The insurance and reinsurance company, RenaissanceRe Holdings Ltd. said Thursday, November 18, 2010 that it has got into an agreement with QBE Holdings to sell its United States commercial property insurance operations. RenaissanceRe operations include its crop insurance business under Agro National Inc, and its casualty and property business under its managing agents for approximately $275 million in cash.
According to RenaissanceRe Holdings Ltd’s chief executive officer Mr. Neill A. Currie, the insurance and reinsurance company is delighted to enter into the deal with QBE Holdings to sell its United States’ insurance business.
Currie also said it was the right time for the insurance and reinsurance company to exit the comparatively small-size insurance operations in the United States, especially when its current business situation favors consolidation, but RenaissanceRe Holdings continues to do business in the US by its Glencoe Insurance Ltd and Lloyd’s platform.
The amount of the transaction is a consideration of the year-end 2010 GAAP book value, and it will immediately add to the insurance and reinsurance company’s concrete book rate per share.
The deal is expected to close during the first half next year, according to the insurance and reinsurance company, and is still subject to customary closing conditions and regulatory approvals.
QBE Holdings is a New York based unit of QBE Insurance, an Australian insurer that sells health and casualty insurance products and real estate properties.
The Bermuda based RenaissanceRe Holdings Ltd is a global insurance and reinsurance company that covers the risk of man-made and natural catastrophes.