RenRe To Acquire Platinum For $1.9 Billion
RenaissanceRe Holdings and Platinum Underwriters Holdings confirmed that RenaissanceRe will acquire Platinum in a deal worth approximately $1.9 billion, with the transaction expected to close in the first half of 2015.
The aggregate consideration for the transaction between the two Bermuda-based re/insurers will consist of 7.5 million RenaissanceRe common shares, valued at approximately $761 million, and $1.16 billion of cash.
The cash consideration will be funded through a pre-closing dividend from Platinum, RenaissanceRe available funds and the proceeds from the issuance of new senior debt.
Kevin J. O’Donnell, President and Chief Executive Officer of RenaissanceRe, commented: “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 U.S. specialty and casualty reinsurance platform and as a result, create enhanced value for our shareholders.”
Mr. O’Donnell continued: “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.”
Michael D. Price, President and Chief Executive Officer of the Platinum commented: “We are pleased to have entered into the definitive merger agreement with RenaissanceRe.
“RenaissanceRe supported our formation and initial public offering in 2002 and has a demonstrated track record of underwriting excellence. We firmly believe this transaction is in the best interests of our shareholders and beneficial to our clients and brokers.”
RenaissanceRe’s senior management team, led by Kevin O’Donnell, and eleven member Board of Directors will remain in place. The combined company will retain RenaissanceRe’s name and headquarters.
The agreement has been unanimously approved by both companies’ Boards of Directors. The transaction is expected to close in the first half of 2015 and is subject to customary regulatory approvals as well as the approval of Platinum’s shareholders.
Read More About
Comments (7)
Trackback URL | Comments RSS Feed
Articles that link to this one:
- Platinum & RenRe Ratings Placed Under Review - Bernews.com : Bernews.com | November 26, 2014
I hope this doesn’t result in job losses for the Platinum employees.
It is really tough out there.
Hamilton Re hired a bunch of folks over the last year..
Any job market is tough, but there are opportunities.
Depending on how you look at things, it may have lost some, but saved so many more. It may even create jobs, but there is no mention of jobs in the press release.
Depending on how you look at things ?
So don’t slap me in de face, just kick me in my @$$.
Why don’t you go set up your own Reinsurance company? Nothing stopping you.
I cant tell the difference .
If it does result in job losses lets see how many people still blame the PLP…