Advertise here, Reinsurance News

Menu

Reinsurance News

RenaissanceRe’s $1.5bn acquisition of Tokio Millennium Re approved

13th March 2019 - Author: Steve Evans

Bermudian reinsurance firm RenaissanceRe has had its $1.5 billion acquisition of Japanese re/insurance group Tokio Marine’s reinsurance units approved by regulators.

RenaissanceRe logo

The acquisition, which was announced back in October 2018, sees RenaissanceRe acquiring the Tokio Millennium Re AG and Tokio Millennium Re (UK) Limited units from the Japanese giant Tokio Marine Holdings, Inc.

The deal covers underwriting entities based in Bermuda, London and Zurich, in a deal valued at roughly $1.5 billion in total consideration, made up of payments from RenaissanceRe to Tokio Marine of around $1.22 billion of cash and $250 million of RenaissanceRe common shares.

Late yesterday, RenaissanceRe said that it had received all the necessary regulatory approvals for the transaction, clearing the final hurdles to completing the acquisition.

The target had always been to close the M&A deal during the first-half of 2019 and that looks to be on-track.

Now that the regulatory approvals have been received, RenaissanceRe said that both parties involved anticipate closing the transaction as soon as possible, subject to satisfying any customary closing conditions.

As part of this arrangement, RenaissanceRe has also secured an agreement that sees it with preferential access to participate in some of the international reinsurance purchases of Tokio Marine and its affiliates.

In addition, Tokio Marine is putting up a $500 million adverse development cover, that will protect Tokio Millennium Re’s stated reserves at the closing of the acquisition, including any unearned premium reserves.

As a result, RenaissanceRe gets the benefits of acquisition, plus access to risk from one of the largest insurance group’s in the world, as well as protection across the portfolio and tail-risk that Tokio Millennium Re held.

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous article:
PartnerRe reorganises P&C structure & leadership as Goldie departs

Bermuda-based reinsurer PartnerRe has announced a raft of changes at the top of its property and casualty reinsurance leadership team,...

Close