RenaissanceRe Urged To Explore Potential Sale

October 2, 2018

TimesSquare Capital Management — an institutional asset management firm with a significant stake in Bermuda-based RenaissanceRe Holdings –  has publicly urged RenaissanceRe to undertake a “review of strategic alternatives, including a possible sale of the Company.”

A letter to RenaissanceRe, released by TimesSquare, stated, “We remain steadfast in our belief that an immediate review of strategic alternatives, including an exploration of a potential sale of the Company, is imperative.

“As the industry environment evolves, we have diminished conviction that RenRe’s share price will appropriately reflect intrinsic value. In our view, however, there is a way for RenRe to better realize its intrinsic value: through a review of strategic alternatives, including a possible sale of the Company.

“We believe there are a number of potential acquirers that would covet RenRe’s dominant and unique position in third party capital management, as well as the Company’s proven track record of superior underwriting, risk management and tangible book value per share growth.

“Our opinion is that an active competitive sale process for the Company should be launched, which would likely yield a significant control premium over the current share price.

“To this end, we are requesting that the Board immediately commences a review of strategic alternatives, including an exploration of the sale of the Company, in order to maximize value for shareholders.”

In response, RenaissanceRe said they welcome “open and constructive communications with all shareholders and value their input.”

“In this regard, members of our senior management team have held numerous meetings with TimesSquare over the past few years. In particular, both our Chairman of the Board and our Chief Executive Officer have separately met with TimesSquare in recent months,” the company said.

“We have considered fully TimesSquare’s views and have shared them with our Board. Our Board understands, and is committed to, its fiduciary duties to act in the best interests of all shareholders.

“Our Board and management team continuously focus on enhancing shareholder value through execution of the Company’s strategic plan. We will maintain an open and active dialogue with all of our shareholders as we continue to work to enhance shareholder value.”

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Comments (9)

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  1. Res says:

    The first of many !

  2. VinceD says:

    The end of an era! Reinsurance is done! Now prices can come down!

    • meh says:

      more like wages.

    • Troy says:

      Absolutely, time to fall back into an agrarian economy. Then we’ll all save lots of money.

    • sandgrownan says:

      Prices for what?

    • Truth be told says:

      Great, now all those nasty, good-for-nuthin’ foreigners can get steppin!

  3. Troy says:

    Seriously speaking, never mind the travails of a mature industry like reinsurance – we have and hopefully will continue to benefit enormously from it.

    What is really holding this country back are foreign owned banks and their 100% failure to invest in business, local and otherwise. They will claim not but the reality is that their demands are no so onerous that only a fool would accept their terms. I might add the engorged, self perpetuating BMA does not help matters either.

  4. Jack Tail says:

    is burtcoins door open ? we think the breeze just blows through , the power goes to their heads and believe they are experts on everything in reality making swizzle is the sum total