Transatlantic Holdings, Inc. (NYSE: TRH) today reported net income for the second quarter of 2008 of $89.7 million, or $1.34 per common share (diluted), compared to $125.7 million, or $1.89 per common share (diluted), in the second quarter of 2007. Net income for the first six months of 2008 totaled $205.4 million, or $3.08 per common share (diluted), compared to $232.9 million, or $3.50 per common share (diluted), in the first six months of 2007.

Income before income taxes for the second quarter of 2008 amounted to $106.9 million compared to $151.9 million in the second quarter of 2007. Income before income taxes for the first six months of 2008 amounted to $252.1 million compared to $288.5 million in the first six months of 2007.

In the second quarter of 2008 and 2007, income before income taxes includes pre-tax realized net capital (losses) gains of ($59.9) million and $1.9 million, respectively. For the six month periods, income before income taxes includes pre-tax realized net capital (losses) gains of ($74.9) million and $17.3 million in 2008 and 2007, respectively. Pre-tax realized net capital losses include write-downs to fair value for securities that were considered to be other than temporarily impaired totaling ($68.8) million and ($78.2) million in the second quarter and first six months of 2008, respectively. These write-downs principally related to certain domestic residential asset-backed fixed maturity securities, which are included in securities lending invested collateral, and, to a much lesser extent, certain equity securities. Such write-downs were due primarily to a severe decline in market values resulting from the current credit market disruption, for which TRH could not reasonably assert that the recovery period would be temporary. Write-downs were insignificant in the comparable 2007 periods.

There were no significant catastrophe costs in the second quarter or first six months of 2008. Income before income taxes in the second quarter and first six months of 2007 also includes estimated pre-tax net catastrophe costs of $13.9 million and $53.7 million, respectively. The computation of net catastrophe costs involves a significant amount of judgment and is based on information available at the time of estimation.

Robert F. Orlich, Chairman, President and Chief Executive Officer, said, “While our underwriting results improved compared to the year ago periods, due in part to the absence of significant catastrophe costs in 2008, our bottom line was significantly impacted by impairment write-downs resulting from the continuing disruption of the credit markets. Nonetheless, operating cash flows were strong and annualized GAAP return on equity for the first six months of 2008 was 12.2%.

“Net premiums written remained relatively flat in the second quarter compared to a year ago as price erosion persisted in many classes and regions. Terms and conditions generally held firm.

“We are pleased to have recently opened a representative office in Munich to better serve ceding companies in Germany and Austria. With financial strength and broad product and geographic diversity, Transatlantic remains well-positioned to respond effectively to the challenges facing us and the opportunities that continue to arise in today’s marketplace.”

Net premiums written for the second quarter of 2008 increased 0.6% to $988.5 million compared to $983.1 million in the second quarter of 2007. Net premiums written for the first six months of 2008 increased 2.9% to $2,024.1 million compared to $1,967.2 million in the first six months of 2007. (Refer to the table in the Consolidated Statistical Supplement presenting the effect of changes in foreign currency exchange rates on the increase in net premiums written between periods.) International business represented 50% of net premiums written in the first six months of 2008 versus 49% in the first six months of 2007.

Net losses and loss adjustment expenses incurred include estimated net favorable (adverse) development related to losses (including catastrophe events) occurring in prior years which totaled $2 million and ($18) million for the second quarter of 2008 and 2007, respectively, and ($1) million and ($36) million in the first six months of 2008 and 2007, respectively.

The combined ratio for the second quarter of 2008 was 94.3% versus 94.9% in the comparable 2007 quarter. The combined ratio for the first six months of 2008 was 94.2% versus 96.3% in the first six months of 2007. The aggregate net impact of pre-tax catastrophe costs and estimated net loss reserve development related to losses occurring in prior years (subtracted) added (0.2%) and 3.2% (from) to the combined ratio for the second quarter of 2008 and 2007, respectively, and 0.1% and 4.4% to the combined ratio for the first six months of 2008 and 2007, respectively.

Net loss and loss adjustment expense reserves increased $181.0 million during the second quarter of 2008, bringing the amount of such reserves to $7.32 billion at June 30, 2008. (Refer to the analysis of changes in net loss and loss adjustment expense reserves in the Consolidated Statistical Supplement for additional information.)

TRH’s loss ratio represents net losses and loss adjustment expenses incurred expressed as a percentage of net premiums earned. The underwriting expense ratio represents the sum of net commissions and other underwriting expenses expressed as a percentage of net premiums written. The combined ratio represents the sum of the loss ratio and the underwriting expense ratio. Net loss and loss adjustment expense reserves represent unpaid losses and loss adjustment expenses, net of related reinsurance recoverable. The combined ratio and its components, as well as net loss and loss adjustment expense reserves, are presented in accordance with principles prescribed or permitted by insurance regulatory authorities, as these are standard measures in the insurance and reinsurance industries. Annualized GAAP return on equity for the first six months of 2008 represents the first six months’ net income multiplied by two expressed as a percentage of average stockholders’ equity for the first six months of 2008.

Net investment income totaled $120.5 million in the second quarter of 2008 compared to $119.3 million in the second quarter of 2007. Net investment income totaled $237.7 million for the first six months of 2008 compared to $235.4 million for the first six months of 2007. At June 30, 2008, investments totaled $12.22 billion. (Refer to the analysis of net investment income in the Consolidated Statistical Supplement for additional information.)

At June 30, 2008, TRH’s consolidated assets and stockholders’ equity were $15.47 billion and $3.41 billion, respectively. Book value per common share was $51.46.

In the second quarter of 2008, the Board of Directors declared a quarterly cash dividend of $0.19 per common share to stockholders of record as of September 4, 2008, payable on September 18, 2008. This represents an 18.75% increase over the prior quarterly dividend.

Visit – www.transre.com – for additional information about TRH.

This press release contains forward-looking statements, including management’s beliefs about market conditions and expectations regarding the aggregate net impact on operating results from recent catastrophe losses, within the meaning of the U.S. federal securities laws. These forward-looking statements are based on assumptions and opinions concerning a variety of known and unknown risks. Please refer to TRH’s Annual Report on Form 10-K for the year ended December 31, 2007 and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2008 as well as its future filings and reports filed with or furnished to the Securities and Exchange Commission for a description of the business environment in which TRH operates and the important factors, risks and uncertainties that may affect its business and financial results. If any assumptions or opinions prove incorrect, any forward-looking statements made on that basis may also prove materially incorrect. TRH is not under any obligation to (and expressly disclaims any such obligations to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

Transatlantic Holdings, Inc. (TRH) is a leading international reinsurance organization headquartered in New York, with operations on six continents. Its subsidiaries, Transatlantic Reinsurance Company^®, Trans Re Zurich and Putnam Reinsurance Company, offer reinsurance capacity on both a treaty and facultative basis ― structuring programs for a full range of property and casualty products, with an emphasis on specialty risks.