Transatlantic paid $48 million in termination fees and expense reimbursements to Allied World.

Robert F. Orlich, chief executive officer, says Transatlantic “continues to assess strategic opportunities for their ability to offer stockholders full and fair value.”

The company has entered into talks with companies and Orlich offers no guarantees. In the meantime, Transatlantic believes “strongly in our standalone prospects, given our financial strength, risk-management orientation and industry-leading global franchise, and we are proceeding to execute our long-term strategic growth plan, which includes an aggressive share-buyback program,” Orlich says.

Looking at January 1 renewals, Orlich says catastrophe rates continue to rise, “particularly in loss-affected areas.”

“Casualty market conditions are mixed, but we are beginning to see some modest rate improvement in certain domestic general casualty classes,” he says, adding that the specialty business is “solid.”

Orlich is retiring. The company appointed Michael C. Sapner as president and chief executive officer.

The pretax catastrophe losses for the quarter consist of $33 million from floods in Denmark and Hurricane Irene in the U.S. plus $34 million related to changes in estimates for events earlier this year.

Transatlantic says net income benefitted from a $29 million it received as part of a settlement with several insurers to end disputes over certain assumed reinsurance contracts related to subprime mortgages and credit default insurance.

Net premiums written were down 6.6 percent to $956 million during the third quarter. Transatlantic posted a third-quarter combined ratio of 94.3, nearly flat compared with the same period a year ago.