Bermudian reinsurer RenaissanceRe has secured regulatory approvals required to complete the previously announced acquisition of rival Tokio Millennium Re (TMR).
As per the terms of the deal, which was originally signed in October last year, RenaissanceRe agreed to buy TMR in a cash-stock deal worth about $1.5bn.
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The transaction is still pending the satisfaction of customary closing conditions.
As per the terms of the agreement, an affiliate of RenaissanceRe will acquire Tokio Marine’s reinsurance platform, including Tokio Millennium Re AG and Tokio Millennium Re (UK) (TMR) from its parent company Tokio Marine Holdings in Japan.
The deal, which includes underwriting entities based in Bermuda, London and Zurich, has been structured as cash payment of around $1.22bn and $250m worth of RenaissanceRe common shares.
Additionally, Tokio Marine and RenaissanceRe have agreed to sign a business cooperation agreement to improve their business relationship.
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By GlobalDataThe agreement will also extend support to buy a portion of the international reinsurance of Tokio Marine and its affiliates.
Furthermore, RenaissanceRe was provided a $500m adverse development cover by Tokio Marine to protect TMR’s stated reserves at closing, including unearned premium reserves.
RenaissanceRe, founded in 1993, provides property, casualty and specialty reinsurance and certain insurance solutions to customers in Bermuda, Ireland, Singapore, Switzerland, the UK and the US.
