PEMBROKE, Bermuda--(BUSINESS WIRE)--Jun. 5, 2009--
RenaissanceRe Holdings Ltd. (NYSE: RNR) (“the Company”) announced today
that it has entered into an agreement providing for the acquisition of
Spectrum Partners, Ltd., whose principal operating subsidiary is
Spectrum Syndicate Management Ltd. (“Spectrum”), a Lloyd’s Managing
Agent.
The Company received approval from Lloyd’s in April 2009 to establish
RenaissanceRe Syndicate 1458, for which Spectrum serves as the Managing
Agent. RenaissanceRe’s syndicate operations commenced in May, with
underwriting of property and specialty business incepting from June 1,
2009.
Richard Murphy, Chief Executive Officer of Spectrum, will continue in
his current capacity and Spectrum’s management team will remain in
place. The transaction is subject to approval by Lloyd’s and the
Financial Services Authority.
Neill Currie, President and Chief Executive Officer of RenaissanceRe
Holdings, said: “Over the last year we have had the opportunity to work
with Spectrum and recognize the value and experience that they bring to
RenaissanceRe and our new Lloyd’s Syndicate. Consistent with our
strategy to better serve our customers through our presence in the
Lloyd’s market, we believe a combination would enable us to operate
effectively and efficiently in London and to meet the growing demand for
our products and services. We look forward to welcoming the management
and staff of Spectrum to the RenaissanceRe organization.”
The parties have entered into definitive transaction documents granting
RenaissanceRe an option to purchase all of the outstanding shares of
Spectrum Partners. If the option is exercised and, subject to customary
conditions, the transaction is completed, as part of the consideration
for their shares Mr. Murphy and Kim Fox, Chief Operating Officer of
Spectrum, will receive an aggregate of 105,689 and 42,275 common shares
of RenaissanceRe, respectively, subject to certain vesting conditions
based in part upon continued performance of services to Spectrum. Other
terms of the arrangement were not disclosed.
RenaissanceRe Holdings Ltd. is a global provider of reinsurance and
insurance. Our business consists of two segments: (1) Reinsurance, which
includes catastrophe reinsurance, specialty reinsurance and certain
joint ventures and other investments managed by our subsidiary
RenaissanceRe Ventures Ltd., and (2) Individual Risk business, which
includes primary insurance and quota share reinsurance.
Cautionary Statement under "Safe Harbor" Provisions of the Private
Securities Litigation Reform Act of 1995: Statements made in this news
release contain information about the Company's future business
prospects. These statements may be considered "forward-looking." These
statements are subject to risks and uncertainties that could cause
actual results to differ materially from those set forth in or implied
by such forward-looking statements. The Company undertakes no obligation
to update any forward-looking statements in this press release as a
result of new information or future events or developments. For further
information regarding cautionary statements and factors affecting future
results, please refer to RenaissanceRe Holdings Ltd.'s filings with the
Securities and Exchange Commission, including its Annual Report on Form
10-K for the year ended December 31, 2008 and its quarterly reports on
Form 10-Q.
Source: RenaissanceRe Holdings Ltd.
Investor:
RenaissanceRe Holdings Ltd.
Fred R. Donner,
441-295-4513
Executive Vice President
Chief Financial Officer
or
Media:
Kekst
and Company
David Lilly or Dawn Dover,
212-521-4800
