RenaissanceRe Holdings Ltd. (RenRe), a distinguished member of the Association of Bermuda Insurers and Reinsurers (ABIR), has successfully concluded its acquisition of Validus Re and its subsidiaries from American International Group (AIG), securing its position as the fifth-largest property and casualty (P&C) reinsurer in the world.
Validus Re was among the pioneering startups that emerged in Bermuda in response to the profound insured losses incurred during the devastating 2005 hurricane season.
John Huff, President & Chief Executive Officer of ABIR, hailed this achievement as a historic milestone for both RenaissanceRe and Bermuda. He emphasised, “This is truly a landmark acquisition, both for RenaissanceRe and for Bermuda.”
“The combination of two Bermuda-born companies to create a top-five, diversified global reinsurer speaks volumes about the Bermuda market’s growth, evolution and continuing relevance. ABIR congratulates RenaissanceRe on this significant milestone,” Huff added.
The timing of this acquisition, coinciding with the 30th anniversaries of both RenaissanceRe and ABIR, serves as a powerful testament to Bermuda’s unrivaled standing as the optimal hub for operating a global re/insurance enterprise, Huff said.
“Bermuda’s internationally recognised regulator, world-leading talent base and culture of innovation drive the market’s leadership in finding solutions to large and complex risks such as climate change and cyber. In these times of uncertainty and rapid change, Bermuda has never been more valuable to the world,” Huff concluded.
First announced back in May and approved by the European Commission in August, RenRe closed its takeover of the reinsurer on November 1, which includes Validus Reinsurance Ltd. and its consolidated subsidiaries, AlphaCat Managers Ltd., and all renewal rights to the assumed reinsurance treaty unit of Talbot.
As previously announced, the deal sees AIG retain both Talbot Underwriting and Western World, which it acquired as part of its takeover of Validus Holdings in 2018.
In total, AIG received a consideration of $3.3 billion in cash, including a pre-closing dividend, and roughly $275 million in RenRe common shares.
