862510--3/2/2009--TRANSATLANTIC_HOLDINGS

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{loan, real, estate}

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The occurrence of severe catastrophic events could have a material adverse effect on TRH s financial condition, results of operations and operating cash flows. If TRH is required to increase its liabilities for loss reserves, TRH s financial condition and results of operations may be materially adversely affected. A downgrade in the ratings assigned to TRH s operating subsidiaries could adversely affect TRH s ability to write new business and may adversely impact TRH s existing agreements. Uncertainty about the continued ownership by AIG of a majority of the Company s outstanding shares may have an adverse effect on TRH. TRH s business may continue to be adversely affected by AIG s recent liquidity problems. Relationship with the AIG Group Recent Actions by AIG which Impact TRH If TRH s risk management methods and pricing models are not effective, TRH s financial condition, results of operations and cash flows could be materially adversely affected. The property and casualty reinsurance business is historically cyclical, and TRH expects to experience periods with excess underwriting capacity and unfavorable pricing. Increased competition could adversely affect TRH s profitability. A limited number of brokers account for a large portion of TRH s revenues; the loss of all or a substantial portion of the business provided by them may have an adverse effect on TRH. Liquidity risk represents the potential inability of TRH to meet all payment obligations when they become due. Concentration of TRH s investment portfolios in any particular segment of the economy may have adverse effects. The valuation of TRH s investments includes methodologies, estimations and assumptions which are subject to differing interpretations; these differing interpretations could result in changes to investment valuations that may adversely affect TRH s results of operations or financial condition. The determination of the amount of impairments taken on TRH s investments is subjective and could materially impact TRH s results of operations or financial position. The impact of governmental actions made in response to the economic crisis on TRH is difficult to determine at this time. Difficult and volatile conditions in the global capital and credit markets and in the overall economy could materially and adversely affect TRH s operating results, investment portfolio and financial condition. TRH may be adversely affected by the impact of market volatility and interest rate and foreign currency exchange rate fluctuations. TRH s businesses are heavily regulated, and changes in regulation may reduce TRH s profitability and limit its growth. TRH s offices that operate in jurisdictions outside the United States are subject to certain limitations and risks that are unique to foreign operations. The decline in the Company s common stock price and the uncertainty relating to AIG s continued ownership interest in the Company may prevent TRH from retaining key personnel. The current investigations into certain non-traditional, or loss mitigation, insurance products and other legal matters could have a material adverse effect on TRH s financial condition or results of operations.

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862510--3/2/2009--TRANSATLANTIC_HOLDINGS_INC