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Acquisition of Tokio Millennium Re (Tables) | 9 Months Ended
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Sep. 30, 2019
Business Combinations [Abstract] |
Schedule of Acquisition Purchase Price and Financial Results | The following table summarizes the net contribution from the acquisition of the TMR Group Entities since March 22, 2019 that has been included in the Company's consolidated statements of operations and comprehensive income for the three and nine months ended September 30, 2019. The operating activities of the TMR Group Entities from the acquisition date, March 22, 2019, through September 30, 2019 are included in the Company’s consolidated statements of operations for the nine months ended September 30, 2019. The unaudited net contribution of the acquisition and integration of the TMR Group Entities is provided for informational purposes only and is not necessarily, and should not be assumed to be, an indication of the results that may be achieved in the future. These results are not used as a part of management analysis of the financial performance of the Company’s business. These results primarily reflect items recorded directly by the TMR Group Entities, including: 1) net earned premium and net underwriting income on the in-force portfolio acquired with the acquisition of the TMR Group Entities and currently retained on the TMR Group Entities balance sheets; 2) net earned premium and net underwriting income for those contracts which have renewed post-acquisition on one of the acquired TMR Group Entities’ balance sheets; 3) net investment income and net realized and unrealized gains recorded directly by the TMR Group Entities; and 4) certain direct costs incurred directly by the TMR Group Entities. In addition, these results, where possible, are adjusted for transaction and integration related costs incurred by the Company. However, these results do not reflect on-going operating costs incurred by the Company in supporting the TMR Group Entities unless such costs are incurred directly by the TMR Group Entities. These results also do not give consideration to the impact of possible revenue enhancements, expense efficiencies, synergies or asset dispositions that may be achieved in the future. These results involve significant estimates and are not indicative of the future results of the acquired TMR Group Entities, which will be further impacted by potential changes in targeted business mix, investment management strategies, and synergies recognized from changes in the combined entity’s operating structure, as well as the impact of changes in other business and capital management strategies. Since the acquisition date, a growing number of underlying policies have been underwritten onto different legal entities, staffing has been allocated to new activities, and reinsurance has been purchased to cover combined risks, only some of which would have been reflected in the underlying legacy TMR Group Entities results. In future quarters, the summary results of the TMR Group Entities will become increasingly impracticable to produce, and even less indicative of the results of the acquired TMR Group Entities, given the significant estimates involved and the nature and pace of our integration activities, which are intended to integrate the TMR Group Entities as quickly as possible.
|  | Three months ended September 30, 2019 |  | Nine months ended September 30, 2019 (1) |
| Total revenues | $ | 313,250 |  |  | $ | 730,080 |  |
| Net income available to RenaissanceRe common shareholders (2) | $ | 31,672 |  |  | $ | 97,068 |  |
(1) | Includes the net contribution from the acquisition of the TMR Group Entities since March 22, 2019 that has been included in the Company’s consolidated statements of operations and comprehensive income through September 30, 2019.
(2) Includes $4.0 million and $44.0 million of corporate expenses associated with the acquisition and integration of the TMR Group Entities for the three and nine months ended September 30, 2019, respectively. The Company's total purchase price for the TMR Group Entities was calculated as follows:
| Special Dividend |  |  |  |
| Special Dividend paid to common shareholders of Tokio and holders of Tokio equity awards |  |  | $ | 500,000 |  |
| RenaissanceRe common shares |  |  |  |
| Common shares issued by RenaissanceRe to Tokio | 1,739,071 |  |  |  |
| Common share price of RenaissanceRe (1) | $ | 143.75 |  |  |  |
| Market value of RenaissanceRe common shares issued by RenaissanceRe to Tokio |  |  | 249,998 |  |
| Cash consideration |  |  |  |
| Cash consideration paid by RenaissanceRe as acquisition consideration |  |  | 813,595 |  |
| Total purchase price |  |  | 1,563,593 |  |
| Less: Special Dividend paid to Tokio |  |  | (500,000 | ) |
| Net purchase price |  |  | $ | 1,063,593 |  |
(1) RenaissanceRe common share price was based on the 30-day trailing volume weighted average price of $143.7539 as of market close on March 15, 2019, which approximates fair value.
Schedule of Fair Value of Net Assets Acquired and Liabilities Assumed | The Company recognized identifiable finite lived intangible assets of $11.2 million, which will be amortized over a weighted average period of 10.5 years, identifiable indefinite lived intangible assets of $6.8 million, and certain other adjustments to the fair values of the assets acquired, liabilities assumed and shareholders’ equity of the TMR Group Entities at March 22, 2019, based on foreign exchange rates on March 22, 2019, as summarized in the table below:
| Shareholders’ equity of the TMR Group Entities at March 22, 2019 | $ | 1,032,961 |  |
| Adjustments for fair value, by applicable balance sheet caption: |  |
| Net deferred acquisition costs and value of business acquired | (56,788 | ) |
| Net reserve for claims and claim expenses | 67,782 |  |
| Goodwill and intangible assets at March 22, 2019 of the TMR Group Entities | (6,569 | ) |
| Total adjustments for fair value by applicable balance sheet caption before tax impact | 4,425 |  |
| Other assets - net deferred tax liability related to fair value adjustments and value of business acquired | (2,606 | ) |
| Total adjustments for fair value by applicable balance sheet caption, net of tax | 1,819 |  |
| Adjustments for fair value of the identifiable intangible assets: |  |
| Identifiable indefinite lived intangible assets (insurance licenses) | 6,800 |  |
| Identifiable finite lived intangible assets (top broker relationships and renewal rights) | 11,200 |  |
| Identifiable intangible assets before tax impact | 18,000 |  |
| Other assets - deferred tax liability on identifiable intangible assets | (2,281 | ) |
| Total adjustments for fair value of the identifiable intangible assets and value of business acquired, net of tax | 15,719 |  |
| Total adjustments for fair value by applicable balance sheet caption, identifiable intangible assets and value of business acquired, net of tax | 17,538 |  |
| Shareholders’ equity of the TMR Group Entities at fair value | 1,050,499 |  |
| Total net purchase price paid by RenaissanceRe | 1,063,593 |  |
| Excess purchase price over the fair value of net assets acquired assigned to goodwill | $ | 13,094 |  |
Schedule of Identifiable Intangible Assets Acquired | Identifiable intangible assets and accumulated amortization at September 30, 2019, consisted of the following, based on foreign exchange rates on March 22, 2019, and are included in goodwill and other intangible assets on the Company’s consolidated balance sheet:
|  | Amount |  | Economic Useful Life |
| Top broker relationships | $ | 10,000 |  |  | 10.0 years |
| Renewal rights | 1,200 |  |  | 15.0 years |
| Insurance licenses | 6,800 |  |  | Indefinite |
| Gross identifiable intangible assets related to the acquisition of the TMR Group Entities, at March 22, 2019 | 18,000 |  |  |  |
| Accumulated amortization (from March 22, 2019 through September 30, 2019) | 540 |  |  |  |
| Net identifiable intangible assets related to the acquisition of the TMR Group Entities at September 30, 2019 | $ | 17,460 |  |  |  |
Schedule of Business Acquisition, Pro Forma Information | The following table presents unaudited pro forma consolidated financial information for the three and nine months ended September 30, 2019 and 2018, respectively, and assumes the acquisition of the TMR Group Entities occurred on January 1, 2018. 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, 2018 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 the TMR Group Entities. 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 the TMR Group Entities, as they are nonrecurring.
|  | Three months ended |  | Nine months ended |
|  | September 30, 2019 |  | September 30, 2018 |  | September 30, 2019 |  | September 30, 2018 |
| Total revenues | $ | 1,051,148 |  |  | $ | 930,825 |  |  | $ | 3,437,674 |  |  | $ | 2,478,934 |  |
| Net income available to RenaissanceRe common shareholders | $ | 36,698 |  |  | $ | 59,174 |  |  | $ | 734,946 |  |  | $ | 309,715 |  |

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