Bermuda-based RenaissanceRe Holdings has signed a definitive merger agreement to acquire Platinum Underwriters Holdings, for around $1.9bn.
As part of the deal, RenaissanceRe will pay $76 per common share in stock and cash to shareholders of Platinum, or approximately $1.9bn.
RenaissanceRe Holdings president and CEO Kevin J. O’Donnell said: "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."
Platinum Underwriters offers property, casualty and finite risk reinsurance services through reinsurance brokers for a diverse clientele across the globe.
The company operates through its principal subsidiaries in Bermuda and the US.
Platinum Underwriters Holdings president and CEO Michael Price said: "RenaissanceRe supported our formation and initial public offering in 2002 and has a demonstrated track record of underwriting excellence."
Subject to customary regulatory approvals, the transaction is expected to be completed in the first half of 2015.
Morgan Stanley is serving as financial advisor to RenaissanceRe and Willkie Farr & Gallagher as legal counsel in connection with the transaction, while Goldman, Sachs & Co. is acting as financial advisor to Platinum and Sullivan & Cromwell as legal counsel.
Image: Platinum Underwriters provides property, casualty and finite risk reinsurance services. Photo: courtesy of David Castillo Dominici/ FreeDigitalPhotos.net.