Renaissancere Holdings Ltd. · NYSE:RNR
Renaissancere — Merger or Acquisition (May 2023)
16 slides from Renaissancere's merger presentation, May 22, 2023
Slide 1: RenaissanceRe to Acquire Validus Re
RenaissanceRe to Acquire Validus Re May 22, 2023
Slide 2: Disclaimer
Disclaimer This presentation is being delivered on behalf of RenaissanceRe Holdings Ltd. (“RenaissanceRe” or the “the Company”) and refers to the Company’s acquisition of certain businesses from AIG, which include (i) Validus Reinsurance Ltd. and its consolidated subsidiaries, (ii) AlphaCat and (iii
Slide 3: Key features of today's transaction
Key features of today’s transaction ▪ 100% acquisition of certain businesses from AIG, which include (i) Validus Reinsurance Ltd. and its consolidated subsidiaries, (ii) AlphaCat, and (iii) renewal rights for the Talbot treaty business, referred to hereafter as “Validus Re” Transaction ▪ AIG to deli
Slide 4: A strategic and financially compelling acquisition
A strategic and financially compelling acquisition 1 ▪ Advances our positioning as a leading Global P&C Reinsurer Advances our strategy ▪ Provides additional scale, and strategic options to deploy capital over the cycle ▪ Increases our value to customers, and benefits shareholders 2 ▪ Over $3B of Gr
Slide 5: A strategic and financially compelling acquisition (cont'd)
A strategic and financially compelling acquisition (cont’d) 5 ▪ AIG is a top 5 RenaissanceRe client by premium volume: deal provides options for Deepens relationship with increased future strategic engagement a core trading partner ▪ If AIG exercises its option, AIG is added as a new Capital Partner
Slide 6: Validus Re: a global, diversified reinsurance franchise
Validus Re: a global, diversified reinsurance franchise Key Highlights Business Mix (FY2022 - GPW) (1) Background: Validus Re is AIG’s reinsurance business with Validus Reinsurance Ltd. the principal entity writing ~$3.1B (1) GPW in 2022. Credit 11% Property 28% Headquarters: Bermuda Employees: 255
Slide 7: …matched with… accelerates our successful long-term strategy
Acquisition accelerates our successful long-term strategy Best Underwriter …matched Desirable risk Efficient capital with… Superior customer Superior capital Superior risk selection relationships management • Partners with a customer to • 100% reinsurance: deep • Expected to improve operating access
Slide 8: Combined company is larger, stronger, and diversified
Combined company is larger, stronger, and diversified RenaissanceRe Standalone GPW Validus Re Targeted GPW (1) Combined (FY2022) Credit Credit Credit 12% ~11% ~11% Property Specialty Property Specialty ~35% Specialty Property 12% 41% ~19% ~14% ~39% Gross Premiums $9.2B ~$2.7B ~$11.9B Written: Casual
Slide 9: Acquisition grows our attractive portfolio in favorable market conditions
Acquisition grows our attractive portfolio in favorable market conditions US Property CAT ROL Index (1) (index = 100 in 1990) 300 250 200 150 100 50 US 10Y Treasury Yields (%) (2) 5.00 4.00 3.00 2.00 1.00 0.00 Sources: (1) Guy Carpenter US Property CAT ROL index (2) Market Yield on US Treasury Secur
Slide 10: Acquisition continues our journey to add scale and diversification
Acquisition continues our journey to add scale and diversification RenaissanceRe – GPW Composition since 2014 (FY GAAP, $B) Adding scale in favorable market Building leverage and options conditions Expected increase of ~$2.7B (1) with acquisition of Validus Re 11.9 Growth accelerated by acquisit
Slide 11: Acquisition creates a top 5 P&C reinsurer
Acquisition creates a top 5 P&C reinsurer Largest P&C Reinsurers (1) (FY2022, P&C Reinsurance GPW $B) 36.2 (2) 25.5 (2) 23.8 17.0 11.9 10.6 (2) 9.3 +2.7 (3) 7.4 7.0 6.9 9.2 Munich Re Hannover Re Swiss Re Berkshire RenaissanceRe RenRe SCOR Everest Re Fairfax PartnerRe Arch Hathaway + Validus Re #1 #2
Slide 12: Acquisition extends our focused and unique strategic position
Acquisition extends our focused and unique strategic position Our purpose: ▪ Protect communities and enable prosperity Our vision: ▪ Be the best underwriter Our mission: ▪ Match desirable risk with efficient capital What we are: ✓ Leading Global Property & Casualty Reinsurer Value creation formula:
Slide 13: Validus Re portfolio will benefit from most efficient capital platform in the industry
Validus Re portfolio will benefit from most efficient capital platform in the industry RenaissanceRe – Total Managed Capital ▪ RenaissanceRe Capital Partners is a leading (FY2022) asset management business with a proven track record Managed ‒ ~$10 billion in third party capital across both Collatera
Slide 14: Acquisition enhances our three drivers of profit
Acquisition enhances our three drivers of profit Components of Marginal Impact Across Three Drivers of Profit Driver of Profit Components ▪ Adds expected incremental ~$2.7B (1) of Total GPW: Underwriting Income − Casualty & Specialty GPW of approx. ~$1.8B (1), expected to book at ~95% COR, in line
Slide 15: Financially attractive transaction for shareholders
Financially attractive transaction for shareholders Expected upon close: (1) (2) ✓ Double Digit EPS Accretion on a Run Rate Basis ✓ Immediately Accretive to BVPS and ROE ✓ Modest Initial TBVPS Dilution Offset by Significant ROTE Accretion ✓ Maintains Substantial Financial Strength and Financial Flex
Slide 16: Transaction highlights
Transaction highlights Advances our strategy Provides access to an attractive portfolio Accelerates growth in favorable market conditions Enhances our three drivers of profit Deepens our relationship with a core trading partner Strong financial profile Mitigated downside risk Renaissan
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