Acquisition of Platinum (Tables)

9 Months Ended

Sep. 30, 2015

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

Schedule of Identifiable Intangible Assets Acquired

Identifiable intangible assets at March 2, 2015 and at September 30, 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 September 30, 2015)	(12,864		)
Net identifiable intangible assets at September 30, 2015 related to the acquisition of Platinum	$	70,736

Schedule of Pro Forma Information

The following table presents unaudited pro forma consolidated financial information for the three and nine months ended September 30, 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				Nine months ended
	September 30, 2015		September 30, 2014		September 30, 2015		September 30, 2014
Total revenues	$	358,240	$	407,176	$	1,216,360	$	1,410,192
Net income available to RenaissanceRe common shareholders	75,529		92,004		331,568		465,776