XML 25 R25.htm IDEA: XBRL DOCUMENT
v2.4.1.9

Acquisition of Platinum (Tables) | 3 Months Ended
--- | ---
Mar. 31, 2015
Business Combinations [Abstract] |
Schedule of Business Acquisitions | The following table summarizes the results of Platinum since March 2, 2015 that have been included in the Company's consolidated statements of operations and comprehensive income.
|  | For the period from March 2, 2015 to March 31, 2015 |
| Total revenues | $ | 40,139 |  |
| Net loss attributable to RenaissanceRe common shareholders (1) | $ | (19,439 | ) |
(1) | Includes $28.0 million of compensation-related costs associated with terminating employees of Platinum.
The Company's total purchase price for Platinum at March 2, 2015 was calculated as follows:
| Special Dividend |  |  |  |
| Number of Platinum common shares and Platinum equity awards canceled in the acquisition of Platinum | 25,320,312 |  |  |  |
| Special Dividend per outstanding common share of Platinum and Platinum equity award | $ | 10.00 |  |  |  |
| Special Dividend paid to common shareholders of Platinum and holders of Platinum equity awards |  |  | $ | 253,203 |  |
| RenaissanceRe common shares |  |  |  |
| Common shares issued by RenaissanceRe | 7,434,561 |  |  |  |
| Common share price of RenaissanceRe as of March 2, 2015 | $ | 102.47 |  |  |  |
| Market value of RenaissanceRe common shares issued by RenaissanceRe to common shareholders of Platinum and holders of Platinum equity awards |  |  | 761,819 |  |
| Platinum common shares |  |  |  |
| Fair value of Platinum common shares owned by RenaissanceRe and canceled in connection with the acquisition of Platinum |  |  | 12,950 |  |
| Cash consideration |  |  |  |
| Number of Platinum common shares and Platinum equity awards canceled in the acquisition of Platinum | 25,320,312 |  |  |  |
| Platinum common shares owned by RenaissanceRe and canceled in connection with the acquisition of Platinum | (169,220 | ) |  |  |
| Number of Platinum common shares and Platinum equity awards canceled in the acquisition of Platinum excluding those owned by RenaissanceRe and canceled in connection with the acquisition of Platinum | 25,151,092 |  |  |  |
| Agreed cash price paid to common shareholders of Platinum and holders of Platinum equity awards | $ | 35.96 |  |  |  |
| Cash consideration paid by RenaissanceRe to common shareholders of Platinum and holders of Platinum equity awards |  |  | 904,433 |  |
| Total purchase price |  |  | 1,932,405 |  |
| Less: Special Dividend paid by Platinum |  |  | (253,203 | ) |
| Net purchase price |  |  | $ | 1,679,202 |  |
The Company recognized identifiable finite lived intangible assets of $75.2 million, which will be amortized over a weighted average period of 8 years, identifiable indefinite lived intangible assets of $8.4 million, and certain other adjustments to the fair values of the assets acquired, liabilities assumed and shareholders’ equity of Platinum at March 2, 2015 as summarized in the table below:
| Shareholders’ equity of Platinum prior to Special Dividend |  |  | $ | 1,737,278 |  |
| Cash and cash equivalents (Special Dividend on Platinum common shares and Platinum equity awards) |  |  | (253,203 | ) |
| Adjusted shareholders’ equity of Platinum at March 2, 2015 |  |  | 1,484,075 |  |
| Adjustments for fair value, by applicable balance sheet caption: |  |  |  |
| Deferred acquisition costs |  |  | (44,486 | ) |
| Debt |  |  | (28,899 | ) |
| Reserve for claims and claim expenses |  |  | (21,725 | ) |
| Other assets - deferred debt issuance costs |  |  | (1,046 | ) |
| Total adjustments for fair value by applicable balance sheet caption before tax impact |  |  | (96,156 | ) |
| Other assets - net deferred tax asset related to fair value adjustments |  |  | 29,069 |  |
| Total adjustments for fair value by applicable balance sheet caption |  |  | (67,087 | ) |
| Adjustments for fair value of the identifiable intangible assets: |  |  |  |
| Identifiable indefinite lived intangible assets (insurance licenses) |  |  | 8,400 |  |
| Identifiable finite lived intangible assets (non-contractual relationships, renewal rights, value of business acquired, trade name, internally developed and used computer software and covenants not to compete) |  |  | 75,200 |  |
| Identifiable intangible assets before tax impact |  |  | 83,600 |  |
| Other liabilities - deferred tax liability on identifiable intangible assets |  |  | (13,115 | ) |
| Total adjustments for fair value of the identifiable intangible assets |  |  | 70,485 |  |
| Total adjustments for fair value by applicable balance sheet caption and identifiable intangible assets |  |  | 3,398 |  |
| Shareholders’ equity of Platinum at fair value |  |  | 1,487,473 |  |
| Total net purchase price paid by RenaissanceRe |  |  | 1,679,202 |  |
| Excess purchase price over the fair value of net assets acquired assigned to goodwill |  |  | $ | 191,729 |  |
Identifiable Intangible Assets Acquired | Identifiable intangible assets at March 2, 2015 and at March 31, 2015, consisted of the following, and are included in goodwill and other intangible assets on the Company’s consolidated balance sheet:
|  | Amount |  | Economic Useful Life |
| Key non-contractual relationships | $ | 30,400 |  |  | 10 years |
| Value of business acquired | 20,200 |  |  | 2 years |
| Renewal rights | 15,800 |  |  | 15 years |
| Insurance licenses | 8,400 |  |  | Indefinite |
| Internally developed and used computer software | 3,500 |  |  | 2 years |
| Other non-contractual relationships | 2,300 |  |  | 3 years |
| Non-compete agreements | 1,900 |  |  | 2.5 years |
| Trade name | 1,100 |  |  | 6 months |
| Identifiable intangible assets, before amortization, at March 2, 2015 | 83,600 |  |  |  |
| Amortization (from March 2, 2015 through March 31, 2015) | (1,846 | ) |  |  |
| Net identifiable intangible assets at March 31, 2015 related to the acquisition of Platinum | $ | 81,754 |  |  |  |
Pro Forma Information | The following table presents unaudited pro forma consolidated financial information for the three months ended March 31, 2015 and 2014 and assumes the acquisition of Platinum occurred on January 1, 2014. The unaudited pro forma consolidated financial information is provided for informational purposes only and is not necessarily, and should not be assumed to be, an indication of the results that would have been achieved had the transaction been completed as of January 1, 2014 or that may be achieved in the future. The unaudited pro forma consolidated financial information does not give consideration to the impact of possible revenue enhancements, expense efficiencies, synergies or asset dispositions that may result from the acquisition of Platinum. In addition, unaudited pro forma consolidated financial information does not include the effects of costs associated with any restructuring or integration activities resulting from the acquisition of Platinum, as they are nonrecurring.
|  | Three months ended |
|  | March 31, 2015 |  | March 31, 2014 |
| Total revenues | $ | 460,553 |  |  | $ | 514,017 |  |
| Net income available to RenaissanceRe common shareholders | 182,806 |  |  | 199,094 |  |

X
- Definition Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(2)-(3) -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1392-128463 + Details
Name: | us-gaap_BusinessAcquisitionProFormaInformationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | us-gaap_BusinessCombinationsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of finite-lived and indefinite-lived intangible assets acquired as part of a business combination. + References No definition available. + Details
Name: | us-gaap_FiniteLivedAndIndefiniteLivedIntangibleAssetsAcquiredAsPartOfBusinessCombinationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of a material business combination completed during the period, including background, timing, and recognized assets and liabilities. This table does not include leveraged buyouts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1392-128463 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1486-128463 + Details
Name: | us-gaap_ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration