AXA Liabilities Managers to Acquire RenaissanceRe (UK) Limited

Transaction Overview

AXA Liabilities Managers (“AXA LM”) has agreed to acquire RenaissanceRe UK Limited (“RRUKL”)

  • Transaction subject to required regulatory approvals and customary closing conditions
  • The acquisition will be made through an investment vehicle managed by AXA LM

RRUKL became part of RenRe in March 2019 through RenRe’s acquisition of Tokio Millennium Re

  • RRUKL wrote a range of non-life (re)insurance risks until it ceased underwriting in June 2015
    • RRUKL was established in 2005 as Tokio Millennium Re (UK) Ltd., writing mainly treaty reinsurance business
  • As of 9/30/19 gross claims reserves were £160mm with over 50% comprised of motor business
    • Other lines written include: casualty, political risk, engineering and marine treaty

RenRe is a Bermuda based publicly traded provider of (re)insurance solutions, established in 1993

  • Listed on the NYSE in July 1995 and now trades with a market cap of ~$8.5bn and ~$5.9bn of equity(a)
  • Rated A+ by A.M. Best, A+ by S&P, A1 by Moody’s and A+ by Fitch
  • RenRe wrote ~$3.3bn of GPW in 2018 and achieved a combined ratio of ~88%
  • Manages ~$10.6bn in its reinsurance and ILS vehicles(b), more than its own capital of ~$7.4bn at 9/30/19(a)

AXA LM was formed as the in-house manager of AXA Group’s run-off (re)insurance business in 2001

  • AXA Group is a French publicly traded global (re)insurance firm with a market cap of ~€58.2bn
  • AXA LM has acquired 20 portfolios, since it began operation, and continues its external development
  • Current liabilities under management of ~€1.6bn (98% reinsurance and <2% insurance)(c)

TigerRisk Capital Markets & Advisory Role

TCMA is acting as financial advisor to RenRe; key transaction steps led by TCMA include:

  • Running a broad auction process and introducing the counterparties
  • Offering insight around key transaction terms and conditions
  • Managing an organized and efficient due diligence process
  • Assistance to RenRe in negotiation of final transaction terms
  • Providing objective advice and acting as a confidant to the seller throughout the process

TigerRisk’s LPT team also completed a reserve analysis to aid potential buyers in the process

(a) Source: RenRe Q3 2019 10-Q.
(b) Source: RenRe company website.
(c) Source: AXA LM Company website.