RenaissanceRe Holdings Ltd. is set to acquire Spectrum Partners Ltd., whose principal operating subsidiary is Spectrum Syndicate Management Ltd. (Spectrum), a Lloyd's of London managing agent.

The reinsurer received approval from Lloyd's in April 2009 to establish the RenaissanceRe Syndicate 1458, for which Spectrum serves as the managing agent.

RenaissanceRe's syndicate operations started in May, with underwriting of property and specialty business incepting from June 1, 2009.

Richard Murphy, CEO of Spectrum, will continue in his role and Spectrum's management team will remain in place. The transaction is subject to approval by Lloyd's and the Financial Services Authority.

Neill Currie, president and CEO of RenaissanceRe Holdings, said: "Over the last year we have had the opportunity to work with Spectrum and recognise the value and experience that they bring to RenaissanceRe and our new Lloyd's Syndicate.

"Consistent with ourstrategy to better serve our customers through our presence in the Lloyd's market, we believe a combination would enable us to operate effectively and efficiently in London and to meet the growing demand for our products and services.

"We look forward to welcoming the management and staff of Spectrum to the RenaissanceRe organisation."

The parties have entered into definitive transaction documents granting RenaissanceRe an option to buy all of the outstanding shares of Spectrum Partners. If the option is exercised and, subject to customary conditions, the transaction is completed, as part of the consideration for their shares Mr. Murphy and Kim Fox, chief operating Officer of Spectrum, will receive an aggregate of 105,689 and 42,275 common shares of RenaissanceRe, respectively, subject to conditions based partly on continued performance of services to Spectrum.