Vantage Group Holdings has completed its acquisition by Howard Hughes Holdings in an all-cash transaction valued at approximately $2.1 billion.

The deal, which was first announced in December, received all required regulatory approvals and officially closed yesterday.

Vantage, a Bermudian-based speciality re/insurer, said it will keep operating under its existing leadership team, headed by chief executive Greg Hendrick, with no changes to its underwriting strategy, distribution model or client relationships.

The acquisition places Vantage at the centre of billionaire investor Bill Ackman's plans to transform Howard Hughes from a real-estate-focused company into a diversified holding company with a substantial insurance operation.

At the time the transaction was announced, Mr Ackman described insurance as the foundation for creating long-term shareholder value. It is a model that draws comparisons with the model used by Berkshire Hathaway, Warren Buffett's conglomerate built around insurance businesses.

Founded in Bermuda in 2020 with backing from private-equity investors, Vantage has expanded into a global speciality re/insurance and partnership capital platform.

As part of the transaction, Howard Hughes said it will inject an additional $200 million of capital into Vantage, which the company said will strengthen its balance sheet, enhance its credit profile and provide greater underwriting flexibility.

The deal also gives Pershing Square Capital Management, Mr Ackman's investment firm, responsibility for managing Vantage's investment portfolio on a fee-free basis.

"This marks the beginning of an exciting next chapter for Vantage," Mr Hendrick said. "While our ownership changes, our team, underwriting discipline and commitment to brokers and clients remain steadfast."

Mr Ackman said Vantage would become the cornerstone of Howard Hughes's transformation into a diversified holding company. He said it would combine the insurer's speciality underwriting platform with Pershing Square's investment capabilities.

The transaction represents one of the largest recent exits for a Bermuda-founded re/insurance company.