Renaissance Re Holdings Limited
) recently inked a deal to sell its U.S. based weather and
weather related energy risk management unit - RenRe Energy
Advisors Ltd. (REAL) to Germany-based reinsurance company Munich
Re Group. Munich Re has been a long-term trading partner for
Renaissance Re and is associated with the company's REAL for more
than three years as a risk capacity provider.
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The deal is expected to close in the fourth quarter of 2013 and
is pending regulatory approval. As per the deal, Munich Re will
pay a mid-two digit million dollar amount for acquiring REAL.
With the divestiture Renaissance Re intends to focus on its core
operations that include property catastrophe reinsurance and
insurance business written through Syndicate 1458.
RenRe Energy Advisors is a wholly owned subsidiary of Renaissance
Re and provides certain derivative-based risk management products
that deal with the weather and energy risks globally. REAL has
clients that consists of U.S. energy companies who seek
protection against income fluctuations that arise from adverse
The company has been reviewing potential strategic transactions
to improve its business portfolio and expand its distribution
capacities. Towards business expansion in Jul 2013 Renaissance Re
formed Renaissance Re Underwriting Managers U.S. LLC - a
specialty reinsurance agency. The launch of this Renaissance Re
Underwriting Managers was aimed at enhancing its specialty
Renaissance carries a Zacks Rank #3 (Hold). Among other
EMC Insurance Group Inc.
Everest Re Group Ltd
Global Indemnity Plc
) carry a favorable Zacks Rank #1 (Strong Buy) and are worth