RenaissanceRe to sell weather and energy unit to Munich Re
RenaissanceRe Holdings is selling its US-based weather and energy unit to the world's biggest reinsurer, Munich Re.
The German reinsurer would pay a mid-two-digit million dollar amount for the business, a Munich Re spokesman said yesterday.
The business, known as RenRe Energy Advisors Ltd or Real, has clients that are mainly US energy companies seeking cover against swings in their income due to adverse weather conditions.
The acquisition will allow Munich Re to improve its ability to insure investors in renewable energies against the lack of wind or sunshine, Munich Re said.
RenRe said neither the sale of nor the results from the unit are material to RenaissanceRe.
The transaction is expected to close in the fourth quarter of 2013 and is subject to regulatory approvals and customary closing conditions.
Kevin O'Donnell, CEO of RenaissanceRe in Bermuda said: “Our decision to sell this unit reflects our commitment to a focused strategy of expanding our underwriting platforms in Bermuda, London, the US and Asia.”
Mr. O'Donnell added: “Munich Re has been working with REAL for over three years as a risk capacity provider, and we are pleased to consummate this transaction with a valued long-term trading partner.”