Bermuda-based RenaissanceRe Holdings has commenced an underwritten public offering of 5.5m common shares.
The pricing of the underwritten public offering to the public is $166 per share, before underwriting discounts and commissions. The offering is expected to close on 5 June 2020, subject to customary closing conditions.
The company says it intends to use the net proceeds from this offering for general corporate purposes, which may include expanding existing business lines, entering new business lines, forming new joint ventures, or acquiring books of business from other companies.
State Farm Mutual Automobile Insurance, which currently owns approximately 4.4% of RenaissanceRe’s total common shares outstanding, has entered into an investment agreement to purchase, subject to the consummation of the underwritten public offering and other customary conditions, approximately $75m of the company’s common shares at the public offering price per share in a concurrent private placement.
RenaissanceRe is a global provider of reinsurance and insurance. The company provides property, casualty and specialty reinsurance and certain insurance solutions to customers, principally through intermediaries. Established in 1993, the company has offices in Bermuda, Australia, Ireland, Singapore, Switzerland, the UK and the US.