Renaissancere Holdings Ltd. · NYSE:RNR
Renaissancere — Merger or Acquisition (October 2018)
25 slides from Renaissancere's merger presentation, Oct 31, 2018
Slide 1: RenaissanceRe Agreed Acquisition of Tokio Millennium Re
RenaissanceRe Agreed Acquisition of Tokio Millennium Re Accelerating our Strategy and Enhancing our Global Reinsurance Leadership October 31, 2018 Exhibit 99.2
Slide 2: Disclaimer
Disclaimer Any forward-looking statements made in this presentation reflect the current views of RenaissanceRe Holdings Ltd. (“RenaissanceRe” or the “Company”) with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litiga
Slide 3: Acquisition of Tokio Millennium Re + investment from State Farm
Acquisition of Tokio Millennium Re + investment from State Farm Continued execution of our strategy
Slide 4: Key transaction features of today's transactions
Key transaction features of today’s transactions Transaction Acquisition of 100% of Tokio Millennium Re AG, TMR UK Ltd. and their subsidiaries (collectively “TMR Group”) Deal Value 1.02x tangible book value of TMR Group as of the date of closing Total transaction value of $1,469MM assuming tangible
Slide 5: Transaction consideration detail – Purchase of TMR Group
Purchase price based on TMR Group’s balance sheet as of 6/30/2018, prepared in accordance with IFRS; final consideration will depend on closing balance sheet. Pre-closing dividend(s) are subject to regulatory approvals. If the pre-closing dividend is less than estimated, the difference will be paid
Slide 6: Key transaction benefits – TMR Group
Key transaction benefits – TMR Group Comments Accelerates our leading, successful strategy Innovative deal structure provides us with a reinsurance portfolio and strategic options Deploys our platform and capabilities to a business that fits well with our strategy and focus Allows us to further leve
Slide 7: Key transaction benefits – TMR Group (cont'd)
Key transaction benefits – TMR Group (cont’d) Comments Opportunities to grow our Ventures business Ability to optimize overall portfolio by working with our capital partners Improves our ability to efficiently match risk to capital by providing incremental risk to our joint ventures Proposed transac
Slide 8: We are bringing a long-standing relationship to bear as part of this transaction
We are bringing a long-standing relationship to bear as part of this transaction Platform spanning across 38 countries and regions with more than 40,000 group employees Market cap: ~$35Bn Shareholders’ equity: $17Bn Well-established and highly regarded position within the broader insurance industry
Slide 9: Acquisition is consistent with, and accelerates, our leading, successful strategy
Acquisition is consistent with, and accelerates, our leading, successful strategy Superior customer relationships Superior capital management Superior risk selection Best Underwriter Most desirable risk Most efficient capital …matched with… 1 2 3 Improves “access to risk” Ongoing cooperation with To
Slide 10: RenaissanceRe overview
($MM) 2015 2016 2017 9M18 GPW $2,011 $2,375 $2,798 $2,763 NPW 1,416 1,535 1,871 1,721 Net Income(3) 409 481 (245) 281 ROAE(4) 9.8% 11.0% (5.7%) 9.1% Combined Ratio 64.7% 72.5% 137.9% 76.7% Cash & Investments $9,506 $9,738 $10,865 $11,999 Common Shareholders’ Equity $4,332 $4,467 $3,991 $4,237 Renais
Slide 11: Tokio Millennium Re: a global, diversified reinsurance franchise
Tokio Millennium Re: a global, diversified reinsurance franchise Background: Established in 2000 by Tokio Marine Headquarters: Switzerland Key financial highlights(1): $1.4Bn in shareholders’ equity(2) $1.7Bn in total gross premiums written(3) $1.4Bn in gross premiums written, excl. TMR Group’s Thir
Slide 12: Rebalanced portfolio will reflect our current business mix
Rebalanced portfolio will reflect our current business mix TMR has a strong franchise to access risk: Global underwriting platform Diverse portfolio of risk Expertise of leading global insurance parent Initiatives to improve portfolio underway 1 Current TMR Group Portfolio(1) Addressable Risk Portfo
Slide 13: Pro forma company is larger and remains balanced
Pro forma company is larger and remains balanced RenaissanceRe Standalone TMR Group Pro Forma Combined $3.2Bn ~$0.7 - $1.0Bn ~$3.9Bn (1) RenaissanceRe premium based on last 12 months gross premiums written as of September 30, 2018. We believe we can leverage a large pool of risk to create a strong b
Slide 14: Financial Drivers Summary and Financial Impact
Operating EPS Book Value Per Share (BVPS) Operating Return on Equity Tangible Book Value Per Share (TBVPS) We expect a run-rate after-tax earnings contribution of ~$100MM(1) 1. Earnings drivers: ~$700MM of base GPW at acceptable technical ratios Incremental ~$3Bn of invested assets Material synergie
Slide 15: Substantial pro forma financial strength and flexibility
(1) RenaissanceRe debt and RenaissanceRe total capital exclude DaVinciRe Holdings Ltd. (“DaVinci”) debt as RenaissanceRe does not guarantee or provide credit support for DaVinci and RenaissanceRe’s financial exposure to DaVinci is limited to its investment in DaVinci shares and counterparty credit r
Slide 16: Acquisition of TMR Group – conclusion
Acquisition of TMR Group – conclusion Accelerates our leading, successful strategy Expected to be immediately accretive to shareholders Benefits our clients and broadens access to risk through increased scale Attractive pro forma reinsurance portfolio Opportunities to enhance our third-party capital
Slide 17: Expanding our relationship with State Farm
Expanding our relationship with State Farm Overview State Farm is the largest P&C insurance provider in the U.S. Surplus of $99Bn as of June 30, 2018 Relationship with RenaissanceRe spanning over 19 years Co-founders of Top Layer Re (1999) and DaVinci (2001) Strategic Benefits Transaction provides o
Slide 18: Acquisition of Tokio Millennium Re + investment from State Farm
Acquisition of Tokio Millennium Re + investment from State Farm Continued execution of our strategy
Slide 19: Our strategy and competitive advantages
Our strategy and competitive advantages We generate value for shareholders by executing our strategy of matching the most desirable risk with the most efficient capital; the TMR Group transaction adds material incremental reinsurance risk to our system at an attractive price Superior customer relati
Slide 20: Superior customer relationships
Note: “platform” defined as balance sheets domiciled in US, Bermuda and Europe; Singapore incorporated in Bermuda results Superior customer relationships ~$1.5Bn of premium is assumed from clients served on all of our UW platforms 74% of our premium is assumed from clients with whom we trade in mult
Slide 21: We have materially grown our gross reinsurance portfolio, matched to efficient capital
In response to market conditions, we have materially grown our gross reinsurance portfolio, and matched to efficient capital RenaissanceRe Premium Composition Since 2014 Organic growth Increase of ~$800MM in GPW Premium shared with JV partners and ceded to other reinsurers Casualty / Specialty NPW P
Slide 22: Superior capital management in our operations and M&A
Superior capital management in our operations and M&A Optimal leverage Capital return to shareholders Minimize shareholder dilution in acquisitions(2) P P P Over $6.9Bn GAAP net income since inception… $3.3Bn total share repurchases $1.0Bn dividends to common shareholders Over 60% of earnings return
Slide 23: RenRe Innovation
RenRe Innovation Our pioneering efforts in the ILS sector have produced substantial value for our shareholders Hurricane Andrew (1992) Northridge (1994) European windstorms 9/11 Enron Worldcom (2001) 04/05 storms Financial crisis Japan earthquake (2011) Industry consolidation (2015) 2017 losses RenR
Slide 24: Our strategy has consistently created value for our shareholders
Our strategy has consistently created value for our shareholders Global financial crisis Japanese + NZ EQ Thai Flood HIM Mexico EQ Calif Wildfire Average: 14.1% Historical Return on Average Common Equity – Annualized Historical Book Value per Share + Accumulated Dividends 2008 - 2017 CAGR: 10.8%
Slide 25: Renaissance House, Pembroke, Bermuda
Renaissance House 12 Crow Lane Pembroke HM19 Bermuda www.renre.com
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