1 April 2015News

Montpelier acquisition to generate $60m in cost savings

Endurance will look to generate substantial annual cost synergies of more than $60 million and non-recurring integration related costs of $50 million as a result of its recently proposed acquisition of Montpelier Re.

On an analysts call, the Bermudian reinsurer’s chief financial officer, Mike McGuire, explained that the company has benefitted from performing due diligence over the last couple of months.

He added that Endurance now has a good understanding of Montpelier Re’s corporate structure and organisation, and described “significant areas of overlap that we’d be looking to rationalise as part of the combination.”

“There are areas that are new and additive, but equally there are very strong opportunities for us to combine and rationalise expense bases of the combined organisation,” he said.

McGuire added that he expects the transaction to create $300-$500 million of additional excess capital by the end of 2016.

“This would provide us with substantially improved financial flexibility to further invest and continue the development of our business, to expand our underwriting or investment risk appetite if conditions improve, or to manage our capital base.”




More on this story

News
11 August 2017   Bermuda-based Endurance helped boost the earnings of its new parent Sompo Holdings in the period April and June 2017.
News
22 May 2017   AM Best has placed the financial strength rating of A (Excellent) of Sompo Japan Canopius Reinsurance (Switzerland) under review with developing implications.
News
24 March 2017   Endurance Specialty Holdings has appointed Brad Gow to its new position of global cyber product leader.

More on this story

News
11 August 2017   Bermuda-based Endurance helped boost the earnings of its new parent Sompo Holdings in the period April and June 2017.
News
22 May 2017   AM Best has placed the financial strength rating of A (Excellent) of Sompo Japan Canopius Reinsurance (Switzerland) under review with developing implications.
News
24 March 2017   Endurance Specialty Holdings has appointed Brad Gow to its new position of global cyber product leader.