Reinsurance News

Tokio Marine selling stake in RenRe

7th January 2020 - Author: Matt Sheehan

Bermudian reinsurance firm RenaissanceRe (RenRe) has announced that Tokio Marine plans to sell its 3.9% stake in the company, worth about $334 million.

RenaissanceRe buildingThe stake will be offloaded via an underwritten public secondary offering of 1,739,071 common shares by Tokio Marine & Nichido Fire Insurance Co., Ltd.

These shares formed part of the purchase price when RenRe acquired Tokio Millenium Re back in March 2019.

The $1.5 billion consideration for this deal consisted of $1.22 billion in cash and $250 million of RenRe common shares.

Tokio Marine will receive all of the net proceeds from the share offering, which is expected to close on January 9, 2020, subject to customary closing conditions.

Additionally, RenRe disclosed that Morgan Stanley & Co. LLC is acting as the sole underwriter for the offering.

Analysts at Wells Fargo commented on the offering: “After the close on 1/6 RNR announced that Tokio Marine was selling its 1.7 million share ownership (or around 4% of Ren’s shares outstanding) in the company that it had acquired at the time of selling its reinsurance business (TMR) to Ren last March.”

“Ren waived the one year lock-up period (which was due to expire in March 2020), letting Tokio Marine liquidate its stake sooner-than-expected,” they explained. “Given that TMR sold its reinsurance business to Ren we did not expect them to be a long-term shareholder (and do not expect investors did either).”

RenRe is a global provider of property, casualty and specialty reinsurance and certain insurance solutions to customers, principally through intermediaries.

Tokio Marine, meanwhile, is the largest property and casualty insurance group in Japan and operates across 38 countries. It also forms part of Japanese conglomerate Mitsubishi.

Print Friendly, PDF & Email

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 post:
WTW & eBaoTech to provide one-stop insurance middle office platform

Global re/insurance broker Willis Towers Watson (WTW) has entered into a new partnership with digital insurance solution provider, eBaoTech, to...