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Acquisition of Tokio Millennium Re (Tables) | 12 Months Ended
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Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract] |
Schedule of Acquisition Purchase Price and Financial Results | The Company’s total purchase price for TMR 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. The following table summarizes the net contribution from the acquisition of TMR since March 22, 2019 that was included in the Company’s consolidated statements of operations and comprehensive income for the year ended December 31, 2019. Operating activities of TMR from the acquisition date, March 22, 2019, through December 31, 2019 are included in the Company’s consolidated statements of operations for the year ended December 31, 2019. The unaudited net contribution of the acquisition and integration of TMR 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’s analysis of the financial performance of the Company’s business. These results primarily reflect items recorded directly by TMR through December 31, 2019, including: 1) net earned premium and net underwriting income on the in-force portfolio acquired with the acquisition of TMR and previously retained on TMR entities’ balance sheets; 2) net earned premium and net underwriting income for those contracts which renewed post-acquisition on one of the acquired TMR entities’ balance sheets; 3) net investment income and net realized and unrealized gains recorded directly by TMR; and 4) certain direct costs incurred directly by TMR. In addition, these results, where possible, were 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 TMR unless such costs were incurred directly by TMR. 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 entities which have been, and will continue to be 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 results. As a result, for the years ended December 31, 2021 and 2020, it is impracticable to produce summarized financial results, and any such information would not be indicative of the results of the acquired TMR entities, given the significant estimates involved and the nature and pace of the integration activities, which were substantially completed in 2019.
|  |  |  | Year ended December 31, 2019 (1) |
| Total revenues |  |  | $ | 922,727 |  |
| Net income (loss) available (attributable) to RenaissanceRe common shareholders (2) |  |  | $ | 99,169 |  |
(1) Includes the net contribution from the acquisition of TMR since March 22, 2019 that has been included in the Company’s consolidated statements of operations and comprehensive income through December 31, 2019. (2) Includes $49.7 million of corporate expenses associated with the acquisition and integration of TMR for the year ended December 31, 2019.
Schedule of Fair Value of Net Assets Acquired and Liabilities Assumed | The purchase price was allocated to the acquired assets and liabilities of the Company based on estimated fair values on March 22, 2019, the date the transaction closed, as detailed below. During the quarter ended March 31, 2019, the Company recognized goodwill of $13.1 million, based on foreign exchange rates on March 22, 2019, attributable to the excess of the purchase price over the fair value of the net assets of TMR. 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 TMR at March 22, 2019, based on foreign exchange rates on March 22, 2019, as summarized in the table below:
| Shareholders’ equity of TMR 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 TMR | (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 TMR 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 consisted of the following 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 TMR, at March 22, 2019 | 18,000 |  |  |  |
| Accumulated amortization (from March 22, 2019 through December 31, 2021), net of foreign exchange | 2,851 |  |  |  |
| Impairment loss on insurance licenses | 6,800 |  |  |  |
| Net identifiable intangible assets related to the acquisition of TMR at December 31, 2021 | $ | 8,349 |  |  |  |
Schedule of Pro Forma Information | The following table presents unaudited pro forma consolidated financial information for the years ended December 31, 2019 and 2018, respectively, and assumes the acquisition of TMR 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 TMR. 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 TMR, as they are nonrecurring.
| Year ended December 31, |  |  |  |  | 2019 |  | 2018 |
| Total revenues |  |  |  |  | $ | 4,542,979 |  |  | $ | 3,338,903 |  |
| Net income (loss) available (attributable) to RenaissanceRe common shareholders |  |  |  |  | $ | 768,719 |  |  | $ | 281,974 |  |

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