24th November 2014

RenaissanceRe to Acquire Platinum Underwriters for US$1.9bn

Merger of two Bermuda-based firms to accelerate growth in RenaissanceRe's US specialty and casualty reinsurance business.

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RenaissanceRe to Acquire Platinum Underwriters for US$1.9bn

RenaissanceRe Holdings Ltd. and Platinum Underwriters Holdings, Ltd. announced today that the companies have entered into a definitive merger agreement under which RenaissanceRe will acquire Platinum. Under the terms of the transaction, the common shareholders of Platinum will receive US$76.00 per common share in stock and cash, or approximately US$1.9bn. RenaissanceRe expects the transaction to be accretive to book value per share and earnings per share and that the combined company will have substantial financial strength and flexibility post-closing.

Kevin J. O’Donnell, President and Chief Executive Officer of RenaissanceRe, commented: “We are very pleased to have entered into the definitive agreement to acquire Platinum. It is a well-run company and its integration with RenaissanceRe will benefit our combined companies’ clients through an expanded product offering and broker relationships. It will also accelerate the growth of our US specialty and casualty reinsurance platform and as a result, create enhanced value for our shareholders.”

Mr. O’Donnell continued: “Platinum is a company we know well as we supported its formation and initial public offering in 2002. Platinum’s disciplined approach to underwriting and risk management is a strategic and cultural fit for RenaissanceRe and its book of business will be integrated within our risk management framework. After the transaction closes, we anticipate our combined company will continue to have the very strong capital and liquidity position you have come to expect from RenaissanceRe.”

The aggregate consideration for the transaction will consist of 7.5 million RenaissanceRe common shares, valued at approximately US$761m, and US$1.16bn of cash. The cash consideration will be funded through a pre-closing dividend from Platinum, RenaissanceRe available funds and the proceeds from the issuance of new senior debt.

The acquisition price of US$76.00 represents a 24% premium to Platinum’s closing price per common share as of November 21, 2014. At closing, Platinum shareholders will receive a US$10.00 per share special pre-closing dividend and will be entitled to elect to receive, for each Platinum share held, either (i) US$66.00 in cash, (ii) 0.6504 RenaissanceRe common shares or (iii) 0.2960 RenaissanceRe common shares and US$35.96 in cash. All elections will be subject to proration such that RenaissanceRe issues exactly 7.5 million common shares. Following completion of the transaction, Platinum’s existing shareholders will own approximately 16% of RenaissanceRe’s outstanding shares.

RenaissanceRe’s senior management team, led by Kevin O’Donnell, and eleven member Board of Directors will remain in place. The combined company will retain RenaissanceRe’s name and headquarters.

For the twelve months ended September 30, 2014, the two companies had pro forma gross premiums written of US$2.0 bn. Shareholders’ equity will increase from US$3.7bn to US$4.5bn and total cash and invested assets will increase from US$7.0bn to US$9.4bn on a pro forma basis. RenaissanceRe expects to achieve approximately US$30m of run-rate annual cost savings and to realize meaningful capital efficiencies from the combination.

The agreement has been unanimously approved by both companies’ Boards of Directors. The transaction is expected to close in the first half of 2015 and is subject to customary regulatory approvals as well as the approval of Platinum’s shareholders.

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