The shareholders of Platinum Underwriters Holdings Ltd. have “overwhelmingly approved” the takeover of the reinsurance firm, by other Bermudian reinsurance specialists and third-party reinsurance capital manager RenaissanceRe Holdings.
RenRe received regulatory approval for its proposed acquisition of Platinum a couple of weeks ago and the approval of the shareholders was the final stepping stone in the process.
“I’d like to thank our shareholders for their support of this transaction, which we believe will deliver them significant value as well as benefit our clients and brokers,” Michael D. Price, President and Chief Executive Officer of Platinum said
The transaction is expected to close on the 2nd March 2015.
Once completed the acquisition could bring new opportunities to third-party investors in RenaissanceRe’s jont ventures and insurance-linked funds, with Platinum also having a property catastrophe book, some of which RenRe may elect to share with third-party capital in order to keep its book balanced.
The question still remains though, whether the diversification and greater scale that Platinum brings to RenRe is enough on its own to make the difference to help the firm through the softened reinsurance market environment.
As we said before, time will tell.