RenRe under pressure from activist to sell: WSJ report

Share

According to a Wall Street Journal article, prolific Bermudian reinsurance firm and third-party capital manager RenaissanceRe is coming under pressure from an activist investor to put itself up for sale.

Long time shareholder TimesSquare Capital wants RenaissanceRe to initiate a sales process for the reinsurance firm, with the WSJ reporting this call could come in the form of a letter as early as today.

The report says that TimesSquare Capital Management LLC believes RenaissanceRe’s shares are undervalued and that given the recent flurry of reinsurance mergers & acquisitions dealmaking, the firm should look to capitalise on that by achieving a premium for them in a sale.

RenRe would likely attract a lot of interest, given its deep underwriting expertise, diversification since the acquisition of Platinum, leading position in catastrophe risk, longstanding relationships with third-party investors and access to alternative reinsurance capital.

TimesSquare Capital, which has over $19 billion in assets, owns around 2% of RenRe’s shares, the WSJ article states. Sources told the WSJ that the investor may take action imminently to pressure the reinsurance firm to look for a sale.

It’s certain that RenRe would achieve a significant premium if it did come up for sale, given the value of its franchise.

It is one of the best established managers of third-party capital in the reinsurance industry, with the ability to leverage the capital markets to support its underwriting and add efficiency to its capital already in place, something other re/insurers are striving to achieve.

At this stage this remains rumours, but as ever rumours have a funny habit of becoming reality very quickly at this stage in the market cycle.

———————————————————————
Artemis Live - ILS and reinsurance video interviews and podcastView all of our Artemis Live video interviews and subscribe to our podcast.

All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance video content and video interviews can be accessed online.

Our Artemis Live podcast can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.

Print Friendly, PDF & Email

Artemis Newsletters and Email Alerts

Receive a regular weekly email newsletter update containing all the top news stories, deals and event information

  • This field is for validation purposes and should be left unchanged.

Receive alert notifications by email for every article from Artemis as it gets published.

Read previous post:
Iran looks to ILS as reinsurance replacement due to sanctions: Report

It's been reported that Iran is looking to the insurance-linked securities (ILS) market and intends to establish regulations that would...

Close