RenaissanceRe chief says efficiency, growing demand prompted managing firm buy

The chief executive of reinsurer Renaissance Re Holdings Ltd. said Friday that growing demand for its products and services and a need for efficiency prompted the acquisition of the firm managing its syndicate in the Lloyd’s market.

Bermuda-based RenaissanceRe (NYSE:RNR) said it has entered into an agreement to buy Spectrum Partners Ltd, the parent company of Spectrum Syndicate Management Ltd., a Lloyd’s managing agent for its RenaissanceRe Syndicate 1458.

Shares of RenaissanceRe rose 0.67 pct in early trading to $47.99 on the New York Stock Exchange.

Spectrum’s chief executive and its management team will remain in place but must be approved by Lloyd’s and the U.K.’s Financial Services Authority.

"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," said Neill Currie, President and CEO in a released statement.

RenaissanceRe’s businesses includes catastrophe reinsurance, specialty reinsurance and joint ventures managed by a subsidiary. The firm also provides primary insurance and quota share reinsurance.