RenaissanceRe to Sell US Insurance Business
Bermuda-based provider of reinsurance and insurance services RenaissanceRe Holdings has agreed to sell its US insurance activities to QBE Holdings, which underwrites property, casualty and health insurance products.
The proceeds from the divestment, to be paid at closing, are estimated at some $275 million in cash, based on the business’ book value at year-end.
According to RenaissanceRe, the deal will immediately add to the group’s tangible book value per share. The transaction is seen closing in the first six months of 2011.
Neill Currie, chief executive officer of RenaissanceRe Holdings said, “We will continue to participate in the U.S. excess and surplus lines insurance market through our Lloyd’s platform and Glencoe Insurance Ltd., our Bermuda-domiciled insurer. As always, we are committed to disciplined underwriting and to managing our portfolio of businesses to generate superior returns over time.”
