RenaissanceRe has been given the green light by regulators to acquire fellow Bermudian Platinum Underwriters.
The transaction remains subject to approval by the shareholders of Platinum at its shareholder meeting on February 27, 2015.
If the transaction is approved by Platinum’s shareholders, the parties expect the transaction to close on the morning of Monday, March 2, 2015.
The agreement, which will see Platinum acquired for $1.9 billion, has been unanimously approved by both companies' boards of directors.
The aggregate consideration for the transaction will consist of 7.5 million RenaissanceRe common shares, valued at approximately $761 million, and $1.16 billion of cash.
The acquisition price represents a 24 percent premium to Platinum's closing price per common share as of November 21, 2014.
The deal has divided rating agency opinion, with Moody’s and AM Best placing RenRe on negative watch. Standard & Poor’s (S&P) and Fitch have affirmed the ratings of RenRe and placed it on a stable outlook.
RenRe, Platinum Underwriters, Reinsurance, Bermuda