ENDURANCE HAILS SCALE AND DIVERSITY CREATED THROUGH MONTPELIER RE DEAL

Endurance said its planned $1.83bn acquisition of Montpelier Re will create a re/insurer with increased scale, a diversified platform and a stronger balance sheet following yesterday’s announcement of the deal. Endurance also insisted in an investor presentation the deal will create “meaningful transaction synergies”, including $60m in annual run-rate cost savings and would have “manageable” integration risk. The combined business will write $3.6bn of annual gross written premiums, while the transaction will increase Endurance’s scale in reinsurance, increasing premiums around 32% to $1.7bn. The deal will create a company with shareholders equity in excess of $4bn, total capital of $5.5bn, and total cash and invested assets of $9.3bn. Subject to shareholder and regulatory approval, the deal is expected to close in the third quarter. Endurance’s board of directors will be expanded at the closing of the deal to include three of Montpelier’s existing directors – although who they will be has not yet been announced. Endurance’s senior management team will lead the combined company from its Bermuda headquarters.