Allied World Assurance Company will conduct a review of its operations in Bermuda as it goes through the process of merging with Transatlantic Holdings, one of its top executives told The Royal Gazette yesterday.The “merger of equals” agreement between Allied and the US reinsurer was announced late on Sunday. Both companies have offices on the Island.Some 141 people work at Allied's Bermuda operation based in Richmond Road, while Transatlantic has two employees based on Par-la-Ville Road.“As part of the integration process, which will occur between now and the expected close of the deal [in the fourth quarter], we will be looking at all of our offices and Transatlantic's offices,” David Bell, Allied's global chief operating officer, said in an interview.“Bermuda is one of a number of places where both companies have offices, so we are going to be reviewing all of them and making decisions on what makes sense for us during the integration process.”In Bermuda, Allied World offers insurance products tailored to the needs of large organisations with complex risks, as well as reinsurance.“We are going to be substantially larger as a combined entity and we expect that this will enhance our competitive position,” Mr Bell said. “The merger will enable us to have more product offerings and deepen our resources.”The combined entity will have total capital of $8.5 billion, making it a larger on this measure than companies such as PartnerRe, as well as fellow ‘Class of 2001' start-ups Axis Capital Holdings and Arch Capital Group.Some industry observers have been expecting more merger and acquisition (M&A) to take place, on the basis that in re/insurance, “bigger is better”.Mr. Bell said: “Whether or not it's better, bigger certainly affords you more options. This deal makes sense. It creates a combined organisation that's going to be stronger and more flexible.”The COO declined to comment on the view of Barclays analyst Jay Gelb, published in a note on Monday, that Transatlantic would probably attract further suitors before the deal with Allied closes.Allied was one of several companies to start up in Bermuda to meet the spike in demand for re/insurance capacity following the terrorist attacks on New York and Washington, DC, in September, 2001.“Our organisation was born in Bermuda almost 10 years ago to the day and to be where we are today is a wonderful accomplishment for all the staff,” Mr Bell said.