Friday, December 21, 2018

RenaissanceRe Continues To Do Things Its Own Way

I really have to admire a company that gets pushed by a long-term shareholder to conduct a strategic review and sale process only to turn around in less than a month and announce a significant acquisition. With RenRe’s (RNR) acquisition of Tokio Millennium Re from Tokio Marine Holdings (OTCPK:TKOMY), management has made it clear that they continue to see more value for shareholders as an independent company and that, like it or not, they’re going to run the company more or less the way they always have.

I’ve been a long-term admirer of RenRe, so I really have no problem with this decision. Although there is still considerable uncertainty in the market over Jan 1 reinsurance renewal pricing, I think RenRe is sitting in a relatively comfortable (if not good) position as a ready and willing supplier of capacity at the right price, and I believe the TMR transaction is a low-risk deal that could offer double-digit accretion as it plays out.

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RenaissanceRe Continues To Do Things Its Own Way

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