23 December 2016News

Fairfax CEO stresses he will not seek cost cutting at Allied World

The chief executive of Fairfax Financial has moved to reassure staff at Allied World Assurance Company, which Fairfax is to acquire for $4.9 billion, that the unit will continue to be run in its own right meaning there will be no immediate implications for staff.

Allied World employs around 125 staff at its Bermuda offices.

On a conference call post-deal, Prem Watsa, the chief executive officer of Fairfax Financial, praised the performance of Scott Carmilani, the CEO of Allied World, and said the company would continue to be run by him on a decentralised basis with no cost synergies.

Allied World was formed in Bermuda in 2001. Though it moved its headquarters to Switzerland in 2010 it has retained a significant presence on Bermuda.

On the call, Fairfax’s senior executives pointed to some of the other companies it has acquired and allowed autonomy to run their own operations. These included OdysseyRe, Crum & Forster and Brit.