NEW YORK--(BUSINESS WIRE)--Transatlantic Holdings, Inc (NYSE: TRH) announced today that the underwriters of the previously announced public offering of 26 million shares of Transatlantic Holdings, Inc. common stock owned by American International Group, Inc. (AIG) and its subsidiary, American Home Assurance Company (AHAC), have exercised their option to purchase an additional 3.9 million shares. As a result, AIG and AHAC will sell a total of 29.9 million shares for aggregate gross proceeds of $1.136 billion. TRH will not receive any of the proceeds from the secondary offering.

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

At the close of the secondary offering, which is scheduled for June 10, 2009, AHAC will own 9,192,662 common shares of Transatlantic Holdings, Inc., representing approximately 13.9 percent of Transatlantic Holdings, Inc.’s common shares outstanding.

Transatlantic Holdings, Inc. (TRH) is a leading international reinsurance organization headquartered in New York, with operations on six continents. Its subsidiaries, Transatlantic Reinsurance Company®, Trans Re Zurich and Putnam Reinsurance Company, offer reinsurance capacity on both a treaty and facultative basis – structuring programs for a full range of property and casualty products, with an emphasis on specialty risks.

Visit – www.transre.com – for additional information about TRH.