A winding trail: a guide to M&A on Bermuda

26-11-2018

A winding trail: a guide to M&A on Bermuda

Consolidation continues to reshape Bermuda’s risk transfer landscape, a process that has continued apace in recent years. With three more big deals in 2018—so far—Bermuda:Re+ILS has researched a guide to the main deals that have taken place over the past five years.

Premia buys Alan Gray

What is the deal?

Bermuda runoff specialist Premia Holdings acquired Boston-based claims, audit and risk management advisory firm Alan Gray from Vanbridge Holdings in September 2018.

What did they say?

Bill O’Farrell, CEO of Premia Holdings, said: “I have been a client of Alan Gray’s for over 20 years across a broad spectrum of services. I know first-hand what a tremendous job they do for their clients. They bring tremendous expertise and cost-effective solutions to every assignment.

“We are thrilled to make them a part of our group and we look forward to working with them to accelerate their growth and create even more satisfied clients.”

Michael Ceppi, CEO of Alan Gray, said: “All of us on the Alan Gray team are very pleased to join the Premia team. It will allow us to bring our traditional services to new clients while providing our long-standing clients with expanded solutions to help them achieve their business objectives.”

What happens next?

The deal represents a bolt-on for Premia; as we understand it, 
Alan Gray will maintain its brand and continue to operate as a 
separate company.

 

Sirius plans an IPO

What is the deal?

Earlier this year, Sirius Group unveiled plans of a merger agreement with special purpose acquisition firm Easterly Acquisition, which will result in Sirius becoming a publicly listed company.

In August, apparently to test the appetite of the market, the company entered into equity subscription agreements with affiliated funds of Gallatin Point Capital, the Carlyle Group, Centerbridge Partners, and Bain Capital Credit.

As part of the deal investors have committed to purchase $213 million of Series B preference shares and common shares in a private placement. The closing of the private placement is subject to the closing of the merger with Easterly, as well as other customary conditions. Proceeds from the private placement will be used by Sirius Group to redeem all outstanding Series A preference shares, and the remainder for general corporate purposes.

Even after the inclusion of new investors, CMIG International will retain the majority in Sirius which had a regulatory capital of $2.6 billion and gross written premium of $1.3 billion as of 2016-end.

What did they say?

Allan Waters, president, CEO and chairman of Sirius Group, said: “We are pleased to become a public company though our partnership with Easterly. Access to the public equity markets will facilitate and accelerate our future growth via M&A transactions and organically.”

In an investor presentation in June, Waters explained how the firm plans to grow gross premiums written to $2.28 billion by 2020 from an estimated $1.90 billion in 2018. Sirius expects cash earnings to jump to $273 million in 2020 from $157 million in 2018, according to the presentation.

What happens next?

The deal was due to close by the end of November, so watch 
this space.

 

AXA acquires XL Catlin

What was the deal?

In March 2018, French insurer AXA acquired XL Group for $15.3 billion in cash.

What did they say?

Thomas Buberl, CEO of AXA, said: “XL Group has the right geographical footprint, world-class teams with recognised expertise and is renowned for innovative client solutions. Our combined P&C Commercial lines operations, will have a strong position in the large and upper mid-market space, including in specialty lines and reinsurance, and will complement and further enhance AXA’s already strong presence in the SME segment.

“The two companies share a common culture around people, risk management and innovation, positioning AXA uniquely for the evolving future of the P&C industry.”

Mike McGavick, CEO of XL Group, said: “Today marks an unrivalled opportunity to accelerate our strategy with a new strength and dimension. With every confidence in how we have positioned XL Group for the future, it is a substantial testament to AXA’s leadership and commitment to maintaining the XL Group brand and culture that we have come to an alignment.

“We are excited at the opportunity to build the scale, geographical footprint, product portfolio, and the unmatched commitment to innovation that relevance in the global insurance industry requires. In AXA we have found like-minded partners committed to the absolute necessity to innovate and move this industry forward.”

What happens next?

AXA’s logic for the deal was that it created the opportunity to shift its business profile from predominantly life & savings business to a predominantly property & casualty business. It would also allow it to become the biggest global P&C Commercial lines insurer based on gross written premiums.

It will be interesting to see what growth potential the deal generates, especially in the reinsurance space and with the access to the ILS markets that AXA now has.

A new brand—AXA XL—was introduced in September, on completion of the deal. It has also unveiled a number of management changes. One of the key ones is that Greg Hendrick, who previously was president and chief operating officer of XL Group, is now CEO of AXA XL and a member of AXA Group’s Management Committee.

 

Markel acquires Nephila

What was the deal?

In August 2018, Markel Corporation revealed it will acquire Nephila Capital. The deal is expected to close in the fourth quarter of 2018. The value of the deal has never been revealed.

What did they say?

Richie Whitt, Markel’s co-CEO, said: “We are excited to welcome Nephila to the Markel team. Frank Majors and Greg Hagood, Nephila’s founders, have built the industry’s pre-eminent and longest-tenured insurance-linked securities (ILS) manager. With a proven 20-year track record of success, they bring with them an incredibly experienced and talented management team and a culture of creativity, innovation and excellence that exemplifies the Markel style.

“The addition of Nephila to Markel’s insurance, reinsurance, insurtech, fronting, and existing ILS capabilities will enhance and strengthen the breadth and depth of Markel’s offerings to policyholders, producers and investors.”

Majors, Nephila’s co-CEO, said: “We are delighted to be joining Markel, a company with a similar culture, strategic outlook and long-term focus. They have built a great company with a sterling reputation for both outstanding performance and a collaborative business approach, and have a proven track record of successful acquisitions.

“Markel shares our strategic vision for the future of the insurance markets; this transaction will allow us to accelerate our delivery of that strategy, creating additional value for our investors and our trading partners. We are looking forward to working with the Markel team, and are excited by the possibilities from our combined strengths.”

What happens next?

The deal should close in the fourth quarter of 2018; Markel says that Nephila will continue to operate as a separate business unit. Its management team, led by Hagood and Majors, will remain in place. The interesting thing will be to what extent Markel leverages Nephila’s access to the capital markets and what the combined growth of both will be.

The deal makes Markel the biggest player in the ILS space; the combined assets under management of Nephila and Markel CatCo will stand at some $19 billion, around 20 percent of the ILS sector globally.

 

Apollo acquires Aspen

What was the deal?

In August, investment funds managed by affiliates of Apollo Global Management unveiled a deal to acquire Aspen Insurance in an all-cash transaction that valued the business at some $2.6 billion. It paid $42.75 per share, almost 7 percent high than its closing price before the deal was announced.

What did they say?

Alex Humphreys, partner at Apollo, said: “We are tremendously excited for the Apollo Funds to acquire Aspen. We believe that Aspen benefits from strong underwriting talent, specialised expertise and long-standing client relationships which makes them well positioned in the market.

“We look forward to working with Aspen to build on the existing high-quality specialty insurance and reinsurance business and we aim to leverage Apollo’s resources and deep expertise in financial services to support the company as it embarks on its next chapter.”

Chris O’Kane, Aspen’s Group CEO, said: “This transaction is a testament to the strength of Aspen’s franchise, the quality of our business and the talent and expertise of our people. Under the ownership of the Apollo Funds, Aspen will have additional scale and access to Apollo’s investment and strategic guidance, which will help us to accelerate our strategy and take Aspen to the next level.

“We are excited about the future as we embark on a new chapter in our history with a partner that understands our strengths, culture and customer-centric philosophy.”

Glyn Jones, chairman of Aspen’s board of directors, said: “This transaction, which is the outcome of a thorough strategic review by Aspen’s board of directors, provides shareholders with immediate value and will allow Aspen to work with an investor that has substantial expertise and a successful track record in the re/insurance industry.”

What happens next?

The transaction is expected to close in the first half of 2019. Upon completion of the deal, Aspen will be a privately held portfolio company of the Apollo Funds and Aspen’s ordinary shares will no longer be listed on the New York Stock Exchange.

The new buyer will be seeking growth; it will be interesting to see how it looks to achieve this and also whether the re/insurer will embark on a new strategy freed from the scrutiny of being a listed company.

 

AXIS Capital acquires Novae

What was the deal?

In July 2017, AXIS Capital revealed it planned to acquire Lloyd’s insurer Novae Group for £477.6 million ($ million); at 715 pence per share, that was a premium of almost 20 percent on its closing price before the deal.

What did they say?

Albert Benchimol, CEO of AXIS Capital, said: “This is a significant acquisition and an important milestone for AXIS. Acquiring Novae greatly adds to the scale and breadth of our international business and also underscores our commitment to London and to Lloyd’s, which continues to be the pre-eminent market for specialty risks.

“Novae is known for its market-leading underwriting talent, which we expect will thrive at AXIS. Our goal is to bring out the best in both firms as we become one organisation that is even stronger together.”

Matthew Fosh, CEO of Novae, added: “The combination of AXIS and Novae creates a bigger, better business with a wider range of products and services, enabling us to do even more for our clients and partners. The companies share similar values and priorities—we are specialty businesses that place a high priority on our clients and employees.

“Our culture fosters innovation and entrepreneurialism, and I expect that to continue as we bring together the best of our two companies.”

What has happened since?

The deal was completed in October 2017. AXIS says the acquisition created a $2 billion insurer in London and a top 10 re/insurer at Lloyd’s, with total global gross written premiums of $6 billion.

Fosh was made AXIS Capital’s executive chair, Europe, and reports to AXIS Capital president and CEO Benchimol. Novae adopted the AXIS brand and its insurance business merged into AXIS’ international insurance division, led by its CEO, Mark Gregory, who reports to Pete Wilson, CEO of AXIS Insurance.

Novae’s reinsurance business was merged into AXIS Re to form the core of AXIS’ London reinsurance business, led by Richard Milner, president and chief underwriting officer, AXIS Re London and Asia-Pacific.

 

Argo acquires Ariscom

What was the deal?

In March 2018, Argo Group International Holdings acquired Italian specialty insurer Ariscom.

What did they say?

Mark Watson, CEO, Argo Group, said: “Ariscom provides an established platform that we can use to efficiently expand our presence in continental Europe. Italy is one of Europe’s largest and best-performing P&C insurance markets.

“We’re also eager to tap into Ariscom’s existing broker and 
client network throughout Italy, with longer-term opportunities to develop capabilities across Europe—particularly in Spain and Portugal.”

Matt Harris, head of Europe, Middle East and Asia, who took charge of Ariscom, said: “This new branding further unifies the company and reflects Argo’s extensive ambitions for the Italian marketplace.

“By aligning our Italian operation with the Argo brand, we will be better able to realise our growth aspirations across continental Europe and leverage the strength of Argo Group to generate new distribution channels.”

What has happened since?

Ariscom was rebranded to ArgoGlobal Assicurazioni in June. It was announced in April that Giovanni Tucci would serve as managing director of the business, reporting to Harris. Tucci joined Argo from Intesa Sanpaolo Assicura, where he served as technical director.

The deal followed a series of senior leadership appointments within Argo Group’s International segment, as well as its earlier acquisition of Bermuda-based reinsurer Ariel Re.

 

AIG acquires Validus

What was the deal?

In January 2018, AIG revealed that it would acquire Validus Holdings for $5.56 billion in cash, paying $68 a share for the business, which included treaty reinsurer Validus Re, ILS manager AlphaCat, Lloyd’s syndicate Talbot and US specialty player Western World.

What did they say?

Brian Duperreault, president and CEO of AIG, said: “Validus is an excellent strategic fit for AIG, bringing new businesses and capabilities to our general insurance operation, expanding the bench of our management team and deepening our underwriting expertise.

“With our global scale and the strength of our balance sheet, I am confident that Validus will thrive within AIG and strengthen our ability to deliver profitable growth for our shareholders as we strategically position AIG for the future.”

Ed Noonan, Validus’ chairman and CEO, said: “We believe this transaction offers compelling value for our shareholders and reflects the strength of the business we’ve built together with our talented global team.

“Joining AIG and becoming part of a larger, more diversified organisation immediately opens new opportunities for our people and our franchise. Validus will be able to serve clients and brokers in new and exciting ways, which will enhance our ability to grow profitably.”

What happens next?

The deal closed, having received regulatory approvals as well as the approval of Validus shareholders, in July 2018.

Through Validus, AIG is adding reinsurance platform Validus Re to the group, ILS asset manager AlphaCat, and Lloyd’s syndicate Talbot. Furthermore, AIG is incorporating US small commercial excess and surplus underwriting specialist Western World as well as North American crop insurance market Crop Risk Services.

The big question now will be how AIG chooses to leverage these new assets to ensure that the end result is greater than the sum of the parts. Great emphasis has been placed on the access this gives AIG to the ILS markets and what this could mean for its own risk transfer strategy.

 

Enstar acquires Maiden Re North America

What was the deal?

In August 2018, Bermuda-based Enstar Group acquired Maiden Reinsurance North America (MRNA) from a subsidiary of Maiden Holdings for $307.5 million.

What did they say?

Patrick Haveron, Maiden’s chief financial officer and chief operating officer, said: “Today’s announcement along with our previously announced renewal rights transaction will further enhance our capital position. We are moving immediately to improve profitability by implementing additional operational efficiencies and expense reductions through the end of 2018, and we expect to provide further updates as we move forward.”

Lawrence Metz, Maiden’s president and CEO, said: “Today’s announcement of the sale of MRNA represents another step in our continuing strategic review. This transaction will broaden our ability to manage and allocate capital as we move forward, and will create value for our shareholders.”

What happens next?

Enstar will assume approximately $1.3 billion of net loss and loss adjustment expense reserves and unearned premium reserves upon closing. The transaction is expected to close in the fourth quarter of 2018.

Enstar will now put the business in run-off; as part of the transaction, an Enstar subsidiary will novate and assume certain reinsurance agreements from Maiden’s Bermuda reinsurer, including certain reinsurance agreements with MRNA.

The deal was revealed two days after Transatlantic Holdings purchased the renewal rights to Maiden’s US third-party treaty reinsurance book. Maiden also reinsures a significant portion of AmTrust’s book of business.

 

Fairfax acquires Allied World

What was the deal?

In December 2016, Fairfax Financial Holdings revealed it planned to acquire Allied World Assurance Company Holdings for $4.9 billion in cash and stock. The deal was finalised in July 2017.

What did they say?

Prem Watsa, chairman and CEO of Fairfax, said: “We are excited to have Allied World join the Fairfax group. Allied World is a high quality company with an excellent long-term track record and an outstanding management team led by Scott Carmilani.

“Allied World will operate within the Fairfax group on a decentralised basis after closing, and we are looking forward to supporting Scott and the entire team at Allied World in growing their business over the long-term.”

Carmilani, president, CEO and chairman of Allied World, said: “This is a tremendous opportunity for Allied World. Our shareholders are being rewarded for the strong performance of Allied World over the last 10 years since going public. We are strategically aligning ourselves with Fairfax, one of the premier companies in the insurance industry which has a great track record of supporting their operating companies and creating value for shareholders.

“We are excited to be joining the Fairfax organisation—we share their passion for underwriting excellence and their entrepreneurial approach to growing the business with a long-term orientation. Our shareholders will benefit from Fairfax’s tremendous investment capabilities as demonstrated by its superior long-term investment track record.

“The success of Fairfax’s decentralised approach in empowering their management teams to drive profitable underwriting and combining Fairfax’s investment philosophy will position us to create long-term value for shareholders. Fairfax provides a great home for Allied World to continue to build a strong business for our customers, business partners and employees.”

What has happened since?

Carmilani remains chairman, president and CEO of Allied World Assurance Company Holdings. The company has retained its own brand and its results have looked broadly positive since the deal.

 

Arch acquires United Guaranty

What was the deal?

In January 2017, Arch Capital Group completed the acquisition of United Guaranty Corporation (UGC), part of AIG, for some $3.4 billion.

What did they say?

Constantine (Dinos) Iordanou, chairman and CEO of Arch, said: “We’re very pleased to be able to expand our private mortgage insurance business through the acquisition of United Guaranty. Our mortgage insurance segment expands and complements our strengths in the specialty insurance and reinsurance businesses, which continue to be central to our global, diversified operations.”

Marc Grandisson, president and COO of Arch Capital, added: “We are gratified that Arch US MI will be led by experienced professionals in Andrew Rippert and David Gansberg, and welcome our new colleagues from UGC.

“Over the past several months, teams at Arch and UGC have been working together to ensure a successful integration of our combined operations and a seamless transition for our clients.

“Our combined mortgage group looks forward to further strengthening its leadership position in the development of innovative products and services to meet the ever-evolving needs of our clients and the housing finance system.”

What has happened since?

For Arch Capital, this deal was always about boosting its 
mortgage business and increasing its diversification in the process. This deal has certainly delivered on that front but it will be interesting to see the extent of any further growth in its 2018 full-year results.

 

Liberty Mutual acquires Ironshore

What was the deal?

In December 2016, Liberty Mutual unveiled plans to acquire Ironshore from China’s Fosun international through a stock purchase agreement believed to be worth around $3 billion, around 1.45 times its book value, at the end of 2016. The deal was completed in May 2017.

What did they say?

David Long, Liberty Mutual Insurance chairman and CEO, said: “We are pleased to have Ironshore and its proven management team led by CEO Kevin H. Kelley join Liberty Mutual.

“Ironshore has a track record of profitably underwriting global and diverse specialty risks insurance and is an ideal complement to Liberty Mutual, providing additional scale, expertise, innovation and market relationships to our $5 billion Global Specialty business.”

Kelley, Ironshore CEO, added: “The combination of Ironshore and Liberty Mutual is a win-win proposition and value creating for both companies. Ironshore will become part of another ‘A’ rated company with a global reach, a strong balance sheet, wide client base and a much greater capacity to drive profitable growth.”

What has happened since?

The companies said at the time that Ironshore would continue to operate with the same management team and brand, but as part of the larger Liberty Mutual organisation, which has a focus on growing its specialty lines operations. It appears to have worked well so far.

In January 19, 2018, it announced the realignment of its businesses whereby Global Risk Solutions was created to bring together Liberty’s Global Specialty, Ironshore (formerly in Global Specialty), National Insurance (formerly in Commercial Insurance) and the Global Reinsurance Strategy Group (formerly in Corporate & Other) into a single business led by Dennis J. Langwell, formerly the company’s chief financial officer.

 

Argo acquires Ariel Re

What was the deal?

In February 2017, Argo Group International Holdings completed its acquisition of Ariel Re from Banco BTG Pactual and the Abu Dhabi Investment Council for some $235 million in cash.

What did they say?

Mark Watson III, CEO of Argo Group, said: “Ariel Re is a terrific fit for Argo Group—operationally and culturally. We remain focused on delivering enhanced shareholder value. This transaction enables us to build upon the successes realised individually by Argo Group and Ariel Re, utilising our combined strength to deploy capital in selected areas to produce maximum return and continued growth.

“Under the leadership of Jose Hernandez, head of Argo Group’s International Business, the combination of Ariel Re and Argo Re will result in a market-leading business and will make a meaningful and immediate contribution to earnings and return on equity.”

Ryan Mather, Ariel Re’s CEO, said: “Argo Group have long been supporters of Ariel Re and we are delighted to take this relationship forward by bringing Ariel Re under the Argo banner. There is great synergy between the teams from both companies and we are looking forward to working together to strengthen the offering for our clients.”

What has happened since?

In February 2017, Argo Re and Ariel Re combined under the Ariel Re brand. The purchase has made a big impact on Argo’s results, boosting its 2017 gross written premiums by almost 34 percent.

 

ACE acquires Chubb

What was the deal?

In January 2016, ACE completed the acquisition of Chubb for $29.5 billion in cash and stock.

What did they say?

Evan Greenberg, chairman and CEO of ACE in July 2015, said: “We are thrilled to announce the acquisition of Chubb, a venerable company with a great brand. This transaction advances our strategy in a meaningful way and represents an outstanding opportunity to create significant value over a reasonable period of time for both ACE and Chubb shareholders.

“We’re combining two great underwriting companies that are highly complementary. We will make each other better and create a unique company in a class of its own that has greater growth and earning power than the sum of the two companies separately.”

John Finnegan, chairman, president and CEO of Chubb, added: “This is a compelling transaction for all Chubb and ACE stakeholders. The combination brings together two highly respected and successful companies with complementary capabilities, assets and geographic footprints. We are confident that it will deliver strong value to Chubb shareholders, including an immediate premium and participation in the future growth and profitability of a well-positioned combined company.

“We are pleased that the combined company will adopt the Chubb brand and view this as an affirmation that both companies share a commitment to the attributes of quality and service the brand represents. We look forward to working together as we create a best-in-class global franchise in P&C insurance.”

What has happened since?

ACE adopted the Chubb name after closing the deal. According to both companies, the transaction would elevate the business into an elite group of global property and casualty insurers. Greenberg is now chairman and CEO of Chubb Group.

 

CM International acquires Sirius

What was the deal?

In April 2016, Singapore-based CM International Holding (CMIH), the investment arm of China Minsheng Investment (CMI), finalised the acquisition of Sirius International Insurance Group from White Mountains through its Bermuda holding company, CM Bermuda, for around $2.6 billion.

What did they say?

Kevin EunHyung Lee, executive vice chairman of CMI, said: “We are delighted to have finalised the purchase of Sirius which is a cornerstone investment in our financial services endeavours. Sirius’ excellent market performance has proven through its business strategies, expertise and leadership the ability to deliver high quality solutions and consistency to its clients.

“As its parent companies, CMI and CMIH will endeavour to help Sirius expand into the Asian market and further build up its strength.”

Allan Waters, CEO of Sirius Group, said: “This opens a new and exciting chapter in Sirius’ long history. Under CMIH ownership we will see our financial strength and market opportunities multiply. Sirius is fortunate to have found such a quality partner.

“The Sirius management team and employees are excited about joining the CMIH family and the opportunity to maintain our long-held underwriting philosophies in the service of our customers.”

What has happened since?

Waters remains chairman and CEO of Sirius International Insurance Group. More recently, Sirius Group revealed plans to list.

 

Fosun acquires Ironshore

What was the deal?

In November 2015, Fosun International completed the acquisition of the remaining 80 percent of Ironshore it did not already own for $1.8 billion. Fosun had paid about $464 million for the initial 20 percent in August 2014.

What did they say?

Guo Guangchang, Fosun’s chairman, said: “Ironshore’s excellent team has outstanding managing and underwriting insurance capabilities which are widely recognised in the insurance industry. Ironshore has the capability to provide its clients with comprehensive and quality specialty insurance products.

“The successful completion of this transaction marks a historic milestone for Fosun’s investments in the specialty insurance industry as well as the American financial service sector, which significantly boosts our insurance-oriented comprehensive financial capabilities.

“As a long-term shareholder of Ironshore, Fosun will always support the autonomous, stable and healthy development of Ironshore while fully leveraging our global insurance platform resources to enhance Ironshore’s competitiveness in the industry.”

Kevin H. Kelley, CEO of Ironshore, added: “Ironshore is pleased to jointly announce the completion of the merger transaction with Fosun, which will enable us to continue to build upon our international specialty platform and enhance our global brand. Fosun’s financial strength and established investment management approach provides long-term strategic capital to bolster Ironshore’s expansion strategy and further adds to Ironshore’s uniqueness. 

“With our new owner, Ironshore is well positioned for the future as a global insurance industry leader.”

What has happened since?

In May 2017, Ironshore changed hands again when Liberty Mutual Insurance acquired it for $3 billion.

 

Endurance acquires Montpelier Re

What was the deal?

In July 2015, Endurance Specialty Holdings acquired Montpelier Re Holdings for $1.8 billion in cash and stock.

What did they say?

John Charman, chairman and CEO of Endurance, said: “Endurance’s strategic acquisition of Montpelier combines two strong underwriting businesses resulting in an organisation with increased scale, scope and more relevant market presence.

“The acquisition materially expands our breadth of distribution with the addition of a good-sized and scalable Lloyd’s platform and a third-party capital insurance and reinsurance investment product business. We expect the transaction to enhance the long-term value of our business for shareholders with accretion to earnings per share and return on equity.”

Christopher Harris, Montpelier’s president and CEO, said: “This transaction with Endurance provides significant value for Montpelier shareholders through up-front cash and an equity interest in a combined Endurance with enhanced scale, greater market presence and substantial product and geographic diversity. 

“The combination of our balance sheets, our diverse underwriting platforms and high quality books of business is a compelling opportunity for our shareholders, customers and distribution partners.”

What has happened since?

In 2016, Sompo bought Endurance for $6.30 billion.

 

Exor acquires PartnerRe

What was the deal?

In March 2016, Italian private investment company Exor acquired PartnerRe for $6.9 billion. The acquisition completed in March 2016. The deal ended a lengthy and tumultuous three-way tussle which for a long time also involved AXIS Capital.

What did they say?

John Elkann, chairman and CEO of Exor, said: “Today’s agreement is very positive for PartnerRe and Exor. Under our stable and committed ownership, PartnerRe will continue to develop as a leading independent global reinsurer. Exor looks forward to working with the board of directors and the management of PartnerRe to ensure a successful path forward.

“I would like to thank our fellow shareholders for their continuing support over recent months.”

Jean-Paul Montupet, PartnerRe chairman, said: “We are pleased to reach this agreement with Exor, which we believe is in the best interest of our shareholders. Since Exor made its initial offer to acquire the company in April 2015, the PartnerRe Board has been focused on maximising value for our shareholders while positioning PartnerRe for long-term success.

“We have carefully and thoroughly evaluated each development over the past several months, and believe that this thoughtful and deliberate approach was critical to delivering a transaction that represents a significant improvement in the price and terms of Exor’s original proposal.

“Importantly, Exor is committed to ensuring that the unique culture, brand and business that our dedicated employees have successfully built over the past 20 years remain intact.”

What has happened since?

Emmanuel Clarke remains CEO of PartnerRe, a position he has held since March 2016.

 

XL acquires Catlin

What was the deal?

In May 2015, XL Group completed its acquisition of Catlin Group for approximately $4.1 billion.

What did they say?

Mike McGavick, CEO of XL, said: “After nearly two years of discussions, and several months of intense planning, we are extremely pleased to officially be one company. Starting today, we are a larger, stronger, more capable firm, with a leading presence in the global specialty insurance and reinsurance markets.

“Most importantly, with our combined talent and expertise we are now in an incredible position to better assist clients in solving the world’s most complex risks.”

Stephen Catlin, CEO of Catlin, said: “XL is a compelling partner for the Catlin business. Both businesses have been built on underwriting excellence and benefit from strong cultural compatibility. Together, the combined entity will be a market leading global specialty and property catastrophe insurer which will be far better positioned to respond to the changing dynamics that are impacting the broader insurance and reinsurance markets.

“We expect the enlarged business to benefit from increased diversification, significant further economies of scale, strengthened franchises in each of its markets and an improved standing with intermediaries.

“As a result, XL Catlin will be better equipped to serve its clients across a range of distribution channels and geographies with an enhanced suite of capabilities and products.”

What has happened since?

The company has been trading as XL Catlin; McGavick remained CEO, and Catlin joined XL as executive deputy chairman. All this has since changed when, in September 2018, the deal closed on AXA’s acquisition of XL Catlin for $15.3 billion.

 

Sompo acquires Endurance Specialty

What was the deal?

In March 2017, Sompo Holdings completed its acquisition of Endurance Specialty Holdings for $93 per share, valuing the company at $6.3 billion.

What did they say?

Kengo Sakurada, president and CEO of Sompo Holdings, said: “Today’s agreement marks the beginning of Sompo’s overseas transformation which undoubtedly enhances the quality and reach of our insurance services. Endurance brings strength in the primary insurance business in developed markets.

“Endurance also brings a highly experienced executive team led by one of the world’s leading P&C CEOs, John Charman. Charman, and certain shareholders associated with him, representing in the aggregate approximately 4.9 percent of Endurance ordinary shares, have agreed to vote in favour of the proposed transaction.

“This acquisition will be integral in helping Sompo realise its goal of providing insurance and related services of the highest quality which contribute to the security, health and wellbeing of its customers.”

Charman, Endurance CEO, added: “Today, we have strategically aligned ourselves with Sompo, a large, well capitalised and highly respected global insurance (and reinsurance) company headquartered in Japan. This signals the beginning of an exciting new chapter for Endurance, our wonderful and incredibly talented people and our much-valued clients. 

“When I joined Endurance just over three years ago, I stated quite publicly that cost-efficient scale, globally diversified insurance and reinsurance products as well as market relevance were absolutely essential to our future success. I also signalled that I would seek out a high quality, strong Asian partner to further complement our global business capabilities for the future. Our alignment today with SOMPO achieves all those goals and promises so much more.

“It is with great honour and with much joy that we all look forward to being welcomed as important family members of Sompo. Finally, to our Endurance shareholders, we thank you for your loyalty and trust over the years and are happy that you have been rewarded with an attractive premium for your investment.”

What has happened since?

Following the acquisition, Sompo Japan Nipponkoa Insurance has launched a fully integrated global commercial insurance and reinsurance platform based in Bermuda, which has been named Sompo International. The new corporation has its own board, led by Charman as chairman and CEO, reporting to Sompo CEO Kengo Sakurada.

 

RenaissanceRe acquires Platinum

What was the deal?

In March 2015, RenaissanceRe acquired Platinum Underwriters for $1.9 billion.

What did they say?

Kevin O’Donnell, president and CEO of RenaissanceRe, 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.”

What has happened since?

The combined company retained RenaissanceRe’s name and headquarters. The company is still led by president and CEO O’Donnell.

 

Bermuda, insurers, M&A, market

Bermuda Re