RenaissanceRe Holdings Ltd.
) announced that it will redeem all the outstanding 6.6% Series D
Preference Shares and half of the outstanding 6.08% Series C
Preference Shares. The company has 6 million Series D and 10
million Series C Preference Shares outstanding at present.
RenaissanceRe will redeem both types of preference shares at a
redemption price of $25 per share. The company will also pay the
accrued and unpaid dividend till the date of redemption. The
mandatory redemption will take place on Jun 27, 2013.
The 50% of the Series C shares to be redeemed will be chosen
on the basis of a random lottery to be conducted by The
Depository Trust Company (DTC) according to its rules and
procedures. DTC is the holder of record for the preference
This is not the first time RenaissanceRe is redeeming its
preference shares. Earlier, on Dec 27, 2012, the company redeemed
6 million Series D Preference Shares at an average price of $25
per share along with accrued and unpaid dividend. This left
another 6 million outstanding Series D Preference Shares, which
are being redeemed now.
Following the redemption, RenaissanceRe will have only 5
million preference shares outstanding. The redemption will save a
considerable amount of dividend for the company. Moreover, the
sharp cut down in the number of outstanding preference shares
will reduce the risk of equity shareholders as preference shares
have priority in case of liquidation of a company.
RenaissanceRe currently caries a Zacks Rank #3 (Hold). Other
property and casualty insurers worth considering are
Montpelier Re Holdings Ltd.
XL Group plc
AXIS Capital Holdings Limited
). All these companies carry a Zacks Rank #1 (Strong Buy).
AXIS CAP HLDGS (AXS): Free Stock Analysis
MONTPELIER RE (MRH): Free Stock Analysis
RENAISSANCERE (RNR): Free Stock Analysis
XL GROUP PLC (XL): Free Stock Analysis Report
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