November 9, 2011

Dear Stockholders:

We are writing this letter to provide an update on our current strategic alternatives process and our perspective on recent statements made by Validus Holdings.

Subsequent to terminating the previously announced Allied World merger, Transatlantic entered into confidentiality agreements with three parties. After failing to submit an offer that adequately values Transatlantic, Validus made a second inadequate and hostile offer on Thursday, November 3, 2011. In addition, on November 7, 2011, Validus filed an investor presentation containing inaccurate and misleading comments in an effort to acquire Transatlantic’s well-regarded franchise for less than full and fair value.

Transatlantic filed an investor presentation on Friday, November 4, 2011, responding to the inadequate offer of November 3rd. The Company’s response noted, among other things, that Validus’ inadequate offer:

	•		writes down Transatlantic’s balance sheet by $500 million through an unwarranted reserve charge;
	•		results in a pro forma balance sheet that is highly leveraged from both a debt-to-capital and catastrophe risk-to-surplus perspective;
	•		likely results in lower ratings than those currently enjoyed by Transatlantic;
	•		is unlikely to result in a pro forma company able to responsibly achieve indicated synergies while meeting the suggested return of capital; and
	•		dilutes Transatlantic’s book value by 10 percent.1

While your Board of Directors continues to oversee discussions with two other parties, we remain confident that Transatlantic’s future is bright and that we have a clear path forward to providing long-term value creation for stockholders should nothing more attractive emerge from these other discussions.

To that end, on November 7, 2011, Standard & Poor’s affirmed Transatlantic’s A+ credit rating and stable outlook. S&P’s announcement, which we believe is a testament to Transatlantic’s balance sheet strength and standalone capabilities, underscores the strength of our franchise. S&P specifically noted that:

The ratings on Transatlantic and its core operating subsidiaries are based on the group’s stand-alone capabilities including its well-diversified mix of business, strong reputation with brokers and clients, strong and disciplined underwriting culture, very strong capital adequacy and liquidity, and conservative investment portfolio.*

The Board has always acted, and will continue to act, in the best interests of stockholders and is fully committed to concluding this process in a responsible timeframe — not one dictated by Validus’ self-interested deadlines.

Given our desire to focus on customers and brokers as we enter renewal season, as well as to conclude discussions with all third parties in a timely manner, we assure you that we are not interested in engaging in an ongoing daily public debate with Validus or any other party.

For reference, the investor presentation is available on Transatlantic’s website at www.transre.com by clicking on the “Investor Information” tab and selecting “Presentations,” and can be accessed on the SEC’s website at www.sec.gov.

We appreciate your continued support.

Sincerely,

Robert F. Orlich		Richard S. Press
Chief Executive Officer		Chairman of the Board

Cautionary Note regarding Forward-Looking Statements

This communication contains forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Such statements involve risks and uncertainties, which may cause actual results to differ materially from those set forth in these statements. For example, these forward-looking statements could be affected by risks that the unsolicited Validus exchange offer and Validus consent solicitation disrupt current plans and operations; the ability to retain key personnel; pricing and policy term trends; increased competition; the impact of acts of terrorism and acts of war; greater frequency or severity of unpredictable catastrophic events; negative rating agency actions; the adequacy of loss reserves; changes in regulations or tax laws; changes in the availability, cost or quality of reinsurance or retrocessional coverage; adverse general economic conditions; and judicial, legislative, political and other governmental developments, as well as management’s response to these factors; and other risks detailed in the “Cautionary Statement Regarding Forward-Looking Information,” “Risk Factors” and other sections of Transatlantic’s Form 10-K and other filings with the Securities and Exchange Commission (“SEC”). You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Transatlantic is under no obligation (and expressly disclaims any such obligation) to update or revise any forward-looking statement that may be made from time to time, whether as a result of new information, future developments or otherwise, except as required by law.

Additional Information About the Validus Exchange Offer

This communication is neither an offer to purchase nor the solicitation of an offer to sell any securities. In response to the exchange offer commenced by Validus, Transatlantic has filed a Solicitation/Recommendation Statement on Schedule 14D-9 with the SEC. Investors and security holders are urged to read the Solicitation/Recommendation Statement on Schedule 14D-9 because it contains important information about the Validus exchange offer. All documents, when filed, will be available free of charge at the SEC’s website (www.sec.gov). You may also obtain these documents by contacting Transatlantic’s Investor Relations department at Transatlantic Holdings, Inc., 80 Pine Street, New York, New York 10005, or via e-mail at investor_relations@transre.com.

Additional Information about the Validus Consent Solicitation

On November 3, 2011, Validus filed an amended preliminary consent solicitation statement with the SEC relating to Validus’s proposals to, among other things, remove all of Transatlantic’s directors and nominate three new directors to the Transatlantic board of directors. Transatlantic has filed with the SEC a preliminary consent revocation statement on Schedule 14A (the “Preliminary Revocation Statement”) in connection with Validus’s solicitation of written consents. Investors and security holders are urged to read the Preliminary Revocation Statement and Transatlantic’s definitive consent revocation statement, when it is available, because they contain important information. Investors can get the Preliminary Revocation Statement, the definitive revocation statement, when it is available, and any other relevant documents for free at the SEC’s website (www.sec.gov). You may also obtain these documents for free by contacting Transatlantic’s Investor Relations department at Transatlantic Holdings, Inc., 80 Pine Street, New York, New York 10005, or via e-mail at investor_relations@transre.com.

Transatlantic, its directors and executive officers may be deemed to be participants in a solicitation of Transatlantic’s stockholders in connection with the Validus consent solicitation. Information about Transatlantic’s directors and executive officers, and a description of their direct or indirect interests, by security holdings or otherwise, is available in Transatlantic’s Preliminary Revocation Statement, which was filed with the SEC on September 20, 2011.