RenaissanceRe makes $1.9bn acquisition
RenaissanceRe has agreed to acquire fellow Bermudian Platinum Underwriters for $1.9 billion.
The agreement has been unanimously approved by both companies' boards of directors and the transaction is expected to close in the first half of 2015.
The aggregate consideration for the transaction will consist of 7.5 million RenaissanceRe common shares, valued at approximately $761 million, and $1.16 billion of cash.
The acquisition price represents a 24 percent premium to Platinum's closing price per common share as of November 21, 2014.
RenaissanceRe's senior management team, led by Kevin O'Donnell, and eleven members of the board of directors will remain in place. The combined company will retain RenaissanceRe's name and headquarters.
Kevin O'Donnell, president and chief executive officer of RenRe, said: "We are very pleased to have entered into the definitive agreement to acquire Platinum. It is a well-run company and its integration with RenaissanceRe will benefit our combined companies' clients through an expanded product offering and broker relationships. It will also accelerate the growth of our US specialty and casualty reinsurance platform and as a result, create enhanced value for our shareholders."
"Platinum is a company we know well as we supported its formation and initial public offering in 2002. Platinum's disciplined approach to underwriting and risk management is a strategic and cultural fit for RenaissanceRe and its book of business will be integrated within our risk management framework. After the transaction closes, we anticipate our combined company will continue to have the very strong capital and liquidity position you have come to expect from RenaissanceRe."
