Allied World Assurance Holdings Ltd.’s bid to raise up to $327 million through an initial public offering should take place this week.

AWAC, which announced the offering of 8.8 million shares earlier this year, is the last of the “Class of 2001” Bermuda reinsurance companies to go public.
It said in a regulatory filing earlier this year that it planned to offer the shares at $34 to $37 with Goldman Sachs as lead underwriter.

The company is a Bermuda-based specialty insurance and reinsurance company that underwrites property and casualty insurance and reinsurance lines of business.

Proceeds from the IPO, which should bring in $299to $327 million, will be used to repay a bank loan as well as for general corporate purposes, including increasing the capital of subsidiaries, the company said in a regulatory document filed with the US Securities and Exchange Commission in June.

An underwriting syndicate led by Goldman, Sachs & Co. will have the option to buy another 1.32 million shares to cover over-allotments.

AWAC was among a wave of insurance companies to form in Bermuda after the September 11, 2001 terrorist attacks in the US caused a global reduction in insurance industry capital and a disruption in available insurance and reinsurance coverage.
 
Since launching in November 2001, the company has grown to employ 151 staff in Bermuda as well as a further 44 employees in the United States and 40 in Europe.
As of March 31, 2006, the company had $6.6 billion of total assets and $1.5 billion of shareholders’ equity.

AWAC’s common shares have been approved for listing on the New York Stock Exchange under the symbol “AWH”.
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Copyright ©2005 The Royal Gazette Ltd.