Gesellschaft zu.

In connection with (1) the capital increase, dated November 30,
    2010, and in accordance with (2) a contribution in kind
    agreement (Contribution in Kind Agreement), dated
    November 30, 2010, in connection with the order issued by the
    Supreme Court of Bermuda on November 26, 2010 sanctioning the
    scheme of arrangement (Scheme of Arrangement) dated
    November 18, 2010, by and between Allied World Assurance Company
    Holdings, Ltd, an exempted company with limited liability under
    the laws of Bermuda, with a registered office in Bermuda and
    with common shares listed on the New York Stock Exchange
    (Allied World Bermuda), and Allied World
    Bermudas shareholders, all of the 39,794,636 voting common
    shares of Allied World Bermuda (total value of CHF
    2,337,536,918.64) have been acquired by the Company. As
    consideration for this contribution in kind, the Company has
    issued a total of 39,794,636 fully paid-in registered shares
    with a total par value of CHF 596,919,540 to Allied World
    Bermuda, which acts (i) in relation to 38,313,836 registered
    shares of the Company, each with a par value of CHF 15.00, as
    nominee for the account of the holders of all Allied World
    Bermuda voting common shares outstanding as of the close of
    trading on the New York Stock Exchange on November 30, 2010
    (Record Date), and (ii) in relation to 1,480,800
    registered shares of the Company, each with a par value of CHF
    15.00, in its own name and account.  The surplus of the
    difference between the aggregate par value of the issued
    registered shares and the total value of the contribution in
    kind, in the amount of CHF 1,740,617,378.64, is allocated to the
    reserves of the Company. D-24




---



##### Table of Contents



Die Gesellschaft übernimmt bei der Schaffung des
    Partizipationskapitals vom 30. November 2010 gemäss
    den Sacheinlagevertrag in Verbindung mit einem Urteil des
    Supreme Court von Bermuda vom 26. November 2010 zum Scheme
    of Arrangement vom 18. November 2010, alle 202340
    Aktien ohne Stimmrecht der Allied World Bermuda, welche einen
    Wert von insgesamt CHF 11885451.60 haben. Als
    Gegenleistung für diese Sacheinlage gibt die Gesellschaft
    insgesamt 202340 voll einbezahlte
    Namenpartizipationsscheine mit einem Nennwert von insgesamt CHF
    3035100 aus an die Allied World Bermuda, die als
    indirekte Stellvertreterin für die Aktionäre aller
    Aktien ohne Stimmrecht der Allied World Bermuda, die zum
    Stichzeitpunkt ausgegeben sind, handelt. Die Gesellschaft weist
    die Differenz zwischen dem totalen Nennwert der ausgegebenen
    Namenpartizipationsscheine und dem Übernahmewert der
    Sacheinlage im Gesamtbetrag von CHF 8850351.60 den
    Reserven der Gesellschaft zu.

In connection with (1) the creation of the participation
    capital, dated November 30, 2010, and in accordance with (2) the
    Contribution in Kind Agreement in connection with the order
    issued by the Supreme Court of Bermuda on November 26, 2010
    sanctioning the Scheme of Arrangement dated November 18, 2010,
    all of the 202,340 non-voting common shares of Allied World
    Bermuda (total value of CHF 11,885,451.60) have been acquired by
    the Company. As consideration for this contribution in kind, the
    Company issues 202,340 fully paid-in registered participation
    certificates with a total par value of CHF 3,035,100 to Allied
    World Bermuda, which acts as nominee for the account of the
    holders of all non-voting common shares of Allied World Bermuda
    outstanding as of the close of trading on the New York Stock
    Exchange on the Record Date. The surplus of the difference
    between the aggregate par value of the issued registered
    participation certificates and the total value of the
    contribution in kind, in the amount of CHF 8,850,351.60, is
    allocated to the reserves of the Company.[          ] /
    [          ][          ]  D-25




---



##### Table of Contents



Annex E  TRANSALLIED GROUP HOLDINGS, AG
  FOURTH AMENDED AND RESTATED
 2004 STOCK INCENTIVE PLAN




---



##### 



TABLE OF
    CONTENTS
   
 ARTICLE I GENERAL


E-11.1


Purpose


E-11.2


Definitions of Certain Terms


E-11.3


Administration


E-21.4


Persons Eligible for Awards


E-31.5


Types of Awards Under Plan


E-31.6


Registered Shares Available for Awards


E-3ARTICLE II AWARDS UNDER THE PLAN


E-42.1


Agreements Evidencing Awards


E-42.2


No Rights as a Shareholder


E-42.3


Grant of Restricted Registered Shares


E-52.4


Grant of Restricted Stock Units


E-52.5


Grant of Dividend Equivalent Rights


E-52.6


Other Stock-Based Awards


E-52.7


Performance-Based Awards


E-52.8


Certain Restrictions


E-6ARTICLE III MISCELLANEOUS


E-63.1


Amendment of the Plan


E-63.2


Confidentiality


E-63.3


Tax Withholding


E-63.4


Required Consents and Legends


E-63.5


Nonassignability; No Hedging


E-73.6


Successor Entity


E-73.7


Right of Discharge Reserved


E-73.8


Nature of Payments


E-73.9


Non-Uniform Determinations


E-83.10


Other Payments or Awards


E-83.11


Plan Headings


E-83.12


Termination of Plan


E-83.13


Governing Law; Venue


E-83.14


Severability; Entire Agreement


E-83.15


Waiver of Claims


E-83.16


No Third Party Beneficiaries


E-93.17


Successors and Assigns of TransAllied


E-93.18


Date of Adoption and Approval of Shareholders


E-93.19


Section 409A


E-9




---



##### Table of Contents



TRANSALLIED
    GROUP HOLDINGS, AG
  FOURTH
    AMENDED AND RESTATED
 2004
    STOCK INCENTIVE PLAN
  ARTICLE I
    Purpose
    Definitions of Certain Terms
  AWARD
  AWARD AGREEMENT
  BOARD
  CERTIFICATE
  COMMITTEE
  COMPANY
  COVERED PERSON
  EMPLOYMENT
  EXCHANGE ACT
  PERFORMANCE GOAL provided
  PERFORMANCE MEASURES and/or
 E-1




---



##### Table of Contents



PERFORMANCE PERIOD
  PLAN
  REGISTERED SHARES
  SECTION 162(m)
  SECTION 162(m) AWARD
  SECTION 409A
  TRANSALLIED
  Administration
   E-2




---



##### Table of Contents



provided
  Persons Eligible for Awards
    Types of Awards Under Plan
    Registered Shares Available for Awards
     E-3




---



##### Table of Contents



and/or
  provided, however
  ARTICLE II
  AWARDS UNDER
    THE PLAN
  Agreements Evidencing Awards
    No Rights as a Shareholder
   E-4




---



##### Table of Contents



Grant of Restricted Registered Shares
    Grant of Restricted Stock Units
    Grant of Dividend Equivalent Rights
    Other Stock-Based Awards
    Performance-Based Awards
     E-5




---



##### Table of Contents



provided
  Certain Restrictions
    ARTICLE III
  MISCELLANEOUS
  Amendment of the Plan
      Confidentiality
    Tax Withholding
    Required Consents and Legends
   E-6




---



##### Table of Contents



Nonassignability; No Hedging
    Successor Entity
    Right of Discharge Reserved
    Nature of Payments
     E-7




---



##### Table of Contents



Non-Uniform Determinations
    Other Payments or Awards
    Plan Headings
    Termination of Plan
  provided, however provided further
  Governing Law; Venue
  THIS PLAN SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
    WITH, THE LAWS OF THE STATE OF NEW YORK. IN CONSIDERATION OF THE
    GRANTEES ACCEPTANCE OF THE ISSUANCE OF ANY AWARD, THE
    GRANTEE HEREBY EXPRESSLY SUBMITS TO THE EXCLUSIVE JURISDICTION
    OF AND VENUE IN THE COURTS OF SWITZERLAND WITH RESPECT TO ANY
    SUIT OR CLAIM INSTITUTED BY THE COMPANY OR THE GRANTEE RELATING
    TO THIS PLAN OR THE AWARD
  Severability; Entire Agreement
  provided
  Waiver of Claims
   E-8




---



##### Table of Contents



No Third Party Beneficiaries
    Successors and Assigns of TransAllied
    Date of Adoption and Approval of
    Shareholders
    Section 409A
     E-9




---



##### Table of Contents



PART II



INFORMATION
    NOT REQUIRED IN PROSPECTUS; UNDERTAKINGS  Item 20.
    Indemnification
    of Directors and Officers         II-1




---



##### Table of Contents



Item 21.
    Exhibits
    and Financial Statement Schedules  ExhibitNo.

Document2
.1

Agreement and Plan of Merger, dated as of June 12, 2011,
    among Allied World, Transatlantic and Merger Sub (included as
    Annex A to the joint proxy statement/prospectus forming a
    part of this Registration Statement and incorporated herein by
    reference) (The annexes, schedules and certain exhibits have
    been omitted pursuant to Item 601(b)(2) of
    Regulation S-K)3
.1

Articles of Association of Allied World (incorporated herein by
    reference to the Registration Statement on
    Form 8-A12B/A
    of Allied World Assurance Company Holdings, AG filed with the
    SEC on December 1, 2010)3
.2

Allied World Organizational Resolutions (incorporated herein by
    reference to the Registration Statement on
    Form 8-A12B/A
    of Allied World Assurance Company Holdings, AG filed with the
    SEC on December 1, 2010)5
.1

Opinion of Baker & McKenzie as to the validity of the
    shares of Allied World Assurance Company Holdings, AG common
    stock to be issued in the
    merger+23
.1

Consent of Baker & McKenzie (included in
    Exhibit 5.1 to the joint proxy/prospectus forming a part of
    this Registration
    Statement)+23
.2

Consent of Independent Registered Public Accounting Firm of
    Allied World Assurance Company Holdings, AG,
    Deloitte & Touche Ltd.23
.3

Consent of Independent Registered Public Accounting Firm of
    Transatlantic Holdings, Inc., Pricewaterhouse Coopers LLP24
.1

Power of Attorney (included on signature page hereto)99
.1

Consent of Deutsche Bank Securities Inc.99
.2

Consent of Moelis & Company LLC99
.3

Consent of Richard S. Press99
.4

Consent of Michael C. Sapnar99
.5

Form of Proxy Cards of Allied World Assurance Company Holdings,
    AG+99
.6

Form of Proxy Card of Transatlantic Holdings,
    Inc.+     +

    
    To be filed by amendment  Item 22.
    Undertakings       II-2




---



##### Table of Contents



Rule 14a-3 Rule 14c-3 Regulation S-X
 II-3




---



##### Table of Contents



SIGNATURES
    ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
  By:
    /s/  Scott
    A. Carmilani   Title:
    President and Chief Executive Officer  POWER OF
    ATTORNEY
  Form S-4
    Signature

Title

Date/s/  Scott
    A. CarmilaniScott
    A. Carmilani

President, Chief Executive Officer and Chairman of the Board(Principal Executive Officer)

July 7, 2011/s/  Joan
    H. DillardJoan
    H. Dillard

Executive Vice President and Chief Financial Officer(Principal Financial and Accounting Officer)

July 7, 2011/s/  Barbara
    T. AlexanderBarbara
    T. Alexander

Director

July 7, 2011/s/  James
    F. DuffyJames
    F. Duffy

Director

July 7, 2011/s/  Bart
    FriedmanBart
    Friedman

Vice Chairman of the Board

July 7, 2011/s/  Scott
    HunterScott
    Hunter

Director

July 7, 2011 II-4




---



##### Table of Contents



Signature

Title

Date/s/  Mark
    R. PattersonMark
    R. Patterson

Director

July 7, 2011/s/  Patrick
    de Saint-AignanPatrick
    de Saint-Aignan

Director

July 7, 2011/s/  Samuel
    J. WeinhoffSamuel
    J. Weinhoff

Director

July 7, 2011/s/  Puglisi
    & AssociatesPuglisi
    & Associates

Authorized Representative in the United States

July 7, 2011  II-5




---



##### Table of Contents



EXHIBIT INDEX
  ExhibitNo.

Document2
.1

Agreement and Plan of Merger, dated as of June 12, 2011,
    among Allied World, Transatlantic and Merger Sub (included as
    Annex A to the joint proxy statement/prospectus forming a
    part of this Registration Statement and incorporated herein by
    reference) (The annexes, schedules and certain exhibits have
    been omitted pursuant to Item 601(b)(2) of
    Regulation S-K)3
.1

Articles of Association of Allied World (incorporated herein by
    reference to the Registration Statement on
    Form 8-A12B/A
    of Allied World Assurance Company Holdings, AG filed with the
    SEC on December 1, 2010)3
.2

Allied World Organizational Resolutions (incorporated herein by
    reference to the Registration Statement on
    Form 8-A12B/A
    of Allied World Assurance Company Holdings, AG filed with the
    SEC on December 1, 2010)5
.1

Opinion of Baker & McKenzie as to the validity of the
    shares of Allied World Assurance Company Holdings, AG common
    stock to be issued in the
    merger+23
.1

Consent of Baker & McKenzie (included in
    Exhibit 5.1 to the joint proxy/prospectus forming a part of
    this Registration
    Statement)+23
.2

Consent of Independent Registered Public Accounting Firm of
    Allied World Assurance Company Holdings, AG,
    Deloitte & Touche Ltd.23
.3

Consent of Independent Registered Public Accounting Firm of
    Transatlantic Holdings, Inc., Pricewaterhouse Coopers LLP24
.1

Power of Attorney (included on signature page hereto)99
.1

Consent of Deutsche Bank Securities Inc.99
.2

Consent of Moelis & Company LLC99
.3

Consent of Richard S. Press99
.4

Consent of Michael C. Sapnar99
.5

Form of Proxy Cards of Allied World Assurance Company Holdings,
    AG+99
.6

Form of Proxy Card of Transatlantic Holdings,
    Inc.+     +

    
    To be filed by amendment