4 March 2015 Insurance

List of Montpelier suitors could be lengthy as bid speculation mounts

Speculation continues to mount around which two reinsurers will likely join forces next following the already confirmed deals involving XL-Catlin, AXIS Capital-PartnerRe and RenaissanceRe-Platinum Underwriters.

Montpelier Re in particular has been at the centre of much speculation since the rumour emerged at the end of last year that its board were seeking potential buyers. Some of the rumoured bidders for the company include Endurance, Aspen and Asia-based Fosun, the owner of Peak Re.

Fosun declined to comment on recent speculation but the reality is that, given the nature of market pressures at the moment, any number of names could be added to that list based on common sense as much as rumour.

One analyst told Intelligent Insurer recently that given the increasingly critical nature of scale and diversification now, it could be hard to imagine any reinsurer with a market cap of below $5 billion of being able to go it alone long term – a logic that would make the predicament facing Montpelier Re far from unique.

Either way, the analyst said, expect an announcement sooner rather than later. Whatever deal emerges, the reinsurers involved will want to get their ducks in a row before conference season and the start of the run-up to the year-end renewals to maximise the combined opportunities they will hope to leverage at that time.

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