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ZUG, Switzerland (Bloomberg)—Allied World Assurance Co. Holdings A.G., the insurer whose co-founders include American International Group Inc. and Chubb Corp., has repurchased warrants from AIG for $53.6 million.
Allied World rose to a 4½-year high.
The transaction was funded using cash on hand, Zug, Switzerland-based Allied World said Thursday in a statement issued by PR Newswire. The warrant, the last one held by AIG, allowed it to purchase 2 million Allied World shares for $34.20 apiece.
Allied World climbed 37 cents to $61.68 as of 12:55 p.m. in New York Stock Exchange composite trading, its highest level since July 12, 2006. It has climbed 35 percent in the past year.
Allied World has been repurchasing securities from founding shareholders. In November, it agreed to buy 3.2 million shares and warrants to purchase 1.5 million shares from Goldman Sachs Group Inc. and other founding investors for $222.6 million. In August, the insurer bought back from Chubb a remaining warrant to purchase 2 million shares for $32.8 million.
The repurchase transactions are separate from a $500 million share-repurchase program approved in May 2010, Allied World said.
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